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Indiana Lawmakers Approve Cigarette Tax Hike
May 2, 2007

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News Summary

Indiana lawmakers in the state House and Senate reached a bipartisan consensus in favor of raising the state's cigarette tax by 44 cents per pack, with the funds used to pay for childhood immunizations and health insurance.

The Indianapolis Star reported April 28 that the plan calls for hiking the state tobacco tax to 99.5 cents per pack. Once lawmakers sign off on the final version of the bill, it will be sent to Gov. Mitch Daniels, who already has said he will sign it into law.

The $206 million in tax expected to be generated annually will help pay for an insurance plan for 132,000 uninsured Indiana residents. Also, $1.2 million will be earmarked for the Indiana Tobacco Prevention and Cessation Program. Daniels had called for $24 million to be spent on the program.

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