The property tax crisis must be dealt with in a manner that is fair to all taxpayers or the long-term health of the Indiana economy may suffer.  At the same time, Indiana must remain focused on the growth and attraction of high‑value businesses that provide greater diversification and competitiveness in the new economy.  There is an urgent need to diversify Indiana's economy by leveraging Indiana's assets to promote investment, new businesses and new jobs in advanced manufacturing, logistics, information technology and the life sciences.

The success of Indiana's economic development initiatives will continue to depend on entrepreneurial collaborations across regional boundaries between the private sector, universities, state and local governments.  The State of Indiana needs to continue to create a favorable tax environment for all taxpayers and embrace the emerging economy.  While not all entrepreneurial, high‑technology businesses have workforces as large as those found in manufacturing enterprises, investments in incentives for smaller firms will yield dividends in new growth, jobs and tax revenues.

Economic Development Tools Policy Recommendations:

• Business investment decisions require an environment of certainty and predictability. Therefore, before proposing new reforms, we encourage legislators and state officials to oppose any attempt to repeal economic development incentives or initiatives enacted in past sessions.
• Any property tax assessment reform should be consistent with the Indiana Supreme Court's decision in the Town of St. John, which stated that assessments could not be manipulated to shift undue property tax burdens to business property.
• Reduce the relative importance of business personal property taxes in the state and local fiscal structure.
• Consolidate property assessment responsibilities to fewer, more professionally-trained assessors.
• Update Indiana's tax code. Create a comparative tax model, updated biannually, that compares the tax burden for Indiana sites with sites in other states.
• Consider amenity-style economic development incentives, such as entertainment venues, parks or arts districts, to improve quality of life of Hoosier communities.