Full Text of SB0415 96th General Assembly
SB0415ham001 96TH GENERAL ASSEMBLY
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Rep. John E. Bradley
Filed: 5/29/2009
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| AMENDMENT TO SENATE BILL 415
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| AMENDMENT NO. ______. Amend Senate Bill 415 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. If and only if Senate Bill 44 of the 96th | 5 |
| General Assembly becomes law in the form it passed the Senate, | 6 |
| the Cigarette Tax Act is amended by changing Sections 1 and 2 | 7 |
| as follows:
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| (35 ILCS 130/1) (from Ch. 120, par. 453.1)
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| Sec. 1. For the purposes of this Act:
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| "Cigarette", when used in this Act, shall be construed to | 11 |
| mean: Any
roll for smoking made wholly or in part of tobacco | 12 |
| irrespective of size
or shape and whether or not such tobacco | 13 |
| is flavored, adulterated or
mixed with any other ingredient, | 14 |
| and the wrapper or cover of which is
made of paper or any other | 15 |
| substance or material except whole tobacco leaf . | 16 |
| "Cigarette" when used in this Act, shall also be construed |
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| to mean: any roll for smoking made wholly or in part of tobacco | 2 |
| labeled as anything other than a cigarette or not bearing a | 3 |
| label, if it meets 2 or more of the following criteria: | 4 |
| (a) the product is sold in packs similar to cigarettes; | 5 |
| (b) the product is available for sale in cartons of 10 | 6 |
| packs; | 7 |
| (c) the product is sold in soft packs, hard packs, flip-top | 8 |
| boxes, clam shells, or other cigarette-type boxes; | 9 |
| (d) the product is of a length and diameter found in | 10 |
| commercially-manufactured cigarettes; | 11 |
| (e) the product has a cellulose acetate or other integrated | 12 |
| filter; | 13 |
| (f) the product weighs less than 3 pounds per thousand | 14 |
| sticks; | 15 |
| (g) the product is marketed or advertised to consumers as a | 16 |
| cigarette or cigarette substitute; or | 17 |
| (h) there is other evidence that the product fits within | 18 |
| the definition of cigarette.
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| "Person" means any natural individual, firm, partnership, | 20 |
| association, joint
stock company, joint adventure, public or | 21 |
| private corporation, however formed,
limited liability | 22 |
| company, or a receiver, executor, administrator, trustee,
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| guardian or other representative appointed by order of any | 24 |
| court.
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| "Prior Continuous Compliance Taxpayer" means any person | 26 |
| who is licensed
under this Act and who, having been a licensee |
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| for a continuous period of 5
years, is determined by the | 2 |
| Department not to have been either delinquent
or deficient in | 3 |
| the payment of tax liability during that period or
otherwise in | 4 |
| violation of this Act. Also, any taxpayer who has, as
verified | 5 |
| by the Department, continuously complied with the condition of | 6 |
| his
bond or other security under provisions of this Act for a | 7 |
| period of 5
consecutive years shall be considered to be a | 8 |
| "Prior continuous compliance
taxpayer". In calculating the | 9 |
| consecutive period of time described herein
for qualification | 10 |
| as a "prior continuous compliance taxpayer", a
consecutive | 11 |
| period of time of qualifying compliance immediately prior to
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| the effective date of this amendatory Act of 1987 shall be | 13 |
| credited to any
licensee who became licensed on or before the | 14 |
| effective date of this
amendatory Act of 1987.
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| "Department" means the Department of Revenue.
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| "Sale" means any transfer, exchange or barter in any manner | 17 |
| or by any
means whatsoever for a consideration, and includes | 18 |
| and means all sales
made by any person.
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| "Original Package" means the individual packet, box or | 20 |
| other container
whatsoever used to contain and to convey | 21 |
| cigarettes to the consumer.
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| "Distributor" means any and each of the following:
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| (1) Any person engaged in the business of selling | 24 |
| cigarettes in this
State who brings or causes to be brought | 25 |
| into this State from without
this State any original | 26 |
| packages of cigarettes, on which original
packages there is |
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| no authorized evidence underneath a sealed transparent
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| wrapper showing that the tax liability imposed by this Act | 3 |
| has been paid
or assumed by the out-of-State seller of such | 4 |
| cigarettes, for sale or
other disposition in the course of | 5 |
| such business.
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| (2) Any person who makes, manufactures or fabricates | 7 |
| cigarettes in this
State for sale in this State, except a | 8 |
| person who makes, manufactures
or fabricates cigarettes as | 9 |
| a part of a correctional industries program
for sale to | 10 |
| residents incarcerated in penal institutions or resident | 11 |
| patients
of a State-operated mental health facility.
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| (3) Any person who makes, manufactures or fabricates | 13 |
| cigarettes
outside this State, which cigarettes are placed | 14 |
| in original packages
contained in sealed transparent | 15 |
| wrappers, for delivery or shipment into
this State, and who | 16 |
| elects to qualify and is accepted by the Department
as a | 17 |
| distributor under Section 4b of this Act.
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| "Place of business" shall mean and include any place where | 19 |
| cigarettes
are sold or where cigarettes are manufactured, | 20 |
| stored or kept for the
purpose of sale or consumption, | 21 |
| including any vessel, vehicle, airplane,
train or vending | 22 |
| machine.
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| "Business" means any trade, occupation, activity or | 24 |
| enterprise
engaged in for the purpose of selling cigarettes in | 25 |
| this State.
