Tobacco Taxes
Indiana's excise tax per pack of cigarettes: $0.555
Indiana's excise tax collection for the
fiscal year ending June 2002: $114,757,000
Sales tax on tobacco products: 6.00%
Federal excise tax per pack of cigarettes: $0.39
Total federal excise tax collections in fiscal year 2002: $7,512,700,000
Comparing Excise Taxes on Cigarettes, Beer and Wine
Number of six-packs of beer that must be sold in Indiana to produce the same state excise tax revenue generated by one carton of cigarettes: 85.8
Number of bottles of wine that must be sold in Indiana to produce the same state excise tax revenue generated by one carton of cigarettes: 59.6
Indiana Smokers' Contributions to the State Economy - FY2004
In 2003, Indiana smokers comprised only 26.1% of the adult population in the state. Here is what they already pay because they choose to buy a legal product:
Smokers Pay Excise Taxes $335,915,000
Smokers Pay Sales Taxes $125,116,000
Smokers Pay Tobacco Settlement Payments $126,600,000
$587,631,000
Smokers' Economic/Tax Profile 2003
Income
Indiana smokers' median household income $33,135
Indiana nonsmokers' median household income $44,086
Working families pay more
36% of Indiana smokers had household incomes LESS THAN $25,000
11% of Indiana smokers had household incomes EQUAL TO or GREATER THAN $75,000
The impact of smoker payments on the incomes of working families was more than THREE TIMES the impact on higher income smokers. Those who can afford it least pay a disproportionate percentage of their hard-earned income in smoker payments.
Smoker excise tax/sales tax/tobacco settlement payments liability in FY2004
Total average paid per Indiana smoker in excise and sales taxes $392
Cost per Indiana smoker for settlement payments to Indiana $108
Total annual payments to Indiana per smoker $500
Total annual payments to Indiana per nonsmoker $0