Full Text of SB0021 97th General Assembly
SB0021sam001 97TH GENERAL ASSEMBLY | Sen. John J. Cullerton Filed: 3/16/2011
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| 1 | | AMENDMENT TO SENATE BILL 21
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 21 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Cigarette Tax Act is amended by changing | 5 | | Sections 2 and 3 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 as | 10 | | a
retailer of cigarettes in this State at the rate of 5 1/2 | 11 | | mills per
cigarette sold, or otherwise disposed of in the | 12 | | course of such business in
this State. In addition to any other | 13 | | tax imposed by this Act, a tax is
imposed upon any person | 14 | | engaged in business as a retailer of cigarettes in
this State | 15 | | at a rate of 1/2 mill per cigarette sold or otherwise disposed
| 16 | | of in the course of such business in this State on and after |
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| 1 | | January 1,
1947, and shall be paid into the Metropolitan Fair | 2 | | and Exposition Authority
Reconstruction Fund or as otherwise | 3 | | provided in Section 29. On and after December 1, 1985, in | 4 | | addition to any
other tax imposed by this Act, a tax is imposed | 5 | | upon any person engaged in
business as a retailer of cigarettes | 6 | | in this State at a rate of 4 mills per
cigarette sold or | 7 | | otherwise disposed of in the course of such business in
this | 8 | | State. Of the additional tax imposed by this amendatory Act of | 9 | | 1985,
$9,000,000 of the moneys received by the Department of | 10 | | Revenue pursuant to
this Act shall be paid each month into the | 11 | | Common School Fund. On and after
the effective date of this | 12 | | amendatory Act of 1989, in addition to any other tax
imposed by | 13 | | this Act, a tax is imposed upon any person engaged in business | 14 | | as a
retailer of cigarettes at the rate of 5 mills per | 15 | | cigarette sold or
otherwise disposed of in the course of such | 16 | | business in this State.
On and after the effective date of this | 17 | | amendatory Act of 1993, in addition
to any other tax imposed by | 18 | | this Act, a tax is imposed upon any person engaged
in business | 19 | | as a retailer of cigarettes at the rate of 7 mills per | 20 | | cigarette
sold or otherwise disposed of in the course of such | 21 | | business in this State.
On and after December 15, 1997, in | 22 | | addition
to any other tax imposed by this Act, a tax is imposed | 23 | | upon any person engaged
in business as a retailer of cigarettes | 24 | | at the rate of 7 mills per cigarette
sold or otherwise disposed | 25 | | of in the course of such business of this State.
All of the | 26 | | moneys received by the Department of Revenue pursuant to this |
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| 1 | | Act
and the Cigarette Use Tax Act from the additional taxes | 2 | | imposed by this
amendatory Act of 1997, shall be paid each | 3 | | month into the Common School Fund.
On and after July 1, 2002, | 4 | | in addition to any other tax imposed by this Act,
a tax is | 5 | | imposed upon any person engaged in business as a retailer of
| 6 | | cigarettes at the rate of 20.0 mills per cigarette sold or | 7 | | otherwise disposed
of
in the course of such business in this | 8 | | State.
Beginning on July 1, 2011, in addition to any other tax | 9 | | imposed by this Act, a tax is imposed upon any person engaged | 10 | | in business as a retailer of cigarettes at the rate of 25 mills | 11 | | per cigarette sold or otherwise disposed of in the course of | 12 | | such business in this State. Beginning on July 1, 2012, 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 | | at the rate of 25 mills per cigarette sold or otherwise | 16 | | disposed of in the course of such business in this State. Of | 17 | | the moneys received by the Department of Revenue under this Act | 18 | | and the Cigarette Use Tax Act from the additional taxes imposed | 19 | | by this amendatory Act of the 97th General Assembly the balance | 20 | | shall be paid each month into the Capital Projects Fund, a | 21 | | special fund in the State treasury. The payment of such taxes | 22 | | shall be evidenced by a stamp affixed to
each original package | 23 | | of cigarettes, or an authorized substitute for such stamp
| 24 | | imprinted on each original package of such cigarettes | 25 | | underneath the sealed
transparent outside wrapper of such | 26 | | original package, as hereinafter provided.
However, such taxes |
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| 1 | | are not imposed upon any activity in such business in
| 2 | | interstate commerce or otherwise, which activity may not under
| 3 | | the Constitution and statutes of the United States be made the | 4 | | subject of
taxation by this State.
| 5 | | Beginning on the effective date of this amendatory Act of | 6 | | the 92nd General
Assembly and through June 30, 2006,
all of the | 7 | | moneys received by the Department of Revenue pursuant to this | 8 | | Act
and the Cigarette Use Tax Act, other than the moneys that | 9 | | are dedicated to the Common
School Fund, shall be distributed | 10 | | each month as follows: first, there shall be
paid into the | 11 | | General Revenue Fund an amount which, when added to the amount
| 12 | | paid into the Common School Fund for that month, equals | 13 | | $33,300,000, except that in the month of August of 2004, this | 14 | | amount shall equal $83,300,000; then, from
the moneys | 15 | | remaining, if any amounts required to be paid into the General
| 16 | | Revenue Fund in previous months remain unpaid, those amounts | 17 | | shall be paid into
the General Revenue Fund;
then, beginning on | 18 | | April 1, 2003, 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.
To | 24 | | the extent that more than $25,000,000 has been paid into the | 25 | | General
Revenue Fund and Common School Fund per month for the | 26 | | period of July 1, 1993
through the effective date of this |
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| 1 | | amendatory Act of 1994 from combined
receipts
of the Cigarette | 2 | | Tax Act and the Cigarette Use Tax Act, notwithstanding the
| 3 | | distribution provided in this Section, the Department of | 4 | | Revenue is hereby
directed to adjust the distribution provided | 5 | | in this Section to increase the
next monthly payments to the | 6 | | Long Term Care Provider Fund by the amount paid to
the General | 7 | | Revenue Fund and Common School Fund in excess of $25,000,000 | 8 | | per
month and to decrease the next monthly payments to the | 9 | | General Revenue Fund and
Common School Fund by that same excess | 10 | | amount.
| 11 | | Beginning on July 1, 2006, all of the moneys received by | 12 | | the Department of Revenue pursuant to this Act and the | 13 | | Cigarette Use Tax Act, other than the moneys that are dedicated | 14 | | to the Common School Fund and, beginning on the effective date | 15 | | of this amendatory Act of the 97th General Assembly, other than | 16 | | the moneys from the additional taxes imposed by this amendatory | 17 | | Act of the 97th General Assembly that must be paid each month | 18 | | into the Capital Projects Fund , shall be distributed each month | 19 | | as follows: first, there shall be paid into the General Revenue | 20 | | Fund an amount that, when added to the amount paid into the | 21 | | Common School Fund for that month, equals $29,200,000; then, | 22 | | from the moneys remaining, if any amounts required to be paid | 23 | | into the General Revenue Fund in previous months remain unpaid, | 24 | | those amounts shall be paid into the General Revenue Fund; then | 25 | | from the moneys remaining, $5,000,000 per month shall be paid | 26 | | into the School Infrastructure Fund; then, if any amounts |
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| 1 | | required to be paid into the School Infrastructure Fund in | 2 | | previous months remain unpaid, those amounts shall be paid into | 3 | | the School Infrastructure Fund; then the moneys remaining, if | 4 | | any, shall be paid into the Long-Term Care Provider Fund.
| 5 | | When any tax imposed herein terminates or has terminated, | 6 | | distributors
who have bought stamps while such tax was in | 7 | | effect and who therefore paid
such tax, but who can show, to | 8 | | the Department's satisfaction, that they
sold the cigarettes to | 9 | | which they affixed such stamps after such tax had
terminated | 10 | | and did not recover the tax or its equivalent from purchasers,
| 11 | | shall be allowed by the Department to take credit for such | 12 | | absorbed tax
against subsequent tax stamp purchases from the | 13 | | Department by such
distributor.
| 14 | | The impact of the tax levied by this Act is imposed upon | 15 | | the retailer
and shall be prepaid or pre-collected by the | 16 | | distributor for the purpose of
convenience and facility only, | 17 | | and the amount of the tax shall be added to
the price of the | 18 | | cigarettes sold by such distributor. Collection of the tax
| 19 | | shall be evidenced by a stamp or stamps affixed to each | 20 | | original package of
cigarettes, as hereinafter provided.
