Ill. Gov’s Proposed Hike in Bev/Al Taxes Seen Lifting Cross-Border Sales

Financially troubled Illinois will face even more problems if Illinois Gov. JB Pritzker’s proposed boost in alcohol beverage taxes becomes law, warns Lisa Hawkins, senior vp-public affairs, at the Distilled Spirits Council.

Pritzker wants to raise the per-gallon tax on beer and cider to 27.7 centers, wine to $2.05 and distilled spirits to $12.60 – the third highest levy in the nation.

The governor estimates the higher tax would bring in $120 million a year and result in about 540,000 jobs.

But Hawkins says “Illinois’ exorbitant tax on distilled spirits is already creating a serious cross border sales problem.  Raising the tax even higher will only exacerbate the problem and drive more Illinois consumers to surrounding states to make their spirits purchases.  Our economic analysis shows Illinois package stores and restaurants are projected to lose over $240 million in sales as a result, causing nearly 3,900 workers to lose their jobs.”

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