Inventory Tax Credit Program

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Background: Somewhere between May 14, 2002, and June 3, 2002, there was a philosophical change during the 2002 General Assembly special session regarding inventory tax removal. Instead of using credits paid by the state, the inventory tax will now be eliminated by shifting it to all other property taxpayers. It appears this philosophical change came about as a result of an HB 1001 (SS) amendment in the House Ways and Means Committee. This amendment apparently was submitted by Representative Sheila Klinker so more state money would be available for spending instead of property tax relief in the form of inventory tax credits.

As a result of the special session in 2002, the business inventory tax will be shifted in two ways to all other property taxes through an increased rate.

Manufacturing inventory (the 30% of total business inventory assessed value used in the production of finished goods that would qualify for an interstate commerce exemption) will be exempt from property taxes paid in 2004, 2005, and 2006. This manufacturing inventory tax shift to all other property taxes will be about $72.4M in FY 2004, $148.0M in FY 2005, $154.6M in 2006, and $80.8M in FY 2007.
There will be a 100% business inventory assessed value deduction beginning with property taxes paid in 2007. The shift to all other property taxes will be about $269.3M in FY 2007 and $562.9M in FY 2008.

About 51.7% of these business inventory tax shifts will be to homestead property. It is interesting to note that about 40 townships account for 80% of the total business inventory tax; homestead property taxes in these townships are likely to skyrocket!

Benefits: This Inventory Tax Credit Program will eliminate the manufacturing inventory tax shift to all other property taxes beginning with property taxes paid in 2004. A 100% business inventory assessed value tax credit, beginning with property taxes paid in 2007, will be pursued during a future General Assembly session.

The two tables that follow show (1) the Percent Residential Real Property Net Levy Increases By County after the Manufacturing Inventory Tax Shift and the Total Inventory Tax Shift and (2) the Residential Real Property Tax Increases By County from the Manufacturing Inventory Tax Shift. These are the inventory tax shifts to homeowners that will occur if the Inventory Tax Credit Program is not enacted.

Percent Residential Real Property Net Levy Increases By County
After Manufacturing Inventory Tax Shift and Total Inventory Tax Shift
(compiled March 17, 2003)

