Bill > HB4250

This bill amends the Tobacco Products Tax Act of 1995 to introduce new regulations for remote retail sellers of tobacco products. Beginning July 1, 2026, the bill requires remote retail sellers (defined as persons selling tobacco products remotely through methods like telephone, mail, internet, or delivery services) to obtain a license from the Department of Revenue before conducting business. The bill imposes a 45% tax on the wholesale price of tobacco products sold by remote retail sellers to retailers or consumers in the state. Remote retail sellers will be subject to the same licensing, record-keeping, and compliance requirements as traditional tobacco product distributors, including potential license revocation for violations and criminal penalties for fraudulent returns or failure to pay taxes. The bill also expands the definition of tobacco products to include additional nicotine-containing products starting July 1, 2025, and ensures that tax revenues will be distributed between the Long-Term Care Provider Fund and the Healthcare Provider Relief Fund, with the first $5,000,000 collected annually going to tobacco health initiatives at the Department of Public Health.

https://www.ilga.gov/Legislation/BillStatus?DocNum=4250&GAID=18&DocTypeID=HB&SessionID=114&GA=104