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| "Retailer" means any person who engages in the making of |
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| transfers of
the ownership of, or title to, cigarettes to a | 2 |
| purchaser for use or
consumption and not for resale in any | 3 |
| form, for a valuable consideration. "Retailer" does not include | 4 |
| a person:
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| (1) who transfers to residents incarcerated in penal | 6 |
| institutions
or resident patients of a State-operated | 7 |
| mental health facility ownership
of cigarettes made, | 8 |
| manufactured, or fabricated as part of a correctional
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| industries program; or | 10 |
| (2) who transfers cigarettes to a not-for-profit | 11 |
| research institution that conducts tests concerning the | 12 |
| health effects of tobacco products and who does not offer | 13 |
| the cigarettes for resale.
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| "Retailer" shall be construed to include any person who | 15 |
| engages in
the making of transfers of the ownership of, or | 16 |
| title to, cigarettes to
a purchaser, for use or consumption by | 17 |
| any other person to whom such
purchaser may transfer the | 18 |
| cigarettes without a valuable consideration,
except a person | 19 |
| who transfers to residents incarcerated in penal institutions
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| or resident patients of a State-operated mental health facility | 21 |
| ownership
of cigarettes made, manufactured or fabricated as | 22 |
| part of a correctional
industries program.
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| (Source: P.A. 95-462, eff. 8-27-07; 09600SB0044eng.)
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| (35 ILCS 130/2) (from Ch. 120, par. 453.2)
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| Sec. 2. Tax imposed; rate; collection, payment, and |
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| distribution;
discount. | 2 |
| (a) A tax is imposed upon any person engaged in business as | 3 |
| a
retailer of cigarettes in this State at the rate of 5 1/2 | 4 |
| mills per
cigarette sold, or otherwise disposed of in the | 5 |
| course of such business in
this State. In addition to any other | 6 |
| tax imposed by this Act, a tax is
imposed upon any person | 7 |
| engaged in business as a retailer of cigarettes in
this State | 8 |
| at a rate of 1/2 mill per cigarette sold or otherwise disposed
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| of in the course of such business in this State on and after | 10 |
| January 1,
1947, and shall be paid into the Metropolitan Fair | 11 |
| and Exposition Authority
Reconstruction Fund or as otherwise | 12 |
| provided in Section 29. On and after December 1, 1985, in | 13 |
| addition to any
other tax imposed by this Act, a tax is imposed | 14 |
| upon any person engaged in
business as a retailer of cigarettes | 15 |
| in this State at a rate of 4 mills per
cigarette sold or | 16 |
| otherwise disposed of in the course of such business in
this | 17 |
| State. Of the additional tax imposed by this amendatory Act of | 18 |
| 1985,
$9,000,000 of the moneys received by the Department of | 19 |
| Revenue pursuant to
this Act shall be paid each month into the | 20 |
| Common School Fund. On and after
the effective date of this | 21 |
| amendatory Act of 1989, in addition to any other tax
imposed by | 22 |
| this Act, a tax is imposed upon any person engaged in business | 23 |
| as a
retailer of cigarettes at the rate of 5 mills per | 24 |
| cigarette sold or
otherwise disposed of in the course of such | 25 |
| business in this State.
On and after the effective date of this | 26 |
| amendatory Act of 1993, in addition
to any other tax imposed by |
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| this Act, a tax is imposed upon any person engaged
in business | 2 |
| as a retailer of cigarettes at the rate of 7 mills per | 3 |
| cigarette
sold or otherwise disposed of in the course of such | 4 |
| business in this State.
On and after December 15, 1997, in | 5 |
| addition
to any other tax imposed by this Act, a tax is imposed | 6 |
| upon any person engaged
in business as a retailer of cigarettes | 7 |
| at the rate of 7 mills per cigarette
sold or otherwise disposed | 8 |
| of in the course of such business of this State.
All of the | 9 |
| moneys received by the Department of Revenue pursuant to this | 10 |
| Act
and the Cigarette Use Tax Act from the additional taxes | 11 |
| imposed by this
amendatory Act of 1997, shall be paid each | 12 |
| month into the Common School Fund.
On and after July 1, 2002, | 13 |
| in addition to any other tax imposed by this Act,
a tax is | 14 |
| imposed upon any person engaged in business as a retailer of
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| cigarettes at the rate of 20.0 mills per cigarette sold or | 16 |
| otherwise disposed
of
in the course of such business in this | 17 |
| State.
Beginning on September 1, 2009, in addition to any other | 18 |
| tax imposed by this Act, a tax is imposed upon any person | 19 |
| engaged in business as a retailer of cigarettes at the rate of | 20 |
| 25 mills per cigarette sold or otherwise disposed of in the | 21 |
| course of such business in this State. Beginning on September | 22 |
| 1, 2010, in addition to any other tax imposed by this Act, a | 23 |
| tax is imposed upon any person engaged in business as a | 24 |
| retailer of cigarettes at the rate of 12.5 25 mills per | 25 |
| cigarette sold or otherwise disposed of in the course of such | 26 |
| business in this State. Beginning on September 1, 2011, in |
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| addition to any other tax imposed by this Act, a tax is imposed | 2 |
| upon any person engaged in business as a retailer of cigarettes | 3 |
| at the rate of 12.5 mills per cigarette sold or otherwise | 4 |
| disposed of in the course of such business in this State. Of | 5 |
| the moneys received by the Department of Revenue under this Act | 6 |
| and the Cigarette Use Tax Act from the additional taxes imposed | 7 |
| by this amendatory Act of the 96th General Assembly: (i) | 8 |
| $54,167 must be paid each month into the Tax Compliance and | 9 |
| Administration Fund for the purpose of cigarette and tobacco | 10 |
| related enforcement, retail inspections, and prevention of | 11 |
| internet and interstate trafficking of contraband cigarettes, | 12 |
| and (ii) the balance must be paid each month into the | 13 |
| Healthcare Provider Relief Fund. The payment of such taxes | 14 |
| shall be evidenced by a stamp affixed to
each original package | 15 |
| of cigarettes, or an authorized substitute for such stamp
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| imprinted on each original package of such cigarettes | 17 |
| underneath the sealed
transparent outside wrapper of such | 18 |
| original package, as hereinafter provided.
