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HENDERSON, Ky. - Indiana’s cigarette tax tripled on Tuesday, prompting Hoosiers to cross state traces into Kentucky for cheaper tobacco and boosting enterprise for retailers like Trocadero Plaza in Henderson.
As reported by the Indy Star, Indiana’s tax increase, the first in almost two decades, was supported by advocacy groups just like the American Lung Association and the Indiana Chamber of Commerce, who argue it would deter smoking and generate $800 million over two years for Medicaid. The tax hike, geared toward addressing Indiana’s $2 billion price range shortfall, has sparked debate over its economic and health results, whereas Kentucky retailers capitalize on their state’s decrease $1.10 per pack tax.
A test buy by Spectrum News 1 highlighted the value disparity: a pack of Marlboro Black cigarettes cost $10.
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