HB 4250

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Full Text of HB4250
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	HB4250 - 104th General Assembly
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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4250
Introduced 1/14/2026, by Rep. Maurice A. West, II
SYNOPSIS AS INTRODUCED:
35 ILCS 143/10-5
35 ILCS 143/10-10
35 ILCS 143/10-24 new
35 ILCS 143/10-25
35 ILCS 143/10-37
35 ILCS 143/10-38
35 ILCS 143/10-45
35 ILCS 143/10-50
Amends the Tobacco Products Tax Act of 1995. Provides that, beginning on July 1, 2026, it shall be unlawful for any person to engage in business as a remote retail seller without first having obtained a license to do so from the Department of Revenue. Provides that, beginning on July 1, 2026, any person engaged in business as a remote retail seller of tobacco products shall be taxed at the rate of 45% of the wholesale price of tobacco products sold or otherwise disposed of to retailers or consumers located in the State. Defines "remote retail seller" as a person located inside or outside of the State who makes remote retail sales. Makes conforming changes. Effective July 1, 2026.
LRB104 16477 SPS 29872 b
A BILL FOR
		HB4250		LRB104 16477 SPS 29872 b
1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Tobacco Products Tax Act of 1995 is amended
5by changing Sections 10-5, 10-10, 10-25, 10-30, 10-35, 10-37,
610-38, 10-45, and 10-50 and by adding Section 10-24 as
7follows:
8    (35 ILCS 143/10-5)
9    Sec. 10-5. Definitions. For purposes of this Act:
10    "Business" means any trade, occupation, activity, or
11enterprise engaged in, at any location whatsoever, for the
12purpose of selling tobacco products.
13    "Cigarette" has the meaning ascribed to the term in
14Section 1 of the Cigarette Tax Act.
15    "Contraband little cigar" means:
16        (1) packages of little cigars containing 20 or 25
17    little cigars that do not bear a required tax stamp under
18    this Act;
19        (2) packages of little cigars containing 20 or 25
20    little cigars that bear a fraudulent, imitation, or
21    counterfeit tax stamp;
22        (3) packages of little cigars containing 20 or 25
23    little cigars that are improperly tax stamped, including
		HB4250	- 2 -	LRB104 16477 SPS 29872 b
1    packages of little cigars that bear only a tax stamp of
2    another state or taxing jurisdiction; or
3        (4) packages of little cigars containing other than 20
4    or 25 little cigars in the possession of a distributor,
5    retailer or wholesaler, unless the distributor, retailer,
6    or wholesaler possesses, or produces within the time frame
7    provided in Section 10-27 or 10-28 of this Act, an invoice
8    from a stamping distributor, distributor, or wholesaler
9    showing that the tax on the packages has been or will be
10    paid.
11    "Correctional Industries program" means a program run by a
12State penal institution in which residents of the penal
13institution produce tobacco products for sale to persons
14incarcerated in penal institutions or resident patients of a
15State operated mental health facility.
16    "Department" means the Illinois Department of Revenue.
17    "Distributor" means any of the following:
18        (1) Any manufacturer or wholesaler in this State
19    engaged in the business of selling tobacco products who
20    sells, exchanges, or distributes tobacco products to
21    retailers or consumers in this State.
22        (2) Any manufacturer or wholesaler engaged in the
23    business of selling tobacco products from without this
24    State who sells, exchanges, distributes, ships, or
25    transports tobacco products to retailers or consumers
26    located in this State, so long as that manufacturer or
		HB4250	- 3 -	LRB104 16477 SPS 29872 b
1    wholesaler has or maintains within this State, directly or
2    by subsidiary, an office, sales house, or other place of
3    business, or any agent or other representative operating
4    within this State under the authority of the person or
5    subsidiary, irrespective of whether the place of business
6    or agent or other representative is located here
7    permanently or temporarily.
8        (3) Any retailer who receives tobacco products on
9    which the tax has not been or will not be paid by another
10    distributor.
11    "Distributor" does not include any person, wherever
12resident or located, who makes, manufactures, or fabricates
13tobacco products as part of a Correctional Industries program
14for sale to residents incarcerated in penal institutions or
15resident patients of a State operated mental health facility.