| 21 | | Each distributor shall collect the tax from the retailer at | 22 | | or before
the time of the sale, shall affix the stamps as | 23 | | hereinafter required, and
shall remit the tax collected from | 24 | | retailers to the Department, as
hereinafter provided. Any | 25 | | distributor who fails to properly collect and pay
the tax | 26 | | imposed by this Act shall be liable for the tax. Any |
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| 1 | | distributor having
cigarettes to which stamps have been affixed | 2 | | in his possession for sale on the
effective date of this | 3 | | amendatory Act of 1989 shall not be required to pay the
| 4 | | additional tax imposed by this amendatory Act of 1989 on such | 5 | | stamped
cigarettes. Any distributor having cigarettes to which | 6 | | stamps have been affixed
in his or her possession for sale at | 7 | | 12:01 a.m. on the effective date of this
amendatory Act of | 8 | | 1993, is required to pay the additional tax imposed by this
| 9 | | amendatory Act of 1993 on such stamped cigarettes. This | 10 | | payment, less the
discount provided in subsection (b), shall be | 11 | | due when the distributor first
makes a purchase of cigarette | 12 | | tax stamps after the effective date of this
amendatory Act of | 13 | | 1993, or on the first due date of a return under this Act
after | 14 | | the effective date of this amendatory Act of 1993, whichever | 15 | | occurs
first. Any distributor having cigarettes to which stamps | 16 | | have been affixed
in his possession for sale on December 15, | 17 | | 1997
shall not be required to pay the additional tax imposed by | 18 | | this amendatory 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 July 1, 2011 to which tax stamps have been | 25 | | affixed is not required to pay the additional tax that begins | 26 | | on July 1, 2011 imposed by this amendatory Act of the 97th |
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| 1 | | General Assembly on those stamped cigarettes. Any distributor | 2 | | having cigarettes in his or her possession on July 1, 2011 to | 3 | | which tax stamps have been affixed is required to pay the | 4 | | additional tax that begins on July 1, 2011 imposed by this | 5 | | amendatory Act of the 97th General Assembly to the extent the | 6 | | calendar year 2011 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 2010. This payment, less the discount provided in | 10 | | subsection (b), is due when the distributor first makes a | 11 | | purchase of cigarette stamps on or after July 1, 2011 or on the | 12 | | first due date of a return under this Act occurring on or after | 13 | | July 1, 2011, whichever occurs first. Any retailer having | 14 | | cigarettes in his or her possession on July 1, 2012 to which | 15 | | tax stamps have been affixed is not required to pay the | 16 | | additional tax that begins on July 1, 2012 imposed by this | 17 | | amendatory Act of the 97th General Assembly on those stamped | 18 | | cigarettes. Any distributor having cigarettes in his or her | 19 | | possession on July 1, 2012 to which tax stamps have been | 20 | | affixed is required to pay the additional tax that begins on | 21 | | July 1, 2012 imposed by this amendatory Act of the 97th General | 22 | | Assembly to the extent the calendar year 2012 average monthly | 23 | | volume of cigarette stamps in the distributor's possession | 24 | | exceeds the average monthly volume of cigarette stamps | 25 | | purchased by the distributor in calendar year 2011. This | 26 | | payment, less the discount provided in subsection (b), is due |
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| 1 | | when the distributor first makes a purchase of cigarette stamps | 2 | | on or after July 1, 2012 or on the first due date of a return | 3 | | under this Act occurring on or after July 1, 2012, whichever | 4 | | occurs first.
| 5 | | Distributors making sales of cigarettes to secondary | 6 | | distributors shall add the amount of the tax to the price of | 7 | | the cigarettes sold by the distributors. Secondary | 8 | | distributors making sales of cigarettes to retailers shall | 9 | | include the amount of the tax in the price of the cigarettes | 10 | | sold to retailers. The amount of tax shall not be less than the | 11 | | amount of taxes imposed by the State and all local | 12 | | jurisdictions. The amount of local taxes shall be calculated | 13 | | based on the location of the retailer's place of business shown | 14 | | on the retailer's certificate of registration or | 15 | | sub-registration issued to the retailer pursuant to Section 2a | 16 | | of the Retailers' Occupation Tax Act. The original packages of | 17 | | cigarettes sold to the retailer shall bear all the required | 18 | | stamps, or other indicia, for the taxes included in the price | 19 | | of cigarettes. | 20 | | The amount of the Cigarette Tax imposed by this Act shall | 21 | | be separately
stated, apart from the price of the goods, by | 22 | | distributors, secondary distributors, and
retailers, in all | 23 | | bills and sales invoices.
| 24 | | (b) The distributor shall be required to collect the taxes | 25 | | provided
under paragraph (a) hereof, and, to cover the costs of | 26 | | such collection,
shall be allowed a discount during any year |
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| 1 | | commencing July 1st and ending
the following June 30th in | 2 | | accordance with the schedule set out
hereinbelow, which | 3 | | discount shall be allowed at the time of purchase of the
stamps | 4 | | when purchase is required by this Act, or at the time when the | 5 | | tax
is remitted to the Department without the purchase of | 6 | | stamps from the
Department when that method of paying the tax | 7 | | is required or authorized by
this Act. Prior to December 1, | 8 | | 1985, a discount equal to 1 2/3% of
the amount of the tax up to | 9 | | and including the first $700,000 paid hereunder by
such | 10 | | distributor to the Department during any such year; 1 1/3% of | 11 | | the next
$700,000 of tax or any part thereof, paid hereunder by | 12 | | such distributor to the
Department during any such year; 1% of | 13 | | the next $700,000 of tax, or any part
thereof, paid hereunder | 14 | | by such distributor to the Department during any such
year, and | 15 | | 2/3 of 1% of the amount of any additional tax paid hereunder by | 16 | | such
distributor to the Department during any such year shall | 17 | | apply. On and after
December 1, 1985, a discount equal to 1.75% | 18 | | of the amount of the tax payable
under this Act up to and | 19 | | including the first $3,000,000 paid hereunder by such
| 20 | | distributor to the Department during any such year and 1.5% of | 21 | | the amount of
any additional tax paid hereunder by such | 22 | | distributor to the Department during
any such year shall apply.
| 23 | | Two or more distributors that use a common means of | 24 | | affixing revenue tax
stamps or that are owned or controlled by | 25 | | the same interests shall be
treated as a single distributor for | 26 | | the purpose of computing the discount.
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| 1 | | (c) The taxes herein imposed are in addition to all other | 2 | | occupation or
privilege taxes imposed by the State of Illinois, | 3 | | or by any political
subdivision thereof, or by any municipal | 4 | | corporation.
| 5 | | (Source: P.A. 96-1027, eff. 7-12-10.)
| 6 | | (35 ILCS 130/3) (from Ch. 120, par. 453.3)
| 7 | | Sec. 3. Affixing tax stamp; remitting tax to the | 8 | | Department. Payment of
the taxes imposed by Section 2 of this | 9 | | Act shall
(except as hereinafter provided) be evidenced by | 10 | | revenue tax stamps affixed
to each original package of | 11 | | cigarettes. Each distributor of cigarettes,
before delivering | 12 | | or causing to be delivered any original package of
cigarettes | 13 | | in this State to a purchaser, shall firmly affix a proper stamp
| 14 | | or stamps to each such package, or (in case of manufacturers of | 15 | | cigarettes
in original packages which are contained inside a | 16 | | sealed transparent
wrapper) shall imprint the required | 17 | | language on the original package of
cigarettes beneath such | 18 | | outside wrapper, as hereinafter provided.
| 19 | | No stamp or imprint may be affixed to, or made upon, any | 20 | | package of
cigarettes unless that package complies with all | 21 | | requirements of the federal
Cigarette Labeling and Advertising | 22 | | Act, 15 U.S.C. 1331 and following, for the
placement of labels, | 23 | | warnings, or any other information upon a package of
cigarettes | 24 | | that is sold within the United States. Under the authority of
| 25 | | Section 6, the Department shall revoke the license of any |
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| 1 | | distributor that is
determined to have violated this paragraph.
| 2 | | A person may not affix a stamp on a package of cigarettes, | 3 | | cigarette papers,
wrappers, or tubes if that individual package | 4 | | has been marked for export
outside the United States with a | 5 | | label or notice in compliance with Section
290.185 of Title 27 | 6 | | of the Code of Federal Regulations. It is not a defense to
a | 7 | | proceeding for violation of this paragraph that the label or | 8 | | notice has been
removed, mutilated, obliterated, or altered in | 9 | | any manner.
