Smokers may have to cough up more money for habit
August 2, 2007
By JOHN ROSZKOWSKI Staff Writer
Local smokers, already reeling over a newly enacted statewide smoking ban scheduled to take effect Jan. 1, could take another hit.
State lawmakers are considering a proposed 90-cent-per-pack tax on cigarettes to fund health care, roads and school construction projects.
The bill, which is being sponsored by State Sen. John Cullerton, D-6th, of Chicago, in the Senate, also would give non-home rule counties like Lake and McHenry the authority to enact up to a $2 per pack local cigarette tax if they so choose. Currently, only Cook County has the authority to enact a cigarette tax and imposes the full $2 per pack.
The proposal passed a Senate committee last week and is awaiting action by the full Senate.
Cullerton said most of the money generated from the proposed cigarette tax would be used for road and school construction projects. A portion of the revenue also would be used to help the state pay off a backlog of unpaid Medicaid bills.
Cullerton calls the proposed legislation "a win-win situation," saying the tax will not only provide needed revenue to the state but also may discourage youth from starting smoking or encourage more adults to quit. Even if the revenue projections fall somewhat short of expectations because some smokers quit, he said the state would still benefit because of reduced health care costs and fewer smoking-related illnesses.
"If fewer people smoke cigarettes, you win either way," he said.
However, many smokers are outraged by what they feel is an unfair tax.
"It's a regressive tax. It's just awful," said Lake Bluff resident Garnet Dawn Scheuer, founder and president of Illinois Smokers Rights, and Midwest regional director of Smoker's Club, Inc.
"I do feel we're being persecuted, we're being singled out, we're being treated as pariahs," she said. "We have a state ban and now they're talking about having this tax, too?"
Local tobacco retailers say the proposed cigarette tax could force them out of business.
"It's outrageous. It's going to kill retail business, especially small tobacco outlets like ours," said Gary Shah, owner of Vernon Tobacco in Vernon Hills.
Shah said many smokers will try to avoid paying the tax by going to neighboring states like Indiana and Wisconsin where cigarette taxes are lower. He said they also will buy cheaper brands of cigarettes that are made out of the country or purchase cigarettes over the Internet instead of buying from local retailers.
Ken Neumann, owner of Cigars & More in Libertyville, said he's not only concerned about the proposed state cigarette tax, but also about a proposed federal excise tax on cigars and other tobacco products.
"It's a big, big deal. It could drive a lot of people out of business," he said.
State Rep. JoAnn Osmond, R-61st, of Antioch, said she opposes an increase in the state's cigarette tax. She believes an increased cigarette tax will cause many Lake County to lose tax revenue because smokers will drive across the state line to Wisconsin to buy cigarettes.
"Once again, we're sending business out of state," she said.
Cullerton's legislation also would the allow the county board of any county in the state to pass an ordinance to impose a cigarette tax of up to $2 per pack for the purpose of public health and safety.
Lake County officials say they have not yet discussed a local cigarette tax, but do support legislation that gives them the option to impose such a tax should they choose.
"We've always supported legislation that gives the counties the authority (to impose a cigarette tax) and then it will be up to the board to decide whether it makes sense for our particular county," said County Administrator Barry Burton. "We're not currently looking at that as a revenue source. We just think the board should have it as an option."
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Retailers afraid smokers will buy out of state
90-cent-per-pack tax hike could drive down cigarette sales
July 31, 2007
BY KAREN McDONALD, OF THE JOURNAL STAR
PEORIA - If a proposed hike in the cigarette sales tax is approved, area retailers say it will hurt their bottom line by driving smokers out of state in search of lower prices.
An Illinois Senate committee voted last week to raise the state cigarette tax by 90 cents per pack, as opposed to the originally proposed increase of 75 cents a pack. If the bill is passed in both chambers, the total state tax would jump to $1.88 per pack.
"I think they need to find a better way to tax the total population, not just the people who choose to smoke. We all use the roads, not just the smokers," said Tim Rohlf of East Peoria, who owns three Smoker's Outlet stores in Peoria. "
Smokers see the potential hit as a double whammy, given a recently approved statewide indoor smoking ban slated to go into effect Jan. 1.
