“Little cigar” means and includes any roll, made wholly or in part of tobacco, where such roll has an integrated cellulose acetate filter and weighs less than 4 pounds per thousand and the wrapper or cover of which is made in whole or in part of tobacco.
Legal Challenge: Cigar Association of America v. Hamer
Background of the Case
Cigar Association of America v. Hamer, Cook County, 12 L 51033 was decided in December 2012. This case revolved around a trade association contesting Illinois’ definition of a “cigarette”, arguing it was constitutionally invalid due to vagueness.
Previous Definition of Cigarette in Illinois
In Illinois, a cigarette was defined as any roll containing tobacco suitable for smoking, or if it met two of the following criteria:
The product is sold in packs similar to cigarettes
The product is available for sale in cartons of ten packs
The product is sold in soft packs, hard packs, flip-top boxes, clam shells, or other cigarette-type boxes
The product is of a length and diameter similar to commercially manufactured cigarettes
The product has a cellulose acetate or other integrated filter
The product is marketed or advertised to consumers as a cigarette or cigarette substitute
Other evidence that the product fits within the definition of cigarette
The association successfully argued that this definition was too broad and obtained an injunction.
Redefining “Cigarette” for Taxation Purposes
In response to the court’s decision, Illinois worked to redefine what qualifies as a “cigarette” because this classification determines tax liability. The Illinois Department of Revenue issued several bulletins and eventually reached a consensus in July:
A cigarette is now defined as it was before the 2012 amendment.
Stamping Requirements Under the Tobacco Products Tax Act
The Tobacco Products Tax Act includes the following stipulations:
Packages of Little Cigars Containing 20 or 25 Sticks
Must be affixed with a cigarette tax stamp
Stamping must be performed by a “stamping distributor”
Stamping procedure mirrors that of the Cigarette Tax Act and Cigarette Use Tax Act
Packages with Quantities Other than 20 or 25 Sticks
Do not require stamps
The stamping distributor must pay tax using:
Form RC-55: Unstamped Little Cigar Sticks Tax Return
Frequently Asked Questions
What qualifies as a “little cigar” under Illinois law?
A “little cigar” is defined as any roll made wholly or partly of tobacco that includes an integrated cellulose acetate filter, weighs less than 4 pounds per thousand units, and has a wrapper made at least partially of tobacco.
Why was the definition of a cigarette challenged in court?
The Cigar Association of America argued that Illinois’ previous definition of a “cigarette” was unconstitutionally vague. The overly broad criteria made it difficult for manufacturers and distributors to know which products were subject to regulation and taxation.
How did the Illinois court ruling affect taxation?
The court’s decision prompted Illinois to revise its definition of a “cigarette” to provide clarity. The updated definition directly impacts which tobacco products require tax stamps and how taxes are calculated and reported.
Do little cigars require cigarette tax stamps?
Yes, but only if the package contains 20 or 25 sticks. These packages must have cigarette tax stamps affixed by licensed stamping distributors in accordance with Illinois law.
What if a package contains a different number of little cigars?
Packages with counts other than 20 or 25 sticks do not require tax stamps. However, distributors must still pay applicable taxes using Form RC-55: Unstamped Little Cigar Sticks Tax Return.
