HomeMy Public PortalAbout03 - 2022-3 - OPPOSING LEGISLATION ELIMINATING BUSINESS PERSONAL PROPERTY TAX ASSESSED VALUE RESOLUTION NO. 2022-3
A RESOLUTION OPPOSING LEGISLATION REGARDING
THE BUSINESS PERSONAL PROPERTY TAX
WHEREAS, the Indiana legislature proposed changes to the depreciation floor and other aspects
of Indiana's business personal property tax as a priority in their 2022 legislative agenda; and,
WHEREAS, the Greencastle Common Council has grave concerns with all legislation that
contemplates eliminating any portion of the personal property tax without a permanent FULL
replacement guaranteed by the state; and,
WHEREAS, any contemplated revenue replacement must be a source of revenue that continues
to grow over time just as a property tax base would in order to allow communities to cover
increases in operating costs and to meet the demand for increases in services; and,
WHEREAS, a permanent state tax credit applied to ALL proposed business personal property
tax reductions, holidays, phase-outs, etc., could eliminate an unnecessary burden on local
government in order to continue building healthy Indiana communities; and,
WHERAS, the personal property tax is a relied upon method for funding local government; and,
WHEREAS, for taxing units not at the 1, 2, or 3% caps, a reduction in the tax base could result
in property owners paying more in residential, income producing residential, and agricultural
property taxes. For those communities at the caps, any phase out or reduction of business
personal property assessed value means a loss in revenue for local units of government; and,
WHEREAS, in Putnam County, the $342,240,211 in business personal property assessed value
made up 23.2% of the total taxable net assessed value of the county for 2020 pay 2021 taxes;
and,
WHEREAS, for the Greencastle Community School Corporation, the $187,138,198 in business
personal property assessed value made up 40.2% of the total taxable net assessed value of the
school district for 2020 pay 2021 taxes; and,
WHEREAS, in the City of Greencastle, the $122,616,558 in business personal property assessed
value made up 47.3% of the total net assessed value of the city for 2020 pay 2021 taxes; and,
WHEREAS, it is nearly impossible to determine the exact impact of changes to the 30%
depreciation floor to property tax revenue due the city without individually analyzing over 290
business personal property tax returns for businesses located within the city; and,
WHEREAS, the City of Greencastle, as a county seat with a large number of businesses, has the
potential to see a significant decrease in business personal property tax assessed value, a
decrease in associated revenue, and an adverse impact of the property tax caps; and,
WHEREAS, the Tax Foundation's 2022 State Business Tax Climate Index lists Indiana as
number one ranking for low property taxes; and,
WHEREAS, Indiana consistently ranks in the top states with an attractive business tax climate,
yet a community's quality of life is an increasingly greater influencer of business relocation and
growth decisions.
NOW, THEREFORE BE IS RESOLVED, by the Common Council of the City of Greencastle
that:
1. The Common Council OPPOSES all legislation that contemplates eliminating any
portion of business personal property tax assessed value that would result in a loss of
local tax revenue.
2. The Common Council urges the Indiana House of Representatives and the Indiana Senate
to insure that any revenue lost due to changes in the assessment of business personal
property be replaced with a permanent guaranteed replacement revenue stream.
This resolution shall become effective upon the date of passage.
PASSED AND RESOLVED by the Common Council of the City of Greencastle at its regular
meeting this 13th day of January, 2022.
C MMON COUNCIL OF THE CITY OF GREENCASTLE, INDIANA
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Ad ohen Cody
Hammer Stacie Langdon _/C;4----
D v urray V onica ejr
Jacob Widner
Approved and signed by me I's 13th day of January, 2022 at p.m. o'clock.
ei I —
illiam A. Dory, Jr., ,ayor /
ATTEST:
Ly a . unbar, Clerk- reasurer