Indiana General Assembly gearing up for 2025 session, Republican leaders anticipate significant tax reform

INDIANAPOLIS — The 2024 Legislative Session is over, but despite the quieter atmosphere within the Statehouse, many lawmakers are hard at work gearing up for what they expect will be a significant budget year, especially in the arena of tax reform.

“If you look at the way states are growing, the states that are really thriving are the eight or ten states, whatever it is, that have no personal income, income tax,” Former Indiana State Representative Mike Murphy (R) said.

The SALTR (State and Local Tax Reform) Task Force will submit its final recommendations to the General Assembly before the next session (the committee’s deadline this year’s end). However, it’s unclear if those will include eliminating the State Income Tax and if lawmakers will even agree with those proposals.

“When I was in the legislature for 16 years, I never once voted for a bill because it was recommended by a summer study committee,” Murphy said.

“A lot of times, those study committees end up sitting on a shelf during the legislative period—that is not a surprise,” Former Indiana State Rep. Terri Austin (D) said. “It’s not like people take those recommendations and run to the bank with them, so…that’s a waste of taxpayer dollars and legislator time, quite honestly.”

As for bills surrounding marijuana legalization, ballot initiatives, and gun control, Austin said she does not expect any to get a hearing next session.

“Never under this supermajority,” Austin said. “Never.”

“I feel sorry for the Democrats, but in some ways, it’s their own fault,” Murphy said. “They’ve not raised the money they need to get the messages out, so until they get better at their game, Republicans have absolutely no worries.”