Two Dollar Cigarette Tax Increase Part of Indiana Budget Deal

Hoosier cigarette smokers can expect to pay two-dollars per pack more in the cigarette tax now that a $2.00 cigarette tax increase is part of the final Indiana budget deal. This is the first cigarette tax increase in 17 years and is intended to help close a $2 billion revenue shortfall in the state budget. The tax hike will also apply proportionally to other tobacco products and the revenue generated is earmarked for Medicaid programs. This measure is combined with cuts to higher education and public health funding, while K-12 education funding will reportedly increase by 2% annually.

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Indiana State Capitol Building. Photo by Russ Kaspar