Chicago Eyes Cigarette Tax Increase

Measure would raise the price of cigarettes to $4.66 per pack.

May 10, 2010

SPRINGFIELD, IL - Chicago smokers would pay $1 more on a pack of cigarettes under a proposal advancing through the Illinois General Assembly, the Chicago Tribune reports.

A House panel last week approved an increase in the state??s cigarette tax to $1.98 a pack, up from the current 98 cents. The bill would phase in the increase over two years: 50 cents this September 1 and 50 cents a year later. The state tax would add to Chicago??s 68-cents per-pack tax and Cook County??s $2 per-pack tax. Accordingly, a pack of cigarettes in Chicago would carry a total tax tab of $4.66.

The bill, SB44, passed the Senate last Thursday with broad support, while a House panel also approved the measure (though the latter requires additional votes before reaching the House floor).

Illinois Democrats maintain that the tax would raise an additional $300 million in state revenue each year, which would pay for educational expenses and special education. Republicans have expressed concerns that the money would ultimately fund other budget gaps.