Big jump in Indiana budget surplus triggering tax refund

Regional News

Cris Johnston, director of Indiana’s Office of Management and Budget, right, speaks during a news conference with state Auditor Tera Klutz at the Indiana Statehouse in Indianapolis, Wednesday, July 14, 2021. They announced Indiana’s first automatic taxpayer refund since 2012 as the state government hit a record of $3.9 billion in cash reserves as of June 30. (AP Photo/Tom Davies)

INDIANAPOLIS (AP) — A big jump in Indiana’s state tax collections will result in a refund for taxpayers, although they’ll have to wait for that money. 

State officials announced Wednesday that overall tax revenue grew 14% 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 a record-high $3.9 billion as of June 30. That will trigger the state’s automatic taxpayer refund process for the first time since 2012.

Officials say about $545 million will be refunded to taxpayers as a credit on their state tax returns submitted next year. Officials won’t determine the new refund size until later this year when they know the number of 2020 tax Indiana filers.

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