ADMINISTRATIVE CODE TITLE 86: REVENUE CHAPTER I: DEPARTMENT OF REVENUE PART 660 TOBACCO PRODUCTS TAX ACT OF 1995 SECTION 660.20 RETURNS
Section 660.20 Returns
a) Every distributor of tobacco products shall, on or before the 15th day of each calendar month, file a return with the Department covering the preceding calendar month. For reporting periods through June 30, 2025, the return shall disclose the wholesale price for all tobacco products other than moist snuff and little cigars and the quantity of moist snuff sold or otherwise disposed of and other information that the Department may reasonably require. Beginning with the July 2025 reporting period due August 15, 2025, the return shall disclose the wholesale price for all tobacco products, including moist snuff, sold or otherwise disposed of and other information that the Department may reasonably require. Information that the Department may reasonably require includes information related to the uniform regulation and taxation of tobacco products. [35 ILCS 143/10-30]
b) For reporting periods up to and including December 31, 2024, the following information shall be reported:
1) The wholesale price for tobacco products, excluding little cigars and moist snuff, manufactured and then sold or otherwise disposed of.
2) The wholesale price for tobacco products, excluding little cigars and moist snuff, purchased and then sold or otherwise disposed of.
3) The total cost of all tobacco products, excluding little cigars and moist snuff, sold or otherwise disposed of.
4) Deductions authorized by law on tobacco products, excluding little cigars and moist snuff.
5) Tobacco products tax base, excluding little cigars and moist snuff.
6) Total tax based on percentage of wholesale price on tobacco products, excluding little cigars and moist snuff.
7) Total quantity in ounces and fractional ounces of moist snuff purchased and then sold or otherwise disposed of.
8) Deductions authorized by law on moist snuff.
9) Total tax on moist snuff.
10) In addition to the items listed in subsections (a)(1) through (9):
A) The quantity of little cigars purchased and sold or otherwise disposed of.
B) The quantity of packages of little cigars containing 20 or 25 little cigars.
C) Deductions authorized by law on little cigars.
D) Total tax on little cigars.
1) The total amount of tobacco products, excluding little cigars, sold or otherwise dispersed to all customers as reported on the supporting schedules;
A) For tobacco products (OTP), other than little cigars, and electronic cigarettes (E-cigs), the total amount shall be reported as the total wholesale price reflecting the value of each product times the quantity of the number of products; and
B) For moist snuff (MS), the total amount shall be reported as the total ounces reflecting the number of products sold times the total weight/volume of the product.
2) Any deductions authorized by law on tobacco products, excluding little cigars. Such deductions include in-State returns from customers located within this State for which tax was previously paid.
A) For OTP and E-cigs, the total amount shall be reported as summed total of wholesale prices listed on all supporting schedules for returned tobacco products, excluding little cigars; and
B) For MS, the total amount shall be reported as the summed total ounces listed on all supporting schedules for returned MS.
3) Exempt transactions, including sales to:
B) licensed distributors or wholesalers, who will purchase for resale and not sell to retailers, consumers, or end users;
C) the military, government, or other exempt transactions; and
D) interstate commerce or out-of-State sales.
4) In addition to the items listed in (c)(1) through (3), each stamping distributor shall report:
A) the quantity of little cigars, purchased and sold or otherwise disposed of;
B) the quantity of packages of little cigars containing 20 or 25 little cigars [35 ILCS 143/10-30(b)];
C) any deductions authorized by law on little cigars; and
D) the total tax on little cigars.
5) Failure to provide the information related to the uniform regulation and taxation of tobacco products as required under this subsection (c), may subject the return and supporting schedule to be considered unprocessable and may subject the filer to penalties and interest for failure to file. Repeated violations may also result in license revocation pursuant to Section 10-25 of the Act. Such information includes tobacco products received and disbursed as follows:
A) received from a manufacturer or first importer;
B) received from a person other than a manufacturer or first importer (e.g., wholesaler, distributor, or other licensee);
C) received from a retailer or end user;
D) received by a manufacturer or first importer from a person other than a manufacturer or first importer (e.g., returned product);
E) disbursed by a manufacturer or first importer;
F) disbursed to a person other than a manufacturer or first importer (e.g., wholesaler, distributor, or other licensee);
G) disbursed to a retailer or end user; and
H) returned to the manufacturer.