Column A County	Column B 2000 Payable Residential Real Property Net Levy	Col. C Res. Share of Total Real Prop. Net Levy	Column D 2000 Pay Total Inventory Tax	Column E 2000 Pay Mfg. Inventory Tax (1)	Column F Residential Real Property Net Levy after Mfg. Shift (2)	Col. G % Res. Real Prop. Net Levy Incr. after Mfg. Shift (3)	Column H Residential Real Property Net Levy after Total Shift (4)	Col. I % Res. Real Prop. Net Levy Incr. after Total Shift (5)
Adams	6,244,113	46.5%	2,490,774	747,232	6,591,576	5.6%	7,402,323	18.5%
Allen	96,393,735	54.7%	19,122,991	5,736,897	99,531,817	3.3%	106,854,011	10.9%
Bartholomew	21,686,388	54.7%	5,344,540	1,603,362	22,563,427	4.0%	24,609,851	13.5%
Benton	2,343,889	34.1%	414,807	124,442	2,386,324	1.8%	2,485,338	6.0%
Blackford	2,894,686	43.8%	931,856	279,476	3,017,096	4.2%	3,302,839	14.1%
Boone	17,966,490	61.3%	2,215,411	664,623	18,373,904	2.3%	19,324,536	7.6%
Brown	3,406,663	51.5%	164,565	49,370	3,432,088	0.7%	3,491,414	2.5%
Carroll	5,212,776	47.7%	1,035,465	310,640	5,360,951	2.8%	5,706,693	9.5%
Cass	8,201,162	44.9%	3,253,106	975,932	8,639,355	5.3%	9,661,807	17.8%
Clark	29,530,787	58.0%	7,084,076	2,125,223	30,763,416	4.2%	33,639,551	13.9%
Clay	4,221,255	46.7%	798,765	239,630	4,333,162	2.7%	4,594,278	8.8%
Clinton	8,638,673	48.3%	1,796,943	539,083	8,899,050	3.0%	9,506,596	10.0%
Crawford	722,823	20.0%	146,620	43,986	731,620	1.2%	752,147	4.1%
Daviess	5,121,375	44.4%	1,530,114	459,034	5,325,186	4.0%	5,800,746	13.3%
Dearborn	12,082,662	54.0%	1,826,357	547,907	12,378,531	2.4%	13,068,894	8.2%
Decatur	3,987,288	42.0%	1,595,768	478,730	4,188,355	5.0%	4,657,511	16.8%
DeKalb	8,614,605	47.4%	4,328,241	1,298,472	9,230,081	7.1%	10,666,191	23.8%
Delaware	31,882,656	55.0%	8,130,545	2,439,164	33,224,195	4.2%	36,354,455	14.0%
Dubois	10,370,559	49.4%	4,049,535	1,214,861	10,970,700	5.8%	12,371,029	19.3%
Elkhart	47,883,011	46.7%	22,312,351	6,693,705	51,008,971	6.5%	58,302,878	21.8%
Fayette	5,816,548	53.2%	1,003,041	300,912	5,976,633	2.8%	6,350,166	9.2%
Floyd	23,115,045	65.6%	4,831,723	1,449,517	24,065,928	4.1%	26,284,655	13.7%
Fountain	2,147,148	33.1%	638,767	191,630	2,210,578	3.0%	2,358,580	9.8%
Franklin	3,757,865	45.4%	358,762	107,629	3,806,728	1.3%	3,920,743	4.3%
Fulton	4,543,712	46.5%	1,274,522	382,357	4,721,508	3.9%	5,136,365	13.0%
Gibson	7,083,206	44.0%	2,215,022	664,507	7,375,589	4.1%	8,057,816	13.8%
Grant	16,520,931	52.0%	4,326,380	1,297,914	17,195,846	4.1%	18,770,648	13.6%
Greene	5,122,931	46.4%	1,176,730	353,019	5,286,732	3.2%	5,668,934	10.7%
Hamilton	128,794,240	78.6%	9,347,819	2,804,346	130,998,456	1.7%	136,141,626	5.7%
Hancock	17,093,085	65.0%	1,917,849	575,355	17,467,065	2.2%	18,339,687	7.3%
Harrison	5,505,931	44.7%	967,393	290,218	5,635,658	2.4%	5,938,356	7.9%
Hendricks	49,854,528	76.5%	5,583,567	1,675,070	51,135,956	2.6%	54,125,956	8.6%
Henry	10,285,135	55.3%	2,180,713	654,214	10,646,915	3.5%	11,491,069	11.7%
Howard	25,411,533	56.8%	6,465,660	1,939,698	26,513,281	4.3%	29,084,027	14.5%
Huntington	7,134,573	43.1%	2,198,445	659,534	7,418,832	4.0%	8,082,103	13.3%
Jackson	7,232,661	44.3%	4,618,232	1,385,470	7,846,424	8.5%	9,278,538	28.3%
Jasper	6,759,153	49.9%	1,710,420	513,126	7,015,203	3.8%	7,612,653	12.6%
Jay	3,134,051	37.2%	1,091,495	327,449	3,255,862	3.9%	3,540,087	13.0%
Jefferson	6,073,488	45.8%	2,102,772	630,832	6,362,409	4.8%	7,036,558	15.9%
Jennings	4,892,033	53.6%	712,953	213,886	5,006,676	2.3%	5,274,176	7.8%
Johnson	40,792,340	67.7%	5,230,843	1,569,253	41,854,724	2.6%	44,333,620	8.7%
Knox	7,319,106	46.0%	2,376,945	713,084	7,647,124	4.5%	8,412,501	14.9%
Kosciusko	20,410,804	54.2%	5,162,024	1,548,607	21,250,149	4.1%	23,208,621	13.7%
