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.

  1. 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.
  2. 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.

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