However, such taxes | 19 |
| are not imposed upon any activity in such business in
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| interstate commerce or otherwise, which activity may not under
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| the Constitution and statutes of the United States be made the | 22 |
| subject of
taxation by this State.
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| Beginning on the effective date of this amendatory Act of | 24 |
| the 92nd General
Assembly and through June 30, 2006,
all of the | 25 |
| moneys received by the Department of Revenue pursuant to this | 26 |
| Act
and the Cigarette Use Tax Act, other than the moneys that |
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| are dedicated to the Common
School Fund, shall be distributed | 2 |
| each month as follows: first, there shall be
paid into the | 3 |
| General Revenue Fund an amount which, when added to the amount
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| paid into the Common School Fund for that month, equals | 5 |
| $33,300,000, except that in the month of August of 2004, this | 6 |
| amount shall equal $83,300,000; then, from
the moneys | 7 |
| remaining, if any amounts required to be paid into the General
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| Revenue Fund in previous months remain unpaid, those amounts | 9 |
| shall be paid into
the General Revenue Fund;
then, beginning on | 10 |
| April 1, 2003, from the moneys remaining, $5,000,000 per
month | 11 |
| shall be paid into the School Infrastructure Fund; then, if any | 12 |
| amounts
required to be paid into the School Infrastructure Fund | 13 |
| in previous months
remain unpaid, those amounts shall be paid | 14 |
| into the School Infrastructure
Fund;
then the moneys remaining, | 15 |
| if any, shall be paid into the Long-Term Care
Provider Fund.
To | 16 |
| the extent that more than $25,000,000 has been paid into the | 17 |
| General
Revenue Fund and Common School Fund per month for the | 18 |
| period of July 1, 1993
through the effective date of this | 19 |
| amendatory Act of 1994 from combined
receipts
of the Cigarette | 20 |
| Tax Act and the Cigarette Use Tax Act, notwithstanding the
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| distribution provided in this Section, the Department of | 22 |
| Revenue is hereby
directed to adjust the distribution provided | 23 |
| in this Section to increase the
next monthly payments to the | 24 |
| Long Term Care Provider Fund by the amount paid to
the General | 25 |
| Revenue Fund and Common School Fund in excess of $25,000,000 | 26 |
| per
month and to decrease the next monthly payments to the |
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| General Revenue Fund and
Common School Fund by that same excess | 2 |
| amount.
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| Beginning on July 1, 2006, all of the moneys received by | 4 |
| the Department of Revenue pursuant to this Act and the | 5 |
| Cigarette Use Tax Act, other than the moneys that are dedicated | 6 |
| to the Common School Fund and, beginning on the effective date | 7 |
| of this amendatory Act of the 96th General Assembly, other than | 8 |
| the moneys from the additional taxes imposed by this amendatory | 9 |
| Act of the 96th General Assembly that must be paid each month | 10 |
| into the Tax Compliance and Administration Fund and the | 11 |
| Healthcare Provider Relief Fund, shall be distributed each | 12 |
| month as follows: first, there shall be paid into the General | 13 |
| Revenue Fund an amount that, when added to the amount paid into | 14 |
| the Common School Fund for that month, equals $29,200,000; | 15 |
| then, from the moneys remaining, if any amounts required to be | 16 |
| paid into the General Revenue Fund in previous months remain | 17 |
| unpaid, those amounts shall be paid into the General Revenue | 18 |
| Fund; then from the moneys remaining, $5,000,000 per month | 19 |
| shall be paid into the School Infrastructure Fund; then, if any | 20 |
| amounts required to be paid into the School Infrastructure Fund | 21 |
| in previous months remain unpaid, those amounts shall be paid | 22 |
| into the School Infrastructure Fund; then the moneys remaining, | 23 |
| if any, shall be paid into the Long-Term Care Provider Fund.
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| When any tax imposed herein terminates or has terminated, | 25 |
| distributors
who have bought stamps while such tax was in | 26 |
| effect and who therefore paid
such tax, but who can show, to |
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| the Department's satisfaction, that they
sold the cigarettes to | 2 |
| which they affixed such stamps after such tax had
terminated | 3 |
| and did not recover the tax or its equivalent from purchasers,
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| shall be allowed by the Department to take credit for such | 5 |
| absorbed tax
against subsequent tax stamp purchases from the | 6 |
| Department by such
distributor.
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| The impact of the tax levied by this Act is imposed upon | 8 |
| the retailer
and shall be prepaid or pre-collected by the | 9 |
| distributor for the purpose of
convenience and facility only, | 10 |
| and the amount of the tax shall be added to
the price of the | 11 |
| cigarettes sold by such distributor. Collection of the tax
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| shall be evidenced by a stamp or stamps affixed to each | 13 |
| original package of
cigarettes, as hereinafter provided.
