Other Tobacco Products Tax (7515)

Notice: A group of businesses in the tobacco industry has filed a complaint in the Circuit Court of Cook County challenging the City’s authority to impose its recently-enacted Other Tobacco Products Tax. The City has agreed to defer the July 1, 2016 implementation date of the tax so that the issues raised by the complaint can be briefed and decided on the merits, in a reasoned and measured manner, rather than on an emergency basis. If the tax is upheld by the Circuit Court, businesses will have 60 days from the date of the Court’s decision to begin collecting the tax. The Department will update this posting in accordance with developments.

Municipal Code Reference: 3-49
Procedure: The Other Tobacco Products Tax is imposed on the purchase or use of all other tobacco products within the City.
Tax Base:

The rate of the tax shall be:

(1) for smoking tobacco, $1.80 per ounce;
(2) for smokeless tobacco, $1.80 per ounce;
(3) for pipe tobacco, $0.60 per ounce;
(4) for little cigars, $0.20 per cigar; and
(5) for large cigars, $0.20 per cigar.

Exemptions, Deductions and Credits:

This tax shall not apply to the extent it would violate the United States Constitution or the Constitution of the State of Illinois.

Rulings and Procedures: Every wholesale tobacco dealer that sells OTP to a retailer or purchaser located in the City must register with the department within 30 days of effective date of this ordinance, or within 30 days of commencing business, whichever is later. If you have any questions about the Other Tobacco Products Tax or how to get registered for the tax, please contact Customer Service at 312.747.4747.

Note: There is no floor tax requirement for the Other Tobacco Products Tax.

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