Section 440.20  Tax – How Paid

a)         Except as provided in subsection (b), payment of the tax imposed by the Act shall be evidenced by a stamp or alternative tax indicia affixed to each "original package" of cigarettes.  Stamps are sold only to distributors by the Department at a discount (explained in more detail in Section 440.90 of this Part), when purchased according to law, in denominations evidencing payment of the tax on packages of  20 and 25 cigarettes.  

b)         Illinois cigarette manufacturers who place their cigarettes in original packages contained inside a sealed transparent wrapper, and similar out-of-state cigarette manufacturers who elect to qualify and are accepted by the Department as distributors under Section 4b of the Act, shall pay the taxes imposed by the Act by remitting the amount of the taxes, less the discount explained in Section 440.90, to the Department by the 5^th day of each month, covering cigarettes shipped or otherwise delivered in Illinois to purchasers during the preceding calendar month.  The manufacturers of cigarettes in original packages contained inside a sealed transparent wrapper, before delivering the cigarettes or causing the cigarettes to be delivered in this State to purchasers, shall evidence their obligation to remit the taxes due with respect to the cigarettes by imprinting language to be prescribed by the Department on each original package of cigarettes underneath the sealed transparent outside wrapper of the original package, in a place on the package and in such manner as the Department may designate. The imprinted language shall acknowledge the manufacturer's payment of, or liability for, the tax imposed by the Act with respect to the distribution of those cigarettes.

c)         The Department may refuse to sell cigarette revenue stamps to any person who does not comply with the provisions of the Cigarette Tax Act.

(Source:  Amended at 42 Ill. Reg. 23174, effective November 29, 2018)