LaGrange	6,097,913	43.3%	1,980,874	594,262	6,355,229	4.2%	6,955,631	14.1%
Lake	162,493,545	45.1%	36,207,592	10,862,277	167,392,432	3.0%	178,823,169	10.0%
LaPorte	33,148,670	55.1%	6,391,221	1,917,366	34,205,138	3.2%	36,670,232	10.6%
Lawrence	8,777,823	53.5%	1,355,908	406,772	8,995,446	2.5%	9,503,234	8.3%
Madison	31,893,285	58.1%	6,704,838	2,011,451	33,061,938	3.7%	35,788,795	12.2%
Marion	280,825,881	47.6%	74,492,909	22,347,873	291,463,468	3.8%	316,284,506	12.6%
Marshall	10,002,346	46.2%	2,905,667	871,700	10,405,071	4.0%	11,344,764	13.4%
Martin	1,639,389	44.4%	275,631	82,689	1,676,103	2.2%	1,761,769	7.5%
Miami	6,526,242	51.5%	1,524,707	457,412	6,761,809	3.6%	7,311,466	12.0%
Monroe	34,178,881	56.8%	4,514,749	1,354,425	34,948,194	2.3%	36,743,258	7.5%
Montgomery	8,781,352	42.1%	4,486,879	1,346,064	9,348,045	6.5%	10,670,328	21.5%
Morgan	17,165,242	68.5%	1,614,434	484,330	17,497,008	1.9%	18,271,129	6.4%
Newton	4,125,598	43.6%	755,452	226,636	4,224,411	2.4%	4,454,975	8.0%
Noble	7,624,461	45.4%	2,785,929	835,779	8,003,905	5.0%	8,889,273	16.6%
Ohio	977,798	48.3%	32,088	9,626	982,448	0.5%	993,297	1.6%
Orange	2,417,017	38.6%	555,285	166,586	2,481,309	2.7%	2,631,357	8.9%
Owen	3,275,867	42.8%	672,871	201,861	3,362,264	2.6%	3,563,856	8.8%
Parke	2,990,591	44.7%	320,577	96,173	3,033,580	1.4%	3,133,889	4.8%
Perry	3,665,961	45.1%	762,962	228,889	3,769,190	2.8%	4,010,057	9.4%
Pike	1,990,241	38.3%	887,047	266,114	2,092,163	5.1%	2,329,980	17.1%
Porter	61,968,429	68.0%	11,469,740	3,440,922	64,308,255	3.8%	69,767,852	12.6%
Posey	7,132,725	44.3%	2,364,785	709,436	7,447,005	4.4%	8,180,325	14.7%
Pulaski	2,475,803	33.0%	1,041,941	312,582	2,578,955	4.2%	2,819,644	13.9%
Putnam	6,924,929	47.1%	1,600,151	480,045	7,151,030	3.3%	7,678,600	10.9%
Randolph	5,090,520	42.5%	1,150,965	345,290	5,237,268	2.9%	5,579,680	9.6%
Ripley	4,276,281	40.5%	1,130,595	339,179	4,413,648	3.2%	4,734,172	10.7%
Rush	3,071,055	36.4%	1,038,323	311,497	3,184,440	3.7%	3,449,005	12.3%
St. Joseph	86,441,064	53.8%	21,316,817	6,395,045	89,881,598	4.0%	97,909,512	13.3%
Scott	4,162,545	48.3%	1,088,773	326,632	4,320,308	3.8%	4,688,422	12.6%
Shelby	8,716,947	47.8%	2,195,086	658,526	9,031,722	3.6%	9,766,198	12.0%
Spencer	4,307,344	47.4%	1,527,555	458,267	4,524,562	5.0%	5,031,405	16.8%
Starke	5,296,031	53.9%	768,818	230,645	5,420,349	2.3%	5,710,424	7.8%
Steuben	11,274,913	62.2%	2,125,673	637,702	11,671,563	3.5%	12,597,081	11.7%
Sullivan	3,872,530	43.3%	803,354	241,006	3,976,886	2.7%	4,220,382	9.0%
Switzerland	837,600	25.7%	111,191	33,357	846,173	1.0%	866,176	3.4%
Tippecanoe	42,794,340	56.0%	13,302,893	3,990,868	45,029,226	5.2%	50,243,960	17.4%
Tipton	3,704,009	45.4%	748,880	224,664	3,806,006	2.8%	4,044,001	9.2%
Union	1,311,548	36.1%	370,443	111,133	1,351,667	3.1%	1,445,278	10.2%
Vanderburgh	40,011,307	47.3%	11,055,237	3,316,571	41,580,045	3.9%	45,240,434	13.1%
Vermillion	3,533,242	48.9%	807,824	242,347	3,651,750	3.4%	3,928,268	11.2%
Vigo	30,616,189	57.2%	6,682,446	2,004,734	31,762,896	3.7%	34,438,548	12.5%
Wabash	7,626,489	52.1%	2,305,012	691,504	7,986,762	4.7%	8,827,400	15.7%
Warren	1,617,177	32.4%	302,981	90,894	1,646,627	1.8%	1,715,343	6.1%
Warrick	19,033,597	72.3%	2,144,770	643,431	19,498,797	2.4%	20,584,265	8.1%
Washington	3,769,148	40.6%	971,476	291,443	3,887,474	3.1%	4,163,567	10.5%
Wayne	16,142,899	46.1%	4,529,445	1,358,834	16,769,321	3.9%	18,230,973	12.9%
Wells	6,070,865	50.4%	1,683,017	504,905	6,325,337	4.2%	6,919,106	14.0%
White	7,067,040	46.8%	1,857,521	557,256	7,327,836	3.7%	7,936,360	12.3%
Whitley	6,695,477	48.6%	1,602,707	480,812	6,929,152	3.5%	7,474,393	11.6%
Total	1,770,645,789	51.7%	403,390,946	121,017,202	1,833,249,888	3.5%	1,979,326,302	11.8%

