Full Text of HB5108 103rd General Assembly
HB5108ham001 103RD GENERAL ASSEMBLY | Rep. Robert "Bob" Rita Filed: 4/1/2024 | | 10300HB5108ham001 | | LRB103 37757 HLH 71548 a |
|
| 1 | | AMENDMENT TO HOUSE BILL 5108
| 2 | | AMENDMENT NO. ______. Amend House Bill 5108 by replacing | 3 | | everything after the enacting clause with the following: | 4 | | "Section 5. The Tobacco Products Tax Act of 1995 is | 5 | | amended by changing Sections 10-5, 10-10, 10-25, 10-30, 10-35, | 6 | | 10-37, 10-38, 10-45, and 10-50 and by adding Section 10-24 as | 7 | | follows: | 8 | | (35 ILCS 143/10-5) | 9 | | Sec. 10-5. Definitions. For purposes of this Act: | 10 | | "Actual cost" means the actual price paid for each | 11 | | individual SKU by a distributor or a remote retail seller | 12 | | before any stated discounts or rebates. | 13 | | "Actual cost list" means the average actual price paid by | 14 | | a distributor or a remote retail seller to a manufacturer, | 15 | | wholesaler, or distributor for a SKU during the calendar year | 16 | | immediately preceding the calendar year in which the sale |
| | | 10300HB5108ham001 | - 2 - | LRB103 37757 HLH 71548 a |
|
| 1 | | occurs. | 2 | | "Business" means any trade, occupation, activity, or | 3 | | enterprise engaged in, at any location whatsoever, for the | 4 | | purpose of selling tobacco products. | 5 | | "Cigar" means any roll of tobacco wrapped in leaf tobacco | 6 | | or in any substance containing tobacco. "Cigar" does not | 7 | | include a little cigar or any roll of tobacco that is | 8 | | classified as a cigarette within the meaning of Section 1 of | 9 | | the Cigarette Tax Act. | 10 | | "Cigarette" has the meaning ascribed to the term in | 11 | | Section 1 of the Cigarette Tax Act. | 12 | | "Contraband little cigar" means: | 13 | | (1) packages of little cigars containing 20 or 25 | 14 | | little cigars that do not bear a required tax stamp under | 15 | | this Act; | 16 | | (2) packages of little cigars containing 20 or 25 | 17 | | little cigars that bear a fraudulent, imitation, or | 18 | | counterfeit tax stamp; | 19 | | (3) packages of little cigars containing 20 or 25 | 20 | | little cigars that are improperly tax stamped, including | 21 | | packages of little cigars that bear only a tax stamp of | 22 | | another state or taxing jurisdiction; or | 23 | | (4) packages of little cigars containing other than 20 | 24 | | or 25 little cigars in the possession of a distributor, | 25 | | retailer or wholesaler, unless the distributor, retailer, | 26 | | or wholesaler possesses, or produces within the time frame |
| | | 10300HB5108ham001 | - 3 - | LRB103 37757 HLH 71548 a |
|
| 1 | | provided in Section 10-27 or 10-28 of this Act, an invoice | 2 | | from a stamping distributor, distributor, or wholesaler | 3 | | showing that the tax on the packages has been or will be | 4 | | paid. | 5 | | "Consumer" means a person who acquires ownership of | 6 | | tangible personal property, including tobacco products, for | 7 | | use or consumption in this State and not for resale. | 8 | | "Correctional Industries program" means a program run by a | 9 | | State penal institution in which residents of the penal | 10 | | institution produce tobacco products for sale to persons | 11 | | incarcerated in penal institutions or resident patients of a | 12 | | State operated mental health facility. | 13 | | "Department" means the Illinois Department of Revenue. | 14 | | "Distributor" means any of the following: | 15 | | (1) Any manufacturer or wholesaler in this State | 16 | | engaged in the business of selling tobacco products who | 17 | | sells, exchanges, or distributes tobacco products to | 18 | | retailers or consumers in this State. | 19 | | (2) Any manufacturer or wholesaler engaged in the | 20 | | business of selling tobacco products from without this | 21 | | State who sells, exchanges, distributes, ships, or | 22 | | transports tobacco products to retailers or consumers | 23 | | located in this State, so long as that manufacturer or | 24 | | wholesaler has or maintains within this State, directly or | 25 | | by subsidiary, an office, sales house, or other place of | 26 | | business, or any agent or other representative operating |
| | | 10300HB5108ham001 | - 4 - | LRB103 37757 HLH 71548 a |
|
| 1 | | within this State under the authority of the person or | 2 | | subsidiary, irrespective of whether the place of business | 3 | | or agent or other representative is located here | 4 | | permanently or temporarily. | 5 | | (3) Any retailer who receives tobacco products on | 6 | | which the tax has not been or will not be paid by another | 7 | | distributor. | 8 | | "Distributor" does not include any person, wherever | 9 | | resident or located, who makes, manufactures, or fabricates | 10 | | tobacco products as part of a Correctional Industries program | 11 | | for sale to residents incarcerated in penal institutions or | 12 | | resident patients of a State operated mental health facility. | 13 | | "Electronic cigarette" means: | 14 | | (1) any device that employs a battery or other | 15 | | mechanism to heat a solution or substance to produce a | 16 | | vapor or aerosol intended for inhalation, except for (A) | 17 | | any device designed solely for use with cannabis that | 18 | | contains a statement on the retail packaging that the | 19 | | device is designed solely for use with cannabis and not | 20 | | for use with tobacco or (B) any device that contains a | 21 | | solution or substance that contains cannabis subject to | 22 | | tax under the Compassionate Use of Medical Cannabis | 23 | | Program Act or the Cannabis Regulation and Tax Act; | 24 | | (2) any cartridge or container of a solution or | 25 | | substance intended to be used with or in the device or to | 26 | | refill the device, except for any cartridge or container |
| | | 10300HB5108ham001 | - 5 - | LRB103 37757 HLH 71548 a |
|
| 1 | | of a solution or substance that contains cannabis subject | 2 | | to tax under the Compassionate Use of Medical Cannabis | 3 | | Program Act or the Cannabis Regulation and Tax Act; or | 4 | | (3) any solution or substance, whether or not it | 5 | | contains nicotine, intended for use in the device, except | 6 | | for any solution or substance that contains cannabis | 7 | | subject to tax under the Compassionate Use of Medical | 8 | | Cannabis Program Act or the Cannabis Regulation and Tax | 9 | | Act. | 10 | | The changes made to the definition of "electronic | 11 | | cigarette" by this amendatory Act of the 102nd General | 12 | | Assembly apply on and after June 28, 2019, but no claim for | 13 | | credit or refund is allowed on or after the effective date of | 14 | | this amendatory Act of the 102nd General Assembly for such | 15 | | taxes paid during the period beginning June 28, 2019 and the | 16 | | effective date of this amendatory Act of the 102nd General | 17 | | Assembly. | 18 | | "Electronic cigarette" includes, but is not limited to, | 19 | | any electronic nicotine delivery system, electronic cigar, | 20 | | electronic cigarillo, electronic pipe, electronic hookah, vape | 21 | | pen, or similar product or device, and any component or part | 22 | | that can be used to build the product or device. "Electronic | 23 | | cigarette" does not include: cigarettes, as defined in Section | 24 | | 1 of the Cigarette Tax Act; any product approved by the United | 25 | | States Food and Drug Administration for sale as a tobacco | 26 | | cessation product, a tobacco dependence product, or for other |
| | | 10300HB5108ham001 | - 6 - | LRB103 37757 HLH 71548 a |
|
