Full Text of SB0021 97th General Assembly
SB0021sam002 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, AS AMENDED, | 3 | | with reference to page and line numbers of Senate Amendment No. | 4 | | 1, on page 38, immediately below line 20, by inserting the | 5 | | following:
| 6 | | "Section 13. The Tobacco Products Tax Act of 1995 is | 7 | | amended by changing Sections 10-5, 10-10, and 10-30 as follows:
| 8 | | (35 ILCS 143/10-5)
| 9 | | Sec. 10-5. Definitions. For purposes of this Act:
| 10 | | "Business" means any trade, occupation, activity, or | 11 | | enterprise engaged
in, at any location whatsoever, for the | 12 | | purpose of selling tobacco products.
| 13 | | "Cigarette" has the meaning ascribed to the term in Section | 14 | | 1 of the
Cigarette Tax Act.
| 15 | | "Correctional Industries program" means a program run by a | 16 | | State penal
institution in which residents of the penal |
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| 1 | | institution produce tobacco
products for sale to persons | 2 | | incarcerated in penal institutions or resident
patients of a | 3 | | State operated mental health facility.
| 4 | | "Department" means the Illinois Department of Revenue.
| 5 | | "Distributor" means any of the following:
| 6 | | (1) Any manufacturer or wholesaler in this State | 7 | | engaged in the business
of selling tobacco products who | 8 | | sells, exchanges, or distributes tobacco
products to | 9 | | retailers or consumers in this State.
| 10 | | (2) Any manufacturer or wholesaler engaged
in
the | 11 | | business of selling tobacco products from without this | 12 | | State who sells,
exchanges, distributes,
ships, or | 13 | | transports tobacco products to retailers or consumers | 14 | | located in
this State,
so long as that manufacturer or | 15 | | wholesaler has or maintains within this State,
directly or | 16 | | by subsidiary, an office, sales house, or other place of | 17 | | business,
or any agent or other representative operating | 18 | | within this State under the
authority of the person or | 19 | | subsidiary, irrespective of whether the place of
business | 20 | | or agent or other representative is located here | 21 | | permanently or
temporarily.
| 22 | | (3) Any retailer who receives tobacco products on which | 23 | | the tax has not
been or
will not be paid by another | 24 | | distributor.
| 25 | | "Distributor" does not include any person, wherever | 26 | | resident or located, who
makes, manufactures, or fabricates |
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| 1 | | tobacco products as part of a Correctional
Industries program | 2 | | for sale to residents incarcerated in penal institutions or
| 3 | | resident patients of a State operated mental health facility.
| 4 | | "Manufacturer" means any person, wherever resident or | 5 | | located, who
manufactures and sells tobacco products, except a | 6 | | person who makes,
manufactures, or fabricates tobacco products | 7 | | as a part of a Correctional
Industries program for sale to | 8 | | persons incarcerated in penal institutions or
resident | 9 | | patients of a State operated mental health facility.
| 10 | | "Moist snuff" means any finely cut, ground, or powdered | 11 | | tobacco that is not intended to be smoked, but shall not | 12 | | include any finely cut, ground, or powdered tobacco that is | 13 | | intended to be placed in the nasal cavity. | 14 | | "Person" means any natural individual, firm, partnership, | 15 | | association, joint
stock company, joint venture, limited | 16 | | liability company, or public or private
corporation, however | 17 | | formed, or a receiver, executor, administrator, trustee,
| 18 | | conservator, or other representative appointed by order of any | 19 | | court.
| 20 | | "Place of business" means and includes any place where | 21 | | tobacco products
are sold or where tobacco products are | 22 | | manufactured, stored, or kept for
the purpose of sale or | 23 | | consumption, including any vessel, vehicle, airplane,
train, | 24 | | or vending machine.
| 25 | | "Retailer" means any person in this State engaged in the | 26 | | business of selling
tobacco products to consumers in this |
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| 1 | | State, regardless of quantity or number
of sales.
| 2 | | "Sale" means any transfer, exchange, or barter in any | 3 | | manner or by any means
whatsoever for a consideration and | 4 | | includes all sales made by
persons.
