A bill in the Illinois House of Representatives could provide a huge break for cigar smokers in the state. Rep. Brad E. Halbrook, R-Charleston, is sponsoring H.B. 5550, a bill that would establish a 50 cent cap on all state-imposed cigar taxes.
Currently, cigars are taxed at 36 percent of their wholesale price without a cap. The new changes mean that any cigar with a MSRP under $3 will see their final prices decreases as the 50 cent cap will take effect.
A cigar with a MSRP of $7 will sell for $9.52 in Illinois due to state taxes, if H.B. 5550 passes, the cigar would likely retail for $8.
One thing the new law will not do is affect local taxes. This means laws like Cook County’s additional 30 cents per cigar tax will remain in effect.
There are no co-sponsors listed for H.B. 5550, the bill has been referred to the Rules Committee.