The Illinois Supreme Court Strikes Down Chicago OTP Tax

Today the Illinois Supreme Court issued a decision declaring the City of Chicago’s attempts to levy a municipal excise tax on cigars and pipe tobacco preempted and therefore invalid.  CAA and other industry members challenged Chicago’s imposition of a municipal excise tax on OTP in 2016.  Industry argued that Chicago was preempted by Illinois state law from having the power to assess such a tax on OTP.   The Cook County Circuit Court found in favor of the industry, and Chicago appealed.   The Appellate Court ruled in favor of the City.   CAA and others appealed that ruling to the Illinois Supreme Court- and today were rewarded for that effort.  Today’s decision means that without a change to state law, the City of Chicago cannot assess a municipal excise tax on tobacco products other than cigarettes.

CAA continues to fight for the interests of the cigar industry both in Washington and throughout the country, and today is another example of the hard work and dedication of our members resulting in benefits for the whole industry.  A copy of the decision can be found below.

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