Redevelopment Commission warns Franklin faces revenue loss from proposed personal property tax change

The Redevelopment Commission meeting held on April 15, 2025, in Franklin, Johnson County, Indiana, focused primarily on the implications of proposed changes to personal property tax for businesses. The meeting began with a discussion led by a commission member who expressed concerns regarding the potential financial impact of these changes on the city and its revenue streams.

The member highlighted that the proposed adjustments could lead to a loss of approximately $1.5 to $2.5 million in revenue for Franklin. This revenue loss is particularly concerning as it primarily affects the regular taxing units, including local schools. The member urged attendees to communicate with state legislators about the detrimental effects these changes could have on community growth and stability.

Further discussion emphasized the importance of tax abatements for attracting business investments. The member noted that the proposed tax changes could disrupt the current system of tax abatements, potentially slowing industrial growth in the region. The sentiment was echoed by another commission member who pointed out that neighboring states, such as Ohio, do not impose a business personal property tax, making them more attractive to companies considering relocation.

The meeting also touched on the recovery of local businesses from the impacts of COVID-19, with many reporting full employment and increased wages. However, concerns were raised about the long-term effects of the proposed tax changes on the quality of life for residents and the ability of the city to provide necessary amenities.

As the meeting concluded, members expressed a collective worry about the direction of state legislation and its potential to hinder local economic development. The urgency of the situation was underscored by the approaching end of the legislative session, with decisions expected to be finalized soon. The commission plans to continue monitoring the situation and advocating for the interests of Franklin's businesses and residents.