Illinois residents crossing state lines for a pack of smokes

By Denise Zajkowski

Rising cigarette taxes in Illinois are pushing cigarette prices higher and local business profit margins lower.

Asif Quddus, owner of Hot Spot Food and Deli, 901 Lucinda Ave., said the rising price of cigarettes are decreasing his cigarette sales, forcing him to purchase fewer cigarettes to sell.

“It is unfair and the government should come up with other creative ideas that would use other industries,” Quddus said.

One student is more than a bit annoyed and thinks the extra expense might not be worth it.

“It has been costing me more, but if I don’t have the money to afford them, I might not buy them anymore,” said Sara Itzkowitz, a freshman English major.

Others, too beholden to nicotine, are crossing state borders in search of something cheaper.

According to the Federation of Tax Administrators, a 20-pack of cigarettes in Illinois has a tax of 98 cents while a 25-pack’s tax is $1.23 cents.

Illinois has the 19th highest tax in the country – Rhode Island has the highest at $2.46. New Jersey and Michigan follow, with $2.40 pack and $2.00 per pack, respectively.

According to state excise tax rates on cigarettes, Illinois is one of the three states that can impose an additional tax on a pack of cigarettes varying from 10 cents to 15 cents in each county or city.

The National Taxpayers United of Illinois has suggestions to stop cigarette consumers from fleeing across state lines to buy cigarettes.

“This can be stopped by cutting cigarette taxes in Illinois below what they are in adjacent states,” said Jim Tobin, president of National Taxpayers United of Illinois.

Tobin believes politicians are at the root of the issue.

“We have to make sure we get rid of tax raisers in Springfield and become familiar with our senators and representatives,” Tobin said.

There are currently 142 cigarette distributors and manufacturers licensed to do business in Illinois, some of which are out-of-state.

According to the Illinois Department of Revenue, these distributors prepay the tax by purchasing stamps that are put on each cigarette package. Then the distributor collects the tax from retailers at or before the time of sale.