Indiana locals will gain from a refund package of $545.3 million, the announcement got made in July. This benefit is because the state has an automatic taxpayer law.
What are the terms of this policy? Hoosiers get some money back from any excess state capital. It happens when state reserves are 12.5% or higher of general fund appropriations. This fund amount excludes K-12 education reserves. (source)
Indiana closed the 2021 fiscal year with almost $4 billion in reserves. This figure is around 23% of its expenditures. The bulk of the extra capital went to teacher pension fund debt and the refund budget. (source)
Governor Eric Holcomb made a statement on the state's plans. (source)
“Despite a pandemic, Indiana exceeded all expectations and closed the state fiscal year with an unprecedented amount in reserves. We have an obligation to put this money back in the hands of taxpayers instead of leaving it in the hands of [the] government.”
The $125 rebate will go to all taxpayers regardless of income. Direct deposit payouts began in May. But paper supply delays continue. Thus, the sending out of printed checks got pushed back to August. (source)
In the meantime, Governor Holcomb is also proposing other payments. If passed, single taxpayers get $225 each or $450 for joint filing married couples. (source)
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*Disclaimer: This article is for informational purposes only. This article got written using accredited media reports.*