Full Text of HB0454 096th General Assembly
HB0454 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB0454
Introduced 2/4/2009, by Rep. LaShawn K. Ford SYNOPSIS AS INTRODUCED: |
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35 ILCS 130/2 |
from Ch. 120, par. 453.2 |
35 ILCS 135/2 |
from Ch. 120, par. 453.32 |
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Amends the Cigarette Tax Act and the Cigarette Use Tax Act. Provides that, beginning July 1, 2009, an additional tax of 50 mills per cigarette ($1 per package of 20) shall be imposed. Effective immediately.
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A BILL FOR
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HB0454 |
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LRB096 05798 RCE 15875 b |
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Cigarette Tax Act is amended by changing | 5 |
| Section 2 as follows:
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| (35 ILCS 130/2) (from Ch. 120, par. 453.2)
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| Sec. 2. Tax imposed; rate; collection, payment, and | 8 |
| distribution;
discount. | 9 |
| (a) A tax is imposed upon any person engaged in business as | 10 |
| a
retailer of cigarettes in this State at the rate of 5 1/2 | 11 |
| mills per
cigarette sold, or otherwise disposed of in the | 12 |
| course of such business in
this State. In addition to any other | 13 |
| tax imposed by this Act, a tax is
imposed upon any person | 14 |
| engaged in business as a retailer of cigarettes in
this State | 15 |
| at a rate of 1/2 mill per cigarette sold or otherwise disposed
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| of in the course of such business in this State on and after | 17 |
| January 1,
1947, and shall be paid into the Metropolitan Fair | 18 |
| and Exposition Authority
Reconstruction Fund or as otherwise | 19 |
| provided in Section 29. On and after December 1, 1985, in | 20 |
| addition to any
other tax imposed by this Act, a tax is imposed | 21 |
| upon any person engaged in
business as a retailer of cigarettes | 22 |
| in this State at a rate of 4 mills per
cigarette sold or | 23 |
| otherwise disposed of in the course of such business in
this |
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HB0454 |
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LRB096 05798 RCE 15875 b |
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| State. Of the additional tax imposed by this amendatory Act of | 2 |
| 1985,
$9,000,000 of the moneys received by the Department of | 3 |
| Revenue pursuant to
this Act shall be paid each month into the | 4 |
| Common School Fund. On and after
the effective date of this | 5 |
| amendatory Act of 1989, in addition to any other tax
imposed by | 6 |
| this Act, a tax is imposed upon any person engaged in business | 7 |
| as a
retailer of cigarettes at the rate of 5 mills per | 8 |
| cigarette sold or
otherwise disposed of in the course of such | 9 |
| business in this State.
On and after the effective date of this | 10 |
| amendatory Act of 1993, in addition
to any other tax imposed by | 11 |
| this Act, a tax is imposed upon any person engaged
in business | 12 |
| as a retailer of cigarettes at the rate of 7 mills per | 13 |
| cigarette
sold or otherwise disposed of in the course of such | 14 |
| business in this State.
On and after December 15, 1997, in | 15 |
| addition
to any other tax imposed by this Act, a tax is imposed | 16 |
| upon any person engaged
in business as a retailer of cigarettes | 17 |
| at the rate of 7 mills per cigarette
sold or otherwise disposed | 18 |
| of in the course of such business of this State.
All of the | 19 |
| moneys received by the Department of Revenue pursuant to this | 20 |
| Act
and the Cigarette Use Tax Act from the additional taxes | 21 |
| imposed by this
amendatory Act of 1997, shall be paid each | 22 |
| month into the Common School Fund.
On and after July 1, 2002, | 23 |
| in addition to any other tax imposed by this Act,
a tax is | 24 |
| imposed upon any person engaged in business as a retailer of
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| cigarettes at the rate of 20.0 mills per cigarette sold or | 26 |
| otherwise disposed
of
in the course of such business in this |
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HB0454 |
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LRB096 05798 RCE 15875 b |
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| State. Beginning on July 1, 2009, in addition to any other tax | 2 |
| imposed by this Act, a tax is imposed upon any person engaged | 3 |
| in business as a retailer of cigarettes at the rate of 50 mills | 4 |
| per cigarette sold or otherwise disposed of in the course of | 5 |
| such business in this State.
