Section 660.10  General Definitions

 

"Act" means the Tobacco Products Tax Act of 1995 [35 ILCS 143/Art. 10].

 

"Business" means any trade, occupation, activity, or enterprise engaged in, at any location whatsoever, for the purpose of selling tobacco products. [35 ILCS 143/10-5]

 

"Contraband little cigar" means:

 

packages of little cigars containing 20 or 25 little cigars that do not bear a required tax stamp under the Act;

 

packages of little cigars containing 20 or 25 little cigars that bear a fraudulent, imitation, or counterfeit tax stamp;

 

packages of little cigars containing 20 or 25 little cigars that are improperly tax stamped, including packages of little cigars that bear only a tax stamp of another state or taxing jurisdiction; or

 

packages of little cigars containing other than 20 or 25 little cigars in the possession of a distributor, retailer or wholesaler, unless the distributor, retailer, or wholesaler possesses, or produces within the time frame provided in Section 10-27 or 10-28 of the Act, an invoice from a stamping distributor, distributor, or wholesaler showing that the tax on the packages has been or will be paid.

 

"Department" means the Illinois Department of Revenue.

 

"Distributor" means any of the following:

 

Any manufacturer or wholesaler in this State engaged in the business of selling tobacco products who sells, exchanges, or distributes tobacco products to retailers or consumers in this State.

 

Any manufacturer or wholesaler engaged in the business of selling tobacco products from without this State who sells, exchanges, distributes, ships, or transports tobacco products to retailers or consumers located in this State, so long as that manufacturer or wholesaler has or maintains within this State, directly or by subsidiary, an office, sales house, or other place of business, or any agent or other representative operating within this State under the authority of the person or subsidiary, irrespective of whether the place of business or agent or other representative is located here permanently or temporarily.

 

Any retailer who receives tobacco products on which the tax has not been or will not be paid by another distributor.

 

Distributor does not include any person, wherever resident or located, who makes, manufactures, or fabricates tobacco products as a part of a Correctional Industries program for sale to residents incarcerated in penal institutions or resident patients of a State operated mental health facility. [35 ILCS 143/10-5]  A Correctional Industries program is a program that employs committed persons confined in institutions and facilities of the Illinois Department of Corrections to make, manufacture, or fabricate tobacco products for sale to residents incarcerated in penal institutions or resident patients of a State operated mental health facility.

 

"Electronic cigarette" means:

 

any device that employs a battery or other mechanism to heat a solution or substance to produce a vapor or aerosol intended for inhalation, except for (A) any device designed solely for use with cannabis that contains a statement on the retail packaging that the device is designed solely for use with cannabis and not for use with tobacco or (B) any device that contains a solution or substance that contains cannabis subject to tax under the Compassionate Use of Medical Cannabis Program Act or the Cannabis Regulation and Tax Act;

 

any cartridge or container of a solution or substance intended to be used with or in the device or to refill the device, except for any cartridge or container of a solution or substance that contains cannabis subject to tax under the Compassionate Use of Medical Cannabis Program Act or the Cannabis Regulation and Tax Act; or

 

any solution or substance, whether or not it contains nicotine, intended for use in the device, except for any solution or substance that contains cannabis subject to tax under the Compassionate Use of Medical Cannabis Program Act or the Cannabis Regulation and Tax Act.

 

"Electronic cigarette" includes, but is not limited to, any electronic nicotine delivery system, electronic cigar, electronic cigarillo, electronic pipe, electronic hookah, vape pen, or similar product or device, and any component or part that can be used to build the product or device. "Electronic cigarette" does not include:

 

cigarettes, as defined in Section 1 of the Cigarette Tax Act;

 

any product approved by the United States Food and Drug Administration for sale as a tobacco cessation product, a tobacco dependence product, or for other medical purposes that is marketed and sold solely for that approved purpose;

 

any asthma inhaler prescribed by a physician for that condition that is marketed and sold solely for that approved purpose; or

 

any therapeutic product approved for use under the Compassionate Use of Medical Cannabis Program Act [410 ILCS 130].

 

"Little cigar" means and includes any roll, made wholly or in part of tobacco, where such roll has an integrated cellulose acetate filter and weighs less than 4 pounds per thousand and the wrapper or cover of which is made in whole or in part of tobacco.

 

"Manufacturer" means any person, wherever resident or located, who manufactures and sells tobacco products, except a person who makes, manufactures, or fabricates tobacco products as a part of a Correctional Industries program for sale to residents incarcerated in penal institutions or resident patients of a State operated mental health facility.

 

"Moist snuff" means any finely cut, ground, or powdered tobacco that is not intended to be smoked, including tobacco products referred to as "snus", but does not include any finely cut, ground, or powdered tobacco that is intended to be placed in the nasal cavity.

 

"Person" means any natural individual, firm, partnership, association, joint stock company, joint venture, limited liability company, or public or private corporation, however formed, or a receiver, executor, administrator, trustee, conservator, or other representative appointed by order of any court.

 

"Place of business" means and includes any place where tobacco products are sold or where tobacco products are manufactured, stored, or kept for the purpose of sale or consumption, including any vessel, vehicle, airplane, train, or vending machine.

 

"Retailer" means any person in this State engaged in the business of selling tobacco products to consumers in this State, regardless of quantity or number of sales.

 

"Sale" means any transfer, exchange, or barter in any manner or by any means whatsoever for a consideration and includes all sales made by persons. [35 ILCS 143/10-5]

 

"Secondary distributor" means any person engaged in the business of selling cigarettes who purchases stamped original packages of cigarettes from a licensed distributor under the Cigarette Tax Act or the Cigarette Use Tax Act [35 ILCS 135], sells 75% or more of those cigarettes to retailers for resale, and maintains an established business where a substantial stock of cigarettes is available to retailers for resale. [35 ILCS 130/1]

 

"Stamp" or "stamps" mean the indicia required to be affixed on a package of little cigars that evidence payment of the tax on packages of little cigars containing 20 or 25 little cigars under Section 10-10 of the Act.  These stamps shall be the same stamps used for cigarettes under the Cigarette Tax Act. 

 

"Stamping distributor" means a distributor licensed under the Act and also licensed as a distributor under the Cigarette Tax Act or Cigarette Use Tax Act.

 

"Tobacco products" means any cigars, including little cigars; cheroots; stogies; periques; granulated, plug  cut, crimp cut, ready rubbed, and other smoking tobacco; snuff or snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing tobaccos; shorts; refuse scraps, clippings, cuttings, and sweeping of tobacco; and other kinds and forms of tobacco, prepared in such manner as to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing and smoking; but does not include cigarettes as defined by Section 1 of the Cigarette Tax Act or tobacco purchased for the manufacture of cigarettes by cigarette distributors and manufacturers defined in the Cigarette Tax Act and persons who make, manufacture, or fabricate cigarettes as a part of a Correctional Industries program for sale to residents incarcerated in penal institutions or resident patients of a State  operated mental health facility. Beginning on July 1, 2019, "tobacco products" also includes electronic cigarettes.

 

"Wholesale price" means the established list price for which a manufacturer sells tobacco products to a distributor, before the allowance of any discount, trade allowance, rebate, or other reduction.  In the absence of such an established list price , the manufacturer's invoice price at which the manufacturer sells the tobacco product to unaffiliated distributors, before any discounts, trade allowances, rebates, or other reductions, shall be presumed to be the wholesale price.  The wholesale price of tobacco products is the established list price at the time of purchase, by the distributor who remits tax to the Department, of such tobacco products.  Surcharges added by manufacturers or distributors are considered part of the wholesale price subject to tax.

 

"Wholesaler" means any person, wherever resident or located, who is engaged solely in making sales of tobacco products to others for resale or sales that are otherwise exempt from tax. "Wholesaler", when used in the Act, does not include a person licensed as a distributor under Section 10-20 of the Act unless expressly stated in the Act. [35 ILCS 143/10-5]

 

(Source:  Amended at 46 Ill. Reg. 6603, effective April 5, 2022)

 

Section 660.15  Distributor Licenses

 

a)         It shall be unlawful for any person to engage in business as a distributor of tobacco products within the meaning of the Act without first having obtained a license to do so from the Department. (Section 10-20 of the Act)  Application for a distributor's license shall be made to the Department in a form furnished and prescribed by the Department and shall be accompanied by a joint and several bond in an amount fixed by the Department. Each licensed place of business shall be covered by a separate license. Subject to the limitations regarding little cigars imposed on retailers contained in this subsection (a) and Section 660.28, a retailer who receives or purchases tobacco products on which the tax has not been paid or will not be paid by another distributor is required to register with the Department and obtain a license, file returns and pay the Tobacco Products Tax.  Whenever any sales invoice issued by a supplier to a retailer for tobacco products sold to the retailer does not comply with the requirements of Section 660.25(d), (e) and (g), a prima facie presumption shall arise that the tax imposed by Section 10-10 of the Act and Section 660.5 has not been paid on the tobacco products listed on the sales invoice.

 

1)         Subject to the limitations regarding little cigars imposed on retailers contained in this subsection (a) and Section 660.28, a retailer who receives or purchases tobacco products from an out-of-state distributor that is not registered with the Department must obtain a license.

 

2)         Subject to the limitations regarding little cigars imposed on retailers contained in this subsection (a) and Section 660.28, a retailer who receives or purchases tobacco products from a supplier, whether within or without the State, that is not registered with the Department must obtain a license.

 

b)         The Department may, in its discretion, upon application, issue licenses authorizing the payment of the tax imposed by the Act on tobacco products, excluding little cigars, by any distributor or manufacturer not otherwise subject to the tax imposed under the Act who, to the satisfaction of the Department, furnishes adequate security to ensure payment of the tax.

