Appellate court sides with Chicago on tobacco tax ordinance
CHICAGO – A state appeals court has upheld a Chicago ordinance that will raise the prices of cigars, self-rolled tobacco and chewing tobacco.
The Chicago Tribune reports the Illinois Appellate Court recently overruled a Cook County court ruling in a lawsuit brought by a tobacco retailers group arguing that the city was prohibited from new types of tobacco taxes because it previously only taxed cigarettes.
But Chicago’s law department says the appellate court sided with Mayor Rahm Emanuel’s administration’s argument that taxes on tobacco products besides cigarettes aren’t considered separate new taxes.
The city plans on imposing the tax as soon as retailers are informed about their responsibilities to collect it and send proceeds to the city. City officials estimate the tax would bring in $6 million a year.