| 10 | | Only distributors licensed under this Act and | 11 | | transporters, as defined in Section 9c of this Act, may possess | 12 | | unstamped original packages of cigarettes. Prior to shipment to | 13 | | a secondary distributor or an Illinois retailer, a stamp shall | 14 | | be applied to each original package of cigarettes sold to the | 15 | | secondary distributor or retailer. A distributor may apply tax | 16 | | stamps only to original packages of cigarettes purchased or | 17 | | obtained directly from an in-state maker, manufacturer, or | 18 | | fabricator licensed as a distributor under Section 4 of this | 19 | | Act or an out-of-state maker, manufacturer, or fabricator | 20 | | holding a permit under Section 4b of this Act. A licensed | 21 | | distributor may ship or otherwise cause to be delivered | 22 | | unstamped original packages of cigarettes in, into, or from | 23 | | this State. A licensed distributor may transport unstamped | 24 | | original packages of cigarettes to a facility, wherever | 25 | | located, owned or controlled by such distributor; however, a | 26 | | distributor may not transport unstamped original packages of |
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| 1 | | cigarettes to a facility where retail sales of cigarettes take | 2 | | place or to a facility where a secondary distributor makes | 3 | | sales for resale. Any licensed distributor that ships or | 4 | | otherwise causes to be delivered unstamped original packages of | 5 | | cigarettes into, within, or from this State shall ensure that | 6 | | the invoice or equivalent documentation and the bill of lading | 7 | | or freight bill for the shipment identifies the true name and | 8 | | address of the consignor or seller, the true name and address | 9 | | of the consignee or purchaser, and the quantity by brand style | 10 | | of the cigarettes so transported, provided that this Section | 11 | | shall not be construed as to impose any requirement or | 12 | | liability upon any common or contract carrier. | 13 | | The Department, or any person authorized by the Department, | 14 | | shall
sell such stamps only to persons holding valid
licenses | 15 | | as distributors under this Act. On and after July 1, 2003, | 16 | | payment
for such stamps must be made by means of
electronic | 17 | | funds transfer. The Department may refuse to sell stamps to any
| 18 | | person who does not comply
with the provisions of this Act.
| 19 | | Beginning on the effective date of this amendatory Act of the | 20 | | 92nd General
Assembly and through June 30, 2002, persons | 21 | | holding valid licenses as
distributors
may purchase cigarette | 22 | | tax stamps up to an amount equal to 115% of the
distributor's | 23 | | average monthly cigarette tax stamp purchases over the 12
| 24 | | calendar
months prior to the effective date of this amendatory | 25 | | Act of the 92nd General
Assembly.
| 26 | | Prior to December 1, 1985, the Department shall allow a |
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| 1 | | distributor
21 days in which to make final
payment of the | 2 | | amount to be paid for such stamps, by allowing the
distributor | 3 | | to make payment for the stamps at the time of purchasing them
| 4 | | with a draft which shall be in such form as the Department | 5 | | prescribes, and
which shall be payable within 21 days | 6 | | thereafter: Provided that such
distributor has filed with the | 7 | | Department, and has received the
Department's approval of, a | 8 | | bond, which is in addition to the bond required
under Section 4 | 9 | | of this Act, payable to the Department in an amount equal
to | 10 | | 80% of such distributor's average monthly tax liability to
the | 11 | | Department under this Act during the preceding calendar year or | 12 | | $500,000,
whichever is less. The Bond shall be joint and
| 13 | | several and shall be in the form of a surety company bond in | 14 | | such form as
the Department prescribes, or it may be in the | 15 | | form of a bank certificate
of deposit or bank letter of credit. | 16 | | The bond shall be conditioned upon the
distributor's payment of | 17 | | amount of any 21-day draft which the Department
accepts from | 18 | | that distributor for the delivery of stamps to that
distributor | 19 | | under this Act. The distributor's failure to pay any such
| 20 | | draft, when due, shall also make such distributor automatically | 21 | | liable to
the Department for a penalty equal to 25% of the | 22 | | amount of such draft.
| 23 | | On and after December 1, 1985 and until July 1, 2003, the | 24 | | Department
shall allow a distributor
30 days in which to make
| 25 | | final payment of the amount to be paid for such stamps, by | 26 | | allowing the
distributor to make payment for the stamps at the |
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| 1 | | time of purchasing them
with a draft which shall be in such | 2 | | form as the Department prescribes, and
which shall be payable | 3 | | within 30 days thereafter, and beginning on January 1,
2003 and | 4 | | thereafter, the draft shall be payable by means of electronic | 5 | | funds
transfer: Provided that such
distributor has filed with | 6 | | the Department, and has received the
Department's approval of, | 7 | | a bond, which is in addition to the bond required
under Section | 8 | | 4 of this Act, payable to the Department in an amount equal
to | 9 | | 150% of such distributor's average monthly tax liability to the
| 10 | | Department under this Act during the preceding calendar year or | 11 | | $750,000,
whichever is less, except that as to bonds filed on | 12 | | or after January 1,
1987, such additional bond shall be in an | 13 | | amount equal to 100% of such
distributor's average monthly tax | 14 | | liability under this Act during the
preceding calendar year or | 15 | | $750,000, whichever is less. The bond shall be
joint and | 16 | | several and shall be in the form of a surety company bond in | 17 | | such
form as the Department prescribes, or it may be in the | 18 | | form of a bank
certificate of deposit or bank letter of credit.
| 19 | | The bond shall be conditioned upon the distributor's payment of | 20 | | the amount
of any 30-day draft which the Department accepts | 21 | | from that distributor for
the delivery of stamps to that | 22 | | distributor under this Act. The
distributor's failure to pay | 23 | | any such draft, when due, shall also make such
distributor | 24 | | automatically liable to the Department for a penalty equal to
| 25 | | 25% of the amount of such draft.
| 26 | | Beginning on the effective date of this amendatory Act of |
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| 1 | | the 97th General Assembly, the Department
shall allow a | 2 | | distributor
10 days in which to make
final payment of the | 3 | | amount to be paid for such stamps, by allowing the
distributor | 4 | | to make payment for the stamps at the time of purchasing them
| 5 | | with a draft, which shall be payable by means of electronic | 6 | | funds transfer and in such form as the Department prescribes, | 7 | | and
which shall be payable within 10 days thereafter, provided | 8 | | that such
distributor has filed with the Department, and has | 9 | | received the
Department's approval of, a bond, which is in | 10 | | addition to the bond required
under Section 4 of this Act, | 11 | | payable to the Department in an amount equal
to 100% of that | 12 | | distributor's average monthly tax liability to the
Department | 13 | | under this Act during the preceding calendar year or $750,000,
| 14 | | whichever is less. The bond shall be
joint and several and | 15 | | shall be in the form of a surety company bond in such
form as | 16 | | the Department prescribes, or it may be in the form of a bank
| 17 | | certificate of deposit or bank letter of credit.
The bond shall | 18 | | be conditioned upon the distributor's payment of the amount
of | 19 | | any 10-day draft which the Department accepts from that | 20 | | distributor for
the delivery of stamps to that distributor | 21 | | under this Act. The
distributor's failure to pay any such | 22 | | draft, when due, shall also make such
distributor automatically | 23 | | liable to the Department for a penalty equal to
25% of the | 24 | | amount of such draft. | 25 | | Every prior continuous compliance taxpayer shall be exempt | 26 | | from all
requirements under this Section concerning the |
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| 1 | | furnishing of such bond, as
defined in this Section, as a | 2 | | condition precedent to his being authorized
to engage in the | 3 | | business licensed under this Act. This exemption shall
continue | 4 | | for each such taxpayer until such time as he may be determined | 5 | | by
the Department to be delinquent in the filing of any | 6 | | returns, or is
determined by the Department (either through the | 7 | | Department's issuance of a
final assessment which has become | 8 | | final under the Act, or by the taxpayer's
filing of a return | 9 | | which admits tax to be due that is not paid) to be
delinquent | 10 | | or deficient in the paying of any tax under this Act, at which
| 11 | | time that taxpayer shall become subject to the bond | 12 | | requirements of this
Section and, as a condition of being | 13 | | allowed to continue to engage in the
business licensed under | 14 | | this Act, shall be required to furnish bond to the
Department | 15 | | in such form as provided in this Section. Such taxpayer shall
| 16 | | furnish such bond for a period of 2 years, after which, if the | 17 | | taxpayer has
not been delinquent in the filing of any returns, | 18 | | or delinquent or
deficient in the paying of any tax under this | 19 | | Act, the Department may
reinstate such person as a prior | 20 | | continuance compliance taxpayer. Any
taxpayer who fails to pay | 21 | | an admitted or established liability under this
Act may also be | 22 | | required to post bond or other acceptable security with the
| 23 | | Department guaranteeing the payment of such admitted or | 24 | | established liability.
| 25 | | Any person aggrieved by any decision of the Department | 26 | | under this
Section may, within the time allowed by law, protest |
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| 1 | | and request a hearing,
whereupon the Department shall give | 2 | | notice and shall hold a hearing in
conformity with the | 3 | | provisions of this Act and then issue its final
administrative | 4 | | decision in the matter to such person. In the absence of
such a | 5 | | protest filed within the time allowed by law, the Department's
| 6 | | decision shall become final without any further determination | 7 | | being made or
notice given.
