STATEHOUSE (March 23, 2022) – A $1 billion tax-relief package supported by State Reps. Jeff Ellington (R-Bloomfield) and Shane Lindauer (R-Jasper) is now law.
According to Ellington, 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.
"As revenue collections continued to surge, we jumped at the chance to provide tax relief," Ellington said. "Hoosiers worked hard during the pandemic and they're a huge part of why the state could weather the storm financially."
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.
Lindauer said once both tax cuts are fully implemented, Hoosiers will save over $1 billion a year.
"It's always a priority to responsibly pay down debt, which could help set us up for additional tax cuts in the near future," Lindauer said. "Hoosier lawmakers recently paid down $1 billion in debt and with this new legislation we'll make further payments toward obligations giving us flexibility moving forward."
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 Ellington and Lindauer will ensure the maximum number of Hoosiers qualify for the refund.
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State Rep. Jeff Ellington (R-Bloomfield) represents House District 62,
which includes portions of Greene, Monroe, Martin and Daviess counties.
Click here to download a high-resolution photo.
State Rep. Shane Lindauer (R- Jasper) represents House District 63,
which includes portions of Daviess, Dubois, Pike and Martin counties.
Click here to download a high-resolution photo.
