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Chicago Cigarette Tax Increase


 Chicago to increase cigarette tax on January 10, 2014.

Smoking in Chicago, Illinois, is about to get a bit more expensive. The City of Chicago has announced that the cigarette tax will increase from $0.034 to $0.059 per cigarette, effective January 10, 2014.

According to the City of Chicago, “The burden of this tax and specifically this tax increase is to be borne by the consumer of the cigarettes for all cigarettes purchased or consumed within the City of Chicago….”

The city is requesting that all cigarette wholesalers and retailers on January 9, 2014, at the close of business, “make a physical inventory” of all cigarette stamps, “which are either affixed to unsold cigarette packages or have yet to be affixed to cigarette packages, and for which the former cigarette tax rate was paid…. They must then remit a payment, which equals the amount of the increased tax rate to the Chicago Department of Finance.” The cost of those tax payments should be recovered by sales made on and after January 10, 2014.

Additional information is available on the City of Chicago Notice of Cigarette Tax Increase.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.