SPRINGFIELD - Lawmakers set up what could be a final vote before Illinois taxes on cigarettes are raised by $1 per pack.
A House committee voted 4-3 Wednesday to approve legislation that would raise the tax by 50 cents in September and 50 cents more a year later. All Democrats on the panel voted for the increase, and all Republicans voted against.
Now, the tax increase measure moves to the full House floor for a final vote. The Senate already signed off, and Gov. Pat Quinn would be expected to sign off on the measure because he's depending on the money it generates for his budget plan.
The increase could come months after the federal government increased its share of cigarette taxes by 62 cents.
At Wednesday's hearing, supporters said the tax increase wouldn't only bring in money but also would deter people from smoking.
And with lawmakers facing a bevy of proposals to raise other taxes and fees this year, American Lung Association of Illinois Public Policy Director Kathy Drea said raising the price of cigarettes would be the least damaging.
"This is the most politically popular tax," Drea said.
Opponents say, however, that people quitting smoking might mean the state could take in even less money, despite the tax increase.
The state's share of cigarette taxes was last raised in 2002. But the state's take cigarette taxes has declined from $742 million in the 2005 fiscal year to $594.2 million last year.
Plus, opponents say, people living within a reasonable drive of neighboring states could take their cigarette business and tax dollars elsewhere if Illinois taxes go up.
Bill Fleischli, executive vice president of Illinois Association of Petroleum Marketers and Illinois Association of Convenience Stores, argued his clients would get hurt if people smuggle more cigarettes for sale in Illinois if prices here go up.
"And you can be sure these people selling these cigarettes don't check IDs," Fleischli said.
The legislation is Senate Bill 44.
Posted in Local on Wednesday, April 29, 2009 11:50 am | Tags: Cigarette Tax, Pat Quinn
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