6) Falsifying any of the information related to the uniform regulation and taxation of tobacco products as required under this subsection (c), may subject the return and supporting schedule to be considered unprocessable and may subject the filer to penalties and interest for failure to file. Repeated violations may also result in license revocation pursuant to Section 10-25 of the Act.
d) Beginning with the July 2025 reporting period due August 15, 2025, and all returns thereafter, each return shall include information related to the uniform regulation and taxation of tobacco products. [35 ILCS 143/10-30] Such information shall include the following:
1) The total amount of tobacco products, excluding little cigars, sold or otherwise dispersed to all customers as reported on the supporting schedules. For tobacco products (OTP), including electronic cigarettes (E-cigs) and moist snuff (MS), the total amount shall be reported as the total wholesale price reflecting the value of each product times the quantity of the number of products.
2) Any deductions authorized by law on tobacco products, excluding little cigars. Such deductions include in-State returns from customers located within this State for which tax was previously paid. The total amount shall be reported as summed total of wholesale prices listed on all supporting schedules for returned tobacco products, excluding little cigars.
3) Exempt transactions, including sales to:
A) Native American entities, including transactions to a Native American tribe, band, nation, pueblo, village, or community that the Secretary of the Interior acknowledges to exist as a Native American tribe pursuant to the Federally Recognized Indian Tribe List Act of 1994 [25 U.S.C. 479a];
B) licensed distributors or wholesalers, who will purchase for resale and not sell to retailers, consumers, or end users;
C) the military, government, or other exempt transactions; and
D) interstate commerce or out-of-State sales.
4) In addition to the items listed in (d)(1) through (3), each stamping distributor shall report:
A) the quantity of little cigars, purchased and sold or otherwise disposed of;
B) the quantity of packages of little cigars containing 20 or 25 little cigars [35 ILCS 143/10-30(b)];
C) any deductions authorized by law on little cigars; and
D) the total tax on little cigars.
5) Failure to provide the information related to the uniform regulation and taxation of tobacco products as required under this subsection (d), may subject the return and supporting schedule to be considered unprocessable and may subject the filer to penalties and interest for failure to file. Repeated violations may also result in license revocation pursuant to Section 10-25 of the Act. Such information includes tobacco products received and disbursed as follows:
A) received from a manufacturer or first importer;
B) received from a person other than a manufacturer or first importer (e.g., wholesaler, distributor, or other licensee);
C) received from a retailer or end user;
D) received by a manufacturer or first importer from a person other than a manufacturer or first importer (e.g. returned product);
E) disbursed by a manufacturer or first importer;
F) disbursed to a person other than a manufacturer or first importer (e.g., wholesaler, distributor, or other licensee);
G) disbursed to a retailer or end user; and
H) returned to the manufacturer.
6) Falsifying any of the information related to the uniform regulation and taxation of tobacco products as required under this subsection (d), may subject the return and supporting schedule to be considered unprocessable and may subject the filer to penalties and interest for failure to file. Repeated violations may also result in license revocation pursuant to Section 10-25 of the Act.
e) Payment of the tax in the amount disclosed by the return shall accompany the return. Taxpayers whose annual liability is $20,000 or more for the preceding calendar year are required to make payments of tax by Electronic Funds Transfer as provided in 86 Ill. Adm. Code 750. For purposes of this subsection, the term "annual tax liability" means, for a taxpayer that incurs a tax liability under the Retailers' Occupation Tax Act, Service Occupation Tax Act, Use Tax Act, Service Use Tax Act, or any other State or local occupation or use tax law that is administered by the Department (which includes the Act), the sum of the taxpayer's liabilities under the Retailers' Occupation Tax Act, Service Occupation Tax Act, Use Tax Act, Service Use Tax Act, and all other State and local occupation and use tax laws administered by the Department for the immediately preceding calendar year. [20 ILCS 2505/2505-210(c)]
f) Tobacco products "otherwise disposed of" include samples of tobacco products. Transfers of tobacco products between divisions of a corporation that have separate Illinois Business Tax numbers are required to be reported as sales under "otherwise disposed of."
g) All returns and supporting schedules required to be filed and all payments required to be made under Section 10-30 of the Act shall be by electronic means in the form prescribed by the Department. [35 ILCS 143/10-30(d)]
(Source: Amended at 50 Ill. Reg. 8384, effective June 1, 2026) |