Rep. Kelly M. Cassidy

Filed: 5/7/2021

 

 


 

 


 
10200SB1706ham001LRB102 16571 HLH 26201 a

1
AMENDMENT TO SENATE BILL 1706

2    AMENDMENT NO. ______. Amend Senate Bill 1706 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Tobacco Products Tax Act of 1995 is
5amended by changing Section 10-5 as follows:
 
6    (35 ILCS 143/10-5)
7    Sec. 10-5. Definitions. For purposes of this Act:
8    "Business" means any trade, occupation, activity, or
9enterprise engaged in, at any location whatsoever, for the
10purpose of selling tobacco products.
11    "Cigarette" has the meaning ascribed to the term in
12Section 1 of the Cigarette Tax Act.
13    "Contraband little cigar" means:
14        (1) packages of little cigars containing 20 or 25
15    little cigars that do not bear a required tax stamp under
16    this Act;

 

 

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1        (2) packages of little cigars containing 20 or 25
2    little cigars that bear a fraudulent, imitation, or
3    counterfeit tax stamp;
4        (3) packages of little cigars containing 20 or 25
5    little cigars that are improperly tax stamped, including
6    packages of little cigars that bear only a tax stamp of
7    another state or taxing jurisdiction; or
8        (4) packages of little cigars containing other than 20
9    or 25 little cigars in the possession of a distributor,
10    retailer or wholesaler, unless the distributor, retailer,
11    or wholesaler possesses, or produces within the time frame
12    provided in Section 10-27 or 10-28 of this Act, an invoice
13    from a stamping distributor, distributor, or wholesaler
14    showing that the tax on the packages has been or will be
15    paid.
16    "Correctional Industries program" means a program run by a
17State penal institution in which residents of the penal
18institution produce tobacco products for sale to persons
19incarcerated in penal institutions or resident patients of a
20State operated mental health facility.
21    "Department" means the Illinois Department of Revenue.
22    "Distributor" means any of the following:
23        (1) Any manufacturer or wholesaler in this State
24    engaged in the business of selling tobacco products who
25    sells, exchanges, or distributes tobacco products to
26    retailers or consumers in this State.

 

 

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1        (2) Any manufacturer or wholesaler engaged in the
2    business of selling tobacco products from without this
3    State who sells, exchanges, distributes, ships, or
4    transports tobacco products to retailers or consumers
5    located in this State, so long as that manufacturer or
6    wholesaler has or maintains within this State, directly or
7    by subsidiary, an office, sales house, or other place of
8    business, or any agent or other representative operating
9    within this State under the authority of the person or
10    subsidiary, irrespective of whether the place of business
11    or agent or other representative is located here
12    permanently or temporarily.
13        (3) Any retailer who receives tobacco products on
14    which the tax has not been or will not be paid by another
15    distributor.
16    "Distributor" does not include any person, wherever
17resident or located, who makes, manufactures, or fabricates
18tobacco products as part of a Correctional Industries program
19for sale to residents incarcerated in penal institutions or
20resident patients of a State operated mental health facility.
21    "Electronic cigarette" means:
22        (1) any device that employs a battery or other
23    mechanism to heat a solution or substance to produce a
24    vapor or aerosol intended for inhalation, except (A) any
25    device designed solely for use with cannabis that contains
26    a statement on the retail packaging that the device is

 

 

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1    designed solely for use with cannabis and not for use with
2    tobacco or (B) any device that contains a solution or
3    substance that contains cannabis subject to tax under the
4    Compassionate Use of Medical Cannabis Program Act or the
5    Cannabis Regulation and Tax Act;
6        (2) any cartridge or container of a solution or
7    substance intended to be used with or in the device or to
8    refill the device, except any cartridge or container of a
9    solution or substance that contains cannabis subject to
10    tax under the Compassionate Use of Medical Cannabis
11    Program Act or the Cannabis Regulation and Tax Act; or
12        (3) any solution or substance, whether or not it
13    contains nicotine, intended for use in the device, except
14    any solution or substance that contains cannabis subject
15    to tax under the Compassionate Use of Medical Cannabis
16    Program Act or the Cannabis Regulation and Tax Act.
17    The changes made to the definition of "electronic
18cigarette" by this amendatory Act of the 102nd General
19Assembly apply on and after June 28, 2020, but no claim for
20credit or refund is allowed on or after the effective date of
21this amendatory Act of the 102nd General Assembly for such
22taxes paid during the period beginning June 28, 2020 and the
23effective date of this amendatory Act of the 102nd General
24Assembly.
25    "Electronic cigarette" includes, but is not limited to,
26any electronic nicotine delivery system, electronic cigar,

