Statutory Reference
Electronic Services
Definition
The tax is imposed on any person engaged in the business as a distibutor 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.
Tax Rate
Use the
“Tax Rate Finder” to determine the rate.
Form/Filing & Payment Requirements
Note: A taxpayer that had an annual liability of $200,000 or more in the preceding calendar year must remit any tax payment by
Electronic Funds Transfer. For more information, please see
WebFile & Pay Tobacco Products. Tax
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: 1 800 732-8866 or 1 217 782-3336 or 1 217 782-6045
- Call TDD: 1 800 544-5304
- Mail your TP-1 and TP-1-X forms to:
Attn: Tobacco Products Tax
Illinois Department of Revenue
P.O. Box 19019
Springfield, Illinois 62794-9019
