Full Text of SB1925 97th General Assembly
SB1925 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB1925 Introduced 2/10/2011, by Sen. Terry Link SYNOPSIS AS INTRODUCED: |
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35 ILCS 143/10-5 |
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35 ILCS 143/10-10 |
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35 ILCS 143/10-30 |
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Amends the Tobacco Products Tax Act of 1995. Defines "little cigar". Provides that little cigars shall be taxed at a rate per cigar that is equal to the rate imposed per cigarette under the Cigarette Tax Act. Provides that a distributor shall disclose the quantity of little cigars sold or otherwise disposed of.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Tobacco Products Tax Act of 1995 is amended | 5 | | by changing Sections 10-5, 10-10, and 10-30 as follows:
| 6 | | (35 ILCS 143/10-5)
| 7 | | Sec. 10-5. Definitions. For purposes of this Act:
| 8 | | "Business" means any trade, occupation, activity, or | 9 | | enterprise engaged
in, at any location whatsoever, for the | 10 | | purpose of selling tobacco products.
| 11 | | "Cigarette" has the meaning ascribed to the term in Section | 12 | | 1 of the
Cigarette Tax Act.
| 13 | | "Correctional Industries program" means a program run by a | 14 | | State penal
institution in which residents of the penal | 15 | | institution produce tobacco
products for sale to persons | 16 | | incarcerated in penal institutions or resident
patients of a | 17 | | State operated mental health facility.
| 18 | | "Department" means the Illinois Department of Revenue.
| 19 | | "Distributor" means any of the following:
| 20 | | (1) Any manufacturer or wholesaler in this State | 21 | | engaged in the business
of selling tobacco products who | 22 | | sells, exchanges, or distributes tobacco
products to | 23 | | retailers or consumers in this State.
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| 1 | | (2) Any manufacturer or wholesaler engaged
in
the | 2 | | business of selling tobacco products from without this | 3 | | State who sells,
exchanges, distributes,
ships, or | 4 | | transports tobacco products to retailers or consumers | 5 | | located in
this State,
so long as that manufacturer or | 6 | | wholesaler has or maintains within this State,
directly or | 7 | | by subsidiary, an office, sales house, or other place of | 8 | | business,
or any agent or other representative operating | 9 | | within this State under the
authority of the person or | 10 | | subsidiary, irrespective of whether the place of
business | 11 | | or agent or other representative is located here | 12 | | permanently or
temporarily.
| 13 | | (3) Any retailer who receives tobacco products on which | 14 | | the tax has not
been or
will not be paid by another | 15 | | distributor.
| 16 | | "Distributor" does not include any person, wherever | 17 | | resident or located, who
makes, manufactures, or fabricates | 18 | | tobacco products as part of a Correctional
Industries program | 19 | | for sale to residents incarcerated in penal institutions or
| 20 | | resident patients of a State operated mental health facility. | 21 | | "Little cigar" means any roll for smoking, made wholly or | 22 | | in part of tobacco, if such product uses an integrated | 23 | | cellulose acetate or other similar filter and is wrapped in any | 24 | | substance containing tobacco, other than natural leaf tobacco.
| 25 | | "Manufacturer" means any person, wherever resident or | 26 | | located, who
manufactures and sells tobacco products, except a |
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| 1 | | person who makes,
manufactures, or fabricates tobacco products | 2 | | as a part of a Correctional
Industries program for sale to | 3 | | persons incarcerated in penal institutions or
resident | 4 | | patients of a State operated mental health facility.
| 5 | | "Person" means any natural individual, firm, partnership, | 6 | | association, joint
stock company, joint venture, limited | 7 | | liability company, or public or private
corporation, however | 8 | | formed, or a receiver, executor, administrator, trustee,
| 9 | | conservator, or other representative appointed by order of any | 10 | | court.
| 11 | | "Place of business" means and includes any place where | 12 | | tobacco products
are sold or where tobacco products are | 13 | | manufactured, stored, or kept for
the purpose of sale or | 14 | | consumption, including any vessel, vehicle, airplane,
train, | 15 | | or vending machine.
| 16 | | "Retailer" means any person in this State engaged in the | 17 | | business of selling
tobacco products to consumers in this | 18 | | State, regardless of quantity or number
of sales.
| 19 | | "Sale" means any transfer, exchange, or barter in any | 20 | | manner or by any means
whatsoever for a consideration and | 21 | | includes all sales made by
persons.
