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Lawmakers Decide To Keep Gasoline Sales Tax

Last updated on Monday, February 12, 2007

(INDIANAPOLIS) - Indiana House Democrats abandoned a campaign proposal to eliminate the state sales tax on gasoline.

Instead, a new proposal applies the 6% sales tax, up to a total pump price of $2.25 per gallon.

If prices go higher, drivers would pay no sales tax on the difference. Lawmakers said the original proposal would have cost the state too much in lost tax revenue.

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