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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 Cigarette Tax Act is amended by changing
5Sections 1 and 2 as follows:
 
6    (35 ILCS 130/1)  (from Ch. 120, par. 453.1)
7    Sec. 1. For the purposes of this Act:
8    "Brand Style" means a variety of cigarettes distinguished
9by the tobacco used, tar and nicotine content, flavoring used,
10size of the cigarette, filtration on the cigarette or
11packaging.
12    Until July 1, 2012, and beginning July 1, 2013,
13"cigarette", means any roll for smoking made wholly or in part
14of tobacco irrespective of size or shape and whether or not
15such tobacco is flavored, adulterated or mixed with any other
16ingredient, and the wrapper or cover of which is made of paper
17or any other substance or material except tobacco.
18    "Cigarette", beginning on and after July 1, 2012, and
19through June 30, 2013, means any roll for smoking made wholly
20or in part of tobacco irrespective of size or shape and whether
21or not such tobacco is flavored, adulterated, or mixed with any
22other ingredient, and the wrapper or cover of which is made of
23paper.

 

 

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1    "Cigarette", beginning on and after July 1, 2012, and
2through June 30, 2013, also shall mean: Any roll for smoking
3made wholly or in part of tobacco labeled as anything other
4than a cigarette or not bearing a label, if it meets two or
5more of the following criteria:
6        (a) the product is sold in packs similar to cigarettes;
7        (b) the product is available for sale in cartons of ten
8    packs;
9        (c) the product is sold in soft packs, hard packs,
10    flip-top boxes, clam shells, or other cigarette-type
11    boxes;
12        (d) the product is of a length and diameter similar to
13    commercially manufactured cigarettes;
14        (e) the product has a cellulose acetate or other
15    integrated filter;
16        (f) the product is marketed or advertised to consumers
17    as a cigarette or cigarette substitute; or
18        (g) other evidence that the product fits within the
19    definition of cigarette.
20    "Contraband cigarettes" means:
21        (a) cigarettes that do not bear a required tax stamp
22    under this Act;
23        (b) cigarettes for which any required federal taxes
24    have not been paid;
25        (c) cigarettes that bear a counterfeit tax stamp;
26        (d) cigarettes that are manufactured, fabricated,

 

 

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1    assembled, processed, packaged, or labeled by any person
2    other than (i) the owner of the trademark rights in the
3    cigarette brand or (ii) a person that is directly or
4    indirectly authorized by such owner;
5        (e) cigarettes imported into the United States, or
6    otherwise distributed, in violation of the federal
7    Imported Cigarette Compliance Act of 2000 (Title IV of
8    Public Law 106-476);
9        (f) cigarettes that have false manufacturing labels;
10        (g) cigarettes identified in Section 3-10(a)(1) of
11    this Act;
12        (h) cigarettes that are improperly tax stamped,
13    including cigarettes that bear a tax stamp of another state
14    or taxing jurisdiction; or
15        (i) cigarettes made or fabricated by a person holding a
16    cigarette machine operator license under Section 1-20 of
17    the Cigarette Machine Operators' Occupation Tax Act in the
18    possession of manufacturers, distributors, secondary
19    distributors, manufacturer representatives or other
20    retailers for the purpose of resale, regardless of whether
21    the tax has been paid on such cigarettes.
22    "Little cigar" has the meaning ascribed to that term in the
23Tobacco Products Tax Act of 1995.
24    "Person" means any natural individual, firm, partnership,
25association, joint stock company, joint adventure, public or
26private corporation, however formed, limited liability

 

 

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1company, or a receiver, executor, administrator, trustee,
2guardian or other representative appointed by order of any
3court.
4    "Prior Continuous Compliance Taxpayer" means any person
5who is licensed under this Act and who, having been a licensee
6for a continuous period of 5 years, is determined by the
7Department not to have been either delinquent or deficient in
8the payment of tax liability during that period or otherwise in
9violation of this Act. Also, any taxpayer who has, as verified
10by the Department, continuously complied with the condition of
11his bond or other security under provisions of this Act for a
12period of 5 consecutive years shall be considered to be a
13"Prior continuous compliance taxpayer". In calculating the
14consecutive period of time described herein for qualification
15as a "prior continuous compliance taxpayer", a consecutive
16period of time of qualifying compliance immediately prior to
17the effective date of this amendatory Act of 1987 shall be
18credited to any licensee who became licensed on or before the
19effective date of this amendatory Act of 1987.
20    "Department" means the Department of Revenue.
21    "Sale" means any transfer, exchange or barter in any manner
22or by any means whatsoever for a consideration, and includes
23and means all sales made by any person.
24    "Original Package" means the individual packet, box or
25other container whatsoever used to contain and to convey
26cigarettes to the consumer.

 

 

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1    "Distributor" means any and each of the following:
2        (1) Any person engaged in the business of selling
3    cigarettes in this State who brings or causes to be brought
4    into this State from without this State any original
5    packages of cigarettes, on which original packages there is
6    no authorized evidence underneath a sealed transparent
7    wrapper showing that the tax liability imposed by this Act
8    has been paid or assumed by the out-of-State seller of such
9    cigarettes, for sale or other disposition in the course of
10    such business.
11        (2) Any person who makes, manufactures or fabricates
12    cigarettes in this State for sale in this State, except a
13    person who makes, manufactures or fabricates cigarettes as
14    a part of a correctional industries program for sale to
15    residents incarcerated in penal institutions or resident
16    patients of a State-operated mental health facility.
17        (3) Any person who makes, manufactures or fabricates
18    cigarettes outside this State, which cigarettes are placed
19    in original packages contained in sealed transparent
20    wrappers, for delivery or shipment into this State, and who
21    elects to qualify and is accepted by the Department as a
22    distributor under Section 4b of this Act.
23    "Place of business" shall mean and include any place where
24cigarettes are sold or where cigarettes are manufactured,
25stored or kept for the purpose of sale or consumption,
26including any vessel, vehicle, airplane, train or vending

 

 

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1machine.
2    "Manufacturer representative" means a director, officer,
3or employee of a manufacturer who has obtained authority from
4the Department under Section 4f to maintain representatives in
5Illinois that provide or sell original packages of cigarettes
6made, manufactured, or fabricated by the manufacturer to
7retailers in compliance with Section 4f of this Act to promote
8cigarettes made, manufactured, or fabricated by the
9manufacturer.
10    "Business" means any trade, occupation, activity or
11enterprise engaged in for the purpose of selling cigarettes in
12this State.
13    "Retailer" means any person who engages in the making of
14transfers of the ownership of, or title to, cigarettes to a
15purchaser for use or consumption and not for resale in any
16form, for a valuable consideration. "Retailer" does not include
17a person:
18        (1) who transfers to residents incarcerated in penal
19    institutions or resident patients of a State-operated
20    mental health facility ownership of cigarettes made,
21    manufactured, or fabricated as part of a correctional
22    industries program; or
23        (2) who transfers cigarettes to a not-for-profit
24    research institution that conducts tests concerning the
25    health effects of tobacco products and who does not offer
26    the cigarettes for resale.

