Gov. Mitch Daniels announced Tuesday that a preliminary look at Indiana’s fiscal data indicated the state would close the 2012 Fiscal Year with reserves in excess of $2 billion. Additionally, Gov. Daniels said there was a structural surplus of more than $500 million.
Indiana taxpayers will receive their first automatic taxpayer refund when they file for their state taxes in 2013. Single filers will receive $100 and joint filers will receive $200. However, the exact amount will not be determined until the fall, when the estimate will be made of how many tax returns will qualify for the automatic refund.
“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.”
Officials said 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.
Half of the excess funds will be returned to taxpayers, but officials said the other half will go to several of the state’s pension funds. They said that will result in the pension funds receiving at least $300 million.
For Fiscal Year 2013, the state is projecting a structural surplus of more than $400 million, resulting in the state’s reserves again exceeding $2 billion.
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