Indiana’s Excise Tax

[Dr. Van Loafer]

Well this Indiana Tobacco Excise tax is now in effect. Dang it. Started July 1. Did others miss this new tax?


“Effective July 1, 2023, the State of Indiana is imposing an excise tax on all tobacco products sold to Indiana customers. Cigars and pipe tobacco will be taxed at 24% of the wholesale purchase price. For more details on the Indiana excise tax, please review here.”

 

[yanoJL]

Ugh. I'm not in Indiana. But I feel the noose getting tighter. I can't remember a legislative effort that helped our hobby.

 

[warren]

I can't remember a legislative effort that helped our hobby.

You may be too young but, back in the day you not only purchased your tobacco products but, your tax dollars heavily subsidized tobacco farmers. Yes, farmers were paid to produce tobacco and lots of it!

For you hobbyists I know of no legislation enacted to support hobbies. Well, shooting and fishing are obvious exceptions. I suppose there are a few others I can't think of. Legislation by its very nature reduces the freedom of someone, somewhere. That's what laws are designed for, to control people actions in some form or another. Murder, speeding, usury, blue laws, smoking, and so forth, all reduce activities. Some laws we like and obey others, not so much. But, HO gauge trains, knitting, crossword puzzles, model building, stamp collecting, gardening and such hobbies are pretty much untainted by direct legislation. Others may overseen by some sort of governing body, drag racing comes immediately to mind. High school sports, golf (more of an addiction than a hobby for some). Only a few smokers, those unwilling to just accept themselves as, perish the thought, smokers, label their wee vice a hobby. Self-denial can be a wonderful thing.

 

[sablebrush52]

I can't remember a legislative effort that helped our hobby.

Tobacco farmers were subsidized as a result of laws passed during the Great Depression intended to keep farmers from going bankrupt. Starting in 2004, and ending in 2014, these subsidies to tobacco farmers were phased out, with the result that many growers turned to growing other, more profitable, less labor intensive, crops. Or, they turned to machine harvesting, rather than hand picking crops as they ripened, or other economies. Big surprise that there are less sources, as well as a drop in quality in the years following.

 

[kcghost]

Damn criminal is what it is. The anti-smoking crowd is relentless in their hunt for any and all ways to kill us off.

 

[warren]

Damn! The hobbyists will have to find another diversion. We serious smokers will pay more but, the various tobacco related taxes generate too much revenue I think. Time will tell what the end result will be. And, I'll be eating the dirt sandwich before then. So, luck to you younger guys and it would be wise to insure your income keeps pace with the rising costs of our indulgence, it ain't gonna get any cheaper. Don't put off increasing your value to employers or improving your skills. Remember, the robots are coming so keep learning and improve your bottom line every year.

 

[yanoJL]

You may be too young but, back in the day you not only purchased your tobacco products but, your tax dollars heavily subsidized tobacco farmers. Yes, farmers were paid to produce tobacco and lots of it!

For you hobbyists I know of no legislation enacted to support hobbies. Well, shooting and fishing are obvious exceptions. I suppose there are a few others I can't think of. Legislation by its very nature reduces the freedom of someone, somewhere. That's what laws are designed for, to control people actions in some form or another. Murder, speeding, usury, blue laws, smoking, and so forth, all reduce activities. Some laws we like and obey others, not so much. But, HO gauge trains, knitting, crossword puzzles, model building, stamp collecting, gardening and such hobbies are pretty much untainted by direct legislation. Others may overseen by some sort of governing body, drag racing comes immediately to mind. High school sports, golf (more of an addiction than a hobby for some). Only a few smokers, those unwilling to just accept themselves as, perish the thought, smokers, label their wee vice a hobby. Self-denial can be a wonderful thing.

I appreciate your taking the time to write out that thoughtful reply. I have, since joining this forum, taken note of the generosity with which you share on these pages. And I read your words with all warranted reverence and gratitude.
To your point, perhaps I might have been better served to use the term "protect" rather than "help" in describing tobacco legislation.

Admittedly, I have my moments of self-absorbtion. But I'm not too far gone to recognize that I certainly do not speak for everyone when I use the word "hobby".

I find pleasure in reading about the history of pipes and tobacco; from its role in the American colonies and beyond. I enjoy my humble, yet growing, collection of pipes from various countries and craftsman around the world. I have fun in the kitchen, tinkering with casing, pressing and sometimes even stoving my own blends. And I often relax during the day reading this forum and the content shared by like-minded people.
I do all of these things, sometimes without a lit pipe in my hand or smoke in the air. So am I in denial when I use the term "hobby"? Perhaps.
But that's what it feels like to me.

 

[FurCoat]

Wow, 24%. That is exorbitant.

 

[daveinlax]

That’s a very low tax rate.

