After meetings with IHLA, the Indiana General Assembly’s Interim Study Committee on Tax and Fiscal Policy has decided to drop a proposal to impose and excise tax on logging equipment.
IHLA thanks House Ways and Means Chairman Tim Brown, Senate Tax and Fiscal Policy Chairman Brandt Hershman, and State Representative Bob Cherry for their decision after hearing supporting evidence from us and other affected parties.
In 2015, the legislature passed a law to exempt equipment from gross retail sales tax, clarifying that it should qualify under the agricultural exemption. When the proposal to begin charging an excise tax was assigned to interim study committee in 2016, it was first assumed that it was an attempt to recoup the tax revenue lost with the 2015 law. Later, it was learned that the logging equipment excise tax proposal resulted from a misunderstanding involving a similar proposal involving such a tax on heavy machinery rental facilities.
When IHLA brought the facts to the committee, and it was apparent that no one was actually pushing for an excise tax on logging equipment, the committee leaders decided to drop the issue from considerations, saving our industry millions annually.