Indiana Governor Suspends State's Gasoline Sales Tax.

Jun. 21--Hoosier motorists will get a break at the pump beginning July 1 after Gov. Frank O'Bannon on Tuesday invoked a never-before-used emergency energy law to suspend Indiana's 5 percent sales tax on gasoline.

The step is expected to shave 7 cents to 10 cents off a gallon of gas, depending on the price.

O'Bannon's unusual action, announced against the backdrop of a busy Indianapolis gas station, was lauded as relief by consumers who have been hounded by soaring gas prices of up to $2 a gallon.

The governor said he took action now because "spiraling gas prices have really caused an undue burden" on businesses and citizens.

"Hoosiers can't afford to wait on federal and state investigators to tell us why the Midwest is being hit so hard," he said.

The suspension will be lifted within 60 days only if Indiana's prices drop to rates found in the rest of the country, O'Bannon said.

Arturo Peres, a senior policy specialist with the National Conference of State Legislatures, said Indiana appears to be the first state to reduce or suspend its …