IL HB2780

Imposes a tax cap of $0.50 per cigar or rolled tobacco product effective January 1, 2022.

Establishes remote retail seller tax liability beginning July 1, 2025, at 36% of actual cost paid or actual cost list price for cigars and pipe tobacco sold to Illinois consumers.

Requires remote retail sellers to obtain an annual $75 license from the Department of Revenue and implement third-party age verification for sales.

Provides distributors a 2% discount on tax liability, not to exceed $2,000 per return, to cover administrative expenses.

Mandates remote retail sellers file monthly returns and maintain records of tobacco products sold, with original invoices retained for 365 days.