Source: 2000 Payable Real Property Taxes Net Levy by Property Class and by County from Department of Local Government Finance
( web page http://www.in.gov/dlgf/pubs/taxbook/levy/table34.html )

Notes:
(1) Manufacturing Inventory Tax = (Column D)(0.3)
(2) Residential Real Prop. Net Levy after Manufacturing Inventory Tax Shift = (Column B) + (Column E)(Column C)
(3) Percent Res. Real Prop. Net Levy Increase after Mfg. Inv. Tax Shift = (100)(Column F - Column B) / (Column B)
(4) Residential Real Property Net Levy after Total Inventory Tax Shift = (Column B) + (Column D)(Column C)
(5) Percent Res. Real Prop. Net Levy Incr. after Total Inv. Tax Shift = (100)(Column H - Column B) / (Column B)

Residential Real Property Tax Increases By County
From Manufacturing Inventory Tax Shift
(compiled March 17, 2003)

Column A County	Col. B Pay 2002 Average Net Rate	Column C % Residential Real Property Net Levy Incr. From Mfg. Inv. Tax Shift	Col. D Adjusted Average Net Rate (1)	Col. E Average Net Rate Diff. (2)	Column F Property Tax Increase For $50,000 Residence (3)	Column G Property Tax Increase For $100,000 Residence (4)	Column H Property Tax Increase For $150,000 Residence (5)
Adams	2.5418	5.6%	2.6841	0.1423	$71	$142	$213
Allen	2.8703	3.3%	2.9650	0.0947	$47	$95	$142
Bartholomew	2.4388	4.0%	2.5364	0.0976	$49	$98	$146
Benton	2.4530	1.8%	2.4972	0.0442	$22	$44	$66
Blackford	3.2619	4.2%	3.3989	0.1370	$68	$137	$206
Boone	2.7849	2.3%	2.8490	0.0641	$32	$64	$96
Brown	2.0903	0.7%	2.1049	0.0146	$7	$15	$22
Carroll	2.5192	2.8%	2.5897	0.0705	$35	$71	$106
Cass	2.9659	5.3%	3.1231	0.1572	$79	$157	$236
Clark	2.9936	4.2%	3.1193	0.1257	$63	$126	$189
Clay	2.2191	2.7%	2.2790	0.0599	$30	$60	$90
Clinton	2.8542	3.0%	2.9398	0.0856	$43	$86	$128
Crawford	2.9592	1.2%	2.9947	0.0355	$18	$36	$53
Daviess	2.6354	4.0%	2.7408	0.1054	$53	$105	$158
Dearborn	2.6877	2.4%	2.7522	0.0645	$32	$65	$97
Decatur	2.0838	5.0%	2.1880	0.1042	$52	$104	$156
DeKalb	2.3640	7.1%	2.5318	0.1678	$84	$168	$252
Delaware	3.6936	4.2%	3.8487	0.1551	$78	$155	$233
Dubois	2.2258	5.8%	2.3549	0.1291	$65	$129	$194
Elkhart	2.6005	6.5%	2.7695	0.1690	$85	$169	$254
Fayette	2.9498	2.8%	3.0324	0.0826	$41	$83	$124
Floyd	2.9357	4.1%	3.0561	0.1204	$60	$120	$181
Fountain	2.1584	3.0%	2.2232	0.0648	$32	$65	$97
Franklin	2.0280	1.3%	2.0544	0.0264	$13	$26	$40
Fulton	2.5041	3.9%	2.6018	0.0977	$49	$98	$147
Gibson	2.7175	4.1%	2.8289	0.1114	$56	$111	$167
Grant	2.9511	4.1%	3.0721	0.1210	$60	$121	$182
Greene	2.6961	3.2%	2.7824	0.0863	$43	$86	$129
Hamilton	2.5413	1.7%	2.5845	0.0432	$22	$43	$65
Hancock	2.5832	2.2%	2.6400	0.0568	$28	$57	$85
Harrison	1.9270	2.4%	1.9732	0.0462	$23	$46	$69
Hendricks	2.8401	2.6%	2.9139	0.0738	$37	$74	$111
Henry	3.0868	3.5%	3.1948	0.1080	$54	$108	$162
Howard	2.6530	4.3%	2.7671	0.1141	$57	$114	$171
Huntington	2.7050	4.0%	2.8132	0.1082	$54	$108	$162
Jackson	2.0615	8.5%	2.2367	0.1752	$88	$175	$263
Jasper	2.0429	3.8%	2.1205	0.0776	$39	$78	$116
Jay	2.6187	3.9%	2.7208	0.1021	$51	$102	$153
Jefferson	2.5606	4.8%	2.6835	0.1229	$61	$123	$184
Jennings	2.2968	2.3%	2.3496	0.0528	$26	$53	$79
Johnson	2.5400	2.6%	2.6060	0.0660	$33	$66	$99
Knox	3.0965	4.5%	3.2358	0.1393	$70	$139	$209
Kosciusko	2.2529	4.1%	2.3453	0.0924	$46	$92	$139
LaGrange	2.0282	4.2%	2.1134	0.0852	$43	$85	$128
Lake	6.6305	3.0%	6.8294	0.1989	$99	$199	$298
LaPorte	3.2403	3.2%	3.3440	0.1037	$52	$104	$156
Lawrence	3.1768	2.5%	3.2562	0.0794	$40	$79	$119
Madison	3.4304	3.7%	3.5573	0.1269	$63	$127	$190
Marion	3.2087	3.8%	3.3306	0.1219	$61	$122	$183
Marshall	2.5371	4.0%	2.6386	0.1015	$51	$102	$152
Martin	2.4846	2.2%	2.5393	0.0547	$27	$55	$82
Miami	2.7957	3.6%	2.8963	0.1006	$50	$101	$151
Monroe	2.6677	2.3%	2.7291	0.0614	$31	$61	$92
Montgomery	2.7728	6.5%	2.9530	0.1802	$90	$180	$270
Morgan	2.1962	1.9%	2.2379	0.0417	$21	$42	$63
Newton	2.5863	2.4%	2.6484	0.0621	$31	$62	$93
Noble	2.3462	5.0%	2.4635	0.1173	$59	$117	$176
Ohio	1.7737	0.5%	1.7826	0.0089	$4	$9	$13
Orange	1.9823	2.7%	2.0358	0.0535	$27	$54	$80
Owen	2.9845	2.6%	3.0621	0.0776	$39	$78	$116
Parke	2.4221	1.4%	2.4560	0.0339	$17	$34	$51
Perry	2.9182	2.8%	2.9999	0.0817	$41	$82	$123
Pike	2.5828	5.1%	2.7145	0.1317	$66	$132	$198
Porter	3.2336	3.8%	3.3565	0.1229	$61	$123	$184
Posey	2.2321	4.4%	2.3303	0.0982	$49	$98	$147
Pulaski	2.4175	4.2%	2.5190	0.1015	$51	$102	$152
Putnam	2.4412	3.3%	2.5218	0.0806	$40	$81	$121
Randolph	2.5260	2.9%	2.5993	0.0733	$37	$73	$110
Ripley	2.2144	3.2%	2.2853	0.0709	$35	$71	$106
Rush	2.4645	3.7%	2.5557	0.0912	$46	$91	$137
St. Joseph	4.1895	4.0%	4.3571	0.1676	$84	$168	$251
Scott	2.7594	3.8%	2.8643	0.1049	$52	$105	$157
Shelby	2.3414	3.6%	2.4257	0.0843	$42	$84	$126
Spencer	1.9906	5.0%	2.0901	0.0995	$50	$100	$149
Starke	2.7922	2.3%	2.8564	0.0642	$32	$64	$96
Steuben	2.2181	3.5%	2.2957	0.0776	$39	$78	$116
Sullivan	2.8138	2.7%	2.8898	0.0760	$38	$76	$114
Switzerland	2.6942	1.0%	2.7211	0.0269	$13	$27	$40
Tippecanoe	2.5669	5.2%	2.7004	0.1335	$67	$134	$200
Tipton	2.3001	2.8%	2.3645	0.0644	$32	$64	$97
Union	2.7367	3.1%	2.8215	0.0848	$42	$85	$127
Vanderburgh	2.9243	3.9%	3.0383	0.1140	$57	$114	$171
Vermillion	2.6275	3.4%	2.7168	0.0893	$45	$89	$134
Vigo	3.3910	3.7%	3.5165	0.1255	$63	$126	$188
Wabash	2.5323	4.7%	2.6513	0.1190	$60	$119	$179
Warren	2.2325	1.8%	2.2727	0.0402	$20	$40	$60
Warrick	2.1723	2.4%	2.2244	0.0521	$26	$52	$78
Washington	2.4474	3.1%	2.5233	0.0759	$38	$76	$114
Wayne	3.1247	3.9%	3.2466	0.1219	$61	$122	$183
Wells	2.5172	4.2%	2.6229	0.1057	$53	$106	$159
White	2.2653	3.7%	2.3491	0.0838	$42	$84	$126
Whitley	2.3554	3.5%	2.4378	0.0824	$41	$82	$124
Total	3.0311	3.5%	3.1372	0.1061	$53	$106	$159

