Full Text of SB3141 100th General Assembly
SB3141 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 SB3141 Introduced 2/15/2018, by Sen. Karen McConnaughay SYNOPSIS AS INTRODUCED: |
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Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, the Cigarette Tax Act, and the Cigarette Use Tax Act. Provides that a taxpayer is prohibited from introducing into evidence in a proceeding before the Department of Revenue, Tax Tribunal, or court any books or records that the taxpayer failed to produce to the Department for examination, unless the books and records are received by the Department no less than 5 business days prior to seeking introduction of the books and records in the proceeding. Sets forth penalties for failure to keep or produce certain books and records. Requires distributors and secondary distributors who purchase cigarettes for shipment into Illinois from a point outside this State to make the invoices available for inspection upon demand by a duly authorized employee of the Department. Provides that the Department may assess taxes, penalties, and interest on original packages of cigarettes that do not contain property tax stamps. Provides that, if a person fails to produce records for inspection by the Department upon request, a prima facie presumption shall arise that the person has failed to keep the records so required. Provides that the sale of individual or loose cigarettes is prohibited. Amends the Tobacco Products Tax Act of 1995 to make changes concerning penalties for failure to keep and produce books and records. Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Use Tax Act is amended by changing Section | 5 | | 11 as follows:
| 6 | | (35 ILCS 105/11) (from Ch. 120, par. 439.11)
| 7 | | Sec. 11.
Every retailer required or authorized to collect | 8 | | taxes hereunder
and every person using in this State tangible | 9 | | personal property purchased
at retail from a retailer on or | 10 | | after the effective date hereof shall keep
such records, | 11 | | receipts, invoices and other pertinent books, documents,
| 12 | | memoranda and papers as the Department shall require, in such | 13 | | form as the
Department shall require. The Department may adopt | 14 | | rules that establish
requirements, including record forms and | 15 | | formats, for records required to be
kept and maintained by | 16 | | taxpayers. For purposes of this Section, "records" means
all | 17 | | data maintained by the taxpayer, including data on paper, | 18 | | microfilm,
microfiche or any type of machine-sensible data | 19 | | compilation. For the purpose of
administering and enforcing the | 20 | | provisions hereof, the Department, or any
officer or employee | 21 | | of the Department designated, in writing, by the Director
| 22 | | thereof, may hold investigations and hearings concerning any | 23 | | matters covered
herein and may examine any books, papers, |
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| 1 | | records, documents or memoranda of
any retailer or purchaser | 2 | | bearing upon the sales or purchases of tangible
personal | 3 | | property, the privilege of using which is taxed hereunder, and | 4 | | may
require the attendance of such person or any officer or | 5 | | employee of such
person, or of any person having knowledge of | 6 | | the facts, and may take testimony
and require proof for its | 7 | | information.
| 8 | | A taxpayer is prohibited from introducing into evidence in | 9 | | a proceeding before the Department, Tax Tribunal, or court any | 10 | | books or records that the taxpayer failed to produce to the | 11 | | Department for examination as required by this Section and the | 12 | | rules adopted by the Department unless the books and records | 13 | | are received by the Department no less than 5 business days | 14 | | prior to seeking introduction of the books and records in the | 15 | | proceeding. | 16 | | Any person who fails to keep books and records or fails to | 17 | | produce books and records for examination as required by this | 18 | | Section and the rules adopted by the Department, including any | 19 | | officer or director of any corporation, any partner or member | 20 | | of any partnership, any manager or member of any limited | 21 | | liability company, or any other person responsible for filing | 22 | | returns, shall be liable to pay to the Department, for deposit | 23 | | into the Tax Compliance and Administration Fund, a penalty of | 24 | | $1,000 for the first failure to keep or produce such books and | 25 | | records and penalty of $3,000 for each subsequent failure to | 26 | | keep or produce such books and records. The Department may |
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| 1 | | adopt rules to administer the penalties under this Section. | 2 | | (Source: P.A. 88-480.)
| 3 | | Section 10. The Service Use Tax Act is amended by changing | 4 | | Section 11 as follows:
| 5 | | (35 ILCS 110/11) (from Ch. 120, par. 439.41)
| 6 | | Sec. 11.
Every serviceman required or authorized to collect | 7 | | taxes hereunder
and every user who is subject to the tax | 8 | | imposed by this Act shall keep
such records, receipts, invoices | 9 | | and other pertinent books, documents,
memoranda and papers as | 10 | | the Department shall require, in such form as the
Department | 11 | | shall require. The Department may adopt rules that establish
| 12 | | requirements, including record forms and formats, for records | 13 | | required to be
kept and maintained by taxpayers. For purposes | 14 | | of this Section, "records" means
all data maintained by the | 15 | | taxpayer, including data on paper, microfilm,
microfiche or any | 16 | | type of machine-sensible data compilation. For the purpose of
| 17 | | administering and enforcing the provisions hereof, the | 18 | | Department, or any
officer or employee of the Department | 19 | | designated, in writing, by the Director
thereof, may hold | 20 | | investigations and hearings concerning any matters covered
| 21 | | herein and not otherwise delegated to the Illinois Independent | 22 | | Tax Tribunal and may examine any relevant books, papers, | 23 | | records, documents or
memoranda of any serviceman or any | 24 | | taxable purchaser for use hereunder, and may
require the |
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| 1 | | attendance of such person or any officer or employee of such
| 2 | | person, or of any person having knowledge of the facts, and may | 3 | | take testimony
and require proof for its information.
| 4 | | A taxpayer is prohibited from introducing into evidence in | 5 | | a proceeding before the Department, Tax Tribunal, or court any | 6 | | books or records that the taxpayer failed to produce to the | 7 | | Department for examination as required by this Section and the | 8 | | rules adopted by the Department unless the books and records | 9 | | are received by the Department no less than 5 business days | 10 | | prior to seeking introduction of the books and records in the | 11 | | proceeding. | 12 | | Any person who fails to keep books and records or fails to | 13 | | produce books and records for examination as required by this | 14 | | Section and the rules adopted by the Department, including any | 15 | | officer or director of any corporation, any partner or member | 16 | | of any partnership, any manager or member of any limited | 17 | | liability company, or any other person responsible for filing | 18 | | returns, shall be liable to pay to the Department, for deposit | 19 | | into the Tax Compliance and Administration Fund, a penalty of | 20 | | $1,000 for the first failure to keep or produce such books and | 21 | | records and penalty of $3,000 for each subsequent failure to | 22 | | keep or produce such books and records. The Department may | 23 | | adopt rules to administer the penalties under this Section. | 24 | | (Source: P.A. 97-1129, eff. 8-28-12.)
| 25 | | Section 15. The Service Occupation Tax Act is amended by |
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| 1 | | changing Section 11 as follows:
| 2 | | (35 ILCS 115/11) (from Ch. 120, par. 439.111)
| 3 | | Sec. 11.
Every supplier required or authorized to collect | 4 | | taxes hereunder
and every serviceman making sales of service in | 5 | | this State on or after the
effective date hereof shall keep | 6 | | such records, receipts, invoices and other
pertinent books, | 7 | | documents, memoranda and papers as the Department shall
| 8 | | require, in such form as the Department shall require.
