Tax Hikes On Gas And Cigarettes Could Mean More Business For Stores In Indiana Border Counties

HAMMOND, Ind.  — Tax hikes in Illinois will make gasoline and cigarettes a bargain in Indiana.

Starting July 1, the Illinois gas tax will double from 19 cents to 38 cents per gallon, compared to the 29 cents per gallon tax in Indiana.

Also next month, cigarettes will cost $1 more per pack in Illinois on top of the $1.98 tax per pack already in place.

Chicago already has the highest taxes in the nation on cigarettes and that will increase to $8.16 per pack.

By comparison, Indiana taxes 95 cents per pack of cigarettes.

That advantage might not last long if some lawmakers in the Hoosier state have their way.

A proposal to raise the tax by $2 per pack failed in the Indiana Legislature this year, despite support in the polls and the backing of the Indiana Chamber of Commerce.