Stimulus checks for inflation: These are the states that plan to send money to residents

About a dozen states are proposing to send tax refund checks to their residents to offset the highest inflation in four decades, and lawmakers on both sides of the aisle say high gas and food prices fueled their actions.

Among them is Georgia Governor Brian Kemp, a Republican, who on Wednesday signed legislation to send checks of up to $500 to state residents. The reason, he said he in a statementis to soften the impact of inflation on family budgets and also return some of the money amid a record state budget surplus.

Two years ago, the pandemic was forecast to decimate state budgets, but instead many states are enjoying a rebound in tax revenue due to the economic recovery. Workers are bringing jobs back, raising income taxes, while strong retail sales are boosting sales taxes. From April 2021 to January 2022, total state tax revenue, adjusted for inflation, increased more than 19% compared to the same period a year earlier, according to a recent Urban Institute report.

These checks represent one-time tax refunds that will put money back into consumers’ wallets. But some other states are considering or already planning reduce income taxesproviding a continuous tax exemption for its residents.

The tax cuts and refunds cut across party lines, with both Democrats and Republicans joining the proposals.

In Maine, Gov. Janet Mills, a Democrat, wants to send $850 checks to each resident to offset inflation, including high gas prices, in one of the board’s most generous offers. The rebate “will help the people of Maine deal with these increased costs by putting money directly into their pockets,” Mills said.

Still, rebate checks likely won’t cover the higher costs most Americans face, as states often offer checks for several hundred dollars, while the average family will pay an estimated amount. $2,000 in additional costs this year due to higher gas prices only.

Wendell Cressey, a clam digger in Harpswell, Maine, said the high cost of fuel for people in his business means the check will provide only temporary relief.

“It might help a little bit, but it would have to be a lot more because we’re paying for gas. Most of us have V-8 trucks,” Cressey said. “I just don’t think it’s going to help as much as they think it will.”

Not all state tax cut proposals go well. Vermont Governor Phil Scott, a Republican, has proposed returning half of a $90 million surplus in the state Education Fund to state taxpayers with a check of between $250 and $275, but the Democrat-controlled Legislature has shown little interest.

“Normally when you overpay for something, they give you some of that money back,” Scott said when he made the proposal earlier this month.

Below are the states with refund checks in process:

California

On Wednesday, California Governor Gavin Newsom, a Democrat, said proposes to send direct payments of $400 per vehicle to state residents, with a limit of two vehicles. Pending approval by California lawmakers, the checks could arrive in July, according to the release. Drivers in California face some of the highest gas prices in the nation, with a statewide average of $5.87 a gallon on Wednesday, according to AAA.

Georgia

Governor Kemp signed a bill Wednesday that will send refunds to taxpayers who have filed 2020 and 2021 returns in the state. The state will send $250 to single filers, $375 to heads of households and $500 to married filing jointly.

Hawaii

Governor David Ige, a Democrat, proposed in January sending $100 to each taxpayer and their dependents, which is $400 for a family of four.

Idaho

Republican Gov. Brad Little signed a bill in February that includes $350 million in tax refunds, to be applied to 12% of a person’s 2020 Idaho income tax return, or $75 for each taxpayer and dependent. , whichever is the larger amount.

That means a family of four could get at least $300.

Indiana

Indiana residents will receive $125 each after they file their taxes in 2022 due to higher-than-projected tax receipts, according to the Indy Star.

Maine

Governor Mills wants to send $850 to most residents as part of the state budget bill. In a statement, his office said the average Maine resident will spend $560 more this year than last because of inflation.

Minnesota

Governor Tim Walz, a Democrat, has released a plan to spend the state’s budget surplus that includes a proposal for $1,000 income tax refund checks per couple.

New Jersey

Gov. Phil Murphy, a Democrat, and the Democratic-led Legislature included cash checks of up to $500 to about 1 million families as part of a budget deal last year, when the governor and lawmakers were up for election.

New Mexico

Democratic Governor Michelle Lujan Grisham earlier this month signed a law to provide refund checks for $250 for individuals and $500 for married couples. Like the stimulus checks issued by the federal government during the pandemic, these come with income limits, with couples earning up to $150,000 and singles earning up to $75,000 eligible for the checks.

New York

Democratic Governor Kathy Hochul is proposing tax relief for New Yorkers through a $1 billion property tax rebate program. The average property tax refund benefit would be approximately $970 for property owners outside of New York City. according to Bloomberg news.

Virginia

Virginia lawmakers are expected to pass the tax relief in the form of a refund check, although the amount is not yet clear, according to local news site Wavy.com. The different proposals would send $250 or $300 for each individual, and $500 or $600 for married couples, she reported.

—With information from the Associated Press.

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