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2    WHEREAS, The State of Illinois is currently experiencing a
3fiscal crisis due to the COVID-19 pandemic and is considering
4a multitude of options to solve its economic concerns; and
5    WHEREAS, Increased excise taxes on Illinois brewers,
6winemakers, and distillers, many of which are small
7businesses, are being contemplated by some in the State's
8leadership in order to generate additional revenue to balance
9the State's budget; and
10    WHEREAS, Illinois' alcohol excise taxes already rank among
11the highest in the United States at $8.55 per gallon liquor tax
12(3rd highest), $1.39 per gallon wine tax (9th highest), and
13$0.23 per gallon beer tax (22nd highest); and
14    WHEREAS, Additional excise taxes on alcohol in Cook County
15and the City of Chicago, Illinois' most populous region,
16greatly increase the cost of beer, wine, and liquor for
17Illinois adult consumers; this includes a $2.68 per gallon tax
18on liquor imposed by the City of Chicago and a $2.50 per gallon
19liquor tax imposed by Cook County, a $0.36 to $0.89 per gallon
20tax on wine imposed by the City of Chicago and a $0.20 to $0.45
21per gallon wine tax imposed by Cook County, and a $0.29 per
22gallon beer tax imposed by the City of Chicago and a $0.06 per



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1gallon beer tax imposed by Cook County; and
2    WHEREAS, Illinois' excise beer taxes are already the
3highest at $0.23 per gallon, compared to all of its
4neighboring states, including Wisconsin at $0.06 per gallon,
5Iowa at $0.19 per gallon, Missouri at $0.06 per gallon,
6Indiana at $0.11 per gallon, and Kentucky at $0.08 per gallon;
8    WHEREAS, Illinois brewers, winemakers, and distillers, as
9well as importers, also pay federal excise taxes on the
10products they produce; and
11    WHEREAS, Illinois' beer industry, made up of brewers, beer
12importers, beer distributors, brewer suppliers, and retailers,
13contributes more than $10.1 billion annually to Illinois'
14economy and is linked to 86,400 local jobs; and
15    WHEREAS, Illinois' wine industry directly creates 36,403
16jobs and generates $1.22 billion in wages and $2.98 billion in
17economic activity in the State; and
18    WHEREAS, When the state of Maryland increased their
19alcohol excise taxes from 6% to 9% in 2012, it resulted in
20Maryland residents traveling to Virginia, Delaware, and
21Washington, D.C. for cheaper alternatives, crippling Maryland



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1business in bordering counties; and
2    WHEREAS, Illinois' costly alcohol taxes continue to
3provoke border-town residents to find cheaper prices in
4neighboring states and to create black markets for overtaxed
5goods, diminishing state revenues, which by one estimate costs
6Illinois up to $30 million annually due to cross-border
7alcohol sales; and
8    WHEREAS, Additional taxes on alcohol in Illinois would
9cripple the ability of business owners, both large and small,
10to successfully recover from the devastating financial impact
11wrought by a global pandemic; and
12    WHEREAS, More taxes on beer, wine, and liquor would
13continue to ravage the already shattered hospitality industry
14in Illinois, driving opportunity, revenue, and jobs to
15neighboring states and hurting Illinois' already fragile
16economy; and
17    WHEREAS, Imposing additional taxes on brewers, winemakers,
18and distillers during a global pandemic is counterintuitive
19and goes against the pro-jobs policies that should be under
20careful consideration as Illinois seeks to regain sound
21financial footing; therefore, be it



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3we state our firm opposition to any additional excise taxes on
4Illinois businesses that produce beer, wine, or liquor or
5their related industries; and be it further
6    RESOLVED, That we state our belief that Illinois' present
7fiscal crisis must be managed in other ways rather than
8increased taxes that unfairly target a single industry in the