 

 

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1    "Retailer" shall be construed to include any person who
2engages in the making of transfers of the ownership of, or
3title to, cigarettes to a purchaser, for use or consumption by
4any other person to whom such purchaser may transfer the
5cigarettes without a valuable consideration, except a person
6who transfers to residents incarcerated in penal institutions
7or resident patients of a State-operated mental health facility
8ownership of cigarettes made, manufactured or fabricated as
9part of a correctional industries program.
10    "Secondary distributor" means any person engaged in the
11business of selling cigarettes who purchases stamped original
12packages of cigarettes from a licensed distributor under this
13Act or the Cigarette Use Tax Act, sells 75% or more of those
14cigarettes to retailers for resale, and maintains an
15established business where a substantial stock of cigarettes is
16available to retailers for resale.
17    "Stamp" or "stamps" mean the indicia required to be affixed
18on a pack of cigarettes that evidence payment of the tax on
19cigarettes under Section 2 of this Act.
20    "Related party" means any person that is associated with
21any other person because he or she:
22        (a) is an officer or director of a business; or
23        (b) is legally recognized as a partner in business.
24(Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10;
2597-587, eff. 8-26-11; 97-688, eff. 6-14-12.)
 

 

 

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1    (35 ILCS 130/2)  (from Ch. 120, par. 453.2)
2    Sec. 2. Tax imposed; rate; collection, payment, and
3distribution; discount.
4    (a) A tax is imposed upon any person engaged in business as
5a retailer of cigarettes in this State at the rate of 5 1/2
6mills per cigarette sold, or otherwise disposed of in the
7course of such business in this State. In addition to any other
8tax imposed by this Act, a tax is imposed upon any person
9engaged in business as a retailer of cigarettes in this State
10at a rate of 1/2 mill per cigarette sold or otherwise disposed
11of in the course of such business in this State on and after
12January 1, 1947, and shall be paid into the Metropolitan Fair
13and Exposition Authority Reconstruction Fund or as otherwise
14provided in Section 29. On and after December 1, 1985, in
15addition to any other tax imposed by this Act, a tax is imposed
16upon any person engaged in business as a retailer of cigarettes
17in this State at a rate of 4 mills per cigarette sold or
18otherwise disposed of in the course of such business in this
19State. Of the additional tax imposed by this amendatory Act of
201985, $9,000,000 of the moneys received by the Department of
21Revenue pursuant to this Act shall be paid each month into the
22Common School Fund. On and after the effective date of this
23amendatory Act of 1989, in addition to any other tax imposed by
24this Act, a tax is imposed upon any person engaged in business
25as a retailer of cigarettes at the rate of 5 mills per
26cigarette sold or otherwise disposed of in the course of such

 

 

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1business in this State. On and after the effective date of this
2amendatory Act of 1993, in addition to any other tax imposed by
3this Act, a tax is imposed upon any person engaged in business
4as a retailer of cigarettes at the rate of 7 mills per
5cigarette sold or otherwise disposed of in the course of such
6business in this State. On and after December 15, 1997, in
7addition to any other tax imposed by this Act, a tax is imposed
8upon any person engaged in business as a retailer of cigarettes
9at the rate of 7 mills per cigarette sold or otherwise disposed
10of in the course of such business of this State. All of the
11moneys received by the Department of Revenue pursuant to this
12Act and the Cigarette Use Tax Act from the additional taxes
13imposed by this amendatory Act of 1997, shall be paid each
14month into the Common School Fund. On and after July 1, 2002,
15in addition to any other tax imposed by this Act, a tax is
16imposed upon any person engaged in business as a retailer of
17cigarettes at the rate of 20.0 mills per cigarette sold or
18otherwise disposed of in the course of such business in this
19State. Beginning on June 24, 2012, in addition to any other tax
20imposed by this Act, a tax is imposed upon any person engaged
21in business as a retailer of cigarettes at the rate of 50 mills
22per cigarette sold or otherwise disposed of in the course of
23such business in this State. All moneys received by the
24Department of Revenue under this Act and the Cigarette Use Tax
25Act from the additional taxes imposed by this amendatory Act of
26the 97th General Assembly shall be paid each month into the

 

 

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1Healthcare Provider Relief Fund. The payment of such taxes
2shall be evidenced by a stamp affixed to each original package
3of cigarettes, or an authorized substitute for such stamp
4imprinted on each original package of such cigarettes
5underneath the sealed transparent outside wrapper of such
6original package, as hereinafter provided. However, such taxes
7are not imposed upon any activity in such business in
8interstate commerce or otherwise, which activity may not under
9the Constitution and statutes of the United States be made the
10subject of taxation by this State.
11    Beginning on the effective date of this amendatory Act of
12the 92nd General Assembly and through June 30, 2006, all of the
13moneys received by the Department of Revenue pursuant to this
14Act and the Cigarette Use Tax Act, other than the moneys that
15are dedicated to the Common School Fund, shall be distributed
16each month as follows: first, there shall be paid into the
17General Revenue Fund an amount which, when added to the amount
18paid into the Common School Fund for that month, equals
19$33,300,000, except that in the month of August of 2004, this
20amount shall equal $83,300,000; then, from the moneys
21remaining, if any amounts required to be paid into the General
22Revenue Fund in previous months remain unpaid, those amounts
23shall be paid into the General Revenue Fund; then, beginning on
24April 1, 2003, from the moneys remaining, $5,000,000 per month
25shall be paid into the School Infrastructure Fund; then, if any
26amounts required to be paid into the School Infrastructure Fund

 

 