| 8 | | The Department shall discharge any surety and shall release | 9 | | and return
any bond or security deposited, assigned, pledged, | 10 | | or otherwise provided to
it by a taxpayer under this Section | 11 | | within 30 days after such : (1) Such taxpayer becomes a prior | 12 | | continuous compliance taxpayer; or (2) Such taxpayer has ceased | 13 | | to collect receipts on which he is
required to remit tax to the | 14 | | Department, has filed a final tax return, and
has paid to the | 15 | | Department an amount sufficient to discharge his remaining
tax | 16 | | liability as determined by the Department under this Act. The
| 17 | | Department shall make a final determination of the taxpayer's | 18 | | outstanding
tax liability as expeditiously as possible after | 19 | | his final tax return has
been filed. If the Department cannot | 20 | | make such final determination within
45 days after receiving | 21 | | the final tax return, within such period it shall
so notify the | 22 | | taxpayer, stating its reasons therefor.
| 23 | | The Department may authorize distributors to affix revenue | 24 | | tax stamps by
imprinting tax meter stamps upon original | 25 | | packages of cigarettes. The
Department shall adopt rules and | 26 | | regulations relating to the imprinting of
such tax meter stamps |
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| 1 | | as will result in payment of the proper taxes as
herein | 2 | | imposed. No distributor may affix revenue tax stamps to | 3 | | original
packages of cigarettes by imprinting tax meter stamps | 4 | | thereon unless such
distributor has first obtained permission | 5 | | from the Department to employ
this method of affixation. The | 6 | | Department shall regulate the use of tax
meters and may, to | 7 | | assure the proper collection of the taxes imposed by
this Act, | 8 | | revoke or suspend the privilege, theretofore granted by the
| 9 | | Department to any distributor, to imprint tax meter stamps upon | 10 | | original
packages of cigarettes.
| 11 | | Illinois cigarette manufacturers who place their | 12 | | cigarettes in original
packages which are contained inside a | 13 | | sealed transparent wrapper, and
similar out-of-State cigarette | 14 | | manufacturers who elect to qualify and are
accepted by the | 15 | | Department as distributors under Section 4b(a) of this Act,
| 16 | | shall pay the taxes imposed by this Act by remitting the amount | 17 | | thereof to
the Department by the 5th day of each month covering | 18 | | cigarettes shipped or
otherwise delivered in Illinois to | 19 | | purchasers during the preceding calendar
month. Such | 20 | | manufacturers of cigarettes in original packages which are
| 21 | | contained inside a sealed transparent wrapper, before | 22 | | delivering such
cigarettes or causing such cigarettes to be | 23 | | delivered in this State to
purchasers, shall evidence their | 24 | | obligation to remit the taxes due with
respect to such | 25 | | cigarettes by imprinting language to be prescribed by the
| 26 | | Department on each original package of such cigarettes |
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| 1 | | underneath the
sealed transparent outside wrapper of such | 2 | | original package, in such place
thereon and in such manner as | 3 | | the Department may designate. Such imprinted
language shall | 4 | | acknowledge the manufacturer's payment of or liability for
the | 5 | | tax imposed by this Act with respect to the distribution of | 6 | | such
cigarettes.
| 7 | | A distributor shall not affix, or cause to be affixed, any | 8 | | stamp or imprint
to a package of cigarettes, as provided for in | 9 | | this Section, if the tobacco
product
manufacturer, as defined | 10 | | in Section 10 of the Tobacco Product Manufacturers'
Escrow
Act, | 11 | | that made or sold the cigarettes has failed to become a | 12 | | participating
manufacturer, as defined in subdivision (a)(1) | 13 | | of Section 15 of the Tobacco
Product
Manufacturers' Escrow Act, | 14 | | or has failed to create a qualified escrow fund for
any | 15 | | cigarettes manufactured by the tobacco product manufacturer | 16 | | and sold in
this State or otherwise failed to bring itself into | 17 | | compliance with subdivision
(a)(2) of Section 15 of the Tobacco | 18 | | Product
Manufacturers' Escrow Act.
| 19 | | (Source: P.A. 95-1053, eff. 1-1-10; 96-782, eff. 1-1-10; | 20 | | 96-1027, eff. 7-12-10.)
| 21 | | Section 10. The Cigarette Use Tax Act is amended by | 22 | | changing Sections 2, 3, and 12 as follows:
| 23 | | (35 ILCS 135/2) (from Ch. 120, par. 453.32)
| 24 | | Sec. 2.
A tax is imposed upon the privilege of using |
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| 1 | | cigarettes in this
State, at the rate of 6 mills per cigarette | 2 | | so used. On and after
December 1, 1985, in addition to any | 3 | | other tax imposed by this Act, a tax
is imposed upon the | 4 | | privilege of using cigarettes in this State at a rate
of 4 | 5 | | mills per cigarette so used. 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 the privilege of | 8 | | using cigarettes in this State at the
rate of 5 mills per | 9 | | cigarette so used. On and after the effective date of this
| 10 | | amendatory Act of 1993, in addition to any other tax imposed by | 11 | | this Act, a tax
is imposed upon the privilege of using | 12 | | cigarettes in this State at a rate of 7
mills per cigarette so | 13 | | used. On and after December 15,
1997, in addition to any other | 14 | | tax imposed by this Act, a tax
is imposed upon the privilege of | 15 | | using cigarettes in this State at a rate of
7 mills per | 16 | | cigarette so used.
On and after July 1, 2002, in addition to | 17 | | any other tax imposed by
this Act, a tax is imposed
upon the | 18 | | privilege of using cigarettes in this State at a rate of 20.0 | 19 | | mills
per cigarette so used. Beginning on July 1, 2011, in | 20 | | addition to any other tax imposed by this Act, a tax is imposed | 21 | | upon the privilege of using cigarettes in this State at a rate | 22 | | of 25 mills per cigarette so used. Beginning on July 1, 2012, | 23 | | in addition to any other tax imposed by this Act, a tax is | 24 | | imposed upon the privilege of using cigarettes in this State at | 25 | | a rate of 25 mills per cigarette so used.
The taxes herein | 26 | | imposed shall be in
addition to
all other occupation or |
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| 1 | | privilege taxes imposed by the State of Illinois or by
any | 2 | | political subdivision thereof or by any municipal corporation.
| 3 | | When any tax imposed herein terminates or has terminated, | 4 | | distributors
who have bought stamps while such tax was in | 5 | | effect and who therefore paid
such tax, but who can show, to | 6 | | the Department's satisfaction, that they
sold the cigarettes to | 7 | | which they affixed such stamps after such tax had
terminated | 8 | | and did not recover the tax or its equivalent from purchasers,
| 9 | | shall be allowed by the Department to take credit for such | 10 | | absorbed tax
against subsequent tax stamp purchases from the | 11 | | Department by such
distributors.
| 12 | | When the word "tax" is used in this Act, it shall include | 13 | | any tax or tax
rate imposed by this Act and shall mean the | 14 | | singular of "tax" or the plural
"taxes" as the context may | 15 | | require.
| 16 | | Any distributor having cigarettes to which stamps have been | 17 | | affixed in
his possession for sale on the effective date of | 18 | | this amendatory Act of
1989 shall not be required to pay the | 19 | | additional tax imposed by this
amendatory Act of 1989 on such | 20 | | stamped cigarettes. Any distributor having
cigarettes to which | 21 | | stamps have been affixed in his or her possession for sale
at | 22 | | 12:01 a.m. on the effective date of this amendatory Act of | 23 | | 1993, is required
to pay the additional tax imposed by this | 24 | | amendatory Act of 1993 on such
stamped cigarettes. This payment | 25 | | shall be due when the distributor first makes
a purchase of | 26 | | cigarette tax stamps after the effective date of this |
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| 1 | | amendatory
Act of 1993, or on the first due date of a return | 2 | | under this Act after the
effective date of this amendatory Act | 3 | | of 1993, whichever occurs first. Once a
distributor tenders | 4 | | payment of the additional tax to the Department, the
| 5 | | distributor may purchase stamps from the Department.
