STATEHOUSE (March 25, 2022) – A $1 billion tax-relief package supported by State Rep. J.D. Prescott (R-Union City) is now law.
According to Prescott, 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.
"Rising inflation is certainly costing families and Indiana's strong economic health put us in a position to help," Prescott said. "This responsible tax-relief package will reduce individual income taxes and utility costs now and in the future."
Prescott said the law also helps 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.
Prescott said 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 Prescott will ensure the maximum number of Hoosiers qualify for the refund.
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State Rep. J.D. Prescott (R-Union City) represents House District 33, which
includes Jay and Randolph counties, and a portion of Delaware County.
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