Thanks to years of fiscal responsibility, Indiana’s tax climate is one of the best in the country. To build on this, I’ve joined my House Republican colleagues in supporting a $1.3 billion tax-cut package to return money to working Hoosiers and businesses.
House Bill 1002 includes a number of responsible, common-sense tax cuts. The bill would deliver direct relief to working Hoosiers by lowering Indiana’s individual income tax from 3.23% to 3% by 2026. Hoosiers would also pay less on their utility bills with the elimination of the 1.4% Utility Receipts Tax.
Over 4.3 million Hoosiers will receive a $125 tax refund after they file their tax returns this year, due to higher-than-expected revenue numbers during the 2021 fiscal year. In Indiana, excess reserves triggered an automatic taxpayer refund, meaning reserves exceeding 12.5% of the budget is split between paying down pension obligations and returning that money to taxpayers. This legislation would also ensure an additional 900,000 Hoosiers would receive a refund. Hoosiers worked hard through a pandemic and face a high-inflation economy, and deserve to have their tax dollars returned to them.
Job creators across the state would also see a benefit from House Bill 1002, because it lowers business personal property taxes. The bill would encourage new investments by eliminating the 30% depreciation floor for newly purchased business property, and create a state income tax credit to account for a portion for the personal property taxes paid on existing equipment. Cutting this tax would not only encourage new growth for our businesses, but alleviate some of the financial tax burden Hoosier farmers pay on equipment as well. According to a recent study from the University of Illinois, the price of planters alone has risen nearly 17% since 2019. Cutting equipment taxes would free up resources for them to remain in operation and compete in this global economy.
Our state lives within its means, pays down debt and invests in the future. In fact, we’ve paid down about well over $1 billion in debt just over the last year while making record investments in education, infrastructure and economic development. That’s why this is a great time to pass responsible tax cuts to provide much-needed relief to Hoosiers, and encourage business to stay, invest and grow in Indiana.
House Bill 1002 is now in the Indiana Senate for further consideration, and I hope Indiana does what’s right by its hardworking taxpayers by passing this legislation.
Rep. Bob Cherry, R-Greenfield, represents most of Hancock County and a portion of Madison County in the Indiana House of Representatives.
