Indiana’s property tax caps have proven fruitful for property owners, who would’ve paid an additional $704 million to local governments this year if it weren’t for the constitutionally-enshrined caps.
But property owners’ gain has also been Indiana schools’ loss — to the tune of $245 million in lost property tax revenues for districts across the state last year. (That’s up from $142 million lost to property tax caps in 2010.)
Against that backdrop, Gov. Mike Pence and top Republicans have aligned behind a proposal from the state’s business community to phase out a property tax on business equipment.
The details are still fuzzy, but without a replacement revenue source, the move would mean another hit of more than $500 million to local governments.
“I think it’s important to [phase out the business personal property tax] in a way that doesn’t disadvantage local communities or local schools,” Pence told reporters after outlining his education agenda this week.