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| Each distributor shall collect the tax from the retailer at | 15 |
| or before
the time of the sale, shall affix the stamps as | 16 |
| hereinafter required, and
shall remit the tax collected from | 17 |
| retailers to the Department, as
hereinafter provided. Any | 18 |
| distributor who fails to properly collect and pay
the tax | 19 |
| imposed by this Act shall be liable for the tax. Any | 20 |
| distributor having
cigarettes to which stamps have been affixed | 21 |
| in his possession for sale on the
effective date of this | 22 |
| amendatory Act of 1989 shall not be required to pay the
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| additional tax imposed by this amendatory Act of 1989 on such | 24 |
| stamped
cigarettes. Any distributor having cigarettes to which | 25 |
| stamps have been affixed
in his or her possession for sale at | 26 |
| 12:01 a.m. on the effective date of this
amendatory Act of |
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| 1993, is required to pay the additional tax imposed by this
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| amendatory Act of 1993 on such stamped cigarettes. This | 3 |
| payment, less the
discount provided in subsection (b), shall be | 4 |
| due when the distributor first
makes a purchase of cigarette | 5 |
| tax stamps after the effective date of this
amendatory Act of | 6 |
| 1993, or on the first due date of a return under this Act
after | 7 |
| the effective date of this amendatory Act of 1993, whichever | 8 |
| occurs
first. Any distributor having cigarettes to which stamps | 9 |
| have been affixed
in his possession for sale on December 15, | 10 |
| 1997
shall not be required to pay the additional tax imposed by | 11 |
| this amendatory Act
of 1997 on such stamped cigarettes.
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| Any distributor having cigarettes to which stamps have been | 13 |
| affixed in his
or her
possession for sale on July 1, 2002 shall | 14 |
| not be required to pay the additional
tax imposed by this | 15 |
| amendatory Act of the 92nd General Assembly on those
stamped
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| cigarettes. Any retailer having cigarettes in his or her | 17 |
| possession on September 1, 2009 to which tax stamps have been | 18 |
| affixed is not required to pay the additional tax that begins | 19 |
| of September 1, 2009 imposed by an amendatory Act of the 96th | 20 |
| General Assembly on those stamped cigarettes. Any distributor | 21 |
| having cigarettes in his or her possession on September 1, 2009 | 22 |
| to which tax stamps have been affixed is required to pay the | 23 |
| additional tax that begins on September 1, 2009 imposed by an | 24 |
| amendatory Act of the 96th General Assembly to the extent the | 25 |
| calendar year 2009 average monthly volume of cigarette stamps | 26 |
| in the distributor's possession exceeds the average monthly |
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| volume of cigarette stamps purchased by the distributor in | 2 |
| calendar year 2008. This payment, less the discount provided in | 3 |
| subsection (b), is due when the distributor first makes a | 4 |
| purchase of cigarette stamps on or after September 1, 2009 or | 5 |
| on the first due date of a return under this Act occurring on | 6 |
| or after September 1, 2009, whichever occurs first. | 7 |
| Any retailer having cigarettes in his or her possession on | 8 |
| September 1, 2010 to which tax stamps have been affixed is not | 9 |
| required to pay the additional tax that begins on September 1, | 10 |
| 2010 imposed by an amendatory Act of the 96th General Assembly | 11 |
| on those stamped cigarettes. Any distributor having cigarettes | 12 |
| in his or her possession on September 1, 2010 to which tax | 13 |
| stamps have been affixed is required to pay the additional tax | 14 |
| that begins on September 1, 2010 imposed by an amendatory Act | 15 |
| of the 96th General Assembly to the extent the calendar year | 16 |
| 2010 average monthly volume of cigarette stamps in the | 17 |
| distributor's possession exceeds the average monthly volume of | 18 |
| cigarette stamps purchased by the distributor in calendar year | 19 |
| 2009. This payment, less the discount provided in subsection | 20 |
| (b), is due when the distributor first makes a purchase of | 21 |
| cigarette stamps on or after September 1, 2010 or on the first | 22 |
| due date of a return under this Act occurring on or after | 23 |
| September 1, 2010, whichever occurs first. | 24 |
| Any retailer having cigarettes in his or her possession on | 25 |
| September 1, 2011 to which tax stamps have been affixed is not | 26 |
| required to pay the additional tax that begins of September 1, |
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| 2011 imposed by an amendatory Act of the 96th General Assembly | 2 |
| on those stamped cigarettes. Any distributor having cigarettes | 3 |
| in his or her possession on September 1, 2011 to which tax | 4 |
| stamps have been affixed is required to pay the additional tax | 5 |
| that begins on September 1, 2011 imposed by an amendatory Act | 6 |
| of the 96th General Assembly to the extent the calendar year | 7 |
| 2011 average monthly volume of cigarette stamps in the | 8 |
| distributor's possession exceeds the average monthly volume of | 9 |
| cigarette stamps purchased by the distributor in calendar year | 10 |
| 2010. This payment, less the discount provided in subsection | 11 |
| (b), is due when the distributor first makes a purchase of | 12 |
| cigarette stamps on or after September 1, 2011 or on the first | 13 |
| due date of a return under this Act occurring on or after | 14 |
| September 1, 2011, whichever occurs first. Any distributor | 15 |
| having cigarettes to which stamps have been affixed in his
or | 16 |
| her
possession for sale on or after September 1, 2009 is | 17 |
| required to pay the additional tax imposed by this amendatory | 18 |
| Act of the 96th General Assembly on those stamped cigarettes. | 19 |
| This payment, less the discount provided in subsection (b), is | 20 |
| due when the distributor first makes a purchase of cigarette | 21 |
| tax stamps on or after September 1, 2009 or on the first due | 22 |
| date of a return
under this Act occurring on or after September | 23 |
| 1, 2009, whichever occurs first. Any distributor having | 24 |
| cigarettes to which stamps have been affixed in his
or her
| 25 |
| possession for sale on or after September 1, 2010 is required | 26 |
| to pay the additional tax imposed by this amendatory Act of the |
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| 96th General Assembly on those stamped cigarettes. This | 2 |
| payment, less the discount provided in subsection (b), is due | 3 |
| when the distributor first makes a purchase of cigarette tax | 4 |
| stamps on or after September 1, 2010 or on the first due date | 5 |
| of a return
under this Act occurring on or after September 1, | 6 |
| 2010, whichever occurs first.
