$125 state tax refund receives final approval

Source: The Journal Gazette

The House voted unanimously Thursday to finalize an expanded automatic taxpayer refund for Hoosiers.

A $125 check is expected to be sent to individuals in May.

Senate Bill 1 broadens the law slightly so that some who didn’t previously have an income tax liability still will receive the money. The fiscal impact statement said that is about 440,000 Hoosiers.

The measure now goes to Gov. Eric Holcomb for his signature. He previously indicated his support for the refund.

House Speaker Todd Huston said if people don’t have an income tax liability they still pay sales taxes to the state.

“Our approach has been everybody that’s contributing to the state general fund should be eligible for the tax refund,” he said.

In all, about 4.3 million Hoosier taxpayers will receive the refund after they file their 2021 taxes. The money will come in a separate check or electronic deposit – similar to how the federal government sent stimulus payments the last two years.

An estimated $545 million will be returned to Hoosier taxpayers. Another $545 million went to pension relief.

It is the result of the state surplus hitting $4 billion when state books closed June 30, and is the second time Indiana has hit the trigger.