STATEHOUSE (Jan. 27, 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 Johnson County lawmakers.
State Rep. Michelle Davis (R-Whiteland) said if House Bill 1002 becomes law, it would be the largest tax cut in state history.
"Indiana continues to invest in our priorities, live within our means, pay down debt, and now we’re expected to hit a record $5 billion in our reserves by the end of the fiscal year," Davis said. "This bill will help Hoosiers keep more of their hard-earned money and encourage existing businesses to expand their operations."
State Rep. John Young (R-Franklin) 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.
"Hoosiers have made it clear they aren't interested in more government, and this sentiment has been amplified through the pandemic," Young said. "This responsible tax relief package emphasizes giving money back to the hardworking people who earned it."
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. Chris May (R-Bedford) 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.
"Indiana is already considered one of the top states to do business, but we need to make sure it stays that way," May said. "These tax cuts would be another incentive for companies to plant roots here or grow their existing operations."
May 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. Michelle Davis (R-Whiteland) represents House District 58,
which includes a portion of Johnson County.
Click here to download a high-resolution photo.
State Rep. John Young (R-Franklin) represents House District 47,
which includes portions of Johnson and Morgan counties.
Click here to download a high-resolution photo.
State Rep. Chris May (R-Bedford) represents House District 65, which includes all of
Brown County, most of Lawrence County and parts of Monroe, Jackson and Johnson counties.
Click here to download a high-resolution photo.