"(Lawmakers) know consumption is going to go down because they decided to ban all smoking in restaurants and bars and now they're going to raise the tax to make up for that loss? The biggest crime is they're overtaxing 25 percent of the population unfairly. I just think it's all wrong. I think it's crazy. Enough is enough," Rohlf said.
The $50 million a year generated by the additional 15-cent tax increase would be used to reduce the state's backlog of Medicaid bills. The original tax increase could generate about $328 million that could be used to finance bonds for state construction projects, including roads and schools, bill sponsor Sen. John Cullerton, D-Chicago, said using numbers provided by an anti-tobacco group.
Smoker Kim Warner of Peoria said she doesn't think a price hike will prompt others to kick the habit. "I don't think it's necessarily that unfair. You choose to smoke. It's kind of like gas - what are you going to do?"
Shaher Mizyed, manager of the Peoria Petro station, said he expects cigarette sales to drop 20 percent to 30 percent and to lose customers to those who travel across state lines for cheaper smokes. Cigarette sales comprise about 40 percent of his inside sales, he said.
"Before with the tax increase, everybody was going to Iowa and Indiana to buy cigarettes. It took about two years to reach previous revenues. I imagine the same will happen now, but with that large of an increase, it might take longer to recoup it," Mizyed said.
Garnet Dawn Scheuer, with Illinois Smokers Rights, called the proposal a "hideous, horrible and discriminatory act." She said it targets the poorest people without access to buy cigarettes elsewhere and could increase the sale of cigarettes on the black market.
"Every time a tax like this comes in, fewer smokers are buying cigarettes in Illinois. They're finding alternative methods. The tax base reduces every time," Scheuer said, adding revenue from cigarette taxes continues to decrease.
A cigarette tax increase of 40 cents was imposed in 2002, bumping the total state tax to the 98 cents it is today.
Illinois now ranks 27th among the 50 states in cigarette taxes, though a 90-cent bump would push Illinois into the top 10.
Peorian Nicole Smith said the price of cigarettes won't push her to snuff the habit.
"I don't think price will determine if I quit or not. I'll quit if I want to, not because of the price," Smith said.
Karen McDonald can be reached at 686-3285 or
kmcdonald@pjstar.com.
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Lawmakers should butt out of plan to hike smoking tax
July 29, 2007
The issue: Proposal in Legislature would increase state tax on cigarettes from 98 cents a pack to $1.73 a pack.
We say: In the wake of banning smoking in public places in Illinois and with fewer people smoking than ever before, a tax increase would not provide a reliable source of revenue.
Where there's smoke, there's a tax. So it goes in many places, including Illinois. Cigarette smokers in our state already pay 98 cents a pack in state tax. Now a bill under consideration in the state Senate would increase that by 75 cents to $1.73 a pack.
That cough you hear isn't from inhaling too much smoke. It's us gagging at the absurdity of this legislation.
Yes, we are aware of the evils of smoking. We hope anyone who lights up is aware of them as well. But this isn't a lecture on cigarettes and your health. It's a lecture on lawmakers proposing a dubious idea to raise revenue.
Sponsors of the legislation say the state can generate $328 million in additional revenue by increasing the tax. The money, the sponsors believe, could be used to pay off bonds issued to finance capital projects such as school and road construction.
Hey, we're all for better schools and roads, but in our opinion, this is not a reliable way to raise revenue for such projects.
Anyone who's read the papers or watched TV in the past few days knows that Gov. Rod Blagojevich just signed into law legislation that bans smoking in most public places in Illinois. The law is said to be the most stringent of its kind in the country.
So here we have the state on one hand restricting smoking to the point where there no doubt will be fewer cigarettes smoked and on the other hand believing it can cash in on smoking.
In our opinion, not only is the indoors smoking ban going to deter smoking, but so would the increase in the tax. A two-packs-a-day puffer will be paying an additional $10.50 each week. Those who need yet another reason to quit might find one in this tax increase.
A Gallup Poll this week provided more evidence that an increase in cigarette taxes might not be a very reliable source of income. The poll found that 21 percent of Americans smoke. That's the lowest level in the 63 years Gallup has been monitoring smoking habits (the high was 45 percent in the 1950s). What's more, those who do smoke are smoking less, and fewer people are starting to smoke when they are younger than 16, the poll found.
