Statehouse Update: Cigarette Tax Hike, Tesla Bill Amended

The House Public Health Committee approved legislation this week to raise the cigarette tax by a $1.50, up to nearly $2.50 a pack. It also increases the legal age to buy tobacco from 18 to 21. Proponents say the bill will help address the state’s high smoking rate – a quarter of Hoosiers smoke. Some opponents say the tax hike will hurt convenience stores because Indiana would lose its competitive price advantage over other states.

A committee this week revised a bill that bans auto manufacturers from selling their vehicles directly to customers. The measure would essentially force electric car maker Tesla out of the state within the next few years. Proponents of that bill say it’s about consumer protection and ensuring balance in the marketplace. Still, bill author Rep. Ed Soliday (R-Valparaiso) drafted a compromise, an amendment that would allow Tesla, specifically, to continue selling in the state.

And the House approved a measure allowing locals to create syringe exchange programs without state approval. Critics say the programs enable drug use, but statistics in existing Indiana programs don’t back that up. The bill now heads to the Senate.