STATEHOUSE (Jan. 25, 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 Madison County legislators who supported House Bill 1002.
The state's budget reserves are expected to hit a record $5 billion at the end of fiscal year 2022. State Rep. Elizabeth Rowray (R-Yorktown) said if House Bill 1002 becomes law, it would be the largest tax cut in state history.
"Indiana is in a unique position financially to help both everyday Hoosiers and job creators," Rowray said. "This tax-cut package would put money back into the pockets of taxpayers, and spur Indiana's businesses to expand in new and innovative ways."
State Rep. Tony Cook (R-Cicero) 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.
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.
"Our ultimate goal is for Hoosiers to keep as much of their hard-earned money as possible," Cook said. "Due to Indiana's fiscal responsibility, we are in a position to return more tax dollars to families and businesses."
State Rep. Bob Cherry (R-Greenfield) 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.
"Some farmers pay more in taxes on old farm machinery than the value of the equipment itself," Cherry said. "We depend on Hoosier farmers and this tax cut could provide them with much-needed relief."
Cherry 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. Elizabeth Rowray (R-Yorktown) represents House District 35,
which includes portions of Delaware and Madison counties.
Click here to download a high-resolution photo.
State Rep. Tony Cook (R-Cicero) represents House District 32, which includes
all of Tipton County and portions of Hamilton, Madison, Delaware, Howard and Grant counties.
Click here to download a high-resolution photo.
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.