A combination of Illinois' legislative action and society's growing awareness of the dangers of smoking lead us to believe that relying on an increased cigarette tax as a fixed revenue source would not be a sound move by the Legislature.
Yes, lots of people still smoke and will continue to do so. But rather than try to soak these individuals in hopes of grabbing some fast cash, the great minds in Springfield need to come up with revenue sources that are more reliable and fair to all. Unfortunately, a look at the ongoing budget mess doesn't leave one optimistic that any equitable revenue solution will ever be found. That's where leadership and compromise -- components absent during this legislative session -- could help. In the meantime, though, the increased cigarette tax should be snuffed out.
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Smokers: Only buying habits change
As word of a proposed increase in the state's cigarette tax filtered into Lake County Wednesday, angry smokers and business owners denounced the Illinois Senate's plan -- but noted the increase likely won't stop many smokers.
"I'm speechless about it," said Garnet Dawn Scheuer, founder and president of Illinois Smoker's Rights and the Midwest regional director of Smoker's Club Inc. "It's the '60s all over again, except we're not black, we're smokers."
Business owners said they were enraged by what they saw as an effort to disable the tobacco industry.
"It will put the whole tobacco industry out of business," said Paul Solsberger, the owner of Aromas Cigars in Gurnee and a pipe and cigar smoker himself.
He said the state could be destroying an industry that brings in huge amounts of tax money.
"It's like cutting a nose off to spite a face," Solsberger said. "I do not like the fact that the government is singling out some people."
And lawmakers' logic that higher taxes would cause more smokers to quit doesn't ring true for Shahid Ladiwala, a manager at Grayslake Tobacco.
"People are avoiding buying cigarettes (in Illinois)," he said, noting smokers can easily cross state lines and pay less for their cigarettes. "A lot of people are ordering from online."
And many smokers agreed that the tax may change their buying but not their smoking habits.
Patrick McNichols, a smoker who manages a White Hen Pantry in Arlington Heights, noted a carton of Marlboros at the store costs $62, while the same carton can be purchased at a Lake Zurich White Hen Pantry for $36 a carton.
McNichols, of Rolling Meadows, said he makes the trip north to Lake County to buy his cigarettes.
"It's just more (nonsense) from those guys in Springfield," McNichols said.
Candido Hernandez, of Elgin, agreed.
"To tax just a few people for something that will benefit many people, that's just not right," Hernandez said. "Politicians know that if they come up with an idea where everybody has to pay more, they're not going to get votes."
But not everyone was angry. For one, Maggie Ng, owner of By Design in downtown Glen Ellyn thinks the new tax increase is great.
"I like smoking, but I'm all for being healthy, too," she said. "Anything that helps you think of quitting is good."
Fasih Ahmad, owner of Lisle Tobacco Discount, said he understands the reasoning behind government's efforts related to smoking and smoking bans.
"Whatever they're doing, they're doing for our benefit," he said.
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More: State committee approves 75-cent cigarette tax increase
Well, first thing, I think we have a bit of a typo in the news sub-headline. I think it was supposed to read "Senate Democrats Hope $ .75 Cent Increase Will Help Resolve Budget Battle".
Secondly, this tax increase bill has taken only 24 hours to show it's true colors and why the big rush to drop another bomb on smokers in IL. Our Assembly wants to be recessed to go out and play, and will do almost anything to get this budget crunch session over with. Notice how the "state health care" purpose has simply disappeared to make way for:
"We can use that money to fix our roads and bridges in Illinois," said Sen. John Cullerton (D-Chicago). "We can also find another benefit, because there's health care savings."
How much BS do they think tax payers will swallow? Nothing like a 180 degree flip-flop Sen. Cullerton! Aren't IL tollway fees, our many other taxes and DMV/licensing fees supposed to pay for repairs of our roads and bridges? Jul 26, 2007
(CBS) SPRINGFIELD, Ill. Just after a statewide indoor smoking ban was signed into law, state lawmakers are hoping a hike in the cigarette tax will help bring an end to the budget deadlock, which has reached a record 56 days.