| 1 | | medical purposes that is marketed and sold solely for that | 2 | | approved purpose; any asthma inhaler prescribed by a physician | 3 | | for that condition that is marketed and sold solely for that | 4 | | approved purpose; or any therapeutic product approved for use | 5 | | under the Compassionate Use of Medical Cannabis Program Act. | 6 | | "Little cigar" means and includes any roll, made wholly or | 7 | | in part of tobacco, where such roll has an integrated | 8 | | cellulose acetate filter and weighs less than 4 pounds per | 9 | | thousand and the wrapper or cover of which is made in whole or | 10 | | in part of tobacco. | 11 | | "Manufacturer" means any person, wherever resident or | 12 | | located, who manufactures and sells tobacco products, except a | 13 | | person who makes, manufactures, or fabricates tobacco products | 14 | | as a part of a Correctional Industries program for sale to | 15 | | persons incarcerated in penal institutions or resident | 16 | | patients of a State operated mental health facility. | 17 | | Beginning on January 1, 2013, "moist snuff" means any | 18 | | finely cut, ground, or powdered tobacco that is not intended | 19 | | to be smoked, but shall not include any finely cut, ground, or | 20 | | powdered tobacco that is intended to be placed in the nasal | 21 | | cavity. | 22 | | "Person" means any natural individual, firm, partnership, | 23 | | association, joint stock company, joint venture, limited | 24 | | liability company, or public or private corporation, however | 25 | | formed, or a receiver, executor, administrator, trustee, | 26 | | conservator, or other representative appointed by order of any |
| | | 10300HB5108ham001 | - 7 - | LRB103 37757 HLH 71548 a |
|
| 1 | | court. | 2 | | "Pipe tobacco" means any tobacco that, because of its | 3 | | appearance, type, packaging, or labeling, is suitable for use | 4 | | in a pipe and is likely to be offered to or purchased by a | 5 | | consumer as tobacco to be smoked in a pipe. | 6 | | "Place of business" means and includes any place where | 7 | | tobacco products are sold or where tobacco products are | 8 | | manufactured, stored, or kept for the purpose of sale or | 9 | | consumption, including any vessel, vehicle, airplane, train, | 10 | | or vending machine. | 11 | | "Remote retail sale" means a sale by a remote retail | 12 | | seller of cigars or pipe tobacco to a consumer in this State | 13 | | when: | 14 | | (1) the buyer submits the order for the sale by means | 15 | | of a telephone or other method of voice transmission, by | 16 | | first class mail, or by using the Internet or other online | 17 | | service, or if the seller is otherwise not in the physical | 18 | | presence of the buyer when the request for purchase or | 19 | | order is made; or | 20 | | (2) the cigars or pipe tobacco are delivered to the | 21 | | buyer by common carrier, private delivery service, or | 22 | | other method of remote delivery, or the seller is not in | 23 | | the physical presence of the buyer when the buyer obtains | 24 | | possession of the cigars or pipe tobacco. | 25 | | "Remote retail seller" means a person located outside of | 26 | | this State who makes remote retail sales of cigars or pipe |
| | | 10300HB5108ham001 | - 8 - | LRB103 37757 HLH 71548 a |
|
| 1 | | tobacco, so long as that person does not maintain within this | 2 | | State, directly or by a subsidiary, an office, distribution | 3 | | house, sales house, warehouse, or other place of business, or | 4 | | any agent or other representative operating within this State | 5 | | under the authority of the person or its subsidiary, | 6 | | irrespective of whether the place of business or the agent is | 7 | | located here permanently or temporarily or whether the person | 8 | | or subsidiary is licensed to do business in this State. | 9 | | "Retailer" means any person in this State engaged in the | 10 | | business of selling tobacco products to consumers in this | 11 | | State, regardless of quantity or number of sales. | 12 | | "Sale" means any transfer, exchange, or barter in any | 13 | | manner or by any means whatsoever for a consideration and | 14 | | includes all sales made by persons. | 15 | | "Stamp" or "stamps" mean the indicia required to be | 16 | | affixed on a package of little cigars that evidence payment of | 17 | | the tax on packages of little cigars containing 20 or 25 little | 18 | | cigars under Section 10-10 of this Act. These stamps shall be | 19 | | the same stamps used for cigarettes under the Cigarette Tax | 20 | | Act. | 21 | | "Stamping distributor" means a distributor licensed under | 22 | | this Act and also licensed as a distributor under the | 23 | | Cigarette Tax Act or Cigarette Use Tax Act. | 24 | | "Stock keeping unit" or "SKU" means the unique identifier | 25 | | assigned by a manufacturer, distributor, or remote retail | 26 | | seller to various tobacco products in order to track |
| | | 10300HB5108ham001 | - 9 - | LRB103 37757 HLH 71548 a |
|
| 1 | | inventory. | 2 | | "Tobacco products" means any cigars, including little | 3 | | cigars; cheroots; stogies; periques; granulated, plug cut, | 4 | | crimp cut, ready rubbed, and other smoking tobacco; snuff | 5 | | (including moist snuff) or snuff flour; cavendish; plug and | 6 | | twist tobacco; fine-cut and other chewing tobaccos; shorts; | 7 | | refuse scraps, clippings, cuttings, and sweeping of tobacco; | 8 | | and other kinds and forms of tobacco, prepared in such manner | 9 | | as to be suitable for chewing or smoking in a pipe or | 10 | | otherwise, or both for chewing and smoking; but does not | 11 | | include cigarettes as defined in Section 1 of the Cigarette | 12 | | Tax Act or tobacco purchased for the manufacture of cigarettes | 13 | | by cigarette distributors and manufacturers defined in the | 14 | | Cigarette Tax Act and persons who make, manufacture, or | 15 | | fabricate cigarettes as a part of a Correctional Industries | 16 | | program for sale to residents incarcerated in penal | 17 | | institutions or resident patients of a State operated mental | 18 | | health facility. | 19 | | Beginning on July 1, 2019, "tobacco products" also | 20 | | includes electronic cigarettes. | 21 | | "Wholesale price" means the established list price for | 22 | | which a manufacturer sells tobacco products to a distributor, | 23 | | before the allowance of any discount, trade allowance, rebate, | 24 | | or other reduction. In the absence of such an established list | 25 | | price, the manufacturer's invoice price at which the | 26 | | manufacturer sells the tobacco product to unaffiliated |
| | | 10300HB5108ham001 | - 10 - | LRB103 37757 HLH 71548 a |
|
| 1 | | distributors, before any discounts, trade allowances, rebates, | 2 | | or other reductions, shall be presumed to be the wholesale | 3 | | price. | 4 | | "Wholesaler" means any person, wherever resident or | 5 | | located, engaged in the business of selling tobacco products | 6 | | to others for the purpose of resale. "Wholesaler", when used | 7 | | in this Act, does not include a person licensed as a | 8 | | distributor under Section 10-20 of this Act unless expressly | 9 | | stated in this Act. | 10 | | (Source: P.A. 101-31, eff. 6-28-19; 101-593, eff. 12-4-19; | 11 | | 102-40, eff. 6-25-21.) | 12 | | (35 ILCS 143/10-10) | 13 | | Sec. 10-10. Tax imposed. | 14 | | (a) Except as otherwise provided in this Section with | 15 | | respect to little cigars, on the first day of the third month | 16 | | after the month in which this Act becomes law, a tax is imposed | 17 | | on any person engaged in business as a distributor of tobacco | 18 | | products, as defined in Section 10-5, at the rate of : | 19 | | (1) (i) 18% of the wholesale price of tobacco | 20 | | products sold or otherwise disposed of to retailers or | 21 | | consumers located in this State prior to July 1, 2012 ; | 22 | | (2) and (ii) 36% of the wholesale price of tobacco | 23 | | products sold or otherwise disposed of to retailers or | 24 | | consumers located in this State beginning on July 1, 2012 | 25 | | and before January 1, 2025; and |
