Indiana GOP senators not keen on governor’s tax rebate plan

INDIANAPOLIS — A proposal from Indiana’s governor to give each taxpayer a $225 rebate from the state’s surging budget surplus would be scuttled if legislators were to adopt a much more modest plan from by state Senate Republicans. The leaders of the Republican-dominated House back Holcomb’s proposal and have put forth a bill that would distribute about 16% of the state’s record $6.1 billion in cash reserves through the rebate payments. The Senate proposal would suspend the state’s 7% sales tax on electricity, water, natural gas and other utility bills for six months, which Republicans estimate would save customers about $260 million. The plan would also cap until next summer the state’s gasoline taxes at about one cent less than the current record level of 62.1 cents a gallon. Republican House Speaker Todd Huston, however, has fully endorsed the governor’s rebate plan, saying the state’s budget condition “shows an incredibly strong economy and it underscores why providing this refund is not only fiscally prudent, it’s the right thing to do by Hoosiers.” House and Senate leaders both plan to advance their tax-related proposals next week after Monday’s start of a special legislative session during which lawmakers will also debate a bill aimed at tightening the state’s abortion restrictions.