The unauthorized tax revenue, which has totaled $1.1 million since 2011 in Jackson County and $4.9 million since 2006 in Pulaski County, paid for jail operating costs in both counties.

Rep. Eric Turner, R-Cicero, said there was “plenty of blame to go around in this situation” on both the state and local levels.

Turner authored the bill, which originally contained a number of other tax provisions.

The language affecting Jackson and Pulaski counties were amended into the 64-page bill and were the reason that Pence vetoed the bill in May.

Pence said Hoosiers deserve relief when they pay taxes that they do not owe. He issued a letter to legislators on Monday asking them to sustain his veto.

“While HEA 1546 contained many provisions that I support, I could not support the public policy of retroactive approval of local income taxes,” Pence wrote. “I believe taxpayers should have full and fair notice of any proposed tax and have an opportunity to make their voices heard at both the state and local levels.”

Pence also offered an administrative solution to the problem in lieu of the bill. 

But House Speaker Brian Bosma, R-Indianapolis, said that while the legislature “put the brakes on” to examine the governor’s proposal, it was “unwieldy and much more expensive to the state taxpayers” than the solution created by the new law.

Bosma said members of the General Assembly decided to override the veto because they believed doing so was in the “best interest of Hoosier taxpayers.”

Christy Denault, Pence’s communications director, said the governor stands by his veto.

“While this bill contained some positive provisions, the governor believe that when Hoosiers pay taxes that are not owed, they should be offered relief,” Denault said. “Hoosiers can be assured that Governor Pence and his administration will continue to put taxpayers first.”

And Senate Minority Leader Tim Lanane, D-Anderson, said while there was “a lot of good stuff” in the bill, legislators should take the governor’s veto seriously.

Lanane said he looked at the bill as a lawyer and determined that taxpayers are entitled to a refund.

“I understand about the costs involved here to everybody, but there’s another principle in the law as well, and that is, if the costs have to be borne by somebody, they should not be borne by the innocent parties,” he said. “Taxpayers are the innocent parties here.” 

Sen. Brandt Hershman, R-Buck Creek, agreed that taxpayers are an innocent party and that legislature should not burden them.

Hershman, who chairs the Senate Tax and Fiscal Committee, said letting the veto stand was not the way to best serve taxpayers. He said sustaining the veto would negatively impact Hoosiers by creating administrative costs, borrowing costs, uncertainty and difficulty with administration.

“While I understand and respect the governor’s point, having done the due diligence on this bill, both before and after the veto, I remain convinced that an override represents the least administratively burdensome, least costly, and least disruptive to the administrative local government solution for the problem at hand,” Hershman said.

Senate President Pro Tem David Long, R-Fort Wayne, said he and other legislators want to make sure that “this doesn’t happen in the future,” and Bosma said the General Assembly is already exploring options to do so.

Article writer Megan Banta is a reporter for TheStatehouseFile.com, a news website powered by Franklin College journalism students.

General Assembly overrides veto

Legislators convene to pass a solution for Pulaski, Jackson counties

STATEHOUSE - The Indiana House of Representatives voted 68-23 to override Gov. Pence’s veto of House Enrolled Act (HEA) 1546.

Elected Representatives returned to the Statehouse on Wednesday, as provided for in House Concurrent Resolution 60, for the First Regular Technical Session to address the most cost-effective solution for Hoosier taxpayers by overriding the veto of HEA 1546. This is the first time the legislature has convened on technical corrections day since legislation was passed in 1995 allowing for the General Assembly to convene to address technical corrections and to override vetoes.

“If there was another feasible solution to the Jackson and Pulaski County Local Option Income Tax (LOIT) issues we certainly would have taken that path. However, considering the expense and unwieldiness of the administrative solution presented, and with residents and elected officials in both counties asking for the legislature’s assistance to address the override, we needed to return to the Statehouse and provide these counties with an immediate solution,” said Speaker Brian Bosma.

HEA 1546 passed unanimously out of the House and with only one dissenting vote in the Senate. The bill addresses a number of tax issues, most notably the LOIT for Jackson and Pulaski counties, as well as providing benefits for surviving spouses of deceased veterans and making it easier for an out-of-state business to help with disaster emergency relief here in Indiana.

Local officials from Jackson and Pulaski Counties came to the Statehouse to encourage the General Assembly override the veto.

“On behalf of County Commissioners we appreciate the urgency that the General Assembly is placing on this issue. The funding is a vital need for our communities, and it was a necessity that this matter be solved,” said Larry L. Brady, Pulaski County Commissioner.

“By overriding the veto of HEA 1546, we have resolved a dire situation affecting Pulaski County taxpayers. Honest mistakes happen and what occurred in Pulaski County was the result of a human error," explained State Rep. Douglas Gutwein whose district includes Pulaski County. HEA 1546 was crafted to provide a solution to that mistake and by overriding the veto, the Legislature showed its continued commitment to do what is right for taxpayers.” 

“HEA 1546 provides a common sense solution to address this human error by extending the funds for the jail and justice center until 2021," Gutwein continued. "Additionally, HEA 1546 includes provisions that benefit the surviving spouses of a deceased veterans as well as providing exemptions for out-of-state businesses helping Hoosiers perform emergency disaster relief. I am pleased that the veto was overridden to address the needs of our community, and I will continue to work to protect Pulaski County taxpayers.” 

If the General Assembly did not reconvene to address this bill, the veto would have required over 1,000 employers in the two counties to make mid-year adjustments to their payrolls, affecting over 20,000 employees. In addition, since the two counties need to pay for the ongoing costs of operating the jail, losing funding could put jail operations in jeopardy.  

“We sincerely appreciate the concerns expressed by Gov. Pence; however this issue demanded an immediate solution. By overriding this veto, we have acted in the best interests of Hoosier taxpayers,” said Speaker Bosma.

Release from Speaker Brian Bosma's office; with statements contributed from Rep. Gutwein's office

Office of Gov. Pence statement regarding veto override of HEA 1546

INDIANAPOLIS - The Office of Gov. Mike Pence issued the following statement regarding the veto override Wednesday (June 12) of HEA 1546.

“Gov. Pence stands by his veto, and regrets that it was not upheld by the Indiana General Assembly today. While this bill contained some positive provisions, the Governor believes that when Hoosiers pay taxes that are not owed, they should be offered relief. Hoosiers can be assured that Gov. Pence and his administration will continue to put taxpayers first.” 

The above quote is attributable to Christy Denault, communications director.