| | | 10300HB5108ham001 | - 11 - | LRB103 37757 HLH 71548 a |
|
| 1 | | (3) beginning on January 1, 2025, 36% of: | 2 | | (A) the actual cost paid by a distributor or | 3 | | remote retail seller for the stock keeping unit sold | 4 | | or otherwise disposed of to a retailer or consumer in | 5 | | the State; or | 6 | | (B) if documentation of the actual cost paid | 7 | | by a distributor or remote retail seller is not | 8 | | available due to matters beyond the distributor or | 9 | | remote retail seller's control, the actual cost list | 10 | | paid by a distributor or remote retail seller for the | 11 | | stock keeping unit sold or otherwise disposed of to | 12 | | retailers or consumers located in this State for which | 13 | | documentation is not available. ; except that, | 14 | | beginning | 15 | | Notwithstanding the provisions of this subsection (a), | 16 | | beginning on January 1, 2013, the tax on moist snuff shall be | 17 | | imposed at a rate of $0.30 per ounce, and a proportionate tax | 18 | | at the like rate on all fractional parts of an ounce, sold or | 19 | | otherwise disposed of to retailers or consumers located in | 20 | | this State . Notwithstanding the provisions of subsection (a), | 21 | | beginning on ; and except that, beginning July 1, 2019, the tax | 22 | | on electronic cigarettes shall be imposed at the rate of 15% of | 23 | | the wholesale price of electronic cigarettes sold or otherwise | 24 | | disposed of to retailers or consumers located in this State. | 25 | | The tax imposed under this subsection (a) is in addition | 26 | | to all other occupation or privilege taxes imposed by the |
| | | 10300HB5108ham001 | - 12 - | LRB103 37757 HLH 71548 a |
|
| 1 | | State of Illinois, by any political subdivision thereof, or by | 2 | | any municipal corporation. However, the tax is not imposed | 3 | | upon any activity in that business in interstate commerce or | 4 | | otherwise, to the extent to which that activity may not, under | 5 | | the Constitution and Statutes of the United States, be made | 6 | | the subject of taxation by this State, and except that, | 7 | | beginning July 1, 2013, the tax on little cigars shall be | 8 | | imposed at the same rate, and the proceeds shall be | 9 | | distributed in the same manner, as the tax imposed on | 10 | | cigarettes under the Cigarette Tax Act. The tax is also not | 11 | | imposed on sales made to the United States or any entity | 12 | | thereof. | 13 | | If the Department determines that the actual cost list for | 14 | | a SKU is not indicative of the actual cost paid for the SKU, | 15 | | then the Department may determine the distributor's or remote | 16 | | retail seller's tax liability for the SKU based on the | 17 | | distributor's or remote retail seller's books and records or | 18 | | from information on invoices obtained from the distributor's | 19 | | or remote retail seller's suppliers. | 20 | | (a-5) Beginning January 1, 2025, the tax imposed under | 21 | | subsection (a) is also imposed upon persons who are engaged in | 22 | | business as remote retail sellers of cigars and pipe tobacco | 23 | | and who make sales to Illinois consumers on which the tax has | 24 | | not been paid by a distributor, if: | 25 | | (1) the cumulative gross receipts of the remote retail | 26 | | seller from sales of tangible personal property to |
| | | 10300HB5108ham001 | - 13 - | LRB103 37757 HLH 71548 a |
|
| 1 | | consumers in this State are $100,000 or more; or | 2 | | (2) the remote retail seller enters into 200 or more | 3 | | separate transactions for the sale of tangible personal | 4 | | property to consumers in this State. | 5 | | A remote retail seller that meets or exceeds the threshold | 6 | | in either paragraph (1) or (2) of this subsection shall be | 7 | | liable for taxes imposed by this Act on all sales made by that | 8 | | remote retail seller of taxable products under this Act to | 9 | | Illinois consumers on which the tax has not been paid by a | 10 | | distributor. | 11 | | The remote retail seller shall determine on a quarterly | 12 | | basis, ending on the last day of March, June, September, and | 13 | | December, whether it meets the criteria of either paragraph | 14 | | (1) or (2) of this subsection for the preceding 12-month | 15 | | period. If the remote retail seller meets the criteria of | 16 | | either paragraph (1) or (2) for a 12-month period, then the | 17 | | remote retail seller is considered to be engaged in business | 18 | | as a remote retail seller in this State and is required to | 19 | | collect and remit the tax imposed under this Act and to file | 20 | | all applicable returns for the next 12-month period. At the | 21 | | end of that 12-month period, the remote retail seller shall | 22 | | determine whether the remote retail seller met the criteria of | 23 | | either paragraph (1) or (2) for the preceding 12-month period. | 24 | | If the remote retail seller met the criteria in either | 25 | | paragraph (1) or (2) for the preceding 12-month period, the | 26 | | remote retail seller is considered to be engaged in business |
| | | 10300HB5108ham001 | - 14 - | LRB103 37757 HLH 71548 a |
|
| 1 | | as a remote retail seller in this State and is required to | 2 | | collect and remit the tax imposed under this Act and file | 3 | | returns for the subsequent year. If, at the end of a one-year | 4 | | period, a remote retail seller that was required to collect | 5 | | and remit the tax imposed under this Act determines that the | 6 | | remote retail seller did not meet the criteria in either | 7 | | paragraph (1) or (2) during the preceding 12-month period, | 8 | | then the remote retail seller shall certify to the Department, | 9 | | in the form and manner required by the Department, that the | 10 | | remote retail seller did not meet the criteria in either | 11 | | paragraph (1) or (2) during the preceding 12-month period and | 12 | | shall subsequently determine on a quarterly basis, ending on | 13 | | the last day of March, June, September, and December, whether | 14 | | the remote retail seller meets the criteria of either | 15 | | paragraph (1) or (2) for the preceding 12-month period. | 16 | | (b) Notwithstanding subsection (a) of this Section, | 17 | | stamping distributors of packages of little cigars containing | 18 | | 20 or 25 little cigars sold or otherwise disposed of in this | 19 | | State shall remit the tax by purchasing tax stamps from the | 20 | | Department and affixing them to packages of little cigars in | 21 | | the same manner as stamps are purchased and affixed to | 22 | | cigarettes under the Cigarette Tax Act, unless the stamping | 23 | | distributor sells or otherwise disposes of those packages of | 24 | | little cigars to another stamping distributor. Only persons | 25 | | meeting the definition of "stamping distributor" contained in | 26 | | Section 10-5 of this Act may affix stamps to packages of little |
| | | 10300HB5108ham001 | - 15 - | LRB103 37757 HLH 71548 a |
|
