GOPRIDE.COM

$1 cigarette tax hike advances in Senate

Tue. March 31, 2009

Springfield - The state's cigarette tax would leap by $1 over two years under a proposal a Senate committee approved today while hoping to come up with more money to pay down the state's big backlog of Medicaid bills.

The legislation would increase the state's 98-cent tax on a pack of cigarettes by 50 cents this year and another 50 cents next year. Lawmakers are looking at an Illlinois increase as the new federal 62-cent hike is set to take effect Wednesday.



The Illinois proposal, sponsored by Sen. Jeff Schoenberg (D-Evanston), is aimed at taking advantage of a temporary boost in the amount of matching funds the federal government will give states through the stimulus package. Schoenberg estimated the legislation could generate $1 billion over two years.

The Democrat-controlled Senate Executive Committee advanced the state tax increase on a party-line 7-5 vote and it now goes to the full Senate.



New Gov. Pat Quinn proposed a $1 state cigarette tax increase as part of his own budget proposal this month, but a spokesman had no immediate comment on the Senate version.

Written by: Ashley Rueff

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