State and Local Strategies of the Tobacco Industry
Illinois Tax Increase
Abstract
Memo announcing a tax increase in Illinois. Notes that "cigarettes distributed to Chicago now carry the highest cigarette tax in the country." Explains that "we are currently exploring the effect of the increase on the price of Players Lights 25's in Chicago." Remarks that "a price adjustment will be necessary." Includes illegible handwritten note.
Fields
- Author
- Brockenbrough, J
- Copied
- Weinstein, B
- Alter, S
- Atlas, R
- Breedlove, D
- Bruno, D
- Campbell, W
- Gillis, J
- Glennie, L
- Long, H
- McQuigg, E
- Merlo, Ellen (PM Corp. Affairs VP)Marketing Services prior to 1986. Understood use of nicotine addiction in selling PM products.
- Mikulay, R
- Murphy, M
- Nelson, D
- Pearce, W
- Riegel, D
- Sledge, G
- Smith, D
- Spector, J
- Region
- Illnois
- Recipient
- Buccellato, V
Document Images
PHILIP MORRIS, U.S.A. INTEROFFICE CORRESPONDENCE
120 PARK AVENUE, NEW YORK, N.Y. 10017
TO: Mr. V. J. Buccellato DATE: November 18, 1985
FROM: J. Mercer Brockenbrough
SUBJECT: Illinois Tax Increase
Effective December 1, 1985 the Illinois cigarette tax will
increase 8~ from 12~ to 20~ (20 cigarette rate). This increase
will occur regardless of any Federal action. In addition, the
sales tax base will now include state and local cigarette taxes
(prior to this law it was applied to the price of the merchandise
excluding the cigarette taxes). No provision has been made for
floor stocks tax.
As you know, cigarettes distributed in Chicago now carry the
highest cigarette tax in the country. This increase brings the
total of Chicago's state and local cigarette taxes to 43~ per
pack of 20 cigarettes (20~ - state, 8~ - Cook County, 15~ -
Chicago).
We are currently exploring the effect of this increase on the
price of Players Lights 25's in Chicago. It appears that a price
adjustment will be necessary.
ne
cc:
S.
Alter
R.
D.
D.
W.
J.
L.
H.
E.
E.
R.
M.
D.
W.
D.
G.
J.
D.
B. Atlas
Breedlove
Bruno
Campbell
Gillis
Glennie
Long
McQuigg
Merlo
Mikulay
Murphy
Nelson
Pearce
Riegel
Sledge
Spector
Smith
Weinstein
