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1 | AN ACT concerning taxes.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Cigarette Tax Act is amended by adding | ||||||
5 | Section 2a as follows: | ||||||
6 | (35 ILCS 130/2a new) | ||||||
7 | Sec. 2a. Nonparticipating-manufacturer equity assessment. | ||||||
8 | (a) As used in this Section, "nonparticipating | ||||||
9 | manufacturer" has the same meaning as that term is defined in | ||||||
10 | Section 10 of the Tobacco Product Manufacturers' Escrow | ||||||
11 | Enforcement Act of 2003. | ||||||
12 | (b) An equity assessment, in the amount of 25 mills per | ||||||
13 | cigarette, is imposed on each package of | ||||||
14 | nonparticipating-manufacturer cigarettes to which a person | ||||||
15 | affixes a stamp or imprint as required under existing law. This | ||||||
16 | equity assessment is in addition to all other assessments, | ||||||
17 | fees, and taxes levied or imposed under existing law. The | ||||||
18 | Department shall collect the equity assessment each month | ||||||
19 | directly from each nonparticipating manufacturer based on | ||||||
20 | information received by the Department under subsections (d) | ||||||
21 | and (e) of this Section.
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22 | (c) The purposes of this assessment are: | ||||||
23 | (1) to prevent nonparticipating manufacturers from | ||||||
24 | undermining the State's policy of reducing underage | ||||||
25 | smoking by offering their cigarettes for sale | ||||||
26 | substantially below the price of cigarettes of other | ||||||
27 | manufacturers; | ||||||
28 | (2) to protect funding, which is reduced as a result of | ||||||
29 | the growth of nonparticipating-manufacturer cigarette | ||||||
30 | sales, for programs funded in whole or in part by payments | ||||||
31 | to the State under the Master Settlement Agreement, as | ||||||
32 | defined in Section 10 of the Tobacco Product Manufacturers' |
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1 | Escrow Act, and to recoup settlement-payment revenue lost | ||||||
2 | to the State as a result of nonparticipating-manufacturer | ||||||
3 | cigarette sales; | ||||||
4 | (3) notwithstanding Section 2, to fund enforcement and | ||||||
5 | administration of the Tobacco Product Manufacturers' | ||||||
6 | Escrow Act, the Tobacco Product Manufacturers' Escrow | ||||||
7 | Enforcement Act of 2003, and this assessment, including | ||||||
8 | reasonable administrative costs incurred by persons | ||||||
9 | subject to subsection (e) of this Section by reason of the | ||||||
10 | requirements of that subsection; and | ||||||
11 | (4) to fund such other purposes as the General Assembly | ||||||
12 | shall determine.
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13 | (d) A nonparticipating manufacturer whose cigarettes are | ||||||
14 | being offered for sale in this State on the effective date of | ||||||
15 | this amendatory Act of the 93rd General Assembly shall pay the | ||||||
16 | assessment imposed by this Section within 30 days after the | ||||||
17 | effective date of this amendatory Act of the 93rd General | ||||||
18 | Assembly. If cigarettes of a nonparticipating manufacturer are | ||||||
19 | not being offered for sale in this State on the effective date | ||||||
20 | of this amendatory Act of the 93rd General Assembly, then the | ||||||
21 | nonparticipating manufacturer, before its cigarettes may begin | ||||||
22 | to be offered for sale in this State, shall prepay the fee | ||||||
23 | imposed by this Section for the number of cigarettes of the | ||||||
24 | nonparticipating manufacturer that the Department reasonably | ||||||
25 | projects will be sold in the first calendar month in which | ||||||
26 | cigarettes of the nonparticipating manufacturer are sold in | ||||||
27 | this State. The prepayment amount shall be (i) determined by | ||||||
28 | multiplying 25 mills times the number of cigarettes that the | ||||||
29 | Department reasonably projects that the nonparticipating | ||||||
30 | manufacturer will sell in this State in that first calendar | ||||||
31 | month or (ii) $50,000, whichever is more. The Department may | ||||||
32 | require a nonparticipating manufacturer to provide any | ||||||
33 | information reasonably necessary to determine the assessment | ||||||
34 | payment amount and, in the case of prepayment, shall establish | ||||||
35 | procedures providing for reimbursement to nonparticipating | ||||||
36 | manufacturers if actual sales are less than sales as projected |
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1 | by the Department and for additional payment by | ||||||
2 | nonparticipating manufacturers if actual sales are greater | ||||||
3 | than sales as projected by the Department.
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4 | (e) Each person required to report to the Department under | ||||||
5 | Section 9 shall State in that report the number and | ||||||
6 | denominations of stamps or imprints affixed to individual | ||||||
7 | packages of nonparticipating-manufacturer cigarettes, by | ||||||
8 | manufacturer and brand family, sold by the person for each | ||||||
9 | place of business in the previous month. The reporting | ||||||
10 | requirement imposed by this subsection shall be enforced in the | ||||||
11 | same manner as the reporting requirements in Section 9.
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12 | (f) A person shall not affix, or cause to be affixed, to | ||||||
13 | any package of cigarettes of a nonparticipating manufacturer, | ||||||
14 | the stamp or imprints required under existing law after | ||||||
15 | receiving notice from the Department, which the Department | ||||||
16 | shall provide, that the nonparticipating manufacturer has not | ||||||
17 | paid in full the equity assessment imposed by this Section. A | ||||||
18 | person that has affixed the stamp or imprint required under | ||||||
19 | existing law to any package of cigarettes of a nonparticipating | ||||||
20 | manufacturer in violation of this subsection shall be subject | ||||||
21 | to the penalties provided in Section 24.
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22 | (g) Cigarettes of a nonparticipating manufacturer that has | ||||||
23 | not paid the equity assessment imposed by this Section shall be | ||||||
24 | treated as cigarettes of a nonparticipating manufacturer that | ||||||
25 | has not provided the certification required by Section 15 of | ||||||
26 | the Tobacco Products Manufacturers' Escrow Enforcement Act of | ||||||
27 | 2003 and shall be treated as unstamped packages of cigarettes.
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28 | Section 99. Effective date. This Act takes effect upon | ||||||
29 | becoming law.
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