Tobacco Products Tax
- Statutory - 35 ILCS 143/10-1 to 143/99-99
- Regulations - 86 Ill. Adm. Code Part 660
Illinois Licensed Tobacco Products Distributors
The tax is imposed on persons engaged in the business as a distributor of tobacco products (other than cigarettes), including cigars; cheroots; stogies; periques; granulated, plug-cut, crimp-cut, ready-rubbed and other smoking tobacco; snuff or snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing tobaccos; refuse scraps, clippings, cuttings and sweepings of tobacco; other kinds and forms of tobacco suitable for chewing or smoking; and electronic cigarettes.
"Electronic cigarette" is defined as follows:
• any device that employs a battery or other mechanism to heat a solution or substance to produce a vapor or aerosol intended for inhalation, except for
- any device designed solely for use with cannabis that contains a statement on the retail packaging that the device is designed solely for use with cannabis and not for use with tobacco or
- any device that contains a solution or substance that contains cannabis subject to tax under the Compassionate Use of Medical Cannabis Program Act or the Cannabis Regulation and Tax Act;
• any cartridge or container of a solution or substance intended to be used with or in the device or to refill the device, except for any cartridge or container of a solution or substance that contains cannabis subject to tax under the Compassionate Use of Medical Cannabis Program Act or the Cannabis Regulation and Tax Act; or
• any solution or substance, regardless of whether it contains nicotine, intended for use in the device, except for any solution or substance that contains cannabis subject to tax under the Compassionate Use of Medical Cannabis Program Act or the Cannabis Regulation and Tax Act.
This definition includes, but is not limited to, any electronic nicotine delivery system, electronic cigar, electronic cigarillo, electronic pipe, electronic hookah, vape pen, or similar product or device, and any component or part that can be used to build the product or device. For additional information see Electronic Cigarette Frequently Asked Questions.
The Tobacco Products Tax Act provides that any package of little cigars containing 20 or 25 sticks must be affixed with a cigarette tax stamp. The stamping must be done in the same manner as a package of cigarettes under the Cigarette Tax Act and Cigarette Use Tax Act and must be performed by a “stamping distributor.” Little cigars sold in packages containing quantities other than 20 or 25 sticks do not require stamps. Instead, a stamping distributor must pay the tax due using Form RC-55, Unstamped Little Cigar Sticks Tax Return.
“Little cigar” means and includes any roll, made wholly or in part of tobacco, where such roll has an integrated cellulose acetate filter and weighs less than 4 pounds per thousand and the wrapper or cover of which is made in whole or in part of tobacco.
Use the Tax Rate Database to determine the rate.
Form Filing & Payment Requirements
Forms TP-1 and TP-1-X must be filed electronically. You can use MyTax Illinois to file these forms, or you can also file using a direct file service through an outside vendor.
Note: A taxpayer that had an annual liability of $20,000 or more in the preceding calendar year must remit any tax payment using an electronic payment method, such as submitting payments using MyTax Illinois or submitting payments by Electronic Funds Transfer.
- Form TP-1, Tobacco Products Tax Return, is due by the 15th day of the month following the month in which the tobacco products were sold or otherwise disposed.
- Form TP-1-X, Amended Tobacco Products Tax Return
- Form TP-7, Schedule of Returned Merchandise for Tobacco Products Tax
- Form TP-11, Products Sold in Interstate Commerce
- Form TP-12, Products Sold to Other Distributors/Wholesalers
- Form TP-13, Other Deductions for Tobacco Products
- Form TP-14, Moist Snuff Sold and Shipped in Interstate Commerce
- Form TP-15, Moist Snuff Sold to Other Distributors/Wholesalers
- Form TP-16, Schedule of Returned Moist Snuff
- Form TP-17, Other Deductions for Moist Snuff
- Form TP-18, E-cigarette Products Sold in Interstate Commerce
- Form TP-19, E-cigarette Products Sold to Other Distributors/Wholesalers
- Form TP-20, Schedule of Returned E-cigarette Merchandise
- Form TP-21, Other Deductions for E-cigarette Products
Allowable Deductions and Nontaxable Sales
The following types of tobacco products sales are not subject to this tax:
- Sales out-of-state
- Sales of tobacco used in the cigarette manufacturing process
- Sales to manufacturers of tobacco products as part of a Correctional Industries program for sale to residents incarcerated in penal institutions and to resident patients of state-operated mental health facilities
- Sales made to a US government agency
Additional Registration and Bonding Requirements
In addition to filing Form REG-1, Illinois Business Registration Application, distributors must file a bond equal to three times the company's average monthly tobacco tax liability or $50,000, whichever is less. The bond is not required if the taxpayer is a licensed cigarette distributor. You may also register using MyTax Illinois.
Distributors selling both cigarettes and little cigars are considered “stamping distributors” and must be licensed under the Cigarette Tax Act or the Cigarette Use Tax Act and the Tobacco Products Tax Act.
Retailers of cigarettes and tobacco products as defined in the Cigarette Tax Act, the Cigarette Use Tax Act, or the Tobacco Products Tax Act must also obtain a Cigarette and Tobacco Products Retailer License. This License allows retailers to sell electronic cigarettes. Retailers must pay an annual license fee of $75 per retail location. This fee must be submitted electronically with your initial license application. The annual renewal fee of $75 also must be submitted electronically using MyTax Illinois.
- Email us at: REV.ATP-MFR@illinois.gov
- Call us weekdays from 8:00 a.m. to 4:00 p.m. at: 217-782-6045
- Write us at:
ALCOHOL, TOBACCO AND FUEL DIVISION
ILLINOIS DEPARTMENT OF REVENUE
PO BOX 19467
SPRINGFIELD IL 62794-9467