You’re still likely to get some tax money back from the state — but there’s disagreement over how and how much.
House and Senate committees have unanimously approved the plans Republicans outlined last week for returning some of Indiana’s record six-billion-dollar surplus to Hoosiers.
The House Ways and Means Committee endorsed Governor Holcomb’s plan for a $225 rebate, and threw in an extra $20 million for an assortment of smaller tax breaks: a repeal of the sales tax on diapers, and increases in Indiana’s adoption tax credit and child tax exemption, with an extra boost for babies under one year old.
The Senate bill matches Holcomb’s original billion-dollar price tag, but returns only about a third of that money to taxpayers.
The Senate plan freezes gas taxes and utility sales taxes, saving you about $70.
The rest of the proposal is aimed at sopping up hidden red ink, putting another $400 million toward unfunded teacher pension liabilities, and about $200 million in reserve for construction costs.
The bill also caps the sales tax on gas, but budget analysts predict after a month of steadily falling prices, the state won’t hit the cap again.