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1in previous months remain unpaid, those amounts shall be paid
2into the School Infrastructure Fund; then the moneys remaining,
3if any, shall be paid into the Long-Term Care Provider Fund. To
4the extent that more than $25,000,000 has been paid into the
5General Revenue Fund and Common School Fund per month for the
6period of July 1, 1993 through the effective date of this
7amendatory Act of 1994 from combined receipts of the Cigarette
8Tax Act and the Cigarette Use Tax Act, notwithstanding the
9distribution provided in this Section, the Department of
10Revenue is hereby directed to adjust the distribution provided
11in this Section to increase the next monthly payments to the
12Long Term Care Provider Fund by the amount paid to the General
13Revenue Fund and Common School Fund in excess of $25,000,000
14per month and to decrease the next monthly payments to the
15General Revenue Fund and Common School Fund by that same excess
16amount.
17    Beginning on July 1, 2006, all of the moneys received by
18the Department of Revenue pursuant to this Act and the
19Cigarette Use Tax Act, other than the moneys that are dedicated
20to the Common School Fund and, beginning on the effective date
21of this amendatory Act of the 97th General Assembly, other than
22the moneys from the additional taxes imposed by this amendatory
23Act of the 97th General Assembly that must be paid each month
24into the Healthcare Provider Relief Fund, shall be distributed
25each month as follows: first, there shall be paid into the
26General Revenue Fund an amount that, when added to the amount

 

 

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1paid into the Common School Fund for that month, equals
2$29,200,000; then, from the moneys remaining, if any amounts
3required to be paid into the General Revenue Fund in previous
4months remain unpaid, those amounts shall be paid into the
5General Revenue Fund; then from the moneys remaining,
6$5,000,000 per month shall be paid into the School
7Infrastructure Fund; then, if any amounts required to be paid
8into the School Infrastructure Fund in previous months remain
9unpaid, those amounts shall be paid into the School
10Infrastructure Fund; then the moneys remaining, if any, shall
11be paid into the Long-Term Care Provider Fund.
12    Moneys collected from the tax imposed on little cigars
13under Section 10-10 of the Tobacco Products Tax Act of 1995
14shall be included with the moneys collected under the Cigarette
15Tax Act and the Cigarette Use Tax Act when making distributions
16to the Common School Fund, the Healthcare Provider Relief Fund,
17the General Revenue Fund, the School Infrastructure Fund, and
18the Long-Term Care Provider Fund under this Section.
19    When any tax imposed herein terminates or has terminated,
20distributors who have bought stamps while such tax was in
21effect and who therefore paid such tax, but who can show, to
22the Department's satisfaction, that they sold the cigarettes to
23which they affixed such stamps after such tax had terminated
24and did not recover the tax or its equivalent from purchasers,
25shall be allowed by the Department to take credit for such
26absorbed tax against subsequent tax stamp purchases from the

 

 

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1Department by such distributor.
2    The impact of the tax levied by this Act is imposed upon
3the retailer and shall be prepaid or pre-collected by the
4distributor for the purpose of convenience and facility only,
5and the amount of the tax shall be added to the price of the
6cigarettes sold by such distributor. Collection of the tax
7shall be evidenced by a stamp or stamps affixed to each
8original package of cigarettes, as hereinafter provided.
9    Each distributor shall collect the tax from the retailer at
10or before the time of the sale, shall affix the stamps as
11hereinafter required, and shall remit the tax collected from
12retailers to the Department, as hereinafter provided. Any
13distributor who fails to properly collect and pay the tax
14imposed by this Act shall be liable for the tax. Any
15distributor having cigarettes to which stamps have been affixed
16in his possession for sale on the effective date of this
17amendatory Act of 1989 shall not be required to pay the
18additional tax imposed by this amendatory Act of 1989 on such
19stamped cigarettes. Any distributor having cigarettes to which
20stamps have been affixed in his or her possession for sale at
2112:01 a.m. on the effective date of this amendatory Act of
221993, is required to pay the additional tax imposed by this
23amendatory Act of 1993 on such stamped cigarettes. This
24payment, less the discount provided in subsection (b), shall be
25due when the distributor first makes a purchase of cigarette
26tax stamps after the effective date of this amendatory Act of

 

 

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11993, or on the first due date of a return under this Act after
2the effective date of this amendatory Act of 1993, whichever
3occurs first. Any distributor having cigarettes to which stamps
4have been affixed in his possession for sale on December 15,
51997 shall not be required to pay the additional tax imposed by
6this amendatory Act of 1997 on such stamped cigarettes.
7    Any distributor having cigarettes to which stamps have been
8affixed in his or her possession for sale on July 1, 2002 shall
9not be required to pay the additional tax imposed by this
10amendatory Act of the 92nd General Assembly on those stamped
11cigarettes.
12    Any retailer having cigarettes in his or her possession on
13June 24, 2012 to which tax stamps have been affixed is not
14required to pay the additional tax that begins on June 24, 2012
15imposed by this amendatory Act of the 97th General Assembly on
16those stamped cigarettes. Any distributor having cigarettes in
17his or her possession on June 24, 2012 to which tax stamps have
18been affixed, and any distributor having stamps in his or her
19possession on June 24, 2012 that have not been affixed to
20packages of cigarettes before June 24, 2012, is required to pay
21the additional tax that begins on June 24, 2012 imposed by this
22amendatory Act of the 97th General Assembly to the extent the
23calendar year 2012 average monthly volume of cigarette stamps
24in the distributor's possession exceeds the average monthly
25volume of cigarette stamps purchased by the distributor in
26calendar year 2011. This payment, less the discount provided in

 

 

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1subsection (b), is due when the distributor first makes a
2purchase of cigarette stamps on or after June 24, 2012 or on
3the first due date of a return under this Act occurring on or
4after June 24, 2012, whichever occurs first. Those distributors
5may elect to pay the additional tax on packages of cigarettes
6to which stamps have been affixed and on any stamps in the
7distributor's possession that have not been affixed to packages
8of cigarettes over a period not to exceed 12 months from the
9due date of the additional tax by notifying the Department in
10writing. The first payment for distributors making such
11election is due when the distributor first makes a purchase of
12cigarette tax stamps on or after June 24, 2012 or on the first
13due date of a return under this Act occurring on or after June
1424, 2012, whichever occurs first. Distributors making such an
15election are not entitled to take the discount provided in
16subsection (b) on such payments.
17    Distributors making sales of cigarettes to secondary
18distributors shall add the amount of the tax to the price of
19the cigarettes sold by the distributors. Secondary
20distributors making sales of cigarettes to retailers shall
21include the amount of the tax in the price of the cigarettes
22sold to retailers. The amount of tax shall not be less than the
23amount of taxes imposed by the State and all local
24jurisdictions. The amount of local taxes shall be calculated
25based on the location of the retailer's place of business shown
26on the retailer's certificate of registration or

 

 