16    "Electronic cigarette" means:
17        (1) any device that employs a battery or other
18    mechanism to heat a solution or substance to produce a
19    vapor or aerosol intended for inhalation, except for (A)
20    any device designed solely for use with cannabis that
21    contains a statement on the retail packaging that the
22    device is designed solely for use with cannabis and not
23    for use with tobacco or (B) any device that contains a
24    solution or substance that contains cannabis subject to
25    tax under the Compassionate Use of Medical Cannabis
26    Program Act or the Cannabis Regulation and Tax Act;
		HB4250	- 4 -	LRB104 16477 SPS 29872 b
1        (2) any cartridge or container of a solution or
2    substance intended to be used with or in the device or to
3    refill the device, except for any cartridge or container
4    of a solution or substance that contains cannabis subject
5    to tax under the Compassionate Use of Medical Cannabis
6    Program Act or the Cannabis Regulation and Tax Act; or
7        (3) any solution or substance, whether or not it
8    contains nicotine, intended for use in the device, except
9    for any solution or substance that contains cannabis
10    subject to tax under the Compassionate Use of Medical
11    Cannabis Program Act or the Cannabis Regulation and Tax
12    Act.
13    The changes made to the definition of "electronic
14cigarette" by this amendatory Act of the 102nd General
15Assembly apply on and after June 28, 2019, but no claim for
16credit or refund is allowed on or after the effective date of
17this amendatory Act of the 102nd General Assembly for such
18taxes paid during the period beginning June 28, 2019 and the
19effective date of this amendatory Act of the 102nd General
20Assembly.
21    "Electronic cigarette" includes, but is not limited to,
22any electronic nicotine delivery system, electronic cigar,
23electronic cigarillo, electronic pipe, electronic hookah, vape
24pen, or similar product or device, and any component or part
25that can be used to build the product or device. "Electronic
26cigarette" does not include: cigarettes, as defined in Section
		HB4250	- 5 -	LRB104 16477 SPS 29872 b
11 of the Cigarette Tax Act; any product approved by the United
2States Food and Drug Administration for sale as a tobacco
3cessation product, a tobacco dependence product, or for other
4medical purposes that is marketed and sold solely for that
5approved purpose; any asthma inhaler prescribed by a physician
6for that condition that is marketed and sold solely for that
7approved purpose; or any therapeutic product approved for use
8under the Compassionate Use of Medical Cannabis Program Act.
9    "Little cigar" means and includes any roll, made wholly or
10in part of tobacco, where such roll has an integrated
11cellulose acetate filter and weighs less than 4 pounds per
12thousand and the wrapper or cover of which is made in whole or
13in part of tobacco.
14    "Manufacturer" means any person, wherever resident or
15located, who manufactures and sells tobacco products, except a
16person who makes, manufactures, or fabricates tobacco products
17as a part of a Correctional Industries program for sale to
18persons incarcerated in penal institutions or resident
19patients of a State operated mental health facility.
20    Beginning on January 1, 2013, "moist snuff" means any
21finely cut, ground, or powdered tobacco that is not intended
22to be smoked, but shall not include any finely cut, ground, or
23powdered tobacco that is intended to be placed in the nasal
24cavity.
25    "Nicotine" means any form of the chemical nicotine,
26including any salt or complex, regardless of whether the
		HB4250	- 6 -	LRB104 16477 SPS 29872 b
1chemical is naturally or synthetically derived, and includes
2nicotinic alkaloids and nicotine analogs.
3    "Person" means any natural individual, firm, partnership,
4association, joint stock company, joint venture, limited
5liability company, or public or private corporation, however
6formed, or a receiver, executor, administrator, trustee,
7conservator, or other representative appointed by order of any
8court.
9    "Place of business" means and includes any place where
10tobacco products are sold or where tobacco products are
11manufactured, stored, or kept for the purpose of sale or
12consumption, including any vessel, vehicle, airplane, train,
13or vending machine.
