Illinois Judge Strikes Down Chicago OTP Tax

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Chicago

Illinois Circuit Court Judge Ann Collins-Dole issued a ruling today that strikes down the tobacco products excise tax adopted by the Chicago City Council on March 16, 2016. The court found that Illinois Municipal Code Selection 6(a)(2) pre-empts a home rule municipality from imposing a tax on other tobacco products.

The lawsuit aimed at striking down the Chicago OTP tax rates was filed by the National Association of Tobacco Outlets (NATO), the Cigar Association of America (CAA), the International Premium Cigar & Pipe Retailers Association (IPCPR), Arangold Corporation d/b/a Arango Cigar Company, and retailer Iwan Ries & Co.