STATEHOUSE (Feb. 2, 2022) – Indiana House Republicans recently advanced a responsible and sweeping tax-cut package that could put over $1.3 billion back in Hoosiers' pockets, according to local lawmakers.
The state's budget reserves are expected to hit a record $5 billion at the end of fiscal year 2022. State Rep. Doug Miller (R-Elkhart) said if House Bill 1002 becomes law, it would be the largest tax cut in state history.
"For the past year, our economy has beat expectations every step of the way and we are reaping the benefits of that today," Miller said. "Indiana's strong history of fiscal integrity has put us in the unique position where we are able to pass these tax cuts and put money back into Hoosiers' pockets."
State Rep. Tim Wesco (R-Osceola) said the bill would deliver direct relief to working Hoosiers by phasing down Indiana’s individual income tax from 3.23% today to 3% by 2026. If passed, Hoosiers would also pay less on their utility bills with the elimination of the 1.4% Utility Receipts Tax, which would take effect in July. Currently, individuals and businesses pay the Utility Receipts Tax on their monthly electric, natural gas, water, sewage and telecommunications bills.
"As we continue to see prices for everyday items increase due to inflation, putting dollars back into the hands of hardworking Hoosiers is the right move," Wesco said. "Good government is serving the interests of the people first and letting them decide where to put their money supports that idea."
About 4.3 million Hoosier taxpayers are set to receive a $125 refund after they file their taxes in 2022 due to higher-than-expected state revenue numbers during the 2021 fiscal year. House Bill 1002 would help streamline this process and ensure about another 900,000 taxpayers also receive a refund.
State Rep. Joanna King (R-Middlebury) said the bill would also encourage new investments by lowering Indiana’s business personal property taxes while ensuring homeowners and schools aren’t negatively impacted by the reduction in revenue. Specifically, the bill eliminates the 30% depreciation floor for newly purchased business personal property starting in January and creates a state income tax credit to offset a portion of the personal property taxes paid on existing equipment. Under current law, businesses pay a tax based on a minimum of 30% of the original purchase price of their business personal property, regardless of the age or the true tax value of the equipment. House Bill 1002 would also exempt more manufacturing and agricultural production inputs from the 7% state sales tax to avoid sales tax pyramiding.
"These tax cuts would incentivize job creators to invest in growing their business, which can help build up our local communities," King said. " Our region is a manufacturing hub and these tax cuts could help employers keep up with market demands and competition."
King said Indiana has paid down well over $1 billion in debt over the last year alone.
Visit iga.in.gov for more information on House Bill 1002, which now moves to the Indiana Senate for further consideration.
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State Rep. Joanna King (R-Middlebury) represents House District 49,
which includes the eastern portion of Elkhart County.
Click here to download a high-resolution photo.
State Rep. Doug Miller (R-Elkhart) represents House District 48,
which includes portions of Elkhart County.
Click here to download a high-resolution photo.
State Rep. Tim Wesco (R-Osceola) represents House District 21,
which includes portions of Elkhart and St. Joseph counties.
Click hereto download a high-resolution photo.