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1sub-registration issued to the retailer pursuant to Section 2a
2of the Retailers' Occupation Tax Act. The original packages of
3cigarettes sold to the retailer shall bear all the required
4stamps, or other indicia, for the taxes included in the price
5of cigarettes.
6    The amount of the Cigarette Tax imposed by this Act shall
7be separately stated, apart from the price of the goods, by
8distributors, manufacturer representatives, secondary
9distributors, and retailers, in all bills and sales invoices.
10    (b) The distributor shall be required to collect the taxes
11provided under paragraph (a) hereof, and, to cover the costs of
12such collection, shall be allowed a discount during any year
13commencing July 1st and ending the following June 30th in
14accordance with the schedule set out hereinbelow, which
15discount shall be allowed at the time of purchase of the stamps
16when purchase is required by this Act, or at the time when the
17tax is remitted to the Department without the purchase of
18stamps from the Department when that method of paying the tax
19is required or authorized by this Act. Prior to December 1,
201985, a discount equal to 1 2/3% of the amount of the tax up to
21and including the first $700,000 paid hereunder by such
22distributor to the Department during any such year; 1 1/3% of
23the next $700,000 of tax or any part thereof, paid hereunder by
24such distributor to the Department during any such year; 1% of
25the next $700,000 of tax, or any part thereof, paid hereunder
26by such distributor to the Department during any such year, and

 

 

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12/3 of 1% of the amount of any additional tax paid hereunder by
2such distributor to the Department during any such year shall
3apply. On and after December 1, 1985, a discount equal to 1.75%
4of the amount of the tax payable under this Act up to and
5including the first $3,000,000 paid hereunder by such
6distributor to the Department during any such year and 1.5% of
7the amount of any additional tax paid hereunder by such
8distributor to the Department during any such year shall apply.
9    Two or more distributors that use a common means of
10affixing revenue tax stamps or that are owned or controlled by
11the same interests shall be treated as a single distributor for
12the purpose of computing the discount.
13    (c) The taxes herein imposed are in addition to all other
14occupation or privilege taxes imposed by the State of Illinois,
15or by any political subdivision thereof, or by any municipal
16corporation.
17(Source: P.A. 96-1027, eff. 7-12-10; 97-587, eff. 8-26-11;
1897-688, eff. 6-14-12.)
 
19    Section 10. The Cigarette Use Tax Act is amended by
20changing Section 1 as follows:
 
21    (35 ILCS 135/1)  (from Ch. 120, par. 453.31)
22    Sec. 1. For the purpose of this Act, unless otherwise
23required by the context:
24    "Use" means the exercise by any person of any right or

 

 

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1power over cigarettes incident to the ownership or possession
2thereof, other than the making of a sale thereof in the course
3of engaging in a business of selling cigarettes and shall
4include the keeping or retention of cigarettes for use, except
5that "use" does not include the use of cigarettes by a
6not-for-profit research institution conducting tests
7concerning the health effects of tobacco products, provided the
8cigarettes are not offered for resale.
9    "Brand Style" means a variety of cigarettes distinguished
10by the tobacco used, tar and nicotine content, flavoring used,
11size of the cigarette, filtration on the cigarette or
12packaging.
13    Until July 1, 2012, and beginning July 1, 2013, "cigarette"
14means any roll for smoking made wholly or in part of tobacco
15irrespective of size or shape and whether or not such tobacco
16is flavored, adulterated or mixed with any other ingredient,
17and the wrapper or cover of which is made of paper or any other
18substance or material except tobacco.
19    "Cigarette", beginning on and after July 1, 2012, and
20through June 30, 2013, means any roll for smoking made wholly
21or in part of tobacco irrespective of size or shape and whether
22or not such tobacco is flavored, adulterated or mixed with any
23other ingredient, and the wrapper or cover of which is made of
24paper.
25    "Cigarette", beginning on and after July 1, 2012, and
26through June 30, 2013, also shall mean: Any roll for smoking

 

 

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1made wholly or in part of tobacco labeled as anything other
2than a cigarette or not bearing a label, if it meets two or
3more of the following criteria:
4        (a) the product is sold in packs similar to cigarettes;
5        (b) the product is available for sale in cartons of ten
6    packs;
7        (c) the product is sold in soft packs, hard packs,
8    flip-top boxes, clam shells, or other cigarette-type
9    boxes;
10        (d) the product is of a length and diameter similar to
11    commercially manufactured cigarettes;
12        (e) the product has a cellulose acetate or other
13    integrated filter;
14        (f) the product is marketed or advertised to consumers
15    as a cigarette or cigarette substitute; or
16        (g) other evidence that the product fits within the
17    definition of cigarette.
18    "Contraband cigarettes" means:
19        (a) cigarettes that do not bear a required tax stamp
20    under this Act;
21        (b) cigarettes for which any required federal taxes
22    have not been paid;
23        (c) cigarettes that bear a counterfeit tax stamp;
24        (d) cigarettes that are manufactured, fabricated,
25    assembled, processed, packaged, or labeled by any person
26    other than (i) the owner of the trademark rights in the

 

 

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1    cigarette brand or (ii) a person that is directly or
2    indirectly authorized by such owner;
3        (e) cigarettes imported into the United States, or
4    otherwise distributed, in violation of the federal
5    Imported Cigarette Compliance Act of 2000 (Title IV of
6    Public Law 106-476);
7        (f) cigarettes that have false manufacturing labels;
8        (g) cigarettes identified in Section 3-10(a)(1) of
9    this Act;
10        (h) cigarettes that are improperly tax stamped,
11    including cigarettes that bear a tax stamp of another state
12    or taxing jurisdiction; or
13        (i) cigarettes made or fabricated by a person holding a
14    cigarette machine operator license under Section 1-20 of
15    the Cigarette Machine Operators' Occupation Tax Act in the
16    possession of manufacturers, distributors, secondary
17    distributors, manufacturer representatives or other
18    retailers for the purpose of resale, regardless of whether
19    the tax has been paid on such cigarettes.
20    "Person" means any natural individual, firm, partnership,
21association, joint stock company, joint adventure, public or
22private corporation, however formed, limited liability
23company, or a receiver, executor, administrator, trustee,
24guardian or other representative appointed by order of any
25court.
26    "Department" means the Department of Revenue.