Any | 6 | | distributor having cigarettes to which stamps have been affixed
| 7 | | in his possession for sale on December 15, 1997
shall not be | 8 | | required to pay the additional tax imposed by this amendatory | 9 | | Act
of 1997 on such stamped cigarettes.
| 10 | | Any distributor having cigarettes to which stamps have been | 11 | | affixed in his
or her possession for sale on July 1, 2002 shall | 12 | | not be required to pay the
additional
tax imposed by this | 13 | | amendatory Act of the 92nd General Assembly on those
stamped
| 14 | | cigarettes. Any retailer having cigarettes in his or her | 15 | | possession on July 1, 2011 to which tax stamps have been | 16 | | affixed is not required to pay the additional tax that begins | 17 | | on July 1, 2011 imposed by this amendatory Act of the 97th | 18 | | General Assembly on those stamped cigarettes. Any distributor | 19 | | having cigarettes in his or her possession on July 1, 2011 to | 20 | | which tax stamps have been affixed is required to pay the | 21 | | additional tax that begins on July 1, 2011 imposed by this | 22 | | amendatory Act of the 97th General Assembly to the extent the | 23 | | calendar year 2011 average monthly volume of cigarette stamps | 24 | | in the distributor's possession exceeds the average monthly | 25 | | volume of cigarette stamps purchased by the distributor in | 26 | | calendar year 2010. This payment, less the discount provided in |
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| 1 | | Section 3, is due when the distributor first makes a purchase | 2 | | of cigarette stamps on or after July 1, 2011 or on the first | 3 | | due date of a return under this Act occurring on or after July | 4 | | 1, 2011, whichever occurs first. Any retailer having cigarettes | 5 | | in his or her possession on July 1, 2012 to which tax stamps | 6 | | have been affixed is not required to pay the additional tax | 7 | | that begins on July 1, 2012 imposed by this amendatory Act of | 8 | | the 97th General Assembly on those stamped cigarettes. Any | 9 | | distributor having cigarettes in his or her possession on July | 10 | | 1, 2012 to which tax stamps have been affixed is required to | 11 | | pay the additional tax that begins on July 1, 2012 imposed by | 12 | | this amendatory Act of the 97th General Assembly to the extent | 13 | | the calendar year 2012 average monthly volume of cigarette | 14 | | stamps in the distributor's possession exceeds the average | 15 | | monthly volume of cigarette stamps purchased by the distributor | 16 | | in calendar year 2011. This payment, less the discount provided | 17 | | in Section 3, is due when the distributor first makes a | 18 | | purchase of cigarette stamps on or after July 1, 2012 or on the | 19 | | first due date of a return under this Act occurring on or after | 20 | | July 1, 2012, whichever occurs first.
| 21 | | (Source: P.A. 92-536, eff. 6-6-02.)
| 22 | | (35 ILCS 135/3) (from Ch. 120, par. 453.33)
| 23 | | Sec. 3. Stamp payment. The tax hereby imposed shall be | 24 | | collected by a
distributor
maintaining a place of business in | 25 | | this State or a distributor authorized
by the Department |
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| 1 | | pursuant to Section 7 hereof to collect the tax, and the
amount | 2 | | of the tax shall be added to the price of the cigarettes sold | 3 | | by
such distributor. Collection of the tax shall be evidenced | 4 | | by a stamp or
stamps affixed to each original package of | 5 | | cigarettes or by an authorized
substitute for such stamp | 6 | | imprinted on each original package of such
cigarettes | 7 | | underneath the sealed transparent outside wrapper of such
| 8 | | original package, except as hereinafter provided. Each | 9 | | distributor who is
required or authorized to collect the tax | 10 | | herein imposed, before delivering
or causing to be delivered | 11 | | any original packages of cigarettes in this
State to any | 12 | | purchaser, shall firmly affix a proper stamp or stamps to each
| 13 | | such package, or (in the case of manufacturers of cigarettes in | 14 | | original
packages which are contained inside a sealed | 15 | | transparent wrapper) shall
imprint the required language on the | 16 | | original package of cigarettes beneath
such outside wrapper as | 17 | | hereinafter provided. Such stamp or stamps need not
be affixed | 18 | | to the original package of any cigarettes with respect to which
| 19 | | the distributor is required to affix a like stamp or stamps by | 20 | | virtue of
the Cigarette Tax Act, however, and no tax imprint | 21 | | need be placed
underneath the sealed transparent wrapper of an | 22 | | original package of
cigarettes with respect to which the | 23 | | distributor is required or authorized
to employ a like tax | 24 | | imprint by virtue of the Cigarette Tax Act.
| 25 | | No stamp or imprint may be affixed to, or made upon, any | 26 | | package of
cigarettes unless that package complies with all |
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| 1 | | requirements of the federal
Cigarette Labeling and Advertising | 2 | | Act, 15 U.S.C. 1331 and following, for the
placement of labels, | 3 | | warnings, or any other information upon a package of
cigarettes | 4 | | that is sold within the United States. Under the authority of
| 5 | | Section 6, the Department shall revoke the license of any | 6 | | distributor that is
determined to have violated this paragraph.
| 7 | | A person may not affix a stamp on a package of cigarettes, | 8 | | cigarette papers,
wrappers, or tubes if that individual package | 9 | | has been marked for export
outside the United States with a | 10 | | label or notice in compliance with Section
290.185 of Title 27 | 11 | | of the Code of Federal Regulations. It is not a defense to
a | 12 | | proceeding for violation of this paragraph that the label or | 13 | | notice has been
removed, mutilated, obliterated, or altered in | 14 | | any manner.
| 15 | | Only distributors licensed under this Act and | 16 | | transporters, as defined in Section 9c of the Cigarette Tax | 17 | | Act, may possess unstamped original packages of cigarettes. | 18 | | Prior to shipment to an Illinois retailer or secondary | 19 | | distributor, a stamp shall be applied to each original package | 20 | | of cigarettes sold to the retailer or secondary distributor. A | 21 | | distributor may apply a tax stamp only to an original package | 22 | | of cigarettes purchased or obtained directly from an in-state | 23 | | maker, manufacturer, or fabricator licensed as a distributor | 24 | | under Section 4 of this Act or an out-of-state maker, | 25 | | manufacturer, or fabricator holding a permit under Section 7 of | 26 | | this Act. A licensed distributor may ship or otherwise cause to |
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| 1 | | be delivered unstamped original packages of cigarettes in, | 2 | | into, or from this State. A licensed distributor may transport | 3 | | unstamped original packages of cigarettes to a facility, | 4 | | wherever located, owned or controlled by such distributor; | 5 | | however, a distributor may not transport unstamped original | 6 | | packages of cigarettes to a facility where retail sales of | 7 | | cigarettes take place or to a facility where a secondary | 8 | | distributor makes sales for resale. Any licensed distributor | 9 | | that ships or otherwise causes to be delivered unstamped | 10 | | original packages of cigarettes into, within, or from this | 11 | | State shall ensure that the invoice or equivalent documentation | 12 | | and the bill of lading or freight bill for the shipment | 13 | | identifies the true name and address of the consignor or | 14 | | seller, the true name and address of the consignee or | 15 | | purchaser, and the quantity by brand style of the cigarettes so | 16 | | transported, provided that this Section shall not be construed | 17 | | as to impose any requirement or liability upon any common or | 18 | | contract carrier. | 19 | | Distributors making sales of cigarettes to secondary | 20 | | distributors shall add the amount of the tax to the price of | 21 | | the cigarettes sold by the distributors. Secondary | 22 | | distributors making sales of cigarettes to retailers shall | 23 | | include the amount of the tax in the price of the cigarettes | 24 | | sold to retailers. The amount of tax shall not be less than the | 25 | | amount of taxes imposed by the State and all local | 26 | | jurisdictions. The amount of local taxes shall be calculated |
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| 1 | | based on the location of the retailer's place of business shown | 2 | | on the retailer's certificate of registration or | 3 | | sub-registration issued to the retailer pursuant to Section 2a | 4 | | of the Retailers' Occupation Tax Act. The original packages of | 5 | | cigarettes sold by the retailer shall bear all the required | 6 | | stamps, or other indicia, for the taxes included in the price | 7 | | of cigarettes. | 8 | | Stamps, when required hereunder, shall be purchased from | 9 | | the Department, or
any person authorized by the Department, by | 10 | | distributors. On and after July
1, 2003, payment for such | 11 | | stamps must be made by means of
electronic funds transfer. The | 12 | | Department may
refuse to sell stamps to any person who does not | 13 | | comply with the provisions
of this Act. Beginning on June 6, | 14 | | 2002 and through June 30, 2002,
persons holding valid licenses | 15 | | as distributors may purchase cigarette tax
stamps up to an | 16 | | amount equal to 115% of the distributor's average monthly
| 17 | | cigarette tax stamp purchases over the 12 calendar months prior | 18 | | to June
6, 2002.
