IL State Senate wants $1 cigarette tax increase as federal hike set to take effect

[The Straight Story]

State Senate wants $1 cigarette tax increase as federal hike set to take effect

Posted by Ashley Rueff at 12:30 p.m.; updated at 1:48 p.m.

SPRINGFIELD---The state's cigarette tax would leap by $1 over two years under a proposal a Senate committee approved today 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.

http://newsblogs.chicagotribune.com/clout_st/2009/03/state-senate-wants-1-cigarette-tax-increase-as-federal-hike-set-to-take-effect.html