093_HB2656sam001

 










                                     LRB093 04134 SJM 20269 a

 1                    AMENDMENT TO HOUSE BILL 2656

 2        AMENDMENT NO.     .  Amend House Bill 2656  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section 5.  The Cigarette Tax Act is amended by changing
 5    Section 2 as follows:

 6        (35 ILCS 130/2) (from Ch. 120, par. 453.2)
 7        Sec.  2.  Tax  imposed;  rate;  collection,  payment, and
 8    distribution; discount.
 9        (a)  A tax is imposed upon any person engaged in business
10    as a retailer of cigarettes in this State at the  rate  of  5
11    1/2 mills per cigarette sold, or otherwise disposed of in the
12    course  of  such  business  in this State. In addition to any
13    other tax imposed by this Act, a  tax  is  imposed  upon  any
14    person  engaged  in  business  as a retailer of cigarettes in
15    this State at a rate  of  1/2  mill  per  cigarette  sold  or
16    otherwise  disposed of in the course of such business in this
17    State on and after January 1, 1947, and shall  be  paid  into
18    the Metropolitan Fair and Exposition Authority Reconstruction
19    Fund. On and after December 1, 1985, in addition to any other
20    tax  imposed  by  this  Act, a tax is imposed upon any person
21    engaged in business as a retailer of cigarettes in this State
22    at a rate of 4 mills per cigarette sold or otherwise disposed
 
                            -2-      LRB093 04134 SJM 20269 a
 1    of in the course of such  business  in  this  State.  Of  the
 2    additional  tax  imposed  by  this  amendatory  Act  of 1985,
 3    $9,000,000 of  the  moneys  received  by  the  Department  of
 4    Revenue  pursuant  to  this Act shall be paid each month into
 5    the Common School Fund. On and after the  effective  date  of
 6    this  amendatory  Act  of  1989, in addition to any other tax
 7    imposed by this Act, a tax is imposed upon any person engaged
 8    in business as a retailer of cigarettes  at  the  rate  of  5
 9    mills  per  cigarette  sold  or  otherwise disposed of in the
10    course of such business in  this  State.  On  and  after  the
11    effective date of this amendatory Act of 1993, in addition to
12    any  other tax imposed by this Act, a tax is imposed upon any
13    person engaged in business as a retailer of cigarettes at the
14    rate of 7 mills per cigarette sold or otherwise  disposed  of
15    in  the  course  of such business in this State. On and after
16    December 15, 1997, in addition to any other  tax  imposed  by
17    this  Act,  a  tax  is  imposed  upon  any  person engaged in
18    business as a retailer of cigarettes at the rate of  7  mills
19    per  cigarette sold or otherwise disposed of in the course of
20    such business of this State. All of the  moneys  received  by
21    the  Department  of  Revenue  pursuant  to  this  Act and the
22    Cigarette Use Tax Act from the additional  taxes  imposed  by
23    this  amendatory  Act  of 1997, shall be paid each month into
24    the Common School  Fund.  On  and  after  July  1,  2002,  in
25    addition  to  any  other  tax  imposed  by this Act, a tax is
26    imposed upon any person engaged in business as a retailer  of
27    cigarettes  at  the  rate of 20.0 mills per cigarette sold or
28    otherwise disposed of in the course of such business in  this
29    State.  The  payment  of  such  taxes shall be evidenced by a
30    stamp affixed to each original package of cigarettes,  or  an
31    authorized  substitute  for  such  stamp  imprinted  on  each
32    original  package  of  such  cigarettes underneath the sealed
33    transparent outside wrapper  of  such  original  package,  as
34    hereinafter  provided.    However, such taxes are not imposed
 
                            -3-      LRB093 04134 SJM 20269 a
 1    upon any activity in such business in interstate commerce  or
 2    otherwise,  which activity may not under the Constitution and
 3    statutes of the United States be made the subject of taxation
 4    by this State.
 5        Beginning on the effective date of this amendatory Act of
 6    the 92nd General Assembly, all of the moneys received by  the
 7    Department  of Revenue pursuant to this Act and the Cigarette
 8    Use Tax Act, other than the moneys that are dedicated to  the
 9    Metropolitan  Fair  and  Exposition  Authority Reconstruction
10    Fund and the Common School Fund, shall  be  distributed  each
11    month as follows: first, there shall be paid into the General
12    Revenue  Fund  an amount which, when added to the amount paid
13    into  the  Common  School  Fund  for   that   month,   equals
14    $33,300,000,  except  that,  for  the months of December 2003
15    through June 2004  there  shall  be  paid  into  the  General
16    Revenue  Fund  an  amount that, when added to the amount paid
17    into  the  Common  School  Fund  for   that   month,   equals
18    $40,143,000;  then, from the moneys remaining, if any amounts
19    required to be paid into the General Revenue Fund in previous
20    months remain unpaid, those amounts shall be  paid  into  the
21    General  Revenue Fund; then, beginning on April 1, 2003, from
22    the moneys remaining, $5,000,000 per month shall be paid into
23    the School Infrastructure Fund; then, if any amounts required
24    to be paid into the School Infrastructure  Fund  in  previous
25    months  remain  unpaid,  those amounts shall be paid into the
26    School Infrastructure Fund; then  the  moneys  remaining,  if
27    any, shall be paid into the Long-Term Care Provider Fund.  To
28    the  extent that more than $25,000,000 has been paid into the
29    General Revenue Fund and Common School Fund per month for the
30    period of July 1, 1993 through the  effective  date  of  this
31    amendatory   Act  of  1994  from  combined  receipts  of  the
32    Cigarette  Tax  Act  and   the   Cigarette   Use   Tax   Act,
33    notwithstanding  the  distribution  provided in this Section,
34    the Department of Revenue is hereby directed  to  adjust  the
 
