For more detailed information including Illinois law references, please see the Department of Revenue web site.
The Cigarette Tax Act imposes a tax on the occupation of selling cigarettes at retail. Licensed distributors prepay the tax through the purchase of stamps, which are affixed (either heat transferred or hand-applied) to each cigarette package. The distributor collects the tax from the retailer at or before the time of sale. The retailer passes the tax on to the consumer in the cigarette sale price.
The Cigarette Use Tax Act imposes a tax on the privilege of using cigarettes in Illinois. This act duplicates the provisions of the Cigarette Tax Act.
Both home rule and non-home rule municipalities may impose a cigarette tax. However, a home rule municipality cannot enact a new cigarette tax after July 1, 1993, nor can an existing cigarette tax be levied if the home rule government imposes a municipal sales tax. The Department of Revenue does not collect locally imposed cigarette taxes.
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