Indiana State Budget Removes LIHEAP Tax Exemption

Indiana’s General Assembly passed a two-year budget on June 30 that lifted a ban on taxing LIHEAP funds, meaning there will be 7 percent less money for LIHEAP. The 7 percent tax on LIHEAP funds has been prohibited for the past three years.

Earlier in the legislative session, House Bill 1080, that would have made the tax exemption permanent, was passed by the full House, sent to the Senate but was opposed by the governor’s office.

The $28 million budget includes no tax hike, leaves a $1 billion surplus but contains no help for families with unaffordable utility bills.

This comes at a time when a rise in unemployment has many families in Indiana struggling to pay their utility bills. Last winter almost 198,000 families received heating assistance, an increase of over 35 percent from the previous winter.

Source: IN newspapers

Page Last Updated: September 24, 2009