Are Hoosiers heading to Ohio for cigarettes?

FORT WAYNE, Ind. (WANE) — Once upon a time, folks in northeast Indiana would travel east across the state line to Ohio on Sundays in order to purchase alcohol until the Hoosier State overturned the longstanding law.

Now, the pattern may be repeating. This time, however, the exodus involves cigarettes.

The Indiana General Assembly passed new legislation that went into effect July 1 and raised taxes on cigarettes by $2. The increase, which came through the state’s newest budget, marked the first time state legislators raised taxes on the well-known tobacco product in nearly two decades.

The tax hike affects all tobacco and nicotine products, including vapes, e-cigarettes and chewing tobacco.

After visiting several gas stations Thursday, WANE 15 learned the new price discrepancies between Indiana and Ohio have led to some Hoosiers traveling to the Buckeye State for cigarettes.

A gas station in Payne, Ohio, told WANE 15 they had already seen plenty of Indiana natives stop in for cigarettes and that others have been calling the gas station to ask about their prices.

Another gas station in Antwerp just off U.S. 24 said they believe the number of Hoosiers coming to the store has roughly tripled since the tax hike.

Contracts between gas stations and cigarette companies allow the latter organizations to offer discounts, meaning the price of a specific brand can vary between gas stations in the same state depending on the deals they have with cigarette companies.

Indiana law also requires cigarette companies to have minimum prices for each brand established in order to protect tax revenue and retailers while allowing for healthy competition between cigarette companies. A full list of the minimum cigarette prices in Indiana can be found on the Indiana Alcohol & Tobacco Commission’s website.

One example WANE 15 discovered included the comparison of a Shell gas station and a BP gas station in Fort Wayne.

Both sold standard packs of Maverick cigarettes at the state minimum price, $9.33, while having a price difference of nearly $2 with LD cigarettes. The Shell sold the latter brand at $6.59, the state minimum, while the BP had LD packs at $8.23.

Cigarette Brand	Fort Wayne (Shell)	Fort Wayne (BP)	Payne	Antwerp
Basic	$6.50	N/A	N/A	$4.29
LD	$6.59	$8.23	N/A	$4.59
Maverick	$9.33	$9.33	$8.49	$7.17

The tax increase is expected to bring in roughly $400 million each year for the State of Indiana, according to state officials, and proponents argue the added tax dollars provide more government funding while also acting as a deterrent for a product deemed harmful.

According to the American Lung Association, every 10% increase in the price of cigarettes reduces consumption by about 4% among adults and about 7% among youth.

Those opposing the tax believe the price hikes will only drive sales out of the state while hindering retailers and tax revenue.