 

 

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1    "Sale" means any transfer, exchange or barter in any manner
2or by any means whatsoever for a consideration, and includes
3and means all sales made by any person.
4    "Original Package" means the individual packet, box or
5other container whatsoever used to contain and to convey
6cigarettes to the consumer.
7    "Distributor" means any and each of the following:
8        a. Any person engaged in the business of selling
9    cigarettes in this State who brings or causes to be brought
10    into this State from without this State any original
11    packages of cigarettes, on which original packages there is
12    no authorized evidence underneath a sealed transparent
13    wrapper showing that the tax liability imposed by this Act
14    has been paid or assumed by the out-of-State seller of such
15    cigarettes, for sale in the course of such business.
16        b. Any person who makes, manufactures or fabricates
17    cigarettes in this State for sale, except a person who
18    makes, manufactures or fabricates cigarettes for sale to
19    residents incarcerated in penal institutions or resident
20    patients or a State-operated mental health facility.
21        c. Any person who makes, manufactures or fabricates
22    cigarettes outside this State, which cigarettes are placed
23    in original packages contained in sealed transparent
24    wrappers, for delivery or shipment into this State, and who
25    elects to qualify and is accepted by the Department as a
26    distributor under Section 7 of this Act.

 

 

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1    "Distributor" does not include any person who transfers
2cigarettes to a not-for-profit research institution that
3conducts tests concerning the health effects of tobacco
4products and who does not offer the cigarettes for resale.
5    "Distributor maintaining a place of business in this
6State", or any like term, means any distributor having or
7maintaining within this State, directly or by a subsidiary, an
8office, distribution house, sales house, warehouse or other
9place of business, or any agent operating within this State
10under the authority of the distributor or its subsidiary,
11irrespective of whether such place of business or agent is
12located here permanently or temporarily, or whether such
13distributor or subsidiary is licensed to transact business
14within this State.
15    "Business" means any trade, occupation, activity or
16enterprise engaged in or conducted in this State for the
17purpose of selling cigarettes.
18    "Prior Continuous Compliance Taxpayer" means any person
19who is licensed under this Act and who, having been a licensee
20for a continuous period of 5 years, is determined by the
21Department not to have been either delinquent or deficient in
22the payment of tax liability during that period or otherwise in
23violation of this Act. Also, any taxpayer who has, as verified
24by the Department, continuously complied with the condition of
25his bond or other security under provisions of this Act of a
26period of 5 consecutive years shall be considered to be a

 

 

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1"prior continuous compliance taxpayer". In calculating the
2consecutive period of time described herein for qualification
3as a "prior continuous compliance taxpayer", a consecutive
4period of time of qualifying compliance immediately prior to
5the effective date of this amendatory Act of 1987 shall be
6credited to any licensee who became licensed on or before the
7effective date of this amendatory Act of 1987.
8    "Secondary distributor" means any person engaged in the
9business of selling cigarettes who purchases stamped original
10packages of cigarettes from a licensed distributor under this
11Act or the Cigarette Tax Act, sells 75% or more of those
12cigarettes to retailers for resale, and maintains an
13established business where a substantial stock of cigarettes is
14available to retailers for resale.
15    "Secondary distributor maintaining a place of business in
16this State", or any like term, means any secondary distributor
17having or maintaining within this State, directly or by a
18subsidiary, an office, distribution house, sales house,
19warehouse, or other place of business, or any agent operating
20within this State under the authority of the secondary
21distributor or its subsidiary, irrespective of whether such
22place of business or agent is located here permanently or
23temporarily, or whether such secondary distributor or
24subsidiary is licensed to transact business within this State.
25    "Stamp" or "stamps" mean the indicia required to be affixed
26on a pack of cigarettes that evidence payment of the tax on

 

 

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1cigarettes under Section 2 of this Act.
2    "Related party" means any person that is associated with
3any other person because he or she:
4        (a) is an officer or director of a business; or
5        (b) is legally recognized as a partner in business.
6(Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10;
797-688, eff. 6-14-12.)
 
8    Section 15. The Tobacco Products Tax Act of 1995 is amended
9by changing Sections 10-5, 10-10, 10-15, 10-30, and 10-45 and
10by adding Sections 10-26, 10-27, 10-28, 10-29, and 10-36 as
11follows:
 
12    (35 ILCS 143/10-5)
13    Sec. 10-5. Definitions. For purposes of this Act:
14    "Business" means any trade, occupation, activity, or
15enterprise engaged in, at any location whatsoever, for the
16purpose of selling tobacco products.
17    "Cigarette" has the meaning ascribed to the term in Section
181 of the Cigarette Tax Act.
19    "Contraband little cigar" means:
20        (1) packages of little cigars containing 20 or 25
21    little cigars that do not bear a required tax stamp under
22    this Act;
23        (2) packages of little cigars containing 20 or 25
24    little cigars that bear a fraudulent, imitation, or

 

 

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1    counterfeit tax stamp;
2        (3) packages of little cigars containing 20 or 25
3    little cigars that are improperly tax stamped, including
4    packages of little cigars that bear only a tax stamp of
5    another state or taxing jurisdiction; or
6        (4) packages of little cigars containing other than 20
7    or 25 little cigars in the possession of a distributor,
8    retailer or wholesaler, unless the distributor, retailer,
9    or wholesaler possesses, or produces within the time frame
10    provided in Section 10-27 or 10-28 of this Act, an invoice
11    from a stamping distributor, distributor, or wholesaler
12    showing that the tax on the packages has been or will be
13    paid.
14    "Correctional Industries program" means a program run by a
15State penal institution in which residents of the penal
16institution produce tobacco products for sale to persons
17incarcerated in penal institutions or resident patients of a
18State operated mental health facility.
19    "Department" means the Illinois Department of Revenue.
20    "Distributor" means any of the following:
21        (1) Any manufacturer or wholesaler in this State
22    engaged in the business of selling tobacco products who
23    sells, exchanges, or distributes tobacco products to
24    retailers or consumers in this State.
25        (2) Any manufacturer or wholesaler engaged in the
26    business of selling tobacco products from without this

 

 

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1    State who sells, exchanges, distributes, ships, or
2    transports tobacco products to retailers or consumers
3    located in this State, so long as that manufacturer or
4    wholesaler has or maintains within this State, directly or
5    by subsidiary, an office, sales house, or other place of
6    business, or any agent or other representative operating
7    within this State under the authority of the person or
8    subsidiary, irrespective of whether the place of business
9    or agent or other representative is located here
10    permanently or temporarily.
11        (3) Any retailer who receives tobacco products on which
12    the tax has not been or will not be paid by another
13    distributor.
14    "Distributor" does not include any person, wherever
15resident or located, who makes, manufactures, or fabricates
16tobacco products as part of a Correctional Industries program
17for sale to residents incarcerated in penal institutions or
18resident patients of a State operated mental health facility.
19    "Little cigar" means and includes any roll, made wholly or
20in part of tobacco, where such roll has an integrated cellulose
21acetate filter and weighs less than 4 pounds per thousand and
22the wrapper or cover of which is made in whole or in part of
23tobacco.
24    "Manufacturer" means any person, wherever resident or
25located, who manufactures and sells tobacco products, except a
26person who makes, manufactures, or fabricates tobacco products

