Resolution - Business Personal Property

Wolcott Town Council

RESOLUTION NO. 2022-3-3

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, Wolcott Town Council opposes all legislation that contemplates eliminating any portion of the personal property tax without 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 growing communities to meet the demand for services; and,

WHEREAS, a permanent state tax credit applied to ALL proposed business personal property tax reductions, holidays, phase-outs, etc., could eliminate unnecessary burden on local government in order to continue building health 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 caps, a reduction in the tax base could result in property owners paying more in residential property taxes. For those communities at the caps, any phase out of the business personal property tax means a loss in revenue for local units of government; and

WHEREAS, Business Personal Property Tax distributions to local units of government exceed $1 Billion, including $ 1,701,626.40 in White County and which represents about 25.25% of White County’s property tax revenue; and

WHEREAS, the Town of Wolcott in White County would lose an estimated $113,717.96 in tax revenues; that is an estimated 17.6% of the Town of Wolcott Property tax revenue and

WHEREAS, significantly reducing the business personal property tax will have a dramatic impact on the Town of Wolcott’s ability to repay tax increment financing bonds because a significant portion of the revenue backing the bonds comes from personal property; and

WHEREAS, The Tax Foundation 2022 State Business Tax Climate Index lists Indiana as number one ranking for property tax; 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 it is resolved by the Council of the Town of Wolcott that we oppose all legislation that contemplates eliminating any portion of the business personal property tax without full and permanent replacement guaranteed by the state.

This resolution shall become effective upon the date of passage.

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Cameron Emond, Council President Jerry Lietz, Council Vice President

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Michael Johnson, Council Member Darwin Miller, Council Member

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Rex Pearson, Council Member

Attest:

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Pamela Bennett, Clerk-Treasurer

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Date