 

c)         Wholesalers that are not registered and licensed as distributors with the Department but claim to only sell tobacco products, excluding little cigars, in such a way that their sales are not taxable under this Act (e.g., resale or to exempt purchasers) are advised to apply to the Department for a resale number so that those wholesalers are able to provide distributors with Certificates of Resale when purchasing the tobacco products, excluding little cigars, that will be resold.  Those wholesalers need not file returns with the Department. (See Section 660.30, Exempt Sales.)

 

d)         The bonding requirement in Section 10-20 of the Act does not apply to an applicant for a distributor's license who is already bonded under the Cigarette Tax Act or the Cigarette Use Tax Act.  Licenses issued by the Department under the Act shall be valid for a period not to exceed one year after issuance unless sooner revoked, canceled, or suspended as provided in the Act. [35 ILCS 143/10-20]

 

e)         No license shall be issued to any person who is in default to the State of Illinois for moneys due under the Act or any other tax Act administered by the Department. [35 ILCS 143/10-20]

 

(Source:  Amended at 40 Ill. Reg. 10954, effective July 29, 2016)

 

Section 660.16  Retailer Licenses

 

a)         Beginning on January 1, 2016, no person may engage in business as a retailer of tobacco products in this State without first having obtained a license from the Department.  Application for license shall be made to the Department, by electronic means, in a form prescribed by the Department.  Each applicant for a license under this Section shall furnish to the Department, in an electronic format established by the Department, the following information:

 

1)         the name and address of the applicant;

 

2)         the social security number or FEIN of the applicant;

 

3)         the address of the applicant's principal place of business;

 

4)         the address of the location or locations at which the applicant proposes to engage in business as a retailer of tobacco products in this State [35 ILCS 143/10-21];

 

5)         In the case of:

 

A)        a publicly traded corporation, the FEIN of the corporation and the name and title of the Chief Financial Officer, Chief Operating Officer, and any other officer or employee with responsibility for preparing tax returns under the Act, along with the last 4 digits of each of their social security numbers; and

 

B)        all other corporations, the FEIN of the corporation and the name, title and social security number of each corporate officer;

 

6)         in the case of a limited liability company, the name, social security number or FEIN of each manager and member;

 

7)         in the case of a partnership, the name, title, social security number or FEIN of each general partner and each limited partner, if any;

 

8)         such other additional information as the Department may lawfully require.

b)         The annual license fee payable to the Department for each retailer's license shall be $75.  Each applicant for license shall pay the fee to the Department at the time of submitting its application for license to the Department.  The applicant for a license under this Section shall electronically file and pay the fee.

 

c)         A separate annual license fee shall be paid for each place of business at which a person who is required to procure a retailer's license under Section 10-21 of the Act proposes to engage in business as a retailer in Illinois under the Act. 

 

d)         The following are ineligible to receive a retailer's license under the Act:

 

1)         a person who has been convicted of a felony under any federal or State law for smuggling cigarettes or tobacco products or tobacco tax evasion, if the Department, after investigation and a hearing if requested by the applicant, determines that person has not been sufficiently rehabilitated to warrant the public trust; and

 

2)         a corporation, if any officer, manager or director thereof, or any stockholder or stockholders owning in the aggregate more than 5% of the stock of that corporation, would not be eligible to receive a license under the Act for any reason.

 

e)         The Department, upon receipt of an application and license fee, in proper form, from a person who is eligible to receive a retailer's license under the Act, will issue to the applicant a license in the form prescribed by the Department.  That license shall permit the applicant to whom it is issued to engage in business as a retailer under the Act at the place shown in his or her application.  All licenses issued by the Department under this Section shall be valid for a period not to exceed one year after issuance unless sooner revoked, canceled or suspended as provided in the Act.  No license issued under this Section is transferable or assignable. The license shall be conspicuously displayed in the place of business conducted by the licensee in Illinois under the license.  A person who obtains a license as a retailer who ceases to do business as specified in the license, or who never commenced business, or whose license is suspended or revoked, shall immediately surrender the license to the Department.  The Department shall not issue a license to a retailer unless the retailer is also validly registered under the Retailers' Occupation Tax Act [35 ILCS 130/4g].  A retailer, as defined under the Act, need not obtain an additional license under the Act, but shall be deemed to be sufficiently licensed by virtue of his being properly licensed as a retailer under Section 4g of the Cigarette Tax Act.

 

 f)        Any person aggrieved by any decision of the Department under Section 10-21 of the Act may, within 30 days after notice of the decision, protest and request a hearing.  Upon receiving a request for a hearing, the Department shall give notice to the person requesting the hearing of the time and place fixed for the hearing and shall hold a hearing in conformity with the provisions of the Act and then issue its final administrative decision in the matter to that person.  In the absence of a protest and request for a hearing within 30 days, the Department's decision shall become final without any further determination being made or notice given. [35 ILCS 143/10-21]

 

(Source:  Added at 40 Ill. Reg. 10954, effective July 29, 2016)

 

Section 660.18  Stamping Distributors; Purchasing Tax Stamps; Affixing Tax Stamps to Packages of Little Cigars

 

Only a stamping distributor may purchase and affix stamps to packages of little cigars containing 20 or 25 little cigars.

 

a)         Stamping distributors of packages of little cigars containing 20 or 25 little cigars sold or otherwise disposed of in this State shall remit the tax by purchasing tax

stamps from the Department and affixing them to packages of little cigars in the same manner as stamps are purchased and affixed to cigarettes under the Cigarette Tax Act, unless the stamping distributor sells or otherwise disposes of those packages of little cigars to another stamping distributor.  Only persons meeting the definition of "stamping distributor" contained in Section 660.10 may affix stamps to packages of little cigars containing 20 or 25 little cigars.  Stamping distributors may not sell or dispose of little cigars at retail to consumers or users at locations where stamping distributors affix stamps to packages of little cigars containing 20 or 25 little cigars. [35 ILCS 143/10-10(b)]

 

b)         Whenever a stamping distributor brings or causes to be brought into this State from without this State, or purchases from without or within this State, any packages of little cigars containing 20 or 25 little cigars upon which there are no tax stamps affixed as required by the Act, for purposes of resale or disposal in this State to a person not a stamping distributor, then the stamping distributor shall pay the tax to the Department and add the amount of the tax to the price of the packages sold by the stamping distributor.  Payment of the tax shall be evidenced by a stamp or stamps affixed to each package of little cigars containing 20 or 25 little cigars. [35 ILCS 143/10-10(c)]

 

c)         Tax stamps for packages of little cigars are the same stamps used for packages of cigarettes under the Cigarette Tax Act. [35 ILCS 143/10-5]

 

d)         Stamping distributors paying the tax to the Department on packages of little cigars containing 20 or 25 little cigars sold to other distributors, wholesalers or retailers shall add the amount of the tax to the price of the packages of little cigars containing 20 or 25 little cigars sold by the stamping distributors. [35 ILCS 143/10-10(c)]

 

e)         The Department may refuse to sell tax stamps to any person who does not comply with the provisions of the Act.

 

f)         The Department, or any person authorized by the Department, will sell tax stamps only to stamping distributors, subject to discounts as explained in subsection (g). The discount shall be allowed at the time of purchase of the stamps.  Payment for the stamps must be made by means of electronic funds transfer.

 

g)         A stamping distributor may include the amount of the tax paid for stamps affixed to packages of little cigars under the Act when calculating the discount to which the stamping distributor may be entitled for tax paid for stamps affixed to packages of cigarettes under the Cigarette Tax Act.  (See 86 Ill. Adm. Code 440.90.)

 

h)         Two or more distributors that use a common means of affixing revenue tax stamps or that are owned or controlled by the same interests shall be treated as a single distributor for the purpose of computing the discount.

 

i)          Sales and transfers of Illinois tax stamps by one stamping distributor to another stamping distributor are not permitted unless authorization is given in writing by the Department to make the sale or transfer.

 

j)          Packages of little cigars sold by stamping distributors to other stamping distributors must not be accompanied by loose stamps.

 

k)         When, at the time of terminating his or her business as a stamping distributor in this State, a stamping distributor has on hand unaffixed Illinois tax stamps, he or she may transfer or sell those unaffixed stamps to some other stamping distributor, provided that, prior to the sale or transfer, the stamping distributor shall request and receive from the Department, in writing, authority to sell or transfer the stamps.  At the time of requesting authority to sell and transfer stamps to some other stamping distributor, the stamping distributor making the request must submit the name and address of the stamping distributor to whom he or she  intends to sell the stamps, together with the exact number of stamps in each series to be sold or transferred.

 

l)          When stamps have become mutilated or otherwise unfit for use, stamping distributors shall file a claim with the Department.  (See Section 660.40.)

 

(Source:  Added at 40 Ill. Reg. 10954, effective July 29, 2016)

 

Section 660.19  Electronic Cigarettes

 

a)         Beginning July 1, 2019, electronic cigarettes are included in the definition of "tobacco products" and subject to the provisions of this Part.

 

1)         Public Act 102-0040 changes the definition of “electronic cigarette.”  Effective on and after June 28, 2019, “electronic cigarette” does not include:

 

A)        any device designed solely for use with cannabis that contains a statement on the retail packaging that the device is designed solely for use with cannabis and not for use with tobacco;

 

B)        any device that contains a solution or substance that contains cannabis subject to tax under the Compassionate Use of Medical Cannabis Program Act or the Cannabis Regulation and Tax Act;

 

C)        any cartridge or container of a solution or substance that contains cannabis subject to tax under the Compassionate Use of Medical Cannabis Program Act or the Cannabis Regulation and Tax Act; or

 

D)        any solution or substance that contains cannabis subject to tax under the Compassionate Use of Medical Cannabis Program Act or the Cannabis Regulation and Tax Act.

