Chicago Cigar Tax Hike Proposed

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Mayor Rahm Emmanuel wants a new orientation program from incoming high schoolers in the city of Chicago and he might just use cigars to help pay for it.

Emmanuel has proposed a new one-week transition program for all incoming high school freshman and a two-week program for eighth grade dropouts, all of which will come to a total cost of $6 million. How does one pay for such a thing: tobacco taxes.

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Under Emmanuel’s plan a 90 cent per cigar tax would be issued on all large cigars. This is in addition to a state tax of 36 percent tax on the wholesale level and a 30 cent per cigar tax imposed by Cook County.

At the moment, a cigar with a suggested retail price of $10.50 likely retails for around $14.88 in Chicago. If Emmanuel’s tax goes through, it could raise the price to $16.68 based on halfwheel estimates.

In addition, small cigars would receive an additional 15 cent per cigar tax, a $6.60 per ounce tax on roll-your-own tobacco and $1.80 per ounce tax on smokeless tobacco.

Not included is an increase on taxes for cigarettes.

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Charlie Minato
About the author

I am an editor and co-founder of halfwheel.com/Rueda Media, LLC. I previously co-founded and published TheCigarFeed, one of the two predecessors of halfwheel. I handle the editing of our written content, the majority of the technical aspects of the site and work with the rest of our staff on content management, business development and more. I’ve lived in most corners of the country and now entering my second stint in Dallas, Texas. I enjoy boxing, headphones, the Le Mans 24-hour, wearing sweatshirts year-round and gyros. echte liebe.

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