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| The amount of the Cigarette Tax imposed by this Act shall | 8 |
| be separately
stated, apart from the price of the goods, by | 9 |
| both distributors and
retailers, in all advertisements, bills | 10 |
| and sales invoices.
| 11 |
| (b) The distributor shall be required to collect the taxes | 12 |
| provided
under paragraph (a) hereof, and, to cover the costs of | 13 |
| such collection,
shall be allowed a discount during any year | 14 |
| commencing July 1st and ending
the following June 30th in | 15 |
| accordance with the schedule set out
hereinbelow, which | 16 |
| discount shall be allowed at the time of purchase of the
stamps | 17 |
| when purchase is required by this Act, or at the time when the | 18 |
| tax
is remitted to the Department without the purchase of | 19 |
| stamps from the
Department when that method of paying the tax | 20 |
| is required or authorized by
this Act. Prior to December 1, | 21 |
| 1985, a discount equal to 1 2/3% of
the amount of the tax up to | 22 |
| and including the first $700,000 paid hereunder by
such | 23 |
| distributor to the Department during any such year; 1 1/3% of | 24 |
| the next
$700,000 of tax or any part thereof, paid hereunder by | 25 |
| such distributor to the
Department during any such year; 1% of | 26 |
| the next $700,000 of tax, or any part
thereof, paid hereunder |
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| by such distributor to the Department during any such
year, and | 2 |
| 2/3 of 1% of the amount of any additional tax paid hereunder by | 3 |
| such
distributor to the Department during any such year shall | 4 |
| apply. On and after
December 1, 1985, a discount equal to 1.75% | 5 |
| of the amount of the tax payable
under this Act up to and | 6 |
| including the first $3,000,000 paid hereunder by such
| 7 |
| distributor to the Department during any such year and 1.5% of | 8 |
| the amount of
any additional tax paid hereunder by such | 9 |
| distributor to the Department during
any such year shall apply.
| 10 |
| Two or more distributors that use a common means of | 11 |
| affixing revenue tax
stamps or that are owned or controlled by | 12 |
| the same interests shall be
treated as a single distributor for | 13 |
| the purpose of computing the discount.
| 14 |
| (c) The taxes herein imposed are in addition to all other | 15 |
| occupation or
privilege taxes imposed by the State of Illinois, | 16 |
| or by any political
subdivision thereof, or by any municipal | 17 |
| corporation.
| 18 |
| (Source: P.A. 93-839, eff. 7-30-04; 94-91, eff. 7-1-05; 94-839, | 19 |
| eff. 6-6-06; 09600SB0044eng.)
| 20 |
| Section 10. If and only if Senate Bill 44 of the 96th | 21 |
| General Assembly becomes law in the form it passed the Senate, | 22 |
| the Cigarette Use Tax Act is amended by changing Sections 1, 2, | 23 |
| and 12 as follows:
| 24 |
| (35 ILCS 135/1) (from Ch. 120, par. 453.31)
|
|
|
|
09600SB0415ham001 |
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LRB096 06450 HLH 27665 a |
|
| 1 |
| Sec. 1. For the purpose of this Act, unless otherwise | 2 |
| required by the
context:
| 3 |
| "Use" means the exercise by any person of any right or | 4 |
| power over
cigarettes incident to the ownership or possession | 5 |
| thereof, other than the
making of a sale thereof in the course | 6 |
| of engaging in a business of selling
cigarettes and shall | 7 |
| include the keeping or retention of cigarettes for use. For the | 8 |
| purpose of this Act, "use" does not include the use of | 9 |
| cigarettes by a not-for-profit research institution for the | 10 |
| purpose of conducting tests concerning the health effects of | 11 |
| tobacco products, provided the cigarettes are not offered for | 12 |
| resale.
| 13 |
| "Cigarette" means any roll for smoking made wholly or in | 14 |
| part of tobacco
irrespective of size or shape and whether or | 15 |
| not such tobacco is flavored,
adulterated or mixed with any | 16 |
| other ingredient, and the wrapper or cover of
which is made of | 17 |
| paper or any other substance or material except whole tobacco | 18 |
| leaf . | 19 |
| "Cigarette" when used in this Act, shall also be construed | 20 |
| to mean: any roll for smoking made wholly or in part of tobacco | 21 |
| labeled as anything other than a cigarette or not bearing a | 22 |
| label, if it meets 2 or more of the following criteria: | 23 |
| (a) the product is sold in packs similar to cigarettes; | 24 |
| (b) the product is available for sale in cartons of 10 | 25 |
| packs; | 26 |
| (c) the product is sold in soft packs, hard packs, flip-top |
|
|
|
09600SB0415ham001 |
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LRB096 06450 HLH 27665 a |
|
| 1 |
| boxes, clam shells, or other cigarette-type boxes; | 2 |
| (d) the product is of a length and diameter found in | 3 |
| commercially-manufactured cigarettes; | 4 |
| (e) the product has a cellulose acetate or other integrated | 5 |
| filter; | 6 |
| (f) the product weighs less than 3 pounds per thousand | 7 |
| sticks; | 8 |
| (g) the product is marketed or advertised to consumers as a | 9 |
| cigarette or cigarette substitute; or | 10 |
| (h) there is other evidence that the product fits within | 11 |
| the definition of cigarette.
