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Indiana's sales tax on gasoline will actually rise slightly starting Aug. 1 even though pump prices have dropped more than 11% from a month ago.
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Indiana lawmakers plan to return to the Statehouse by the end of June to send $1 billion in surplus state revenues back to Hoosiers.
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Gov. Eric Holcomb said he agrees with legislative leaders who are reluctant to pause the states gas tax. But he said he's planning on working with the General Assembly on inflation relief for Hoosiers.
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Indiana has two taxes on gasoline -- the 7% state sales tax and a tax directed to infrastructure projects.
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Motorists in Indiana are now paying about 56 cents per gallon in state taxes on gasoline — the highest-ever level shown in state records — and it will increase next month based on rising fuel prices.
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House Republicans pushed for significant tax cuts for months. Senate Republicans were less enthusiastic, pushing back on major reductions up until the very end of session.
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The Republican tax bill aims to cut the state’s individual income tax by about 10 percent over seven years, meaning the average Hoosier likely won’t notice much difference in their paycheck.
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Two Republican primary candidates were attacked for their votes last year to raise the state's gas tax. They both won their races.
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Indiana is heading into the Memorial Day weekend tied with California for the largest gas price increase in the U.S. over the past year.
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Sen. Michael Crider (R-Greenfield) - one of the road funding bill's sponsors - says he's heard positive feedback since the measure passed.