| 22 | | "Tobacco products" means any cigars , including little | 23 | | cigars ; cheroots; stogies; periques; granulated,
plug cut, | 24 | | crimp cut, ready rubbed, and other smoking tobacco; snuff or | 25 | | snuff
flour; cavendish; plug and twist tobacco; fine-cut and | 26 | | other chewing tobaccos;
shorts; refuse scraps, clippings, |
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| 1 | | cuttings, and sweeping of tobacco; and
other kinds and forms of | 2 | | tobacco, prepared in such manner as to be suitable for
chewing | 3 | | or smoking in a pipe or otherwise, or both for chewing and | 4 | | smoking; but
does not include cigarettes or tobacco purchased | 5 | | for the manufacture of
cigarettes by cigarette distributors and | 6 | | manufacturers defined in the
Cigarette Tax Act and persons who | 7 | | make, manufacture, or fabricate
cigarettes as a part of a | 8 | | Correctional Industries program for sale to
residents | 9 | | incarcerated in penal institutions or resident patients of a
| 10 | | State operated mental health facility.
| 11 | | "Wholesale price" means the established list price for | 12 | | which a manufacturer
sells tobacco products to a distributor, | 13 | | before the allowance of any discount,
trade allowance, rebate, | 14 | | or other reduction.
In the absence of such an established list | 15 | | price, the manufacturer's invoice
price at which the | 16 | | manufacturer sells the tobacco product to unaffiliated
| 17 | | distributors, before any discounts, trade allowances, rebates, | 18 | | or other
reductions, shall be presumed to be the wholesale | 19 | | price.
| 20 | | "Wholesaler" means any person, wherever resident or | 21 | | located, engaged in the
business of selling tobacco products to | 22 | | others for the purpose of resale.
| 23 | | (Source: P.A. 92-231, eff. 8-2-01.)
| 24 | | (35 ILCS 143/10-10)
| 25 | | Sec. 10-10. Tax imposed. On the first day of the third |
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| 1 | | month after the
month in which this Act becomes law, a tax is | 2 | | imposed on any person engaged in
business as a distributor of | 3 | | tobacco products . The tax on tobacco products, other than | 4 | | little cigars , as defined in Section 10-5,
is at the rate of | 5 | | 18% of the wholesale price of tobacco products sold or | 6 | | otherwise
disposed of to retailers or consumers located in this | 7 | | State. The tax on little cigars, as defined in Section 10-5, is | 8 | | at a rate per little cigar that is equal to the total taxes | 9 | | imposed per cigarette under Section 2 of the Cigarette Tax Act, | 10 | | as such Section may be amended from time to time, or under any | 11 | | successor provisions taxing cigarettes. The tax is in
addition | 12 | | to all other
occupation or privilege taxes imposed by the State | 13 | | of Illinois, by any
political subdivision thereof, or by any | 14 | | municipal corporation. However, the
tax is not imposed upon any | 15 | | activity in that business in interstate commerce or
otherwise, | 16 | | to the extent to which that activity may not, under the | 17 | | Constitution
and Statutes of the United States, be made the | 18 | | subject of taxation by this
State. The tax is also not imposed | 19 | | on sales made to the United States or any
entity thereof.
| 20 | | All moneys received by the Department under this Act shall | 21 | | be paid into
the Long-Term Care Provider Fund of the State | 22 | | Treasury.
| 23 | | (Source: P.A. 92-231, eff. 8-2-01.)
| 24 | | (35 ILCS 143/10-30)
| 25 | | Sec. 10-30. Returns. Every distributor shall, on or before |
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| 1 | | the 15th day of
each month, file a return with the Department | 2 | | covering the preceding calendar
month. The return shall | 3 | | disclose the wholesale price for tobacco products and the | 4 | | quantity of little cigars sold
or otherwise disposed of and | 5 | | other information that the Department may
reasonably require. | 6 | | The return shall be filed upon a form prescribed and
furnished | 7 | | by the Department.
| 8 | | At the time when any return of any distributor is due to be | 9 | | filed with
the Department, the distributor shall also remit to | 10 | | the Department the
tax liability that the distributor has | 11 | | incurred for transactions
occurring in the preceding calendar | 12 | | month.
| 13 | | (Source: P.A. 89-21, eff. 6-6-95.)
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