Tabacco Products Tax
The tabacco products 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.
The Tobacco Products Tax Act provides that any package of little cigars containing 20 or 25 sticks must be affixed with a cigarette tax stamp. The stamping must be done in the same manner as a package of cigarettes under the Cigarette Tax Act and Cigarette Use Tax Act and must be performed by a “stamping distributor.” Little cigars sold in packages containing quantities other than 20 or 25 sticks do not require stamps. Instead, a stamping distributor must pay the tax due using Form RC-55, Unstamped Little Cigar Sticks Tax Return.
The tax that must be paid:
- Effective July 1, 2012, 36 percent of wholesale price of tobacco products sold or otherwise disposed of to a retailer or consumer
- Effective January 1, 2013, the tax on moist snuff tobacco products is $0.30 per ounce.
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
Forms TP-1 and TP-1-X can be filed for free at MyTax Illinois.
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