INDIANAPOLIS (AP) - A lower sales tax - and no property taxes on homeowners? Two state lawmakers say it's possible if the sales tax is applied to more services.

Republican Senators Mike Young of Indianapolis and Brent Waltz of Greenwood presented the plans today.

Under one plan, the state sales tax rate would be lowered from 7% to 5.5% and be applied to all services except medical and legal. Under the second plan, the sales tax rate would be lowered from 7% to 4.5% and be expanded to all services, including medical and legal.

Either way, the proponents say that would bring in more than $2 billion that could be used to eliminate property taxes on homeowners.

Associated Press - September 10, 2008
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