| 1 | | cigars containing 20 or 25 little cigars. Stamping | 2 | | distributors may not sell or dispose of little cigars at | 3 | | retail to consumers or users at locations where stamping | 4 | | distributors affix stamps to packages of little cigars | 5 | | containing 20 or 25 little cigars. | 6 | | (c) The impact of the tax levied by this Act is imposed | 7 | | upon distributors engaged in the business of selling tobacco | 8 | | products to retailers or consumers in this State. Beginning | 9 | | January 1, 2025, the impact of the tax levied by this Act is | 10 | | also imposed upon remote retail sellers that meet the criteria | 11 | | in subsection (a-5) of this Section. A remote retail seller | 12 | | shall pay the tax on all sales of cigars and pipe tobacco to | 13 | | consumers in this State on which the tax has not been paid by a | 14 | | distributor. Whenever a stamping distributor brings or causes | 15 | | to be brought into this State from without this State, or | 16 | | purchases from without or within this State, any packages of | 17 | | little cigars containing 20 or 25 little cigars upon which | 18 | | there are no tax stamps affixed as required by this Act, for | 19 | | purposes of resale or disposal in this State to a person not a | 20 | | stamping distributor, then such stamping distributor shall pay | 21 | | the tax to the Department and add the amount of the tax to the | 22 | | price of such packages sold by such stamping distributor. | 23 | | Payment of the tax shall be evidenced by a stamp or stamps | 24 | | affixed to each package of little cigars containing 20 or 25 | 25 | | little cigars. | 26 | | Stamping distributors paying the tax to the Department on |
| | | 10300HB5108ham001 | - 16 - | LRB103 37757 HLH 71548 a |
|
| 1 | | packages of little cigars containing 20 or 25 little cigars | 2 | | sold to other distributors, wholesalers or retailers shall add | 3 | | the amount of the tax to the price of the packages of little | 4 | | cigars containing 20 or 25 little cigars sold by such stamping | 5 | | distributors. | 6 | | (d) Beginning on January 1, 2013, the tax rate imposed per | 7 | | ounce of moist snuff may not exceed 15% of the tax imposed upon | 8 | | a package of 20 cigarettes pursuant to the Cigarette Tax Act. | 9 | | (d-5) Notwithstanding any other provisions of this Section | 10 | | to the contrary, beginning January 1, 2025, and continuing | 11 | | through December 31, 2027, the tax per cigar sold or otherwise | 12 | | disposed of shall not exceed $1 per cigar. This subsection | 13 | | shall not apply to little cigars. | 14 | | (e) All moneys received by the Department under this Act | 15 | | from sales occurring prior to July 1, 2012 shall be paid into | 16 | | the Long-Term Care Provider Fund of the State Treasury. Of the | 17 | | moneys received by the Department from sales occurring on or | 18 | | after July 1, 2012, except for moneys received from the tax | 19 | | imposed on the sale of little cigars, 50% shall be paid into | 20 | | the Long-Term Care Provider Fund and 50% shall be paid into the | 21 | | Healthcare Provider Relief Fund. Beginning July 1, 2013, all | 22 | | moneys received by the Department under this Act from the tax | 23 | | imposed on little cigars shall be distributed as provided in | 24 | | Section 2 of the Cigarette Tax Act. | 25 | | (Source: P.A. 101-31, eff. 6-28-19.) |
| | | 10300HB5108ham001 | - 17 - | LRB103 37757 HLH 71548 a |
|
| 1 | | (35 ILCS 143/10-24 new) | 2 | | Sec. 10-24. Remote retail seller's license. Beginning on | 3 | | January 1, 2025, it shall be unlawful for any person who meets | 4 | | the criteria established in subsection (a-5) of Section 10-10 | 5 | | to engage in business as a remote retail seller within the | 6 | | meaning of this Act without first having obtained a license to | 7 | | do so from the Department. Application for that license shall | 8 | | be made to the Department, by electronic means, in a form | 9 | | prescribed by the Department. Each applicant for a license | 10 | | shall furnish to the Department, in an electronic format | 11 | | established by the Department, the following information: | 12 | | (1) the name and address of the applicant; | 13 | | (2) the address of the location at which the applicant | 14 | | proposes to engage in business as a remote retail seller | 15 | | outside this State; and | 16 | | (3) such other additional information as the | 17 | | Department may lawfully require by rule. | 18 | | Beginning on January 1, 2025, in addition to obtaining a | 19 | | license to engage in business as a remote retail seller in this | 20 | | State, no remote retail seller who meets the criteria | 21 | | established in subsection (a-5) of Section 10-10 may engage in | 22 | | business as a remote retail seller within the meaning of this | 23 | | Act without registering under the Retailers' Occupation Tax | 24 | | Act pursuant to Section 2a of that Act. | 25 | | A separate annual license shall be obtained for each place | 26 | | of business at which a person who is required to procure a |
| | | 10300HB5108ham001 | - 18 - | LRB103 37757 HLH 71548 a |
|
| 1 | | remote retail seller's license under this Section proposes to | 2 | | engage in business as a remote retail seller in Illinois under | 3 | | this Act. All licenses issued by the Department under this | 4 | | Section shall be valid for a period not to exceed one year | 5 | | after issuance unless sooner revoked, canceled, or suspended | 6 | | as provided in this Act. All licenses must be renewed on an | 7 | | annual basis. An application submitted by a remote retail | 8 | | seller shall include an acknowledgement consenting to the | 9 | | jurisdiction of the Department and the courts of this State | 10 | | concerning the enforcement of this Act and any related laws, | 11 | | rules, and regulations, including authorizing the Department | 12 | | of Revenue to conduct inspections and audits for the purpose | 13 | | of ensuring compliance with this Act and to issue penalties | 14 | | for violations of this Act. | 15 | | Each remote retail seller must perform age verification | 16 | | through an independent, third-party age verification service | 17 | | that compares information available from a commercially | 18 | | available database, or aggregate of databases, that are | 19 | | regularly used by government agencies and businesses for the | 20 | | purpose of age and identity verification to the personal | 21 | | information entered by the individual during the ordering | 22 | | process that establishes that the individual is of age. | 23 | | If the provisions of subsection (a-5) of Section 10-10 are | 24 | | met, and the tax imposed under this Act is being remitted using | 25 | | the actual cost list method to calculate the tax, each remote | 26 | | retail seller must provide the remote retail sellers's |
| | | 10300HB5108ham001 | - 19 - | LRB103 37757 HLH 71548 a |
|
| 1 | | certified actual cost list to the Department for each SKU to be | 2 | | offered for remote retail sale in the subsequent calendar | 3 | | year. The actual cost list shall be updated by the remote | 4 | | retail seller quarterly as new SKUs are added to the remote | 5 | | retail seller's inventory. New SKUs will be added using the | 6 | | actual cost first paid for the SKU. | 7 | | The following are ineligible to receive a remote retail | 8 | | seller's license under this Act: | 9 | | (1) a person who has been convicted of a felony under | 10 | | any federal or State law for smuggling cigarettes or | 11 | | tobacco products or tobacco tax evasion, if the | 12 | | Department, after investigation and a hearing if requested | 13 | | by the applicant, determines that such person has not been | 14 | | sufficiently rehabilitated to warrant the public trust; | 15 | | (2) a corporation, if any officer, manager or director | 16 | | thereof, or any stockholder or stockholders owning in the | 17 | | aggregate more than 5% of the stock of such corporation, | 18 | | would not be eligible to receive a license under this Act | 19 | | for any reason; and | 20 | | (3) any person who is in default to the State of | 21 | | Illinois for moneys due under this Act or any other tax Act | 22 | | administered by the Department. | 23 | | The Department, upon receipt of an application, in proper | 24 | | form, from a person who is eligible to receive a remote retail | 25 | | seller's license under this Act, shall issue to such applicant | 26 | | a license in form as prescribed by the Department, which |