 

2)         There is a rebuttable presumption that a device that contains a statement on the retail packaging that the device is designed solely for use with cannabis and not for use with tobacco is designed solely for use with cannabis.

 

3)         The changes made to the definition of "electronic cigarette" by Public Act 102-0040 are effective on and after June 28, 2019, but no claim for credit or refund is allowed on and after June 25, 2021 (the effective date of Public Act 102-0040) for such taxes paid during the period beginning June 28, 2019 and ending on June 25, 2021 [35 ILCS 143/10-5].

 

b)         To be excluded from the definition of "electronic cigarette" as a therapeutic product approved for use under the Compassionate Use of Medical Cannabis Program Act, the product must be marketed as a therapeutic product and sold in a dispensary that possesses a dispensary license under the Compassionate Use of Medical Cannabis Program Act.

 

c)         Components or parts that can be used to build a product or device that are sold to consumers by a vape shop that are generally available from other retailers and can be used for purposes other than for use in a product or device are not taxable under the Act.  For example, if the same cotton product sold at a vape store is sold by a drug store for general use, it would not be taxable under the Act. If the same batteries or coils sold at a vape store can be purchased from a hardware store for general use and other applications, they are not taxable under the Act.  However, if the packaging or product description of the item states the item is for use in a vape device, or the product is designed, produced and marketed by the manufacturer for use in a specific device and cannot be used in other products or for other purposes, the item is taxable under the Act.

 

d)         Registration and Licenses

 

1)         Retailers selling electronic cigarettes at retail to users and consumers must obtain a tobacco retailer license.  (See Section 660.16.)

 

2)         Retailers selling electronic cigarettes on which the tax has not or will not be paid by a distributor must obtain a distributor license, file returns, and remit the tax to the Department.  (See Section 660.15.)  

 

3)         Manufacturers of electronic cigarettes (e.g., devices, liquids, pods) meeting the definition of "distributor" selling electronic cigarettes directly to consumers must obtain both a distributor license and a tobacco retailer license.

 

4)         Any manufacturer or wholesaler engaged in the business of selling tobacco products from outside of Illinois who sells, exchanges, distributes, ships, or transports electronic cigarettes to retailers or consumers located in Illinois must register to become a distributor if the manufacturer or wholesaler has or maintains within Illinois, directly or by subsidiary, an office, sales house, or other place of business, or any agent or other representative operating within Illinois under the authority of the person or subsidiary, irrespective of whether the place of business or agent or other representative is located here permanently or temporarily.

 

EXAMPLE:  An out-of-state manufacturer of electronic cigarettes sells electronic cigarettes over the internet at retail to consumers in this State.  It also sells electronic cigarettes to retailers in this State.  The manufacturer has representatives that solicit sales by retail stores in this State.  The manufacturer is required to obtain a distributor license and pay the tax on all sales made to retailers and consumers in this State. 

 

e)         Invoices

Whenever any sales invoice issued by an in-state or out-of-state seller for electronic cigarettes sold to a retailer does not comply with the requirements of Section 660.25(d) and (e), a prima facie presumption shall arise that the tax imposed by Section 10-10 of the Act and Section 660.5 has not been paid on the electronic cigarettes listed on the sales invoice. A retailer that is unable to rebut this presumption is in violation of both the Act and this Part and is subject to applicable taxes, penalties, and interest.

 

(Source:  Amended at 46 Ill. Reg. 6603, effective April 5, 2022)

 

Section 660.20  Returns

 

a)         Every distributor of tobacco products shall, on or before the 15^th day of each calendar month, file a return with the Department covering the preceding calendar month disclosing the following (Section 10-20 of the Act):

 

1)         The wholesale price for tobacco products, excluding little cigars and moist snuff, manufactured and then sold or otherwise disposed of.

 

2)         The wholesale price for tobacco products, excluding little cigars and moist snuff, purchased and then sold or otherwise disposed of.

 

3)         The total cost of all tobacco products, excluding little cigars and moist snuff, sold or otherwise disposed of.

 

4)         Deductions authorized by law on tobacco products, excluding little cigars and moist snuff.

 

5)         Tobacco products tax base, excluding little cigars and moist snuff.

 

6)         Total tax based on percentage of wholesale price on tobacco products, excluding little cigars and moist snuff.

 

7)         Total quantity in ounces and fractional ounces of moist snuff purchased and then sold or otherwise disposed of.

 

8)         Deductions authorized by law on moist snuff.

 

9)         Total tax on moist snuff.

 

10)        In addition to the items listed in subsections (a)(1) through (9):

 

A)        The quantity of little cigars purchased and sold or otherwise disposed of.

 

B)        The quantity of packages of little cigars containing 20 or 25 little cigars.

 

C)        Deductions authorized by law on little cigars.

 

D)        Total tax on little cigars.

 

b)         The return shall be filed in the format and manner prescribed by the Department.   Payment of the tax in the amount disclosed by the return shall accompany the return.  Taxpayers whose annual liability is $20,000 or more for the preceding calendar year are required to make payments of tax by Electronic Funds Transfer as provided in 86 Ill. Adm. Code 750.  For purposes of this subsection, the term "annual tax liability" means, for a taxpayer that incurs a tax liability under the Retailers' Occupation Tax Act, Service Occupation Tax Act, Use Tax Act, Service Use Tax Act, or any other State or local occupation or use tax law that is administered by the Department (which includes the Act), the sum of the taxpayer's liabilities under the Retailers' Occupation Tax Act, Service Occupation Tax Act, Use Tax Act, Service Use Tax Act, and all other State and local occupation and use tax laws administered by the Department for the immediately preceding calendar year. [20 ILCS 2505/2505-210(c)] 

 

c)         Tobacco products "otherwise disposed of" include samples of tobacco products.  Transfers of tobacco products between divisions of a corporation that have separate Illinois Business Tax numbers are required to be reported as sales under "otherwise disposed of."

 

d)         Returns, schedules, documents and data required to be filed by the Act with the Department must be filed electronically in the format required by the Department.  Distributors who do not have access to the Internet may petition the Department for a waiver of this requirement.

 

(Source:  Amended at 43 Ill. Reg. 8923, effective July 30, 2019)

 

Section 660.24  Books and Records; Invoices – Retailers

 

a)         Every retailer, as defined in Section 10-5 of the Act, whether or not the retailer has obtained a retailer's license pursuant to Section 4g, shall keep complete and accurate records of tobacco products held, purchased, sold, or otherwise disposed of, and shall preserve and keep all invoices, bills of lading, sales records, and copies of bills of sale, returns and other pertinent papers and documents relating to the purchase, sale, or disposition of tobacco products.

 

1)         The books and records need not be maintained on the licensed premises, but must be maintained in the State of Illinois.  However, all original invoices or copies of those invoices covering purchases of tobacco products must be retained on the licensed premises for a period of 90 days after purchase, unless the Department has granted a waiver in response to a written request in cases in which records are kept at a central business location within the State of Illinois. [35 ILCS 143/10-35(b)]  Prior to removing the books and records from the licensed premises, the retailer shall notify the Department that the books and records will be kept at another location in Illinois and shall identify the location.  Under those circumstances, books and records may be kept at that location in Illinois, but the taxpayer shall, within a reasonable time after notification by the Department, make all pertinent books, records, papers and documents available at some point within Illinois for the purpose of inspection and audit as the Department may deem necessary.

 

2)         Books and records may be maintained out of state if access is available electronically.  However, all original invoices or copies of those invoices covering purchases of tobacco products must be retained on the licensed premises for a period of 90 days after purchase, unless the Department has granted a waiver in response to a written request in cases in which records that are available electronically are maintained out of state. [35 ILCS 143/10-35(b)]

 

3)         The Department will grant a written waiver under subsections (a)(1) and (2) when the following requirements are met by the retailer:

 

A)        The retailer submits a letter to the Department containing:

 

i)          the retailer's license number and FEIN;

 

ii)         the address or addresses of the licensed premises where records are currently maintained;

 

iii)        the address of the out-of-state location where the retailer intends to maintain the records;

 

iv)        an explanation of the process and system that will enable the Department or its duly authorized employees to electronically access the records from the licensed premises on demand; and

 

v)         an acknowledgement by the retailer that the Department, upon 30 days written notice, may revoke the waiver of the retailer for one or more licensed premises if the retailer:

 

●          fails to provide electronic access in accordance with the requirements of the written waiver;

 

●          transfers or sells the licensed premises to another person; or

 

●          changes the process or system for providing access to the records electronically.

 

B)        For books and records maintained out of state, the Department is given access electronically to accurate records of tobacco products held, purchased, sold or otherwise disposed of; invoices; bills of lading; sales records; and copies of bills of sale, returns and other pertinent papers and documents relating to the purchase, sale or disposition of tobacco products kept at the licensed premises in the normal course of business at the time of the request.

 

C)        For books and records maintained out of state, the Department has tested the process and system from the licensed premises and verified that the Department and its duly authorized employees have access electronically to the required records from the licensed premises on demand.

