STATEHOUSE (March 24, 2022) – A $1 billion tax-relief package supported by State Reps. Bruce Borders (R-Jasonville) and Matt Hostettler (R-Patoka) is now law.
According to Borders, the largest tax cut in the state's history drops Indiana's individual income tax from 3.23% to 2.9% over seven years. He said once fully phased in, Indiana will have one of the lowest income tax rates in the nation.
"I know how hard Hoosiers work to earn a living," Borders said. "They deserve to keep more of their money and decide for themselves the best way to save and spend it. I joined my fellow Republicans in prioritizing these tax cuts, and will continue to advocate for a state government that lives within its means."
Hostettler said the law also helps lower utility bills for Hoosiers and businesses by eliminating the 1.4% Utility Receipts Tax currently paid on electricity, natural gas, water, steam, sewage and telephone bills.
"Hoosier families are dealing with rising costs at every turn," Hostettler said. "Every little bit helps and lower utility costs will provide relief for households across our state."
Once both tax cuts are fully implemented, Hoosiers will save over $1 billion a year.
The law 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 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. Another new law supported by Borders and Hostettler will ensure the maximum number of Hoosiers qualify for the refund.
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State Rep. Bruce Borders (R-Jasonville) represents House District 45, which includes
all of Sullivan County and portions of Vigo, Greene, Knox and Daviess counties.
Click here to download a high-resolution photo.
State Rep. Matt Hostettler (R-Patoka) represents House District 64, which includes
Gibson County and portions of Knox, Pike, Vanderburgh and Posey counties.
Click here to download a high-resolution photo.
