State Taxes Unemployment Tax Comparison Worker’s Comp Rates Clark County Taxes Floyd County Taxes An Overview of the New Tax Legislation Info on Incentives

Cutting Taxes:

	Cuts property taxes for Hoosier homeowners on average by nearly 13 percent
	Cuts income taxes for Hoosier renters by increasing that deduction from its current level of $2,000 to $2,500
	Cuts real property taxes and individual property taxes by 20 percent
	Cuts property taxes for Hoosier farmers on average by more than 13 percent
	Cuts business property taxes on average by 23.4 percent
	Cuts taxes for the poor by linking the earned income tax credit to 6 percent of the federal credit
	Cuts business taxes by eliminating the inventory tax in 5 years and providing an exemption for "production in progress"
	Cuts business taxes by providing a tax credit to companies that provide venture capital to startup firms.
	Cuts business taxes by eliminating the corporate growth income tax and eliminating the supplimental net income tax.
	Encourages high-tech job growth by doubling the research tax credit from 5 percent to 10 percent
	To raise the revenue needed to pay for the property tax cuts, the state's remaining business taxes are restructured, utilities pay a supplemental tax to compensate for their 30% reduction in property taxes, and the state’s sales tax increased from 5 percent to 6 percent beginning December 1, 2002.

Growing New Jobs:

	Encourages high-tech job growth by appropriating $30 million for the 21st Century Research and Technology Fund for FY 2003 and FY 2004
	Eliminates the Corporate Gross Income Tax and the Supplemental Net Income Tax. Raises the Corporate Adjusted Gross Income Tax to 8.5%
	Increases the Research and Development Tax Credit from 5% to 10% and repeals the apportionment formula
	Eliminates the Inventory Tax in the 5th year (pay 2007) and gives counties the option to eliminate the Inventory Tax sooner if they pass a local Economic Development Income Tax to provide additional homestead credits
	Implements an exemption for “production in process” inventory for products to be shipped out of state
	Returns to the “old” business personal property reassessment rule for pay 2004 including the 30% floor (the new rule will be in effect for pay 2003 with provisions for a 35% inventory adjustment and construction in process)
	Establishes a new Venture Capital Investment Tax Credit capped at $10 million per year
	Establishes new certified technology parks to attract high-technology businesses

Bringing Budget Relief:

	Budget cuts of $949 million
	Increases cigarette tax by 40 cents per pack, for a total cost of 55 cents per pack
	Increases riverboat gaming taxes
	Requires lottery and riverboat winners to pay taxes on winnings over $1,200
	Provides more revenue to all Indiana counties by sharing revenue from riverboat taxes among all 92 counties

Building Better Indiana Roads:

Increases gasoline tax by 3 cents a gallon, for a total of 18 cents per gallon