Indiana Convenience Stores Call Cigarette Tax Hike Proposal ‘Devastating’

The Indiana Grocery and Convenience Store Association warns that such an increase would put state retailers at a huge disadvantage.

March 08, 2017

INDIANAPOLIS – Indiana convenience stores are fighting a proposed $1 per pack tax increase on cigarettes, WIBC-TV reports. The Indiana House introduced the tax hike as part of the budget process.

That hasn’t sat well with the Indiana Grocery and Convenience Store Association, which called the potential increase “devastating” to its members. Raising the Indiana cigarette tax a dollar would put the state on par with neighbors Michigan and Illinois, but 40 cents higher than Ohio.

Retailers predict a tax increase would hit them hard. Chuck Taylor of the Chuckles Convenience Store chain said his stores experienced an 18% decline in sales when the state jacked up cigarette taxes a decade ago. Circle K estimates it would lose $3 million annually in the wake of a higher tax. Gary Kuns, tobacco marketing director for Speedway, testified that Illinois generated less tax money when that state increased the cigarette tax by a dollar five years ago.

Health advocates are pushing hard for a higher cigarette tax as a way to curb smoking. In 2015, Indiana had a 20.6% smoking rate, ranking it as the 12th highest of all 50 states.

Advertisement
Advertisement
Advertisement