STATEHOUSE (March 11, 2022) – Hancock County lawmakers 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.
House Enrolled Act 1002, co-authored by State Rep. Bob Cherry (R-Greenfield), 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.
"Any opportunity to responsibly cut taxes is worth taking," Cherry said. "Hoosiers work hard for their money and they deserve to keep more of it."
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.
State Rep. Chris Jeter (R-Fishers) said once both tax cuts are fully implemented, Hoosiers would save over $1 billion a year.
"As a fiscal conservative, my focus remains on limited government spending, trimming waste and keeping taxes low," Jeter said. "This legislation is a strong reflection of my commitment to financial responsibility, and I'm looking forward to it becoming law."
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 supported by Cherry and Jeter will ensure the maximum number of Hoosiers qualify for the refund.
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State Rep. Bob Cherry (R-Greenfield) represents House District 53,
which includes portions of Hancock and Madison counties.
Click here to download a high-resolution photo.
State Rep. Chris Jeter (R-Fishers) represents House District 88,
which includes portions of Marion, Hamilton and Hancock counties.
Click here to download a high-resolution photo.
