Sen. Toi W. Hutchinson

Filed: 4/23/2013

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 338

2    AMENDMENT NO. ______. Amend Senate Bill 338 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1or any other substance or material except tobacco.
2    "Cigarette", beginning on and after July 1, 2012, and
3through June 30, 2013, means any roll for smoking made wholly
4or in part of tobacco irrespective of size or shape and whether
5or not such tobacco is flavored, adulterated, or mixed with any
6other ingredient, and the wrapper or cover of which is made of
7paper.
8    "Cigarette", beginning on and after July 1, 2012, and
9through June 30, 2013, also shall mean: Any roll for smoking
10made wholly or in part of tobacco labeled as anything other
11than a cigarette or not bearing a label, if it meets two or
12more of the following criteria:
13        (a) the product is sold in packs similar to cigarettes;
14        (b) the product is available for sale in cartons of ten
15    packs;
16        (c) the product is sold in soft packs, hard packs,
17    flip-top boxes, clam shells, or other cigarette-type
18    boxes;
19        (d) the product is of a length and diameter similar to
20    commercially manufactured cigarettes;
21        (e) the product has a cellulose acetate or other
22    integrated filter;
23        (f) the product is marketed or advertised to consumers
24    as a cigarette or cigarette substitute; or
25        (g) other evidence that the product fits within the
26    definition of cigarette.

 

 

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1    "Contraband cigarettes" means:
2        (a) cigarettes that do not bear a required tax stamp
3    under this Act;
4        (b) cigarettes for which any required federal taxes
5    have not been paid;
6        (c) cigarettes that bear a counterfeit tax stamp;
7        (d) cigarettes that are manufactured, fabricated,
8    assembled, processed, packaged, or labeled by any person
9    other than (i) the owner of the trademark rights in the
10    cigarette brand or (ii) a person that is directly or
11    indirectly authorized by such owner;
12        (e) cigarettes imported into the United States, or
13    otherwise distributed, in violation of the federal
14    Imported Cigarette Compliance Act of 2000 (Title IV of
15    Public Law 106-476);
16        (f) cigarettes that have false manufacturing labels;
17        (g) cigarettes identified in Section 3-10(a)(1) of
18    this Act;
19        (h) cigarettes that are improperly tax stamped,
20    including cigarettes that bear a tax stamp of another state
21    or taxing jurisdiction; or
22        (i) cigarettes made or fabricated by a person holding a
23    cigarette machine operator license under Section 1-20 of
24    the Cigarette Machine Operators' Occupation Tax Act in the
25    possession of manufacturers, distributors, secondary
26    distributors, manufacturer representatives or other

 

 

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1    retailers for the purpose of resale, regardless of whether
2    the tax has been paid on such cigarettes.
3    "Little cigar" has the meaning ascribed to that term in the
4Tobacco Products Tax Act of 1995.
5    "Person" means any natural individual, firm, partnership,
6association, joint stock company, joint adventure, public or
7private corporation, however formed, limited liability
8company, or a receiver, executor, administrator, trustee,
9guardian or other representative appointed by order of any
10court.
11    "Prior Continuous Compliance Taxpayer" means any person
12who is licensed under this Act and who, having been a licensee
13for a continuous period of 5 years, is determined by the
14Department not to have been either delinquent or deficient in
15the payment of tax liability during that period or otherwise in
16violation of this Act. Also, any taxpayer who has, as verified
17by the Department, continuously complied with the condition of
18his bond or other security under provisions of this Act for a
19period of 5 consecutive years shall be considered to be a
20"Prior continuous compliance taxpayer". In calculating the
21consecutive period of time described herein for qualification
22as a "prior continuous compliance taxpayer", a consecutive
23period of time of qualifying compliance immediately prior to
24the effective date of this amendatory Act of 1987 shall be
25credited to any licensee who became licensed on or before the
26effective date of this amendatory Act of 1987.

 

 

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

 

 

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1    wrappers, for delivery or shipment into this State, and who
2    elects to qualify and is accepted by the Department as a
3    distributor under Section 4b of this Act.
4    "Place of business" shall mean and include any place where
5cigarettes are sold or where cigarettes are manufactured,
6stored or kept for the purpose of sale or consumption,
7including any vessel, vehicle, airplane, train or vending
8machine.
9    "Manufacturer representative" means a director, officer,
10or employee of a manufacturer who has obtained authority from
11the Department under Section 4f to maintain representatives in
12Illinois that provide or sell original packages of cigarettes
13made, manufactured, or fabricated by the manufacturer to
14retailers in compliance with Section 4f of this Act to promote
15cigarettes made, manufactured, or fabricated by the
16manufacturer.
17    "Business" means any trade, occupation, activity or
18enterprise engaged in for the purpose of selling cigarettes in
19this State.
20    "Retailer" means any person who engages in the making of
21transfers of the ownership of, or title to, cigarettes to a
22purchaser for use or consumption and not for resale in any
23form, for a valuable consideration. "Retailer" does not include
24a person:
25        (1) who transfers to residents incarcerated in penal
26    institutions or resident patients of a State-operated

 

 

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1    mental health facility ownership of cigarettes made,
2    manufactured, or fabricated as part of a correctional
3    industries program; or
4        (2) who transfers cigarettes to a not-for-profit
5    research institution that conducts tests concerning the
6    health effects of tobacco products and who does not offer
7    the cigarettes for resale.
8    "Retailer" shall be construed to include any person who
9engages in the making of transfers of the ownership of, or
10title to, cigarettes to a purchaser, for use or consumption by
11any other person to whom such purchaser may transfer the
12cigarettes without a valuable consideration, except a person
13who transfers to residents incarcerated in penal institutions
14or resident patients of a State-operated mental health facility
15ownership of cigarettes made, manufactured or fabricated as
16part of a correctional industries program.
17    "Secondary distributor" means any person engaged in the
18business of selling cigarettes who purchases stamped original
19packages of cigarettes from a licensed distributor under this
20Act or the Cigarette Use Tax Act, sells 75% or more of those
21cigarettes to retailers for resale, and maintains an
22established business where a substantial stock of cigarettes is
23available to retailers for resale.
24    "Stamp" or "stamps" mean the indicia required to be affixed
25on a pack of cigarettes that evidence payment of the tax on
26cigarettes under Section 2 of this Act.