| | | 10300HB5108ham001 | - 20 - | LRB103 37757 HLH 71548 a |
|
| 1 | | license shall permit the applicant to which it is issued to | 2 | | engage in business as a remote retail seller under this Act at | 3 | | the place shown in the remote retail seller's application. All | 4 | | licenses issued by the Department under this Section shall be | 5 | | valid for a period not to exceed one year after issuance unless | 6 | | sooner revoked, canceled or suspended as provided in this Act. | 7 | | No license issued under this Section is transferable or | 8 | | assignable. A person who obtains a license as a retailer who | 9 | | ceases to do business as specified in the license, or who never | 10 | | commenced business, or whose license is suspended or revoked, | 11 | | shall immediately surrender the license to the Department. | 12 | | The Department may, in its discretion, upon application, | 13 | | authorize the payment of the tax imposed under Section 10-10 | 14 | | by any remote retail seller not otherwise subject to the tax | 15 | | imposed under this Act who, to the satisfaction of the | 16 | | Department, furnishes adequate security to ensure payment of | 17 | | the tax. The remote retail seller shall be issued, without | 18 | | charge, a license to remit the tax. When so authorized, it | 19 | | shall be the duty of the remote retail seller to remit the tax | 20 | | imposed upon the actual cost or actual cost list price of the | 21 | | cigars or pipe tobacco sold or otherwise disposed of to | 22 | | consumers located in this State, in the same manner and | 23 | | subject to the same requirements as any other remote retail | 24 | | seller required to be licensed under this Act. It shall be the | 25 | | duty of the remote retail seller to remit the tax imposed upon | 26 | | the actual cost or actual cost list price of cigar or pipe |
| | | 10300HB5108ham001 | - 21 - | LRB103 37757 HLH 71548 a |
|
| 1 | | tobacco, sold or otherwise disposed of to consumers located in | 2 | | this State, in the same manner and subject to the same | 3 | | requirements as any other remote retail seller required to be | 4 | | licensed under this Act. | 5 | | Any person aggrieved by any decision of the Department | 6 | | under this Section may, within 30 days after notice of the | 7 | | decision, protest and request a hearing. Upon receiving a | 8 | | request for a hearing, the Department shall give notice to the | 9 | | person requesting the hearing of the time and place fixed for | 10 | | the hearing and shall hold a hearing in conformity with the | 11 | | provisions of this Act and then issue its final administrative | 12 | | decision in the matter to that person. In the absence of a | 13 | | protest and request for a hearing within 30 days, the | 14 | | Department's decision shall become final without any further | 15 | | determination being made or notice given. | 16 | | (35 ILCS 143/10-25) | 17 | | Sec. 10-25. License actions. | 18 | | (a) The Department may, after notice and a hearing, | 19 | | revoke, cancel, or suspend the license of any distributor , or | 20 | | retailer , or remote retail seller who violates any of the | 21 | | provisions of this Act, fails to keep books and records as | 22 | | required under this Act, fails to make books and records | 23 | | available for inspection upon demand by a duly authorized | 24 | | employee of the Department, or violates a rule or regulation | 25 | | of the Department for the administration and enforcement of |
| | | 10300HB5108ham001 | - 22 - | LRB103 37757 HLH 71548 a |
|
| 1 | | this Act. The notice shall specify the alleged violation or | 2 | | violations upon which the revocation, cancellation, or | 3 | | suspension proceeding is based. | 4 | | (a-5) The Department may, after notice and a hearing, | 5 | | revoke, cancel, or suspend the license of a distributor or | 6 | | remote retail seller that fails to properly register and remit | 7 | | tax under the Retailers' Occupation Tax Act for all tobacco | 8 | | products that are sold to consumers in this State. | 9 | | (a-10) The Department may, after notice and a hearing, | 10 | | revoke, cancel, or suspend the license of a distributor or | 11 | | remote retail seller who is found in violation of any law, | 12 | | rule, or regulation of the state where the business is located | 13 | | as listed on the license issued by the Department. The notice | 14 | | shall specify the alleged violation or violations upon which | 15 | | the revocation, cancellation, or suspension proceeding is | 16 | | based. | 17 | | (b) The Department may revoke, cancel, or suspend the | 18 | | license of any distributor for a violation of the Tobacco | 19 | | Product Manufacturers' Escrow Enforcement Act as provided in | 20 | | Section 20 of that Act. | 21 | | (c) If the retailer has a training program that | 22 | | facilitates compliance with minimum-age tobacco laws, the | 23 | | Department shall suspend for 3 days the license of that | 24 | | retailer for a fourth or subsequent violation of the | 25 | | Prevention of Tobacco Use by Persons under 21 Years of Age and | 26 | | Sale and Distribution of Tobacco Products Act, as provided in |
| | | 10300HB5108ham001 | - 23 - | LRB103 37757 HLH 71548 a |
|
| 1 | | subsection (a) of Section 2 of that Act. For the purposes of | 2 | | this Section, any violation of subsection (a) of Section 2 of | 3 | | the Prevention of Tobacco Use by Persons under 21 Years of Age | 4 | | and Sale and Distribution of Tobacco Products Act occurring at | 5 | | the retailer's licensed location, during a 24-month period, | 6 | | shall be counted as a violation against the retailer. | 7 | | If the retailer does not have a training program that | 8 | | facilitates compliance with minimum-age tobacco laws, the | 9 | | Department shall suspend for 3 days the license of that | 10 | | retailer for a second violation of the Prevention of Tobacco | 11 | | Use by Persons under 21 Years of Age and Sale and Distribution | 12 | | of Tobacco Products Act, as provided in subsection (a-5) of | 13 | | 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 7 days the license of that | 17 | | retailer for a third violation of the Prevention of Tobacco | 18 | | Use by Persons under 21 Years of Age and Sale and Distribution | 19 | | of Tobacco Products Act, as provided in subsection (a-5) of | 20 | | Section 2 of that Act. | 21 | | If the retailer does not have a training program that | 22 | | facilitates compliance with minimum-age tobacco laws, the | 23 | | Department shall suspend for 30 days the license of a retailer | 24 | | for a fourth or subsequent violation of the Prevention of | 25 | | Tobacco Use by Persons under 21 Years of Age and Sale and | 26 | | Distribution of Tobacco Products Act, as provided in |
| | | 10300HB5108ham001 | - 24 - | LRB103 37757 HLH 71548 a |
|