Source: Indiana Handbook of Taxes, Revenues, and Appropriations for Fiscal Year 2002 (Pages 103-108)
( web page http://www.in.gov/legislative/pdf/2002taxbookweb.pdf )
Key: Red denotes the ten counties with the greatest residential real property tax increases.
Notes:
(1) Adjusted Average Net Rate = (Column B) + (Column B)(Column C)
(2) Average Net Rate Difference = (Column D) - (Column B)
(3) Property Tax Increase For $50,000 Taxable Value Residence = ($50,000)(Column E) / 100
(4) Property Tax Increase For $100,000 Taxable Value Residence = ($100,000)(Column E) / 100
(5) Property Tax Increase For $150,000 Taxable Value Residence = ($150,000)(Column E) / 100

Key Provisions: This Inventory Tax Credit Program (1) eliminates the exemption of manufacturing inventory from property taxes payable in 2004, 2005, and 2006 and (2) establishes a property tax replacement credit for manufacturing inventory for property taxes payable in 2004 and each year thereafter. The manufacturing inventory tax credit amount for each subsequent year is the same as computed in 2003 and payable in 2004. This Program does not change the provision passed in the special session that gives counties the option to shift their inventory tax to the County Economic Development Income Tax (CEDIT) paid by a county's individual income tax payers.

Cost and Payment: The maximum estimated cost of the manufacturing inventory tax credits, to be paid out of the Property Tax Replacement Fund, is $72.4M in FY 2004 and $144.8M in FY 2005 and each FY thereafter. The Homestead Credit overpayment correction of $111.4M in FY 2004 and $132.1M in FY 2005 will just about pay for the manufacturing inventory tax credits. Even though modest transfers from the General Fund to the Property Tax Replacement Fund may be necessary from time-to-time, the net revenue increases ($616.2M in FY 2003, $607.6M in FY 2004, $554.4M in FY 2005) passed during the special session provide more than enough revenue for this Program. Also, at some point, increased economic activity resulting from the credits will generate additional revenue. For example, it has been estimated that $400 million in new revenue will be generated as early as five years after the inventory tax is completely eliminated in 2007. The 2004-07 Inventory Tax Shifts By County are included in the following table.

Inventory Tax Shifts By County

(compiled March 14, 2003)

