INDIANAPOLIS â State Auditor Tera Klutz announced July 14 that Indiana closed the 2021 fiscal year with reserves of $3.9 billion.
âIndiana once again exceeded expectations and soared through the recession with one of the fastest recoveries on record to end with a cash reserve of $3.9 billion at the end of June,â Klutz said. âIndiana is poised to make an excess reserve transfer of $1.1 billion, which will be split between retirement funding and a refundable income tax credit for Hoosier taxpayers.â
The annual report, prepared by the State Budget Agency, highlights the stateâs fiscal year ending on June 30.
Klutz credits strong fiscal leadership and teamwork for how Indiana was able to financially navigate through the national pandemic and economic uncertainty while ensuring a reasonable state reserve.
Indiana State Announces $3.9 Billion State Reserve
Auditor Tera Klutz
State Auditor Tera Klutz, CPA has announced that Indiana closed the 2021 fiscal year with reserves of $3.9 billion.
“Indiana once again exceeded expectations and soared through the recession with one of the fastest recoveries on record to end with a cash reserve of $3.9 billion at the end of June,” said Auditor Klutz. “Indiana is poised to make an excess reserve transfer of $1.1 billion, which will be split between retirement funding and a refundable income tax credit for Hoosier taxpayers.”
The annual report, prepared by the State Budget Agency, highlights the state’s fiscal year ending on June 30, 2021.
Credit Brandon Smith / IPB News
Hoosiers will get a state tax refund when they file their taxes next year.
That’s because the state finished the year with budget reserves of $3.9 billion, triggering Indiana’s automatic taxpayer refund.
The automatic taxpayer refund was created a decade ago and only used once, in 2012, sending a $111 credit to Hoosier taxpayers.
After that, lawmakers made it harder to trigger. Essentially, Hoosiers get the refund if state budget reserve dollars are more than 12.5 percent of the total budget. And the state s tuition reserve – a sort of rainy day pot for school funding – isn t calculated as part of the total reserve.
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Big jump in Indiana budget surplus triggering tax refund
Tom Davies/AP
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)
and last updated 2021-07-14 17:24:39-04
INDIANAPOLIS (AP) â A big jump in Indianaâs state tax collections over the past few months announced by state officials Wednesday will result in a refund for taxpayers, although theyâll have to wait until next year for that money.