| 1 | | subsection (a-5) of Section 2 of that Act. | 2 | | A training program that facilitates compliance with | 3 | | minimum-age tobacco laws must include at least the following | 4 | | elements: (i) it must explain that only individuals displaying | 5 | | valid identification demonstrating that they are 21 years of | 6 | | age or older shall be eligible to purchase cigarettes or | 7 | | tobacco products and (ii) it must explain where a clerk can | 8 | | check identification for a date of birth. The training may be | 9 | | conducted electronically. Each retailer that has a training | 10 | | program shall require each employee who completes the training | 11 | | program to sign a form attesting that the employee has | 12 | | received and completed tobacco training. The form shall be | 13 | | kept in the employee's file and may be used to provide proof of | 14 | | training. | 15 | | (d) The Department may, by application to any circuit | 16 | | court, obtain an injunction restraining any person who engages | 17 | | in business as a distributor or remote retailer of tobacco | 18 | | products without a license (either because the his or her | 19 | | license has been revoked, canceled, or suspended or because of | 20 | | a failure to obtain a license in the first instance) from | 21 | | engaging in that business until that person, as if that person | 22 | | were a new applicant for a license, complies with all of the | 23 | | conditions, restrictions, and requirements of Section 10-20 or | 24 | | Section 10-24 of this Act and qualifies for and obtains a | 25 | | license. Refusal or neglect to obey the order of the court may | 26 | | result in punishment for contempt. |
| | | 10300HB5108ham001 | - 25 - | LRB103 37757 HLH 71548 a |
|
| 1 | | (Source: P.A. 100-940, eff. 8-17-18; 101-2, eff. 7-1-19 .) | 2 | | (35 ILCS 143/10-30) | 3 | | Sec. 10-30. Returns. | 4 | | (a) Every distributor shall, on or before the 15th day of | 5 | | each month, file a return with the Department covering the | 6 | | preceding calendar month. The return shall disclose the | 7 | | wholesale price , or beginning on January 1, 2025, the actual | 8 | | cost or actual cost list price for all tobacco products other | 9 | | than electronic cigarettes, little cigars or moist snuff and | 10 | | the quantity in ounces of moist snuff sold or otherwise | 11 | | disposed of and other information that the Department may | 12 | | reasonably require. The return shall be filed upon a form | 13 | | prescribed and furnished by the Department. | 14 | | (a-5) Beginning February 1, 2025, every remote retail | 15 | | seller shall, on or before the 15th day of each month, file a | 16 | | return with the Department covering the preceding calendar | 17 | | month. The remote retail seller's return must report all | 18 | | cigars or pipe tobacco brought in or caused to be brought in | 19 | | from outside the State or shipped or transported to consumers | 20 | | within the State during the preceding calendar month. The | 21 | | return must include further information as the Department may | 22 | | prescribe and must show the total actual cost or actual cost | 23 | | list price paid by a remote retail seller for a stock keeping | 24 | | unit for the previous calendar month. The return must show the | 25 | | amount of tax due for all remote retail sales made from outside |
| | | 10300HB5108ham001 | - 26 - | LRB103 37757 HLH 71548 a |
|
| 1 | | the State, to a consumer within the State during the preceding | 2 | | calendar month. It is the intent and purpose of this | 3 | | amendatory Act of the 103rd General Assembly that the remote | 4 | | retail seller remit the tax at the time the return is filed. It | 5 | | is further the intent and purpose of this amendatory Act of the | 6 | | 103rd General Assembly to impose the tax under this Act only | 7 | | once on all tobacco products, including cigars and pipe | 8 | | tobacco, sold in the State. | 9 | | (b) In addition to the information required under | 10 | | subsection (a), on or before the 15th day of each month, | 11 | | covering the preceding calendar month, each stamping | 12 | | distributor shall, on forms prescribed and furnished by the | 13 | | Department, report the quantity of little cigars sold or | 14 | | otherwise disposed of, including the number of packages of | 15 | | little cigars sold or disposed of during the month containing | 16 | | 20 or 25 little cigars. | 17 | | (c) At the time when any return of any distributor or | 18 | | remote retail seller is due to be filed with the Department, | 19 | | the distributor shall also remit to the Department the tax | 20 | | liability that the distributor or remote retail seller has | 21 | | incurred for transactions occurring in the preceding calendar | 22 | | month. Starting January 1, 2025, the distributor or remote | 23 | | remote retail seller shall remit the tax liability, less a | 24 | | discount of 1.75%, not to exceed $1,000 per month, which is | 25 | | allowed to reimburse the distributor or remote retail seller | 26 | | for the expenses incurred in keeping records, preparing and |
| | | 10300HB5108ham001 | - 27 - | LRB103 37757 HLH 71548 a |
|
| 1 | | filing returns, remitting the tax, and supplying data to the | 2 | | Department on request. No discount may be claimed by a | 3 | | taxpayer on returns not timely filed and for taxes not timely | 4 | | remitted. No discount may be claimed by a taxpayer for any | 5 | | return that is not filed electronically. | 6 | | (d) The Department may adopt rules to require the | 7 | | electronic filing of any return or document required to be | 8 | | filed under this Act. Those rules may provide for exceptions | 9 | | from the filing requirement set forth in this paragraph for | 10 | | persons who demonstrate that they do not have access to the | 11 | | Internet and petition the Department to waive the electronic | 12 | | filing requirement. | 13 | | (e) If any payment provided for in this Section exceeds | 14 | | the distributor's liabilities under this Act, as shown on an | 15 | | original return, the distributor may credit such excess | 16 | | payment against liability subsequently to be remitted to the | 17 | | Department under this Act, in accordance with reasonable rules | 18 | | adopted by the Department. | 19 | | (Source: P.A. 100-1171, eff. 1-4-19.) | 20 | | (35 ILCS 143/10-35) | 21 | | Sec. 10-35. Record keeping. | 22 | | (a) Every distributor, as defined in Section 10-5, shall | 23 | | keep complete and accurate records of tobacco products held, | 24 | | purchased, manufactured, brought in or caused to be brought in | 25 | | from without the State, and tobacco products sold, or |
| | | 10300HB5108ham001 | - 28 - | LRB103 37757 HLH 71548 a |
|
| 1 | | otherwise disposed of, and shall preserve and keep all | 2 | | invoices, bills of lading, sales records, and copies of bills | 3 | | of sale, the wholesale price , and beginning January 1, 2025 | 4 | | the actual cost or actual cost list price for tobacco products | 5 | | sold or otherwise disposed of, an inventory of tobacco | 6 | | products prepared as of December 31 of each year or as of the | 7 | | last day of the distributor's fiscal year if the distributor | 8 | | he or she files federal income tax returns on the basis of a | 9 | | fiscal year, and other pertinent papers and documents relating | 10 | | to the manufacture, purchase, sale, or disposition of tobacco | 11 | | products. Every sales invoice issued by a licensed distributor | 12 | | to a retailer in this State shall contain the distributor's | 13 | | Tobacco Products License number unless the distributor has | 14 | | been granted a waiver by the Department in response to a | 15 | | written request in cases where (i) the distributor sells | 16 | | little cigars or other tobacco products only to licensed | 17 | | retailers that are wholly-owned by the distributor or owned by | 18 | | a wholly-owned subsidiary of the distributor; (ii) the | 19 | | licensed retailer obtains little cigars or other tobacco | 20 | | products only from the distributor requesting the waiver; and | 21 | | (iii) the distributor affixes the tax stamps to the original | 22 | | packages of little cigars or has or will pay the tax on the | 23 | | other tobacco products sold to the licensed retailer. The | 24 | | distributor shall file a written request with the Department, | 25 | | and, if the Department determines that the distributor meets | 26 | | the conditions for a waiver, the Department shall grant the |
