Indiana Cigarette Tax Hike Sends Customers South

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Indiana Cigarette Tax Hike Sends Customers South

EVANSVILLE, Ind. -- Residents of Indiana are paying more for a pack of cigarettes, and retailers are fearing they will travel south of the border where taxes are less to stock up on their smokes of choice, local television station WFIE reported.

The new tax, which raised the current tax from 55 cents per pack to 99 cents, was implemented last weekend.

"It's forcing a lot of [customers] to go to Kentucky to buy their cigarettes. Hopefully it won't hurt our business much, but you never know," convenience store manager Karen Kulemkamp told the television station.

And Indiana resident Tom Waldrip will definitely drive across the state line for cigarettes: "It's worth it to save the five bucks a carton," he said.

The extra money from the Indiana tax increase will provide health insurance to more than a 100,000 low-income residents and fund other health initiatives, the report stated.