 

 

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1    "Related party" means any person that is associated with
2any other person because he or she:
3        (a) is an officer or director of a business; or
4        (b) is legally recognized as a partner in business.
5(Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10;
697-587, eff. 8-26-11; 97-688, eff. 6-14-12.)
 
7    (35 ILCS 130/2)  (from Ch. 120, par. 453.2)
8    Sec. 2. Tax imposed; rate; collection, payment, and
9distribution; discount.
10    (a) A tax is imposed upon any person engaged in business as
11a retailer of cigarettes in this State at the rate of 5 1/2
12mills per cigarette sold, or otherwise disposed of in the
13course of such business in this State. In addition to any other
14tax imposed by this Act, a tax is imposed upon any person
15engaged in business as a retailer of cigarettes in this State
16at a rate of 1/2 mill per cigarette sold or otherwise disposed
17of in the course of such business in this State on and after
18January 1, 1947, and shall be paid into the Metropolitan Fair
19and Exposition Authority Reconstruction Fund or as otherwise
20provided in Section 29. On and after December 1, 1985, in
21addition to any other tax imposed by this Act, a tax is imposed
22upon any person engaged in business as a retailer of cigarettes
23in this State at a rate of 4 mills per cigarette sold or
24otherwise disposed of in the course of such business in this
25State. Of the additional tax imposed by this amendatory Act of

 

 

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11985, $9,000,000 of the moneys received by the Department of
2Revenue pursuant to this Act shall be paid each month into the
3Common School Fund. On and after the effective date of this
4amendatory Act of 1989, in addition to any other tax imposed by
5this Act, a tax is imposed upon any person engaged in business
6as a retailer of cigarettes at the rate of 5 mills per
7cigarette sold or otherwise disposed of in the course of such
8business in this State. On and after the effective date of this
9amendatory Act of 1993, in addition to any other tax imposed by
10this Act, a tax is imposed upon any person engaged in business
11as a retailer of cigarettes at the rate of 7 mills per
12cigarette sold or otherwise disposed of in the course of such
13business in this State. On and after December 15, 1997, in
14addition to any other tax imposed by this Act, a tax is imposed
15upon any person engaged in business as a retailer of cigarettes
16at the rate of 7 mills per cigarette sold or otherwise disposed
17of in the course of such business of this State. All of the
18moneys received by the Department of Revenue pursuant to this
19Act and the Cigarette Use Tax Act from the additional taxes
20imposed by this amendatory Act of 1997, shall be paid each
21month into the Common School Fund. On and after July 1, 2002,
22in addition to any other tax imposed by this Act, a tax is
23imposed upon any person engaged in business as a retailer of
24cigarettes at the rate of 20.0 mills per cigarette sold or
25otherwise disposed of in the course of such business in this
26State. Beginning on June 24, 2012, in addition to any other tax

 

 

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1imposed by this Act, a tax is imposed upon any person engaged
2in business as a retailer of cigarettes at the rate of 50 mills
3per cigarette sold or otherwise disposed of in the course of
4such business in this State. All moneys received by the
5Department of Revenue under this Act and the Cigarette Use Tax
6Act from the additional taxes imposed by this amendatory Act of
7the 97th General Assembly shall be paid each month into the
8Healthcare Provider Relief Fund. The payment of such taxes
9shall be evidenced by a stamp affixed to each original package
10of cigarettes, or an authorized substitute for such stamp
11imprinted on each original package of such cigarettes
12underneath the sealed transparent outside wrapper of such
13original package, as hereinafter provided. However, such taxes
14are not imposed upon any activity in such business in
15interstate commerce or otherwise, which activity may not under
16the Constitution and statutes of the United States be made the
17subject of taxation by this State.
18    Beginning on the effective date of this amendatory Act of
19the 92nd General Assembly and through June 30, 2006, all of the
20moneys received by the Department of Revenue pursuant to this
21Act and the Cigarette Use Tax Act, other than the moneys that
22are dedicated to the Common School Fund, shall be distributed
23each month as follows: first, there shall be paid into the
24General Revenue Fund an amount which, when added to the amount
25paid into the Common School Fund for that month, equals
26$33,300,000, except that in the month of August of 2004, this

 

 

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1amount shall equal $83,300,000; then, from the moneys
2remaining, if any amounts required to be paid into the General
3Revenue Fund in previous months remain unpaid, those amounts
4shall be paid into the General Revenue Fund; then, beginning on
5April 1, 2003, from the moneys remaining, $5,000,000 per month
6shall be paid into the School Infrastructure Fund; then, if any
7amounts required to be paid into the School Infrastructure Fund
8in previous months remain unpaid, those amounts shall be paid
9into the School Infrastructure Fund; then the moneys remaining,
10if any, shall be paid into the Long-Term Care Provider Fund. To
11the extent that more than $25,000,000 has been paid into the
12General Revenue Fund and Common School Fund per month for the
13period of July 1, 1993 through the effective date of this
14amendatory Act of 1994 from combined receipts of the Cigarette
15Tax Act and the Cigarette Use Tax Act, notwithstanding the
16distribution provided in this Section, the Department of
17Revenue is hereby directed to adjust the distribution provided
18in this Section to increase the next monthly payments to the
19Long Term Care Provider Fund by the amount paid to the General
20Revenue Fund and Common School Fund in excess of $25,000,000
21per month and to decrease the next monthly payments to the
22General Revenue Fund and Common School Fund by that same excess
23amount.
24    Beginning on July 1, 2006, all of the moneys received by
25the Department of Revenue pursuant to this Act and the
26Cigarette Use Tax Act, other than the moneys that are dedicated

