Governor Mike Pence has signed a tax reform bill giving Hoosier counties the option to phase out the business personal property tax.
The business personal property tax makes up 17% of Jasper's overall budget, so Seitz is happy to hear that the state won't be mandating the elimination of that tax. But he understands they aren't out of the woods yet, as a decision still needs to be made at the county level.
The premise of Senate Bill One that Pence signed on Tuesday is to eliminate the tax to make the area more attractive to potential incoming businesses. The bill also lowers the corporate tax rate, giving Indiana the second lowest corporate tax rate in the country.
Seitz says he's happy to see the law calls for state tax studies to be completed before counties make final decisions on the business personal property tax.
The mayor says Jasper abates the tax from time to time, but losing it altogether could mean a rise in residential property taxes.
"It would come out about $1.2 million a year. Of which, we would essentially recover about $800,000 of that by going to more property taxes. So, business tax versus property tax," Seitz says.
The deadline for deciding whether to keep the tax or not is July of 2015.
Copyright 2014 WFIE. All rights reserved.
1115 Mt. Auburn Road
Public File Contact: