Anti-smoking advocates say $1 more for cigarettes will make state money

SPRINGFIELD — An American Lung Association report released Monday makes a case for a $1-per-pack increase in Illinois cigarette taxes.

The association's report, conducted by the University of Illinois at Chicago, says that tacking an extra $1 onto every pack of cigarettes could make $377 million a year for the state.

“State cigarette and other tobacco tax revenues are among the most predictable, steady and reliable revenues that states receive,” the report says.

An increase in cigarette taxes is one of a myriad of cash-generating options lawmakers could consider in Springfield in the coming days.

But, the Lung Association report does acknowledge that revenue from cigarette taxes in general has been declining as more and more people have quit smoking in recent years.

When Illinois last raised cigarette taxes in 2002, state revenue from smokers shot up. But once it peaked, the revenue has gradually declined in recent years. The study suggests that the decline in cigarette tax revenue is offset by reduced health care costs.

Raising cigarette taxes faces heavy opposition, though, from lawmakers who represent border areas in Illinois. They argue that people facing higher taxes on their smokes would leave Illinois and buy cigarettes in bordering states.

And Bill Fleischli, executive vice president of The Illinois Petroleum Marketers Association, said a tax increase would unfairly target the segment of the population that smokes, as well as hurt retailers.

“We're already crippled by these skyrocketing gas prices,” Fleischli said.

The current state share of cigarette taxes is 98 cents per pack, so the plan lawmakers are considering would more than double it to $1.98 per pack.

Gov. Pat Quinn backs the tax hike, and the Illinois Senate has already approved it. But the Illinois House has declined so far. It's unclear whether it'll come to a vote before lawmakers' terms end next week.