Indiana Gov. Mike Pence on Thursday vetoed a bill that would have allowed the collection of local income taxes in Jasper and Pulaski counties after the legal authority to do so had expired.
“If Hoosiers owe taxes, they should pay them,” Pence said. “But when Hoosiers pay taxes that are not owed, they deserve relief and this legislation does not meet that standard.”
He said the state’s Office of Management and Budget would develop options for refunding or crediting the taxes to the county residents who paid them.
The bill — which passed the House 98-0 and the Senate 48-1 — is a 41-page long measure that deals with numerous issues involving taxes. And while many of those were good, Pence said that the one provision retroactively approving the collection of taxes in Jasper and Pulaski counties is “not the proper remedy.”
He said he would work with the legislature next year to resolve the issue “in a manner that works for these counties and is in the best interest of Hoosier taxpayers.”
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