SB0716ham002 94TH GENERAL ASSEMBLY

Revenue Committee

Adopted in House Comm. on Nov 14, 2006

09400SB0716ham002 LRB094 08554 BDD 60436 a

AMENDMENT TO SENATE BILL 716

AMENDMENT NO. ______. Amend Senate Bill 716, AS AMENDED, by replacing everything after the enacting clause with the following:

"Section 5. The Counties Code is amended by adding Section 5-1008.7 as follows:

(55 ILCS 5/5-1008.7 new)

Sec. 5-1008.7. County cigarette tax.

(a) The definitions as used in the Cigarette Tax Act (35 ILCS 130/) are hereby expressly adopted as if fully set forth in this Section and apply to all provisions of this Section.

(b) The county board of any county may, by ordinance or resolution, impose a county cigarette tax upon any person engaged in business as a retailer of cigarettes in a county located in this State. If imposed, the tax may not exceed the rate of 100 mills per cigarette sold or otherwise disposed of in the course of such business in this State. The tax shall be administered by the county imposing that tax. The payment of the taxes must be evidenced by a stamp affixed to each original package of cigarettes, or an authorized substitute for such a stamp, imprinted on each original package of the cigarettes underneath the sealed transparent outside wrapper or on the exterior of the outside wrapper of the original package.

The tax under this Section, however, is not imposed upon any activity in any business in interstate commerce or otherwise that may not, under the Constitution and statutes of the United States, be made the subject of taxation by this State.

The impact of the tax levied by this Act is imposed upon the retailer and must be prepaid or precollected by the distributor for the purpose of convenience and facility only, and the amount of the tax must be added to the price of the cigarettes sold by the distributor. The collection of the tax must be evidenced by a stamp or stamps affixed to each original package of cigarettes.

Each distributor must collect the tax from the retailer at or before the time of the sale, must affix the stamps, and must remit, to the county, the tax collected from the retailer. Any distributor who fails to properly collect and pay the tax imposed by this Section is liable for the tax.

The amount of the tax imposed under this Section must be separately stated, apart from the price of the goods, by both distributors and retailers, in all advertisements, bills, and sales invoices.

(c) The taxes imposed under this Section are in addition to all other occupation or privilege taxes imposed by the State of Illinois, or by any political subdivision thereof, or by any municipal corporation.

(d) Any proceeds collected from the tax imposed under this Section may be used by the county only for the purpose of public health and safety.

(e) An ordinance or resolution imposing or discontinuing the tax under this Section or changing the rate of the tax must be adopted by the county board and a certified copy of the ordinance or resolution be filed with the county clerk on or before the first day of the month following the adoption of the ordinance or resolution, whereupon the county shall proceed to administer and enforce this Section no sooner than 60 days after the adoption and filing.

(f) All of the provisions of the Cigarette Tax Act (35 ILCS 130/) that are not inconsistent with this Section apply, as far as practical, to the subject matter of this Section to the same extent as if the provisions were included in this Section.".