Chicago Liquid Nicotine Tax

Chicago imposed liquid nicotine tax on the sale of liquid nicotine products in the city starting January 1, 2016. The tax is to be collected by wholesale liquid nicotine companies.

Who must file?

• All retailers of fluid nicotine items must file a Floor Tax return at the very latest January 25, 2016.
• All wholesale distributors of e-cigarette liquid nicotine items must register with Chicago Department of Finance to start collecting the tax starting on January 1, 2016.

What is the tax rate?

• The tax rate is $0.80 per product unit, plus additional $0.55 per liquid milliliter of nicotine liquid or gel.

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