STATEHOUSE (March 11, 2022) – State Rep. J. Michael Davisson (R-Salem) 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 Davisson, 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.
"Conservative leadership continues to pay off for Indiana," Davisson said. "This is a responsible tax-cut plan that rewards hardworking Hoosiers at a time when we’re seeing overall prices rising for everyday commodities."
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.
Davisson 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 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 will ensure the maximum number of Hoosiers qualify for the refund.
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State Rep. J. Michael Davisson (R-Salem) represents House District 73, which includes
Washington County, and portions of Orange, Lawrence, Jackson, Clark and Harrison counties.
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PHOTO CAPTION: State Rep. J. Michael Davisson (R-Salem) (left) discusses legislation with State Rep. Randy Lyness (R-West Harrison) (right) on Tuesday, March 8, 2022, in the House Chamber at the Indiana Statehouse. Davisson recently voted in support of passing the largest tax cut in the state's history.