 

 

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1as a part of a Correctional Industries program for sale to
2persons incarcerated in penal institutions or resident
3patients of a State operated mental health facility.
4    Beginning on January 1, 2013, "moist snuff" means any
5finely cut, ground, or powdered tobacco that is not intended to
6be smoked, but shall not include any finely cut, ground, or
7powdered tobacco that is intended to be placed in the nasal
8cavity.
9    "Person" means any natural individual, firm, partnership,
10association, joint stock company, joint venture, limited
11liability company, or public or private corporation, however
12formed, or a receiver, executor, administrator, trustee,
13conservator, or other representative appointed by order of any
14court.
15    "Place of business" means and includes any place where
16tobacco products are sold or where tobacco products are
17manufactured, stored, or kept for the purpose of sale or
18consumption, including any vessel, vehicle, airplane, train,
19or vending machine.
20    "Retailer" means any person in this State engaged in the
21business of selling tobacco products to consumers in this
22State, regardless of quantity or number of sales.
23    "Sale" means any transfer, exchange, or barter in any
24manner or by any means whatsoever for a consideration and
25includes all sales made by persons.
26    "Stamp" or "stamps" mean the indicia required to be affixed

 

 

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1on a package of little cigars that evidence payment of the tax
2on packages of little cigars containing 20 or 25 little cigars
3under Section 10-10 of this Act. These stamps shall be the same
4stamps used for cigarettes under the Cigarette Tax Act.
5    "Stamping distributor" means a distributor licensed under
6this Act and also licensed as a distributor under the Cigarette
7Tax Act or Cigarette Use Tax Act.
8    "Tobacco products" means any cigars, including little
9cigars; cheroots; stogies; periques; granulated, plug cut,
10crimp cut, ready rubbed, and other smoking tobacco; snuff
11(including moist snuff) or snuff flour; cavendish; plug and
12twist tobacco; fine-cut and other chewing tobaccos; shorts;
13refuse scraps, clippings, cuttings, and sweeping of tobacco;
14and other kinds and forms of tobacco, prepared in such manner
15as to be suitable for chewing or smoking in a pipe or
16otherwise, or both for chewing and smoking; but does not
17include cigarettes or tobacco purchased for the manufacture of
18cigarettes by cigarette distributors and manufacturers defined
19in the Cigarette Tax Act and persons who make, manufacture, or
20fabricate cigarettes as a part of a Correctional Industries
21program for sale to residents incarcerated in penal
22institutions or resident patients of a State operated mental
23health facility.
24    "Wholesale price" means the established list price for
25which a manufacturer sells tobacco products to a distributor,
26before the allowance of any discount, trade allowance, rebate,

 

 

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1or other reduction. In the absence of such an established list
2price, the manufacturer's invoice price at which the
3manufacturer sells the tobacco product to unaffiliated
4distributors, before any discounts, trade allowances, rebates,
5or other reductions, shall be presumed to be the wholesale
6price.
7    "Wholesaler" means any person, wherever resident or
8located, engaged in the business of selling tobacco products to
9others for the purpose of resale. "Wholesaler", when used in
10this Act, does not include a person licensed as a distributor
11under Section 10-20 of this Act unless expressly stated in this
12Act.
13(Source: P.A. 97-688, eff. 6-14-12.)
 
14    (35 ILCS 143/10-10)
15    Sec. 10-10. Tax imposed.
16    (a) Except as otherwise provided in this Section with
17respect to little cigars, on On the first day of the third
18month after the month in which this Act becomes law, a tax is
19imposed on any person engaged in business as a distributor of
20tobacco products, as defined in Section 10-5, at the rate of
21(i) 18% of the wholesale price of tobacco products sold or
22otherwise disposed of to retailers or consumers located in this
23State prior to July 1, 2012 and (ii) 36% of the wholesale price
24of tobacco products sold or otherwise disposed of to retailers
25or consumers located in this State beginning on July 1, 2012;

 

 

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1except that, beginning on January 1, 2013, the tax on moist
2snuff shall be imposed at a rate of $0.30 per ounce, and a
3proportionate tax at the like rate on all fractional parts of
4an ounce, sold or otherwise disposed of to retailers or
5consumers located in this State. The tax is in addition to all
6other occupation or privilege taxes imposed by the State of
7Illinois, by any political subdivision thereof, or by any
8municipal corporation. However, the tax is not imposed upon any
9activity in that business in interstate commerce or otherwise,
10to the extent to which that activity may not, under the
11Constitution and Statutes of the United States, be made the
12subject of taxation by this State, and except that, beginning
13July 1, 2013, the tax on little cigars shall be imposed at the
14same rate, and the proceeds shall be distributed in the same
15manner, as the tax imposed on cigarettes under the Cigarette
16Tax Act. The tax is also not imposed on sales made to the
17United States or any entity thereof.
18    (b) Notwithstanding subsection (a) of this Section,
19stamping distributors of packages of little cigars containing
2020 or 25 little cigars sold or otherwise disposed of in this
21State shall remit the tax by purchasing tax stamps from the
22Department and affixing them to packages of little cigars in
23the same manner as stamps are purchased and affixed to
24cigarettes under the Cigarette Tax Act, unless the stamping
25distributor sells or otherwise disposes of those packages of
26little cigars to another stamping distributor. Only persons

 

 

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1meeting the definition of "stamping distributor" contained in
2Section 10-5 of this Act may affix stamps to packages of little
3cigars containing 20 or 25 little cigars. Stamping distributors
4may not sell or dispose of little cigars at retail to consumers
5or users at locations where stamping distributors affix stamps
6to packages of little cigars containing 20 or 25 little cigars.
7    (c) The impact of the tax levied by this Act is imposed
8upon distributors engaged in the business of selling tobacco
9products to retailers or consumers in this State. Whenever a
10stamping distributor brings or causes to be brought into this
11State from without this State, or purchases from without or
12within this State, any packages of little cigars containing 20
13or 25 little cigars upon which there are no tax stamps affixed
14as required by this Act, for purposes of resale or disposal in
15this State to a person not a stamping distributor, then such
16stamping distributor shall pay the tax to the Department and
17add the amount of the tax to the price of such packages sold by
18such stamping distributor. Payment of the tax shall be
19evidenced by a stamp or stamps affixed to each package of
20little cigars containing 20 or 25 little cigars.
21    Stamping distributors paying the tax to the Department on
22packages of little cigars containing 20 or 25 little cigars
23sold to other distributors, wholesalers or retailers shall add
24the amount of the tax to the price of the packages of little
25cigars containing 20 or 25 little cigars sold by such stamping
26distributors.

