By Dan Spalding
WARSAW – Reality is about to arrive for those who often say the government should send back some of its money if it is not needed.
For the second time in nine years, Indiana is returning some of its money to taxpayers.
State officials announced Wednesday, July 14, that Indiana taxpayers can expect to see a refund when they file state income taxes next year because state revenue collections have exceeded expectations.
Indiana State Auditor Tera Klutz on Wednesday said the move is necessary after learning the state will end the fiscal year with $1.1 billion in excess reserves, triggering an automatic taxpayer refund.
In Indiana, 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.
According to the report, about $545 million will go to taxpayers and another $545 million toward pension liabilities.
Exactly how much residents will receive has yet to be determined, but State Rep. Craig Snow issued a statement saying early estimates suggest the refund could be as high as $170 per individual filer or $340 for joint filers.
This will be the second time Hoosiers will receive an automatic taxpayer refund since the law passed in 2011.
“A refund for Hoosier taxpayers is welcome news after passing a historic state budget that makes key investments in Indiana’s top priorities like K-12 education, small businesses and rural broadband. Our fiscal responsibility has helped our economy bounce back better than expected, and Hoosiers are a driving force behind our economic boom. Indiana’s government is running like a well-oiled machine and we intend to continue evaluating how we build on this economic success to better serve Hoosiers moving forward.”