IL SB3123

Caps the tax on cigars and other rolled tobacco products at $0.50 per cigar or roll, effective January 1, 2021, regardless of the wholesale price-based tax rate that would otherwise apply

Amends the Tobacco Products Tax Act of 1995, which currently imposes a 36% wholesale price tax on most tobacco products sold to Illinois retailers and consumers

Provides tobacco product distributors a 2% discount on their tax liability to cover administrative costs of recordkeeping, filing returns, and remitting taxes

Limits the distributor discount to a maximum of $2,000 per monthly return

Existing tax structures remain in place for other tobacco products, including moist snuff ($0.30 per ounce), electronic cigarettes (15% of wholesale price), and little cigars (taxed at cigarette rates)