SB 385 – Assessment of Business Personal Property Taxes
Authored by Sen. Aaron Freeman (R-Indianapolis)

Provides that the business personal property exemption from taxation is based on the assessed value instead of the acquisition cost.

Chamber position: Support

The latest: Amended on second reading and passed by the full Senate. The amendment deleted cash value as the basis for applying the $40,000 threshold and made assessed value the basis.

Indiana Chamber action/commentary: The Chamber supports the bill but believes the standard for determining the threshold may need to be amended once more in order to ease the application of the exemption. Having the threshold tied to assessed value accomplishes the desired objective of recognizing depreciation (in value) but means that if a taxpayer’s acquisition cost exceeds $40,000, they will essentially have to file a return in order to substantiate that they qualify for the exemption. This negates the benefit of avoiding the time and cost of preparing a return. We will be working with the interested parties to see if a better resolution is possible.

Long Overdue RV Sales Tax Bill Now in Senate Hands

HB 1059 – Sales Tax on Recreational Vehicles
Authored by Rep. Doug Miller (R-Elkhart)

Provides that for certain transactions involving a cargo trailer or recreational vehicle that occur after June 30, 2025, the state gross retail tax rate is the rate of the nonreciprocal state or foreign country (excluding any locally imposed tax rates) in which the cargo trailer or recreational vehicle will be titled or registered, as certified by the seller and purchaser in an affidavit prescribed by the state Department of Revenue. Provides that for certain transactions involving a cargo trailer or recreational vehicle that occur after June 30, 2020, and before July 1, 2025, the transaction is exempt from the state gross retail tax regardless of whether the state or foreign country has a reciprocal agreement with Indiana. Full details.

Chamber position: Support

The latest: Passed by the House.

Indiana Chamber action/commentary:  As a reminder, a substantially similar bill passed both the House and Senate last year and died unexpectedly in conference committee. The Chamber is wholly supportive and promotes the need to get a resolution back on course.

There is a long legislative history going back to 2004 that has disrupted the sales of recreational vehicles by Indiana dealers due the state’s tax policy on sales tax collection. Various attempts have been proposed (and adopted) over the intervening years to address the situation that has caused Indiana RV sales dealerships much consternation. It is time to put Indiana dealers on par with out-of-state dealerships. This bill could spur more sales and stem the decline of Indiana dealerships.

Governor Signs Bill to Cash Fund Higher Education Project

HB 1007 – Fiscal Matters
Authored by Rep. Tim Brown (R-Crawfordsville)

Adds several standard provisions to the sports wagering fund. Repeals a provision requiring review by the budget committee of certain agreements or extensions of agreements entered into by the Indiana Finance Authority or the state. Appropriates money from the state general fund for various projects of Indiana’s state educational institutions.

Chamber position: Support

The latest: Passed both the House and Senate and now has been signed by the Governor.

Indiana Chamber action/commentary: This bill flew through both the General Assembly and was signed by the Governor in near record time. It cash funds $291 million in six university capital projects that were approved for bonding in last year’s budget – one at each of six state higher education institutions. The cash funding simply means the projects will be paid for directly out of the existing state reserves rather than the universities having to sell bonds and incur debt. The idea of cash funding projects was suggested by the administration after the revenue collections proved better than projected, adding to an already hefty reserve balance. The Chamber strongly supported this fiscally sound measure.

Resource: Bill Waltz at (317) 264-6887 or email: [email protected]