14    "Prior continuous compliance taxpayer" means any person
15who is licensed under this Act and who, having been a licensee
16for a continuous period of 2 years, is determined by the
17Department not to have been either delinquent or deficient in
18the payment of tax liability during that period or otherwise
19in violation of this Act. "Prior continuous compliance
20taxpayer" also means any taxpayer who has, as verified by the
21Department, continuously complied with the condition of his
22bond or other security under provisions of this Act for a
23period of 2 consecutive years. In calculating the consecutive
24period of time described in this definition for qualification
25as a prior continuous compliance taxpayer, a consecutive
26period of time of qualifying compliance immediately prior to
		HB4250	- 7 -	LRB104 16477 SPS 29872 b
1the effective date of this amendatory Act of the 103rd General
2Assembly shall be credited to any licensee who became licensed
3on or before the effective date of this amendatory Act of the
4103rd General Assembly. A distributor that is a prior
5continuous compliance taxpayer and becomes a successor to a
6distributor as the result of an acquisition, merger, or
7consolidation of that distributor shall be deemed to be a
8prior continuous compliance taxpayer with respect to the
9acquired, merged, or consolidated entity.
10    "Remote retail sale" means any sale of tobacco products to 
11a consumer that satisfies any of the following:
12        (1) The consumer submits the order for the sale by 
13    telephone, a method of voice transmission, mail, or the 
14    Internet or other online service, or the seller is 
15    otherwise not in the physical presence of the consumer 
16    when the order or request for purchase is made.
17        (2) The tobacco product is delivered to the consumer 
18    by common carrier, private delivery service, or other 
19    method of remote delivery, or the seller is not in the 
20    physical presence of the consumer when the consumer 
21    obtains possession of the tobacco product.
22    "Remote retail seller" means a person located inside or 
23outside of this State who makes remote retail sales.
24    "Retailer" means any person in this State engaged in the
25business of selling tobacco products to consumers in this
26State, regardless of quantity or number of sales.
		HB4250	- 8 -	LRB104 16477 SPS 29872 b
1    "Sale" means any transfer, exchange, or barter in any
2manner or by any means whatsoever for a consideration and
3includes all sales made by persons.
4    "Stamp" or "stamps" mean the indicia required to be
5affixed on a package of little cigars that evidence payment of
6the tax on packages of little cigars containing 20 or 25 little
7cigars under Section 10-10 of this Act. These stamps shall be
8the same stamps used for cigarettes under the Cigarette Tax
9Act.
10    "Stamping distributor" means a distributor licensed under
11this Act and also licensed as a distributor under the
12Cigarette Tax Act or Cigarette Use Tax Act.
13    "Tobacco products" means any product that is made from or
14derived from tobacco that is intended for human consumption or
15is likely to be consumed, including but not limited to cigars,
16including little cigars; cheroots; stogies; periques;
17granulated, plug cut, crimp cut, ready rubbed, and other
18smoking tobacco; snuff (including moist snuff) and snuff
19flour; cavendish; plug and twist tobacco; fine-cut and other
20chewing tobaccos; shorts; refuse scraps, clippings, cuttings,
21and sweeping of tobacco; snus; shisha and tobacco for use in
22waterpipes; and other kinds and forms of tobacco, prepared in
23such manner as to be suitable for chewing or smoking in a pipe
24or otherwise, or both for chewing and smoking or for
25inhalation, absorption, or ingesting by any other means; but
26does not include cigarettes as defined in Section 1 of the
		HB4250	- 9 -	LRB104 16477 SPS 29872 b
1Cigarette Tax Act or tobacco purchased for the manufacture of
2cigarettes by cigarette distributors and manufacturers defined
3in the Cigarette Tax Act and persons who make, manufacture, or
4fabricate cigarettes as a part of a Correctional Industries
5program for sale to residents incarcerated in penal
6institutions or resident patients of a State operated mental
7health facility.
8    Beginning on July 1, 2019, "tobacco products" also
9includes electronic cigarettes.
10    Beginning July 1, 2025, "tobacco products" also includes
11any product that is made from or derived from tobacco, or that
12contains nicotine whether natural or synthetic, that is
13intended for human consumption or is likely to be consumed,
14including but not limited to nicotine pouches, lozenges, and
15gum; and other kinds and forms of nicotine prepared in such
16manner as to be suitable for chewing or smoking in a pipe or
17otherwise, or both for chewing and smoking or for inhalation,
18absorption, or ingesting by any other means.
