Illinois General Assembly - Full Text of HB4048
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Full Text of HB4048  101st General Assembly




State of Illinois
2019 and 2020


Introduced 1/13/2020, by Rep. Jonathan Carroll


35 ILCS 143/10-10
35 ILCS 143/10-30

    Amends the Tobacco Products Tax Act of 1995. Provides that, beginning on January 1, 2021, the tax per cigar or other rolled tobacco product shall not exceed $0.50 per cigar or roll. Provides that distributors are allowed a discount in the amount of 2% of the distributor's tax liability, but not to exceed $2,000 per return.

LRB101 16088 HLH 65451 b






HB4048LRB101 16088 HLH 65451 b

1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Tobacco Products Tax Act of 1995 is amended
5by changing Sections 10-10 and 10-30 as follows:
6    (35 ILCS 143/10-10)
7    Sec. 10-10. Tax imposed.
8    (a) Except as otherwise provided in this Section with
9respect to little cigars, on the first day of the third month
10after the month in which this Act becomes law, a tax is imposed
11on any person engaged in business as a distributor of tobacco
12products, as defined in Section 10-5, at the rate of (i) 18% of
13the wholesale price of tobacco products sold or otherwise
14disposed of to retailers or consumers located in this State
15prior to July 1, 2012 and (ii) 36% of the wholesale price of
16tobacco products sold or otherwise disposed of to retailers or
17consumers located in this State beginning on July 1, 2012;
18except that, beginning on January 1, 2013, the tax on moist
19snuff shall be imposed at a rate of $0.30 per ounce, and a
20proportionate tax at the like rate on all fractional parts of
21an ounce, sold or otherwise disposed of to retailers or
22consumers located in this State; and except that, beginning
23July 1, 2019, the tax on electronic cigarettes shall be imposed



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1at the rate of 15% of the wholesale price of electronic
2cigarettes sold or otherwise disposed of to retailers or
3consumers located in this State. The tax is in addition to all
4other occupation or privilege taxes imposed by the State of
5Illinois, by any political subdivision thereof, or by any
6municipal corporation. However, the tax is not imposed upon any
7activity in that business in interstate commerce or otherwise,
8to the extent to which that activity may not, under the
9Constitution and Statutes of the United States, be made the
10subject of taxation by this State, and except that, beginning
11July 1, 2013, the tax on little cigars shall be imposed at the
12same rate, and the proceeds shall be distributed in the same
13manner, as the tax imposed on cigarettes under the Cigarette
14Tax Act. The tax is also not imposed on sales made to the
15United States or any entity thereof.
16    (b) Notwithstanding subsection (a) of this Section,
17stamping distributors of packages of little cigars containing
1820 or 25 little cigars sold or otherwise disposed of in this
19State shall remit the tax by purchasing tax stamps from the
20Department and affixing them to packages of little cigars in
21the same manner as stamps are purchased and affixed to
22cigarettes under the Cigarette Tax Act, unless the stamping
23distributor sells or otherwise disposes of those packages of
24little cigars to another stamping distributor. Only persons
25meeting the definition of "stamping distributor" contained in
26Section 10-5 of this Act may affix stamps to packages of little



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1cigars containing 20 or 25 little cigars. Stamping distributors
2may not sell or dispose of little cigars at retail to consumers
3or users at locations where stamping distributors affix stamps
4to packages of little cigars containing 20 or 25 little cigars.
5    (c) The impact of the tax levied by this Act is imposed
6upon distributors engaged in the business of selling tobacco
7products to retailers or consumers in this State. Whenever a
8stamping distributor brings or causes to be brought into this
9State from without this State, or purchases from without or
10within this State, any packages of little cigars containing 20
11or 25 little cigars upon which there are no tax stamps affixed
12as required by this Act, for purposes of resale or disposal in
13this State to a person not a stamping distributor, then such
14stamping distributor shall pay the tax to the Department and
15add the amount of the tax to the price of such packages sold by
16such stamping distributor. Payment of the tax shall be
17evidenced by a stamp or stamps affixed to each package of
18little cigars containing 20 or 25 little cigars.
19    Stamping distributors paying the tax to the Department on
20packages of little cigars containing 20 or 25 little cigars
21sold to other distributors, wholesalers or retailers shall add
22the amount of the tax to the price of the packages of little
23cigars containing 20 or 25 little cigars sold by such stamping
25    (d) Beginning on January 1, 2013, the tax rate imposed per
26ounce of moist snuff may not exceed 15% of the tax imposed upon



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1a package of 20 cigarettes pursuant to the Cigarette Tax Act.
2    (d-5) Notwithstanding the provisions of this Section,
3beginning January 1, 2021, the tax per cigar or other rolled
4tobacco product sold or otherwise disposed of shall not exceed
5$0.50 per cigar or roll.
6    (e) All moneys received by the Department under this Act
7from sales occurring prior to July 1, 2012 shall be paid into
8the Long-Term Care Provider Fund of the State Treasury. Of the
9moneys received by the Department from sales occurring on or
10after July 1, 2012, except for moneys received from the tax
11imposed on the sale of little cigars, 50% shall be paid into
12the Long-Term Care Provider Fund and 50% shall be paid into the
13Healthcare Provider Relief Fund. Beginning July 1, 2013, all
14moneys received by the Department under this Act from the tax
15imposed on little cigars shall be distributed as provided in
16Section 2 of the Cigarette Tax Act.
17(Source: P.A. 101-31, eff. 6-28-19.)
18    (35 ILCS 143/10-30)
19    Sec. 10-30. Returns.
20    (a) Every distributor shall, on or before the 15th day of
21each month, file a return with the Department covering the
22preceding calendar month. The return shall disclose the
23wholesale price for all tobacco products other than moist snuff
24and the quantity in ounces of moist snuff sold or otherwise
25disposed of and other information that the Department may



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1reasonably require. The return shall be filed upon a form
2prescribed and furnished by the Department.
3    (b) In addition to the information required under
4subsection (a), on or before the 15th day of each month,
5covering the preceding calendar month, each stamping
6distributor shall, on forms prescribed and furnished by the
7Department, report the quantity of little cigars sold or
8otherwise disposed of, including the number of packages of
9little cigars sold or disposed of during the month containing
1020 or 25 little cigars.
11    (c) At the time when any return of any distributor is due
12to be filed with the Department, the distributor shall also
13remit to the Department the tax liability that the distributor
14has incurred for transactions occurring in the preceding
15calendar month, less the discount allowed.
16    (d) The Department may adopt rules to require the
17electronic filing of any return or document required to be
18filed under this Act. Those rules may provide for exceptions
19from the filing requirement set forth in this paragraph for
20persons who demonstrate that they do not have access to the
21Internet and petition the Department to waive the electronic
22filing requirement.
23    (e) If any payment provided for in this Section exceeds the
24distributor's liabilities under this Act, as shown on an
25original return, the distributor may credit such excess payment
26against liability subsequently to be remitted to the Department



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1under this Act, in accordance with reasonable rules adopted by
2the Department.
3    (f) The distributor required to pay the tax under Section
410-10 shall be entitled to a discount to reimburse the
5distributor for the expenses incurred in keeping and
6maintaining records, preparing and filing the returns,
7remitting the tax, and supplying the data to the Department
8upon request. The discount shall be 2% of the distributor's tax
9liability under this Act, but not to exceed $2,000 per return.
10(Source: P.A. 100-1171, eff. 1-4-19.)