Lets take a look at 2002 property tax relief

State Sales and Excise Tax Increases
Increases the sales tax from 5% to 6%.
Increases the cigarette tax from $0.155 per pack to $0.555 per pack.
Increases the tobacco products tax from 15% to 18%.
Increases the gasoline tax by three cents per gallon (to eighteen cents per gallon

The sales tax and cigarette tax increases pay for the property tax relief and fill in part of the budget gap that developed during the 2001 recession. The gasoline tax increase will fund added road spending by state and local governments.

Increases the renter's deduction from $2,000 to $2,500.
Extends the earned income tax credit through 2005 and sets the credit at 6% of the federal earned income tax credit.
Eliminates the adjusted gross income tax exemption for lottery winnings that exceed $1,200.
Establishes procedures for withholding adjusted gross income taxes from riverboat gambling winnings and lottery winnings

On June 22, 2002, the Indiana General Assembly made sweeping changes in Indiana's tax structure. The Tax Restructuring bill, known as House Bill 1001, special session (HB1001ss), changed, among other things, the sales tax rate, the cigarette tax rate, the gasoline tax rate, the rules for property assessment, the amount of revenue raised by the property tax, several property tax breaks for homeowners, the corporate income tax structure, the limits on state and local budgets, and the rules under which riverboats operate.