Bill Status of SB 227   93rd General Assembly

Short Description:  CIGARETTES & TOBACCO-BAD DEBTS

Senate Sponsors
Sen. Terry Link-George P. Shadid-Chris Lauzen

House Sponsors
(Rep. Kurt M. Granberg-William B. Black)


Last Action  View All Actions

DateChamber Action
  1/11/2005SenateSession Sine Die

Statutes Amended In Order of Appearance
35 ILCS 130/3-2 new
35 ILCS 135/3-2 new
35 ILCS 143/10-32 new

Synopsis As Introduced
Amends the Cigarette Tax Act, the Cigarette Use Tax Act, and the Tobacco Products Tax Act of 1995. Provides that, beginning on January 1, 2004, a distributor may deduct the amount of bad debts from the tax imposed under these Acts. Provides that "bad debt" means the taxes attributable to any portion of a debt owed to the distributor that is related to a sale of cigarettes or tobacco products subject to tax under these Acts, that is not otherwise deductible or excludable, that has become worthless or uncollectible, and that meets other criteria. Effective immediately.

 Fiscal Note (Department of Revenue)
 The Department has no way to know what percentage of distributors' accounts are uncollectible. However, assuming 2% are uncollectible, the State would lose $12 million per year.

Senate Floor Amendment No. 1
Deletes everything after the enacting clause. Amends the Cigarette Tax Act, the Cigarette Use Tax Act, and the Tobacco Products Tax Act of 1995. Provides that the Department of Revenue is authorized to issue credit vouchers for bad debts to applicants meeting certain requirements. Defines "bad debt" as the taxes attributable to any portion of a debt that is related to a sale of cigarettes subject to tax under the Acts that is not otherwise deductible or excludable for any tax purpose, that has become worthless or uncollectible within 60 days after the delivery of the cigarettes that are represented by a claim. Beginning on January 1, 2004, authorizes distributors to submit an application to the Department for a credit voucher in the amount of bad debts from the tax imposed under the Acts. Sets forth requirements for filing a claim. Provides for appeals of adverse decisions. Effective immediately.

House Amendment No. 1
Deletes reference to:
35 ILCS 135/3-2 new
35 ILCS 143/10-32 new

Deletes all substantive provisions of the bill, retaining only a caption in the Cigarette Tax Act concerning credit vouchers for bad debts.

Actions 
DateChamber Action
  2/5/2003SenateFiled with Secretary by Sen. Terry Link
  2/5/2003SenateFirst Reading
  2/5/2003SenateReferred to Rules
  2/6/2003SenateAssigned to Revenue
  2/6/2003SenateAdded as Chief Co-Sponsor Sen. George P. Shadid
  2/19/2003SenateDo Pass Revenue; 009-001-000
  2/19/2003SenatePlaced on Calendar Order of 2nd Reading February 26, 2003
  2/19/2003SenateFiscal Note Requested by Sen. Chris Lauzen
  3/20/2003SenateFiscal Note Filed from the Illinois Department of Revenue
  3/20/2003SenateAdded as Chief Co-Sponsor Sen. Chris Lauzen
  3/21/2003SenateSecond Reading
  3/21/2003SenatePlaced on Calendar Order of 3rd Reading March 24, 2003
  4/2/2003SenateSenate Floor Amendment No. 1 Filed with Secretary by Sen. Terry Link
  4/2/2003SenateSenate Floor Amendment No. 1 Referred to Rules
  4/2/2003SenateSenate Floor Amendment No. 1 Rules Refers to Revenue
  4/2/2003SenateSenate Floor Amendment No. 1 Be Adopted Revenue; 008-000-000
  4/2/2003SenateRecalled to Second Reading
  4/2/2003SenateSenate Floor Amendment No. 1 Adopted; Link
  4/2/2003SenatePlaced on Calendar Order of 3rd Reading April 3, 2003
  4/3/2003SenateThird Reading - Passed; 035-022-001
  4/3/2003HouseArrived in House
  4/3/2003HousePlaced on Calendar Order of First Reading
  4/3/2003HouseChief House Sponsor Rep. William B. Black
  4/3/2003HouseAdded Alternate Chief Co-Sponsor Rep. Kurt M. Granberg
  4/3/2003HouseAlternate Chief Sponsor Changed to Rep. Kurt M. Granberg
  4/3/2003HouseAdded Alternate Chief Co-Sponsor Rep. William B. Black
  4/3/2003HouseFirst Reading
  4/3/2003HouseReferred to Rules Committee
  4/8/2003HouseAssigned to Revenue Committee
  5/1/2003HouseHouse Amendment No. 1 Filed with Clerk by Revenue Committee
  5/1/2003HouseHouse Amendment No. 1 Adopted by Voice Vote; Revenue Sub-committee
  5/1/2003HouseDo Pass as Amended / Short Debate Revenue Committee; 009-000-000
  5/1/2003HousePlaced on Calendar 2nd Reading - Short Debate
  5/16/2003HouseCommittee/3rd Reading Deadline Extended-Rule 9(b); May 23, 2003
  5/23/2003HouseThird Reading/Final Action Deadline Extended-9(b) May 31, 2003
  5/29/2003HouseSecond Reading - Short Debate
  5/29/2003HouseHeld on Calendar Order of Second Reading - Short Debate
  6/1/2003HouseRule 19(a) / Re-referred to Rules Committee
  1/11/2005SenateSession Sine Die

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