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.
Use the “Tax Rate Database” to determine the rate.
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.
The following types of tobacco products sales are not subject to this tax:
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.