 

b)         Books, records, papers, and documents that are required by the Act to be kept shall, at all times during the usual business hours of the day, be subject to inspection by the Department or its duly authorized agents and employees.  The books, records, papers, and documents for any period with respect to which the Department is authorized to issue a notice of tax liability shall be preserved until the expiration of that period. [5 ILCS 143/10-35(c)]

 

c)         Whenever any retailer obtains tobacco products from an unlicensed in-state or out-of-state distributor or person, a prima facie presumption shall arise that the tax imposed by the Act on those tobacco products has not been paid in violation of the Act.  Invoices or other documents kept in the normal course of business in the possession of a person reflecting purchases of tobacco products from an unlicensed in-state or out-of-state distributor or person or invoices or other documents kept in the normal course of business obtained by the Department from in-state or out-of-state distributors or persons, are sufficient to raise the presumption that the tax imposed by the Act has not been paid.  If a presumption is raised, the Department may assess tax, penalty, and interest on the tobacco products.  [35 ILCS 143/10-38]

 

d)         Every retailer who purchases tobacco products for resale for shipment into Illinois from a point outside Illinois shall procure invoices in duplicate covering each shipment and shall make the invoices available for inspection upon demand by a duly authorized employee of the Department, and shall, if the Department so requires, furnish one copy of each invoice to the Department at the time of filing the return required by the Act.  [35 ILCS 143/10-40]

 

e)         Every retailer who purchases rolls, made wholly or in part of tobacco, when those rolls have an integrated cellulose acetate filter and a wrapper or cover that is made in whole or in part of tobacco and the rolls are contained in packages of 20 or 25, shall procure an invoice from the seller that states whether the rolls weigh less than 4 pounds per thousand or weigh 4 pounds or more per thousand.  If a person fails to produce an invoice for inspection by the Department upon request that states whether the rolls weigh less than 4 pounds per thousand or weigh 4 pounds or more per thousand, a prima facie presumption shall arise that the rolls weigh less than 4 pounds per thousand.  If the rolls do not contain a tax stamp in accordance with Section 10-10 of the Act, the rolls are contraband and subject to seizure and forfeiture.

 

f)         The Department may, after notice and a hearing, revoke, cancel, or suspend the license of any retailer who fails to keep books and records as required under the Act, fails to make books and records available for inspection upon demand by a duly authorized employee of the Department, or violates this Section. The notice shall specify the alleged violation or violations upon which the revocation, cancellation, or suspension proceeding is based.  [35 ILCS 143/10-25]   Any retailer aggrieved by any decision of the Department under this Section may, within 20 days after notice of the decision, protest and request a hearing.  Upon receiving a request for a hearing, the Department shall give notice in writing to the retailer requesting the hearing that contains a statement of the charges preferred against the retailer and that states the time and place fixed for the hearing.  The Department shall hold the hearing in conformity with the provisions of the Act and then issue its final administrative decision in the matter to the retailer.  In the absence of a protest and request for a hearing within 20 days, the Department's decision shall become final without any further determination being made or notice given.

 

(Source:  Amended at 43 Ill. Reg. 8923, effective July 30, 2019)

 

Section 660.25  Books and Records; Invoices − Distributors

 

a)         Every distributor of tobacco products who is required to procure a license under the Act, including retailers who are required to procure a distributor's license under Section 660.15, shall keep within Illinois, at his or her licensed address, complete and accurate records of tobacco products held, purchased, manufactured, brought in or caused to be brought in from without the State, and sold or otherwise disposed of, and shall preserve and keep within Illinois at his or her licensed address all of the following:

 

1)         Invoices.

 

2)         Bills of lading.

 

3)         Sales records.

 

4)         Copies of bills of sale.

 

5)         The wholesale price for tobacco products sold or otherwise disposed of.

 

6)         An inventory of tobacco products prepared as of December 31 of each year or as of the last day of the distributor's fiscal year if he or she files federal income tax returns on the basis of a fiscal year.

 

7)         Other pertinent papers and documents relating to the manufacture, purchase, sale, or disposition of tobacco products.

 

8)         Certificates of Resale and Certificates of Exemption.

 

b)         All books and records and other papers and documents that are required by the Act to be kept shall be kept in the English language, and shall, at all times during the usual business hours of the day, be subject to inspection by the Department or its duly authorized agents and employees.

 

c)         Such books, records, papers, and documents shall be preserved for the period during which the Department is authorized to issue Notices of Tax Liability, which is generally for a maximum of 3½ years.

 

d)         Every sales invoice issued by a licensed distributor for tobacco products shall contain the distributor's Tobacco Products License number.  Every sales invoice issued by a licensed distributor to a retailer in this State shall contain the distributor's Tobacco Products License number unless the distributor has been granted a waiver by the Department in response to a written request in cases in which the distributor sells little cigars or other tobacco products only to licensed retailers that are wholly-owned by the distributor or owned by a wholly-owned subsidiary of the distributor, the licensed retailer obtains little cigars or other tobacco products only from the distributor requesting the waiver, and  the distributor affixes the tax stamps to the original packages of little cigars or has or will pay the tax on the other tobacco products sold to the licensed retailer.  The distributor shall file a written request with the Department, and, if the Department determines that the distributor meets the conditions for a waiver, the Department shall grant the waiver. [35 ILCS 143/10-35(a)]  Every sales invoice for packages of little cigars containing other than 20 or 25 little cigars issued by a stamping distributor to a person who is not a stamping distributor shall contain, in addition to the stamping distributor's Tobacco Products License number, the stamping distributor's Cigarette Tax Distributor's License number or Cigarette Use Tax Distributor's License number.  (See Section 660.26 for additional rules regarding invoices for little cigars.)

 

e)         Every sales invoice issued by a licensed distributor shall state whether:

 

1)         the tax imposed by the Act has been or will be paid in full; or

 

2)         the sale is exempt in whole or in part under Section 660.30 and the specific subsections under which the exemption is claimed. 

 

A)        If the sale is exempt in part, the invoice additionally shall state:

 

i)          the amount of tax actually paid or what will be paid; or

 

ii)         the percentage of tax actually paid based on the amount of the invoice before the allowance of any discount, trade allowance, rebate or other reduction, and including any added surcharges. 

 

B)        The distributor making an exempt sale of tobacco products shall document the exemption by obtaining a certification required by Section 660.30(g).

 

f)         Whenever any sales invoice issued by a supplier to a retailer for tobacco products sold to the retailer does not comply with the requirements of subsections (d) and (e), a prima facie presumption shall arise that the tax imposed by Section 10-10 of the Act and Section 660.5 has not been paid on the tobacco products listed on the sales invoice.  A retailer that is unable to rebut this presumption is in violation of both the Act and this Part and is subject to the penalties provided in Section 10-50 of the Act.

 

g)         Every licensed distributor of tobacco products in this State is required to show proof of the tax having been paid as required by the Act by displaying its Tobacco Products License number on every sales invoice issued to a retailer in this State. [35 ILCS 143/10-37] 

 

h)         Every distributor who purchases tobacco products for resale for shipment into Illinois from a point outside Illinois shall procure invoices in duplicate covering each shipment and shall make the invoices available for inspection upon demand by a duly authorized employee of the Department, and shall, if the Department so requires, furnish one copy of each invoice to the Department at the time of filing the return required by the Act. [35 ILCS 143/10-40]

 

i)          Every distributor who purchases rolls, made wholly or in part of tobacco, when those rolls have an integrated cellulose acetate filter and a wrapper or cover that is made in whole or in part of tobacco and the rolls are contained in packages of 20 or 25, shall procure an invoice from the seller that states whether the rolls weigh less than 4 pounds per thousand or weigh 4 pounds or more per thousand.  If a distributor fails to procure an invoice or produce an invoice for inspection by the Department upon request, a prima facie presumption shall arise that the rolls weigh less than 4 pounds per thousand.  A distributor that sells these rolls must provide all purchasers with invoices that state whether the rolls weigh less than 4 pounds per thousand or weigh 4 pounds or more per thousand. 

 

j)          Whenever any person obtains tobacco products from an unlicensed in-state or out-of-state distributor or person, a prima facie presumption shall arise that the tax imposed by the Act on those tobacco products has not been paid in violation of the Act.  Invoices or other documents kept in the normal course of business in the possession of a person reflecting purchases of tobacco products from an unlicensed in-state or out-of-state distributor or person or invoices or other documents kept in the normal course of business obtained by the Department from in-state or out-of-state distributors or persons, are sufficient to raise the presumption that the tax imposed by the Act has not been paid.  If a presumption is raised, the Department may assess tax, penalty, and interest on the tobacco products.  [35 ILCS 143/10-38]  See Section 660.50(r) for the penalties that may be imposed for a violation of this Section.

 

k)         The Department may, after notice and a hearing, revoke, cancel, or suspend the license of any distributor who fails to keep books and records as required under the Act, fails to make books and records available for inspection upon demand by a duly authorized employee of the Department, or violates this Section. The notice shall specify the alleged violation or violations upon which the revocation, cancellation, or suspension proceeding is based.  [35 ILCS 143/10-25]  Any distributor aggrieved by any decision of the Department under this Section may, within 20 days after notice of the decision, protest and request a hearing.  Upon receiving a request for a hearing, the Department shall give notice in writing to the distributor requesting the hearing that contains a statement of the charges preferred against the distributor and that states the time and place fixed for the hearing.  The Department shall hold the hearing in conformity with the provisions of the Act and then issue its final administrative decision in the matter to the distributor.  In the absence of a protest and request for a hearing within 20 days, the Department's decision shall become final without any further determination being made or notice given.

