STATEHOUSE (July 12, 2023) – New state laws supporting Hoosiers and backed by local lawmakers during the 2023 legislative session are now in effect.
"As liberal policies from Washington, D.C., leave Hoosiers behind, we took action to provide relief for taxpayers, including fast tracking planned cuts to the individual income tax," said State Rep. Tim O'Brien (R-Evansville), a member of the House Ways and Means Committee. "As stewards of taxpayer dollars, it's our duty to keep taxes low while investing in areas that deliver results like education, public safety and mental health, and that's just what we did this session."
Most legislation passed during the recent session took effect at the beginning of the state's new fiscal year on July 1.
Under the state's newly passed state budget, taxpayers are expected to save an estimated $430 million over the next two years via tax relief passed during the legislative session. O'Brien said thanks to the acceleration of individual state income tax cuts, hardworking Hoosiers will have one of the lowest rates in the nation by 2027. Indiana's K-12 spending makes up about half of the state's $44.6 billion budget, and lawmakers supported increasing student funding by 10% over the next two years. In addition, parents will no longer pay textbook and curricular fees.
"This legislative session, we got a lot done for hardworking Hoosiers and our communities," said State Rep. Cindy Ledbetter (R-Newburgh). "From boosting mental health services to passing a fiscally responsible budget, these policies further support families and will help meet the needs of those we represent."
Local lawmakers highlighted the following new laws:
Honoring Active-Duty Military
To honor members of the armed services, active-duty military will receive a complete income tax exemption starting next year. O'Brien said this tax relief could also attract more out-of-state service members and their families to call Indiana home, and help fill the workforce pipeline.
Providing Tax Relief for Homeowners
Property tax dollars are collected and spent locally, and help pay for schools, police and fire protection, and other local government services. To help counter the rise in local property tax bills, the state took actions to provide about $100 million in property tax relief for homeowners beginning next year. Hoosiers can expect a temporary increase to the supplemental homestead tax deduction and additional limits on property tax levy growth.
Improving Mental Health Services
To increase access and availability of quality care, Indiana will launch a new statewide infrastructure for mental health services, including expanding the number of behavioral health clinics. Ledbetter, who sponsored Senate Enrolled Act 1, said the 988 Suicide Crisis Lifeline will expand to ensure Hoosiers in crisis have someone to call, somewhere to go and someone to respond during an emergency.
Visit iga.in.gov to learn more about these and other new state laws now in effect.
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State Rep. Tim O'Brien (R-Evansville) represents House District 78,
which includes portions of Vanderburgh and Warrick counties.
Click here to download a high-resolution photo.
State Rep. Cindy Ledbetter (R-Newburgh) represents House District 75,
which includes portions of Gibson, Pike and Warrick counties.
Click here to download a high-resolution photo.