| 12 |
| "Person" means any natural individual, firm, partnership, | 13 |
| association,
joint stock company, joint adventure, public or | 14 |
| private corporation,
however formed, limited liability | 15 |
| company, or a receiver, executor,
administrator, trustee, | 16 |
| guardian or other representative appointed by order of
any | 17 |
| court.
| 18 |
| "Department" means the Department of Revenue.
| 19 |
| "Sale" means any transfer, exchange or barter in any manner | 20 |
| or by any
means whatsoever for a consideration, and includes | 21 |
| and means all sales made
by any person.
| 22 |
| "Original Package" means the individual packet, box or | 23 |
| other container
whatsoever used to contain and to convey | 24 |
| cigarettes to the consumer.
| 25 |
| "Distributor" means any and each of the following:
| 26 |
| a. Any person engaged in the business of selling |
|
|
|
09600SB0415ham001 |
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LRB096 06450 HLH 27665 a |
|
| 1 |
| cigarettes in this
State who brings or causes to be brought | 2 |
| into this State from without this
State any original | 3 |
| packages of cigarettes, on which original packages there
is | 4 |
| no authorized evidence underneath a sealed transparent | 5 |
| wrapper showing
that the tax liability imposed by this Act | 6 |
| has been paid or assumed by the
out-of-State seller of such | 7 |
| cigarettes, for sale in the course of such
business.
| 8 |
| b. Any person who makes, manufactures or fabricates | 9 |
| cigarettes in this
State for sale, except a person who | 10 |
| makes, manufactures or fabricates
cigarettes for sale to | 11 |
| residents incarcerated in penal institutions or resident
| 12 |
| patients or a State-operated mental health facility.
| 13 |
| c. Any person who makes, manufactures or fabricates | 14 |
| cigarettes outside
this State, which cigarettes are placed | 15 |
| in original packages contained in
sealed transparent | 16 |
| wrappers, for delivery or shipment into this State, and
who | 17 |
| elects to qualify and is accepted by the Department as a | 18 |
| distributor
under Section 7 of this Act.
| 19 |
| "Distributor" does not include any person who transfers | 20 |
| cigarettes to a not-for-profit
research institution that | 21 |
| conducts tests concerning the
health effects of tobacco | 22 |
| products and who does not offer
the cigarettes for resale.
| 23 |
| "Distributor maintaining a place of business in this | 24 |
| State", or any like
term, means any distributor having or | 25 |
| maintaining within this State,
directly or by a subsidiary, an | 26 |
| office, distribution house, sales house,
warehouse or other |
|
|
|
09600SB0415ham001 |
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LRB096 06450 HLH 27665 a |
|
| 1 |
| place of business, or any agent operating within this
State | 2 |
| under the authority of the distributor or its subsidiary,
| 3 |
| irrespective of whether such place of business or agent is | 4 |
| located here
permanently or temporarily, or whether such | 5 |
| distributor or subsidiary is
licensed to transact business | 6 |
| within this State.
| 7 |
| "Business" means any trade, occupation, activity or | 8 |
| enterprise engaged
in or conducted in this State for the | 9 |
| purpose of selling cigarettes.
| 10 |
| "Prior Continuous Compliance Taxpayer" means any person | 11 |
| who is licensed
under this Act and who, having been a licensee | 12 |
| for a continuous period of 5
years, is determined by the | 13 |
| Department not to have been either delinquent
or deficient in | 14 |
| the payment of tax liability during that period or
otherwise in | 15 |
| violation of this Act. Also, any taxpayer who has, as
verified | 16 |
| by the Department, continuously complied with the
condition of | 17 |
| his bond or other security under provisions of this Act of a
| 18 |
| period of 5 consecutive years shall be considered to be a | 19 |
| "prior
continuous compliance taxpayer". In calculating the | 20 |
| consecutive period of
time described herein for qualification | 21 |
| as a "prior continuous compliance
taxpayer", a consecutive | 22 |
| period of time of qualifying compliance
immediately prior to | 23 |
| the effective date of this amendatory Act of 1987 shall be
| 24 |
| credited to any licensee who became licensed on or before the | 25 |
| effective date
of this amendatory Act of 1987.
| 26 |
| (Source: P.A. 95-462, eff. 8-27-07; 09600SB0044eng.)
|
|
|
|
09600SB0415ham001 |
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LRB096 06450 HLH 27665 a |
|
| 1 |
| (35 ILCS 135/2) (from Ch. 120, par. 453.32)
| 2 |
| Sec. 2. A tax is imposed upon the privilege of using | 3 |
| cigarettes in this
State, at the rate of 6 mills per cigarette | 4 |
| so used. On and after
December 1, 1985, in addition to any | 5 |
| other tax imposed by this Act, a tax
is imposed upon the | 6 |
| privilege of using cigarettes in this State at a rate
of 4 | 7 |
| mills per cigarette so used. On and after the effective date of | 8 |
| this
amendatory Act of 1989, in addition to any other tax | 9 |
| imposed by this Act, a
tax is imposed upon the privilege of | 10 |
| using cigarettes in this State at the
rate of 5 mills per | 11 |
| cigarette so used. On and after the effective date of this
| 12 |
| amendatory Act of 1993, in addition to any other tax imposed by | 13 |
| this Act, a tax
is imposed upon the privilege of using | 14 |
| cigarettes in this State at a rate of 7
mills per cigarette so | 15 |
| used. On and after December 15,
1997, in addition to any other | 16 |
| tax imposed by this Act, a tax
is imposed upon the privilege of | 17 |
| using cigarettes in this State at a rate of
7 mills per | 18 |
| cigarette so used.
