Bill
HB 4250
Requires remote tobacco sellers to obtain an Illinois license and pay a 45% wholesale tax on sales to Illinois customers, effective July 1, 2026.
Status snapshot
- Bill number: HB 4250
- Introduced by: Rep. Maurice A. West, II (filed with Clerk 2025-12-18)
- Introduced/Filed: March–December 2025 (record shows March 10 filing and later clerical filing)
- Key action: Read first time; referred to committee.
- Stated effective date for provisions: July 1, 2026 (if enacted)
Note on source documents
- The materials provided include text from two different bills (a Michigan “public library freedom to read act” and an Illinois revenue bill). This summary focuses on the Illinois Tobacco Products Tax Act amendments in HB 4250 (remote seller provisions). Verify the official enrolled bill for final language.
Purpose and intent
- To extend Illinois tobacco-product tax rules to “remote retail sellers” and require licensing of remote sellers. The bill imposes a tax on tobacco products sold remotely to Illinois retailers or consumers and makes conforming changes to the Tobacco Products Tax Act of 1995.
Key provisions
- New licensing requirement: Beginning July 1, 2026, anyone conducting business as a “remote retail seller” of tobacco products must obtain a license from the Illinois Department of Revenue before engaging in that business.
- Tax on remote sales: Beginning July 1, 2026, remote retail sellers are taxable at a rate equal to 45% of the wholesale price of tobacco products sold or otherwise disposed of to retailers or consumers located in Illinois.
- Definition: “Remote retail seller” is defined as a person (located inside or outside Illinois) who makes remote retail sales (the bill adds a new Section 10‑24 to the Tobacco Products Tax Act).
- Conforming amendments: The bill amends multiple sections (10‑5, 10‑10, 10‑25, 10‑30, 10‑35, 10‑37, 10‑38, 10‑45, and 10‑50) to align statutory definitions and enforcement provisions with the new remote-seller rules.
- Effective date: The tax and licensing requirements take effect July 1, 2026.
Who is affected
- Remote retail sellers: Out-of-state and in-state merchants who sell tobacco products remotely (e.g., by mail, online, or other remote channels) to Illinois customers must obtain licenses and remit the 45% wholesale tax on products delivered to Illinois.
- Illinois retailers and consumers: Potentially higher prices or changes in availability, depending on whether remote sellers pass tax costs to buyers.
- Department of Revenue: Responsible for licensing, collection, enforcement, and administration of the new tax and licensing regime.
- Manufacturers/distributors/wholesalers: May face compliance and reporting adjustments, and the bill includes conforming changes affecting other tax and distribution roles.
Potential impacts and considerations
- Revenue: The 45% wholesale-price tax on remote sales is intended to increase state tobacco tax collections and reduce tax-driven price advantages for remote sellers versus in-state sellers.
- Compliance burden: Remote sellers (especially small or out-of-state merchants) will face new administrative requirements (licensing, tax filings).
- Enforcement: The bill relies on the Department of Revenue to implement licensing and collection; effectiveness depends on enforcement capacity and coordination (e.g., identifying remote sellers).
- Legal and market issues: Defining “wholesale price” for remote transactions, interstate commerce concerns, and possible effects on online marketplaces may prompt further regulatory or legal clarification.
Next steps / procedural timeline
- The bill must clear committee(s), pass both legislative chambers, and be signed by the Governor to become law. If enacted as introduced, key provisions would be effective July 1, 2026.
For accuracy
- Because the submitted packet combined unrelated legislative texts, consult the official Illinois General Assembly bill page or the enrolled bill text for final, authoritative language before taking action or making compliance determinations.
Compiled from official sources — confirm details with the bill’s official record.
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