The | 9 | | Department may adopt rules that establish requirements, | 10 | | including record
forms and formats, for records required to be | 11 | | kept and maintained by taxpayers.
For purposes of this Section, | 12 | | "records" means all data maintained by the
taxpayer, including | 13 | | data on paper, microfilm, microfiche or any type of
| 14 | | machine-sensible data compilation. For the purpose of
| 15 | | administering and enforcing the provisions hereof, the | 16 | | Department, or any
officer or employee of the Department | 17 | | designated, in writing, by the
Director thereof, may hold | 18 | | investigations and hearings not otherwise delegated to the | 19 | | Illinois Independent Tax Tribunal concerning any
matters | 20 | | covered herein and may examine any books, papers, records,
| 21 | | documents or memoranda of any supplier or serviceman bearing | 22 | | upon the sales
of services or the sales of tangible personal | 23 | | property to servicemen, and
may require the attendance of such | 24 | | person or any officer or employee of
such person, or of any | 25 | | person having knowledge of the facts, and may take
testimony |
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| 1 | | and require proof for its information.
| 2 | | A taxpayer is prohibited from introducing into evidence in | 3 | | a proceeding before the Department, Tax Tribunal, or court any | 4 | | books or records that the taxpayer failed to produce to the | 5 | | Department for examination as required by this Section and the | 6 | | rules adopted by the Department unless the books and records | 7 | | are received by the Department no less than 5 business days | 8 | | prior to seeking introduction of the books and records in the | 9 | | proceeding. | 10 | | Any person who fails to keep books and records or fails to | 11 | | produce books and records for examination as required by this | 12 | | Section and the rules adopted by the Department, including any | 13 | | officer or director of any corporation, any partner or member | 14 | | of any partnership, any manager or member of any limited | 15 | | liability company, or any other person responsible for filing | 16 | | returns, shall be liable to pay to the Department, for deposit | 17 | | into the Tax Compliance and Administration Fund, a penalty of | 18 | | $1,000 for the first failure to keep or produce such books and | 19 | | records and penalty of $3,000 for each subsequent failure to | 20 | | keep or produce such books and records. The Department may | 21 | | adopt rules to administer the penalties under this Section. | 22 | | (Source: P.A. 97-1129, eff. 8-28-12.)
| 23 | | Section 20. The Retailers' Occupation Tax Act is amended by | 24 | | changing Section 7 as follows:
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| 1 | | (35 ILCS 120/7) (from Ch. 120, par. 446)
| 2 | | Sec. 7.
Every person engaged in the business of selling | 3 | | tangible personal
property at retail in this State shall keep | 4 | | records and books of all sales
of tangible personal property, | 5 | | together with invoices, bills of lading,
sales records, copies | 6 | | of bills of sale, inventories prepared as of December
31 of | 7 | | each year or otherwise annually as has been the custom in the
| 8 | | specific trade and other pertinent papers and documents. Every | 9 | | person who
is engaged in the business of selling tangible | 10 | | personal property at retail
in this State and who, in | 11 | | connection with such business, also engages in
other activities | 12 | | (including, but not limited to, engaging in a service
| 13 | | occupation) shall keep such additional records and books of all | 14 | | such
activities as will accurately reflect the character and | 15 | | scope of such
activities and the amount of receipts realized | 16 | | therefrom.
The Department may adopt rules that establish | 17 | | requirements, including record
forms and formats, for records | 18 | | required to be kept and maintained by taxpayers.
For purposes | 19 | | of this Section, "records" means all data maintained by the
| 20 | | taxpayer, including data on paper, microfilm, microfiche or any | 21 | | type of
machine-sensible data compilation.
| 22 | | All books and records and other papers and documents which | 23 | | are required
by this Act to be kept shall be kept in the | 24 | | English language
and shall, at all times during business hours | 25 | | of the day, be subject to
inspection by the Department or its | 26 | | duly authorized agents and employees.
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| 1 | | To support deductions made on the tax return form, or | 2 | | authorized under
this Act, on account of receipts from isolated | 3 | | or occasional sales of
tangible personal property, on account | 4 | | of receipts from sales of tangible
personal property for | 5 | | resale, on account of receipts from sales to
governmental | 6 | | bodies or other exempted types of purchasers, on account of
| 7 | | receipts from sales of tangible personal property in interstate | 8 | | commerce,
and on account of receipts from any other kind of | 9 | | transaction that is not
taxable under this Act, entries in any | 10 | | books, records or other pertinent
papers or documents of the | 11 | | taxpayer in relation thereto shall be in detail
sufficient to | 12 | | show the name and address of the taxpayer's customer in each
| 13 | | such transaction, the character of every such transaction, the | 14 | | date of
every such transaction, the amount of receipts realized | 15 | | from every such
transaction and such other information as may | 16 | | be necessary to establish the
non-taxable character of such | 17 | | transaction under this Act.
| 18 | | Except in the case of a sale to a purchaser who will always | 19 | | resell and
deliver the property to his customers outside | 20 | | Illinois, anyone claiming
that he has made a nontaxable sale | 21 | | for resale in some form as tangible
personal property shall | 22 | | also keep a record of the purchaser's registration
number or | 23 | | resale number with the Department.
| 24 | | It shall be presumed that all sales of tangible personal | 25 | | property are
subject to tax under this Act until the contrary | 26 | | is established, and the
burden of proving that a transaction is |
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| 1 | | not taxable hereunder shall be upon
the person who would be | 2 | | required to remit the tax to the Department if such
transaction | 3 | | is taxable. In the course of any audit or investigation or
| 4 | | hearing by the Department with reference to a given taxpayer, | 5 | | if the
Department finds that the taxpayer lacks documentary | 6 | | evidence needed to
support the taxpayer's claim to exemption | 7 | | from tax hereunder, the
Department is authorized to notify the | 8 | | taxpayer in writing to produce such
evidence, and the taxpayer | 9 | | shall have 60 days subject to the right in the
Department to | 10 | | extend this period either on request for good cause shown or
on | 11 | | its own motion from the date when such notice is sent to the | 12 | | taxpayer by
certified or registered mail (or delivered to the | 13 | | taxpayer if the notice is
served personally) in which to obtain | 14 | | and produce such evidence for the
Department's inspection, | 15 | | failing which the matter shall be closed, and the
transaction | 16 | | shall be conclusively presumed to be taxable hereunder.
| 17 | | Books and records and other papers reflecting gross | 18 | | receipts received
during any period with respect to which the | 19 | | Department is authorized to
issue notices of tax liability as | 20 | | provided by Sections 4 and 5 of this
Act shall be preserved | 21 | | until the expiration of such period unless the
Department, in | 22 | | writing, shall authorize their destruction or disposal prior
to | 23 | | such expiration.
