summary
Introduced
02/07/2025
02/07/2025
In Committee
04/11/2025
04/11/2025
Crossed Over
Passed
Dead
Introduced Session
Potential new amendment
104th General Assembly
Bill Summary
Amends the Tobacco Products Tax Act of 1995. Defines "electronic cigarette", "nicotine", and "tobacco products". Imposes a tax on any person engaged in business as a distributor of tobacco products at the rate of (i) 18% of the wholesale price of tobacco products sold or otherwise disposed of to retailers or consumers located in this State before July 1, 2012; (ii) 36% of the wholesale price of tobacco products sold or otherwise disposed of to retailers or consumers located in this State prior to July 1, 2025; and (iii) 45% of the wholesale price of tobacco products sold or otherwise disposed of to retailers or consumers located in this State beginning on July 1, 2025. Makes the changes made to the definition of "electronic cigarette" by this amendatory Act of the 104th General Assembly apply on and after June 30, 2025, but no claim for credit or refund is allowed on or after the effective date of this amendatory Act of the 104th General Assembly for such taxes paid during the period beginning June 30, 2025 and the effective date of this amendatory Act of the 104th General Assembly.
AI Summary
This bill amends the Tobacco Products Tax Act of 1995 to update definitions and tax rates for tobacco and electronic cigarette products. The bill expands the definition of "electronic cigarette" to include any device that can deliver aerosolized or vaporized nicotine, along with its components and accessories. It also introduces a new definition for "nicotine" that encompasses various chemical forms and derivatives. The bill increases the tax rates on tobacco products, raising them from 36% to 45% of the wholesale price starting July 1, 2025. Additionally, the legislation adjusts the distribution of tax revenues, allocating 35% each to the Long-Term Care Provider Fund and Healthcare Provider Relief Fund, with the remaining 30% directed to the State Tobacco Control Program for health promotion and tobacco use reduction efforts. The bill also increases the annual retailer's license fee from $75 to $150 and makes several technical changes to clarify and update the existing tobacco product taxation framework. These modifications aim to more comprehensively regulate tobacco and electronic cigarette products while generating additional revenue for health-related programs.
Committee Categories
Government Affairs
Sponsors (9)
Javier Cervantes (D)*,
Bill Cunningham (D),
Mary Edly-Allen (D),
Graciela Guzmán (D),
Julie Morrison (D),
Laura Murphy (D),
Mike Porfirio (D),
Karina Villa (D),
Mark Walker (D),
Last Action
Added as Co-Sponsor Sen. Mary Edly-Allen (on 05/19/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2338&GAID=18&DocTypeID=SB&SessionID=114&GA=104 |
| Senate Amendment 001 | https://www.ilga.gov/legislation/104/SB/10400SB2338sam001.htm |
| BillText | https://www.ilga.gov/legislation/104/SB/10400SB2338.htm |
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