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The City Council on Monday will consider a $163 surcharge for San Diego retailers that sell tobacco products in order to fund sting operations against sales to underage tobacco customers.

Under the proposal, retailers paying the fee would be issued a license enabling them to sell tobacco. Those found in sting operations to be selling to underage customers would have their licenses suspended.

The city estimates it will cost about $220,000 to implement the program, which it believes to be similar to other law enforcement efforts that have cut underage tobacco sales by up to 75 percent. The city calculated the cost by divvying the cost up across an estimated 1,363 tobacco outlets in the city limits.

A hearing on the proposal will be held at 2 p.m. at the City Council chambers, located at 202 C. St.

The council’s Public Safety & Neighborhood Services Committee approved an earlier draft of the proposal in July 2006.

EVAN McLAUGHLIN

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