STATEHOUSE (Jan. 25, 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 State Reps. Jeff Ellington (R-Bloomfield) and Bruce Borders (R-Jasonville) who supported the legislation.
The state's budget reserves are expected to hit a record $5 billion at the end of fiscal year 2022. Ellington said if House Bill 1002 becomes law, it would be the largest tax cut in state history.
"Indiana finds itself in an excellent fiscal position despite the challenges of the past couple of years," Ellington said. "Hoosiers have weathered some serious storms recently, and should get more of their money back to use as they see fit."
Borders 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, steam, sewage and telecommunications bills.
"In a time of increasing inflation and ever-growing utility bills, cutting these taxes is the right thing to do for Hoosiers who continue to see more of their hard-earned dollars not go as far as they used to," Borders said. "I'm always a proponent of citizens keeping more of their money rather than growing government."
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.
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.
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. 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. 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.
