STATEHOUSE (March 10, 2022) – Kokomo 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.
According to State Rep. Mike Karickhoff (R-Kokomo), 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 would have one of the lowest income tax rates in the nation.
"Our state's strong fiscal position presents a great opportunity to give money back to Hoosiers," Karickhoff said. "We've worked hard on this tax-cut package and now it could soon be law. Keeping our taxes and cost of living low can help us encourage families to stay and grow in Indiana, and we'll continue to look for ways to put more money back into taxpayers' pockets as we move forward."
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. Heath VanNatter (R-Kokomo) said once both tax cuts are fully implemented, Hoosiers would save over $1 billion a year.
"Unemployment is low, companies are looking to hire and we are cutting taxes," VanNatter said. "This historic legislation further solidifies Indiana's strong economic standing and it's great we can build on our efforts."
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 Karickhoff and VanNatter will ensure the maximum number of Hoosiers qualify for the refund.
-30-
State Rep. Mike Karickhoff (R-Kokomo) represents House District 30,
which includes portions of Grant and Howard counties.
Click here to download a high-resolution photo.
State Rep. Heath VanNatter (R-Kokomo) represents House District 38,
which includes portions of Carroll, Cass, Howard and Clinton counties.
Click here to download a high-resolution photo.
