07 Jun IPCPR and Industry Partners Sue Chicago Over Illegal OTP Tax
Last week, the International Premium Cigar and Pipe Retailers Association, the National Association of Tobacco Outlets, Iwan Ries & Co., the Cigar Association of America, the Illinois Association of Wholesale Distributors, the Illinois Retail Merchants Association, and Arangold Corporation d/b/a Arango Cigar Co., filed a lawsuit against the City of Chicago in the Circuit Court of Cook County.
The other tobacco products (OTP) tax, adopted by the City Council in March, includes a tax of $0.20 per large cigar tax and $.60 per ounce tax on pipe tobacco. Set to take effect on July 1, 2016, the additional tax burden, on top of existing Cook County and State taxes, would be devastating to 22 IPCPR members’ businesses located in Chicago. The lawsuit’s claim is that Chicago is pre-empted by Illinois state law from adopting an OTP tax. As such, we are seeking a preliminary and permanent injunction against the enforcement of the OTP tax.
Please stay tuned for further updates on the status of this pending lawsuit.