| 19 | | Prior to December 1, 1985, the Department shall
allow a | 20 | | distributor
21 days in which to make final
payment of the | 21 | | amount to be paid for such stamps, by allowing the
distributor | 22 | | to make payment for the stamps at the time of purchasing them
| 23 | | with a draft which shall be in such form as the Department | 24 | | prescribes, and
which shall be payable within 21 days | 25 | | thereafter: Provided that such
distributor has filed with the | 26 | | Department, and has received the
Department's approval of, a |
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| 1 | | bond, which is in addition to the bond required
under Section 4 | 2 | | of this Act, payable to the Department in an amount equal
to | 3 | | 80% of such distributor's average monthly tax liability to
the | 4 | | Department under this Act during the preceding calendar year or
| 5 | | $500,000, whichever is less. The bond shall be joint and
| 6 | | several and shall be in the form of a surety company bond in | 7 | | such form as
the Department prescribes, or it may be in the | 8 | | form of a bank certificate
of deposit or bank letter of credit. | 9 | | The bond shall be conditioned upon the
distributor's payment of | 10 | | the amount of any 21-day draft which the
Department accepts | 11 | | from that distributor for the delivery of stamps to that
| 12 | | distributor under this Act. The distributor's failure to pay | 13 | | any such
draft, when due, shall also make such distributor | 14 | | automatically liable to
the Department for a penalty equal to | 15 | | 25% of the amount of such draft.
| 16 | | On and after December 1, 1985 and until July 1, 2003, the | 17 | | Department
shall allow a distributor
30 days in which to make
| 18 | | final payment of the amount to be paid for such stamps, by | 19 | | allowing the
distributor to make payment for the stamps at the | 20 | | time of purchasing them
with a draft which shall be in such | 21 | | form as the Department prescribes, and
which shall be payable | 22 | | within 30 days thereafter, and beginning on January 1,
2003 and | 23 | | thereafter, the draft shall be payable by means of electronic | 24 | | funds
transfer: Provided that such
distributor has filed with | 25 | | the Department, and has received the
Department's approval of, | 26 | | a bond, which is in addition to the bond required
under Section |
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| 1 | | 4 of this Act, payable to the Department in an amount equal
to | 2 | | 150% of such distributor's average monthly tax liability to the
| 3 | | Department under this Act during the preceding calendar year or | 4 | | $750,000,
whichever is less, except that as to bonds filed on | 5 | | or after January 1,
1987, such additional bond shall be in an | 6 | | amount equal to 100% of such
distributor's average monthly tax | 7 | | liability under this Act during the
preceding calendar year or | 8 | | $750,000, whichever is less. The bond shall be
joint and | 9 | | several and shall be in the form of a surety company bond in | 10 | | such
form as the Department prescribes, or it may be in the | 11 | | form of a bank
certificate of deposit or bank letter of credit.
| 12 | | The bond shall be conditioned upon the distributor's payment of | 13 | | the amount
of any 30-day draft which the Department accepts | 14 | | from that distributor for
the delivery of stamps to that | 15 | | distributor under this Act. The
distributor's failure to pay | 16 | | any such draft, when due, shall also make such
distributor | 17 | | automatically liable to the Department for a penalty equal to
| 18 | | 25% of the amount of such draft.
| 19 | | Beginning on the effective date of this amendatory Act of | 20 | | the 97th General Assembly, the Department
shall allow a | 21 | | distributor
10 days in which to make
final payment of the | 22 | | amount to be paid for such stamps, by allowing the
distributor | 23 | | to make payment for the stamps at the time of purchasing them
| 24 | | with a draft, which shall be payable by means of electronic | 25 | | funds transfer and in such form as the Department prescribes, | 26 | | and
which shall be payable within 10 days thereafter, provided |
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| 1 | | that such
distributor has filed with the Department, and has | 2 | | received the
Department's approval of, a bond, which is in | 3 | | addition to the bond required
under Section 4 of this Act, | 4 | | payable to the Department in an amount equal
to 100% of that | 5 | | distributor's average monthly tax liability to the
Department | 6 | | under this Act during the preceding calendar year or $750,000,
| 7 | | whichever is less. The bond shall be
joint and several and | 8 | | shall be in the form of a surety company bond in such
form as | 9 | | the Department prescribes, or it may be in the form of a bank
| 10 | | certificate of deposit or bank letter of credit.
The bond shall | 11 | | be conditioned upon the distributor's payment of the amount
of | 12 | | any 10-day draft which the Department accepts from that | 13 | | distributor for
the delivery of stamps to that distributor | 14 | | under this Act. The
distributor's failure to pay any such | 15 | | draft, when due, shall also make such
distributor automatically | 16 | | liable to the Department for a penalty equal to
25% of the | 17 | | amount of such draft. | 18 | | Every prior continuous compliance taxpayer shall be exempt | 19 | | from all
requirements under this Section concerning the | 20 | | furnishing of such bond, as
defined in this Section, as a | 21 | | condition precedent to his being authorized
to engage in the | 22 | | business licensed under this Act. This exemption shall
continue | 23 | | for each such taxpayer until such time as he may be determined | 24 | | by
the Department to be delinquent in the filing of any | 25 | | returns, or is
determined by the Department (either through the | 26 | | Department's issuance of a
final assessment which has become |
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| 1 | | final under the Act, or by the taxpayer's
filing of a return | 2 | | which admits tax to be due that is not paid) to be
delinquent | 3 | | or deficient in the paying of any tax under this Act, at which
| 4 | | time that taxpayer shall become subject to the bond | 5 | | requirements of this
Section and, as a condition of being | 6 | | allowed to continue to engage in the
business licensed under | 7 | | this Act, shall be required to furnish bond to the
Department | 8 | | in such form as provided in this Section. Such taxpayer shall
| 9 | | furnish such bond for a period of 2 years, after which, if the | 10 | | taxpayer has
not been delinquent in the filing of any returns, | 11 | | or delinquent or
deficient in the paying of any tax under this | 12 | | Act, the Department may
reinstate such person as a prior | 13 | | continuance compliance taxpayer. Any
taxpayer who fails to pay | 14 | | an admitted or established liability under this
Act may also be | 15 | | required to post bond or other acceptable security with the
| 16 | | Department guaranteeing the payment of such admitted or | 17 | | established liability.
| 18 | | Any person aggrieved by any decision of the Department | 19 | | under this
Section may, within the time allowed by law, protest | 20 | | and request a hearing,
whereupon the Department shall give | 21 | | notice and shall hold a hearing in
conformity with the | 22 | | provisions of this Act and then issue its final
administrative | 23 | | decision in the matter to such person. In the absence of
such a | 24 | | protest filed within the time allowed by law, the Department's
| 25 | | decision shall become final without any further determination | 26 | | being made or
notice given.
|
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| 1 | | The Department shall discharge any surety and shall release | 2 | | and return
any bond or security deposited, assigned, pledged, | 3 | | or otherwise provided to
it by a taxpayer under this Section | 4 | | within 30 days after :(1) such Taxpayer becomes a prior | 5 | | continuous compliance taxpayer; or
(2) such taxpayer has ceased | 6 | | to collect receipts on which he is
required to remit tax to the | 7 | | Department, has filed a final tax return, and
has paid to the | 8 | | Department an amount sufficient to discharge his remaining
tax | 9 | | liability as determined by the Department under this Act. The
| 10 | | Department shall make a final determination of the taxpayer's | 11 | | outstanding
tax liability as expeditiously as possible after | 12 | | his final tax return has
been filed. If the Department cannot | 13 | | make such final determination within
45 days after receiving | 14 | | the final tax return, within such period it shall
so notify the | 15 | | taxpayer, stating its reasons therefor.
| 16 | | At the time of purchasing such stamps from the Department | 17 | | when purchase
is required by this Act, or at the time when the | 18 | | tax which he has collected
is remitted by a distributor to the | 19 | | Department without the purchase of
stamps from the Department | 20 | | when that method of remitting the tax that has
been collected | 21 | | is required or authorized by this Act, the distributor shall
be | 22 | | allowed a discount during any year commencing July 1 and ending | 23 | | the
following June 30 in accordance with the schedule set out | 24 | | hereinbelow, from
the amount to be paid by him to the | 25 | | Department for such stamps, or to be
paid by him to the | 26 | | Department on the basis of monthly remittances (as the
case may |
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| 1 | | be), to cover the cost, to such distributor, of collecting the | 2 | | tax
herein imposed by affixing such stamps to the original | 3 | | packages of
cigarettes sold by such distributor or by placing | 4 | | tax imprints underneath
the sealed transparent wrapper of | 5 | | original packages of cigarettes sold by
such distributor (as | 6 | | the case may be): (1) Prior to December 1, 1985, a
discount | 7 | | equal to 1-2/3% of the amount of the tax up to and including | 8 | | the
first $700,000 paid hereunder by
such distributor to the | 9 | | Department during any such year; 1-1/3% of the next
$700,000 of | 10 | | tax or any part thereof, paid hereunder by such distributor to
| 11 | | the Department during any such year; 1% of the next $700,000 of | 12 | | tax, or any
part thereof, paid hereunder by such distributor to | 13 | | the Department during
any such year; and 2/3 of 1% of the | 14 | | amount of any additional tax paid
hereunder by such distributor | 15 | | to the Department during any such year or
(2) On and after | 16 | | December 1, 1985, a discount equal to 1.75% of the
amount of | 17 | | the tax payable under this Act up to and including the first
| 18 | | $3,000,000 paid hereunder by such distributor to the Department | 19 | | during any
such year and 1.5% of the amount of any additional | 20 | | tax paid hereunder by
such distributor to the Department during | 21 | | any such year.
