(The Center Square) – A state lawmaker is proposing a tax cap on cigars sold in Illinois.
State Rep. Jonathon Carroll’s bill would place a 50 cent cap per cigar in place of the current 36% tax. The rate doubled from 18% in 2012.
“This bill corrects something in the taxation system that really hurts some of our local merchants,” Carroll said. “People have more of an incentive to order cigars from out of state than buying them in Illinois.”
Mike Gold with the Arango Cigar Company in Northbrook said when he started in the business in 1981, online sales amounted to about 25% of cigar sales in the country. He said with the current taxes in place, that number has now grown to about 65% of all sales.