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.