Full Text of HB1731 97th General Assembly
HB1731eng 97TH 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 1 as follows:
| 6 | | (35 ILCS 130/1) (from Ch. 120, par. 453.1)
| 7 | | Sec. 1. For the purposes of this Act:
| 8 | | "Brand Style" means a variety of cigarettes distinguished | 9 | | by the tobacco used, tar and nicotine content, flavoring used, | 10 | | size of the cigarette, filtration on the cigarette or | 11 | | packaging. | 12 | | "Cigarette", means any
roll for smoking made wholly or in | 13 | | part of tobacco irrespective of size
or shape and whether or | 14 | | not such tobacco is flavored, adulterated or
mixed with any | 15 | | other ingredient, and the wrapper or cover of which is
made of | 16 | | paper or any other substance or material except tobacco. | 17 | | "Cigarette" also includes little cigars.
| 18 | | "Little cigar" means any roll for smoking, made wholly or | 19 | | in part of tobacco, if such product uses an integrated | 20 | | cellulose acetate or other similar filter and is wrapped in any | 21 | | substance containing tobacco, other than natural leaf tobacco. | 22 | | "Contraband cigarettes" means: | 23 | | (a) cigarettes that do not bear a required tax stamp |
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| 1 | | under this Act; | 2 | | (b) cigarettes for which any required federal taxes | 3 | | have not been paid; | 4 | | (c) cigarettes that bear a counterfeit tax stamp; | 5 | | (d) cigarettes that are manufactured, fabricated, | 6 | | assembled, processed, packaged, or labeled by any person | 7 | | other than (i) the owner of the trademark rights in the | 8 | | cigarette brand or (ii) a person that is directly or | 9 | | indirectly authorized by such owner; | 10 | | (e) cigarettes imported into the United States, or | 11 | | otherwise distributed, in violation of the federal | 12 | | Imported Cigarette Compliance Act of 2000 (Title IV of | 13 | | Public Law 106-476); | 14 | | (f) cigarettes that have false manufacturing labels; | 15 | | (g) cigarettes identified in Section 3-10(a)(1) of | 16 | | this Act; or | 17 | | (h) cigarettes that are improperly tax stamped, | 18 | | including cigarettes that bear a tax stamp of another state | 19 | | or taxing jurisdiction. | 20 | | "Person" means any natural individual, firm, partnership, | 21 | | association, joint
stock company, joint adventure, public or | 22 | | private corporation, however formed,
limited liability | 23 | | company, or a receiver, executor, administrator, trustee,
| 24 | | guardian or other representative appointed by order of any | 25 | | court.
| 26 | | "Prior Continuous Compliance Taxpayer" means any person |
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| 1 | | who is licensed
under this Act and who, having been a licensee | 2 | | for a continuous period of 5
years, is determined by the | 3 | | Department not to have been either delinquent
or deficient in | 4 | | the payment of tax liability during that period or
otherwise in | 5 | | violation of this Act. Also, any taxpayer who has, as
verified | 6 | | by the Department, continuously complied with the condition of | 7 | | his
bond or other security under provisions of this Act for a | 8 | | period of 5
consecutive years shall be considered to be a | 9 | | "Prior continuous compliance
taxpayer". In calculating the | 10 | | consecutive period of time described herein
for qualification | 11 | | as a "prior continuous compliance taxpayer", a
consecutive | 12 | | period of time of qualifying compliance immediately prior to
| 13 | | the effective date of this amendatory Act of 1987 shall be | 14 | | credited to any
licensee who became licensed on or before the | 15 | | effective date of this
amendatory Act of 1987.
| 16 | | "Department" means the Department of Revenue.
| 17 | | "Sale" means any transfer, exchange or barter in any manner | 18 | | or by any
means whatsoever for a consideration, and includes | 19 | | and means all sales
made by any person.
| 20 | | "Original Package" means the individual packet, box or | 21 | | other container
whatsoever used to contain and to convey | 22 | | cigarettes to the consumer.
