ANDERSON — Smoking became a more expensive habit in Indiana this week.
Smokers across the state saw a $2 increase in the state tax on cigarettes that took effect on Tuesday.
The tax increased from 99 cents per pack to $2.99. The average price of a pack of cigarettes in Indiana is expected to be $11. The price in Kentucky is $8.63; $9.59 in Ohio; $10.33 in Michigan; and $11.99 in Illinois.
Tim Dillon, who owns North Anderson Discount Tobacco on Broadway, said he saw a spike in cigarette sales before the tax increase went into effect.
“It went up the last couple of weeks as people stocked up,” Dillon said. “The increase was not as much as in the past.”
Lenny Sharp noted that the price of cigarettes with the $2.99 tax also included a 7% sales tax on every purchase.
“How can you collect a tax on another tax?” he asked.
Steve Fuller has been smoking for 50 years. On Wednesday, he said he was thinking about quitting.
“The increase will encourage me to think about it,” he said. “I will at least cut back. My wife complains about how much I spend on cigarettes.”
Fuller said he smokes half a pack to a pack of 20 cigarettes daily.
“I should have bought some before the tax increase,” he said.
The tax hike is expected to generate $800 million for the state over the next two years.
The legislation raising the tax has designated 60% of the additional revenue to pay for Medicaid costs; 11% for the Healthy Indiana Plan; and 23% to the state’s general fund.
According to the Centers for Disease Control and Prevention, 24.5% of the adults in Madison County were smokers, compared to the state average of 19.2% in 2022.
Stephenie Mel linger, administrator for the Madison County Health Department, said she is hopeful the tax increase will encourage people to quit smoking or at least smoke less on a daily basis.
“The cost is becoming so expensive that people will step down in their amount of smoking,” she said.
Mellinger said a tax increase on cigarettes had been discussed for a long time before being approved by lawmakers. She said some people will buy cigarettes in other states where there is a lower cost.
“The budget passed by the Legislature represents a significant victory in the battle against cancer and for the health of Hoosiers,” said Allie Kast Gregg, government relations director with the American Cancer Society Cancer Action Network.
She commended the state for prioritizing the well-being of Hoosiers by implementing the increase, along with tax hikes on other tobacco products.
“These actions will ease the burden of cancer for Hoosiers and enhance the overall health of Hoosiers by preventing tobacco use,” Gregg said of the increased tax on other tobacco products.
Increasing tobacco taxes is one of the most effective ways to reduce tobacco use, especially among kids, she said.
“This $2 per pack increase is estimated to help 32,400 adults quit and keep 7,000 youth from becoming adults who smoke,” Gregg said.
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