98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB5550

 

Introduced , by Rep. Brad E. Halbrook

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 143/10-10

    Amends the Tobacco Products Tax Act. Provides that the tax on cigars may not exceed $0.50 per cigar.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Tobacco Products Tax Act of 1995 is amended
5by changing Section 10-10 as follows:
 
6    (35 ILCS 143/10-10)
7    Sec. 10-10. Tax imposed.
8    (a) Except as otherwise provided in this Section with
9respect to little cigars, on the first day of the third month
10after the month in which this Act becomes law, a tax is imposed
11on any person engaged in business as a distributor of tobacco
12products, as defined in Section 10-5, at the rate of (i) 18% of
13the wholesale price of tobacco products sold or otherwise
14disposed of to retailers or consumers located in this State
15prior to July 1, 2012 and (ii) 36% of the wholesale price of
16tobacco products sold or otherwise disposed of to retailers or
17consumers located in this State beginning on July 1, 2012;
18except that, beginning on January 1, 2013, the tax on moist
19snuff shall be imposed at a rate of $0.30 per ounce, and a
20proportionate tax at the like rate on all fractional parts of
21an ounce, sold or otherwise disposed of to retailers or
22consumers located in this State. Notwithstanding any other
23provision of law, the tax on cigars, other than little cigars,

 

 

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1may not exceed $0.50 per cigar. The tax is in addition to all
2other occupation or privilege taxes imposed by the State of
3Illinois, by any political subdivision thereof, or by any
4municipal corporation. However, the tax is not imposed upon any
5activity in that business in interstate commerce or otherwise,
6to the extent to which that activity may not, under the
7Constitution and Statutes of the United States, be made the
8subject of taxation by this State, and except that, beginning
9July 1, 2013, the tax on little cigars shall be imposed at the
10same rate, and the proceeds shall be distributed in the same
11manner, as the tax imposed on cigarettes under the Cigarette
12Tax Act. The tax is also not imposed on sales made to the
13United States or any entity thereof.
14    (b) Notwithstanding subsection (a) of this Section,
15stamping distributors of packages of little cigars containing
1620 or 25 little cigars sold or otherwise disposed of in this
17State shall remit the tax by purchasing tax stamps from the
18Department and affixing them to packages of little cigars in
19the same manner as stamps are purchased and affixed to
20cigarettes under the Cigarette Tax Act, unless the stamping
21distributor sells or otherwise disposes of those packages of
22little cigars to another stamping distributor. Only persons
23meeting the definition of "stamping distributor" contained in
24Section 10-5 of this Act may affix stamps to packages of little
25cigars containing 20 or 25 little cigars. Stamping distributors
26may not sell or dispose of little cigars at retail to consumers

 

 

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1or users at locations where stamping distributors affix stamps
2to packages of little cigars containing 20 or 25 little cigars.
3    (c) The impact of the tax levied by this Act is imposed
4upon distributors engaged in the business of selling tobacco
5products to retailers or consumers in this State. Whenever a
6stamping distributor brings or causes to be brought into this
7State from without this State, or purchases from without or
8within this State, any packages of little cigars containing 20
9or 25 little cigars upon which there are no tax stamps affixed
10as required by this Act, for purposes of resale or disposal in
11this State to a person not a stamping distributor, then such
12stamping distributor shall pay the tax to the Department and
13add the amount of the tax to the price of such packages sold by
14such stamping distributor. Payment of the tax shall be
15evidenced by a stamp or stamps affixed to each package of
16little cigars containing 20 or 25 little cigars.
17    Stamping distributors paying the tax to the Department on
18packages of little cigars containing 20 or 25 little cigars
19sold to other distributors, wholesalers or retailers shall add
20the amount of the tax to the price of the packages of little
21cigars containing 20 or 25 little cigars sold by such stamping
22distributors.
23    (d) Beginning on January 1, 2013, the tax rate imposed per
24ounce of moist snuff may not exceed 15% of the tax imposed upon
25a package of 20 cigarettes pursuant to the Cigarette Tax Act.
26    (e) All moneys received by the Department under this Act

 

 

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1from sales occurring prior to July 1, 2012 shall be paid into
2the Long-Term Care Provider Fund of the State Treasury. Of the
3moneys received by the Department from sales occurring on or
4after July 1, 2012, except for moneys received from the tax
5imposed on the sale of little cigars, 50% shall be paid into
6the Long-Term Care Provider Fund and 50% shall be paid into the
7Healthcare Provider Relief Fund. Beginning July 1, 2013, all
8moneys received by the Department under this Act from the tax
9imposed on little cigars shall be distributed as provided in
10subsection (a) of Section 2 of the Cigarette Tax Act.
11(Source: P.A. 97-688, eff. 6-14-12; 98-273, eff. 8-9-13.)