| 23 | | "Distributor" means any and each of the following:
| 24 | | (1) Any person engaged in the business of selling | 25 | | cigarettes in this
State who brings or causes to be brought | 26 | | into this State from without
this State any original packages |
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| 1 | | of cigarettes, on which original
packages there is no | 2 | | authorized evidence underneath a sealed transparent
wrapper | 3 | | showing that the tax liability imposed by this Act has been | 4 | | paid
or assumed by the out-of-State seller of such cigarettes, | 5 | | for sale or
other disposition in the course of such business.
| 6 | | (2) Any person who makes, manufactures or fabricates | 7 | | cigarettes in this
State for sale in this State, except a | 8 | | person who makes, manufactures
or fabricates cigarettes as a | 9 | | part of a correctional industries program
for sale to residents | 10 | | incarcerated in penal institutions or resident patients
of a | 11 | | State-operated mental health facility.
| 12 | | (3) Any person who makes, manufactures or fabricates | 13 | | cigarettes
outside this State, which cigarettes are placed in | 14 | | original packages
contained in sealed transparent wrappers, | 15 | | for delivery or shipment into
this State, and who elects to | 16 | | qualify and is accepted by the Department
as a distributor | 17 | | under Section 4b of this Act.
| 18 | | "Place of business" shall mean and include any place where | 19 | | cigarettes
are sold or where cigarettes are manufactured, | 20 | | stored or kept for the
purpose of sale or consumption, | 21 | | including any vessel, vehicle, airplane,
train or vending | 22 | | machine.
| 23 | | "Business" means any trade, occupation, activity or | 24 | | enterprise
engaged in for the purpose of selling cigarettes in | 25 | | this State.
| 26 | | "Retailer" means any person who engages in the making of |
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| 1 | | transfers of
the ownership of, or title to, cigarettes to a | 2 | | purchaser for use or
consumption and not for resale in any | 3 | | form, for a valuable consideration. "Retailer" does not include | 4 | | a person:
| 5 | | (1) who transfers to residents incarcerated in penal | 6 | | institutions
or resident patients of a State-operated | 7 | | mental health facility ownership
of cigarettes made, | 8 | | manufactured, or fabricated as part of a correctional
| 9 | | industries program; or | 10 | | (2) who transfers cigarettes to a not-for-profit | 11 | | research institution that conducts tests concerning the | 12 | | health effects of tobacco products and who does not offer | 13 | | the cigarettes for resale.
| 14 | | "Retailer" shall be construed to include any person who | 15 | | engages in
the making of transfers of the ownership of, or | 16 | | title to, cigarettes to
a purchaser, for use or consumption by | 17 | | any other person to whom such
purchaser may transfer the | 18 | | cigarettes without a valuable consideration,
except a person | 19 | | who transfers to residents incarcerated in penal institutions
| 20 | | or resident patients of a State-operated mental health facility | 21 | | ownership
of cigarettes made, manufactured or fabricated as | 22 | | part of a correctional
industries program.
| 23 | | "Secondary distributor" means any person engaged in the | 24 | | business of selling cigarettes who purchases stamped original | 25 | | packages of cigarettes from a licensed distributor under this | 26 | | Act or the Cigarette Use Tax Act, sells 75% or more of those |
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| 1 | | cigarettes to retailers for resale, and maintains an | 2 | | established business where a substantial stock of cigarettes is | 3 | | available to retailers for resale. | 4 | | "Stamp" or "stamps" mean the indicia required to be affixed | 5 | | on a pack of cigarettes that evidence payment of the tax on | 6 | | cigarettes under Section 2 of this Act. | 7 | | "Related party" means any person that is associated with | 8 | | any other person because he or she: | 9 | | (a) is an officer or director of a business; or | 10 | | (b) is legally recognized as a partner in business. | 11 | | (Source: P.A. 95-462, eff. 8-27-07; 95-1053, eff. 1-1-10; | 12 | | 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10.)