                            -4-      LRB093 04134 SJM 20269 a
 1    distribution  provided  in  this Section to increase the next
 2    monthly payments to the Long Term Care Provider Fund  by  the
 3    amount  paid  to  the  General Revenue Fund and Common School
 4    Fund in excess of $25,000,000 per month and to  decrease  the
 5    next  monthly payments to the General Revenue Fund and Common
 6    School Fund by that same excess amount.
 7        When any tax imposed herein terminates or has terminated,
 8    distributors who have bought stamps while  such  tax  was  in
 9    effect  and who therefore paid such tax, but who can show, to
10    the Department's satisfaction, that they sold the  cigarettes
11    to  which  they  affixed  such  stamps  after  such  tax  had
12    terminated and did not recover the tax or its equivalent from
13    purchasers, shall be allowed by the Department to take credit
14    for  such absorbed tax against subsequent tax stamp purchases
15    from the Department by such distributor.
16        The impact of the tax levied by this Act is imposed  upon
17    the  retailer  and  shall  be prepaid or pre-collected by the
18    distributor for the purpose of convenience and facility only,
19    and the amount of the tax shall be added to the price of  the
20    cigarettes  sold  by  such distributor. Collection of the tax
21    shall be evidenced by a  stamp  or  stamps  affixed  to  each
22    original package of cigarettes, as hereinafter provided.
23        Each  distributor shall collect the tax from the retailer
24    at or before the time of the sale, shall affix the stamps  as
25    hereinafter  required, and shall remit the tax collected from
26    retailers to the Department,  as  hereinafter  provided.  Any
27    distributor  who  fails  to  properly collect and pay the tax
28    imposed by  this  Act  shall  be  liable  for  the  tax.  Any
29    distributor  having  cigarettes  to  which  stamps  have been
30    affixed in his possession for sale on the effective  date  of
31    this  amendatory Act of 1989 shall not be required to pay the
32    additional tax imposed by this amendatory Act of 1989 on such
33    stamped cigarettes.  Any  distributor  having  cigarettes  to
34    which  stamps  have been affixed in his or her possession for
 
                            -5-      LRB093 04134 SJM 20269 a
 1    sale at 12:01 a.m. on the effective date of  this  amendatory
 2    Act of 1993, is required to pay the additional tax imposed by
 3    this amendatory Act of 1993 on such stamped cigarettes.  This
 4    payment,  less the discount provided in subsection (b), shall
 5    be due  when  the  distributor  first  makes  a  purchase  of
 6    cigarette  tax  stamps  after  the  effective  date  of  this
 7    amendatory  Act of 1993, or on the first due date of a return
 8    under this Act after the effective date  of  this  amendatory
 9    Act  of 1993, whichever occurs first.  Any distributor having
10    cigarettes  to  which  stamps  have  been  affixed   in   his
11    possession  for  sale  on  December  15,  1997  shall  not be
12    required to pay the additional tax imposed by this amendatory
13    Act of 1997 on such stamped cigarettes.
14        Any distributor having cigarettes to  which  stamps  have
15    been  affixed  in  his  or her possession for sale on July 1,
16    2002 shall not be required to pay the additional tax  imposed
17    by  this amendatory Act of the 92nd General Assembly on those
18    stamped cigarettes.
19        The amount of the Cigarette Tax imposed by this Act shall
20    be separately stated, apart from the price of the  goods,  by
21    both distributors and retailers, in all advertisements, bills
22    and sales invoices.
23        (b)  The  distributor  shall  be  required to collect the
24    taxes provided under paragraph (a) hereof, and, to cover  the
25    costs  of such collection, shall be allowed a discount during
26    any year commencing July 1st and ending  the  following  June
27    30th  in  accordance  with  the schedule set out hereinbelow,
28    which discount shall be allowed at the time  of  purchase  of
29    the  stamps  when purchase is required by this Act, or at the
30    time when the tax is remitted to the Department  without  the
31    purchase  of  stamps  from the Department when that method of
32    paying the tax is required or authorized by this Act.   Prior
33    to December 1, 1985, a discount equal to 1 2/3% of the amount
34    of  the  tax  up  to  and  including  the first $700,000 paid
 
                            -6-      LRB093 04134 SJM 20269 a
 1    hereunder by such distributor to the  Department  during  any
 2    such  year;  1  1/3%  of the next $700,000 of tax or any part
 3    thereof, paid hereunder by such distributor to the Department
 4    during any such year; 1% of the next $700,000 of tax, or  any
 5    part  thereof,  paid  hereunder  by  such  distributor to the
 6    Department during any such year, and 2/3 of 1% of the  amount
 7    of  any  additional tax paid hereunder by such distributor to
 8    the Department during any such year shall apply. On and after
 9    December 1, 1985, a discount equal to 1.75% of the amount  of
10    the  tax payable under this Act up to and including the first
11    $3,000,000  paid  hereunder  by  such  distributor   to   the
12    Department during any such year and 1.5% of the amount of any
13    additional  tax  paid  hereunder  by  such distributor to the
14    Department during any such year shall apply.
15        Two or more distributors  that  use  a  common  means  of
16    affixing  revenue  tax stamps or that are owned or controlled
17    by  the  same  interests  shall  be  treated  as   a   single
18    distributor for the purpose of computing the discount.
19        (c)  The  taxes  herein  imposed  are  in addition to all
20    other occupation or privilege taxes imposed by the  State  of
21    Illinois,  or by any political subdivision thereof, or by any
22    municipal corporation.
23    (Source: P.A. 92-536, eff. 6-6-02.)

24        Section 99.  Effective date.  This Act takes effect  upon
25    becoming law.".