Considering becoming a vape vending machine host in Illinois? Familiarize yourself with the current state laws to ensure compliance and successful operations. Here's a quick breakdown of current state regulations for vapor products, vape machines, and sales.Whether you're a retailer, entrepreneur, or operator, understanding these regulations is essential not only for compliance but also for safeguarding your investment. Below is a detailed guide that breaks down the current rules, requirements, and best practices for operating a vape vending machine in Illinois.

1. Business Formation

To operate any vending machine legally, including those dispensing vapor or nicotine pouch products, you must first establish a legal business entity.

• Step 1: Register your business with the Illinois Secretary of State.
  • https://www.ilsos.gov
  • LLCs and Corporations must file Articles of Organization/Incorporation.
  • You’ll receive a file number, which will be needed for tax registration.
• Step 2: Obtain a Federal Employer Identification Number (EIN) from the IRS.
  • https://irs.gov

2. Retail Tobacco License for Vape/Nicotine Products

Required for each vending location that sells vapor or nicotine products.

“A retail license issued by the Illinois Department of Revenue is required for all retailers of tobacco products… A separate license is required for each place of business.”
— 35 ILCS 143/10-21

• Fee: $75 per location, annually.
• Issued by: Illinois Department of Revenue – Cigarette and Tobacco Products Division
• Form: Form RC-1: Cigarette and Tobacco Products License Application
• Processing Time: Typically 2–3 weeks

3. Vending Machine Decals & Sales Tax Registration

You must register as a retailer with IDOR to collect and remit sales tax and obtain STS-80 vending machine decals.

“Anyone operating a vending machine must register with the Illinois Department of Revenue to collect and remit Sales Tax… Decals are required on each vending machine dispensing items for consumption.”
— Illinois Department of Revenue Guidance

• Registration Link: MyTax Illinois Registration Portal
• Form for Vending Machines: STS-80 - Request for Vending Machine Decals
• Fee: None for registration, but decals must be displayed on each machine.

4. Placement Restrictions for Vape Vending Machines

Under 720 ILCS 675/1(b), vape and nicotine products may only be vended from machines located in:

1. Bars or 21+ clubs (where persons under 21 are never allowed), OR
2. On-premise liquor establishments where:

• • • Alcohol is sold and consumed, AND
    • The machine is under direct supervision of the owner/manager at all times

“Tobacco and alternative nicotine products may be sold through a vending machine only if… in places where persons under 21 years of age are not permitted at any time; or places where alcoholic beverages are sold and consumed on the premises and vending machine operation is under the direct supervision of the owner or manager.”
— 720 ILCS 675/1(b)

5. Excise Tax on Vape Products

“Electronic cigarettes are taxed at the rate of 15% of the wholesale price.”
— 35 ILCS 143/10-10(a)

• Applies to all vapor products, including those containing nicotine or cannabis-derived compounds.
• Collected at wholesale level, but retailers should verify invoices reflect this.
• Keep records for IDOR audits.

6. Additional Required Notices & Compliance

➤ Age-Restriction Signage:

• Clearly posted signs required at point of sale and/or on the vending machine.
• Must include:

“THE SALE OF TOBACCO OR ALTERNATIVE NICOTINE PRODUCTS TO PERSONS UNDER 21 YEARS OF AGE IS PROHIBITED.”

➤ Forbidden Additives in Vape Products:

“Electronic cigarettes sold in Illinois may not include any of the following additives:

• Polyethylene glycol (PEG)
• Vitamin E acetate”

— Illinois Department of Public Health

7. State Regulatory Agencies

• Licensing & Tax Collection:
  Illinois Department of Revenue
  https://www2.illinois.gov/rev
  Phone: (800) 732-8866
• Product Safety / Additive Bans:
  Illinois Department of Public Health
  https://www.dph.illinois.gov

8. City and Municipal Regulations

You must verify with local authorities:

• Chicago: Vaping product sales are restricted under municipal code § 4-64-598 and flavored products are banned. Contact Chicago Business Affairs and Consumer Protection (BACP).
• Cook County: May impose additional licensing fees or restrict vending placement.

Check with your city or county clerk for local vending ordinances, zoning laws, or tobacco control regulations.

Disclaimer: This page is intended for informational purposes only and should not be considered legal advice. Consult official  Illinois government resources for the most current regulations.