| 24 | | A taxpayer is prohibited from introducing into evidence in | 25 | | a proceeding before the Department, Tax Tribunal, or court any | 26 | | books or records that the taxpayer failed to produce to the |
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| 1 | | Department for examination as required by this Section and the | 2 | | rules adopted by the Department unless the books and records | 3 | | are received by the Department no less than 5 business days | 4 | | prior to seeking introduction of the books and records in the | 5 | | proceeding. | 6 | | Any person who fails to keep books and records or fails to | 7 | | produce books and records for examination as required by this | 8 | | Section and the rules adopted by the Department, including any | 9 | | officer or director of any corporation, any partner or member | 10 | | of any partnership, any manager or member of any limited | 11 | | liability company, or any other person responsible for filing | 12 | | returns, shall be liable to pay to the Department, for deposit | 13 | | into the Tax Compliance and Administration Fund, a penalty of | 14 | | $1,000 for the first failure to keep or produce such books and | 15 | | records and penalty of $3,000 for each subsequent failure to | 16 | | keep or produce such books and records. The Department may | 17 | | adopt rules to administer the penalties under this Section. | 18 | | (Source: P.A. 88-480.)
| 19 | | Section 25. The Cigarette Tax Act is amended by changing | 20 | | Sections 12, 13, 14, 15, 18b, and 18c and by adding Sections | 21 | | 13a, 15a, and 18d as follows:
| 22 | | (35 ILCS 130/12) (from Ch. 120, par. 453.12)
| 23 | | Sec. 12.
Every distributor or secondary distributor who is | 24 | | required to procure a license under this
Act and who purchases |
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| 1 | | cigarettes for shipment into Illinois from a point
outside this | 2 | | State shall procure invoices in duplicate covering each such
| 3 | | shipment , shall make the invoices available for inspection upon | 4 | | demand by a duly authorized employee of the Department , and | 5 | | shall , if the Department so requires, furnish one copy of each | 6 | | such invoice to the Department
at the time of filing a return | 7 | | or a report required by this Act.
| 8 | | (Source: P.A. 96-1027, eff. 7-12-10.)
| 9 | | (35 ILCS 130/13) (from Ch. 120, par. 453.13)
| 10 | | Sec. 13.
Whenever any original package of cigarettes is | 11 | | found in the place
of business or in the possession of any | 12 | | person who is not a licensed
distributor under this Act without | 13 | | proper stamps affixed thereto, or an
authorized substitute | 14 | | therefor imprinted thereon, underneath the sealed
transparent | 15 | | wrapper of such original package, as required by this Act, the
| 16 | | prima facie presumption shall arise that such original package | 17 | | of
cigarettes is kept therein or is held by such person in | 18 | | violation of the
provisions of this Act. If a presumption is | 19 | | raised, the Department may, in addition to the penalties | 20 | | imposed by Sections 18b and 18c of this Act and any other civil | 21 | | or criminal penalties provided for in this Act, assess tax | 22 | | penalty, and interest on the original packages of cigarettes.
| 23 | | (Source: Laws 1953, p. 255.)
| 24 | | (35 ILCS 130/13a new) |
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| 1 | | Sec. 13a. Contraband cigarettes. Whenever a retailer | 2 | | obtains original packages of cigarettes from an in-state or | 3 | | out-of-state distributor or person that is not licensed as a | 4 | | distributor under this Act or the Cigarette Use Tax Act, a | 5 | | prima facie presumption shall arise that such original packages | 6 | | of cigarettes are contraband and are possessed by such retailer | 7 | | or were possessed by such retailer in violation of the | 8 | | provisions of this Act and subject to the penalties imposed by | 9 | | Sections 18b and 18c of this Act. Invoices or other documents | 10 | | kept in the normal course of business in the possession of a | 11 | | retailer reflecting purchases of original packages of | 12 | | cigarettes from an unlicensed in-state or out-of-state | 13 | | distributor or person or invoices or other documents kept in | 14 | | the normal course of business obtained by the Department from | 15 | | an in-state or out-of-state distributor or person, are | 16 | | sufficient to raise the presumption that such original packages | 17 | | of cigarettes are contraband and are possessed, or were | 18 | | possessed, by such retailer in violation of the provisions of | 19 | | this Act and the retailer is subject to the penalties imposed | 20 | | by Sections 18b and 18c. If a presumption is raised, the | 21 | | Department may, in addition to the penalties imposed by | 22 | | Sections 18b and 18c and any other civil or criminal penalties | 23 | | provided for in this Act, assess tax penalty, and interest on | 24 | | the original packages of cigarettes.
| 25 | | (35 ILCS 130/14) (from Ch. 120, par. 453.14)
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| 1 | | Sec. 14.
Any person required by this Act to keep records of | 2 | | any kind whatsoever,
who shall fail to keep the records so | 3 | | required or who shall falsify such
records, shall be guilty of | 4 | | a Class 4 felony. If a person fails to produce the records for | 5 | | inspection by the Department upon request, a prima facie | 6 | | presumption shall arise that the person has failed to keep the | 7 | | records so required. A person who is unable to rebut this | 8 | | presumption is in violation of this Act and is subject to the | 9 | | penalties provided in this Section.
| 10 | | (Source: P.A. 83-1428.)
| 11 | | (35 ILCS 130/15) (from Ch. 120, par. 453.15)
| 12 | | Sec. 15.
Any person who shall fail to safely maintain and | 13 | | preserve the records required
by Sections Section 11 , and | 14 | | Section 11a , 11b, and 11c of this Act for the period of 3 three | 15 | | years, as required therein,
in such manner as to insure | 16 | | permanency and accessibility for inspection by the
Department, | 17 | | shall be guilty of a business offense and may be fined up to
| 18 | | $5,000. If a person fails to produce the records for inspection | 19 | | by the Department upon request, a prima facie presumption shall | 20 | | arise that the person has failed to preserve the records so | 21 | | required. A person who is unable to rebut this presumption is | 22 | | in violation of this Act and is subject to the penalties | 23 | | provided in this Section.
| 24 | | (Source: P.A. 96-1027, eff. 7-12-10.)
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| 1 | | (35 ILCS 130/15a new) | 2 | | Sec. 15a. Failure to keep and produce books and records. | 3 | | Any person who or any officer or director of any corporation, | 4 | | partner, or member of any partnership, manager or member of a | 5 | | limited liability company, or person responsible for filing | 6 | | returns that fails to keep books and records or fails to | 7 | | produce books and records for inspection, as required by | 8 | | Sections 11, 11a, 11b, and 11c of this Act, shall be liable to | 9 | | pay to the Department, for deposit in the Tax Compliance and | 10 | | Administration Fund, a penalty of $1,000 for the first failure | 11 | | to keep books and records or failure to produce books and | 12 | | records for inspection, as required by Sections 11, 11a, 11b, | 13 | | and 11c, and $3000 for each subsequent failure to keep books | 14 | | and records or failure to produce books and records for | 15 | | inspection, as required by Sections 11, 11a, 11b, and 11c. The | 16 | | Department may adopt rules to administer the penalties under | 17 | | this Section. | 18 | | A taxpayer shall be prohibited from introducing into | 19 | | evidence in a proceeding before the Department, Tax Tribunal, | 20 | | or a court any books and records that the taxpayer failed to | 21 | | produce to the Department for inspection as required by | 22 | | Sections 11, 11a, 11b, and 11c unless the books and records are | 23 | | received by the Department no less than 5 business days prior | 24 | | to seeking introduction of the books and records into the | 25 | | record of the proceeding.