The payment of such taxes shall be | 6 |
| evidenced by a stamp affixed to
each original package of | 7 |
| cigarettes, or an authorized substitute for such stamp
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| imprinted on each original package of such cigarettes | 9 |
| underneath the sealed
transparent outside wrapper of such | 10 |
| original package, as hereinafter provided.
However, such taxes | 11 |
| are not imposed upon any activity in such business in
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| interstate commerce or otherwise, which activity may not under
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| the Constitution and statutes of the United States be made the | 14 |
| subject of
taxation by this State.
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| Beginning on the effective date of this amendatory Act of | 16 |
| the 92nd General
Assembly and through June 30, 2006,
all of the | 17 |
| moneys received by the Department of Revenue pursuant to this | 18 |
| Act
and the Cigarette Use Tax Act, other than the moneys that | 19 |
| are dedicated to the Common
School Fund, shall be distributed | 20 |
| each month as follows: first, there shall be
paid into the | 21 |
| General Revenue Fund an amount which, when added to the amount
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| paid into the Common School Fund for that month, equals | 23 |
| $33,300,000, except that in the month of August of 2004, this | 24 |
| amount shall equal $83,300,000; then, from
the moneys | 25 |
| remaining, if any amounts required to be paid into the General
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| Revenue Fund in previous months remain unpaid, those amounts |
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HB0454 |
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LRB096 05798 RCE 15875 b |
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| shall be paid into
the General Revenue Fund;
then, beginning on | 2 |
| April 1, 2003, from the moneys remaining, $5,000,000 per
month | 3 |
| shall be paid into the School Infrastructure Fund; then, if any | 4 |
| amounts
required to be paid into the School Infrastructure Fund | 5 |
| in previous months
remain unpaid, those amounts shall be paid | 6 |
| into the School Infrastructure
Fund;
then the moneys remaining, | 7 |
| if any, shall be paid into the Long-Term Care
Provider Fund.
To | 8 |
| the extent that more than $25,000,000 has been paid into the | 9 |
| General
Revenue Fund and Common School Fund per month for the | 10 |
| period of July 1, 1993
through the effective date of this | 11 |
| amendatory Act of 1994 from combined
receipts
of the Cigarette | 12 |
| Tax Act and the Cigarette Use Tax Act, notwithstanding the
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| distribution provided in this Section, the Department of | 14 |
| Revenue is hereby
directed to adjust the distribution provided | 15 |
| in this Section to increase the
next monthly payments to the | 16 |
| Long Term Care Provider Fund by the amount paid to
the General | 17 |
| Revenue Fund and Common School Fund in excess of $25,000,000 | 18 |
| per
month and to decrease the next monthly payments to the | 19 |
| General Revenue Fund and
Common School Fund by that same excess | 20 |
| amount.
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| Beginning on July 1, 2006, all of the moneys received by | 22 |
| the Department of Revenue pursuant to this Act and the | 23 |
| Cigarette Use Tax Act, other than the moneys that are dedicated | 24 |
| to the Common School Fund, shall be distributed each month as | 25 |
| follows: first, there shall be paid into the General Revenue | 26 |
| Fund an amount that, when added to the amount paid into the |
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HB0454 |
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| Common School Fund for that month, equals $29,200,000; then, | 2 |
| from the moneys remaining, if any amounts required to be paid | 3 |
| into the General Revenue Fund in previous months remain unpaid, | 4 |
| those amounts shall be paid into the General Revenue Fund; then | 5 |
| from the moneys remaining, $5,000,000 per month shall be paid | 6 |
| into the School Infrastructure Fund; then, if any amounts | 7 |
| required to be paid into the School Infrastructure Fund in | 8 |
| previous months remain unpaid, those amounts shall be paid into | 9 |
| the School Infrastructure Fund; then the moneys remaining, if | 10 |
| any, shall be paid into the Long-Term Care Provider Fund.
