New state legislation suggests eliminating the business personal property tax, and local governments are vehemently protesting.
The Kokomo Common Council is one local body opposing the tax, claiming the money would be taken away from schools and communities and would erode the regional approach to economic development. They say Howard County would lose an esti
mated 18-point-4 million dollars in tax revenue, and the burden of covering those costs would shift onto homeowners. Local governments would lose more than a billion dollars overall.
Governor Mike Pence met with mayors from across the state Tuesday, and has agreed that the legislation is potentially damaging to local communities. He says he’s open to the possibility of the state fully replacing any funds lost from qualifying small businesses, so the burden of payment doesn’t fall onto local governments and citizens.
The bill will continue onto the House and Senate as Pence and local officials work to come up with a solution.