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What is Cigarette Use Tax?
Illinois Cigarette Use Tax is owed if cigarettes are purchased for use in Illinois without Illinois Cigarette Tax having been paid (generally, cigarettes purchased outside of Illinois). If you are an Illinois resident who purchases cigarettes from someone not licensed by Illinois, you are liable for this tax. Within 30 days from the date of your purchase, you must complete Form RC-44, Cigarette Use Tax Return, and pay the tax directly to IDOR. Mail order and Internet purchases are also subject to Illinois Cigarette Use Tax.
For possession of unstamped cigarettes (failure to pay this use tax), there is a $20 penalty for each package of cigarettes in excess of nine packages but not more than 100, and a $25 penalty for each package of cigarettes in excess of 100 packages. There are also criminal penalties for the sale or possession of unstamped cigarettes (35 ILCS 130/24; 35 ILCS 135/30). In addition, there are criminal penalties for unauthorized transportation of unstamped cigarettes (35 ILCS 130/9c).
It is illegal to purchase cigarettes outside of Illinois for personal use or for use by friends, neighbors, or coworkers without paying Illinois Cigarette Use Tax. Smuggling is the illegal transportation of cigarettes between states, ranging from a small part-time operation to a large-scale business. Unauthorized transportation of cigarettes, whether casual or commercial smuggling, usually takes place across the borders of neighboring states.