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State Lawmakers Study Eliminating Gas Tax

Last updated on Monday, November 27, 2006

(INDIANAPOLIS) - Indiana House Democrats want to push an idea to eliminate the state sales tax on gasoline.

But House Republicans are skeptical. Democrats say their plan could save the average driver as much as $150 a year.

Tax and fiscal policy committee chair Luke Kenley isn't in favor of the plan. He claims exempting gasoline from the state's 6% sales tax could cost the state as much as $3-hundred-million a year while saving drivers very little at a time.

Kenley says his party wants to focus more on property tax relief a move he says has a much bigger impact on most families.

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