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| 1 | | (35 ILCS 130/18b) (from Ch. 120, par. 453.18b)
| 2 | | Sec. 18b. Possession of more than 100 original packages of | 3 | | contraband cigarettes; penalty. With the exception of licensed | 4 | | distributors and transporters, as defined in Section 9c of this | 5 | | Act, possessing unstamped original packages of cigarettes, and | 6 | | licensed distributors possessing original packages of | 7 | | cigarettes that bear a tax stamp of another state or taxing | 8 | | jurisdiction, anyone possessing
or having possessed contraband | 9 | | cigarettes contained in original packages is liable
to pay, to | 10 | | the Department for deposit in the Tax Compliance and | 11 | | Administration Fund, a penalty of
$25 for each such package of | 12 | | cigarettes in excess of 100 packages, unless reasonable cause | 13 | | can be established by the person upon whom the penalty is | 14 | | imposed. This penalty is in addition to the taxes imposed by | 15 | | this Act. Reasonable cause shall be determined in each | 16 | | situation in accordance with rules adopted by the Department. | 17 | | The provisions of the Uniform Penalty and Interest Act do not | 18 | | apply to this Section.
| 19 | | (Source: P.A. 96-782, eff. 1-1-10.)
| 20 | | (35 ILCS 130/18c)
| 21 | | Sec. 18c.
Possession of
not less than 10 and not
more than
| 22 | | 100 original packages of contraband cigarettes; penalty. With | 23 | | the exception of licensed distributors and transporters, as | 24 | | defined in Section 9c of this Act, possessing unstamped | 25 | | original packages of cigarettes, and licensed distributors |
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| 1 | | possessing original packages of cigarettes that bear a tax | 2 | | stamp of another state or taxing jurisdiction,
anyone | 3 | | possessing or having possessed
not less than 10
and not more | 4 | | than 100 packages of
contraband cigarettes contained in | 5 | | original packages is
liable to pay to the Department, for | 6 | | deposit into the Tax Compliance and
Administration Fund, a | 7 | | penalty of $15 $10
for each such package of
cigarettes, unless | 8 | | reasonable cause can be established by the person upon whom
the | 9 | | penalty is imposed. Reasonable cause shall be determined in | 10 | | each situation
in accordance with rules adopted by the | 11 | | Department. The provisions of the Uniform Penalty and Interest | 12 | | Act do not apply to this Section.
| 13 | | (Source: P.A. 96-782, eff. 1-1-10.)
| 14 | | (35 ILCS 130/18d new) | 15 | | Sec. 18d. Cigarette package sizes; sale of individual or | 16 | | loose cigarettes prohibited. Cigarettes may only be sold in | 17 | | packages of 20 or 25 cigarettes. The sale of individual or | 18 | | loose cigarettes is prohibited. Any person who violates this | 19 | | Section of the Act shall be liable to pay to the Department, | 20 | | for deposit in the Tax Compliance and Administration Fund, a | 21 | | penalty of $1,000 for the first violation and $3,000 for any | 22 | | subsequent violation. Any person who violates this Section | 23 | | shall be guilty of a Class 4 felony. The Department may adopt | 24 | | rules to administer the penalties under this Section. |
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| 1 | | Section 30. The Cigarette Use Tax Act is amended by | 2 | | changing Sections 12, 22, 23, 25a, and 25b and by adding | 3 | | Sections 8a, 23a, and 25c as follows: | 4 | | (35 ILCS 135/8a new) | 5 | | Sec. 8a. Contraband cigarettes. Whenever any person | 6 | | obtains original packages of cigarettes from an in-state or | 7 | | out-of-state distributor or person that is not licensed as a | 8 | | distributor under this Act or the Cigarette Tax Act, a prima | 9 | | facie presumption shall arise that such original packages of | 10 | | cigarettes are contraband and are possessed or were possessed | 11 | | by such person in violation of the provisions of this Act and | 12 | | subject to the penalties imposed by Sections 25a and 25b. | 13 | | Invoices or other documents kept in the normal course of | 14 | | business in the possession of a person reflecting purchases of | 15 | | original packages of cigarettes from an unlicensed in-state or | 16 | | out-of-state distributor or person or invoices or other | 17 | | documents kept in the normal course of business obtained by the | 18 | | Department from an in-state or out-of-state distributor or | 19 | | person, are sufficient to raise the presumption that such | 20 | | original packages of cigarettes are contraband and are | 21 | | possessed, or were possessed, by such person in violation of | 22 | | the provisions of this Act and the person is subject to the | 23 | | penalties imposed by Sections 25a and 25b. If a presumption is | 24 | | raised, the Department may, in addition to the penalties | 25 | | imposed by Sections 25a and 25b and any other civil or criminal |
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| 1 | | penalties provided for in this Act, assess tax penalty and | 2 | | interest on the original packages of cigarettes.
| 3 | | (35 ILCS 135/12) (from Ch. 120, par. 453.42)
| 4 | | Sec. 12. Declaration of possession of cigarettes on which | 5 | | tax not paid.
| 6 | | (a) When cigarettes are acquired for use in this State by a | 7 | | person
(including a distributor as well as any other person), | 8 | | who did not pay the
tax herein imposed to a distributor, the | 9 | | person, within 30 days after
acquiring the cigarettes, shall | 10 | | file with the Department a return
declaring the possession of | 11 | | the cigarettes and shall transmit with
the
return to the | 12 | | Department the tax imposed by this Act.
| 13 | | (b) On receipt of the return and payment of the tax as | 14 | | required by
paragraph (a), the Department may furnish the | 15 | | person with a suitable tax stamp
to be
affixed to the package | 16 | | of cigarettes upon which the tax has been paid
if the | 17 | | Department determines that the cigarettes still exist.
| 18 | | (c) The return referred to in paragraph
(a) shall
contain | 19 | | the name and address of the person possessing the cigarettes
| 20 | | involved, the location of the cigarettes and the quantity, | 21 | | brand
name,
place, and date of the acquisition of the | 22 | | cigarettes.
| 23 | | (d) Nothing in this Section shall permit a secondary | 24 | | distributor to purchase unstamped original packages of | 25 | | cigarettes or to purchase original packages of cigarettes from |
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| 1 | | a person other than a licensed distributor. | 2 | | (e) Any distributor who violates this Section shall be | 3 | | liable to pay to the Department, for deposit in the Tax | 4 | | Compliance and Administration Fund, a penalty of $1,000 for the | 5 | | first violation and $3,000 for any subsequent violation. The | 6 | | Department may adopt rules to administer the penalties under | 7 | | this Section. The Department may, in addition to the penalties | 8 | | imposed by this Section, and any other civil or criminal | 9 | | penalties provided for in this Act, assess tax, penalty, and | 10 | | interest on the original packages of cigarettes. | 11 | | (Source: P.A. 96-1027, eff. 7-12-10.)
| 12 | | (35 ILCS 135/22) (from Ch. 120, par. 453.52)
| 13 | | Sec. 22.
| 14 | | Any person required by this Act to maintain or keep records | 15 | | of any kind whatsoever,
who shall fail to keep the records so | 16 | | required or who shall falsify such
records, shall be guilty of | 17 | | a Class 4 Felony A misdemeanor . If a person fails to produce | 18 | | the records for inspection by the Department upon request, a | 19 | | prima facie presumption shall arise that the person has failed | 20 | | to keep the records so required. A person who is unable to | 21 | | rebut this presumption is in violation of this Act and is | 22 | | subject to the penalties provided in this Section.
| 23 | | This Section shall not apply if the violation in a | 24 | | particular case also
constitutes a criminal violation of the | 25 | | Cigarette Tax Act.
