Indiana lawmakers have reached a budget agreement—backed by Governor Mike Braun—that would raise the tax rate on premium cigars from 24% to 30% of the wholesale price and increase the per-cigar cap from $1.00 to $3.00.
This is not just a tax increase. It's a fundamental shift in how Indiana treats small businesses, adult consumers, and a traditional industry built on craftsmanship, community, and culture.
Take action now and stand with us and urge Indiana lawmakers to reject this harmful policy.

Oppose Indiana Budget Agreement That Raises Taxes on Premium Cigars!

I am writing to express my strong opposition to the proposed increase in the premium cigar tax rate from 24% to 30% and the raise in the per-cigar cap from $1.00 to $3.00 as outlined in the latest state budget agreement.

This proposal would have severe consequences:

- Small Businesses Will Suffer: Premium cigar retailers across Indiana operate on thin margins. Raising the tax burden not only reduces profitability but could also lead to fewer jobs, reduced hours, and store closures—particularly in rural and independent shops.

- Indiana Consumers Will Pay More: This tax increase directly affects adult consumers by making legal, discretionary products significantly more expensive. Higher prices will drive Hoosiers to shop out of state or online, hurting in-state businesses.

- Unintended Economic Consequences: Increasing the tax cap to $3.00—a 200% increase—would make Indiana one of the least competitive states in the Midwest for premium cigars. The result? Lost sales, decreased tax revenue, and migration of business to surrounding states with more reasonable policies.

I urge you to reconsider this misguided policy and protect Indiana’s small businesses, and adult consumers. Please remove the premium cigar tax increase from the final budget and support a fair, balanced tax policy that reflects the unique nature of premium cigars.

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