19    "Tobacco products" does not include any product that has
20been approved by the United States Food and Drug
21Administration for sale as a tobacco or smoking cessation
22product, a nicotine replacement therapy product, or for other
23medical purposes where that product is marketed and sold
24solely for such approved use, including but not limited to
25spray or inhaler prescribed by a physician, chewing gum, skin
26patches, or lozenges.
		HB4250	- 10 -	LRB104 16477 SPS 29872 b
1    "Wholesale price" means the established list price for
2which a manufacturer sells tobacco products to a distributor,
3before the allowance of any discount, trade allowance, rebate,
4or other reduction. In the absence of such an established list
5price, the manufacturer's invoice price at which the
6manufacturer sells the tobacco product to unaffiliated
7distributors, before any discounts, trade allowances, rebates,
8or other reductions, shall be presumed to be the wholesale
9price.
10    "Wholesaler" means any person, wherever resident or
11located, engaged in the business of selling tobacco products
12to others for the purpose of resale. "Wholesaler", when used
13in this Act, does not include a person licensed as a
14distributor under Section 10-20 of this Act unless expressly
15stated in this Act.
16(Source: P.A. 103-1001, eff. 8-9-24; 104-6, eff. 7-1-25.)
17    (35 ILCS 143/10-10)
18    Sec. 10-10. Tax imposed.
19    (a) Except as otherwise provided in this Section with
20respect to little cigars, on the first day of the third month
21after the month in which this Act becomes law, a tax is imposed
22on any person engaged in business as a distributor of tobacco
23products, as defined in Section 10-5, and, beginning on July 
241, 2026, any person engaged in business as a remote retail 
25seller of tobacco products, as defined in Section 10-5, at the
		HB4250	- 11 -	LRB104 16477 SPS 29872 b
1rate of (i) 18% of the wholesale price of tobacco products sold
2or otherwise disposed of to retailers or consumers located in
3this State prior to July 1, 2012; (ii) 36% of the wholesale
4price of tobacco products sold or otherwise disposed of to
5retailers or consumers located in this State beginning on July
61, 2012 and through June 30, 2025; except that, beginning on
7January 1, 2013 and through June 30, 2025, the tax on moist
8snuff shall be imposed at a rate of $0.30 per ounce, and a
9proportionate tax at the like rate on all fractional parts of
10an ounce, sold or otherwise disposed of to retailers or
11consumers located in this State; and except that, beginning
12July 1, 2019 and through June 30, 2025, the tax on electronic
13cigarettes shall be imposed at the rate of 15% of the wholesale
14price of electronic cigarettes sold or otherwise disposed of
15to retailers or consumers located in this State; and (iii) 45%
16of the wholesale price of tobacco products, including moist
17snuff and electronic cigarettes, sold or otherwise disposed of
18to retailers or consumers located in this State on and after
19July 1, 2025; and except that, beginning on July 1, 2026, the 
20tax on tobacco products, including moist snuff and electronic 
21cigarettes, sold or otherwise disposed of to retailers or 
22consumers located in this State by a remote retail seller 
23shall be imposed at the rate of 45% of the wholesale price. The
24tax is in addition to all other occupation or privilege taxes
25imposed by the State of Illinois, by any political subdivision
26thereof, or by any municipal corporation. However, the tax is
		HB4250	- 12 -	LRB104 16477 SPS 29872 b
1not imposed upon any activity in that business in interstate
2commerce or otherwise, to the extent to which that activity
3may not, under the Constitution and Statutes of the United
4States, be made the subject of taxation by this State, and
5except that, beginning July 1, 2013, the tax on little cigars
6shall be imposed at the same rate, and the proceeds shall be
7distributed in the same manner, as the tax imposed on
8cigarettes under the Cigarette Tax Act. The tax is also not
9imposed on sales made to the United States or any entity
10thereof.