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| 1 | | (Source: P.A. 77-2229.)
| 2 | | (35 ILCS 135/23) (from Ch. 120, par. 453.53)
| 3 | | Sec. 23.
Any person who shall fail to safely preserve the | 4 | | records required
by Section 15 and Section 15a of this Act for | 5 | | the period of three (3) years, as required
therein, in such | 6 | | manner as to insure permanency and accessibility for
inspection | 7 | | by the Department, shall be guilty of a business offense and | 8 | | may
be fined up to $5,000 One Thousand Dollars ($1000) . If a | 9 | | person fails to produce the records for inspection by the | 10 | | Department upon request, a prima facie presumption shall arise | 11 | | that the person has failed to keep the records so required. A | 12 | | person who is unable to rebut this presumption is in violation | 13 | | of this Act and is subject to the penalties provided in this | 14 | | Section.
| 15 | | This Section shall not apply if the violation in a | 16 | | particular case also
constitutes a criminal violation of the | 17 | | Cigarette Tax Act.
| 18 | | (Source: P.A. 96-1027, eff. 7-12-10.)
| 19 | | (35 ILCS 135/23a new) | 20 | | Sec. 23a. Failure to keep and produce books and records. | 21 | | Any person who or any officer or director of any corporation, | 22 | | partner, or member of any partnership, manager or member of a | 23 | | limited liability company, or person responsible for filing | 24 | | returns that fails to keep books and records or fails to |
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| 1 | | produce books and records for inspection, as required by | 2 | | Sections 15 and 15a of this Act, shall be liable to pay to the | 3 | | Department, for deposit in the Tax Compliance and | 4 | | Administration Fund, a penalty of $1,000 for the first failure | 5 | | to keep books and records or failure to produce books and | 6 | | records for inspection, as required by Sections 15 and 15a, and | 7 | | $3,000 for each subsequent failure to keep books and records or | 8 | | failure to produce books and records for inspection, as | 9 | | required by Sections 15 and 15a. The Department may adopt rules | 10 | | to administer the penalties under this Section. | 11 | | A taxpayer shall be prohibited from introducing into | 12 | | evidence in a proceeding before the Department, Tax Tribunal, | 13 | | or a court any books and records that the taxpayer failed to | 14 | | produce to the Department for inspection as required by | 15 | | Sections 15 and 15a unless the books and records are received | 16 | | by the Department no less than 5 business days prior to seeking | 17 | | introduction of the books and records into the record of the | 18 | | proceeding.
| 19 | | (35 ILCS 135/25a) (from Ch. 120, par. 453.55a)
| 20 | | Sec. 25a. Possession of more than 100 original packages of | 21 | | contraband cigarettes; penalty. With the exception of licensed | 22 | | distributors or transporters, as defined in Section 9c of the | 23 | | Cigarette Tax Act, possessing unstamped original packages of | 24 | | cigarettes, and licensed distributors possessing original | 25 | | packages of cigarettes that bear a tax stamp of another state |
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| 1 | | or taxing jurisdiction, anyone possessing or having possessed
| 2 | | more than 100 packages of contraband cigarettes contained in | 3 | | original packages is liable
to pay, to the Department for | 4 | | deposit into the Tax Compliance and Administration Fund, a | 5 | | penalty of
$25 for each such package of cigarettes in excess of | 6 | | 100 packages, unless reasonable cause can be established by the | 7 | | person upon whom the penalty is imposed. Reasonable cause shall | 8 | | be determined in each situation in accordance with rules | 9 | | adopted by the Department. The provisions of the Uniform | 10 | | Penalty and Interest Act do not apply to this Section.
| 11 | | (Source: P.A. 96-782, eff. 1-1-10.)
| 12 | | (35 ILCS 135/25b)
| 13 | | Sec. 25b.
Possession of
not less than 10 and not
more than
| 14 | | 100 original packages not tax stamped or
improperly tax | 15 | | stamped; penalty. With the exception of licensed distributors | 16 | | and transporters, as defined in Section 9c of the Cigarette Tax | 17 | | Act, possessing unstamped packages of cigarettes, and licensed | 18 | | distributors possessing original packages of cigarettes that | 19 | | bear a tax stamp of another state or taxing jurisdiction,
| 20 | | anyone possessing or having possessed
not less than 10
and not | 21 | | more than 100 packages of
contraband cigarettes contained in | 22 | | original packages is
liable to pay to the Department, for | 23 | | deposit into the Tax Compliance and
Administration Fund, a | 24 | | penalty of $20
for each such package of
cigarettes, unless | 25 | | reasonable cause can be established by the person upon whom
the |
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| 1 | | penalty is imposed. Reasonable cause shall be determined in | 2 | | each situation
in accordance with rules adopted by the | 3 | | Department. Any person who purchases and possesses a total of 9 | 4 | | or fewer original packages of unstamped cigarettes per month is | 5 | | exempt from the penalties of this Section. The provisions of | 6 | | the Uniform Penalty and Interest Act do not apply to this | 7 | | Section.
| 8 | | (Source: P.A. 96-782, eff. 1-1-10.)
| 9 | | (35 ILCS 135/25c new) | 10 | | Sec. 25c. Cigarette package sizes; sale of individual or | 11 | | loose cigarettes prohibited. Cigarettes may only be sold in | 12 | | packages of 20 or 25 cigarettes. The sale of individual or | 13 | | loose cigarettes is prohibited. Any person who violates this | 14 | | Section shall be liable to pay to the Department, for deposit | 15 | | in the Tax Compliance and Administration Fund, a penalty of | 16 | | $1,000 for the first violation and $3,000 for any subsequent | 17 | | violation. Any person who violates this Section shall be guilty | 18 | | of a Class 4 felony. This Section shall not apply if the | 19 | | violation in a particular case also constitutes a violation of | 20 | | the Cigarette Tax Act. | 21 | | Section 35. The Tobacco Products Tax Act of 1995 is amended | 22 | | by changing Sections 10-25, 10-35, 10-37, 10-40, and 10-50 and | 23 | | by adding Sections 10-35a and 10-38 as follows:
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| 1 | | (35 ILCS 143/10-25)
| 2 | | Sec. 10-25. License actions. | 3 | | (a) The Department may, after notice and a hearing,
revoke, | 4 | | cancel, or suspend the license of any distributor or retailer | 5 | | who violates any of
the provisions of this Act , fails to keep | 6 | | books and records as required under this Act, fails to make | 7 | | books and records available for inspection upon demand by a | 8 | | duly authorized employee of the Department, or violates a rule | 9 | | or regulation of the Department for the administration and | 10 | | enforcement of this Act . The notice shall specify the alleged | 11 | | violation or
violations upon which the revocation, | 12 | | cancellation, or suspension proceeding is
based.
