Losses in Elkhart Co. due to state business tax proposal would total $1.25 million, with Elkhart, Elkhart schools suffering the most
The city of Elkhart would lose the most, with $314,614 on the line if lawmakers approve a tax break for businesses. See what other schools and cities would lose.
Monday Feb. 17, 2014
The losses to local taxing entities due to Senate Bill 1 aren't necessarily through the roof.
But coming on top of losses brought on by property tax caps — cause for concern here and in many Indiana locales since 2009 — the proposal in the Indiana legislature is giving many local leaders the jitters.
As is, they're struggling to make do with less funds brought on by the caps and they worry it'll get worse if S.B. 1, focus of ongoing debate in Indianapolis, becomes law. The state, they say, should create a means for locales to recoup any funds lost to S.B. 1 if it becomes law.
- Look here for previous Elkhart Truth stories on the issue.
Below are some figures. The numbers in the center column show the estimated lost business tax revenue selected locales here would experience in 2016 if S.B. 1 becomes law. The figures in the right-hand column show estimated losses in 2016 due to property tax caps.
* S.B. 1 would eliminate the business property tax on businesses with less than $25,000 worth of property.
** The caps, tightened starting in 2009, limit property taxes on homes, buildings and land.
*** Includes the tax impact to all taxing units, including many not listed here, like library systems, towns and townships.
Source: Senate Majority Fiscal Office, Indiana Legislative Services Agency
Tim Vandenack is a reporter at the Elkhart Truth newspaper. Reach him at email@example.com or 574-296-5884. Visit him on Facebook or follow him on Twitter at @timvandenack.