Prairie State Wire

The State of Illinois has announced several changes to the taxation of tobacco products, set to take effect in the coming months. Public Act 104-0006 outlines these modifications, which will be implemented starting July 1, 2025.

One significant change is the establishment of a uniform tax rate for all tobacco products sold or otherwise disposed of to retailers or consumers within Illinois. This means that moist snuff will no longer be taxed based on its weight. Additionally, there will be an increase in the tax rate applied to the wholesale price of tobacco products.

The definition of tobacco products has been updated under this act to include new items, although certain exceptions apply. Retailers should also note that the annual Tobacco Retailer License fee is set to rise.

Another important change comes into effect on January 1, 2026. The electronic filing exception will be eliminated, requiring all returns related to tobacco taxes to be filed electronically.

This bulletin also serves as a reminder about Illinois Tobacco Uniformity; however, it does not form part of the changes made by Public Act 104-0006.

For further details and information regarding these changes, individuals are encouraged to refer to FY 2025-31 Changes to the Tobacco Product Taxes.