| 13 | | (b) The Department may revoke, cancel, or suspend the | 14 | | license of any
distributor for a violation of the Tobacco | 15 | | Product Manufacturers' Escrow
Enforcement Act as provided in | 16 | | Section 20 of that Act.
| 17 | | (c) If the retailer has a training program that facilitates | 18 | | compliance with minimum-age tobacco laws, the Department shall | 19 | | suspend for 3 days the license of that retailer for a fourth or | 20 | | subsequent violation of the Prevention of Tobacco Use by Minors | 21 | | and Sale and Distribution of Tobacco Products Act, as provided | 22 | | in subsection (a) of Section 2 of that Act. For the purposes of | 23 | | this Section, any violation of subsection (a) of Section 2 of | 24 | | the Prevention of Tobacco Use by Minors and Sale and | 25 | | Distribution of Tobacco Products Act occurring at the | 26 | | retailer's licensed location, during a 24-month period, shall |
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| 1 | | be counted as a violation against the retailer. | 2 | | If the retailer does not have a training program that | 3 | | facilitates compliance with minimum-age tobacco laws, the | 4 | | Department shall suspend for 3 days the license of that | 5 | | retailer for a second violation of the Prevention of Tobacco | 6 | | Use by Minors and Sale and Distribution of Tobacco Products | 7 | | Act, as provided in subsection (a-5) of Section 2 of that Act. | 8 | | If the retailer does not have a training program that | 9 | | facilitates compliance with minimum-age tobacco laws, the | 10 | | Department shall suspend for 7 days the license of that | 11 | | retailer for a third violation of the Prevention of Tobacco Use | 12 | | by Minors and Sale and Distribution of Tobacco Products Act, as | 13 | | provided in subsection (a-5) of Section 2 of that Act. | 14 | | If the retailer does not have a training program that | 15 | | facilitates compliance with minimum-age tobacco laws, the | 16 | | Department shall suspend for 30 days the license of a retailer | 17 | | for a fourth or subsequent violation of the Prevention of | 18 | | Tobacco Use by Minors and Sale and Distribution of Tobacco | 19 | | Products Act, as provided in subsection (a-5) of Section 2 of | 20 | | that Act. | 21 | | A training program that facilitates compliance with | 22 | | minimum-age tobacco laws must include at least the following | 23 | | elements: (i) it must explain that only individuals displaying | 24 | | valid identification demonstrating that they are 18 years of | 25 | | age or older shall be eligible to purchase cigarettes or | 26 | | tobacco products and (ii) it must explain where a clerk can |
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| 1 | | check identification for a date of birth. The training may be | 2 | | conducted electronically. Each retailer that has a training | 3 | | program shall require each employee who completes the training | 4 | | program to sign a form attesting that the employee has received | 5 | | and completed tobacco training. The form shall be kept in the | 6 | | employee's file and may be used to provide proof of training. | 7 | | (d) The Department may, by application to any circuit | 8 | | court, obtain an injunction
restraining any person who engages | 9 | | in business as a distributor of tobacco
products without a | 10 | | license (either because his or her license has been revoked,
| 11 | | canceled, or suspended or because of a failure to obtain a | 12 | | license in the first
instance) from engaging in that business | 13 | | until that person, as if that person
were a new applicant for a | 14 | | license, complies with all of the conditions,
restrictions, and | 15 | | requirements of Section 10-20 of this Act and qualifies for
and | 16 | | obtains a license. Refusal or neglect to obey the order of the | 17 | | court may
result in punishment for contempt.
| 18 | | (Source: P.A. 98-1055, eff. 1-1-16; 99-192, eff. 1-1-16 .)
| 19 | | (35 ILCS 143/10-35)
| 20 | | Sec. 10-35. Record keeping. | 21 | | (a) Every distributor, as defined in Section 10-5,
shall | 22 | | keep complete and accurate records of tobacco products held, | 23 | | purchased,
manufactured, brought in or caused to be brought in | 24 | | from without the State, and
tobacco products sold, or otherwise | 25 | | disposed of, and shall preserve and keep
all invoices, bills of |
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| 1 | | lading, sales records, and copies of bills
of sale, the | 2 | | wholesale price for tobacco products sold or otherwise disposed
| 3 | | of, an inventory of tobacco products prepared as of December 31 | 4 | | of each year or
as of the last day of the distributor's fiscal | 5 | | year if he or she files federal
income tax returns on the basis | 6 | | of a fiscal year, and other pertinent papers
and documents | 7 | | relating to the manufacture, purchase, sale, or disposition of
| 8 | | tobacco products. Every sales invoice issued by a licensed | 9 | | distributor to a retailer in this State shall contain the | 10 | | distributor's Tobacco Products License number unless the | 11 | | distributor has been granted a waiver by the Department in | 12 | | response to a written request in cases where (i) the | 13 | | distributor sells little cigars or other tobacco products only | 14 | | to licensed retailers that are wholly-owned by the distributor | 15 | | or owned by a wholly-owned subsidiary of the distributor; (ii) | 16 | | the licensed retailer obtains little cigars or other tobacco | 17 | | products only from the distributor requesting the waiver; and | 18 | | (iii) the distributor affixes the tax stamps to the original | 19 | | packages of little cigars or has or will pay the tax on the | 20 | | other tobacco products sold to the licensed retailer. The | 21 | | distributor shall file a written request with the Department, | 22 | | and, if the Department determines that the distributor meets | 23 | | the conditions for a waiver, the Department shall grant the | 24 | | waiver. | 25 | | (b) Every retailer, as defined in Section 10-5, whether or | 26 | | not the retailer has obtained a retailer's license pursuant to |
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| 1 | | Section 4g, shall keep complete and accurate records of tobacco | 2 | | products held, purchased, sold, or otherwise disposed of, and | 3 | | shall preserve and keep all invoices, bills of lading, sales | 4 | | records, and copies of bills of sale, returns and other | 5 | | pertinent papers and documents relating to the purchase, sale, | 6 | | or disposition of tobacco products. Such records need not be | 7 | | maintained on the licensed premises, but must be maintained in | 8 | | the State of Illinois; however, if access is available | 9 | | electronically, the records may be maintained out of state. | 10 | | However, all original invoices or copies thereof covering | 11 | | purchases of tobacco products must be retained on the licensed | 12 | | premises for a period of 90 days after such purchase, unless | 13 | | the Department has granted a waiver in response to a written | 14 | | request in cases where records are kept at a central business | 15 | | location within the State of Illinois or in cases where records | 16 | | that are available electronically are maintained out of state. | 17 | | The Department shall adopt rules regarding the eligibility for | 18 | | a waiver, revocation of a waiver, and requirements and | 19 | | standards for maintenance and accessibility of records located | 20 | | at a central location out-of-State pursuant to a waiver | 21 | | provided under this Section. | 22 | | (c) Books, records, papers, and documents that are
required | 23 | | by this Act to be kept shall, at all times during the usual | 24 | | business
hours of the day, be subject to inspection by the | 25 | | Department or its duly
authorized agents and employees. The | 26 | | books, records, papers, and documents for
any period with |
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| 1 | | respect to which the Department is authorized to issue a notice
| 2 | | of tax liability shall be preserved until the expiration of | 3 | | that period.
