Full Text of SB1850 103rd General Assembly
SB1850eng 103RD GENERAL ASSEMBLY |
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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 Cigarette Tax Act is amended by changing | 5 | | Section 2 as follows:
| 6 | | (35 ILCS 130/2) (from Ch. 120, par. 453.2)
| 7 | | Sec. 2. Tax imposed; rate; collection, payment, and | 8 | | distribution;
discount. | 9 | | (a) Beginning on July 1, 2019, in place of the aggregate | 10 | | tax rate of 99 mills previously imposed by this Act, a tax is | 11 | | imposed upon any person engaged in business as a retailer of | 12 | | cigarettes at the rate of 149 mills per cigarette sold or | 13 | | otherwise disposed of in the course of such business in this | 14 | | State. | 15 | | (b) The payment of such taxes shall be evidenced by a stamp | 16 | | affixed to
each original package of cigarettes, or an | 17 | | authorized substitute for such stamp
imprinted on each | 18 | | original package of such cigarettes underneath the sealed
| 19 | | transparent outside wrapper of such original package, as | 20 | | hereinafter provided.
However, such taxes are not imposed upon | 21 | | any activity in such business in
interstate commerce or | 22 | | otherwise, which activity may not under
the Constitution and | 23 | | statutes of the United States be made the subject of
taxation |
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| 1 | | by this State.
| 2 | | Out of the 149 mills per cigarette tax imposed by | 3 | | subsection (a), until July 1, 2023, the revenues received from | 4 | | 4 mills shall be paid into the Common School Fund each month, | 5 | | not to exceed $9,000,000 per month. Out of the 149 mills per | 6 | | cigarette tax imposed by subsection (a), until July 1, 2023, | 7 | | all of the revenues received from 7 mills shall be paid into | 8 | | the Common School Fund each month. Out of the 149 mills per | 9 | | cigarette tax imposed by subsection (a), until July 1, 2023, | 10 | | 50 mills per cigarette each month shall be paid into the | 11 | | Healthcare Provider Relief Fund. | 12 | | Beginning on July 1, 2006 and until July 1, 2023 , all of | 13 | | the moneys received by the Department of Revenue pursuant to | 14 | | this Act and the Cigarette Use Tax Act, other than the moneys | 15 | | that are dedicated to the Common School Fund and, beginning on | 16 | | the effective date of this amendatory Act of the 97th General | 17 | | Assembly, other than the moneys from the additional taxes | 18 | | imposed by this amendatory Act of the 97th General Assembly | 19 | | that must be paid each month into the Healthcare Provider | 20 | | Relief Fund, and other than the moneys from the additional | 21 | | taxes imposed by this amendatory Act of the 101st General | 22 | | Assembly that must be paid each month under subsection (c), | 23 | | shall be distributed each month as follows: first, there shall | 24 | | be paid into the General Revenue Fund an amount that, when | 25 | | added to the amount paid into the Common School Fund for that | 26 | | month, equals $29,200,000; then, from the moneys remaining, if |
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| 1 | | any amounts required to be paid into the General Revenue Fund | 2 | | in previous months remain unpaid, those amounts shall be paid | 3 | | into the General Revenue Fund; then from the moneys remaining, | 4 | | $5,000,000 per month shall be paid into the School | 5 | | Infrastructure Fund; then, if any amounts required to be paid | 6 | | into the School Infrastructure Fund in previous months remain | 7 | | unpaid, those amounts shall be paid into the School | 8 | | Infrastructure Fund; then the moneys remaining, if any, shall | 9 | | be paid into the Long-Term Care Provider Fund.