11    (b) Notwithstanding subsection (a) of this Section,
12stamping distributors of packages of little cigars containing
1320 or 25 little cigars sold or otherwise disposed of in this
14State shall remit the tax by purchasing tax stamps from the
15Department and affixing them to packages of little cigars in
16the same manner as stamps are purchased and affixed to
17cigarettes under the Cigarette Tax Act, unless the stamping
18distributor sells or otherwise disposes of those packages of
19little cigars to another stamping distributor. Only persons
20meeting the definition of "stamping distributor" contained in
21Section 10-5 of this Act may affix stamps to packages of little
22cigars containing 20 or 25 little cigars. Stamping
23distributors may not sell or dispose of little cigars at
24retail to consumers or users at locations where stamping
25distributors affix stamps to packages of little cigars
26containing 20 or 25 little cigars.
		HB4250	- 13 -	LRB104 16477 SPS 29872 b
1    (c) The impact of the tax levied by this Act is imposed
2upon distributors engaged in the business of selling tobacco
3products to retailers or consumers in this State. Whenever a
4stamping distributor brings or causes to be brought into this
5State from without this State, or purchases from without or
6within this State, any packages of little cigars containing 20
7or 25 little cigars upon which there are no tax stamps affixed
8as required by this Act, for purposes of resale or disposal in
9this State to a person not a stamping distributor, then such
10stamping distributor shall pay the tax to the Department and
11add the amount of the tax to the price of such packages sold by
12such stamping distributor. Payment of the tax shall be
13evidenced by a stamp or stamps affixed to each package of
14little cigars containing 20 or 25 little cigars.
15    Stamping distributors paying the tax to the Department on
16packages of little cigars containing 20 or 25 little cigars
17sold to other distributors, wholesalers or retailers shall add
18the amount of the tax to the price of the packages of little
19cigars containing 20 or 25 little cigars sold by such stamping
20distributors.
21    (d) Beginning on January 1, 2013, the tax rate imposed per
22ounce of moist snuff may not exceed 15% of the tax imposed upon
23a package of 20 cigarettes pursuant to the Cigarette Tax Act.
24    (e) All moneys received by the Department under this Act
25from sales occurring prior to July 1, 2012 shall be paid into
26the Long-Term Care Provider Fund of the State Treasury. Of the
		HB4250	- 14 -	LRB104 16477 SPS 29872 b
1moneys received by the Department from sales occurring on or
2after July 1, 2012, except for moneys received from the tax
3imposed on the sale of little cigars, 50% shall be paid into
4the Long-Term Care Provider Fund and 50% shall be paid into the
5Healthcare Provider Relief Fund. Beginning July 1, 2013, all
6moneys received by the Department under this Act from the tax
7imposed on little cigars shall be distributed as provided in
8Section 2 of the Cigarette Tax Act. Of the moneys received by
9the Department under this Act from sales occurring on or after
10July 1, 2025, except for moneys received from the tax imposed
11on the sale of little cigars, the first $5,000,000 collected
12in each fiscal year shall be paid into the Tobacco Settlement
13Recovery Fund for tobacco health initiatives at the Department
14of Public Health, and the remainder of the moneys collected in
15each fiscal year shall be paid as follows: 50% shall be paid
16into the Long-Term Care Provider Fund; and 50% shall be paid
17into the Healthcare Provider Relief Fund.
18(Source: P.A. 104-6, eff. 7-1-25.)
19    (35 ILCS 143/10-24 new)
20    Sec. 10-24. Remote retail seller's license. Beginning on 
21July 1, 2026, it shall be unlawful for any person to engage in 
22business as a remote retail seller within the meaning of this 
23Act without first having obtained a license to do so from the 
24Department. Application for that license shall be made to the 
25Department, by electronic means, in a form prescribed by the 
		HB4250	- 15 -	LRB104 16477 SPS 29872 b
1Department. The Department shall adopt rules to implement this 
2Section.
3    (35 ILCS 143/10-25)
4    Sec. 10-25. License actions.
5    (a) The Department may, after notice and a hearing,
6revoke, cancel, or suspend the license of any distributor, [or]
7retailer, or remote retail seller who violates any of the
8provisions of this Act, fails to keep books and records as
9required under this Act, fails to make books and records
10available for inspection upon demand by a duly authorized
11employee of the Department, or violates a rule or regulation
12of the Department for the administration and enforcement of
13this Act. The notice shall specify the alleged violation or
14violations upon which the revocation, cancellation, or
15suspension proceeding is based.