 

 

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1to the Common School Fund and, beginning on the effective date
2of this amendatory Act of the 97th General Assembly, other than
3the moneys from the additional taxes imposed by this amendatory
4Act of the 97th General Assembly that must be paid each month
5into the Healthcare Provider Relief Fund, shall be distributed
6each month as follows: first, there shall be paid into the
7General Revenue Fund an amount that, when added to the amount
8paid into the Common School Fund for that month, equals
9$29,200,000; then, from the moneys remaining, if any amounts
10required to be paid into the General Revenue Fund in previous
11months remain unpaid, those amounts shall be paid into the
12General Revenue Fund; then from the moneys remaining,
13$5,000,000 per month shall be paid into the School
14Infrastructure Fund; then, if any amounts required to be paid
15into the School Infrastructure Fund in previous months remain
16unpaid, those amounts shall be paid into the School
17Infrastructure Fund; then the moneys remaining, if any, shall
18be paid into the Long-Term Care Provider Fund.
19    Moneys collected from the tax imposed on little cigars
20under Section 10-10 of the Tobacco Products Tax Act of 1995
21shall be included with the moneys collected under the Cigarette
22Tax Act and the Cigarette Use Tax Act when making distributions
23to the Common School Fund, the Healthcare Provider Relief Fund,
24the General Revenue Fund, the School Infrastructure Fund, and
25the Long-Term Care Provider Fund under this Section.
26    When any tax imposed herein terminates or has terminated,

 

 

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1distributors who have bought stamps while such tax was in
2effect and who therefore paid such tax, but who can show, to
3the Department's satisfaction, that they sold the cigarettes to
4which they affixed such stamps after such tax had terminated
5and did not recover the tax or its equivalent from purchasers,
6shall be allowed by the Department to take credit for such
7absorbed tax against subsequent tax stamp purchases from the
8Department by such distributor.
9    The impact of the tax levied by this Act is imposed upon
10the retailer and shall be prepaid or pre-collected by the
11distributor for the purpose of convenience and facility only,
12and the amount of the tax shall be added to the price of the
13cigarettes sold by such distributor. Collection of the tax
14shall be evidenced by a stamp or stamps affixed to each
15original package of cigarettes, as hereinafter provided.
16    Each distributor shall collect the tax from the retailer at
17or before the time of the sale, shall affix the stamps as
18hereinafter required, and shall remit the tax collected from
19retailers to the Department, as hereinafter provided. Any
20distributor who fails to properly collect and pay the tax
21imposed by this Act shall be liable for the tax. Any
22distributor having cigarettes to which stamps have been affixed
23in his possession for sale on the effective date of this
24amendatory Act of 1989 shall not be required to pay the
25additional tax imposed by this amendatory Act of 1989 on such
26stamped cigarettes. Any distributor having cigarettes to which

 

 

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1stamps have been affixed in his or her possession for sale at
212:01 a.m. on the effective date of this amendatory Act of
31993, is required to pay the additional tax imposed by this
4amendatory Act of 1993 on such stamped cigarettes. This
5payment, less the discount provided in subsection (b), shall be
6due when the distributor first makes a purchase of cigarette
7tax stamps after the effective date of this amendatory Act of
81993, or on the first due date of a return under this Act after
9the effective date of this amendatory Act of 1993, whichever
10occurs first. Any distributor having cigarettes to which stamps
11have been affixed in his possession for sale on December 15,
121997 shall not be required to pay the additional tax imposed by
13this amendatory Act of 1997 on such stamped cigarettes.
14    Any distributor having cigarettes to which stamps have been
15affixed in his or her possession for sale on July 1, 2002 shall
16not be required to pay the additional tax imposed by this
17amendatory Act of the 92nd General Assembly on those stamped
18cigarettes.
19    Any retailer having cigarettes in his or her possession on
20June 24, 2012 to which tax stamps have been affixed is not
21required to pay the additional tax that begins on June 24, 2012
22imposed by this amendatory Act of the 97th General Assembly on
23those stamped cigarettes. Any distributor having cigarettes in
24his or her possession on June 24, 2012 to which tax stamps have
25been affixed, and any distributor having stamps in his or her
26possession on June 24, 2012 that have not been affixed to

 

 

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1packages of cigarettes before June 24, 2012, is required to pay
2the additional tax that begins on June 24, 2012 imposed by this
3amendatory Act of the 97th General Assembly to the extent the
4calendar year 2012 average monthly volume of cigarette stamps
5in the distributor's possession exceeds the average monthly
6volume of cigarette stamps purchased by the distributor in
7calendar year 2011. This payment, less the discount provided in
8subsection (b), is due when the distributor first makes a
9purchase of cigarette stamps on or after June 24, 2012 or on
10the first due date of a return under this Act occurring on or
11after June 24, 2012, whichever occurs first. Those distributors
12may elect to pay the additional tax on packages of cigarettes
13to which stamps have been affixed and on any stamps in the
14distributor's possession that have not been affixed to packages
15of cigarettes over a period not to exceed 12 months from the
16due date of the additional tax by notifying the Department in
17writing. The first payment for distributors making such
18election is due when the distributor first makes a purchase of
19cigarette tax stamps on or after June 24, 2012 or on the first
20due date of a return under this Act occurring on or after June
2124, 2012, whichever occurs first. Distributors making such an
22election are not entitled to take the discount provided in
23subsection (b) on such payments.
24    Distributors making sales of cigarettes to secondary
25distributors shall add the amount of the tax to the price of
26the cigarettes sold by the distributors. Secondary

 

 

