Because the federal income tax is the biggest and usually the first tax we see listed on our pay stubs, we naturally tend to focus on it.

But state government takes a bite out of our spending money, too. Bankrate.com will help you stay on top of what your localities are collecting -- income, sales, personal property or investment taxes, or often a combination of all.

Here's a look at some recent tax actions across the nation.

Indiana gas tax break extended
INDIANAPOLIS -- Indiana motorists will continue to get a tax break into September -- and maybe even longer.

In June, Gov. Frank O'Bannon used his executive authority to declare an energy emergency and suspend the state's 5 percent sales tax on gasoline. With the expiration of that original 60-day order at hand, O'Bannon decided to give Labor Day drivers the same break Fourth of July travelers got. Collection of the sales tax on gas purchases will continue to be on hold until Sept. 15.

The mid-September date also will coincide with gasoline industry reports. Following the reports of gas prices from around the state, O'Bannon said, tax relief at gas pumps may be continued further.

Hoosier officials also are closely following a Federal Trade Commission investigation that began monitoring Indiana gasoline prices in July.

According to an American Automobile Association mid-August review, the average price of gasoline in Indiana is about $1.31. Adding the sales tax back in would increase the price to about $1.36 per gallon. Since the original gas-tax suspension began, state officials say Indiana drivers have saved more than $22 million in taxes.

New York cracks down on cigarette tax evaders
ALBANY -- Anyone who gets caught trying to circumvent New York's high cigarette taxes will find themselves paying the state even more in fines and penalties.

Gov. George Pataki has signed into law a bill that raises the state's fines and penalties for selling, transporting or shipping untaxed cigarettes. Such bootlegging has become more of a problem since New York last year raised the tax on cigarettes to $1.11 a pack, the highest in the nation.

Cigarettes now can only be shipped to a licensed or registered cigarette dealer or agent, an export warehouse proprietor or operator of a customer's bonded warehouse, or a federal, state or local official or employee -- not directly to consumers. Currently, there are more than 20,000 licensed cigarette dealers in New York.

The law also specifically bans direct cigarette sales via the Internet, telephone or mail order to consumers to prevent underage children from making purchases.

Illegally shipped or transported cigarettes will be seized and violators charged with a misdemeanor for a first violation, punishable up to one year in jail, and with a Class E felony for a subsequent violation carrying a possible four-year prison term.

The new law also adds a new Class D felony offense, punishable by up to seven years in prison, for bootleggers who possess or transport for sale cigarettes or who sell 30,000 or more unstamped or unlawfully stamped cigarettes. Previously, possession for sale of more than 20,000 cigarettes without New York State tax stamps was considered a Class E felony.

Additionally, the State Health Commissioner can impose fines of up to $5,000 per violation.

New Mexico unveils tax-saving tuition programs
ALBUQUERQUE -- Two programs unveiled on Tuesday, Aug. 29, will help New Mexico residents save for their children's and grandchildren's education while getting tax benefits.

Participants will be able to set aside money in a prepaid college tuition plan, a college savings program or both. They can invest as little as $25 a month. More than half of the states offer prepaid tuition programs. The main benefit of these tuition account programs is that they allow a student's parents to lock in tuition at current rates. The accounts then increase in value at the same rate as college tuition. For example, if a family purchases shares worth half a year's tuition at a state college, these shares will always be worth half a year's tuition -- even 10 years later, when tuition rates may have doubled.

Investments in prepaid tuition plans are exempt from local and state income tax, but are still subject to federal income tax. But the federal tax bill isn't due until the account is tapped to send the child to college. The tax is then charged to the student who benefits from the plan, not the parents, and the student's tax bracket generally is much lower than that of the parents.

The college savings program allows investors to contribute to special accounts that eventually can be used to help pay for college tuition, room, board, books and fees. The money must be spent at accredited schools, but an account can be transferred to another child -- a sibling, niece or nephew -- if the original education fund beneficiary decides not to go to college. Like the prepaid tuition program, the income earned on a college savings fund is state-tax free. It is not taxed at the federal level until it is taken out and then is taxed at the student's rate.

New Mexico has contracted with the Boston-based State Street investment management firm to market and manage the new programs. Official launch and enrollment in the plans will be at the state fair in Albuquerque, Sept. 8-14.