The Illinois Senate this afternoon narrowly passed a bill 31-27 to raise the cigarette tax a dollar a pack – sending it to Gov. Pat Quinn who will enthusiastically sign the measure. The bill impacts smokers, who now must pay $1.98 in taxes per pack.
It is also intended to greatly impact state Medicaid payments – the levy is supposed to generate $700 million a year, which includes $350 million in federal matching funds. Also, included in the bill is $100 million in anticipated revenue from hospital assessments. Read more »