Senate Tax and Fiscal Policy Committee

Courtesy Indiana Senate Republicans

A polarizing figure in the Indiana Senate will step down after the new year.

Republican Brandt Hershman (R-Buck Creek) will resign just before the legislative session gets underway, to follow his wife to Washington, D.C., where both are taking new jobs.

Michael Smith /

The Indiana General Assembly has enacted cuts to the corporate income tax, financial institutions tax, inheritance tax, individual income tax and business personal property tax in the last three years.  Could changes to the sales tax be next? 

Indiana’s state sales tax rate – seven-percent – is one of the highest in the country.  And Indiana only taxes hard goods, not services.  So there’s no sales tax on a doctor’s visit, but there is on the purchase of medicine. 

Jim Nix /

The latest numbers given to a study committee of Indiana lawmakers say the state’s property tax caps are worth about $600 million – either for taxpayers or for the state’s coffers.

But the analysis also shows urban areas have been disproportionately hit by the effects of the decreased revenue – despite the fact the tax caps were enacted after residents in some cities, particularly Indianapolis, complained their taxes were rising too quickly.