| 22 | | Two or more distributors that use a common means of | 23 | | affixing revenue tax
stamps or that are owned or controlled by | 24 | | the same interests shall be
treated as a single distributor for | 25 | | the purpose of computing the discount.
| 26 | | Cigarette manufacturers who are distributors under Section |
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| 1 | | 7(a) of this Act, and who
place their cigarettes in original | 2 | | packages which are contained inside a
sealed transparent | 3 | | wrapper, shall be required to remit the tax which they
are | 4 | | required to collect under this Act to the Department by | 5 | | remitting the
amount thereof to the Department by the 5th day | 6 | | of each month, covering
cigarettes shipped or otherwise | 7 | | delivered to points in Illinois to
purchasers during the | 8 | | preceding calendar month, but a distributor need not
remit to | 9 | | the Department the tax so collected by him from purchasers | 10 | | under
this Act to the extent to which such distributor is | 11 | | required to remit the
tax imposed by the Cigarette Tax Act to | 12 | | the Department with respect to the
same cigarettes. All taxes | 13 | | upon cigarettes under this Act are a direct tax
upon the retail | 14 | | consumer and shall conclusively be presumed to be
precollected | 15 | | for the purpose of convenience and facility only.
Cigarette | 16 | | manufacturers that are distributors licensed under Section | 17 | | 7(a) of this Act and who place their cigarettes in original | 18 | | packages which
are contained inside a sealed transparent | 19 | | wrapper, before delivering such
cigarettes or causing such | 20 | | cigarettes to be delivered in this State to
purchasers, shall | 21 | | evidence their obligation to collect and remit the tax
due with | 22 | | respect to such cigarettes by imprinting language to be | 23 | | prescribed
by the Department on each original package of such | 24 | | cigarettes underneath
the sealed transparent outside wrapper | 25 | | of such original package, in such
place thereon and in such | 26 | | manner as the Department may prescribe; provided
(as stated |
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| 1 | | hereinbefore) that this requirement does not apply when such
| 2 | | distributor is required or authorized by the Cigarette Tax Act | 3 | | to place the
tax imprint provided for in the last paragraph of | 4 | | Section 3 of that Act
underneath the sealed transparent wrapper | 5 | | of such original package of
cigarettes. Such imprinted language | 6 | | shall acknowledge the manufacturer's
collection and payment of | 7 | | or liability for the tax imposed by this Act with
respect to | 8 | | such cigarettes.
| 9 | | The Department shall adopt the design or designs of the tax | 10 | | stamps and
shall procure the printing of such stamps in such | 11 | | amounts and denominations
as it deems necessary to provide for | 12 | | the affixation of the proper amount of
tax stamps to each | 13 | | original package of cigarettes.
| 14 | | Where tax stamps are required, the Department may authorize | 15 | | distributors
to affix revenue tax stamps by imprinting tax | 16 | | meter stamps upon original
packages of cigarettes. The | 17 | | Department shall adopt rules and regulations
relating to the | 18 | | imprinting of such tax meter stamps as will result in
payment | 19 | | of the proper taxes as herein imposed. No distributor may affix
| 20 | | revenue tax stamps to original packages of cigarettes by | 21 | | imprinting meter
stamps thereon unless such distributor has | 22 | | first obtained permission from
the Department to employ this | 23 | | method of affixation. The Department shall
regulate the use of | 24 | | tax meters and may, to assure the proper collection of
the | 25 | | taxes imposed by this Act, revoke or suspend the privilege, | 26 | | theretofore
granted by the Department to any distributor, to |
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| 1 | | imprint tax meter stamps
upon original packages of cigarettes.
| 2 | | The tax hereby imposed and not paid pursuant to this | 3 | | Section shall be
paid to the Department directly by any person | 4 | | using such cigarettes within
this State, pursuant to Section 12 | 5 | | hereof.
| 6 | | A distributor shall not affix, or cause to be affixed, any | 7 | | stamp or imprint
to a package
of cigarettes, as provided for in | 8 | | this Section, if the tobacco product
manufacturer, as defined | 9 | | in Section 10 of the Tobacco Product Manufacturers'
Escrow
Act, | 10 | | that made or sold the cigarettes has failed to become a | 11 | | participating
manufacturer, as defined in subdivision (a)(1) | 12 | | of Section 15 of the Tobacco
Product Manufacturers' Escrow Act, | 13 | | or has failed to create a qualified escrow
fund for any | 14 | | cigarettes manufactured by the tobacco
product manufacturer | 15 | | and sold in this State or otherwise failed to bring itself
into
| 16 | | compliance with subdivision (a)(2) of Section 15 of the Tobacco | 17 | | Product
Manufacturers' Escrow Act.
| 18 | | (Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10.)
| 19 | | (35 ILCS 135/12) (from Ch. 120, par. 453.42)
| 20 | | Sec. 12. Declaration of possession of cigarettes on which | 21 | | tax not paid.
| 22 | | (a) When cigarettes are acquired for use in this State by a | 23 | | person
(including a distributor as well as any other person), | 24 | | who did not pay the
tax herein imposed to a distributor, the | 25 | | person, within 30 days after
acquiring the cigarettes, shall |
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| 1 | | file with the Department a return
declaring the possession of | 2 | | the cigarettes and shall transmit with
the
return to the | 3 | | Department the tax imposed by this Act.
| 4 | | (b) On receipt of the return and payment of the tax as | 5 | | required by
paragraph (a), the Department may furnish the | 6 | | person with a suitable tax stamp
to be
affixed to the package | 7 | | of cigarettes upon which the tax has been paid
if the | 8 | | Department determines that the cigarettes still exist.
| 9 | | (c) The return referred to in paragraph
(a) shall
contain | 10 | | the name and address of the person possessing the cigarettes
| 11 | | involved, the location of the cigarettes and the quantity, | 12 | | brand
name,
place, and date of the acquisition of the | 13 | | cigarettes.
| 14 | | (d) Nothing in this Section shall permit a secondary | 15 | | distributor to purchase unstamped original packages of | 16 | | cigarettes or to purchase original packages of cigarettes from | 17 | | a person other than a licensed distributor. | 18 | | (e) The provisions of this Section are not subject to the | 19 | | Uniform Penalty and
Interest
Act. | 20 | | (Source: P.A. 96-1027, eff. 7-12-10.)
| 21 | | Section 15. The Liquor Control Act of 1934 is amended by | 22 | | reenacting and changing Section 8-1 as follows:
| 23 | | (235 ILCS 5/8-1)
| 24 | | Sec. 8-1.
A tax is imposed upon the privilege of engaging |
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| 1 | | in business as a
manufacturer or as an importing distributor of | 2 | | alcoholic liquor other than beer
at the rate of $0.185 per | 3 | | gallon until September 1, 2009 and $0.231 per gallon beginning | 4 | | September 1, 2009 for cider containing not less than
0.5% | 5 | | alcohol by volume nor more than 7% alcohol by volume, $0.73
per | 6 | | gallon until September 1, 2009 , and $1.39 per gallon beginning | 7 | | September 1, 2009 and until July 1, 2011, and $0.911 per gallon | 8 | | beginning July 1, 2011 for wine other than
cider containing | 9 | | less than 7% alcohol by volume, and $4.50
per gallon until | 10 | | September 1, 2009 and $8.55 per gallon beginning September 1, | 11 | | 2009 and until July 1, 2011, and $5.619 per gallon beginning | 12 | | July 1, 2011 on alcohol and spirits manufactured and sold or | 13 | | used by such
manufacturer, or as agent for any other person, or | 14 | | sold or used by such
importing distributor, or as agent for any | 15 | | other person. A tax is imposed
upon the privilege of engaging | 16 | | in business as a manufacturer of beer or as an
importing | 17 | | distributor of beer at the rate of $0.185 per gallon until | 18 | | September 1, 2009 and $0.231 per gallon beginning September 1, | 19 | | 2009 on
all beer manufactured and sold or used by such | 20 | | manufacturer, or as agent for
any other person, or sold or used | 21 | | by such importing distributor, or as agent
for any other | 22 | | person. Any brewer manufacturing beer in this State shall be
| 23 | | entitled to and given a credit or refund of 75% of the tax | 24 | | imposed on each
gallon of beer up to 4.9 million gallons per | 25 | | year in any given calendar year
for tax paid or payable on beer | 26 | | produced and sold in the State of Illinois.