 

(Source:  Amended at 43 Ill. Reg. 8923, effective July 30, 2019)

 

Section 660.26  Invoices Relating to Packages of Little Cigars

 

a)         Every sales invoice for packages of little cigars containing other than 20 or 25 little cigars issued by a stamping distributor to a person who is not a stamping distributor shall contain both the stamping distributor's Tobacco Products License number and Cigarette Tax Distributor's License number or Cigarette Use Tax Distributor's License number and shall state that the tax imposed by the Act has been or will be paid or that the sale is exempt in whole or in part, stating the exemption claimed. [35 ILCS 143/10-29]

 

b)         Any stamping distributor, distributor or wholesaler who knowingly falsely states on the invoice that the tax imposed by the Act has been or will be paid, or any officer or employee of a corporation, member or employee of a partnership, or manager, member or employee of a limited liability company that is a stamping distributor, distributor, or wholesaler, who, as such officer, employee, manager, or member, knowingly causes to be issued an invoice on behalf of such entity, that the person knowingly falsely states that the tax imposed by the Act has been or will be paid, is guilty of a Class 4 felony. [35 ILCS 143/10-29(b)]

 

c)         Whenever any sales invoice issued by a stamping distributor, distributor or wholesaler for the sale of packages of little cigars containing other than 20 or 25 little cigars does not comply with Section 10-28(b) of the Act or Section 10-29(a) of the Act by indicating that the tax has been or will be paid or that the sale is exempt in whole or in part, a prima facie presumption shall arise that the tax imposed by Section 10-10 of the Act has not been paid on the little cigars listed on the sales invoice.  A person who is not a stamping distributor and is unable to rebut this presumption is in violation of the Act and is subject to the penalties provided in the Act. [35 ILCS 143/10-29(c)]

 

(Source:  Added at 40 Ill. Reg. 10954, effective July 29, 2016)

 

Section 660.27  Manufacturers – Sale of Little Cigars

 

Manufacturers that are not stamping distributors may not sell little cigars to consumers in this State or to distributors, wholesalers or retailers, unless the distributors, wholesalers or retailers are stamping distributors.  Manufacturers that are not stamping distributors may sell little cigars only to stamping distributors.  Manufacturers that are not stamping distributors are prohibited from delivering little cigars to locations where sales of little cigars to consumers or users take place. [35 ILCS 143/10-26]

 

(Source:  Added at 40 Ill. Reg. 10954, effective July 29, 2016)

 

Section 660.28  Retailers – Purchase and Possession of Tobacco Products

 

The Act provides that any retailer who receives tobacco products on which the tax has not been or will not be paid by another distributor is considered a distributor and must obtain a distributor's license, file returns and pay the tax on those tobacco products.  Effective July 1, 2013, the Act imposes new restrictions on retailers, i.e., a retailer may no longer purchase little cigars on which the tax has not been or will not be paid by a stamping distributor, regardless of whether the retailer possesses a distributor license under the Act.  Beginning January 1, 2016, retailers licensed under Section 660.16 must obtain all tobacco products for sale only from stamping distributors, licensed distributors or wholesalers.

 

a)         Packages of Little Cigars Containing 20 or 25 Little Cigars

 

1)         Retailers are prohibited from possessing unstamped packages of little cigars containing 20 or 25 little cigars at locations where retailers make sales of little cigars to consumers or users.  Retailers that are also stamping distributors are prohibited from possessing unstamped little cigars at locations where those retailers make sales of packages of little cigars containing 20 or 25 little cigars to consumers or users. [35 ILCS 143/10-27(a)]

 

2)         Retailers that are not stamping distributors shall purchase stamped packages of little cigars containing 20 or 25 little cigars for resale only from stamping distributors, distributors, or wholesalers.  Retailers who are not stamping distributors may not purchase or possess unstamped packages of little cigars containing 20 or 25 little cigars. [35 ILCS 143/10-27(a)]

 

b)         Packages of Little Cigars Containing Other Than 20 or 25 Little Cigars

For purchases of packages of little cigars containing other than 20 or 25 little cigars, retailers who are not stamping distributors may not purchase or possess such packages of little cigars, unless the retailer receives an invoice from a stamping distributor, distributor, or wholesaler stating the tax on the packages has been or will be paid.  Retailers shall retain the invoices for inspection by the Department.  If a retailer maintaining multiple retail locations notifies the Department in writing that it maintains its invoices at a centralized business location, the Department shall have the authority to inspect invoices at the centralized business location at all times during the usual business hours of the day and the Department may grant the retailer 3 business days to produce the invoices at the retail location at which the request was made. [35 ILCS 143/10-27(b)]

 

c)         Notwithstanding anything to the contrary in the Act or this Part, a retailer unknowingly possessing contraband little cigars obtained from a stamping distributor, distributor, or wholesaler or other person engaged in the business of selling tobacco products or knowingly possessing contraband little cigars obtained from a stamping distributor is not subject to penalties for that purchase or possession if the retailer, within 48 hours after discovering that the little cigars are contraband little cigars, excluding Saturdays, Sundays, and holidays:  notifies the Department and the person from whom the little cigars were obtained, orally and in writing, that he or she possesses contraband little cigars; places the contraband little cigars in one or more containers and seals those containers; and places on the containers the following or similar language: "Contraband Little Cigars. Not For Sale."  All contraband little cigars in the possession of a retailer remain subject to forfeiture under the provisions of the Act. [35 ILCS 143/10-27(c)]

 

d)         No retailer shall possess tobacco products without either a proper invoice indicating that the tobacco products tax was paid by a distributor for the tobacco products in the retailer's possession or other proof that the tax was paid by the retailer if it has purchased tobacco products on which tax has not been paid as required by the Act. [35 ILCS 143/10-37]

 

e)         Beginning January 1, 2016, a person who possesses a retailer's license under Section 660.16 shall obtain tobacco products for sale only from a licensed distributor or licensed secondary distributor. [35 ILCS 143/10-22]

 

(Source:  Added at 40 Ill. Reg. 10954, effective July 29, 2016)

 

Section 660.29  Wholesalers – Possession of Little Cigars

 

a)         Packages of Little Cigars Containing 20 or 25 Little Cigars

Wholesalers are prohibited from possessing unstamped packages of little cigars containing 20 or 25 little cigars unless the wholesalers are stamping distributors. [35 ILCS 143/10-28(a)] 

 

b)         Packages of Little Cigars Containing Other Than 20 or 25 Little Cigars

 

1)         For purchases of packages of little cigars containing other than 20 or 25 little cigars, wholesalers who are not stamping distributors may not purchase or possess such packages of little cigars, unless the wholesalers receive an invoice from a stamping distributor, distributor, or wholesaler stating the tax on the packages has been or will be paid.  Wholesalers shall retain those invoices for inspection by the Department. [35 ILCS 143/10-28(b)]

 

2)         Every sales invoice for packages of little cigars containing other than 20 or 25 little cigars issued by a wholesaler to a person who is not a stamping distributor shall state that the tax imposed by the Act has been or will be paid.  If a wholesaler maintaining multiple wholesale locations notifies the Department in writing that it maintains its invoices at a centralized business location, the Department shall have the authority to inspect invoices at the centralized business location at all times during the usual business hours of the day and the Department may grant the wholesaler 3 business days to produce the invoices at the wholesale location at which the request was made. [35 ILCS 143/10-28(b)]

 

(Source:  Added at 40 Ill. Reg. 10954, effective July 29, 2016)

 

Section 660.30  Exempt Sales

 

a)         Sales of tobacco products, excluding little cigars, by distributors or wholesalers who will not sell the product to a retailer or consumer are exempt from the tax imposed by the Act.  For example, sales by a distributor to another distributor as sales for resale are exempt from the tax imposed by the Act.  Sales of tobacco products to retailers or consumers are not exempt sales (unless the retailer is a registered distributor; see subsection (f)).

 

b)         The tax is not imposed upon any activity in the business as a distributor in interstate commerce or otherwise, to the extent to which that activity may not, under the Constitution and Statutes of the United States, be made the subject of taxation by this State.  (Section 10-10 of the Act) Sales of tobacco products, excluding little cigars, delivered by a distributor to persons located outside of Illinois are exempt from the tax imposed by the Act.

 

c)         Sales of tobacco products, excluding little cigars, to retailers who will deliver the tobacco products outside of Illinois are exempt.

 

d)         The tax imposed by the Act shall not apply to sales or other disposition of tobacco products to the United States Government or any entity of the United States government.  For instance, sales of tobacco products to  U.S. Veterans' Hospitals and U.S. Military personnel through officially recognized agencies physically located at military bases are exempt from the tax imposed by the Act.

 

e)         The tax imposed by the Act shall not apply to sales of tobacco products to penal institutions for use in a Correctional Industries program that makes, manufactures, or fabricates tobacco products for sale to residents incarcerated in penal institutions or resident patients of a State operated mental health facility.  However, sales of tobacco products to a penal institution that will sell tobacco products through its commissary are taxable.

 

f)         Under certain circumstances, a blanket Certificate of Resale may be provided by a purchaser to a distributor.  These circumstances include the following:

 

1)         Retailers who purchase tobacco products, excluding little cigars, for delivery outside of Illinois are exempt under subsection (c).  However, when the retailer may deliver tobacco products, excluding little cigars, outside of Illinois but may deliver some within Illinois and when it is impracticable, at the time of purchasing the tobacco products, for the retailer to determine in which way he or she will dispose of the tobacco products, the retailer may certify to the distributor that he or she is buying all of the tobacco products, excluding little cigars, for resale and provide a blanket Certificate of Resale to the distributor.  A retailer may provide such a certificate only if he or she is registered as  a distributor under the Act and agrees to assume responsibility for reporting and remitting tax on his or her taxable Illinois sales (e.g., sales to consumers or retailers).

 

2)         Often times, a distributor registered under the Act will also sell tobacco products to consumers.  This distributor may similarly find it impracticable, at the time of purchasing the tobacco products, to determine in which way he or she will dispose of the tobacco products.  Consequently, except for little cigars, the distributor may provide the selling distributor with a blanket Certificate of Resale and assume responsibility for reporting and remitting tax on his or her taxable sales to consumers.