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1distributors making sales of cigarettes to retailers shall
2include the amount of the tax in the price of the cigarettes
3sold to retailers. The amount of tax shall not be less than the
4amount of taxes imposed by the State and all local
5jurisdictions. The amount of local taxes shall be calculated
6based on the location of the retailer's place of business shown
7on the retailer's certificate of registration or
8sub-registration issued to the retailer pursuant to Section 2a
9of the Retailers' Occupation Tax Act. The original packages of
10cigarettes sold to the retailer shall bear all the required
11stamps, or other indicia, for the taxes included in the price
12of cigarettes.
13    The amount of the Cigarette Tax imposed by this Act shall
14be separately stated, apart from the price of the goods, by
15distributors, manufacturer representatives, secondary
16distributors, and retailers, in all bills and sales invoices.
17    (b) The distributor shall be required to collect the taxes
18provided under paragraph (a) hereof, and, to cover the costs of
19such collection, shall be allowed a discount during any year
20commencing July 1st and ending the following June 30th in
21accordance with the schedule set out hereinbelow, which
22discount shall be allowed at the time of purchase of the stamps
23when purchase is required by this Act, or at the time when the
24tax is remitted to the Department without the purchase of
25stamps from the Department when that method of paying the tax
26is required or authorized by this Act. Prior to December 1,

 

 

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11985, a discount equal to 1 2/3% of the amount of the tax up to
2and including the first $700,000 paid hereunder by such
3distributor to the Department during any such year; 1 1/3% of
4the next $700,000 of tax or any part thereof, paid hereunder by
5such distributor to the Department during any such year; 1% of
6the next $700,000 of tax, or any part thereof, paid hereunder
7by such distributor to the Department during any such year, and
82/3 of 1% of the amount of any additional tax paid hereunder by
9such distributor to the Department during any such year shall
10apply. On and after December 1, 1985, a discount equal to 1.75%
11of the amount of the tax payable under this Act up to and
12including the first $3,000,000 paid hereunder by such
13distributor to the Department during any such year and 1.5% of
14the amount of any additional tax paid hereunder by such
15distributor to the Department during any such year shall apply.
16    Two or more distributors that use a common means of
17affixing revenue tax stamps or that are owned or controlled by
18the same interests shall be treated as a single distributor for
19the purpose of computing the discount.
20    (c) The taxes herein imposed are in addition to all other
21occupation or privilege taxes imposed by the State of Illinois,
22or by any political subdivision thereof, or by any municipal
23corporation.
24(Source: P.A. 96-1027, eff. 7-12-10; 97-587, eff. 8-26-11;
2597-688, eff. 6-14-12.)
 

 

 

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1    Section 10. The Cigarette Use Tax Act is amended by
2changing Section 1 as follows:
 
3    (35 ILCS 135/1)  (from Ch. 120, par. 453.31)
4    Sec. 1. For the purpose of this Act, unless otherwise
5required by the context:
6    "Use" means the exercise by any person of any right or
7power over cigarettes incident to the ownership or possession
8thereof, other than the making of a sale thereof in the course
9of engaging in a business of selling cigarettes and shall
10include the keeping or retention of cigarettes for use, except
11that "use" does not include the use of cigarettes by a
12not-for-profit research institution conducting tests
13concerning the health effects of tobacco products, provided the
14cigarettes are not offered for resale.
15    "Brand Style" means a variety of cigarettes distinguished
16by the tobacco used, tar and nicotine content, flavoring used,
17size of the cigarette, filtration on the cigarette or
18packaging.
19    Until July 1, 2012, and beginning July 1, 2013, "cigarette"
20means any roll for smoking made wholly or in part of tobacco
21irrespective of size or shape and whether or not such tobacco
22is flavored, adulterated or mixed with any other ingredient,
23and the wrapper or cover of which is made of paper or any other
24substance or material except tobacco.
25    "Cigarette", beginning on and after July 1, 2012, and

 

 

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

 

 

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1    under this Act;
2        (b) cigarettes for which any required federal taxes
3    have not been paid;
4        (c) cigarettes that bear a counterfeit tax stamp;
5        (d) cigarettes that are manufactured, fabricated,
6    assembled, processed, packaged, or labeled by any person
7    other than (i) the owner of the trademark rights in the
8    cigarette brand or (ii) a person that is directly or
9    indirectly authorized by such owner;
10        (e) cigarettes imported into the United States, or
11    otherwise distributed, in violation of the federal
12    Imported Cigarette Compliance Act of 2000 (Title IV of
13    Public Law 106-476);
14        (f) cigarettes that have false manufacturing labels;
15        (g) cigarettes identified in Section 3-10(a)(1) of
16    this Act;
17        (h) cigarettes that are improperly tax stamped,
18    including cigarettes that bear a tax stamp of another state
19    or taxing jurisdiction; or
20        (i) cigarettes made or fabricated by a person holding a
21    cigarette machine operator license under Section 1-20 of
22    the Cigarette Machine Operators' Occupation Tax Act in the
23    possession of manufacturers, distributors, secondary
24    distributors, manufacturer representatives or other
25    retailers for the purpose of resale, regardless of whether
26    the tax has been paid on such cigarettes.