| 4 | | (Source: P.A. 98-1055, eff. 1-1-16; 99-192, eff. 1-1-16 .)
| 5 | | (35 ILCS 143/10-35a new) | 6 | | Sec. 10-35a. Failure to keep and produce books and | 7 | | records. Any person who or any officer or director of any | 8 | | corporation, partner, or member of any partnership, manager or | 9 | | member of a limited liability company, or person responsible | 10 | | for filing returns that fails to keep books and records or | 11 | | fails to produce books and records for inspection, as required | 12 | | by Section 10-35, shall be liable to pay to the Department, for | 13 | | deposit in the Tax Compliance and Administration Fund, a | 14 | | penalty of $1,000 for the first failure to keep books and | 15 | | records or failure to produce books and records for inspection, | 16 | | as required by Section 10-35, and $3,000 for each subsequent | 17 | | failure to keep books and records or failure to produce books | 18 | | and records for inspection, as required by Section 10-35. The | 19 | | Department may adopt rules to administer the penalties under | 20 | | this Section. | 21 | | A taxpayer shall be prohibited from introducing into | 22 | | evidence in a proceeding before the Department, Tax Tribunal, | 23 | | or a court any books and records that the taxpayer failed to | 24 | | produce to the Department for inspection as required by Section | 25 | | 10-35 unless the books and records are received by the |
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| 1 | | Department no less than 5 business days prior to seeking | 2 | | introduction of the books and records into the record of the | 3 | | proceeding. | 4 | | (35 ILCS 143/10-37) | 5 | | Sec. 10-37. Proof of payment of tax imposed by this Act. | 6 | | Every licensed distributor of tobacco products in this State is | 7 | | required to show proof of the tax having been paid as required | 8 | | by this Act by displaying its Tobacco Products License number | 9 | | on every sales invoice issued to a retailer in this State. No | 10 | | retailer shall possess tobacco products without either a proper | 11 | | invoice indicating that the tobacco products tax was paid by a | 12 | | distributor for the tobacco products in the retailer's | 13 | | possession or other proof that the tax was paid by the retailer | 14 | | if it has purchased tobacco products on which tax has not been | 15 | | paid as required by this Act. Failure to comply with the | 16 | | provisions of this paragraph may be grounds for revocation of a | 17 | | distributor's or retailer's license in accordance with Section | 18 | | 10-25 of this Act or Section 6 of the Cigarette Tax Act. In | 19 | | addition, the Department may impose a civil penalty not to | 20 | | exceed $1,000 for the first violation and $3,000 for each | 21 | | subsequent violation, which shall be deposited into the Tax | 22 | | Compliance and Administration Fund.
| 23 | | (Source: P.A. 98-1055, eff. 1-1-16 .) | 24 | | (35 ILCS 143/10-38 new) |
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| 1 | | Sec. 10-38. Presumption for out-of-state or unlicensed | 2 | | distributors. Whenever any person obtains tobacco products | 3 | | from an in-state or out-of-state distributor or person that is | 4 | | not licensed as a distributor under this Act, a prima facie | 5 | | presumption shall arise that the tax imposed by this Act on | 6 | | such tobacco products has not been paid in violation of this | 7 | | Act. Invoices or other documents kept in the normal course of | 8 | | business in the possession of a person reflecting purchases of | 9 | | tobacco products from an unlicensed in-state or out-of-state | 10 | | distributor or person or invoices or other documents kept in | 11 | | the normal course of business obtained by the Department from | 12 | | in-state or out-of-state distributors or persons, are | 13 | | sufficient to raise the presumption that the tax imposed by | 14 | | this Act has not been paid. If a presumption is raised, the | 15 | | Department may assess tax penalty and interest on the tobacco | 16 | | products. In addition, any person who violates this Section | 17 | | shall be liable to pay to the Department, for deposit in the | 18 | | Tax Compliance and Administration Fund, a penalty of $1,000 for | 19 | | the first violation and $3,000 for any subsequent violation. | 20 | | The Department may adopt rules to administer the penalties | 21 | | under this Section.
| 22 | | (35 ILCS 143/10-40)
| 23 | | Sec. 10-40. Invoices. Every distributor or other person who | 24 | | purchases tobacco products for resale
for shipment into | 25 | | Illinois from a point outside Illinois shall procure invoices
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| 1 | | in duplicate covering each shipment and shall make the invoices | 2 | | available for inspection upon demand by a duly authorized | 3 | | employee of the Department, and shall , if the Department so
| 4 | | requires, furnish one copy of each invoice to the Department at | 5 | | the time
of filing the return required by this Act.
| 6 | | (Source: P.A. 89-21, eff. 6-6-95.)
| 7 | | (35 ILCS 143/10-50)
| 8 | | Sec. 10-50. Violations and penalties. When the amount due | 9 | | is under $300,
any distributor who fails to file a return, | 10 | | willfully fails or refuses to
make any payment to the | 11 | | Department of the tax imposed by this Act, or files
a | 12 | | fraudulent return, or any officer or agent of a corporation | 13 | | engaged in the
business of distributing tobacco products to | 14 | | retailers and consumers
located in this State who signs a | 15 | | fraudulent
return filed on behalf of the corporation, or any | 16 | | accountant or other agent
who knowingly enters false | 17 | | information on the return of any taxpayer under this
Act is | 18 | | guilty of a Class 4 felony.
| 19 | | Any person who violates any provision of Section 10-20, | 20 | | 10-21, or 10-22 of this Act, fails
to keep books and records as | 21 | | required under this Act, or willfully violates a
rule or | 22 | | regulation of the Department for the administration and | 23 | | enforcement of
this Act is guilty of a Class 4 felony. A person | 24 | | commits a separate offense on
each day that he or she engages | 25 | | in business in violation of Section 10-20, 10-21, or 10-22 of
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| 1 | | this Act. If a person fails to produce the books and records | 2 | | for inspection by the Department upon request, a prima facie | 3 | | presumption shall arise that the person has failed to keep | 4 | | books and records as required under this Act. A person who is | 5 | | unable to rebut this presumption is in violation of this Act | 6 | | and is subject to the penalties provided in this Section.
