Illinois lawmakers are considering legislation that would significantly tighten the regulation of remote tobacco and nicotine sales into the state. H.B. 4250 would amend the Tobacco Products Tax Act of 1995 to require any remote retail seller — including out-of-state companies — to obtain a state license before selling tobacco products to Illinois retailers or consumers, with implementation targeted for July 1, 2026.
If enacted, H.B. 4250 would also impose a 45% tax on the wholesale price of tobacco products sold remotely, capturing online and mail-order transactions that policymakers argue have escaped traditional enforcement. The proposal reflects Illinois’ broader push to close regulatory gaps around e-commerce, following recent actions restricting direct-to-consumer shipments of vaping products and expanding tobacco controls.
