A measure aimed at simplifying the state’s tax code is on its way to the House floor. But the version committee members passed doesn’t include as many changes as Governor Mike Pence was pushing for.
Pence’s proposed tax bill, sponsored by Fishers Republican Representative Todd Huston, aims to simplify the tax code by, in part, eliminating more than two dozen tax credits. It also included a change to a sales tax exemption for Hoosier businesses.
But while the Pence administration estimated the cost of that change at around $35 million, legislative fiscal analysts put its price tag as high as $230 million.
And Huston says, since that issue hasn’t been solved, the sales tax exemption change had to go.
“Because, again, we can’t yet quite get to a fiscal amount that is appropriate and meets the objectives of the bill to be largely revenue-neutral,” Huston said.
His amendment in committee also spared several tax credits from the chopping block, including a credit for donations made to Indiana colleges and universities. The bill won approval 10-6.