16    (b) The Department may revoke, cancel, or suspend the
17license of any distributor for a violation of the Tobacco
18Products Manufacturers' Escrow Enforcement Act of 2003 as
19provided in Section 30 of that Act.
20    (c) If the retailer has a training program that
21facilitates compliance with minimum-age tobacco laws, the
22Department shall suspend for 3 days the license of that
23retailer for a fourth or subsequent violation of the
24Prevention of Tobacco Use by Persons under 21 Years of Age and
25Sale and Distribution of Tobacco Products Act, as provided in
		HB4250	- 16 -	LRB104 16477 SPS 29872 b
1subsection (a) of Section 2 of that Act. For the purposes of
2this Section, any violation of subsection (a) of Section 2 of
3the Prevention of Tobacco Use by Persons under 21 Years of Age
4and Sale and Distribution of Tobacco Products Act occurring at
5the retailer's licensed location, during a 24-month period,
6shall be counted as a violation against the retailer.
7    If the retailer does not have a training program that
8facilitates compliance with minimum-age tobacco laws, the
9Department shall suspend for 3 days the license of that
10retailer for a second violation of the Prevention of Tobacco
11Use by Persons under 21 Years of Age and Sale and Distribution
12of Tobacco Products Act, as provided in subsection (a-5) of
13Section 2 of that Act.
14    If the retailer does not have a training program that
15facilitates compliance with minimum-age tobacco laws, the
16Department shall suspend for 7 days the license of that
17retailer for a third violation of the Prevention of Tobacco
18Use by Persons under 21 Years of Age and Sale and Distribution
19of Tobacco Products Act, as provided in subsection (a-5) of
20Section 2 of that Act.
21    If the retailer does not have a training program that
22facilitates compliance with minimum-age tobacco laws, the
23Department shall suspend for 30 days the license of a retailer
24for a fourth or subsequent violation of the Prevention of
25Tobacco Use by Persons under 21 Years of Age and Sale and
26Distribution of Tobacco Products Act, as provided in
		HB4250	- 17 -	LRB104 16477 SPS 29872 b
1subsection (a-5) of Section 2 of that Act.
2    A training program that facilitates compliance with
3minimum-age tobacco laws must include at least the following
4elements: (i) it must explain that only individuals displaying
5valid identification demonstrating that they are 21 years of
6age or older shall be eligible to purchase cigarettes or
7tobacco products and (ii) it must explain where a clerk can
8check identification for a date of birth. The training may be
9conducted electronically. Each retailer that has a training
10program shall require each employee who completes the training
11program to sign a form attesting that the employee has
12received and completed tobacco training. The form shall be
13kept in the employee's file and may be used to provide proof of
14training.
15    (d) The Department may, by application to any circuit
16court, obtain an injunction restraining any person who engages
17in business as a distributor of or remote retail seller
18tobacco products without a license (either because the [his or ]
19[her] license has been revoked, canceled, or suspended or
20because of a failure to obtain a license in the first instance)
21from engaging in that business until that person, as if that
22person were a new applicant for a license, complies with all of
23the conditions, restrictions, and requirements of Section
2410-20 or Section 10-24 of this Act and qualifies for and
25obtains a license. Refusal or neglect to obey the order of the
26court may result in punishment for contempt.
		HB4250	- 18 -	LRB104 16477 SPS 29872 b
1(Source: P.A. 104-6, eff. 6-16-25.)
2    (35 ILCS 143/10-37)
3    Sec. 10-37. Proof of payment of tax imposed by this Act.
4Every licensed distributor of tobacco products in this State
5is required to show proof of the tax having been paid as
6required by this Act by displaying its Tobacco Products
7License number on every sales invoice issued to a retailer in
8this State. No retailer shall possess tobacco products without
9either a proper invoice indicating that the tobacco products
10tax was paid by a distributor for the tobacco products in the
11retailer's possession or other proof that the tax was paid by
12the retailer if it has purchased tobacco products on which tax
13has not been paid as required by this Act. Failure to comply
14with the provisions of this paragraph may be grounds for
15revocation of a distributor's, remote retail seller's, or
16retailer's license in accordance with Section 10-25 of this
17Act or Section 6 of the Cigarette Tax Act. In addition, the
18Department may impose a civil penalty not to exceed $1,000 for
19the first violation and $3,000 for each subsequent violation,
20which shall be deposited into the Tax Compliance and
21Administration Fund.