County

2000 Payable
Inventory Tax

State
Rank

Percent
Total

2004
Shift (1) (3)

2005
Shift (1) (3)

2006
Shift (1) (3)

2007
Shift (2) (3)

Adams

2,490,774

31

0.6175%

904,020

934,278

976,268

3,400,881

Allen

19,122,991

5

4.7406%

6,940,238

7,172,528

7,494,889

26,108,855

Bartholomew

5,344,540

17

1.3249%

1,939,654

2,004,574

2,094,667

7,296,887

Benton

414,807

83

0.1028%

150,499

155,536

162,527

566,171

Blackford

931,856

70

0.2310%

338,184

349,503

365,211

1,272,233

Boone

2,215,411

35

0.5492%

804,029

830,940

868,285

3,024,719

Brown

164,565

89

0.0408%

59,731

61,730

64,505

224,706

Carroll

1,035,465

66

0.2567%

375,809

388,387

405,843

1,413,775

Cass

3,253,106

28

0.8064%

1,180,570

1,220,083

1,274,918

4,441,248

Clark

7,084,076

11

1.7561%

2,570,930

2,656,979

2,776,394

9,671,721

Clay

798,765

74

0.1980%

289,872

299,574

313,038

1,090,485

Clinton

1,796,943

47

0.4455%

652,212

674,042

704,336

2,453,591

Crawford

146,620

90

0.0363%

53,143

54,922

57,390

199,922

Daviess

1,530,114

54

0.3793%

555,295

573,881

599,673

2,088,995

Dearborn

1,826,357

46

0.4528%

662,899

685,086

715,877

2,493,796

Decatur

1,595,768

53

0.3956%

579,158

598,543

625,444

2,178,767

DeKalb

4,328,241

25

1.0730%

1,570,872

1,623,449

1,696,413

5,909,548

Delaware

8,130,545

10

2.0155%

2,950,692

3,049,452

3,186,506

11,100,366

Dubois

4,049,535

27

1.0039%

1,469,710

1,518,901

1,587,166

5,528,979

Elkhart

22,312,351

3

5.5312%

8,097,677

8,368,706

8,744,827

30,463,084

Fayette

1,003,041

67

0.2487%

364,097

376,283

393,195

1,369,715

Floyd

4,831,723

20

1.1978%

1,753,579

1,812,271

1,893,722

6,596,884

Fountain

638,767

81

0.1583%

231,751

239,508

250,272

871,837

Franklin

358,762

85

0.0889%

130,150

134,506

140,551

489,617

Fulton

1,274,522

58

0.3160%

462,624

478,108

499,596

1,740,370

Gibson

2,215,022

36

0.5491%

803,882

830,788

868,127

3,024,168

Grant

4,326,380

26

1.0725%

1,570,140

1,622,693

1,695,623

5,906,794

Greene

1,176,730

59

0.2917%

427,049

441,342

461,178

1,606,538

Hamilton

9,347,819

9

2.3173%

3,392,527

3,506,075

3,663,651

12,762,530

Hancock

1,917,849

44

0.4754%

695,986

719,280

751,607

2,618,266

Harrison

967,393

69

0.2398%

351,067

362,817

379,124

1,320,699

Hendricks

5,583,567

16

1.3842%

2,026,469

2,094,295

2,188,420

7,623,482

Henry

2,180,713

39

0.5406%

791,438

817,928

854,689

2,977,355

Howard

6,465,660

14

1.6028%

2,346,499

2,425,036

2,534,027

8,827,421

Huntington

2,198,445

37

0.5450%

797,880

824,585

861,645

3,001,588

Jackson

4,618,232

21

1.1449%

1,676,134

1,732,234

1,810,087

6,305,537

Jasper

1,710,420

48

0.4240%

620,736

641,512

670,344

2,335,180

Jay

1,091,495

62

0.2706%

396,158

409,418

427,819

1,490,330

Jefferson

2,102,772

42

0.5213%

763,183

788,727

824,175

2,871,060

Jennings

712,953

79

0.1767%

258,689

267,347

279,363

973,175

Johnson

5,230,843

18

1.2967%

1,898,369

1,961,907

2,050,083

7,141,575

Knox

2,376,945

32

0.5892%

862,589

891,460

931,525

3,245,019

Kosciusko

5,162,024

19

1.2797%

1,873,481

1,936,186

2,023,206

7,047,948

LaGrange

1,980,874

43

0.4911%

718,970

743,034

776,429

2,704,733

Lake

36,207,592

2

8.9758%

13,140,571

13,580,385

14,190,740

49,434,219

LaPorte

6,391,221

15

1.5844%

2,319,562

2,397,197

2,504,936

8,726,083

Lawrence

1,355,908

57

0.3361%

492,050

508,519

531,374

1,851,071

Madison

6,704,838

12

1.6621%

2,433,314

2,514,757

2,627,780

9,154,016

Marion

74,492,909

1

18.4667%

27,035,249

27,940,117

29,195,853

101,705,350

Marshall

2,905,667

29

0.7203%

1,054,519

1,089,814

1,138,794

3,967,052

Martin