 

 

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1    (d) Beginning on January 1, 2013, the tax rate imposed per
2ounce of moist snuff may not exceed 15% of the tax imposed upon
3a package of 20 cigarettes pursuant to the Cigarette Tax Act.
4    (e) All moneys received by the Department under this Act
5from sales occurring prior to July 1, 2012 shall be paid into
6the Long-Term Care Provider Fund of the State Treasury. Of the
7moneys received by the Department from sales occurring on or
8after July 1, 2012, except for moneys received from the tax
9imposed on the sale of little cigars, 50% shall be paid into
10the Long-Term Care Provider Fund and 50% shall be paid into the
11Healthcare Provider Relief Fund. Beginning July 1, 2013, all
12moneys received by the Department under this Act from the tax
13imposed on little cigars shall be distributed as provided in
14subsection (a) of Section 2 of the Cigarette Tax Act.
15(Source: P.A. 97-688, eff. 6-14-12.)
 
16    (35 ILCS 143/10-15)
17    Sec. 10-15. Exempt sales. Purchases of tobacco products
18other than little cigars by wholesalers who will not sell the
19product at retail are exempt from the tax imposed by this Act.
20Purchases of tobacco products other than little cigars by
21wholesalers and retailers for delivery of the product outside
22Illinois are exempt from the tax imposed by this Act. The
23wholesaler or retailer making the exempt sale of tobacco
24products other than little cigars shall document this exemption
25by obtaining a certification from the purchaser containing the

 

 

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1seller's name and address, the purchaser's name and address,
2the date of purchase, the purchaser's signature, the
3purchaser's tobacco products tax license number, if
4applicable, and a statement that the purchaser is purchasing
5for resale other than for sale to consumers or is purchasing
6for delivery outside of Illinois.
7(Source: P.A. 89-21, eff. 6-6-95.)
 
8    (35 ILCS 143/10-26 new)
9    Sec. 10-26. Manufacturers; sale of little cigars.
10Manufacturers that are not stamping distributors may not sell
11little cigars to consumers in this State or to distributors,
12wholesalers or retailers, unless the distributors, wholesalers
13or retailers are stamping distributors. Manufacturers that are
14not stamping distributors may sell little cigars only to
15stamping distributors. Manufacturers that are not stamping
16distributors are prohibited from delivering little cigars to
17locations where sales of little cigars to consumers or users
18take place.
 
19    (35 ILCS 143/10-27 new)
20    Sec. 10-27. Retailers; purchase and possession of little
21cigars.
22    (a) Retailers are prohibited from possessing unstamped
23packages of little cigars containing 20 or 25 little cigars at
24locations where retailers make sales of little cigars to

 

 

SB0338 Engrossed- 34 -LRB098 04613 HLH 34641 b

1consumers or users. Retailers that are also stamping
2distributors are prohibited from possessing unstamped little
3cigars at locations where those retailers make sales of
4packages of little cigars containing 20 or 25 little cigars to
5consumers or users. Retailers that are not stamping
6distributors shall purchase stamped packages of little cigars
7containing 20 or 25 little cigars for resale only from stamping
8distributors, distributors, or wholesalers. Retailers who are
9not stamping distributors may not purchase or possess unstamped
10packages of little cigars containing 20 or 25 little cigars. A
11retailer must be a stamping distributor to make tax exempt
12sales of packages of little cigars containing 20 or 25 little
13cigars for use outside of this State. A retailer who is a
14stamping distributor making sales of stamped packages of little
15cigars for use outside of this State may file a claim for
16credit for such sales with the Department on forms and in the
17manner provided by the Department.
18    (b) For purchases of packages of little cigars containing
19other than 20 or 25 little cigars, retailers who are not
20stamping distributors may not purchase or possess such packages
21of little cigars, unless the retailer receives an invoice from
22a stamping distributor, distributor, or wholesaler stating the
23tax on the packages has been or will be paid. Retailers shall
24retain such invoices for inspection by the Department. If a
25retailer maintaining multiple retail locations notifies the
26Department in writing that it maintains its invoices at a

 

 

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1centralized business location, the Department shall have the
2authority to inspect invoices at the centralized business
3location at all times during the usual business hours of the
4day and the Department may grant the retailer 3 business days
5to produce the invoices at the retail location at which the
6request was made. A retailer must be a stamping distributor to
7make tax exempt sales of packages of little cigars containing
8other than 20 or 25 little cigars for use outside of this
9State. A retailer who is a stamping distributor making sales of
10packages of little cigars containing other than 20 or 25 little
11cigars for use outside of this State on which the tax has been
12or will be paid by another stamping distributor or was paid by
13the retailer may file a claim for credit for such sales with
14the Department on forms and in the manner provided by the
15Department.
16    (c) Notwithstanding anything to the contrary in this Act, a
17retailer unknowingly possessing contraband little cigars
18obtained from a stamping distributor, distributor, or
19wholesaler or other person engaged in the business of selling
20tobacco products or knowingly possessing contraband little
21cigars obtained from a stamping distributor is not subject to
22penalties for such purchase or possession if the retailer,
23within 48 hours after discovering that the little cigars are
24contraband little cigars, excluding Saturdays, Sundays, and
25holidays: (i) notifies the Department and the person from whom
26the little cigars were obtained, orally and in writing, that he

 

 

SB0338 Engrossed- 36 -LRB098 04613 HLH 34641 b

1or she possesses contraband little cigars; (ii) places the
2contraband little cigars in one or more containers and seals
3those containers; and (iii) places on the containers the
4following or similar language: "Contraband Little Cigars. Not
5For Sale." All contraband little cigars in the possession of a
6retailer remain subject to forfeiture under the provisions of
7this Act.
 
8    (35 ILCS 143/10-28 new)
9    Sec. 10-28. Wholesalers.
10    (a) Wholesalers are prohibited from possessing unstamped
11packages of little cigars containing 20 or 25 little cigars
12unless the wholesalers are stamping distributors. A wholesaler
13must be a stamping distributor to make tax exempt sales of
14packages of little cigars containing 20 or 25 little cigars for
15use outside of this State. A wholesaler who is a stamping
16distributor making sales of stamped packages of little cigars
17for use outside of this State may file a claim for credit for
18such sales with the Department on forms and in the manner
19provided by the Department.
20    (b) For purchases of packages of little cigars containing
21other than 20 or 25 little cigars, wholesalers who are not
22stamping distributors may not purchase or possess such packages
23of little cigars, unless the wholesalers receive an invoice
24from a stamping distributor, distributor, or wholesaler
25stating the tax on the packages has been or will be paid.

