What is Replace Don't Erase?
Replace Don’t Erase is an effort to preserve local government funding at a level allowing municipal government in Indiana to continue providing Hoosiers with the quality of life they expect and deserve. Currently, the Indiana General Assembly is moving towards eliminating the business personal property tax, a move that will eliminate more than $1 Billion dollars from local governments and devastate their ability to provide services, infrastructure and improvements. Growing Indiana’s economy is about more than a checklist of business taxes.
July 23, 2014
Replace Don’t Erase Coalition Members were joined by individuals from units who stand to be impacted by legislative proposals to eliminate Indiana’s personal property tax for the Mid-Summer Workshop: Personal Property Tax Elimination Efforts and the Information You Need to Know. To view the presentation on working with lawmakers, local media and others to communicate your concerns click here
. For additional information regarding SEA 1-2014 and other legislative proposals, click here
March 14, 2014
The 23 statewide organizations who joined together in an effort to preserve the quality of life and viability of Indiana's communities have mixed feelings about the conclusions reached this legislative session. While some strides were made, it is clear that the work of this group must continue.
“This legislation begins to offer relief to Indiana businesses and is a good initial step toward totally eliminating personal property tax in the future.” - Kevin Brinegar, Indiana Chamber of Commerce President and CEO.
For a copy of Senate Enrolled Act 1 - 2014, click here
March 6, 2014
IACT issued a statement regarding the current proposals being debated in the House and Senate. For more information, click here
Both the House and Senate have advanced bills to begin phasing out Indiana’s personal property tax. SB 1 and HB 1001 are headed into conference committee where intense negotiations will take place over the coming days. For a summary of key provisions currently in each proposal, click here
The IACT Board of Directors and several Hoosier Mayors held a media event today and expressed great concerns over legislation that eliminates any portion of the personal property tax without full replacement revenue guaranteed by the state.
See a copy of the press release here.
Indianapolis Star: Business tax cut would hit local governments
An Indianapolis Star article takes a look at the Indiana Fiscal Policy Institute report that was released yesterday. The report finds that past tax reforms will make it difficult to cut Indiana's tax on business equipment without causing big revenue losses for local governments and shifting a significant amount of the property tax burden to homeowners.
The report also found that reducing the equipment tax would have only a small effect on business relocation from outside the state, but could pit one Indiana county against another.
Read the full story here
The Indiana Fiscal Policy Institute released a new report today: The Personal Property Tax in Indiana, Its Reduction or Elimination is No Simple Task.
The report highlights many of the pitfalls, difficulties and concerns that arise from the idea of eliminating Indiana’s personal property tax. An excerpt from the report states:
One could argue that local governments should “just tighten their belts” to accommodate a more business-friendly tax climate in Indiana. Many local governments are still in the process of readjusting their budgets and revenue streams to adjust to the revenue losses as a result of the property tax caps/Circuit Breaker. The losses under existing law are estimated to exceed $800 million in 2015 and the elimination of the personal property tax would add an additional $550 million in losses statewide, plus an additional $134 million in reductions to rate controlled funds. Those numbers are significant and, in most jurisdictions, will not easily be accommodated with either increased taxes and users fees or reductions in local services.
for a link to the full report.
This week both the House and Senate passed their respective bills to begin the road to full elimination of the business personal property tax without any replacement revenue. It has been a very disappointing week to see that so many lawmakers are not willing to seriously consider the consequences these actions will have on Indiana’s cities, towns, counties, townships, libraries and schools. We urge you to continue talking with your representatives and senators to explain why HB 1001 is not a true local option and why SB 1 is a slippery slope. Any PPT revenue eliminated must be automatically replaced.
Today, the House Ways and Means committee passed HB 1001 11-8. The bill will advance to the floor of the House early next week. Please call your representative(s) and urge them to vote no in this bill. The COIT Council option will leave counties, cities, towns, schools and other units with little or no voice. Visit the Action Center for suggested talking points.
South Bend Mayor Pete Buttigieg and New Haven Mayor Terry McDonald were on-hand January 21 in the Senate Tax and Fiscal Policy Committee to raise IACT’s concerns regarding SB 1. The Mayors emphasized that while this bill is a more conservative version of the broader proposal to eliminate Indiana’s personal property tax, it is most likely the first wave of eventual complete elimination. Full replacement revenues by the state must be included in any viable plan to eliminate the PPT. The House proposal to phase out the PPT will be voted upon in the Ways and Means Committee as early as Thursday. IACT urges you to continue contacting your lawmakers on both of these bills.
On Friday, Jan. 17 IACT sent out this call to action: Contact Your Legislators about Indiana's Business Personal Property Tax!
HB 1001, the phase out of Indiana’s business personal property tax, was heard on Tuesday, January 14 in the powerful House Ways and Means committee. IACT was very fortunate that Mayors Hickman, Bennett, Winnecke, Buttigieg, and Lewis were able to come to Indianapolis with very little notice and testify at the very lengthy committee hearing. Their testimony was diverse, powerful, thoughtful and well received. The bill is currently slated for a vote in the Committee on Thursday, January 23.
Press Conference Videos
Feb. 11 Press Conference Videos
to view the Feb. 11 press conference videos
Jan. 30 Press Conference Videos
- IACT Executive Director & CEO Matt Greller
- IACT President and Angola Mayor Richard Hickman
- Indianapolis Mayor Greg Ballard
- Kokomo Mayor Greg Goodnight
- Evansville Mayor Lloyd Winnecke
- South Bend Mayor Pete Buttigieg
to view the Jan. 30 press conference videos
- IACT Executive Director & CEO Matt Greller
- Dennis Costerison, Executive Director of Indiana Association of School Business Officials
- Richard Hickman, IACT President and Angola Mayor
- Larry Hesson, Hendricks County Councilman and member of Indiana Association of Counties
- Tony Ciriello, Syracuse, Ind., Police Chief