Wow, 24%. That is exorbitant.

24% is very low compared to most other states.

 

[warren]

I readily accept that there are self-defined "hobbyist" smokers. Which is why I wrote "you hobbyists". But, hobbyists are in fact, smokers also. What you chose to label yourself is, of course, your choice. For me? I find it a misnomer to be sure. A matter of semantics which is certainly open to, hopefully, light hearted discussion.

I thank you for your kind words though. I just, personal opinion only, find the term to be a bit "defensive", for want of a better term. But, that is my take and perhaps I get a bit over the top when I see it in print. Were I you, I certainly wouldn't put much thought to my position. If you are happy thinking of it as a hobby, I am tickled plumb to death for you.

 

[JackOrion]

Ahhh yes Indiana, made Forbes top ten list of states that had the greatest exodus in 22’

 

[gamzultovah]

Don't put off increasing your value to employers or improving your skills. Remember, the robots are coming so keep learning and improve your bottom line every year.

Best advice I’ve read on the forum in quite a while.

 

[El Capitán]

I kept up with the legislation. They worry about legalizing marijuana but then tax the shit out of us who only smoke tobacco.

 

[brian64]

Remember, the robots are coming

No, the Scoops are coming.

 

[sablebrush52]

Well this Indiana Tobacco Excise tax is now in effect. Dang it. Started July 1. Did others miss this new tax?


“Effective July 1, 2023, the State of Indiana is imposing an excise tax on all tobacco products sold to Indiana customers. Cigars and pipe tobacco will be taxed at 24% of the wholesale purchase price. For more details on the Indiana excise tax, please review here.”

Wow! That's pretty damned minor compared to many other states.

 

[sablebrush52]

Don't put off increasing your value to employers or improving your skills. Remember, the robots are coming so keep learning and improve your bottom line every year.

Certain jobs will be safe for a few more years, or possibly longer, as humans provide a more useful option. But, if you're looking to cash in on the coming AI revolution, become an expert at instructing AI. That's where the money will be for a few years, before that bubble bursts, like Tech. All you need is a really high level command of communication, which is a very rare human trait.

 

[TN Jed]

hobbyists are in fact, smokers also

That's why I call it a hobit. I think it's ok to consider yourself both. I smoke for the nicotine but I buy different pipes, accessories and tobacco because I enjoy collecting and trying new things. If you only smoke basic bare bones pipes with the cheapest highest nicotine tobacco you can find then yea its not a hobby. IMO the later sounds terrible and defeats the purpose of a pipe vs other forms of nicotine consumption. FYI I appreciate and enjoy reading your pragmatic dogma even if I don't always agree.

 

[FurCoat]

That’s a very low tax rate.

24% is very low compared to most other states.

12.8% of "wholesale" price here in NC which translates to 6% I pay at checkout. That started this year.

 

[Briar Lee]

That’s a very low tax rate.

24% is very low compared to most other states.

The three major sources of state tax revenue in Indiana are state sales taxes, personal income taxes, and corporate income taxes. But like many other “low tax” states Indiana has become addicted to federal money, which is 40% of revenues.

https://www.wfyi.org/news/articles/where-does-indiana-state-budget-funding-come-from#:~:text=The%20state's%20three%20major%20taxes,half%20of%20all%20budget%20funding.

Why so many states are sucking the federal tit, while others feed the money cow by paying in six dollars for every one it gets back, like Minnesota, is complicated.

Do You Live in the State That's Most Dependent on the Federal Government?

In 2022, the federal government spent $6.27 trillion1. Most of the government's revenue comes from taxes collected from individuals and businesses across the U.S. Though taxes are mostly collected by the federal government, individual states are primary recipients of that … Continue reading →...

finance.yahoo.com

Most of it seems to be due to lack of courage to tax residents enough to balance budgets.

And who can blame a state legislator that would like to keep a cushy job they’ll lose if they raise state taxes?

Other reasons are apparent if you drive around rural areas and see gleaming new water towers and new fire stations there is no way under the sun those little towns could ever beg money from the state to have.

What’s always puzzled me is why they never tax beer drinkers very heavy.

Maybe they know the beer drinkers would revolt.

 

[Briar Lee]

I sat as an elected local school board member from 1999 through 2001, three years.

Whatever the levy per hundred dollars was, we lowered it a nickel or a dime each year. One year we lowered it a dime and a guy sued us because we didn’t lower it another nickel.

When we spent money, we always searched first for a government or charitable grant, for everything and anything except to hire more coaches for the high school boy’s football team or to improve the football field.

And every morning in the coffee shop the old men complained how high the school taxes were.

The virtue of democracy is democracy works. There’s no better substitute.

The vice of democracy is elected politicians spend all their time trying to appease the taxpayers.

Somebody else can be a public servant besides me.

I served my three years.