Any amounts | 10 | | required to be paid into the General Revenue Fund, the School | 11 | | Infrastructure Fund, the Long-Term Care Provider Fund, the | 12 | | Common School Fund, the Capital Projects Fund, or the | 13 | | Healthcare Provider Relief Fund under this subsection that | 14 | | remain unpaid as of July 1, 2023 shall be deemed satisfied on | 15 | | that date, eliminating any deficiency accrued through that | 16 | | date. | 17 | | (c) Beginning on July 1, 2019 and until July 1, 2023 , all | 18 | | of the moneys from the additional taxes imposed by Public Act | 19 | | 101-31, except for moneys received from the tax on electronic | 20 | | cigarettes, received by the Department of Revenue pursuant to | 21 | | this Act, the Cigarette Use Tax Act, and the Tobacco Products | 22 | | Tax Act of 1995 shall be distributed each month into the | 23 | | Capital Projects Fund. | 24 | | (c-5) Beginning on July 1, 2023, all of the moneys | 25 | | received by the Department of Revenue pursuant to (i) this | 26 | | Act, (ii) the Cigarette Use Tax Act, and (iii) the tax imposed |
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| 1 | | on little cigars under Section 10-10 of the Tobacco Products | 2 | | Tax Act of 1995 shall be paid each month as follows: | 3 | | (1) 7% into the Common School Fund; | 4 | | (2) 34% into the Healthcare Provider Relief Fund; | 5 | | (3) 34% into the Capital Projects Fund; and | 6 | | (4) 25% into the General Revenue Fund. | 7 | | (d) Until July 1, 2023, except Except for moneys received | 8 | | from the additional taxes imposed by Public Act 101-31, moneys | 9 | | collected from the tax imposed on little cigars under Section | 10 | | 10-10 of the Tobacco Products Tax Act of 1995 shall be included | 11 | | with the moneys collected under the Cigarette Tax Act and the | 12 | | Cigarette Use Tax Act when making distributions to the Common | 13 | | School Fund, the Healthcare Provider Relief Fund, the General | 14 | | Revenue Fund, the School Infrastructure Fund, and the | 15 | | Long-Term Care Provider Fund under this Section. Any amounts, | 16 | | including moneys collected from the tax imposed on little | 17 | | cigars under Section 10-10 of the Tobacco Products Tax Act of | 18 | | 1995, that are required to be paid into the General Revenue | 19 | | Fund, the School Infrastructure Fund, the Long-Term Care | 20 | | Provider Fund, the Common School Fund, the Capital Projects | 21 | | Fund, or the Healthcare Provider Relief Fund under subsection | 22 | | (b) that remain unpaid as of July 1, 2023 shall be deemed | 23 | | satisfied on that date, eliminating any deficiency accrued | 24 | | through that date. Beginning on July 1, 2023, moneys collected | 25 | | from the tax imposed on little cigars under Section 10-10 of | 26 | | the Tobacco Products Tax Act of 1995 shall be included with the |
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| 1 | | moneys collected under the Cigarette Tax Act and the Cigarette | 2 | | Use Tax Act when making distributions under subsections (c-5). | 3 | | (e) If the tax imposed herein terminates or has | 4 | | terminated, distributors
who have bought stamps while such tax | 5 | | was in effect and who therefore paid
such tax, but who can | 6 | | show, to the Department's satisfaction, that they
sold the | 7 | | cigarettes to which they affixed such stamps after such tax | 8 | | had
terminated and did not recover the tax or its equivalent | 9 | | from purchasers,
shall be allowed by the Department to take | 10 | | credit for such absorbed tax
against subsequent tax stamp | 11 | | purchases from the Department by such
distributor.
| 12 | | (f) The impact of the tax levied by this Act is imposed | 13 | | upon the retailer
and shall be prepaid or pre-collected by the | 14 | | distributor for the purpose of
convenience and facility only, | 15 | | and the amount of the tax shall be added to
the price of the | 16 | | cigarettes sold by such distributor. Collection of the tax
| 17 | | shall be evidenced by a stamp or stamps affixed to each | 18 | | original package of
cigarettes, as hereinafter provided. Any | 19 | | distributor who purchases stamps may credit any excess | 20 | | payments verified by the Department against amounts | 21 | | subsequently due for the purchase of additional stamps, until | 22 | | such time as no excess payment remains.
| 23 | | (g) Each distributor shall collect the tax from the | 24 | | retailer at or before
the time of the sale, shall affix the | 25 | | stamps as hereinafter required, and
shall remit the tax | 26 | | collected from retailers to the Department, as
hereinafter |
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| 1 | | provided. Any distributor who fails to properly collect and | 2 | | pay
the tax imposed by this Act shall be liable for the tax.
