Record #: R2018-502   
Type: Resolution Status: Failed to Pass
Intro date: 5/25/2018 Current Controlling Legislative Body: Committee on Finance
Final action:
Title: Call for City Comptroller, Budget Director and Commissioner of Department of Business Affairs and Consumer Protection to present information regarding liquid nicotine product tax revenues, collection efforts, wholesaler registration and comparison to revenue from non-electronic or liquid tobacco products and use among younger users
Sponsors: Burke, Edward M.
Topic: TAXES/TAX LEVIES - Miscellaneous
Attachments: 1. R2018-502.pdf
Related files: R2019-362

RESOLUTION

WHEREAS, as electronic cigarette ("e-cigarette") use gained popularity, the City of Chicago incorporated "'liquid nicotine products" into its taxation framework in 2015 by establishing the Liquid Nicotine Tax Ordinance ("the tax"); and

 

WHEREAS, e-cigarette use has only continued to grow, and its increasing appeal to younger users and those who are not attempting to cease smoking has captured the attention of health and policy advocates; and

 

WHEREAS, specifically, in the United States, youth are more likely to use e-cigarettes than adults and a U.S. Surgeon General 2016 report cited a 900% increase in e-cigarette use by high school students from 2011 to 2015; and

 

WHEREAS, the City of Chicago has endeavored to remain at the forefront of the fight against the harmful effects of smoking in all forms, leading the charge to prohibit indoor smoking and to prohibit tobacco product sales to those under age 21; and

 

WHEREAS, the tax similarly signaled the City's commitment to regulate and track sales of those products and to ensure that these are sold to the intended user—an adult with full awareness of the product's detrimental effects; and

 

WHEREAS, the City's Department of Public Health has also undertaken efforts to identify and address the public health concerns that the emerging stronghold of e-cigarette use presents; and

 

WHEREAS, with two full years of the tax being implemented, it is time to assess the scope and breadth of use through quantifiable measures such as the number of registered wholesalers, and the rates and total collected tax amounts; and

 

WHEREAS, moreover, it is incumbent upon the City Council to reassess emerging products and trends with respect to e-cigarette use to determine whether the current tax ordinance bears updating; now, therefore

 

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHICAGO:

 

That the City Comptroller, Budget Director, and Commissioner of the Department of Business Affairs and Consumer Protection, or their designees, appear before the Committee on Finance to present information regarding liquid nicotine product tax revenues, collection efforts, wholesaler registration, and comparison to revenue from non-electronic or liquid tobacco products; and

 

BE IT FURTHER RESOLVED, that the Commissioner of the Department of Health or her designee appear before the Committee on Finance to present on the City's findings, efforts, and recommendations with respect to liquid nicotine product use among younger users.

 

 

 

E$M& M. Burke Aldertnan, 14th Ward