275,631

88

0.0683%

99,991

103,338

107,982

376,162

Miami

1,524,707

56

0.3780%

553,392

571,914

597,618

2,081,835

Monroe

4,514,749

23

1.1192%

1,638,509

1,693,350

1,769,455

6,163,994

Montgomery

4,486,879

24

1.1123%

1,628,407

1,682,910

1,758,546

6,125,992

Morgan

1,614,434

50

0.4002%

585,893

605,503

632,716

2,204,102

Newton

755,452

77

0.1873%

274,207

283,385

296,121

1,031,555

Noble

2,785,929

30

0.6906%

1,011,038

1,044,878

1,091,839

3,803,480

Ohio

32,088

92

0.0080%

11,712

12,104

12,648

44,060

Orange

555,285

82

0.1377%

201,593

208,340

217,704

758,383

Owen

672,871

80

0.1668%

244,195

252,368

263,711

918,651

Parke

320,577

86

0.0795%

116,388

120,284

125,690

437,846

Perry

762,962

76

0.1891%

276,842

286,108

298,967

1,041,468

Pike

887,047

71

0.2199%

321,934

332,709

347,662

1,211,099

Porter

11,469,740

7

2.8433%

4,162,591

4,301,913

4,495,257

15,659,475

Posey

2,364,785

33

0.5862%

858,197

886,921

926,782

3,228,497

Pulaski

1,041,941

64

0.2583%

378,151

390,808

408,372

1,422,587

Putnam

1,600,151

52

0.3967%

580,769

600,207

627,183

2,184,825

Randolph

1,150,965

60

0.2853%

417,679

431,659

451,059

1,571,290

Ripley

1,130,595

61

0.2803%

410,359

424,094

443,154

1,543,752

Rush

1,038,323

65

0.2574%

376,834

389,446

406,949

1,417,631

St. Joseph

21,316,817

4

5.2844%

7,736,362

7,995,297

8,354,636

29,103,833

Scott

1,088,773

63

0.2699%

395,134

408,359

426,712

1,486,474

Shelby

2,195,086

38

0.5442%

796,709

823,375

860,380

2,997,182

Spencer

1,527,555

55

0.3787%

554,417

572,973

598,725

2,085,690

Starke

768,818

75

0.1906%

279,038

288,378

301,339

1,049,730

Steuben

2,125,673

41

0.5270%

771,528

797,351

833,187

2,902,453

Sullivan

803,354

73

0.1992%

291,629

301,390

314,935

1,097,094

Switzerland

111,191

91

0.0276%

40,406

41,759

43,636

152,007

Tippecanoe

13,302,893

6

3.2978%

4,827,979

4,989,571

5,213,822

18,162,634

Tipton

748,880

78

0.1856%

271,718

280,813

293,434

1,022,192

Union

370,443

84

0.0918%

134,395

138,893

145,136

505,589

Vanderburgh

11,055,237

8

2.7406%

4,012,238

4,146,528

4,332,889

15,093,855

Vermillion

807,824

72

0.2003%

293,239

303,054

316,674

1,103,152

Vigo

6,682,446

13

1.6566%

2,425,262

2,506,436

2,619,085

9,123,725

Wabash

2,305,012

34

0.5714%

836,530

864,528

903,383

3,146,986

Warren

302,981

87

0.0751%

109,946

113,626

118,733

413,613

Warrick

2,144,770

40

0.5317%

778,409

804,462

840,618

2,928,338

Washington

971,476

68

0.2408%

352,531

364,330

380,705

1,326,206

Wayne

4,529,445

22

1.1228%

1,643,779

1,698,796

1,775,147

6,183,821

Wells

1,683,017

49

0.4172%

610,781

631,224

659,593

2,297,729

White

1,857,521

45

0.4605%

674,172

696,737

728,051

2,536,204

Whitley

1,602,707

51

0.3973%

581,647

601,115

628,131

2,188,130

Total

403,390,946

100.000%

146,400,439

151,300,454

158,100,474

550,751,652

Source: 2000 Payable Total Inventory Tax Net Levy by County from Dept. of Local Gov. Finance

( web page http://www.in.gov/dlgf/pubs/taxbook/levy/table42.html )

Notes:

(1) The Manufacturing Inventory Tax shift will average 30% of the statewide total Inventory Tax.

(2) All the Inventory Tax will be shifted beginning 2007.

(3) The 2004-07 Shifts are computed by multiplying each year's Total Shift by the Percent Total.

Indiana Senate Bill 485: The Manufacturing Inventory Tax Credit is included in this Senate Bill, which was authored by State Senator Jeff Drozda and referred to the Finance Committee in the Indiana Senate on January 13, 2004.

This page was last updated on 03/19/10.

Inventory Tax Shifts By County
(compiled March 14, 2003)

