New Law: E-Cigarettes Regulated And Taxed Starting July 1

Effective today (Monday, July 1, 2019), electronic cigarette retailers will be required to register with the state of Illinois under a new law that Gov. JB Pritzker is expected to sign within the next few days.

The Illinois Department of Revenue is calling on retailers to apprise themselves of the new provisions to ensure compliance with the new registration requirement.

Beginning July 1, 2019, electronic cigarette products will be regulated and taxed like other tobacco products in Illinois.

Retailers selling electronic cigarette products must obtain a Cigarette and Tobacco Products Retailer License for each of their retail locations to continue selling electronic cigarette products on July 1, 2019, and after.

Licenses can be obtained through IDOR’s MyTax Illinois web portal, available at mytax.illinois.gov. Retailers who currently have a valid Cigarette and Tobacco Products Retailer License are already in compliance.

“The new law’s requirements are specific, and retailers and distributors need to ensure that they are properly registered with the state,” said IDOR acting Director David Harris. “It is our goal at the Illinois Department of Revenue to keep all taxpayers informed about their obligations and make any interactions with our department as efficient and convenient as possible.”

It is important to note that anyone who sells electronic cigarette products to retailers, or is a retailer buying electronic cigarette products from an unlicensed out-of-state distributor, must register with IDOR as a Tobacco Products Distributor.

Tobacco distributors already licensed in Illinois are considered compliant. As with other tobacco products, the distributor is responsible for the tax and will be responsible for filing returns and remitting the tax.

To learn more about the licensing requirements for selling electronic cigarette or other tobacco products, please read IDOR’s electronic cigarette Informational Bulletin and Frequently Asked Questions (FAQs) located on IDOR’s website tax.illinois.gov.

SOURCE: state of Illinois news release