As CBS 2's Mai Martinez reports, the Democratic majority in the state Revenue Committee approved a state tax hike on cigarettes in a 6-3 vote. If the bill becomes law, the state tax on a pack of cigarettes would jump by 75 cents, making the total state tax on a pack of cigarettes $1.73.
Many cities and counties – including Chicago and Cook County – also levy taxes on tobacco products.
Supporters say the state cigarette tax increase would generate about $328 million a year, which could be spent on roads, schools and other construction needs. They also say a tax increase might also discourage people from smoking.
"We can use that money to fix our roads and bridges in Illinois," said Sen. John Cullerton (D-Chicago). "We can also find another benefit, because there's health care savings."
But opponents say another tax increase on cigarettes ultimately could reduce state revenues.
"There's already a diminishing return, and at some point it's going to go negative," said Sen. Chris Lauzen (R-Aurora). "People will stop buying cigarettes."
Senate Democrats hope by tying the money raised to funding for construction of schools and other capital projects Republicans are seeking, they will be able to draw Republican support for the tax hike.
As it stands Thursday morning, the bill goes before the full Senate on a party line vote.
Also Wednesday, the Senate public health committee voted 7-4 to send to the Senate floor a scaled-back version of the Blagojevich health care plan, despite some strong Republican objections. No fan of the governor’s health care plan, House Speaker Mike Madigan predicted trouble for it in the Senate.
The state's temporary spending authority expires July 31. Then come the payless paydays for some state workers and likely layoffs for other public employees, including teachers and transit workers.
Earlier this week, Blagojevich signed into law a ban on smoking in all public buildings, including restaurants and bars. The law goes into effect on Jan. 1, 2008, replacing a patchwork of local ordinances.
Smoking will be allowed in private homes and cars, but that's about it for those looking to light up indoors. Smoking will be allowed outside, with some restrictions. There are two exceptions for businesses: retail tobacco shops and a limited number of hotel rooms.
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State cigarette tax may increase
Senate proposal would raise price of pack by 75 cents
July 26, 2007 By DOUG FINKE, OF GATEHOUSE NEWS SERVICE
SPRINGFIELD - Turning to an old standby, Democrats in the Illinois Senate on Wednesday floated a plan to nearly double the state's cigarette tax and use the money to pay for construction projects.
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With every new atrocity our elected officials introduce to persecute smokers, they awaken more of our non-smoking or on-the-fence residents and businesses to the obscene way smokers are being abused and financially mugged. I already had a phone call from one of the papers that has treated our pro choice position fairly in the past. I hope they continue to remain unbiased this time. Reporters have been calling me, but their editors must be over-ruling our positions.
Below is the most balanced account of what happened today (more accurately described as yet another Kangaroo Court scheme) in the IL Assembly that I could find. Our IL decision makers have already made up their minds, are going just through the motions and ramrodding this bill through.....
Yes, it's back to the Senate again, now....I'm sure that won't be a problem for our legislators. They should be able to pass this latest scheme into law by the week-end, at the rate they've been going. Voters have no say any more in this state. I couldn't even make myself read a few of the other biased news accounts about this tax in the Trib, etc.
This new proposed additional excise tax is total insanity! Smoking is becoming an excellent platform for us to direct our collective wills to retain personal choice. If any more of our current elected officials could read, maybe they'd remember that smoking rates actually went up in Germany, after WWII, when Hitler had also generally banned smoking. Welcome to another era of Al Capone and smoke easies! Maybe Chicago can earn back some national respect again that way.
I for one, will never buy retail cigarettes in Illinois! Time to start practicing with my cigarette stuffing machine again too......just in case the Feds are dumb enough to raise this entire country's excise tax too. These taxes seem to me to be the acts of desperate men, who realize their era is coming to an end. It's nothing but runaway greed.
I think/feel/believe that our entire country (especially our government) is living in debt and, federally maintaining a stable stock market economy since the Crash of '29 isn't going to be able to stabilize our national, state and local economies much longer.....
“When is enough, enough for cigarette smoking?” said Bill Fleischli, executive vice president of the Illinois Association of Convenience Stores.
