Holdman tax bills head to floor of Senate

INDIANAPOLIS — Two tax-related bills authored or co-authored by Jay County’s state senator cleared committee Tuesday.

Two more were held for a vote at a later date.

The Indiana Senate Tax and Fiscal Policy Committee unanimously passed Senate Bills 451 and 452, sending them to the Senate floor for second reading.

Senate Bills 314 and 316 were held.

Both bills that passed did so without opposition.

Holdman’s Senate Bill 451 implements a reduction of the income tax rate by .05% during even numbered years beginning in 2030, if state general fund revenue is forecasted to increase by at least 3%. The bill is an extension of existing state law that has seen the income tax rate decrease from 3.4% in 2015 to the current 3.05%. It is set to drop to 2.95% in 2027.

David Ober of Indiana Chamber of Commerce and Andrew Berger of Indiana Manufacturers Association spoke in support of the legislation, with Ober saying it will keep the state’s tax rate competitive and will be beneficial to businesses..

Holdman, who represents Jay, Blackford, Adams and Wells counties and the southwest portion of Allen County, asked Ober if the .05% and 3% figures are reasonable. He said they are in times of “regular” inflation and added that the legislation is structured to give the state legislature time to adjust if changes are needed.

Explaining Senate Bill 452, Holdman said it was brought forward by the non-partisan Legislative Services Agency. It allows for systematic review of tax incentives.

There was no testimony on the bill.

The committee passed both Senate Bill 451 and 452 unanimously. 

State Sen. Scott Baldwin (R-Noblesville) presented Senate Bills 314 and 316, both of which he co-authored with Holdman.

He explained that Senate Bill 314 clarifies one of his previous bills to allow entities to take tax benefits when filing estimates rather than waiting for filing tax returns. Senate Bill 316 addresses investment partnerships that involve out-of-state residents, codifying that such income will be allocated to the state of residence for tax purposes.

Hamilton County resident Brian Myers and Ober both spoke in support of both bills. There was no testimony or questions in opposition.

Senate Bills 314 and 316 were both held for a vote at a later date, as was most legislation discussed during the committee hearing.