Area legislators spotlight new state laws now in effect
STATEHOUSE (July 7, 2023) – New state laws supporting Hoosiers and backed by local lawmakers during the 2023 legislative session are now in effect.
“Years of fiscal responsibility have put us at the forefront of states with a low cost of living and low taxes, and we continue setting new records for economic development,” said State Rep. Wendy McNamara (R-Evansville). “This session, we kept our focus on helping families and taxpayers, and putting their needs first as we make Indiana a better place to live and work.”
Most legislation passed during the recent session took effect at the beginning of the state’s new fiscal year on July 1.
Under that state’s newly passed state budget, taxpayers are expected to save an estimated $430 million over the next two years via tax relief passed during the legislative session. Thanks to the acceleration of individual state income tax cuts, hardworking Hoosiers will have one of the lowest rates in the nation by 2027. Indiana’s K-12 spending makes up about half of the state’s $44.6 billion budget, and lawmakers supported increasing student funding by 10% over the next two years. In addition, parents will no longer pay textbook and curricular fees.
“As liberal policies from Washington, D.C. leave Hoosiers behind, we took action to provide relief for taxpayers, including fast tracking planned cuts to the individual income tax,” said State Rep. Tim O’Brien (R-Evansville), a member of the House Ways and Means Committee. “As stewards of taxpayer dollars, it’s our duty to keep taxes low while investing in areas that deliver results like education, public safety and mental health, and that’s just what we did this session.”
Local lawmakers also highlighted the following new laws:
To honor members of the armed services, active-duty military will receive a complete income tax exemption starting next year. O’Brien said this tax relief could also attract more out-of-state service members and their families to call Indiana home, and help fill the workforce pipeline.
Providing Tax Relief for Homeowners
Property tax dollars are collected and spent locally, and help pay for schools, police and fire protection, and other local government services. To help counter the rise in local property tax bills, the state took actions to provide about $100 million in property tax relief for homeowners beginning next year. Hoosiers can expect a temporary increase to the supplemental homestead tax deduction and additional limits on property tax levy growth.
“While property taxes are collected and spent on the local level, we took action to provide about $100 million in relief to Hoosier homeowners,” said State Rep. Matt Hostettler (R-Pakota). “Our work addressing this complex issue is not yet done, and I look forward to finding more ways to provide additional relief.”
Increasing High School Relevancy
To boost the number of career-ready students, McNamara said those in grades 10-12 can soon use Career Scholarship Accounts to pay for career training or industry-recognized certification while in high school. Additionally, the state will review graduation requirements to better accommodate work-based learning experiences. Public high schools will host annual career fairs to encourage connections between students and employers.
Visit iga.in.gov to learn more about these and other new state laws now in effect.
