The Tobacco Tax ordinance currently only applies to cigarettes. The tax will be expanded to other tobacco products. “Roll your own” tobacco products will be taxed on a per ounce base just like cigarettes.
Background:
•Tax rate on Cigarettes will not change, only the tax base will expand
•The tax stamps are imposed on wholesalers, not consumers.
•Ordinance was enacted in 1980 and last changed in 2006 to increase violation penalties (no Cigarette tax rate change).
•More than 85 taxing bodies levy Tobacco Tax in Illinois.
•The State of Illinois imposes a $0.98 tax on a pack of cigarettes and a tax of 18% of wholesale price of tobacco products sold to a retailer or consumer.
|
Cigarettes |
Small Cigars |
Large Cigars |
Smokeless |
Smoke Tobacco |
| Current |
$0.10 (unit) |
NA |
NA |
NA |
NA |
| Proposed |
$0.10 (unit) |
$0.05 (unit) |
$0.30 (unit) |
$0.60 (ounce) |
$0.60 (ounce) |
Rationale:
•Cook County is responsible for providing public health (35% of the budget).
•Consumption of all tobacco products have negative effects on public health:
Tobacco is the leading preventable cause of death in the United States (18.1% of total US deaths). (Center for Disease Control). Smokeless tobacco is not a safe alternative to cigarettes and is associated with multiple adverse health consequences, including oral cancer, gum disease, and tooth decay. (Center for Disease Control)
•It is more fair and equitable to impose the tax on all tobacco products, instead of just cigarettes.
•The additional revenue will allow the County to invest in its public health and public safety infrastructure.
•68% of voters supported raising the Tobacco tax to close budget deficits in a 2004 poll. (Mellman Group & QEV Analytics 4/04)
•
Budget impact:
•The potential expansion of the Tobacco Tax Ordinance is expected to yield $12.1 million in 2012.