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| When any tax imposed herein terminates or has terminated, | 12 |
| distributors
who have bought stamps while such tax was in | 13 |
| effect and who therefore paid
such tax, but who can show, to | 14 |
| the Department's satisfaction, that they
sold the cigarettes to | 15 |
| which they affixed such stamps after such tax had
terminated | 16 |
| and did not recover the tax or its equivalent from purchasers,
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| shall be allowed by the Department to take credit for such | 18 |
| absorbed tax
against subsequent tax stamp purchases from the | 19 |
| Department by such
distributor.
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| The impact of the tax levied by this Act is imposed upon | 21 |
| the retailer
and shall be prepaid or pre-collected by the | 22 |
| distributor for the purpose of
convenience and facility only, | 23 |
| and the amount of the tax shall be added to
the price of the | 24 |
| cigarettes sold by such distributor. Collection of the tax
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| shall be evidenced by a stamp or stamps affixed to each | 26 |
| original package of
cigarettes, as hereinafter provided.
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LRB096 05798 RCE 15875 b |
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| Each distributor shall collect the tax from the retailer at | 2 |
| or before
the time of the sale, shall affix the stamps as | 3 |
| hereinafter required, and
shall remit the tax collected from | 4 |
| retailers to the Department, as
hereinafter provided. Any | 5 |
| distributor who fails to properly collect and pay
the tax | 6 |
| imposed by this Act shall be liable for the tax. Any | 7 |
| distributor having
cigarettes to which stamps have been affixed | 8 |
| in his possession for sale on the
effective date of this | 9 |
| amendatory Act of 1989 shall not be required to pay the
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| additional tax imposed by this amendatory Act of 1989 on such | 11 |
| stamped
cigarettes. Any distributor having cigarettes to which | 12 |
| stamps have been affixed
in his or her possession for sale at | 13 |
| 12:01 a.m. on the effective date of this
amendatory Act of | 14 |
| 1993, is required to pay the additional tax imposed by this
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| amendatory Act of 1993 on such stamped cigarettes. This | 16 |
| payment, less the
discount provided in subsection (b), shall be | 17 |
| due when the distributor first
makes a purchase of cigarette | 18 |
| tax stamps after the effective date of this
amendatory Act of | 19 |
| 1993, or on the first due date of a return under this Act
after | 20 |
| the effective date of this amendatory Act of 1993, whichever | 21 |
| occurs
first. Any distributor having cigarettes to which stamps | 22 |
| have been affixed
in his possession for sale on December 15, | 23 |
| 1997
shall not be required to pay the additional tax imposed by | 24 |
| this amendatory Act
of 1997 on such stamped cigarettes.
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| Any distributor having cigarettes to which stamps have been | 26 |
| affixed in his
or her
possession for sale on July 1, 2002 shall |
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HB0454 |
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LRB096 05798 RCE 15875 b |
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| not be required to pay the additional
tax imposed by this | 2 |
| amendatory Act of the 92nd General Assembly on those
stamped
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| cigarettes.
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| Any distributor having cigarettes to which stamps have been | 5 |
| affixed in his or her possession for sale on or after July 1, | 6 |
| 2009 is required to pay the additional tax imposed by this | 7 |
| amendatory Act of the 96th General Assembly on those stamped | 8 |
| cigarettes. This payment, less the discount provided in | 9 |
| subsection (b), is due when the distributor first makes a | 10 |
| purchase of cigarette tax stamps on or after July 1, 2009 or on | 11 |
| the first due date of a return under this Act occurring on or | 12 |
| after July 1, 2009, whichever occurs first. | 13 |
| The amount of the Cigarette Tax imposed by this Act shall | 14 |
| be separately
stated, apart from the price of the goods, by | 15 |
| both distributors and
retailers, in all advertisements, bills | 16 |
| and sales invoices.
