Dubois County lawmakers recently voted in support of passing the largest tax cut in the state’s history, sending the $1 billion tax-relief package to the governor where it could soon become law.
According to State Rep. Stephen Bartels (R-Eckerty), House Enrolled Act 1002 will drop the state’s individual income tax from 3.23% to 2.9% over seven years. He said once fully phased in, Indiana would have one of the lowest income tax rates in the nation.
The bill will also help lower utility bills for Hoosiers and businesses by eliminating the 1.46% Utility Receipts Tax currently paid on electricity, natural gas, water, steam, sewage and telephone bills.
State Rep. Shane Lindauer (R-Jasper) said once both tax cuts are fully implemented, Hoosiers would save over $1 billion a year.
He said the legislation includes using reserves to make a one-time, $2.5 billion payment toward pre-’96 teacher pension obligations. This comes after Indiana has paid down well over $1 billion in debt over the last year alone.
House Enrolled Act 1002, a priority for Republican lawmakers, comes as the state’s budget reserves are expected to hit a record $5 billion at the end of the fiscal year 2022. As revenues continue to outpace expectations, Hoosier taxpayers can expect a $125 refund this spring as part of a combined refund of over $545 million. A new law supported by Bartels and Lindauer will ensure the maximum number of Hoosiers qualify for the refund.
