Tobacco Uniformity Project

The Illinois Department of Revenue (IDOR) has completed its first phase of the Tobacco Uniformity project with the rollout of the Other Tobacco Products (OTP) Tax (Form TP-1, Tobacco Products Tax Return, and certain schedules) portion on December 16, 2024. IDOR’s project utilizes the base framework developed by the Federation of Tax Administrators (FTA) to streamline electronic filing standards for all stakeholders and create uniformity within taxing jurisdictions.

Taxpayers and electronic filing partners must begin using these new electronic filing layouts beginning with the January 2025 reporting period. Cigarette Taxes will be addressed in a later phase of IDOR’s project.

Illinois used the FTA Tobacco Uniformity Guide as our foundation for the development of forms and schedules for the implementation of this project. We have produced forms to match those examples, incorporating necessary updates to meet IDOR standards. 

TP-1, Uniform Tobacco Products Tax Return Instructions

TP-1-IL, Uniform Tobacco Transaction Schedule Instructions

For all reporting periods up to and including December 31, 2024, continue to use your current electronic filing method for Form TP-1, Tobacco Products Tax Return, and applicable schedules. Beginning with the January 2025 return, due February 18, 2025, you will begin using IDOR's new layouts. MyTax Illinois and our direct file using electronic filing program have both been updated to incorporate the Tobacco Uniformity changes.

Taxpayers will continue to have access to MyTax Illinois for filing Form TP-1 and Form TP1-IL Transaction Schedule. A direct entry option as well as the import option utilizing CSV format are available in the new formats.

New CSV Format for Form TP-1 and TP-1-IL

Due to the new layout of Form TP-1 and its Transaction Schedule, there will be a maximum file limit (based on size of CSV formatted file). If your return and schedules exceed 50MB, you will be required to flip to the direct file method. As we monitor performance of the system with the new layouts, this maximum file limit may be reduced in order to provide the best taxpayer experience and to consider system resources.

See below for details on the direct filing method.

The new schema is formatted in XML and requires transmission through a webservices-based gateway. Taxpayers utilizing this method will be required to utilize a vendor for file creation and transmission purposes, or to write their own programs and register as a transmitter. See additional requirements below under “Electronic Transmitters/Software Developers” for more details.

New file layouts were created by IDOR to utilize FTA’s XML schema for Tobacco Uniformity. These new layouts incorporate the uniform transactions schedule and an associated return. The Illinois-specific layouts are below.

In addition to the new schema, Illinois created a new transmission gateway and Developer’s Portal (MyDevPortal) available at mytax.illinois.gov/MyDevPortal. The new transmission method will be included in the electronic filing schemas and serve as a valuable resource during the testing portion of the transition to the new schema.

MyDevPortal is the starting point for all electronic transmitters, software developers and taxpayers who intend to participate in our direct file program. All participants must register by navigating to the portal and selecting the “Register for electronic filing” link. This new registration is required, even if you were previously setup for direct file.

As stated, Illinois used the FTA Tobacco Uniformity XML schema for Tobacco Products Tax returns. The FTA has recently published its new schema  Version 2.0.

The Illinois schema posted below incorporates the new additions in Version 2.0 of the FTA to the schema. The new additions are to include an optional cover page, developed using the sample contained in the FTA Tobacco Uniformity Guide.

Tobacco Uniformity Schema ZIP file

The Developer Guide below has incorporated Illinois-specific business rules, as they apply to the schema provided above.

In addition to the Developer Guide, a new transmission guide detailing our new webservices-based gateway has been developed. This Illinois Webservices Gateway Transmission Guide includes the information necessary for sending submissions and retrieving acknowledgements.

TUP-750, Implementation Guide for Direct Filing of Tobacco Products Tax Returns for Tax Periods Beginning 1/1/2025 and After 

TUP-750 Table 1 Spreadsheet - Tobacco Uniformity Schema Implementation for Illinois

