Introduced Version
HOUSE BILL No. 1270
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-8.1-3-29.
Synopsis: State revenue and expenditure information. Requires the
department of state revenue (department) 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. 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 department determines
appropriate in helping to educate the taxpayer about the state's budget,
spending, or fiscal wellness. Requires the state comptroller to provide
the department assistance with any data or records necessary for the
department to prepare the letter.
Effective: July 1, 2025.
Ireland, Shonkwiler
January 13, 2025, read first time and referred to Committee on Ways and Means.
2025 IN 1270—LS 7397/DI 134 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1270
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 6-8.1-3-29, AS ADDED BY P.L.239-2023,
2 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 29. (a) This section applies to tax receipts for
4 adjusted gross income taxes due and owing for a taxable year
5 beginning after December 31, 2023.
6 (b) The department shall annually provide to an individual who is
7 a resident of Indiana who:
8 (1) has an individual INTIME electronic account with the
9 department; and
10 (2) filed an individual adjusted gross income (as defined in
11 IC 6-3-1-3.5(a)) tax return with the department;
12 a taxpayer receipt.
13 (c) The department, in consultation with the budget agency, shall
14 create the taxpayer receipt in a way that is easy to read and understand.
15 The taxpayer receipt must include an explanation of the following:
16 (1) That all revenues derived from collection of the adjusted gross
17 income tax imposed on persons shall be deposited in the state
2025 IN 1270—LS 7397/DI 134 2
1 general fund as required under IC 6-3-7-3(b).
2 (2) The manner in which state general fund revenues are
3 appropriated by the general assembly, using the list of all
4 appropriations compiled under IC 4-12-1-12, including the use of
5 pie charts to graphically demonstrate how the revenues are
6 expended.
7 The taxpayer receipt may include information concerning the use of
8 other taxes paid by the taxpayer based on actual data or estimates.
9 (d) The taxpayer receipt shall be posted on the taxpayer's individual
10 INTIME account.
11 (e) Except as provided in subsections (g) through (i), The the
12 department is prohibited from providing a taxpayer with a copy of the
13 taxpayer receipt by mail.
14 (f) The department, in consultation with the budget agency, shall
15 create and administer an Internet web page on which individual
16 taxpayers may access an estimate of the allocation of their adjusted
17 gross income taxes to various expenditure categories for the most
18 recent state fiscal year based on the adjusted gross income taxes paid
19 by the taxpayer. The web page created under this subsection must
20 contain the following elements:
21 (1) The web page must be conveniently and easily accessible.
22 (2) A link to the web page must be prominently displayed on the
23 department's main website.
24 (3) The web page must provide an estimate of the allocation of the
25 statewide spending of adjusted gross income tax revenue broken
26 down under the following categories:
27 (A) Public Education.
28 (B) Higher Education.
29 (C) Social Services.
30 (D) Infrastructure.
31 (E) Criminal Justice.
32 (F) Economic Development.
33 (G) Environment and Natural Resources.
34 (H) Elected Officials.
35 (I) General Government.
36 The estimate under this subdivision must include the amount and
37 the percentage of adjusted gross income tax revenue allocated to
38 each category.
39 (4) The web page must provide an estimate of an individual
40 taxpayer's contribution based on the individual's input of their
41 adjusted gross income tax payments.
42 The department shall include a link to the web page created under this
2025 IN 1270—LS 7397/DI 134 3
1 subsection on the Indiana individual income tax return, Form IT-40.
2 (g) Within a reasonable time after the filing of an Indiana tax
3 return by a taxpayer, the department shall issue a letter in hard
4 copy form to every taxpayer who:
5 (1) filed an Indiana tax return for the previous taxable year;
6 and
7 (2) had a state tax liability of at least one dollar ($1) for the
8 previous taxable year.
9 (h) The letter described in subsection (g) must not exceed two (2)
10 pages and must include:
11 (1) the amount of total state income tax the taxpayer remitted
12 for the previous taxable year;
13 (2) information regarding any change to the state income tax
14 rate that occurred over the previous two (2) taxable years;
15 (3) a summary, categorized by revenue source, of income tax
16 revenues received by the state during the previous taxable
17 year;
18 (4) a summary, categorized by expenditure type, of
19 expenditures funded by income tax revenues during the
20 previous taxable year;
21 (5) a proportional categorized breakdown showing an
22 estimate of how the taxpayer's income tax dollars remitted for
23 the previous taxable year were or will be spent; and
24 (6) any other objective information the department
25 determines appropriate in helping to educate the taxpayer
26 about the state's budget, spending, or fiscal wellness.
27 (i) The state comptroller shall provide the department
28 assistance with any data or records necessary for the department
29 to prepare the letter under this section.
30 SECTION 2. [EFFECTIVE JULY 1, 2025] (a) IC 6-8.1-3-29, as
31 amended by this act, applies to taxable years beginning after
32 December 31, 2024.
33 (b) This SECTION expires December 31, 2028.
2025 IN 1270—LS 7397/DI 134