SB 336, which increases the acquisition cost threshold for the business personal property exemption from $40,000 to $60,000, was substantially amended recently in the House Ways and Means Committee and passed 14-8 along party lines. The amendment removed the provision, which would have based the threshold on assessed value and returns the calculation of the threshold to be based on acquisition cost as is provided in current law. Instead, the amendment increases that threshold from the current $40,000 acquisition cost to $60,000. The bill is being reprinted and a new fiscal impact will be available soon.
The Chamber provided detailed supporting testimony two weeks ago when the bill was initially heard by the committee and has maintained communications with the committee that some form of adjustment to the exemption is needed to help small businesses. We completely support the amendment, and we are extremely appreciative of the author and the Ways and Means Committee in forwarding this legislation.
The bill will save approximately 20,000 additional businesses across the state the compliance cost associated with filing a return when only a small amount of tax is owed. The Chamber successfully advocated for the creation of this “de minimus” exemption and has likewise supported subsequent adjustments. Consequently, we are very pleased with the progress this latest step represents.
Bill Waltz is vice president of taxation & public finance for the Indiana Chamber. He is also an attorney and has been with the organization for nearly 17 years.
