Indiana lawmakers divided over elimination of gasoline sales tax

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"It appears the Statehouse is divided on a proposal to do away with the sales tax on gasoline.

Democrats who control the Indiana House want to eliminate tax on gasoline, but Republicans who control the Indiana Senate are skeptical.

Senate Republicans say it's unlikely the proposal would become law. Exempting gasoline from the state's 6 percent sales tax could cost the state as much as $300 million a year, Republicans say, while saving drivers only a few cents at a time.

Indiana charges the 6 percent sales tax on the base price of gas, not including the state and federal excise taxes. Democrats said eliminating the state sales tax would save drivers about 16 cents per gallon if the pump price is $3 a gallon. Democrats estimated the average driver would save about $150 a year."