Tax Refund Coming As Ind. Reserves Top $2B
(Indianapolis, Ind.) – Indiana is ending Fiscal Year 2012 with a very health amount of cash in its reserves.
Indiana can brag more than $2 billion in reserves as the fiscal year ended June 30, Governor Mitch Daniels said Tuesday. He added that there is also a structural surplus – annual revenue greater than annual expenses – of $500 million.
“Thanks to this amount there will be a major infusion of money into Indiana’s pension funds, which are already the strongest in the country, and the first automatic taxpayer refund in state history,” Daniels said. “This was a fundamental assignment of our administration; turn over to our successors the strongest possible position and therefore the widest range of choices for Indiana. We wish them well with whatever choices they decide are right for Indiana’s future.”
The reserves are more than 14 percent of Indiana’s budget, triggering an automatic taxpayer refund of half of the extra cash. State lawmakers had approved the refund mechanism in the 2011 legislative session.
Daniels’ office says the refund will clearly be in excess of $100 for a single filer or $200 for a joint return in 2013.
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“The exact amount will not be ascertained until the fall when the estimate will be made of how many tax returns will qualify. The median income tax payment was a little over $800 last year, so the refund will amount to more than 10 percent for the typical Hoosier,” an announcement read.
The other half of the excess over 10 percent, or $300 million, will go toward strengthening several state pension funds.
For Fiscal Year 2013, budget managers project a structural surplus of more than $400 million. That would again result in the state’s reserves again topping $2 billion next year., resulting in the state’s reserves again exceeding $2 billion.