Definition of “Little Cigar”
“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
Contact for Illinois Little Cigar Tax Audit
📞 (888) 577-1482