Chicago, IL Proposes Cigar Tax

We have seen states impose cigar taxes, counties impose cigar taxes and now Chicago wants to impose its own cigar tax under a plan from Mayor Rahm Emanuel. According to a published report from the Chicago Sun Times a $6 million dollar proposal for an orientation program for incoming high school students would be paid for by increasing the tobacco tax which would include a 90 cent tax on full-sized cigars.

Since taking office in 2011, the Mayor of Chicago hasn’t been a friend of the tobacco community. Under his tenure he has passed smoking bans, limiting where and how tobacco can be displayed and raising taxes. His 2016 budget includes a tax on e-cigaretes and smokeless tobacco.

If the measure is passed cigars would become triple-taxed in Chicago. Those taxes include a 36% state tax on the wholesale price,  Cook County in which Chicago sits has a 30 cent tax and the city tax of 90 cents.

All of this translates to a cigar with an MSRP of $10.00 that currently sells in Chicago for $12.10 would go up to $13.00.

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