From the Indianapolis Star:
It might be a bill better suited for the Fourth of July than for Christmas, but state Sen. Brent Steele doesn’t plan to wait.
The Bedford Republican has filed a measure that would eliminate state sales tax on American flags.
Steele said the idea came from a veteran who frequently purchases flags for various occasions.
“I thought the veteran had a good idea and I promised him I would file it,” Steele said. “I intend to push for it.”
The bill, which would also exempt the Indiana flag, will be sent to the Senate Appropriations Committee, Steele said. He anticipates the impact on state revenue will be negligible.
Fourteen other states provide some kind of tax exemption for flag sales, according to a 2011 list compiled by the Tax Foundation.
http://www.indystar.com/story/news/2013/12/27/will-indiana-waive-the-flag-tax/4224513/