 

g)         A distributor making an exempt sale of tobacco products shall document this exemption by obtaining a certification of exemption or resale from the purchaser containing the distributor's name and address, the purchaser's name and address, the date of purchase, the purchaser's signature, the purchaser's tobacco products tax license number, if applicable, and a statement that the purchaser is purchasing for one of the purposes or activities identified in subsections (a) through (e) or is assuming responsibility for reporting and remitting tax as provided for under subsection (f).

 

h)         A retailer must be a stamping distributor to make tax exempt sales of packages of little cigars containing 20 or 25 little cigars for use outside of this State.  A retailer who is a stamping distributor making sales of stamped packages of little cigars for use outside of this State may file a claim for credit for such sales with the Department on forms and in the manner provided by the Department. [35 ILCS 143/10-27(a)]  A retailer must be a stamping distributor to make tax exempt sales of packages of little cigars containing other than 20 or 25 little cigars for use outside of this State.  A retailer who is a stamping distributor making sales of packages of little cigars containing other than 20 or 25 little cigars for use outside of this State on which the tax has been or will be paid by another stamping distributor or was paid by the retailer may file a claim for credit for those sales with the Department on forms and in the manner provided by the Department. [35 ILCS 143/10-27(b)]

 

i)          A wholesaler must be a stamping distributor to make tax exempt sales of packages of little cigars containing 20 or 25 little cigars for use outside of this State.  A wholesaler who is a stamping distributor making sales of stamped packages of little cigars for use outside of this State may file a claim for credit for those sales with the Department on forms and in the manner provided by the Department. [35 ILCS 143/10-28(a)]  A wholesaler must be a stamping distributor to make tax exempt sales of packages of little cigars containing other than 20 or 25 little cigars for use outside of this State.  A wholesaler who is a stamping distributor making sales of packages of little cigars containing other than 20 or 25 little cigars for use outside of this State on which the tax has been or will be paid by another stamping distributor or was paid by the wholesaler may file a claim for credit for those sales with the Department on forms and in the manner provided by the Department. [35 ILCS 143/10-28(b)]

 

(Source:  Amended at 40 Ill. Reg. 10954, effective July 29, 2016)

 

Section 660.35  Claims for Credit

 

a)         If it appears, after a claim is filed with the Department, that an amount of tax or penalty has been paid that was not due under the Act, whether as the result of a mistake of fact or an error of law, except as hereinafter provided, then the Department shall issue a credit memorandum or refund to the person who made the erroneous payment or, if that person has died or become incompetent, to his legal representative, as such.

 

b)         If it is determined that the Department should issue a credit or refund under the Act, the Department will first apply the amount thereof against any amount of tax or penalty due under the Act from the person entitled to such credit or refund.  For this purpose, if proceedings are pending to determine whether any tax or penalty is due under the Act from such person, the Department may withhold issuance of the credit or refund pending the final disposition of such proceedings and may apply such credit or refund against any amount found to be due to the Department under the Act as a result of such proceedings.  The balance, if any, of the credit or refund shall be issued to the person entitled thereto.

 

c)         If no tax or penalty is due and no proceeding is pending to determine whether such taxpayer is indebted to the Department for tax or penalty, the credit memorandum or refund shall be issued to the claimant; or (in the case of a credit memorandum) the credit memorandum may be assigned and set over by the lawful holder thereof, subject to reasonable rules of the Department, to any other person who is subject to the Act, and the amount thereof shall be applied by the Department against any tax or penalty due or to become due under the Act from such assignee.

 

d)         As to any claim filed under this Section with the Department on and after each January 1 and July 1, no amount of tax or penalty erroneously paid (either in total or partial liquidation of a tax or penalty under the Act) more than 3 years prior to that January 1 or July 1, respectively, shall be credited or refunded.

 

e)         In case the Department determines that the claimant is entitled to  a refund, the refund shall be made only from such appropriation as may be available for that purpose.  If it appears unlikely that the amount appropriated would permit everyone having a claim allowed during the period covered by such appropriation to elect to receive a cash refund, the Department will make these refunds only in hardship cases (i.e., in cases in which the claimant cannot use a credit memorandum).  The two most likely situations where this would be the case are the situation in which the claimant has discontinued business and the situation in which the claimant will have a small volume of liability to the Department in the foreseeable future, but receives such a large credit memorandum that it might take the claimant a long time to liquidate the memorandum by using it to pay current taxes.  In these instances, the claimant probably would have to sell the credit memorandum at a loss in order to realize anything from it within any reasonable period of time.

 

f)         All of the provisions of Sections 6, 6a, and 6b of the Retailers' Occupation Tax Act regarding credit memoranda, claims and refunds that are not inconsistent with the Act, apply to distributors of tobacco products to the same extent as if those provisions were included in the Act.  References in the incorporated Sections of the Retailers' Occupation Tax Act to retailers, to sellers, or to persons engaged in the business of selling tangible personal property mean distributors when used in the Act.  References in the incorporated Sections to sales of tangible personal property mean sales of tobacco products when used in the Act. [35 ILCS 143/10-45] 

 

(Source:  Amended at 40 Ill. Reg. 10954, effective July 29, 2016)

 

Section 660.40  Credit for Stamps that Are Damaged, Unused, Destroyed or Affixed to Packages of Little Cigars Returned to the Manufacturer

 

a)         When a stamping distributor wishes to receive credit for stamps that have been affixed to packages of little cigars, the stamping distributor shall file a claim on a form prescribed by the Department.

 

b)         If the Department sends one or more of its representatives to witness the destruction of the stamps, the Department may charge the stamping distributor for travel expenses, such as lodging, meals and mileage.

 

c)         If a greater number of stamps in a certain series of stamps is destroyed than is included in the claim for credit, the excess number of stamps destroyed in that series of stamps will not be credited.  If a lesser number of stamps in a certain series of stamps is destroyed than is included in the claim for credit, the actual number of stamps destroyed in that series will be credited.  If stamps are destroyed in a certain series of stamps not listed in the claim for credit, credit for stamps in that series will not be made.

 

d)         Claims for credit for tax stamps will be approved only when the claim indicates that the packages of little cigars involved are unsalable and are to be shipped by the claimant in interstate commerce, by a common carrier or through the United States mails, to a designated consignee outside Illinois, or when the claim indicates that the packages of little cigars involved are unsalable and are to be destroyed by the claimant, when the claim indicates that the packages of little cigars involved have been improperly stamped (e.g., over-stamped, under-stamped) or when the claimant returns unused or damaged stamps.

 

e)         It is mandatory upon a stamping distributor to destroy (in the presence of a Department representative or representatives if the Department so requires) Illinois stamps that are affixed to packages of little cigars in connection with a claim to the Department for credit of stamps, if the stamping distributor has improperly stamped packages of little cigars by affixing Illinois tax stamps in an amount that is insufficient to evidence full payment of the tax.

 

f)         Claims for credit of tax stamps affixed to packages of little cigars will not be approved unless the stamping distributor filing the claim has title to the packages of little cigars covered by the claim and is carrying Illinois tax-stamped little cigars in his or her inventories.

 

g)         If a claim discloses that, subsequent to the destruction of the stamps, the unstamped packages of little cigars are to be shipped in interstate commerce to a designated out-of-state consignee, credit for the stamps will not be made unless and until the stamping distributor submits to the Department, to support his or her claim, an affidavit from the manufacturer that receives and destroys the stamps.  If an affidavit cannot be obtained, a waybill, freight bill or bill of lading, issued by a common carrier, or an insurance receipt or registry receipt issued by the U.S. Postal Service (USPS), or a USPS receipt Form 3817, proving that the packages of little cigars have actually been shipped by the stamping distributor in interstate commerce, by common carrier or through the United States mails, to the out-of-state consignee designated in the claim, will be accepted.

 

h)         Subsequent to the destruction of tax stamps affixed to packages of little cigars, credit for the stamps will not be made if a review of pertinent returns filed by the stamping distributor reveals that the tax stamps scheduled in the claim have not been included in the stamping distributor's inventories.

 

i)          In connection with any claim for credit of Illinois tax stamps, in addition to the types of proof specified, the Department reserves the right to require additional proof in support of any claim as may appear to be necessary.

 

j)          If the Department approves a claim for credit for tax stamps, the Department (subject to the same limitations as those provided for in Section 660.35) may issue an assignable credit memorandum or refund to the stamping distributor or the stamping distributor's legal representative.  Under no circumstances will a claim for credit be approved in an amount that exceeds the amount paid by the stamping distributor for the stamps that are the subject of the claim.