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| 1 | | For the purpose of this Section, "cider" means any | 2 | | alcoholic beverage
obtained by the alcohol fermentation of the | 3 | | juice of apples or pears
including, but not limited to, | 4 | | flavored, sparkling, or carbonated cider.
| 5 | | The credit or refund created by this Act shall apply to all | 6 | | beer taxes
in the calendar years 1982 through 1986.
| 7 | | The increases made by this amendatory Act of the 91st | 8 | | General Assembly in
the rates of taxes imposed under this | 9 | | Section shall apply beginning on July
1, 1999.
| 10 | | A tax at the rate of 1˘ per gallon on beer and 48˘ per | 11 | | gallon on
alcohol and spirits is also imposed upon the | 12 | | privilege of engaging in
business as a retailer or as a | 13 | | distributor who is not also an importing
distributor with | 14 | | respect to all beer and all alcohol and spirits owned
or | 15 | | possessed by such retailer or distributor when this amendatory | 16 | | Act of
1969 becomes effective, and with respect to which the | 17 | | additional tax
imposed by this amendatory Act upon | 18 | | manufacturers and importing
distributors does not apply. | 19 | | Retailers and distributors who are subject
to the additional | 20 | | tax imposed by this paragraph of this Section shall be
required | 21 | | to inventory such alcoholic liquor and to pay this additional
| 22 | | tax in a manner prescribed by the Department.
| 23 | | The provisions of this Section shall be construed to apply | 24 | | to any
importing distributor engaging in business in this | 25 | | State, whether
licensed or not.
| 26 | | However, such tax is not imposed upon any such business as |
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| 1 | | to any
alcoholic liquor shipped outside Illinois by an Illinois | 2 | | licensed
manufacturer or importing distributor, nor as to any | 3 | | alcoholic liquor
delivered in Illinois by an Illinois licensed | 4 | | manufacturer or importing
distributor to a purchaser for | 5 | | immediate transportation by the purchaser
to another state into | 6 | | which the purchaser has a legal right, under the
laws of such | 7 | | state, to import such alcoholic liquor, nor as to any
alcoholic | 8 | | liquor other than beer sold by one Illinois licensed
| 9 | | manufacturer or importing distributor to another Illinois | 10 | | licensed
manufacturer or importing distributor to the extent to | 11 | | which the sale of
alcoholic liquor other than beer by one | 12 | | Illinois licensed manufacturer
or importing distributor to | 13 | | another Illinois licensed manufacturer or
importing | 14 | | distributor is authorized by the licensing provisions of this
| 15 | | Act, nor to alcoholic liquor whether manufactured in or | 16 | | imported into
this State when sold to a "non-beverage user" | 17 | | licensed by the State for
use in the manufacture of any of the | 18 | | following when they are unfit for
beverage purposes:
| 19 | | Patent and proprietary medicines and medicinal, | 20 | | antiseptic, culinary
and toilet preparations;
| 21 | | Flavoring extracts and syrups and food products;
| 22 | | Scientific, industrial and chemical products, excepting | 23 | | denatured
alcohol;
| 24 | | Or for scientific, chemical, experimental or mechanical | 25 | | purposes;
| 26 | | Nor is the tax imposed upon the privilege of engaging in |
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| 1 | | any business
in interstate commerce or otherwise, which | 2 | | business may not, under the
Constitution and Statutes of the | 3 | | United States, be made the subject of
taxation by this State.
| 4 | | The tax herein imposed shall be in addition to all other | 5 | | occupation
or privilege taxes imposed by the State of Illinois | 6 | | or political
subdivision thereof.
| 7 | | If any alcoholic liquor manufactured in or imported into | 8 | | this State
is sold to a licensed manufacturer or importing | 9 | | distributor by a
licensed manufacturer or importing | 10 | | distributor to be used solely as an
ingredient in the | 11 | | manufacture of any beverage for human consumption, the
tax | 12 | | imposed upon such purchasing manufacturer or importing | 13 | | distributor
shall be reduced by the amount of the taxes which | 14 | | have been paid by the
selling manufacturer or importing | 15 | | distributor under this Act as to such
alcoholic liquor so used | 16 | | to the Department of Revenue.
| 17 | | If any person received any alcoholic liquors from a | 18 | | manufacturer or
importing distributor, with respect to which | 19 | | alcoholic liquors no tax is
imposed under this Article, and | 20 | | such alcoholic liquor shall thereafter
be disposed of in such | 21 | | manner or under such circumstances as may cause
the same to | 22 | | become the base for the tax imposed by this Article, such
| 23 | | person shall make the same reports and returns, pay the same | 24 | | taxes and
be subject to all other provisions of this Article | 25 | | relating to
manufacturers and importing distributors.
| 26 | | Nothing in this Article shall be construed to require the |
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| 1 | | payment to
the Department of the taxes imposed by this Article | 2 | | more than once with
respect to any quantity of alcoholic liquor | 3 | | sold or used within this
State.
| 4 | | No tax is imposed by this Act on sales of alcoholic liquor | 5 | | by
Illinois licensed foreign importers to Illinois licensed | 6 | | importing
distributors.
| 7 | | All of the proceeds of the additional tax imposed by Public | 8 | | Act 96-34 , as subsequently amended by Public Acts 96-37, 96-38, | 9 | | and 96-1000, and then reenacted and reduced by this amendatory | 10 | | Act of the 97th General Assembly, shall be deposited by the | 11 | | Department into the Capital Projects Fund. The remainder of the | 12 | | tax imposed by this Act shall be deposited by the Department | 13 | | into the General Revenue Fund. | 14 | | The provisions of this Section 8-1 are severable under | 15 | | Section 1.31 of the Statute on Statutes.
| 16 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | 17 | | eff. 7-13-09; 96-1000, eff. 7-2-10.)
| 18 | | Section 90. Finding; reenactment; base text; tax; | 19 | | validation. | 20 | | (a) On January 26, 2011, the First District Appellate | 21 | | Court, in Wirtz v. Quinn (Nos. 1-09-3163 and 1-10-0344), found | 22 | | that Public Act 96-34 violates the single subject rule of | 23 | | Article IV, Section 8 of the Illinois Constitution, and is | 24 | | therefore void in its entirety. It also found that Public Acts | 25 | | 96-35, 96-37, and 96-38 "are all contingent on the enactment of |
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| 1 | | Public Act 96-34", and therefore "cannot stand". As of the date | 2 | | this Act
was prepared, enforcement of the decision in Wirtz v. | 3 | | Quinn had been stayed by the Illinois Supreme Court and the | 4 | | case was still subject to further appeal. | 5 | | (b) Among other things, this Act reenacts the changes to | 6 | | Section 8-1 of the Liquor Control Act of 1934 made by Public | 7 | | Act 96-34, by the related trailer amendments of Public Acts | 8 | | 96-37 and 96-38, and by the revisory bill Public Act 96-1000. | 9 | | This reenactment is intended to remove any question about the | 10 | | validity of those provisions and the actions taken in reliance | 11 | | on them, and to provide continuity in the implementation and | 12 | | administration of those provisions. Notwithstanding Section | 13 | | 9999 of Public Act 96-34, this reenactment is not contingent | 14 | | upon House Bill 312 of the 96th General Assembly (now P.A. | 15 | | 96-35) becoming law. This reenactment is not intended, and | 16 | | shall not be construed, to imply that
all or any portion of | 17 | | P.A. 96-34, 96-37, or 96-38 is invalid. | 18 | | (c) The text of the reenacted material, including the | 19 | | existing amendments,
is shown in this Act as existing
text; | 20 | | striking and underscoring have been used only to indicate new | 21 | | changes being made to the reenacted text by this Act | 22 | | (d) All otherwise lawful actions taken before the effective | 23 | | date of this Act in reasonable reliance on or pursuant
to the | 24 | | provisions reenacted by this Act (as those provisions were set | 25 | | forth in Public Act 96-34, 96-37, or
96-38 or had been | 26 | | otherwise amended at the relevant time) by any officer, |
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| 1 | | employee, agency, or unit of State or
local government or by | 2 | | any other person or entity are hereby validated. | 3 | | With respect to actions taken before the effective date of | 4 | | this Act in relation to matters arising under the
provisions | 5 | | reenacted by this Act, a person is rebuttably presumed to have | 6 | | acted in
reasonable reliance on or pursuant to those | 7 | | provisions,
as they had been amended at the relevant time. | 8 | | Section 99. Effective date. This Act takes effect upon | 9 | | becoming law.".
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