(INDIANAPOLIS) - A bill that would allow county governments to exempt new businesses from personal property taxes passed the Indiana House of Representatives Thursday.
The bill, a key item on Gov. Mike Pence's 2014 agenda, was passed by a 63-33 vote. Rep. Eric Turner (R-Cicero) authored the legislation.
The bill will now go to the Senate for discussion.
In December, Pence said he was pushing for the personal property tax exemption as a means of spurring new job creation in Indiana. The tax is levied on business equipment and accounts for a large portion of local tax collections.
Pence said he planned on finding substitute dollars for the estimated $1 billion brought in annually for local governments by the tax, but offered no specifics as to how that would be accomplished.
Democrat opponents say the move could potentially jeopardize economic development projects financed by the tax.
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