A big jump in Indiana’s state tax collections over the past few months announced by state officials Wednesday will result in a refund for taxpayers, although they’ll have to wait until next year for that money.
State officials reported that overall tax revenue grew 14 percent over the past year as collections bounced back stronger than expected from the COVID-19 pandemic recession. That pushed state government’s cash reserves to $3.9 billion as of June 30.
Since the record-high reserves figure represents 23 percent of annual state spending, it will trigger the state’s automatic taxpayer refund process for the first time since 2012.
Officials say about $545 million will be divided evenly among taxpayers as a credit on their state tax returns submitted next year. That will reduce 2021 tax bills, but the state won’t besending out budget surplus refund checks, said Cris Johnston, director of Indiana’s Office of Management and Budget.
While the 2012 refund amounted to $111 for individual income tax filers, state officials won’t determine the new refund size until perhaps November when they know the number of 2020 Indiana tax filers, Johnston said.
Click here to read the full story from the AP’s Tom Davies in the Dubois County Herald.
