Although the Indiana state legislative session began back in January and concluded in late April, there were many changes made that have just recently taken effect, namely, 45 different taxes and fees that have either been increased or newly imposed.

One increase that has many Indiana residents talking is the 10 cents-per-gallon gasoline tax that took effect July 1. Funds from this tax and the $15 increase for new vehicle registrations will go toward funding a variety of road construction projects around the state.

Other increases or new fees include some imposed on college students, school employees and certain service positions. If they do not have health insurance, college students will now have to pay between $100 and $150 for a mandatory meningitis vaccine, while school employees could see a cost between $30 and $40 for a renewed background check every 5 years if their employer chooses not to cover the cost. Some service positions, such as massage therapists, manufactured-home dealers and social workers, have seen minimal regulation in the past, but will now be required to have state licenses, which could cost anywhere between $10 and $400.

Other fee increases include several within the court system, including DNA sample processing fees, the automated record-keeping fee and notary fees.

A valuable new law enacted during the legislative session is one that requires professional motorsports competitors and other athletes to pay taxes when they work in the state. Although anyone who works in Indiana already incurs income tax liability, many athletes live in other states and have often ignored their Indiana tax obligations. The new law streamlines the process for these athletes to pay their taxes.

Unfortunately, the addition or adjustment of taxes and fees annually is a common occurrence, but state lawmakers try to avoid general tax increases on sales or incomes. Thus, Indiana residents should expect similar fee increases each year to assist with a variety of state projects and deficits, but can hope to avoid large annual income tax hikes, which are a more regular financial burden for most taxpayers.

If you have any questions about the new taxes or how they may impact your taxes or business, please feel free to contact me: pmcallister@mkrcpas.com.

Peter McAllister, CPA