TUP-750 Table 2 Spreadsheet - Illinois Business Rules and Error Messaging

Illinois Webservices Gateway Transmission Guide NEW

1. Which Tobacco Uniformity schedules apply to a tobacco retailer who sells tobacco products consisting of handmade premium cigars (not little cigars) and pipe tobacco in tins if the retailer does not sell cigarettes, vape, snuff, or any other tobacco?
2. Will there be any training or learning sessions scheduled?
3. What are the specifics of electronic filing?
4. Is there a new input template provided for download on your website, or do I have to create my own from your change instructions?
5. Is there a separate, additional header sheet that must be uploaded?
6. For a licensed distributor selling to a licensed Illinois retailer, would Schedule Code 2B or 2C best suffice for this type of situation?
7. We are an out-of-State distributor; do we need to enter our state abbreviation as the tax jurisdiction codes since that is where we are located, or do we add in the jurisdiction to which the product is being shipped?
8. If we were to sell a disposable electronic cigarette to a licensed Illinois customer, which UPCs Unit of Measure (UPC or UOM) description would be best suited for this? Stick seems to pertain more to cigars; if we were to select “Other” as this option, is this ok?
9. How much information does the product description need to have? If we were to enter "E-liquid", "Disposable", or "Electronic Cigarette Hardware" into the descriptions, would that suffice?

At this time, taxpayers with only a tobacco retailer license (CT) do not file Form TP-1, Uniform Tobacco Products Tax Return, or Form TP-1-IL, Uniform Tobacco Transaction Schedule. However, if the taxpayer also has a valid and active tobacco products distributor license (TP), then they are required to file Form TP-1 and Form TP-1-IL for all products for which the taxpayer is liable. For example, if the taxpayer purchases products tax-free from a source outside of Illinois that does not have a tobacco products distributor license, then those products for which the taxpayer is liable must be listed on Form TP-1 and Form TP-1-IL.

Check back for more information on this topic.

If you file through MyTax Illinois, you can continue submitting Form TP-1 and Form TP-1-IL through MyTax Illinois as long as your schedule import CSV file is smaller than 50 MB. However, if the CSV import file size is bigger than 50 MB, then you must file Form TP-1 and Form TP-1-IL through the Illinois Webservice Gateway Transmission portal. All instructions and guides for filing through MyTax Illinois or the Illinois Webservices Gateway Transmission portal can be found on the Tobacco Uniformity Project webpage.

IDOR does not have a downloadable template for the CSV file. You will need to create your own using the guidelines provided in the Form TP-1-IL, Uniform Tobacco Transaction Schedule Instructions, available on our website.

No. In fact, the CSV file must not have any headers for the columns within the file.

If the Illinois retailer to which you are selling only has an Illinois Cigarette/Tobacco Products Retailer license (CT), you are responsible for remitting the tax.  This transaction should be reported on Schedule 2C.

If the Illinois retailer to which you are selling has both an Illinois Cigarette/Tobacco Products Retailer license (CT) and an Illinois Tobacco Products Distributor license (TP), they are responsible for remitting the tax.  This transaction should be reported on Schedule 2B.

The list of Schedule Codes is:

• 1A – OTP received from manufacturer or first importer
• 1B – OTP received from a person other than a manufacturer or first importer (e.g., wholesaler, distributor, or other licensee)
• 1C – OTP received from a retailer or end user
• 1D – OTP received by manufacturer or first importer from a person other than a manufacturer or first importer
• 2A – OTP disbursed by a manufacturer or first importer
• 2B – OTP disbursed to a person other than a manufacturer or first importer (e.g., wholesaler, distributor, or other licensee)
• 2C – OTP disbursed to a retailer or end user
• 2D – OTP returned to the manufacturer

The Tax Jurisdiction Code is where you are sending the products, so the code would be “IL”.

For the UPCs Unit of Measure (UPC or UOM), you would use “ECH”, do NOT use “Other”. 

UPCs Unit of Measure (UPCs UOM) – Select the appropriate code for the UOM of the UPC being reported. The list of UPCs Unit of Measures is:

• PAK – Pack
• STK – Stick
• BOX – Box
• ECH – “Eaches” (each defined unit of taxable product)
• BAG – Bag
• TIN – Tin
• FOI – Foil
• CAN – Can
• BUL – Bulk
• TUB – Tub
• PCH – Pouch
• BUN – Bundle
• PLG – Plug
• CUT – Cut
• BOT – Bottle
• JAR – Jar
• OTH - Other

For Product Description, use the UPC’s description as a guide.

• Email us at: REV.ExciseTaxEFP@illinois.gov

Project updates will be posted to this webpage. We also encourage you to sign up for IDOR News & Updates, IDOR’s email/SMS text subscription service, to receive the latest news and updates specific to the Tobacco Uniformity Project by selecting the topic Cigarette and tobacco taxes.