STATEHOUSE (March 17, 2022) – The governor recently signed into law a $1 billion tax-relief package, the largest tax cut in the state's history, that was co-authored by State Rep. Bob Heaton (R-Terre Haute).
According to Heaton, 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 will have one of the lowest income tax rates in the nation.
"It truly is an honor to be part of a legislature that helped bring about the largest tax cut in our state's history," Heaton said. "It's important we ensure these dollars stay with those who earned them, especially during a time of high inflation."
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.
Heaton said once both tax cuts are fully implemented, Hoosiers will save over $1 billion a year.
The law also 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 Heaton will ensure the maximum number of Hoosiers qualify for the refund.
-30-
State Rep. Bob Heaton (R-Terre Haute) represents House District 46,
which includes portions of Clay, Monroe, Owen and Vigo counties.
Click here to download a high-resolution photo.
CAPTION: State Rep. Bob Heaton (R-Terre Haute) (right) joins fellow lawmakers in the House Chamber to work on legislation to cut taxes for Hoosiers Tuesday, March 8, 2022, at the Statehouse. A new law co-authored by Heaton will save Hoosiers over $1 billion a year in taxes once fully implemented.