| 7 | | When the amount due is under $300, any person who accepts | 8 | | money that is due
to the Department under this Act from a | 9 | | taxpayer for the purpose of acting as
the taxpayer's agent to | 10 | | make the payment to the Department, but who fails to
remit the | 11 | | payment to the Department when due, is guilty of a Class 4 | 12 | | felony.
| 13 | | Any person who violates any provision of Sections 10-20, | 14 | | 10-21 and 10-22 of this Act, fails to keep books and records as | 15 | | required under this Act, or willfully violates a rule or | 16 | | regulation of the Department for the administration and | 17 | | enforcement of this Act is guilty of a business offense and may | 18 | | be fined up to $5,000. If a person fails to produce books and | 19 | | records for inspection by the Department upon request, a prima | 20 | | facie presumption shall arise that the person has failed to | 21 | | keep books and records as required under this Act. A person who | 22 | | is unable to rebut this presumption is in violation of this Act | 23 | | and is subject to the penalties provided in this Section. A | 24 | | person commits a separate offense on each day that he or she | 25 | | engages in business in violation of Sections 10-20, 10-21 and | 26 | | 10-22 of this Act. |
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| 1 | | When the amount due is $300 or more, any distributor who | 2 | | files,
or causes to be filed, a fraudulent return, or any | 3 | | officer or agent of a
corporation engaged in the business of | 4 | | distributing tobacco products
to retailers and consumers | 5 | | located in this State who files or causes to be
filed or signs | 6 | | or causes
to be signed a fraudulent return filed on behalf of | 7 | | the corporation, or
any accountant or other agent who knowingly | 8 | | enters false information on
the return of any taxpayer under | 9 | | this Act is guilty of a Class 3 felony.
| 10 | | When the amount due is $300 or more, any person engaged in | 11 | | the business
of distributing tobacco products to retailers and | 12 | | consumers located in this
State who fails to file a return,
| 13 | | willfully fails or refuses to make any payment to the | 14 | | Department of the tax
imposed by this Act, or accepts money | 15 | | that is due to the Department under
this Act from a taxpayer | 16 | | for the purpose of acting as the taxpayer's agent to
make | 17 | | payment to the Department but fails to remit such payment to | 18 | | the
Department when due is guilty of a Class 3 felony.
| 19 | | When the amount due is under $300, any retailer who fails | 20 | | to file a return, willfully fails or refuses to make any | 21 | | payment to the Department of the tax imposed by this Act, or | 22 | | files a fraudulent return, or any officer or agent of a | 23 | | corporation engaged in the retail business of selling tobacco | 24 | | products to purchasers of tobacco products for use and | 25 | | consumption located in this State who signs a fraudulent return | 26 | | filed on behalf of the corporation, or any accountant or other |
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| 1 | | agent who knowingly enters false information on the return of | 2 | | any taxpayer under this Act is guilty of a Class A misdemeanor | 3 | | for a first offense and a Class 4 felony for each subsequent | 4 | | offense. | 5 | | When the amount due is $300 or more, any retailer who fails | 6 | | to file a return, willfully fails or refuses to make any | 7 | | payment to the Department of the tax imposed by this Act, or | 8 | | files a fraudulent return, or any officer or agent of a | 9 | | corporation engaged in the retail business of selling tobacco | 10 | | products to purchasers of tobacco products for use and | 11 | | consumption located in this State who signs a fraudulent return | 12 | | filed on behalf of the corporation, or any accountant or other | 13 | | agent who knowingly enters false information on the return of | 14 | | any taxpayer under this Act is guilty of a Class 4 felony. | 15 | | Any person whose principal place of business is in this | 16 | | State and
who is charged with a violation under this Section | 17 | | shall be
tried in the county where his or her principal place | 18 | | of business is
located unless he or she asserts a right to be | 19 | | tried in another venue.
If the taxpayer does not have his or | 20 | | her principal place of business
in this State, however, the | 21 | | hearing must be held in Sangamon County unless
the taxpayer | 22 | | asserts a right to be tried in another venue.
| 23 | | Any taxpayer or agent of a taxpayer who with the intent to | 24 | | defraud
purports to make a payment due to the Department by | 25 | | issuing or delivering a
check or other order upon a real or | 26 | | fictitious depository for the payment
of money, knowing that it |
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| 1 | | will not be paid by the depository, is
guilty of a deceptive | 2 | | practice in violation of Section 17-1 of the Criminal
Code of | 3 | | 2012.
| 4 | | A prosecution for a violation described in this Section may | 5 | | be commenced
within 3 years after the commission of the act | 6 | | constituting the violation.
| 7 | | (Source: P.A. 100-201, eff. 8-18-17.)
| 8 | | (35 ILCS 143/10-36 rep.) | 9 | | Section 40. The Tobacco Products Tax Act of 1995 is amended | 10 | | by repealing Section 10-36.
| 11 | | Section 99. Effective date. This Act takes effect upon | 12 | | becoming law.
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| 1 | |
INDEX
| 2 | |
Statutes amended in order of appearance
| | 3 | | 35 ILCS 105/11 | from Ch. 120, par. 439.11 | | 4 | | 35 ILCS 110/11 | from Ch. 120, par. 439.41 | | 5 | | 35 ILCS 115/11 | from Ch. 120, par. 439.111 | | 6 | | 35 ILCS 120/7 | from Ch. 120, par. 446 | | 7 | | 35 ILCS 130/12 | from Ch. 120, par. 453.12 | | 8 | | 35 ILCS 130/13 | from Ch. 120, par. 453.13 | | 9 | | 35 ILCS 130/13a new | | | 10 | | 35 ILCS 130/14 | from Ch. 120, par. 453.14 | | 11 | | 35 ILCS 130/15 | from Ch. 120, par. 453.15 | | 12 | | 35 ILCS 130/15a new | | | 13 | | 35 ILCS 130/18b | from Ch. 120, par. 453.18b | | 14 | | 35 ILCS 130/18c | | | 15 | | 35 ILCS 130/18d new | | | 16 | | 35 ILCS 135/8a new | | | 17 | | 35 ILCS 135/12 | from Ch. 120, par. 453.42 | | 18 | | 35 ILCS 135/22 | from Ch. 120, par. 453.52 | | 19 | | 35 ILCS 135/23 | from Ch. 120, par. 453.53 | | 20 | | 35 ILCS 135/23a new | | | 21 | | 35 ILCS 135/25a | from Ch. 120, par. 453.55a | | 22 | | 35 ILCS 135/25b | | | 23 | | 35 ILCS 135/25c new | | | 24 | | 35 ILCS 143/10-25 | | | 25 | | 35 ILCS 143/10-35 | | |
| | | SB3141 | - 38 - | LRB100 20670 HLH 36122 b |
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| 1 | | 35 ILCS 143/10-35a new | | | 2 | | 35 ILCS 143/10-37 | | | 3 | | 35 ILCS 143/10-38 new | | | 4 | | 35 ILCS 143/10-40 | | | 5 | | 35 ILCS 143/10-50 | | | 6 | | 35 ILCS 143/10-36 rep. | |
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