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General News

State lawmakers look at depreciation floor

As state legislators debate the best way to reduce the business personal property tax, the most hated aspect of the tax may become part of the mix.

Indiana sets a floor for depreciation on equipment -- no matter how old equipment is, it‘s taxed on at least 30-percent of its original value.

Buck Creek senator Brandt Hershman chairs the Senate Tax and Fiscal Policy Chairman.

He says the depreciation floor has been the underlying issue in the whole debate about cutting or eliminating the business personal property tax.

Simply removing the floor isn‘t part of either the House or Senate version of the bill.

Hershman says it could be added, but only after legislators study the impact on economic development and local tax collections.