Illinoisans Worried With Possible Indiana Cigarette, Gas Tax Increase

INDIANAPOLIS (AP/CBS) – Indiana lawmakers set a Friday deadline to reach an agreement on the state’s next two-year budget and raising taxes to pay for improvements to the state’s crumbling infrastructure.

But with just days left in this year’s legislative session, the House and the Senate still appear far apart on some key tax provisions. That’s put some other pieces of Republican Gov. Eric Holcomb’s agenda in limbo.

Holcomb, the House, and the Senate still need to find agreement not just on how much, but also how to raise taxes.

House Republicans want to raise cigarette taxes, as well as gas taxes and vehicle related fees. That is upsetting some folks from Illinois. WBBM’s Jim Gudas explains.

At a gas station in Hammond, nearly every car has Illinois plates. The reason? Cheap gas and cigarettes. So the idea of higher taxes on both on the Indiana side of border is not sitting well with many who cross the border.

“Everything is all about the money. Raise the taxes. They are starting to be like Cook County with the highest taxes in the country,” said one driver.

WBBM: Do you think the taxes over here will ever be as high as right across the border?

Driver: “Never.”

And that’s why most Illinois drivers WBBM spoke with believe, even if taxes go up higher in Indiana, gas and cigarettes will still be cheap enough to make the trip.

Holcomb and Senate Republicans oppose raising cigarette taxes.

The infrastructure plan is the top priority for the Republican majority.

(CBS Chicago and The Associated Press contributed to this copy. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Watch & Listen LIVE