IndianaIndiana utility sales would be exempt from state sales tax
Starting July 1, 2026, Indiana households and businesses would pay no state sales tax on electricity, gas, water, or steam service supplied by public utilities or power subsidiaries.
What it does
Electricity, gas, water, steam, and steam heat sold by public utilities or power subsidiaries for home or business use would carry no state sales tax starting July 1, 2026.
Argument forHouseholds and businesses could have smaller utility bills if these sales would otherwise carry state sales tax.
Argument againstIndiana might collect less money for public services if these utility sales would otherwise carry state sales tax.
More detail
Indiana would exempt covered utility sales from state sales tax. It covers electricity, natural or artificial gas, water, steam, and steam heat sold by public utilities or power subsidiaries for home or business use. The proposed exemption would start July 1, 2026.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jan 6First reading: referred to Committee on Ways and MeansLatest
- Jan 6Authored by Representative DvorakIntroduced
Taxes & Budget