Introduced Version
HOUSE BILL No. 1251
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DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-7-1.
Synopsis: Cigarette taxes. Increases the cigarette tax by $1 to $1.995
per pack of regular size cigarettes and makes a corresponding increase
for larger cigarettes.
Effective: July 1, 2025.
Rowray
January 9, 2025, read first time and referred to Committee on Ways and Means.
2025 IN 1251—LS 6989/DI 125 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1251
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 6-7-1-0.4, AS ADDED BY P.L.220-2011,
2 SECTION 161, IS AMENDED TO READ AS FOLLOWS
3 [EFFECTIVE JULY 1, 2025]: Sec. 0.4. (a) Notwithstanding section 14
4 of this chapter, revenue stamps paid for before July 1, 2007, and in the
5 possession of a distributor may be used after June 30, 2007, only if the
6 full amount of the tax imposed by section 12 of this chapter, as
7 effective after June 30, 2007, and as amended by P.L.218-2007, is
8 remitted to the department under the procedures prescribed by the
9 department.
10 (b) Notwithstanding section 14 of this chapter, revenue stamps
11 paid for before July 1, 2025, and in the possession of a distributor
12 may be used after June 30, 2025, only if the full amount of the tax
13 imposed by section 12 of this chapter, as amended and effective
14 after June 30, 2025, is remitted to the department under the
15 procedures prescribed by the department.
16 SECTION 2. IC 6-7-1-12, AS AMENDED BY P.L.191-2016,
17 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2025 IN 1251—LS 6989/DI 125 2
1 JULY 1, 2025]: Sec. 12. The following taxes are imposed, and shall be
2 collected and paid as provided in this chapter, upon the sale, exchange,
3 bartering, furnishing, giving away, or otherwise disposing of cigarettes
4 within the state of Indiana:
5 (1) On cigarettes weighing not more than three (3) pounds per
6 thousand (1,000), a tax at the rate of four and nine hundred
7 seventy-five thousandths cents ($0.04975) nine and nine
8 hundred seventy-five thousandths cents ($0.09975) per
9 individual cigarette.
10 (2) On cigarettes weighing more than three (3) pounds per
11 thousand (1,000), a tax at the rate of six and six hundred twelve
12 thousandths cents ($0.06612) thirteen and two hundred
13 fifty-seven thousandths cents ($0.13257) per individual
14 cigarette, except that if any cigarettes weighing more than three
15 (3) pounds per thousand (1,000) shall be more than six and
16 one-half (6 1/2) inches in length, they shall be taxable at the rate
17 provided in subdivision (1), counting each two and three-fourths
18 (2 3/4) inches (or fraction thereof) as a separate cigarette.
2025 IN 1251—LS 6989/DI 125