Bill > HB5182

This bill amends the Tobacco Products Tax Act of 1995 to require remote retail sellers, defined as businesses located outside of Illinois that sell cigars or pipe tobacco to Illinois consumers through methods like online orders or mail, to collect and remit tobacco taxes if they meet certain sales thresholds, specifically if their cumulative gross receipts from sales to Illinois consumers are $100,000 or more, or if they conduct 200 or more separate transactions with Illinois consumers annually. Beginning January 1, 2027, the tax rate on tobacco products will be 45% of either the actual cost paid by a distributor or remote retail seller for a specific product (SKU, or Stock Keeping Unit, which is a unique identifier for inventory) or, if that cost isn't available, the average cost list paid for that SKU. Additionally, from January 1, 2027, through December 31, 2029, the tax on individual cigars, excluding "little cigars" (which are defined as small, filtered rolls of tobacco), will be capped at $0.75 per cigar. The bill also introduces licensing requirements for remote retail sellers who meet these sales criteria, mandating they obtain a license from the Department of Revenue and register under the Retailers' Occupation Tax Act, and requires them to use a third-party service for age verification.

https://www.ilga.gov/Legislation/BillStatus?DocNum=5182&GAID=18&DocTypeID=HB&SessionID=114&GA=104