| 3 | | (h) Any distributor having cigarettes in his or her | 4 | | possession on July 1, 2019 to which tax stamps have been | 5 | | affixed, and any distributor having stamps in his or her | 6 | | possession on July 1, 2019 that have not been affixed to | 7 | | packages of cigarettes before July 1, 2019, is required to pay | 8 | | the additional tax that begins on July 1, 2019 imposed by this | 9 | | amendatory Act of the 101st General Assembly to the extent | 10 | | that the volume of affixed and unaffixed stamps in the | 11 | | distributor's possession on July 1, 2019 exceeds the average | 12 | | monthly volume of cigarette stamps purchased by the | 13 | | distributor in calendar year 2018. This payment, less the | 14 | | discount provided in subsection (l), is due when the | 15 | | distributor first makes a purchase of cigarette stamps on or | 16 | | after July 1, 2019 or on the first due date of a return under | 17 | | this Act occurring on or after July 1, 2019, whichever occurs | 18 | | first. Those distributors may elect to pay the additional tax | 19 | | on packages of cigarettes to which stamps have been affixed | 20 | | and on any stamps in the distributor's possession that have | 21 | | not been affixed to packages of cigarettes in their possession | 22 | | on July 1, 2019 over a period not to exceed 12 months from the | 23 | | due date of the additional tax by notifying the Department in | 24 | | writing. The first payment for distributors making such | 25 | | election is due when the distributor first makes a purchase of | 26 | | cigarette tax stamps on or after July 1, 2019 or on the first |
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| 1 | | due date of a return under this Act occurring on or after July | 2 | | 1, 2019, whichever occurs first. Distributors making such an | 3 | | election are not entitled to take the discount provided in | 4 | | subsection (l) on such payments. | 5 | | (i) Any retailer having cigarettes in its possession on | 6 | | July 1, 2019 to which tax stamps have been affixed is not | 7 | | required to pay the additional tax that begins on July 1, 2019 | 8 | | imposed by this amendatory Act of the 101st General Assembly | 9 | | on those stamped cigarettes. | 10 | | (j) Distributors making sales of cigarettes to secondary | 11 | | distributors shall add the amount of the tax to the price of | 12 | | the cigarettes sold by the distributors. Secondary | 13 | | distributors making sales of cigarettes to retailers shall | 14 | | include the amount of the tax in the price of the cigarettes | 15 | | sold to retailers. The amount of tax shall not be less than the | 16 | | amount of taxes imposed by the State and all local | 17 | | jurisdictions. The amount of local taxes shall be calculated | 18 | | based on the location of the retailer's place of business | 19 | | shown on the retailer's certificate of registration or | 20 | | sub-registration issued to the retailer pursuant to Section 2a | 21 | | of the Retailers' Occupation Tax Act. The original packages of | 22 | | cigarettes sold to the retailer shall bear all the required | 23 | | stamps, or other indicia, for the taxes included in the price | 24 | | of cigarettes. | 25 | | (k) The amount of the Cigarette Tax imposed by this Act | 26 | | shall be separately
stated, apart from the price of the goods, |
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| 1 | | by distributors, manufacturer representatives, secondary | 2 | | distributors, and
retailers, in all bills and sales invoices.
| 3 | | (l) The distributor shall be required to collect the tax | 4 | | provided
under paragraph (a) hereof, and, to cover the costs | 5 | | of such collection,
shall be allowed a discount during any | 6 | | year commencing July 1st and ending
the following June 30th in | 7 | | accordance with the schedule set out
hereinbelow, which | 8 | | discount shall be allowed at the time of purchase of the
stamps | 9 | | when purchase is required by this Act, or at the time when the | 10 | | tax
is remitted to the Department without the purchase of | 11 | | stamps from the
Department when that method of paying the tax | 12 | | is required or authorized by
this Act. | 13 | | On and after
December 1, 1985, a discount equal to 1.75% of | 14 | | the amount of the tax payable
under this Act up to and | 15 | | including the first $3,000,000 paid hereunder by such
| 16 | | distributor to the Department during any such year and 1.5% of | 17 | | the amount of
any additional tax paid hereunder by such | 18 | | distributor to the Department during
any such year shall | 19 | | apply.
| 20 | | Two or more distributors that use a common means of | 21 | | affixing revenue tax
stamps or that are owned or controlled by | 22 | | the same interests shall be
treated as a single distributor | 23 | | for the purpose of computing the discount.
| 24 | | (m) The taxes herein imposed are in addition to all other | 25 | | occupation or
privilege taxes imposed by the State of | 26 | | Illinois, or by any political
subdivision thereof, or by any |
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| 1 | | municipal corporation.
| 2 | | (Source: P.A. 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; | 3 | | 101-604, eff. 12-13-19.)
| 4 | | Section 99. Effective date. This Act takes effect upon | 5 | | becoming law.
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