Property taxes are getting a lot of attention in this year’s Indiana legislative session. KSM’s State and Local Tax Practice is tracking a handful of bills under consideration that could affect manufacturers specifically, including SB 436, which is a proposed reduction of the so-called 30% floor for personal property tax reporting.
The reduction in the 30% floor would provide immediate relief to manufacturers, especially those with older equipment that does not turn over on a regular basis, such as:
- Welders
- Air compressors
- Lathes
- Etc.
Currently, Indiana has a 30% floor which ensures that the assessed value on assets does not drop below 30% of their original cost. With the proposed legislation, the floor would be reduced to either 25% or 15% based on the character of the assets.
The Indiana Manufacturers Association (IMA) is also keeping a close eye on SB 436, as mentioned in last week’s Legislative Briefing. To stay informed on the progress of this bill and others that may affect your manufacturing company, contact the IMA. Or, for more information about how SB 436 could reduce your company’s tax liability and future personal property tax filings, contact Chad Miller, KSM’s property tax practice leader.