Quincy, IL News - Journal930.com
Quincy, IL News - Journal930.com
Sunday, Nov 29, 2015

Illinois Cigarette Tax increase becomes a fiscal flop

2 years, 3 months ago From heartland.org

Cigarette tax revenue in Illinois is falling far short of the amount projected last year, state officials say

From From heartland.org:

In May of 2012, state legislators approved a $1-per-pack increase on the price of cigarettes, nearly doubling the state’s tax rate to $1.98 per pack, the 17th-highest state tax rate in the nation. However, the tax delivered only $212 million of the expected $350 million for the fiscal year ended June 30.

Governor Pat Quinn (D) said the cigarette tax increase would help sustain the state’s Medicaid program, as well as the School Infrastructure Fund, while also discouraging smoking. But The Heartland Institute, Illinois Policy Institute and other public policy groups predicted the state would fail to receive the projected increase in tax revenue. They noted the likelihood that consumers would try to avoid the tax by buying cigarettes out of state, where taxes are lower.

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