Indiana continues to be recognized as one of the top states in the nation for its low taxes and business friendliness. Most recently, the Tax Foundation ranked our state ninth overall and best in the Midwest for our tax climate. Indiana’s fiscal responsibility and strong conservative leadership are paying dividends for our taxpayers, and that why I recently supported the largest tax cut in Hoosier history.
This session, I am pushing for responsible and prudent tax cuts that will also maintain our ability to retain strong reserves, fund critical services and invest in our future. House Bill 1002, delivers direct relief to working Hoosiers by reducing Indiana’s individual income tax from 3.23% to 3%, eliminating the Utility Receipts Tax, and encouraging new investments by lowering Indiana’s business personal property taxes. Indiana is expecting to take in $3 billion more in tax revenue than anticipated, which would create a $5 billion surplus. Over the past year, we've also paid down over $1 billion in debt. This is a commonsense bill to make sure we're not growing government and returning money to our hardworking Hoosiers and businesses through responsible tax cuts.
More than 4 million Hoosiers will also receive a $125 refund after they file their 2021 taxes because the state's excess reserves triggered an automatic taxpayer refund. In Indiana, state reserve balances exceeding 12.5% of the next year's budget is required to be split with half dedicated to pay down pension obligations and the other half given back to taxpayers. About $545 million will go to taxpayers and another $545 million toward pension liabilities. This is the second time Hoosiers will receive an automatic taxpayer refund. House Bill 1002 makes adjustments to current law to make about 900,000 more Hoosiers eligible to receive the state's taxpayer refund.
As the federal government continues to drive our national debt through the roof, Hoosier taxpayers will continue to reap the benefits of a state that takes care of its priorities, pays down debt and invests in the future. With gas prices climbing and inflation increasing, these additional dollars from our taxpayer refund could provide a small boost to our hardworking Hoosiers. House Bill 1002 recently passed out of the Indiana House, and I'll continue providing updates on the bill as it moves through the process. I encourage you to also sign up for my e-newsletters by visiting in.gov/h69 and entering your email address.
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State Rep. Jim Lucas (R-Seymour) represents House District 69,
which includes portions of Bartholomew, Jackson, Jennings and Jefferson counties.
Click here to download a high-resolution photo.
