Statutory Reference
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.
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. 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: 1 217 782-6045
- Mail your TP-1 and TP-1-X forms to:
ATTN: ALCOHOL, TOBACCO AND FUEL DIVISION
ILLINOIS DEPARTMENT OF REVENUE
PO BOX 19019
SPRINGFIELD IL 62794-9019