County	2000 Payable Inventory Tax	State Rank	Percent Total	2004 Shift (1) (3)	2005 Shift (1) (3)	2006 Shift (1) (3)	2007 Shift (2) (3)
Adams	2,490,774	31	0.6175%	904,020	934,278	976,268	3,400,881
Allen	19,122,991	5	4.7406%	6,940,238	7,172,528	7,494,889	26,108,855
Bartholomew	5,344,540	17	1.3249%	1,939,654	2,004,574	2,094,667	7,296,887
Benton	414,807	83	0.1028%	150,499	155,536	162,527	566,171
Blackford	931,856	70	0.2310%	338,184	349,503	365,211	1,272,233
Boone	2,215,411	35	0.5492%	804,029	830,940	868,285	3,024,719
Brown	164,565	89	0.0408%	59,731	61,730	64,505	224,706
Carroll	1,035,465	66	0.2567%	375,809	388,387	405,843	1,413,775
Cass	3,253,106	28	0.8064%	1,180,570	1,220,083	1,274,918	4,441,248
Clark	7,084,076	11	1.7561%	2,570,930	2,656,979	2,776,394	9,671,721
Clay	798,765	74	0.1980%	289,872	299,574	313,038	1,090,485
Clinton	1,796,943	47	0.4455%	652,212	674,042	704,336	2,453,591
Crawford	146,620	90	0.0363%	53,143	54,922	57,390	199,922
Daviess	1,530,114	54	0.3793%	555,295	573,881	599,673	2,088,995
Dearborn	1,826,357	46	0.4528%	662,899	685,086	715,877	2,493,796
Decatur	1,595,768	53	0.3956%	579,158	598,543	625,444	2,178,767
DeKalb	4,328,241	25	1.0730%	1,570,872	1,623,449	1,696,413	5,909,548
Delaware	8,130,545	10	2.0155%	2,950,692	3,049,452	3,186,506	11,100,366
Dubois	4,049,535	27	1.0039%	1,469,710	1,518,901	1,587,166	5,528,979
Elkhart	22,312,351	3	5.5312%	8,097,677	8,368,706	8,744,827	30,463,084
Fayette	1,003,041	67	0.2487%	364,097	376,283	393,195	1,369,715
Floyd	4,831,723	20	1.1978%	1,753,579	1,812,271	1,893,722	6,596,884
Fountain	638,767	81	0.1583%	231,751	239,508	250,272	871,837
Franklin	358,762	85	0.0889%	130,150	134,506	140,551	489,617
Fulton	1,274,522	58	0.3160%	462,624	478,108	499,596	1,740,370
Gibson	2,215,022	36	0.5491%	803,882	830,788	868,127	3,024,168
Grant	4,326,380	26	1.0725%	1,570,140	1,622,693	1,695,623	5,906,794
Greene	1,176,730	59	0.2917%	427,049	441,342	461,178	1,606,538
Hamilton	9,347,819	9	2.3173%	3,392,527	3,506,075	3,663,651	12,762,530
Hancock	1,917,849	44	0.4754%	695,986	719,280	751,607	2,618,266
Harrison	967,393	69	0.2398%	351,067	362,817	379,124	1,320,699
Hendricks	5,583,567	16	1.3842%	2,026,469	2,094,295	2,188,420	7,623,482
Henry	2,180,713	39	0.5406%	791,438	817,928	854,689	2,977,355
Howard	6,465,660	14	1.6028%	2,346,499	2,425,036	2,534,027	8,827,421
Huntington	2,198,445	37	0.5450%	797,880	824,585	861,645	3,001,588
Jackson	4,618,232	21	1.1449%	1,676,134	1,732,234	1,810,087	6,305,537
Jasper	1,710,420	48	0.4240%	620,736	641,512	670,344	2,335,180
Jay	1,091,495	62	0.2706%	396,158	409,418	427,819	1,490,330
Jefferson	2,102,772	42	0.5213%	763,183	788,727	824,175	2,871,060
Jennings	712,953	79	0.1767%	258,689	267,347	279,363	973,175
Johnson	5,230,843	18	1.2967%	1,898,369	1,961,907	2,050,083	7,141,575
Knox	2,376,945	32	0.5892%	862,589	891,460	931,525	3,245,019
Kosciusko	5,162,024	19	1.2797%	1,873,481	1,936,186	2,023,206	7,047,948
LaGrange	1,980,874	43	0.4911%	718,970	743,034	776,429	2,704,733
Lake	36,207,592	2	8.9758%	13,140,571	13,580,385	14,190,740	49,434,219
LaPorte	6,391,221	15	1.5844%	2,319,562	2,397,197	2,504,936	8,726,083
Lawrence	1,355,908	57	0.3361%	492,050	508,519	531,374	1,851,071
Madison	6,704,838	12	1.6621%	2,433,314	2,514,757	2,627,780	9,154,016
Marion	74,492,909	1	18.4667%	27,035,249	27,940,117	29,195,853	101,705,350
Marshall	2,905,667	29	0.7203%	1,054,519	1,089,814	1,138,794	3,967,052
Martin	275,631	88	0.0683%	99,991	103,338	107,982	376,162
Miami	1,524,707	56	0.3780%	553,392	571,914	597,618	2,081,835
Monroe	4,514,749	23	1.1192%	1,638,509	1,693,350	1,769,455	6,163,994
Montgomery	4,486,879	24	1.1123%	1,628,407	1,682,910	1,758,546	6,125,992
Morgan	1,614,434	50	0.4002%	585,893	605,503	632,716	2,204,102
Newton	755,452	77	0.1873%	274,207	283,385	296,121	1,031,555
Noble	2,785,929	30	0.6906%	1,011,038	1,044,878	1,091,839	3,803,480
Ohio	32,088	92	0.0080%	11,712	12,104	12,648	44,060
Orange	555,285	82	0.1377%	201,593	208,340	217,704	758,383
Owen	672,871	80	0.1668%	244,195	252,368	263,711	918,651
Parke	320,577	86	0.0795%	116,388	120,284	125,690	437,846
Perry	762,962	76	0.1891%	276,842	286,108	298,967	1,041,468
Pike	887,047	71	0.2199%	321,934	332,709	347,662	1,211,099
Porter	11,469,740	7	2.8433%	4,162,591	4,301,913	4,495,257	15,659,475
Posey	2,364,785	33	0.5862%	858,197	886,921	926,782	3,228,497
Pulaski	1,041,941	64	0.2583%	378,151	390,808	408,372	1,422,587
Putnam	1,600,151	52	0.3967%	580,769	600,207	627,183	2,184,825
Randolph	1,150,965	60	0.2853%	417,679	431,659	451,059	1,571,290
Ripley	1,130,595	61	0.2803%	410,359	424,094	443,154	1,543,752
Rush	1,038,323	65	0.2574%	376,834	389,446	406,949	1,417,631
St. Joseph	21,316,817	4	5.2844%	7,736,362	7,995,297	8,354,636	29,103,833
Scott	1,088,773	63	0.2699%	395,134	408,359	426,712	1,486,474
Shelby	2,195,086	38	0.5442%	796,709	823,375	860,380	2,997,182
Spencer	1,527,555	55	0.3787%	554,417	572,973	598,725	2,085,690
Starke	768,818	75	0.1906%	279,038	288,378	301,339	1,049,730
Steuben	2,125,673	41	0.5270%	771,528	797,351	833,187	2,902,453
Sullivan	803,354	73	0.1992%	291,629	301,390	314,935	1,097,094
Switzerland	111,191	91	0.0276%	40,406	41,759	43,636	152,007
Tippecanoe	13,302,893	6	3.2978%	4,827,979	4,989,571	5,213,822	18,162,634
Tipton	748,880	78	0.1856%	271,718	280,813	293,434	1,022,192
Union	370,443	84	0.0918%	134,395	138,893	145,136	505,589
Vanderburgh	11,055,237	8	2.7406%	4,012,238	4,146,528	4,332,889	15,093,855
Vermillion	807,824	72	0.2003%	293,239	303,054	316,674	1,103,152
Vigo	6,682,446	13	1.6566%	2,425,262	2,506,436	2,619,085	9,123,725
Wabash	2,305,012	34	0.5714%	836,530	864,528	903,383	3,146,986
Warren	302,981	87	0.0751%	109,946	113,626	118,733	413,613
Warrick	2,144,770	40	0.5317%	778,409	804,462	840,618	2,928,338
Washington	971,476	68	0.2408%	352,531	364,330	380,705	1,326,206
Wayne	4,529,445	22	1.1228%	1,643,779	1,698,796	1,775,147	6,183,821
Wells	1,683,017	49	0.4172%	610,781	631,224	659,593	2,297,729
White	1,857,521	45	0.4605%	674,172	696,737	728,051	2,536,204
Whitley	1,602,707	51	0.3973%	581,647	601,115	628,131	2,188,130
Total	403,390,946		100.000%	146,400,439	151,300,454	158,100,474	550,751,652

Source: 2000 Payable Total Inventory Tax Net Levy by County from Dept. of Local Gov. Finance
( web page http://www.in.gov/dlgf/pubs/taxbook/levy/table42.html )

Notes:
(1) The Manufacturing Inventory Tax shift will average 30% of the statewide total Inventory Tax.
(2) All the Inventory Tax will be shifted beginning 2007.
(3) The 2004-07 Shifts are computed by multiplying each year's Total Shift by the Percent Total.