 

 

09800SB0338sam002- 21 -LRB098 04613 HLH 44846 a

1    "Person" means any natural individual, firm, partnership,
2association, joint stock company, joint adventure, public or
3private corporation, however formed, limited liability
4company, or a receiver, executor, administrator, trustee,
5guardian or other representative appointed by order of any
6court.
7    "Department" means the Department of Revenue.
8    "Sale" means any transfer, exchange or barter in any manner
9or by any means whatsoever for a consideration, and includes
10and means all sales made by any person.
11    "Original Package" means the individual packet, box or
12other container whatsoever used to contain and to convey
13cigarettes to the consumer.
14    "Distributor" means any and each of the following:
15        a. Any person engaged in the business of selling
16    cigarettes in this State who brings or causes to be brought
17    into this State from without this State any original
18    packages of cigarettes, on which original packages there is
19    no authorized evidence underneath a sealed transparent
20    wrapper showing that the tax liability imposed by this Act
21    has been paid or assumed by the out-of-State seller of such
22    cigarettes, for sale in the course of such business.
23        b. Any person who makes, manufactures or fabricates
24    cigarettes in this State for sale, except a person who
25    makes, manufactures or fabricates cigarettes for sale to
26    residents incarcerated in penal institutions or resident

 

 

09800SB0338sam002- 22 -LRB098 04613 HLH 44846 a

1    patients or a State-operated mental health facility.
2        c. Any person who makes, manufactures or fabricates
3    cigarettes outside this State, which cigarettes are placed
4    in original packages contained in sealed transparent
5    wrappers, for delivery or shipment into this State, and who
6    elects to qualify and is accepted by the Department as a
7    distributor under Section 7 of this Act.
8    "Distributor" does not include any person who transfers
9cigarettes to a not-for-profit research institution that
10conducts tests concerning the health effects of tobacco
11products and who does not offer the cigarettes for resale.
12    "Distributor maintaining a place of business in this
13State", or any like term, means any distributor having or
14maintaining within this State, directly or by a subsidiary, an
15office, distribution house, sales house, warehouse or other
16place of business, or any agent operating within this State
17under the authority of the distributor or its subsidiary,
18irrespective of whether such place of business or agent is
19located here permanently or temporarily, or whether such
20distributor or subsidiary is licensed to transact business
21within this State.
22    "Business" means any trade, occupation, activity or
23enterprise engaged in or conducted in this State for the
24purpose of selling cigarettes.
25    "Prior Continuous Compliance Taxpayer" means any person
26who is licensed under this Act and who, having been a licensee

 

 

09800SB0338sam002- 23 -LRB098 04613 HLH 44846 a

1for a continuous period of 5 years, is determined by the
2Department not to have been either delinquent or deficient in
3the payment of tax liability during that period or otherwise in
4violation of this Act. Also, any taxpayer who has, as verified
5by the Department, continuously complied with the condition of
6his bond or other security under provisions of this Act of a
7period of 5 consecutive years shall be considered to be a
8"prior continuous compliance taxpayer". In calculating the
9consecutive period of time described herein for qualification
10as a "prior continuous compliance taxpayer", a consecutive
11period of time of qualifying compliance immediately prior to
12the effective date of this amendatory Act of 1987 shall be
13credited to any licensee who became licensed on or before the
14effective date of this amendatory Act of 1987.
15    "Secondary distributor" means any person engaged in the
16business of selling cigarettes who purchases stamped original
17packages of cigarettes from a licensed distributor under this
18Act or the Cigarette Tax Act, sells 75% or more of those
19cigarettes to retailers for resale, and maintains an
20established business where a substantial stock of cigarettes is
21available to retailers for resale.
22    "Secondary distributor maintaining a place of business in
23this State", or any like term, means any secondary distributor
24having or maintaining within this State, directly or by a
25subsidiary, an office, distribution house, sales house,
26warehouse, or other place of business, or any agent operating

 

 

09800SB0338sam002- 24 -LRB098 04613 HLH 44846 a

1within this State under the authority of the secondary
2distributor or its subsidiary, irrespective of whether such
3place of business or agent is located here permanently or
4temporarily, or whether such secondary distributor or
5subsidiary is licensed to transact business within this State.
6    "Stamp" or "stamps" mean the indicia required to be affixed
7on a pack of cigarettes that evidence payment of the tax on
8cigarettes under Section 2 of this Act.
9    "Related party" means any person that is associated with
10any other person because he or she:
11        (a) is an officer or director of a business; or
12        (b) is legally recognized as a partner in business.
13(Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10;
1497-688, eff. 6-14-12.)
 
15    Section 15. The Tobacco Products Tax Act of 1995 is amended
16by changing Sections 10-5, 10-10, 10-15, 10-30, and 10-45 and
17by adding Sections 10-26, 10-27, 10-28, 10-29, and 10-36 as
18follows:
 
19    (35 ILCS 143/10-5)
20    Sec. 10-5. Definitions. For purposes of this Act:
21    "Business" means any trade, occupation, activity, or
22enterprise engaged in, at any location whatsoever, for the
23purpose of selling tobacco products.
24    "Cigarette" has the meaning ascribed to the term in Section

 

 

09800SB0338sam002- 25 -LRB098 04613 HLH 44846 a

11 of the Cigarette Tax Act.
2    "Contraband little cigar" means:
3        (1) packages of little cigars containing 20 or 25
4    little cigars that do not bear a required tax stamp under
5    this Act;
6        (2) packages of little cigars containing 20 or 25
7    little cigars that bear a fraudulent, imitation, or
8    counterfeit tax stamp;
9        (3) packages of little cigars containing 20 or 25
10    little cigars that are improperly tax stamped, including
11    packages of little cigars that bear only a tax stamp of
12    another state or taxing jurisdiction; or
13        (4) packages of little cigars containing other than 20
14    or 25 little cigars in the possession of a distributor,
15    retailer or wholesaler, unless the distributor, retailer,
16    or wholesaler possesses, or produces within the time frame
17    provided in Section 10-27 or 10-28 of this Act, an invoice
18    from a stamping distributor, distributor, or wholesaler
19    showing that the tax on the packages has been or will be
20    paid.
21    "Correctional Industries program" means a program run by a
22State penal institution in which residents of the penal
23institution produce tobacco products for sale to persons
24incarcerated in penal institutions or resident patients of a
25State operated mental health facility.
26    "Department" means the Illinois Department of Revenue.

