LOUISVILLE, Ky. (WDRB) -- Indiana Senate Republicans are proposing a bill for a special session that suspends sales tax on residential utilities instead of a $225 taxpayer refund, FOX 59 reported Thursday.
With Senate Bill 3, Senate Republicans propose suspending the state's 7% sale tax on utility bills for six months and capping the sales tax for six months. It would include sales tax on electricity, water, gas, internet and phone bills.
"We have had ongoing discussions about what the best way is to provide relief to Hoosiers in this environment of high inflation," State Sen. Travis Holdman (R-Markle) said. "By suspending the 7% sales tax on residential utilities, we can provide relief to nearly every Hoosier, with an estimated statewide savings of $260 million. This concept would benefit more people than the proposed taxpayer refund, and all of the savings would go to Indiana households."
The bill also proposes a cap on sales tax for gasoline at 29.5 cents a gallon.
Republicans said those changes would help more than issuing a $225 refund check to taxpayers, which was proposed by Holcomb. The bill they propose would also pay down teach pension liabilities and spend more money on capital projects.
Earlier this year, lawmakers used the state's budget surplus to send $125 refund checks to taxpayers.
The special session is scheduled for July 25.
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