Indiana, Massachusetts expected to joint list of states to provide tax rebates

Tax relief in the form of rebates continues to be pursued in states around the country to provide relief from higher costs for goods and services.

More than a dozen states have approved rebates for at least certain tax filers.

Massachusetts

Massachusetts is another state that is soon expected to be added to the list.

Legislative leaders in the Bay State are nearing a deal on a tax relief package to combat inflation. Among the aid programs sought by lawmakers is a plan to pay individual tax filers $250 and joint filers $500.

Single filers earning from $38,000 to $100,000 in annual income in 2021 would be eligible. Joint filers with minimum annual income from $38,000 to $150,000 also would qualify.

Democratic leadership in both chambers opted to pursue the rebate option instead of relief at the fuel pump.

Their argument against a fuel tax holiday mirrors sentiment in many other states: there is no guarantee a fuel tax holiday would lower prices at the pump.

“These rebates represent the legislature’s commitment to delivering immediate financial relief directly to residents of the commonwealth, rather than to large oil companies that continue to profit off economic uncertainty and international conflict,” a joint statement reads.

If both chambers of the Massachusetts legislature are able to reach agreement on tax aid, and it is signed into law by Gov. Charlie Baker, rebates are expected to be issued to qualified taxpayers by Sept. 30.

Funds to cover the rebates will come from the state’s fiscal year 2022 surplus. The fiscal year 2022 surplus is estimated at more than $3 billion.

Indiana

Another round of tax rebates is in the offing in Indiana.

In May, the state started sending $125 payments to all residents regardless of income.

The rebate is a result of the state’s automatic taxpayer refund law. The law directs money back to residents following higher-than-expected state revenue for a fiscal year.

Gov. Eric Holcomb earlier this month called for a special session to send more money to residents. He said state reserves allow for the additional boost.

“This is the fastest, fairest and most efficient way to return taxpayers’ hard-earned money during a time of economic strain,” Holcomb stated. “Indiana’s economy is growing, and, with more than $1 billion of revenue over current projections, Hoosier taxpayers deserve to have their money responsibly returned.”

The governor is asking for every taxpayer to receive $225.

The special session to address the issue is scheduled to begin July 25.

Tax rebates elsewhere

Rebates also are, or soon will be, available for at least certain filers in California, Colorado, Delaware, Georgia, Hawaii, Idaho, Illinois, Maine, New Jersey, New Mexico, New York, South Carolina, and Virginia. Amounts range from $75 in Idaho to $1,050 in California and New York. LL

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