 

 

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1    "Distributor" means any of the following:
2        (1) Any manufacturer or wholesaler in this State
3    engaged in the business of selling tobacco products who
4    sells, exchanges, or distributes tobacco products to
5    retailers or consumers in this State.
6        (2) Any manufacturer or wholesaler engaged in the
7    business of selling tobacco products from without this
8    State who sells, exchanges, distributes, ships, or
9    transports tobacco products to retailers or consumers
10    located in this State, so long as that manufacturer or
11    wholesaler has or maintains within this State, directly or
12    by subsidiary, an office, sales house, or other place of
13    business, or any agent or other representative operating
14    within this State under the authority of the person or
15    subsidiary, irrespective of whether the place of business
16    or agent or other representative is located here
17    permanently or temporarily.
18        (3) Any retailer who receives tobacco products on which
19    the tax has not been or will not be paid by another
20    distributor.
21    "Distributor" does not include any person, wherever
22resident or located, who makes, manufactures, or fabricates
23tobacco products as part of a Correctional Industries program
24for sale to residents incarcerated in penal institutions or
25resident patients of a State operated mental health facility.
26    "Little cigar" means and includes any roll, made wholly or

 

 

09800SB0338sam002- 27 -LRB098 04613 HLH 44846 a

1in part of tobacco, where such roll has an integrated cellulose
2acetate filter and weighs less than 4 pounds per thousand and
3the wrapper or cover of which is made in whole or in part of
4tobacco.
5    "Manufacturer" means any person, wherever resident or
6located, who manufactures and sells tobacco products, except a
7person who makes, manufactures, or fabricates tobacco products
8as a part of a Correctional Industries program for sale to
9persons incarcerated in penal institutions or resident
10patients of a State operated mental health facility.
11    Beginning on January 1, 2013, "moist snuff" means any
12finely cut, ground, or powdered tobacco that is not intended to
13be smoked, but shall not include any finely cut, ground, or
14powdered tobacco that is intended to be placed in the nasal
15cavity.
16    "Person" means any natural individual, firm, partnership,
17association, joint stock company, joint venture, limited
18liability company, or public or private corporation, however
19formed, or a receiver, executor, administrator, trustee,
20conservator, or other representative appointed by order of any
21court.
22    "Place of business" means and includes any place where
23tobacco products are sold or where tobacco products are
24manufactured, stored, or kept for the purpose of sale or
25consumption, including any vessel, vehicle, airplane, train,
26or vending machine.

 

 

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1    "Retailer" means any person in this State engaged in the
2business of selling tobacco products to consumers in this
3State, regardless of quantity or number of sales.
4    "Sale" means any transfer, exchange, or barter in any
5manner or by any means whatsoever for a consideration and
6includes all sales made by persons.
7    "Stamp" or "stamps" mean the indicia required to be affixed
8on a package of little cigars that evidence payment of the tax
9on packages of little cigars containing 20 or 25 little cigars
10under Section 10-10 of this Act. These stamps shall be the same
11stamps used for cigarettes under the Cigarette Tax Act.
12    "Stamping distributor" means a distributor licensed under
13this Act and also licensed as a distributor under the Cigarette
14Tax Act or Cigarette Use Tax Act.
15    "Tobacco products" means any cigars, including little
16cigars; cheroots; stogies; periques; granulated, plug cut,
17crimp cut, ready rubbed, and other smoking tobacco; snuff
18(including moist snuff) or snuff flour; cavendish; plug and
19twist tobacco; fine-cut and other chewing tobaccos; shorts;
20refuse scraps, clippings, cuttings, and sweeping of tobacco;
21and other kinds and forms of tobacco, prepared in such manner
22as to be suitable for chewing or smoking in a pipe or
23otherwise, or both for chewing and smoking; but does not
24include cigarettes or tobacco purchased for the manufacture of
25cigarettes by cigarette distributors and manufacturers defined
26in the Cigarette Tax Act and persons who make, manufacture, or

 

 

09800SB0338sam002- 29 -LRB098 04613 HLH 44846 a

1fabricate cigarettes as a part of a Correctional Industries
2program for sale to residents incarcerated in penal
3institutions or resident patients of a State operated mental
4health facility.
5    "Wholesale price" means the established list price for
6which a manufacturer sells tobacco products to a distributor,
7before the allowance of any discount, trade allowance, rebate,
8or other reduction. In the absence of such an established list
9price, the manufacturer's invoice price at which the
10manufacturer sells the tobacco product to unaffiliated
11distributors, before any discounts, trade allowances, rebates,
12or other reductions, shall be presumed to be the wholesale
13price.
14    "Wholesaler" means any person, wherever resident or
15located, engaged in the business of selling tobacco products to
16others for the purpose of resale. "Wholesaler", when used in
17this Act, does not include a person licensed as a distributor
18under Section 10-20 of this Act unless expressly stated in this
19Act.
20(Source: P.A. 97-688, eff. 6-14-12.)
 
21    (35 ILCS 143/10-10)
22    Sec. 10-10. Tax imposed.
23    (a) Except as otherwise provided in this Section with
24respect to little cigars, on On the first day of the third
25month after the month in which this Act becomes law, a tax is

 

 

09800SB0338sam002- 30 -LRB098 04613 HLH 44846 a

1imposed on any person engaged in business as a distributor of
2tobacco products, as defined in Section 10-5, at the rate of
3(i) 18% of the wholesale price of tobacco products sold or
4otherwise disposed of to retailers or consumers located in this
5State prior to July 1, 2012 and (ii) 36% of the wholesale price
6of tobacco products sold or otherwise disposed of to retailers
7or consumers located in this State beginning on July 1, 2012;
8except that, beginning on January 1, 2013, the tax on moist
9snuff shall be imposed at a rate of $0.30 per ounce, and a
10proportionate tax at the like rate on all fractional parts of
11an ounce, sold or otherwise disposed of to retailers or
12consumers located in this State. The tax is in addition to all
13other occupation or privilege taxes imposed by the State of
14Illinois, by any political subdivision thereof, or by any
15municipal corporation. However, the tax is not imposed upon any
16activity in that business in interstate commerce or otherwise,
17to the extent to which that activity may not, under the
18Constitution and Statutes of the United States, be made the
19subject of taxation by this State, and except that, beginning
20July 1, 2013, the tax on little cigars shall be imposed at the
21same rate, and the proceeds shall be distributed in the same
22manner, as the tax imposed on cigarettes under the Cigarette
23Tax Act. The tax is also not imposed on sales made to the
24United States or any entity thereof.
25    (b) Notwithstanding subsection (a) of this Section,
26stamping distributors of packages of little cigars containing