 

 

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1electronic cigarillo, electronic pipe, electronic hookah, vape
2pen, or similar product or device, and any component or part
3that can be used to build the product or device. "Electronic
4cigarette" does not include: cigarettes, as defined in Section
51 of the Cigarette Tax Act; any product approved by the United
6States Food and Drug Administration for sale as a tobacco
7cessation product, a tobacco dependence product, or for other
8medical purposes that is marketed and sold solely for that
9approved purpose; any asthma inhaler prescribed by a physician
10for that condition that is marketed and sold solely for that
11approved purpose; or any therapeutic product approved for use
12under the Compassionate Use of Medical Cannabis Program Act.
13    "Little cigar" means and includes any roll, made wholly or
14in part of tobacco, where such roll has an integrated
15cellulose acetate filter and weighs less than 4 pounds per
16thousand and the wrapper or cover of which is made in whole or
17in part of tobacco.
18    "Manufacturer" means any person, wherever resident or
19located, who manufactures and sells tobacco products, except a
20person who makes, manufactures, or fabricates tobacco products
21as a part of a Correctional Industries program for sale to
22persons incarcerated in penal institutions or resident
23patients of a State operated mental health facility.
24    Beginning on January 1, 2013, "moist snuff" means any
25finely cut, ground, or powdered tobacco that is not intended
26to be smoked, but shall not include any finely cut, ground, or

 

 

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1powdered tobacco that is intended to be placed in the nasal
2cavity.
3    "Person" means any natural individual, firm, partnership,
4association, joint stock company, joint venture, limited
5liability company, or public or private corporation, however
6formed, or a receiver, executor, administrator, trustee,
7conservator, or other representative appointed by order of any
8court.
9    "Place of business" means and includes any place where
10tobacco products are sold or where tobacco products are
11manufactured, stored, or kept for the purpose of sale or
12consumption, including any vessel, vehicle, airplane, train,
13or vending machine.
14    "Retailer" means any person in this State engaged in the
15business of selling tobacco products to consumers in this
16State, regardless of quantity or number of sales.
17    "Sale" means any transfer, exchange, or barter in any
18manner or by any means whatsoever for a consideration and
19includes all sales made by persons.
20    "Stamp" or "stamps" mean the indicia required to be
21affixed on a package of little cigars that evidence payment of
22the tax on packages of little cigars containing 20 or 25 little
23cigars under Section 10-10 of this Act. These stamps shall be
24the same stamps used for cigarettes under the Cigarette Tax
25Act.
26    "Stamping distributor" means a distributor licensed under

 

 

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1this Act and also licensed as a distributor under the
2Cigarette Tax Act or Cigarette Use Tax Act.
3    "Tobacco products" means any cigars, including little
4cigars; cheroots; stogies; periques; granulated, plug cut,
5crimp cut, ready rubbed, and other smoking tobacco; snuff
6(including moist snuff) or snuff flour; cavendish; plug and
7twist tobacco; fine-cut and other chewing tobaccos; shorts;
8refuse scraps, clippings, cuttings, and sweeping of tobacco;
9and other kinds and forms of tobacco, prepared in such manner
10as to be suitable for chewing or smoking in a pipe or
11otherwise, or both for chewing and smoking; but does not
12include cigarettes as defined in Section 1 of the Cigarette
13Tax Act or tobacco purchased for the manufacture of cigarettes
14by cigarette distributors and manufacturers defined in the
15Cigarette Tax Act and persons who make, manufacture, or
16fabricate cigarettes as a part of a Correctional Industries
17program for sale to residents incarcerated in penal
18institutions or resident patients of a State operated mental
19health facility.
20    Beginning on July 1, 2019, "tobacco products" also
21includes electronic cigarettes.
22    "Wholesale price" means the established list price for
23which a manufacturer sells tobacco products to a distributor,
24before the allowance of any discount, trade allowance, rebate,
25or other reduction. In the absence of such an established list
26price, the manufacturer's invoice price at which the

 

 

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1manufacturer sells the tobacco product to unaffiliated
2distributors, before any discounts, trade allowances, rebates,
3or other reductions, shall be presumed to be the wholesale
4price.
5    "Wholesaler" means any person, wherever resident or
6located, engaged in the business of selling tobacco products
7to others for the purpose of resale. "Wholesaler", when used
8in this Act, does not include a person licensed as a
9distributor under Section 10-20 of this Act unless expressly
10stated in this Act.
11(Source: P.A. 101-31, eff. 6-28-19; 101-593, eff. 12-4-19.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.".