| 13 | | Section 10. The Cigarette Use Tax Act is amended by | 14 | | changing Section 1 as follows:
| 15 | | (35 ILCS 135/1) (from Ch. 120, par. 453.31)
| 16 | | Sec. 1. For the purpose of this Act, unless otherwise | 17 | | required by the
context:
| 18 | | "Use" means the exercise by any person of any right or | 19 | | power over
cigarettes incident to the ownership or possession | 20 | | thereof, other than the
making of a sale thereof in the course | 21 | | of engaging in a business of selling
cigarettes and shall | 22 | | include the keeping or retention of cigarettes for use, except | 23 | | that "use" does not include the use of cigarettes by a | 24 | | not-for-profit research institution conducting tests |
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| 1 | | concerning the health effects of tobacco products, provided the | 2 | | cigarettes are not offered for resale.
| 3 | | "Brand Style" means a variety of cigarettes distinguished | 4 | | by the tobacco used, tar and nicotine content, flavoring used, | 5 | | size of the cigarette, filtration on the cigarette or | 6 | | packaging. | 7 | | "Cigarette" means any roll for smoking made wholly or in | 8 | | part of tobacco
irrespective of size or shape and whether or | 9 | | not such tobacco is flavored,
adulterated or mixed with any | 10 | | other ingredient, and the wrapper or cover of
which is made of | 11 | | paper or any other substance or material except tobacco. | 12 | | "Cigarette" also includes little cigars.
| 13 | | "Little cigar" means any roll for smoking, made wholly or | 14 | | in part of tobacco, if such product uses an integrated | 15 | | cellulose acetate or other similar filter and is wrapped in any | 16 | | substance containing tobacco, other than natural leaf tobacco. | 17 | | "Contraband cigarettes" means: | 18 | | (a) cigarettes that do not bear a required tax stamp | 19 | | under this Act; | 20 | | (b) cigarettes for which any required federal taxes | 21 | | have not been paid; | 22 | | (c) cigarettes that bear a counterfeit tax stamp; | 23 | | (d) cigarettes that are manufactured, fabricated, | 24 | | assembled, processed, packaged, or labeled by any person | 25 | | other than (i) the owner of the trademark rights in the | 26 | | cigarette brand or (ii) a person that is directly or |
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| 1 | | indirectly authorized by such owner; | 2 | | (e) cigarettes imported into the United States, or | 3 | | otherwise distributed, in violation of the federal | 4 | | Imported Cigarette Compliance Act of 2000 (Title IV of | 5 | | Public Law 106-476); | 6 | | (f) cigarettes that have false manufacturing labels; | 7 | | (g) cigarettes identified in Section 3-10(a)(1) of | 8 | | this Act; or | 9 | | (h) cigarettes that are improperly tax stamped, | 10 | | including cigarettes that bear a tax stamp of another state | 11 | | or taxing jurisdiction. | 12 | | "Person" means any natural individual, firm, partnership, | 13 | | association,
joint stock company, joint adventure, public or | 14 | | private corporation,
however formed, limited liability | 15 | | company, or a receiver, executor,
administrator, trustee, | 16 | | guardian or other representative appointed by order of
any | 17 | | court.
| 18 | | "Department" means the Department of Revenue.
| 19 | | "Sale" means any transfer, exchange or barter in any manner | 20 | | or by any
means whatsoever for a consideration, and includes | 21 | | and means all sales made
by any person.
| 22 | | "Original Package" means the individual packet, box or | 23 | | other container
whatsoever used to contain and to convey | 24 | | cigarettes to the consumer.
| 25 | | "Distributor" means any and each of the following:
| 26 | | a. Any person engaged in the business of selling |
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| 1 | | cigarettes in this
State who brings or causes to be brought | 2 | | into this State from without this
State any original | 3 | | packages of cigarettes, on which original packages there
is | 4 | | no authorized evidence underneath a sealed transparent | 5 | | wrapper showing
that the tax liability imposed by this Act | 6 | | has been paid or assumed by the
out-of-State seller of such | 7 | | cigarettes, for sale in the course of such
business.