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| (b) The distributor shall be required to collect the taxes | 18 |
| provided
under paragraph (a) hereof, and, to cover the costs of | 19 |
| such collection,
shall be allowed a discount during any year | 20 |
| commencing July 1st and ending
the following June 30th in | 21 |
| accordance with the schedule set out
hereinbelow, which | 22 |
| discount shall be allowed at the time of purchase of the
stamps | 23 |
| when purchase is required by this Act, or at the time when the | 24 |
| tax
is remitted to the Department without the purchase of | 25 |
| stamps from the
Department when that method of paying the tax | 26 |
| is required or authorized by
this Act. Prior to December 1, |
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LRB096 05798 RCE 15875 b |
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| 1985, a discount equal to 1 2/3% of
the amount of the tax up to | 2 |
| and including the first $700,000 paid hereunder by
such | 3 |
| distributor to the Department during any such year; 1 1/3% of | 4 |
| the next
$700,000 of tax or any part thereof, paid hereunder by | 5 |
| such distributor to the
Department during any such year; 1% of | 6 |
| the next $700,000 of tax, or any part
thereof, paid hereunder | 7 |
| by such distributor to the Department during any such
year, and | 8 |
| 2/3 of 1% of the amount of any additional tax paid hereunder by | 9 |
| such
distributor to the Department during any such year shall | 10 |
| apply. On and after
December 1, 1985, a discount equal to 1.75% | 11 |
| of the amount of the tax payable
under this Act up to and | 12 |
| including the first $3,000,000 paid hereunder by such
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| distributor to the Department during any such year and 1.5% of | 14 |
| the amount of
any additional tax paid hereunder by such | 15 |
| distributor to the Department during
any such year shall apply.
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| Two or more distributors that use a common means of | 17 |
| affixing revenue tax
stamps or that are owned or controlled by | 18 |
| the same interests shall be
treated as a single distributor for | 19 |
| the purpose of computing the discount.
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| (c) The taxes herein imposed are in addition to all other | 21 |
| occupation or
privilege taxes imposed by the State of Illinois, | 22 |
| or by any political
subdivision thereof, or by any municipal | 23 |
| corporation.
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| (Source: P.A. 93-839, eff. 7-30-04; 94-91, eff. 7-1-05; 94-839, | 25 |
| eff. 6-6-06.)
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HB0454 |
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LRB096 05798 RCE 15875 b |
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| Section 10. The Cigarette Use Tax Act is amended by | 2 |
| changing Section 2 as follows:
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| (35 ILCS 135/2) (from Ch. 120, par. 453.32)
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| Sec. 2.
A tax is imposed upon the privilege of using | 5 |
| cigarettes in this
State, at the rate of 6 mills per cigarette | 6 |
| so used. On and after
December 1, 1985, in addition to any | 7 |
| other tax imposed by this Act, a tax
is imposed upon the | 8 |
| privilege of using cigarettes in this State at a rate
of 4 | 9 |
| mills per cigarette so used. On and after the effective date of | 10 |
| this
amendatory Act of 1989, in addition to any other tax | 11 |
| imposed by this Act, a
tax is imposed upon the privilege of | 12 |
| using cigarettes in this State at the
rate of 5 mills per | 13 |
| cigarette so used. On and after the effective date of this
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| amendatory Act of 1993, in addition to any other tax imposed by | 15 |
| this Act, a tax
is imposed upon the privilege of using | 16 |
| cigarettes in this State at a rate of 7
mills per cigarette so | 17 |
| used. On and after December 15,
1997, in addition to any other | 18 |
| tax imposed by this Act, a tax
is imposed upon the privilege of | 19 |
| using cigarettes in this State at a rate of
7 mills per | 20 |
| cigarette so used.