 

 

09800SB0338sam002- 31 -LRB098 04613 HLH 44846 a

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

 

 

09800SB0338sam002- 32 -LRB098 04613 HLH 44846 a

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

 

 

09800SB0338sam002- 33 -LRB098 04613 HLH 44846 a

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

 

 

09800SB0338sam002- 34 -LRB098 04613 HLH 44846 a

1    (35 ILCS 143/10-27 new)
2    Sec. 10-27. Retailers; purchase and possession of little
3cigars.
4    (a) Retailers are prohibited from possessing unstamped
5packages of little cigars containing 20 or 25 little cigars at
6locations where retailers make sales of little cigars to
7consumers or users. Retailers that are also stamping
8distributors are prohibited from possessing unstamped little
9cigars at locations where those retailers make sales of
10packages of little cigars containing 20 or 25 little cigars to
11consumers or users. Retailers that are not stamping
12distributors shall purchase stamped packages of little cigars
13containing 20 or 25 little cigars for resale only from stamping
14distributors, distributors, or wholesalers. Retailers who are
15not stamping distributors may not purchase or possess unstamped
16packages of little cigars containing 20 or 25 little cigars. A
17retailer must be a stamping distributor to make tax exempt
18sales of packages of little cigars containing 20 or 25 little
19cigars for use outside of this State. A retailer who is a
20stamping distributor making sales of stamped packages of little
21cigars for use outside of this State may file a claim for
22credit for such sales with the Department on forms and in the
23manner provided by the Department.
24    (b) For purchases of packages of little cigars containing
25other than 20 or 25 little cigars, retailers who are not

 

 

09800SB0338sam002- 35 -LRB098 04613 HLH 44846 a

1stamping distributors may not purchase or possess such packages
2of little cigars, unless the retailer receives an invoice from
3a stamping distributor, distributor, or wholesaler stating the
4tax on the packages has been or will be paid. Retailers shall
5retain such invoices for inspection by the Department. If a
6retailer maintaining multiple retail locations notifies the
7Department in writing that it maintains its invoices at a
8centralized business location, the Department shall have the
9authority to inspect invoices at the centralized business
10location at all times during the usual business hours of the
11day and the Department may grant the retailer 3 business days
12to produce the invoices at the retail location at which the
13request was made. A retailer must be a stamping distributor to
14make tax exempt sales of packages of little cigars containing
15other than 20 or 25 little cigars for use outside of this
16State. A retailer who is a stamping distributor making sales of
17packages of little cigars containing other than 20 or 25 little
18cigars for use outside of this State on which the tax has been
19or will be paid by another stamping distributor or was paid by
20the retailer may file a claim for credit for such sales with
21the Department on forms and in the manner provided by the
22Department.
23    (c) Notwithstanding anything to the contrary in this Act, a
24retailer unknowingly possessing contraband little cigars
25obtained from a stamping distributor, distributor, or
26wholesaler or other person engaged in the business of selling

 

 

09800SB0338sam002- 36 -LRB098 04613 HLH 44846 a

1tobacco products or knowingly possessing contraband little
2cigars obtained from a stamping distributor is not subject to
3penalties for such purchase or possession if the retailer,
4within 48 hours after discovering that the little cigars are
5contraband little cigars, excluding Saturdays, Sundays, and
6holidays: (i) notifies the Department and the person from whom
7the little cigars were obtained, orally and in writing, that he
8or she possesses contraband little cigars; (ii) places the
9contraband little cigars in one or more containers and seals
10those containers; and (iii) places on the containers the
11following or similar language: "Contraband Little Cigars. Not
12For Sale." All contraband little cigars in the possession of a
13retailer remain subject to forfeiture under the provisions of
14this Act.
 
15    (35 ILCS 143/10-28 new)
16    Sec. 10-28. Wholesalers.
17    (a) Wholesalers are prohibited from possessing unstamped
18packages of little cigars containing 20 or 25 little cigars
19unless the wholesalers are stamping distributors. A wholesaler
20must be a stamping distributor to make tax exempt sales of
21packages of little cigars containing 20 or 25 little cigars for
22use outside of this State. A wholesaler who is a stamping
23distributor making sales of stamped packages of little cigars
24for use outside of this State may file a claim for credit for
25such sales with the Department on forms and in the manner

 

 

09800SB0338sam002- 37 -LRB098 04613 HLH 44846 a

1provided by the Department.
2    (b) For purchases of packages of little cigars containing
3other than 20 or 25 little cigars, wholesalers who are not
4stamping distributors may not purchase or possess such packages
5of little cigars, unless the wholesalers receive an invoice
6from a stamping distributor, distributor, or wholesaler
7stating the tax on the packages has been or will be paid.
8Wholesalers shall retain such invoices for inspection by the
9Department. Every sales invoice for packages of little cigars
10containing other than 20 or 25 little cigars issued by a
11wholesaler to a person who is not a stamping distributor shall
12state that the tax imposed by the Act has been or will be paid.
13If a wholesaler maintaining multiple wholesale locations
14notifies the Department in writing that it maintains its
15invoices at a centralized business location, the Department
16shall have the authority to inspect invoices at the centralized
17business location at all times during the usual business hours
18of the day and the Department may grant the wholesaler 3
19business days to produce the invoices at the wholesale location
20at which the request was made. A wholesaler must be a stamping
21distributor to make tax exempt sales of packages of little
22cigars containing other than 20 or 25 little cigars for use
23outside of this State. A wholesaler who is a stamping
24distributor making sales of packages of little cigars
25containing other than 20 or 25 little cigars for use outside of
26this State on which the tax has been or will be paid by another

 

 

09800SB0338sam002- 38 -LRB098 04613 HLH 44846 a

1stamping distributor or was paid by the wholesaler may file a
2claim for credit for such sales with the Department on forms
3and in the manner provided by the Department.
 
