HB 1434 – Cigarette and Tobacco Products Tax
Authored by Rep. Julie Olthoff (R-Crown Point)
Increases the cigarette tax by $1 to $1.995 per pack of regular size cigarettes and makes a corresponding increase for larger cigarettes. Provides that revenue received from the increase in cigarette tax is deposited in the state general fund for the purpose of paying appropriations for Medicaid current obligations for provider reimbursements. Amends the definition of “tobacco product” to include e-liquid and an electronic cigarette. Amends the definition of “wholesale price” concerning tobacco products manufactured and sold in Indiana. Increases the tax on tobacco products (other than moist snuff) to 39% of the wholesale price of tobacco products.
Chamber position: Support (a top priority)
The latest: The bill was amended on its second day of discussion and passed the House Public Health Committee 8-3 along party lines. The biggest concern among Democrats on the committee is that the revenue will not be used directly for smoking/health related issues. The bill has been recommitted to the House Ways and Means Committee for consideration.
Indiana Chamber action/commentary: The Chamber testified in support of the bill because of the financial impact smoking has on businesses. Smoking and tobacco products cost Hoosier business about $6.2 billion a year. There are people who use vaping products to quit smoking, but the research says there are more individuals who use both or go from vaping to smoking. In addition, our preference would be that the amount of tax would be raised even higher than $1.00 – especially since this committee previously passed a $1.50 increase to the cigarette tax a few years ago.
Resource: Mike Ripley at (317) 264-6883 or email: mripley@indianachamber.com
