A new legislative effort in Illinois aims to give more cities the authority to tax all tobacco products, not just cigarettes. Currently, a state law prevents municipalities that had a unit tax on cigarettes before 1993 from adding taxes on other tobacco products such as vapes, smokeless tobacco, and cigars. These items have been categorized differently despite being derived from tobacco.
House Bill 5175 and Senate Bill 3630, supported by the Illinois State Medical Society (ISMS), propose allowing municipalities to impose taxes on other tobacco products in the same way they do with cigarettes. The proposed change seeks to equalize prices across all tobacco items, which research indicates can help reduce overall tobacco use.
“Research shows that increasing the price of commercial tobacco products, such as an excise tax (an indirect tax imposed on specific goods), is one of the most effective strategies to reduce tobacco use,” according to ISMS.
The revenue generated from these taxes would also be directed toward public health programs in Illinois.
For further information about this legislative initiative, ISMS advises contacting Erin O’Brien, Senior Vice President of State Legislative Affairs.