22(Source: P.A. 100-940, eff. 8-17-18.)
23    (35 ILCS 143/10-38)
24    Sec. 10-38. Presumption for unlicensed distributors, 
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1remote retail sellers, or persons. Whenever any person obtains
2tobacco products from an unlicensed in-state or out-of-state
3distributor, remote retail seller, or person, a prima facie
4presumption shall arise that the tax imposed by this Act on
5such tobacco products has not been paid in violation of this
6Act. Invoices or other documents kept in the normal course of
7business in the possession of a person reflecting purchases of
8tobacco products from an unlicensed in-state or out-of-state
9distributor, remote retail seller, or person or invoices or
10other documents kept in the normal course of business obtained
11by the Department from in-state or out-of-state distributors, 
12remote retail sellers, or persons, are sufficient to raise the
13presumption that the tax imposed by this Act has not been paid.
14If a presumption is raised, the Department may assess tax,
15penalty, and interest on the tobacco products. In addition,
16any person who violates this Section is liable to pay to the
17Department, for deposit in the Tax Compliance and
18Administration Fund, a penalty of $1,000 for the first
19violation and $3,000 for any subsequent violation. The
20Department may adopt rules to administer the penalties under
21this Section.
22(Source: P.A. 100-940, eff. 8-17-18.)
23    (35 ILCS 143/10-45)
24    Sec. 10-45. Incorporation by reference. All of the
25provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
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15i, 5j, 6, 6a, 6b, 6c, 8, 9, 10, 11, 11a, and 12 of the
2Retailers' Occupation Tax Act, and all applicable provisions
3of the Uniform Penalty and Interest Act that are not
4inconsistent with this Act, apply to distributors and remote 
5retail sellers of tobacco products to the same extent as if
6those provisions were included in this Act. References in the
7incorporated Sections of the Retailers' Occupation Tax Act to
8retailers, to sellers, or to persons engaged in the business
9of selling tangible personal property mean distributors or 
10remote retail sellers when used in this Act. References in the
11incorporated Sections to sales of tangible personal property
12mean sales of tobacco products when used in this Act.
13    All of the provisions of Sections 7, 8, 8a, 16, 18a, 18b,
1418c, 22, 23, 24, 26, 27, and 28a of the Cigarette Tax Act which
15are not inconsistent with this Act shall apply, as far as
16practicable, to the subject matter of this Act to the same
17extent as if those provisions were included in this Act.
18References in the incorporated Sections to sales of cigarettes
19mean sales of little cigars in packages of 20 or 25 little
20cigars.
21(Source: P.A. 98-273, eff. 8-9-13.)
22    (35 ILCS 143/10-50)
23    Sec. 10-50. Violations and penalties. When the amount due
24is under $300, any distributor or remote retail seller who
25fails to file a return, willfully fails or refuses to make any
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1payment to the Department of the tax imposed by this Act, or
2files a fraudulent return, or any officer or agent of a
3corporation engaged in the business of distributing or 
4engaging in remote retail sales of tobacco products to
5retailers or [and] consumers located in this State who signs a
6fraudulent return filed on behalf of the corporation, or any
7accountant or other agent who knowingly enters false
8information on the return of any taxpayer under this Act is
9guilty of a Class 4 felony.
10    Any person who violates any provision of Section 10-20,
1110-21, [or] 10-22, or 10-24 of this Act, fails to keep books and
12records as required under this Act, or willfully violates a
13rule or regulation of the Department for the administration
14and enforcement of this Act is guilty of a Class 4 felony. A
15person commits a separate offense on each day that he or she
16engages in business in violation of Section 10-20, 10-21, [or]
1710-22, or 10-24 of this Act. If a person fails to produce the
18books and records for inspection by the Department upon
19request, a prima facie presumption shall arise that the person
20has failed to keep books and records as required under this
21Act. A person who is unable to rebut this presumption is in
22violation of this Act and is subject to the penalties provided
23in this Section.