| 5 | | "Tobacco products" means any cigars; cheroots; stogies; | 6 | | periques; granulated,
plug cut, crimp cut, ready rubbed, and | 7 | | other smoking tobacco; snuff (including moist snuff) or snuff
| 8 | | flour; cavendish; plug and twist tobacco; fine-cut and other | 9 | | chewing tobaccos;
shorts; refuse scraps, clippings, cuttings, | 10 | | and sweeping of tobacco; and
other kinds and forms of tobacco, | 11 | | prepared in such manner as to be suitable for
chewing or | 12 | | smoking in a pipe or otherwise, or both for chewing and | 13 | | smoking; but
does not include cigarettes or tobacco purchased | 14 | | for the manufacture of
cigarettes by cigarette distributors and | 15 | | manufacturers defined in the
Cigarette Tax Act and persons who | 16 | | make, manufacture, or fabricate
cigarettes as a part of a | 17 | | Correctional Industries program for sale to
residents | 18 | | incarcerated in penal institutions or resident patients of a
| 19 | | State operated mental health facility.
| 20 | | "Wholesale price" means the established list price for | 21 | | which a manufacturer
sells tobacco products to a distributor, | 22 | | before the allowance of any discount,
trade allowance, rebate, | 23 | | or other reduction.
In the absence of such an established list | 24 | | price, the manufacturer's invoice
price at which the | 25 | | manufacturer sells the tobacco product to unaffiliated
| 26 | | distributors, before any discounts, trade allowances, rebates, |
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| 1 | | or other
reductions, shall be presumed to be the wholesale | 2 | | price.
| 3 | | "Wholesaler" means any person, wherever resident or | 4 | | located, engaged in the
business of selling tobacco products to | 5 | | others for the purpose of resale.
| 6 | | (Source: P.A. 92-231, eff. 8-2-01.)
| 7 | | (35 ILCS 143/10-10)
| 8 | | Sec. 10-10. Tax imposed. On the first day of the third | 9 | | month after the
month in which this Act becomes law and until | 10 | | July 1, 2011 , a tax is imposed on any person engaged in
| 11 | | business as a distributor of tobacco products, as defined in | 12 | | Section 10-5,
at the rate of 18% of the wholesale price of | 13 | | tobacco products sold or otherwise
disposed of to retailers or | 14 | | consumers located in this State. Beginning on July 1, 2011, a | 15 | | tax is imposed on any person engaged in
business as a | 16 | | distributor of tobacco products, as defined in Section 10-5,
at | 17 | | the rate of (i) 18% of the wholesale price of tobacco products, | 18 | | other than moist snuff, sold or otherwise
disposed of to | 19 | | retailers or consumers located in this State and (ii) $0.20 per | 20 | | ounce of moist snuff, and a proportionate tax at the like rate | 21 | | on all fractional parts of an ounce, sold or otherwise
disposed | 22 | | of to retailers or consumers located in this State. The tax is | 23 | | in
addition to all other
occupation or privilege taxes imposed | 24 | | by the State of Illinois, by any
political subdivision thereof, | 25 | | or by any municipal corporation. However, the
tax is not |
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| 1 | | imposed upon any activity in that business in interstate | 2 | | commerce or
otherwise, to the extent to which that activity may | 3 | | not, under the Constitution
and Statutes of the United States, | 4 | | be made the subject of taxation by this
State. The tax is also | 5 | | not imposed on sales made to the United States or any
entity | 6 | | thereof.
| 7 | | Beginning on July 1, 2011, the tax rate imposed per ounce | 8 | | of moist snuff may not exceed 11% of the tax imposed upon a | 9 | | package of 20 cigarettes pursuant to the Cigarette Tax Act. | 10 | | All moneys received by the Department under this Act shall | 11 | | be paid into
the Long-Term Care Provider Fund of the State | 12 | | Treasury.
| 13 | | (Source: P.A. 92-231, eff. 8-2-01.)
| 14 | | (35 ILCS 143/10-30)
| 15 | | Sec. 10-30. Returns. Every distributor shall, on or before | 16 | | the 15th day of
each month, file a return with the Department | 17 | | covering the preceding calendar
month. The return shall | 18 | | disclose the wholesale price for all tobacco products and the | 19 | | quantity of moist snuff sold
or otherwise disposed of and other | 20 | | information that the Department may
reasonably require. The | 21 | | return shall be filed upon a form prescribed and
furnished by | 22 | | the Department.
| 23 | | At the time when any return of any distributor is due to be | 24 | | filed with
the Department, the distributor shall also remit to | 25 | | the Department the
tax liability that the distributor has |
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| 1 | | incurred for transactions
occurring in the preceding calendar | 2 | | month.
| 3 | | (Source: P.A. 89-21, eff. 6-6-95.)".
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