Frye: Prioritizing Hoosier Taxpayers

Monday, January 10, 2022 at 9:35 AM

By State Rep. Randy Frye (R-Greensburg), guest column

More than 4 million Hoosiers will receive a $125 refund after they file their 2021 taxes.

INDIANAPOLIS - Indiana is in a solid position entering the 2022 legislative session. Our state economy continues making an unprecedented comeback, our unemployment rate is at a 20-year low and revenue is outpacing expectations. Indiana’s fiscal responsibility and strong conservative leadership is paying dividends for Hoosier taxpayers, and lawmakers are looking forward to keeping up the momentum in 2022.

More than 4 million Hoosiers will receive a $125 refund after they file their 2021 taxes, because the state's excess reserves triggered an automatic taxpayer refund. In Indiana, state reserve balances in excess of 12.5% of the next year's budget is required to be split with half dedicated to pay down pension obligations and the other half given back to taxpayers. About $545 million will go to taxpayers and another $545 million toward pension liabilities. This is the second time Hoosiers will receive an automatic taxpayer refund thanks to a law I helped support in 2011. This year we will also look at making adjustments to the current law to make more Hoosiers eligible to receive the state's taxpayer refund.

Additionally, the state's most recent revenue forecast revealed Indiana is expected to collect about $3.3 billion more in revenue over the next two years than what was originally projected. Total reserves could exceed $5 billion at the end of fiscal year 2022. Because of more than a decade of passing balanced budgets and living within our means, we will push hard this session for responsible and prudent tax cuts while maintaining our strong reserves, funding critical services and investing in our future.

Gov. Holcomb: All Hoosier Taxpayers Will Receive Tax Refund