Tobacco Products Tax

Statutory Reference

35 ILCS 143/10-1 to 143/99-99

Electronic Services

Illinois Licensed Tobacco Products Distributors

Definition

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; and other kinds and forms of tobacco suitable for chewing or smoking. Out‑of‑state distributors must pay this tax if they sell tobacco products to Illinois retailers or consumers.

Effective July 1, 2012, "little cigars" are classified as cigarettes. See Informational Bulletin FY 2012-12 for details.

Tax Rate

Use the “Tax Rate Database” to determine the rate.

Form/Filing & Payment Requirements

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.

Note: A taxpayer that had an annual liability of $20,000 or more in the preceding calendar year must remit any tax payment by Electronic Funds Transfer.

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
Create your own forms

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 our on-line Business Registration program.

Questions?

Call us at: 1 217 782-6045
Mail Form TP-1 and Form TP-1-X to:
ATTN: ALCOHOL, TOBACCO AND FUEL DIVISION ILLINOIS DEPARTMENT OF REVENUE PO BOX 19019 SPRINGFIELD IL 62794-9019