Vaping Tax Bills to Double in Chicago: Mayor

Sept. 18, 2018, 3:52 PM UTC

Chicago Mayor Rahm Emanuel (D) announced plans to more than double the city’s tax on the latest craze in nicotine delivery: vaping.

Emanuel took a swing Sept. 17 at big tobacco’s “deceitful” marketing campaigns aimed at teenagers and called on the Chicago City Council to support his proposed tax increase on e-cigarettes and other vaping devices. Emanuel also forwarded a proposal designed to keep e-cigarettes, liquid nicotine, and vaping accessories beyond the reach of youngsters.

“I am proud to stand with Chicagoans as we say no to big tobacco, no to deceitful marketing that hook our youth and no to jazzed-up versions of the same old nicotine products that harm us,” Emanuel said in a statement. “With these new measures, we will build on our historic lows in youth smoking and support the health of the next generation.”

Emanuel’s proposed ordinance would boost taxes on liquid nicotine and extend the tax to e-cigarette devices packaged with liquid nicotine. Chicago currently imposes a tax of 80 cents per device or container and 55 cents per milliliter of liquid nicotine. The proposed ordinance would impose a tax of $1.50 per device or container and $1.20 per mL of liquid nicotine.

Chicago’s current tax collects $722,000 annually. Revenue raised under the program is used to fund school-based health services.

Restrictions on Retailers

Emanuel also proposed an ordinance that would force retailers to display all tobacco products, including e-cigarettes and vaping accessories, behind the sales counter. Emanuel said the city hopes to reduce the accessibility and visibility of nicotine products during shopping experiences.

Both the tax and the retail display proposals require approval from the City Council.

The vaping tax strategy goes back to 2011, when Chicago became the first large city to impose a tax on e-cigarettes. Together with state and county taxes on such products, the Emanuel administration said Chicago has the “highest combined cigarette tax in the nation—which has proven to reduce smoking rates.”

Joel Africk, president of the Respiratory Health Association, gives Chicago high marks for enacting practical strategies that discourage smoking.

“E-cigarettes, which contain nicotine, are addictive and pose a clear and present danger to our youth,” Africk said. “Raising the tax on e-cigarettes is a proven strategy for discouraging youth from using these products, and it will bring us one step closer to a smoke-free generation.”

To contact the reporter on this story: Michael J. Bologna in Chicago at mbologna@bloomberglaw.com
To contact the editor responsible for this story: Ryan C. Tuck at rtuck@bloombergtax.com

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