On and after July 1, 2002, in addition to | 21 |
| any other tax imposed by
this Act, a tax is imposed
upon the | 22 |
| privilege of using cigarettes in this State at a rate of 20.0 | 23 |
| mills
per cigarette so used. Beginning on July 1, 2009, in | 24 |
| addition to any other tax imposed by this Act, a tax is imposed | 25 |
| upon the privilege of using cigarettes in this State at a rate |
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HB0454 |
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LRB096 05798 RCE 15875 b |
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| of 50 mills per cigarette so used.
The taxes herein imposed | 2 |
| shall be in
addition to
all other occupation or privilege taxes | 3 |
| imposed by the State of Illinois or by
any political | 4 |
| subdivision thereof or by any municipal corporation.
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| When any tax imposed herein terminates or has terminated, | 6 |
| distributors
who have bought stamps while such tax was in | 7 |
| effect and who therefore paid
such tax, but who can show, to | 8 |
| the Department's satisfaction, that they
sold the cigarettes to | 9 |
| which they affixed such stamps after such tax had
terminated | 10 |
| and did not recover the tax or its equivalent from purchasers,
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| shall be allowed by the Department to take credit for such | 12 |
| absorbed tax
against subsequent tax stamp purchases from the | 13 |
| Department by such
distributors.
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| When the word "tax" is used in this Act, it shall include | 15 |
| any tax or tax
rate imposed by this Act and shall mean the | 16 |
| singular of "tax" or the plural
"taxes" as the context may | 17 |
| require.
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| Any distributor having cigarettes to which stamps have been | 19 |
| affixed in
his possession for sale on the effective date of | 20 |
| this amendatory Act of
1989 shall not be required to pay the | 21 |
| additional tax imposed by this
amendatory Act of 1989 on such | 22 |
| stamped cigarettes. Any distributor having
cigarettes to which | 23 |
| stamps have been affixed in his or her possession for sale
at | 24 |
| 12:01 a.m. on the effective date of this amendatory Act of | 25 |
| 1993, is required
to pay the additional tax imposed by this | 26 |
| amendatory Act of 1993 on such
stamped cigarettes. This payment |
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HB0454 |
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LRB096 05798 RCE 15875 b |
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| shall be due when the distributor first makes
a purchase of | 2 |
| cigarette tax stamps after the effective date of this | 3 |
| amendatory
Act of 1993, or on the first due date of a return | 4 |
| under this Act after the
effective date of this amendatory Act | 5 |
| of 1993, whichever occurs first. Once a
distributor tenders | 6 |
| payment of the additional tax to the Department, the
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| distributor may purchase stamps from the Department.
Any | 8 |
| distributor having cigarettes to which stamps have been affixed
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| in his possession for sale on December 15, 1997
shall not be | 10 |
| required to pay the additional tax imposed by this amendatory | 11 |
| Act
of 1997 on such stamped cigarettes.
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| Any distributor having cigarettes to which stamps have been | 13 |
| affixed in his
or her possession for sale on July 1, 2002 shall | 14 |
| not be required to pay the
additional
tax imposed by this | 15 |
| amendatory Act of the 92nd General Assembly on those
stamped
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| cigarettes.
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| Any distributor having cigarettes to which stamps have been | 18 |
| affixed in his or her
possession for sale on or after July 1, | 19 |
| 2009 is required to pay the additional tax imposed by this | 20 |
| amendatory Act of the 96th General Assembly on those stamped | 21 |
| cigarettes. This payment, less the discount provided in Section | 22 |
| 3 of this Act, is due when the distributor first makes a | 23 |
| purchase of cigarette tax stamps on or after July 1, or on the | 24 |
| first due date of a return under this Act occurring on or after | 25 |
| July 1, 2009, whichever occurs first. | 26 |
| (Source: P.A. 92-536, eff. 6-6-02.)
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LRB096 05798 RCE 15875 b |
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| Section 99. Effective date. This Act takes effect upon | 2 |
| becoming law.
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