Changes To Automatic Taxpayer Refunds For Hoosiers

Refunds expected this year, but Assembly changes level of revenue surplus that triggers refunds after 2012.

Tax forms

Photo: MoneyBlogNewz (Flickr)

Automatic tax refunds from 2013 on will be triggered by a higher revenue surplus level.

It will be more difficult to trigger an automatic taxpayer refund under a bill passed by the General Assembly on its final day of session.

With a strong fiscal year to date and revenue forecasts predicting a steady finish, Indiana appears likely headed for a taxpayer refund this year. As a result, lawmakers made few changes affecting this year’s refund. Instead of distributing the money based on income level, Hoosier taxpayers will each receive an equal amount. Estimates say this year’s refund will be about $200 million toward taxpayers, which bill author Jeff Espich says equates to about $50 per person.

“And I know a lot of folks say, ‘What’s 50 bucks to the average person?’” says Espich. “But my guess is that they’ll be happy to have that two hundred million dollars in their pocket.”

Going forward, lawmakers will make it a little harder to trigger a refund. Under current law, the state’s revenue surplus must be ten percent of the total budget. After 2012, the level will be set at 12 1/2 percent of the budget. The bill also includes extra money for full-day kindergarten and State Fair stage collapse victims.

Brandon Smith, IPBS

Brandon Smith, IPBS has previously worked as a reporter and anchor for KBIA Radio in Columbia, MO, and at WSPY Radio in Plano, IL as a show host, reporter, producer and anchor. Brandon graduated from the University of Missouri-Columbia with a Bachelor of Journalism in 2010, with minors in political science and history. He was born and raised in Chicago.

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