Senate Bill 382, authored by Sen. Travis Holdman (R-Markle), is the Department of Revenue legislation to address the agency’s top items. This week, it passed the full Senate 37-12. But an amendment last week contained language to lower taxes on e-cigarettes from 25% to 15% and put a cap on cigar taxes, among other things. That’s concerning. Studies clearly show that young people who use e-cigarettes are more likely to transition to regular cigarettes. It’s reckless to be making it easier for them to get e-cigarettes by decreasing the cost. Indiana’s health metrics are already among the worst in the country and tobacco use is a big reason why. We do not want to encourage more tobacco use in the state and more people beset by health problems as a result, and that’s exactly what this bill does now.
We believe House leaders to be more supportive of our position and efforts regarding bringing greater taxing parity to vaping products as compared to traditional tobacco. So, we will continue to have discussions on this matter to try to get a favorable outcome. In general, we don’t like seeing controversial items inserted into agency bills, which are essentially measures that are destined to pass. It’s unfortunate that was done to SB 382, which otherwise was improved to become a good piece of legislation for the tax professionals’ community in particular. Case in point: SB 382 would clarify how federal partnership adjustments made by the IRS are dealt with in Indiana.
Resources: Mike Ripley at (317) 264-6883 or email: mripley@indianachamber.com; Bill Waltz at (317) 264-6887 or email: bwaltz@indianachamber.com
