LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7397 NOTE PREPARED: Jan 7, 2025
BILL NUMBER: HB 1270 BILL AMENDED:
SUBJECT: State Revenue and Expenditure Information.
FIRST AUTHOR: Rep. Ireland BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: The bill requires the Department of State Revenue (DOR) to, within a reasonable
time after the filing of an Indiana tax return by a taxpayer, issue a letter in hard copy form to every taxpayer
who: (1) filed an Indiana tax return for the previous taxable year; and (2) had a state tax liability of at least
$1 for the previous taxable year.
The bill provides that the letter must not exceed two pages and must include: (1) the amount of total state
income tax the taxpayer remitted for the previous taxable year; (2) information regarding any change to the
state income tax rate that occurred over the previous two taxable years; (3) a summary, categorized by
revenue source, of income tax revenues received by the state during the previous taxable year; (4) a summary,
categorized by expenditure type, of expenditures funded by income tax revenues during the previous taxable
year; (5) a proportional categorized breakdown showing an estimate of how the taxpayer's income tax dollars
remitted for the previous taxable year were or will be spent; and (6) any other objective information the DOR
determines appropriate in helping to educate the taxpayer about the state's budget, spending, or fiscal
wellness.
The bill requires the State Comptroller to provide the DOR assistance with any data or records necessary for
the DOR to prepare the letter.
Effective Date: July 1, 2025.
Explanation of State Expenditures: The development and delivery of the mailed letter to all taxpayers that
file an Indiana income tax return and had a state tax liability in the previous tax year represents a task outside
the agency’s routine operations. The DOR’s current resources are likely insufficient for full implementation
as the cost to provide the correspondence will be significant. The additional funds and resources required
could be supplied through resources currently being used in another program or with new appropriations.
Explanation of State Revenues:
Explanation of Local Expenditures:
HB 1270 1 Explanation of Local Revenues:
State Agencies Affected: Department of State Revenue; State Comptroller.
Local Agencies Affected:
Information Sources:
Fiscal Analyst: Heath Holloway, 317-232-9867.
HB 1270 2