Net Property Tax Payments Comparison

If Every Local Taxing Unit Imposed Both Property Tax Replacement and Property Tax Cap LOITs

Jeff Thompson Property Tax Replacement Plan

(February 9, 2008)

Property Class

Before LOITs

After LOITs

Difference

PERSONAL PROPERTY

Business Depreciable Assets

Commercial

C-corporations

86,903,087

113,685,557

26,782,470

Pass-throughs

202,773,868

265,266,300

62,492,432

Industrial

C-corporations

181,562,437

237,517,765

55,955,328

Pass-throughs

181,562,438

237,517,765

55,955,327

Agricultural

C-corporations

3,158,963

4,132,517

973,554

Pass-throughs

17,900,791

23,417,596

5,516,805

Utilities - Locally Assessed

22,092,035

28,900,531

6,808,496

Utilities - State Assessed

231,398,584

302,712,803

71,314,219

Mobile Homes

10,882,018

0

(10,882,018)

Recreational Vehicles

1,920,356

2,512,186

591,830

TOTAL PERSONAL PROPERTY

940,154,577

1,215,663,020

275,508,443

REAL PROPERTY

Business

Commercial

C-corporations

252,576,579

330,417,598

77,841,019

Pass-throughs

1,010,306,318

0

(1,010,306,318)

Industrial

C-corporations

133,350,714

174,447,776

41,097,062

Pass-throughs

247,651,327

0

(247,651,327)

Agricultural

C-corporations

12,576,977

16,453,048

3,876,071

Pass-throughs

238,962,563

0

(238,962,563)

Residential

Residential Homesteads

2,009,809,386

0

(2,009,809,386)

Agricultural Homesteads

C-corporations

3,347,516

4,379,180

1,031,664

Pass-throughs

164,028,304

0

(164,028,304)

Non-homestead Residential

C-corporations

41,034,553

53,680,902

12,646,349

Pass-throughs

779,656,510

0

(779,656,510)

Utilities

18,037,293

23,596,167

5,558,874

Exempt Organizations

C-corporations

17,999,728

23,547,024

5,547,296

Pass-throughs

5,999,909

0

(5,999,909)

TOTAL REAL PROPERTY

4,935,337,677

626,521,695

(4,308,815,982)

TOTAL ALL PROPERTY

5,875,492,254

1,842,184,715

(4,033,307,539)

Summary By Property Class

Before HB 1338

After HB 1338

Difference

Commercial

1,552,559,852

709,369,455

(843,190,397)

54.3% LESS

Industrial

744,126,916

649,483,306

(94,643,610)

12.7% LESS

Agricultural

439,975,114

48,382,341

(391,592,773)

89.0% LESS

Utilities

271,527,912

355,209,501

83,681,589

30.8% more

Mobile Homes

10,882,018

0

(10,882,018)

ELIMINATED

Recreational Vehicles

1,920,356

2,512,186

591,830

30.8% more

Residential Homesteads

2,009,809,386

0

(2,009,809,386)

ELIMINATED

Non-homestead Residential

820,691,063

53,680,902

(767,010,161)

93.5% LESS

Exempt Organizations

23,999,637

23,547,024

(452,613)

1.9% LESS

TOTAL ALL PROPERTY

5,875,492,254

1,842,184,715

(4,033,307,539)

68.6% LESS

Summary By Entity Type

Before HB 1338

After HB 1338

Difference

C-corporations

732,510,554

958,261,367

225,750,813

30.8% more

Pass-throughs

2,848,842,028

526,201,661

(2,322,640,367)

81.5% LESS

Utilities

271,527,912

355,209,501

83,681,589

30.8% more

Mobile Homes

10,882,018

0

(10,882,018)

ELIMINATED

Recreational Vehicles

1,920,356

2,512,186

591,830

30.8% more

Residential Homesteads

2,009,809,386

0

(2,009,809,386)

ELIMINATED

TOTAL ALL PROPERTY

5,875,492,254

1,842,184,715

(4,033,307,539)

68.6% LESS

Source: Pages 145-147 of the FY 2006 Handbook of Indiana Taxes, Revenues, and Appropriations.

Notes:

1. Net property tax payments are net of applicable PTRC and State and County Homestead Credits.

2. Net property tax payments include tax on tiffed property.

3. Estimates are based on county parcel data, county abstracts, and Form 15 assessor information.

4. Net 2006 business inventory tax is eliminated and added proportionally to all other property classes.

5. CY 2006 $1,810,755,000 state property tax replacement credit added proportionally to prop. classes.

6. C-corporations and utilities pay business income taxes.

7. Pass-throughs are business entities that pay individual income taxes.

8. Personal property is tangible property not permanently affixed to and a part of real estate.

9. Commercial business depreciable assets tax paid 30% by C-corporations and 70% by Pass-throughs.

10. Industrial business depreciable assets tax paid 50% by C-corporations and 50% by Pass-throughs.

11. Agricultural business depreciable assets tax paid 15% by C-corporations and 85% by Pass-throughs.

12. Individual personal property is 85% mobile homes and 15% recreational vehicles.

13. Real Property is land and improvements considered permanent fixtures.

14. Riverboats are assessed as real property.

15. Commercial business real property tax is paid 20% by C-corporations and 80% by Pass-throughs.

16. Industrial business real property tax is paid 35% by C-corporations and 65% by Pass-throughs.

17. Agricultural business includes all non-homestead agricultural property.

18. Agricultural business real property tax is paid 5% by C-corporations and 95% by Pass-throughs.

19. Agricultural homestead real property tax is paid 2% by C-corporations and 98% by Pass-throughs.

20. Non-homestead residential includes buildings with 1-3 living units.

21. Non-homestead residential real property tax is paid 5% by C-corporations and 95% by Pass-throughs.

22. The amounts listed under "Exempt Organizations" are the non-exempt tax billed to these entities.

23. Exempt Organizations real property tax is paid 75% by C-corporations and 25% by Pass-throughs.

24. PTRC credits from Prop. Tax Red. Trust Fund NOT deducted from After HB 1338 C-corps and Utilities.