Cigarette & Cigarette Use Taxes

The Cigarette Tax Act imposes a tax on the occupation of selling cigarettes at retail. Licensed distributors prepay the tax through the purchase of stamps, which are affixed (either heat-transferred or hand applied) to each cigarette package. The distributor collects the tax from the retailer at or before the time of sale. The retailer passes the tax on to the consumer in the cigarette sale price.

The Cigarette Use Tax Act imposes a tax on the privilege of using cigarettes in Illinois. This act duplicates the provisions of the Cigarette Tax Act.

“Cigarette” means any roll for smoking made wholly or in part of tobacco irrespective of size or shape and whether or not such tobacco is flavored, adulterated or mixed with any other ingredient, and the wrapper or cover of which is made of paper or any other substance or material except tobacco.

The Tobacco Products Tax Act imposes the tax on little cigars at the same rate as the tax imposed on cigarettes under the Cigarette Tax Act and the Cigarette Use Tax Act. Little cigars sold in packages of 20 or 25 sticks must be affixed with a cigarette tax stamp. Distributors selling both cigarettes and little cigars are considered “stamping distributors.” See below for licensing and form filing requirements for stamping distributors. Stamping Distributors also must meet all the filing requirements of a tobacco products distributor.

“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.

Cigarette Tax
99 mills per cigarette or $1.98 per package of 20 cigarettes

Cigarette Use Tax for Distributors
99 mills per cigarette or $1.98 per package of 20 cigarettes

Cigarette Use Tax for Individuals
99 Mills per cigarette or $1.98 per package of 20 cigarettes. Note: A separate (sales) uses tax of 6.25 percent is also due on the purchase price.

Form/Filing & Payment Requirements
Cigarette Distributors

The in-state distributors return, Form RC-6, Cigarette and Little Cigar Revenue Return, is due monthly by the 15th day of the month following the end of the reporting period.
The out-of-state distributors return, Form RC-6-A, Out-of-State Cigarette and Little Cigar Revenue Return, is due monthly by the 15th day of the month following the end of the reporting period.
Form RC-25, Cigarette Importation Report, must be filed by distributors by the first business day of the month following the end of the reporting period.
Form RC-1-A, Cigarette Tax Stamp Order-Invoice, is filed as needed to purchase cigarette tax stamps.
Form RCS-36 Schedule CSM, Sales of Cigarettes and Little Cigars to Illinois Secondary Cigarette Distributors, must be filed using MyTax Illinois and is due by the 15th day of the month following the transaction being reported.
Form RC-55, Unstamped Little Cigar Sticks Tax Return, is due monthly by the 15th day of the month following the end of the reporting period.

Stamping Distributors

Form RC-6
Form RC-6-A
Form RC-25
Form RC-1-A
Form RCS-36 Schedule CSM
Form RC-55
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.

Secondary Distributors

Form RCS-1, Secondary Distributors/Manufacturer Representatives Report, must be filed using MyTax Illinois and is due monthly by the 15th day of the month following the end of the reporting period.

Cigarette Manufacturers

Form RC-36 Schedule CM, Sales of Cigarettes and Little Cigars into Illinois by Manufacturers or Importers, is due by the 5th day of the month following the transaction being reported.

Unlicensed Individuals

Form RC-44, Cigarette Use Tax Return, is filed as needed, on a per-purchase basis, to pay tax on unstamped cigarettes purchased from a seller and is due within 30 days of the purchase.

Electronic Filing

A taxpayer who has 30 or more transactions per month must file electronically. One electronic filing option is the direct transmission method using software you develop or purchase (see Tax-Prep Software). Another option is to use MyTax Illinois, our on-line account management program, to file most Cigarette Tax and Cigarette Use Tax returns and reports.
Electronic Payments

Beginning July 1, 2003, all cigarette tax stamp purchases must be paid by Electronic Funds Transfer (EFT).

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Call Chicago defense attorney Mike Levinsohn at 312 919-0200