Section 660.5  Nature and Rate of Tobacco Products Tax

a)         The Tobacco Products Tax is imposed upon the last distributor, as defined in Section 660.10, who sells tobacco products to a retailer or consumer located in Illinois at the rate of 18% of the wholesale price of tobacco products sold or otherwise disposed of in this State.

b)         The tax is in addition to all other occupation or privilege taxes imposed by the State of Illinois, by any political subdivision thereof, or by any municipal corporation.  (Section 10-10 of the Act)

c)         A retailer is required to register as a distributor, file returns and pay the Tobacco Products Tax imposed by the Act on all sales of tobacco products on which the tax has not been paid unless the sales are exempt under Section 660.30.  (See Sections 660.15, 660.20 and 660.30.)

d)         The Tobacco Products Tax is paid on the wholesale price.  The wholesale price is the established list price for which a manufacturer sells tobacco products to a distributor, or for which the last distributor sells tobacco products to a retailer or consumer located in Illinois, before the allowance of any discounts, trade allowances, rebates or other reductions.  Surcharges added by manufacturers or distributors are considered part of the wholesale price subject to tax.

1)         The wholesale price for purposes of imposing the Tobacco Products Tax on the last distributor is the invoice price at which tobacco products are sold by the last distributor before the allowance of any discounts, trade allowances, rebates or other reductions.  Surcharges added by distributors are considered part of the wholesale price subject to tax.

2)         The wholesale price for purposes of imposing the tax on a retailer who receives or purchases tobacco products on which the tax has not been paid or will not be paid by a licensed distributor is the invoice price paid by the retailer to an unlicensed distributor or other supplier of tobacco products before the allowance of any discounts, trade allowances, rebates or other reductions.  Surcharges added by manufacturers, distributors or other suppliers are considered part of the wholesale price subject to tax.

e)         Whenever any sales invoice issued by a supplier to a retailer for tobacco products sold to the retailer does not comply with the requirements of Section 660.25(d) and (e), a prima facie presumption shall arise that the tax imposed by Section 10-10 of the Act and this Section has not been paid on the tobacco products listed on the sales invoice. A retailer that is unable to rebut this presumption is in violation of both the Act and this Part and is subject to the penalties provided in Section 10-50 of the Act.

(Source:  Amended at 34 Ill. Reg. 12972, effective August 19, 2010)