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* SJ-R on the governor’s proposed 32-cents per pack tax hike on cigarettes…
“Given available data from public health research on smoking habits in Illinois, cigarette consumption is likely to continue decreasing over the next few years,” said an entry in the budget book prepared by Pritzker’s office.
It was accompanied by a chart showing cigarette tax receipts dropping from $807 million in the 2016 fiscal year (which ended June 30, 2016) to an estimated $700 million this year. The last cigarette tax hike was in 2012 when it was increased by $1 a pack to $1.98.
Illinois ranks 19th in the country now for the level of its cigarette tax. The only state adjoining Illinois with a higher tax is Wisconsin at $2.52 a pack. It would still be higher if Illinois enacts the latest increase.
However, Illinois will be surrounded by other states with far lower cigarette taxes, including Missouri which ranks 50th at 17-cents a pack.
“They’re putting nails in our coffins,” said Bill Fleischli, executive vice-president of the Illinois Petroleum Marketers Association, Illinois Association of Convenience Stores, who also pointed to the effort to raise the tobacco purchasing age. “They raised the minimum wage, they’re going to try to tax gasoline.”
posted by Rich Miller
Friday, Feb 22, 19 @ 12:30 pm
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Previous Post: College Republican leader alleges Krupa “easily and consistently” lies about his background
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Most appropriate title ever.
Comment by City Zen Friday, Feb 22, 19 @ 12:34 pm
“Hello, Indiana? Please have my twelve cartons of Marlboros ready for pickup today by 5 PM…and if Toni gets in as Mayor, you’ll need to restock the Diet Coke as well”.
Comment by Stuntman Bob's Brother Friday, Feb 22, 19 @ 12:36 pm
I have little sympathy for Bill and his vice-peddling constituency. And I’m shocked we weren’t taxing the vaping stuff from the outset; it’s just another nicotine delivery system like chewing tobacco. The only vaping exemption should be for vape fluid that contains no nicotine.
Vice taxes are voluntary taxes; makes them easier to pass.
Comment by Anonymous Friday, Feb 22, 19 @ 12:47 pm
Oh goodness, that’s actually the name of their organization: https://www.ipma-iacs.org/i4a/pages/index.cfm?pageid=1
Comment by NIU Grad Friday, Feb 22, 19 @ 12:49 pm
The biggest nail in the coffin for convenience stores that sell gas was the invention of pay-at-the-pump.
Comment by 47th Ward Friday, Feb 22, 19 @ 12:51 pm
If you can’t survive as a business without selling poison sticks, you deserve to go out of business. Sorry not sorry.
Comment by Perrid Friday, Feb 22, 19 @ 12:56 pm
That’s rich. They supplement their gasoline sales as the go-to place for cigarettes, booze, gigantic sodas, lottery/gambling, energy-everything, and every manor of junk food and they use a coffin metaphor for sympathy? Shutter the whole building and we’ll all be better off.
Comment by XonXoff Friday, Feb 22, 19 @ 12:57 pm
Meh, Mr Fleischli. If you live close to Missouri, you are already going to get your smokes there. As a quitter that has relapsed twice in last five years, I applaud any action that makes my innate sense of cheapness more powerful versus nicotine cravings.
Comment by Ducky LaMoore Friday, Feb 22, 19 @ 1:02 pm
Folks near the border to Indiana have been getting smokes there for 50 years.
In Cal City you got booze (all the bars were on the Cal City side) and later lottery tickets and your smokes and gas in Indiana. This isn’t a new development
That being said, they annexed a corner out by me so it was in a different town so a gas station selling smokes could be built closer to a school than Aurora law allowed.
Comment by OneMan Friday, Feb 22, 19 @ 1:07 pm
Give me a break Mr Fleischli. The last time the Motor Fuel Tax was raised was in 1993. Vehicle MPG has increased since then which decreases fuel consumption which while good for the environment has hurt the MFT tax collections.
We don’t need to encourage our young people to take up the smoking habit. Rather than think of the money taken in by businesses who sell cigarettes think of the health care costs once some of these folks get lung cancer.
Comment by The Dude Abides Friday, Feb 22, 19 @ 1:21 pm
Illinois border towns cannot catch a break, and shouldn’t expect any help from this administration. This is a state government run for and by Chicago interests/liberal values. How it impacts small business like border town convenience stores is the last of their concerns.
Comment by Unpopular Friday, Feb 22, 19 @ 1:25 pm
In principle, I have no objection to an increased tax on cigarettes. My concern with the higher tax, though, is that increases the incentive to smuggle cigarettes. If people are going to smoke, I’d rather see the cigarettes sold by gas stations than gangs, organized criminals, and groups that support terrorist organizations.
Comment by Pelonski Friday, Feb 22, 19 @ 1:29 pm
I said something very similar to this yesterday. The largest consumers of tobacco are people of lower socioeconomic status, so although I’m not against it, it sounds like it’s another way to tax poorer people. Plus with the lower rate of smokers, that revenue stream is going to begin to dry up eventually.
Comment by Duke of Normandy Friday, Feb 22, 19 @ 1:50 pm
I suppose we could follow the lead of Hawaii and start raising the legL age to smoke.
https://www.cnn.com/2019/02/04/health/hawaii-cigarette-ban-bill-trnd/index.html
That would really break out the nail gun.
Comment by Huh? Friday, Feb 22, 19 @ 2:05 pm
Pun intended?
Comment by Just Me 2 Friday, Feb 22, 19 @ 2:06 pm
==Illinois border towns cannot catch a break, and shouldn’t expect any help from this administration. This is a state government run for and by Chicago interests/liberal values. How it impacts small business like border town convenience stores is the last of their concerns.==
Sauk Village’s problems run a lot deeper than the smoke shops in Dyer that have populated US 30 for three decades.
Comment by Roadrager Friday, Feb 22, 19 @ 2:17 pm
Unpops “…run for and by Chicago interests/liberal values. How it impacts small business like border town convenience stores is the last of their concerns”
I am not Chicagoan nor liberal values but if you made a list of over a thousand things to care about, I’d have a hard time keeping border town convenience stores out of my bottom three.
Comment by I Miss Bentohs Friday, Feb 22, 19 @ 2:30 pm
They should package this with the pension “crisis” and advocate free booze and cigarettes for all state retirees.
Comment by Anonymous Friday, Feb 22, 19 @ 3:03 pm
Have never understand the concept of taxing businesses out of business.
Comment by Lowdrag Friday, Feb 22, 19 @ 3:07 pm
Cigarettes are the only bootleg product that is the same quality, because it is the same product. You are going out of state to get Marlboro‘s, not a knock off of Marlboro‘s. The more you increase the tax, the more you increase the incentive for bootlegging. Proponents don’t seem to see any contradiction in wanting to raise taxes to increase revenue, while also reducing consumption. Let’s just move things along, and raise taxes to five dollars per pack, and raise the minimum age to buy cigarettes to 30.
Comment by Langhorne Friday, Feb 22, 19 @ 3:51 pm
Fleischli taught religion classes many years ago so I guess we should trust him…
Comment by flea Friday, Feb 22, 19 @ 3:56 pm
Pretty soon everyone is going to be smoking weed anyway, and the tax rate won’t matter.
Comment by SAP Friday, Feb 22, 19 @ 4:05 pm
From what I can see, convenience stores are among the most profitable businesses going. Hardly think a cigarette tax is going to kill them.
Comment by Streator Curmudgeon Friday, Feb 22, 19 @ 4:25 pm