IL SB2338

Increases the tobacco products tax rate from 36% to 45% of the wholesale price for products sold to Illinois retailers or consumers, effective July 1, 2025

Expands the definition of "electronic cigarette" to include any device that delivers aerosolized or vaporized nicotine, including e-cigarettes, e-cigars, e-pipes, vape pens, and e-hookahs, along with components, parts, accessories, and substances intended for use in such devices

Broadens the definition of "tobacco products" to include any product containing, made of, or derived from tobacco or nicotine intended for human consumption, including snus, waterpipe tobacco, and nicotine pouches

Allocates revenue from sales on or after July 1, 2025 as follows: 35% to the Long-Term Care Provider Fund, 35% to the Healthcare Provider Relief Fund, and 30% to the State Tobacco Control Program for health promotion and tobacco use reduction efforts

Doubles the annual retailer's license fee from $75 to $150, with proceeds deposited into the Tax Compliance and Administration Fund for tobacco retail inspection and contraband enforcement