Avalara Taxrates > Blog > Sales Tax News > Indiana Border Cigarette Sales Tax Effect - Avalara

Indiana Border Cigarette Sales Tax Effect

  • Jun 5, 2012 | Susan McLain

Smokers in western Indiana have been going over the state line to Illinois the past few years, according to a report by Will am 580 in Illinois. The “…higher sales taxes [in Indiana] have sent potential customers over state lines….”

That may soon change. “Illinois Governor Pat Quinn has said he’ll sign the dollar-increase in cigarette taxes passed last week by lawmakers. It will more than double the increase to a dollar-98 a pack.”

Terre Haute, Indiana’s Wabash Cigar Store owner Brian Brickey indicates that “…the tax should not only produce a spike in business [on the Indiana side], but prompt law enforcement to look for those trafficking cigarettes back in Illinois.” His cigar sales already benefit “…from an already-higher Illinois tax on cigars.”

Brickey says the Illinois police may also try to control the number of cigarette cartons that can be sold. Currently, “…consumers in Illinois can purchase up to 9 cartons of cigarettes for personal use.”

Get Free Tax Rate Tables

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Susan McLain
Avalara Author Susan McLain
Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”