Full Text of SB2552 93rd General Assembly
SB2552 93RD GENERAL ASSEMBLY
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93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 SB2552
Introduced 2/3/2004, by Terry Link SYNOPSIS AS INTRODUCED: |
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Amends the Cigarette Tax Act. Provides that an equity assessment, in the amount of 25 mills per cigarette, is imposed on each package of nonparticipating-manufacturer cigarettes to which a person affixes a stamp or imprint as required under existing law. Provides that a "nonparticipating manufacturer" is a tobacco manufacturer that is not participating in the master settlement agreement entered into with respect to certain tobacco-related litigation. Sets forth payment procedures and penalties for violations. Effective immediately.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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SB2552 |
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LRB093 18067 SJM 43754 b |
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| AN ACT concerning taxes.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| 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. Except as otherwise provided in this | 22 |
| Section, the assessment shall be collected, paid, | 23 |
| administered, and enforced in the same manner as the tax on | 24 |
| cigarettes imposed by Section 2.
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| (c) The purposes of this assessment are: | 26 |
| (1) to prevent nonparticipating manufacturers from | 27 |
| undermining the State's policy of reducing underage | 28 |
| smoking by offering their cigarettes for sale | 29 |
| substantially below the price of cigarettes of other | 30 |
| manufacturers; | 31 |
| (2) to protect funding, which is reduced as a result of | 32 |
| the growth of nonparticipating-manufacturer cigarette |
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SB2552 |
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LRB093 18067 SJM 43754 b |
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| sales, for programs funded in whole or in part by payments | 2 |
| to the State under the Master Settlement Agreement, as | 3 |
| defined in Section 10 of the Tobacco Product Manufacturers' | 4 |
| Escrow Act, and to recoup settlement-payment revenue lost | 5 |
| to the State as a result of nonparticipating-manufacturer | 6 |
| cigarettes sales; | 7 |
| (3) notwithstanding Section 2, to fund enforcement and | 8 |
| administration of the Tobacco Product Manufacturers' | 9 |
| Escrow Act, the Tobacco Product Manufacturers' Escrow | 10 |
| Enforcement Act of 2003, and this assessment, including | 11 |
| reasonable administrative costs incurred by persons | 12 |
| subject to subsection (e) of this Section by reason of the | 13 |
| requirements of that subsection; and | 14 |
| (4) to fund such other purposes as the General Assembly | 15 |
| shall determine.
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| (d) A nonparticipating manufacturer whose cigarettes are | 17 |
| being offered for sale in this State on the effective date of | 18 |
| this amendatory Act of the 93rd General Assembly shall pay the | 19 |
| assessment imposed by this Section within 30 days after the | 20 |
| effective date of this amendatory Act of the 93rd General | 21 |
| Assembly. If cigarettes of a nonparticipating manufacturer are | 22 |
| not being offered for sale in this State on the effective date | 23 |
| of this amendatory Act of the 93rd General Assembly, then the | 24 |
| nonparticipating manufacturer, before its cigarettes may begin | 25 |
| to be offered for sale in this State, shall prepay the fee | 26 |
| imposed by this Section for the number of cigarettes of the | 27 |
| nonparticipating manufacturer that the Department reasonably | 28 |
| projects will be sold in the first calendar month in which | 29 |
| cigarettes of the nonparticipating manufacturer are sold in | 30 |
| this State. The prepayment amount shall be (i) determined by | 31 |
| multiplying 25 mills times the number of cigarettes that the | 32 |
| Department reasonably projects that the nonparticipating | 33 |
| manufacturer will sell in this State in that first calendar | 34 |
| month or (ii) $50,000, whichever is more. The Department may | 35 |
| require a nonparticipating manufacturer to provide any | 36 |
| information reasonably necessary to determine the assessment |
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SB2552 |
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LRB093 18067 SJM 43754 b |
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| payment amount and, in the case of prepayment, shall establish | 2 |
| procedures providing for reimbursement to nonparticipating | 3 |
| manufacturers if actual sales are less than sales as projected | 4 |
| by the Department and for additional payment by | 5 |
| nonparticipating manufacturers if actual sales are greater | 6 |
| than sales as projected by the Department.
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| (e) Each person required to report to the Department under | 8 |
| Section 9 shall State in that report the number and | 9 |
| denominations of stamps or imprints affixed to individual | 10 |
| packages of nonparticipating-manufacturer cigarettes, by | 11 |
| manufacturer and brand family, sold by the person for each | 12 |
| place of business in the previous month. The reporting | 13 |
| requirement imposed by this subsection shall be enforced in the | 14 |
| same manner as the reporting requirements in Section 9.
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| (f) A person shall not affix, or cause to be affixed, to | 16 |
| any package of cigarettes of a nonparticipating manufacturer, | 17 |
| the stamp or imprints required under existing law after | 18 |
| receiving notice from the Department, which the Department | 19 |
| shall provide, that the nonparticipating manufacturer has not | 20 |
| paid in full the equity assessment imposed by this Section. A | 21 |
| person that has affixed the stamp or imprint required under | 22 |
| existing law to any package of cigarettes of a nonparticipating | 23 |
| manufacturer in violation of this subsection shall be subject | 24 |
| to the penalties provided in Section 24.
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| (g) Cigarettes of a nonparticipating manufacturer that has | 26 |
| not paid the equity assessment imposed by this Section shall be | 27 |
| treated as cigarettes of a nonparticipating manufacturer that | 28 |
| has not provided the certification required by Section 15 of | 29 |
| the Tobacco Products Manufacturers' Escrow Enforcement Act of | 30 |
| 2003 and shall be treated as unstamped packages of cigarettes.
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| Section 99. Effective date. This Act takes effect upon | 32 |
| becoming law.
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