As reported in the NATO News bulletin earlier this week, the Chicago City Council voted 35-10 to adopt a local tobacco ordinance.  At that time, there were two versions of the ordinance NATO has now obtained the final version that was adopted.

The ordinance assess new taxes on tobacco products at the following rates:

Roll Your Own Tobacco:    $1.80 per ounce
Smokeless Tobacco:        $1.80 per ounce
Pipe Tobacco:                $.60 per ounce
Little Cigars:                $.20 per cigar
Large Cigars:                $.20 per cigar

The ordinance mandates that the following minimum tobacco product package sizes and minimum retail prices (including all applicable taxes) take effect only if the new tobacco product excise taxes are invalidated by a court due to a lawsuit against the City of Chicago or legislation repeals the excise taxes:

Roll Your Own Tobacco:    $11.29 per ounce
Smokeless Tobacco:        $  4.94 per ounce
Pipe Tobacco:                $  4.56 per ounce
Little Cigars:                $11.50 per package, minimum package no less than 10 little cigars
Large Cigars:                $  1.36 per cigar
Cigarettes:                $11.50 per package

The ordinance also prohibits the sale or furnishing of tobacco products to anyone under the age of 21, allows anyone 18 years old or older to sell tobacco products and tobacco accessories on behalf of a retailer or tobacco wholesaler, deletes that provision of the Chicago code that makes it illegal for anyone under the age of 18 to possess tobacco products or tobacco product samples, deletes that provision of the Chicago code that fines a minor who possesses tobacco products, bans the redemption or acceptance of tobacco product coupons, and prohibits the sale of a tobacco product through any multi-package discount (e.g., buy two, get one free).

The ordinance also increases fines on retailers that violate the ordinance and adopts new license suspension and revocation penalties.

The new tobacco product excise tax rates, the age 21 minimum age, and the new higher fines go into effect on July 1, 2016, but the new tax rates do not apply to tobacco products that are in the possession of a retailer as of July 1, 2016.  The coupon ban and multi-package promotional pricing restrictions go into effect 180 days after the passage and publication of the ordinance.  A copy of the final ordinance adopted by the City of Chicago accompanies this news bulletin.