On and after July 1, 2002, in addition to | 19 |
| any other tax imposed by
this Act, a tax is imposed
upon the | 20 |
| privilege of using cigarettes in this State at a rate of 20.0 | 21 |
| mills
per cigarette so used. Beginning on September 1, 2009, in | 22 |
| addition to any other tax imposed by this Act, a tax is imposed | 23 |
| upon the privilege of using cigarettes in this State at a rate | 24 |
| of 25 mills per cigarette so used. Beginning on September 1, | 25 |
| 2010, in addition to any other tax imposed by this Act, a tax |
|
|
|
09600SB0415ham001 |
- 22 - |
LRB096 06450 HLH 27665 a |
|
| 1 |
| is imposed upon the privilege of using any person engaged in | 2 |
| business as a retailer of cigarettes in this State at the rate | 3 |
| of 12.5 25 mills per cigarette so used sold or otherwise | 4 |
| disposed of in the course of such business in this State .
| 5 |
| Beginning on September 1, 2011, in addition to any other tax | 6 |
| imposed by this Act, a tax is imposed upon the privilege of | 7 |
| using cigarettes in this State at the rate of 12.5 mills per | 8 |
| cigarette so used. The taxes herein imposed shall be in
| 9 |
| addition to
all other occupation or privilege taxes imposed by | 10 |
| the State of Illinois or by
any political subdivision thereof | 11 |
| or by any municipal corporation.
| 12 |
| When any tax imposed herein terminates or has terminated, | 13 |
| distributors
who have bought stamps while such tax was in | 14 |
| effect and who therefore paid
such tax, but who can show, to | 15 |
| the Department's satisfaction, that they
sold the cigarettes to | 16 |
| which they affixed such stamps after such tax had
terminated | 17 |
| and did not recover the tax or its equivalent from purchasers,
| 18 |
| shall be allowed by the Department to take credit for such | 19 |
| absorbed tax
against subsequent tax stamp purchases from the | 20 |
| Department by such
distributors.
| 21 |
| When the word "tax" is used in this Act, it shall include | 22 |
| any tax or tax
rate imposed by this Act and shall mean the | 23 |
| singular of "tax" or the plural
"taxes" as the context may | 24 |
| require.
| 25 |
| Any distributor having cigarettes to which stamps have been | 26 |
| affixed in
his possession for sale on the effective date of |
|
|
|
09600SB0415ham001 |
- 23 - |
LRB096 06450 HLH 27665 a |
|
| 1 |
| this amendatory Act of
1989 shall not be required to pay the | 2 |
| additional tax imposed by this
amendatory Act of 1989 on such | 3 |
| stamped cigarettes. Any distributor having
cigarettes to which | 4 |
| stamps have been affixed in his or her possession for sale
at | 5 |
| 12:01 a.m. on the effective date of this amendatory Act of | 6 |
| 1993, is required
to pay the additional tax imposed by this | 7 |
| amendatory Act of 1993 on such
stamped cigarettes. This payment | 8 |
| shall be due when the distributor first makes
a purchase of | 9 |
| cigarette tax stamps after the effective date of this | 10 |
| amendatory
Act of 1993, or on the first due date of a return | 11 |
| under this Act after the
effective date of this amendatory Act | 12 |
| of 1993, whichever occurs first. Once a
distributor tenders | 13 |
| payment of the additional tax to the Department, the
| 14 |
| distributor may purchase stamps from the Department.
Any | 15 |
| distributor having cigarettes to which stamps have been affixed
| 16 |
| in his possession for sale on December 15, 1997
shall not be | 17 |
| required to pay the additional tax imposed by this amendatory | 18 |
| Act
of 1997 on such stamped cigarettes.