 

(Source:  Added at 40 Ill. Reg. 10954, effective July 29, 2016)

 

Section 660.45  License Actions:  Revocations, Cancellations and Suspensions

 

a)         The Department has the power, after notice and an opportunity for a hearing, to revoke a license issued by the Department if the holder of the license fails to file a return, or to pay the tax, fee, penalty, or interest shown in a filed return, or to pay any final assessment of tax, fee, penalty, or interest, as required by the Act or any other tax or fee Act administered by the Department. [20 ILCS 2505/2505-380(a)]

 

b)         The Department may refuse to issue a license if a person who is named as the owner, a partner, a corporate officer, or, in the case of a limited liability company, a manager or member, of the applicant on the application for the license, is or has been named as the owner, a partner, a corporate officer, or in the case of a limited liability company, a manager or member, on the application for the certificate of registration, permit, or license of a person that is in default for moneys due under the Act or any other tax or fee Act administered by the Department. For purposes of this Section only, in determining whether a person is in default for moneys due, the Department shall include only amounts established as a final liability within the 23 years prior to the date of the Department's notice of refusal to issue the certificate of registration, permit, or license. For purposes of this Section, "person" means any natural individual, firm, partnership, association, joint stock company, joint adventure, public or private corporation, limited liability company, or a receiver, executor, trustee, guardian or other representative appointed by order of any court. [20 ILCS 2505/2505-380( b)]

 

c)         The Department may, after notice and a hearing, revoke, cancel, or suspend the license of any distributor and, beginning January 1, 2016, any retailer who violates any of the provisions of the Act. The notice shall specify the alleged violation or violations upon which the revocation, cancellation, or suspension proceeding is base. [35 ILCS 143/10-25(a)]

 

d)         Upon a determination that a distributor has violated Section 15(e) of the Tobacco Product Manufacturers' Escrow Enforcement Act of 2003 or any regulation adopted pursuant thereto, the Department may revoke or suspend the license of any distributor in the manner provided by Section 10-25 of the Tobacco Products Tax Act of 1995. [30 ILCS 167/30(a)]

 

e)         The Department may, by application to any circuit court, obtain an injunction restraining any person who engages in business as a distributor of tobacco products without a license (either because his or her license has been revoked, canceled, or suspended or because of a failure to obtain a license in the first instance) from engaging in that business until that person, as if that person were a new applicant for a license, complies with all of the conditions, restrictions, and requirements of Section 10-20 of the Act and qualifies for and obtains a license. Refusal or neglect to obey the order of the court may result in punishment for contempt. [35 ILCS 143/10-25(d)]

 

f)         Beginning January 1, 2016, failure to comply with the provisions of Section 660.26(c) may be grounds for revocation of a distributor's or retailer's license in accordance with Section 10-25 of the Act or Section 6 of the Cigarette Tax Act. [35 ILCS 143/10-37]

 

g)         Retailers; Violations of Minimum-Age Tobacco Laws Training Programs

Beginning January 1, 2016: 

 

1)         If the retailer has a training program that facilitates compliance with minimum-age tobacco laws, the Department shall suspend for 3 days the license of that retailer for a fourth or subsequent violation of the Prevention of Tobacco Use by Minors and Sale and Distribution of Tobacco Products Act, as provided in Section 2(a) of that Act. For the purposes of this Section, any violation of Section 2(a) of the Prevention of Tobacco Use by Minors and Sale and Distribution of Tobacco Products Act [720 ILCS 675] occurring at the retailer's licensed location, during a 24-month period, shall be counted as a violation against the retailer.

 

2)         If the retailer does not have a training program that facilitates compliance with minimum-age tobacco laws, the Department shall suspend for 3 days the license of that retailer for a second violation of the Prevention of Tobacco Use by Minors and Sale and Distribution of Tobacco Products Act, as provided in Section 2(a-5)of that Act.

 

3)         If the retailer does not have a training program that facilitates compliance with minimum-age tobacco laws, the Department shall suspend for 7 days the license of that retailer for a third violation of the Prevention of Tobacco Use by Minors and Sale and Distribution of Tobacco Products Act, as provided in Section 2(a-5) of that Act.

 

4)         If the retailer does not have a training program that facilitates compliance with minimum-age tobacco laws, the Department shall suspend for 30 days the license of a retailer for a fourth or subsequent violation of the Prevention of Tobacco Use by Minors and Sale and Distribution of Tobacco Products Act, as provided in Section 2(a-5) of that Act.

 

5)         A training program that facilitates compliance with minimum-age tobacco laws must include at least the following elements: 

 

A)        it must explain that only individuals displaying valid identification demonstrating that they are 18 years of age or older shall be eligible to purchase cigarettes or tobacco products; and

 

B)        it must explain where in the establishment, at the time of purchase, a clerk can check identification for a date of birth.

 

6)         The training may be conducted electronically. Each retailer that has a training program shall require each employee who completes the training program to sign a form attesting that the employee has received and completed tobacco training. The form shall be kept in the employee's file and may be used to provide proof of training. [35 ILCS 143/10-25(c)]

 

(Source:  Amended at 47 Ill. Reg. 1488, effective January 17, 2023)

 

Section 660.50  Penalties, Interest and Procedures

 

a)         The provisions of the Uniform Penalty and Interest Act [35 ILCS 735] that are not inconsistent with the Act apply to the enforcement of the Act.  See Section 3-1A of the Uniform Penalty and Interest Act.

 

b)         When the amount due is under $300, any distributor who fails to file a return, willfully fails or refuses to make any payment to the Department of the tax imposed by the Act, or files a fraudulent return, or any officer or agent of a corporation engaged in the business of distributing tobacco products to retailers and consumers located in this State who signs a fraudulent return filed on behalf of the corporation, or any accountant or other agent who knowingly enters false information on the return of any taxpayer under the Act is guilty of a Class 4 felony.

 

c)         When the amount due is under $300, any person who accepts money that is due to the Department under the Act from a taxpayer for the purpose of acting as the taxpayer's agent to make the payment to the Department, but who fails to remit the payment to the Department when due, is guilty of a Class 4 felony.

 

d)         When the amount due is $300 or more, any distributor who files, or causes to be filed, a fraudulent return, or any officer or agent of a corporation engaged in the business of distributing tobacco products to retailers and consumers located in this State who files or causes to be filed or signs or causes to be signed a fraudulent return filed on behalf of the corporation, or any accountant or other agent who knowingly enters false information on the return of any taxpayer under the Act is guilty of a Class 3 felony.

 

e)         When the amount due is $300 or more, any person engaged in the business of distributing tobacco products to retailers and consumers located in this State who fails to file a return, willfully fails or refuses to make any payment to the Department of the tax imposed by the Act, or accepts money that is due to the Department under the Act from a taxpayer for the purpose of acting as the taxpayer's agent to make payment to the Department but fails to remit that payment to the Department when due is guilty of a Class 3 felony.

 

f)         Any person who violates any provision of Section 10-20 of the Act and, beginning January 1, 2016, Sections 10-21 and 10-22 of the Act, fails to keep books and records as required under the Act, or willfully violates a rule or regulation of the Department for the administration and enforcement of the Act, is guilty of a Class 4 felony.  A person commits a separate offense on each day that he or she engages in business in violation of Section 10-20 of the Act and, beginning January 1, 2016, Section 10-21 or 10-22 of the Act.  If a person fails to produce the books and records for inspection by the Department upon request, a prima facie presumption shall arise that the person has failed to keep books and records as required under this Act.  A person who is unable to rebut this presumption is in violation of the Act and is subject to the penalties provided in this Section.

 

g)         Any taxpayer or agent of a taxpayer who, with the intent to defraud, purports to make a payment due to the Department by issuing or delivering a check or other order upon a real or fictitious depository for the payment of money, knowing that it will not be paid by the depository, is guilty of a deceptive practice in violation of Section 17-1 of the Criminal Code of 2012.

 

h)         Any person who violates any provision of Sections 10-20, 10-21 and 10-22 of the Act, fails to keep books and records as required under the Act, or willfully violates a rule or regulation of the Department for the administration and enforcement of the Act, is guilty of a business offense and may be fined up to $5,000.  If a person fails to produce books and records for inspection by the Department upon request, a prima facie presumption shall arise that the person has failed to keep books and records as required under the Act.  A person who is unable to rebut this presumption is in violation of the Act and is subject to the penalties provided in this Section.  A person commits a separate offense on each day that he or she engages in business in violation of Sections 10-20, 10-21 and 10-22 of the Act.

 

i)          When the amount due is under $300, any retailer who fails to file a return, willfully fails or refuses to make any payment to the Department of the tax imposed by the Act, or files a fraudulent return, or any officer or agent of a corporation engaged in the retail business of selling tobacco products to purchasers of tobacco products for use and consumption located in this State who signs a fraudulent return filed on behalf of the corporation, or any accountant or other agent who knowingly enters false information on the return of any taxpayer under the Act is guilty of a Class A misdemeanor for a first offense and a Class 4 felony for each subsequent offense.

 

j)          When the amount due is $300 or more, any retailer who fails to file a return, willfully fails or refuses to make any payment to the Department of the tax imposed by the Act, or files a fraudulent return, or any officer or agent of a corporation engaged in the retail business of selling tobacco products to purchasers of tobacco products for use and consumption located in this State who signs a fraudulent return filed on behalf of the corporation, or any accountant or other agent who knowingly enters false information on the return of any taxpayer under the Act is guilty of a Class 4 felony.

 

k)         A prosecution for a violation described in subsections (b) through (j) may be commenced within 3 years after the commission of the act constituting the violation. [35 ILCS 143/10-50]

 

l)          Any person who knowingly acts as a retailer of tobacco products in this State without first having obtained a license to do so in compliance with Section 10-21 of the Act or a license in compliance with Section 4g of the Cigarette Tax Act shall be guilty of a Class A misdemeanor for the first offense and a Class 4 felony for a second or subsequent offense. Each day the person operates as a retailer without a license constitutes a separate offense. [35 ILCS 143/10-53]

 

m)        The Department may impose a civil penalty on distributors and retailers not to exceed $1,000 for the first violation and $3,000 for each subsequent violation of Section 10-37 of the Act. [35 ILCS 143/10-37]

 

n)         Any person whose principal place of business is in the State and who is charged with a violation under Section 10-50 of the Act shall be tried in the county where his or her principal place of business is located unless he or she asserts a right to be tried in another venue.  If the taxpayer does not have his or her principal place of business in this State, however, the hearing must be held in Sangamon County unless the taxpayer asserts a right to be tried in another venue. [35 ILCS 143/10-50]

 

o)         Except as otherwise provided in this Part, any person aggrieved by any decision of the Department under this Part may, within 60 days after notice of the decision, protest in writing and request a hearing.  Upon receiving a written request for a hearing, the Department shall give notice to the person requesting the hearing of the time and place fixed for the hearing and shall hold a hearing in conformity with the provisions of this Part and then issue its final administrative decision in the matter to that person.  In the absence of a protest and request for a hearing within 60 days, the Department's decision shall become final without any further determination being made or notice given.

