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Illinois: Changes to Taxation of Moist Snuff Tobacco


The Illinois Department of Revenue is changing how it defines and taxes tobacco products known as moist snuff. Tobacco products meeting the new definition of moist snuff will be taxed based on weight rather than wholesale price, beginning January 1, 2013. The new tax rate on moist snuff is $0.30 per ounce.

According to a November informational bulletin, effective January 1, 2013:

"'[M]oist snuff' means any finely cut, ground, or powdered tobacco that is not intended to be smoked, but shall not include any finely cut, ground, or powdered tobacco that is intended to be placed in the nasal cavity."

In other words, moist snuff is placed in the mouth -- most commonly between the lip and the gum -- where it dissolves. It is also known as dipping tobacco or rub.

Form TP-1, Tobacco Products Tax Return, now includes a new section for the separate reporting of moist snuff. It's due "on or before the 15th day of each month" and must include any and all transactions made during the preceding month. The DOR reminds that all vendors of tobacco must file monthly tobacco products returns, even if no sales were made.

Completed returns, schedules and payments should be mailed to:

Alcohol, Tobacco, and Fuel Division
Illinois Department of Revenue
PO Box 19019
Springfield IL 62794-9019

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.