98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3331

 

Introduced , by Rep. Mike Bost

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/5.826 new
235 ILCS 5/8-1

    Amends the State Finance Act. Creates the Grow Illinois Jobs Fund. Amends the Liquor Control Act of 1934. Provides that, beginning on January 1, 2014, of the proceeds from the tax imposed under the Act on wine other than cider containing less than 7% alcohol per volume, 2 cents per gallon shall be deposited into the Grow Illinois Jobs Fund. Provides that the moneys in the Fund shall be equally distributed between the Department of Agriculture and the Department of Commerce and Economic Opportunity for the specific purpose of developing and promoting the grape and wine industry in Illinois. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by adding
5Section 5.826 as follows:
 
6    (30 ILCS 105/5.826 new)
7    Sec. 5.826. The Grow Illinois Jobs Fund.
 
8    Section 10. The Liquor Control Act of 1934 is amended by
9changing Section 8-1 as follows:
 
10    (235 ILCS 5/8-1)
11    Sec. 8-1. A tax is imposed upon the privilege of engaging
12in business as a manufacturer or as an importing distributor of
13alcoholic liquor other than beer at the rate of $0.185 per
14gallon until September 1, 2009 and $0.231 per gallon beginning
15September 1, 2009 for cider containing not less than 0.5%
16alcohol by volume nor more than 7% alcohol by volume, $0.73 per
17gallon until September 1, 2009 and $1.39 per gallon beginning
18September 1, 2009 for wine other than cider containing less
19than 7% alcohol by volume, and $4.50 per gallon until September
201, 2009 and $8.55 per gallon beginning September 1, 2009 on
21alcohol and spirits manufactured and sold or used by such

 

 

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1manufacturer, or as agent for any other person, or sold or used
2by such importing distributor, or as agent for any other
3person. A tax is imposed upon the privilege of engaging in
4business as a manufacturer of beer or as an importing
5distributor of beer at the rate of $0.185 per gallon until
6September 1, 2009 and $0.231 per gallon beginning September 1,
72009 on all beer manufactured and sold or used by such
8manufacturer, or as agent for any other person, or sold or used
9by such importing distributor, or as agent for any other
10person. Any brewer manufacturing beer in this State shall be
11entitled to and given a credit or refund of 75% of the tax
12imposed on each gallon of beer up to 4.9 million gallons per
13year in any given calendar year for tax paid or payable on beer
14produced and sold in the State of Illinois.
15    For the purpose of this Section, "cider" means any
16alcoholic beverage obtained by the alcohol fermentation of the
17juice of apples or pears including, but not limited to,
18flavored, sparkling, or carbonated cider.
19    The credit or refund created by this Act shall apply to all
20beer taxes in the calendar years 1982 through 1986.
21    The increases made by this amendatory Act of the 91st
22General Assembly in the rates of taxes imposed under this
23Section shall apply beginning on July 1, 1999.
24    A tax at the rate of 1 per gallon on beer and 48 per
25gallon on alcohol and spirits is also imposed upon the
26privilege of engaging in business as a retailer or as a

 

 

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1distributor who is not also an importing distributor with
2respect to all beer and all alcohol and spirits owned or
3possessed by such retailer or distributor when this amendatory
4Act of 1969 becomes effective, and with respect to which the
5additional tax imposed by this amendatory Act upon
6manufacturers and importing distributors does not apply.
7Retailers and distributors who are subject to the additional
8tax imposed by this paragraph of this Section shall be required
9to inventory such alcoholic liquor and to pay this additional
10tax in a manner prescribed by the Department.
11    The provisions of this Section shall be construed to apply
12to any importing distributor engaging in business in this
13State, whether licensed or not.
14    However, such tax is not imposed upon any such business as
15to any alcoholic liquor shipped outside Illinois by an Illinois
16licensed manufacturer or importing distributor, nor as to any
17alcoholic liquor delivered in Illinois by an Illinois licensed
18manufacturer or importing distributor to a purchaser for
19immediate transportation by the purchaser to another state into
20which the purchaser has a legal right, under the laws of such
21state, to import such alcoholic liquor, nor as to any alcoholic
22liquor other than beer sold by one Illinois licensed
23manufacturer or importing distributor to another Illinois
24licensed manufacturer or importing distributor to the extent to
25which the sale of alcoholic liquor other than beer by one
26Illinois licensed manufacturer or importing distributor to

 

 

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1another Illinois licensed manufacturer or importing
2distributor is authorized by the licensing provisions of this
3Act, nor to alcoholic liquor whether manufactured in or
4imported into this State when sold to a "non-beverage user"
5licensed by the State for use in the manufacture of any of the
6following when they are unfit for beverage purposes:
7    Patent and proprietary medicines and medicinal,
8antiseptic, culinary and toilet preparations;
9    Flavoring extracts and syrups and food products;
10    Scientific, industrial and chemical products, excepting
11denatured alcohol;
12    Or for scientific, chemical, experimental or mechanical
13purposes;
14    Nor is the tax imposed upon the privilege of engaging in
15any business in interstate commerce or otherwise, which
16business may not, under the Constitution and Statutes of the
17United States, be made the subject of taxation by this State.
18    The tax herein imposed shall be in addition to all other
19occupation or privilege taxes imposed by the State of Illinois
20or political subdivision thereof.
21    If any alcoholic liquor manufactured in or imported into
22this State is sold to a licensed manufacturer or importing
23distributor by a licensed manufacturer or importing
24distributor to be used solely as an ingredient in the
25manufacture of any beverage for human consumption, the tax
26imposed upon such purchasing manufacturer or importing

 

 

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1distributor shall be reduced by the amount of the taxes which
2have been paid by the selling manufacturer or importing
3distributor under this Act as to such alcoholic liquor so used
4to the Department of Revenue.
5    If any person received any alcoholic liquors from a
6manufacturer or importing distributor, with respect to which
7alcoholic liquors no tax is imposed under this Article, and
8such alcoholic liquor shall thereafter be disposed of in such
9manner or under such circumstances as may cause the same to
10become the base for the tax imposed by this Article, such
11person shall make the same reports and returns, pay the same
12taxes and be subject to all other provisions of this Article
13relating to manufacturers and importing distributors.
14    Nothing in this Article shall be construed to require the
15payment to the Department of the taxes imposed by this Article
16more than once with respect to any quantity of alcoholic liquor
17sold or used within this State.
18    No tax is imposed by this Act on sales of alcoholic liquor
19by Illinois licensed foreign importers to Illinois licensed
20importing distributors.
21    All of the proceeds of the additional tax imposed by Public
22Act 96-34 shall be deposited by the Department into the Capital
23Projects Fund. The remainder of the tax imposed by this Act
24shall be deposited by the Department into the General Revenue
25Fund, except that, beginning on January 1, 2014, 2 cents per
26gallon of the tax imposed under this Act on wine other than

 

 

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1cider containing less than 7% alcohol per volume shall be
2deposited into the Grow Illinois Jobs Fund, a special fund
3created in the State treasury, and the moneys in the Fund shall
4be equally distributed between the Department of Agriculture
5and the Department of Commerce and Economic Opportunity for the
6specific purpose of developing and promoting the grape and wine
7industry in Illinois.
8    The provisions of this Section 8-1 are severable under
9Section 1.31 of the Statute on Statutes.
10(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
11eff. 7-13-09; 96-1000, eff. 7-2-10.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.