Illinois Administrative Code › Title 86 - REVENUE › Part 660 - TOBACCO PRODUCTS TAX ACT OF 1995 › Section 660.30 - Exempt Sales

Current through Register Vol. 48, No. 28, July 12, 2024
a) Sales of
			 tobacco products, excluding little cigars, by distributors or wholesalers who
			 will not sell the product to a retailer or consumer are exempt from the tax
			 imposed by the Act. For example, sales by a distributor to another distributor
			 as sales for resale are exempt from the tax imposed by the Act. Sales of
			 tobacco products to retailers or consumers are not exempt sales (unless the
			 retailer is a registered distributor; see subsection (f)).
b)
The tax is not imposed upon any
			 activity in
the business as a distributor in
interstate
			 commerce or otherwise, to the extent to which that activity may not, under the
			 Constitution and Statutes of the United States, be made the subject of taxation
			 by this State.
(Section 10-10 of the Act) Sales of tobacco products,
			 excluding little cigars, delivered by a distributor to persons located outside
			 of Illinois are exempt from the tax imposed by the Act.
c) Sales of tobacco products, excluding
			 little cigars, to retailers who will deliver the tobacco products outside of
			 Illinois are exempt.
d) The tax
			 imposed by the Act shall not apply to sales or other disposition of tobacco
			 products to the United States Government or any entity of the United States
			 government. For instance, sales of tobacco products to U.S. Veterans' Hospitals
			 and U.S. Military personnel through officially recognized agencies physically
			 located at military bases are exempt from the tax imposed by the Act.
e) The tax imposed by the Act shall not apply
			 to sales of tobacco products to penal institutions for use in a Correctional
			 Industries program that makes, manufactures, or fabricates tobacco products for
			 sale to residents incarcerated in penal institutions or resident patients of a
			 State operated mental health facility. However, sales of tobacco products to a
			 penal institution that will sell tobacco products through its commissary are
			 taxable.
f) Under certain
			 circumstances, a blanket Certificate of Resale may be provided by a purchaser
			 to a distributor. These circumstances include the following:
1) Retailers who purchase tobacco products,
			 excluding little cigars, for delivery outside of Illinois are exempt under
			 subsection (c). However, when the retailer may deliver tobacco products,
			 excluding little cigars, outside of Illinois but may deliver some within
			 Illinois and when it is impracticable, at the time of purchasing the tobacco
			 products, for the retailer to determine in which way he or she will dispose of
			 the tobacco products, the retailer may certify to the distributor that he or
			 she is buying all of the tobacco products, excluding little cigars, for resale
			 and provide a blanket Certificate of Resale to the distributor. A retailer may
			 provide such a certificate only if he or she is registered as a distributor
			 under the Act and agrees to assume responsibility for reporting and remitting
			 tax on his or her taxable Illinois sales (e.g., sales to consumers or
			 retailers).
2) Often times, a
			 distributor registered under the Act will also sell tobacco products to
			 consumers. This distributor may similarly find it impracticable, at the time of
			 purchasing the tobacco products, to determine in which way he or she will
			 dispose of the tobacco products. Consequently, except for little cigars, the
			 distributor may provide the selling distributor with a blanket Certificate of
			 Resale and assume responsibility for reporting and remitting tax on his or her
			 taxable sales to consumers.