 

p)         Except as provided by the Constitution of the United States, the Constitution of the State of Illinois, or any statutes of this State, including, but not limited to, the State Officers and Employees Money Disposition Act [30 ILCS 230], the Tax Tribunal established pursuant to the Illinois Independent Tax Tribunal Act of 2012 [35 ILCS 1010] shall have original jurisdiction over all determinations of the Department reflected on a Notice of Deficiency, Notice of Tax Liability, Notice of Claim Denial, or Notice of Penalty Liability issued under the Tobacco Products Tax Act of 1995 or the Uniform Penalty and Interest Act.  Jurisdiction of the Tax Tribunal is limited to Notices of Tax Liability, Notices of Deficiency, Notices of Claim Denial, and Notices of Penalty Liability when the amount at issue in a notice, or the aggregate amount at issue in multiple notices issued for the same tax year or audit period, exceeds $15,000, exclusive of penalties and interest.  In notices solely asserting either an interest or penalty assessment, or both, the Tax Tribunal shall have jurisdiction over cases in which the combined total of all penalties or interest assessed exceeds $15,000. [35 ILCS 1010/1-45]

 

q)         Any person who fails to keep books and records or fails to produce books and records for inspection, as required by Section 10-35, is liable to pay to the Department, for deposit in the Tax Compliance and Administration Fund, a penalty of $1,000 for the first failure to keep books and records or failure to produce books and records for inspection, as required by Section 10-35, and $3,000 for each subsequent failure to keep books and records or failure to produce books and records for inspection, as required by Section 10-35.  [35 ILCS 143/10-35a]

 

1)         All books and records and other papers and documents that are required to be kept by the Act shall, at all times during the usual business hours of the day, be subject to inspection by the Department or its duly authorized agents and employees.  (See Sections 660.24(b) and 660.25(b).)  A person that prohibits a duly authorized agent of the Department from inspecting books and records during usual business hours of the day has failed to produce books and records to the Department for inspection as required by this Section.  The Department may issue a notice of penalty to that person pursuant to this subsection (q)(1).  The Department is not required to provide the retailer with a written document request pursuant to this subsection (q)(1) or provide additional time for the retailer to allow the inspection of the premises and the books and records at the location.

 

2)         Except for retailers that are permitted to maintain books and records at another location pursuant to Section 660.24(a), distributors and retailers must have a person at their place of business at all times during the usual business hours of the day who is authorized to produce books and records for inspection by the Department.  It is presumed that a person working at a place of business has authority to permit the Department to inspect the books and records at the business location.  If a retail establishment has only one employee working at the time of the request for the books and records who has no ownership interest in the establishment and is not authorized to produce books and records, the employee is required to advise the Department he or she does not have authority to provide books and records for inspection.  The Department will not issue a notice of penalty to a distributor or retailer for failure to produce books and records if a person who is authorized to produce the books and records can be contacted by the employee and arrives at the place of business within 2 hours and produces the books and records.  The Department may extend the period either on verbal or written request for good cause shown or on its own motion.

 

EXAMPLE 1:  An authorized agent of the Department attempts to inspect the books and records of a tobacco retailer.  The person at the store states the records are at the store but refuses to provide access to the books and records because the owner of the store told him not to let anyone have access to the records.  The person states the owner is unavailable and cannot be contacted.  The Department will issue a notice of penalty.

 

EXAMPLE 2:  An authorized agent of the Department attempts to inspect the books and records of a tobacco retailer.  The person at the store states the records are at the store but refuses to provide access to the books and records because the owner of the store told him not to let anyone have access to the records.  The person states he can call a person responsible for making the records available to the agent.  The employee calls the person and the person arrives at the store in less than 60 minutes and makes the records available to the agent.  The Department will not issue a notice of penalty.

 

EXAMPLE 3:  An authorized agent of the Department enters a retailer's place of business and requests to see the books and records.  The person at the store states the books and records are maintained at another business location in Illinois.  The agent cannot issue a notice of penalty unless the retailer failed to notify the Department that the books and records are located at another location pursuant to Section 660.24(a).  However, the authorized agent of the Department does have authority to inspect the premises pursuant to Section 620.24(b).

 

3)         If a person fails to produce books and records for inspection by the Department upon request, a prima facie presumption shall arise that the person has failed to keep the books and records as required.  A person who is unable to rebut this presumption is subject to the penalty provided in this subsection (q).

 

4)         Except as otherwise provided by subsection (q)(1), if a request for the production of books and records has been made and not honored, prior to issuing a notice of penalty for a failure to maintain books and records or a failure to produce books and records, the Department must provide the taxpayer with a document request in writing.  The written document request must contain:

 

A)        the name of the person receiving the request;

 

B)        the name of the business;

 

C)        the date and time of the original request or requests;

 

D)        the books and records requested;

 

E)        the books and records that the person failed to produce;

 

F)         the number of days the person has to produce the books and records; and

 

G)        the name of the Department agent or employee and his or her contact information.

 

5)         The Department agent or employee shall sign and date the written document request and personally provide or mail a copy of the written document request to the business at its last known address.  The person shall have 30 days from the date of the written document request to produce the books and records the person has failed to produce.  The Department may extend the period either on written request for good cause shown or on its own motion.  If the person fails to produce the books and records within the time allotted, the Department may issue a notice of penalty pursuant to this subsection (q) to the business at its last known address.

 

EXAMPLE:  An authorized agent of the Department enters a convenience store and requests to see all the invoices for tobacco products purchased by the store in the last 60 days and all cash register receipts for sales made in the last 60 days.  The person at the store produces the cash register receipts but states that they have no invoices for tobacco products purchased in the last 60 days.  The agent fills out a written document request, provides a copy of the written document request to the person, and provides the person 30 days to produce the invoices.  The agent returns 30 days later and requests the invoices.  The person at the store cannot produce the invoices.  The Department issues a notice of penalty to the business at its last known address.

 

6)         Any person receiving a notice of penalty may, within 20 days after the date on the notice of penalty, protest and request a hearing.  Upon receiving a request for a hearing, the Department shall give notice to the person requesting the hearing of the time and place fixed for the hearing and shall hold a hearing in conformity with the provisions of the Act and then issue its final administrative decision in the matter to that person.  If the request is made during an audit, the Department shall postpone the hearing until completion of the audit or inspection.  In the absence of a protest and request for a hearing within 20 days, the Department's decision shall become final without any further determination being made or notice given.

 

7)         The Department cannot impose more than one penalty for failing to produce books and records for a calendar month.  

 

EXAMPLE 1:  An authorized agent of the Department inspects a tobacco retailer and requests the records for the first week in April.  The retailer does not produce the records.  The agent subsequently requests the records for the remaining 3 weeks in April.  The retailer does not produce the records.  The agent can assess only one penalty for the month of April.

 

EXAMPLE 2:  An authorized agent of the Department inspects a tobacco retailer and requests all purchase invoices for cigarettes for March.  The invoices are not provided by the retailer and the Department issues a notice of penalty.  The agent returns in May and ask to see all the tobacco sales receipts for March.  The retailer fails to produce the sales receipts.  The Department cannot issue a notice of penalty for failure of the retailer to provide sales receipts for March because the agent has previously issued a notice of penalty for failure to produce records for March.

 

8)         A records request can cover multiple periods.  The Department is authorized to issue a separate penalty for each period; e.g., for a taxpayer that files returns monthly, the period is one month.

 

EXAMPLE:  An authorized agent of the Department inspects a tobacco retailer and requests the books and records for the months of January through July.  The retailer cannot produce the books and records for any of the months.  The agent fills out a written document request, provides a copy to the person, and provides the person 30 business days to produce the invoices.  The agent returns 30 business days later and requests the invoices.  The person at the store cannot produce the invoices.  The Department will issue a notice of penalty in the amount of $1,000 for the month of January and $3,000 for each of the months February through July, for a total penalty of $19,000.

 

r)          Any distributor or retailer who violates Section 10-38 of the Act is liable to pay to the Department, for deposit in the Tax Compliance and Administration Fund, a penalty of $1,000 for the first violation and $3,000 for any subsequent violation.  [35 ILCS 143/10-38]  (See Sections 660.24(c) and 660.25(i).)

 

(Source:  Amended at 43 Ill. Reg. 8923, effective July 30, 2019)

 

Section 660.55  Incorporation by Reference

 

a)         All of the provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, 10, 11, 11a, and 12 of the Retailers' Occupation Tax Act, and all applicable provisions of the Uniform Penalty and Interest Act [35 ILCS 735] that are not inconsistent with the Act, apply to distributors of tobacco products to the same extent as if those provisions were included in the Act.  References in the incorporated Sections of the Retailers' Occupation Tax Act to retailers, to sellers, or to persons engaged in the business of selling tangible personal property mean distributors when used in the Act.  References in the incorporated Sections to sales of tangible personal property mean sales of tobacco products when used in the Act. [35 ILCS 143/10-45]

 

b)         All of the provisions of Sections 7, 8, 8a, 16, 18a, 18b, 18c, 22, 23, 24, 26, 27, and 28a of the Cigarette Tax Act that are not inconsistent with the Act shall apply, as far as practicable, to the subject matter of the Act to the same extent as if those provisions were included in the Act.  References in the incorporated Sections to sales of cigarettes mean sales of little cigars in packages of 20 or 25 little cigars. [35 ILCS 143/10-45]

 

(Source:  Added at 40 Ill. Reg. 10954, effective July 29, 2016)