G-O-P Legislators Seek $1 Increase In Cigarette Tax

Indiana House Republicans are proposing a one-dollar per pack increase in the cigarette tax to help indirectly fill the budget hole caused by shifting all the state sales tax on gasoline to road funding.

Originally House Republicans had planned to shift the entire state sales tax on gasoline to the road fund over a three to four year period. However, due to a public outcry, that shift will now occur over a one year period.

Such a move could cost the general revenue fund nearly 300-million dollars a year.