City Council Passes Ordinance to Combat Illegal Tobacco Sales

From: City of Chicago

Latest Move to Prevent Youth Smoking Will Double Fines for Illegal Cigarette Sales

FOR IMMEDIATE RELEASE

CONTACT: Mayor’s Press Office

Department of Business Affairs and Consumer Protection (BACP)

Mayor Rahm Emanuel today announced the city of Chicago is taking action to keep tobacco out of the hands of youth and encourage residents to live smoke free. An ordinance passed by the City Council today cracks down on the illegal sale of cigarettes across Chicago by doubling fines for retailers who sell illegal cigarettes.

“Keeping illegal cigarettes off of our streets and out of the hands of our youth helps them live longer, healthier lives,” Mayor Emanuel said. “This ordinance is the latest step in our comprehensive effort to reduce smoking among Chicago’s youth.”

The new ordinance increases fines on retailers who sell illegal cigarettes from $1,000 to $2,000 for the first offense when fewer than 40 unstamped tobacco packs are found. When more than 40 unstamped packs are found the fine increases to $50 per pack. Fines are raised from $2,000 to $4,000 for any subsequent violations. Repeat offenders also face revocation of their tobacco license and a one-year tobacco sales ban on the location and business owner.

The new ordinance follows a recently-enacted state law that was pushed by the city to make clear that all state and local tax stamps are required before the sale of cigarettes. Prior to this legislation, possession of more than 250 packs of contraband cigarettes was not considered a class 4 felony if the Illinois State tax stamp was affixed.

By strengthening the statute, tobacco retailers can no longer avoid criminal prosecution by only purchasing the state stamp but not the city/county stamp. Since the beginning of the year, city inspectors have conducted six confiscations where more than 250 packs of cigarettes didn’t have the required stamps for a total of approximately $33,000 in fines.

Under Mayor Emanuel, Chicago has become a national leader in tobacco cessation by launching an innovative array of programs, laws and tax policies. Chicago has the highest cigarette tax in the country at $7.17 per pack, imposed new e-cigarette tax which serving as a strong disincentive for youth to start smoking. In addition to revenue on fines introduced today, the city expects to collect $21.6 million in cigarette tax in 2016.

“We were seeing a pattern where cigarettes had the state tax stamp, but not the city or county stamp, so business owners were skirting felony charges,” BACP Commissioner Maria Guerra Lapacek. “This tough ordinance is designed to deter this act because even one violation is one too many. Doubling the fines for tobacco violators continues to send a strong message to irresponsible retailers who are bent to on breaking the law.”

Under Mayor Emanuel, Chicago has become a national leader in tobacco cessation. Since the Mayor first took office, youth smoking has decreased to an all-time low. According to the CDC’s most recent numbers, 10.7 percent of Chicago high school students have reported smoking, down from 13.6 percent in 2011 and 24.6 percent in 2001.

Last month the City Council passed a tax on e-cigarette liquid, making Chicago the first big city in the nation to take that action, which followed a previous move to include ecigarettes under the Clean Indoor Air Ordinance. The city has banned flavored tobacco products, including menthol, from being sold within 500 feet of schools, and implemented a smoke-free policy for all city parks and harbors.

BACP licenses the sale of tobacco products in Chicago. To report the sale of unstamped cigarettes, call 311.

 

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