Hoosier State Today

NFIB Indiana State Director Natalie Robinson has expressed support for SB 443, a bill aimed at providing tax relief to small businesses in Indiana. The legislation, authored by Senators Aaron Freeman and Chris Garten, proposes changes to the business personal property tax.

Robinson stated, “Indiana’s small businesses welcome any financial relief from the General Assembly and support Senate Bill 443.” She noted that small business owners are showing increased confidence in the economy and that this legislation would enhance that confidence. Robinson also thanked the senators for their efforts in prioritizing the needs of Main Street businesses.

The bill includes three key components designed to benefit small businesses:

Firstly, it proposes raising the exemption threshold from $80,000 to $160,000 for the acquisition cost of a taxpayer's total business personal property within a county. This change is expected to reduce tax burdens on smaller enterprises with lower capital expenditures compared to larger companies. As a result, more funds could be available for reinvestment into business growth and workforce expansion.

Secondly, by reducing tax burdens on small businesses, Indiana aims to bolster its economic competitiveness. Small enterprises play a crucial role in driving entrepreneurship and innovation; thus, easing financial pressures can make Indiana more appealing for new and expanding businesses.

Lastly, the bill plans to gradually reduce the minimum valuation percentage of business personal property to zero by 2027. While this primarily affects larger businesses with substantial personal property holdings, small businesses might indirectly benefit from potential reductions in overall property tax rates within their areas.