IndianaBill would set state tax on home utilities at zero in 2030
Introduced and sent to the Utilities Committee, the bill would set Indiana’s state sales tax on home utility purchases at zero starting July 2030.
What it does
For household utility purchases, the bill would set state tax rates at 7%, 5.25%, 3.5%, and 1.75% in successive years, then at zero.
Argument forHouseholds might pay less state tax on home utilities in later years under the proposed schedule.
Argument againstHouseholds might have to wait until July 2030 for a zero state tax rate on home utilities under this schedule.
More detail
The state tax rate on utility service bought for home use would follow a stepped schedule. It covers electricity, natural or artificial gas, water, steam, and steam heating, including service from a power subsidiary or public utility. Before July 1, 2027: 7%; July 1, 2027 through June 30, 2028: 5.25%; July 1, 2028 through June 30, 2029: 3.5%; July 1, 2029 through June 30, 2030: 1.75%; on or after July 1, 2030: 0%.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jan 5First reading: referred to Committee on UtilitiesLatest
- Jan 5Authored by Senator Young MIntroduced
Taxes & Budget