| 19 |
| Any distributor having cigarettes to which stamps have been | 20 |
| affixed in his
or her possession for sale on July 1, 2002 shall | 21 |
| not be required to pay the
additional
tax imposed by this | 22 |
| amendatory Act of the 92nd General Assembly on those
stamped
| 23 |
| cigarettes. Any retailer having cigarettes in his or her | 24 |
| possession on September 1, 2009 to which tax stamps have been | 25 |
| affixed is not required to pay the additional tax that begins | 26 |
| of September 1, 2009 imposed by an amendatory Act of the 96th |
|
|
|
09600SB0415ham001 |
- 24 - |
LRB096 06450 HLH 27665 a |
|
| 1 |
| General Assembly on those stamped cigarettes. Any distributor | 2 |
| having cigarettes in his or her possession on September 1, 2009 | 3 |
| to which tax stamps have been affixed is required to pay the | 4 |
| additional tax that begins on September 1, 2009 imposed by an | 5 |
| amendatory Act of the 96th General Assembly to the extent the | 6 |
| calendar year 2009 average monthly volume of cigarette stamps | 7 |
| in the distributor's possession exceeds the average monthly | 8 |
| volume of cigarette stamps purchased by the distributor in | 9 |
| calendar year 2008. This payment, less the discount provided in | 10 |
| Section 3, is due when the distributor first makes a purchase | 11 |
| of cigarette stamps on or after September 1, 2009 or on the | 12 |
| first due date of a return under this Act occurring on or after | 13 |
| September 1, 2009, whichever occurs first. | 14 |
| Any retailer having cigarettes in his or her possession on | 15 |
| September 1, 2010 to which tax stamps have been affixed is not | 16 |
| required to pay the additional tax that begins on September 1, | 17 |
| 2010 imposed by an amendatory Act of the 96th General Assembly | 18 |
| on those stamped cigarettes. Any distributor having cigarettes | 19 |
| in his or her possession on September 1, 2010 to which tax | 20 |
| stamps have been affixed is required to pay the additional tax | 21 |
| that begins on September 1, 2010 imposed by an amendatory Act | 22 |
| of the 96th General Assembly to the extent the calendar year | 23 |
| 2010 average monthly volume of cigarette stamps in the | 24 |
| distributor's possession exceeds the average monthly volume of | 25 |
| cigarette stamps purchased by the distributor in calendar year | 26 |
| 2009. This payment, less the discount provided in Section 3, is |
|
|
|
09600SB0415ham001 |
- 25 - |
LRB096 06450 HLH 27665 a |
|
| 1 |
| due when the distributor first makes a purchase of cigarette | 2 |
| stamps on or after September 1, 2010 or on the first due date | 3 |
| of a return under this Act occurring on or after September 1, | 4 |
| 2010, whichever occurs first. | 5 |
| Any retailer having cigarettes in his or her possession on | 6 |
| September 1, 2011 to which tax stamps have been affixed is not | 7 |
| required to pay the additional tax that begins of September 1, | 8 |
| 2011 imposed by an amendatory Act of the 96th General Assembly | 9 |
| on those stamped cigarettes. Any distributor having cigarettes | 10 |
| in his or her possession on September 1, 2011 to which tax | 11 |
| stamps have been affixed is required to pay the additional tax | 12 |
| that begins on September 1, 2011 imposed by an amendatory Act | 13 |
| of the 96th General Assembly to the extent the calendar year | 14 |
| 2011 average monthly volume of cigarette stamps in the | 15 |
| distributor's possession exceeds the average monthly volume of | 16 |
| cigarette stamps purchased by the distributor in calendar year | 17 |
| 2010. This payment, less the discount provided in Section 3, is | 18 |
| due when the distributor first makes a purchase of cigarette | 19 |
| stamps on or after September 1, 2011 or on the first due date | 20 |
| of a return under this Act occurring on or after September 1, | 21 |
| 2011, whichever occurs first. Any distributor having | 22 |
| cigarettes to which stamps have been affixed in his
or her
| 23 |
| possession for sale on or after September 1, 2009 is required | 24 |
| to pay the additional tax imposed by this amendatory Act of the | 25 |
| 96th General Assembly on those stamped cigarettes. This | 26 |
| payment, less the discount provided in Section 3 of this Act, |
|
|
|
09600SB0415ham001 |
- 26 - |
LRB096 06450 HLH 27665 a |
|
| 1 |
| is due when the distributor first makes a purchase of cigarette | 2 |
| tax stamps on or after
September 1, 2009 or on the first due | 3 |
| date of a return under this Act occurring on or after September | 4 |
| 1, 2009, whichever occurs first. Any distributor having | 5 |
| cigarettes to which stamps have been affixed in his
or her
| 6 |
| possession for sale on or after September 1, 2010 is required | 7 |
| to pay the additional tax imposed by this amendatory Act of the | 8 |
| 96th General Assembly on those stamped cigarettes. This | 9 |
| payment, less the discount provided in subsection (b), is due | 10 |
| when the distributor first makes a purchase of cigarette tax | 11 |
| stamps on or after September 1, 2010 or on the first due date | 12 |
| of a return
under this Act occurring on or after September 1, | 13 |
| 2010, whichever occurs first.
| 14 |
| (Source: P.A. 92-536, eff. 6-6-02; 09600SB0044eng.)
| 15 |
| (35 ILCS 135/12) (from Ch. 120, par. 453.42)
| 16 |
| Sec. 12. Declaration of possession of cigarettes on which | 17 |
| tax not paid.
| 18 |
| (a) When cigarettes are acquired for use in this State by a | 19 |
| person
(including a distributor as well as any other person), | 20 |
| who did not pay the
tax herein imposed to a distributor, the | 21 |
| person, within 30 days after
acquiring the cigarettes, shall | 22 |
| file with the Department a return
declaring the possession of | 23 |
| the cigarettes and shall transmit with
the
return to the | 24 |
| Department the tax imposed by this Act.
| 25 |
| (b) On receipt of the return and payment of the tax as |
|
|
|
09600SB0415ham001 |
- 27 - |
LRB096 06450 HLH 27665 a |
|
| 1 |
| required by
paragraph (a), the Department may furnish the | 2 |
| person with a suitable tax stamp
to be
affixed to the package | 3 |
| of cigarettes upon which the tax has been paid
if the | 4 |
| Department determines that the cigarettes still exist.
| 5 |
| (c) The return referred to in paragraph
(a) shall
contain | 6 |
| the name and address of the person possessing the cigarettes
| 7 |
| involved, the location of the cigarettes and the quantity, | 8 |
| brand
name,
place, and date of the acquisition of the | 9 |
| cigarettes.
| 10 |
| (d) The provisions of this Section subsection are not | 11 |
| subject to the Uniform Penalty and
Interest
Act. | 12 |
| (Source: P.A. 92-322, eff. 1-1-02; 09600SB0044eng.)
| 13 |
| Section 99. Effective date. This Act takes effect upon | 14 |
| becoming law.".
|
|