Senate, House proposals to change state business tax more palatable to Tippecanoe County

State Sen. Brandt Hershman, R-Buck Creek, authored Senate Bill 1, which exempts businesses with less than $25,000 in equipment and machinery from paying the state personal property tax.

Pence had proposed a total repeal of the tax, which would eliminate $1 billion in statewide revenue for counties, cities, schools and other local government operations, and, in some cases, shifted the burden to other property owners.

Under Hershman’s bill, the net revenue loss spread across all Tippecanoe County taxing units would be about $234,000, according to a state fiscal impact analysis.

“This is a much more minimal impact than eliminating the full personal property tax,” Plantenga said.