Illinois DOR Proposes Amendments to Rules Governing Tobacco Products Tax

The Illinois Department of Revenue (DOR) proposed amendments to regulations under the Tobacco Products Tax Act of 1995. The proposed amendments update provisions related to the taxation of tobacco products, including expanding the definition of tobacco products to include nicotine products, increasing the tax rate to 45 percent for all tobacco products effective July 1, 2025, modifying reporting requirements, revising recordkeeping rules, and adding procedures for seizure and forfeiture of tobacco products. Comments on the proposed rules are due by Feb. 2, 2026. [Ill. Dep’t of Revenue, Proposed Regs. Sections 660.5, et al., 12/19/25 Ill. Reg.]