 

 

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1Wholesalers shall retain such invoices for inspection by the
2Department. Every sales invoice for packages of little cigars
3containing other than 20 or 25 little cigars issued by a
4wholesaler to a person who is not a stamping distributor shall
5state that the tax imposed by the Act has been or will be paid.
6If a wholesaler maintaining multiple wholesale locations
7notifies the Department in writing that it maintains its
8invoices at a centralized business location, the Department
9shall have the authority to inspect invoices at the centralized
10business location at all times during the usual business hours
11of the day and the Department may grant the wholesaler 3
12business days to produce the invoices at the wholesale location
13at which the request was made. A wholesaler must be a stamping
14distributor to make tax exempt sales of packages of little
15cigars containing other than 20 or 25 little cigars for use
16outside of this State. A wholesaler who is a stamping
17distributor making sales of packages of little cigars
18containing other than 20 or 25 little cigars for use outside of
19this State on which the tax has been or will be paid by another
20stamping distributor or was paid by the wholesaler may file a
21claim for credit for such sales with the Department on forms
22and in the manner provided by the Department.
 
23    (35 ILCS 143/10-29 new)
24    Sec. 10-29. Invoices; packages of little cigars.
25    (a) Every sales invoice for packages of little cigars

 

 

SB0338 Engrossed- 38 -LRB098 04613 HLH 34641 b

1containing other than 20 or 25 little cigars issued by a
2stamping distributor to a person who is not a stamping
3distributor shall contain both the stamping distributor's
4Tobacco Products License number and Cigarette Tax
5Distributor's License number or Cigarette Use Tax
6Distributor's License number and state that the tax imposed by
7the Act has been or will be paid or that the sale is exempt in
8whole or in part and the exemption which is claimed.
9    (b) Any stamping distributor, distributor or wholesaler
10who knowingly falsely states on the invoice that the tax
11imposed by this Act has been or will be paid, or any officer or
12employee of a corporation, member or employee of a partnership,
13or manager, member or employee of a limited liability company
14that is a stamping distributor, distributor, or wholesaler,
15who, as such officer, employee, manager, or member, knowingly
16causes to be issued an invoice on behalf of such entity, that
17such person knows falsely states that the tax imposed by the
18Act has been or will be paid, is guilty of a Class 4 felony.
19    (c) Whenever any sales invoice issued by a stamping
20distributor, distributor or wholesaler for the sale of packages
21of little cigars containing other than 20 or 25 little cigars
22does not comply with subsection (b) of Section 10-28 or
23subsection (a) of this Section by indicating that the tax has
24been or will be paid or that the sale is exempt in whole or in
25part, a prima facie presumption shall arise that the tax
26imposed by Section 10-10 of this Act has not been paid on the

 

 

SB0338 Engrossed- 39 -LRB098 04613 HLH 34641 b

1little cigars listed on the sales invoice. A person who is not
2a stamping distributor and is unable to rebut this presumption
3is in violation of this Act and is subject to the penalties
4provided in this Act.
 
5    (35 ILCS 143/10-30)
6    Sec. 10-30. Returns.
7    (a) Every distributor shall, on or before the 15th day of
8each month, file a return with the Department covering the
9preceding calendar month. The return shall disclose the
10wholesale price for all tobacco products other than moist snuff
11and the quantity in ounces of moist snuff sold or otherwise
12disposed of and other information that the Department may
13reasonably require. The return shall be filed upon a form
14prescribed and furnished by the Department.
15    (b) In addition to the information required under
16subsection (a), on or before the 15th day of each month,
17covering the preceding calendar month, each stamping
18distributor shall, on forms prescribed and furnished by the
19Department, report the quantity of little cigars sold or
20otherwise disposed of, including the number of packages of
21little cigars sold or disposed of during the month containing
2220 or 25 little cigars.
23    (c) At the time when any return of any distributor is due
24to be filed with the Department, the distributor shall also
25remit to the Department the tax liability that the distributor

 

 

SB0338 Engrossed- 40 -LRB098 04613 HLH 34641 b

1has incurred for transactions occurring in the preceding
2calendar month.
3    (d) The Department may adopt rules to require the
4electronic filing of any return or document required to be
5filed under this Act. Those rules may provide for exceptions
6from the filing requirement set forth in this paragraph for
7persons who demonstrate that they do not have access to the
8Internet and petition the Department to waive the electronic
9filing requirement.
10(Source: P.A. 97-688, eff. 6-14-12.)
 
11    (35 ILCS 143/10-36 new)
12    Sec. 10-36. Recordkeeping by retailers. Every retailer
13shall keep complete and accurate records of tobacco products
14held and purchased, and tobacco products sold or otherwise
15disposed of, and shall preserve and keep all invoices, bills of
16lading, sales records, and copies of bills of sale. Books,
17records, papers, and documents that are required by this Act to
18be kept shall, at all times during the usual business hours of
19the day, be subject to inspection by the Department or its duly
20authorized agents and employees. The books, records, papers,
21and documents for any period with respect to which the
22Department is authorized to issue a notice of tax liability
23shall be preserved until the expiration of that period.
 
24    (35 ILCS 143/10-45)

 

 

SB0338 Engrossed- 41 -LRB098 04613 HLH 34641 b

1    Sec. 10-45. Incorporation by reference. All of the
2provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
35i, 5j, 6, 6a, 6b, 6c, 8, 9, 10, 11, 11a, and 12 of the
4Retailers' Occupation Tax Act, and all applicable provisions of
5the Uniform Penalty and Interest Act that are not inconsistent
6with this Act, apply to distributors of tobacco products to the
7same extent as if those provisions were included in this Act.
8References in the incorporated Sections of the Retailers'
9Occupation Tax Act to retailers, to sellers, or to persons
10engaged in the business of selling tangible personal property
11mean distributors when used in this Act. References in the
12incorporated Sections to sales of tangible personal property
13mean sales of tobacco products when used in this Act.
14    All of the provisions of Sections 7, 8, 8a, 16, 18a, 18b,
1518c, 22, 23, 24, 26, 27, and 28a of the Cigarette Tax Act which
16are not inconsistent with this Act shall apply, as far as
17practicable, to the subject matter of this Act to the same
18extent as if those provisions were included in this Act.
19References in the incorporated Sections to sales of cigarettes
20mean sales of little cigars in packages of 20 or 25 little
21cigars.
22(Source: P.A. 89-21, eff. 6-6-95.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.