3/9/07-A bill in the Senate Tax and Fiscal Policy Committee would change how the state collects taxes on fuel. The House already approved it.
Sponsored by Rep. Dennie Oxley, D-Milltown, HB1622 would suspend collection of the 6 percent sales tax on diesel and gas purchases at certain thresholds.
The sales tax on fuel is separate from the 27-cent-per-gallon excise tax charged on diesel and 29-cent-per-gallon excise tax charged on gas. The sales tax is applied to the base price of fuel before the excise taxes are added.
The bill would apply the sales tax up to a total pump price for diesel of $2.40. If prices exceed that amount, truckers and others would not have to pay sales tax on the difference between the higher price and $2.40.
The sales tax on gasoline only would be applied to the first $2.25 of the pump price.
For bill status, call (317) 232-9856.

3/1/07-The House voted 75-25 to approve a bill that would change how the state collects taxes on fuel. It now heads to the Senate for further consideration.
Sponsored by Rep. Dennie Oxley, D-Milltown, HB1622 would suspend collection of the 6 percent sales tax on diesel and gas purchases at certain thresholds.
The sales tax on fuel is separate from the 27-cent-per-gallon excise tax charged on diesel and 29-cent-per-gallon excise tax charged on gas. The sales tax is applied to the base price of fuel before the excise taxes are added.
The bill would apply the sales tax up to a total pump price for diesel of $2.40. If prices exceed that amount, truckers and others would not have to pay sales tax on the difference between the higher price and $2.40.
The sales tax on gasoline only would be applied to the first $2.25 of the pump price.
The bill is awaiting assignment to committee in the Senate. For bill status, call (317) 232-9856.