| | | 10300HB5108ham001 | - 29 - | LRB103 37757 HLH 71548 a |
|
| 1 | | waiver. | 2 | | (b) Every retailer, as defined in Section 10-5, whether or | 3 | | not the retailer has obtained a retailer's license pursuant to | 4 | | Section 4g, shall keep complete and accurate records of | 5 | | tobacco products held, purchased, sold, or otherwise disposed | 6 | | of, and shall preserve and keep all invoices, bills of lading, | 7 | | sales records, and copies of bills of sale, returns and other | 8 | | pertinent papers and documents relating to the purchase, sale, | 9 | | or disposition of tobacco products. Such records need not be | 10 | | maintained on the licensed premises, but must be maintained in | 11 | | the State of Illinois; however, if access is available | 12 | | electronically, the records may be maintained out of state. | 13 | | However, all original invoices or copies thereof covering | 14 | | purchases of tobacco products must be retained on the licensed | 15 | | premises for a period of 90 days after such purchase, unless | 16 | | the Department has granted a waiver in response to a written | 17 | | request in cases where records are kept at a central business | 18 | | location within the State of Illinois or in cases where | 19 | | records that are available electronically are maintained out | 20 | | of state. The Department shall adopt rules regarding the | 21 | | eligibility for a waiver, revocation of a waiver, and | 22 | | requirements and standards for maintenance and accessibility | 23 | | of records located at a central location out-of-State pursuant | 24 | | to a waiver provided under this Section. | 25 | | (b-5) Every remote retail seller, as defined in Section | 26 | | 10-5 shall keep complete and accurate records of tobacco |
| | | 10300HB5108ham001 | - 30 - | LRB103 37757 HLH 71548 a |
|
| 1 | | products held, purchased, sold, or otherwise disposed of and | 2 | | shall preserve and keep all invoices, bills of lading, sales | 3 | | records, and copies of bills of sale, returns and other | 4 | | pertinent papers and documents relating to the purchase, sale, | 5 | | or disposition of tobacco products. Such records must be on | 6 | | the remote retail seller's premises but need not be maintained | 7 | | in the State of Illinois; however, remote retail sellers shall | 8 | | also provide access electronically. However, all original | 9 | | invoices or copies thereof covering purchases of tobacco | 10 | | products must be retained on the remote retail seller's | 11 | | premises until the expiration of the period with respect to | 12 | | which the Department is authorized to issue a notice of tax | 13 | | liability. | 14 | | (c) Books, records, papers, and documents that are | 15 | | required by this Act to be kept shall, at all times during the | 16 | | usual business hours of the day, be subject to inspection by | 17 | | the Department or its duly authorized agents and employees. | 18 | | The books, records, papers, and documents for any period with | 19 | | respect to which the Department is authorized to issue a | 20 | | notice of tax liability shall be preserved until the | 21 | | expiration of that period. | 22 | | (Source: P.A. 99-192, eff. 1-1-16; 100-940, eff. 8-17-18.) | 23 | | (35 ILCS 143/10-37) | 24 | | Sec. 10-37. Proof of payment of tax imposed by this Act. | 25 | | Every licensed distributor of tobacco products in this State |
| | | 10300HB5108ham001 | - 31 - | LRB103 37757 HLH 71548 a |
|
| 1 | | is required to show proof of the tax having been paid as | 2 | | required by this Act by displaying its Tobacco Products | 3 | | License number on every sales invoice issued to a retailer in | 4 | | this State. Every licensed remote retail seller of tobacco | 5 | | products in this State is required to show proof of the tax | 6 | | having been paid as required by this Act by displaying its | 7 | | Tobacco Products License number on every sales invoice issued | 8 | | to a consumer in this State. No retailer shall possess tobacco | 9 | | products without either a proper invoice indicating that the | 10 | | tobacco products tax was paid by a distributor for the tobacco | 11 | | products in the retailer's possession or other proof that the | 12 | | tax was paid by the retailer if it has purchased tobacco | 13 | | products on which tax has not been paid as required by this | 14 | | Act. Failure to comply with the provisions of this paragraph | 15 | | may be grounds for revocation of a distributor's , remote | 16 | | retail seller's, or retailer's license in accordance with | 17 | | Section 10-25 of this Act or Section 6 of the Cigarette Tax | 18 | | Act. In addition, the Department may impose a civil penalty | 19 | | not to exceed $1,000 for the first violation and $3,000 for | 20 | | each subsequent violation, which shall be deposited into the | 21 | | Tax Compliance and Administration Fund. | 22 | | (Source: P.A. 100-940, eff. 8-17-18.) | 23 | | (35 ILCS 143/10-38) | 24 | | Sec. 10-38. Presumption for unlicensed distributors , | 25 | | remote retail sellers, or persons. Whenever any person obtains |
| | | 10300HB5108ham001 | - 32 - | LRB103 37757 HLH 71548 a |
|
| 1 | | tobacco products from an unlicensed in-state or out-of-state | 2 | | distributor , remote retail seller, or person, a prima facie | 3 | | presumption shall arise that the tax imposed by this Act on | 4 | | such tobacco products has not been paid in violation of this | 5 | | Act. Invoices or other documents kept in the normal course of | 6 | | business in the possession of a person reflecting purchases of | 7 | | tobacco products from an unlicensed in-state or out-of-state | 8 | | distributor , remote retail seller, or person or invoices or | 9 | | other documents kept in the normal course of business obtained | 10 | | by the Department from in-state or out-of-state distributors , | 11 | | remote retail sellers, or persons, are sufficient to raise the | 12 | | presumption that the tax imposed by this Act has not been paid. | 13 | | If a presumption is raised, the Department may assess tax, | 14 | | penalty, and interest on the tobacco products. In addition, | 15 | | any person who violates this Section is liable to pay to the | 16 | | Department, for deposit in the Tax Compliance and | 17 | | Administration Fund, a penalty of $1,000 for the first | 18 | | violation and $3,000 for any subsequent violation. The | 19 | | Department may adopt rules to administer the penalties under | 20 | | this Section. | 21 | | (Source: P.A. 100-940, eff. 8-17-18.) | 22 | | (35 ILCS 143/10-45) | 23 | | Sec. 10-45. Incorporation by reference. All of the | 24 | | provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, | 25 | | 5i, 5j, 6, 6a, 6b, 6c, 8, 9, 10, 11, 11a, and 12 of the |
| | | 10300HB5108ham001 | - 33 - | LRB103 37757 HLH 71548 a |
|
| 1 | | Retailers' Occupation Tax Act, and all applicable provisions | 2 | | of the Uniform Penalty and Interest Act that are not | 3 | | inconsistent with this Act, apply to distributors and remote | 4 | | retail sellers of tobacco products to the same extent as if | 5 | | those provisions were included in this Act. References in the | 6 | | incorporated Sections of the Retailers' Occupation Tax Act to | 7 | | retailers, to sellers, or to persons engaged in the business | 8 | | of selling tangible personal property mean distributors or | 9 | | remote retail sellers when used in this Act. References in the | 10 | | incorporated Sections to sales of tangible personal property | 11 | | mean sales of tobacco products when used in this Act. | 12 | | All of the provisions of Sections 7, 8, 8a, 16, 18a, 18b, | 13 | | 18c, 22, 23, 24, 26, 27, and 28a of the Cigarette Tax Act which | 14 | | are not inconsistent with this Act shall apply, as far as | 15 | | practicable, to the subject matter of this Act to the same | 16 | | extent as if those provisions were included in this Act. | 17 | | References in the incorporated Sections to sales of cigarettes | 18 | | mean sales of little cigars in packages of 20 or 25 little | 19 | | cigars. | 20 | | (Source: P.A. 98-273, eff. 8-9-13.) | 21 | | (35 ILCS 143/10-50) | 22 | | Sec. 10-50. Violations and penalties. When the amount due | 23 | | is under $300, any distributor or remote retail seller who | 24 | | fails to file a return, willfully fails or refuses to make any | 25 | | payment to the Department of the tax imposed by this Act, or |