| 8 | | b. Any person who makes, manufactures or fabricates | 9 | | cigarettes in this
State for sale, except a person who | 10 | | makes, manufactures or fabricates
cigarettes for sale to | 11 | | residents incarcerated in penal institutions or resident
| 12 | | patients or a State-operated mental health facility.
| 13 | | c. Any person who makes, manufactures or fabricates | 14 | | cigarettes outside
this State, which cigarettes are placed | 15 | | in original packages contained in
sealed transparent | 16 | | wrappers, for delivery or shipment into this State, and
who | 17 | | elects to qualify and is accepted by the Department as a | 18 | | distributor
under Section 7 of this Act.
| 19 | | "Distributor" does not include any person who transfers | 20 | | cigarettes to a not-for-profit
research institution that | 21 | | conducts tests concerning the
health effects of tobacco | 22 | | products and who does not offer
the cigarettes for resale.
| 23 | | "Distributor maintaining a place of business in this | 24 | | State", or any like
term, means any distributor having or | 25 | | maintaining within this State,
directly or by a subsidiary, an | 26 | | office, distribution house, sales house,
warehouse or other |
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| 1 | | place of business, or any agent operating within this
State | 2 | | under the authority of the distributor or its subsidiary,
| 3 | | irrespective of whether such place of business or agent is | 4 | | located here
permanently or temporarily, or whether such | 5 | | distributor or subsidiary is
licensed to transact business | 6 | | within this State.
| 7 | | "Business" means any trade, occupation, activity or | 8 | | enterprise engaged
in or conducted in this State for the | 9 | | purpose of selling cigarettes.
| 10 | | "Prior Continuous Compliance Taxpayer" means any person | 11 | | who is licensed
under this Act and who, having been a licensee | 12 | | for a continuous period of 5
years, is determined by the | 13 | | Department not to have been either delinquent
or deficient in | 14 | | the payment of tax liability during that period or
otherwise in | 15 | | violation of this Act. Also, any taxpayer who has, as
verified | 16 | | by the Department, continuously complied with the
condition of | 17 | | his bond or other security under provisions of this Act of a
| 18 | | period of 5 consecutive years shall be considered to be a | 19 | | "prior
continuous compliance taxpayer". In calculating the | 20 | | consecutive period of
time described herein for qualification | 21 | | as a "prior continuous compliance
taxpayer", a consecutive | 22 | | period of time of qualifying compliance
immediately prior to | 23 | | the effective date of this amendatory Act of 1987 shall be
| 24 | | credited to any licensee who became licensed on or before the | 25 | | effective date
of this amendatory Act of 1987.
| 26 | | "Secondary distributor" means any person engaged in the |
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| 1 | | business of selling cigarettes who purchases stamped original | 2 | | packages of cigarettes from a licensed distributor under this | 3 | | Act or the Cigarette Tax Act, sells 75% or more of those | 4 | | cigarettes to retailers for resale, and maintains an | 5 | | established business where a substantial stock of cigarettes is | 6 | | available to retailers for resale. | 7 | | "Secondary distributor maintaining a place of business in | 8 | | this State", or any like term, means any secondary distributor | 9 | | having or maintaining within this State, directly or by a | 10 | | subsidiary, an office, distribution house, sales house, | 11 | | warehouse, or other place of business, or any agent operating | 12 | | within this State under the authority of the secondary | 13 | | distributor or its subsidiary, irrespective of whether such | 14 | | place of business or agent is located here permanently or | 15 | | temporarily, or whether such secondary distributor or | 16 | | subsidiary is licensed to transact business within this State. | 17 | | "Stamp" or "stamps" mean the indicia required to be affixed | 18 | | on a pack of cigarettes that evidence payment of the tax on | 19 | | cigarettes under Section 2 of this Act. | 20 | | "Related party" means any person that is associated with | 21 | | any other person because he or she: | 22 | | (a) is an officer or director of a business; or | 23 | | (b) is legally recognized as a partner in business. | 24 | | (Source: P.A. 95-462, eff. 8-27-07; 95-1053, eff. 1-1-10; | 25 | | 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10.)
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