HB3112 Summary

• Amends the Tobacco Products Tax Act of 1995 to expand the definition of "distributor" to include retailers maintaining a place of business in Illinois as described in the Use Tax Act, effective January 1, 2024.

• Caps the tax on cigars and other rolled tobacco products at $0.50 per cigar or roll beginning January 1, 2024, excluding little cigars from this cap.

• Provides distributors a 2% discount on their tax liability to reimburse administrative expenses, with a maximum discount of $2,000 per monthly return.

• Clarifies that distributors remitting tax to the Department may deduct the allowable discount from their reported tax liability when filing monthly returns.