| | | 10300HB5108ham001 | - 34 - | LRB103 37757 HLH 71548 a |
|
| 1 | | files a fraudulent return, or any officer or agent of a | 2 | | corporation engaged in the business of distributing or | 3 | | engaging in remote retail sales of tobacco products to | 4 | | retailers or and consumers located in this State who signs a | 5 | | fraudulent return filed on behalf of the corporation, or any | 6 | | accountant or other agent who knowingly enters false | 7 | | information on the return of any taxpayer under this Act is | 8 | | guilty of a Class 4 felony. | 9 | | Any person who violates any provision of Section 10-20, | 10 | | 10-21, or 10-22 , or 10-24 of this Act, fails to keep books and | 11 | | records as required under this Act, or willfully violates a | 12 | | rule or regulation of the Department for the administration | 13 | | and enforcement of this Act is guilty of a Class 4 felony. A | 14 | | person commits a separate offense on each day that he or she | 15 | | engages in business in violation of Section 10-20, 10-21, or | 16 | | 10-22 , or 10-24 of this Act. If a person fails to produce the | 17 | | books and records for inspection by the Department upon | 18 | | request, a prima facie presumption shall arise that the person | 19 | | has failed to keep books and records as required under this | 20 | | Act. A person who is unable to rebut this presumption is in | 21 | | violation of this Act and is subject to the penalties provided | 22 | | in this Section. | 23 | | When the amount due is under $300, any person who accepts | 24 | | money that is due to the Department under this Act from a | 25 | | taxpayer for the purpose of acting as the taxpayer's agent to | 26 | | make the payment to the Department, but who fails to remit the |
| | | 10300HB5108ham001 | - 35 - | LRB103 37757 HLH 71548 a |
|
| 1 | | payment to the Department when due, is guilty of a Class 4 | 2 | | felony. | 3 | | Any person who violates any provision of Sections 10-20, | 4 | | 10-21 and 10-22 of this Act, fails to keep books and records as | 5 | | required under this Act, or willfully violates a rule or | 6 | | regulation of the Department for the administration and | 7 | | enforcement of this Act is guilty of a business offense and may | 8 | | be fined up to $5,000. If a person fails to produce books and | 9 | | records for inspection by the Department upon request, a prima | 10 | | facie presumption shall arise that the person has failed to | 11 | | keep books and records as required under this Act. A person who | 12 | | is unable to rebut this presumption is in violation of this Act | 13 | | and is subject to the penalties provided in this Section. A | 14 | | person commits a separate offense on each day that he or she | 15 | | engages in business in violation of Sections 10-20, 10-21 and | 16 | | 10-22 of this Act. | 17 | | When the amount due is $300 or more, any distributor or | 18 | | remote retail seller who files, or causes to be filed, a | 19 | | fraudulent return, or any officer or agent of a corporation | 20 | | engaged in the business of distributing or engaging in remote | 21 | | retail sales of tobacco products to retailers or and consumers | 22 | | located in this State who files or causes to be filed or signs | 23 | | or causes to be signed a fraudulent return filed on behalf of | 24 | | the corporation, or any accountant or other agent who | 25 | | knowingly enters false information on the return of any | 26 | | taxpayer under this Act is guilty of a Class 3 felony. |
| | | 10300HB5108ham001 | - 36 - | LRB103 37757 HLH 71548 a |
|
| 1 | | When the amount due is $300 or more, any person engaged in | 2 | | the business of distributing or engaging in remote retail | 3 | | sales of tobacco products to retailers or and consumers | 4 | | located in this State who fails to file a return, willfully | 5 | | fails or refuses to make any payment to the Department of the | 6 | | tax imposed by this Act, or accepts money that is due to the | 7 | | Department under this Act from a taxpayer for the purpose of | 8 | | acting as the taxpayer's agent to make payment to the | 9 | | Department but fails to remit such payment to the Department | 10 | | when due is guilty of a Class 3 felony. | 11 | | When the amount due is under $300, any retailer who fails | 12 | | to file a return, willfully fails or refuses to make any | 13 | | payment to the Department of the tax imposed by this Act, or | 14 | | files a fraudulent return, or any officer or agent of a | 15 | | corporation engaged in the retail business of selling tobacco | 16 | | products to purchasers of tobacco products for use and | 17 | | consumption located in this State who signs a fraudulent | 18 | | return filed on behalf of the corporation, or any accountant | 19 | | or other agent who knowingly enters false information on the | 20 | | return of any taxpayer under this Act is guilty of a Class A | 21 | | misdemeanor for a first offense and a Class 4 felony for each | 22 | | subsequent offense. | 23 | | When the amount due is $300 or more, any retailer who fails | 24 | | to file a return, willfully fails or refuses to make any | 25 | | payment to the Department of the tax imposed by this Act, or | 26 | | files a fraudulent return, or any officer or agent of a |
| | | 10300HB5108ham001 | - 37 - | LRB103 37757 HLH 71548 a |
|
| 1 | | corporation engaged in the retail business of selling tobacco | 2 | | products to purchasers of tobacco products for use and | 3 | | consumption located in this State who signs a fraudulent | 4 | | return filed on behalf of the corporation, or any accountant | 5 | | or other agent who knowingly enters false information on the | 6 | | return of any taxpayer under this Act is guilty of a Class 4 | 7 | | felony. | 8 | | Any person whose principal place of business is in this | 9 | | State and who is charged with a violation under this Section | 10 | | shall be tried in the county where his or her principal place | 11 | | of business is located unless he or she asserts a right to be | 12 | | tried in another venue. If the taxpayer does not have his or | 13 | | her principal place of business in this State, however, the | 14 | | hearing must be held in Sangamon County unless the taxpayer | 15 | | asserts a right to be tried in another venue. | 16 | | Any taxpayer or agent of a taxpayer who with the intent to | 17 | | defraud purports to make a payment due to the Department by | 18 | | issuing or delivering a check or other order upon a real or | 19 | | fictitious depository for the payment of money, knowing that | 20 | | it will not be paid by the depository, is guilty of a deceptive | 21 | | practice in violation of Section 17-1 of the Criminal Code of | 22 | | 2012. | 23 | | A prosecution for a violation described in this Section | 24 | | may be commenced within 3 years after the commission of the act | 25 | | constituting the violation. | 26 | | (Source: P.A. 100-201, eff. 8-18-17; 100-940, eff. 8-17-18.) |
| | | 10300HB5108ham001 | - 38 - | LRB103 37757 HLH 71548 a |
|
| 1 | | Section 99. Effective date. This Act takes effect upon | 2 | | becoming law.". |
|