Lawmakers grapple over when Hoosier taxpayers receive refund

An Indiana House committee made changes to a Senate bill Thursday dealing with the state’s automatic taxpayer refund trigger. 

The current trigger for an automatic taxpayer refund is 10% of the state budget. That currently equals about $1.4 billion.  The Senate bill raises the trigger after this year to about $2 billion, which is about 15% of the state budget.  House Ways and Means committee chair Jeff Espich (R-Uniondale) says he’s open to the concept of raising the threshold.

“The Senate seems insistent that they want a little greater reserve and it’s hard to say that’s bad policy.  Saving money for the rainy day’s always good.  So I guess I’m willing, if you will, to sort of concede that area.”

However, Espich says 15% is too high.  In his amendment, which passed a committee Thursday, the trigger is raised to 12% of the budget.  He says, no matter what, taxpayers need to have a refund this year.

“Just ten months ago we passed a bill that said half of any reserve goes to taxpayers and half goes to paying off TERF obligations.  I think we look a little bit silly if we change our minds and undo that.”

The final details will be decided in conference committee later this session.