4    (35 ILCS 143/10-29 new)
5    Sec. 10-29. Invoices; packages of little cigars.
6    (a) Every sales invoice for packages of little cigars
7containing other than 20 or 25 little cigars issued by a
8stamping distributor to a person who is not a stamping
9distributor shall contain both the stamping distributor's
10Tobacco Products License number and Cigarette Tax
11Distributor's License number or Cigarette Use Tax
12Distributor's License number and state that the tax imposed by
13the Act has been or will be paid or that the sale is exempt in
14whole or in part and the exemption which is claimed.
15    (b) Any stamping distributor, distributor or wholesaler
16who knowingly falsely states on the invoice that the tax
17imposed by this Act has been or will be paid, or any officer or
18employee of a corporation, member or employee of a partnership,
19or manager, member or employee of a limited liability company
20that is a stamping distributor, distributor, or wholesaler,
21who, as such officer, employee, manager, or member, knowingly
22causes to be issued an invoice on behalf of such entity, that
23such person knows falsely states that the tax imposed by the
24Act has been or will be paid, is guilty of a Class 4 felony.
25    (c) Whenever any sales invoice issued by a stamping

 

 

09800SB0338sam002- 39 -LRB098 04613 HLH 44846 a

1distributor, distributor or wholesaler for the sale of packages
2of little cigars containing other than 20 or 25 little cigars
3does not comply with subsection (b) of Section 10-28 or
4subsection (a) of this Section by indicating that the tax has
5been or will be paid or that the sale is exempt in whole or in
6part, a prima facie presumption shall arise that the tax
7imposed by Section 10-10 of this Act has not been paid on the
8little cigars listed on the sales invoice. A person who is not
9a stamping distributor and is unable to rebut this presumption
10is in violation of this Act and is subject to the penalties
11provided in this Act.
 
12    (35 ILCS 143/10-30)
13    Sec. 10-30. Returns.
14    (a) Every distributor shall, on or before the 15th day of
15each month, file a return with the Department covering the
16preceding calendar month. The return shall disclose the
17wholesale price for all tobacco products other than moist snuff
18and the quantity in ounces of moist snuff sold or otherwise
19disposed of and other information that the Department may
20reasonably require. The return shall be filed upon a form
21prescribed and furnished by the Department.
22    (b) In addition to the information required under
23subsection (a), on or before the 15th day of each month,
24covering the preceding calendar month, each stamping
25distributor shall, on forms prescribed and furnished by the

 

 

09800SB0338sam002- 40 -LRB098 04613 HLH 44846 a

1Department, report the quantity of little cigars sold or
2otherwise disposed of, including the number of packages of
3little cigars sold or disposed of during the month containing
420 or 25 little cigars.
5    (c) At the time when any return of any distributor is due
6to be filed with the Department, the distributor shall also
7remit to the Department the tax liability that the distributor
8has incurred for transactions occurring in the preceding
9calendar month.
10    (d) The Department may adopt rules to require the
11electronic filing of any return or document required to be
12filed under this Act. Those rules may provide for exceptions
13from the filing requirement set forth in this paragraph for
14persons who demonstrate that they do not have access to the
15Internet and petition the Department to waive the electronic
16filing requirement.
17(Source: P.A. 97-688, eff. 6-14-12.)
 
18    (35 ILCS 143/10-36 new)
19    Sec. 10-36. Recordkeeping by retailers. Every retailer
20shall keep complete and accurate records of tobacco products
21held and purchased, and tobacco products sold or otherwise
22disposed of, and shall preserve and keep all invoices, bills of
23lading, sales records, and copies of bills of sale. Books,
24records, papers, and documents that are required by this Act to
25be kept shall, at all times during the usual business hours of

 

 

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1the day, be subject to inspection by the Department or its duly
2authorized agents and employees. The books, records, papers,
3and documents for any period with respect to which the
4Department is authorized to issue a notice of tax liability
5shall be preserved until the expiration of that period.
 
6    (35 ILCS 143/10-45)
7    Sec. 10-45. Incorporation by reference. All of the
8provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
95i, 5j, 6, 6a, 6b, 6c, 8, 9, 10, 11, 11a, and 12 of the
10Retailers' Occupation Tax Act, and all applicable provisions of
11the Uniform Penalty and Interest Act that are not inconsistent
12with this Act, apply to distributors of tobacco products to the
13same extent as if those provisions were included in this Act.
14References in the incorporated Sections of the Retailers'
15Occupation Tax Act to retailers, to sellers, or to persons
16engaged in the business of selling tangible personal property
17mean distributors when used in this Act. References in the
18incorporated Sections to sales of tangible personal property
19mean sales of tobacco products when used in this Act.
20    All of the provisions of Sections 7, 8, 8a, 16, 18a, 18b,
2118c, 22, 23, 24, 26, 27, and 28a of the Cigarette Tax Act which
22are not inconsistent with this Act shall apply, as far as
23practicable, to the subject matter of this Act to the same
24extent as if those provisions were included in this Act.
25References in the incorporated Sections to sales of cigarettes

 

 

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1mean sales of little cigars in packages of 20 or 25 little
2cigars.
3(Source: P.A. 89-21, eff. 6-6-95.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.".