24    When the amount due is under $300, any person who accepts
25money that is due to the Department under this Act from a
26taxpayer for the purpose of acting as the taxpayer's agent to
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1make the payment to the Department, but who fails to remit the
2payment to the Department when due, is guilty of a Class 4
3felony.
4    Any person who violates any provision of Sections 10-20,
510-21 and 10-22 of this Act, fails to keep books and records as
6required under this Act, or willfully violates a rule or
7regulation of the Department for the administration and
8enforcement of this Act is guilty of a business offense and may
9be fined up to $5,000. If a person fails to produce books and
10records for inspection by the Department upon request, a prima
11facie presumption shall arise that the person has failed to
12keep books and records as required under this Act. A person who
13is unable to rebut this presumption is in violation of this Act
14and is subject to the penalties provided in this Section. A
15person commits a separate offense on each day that he or she
16engages in business in violation of Sections 10-20, 10-21 and
1710-22 of this Act.
18    When the amount due is $300 or more, any distributor or 
19remote retail seller who files, or causes to be filed, a
20fraudulent return, or any officer or agent of a corporation
21engaged in the business of distributing or engaging in remote 
22retail sales of tobacco products to retailers or [and] consumers
23located in this State who files or causes to be filed or signs
24or causes to be signed a fraudulent return filed on behalf of
25the corporation, or any accountant or other agent who
26knowingly enters false information on the return of any
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1taxpayer under this Act is guilty of a Class 3 felony.
2    When the amount due is $300 or more, any person engaged in
3the business of distributing or engaging in remote retail 
4sales of tobacco products to retailers or [and] consumers
5located in this State who fails to file a return, willfully
6fails or refuses to make any payment to the Department of the
7tax imposed by this Act, or accepts money that is due to the
8Department under this Act from a taxpayer for the purpose of
9acting as the taxpayer's agent to make payment to the
10Department but fails to remit such payment to the Department
11when due is guilty of a Class 3 felony.
12    When the amount due is under $300, any retailer who fails
13to file a return, willfully fails or refuses to make any
14payment to the Department of the tax imposed by this Act, or
15files a fraudulent return, or any officer or agent of a
16corporation engaged in the retail business of selling tobacco
17products to purchasers of tobacco products for use and
18consumption located in this State who signs a fraudulent
19return filed on behalf of the corporation, or any accountant
20or other agent who knowingly enters false information on the
21return of any taxpayer under this Act is guilty of a Class A
22misdemeanor for a first offense and a Class 4 felony for each
23subsequent offense.
24    When the amount due is $300 or more, any retailer who fails
25to file a return, willfully fails or refuses to make any
26payment to the Department of the tax imposed by this Act, or
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1files a fraudulent return, or any officer or agent of a
2corporation engaged in the retail business of selling tobacco
3products to purchasers of tobacco products for use and
4consumption located in this State who signs a fraudulent
5return filed on behalf of the corporation, or any accountant
6or other agent who knowingly enters false information on the
7return of any taxpayer under this Act is guilty of a Class 4
8felony.
9    Any person whose principal place of business is in this
10State and who is charged with a violation under this Section
11shall be tried in the county where his or her principal place
12of business is located unless he or she asserts a right to be
13tried in another venue. If the taxpayer does not have his or
14her principal place of business in this State, however, the
15hearing must be held in Sangamon County unless the taxpayer
16asserts a right to be tried in another venue.
17    Any taxpayer or agent of a taxpayer who with the intent to
18defraud purports to make a payment due to the Department by
19issuing or delivering a check or other order upon a real or
20fictitious depository for the payment of money, knowing that
21it will not be paid by the depository, is guilty of a deceptive
22practice in violation of Section 17-1 of the Criminal Code of
232012.
24    A prosecution for a violation described in this Section
25may be commenced within 3 years after the commission of the act
26constituting the violation.
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1(Source: P.A. 100-201, eff. 8-18-17; 100-940, eff. 8-17-18.)
2    Section 99. Effective date. This Act takes effect July 1,
32026.