Full Text of SB3836 101st General Assembly
SB3836 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB3836 Introduced 2/14/2020, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED: |
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Amends the Tobacco Products Tax Act of 1995. Provides that the term "electronic cigarette" does not include any cartridge or container of a solution or substance that contains cannabis subject to tax under the Compassionate Use of Medical Cannabis Program Act or the Cannabis Cultivation Privilege Tax Law. Effective immediately.
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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 Section 10-5 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 | | "Contraband little cigar" means: | 14 | | (1) packages of little cigars containing 20 or 25 | 15 | | little cigars that do not bear a required tax stamp under | 16 | | this Act; | 17 | | (2) packages of little cigars containing 20 or 25 | 18 | | little cigars that bear a fraudulent, imitation, or | 19 | | counterfeit tax stamp; | 20 | | (3) packages of little cigars containing 20 or 25 | 21 | | little cigars that are improperly tax stamped, including | 22 | | packages of little cigars that bear only a tax stamp of | 23 | | another state or taxing jurisdiction; or |
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| 1 | | (4) packages of little cigars containing other than 20 | 2 | | or 25 little cigars in the possession of a distributor, | 3 | | retailer or wholesaler, unless the distributor, retailer, | 4 | | or wholesaler possesses, or produces within the time frame | 5 | | provided in Section 10-27 or 10-28 of this Act, an invoice | 6 | | from a stamping distributor, distributor, or wholesaler | 7 | | showing that the tax on the packages has been or will be | 8 | | paid. | 9 | | "Correctional Industries program" means a program run by a | 10 | | State penal
institution in which residents of the penal | 11 | | institution produce tobacco
products for sale to persons | 12 | | incarcerated in penal institutions or resident
patients of a | 13 | | State operated mental health facility.
| 14 | | "Department" means the Illinois Department of Revenue.
| 15 | | "Distributor" means any of the following:
| 16 | | (1) Any manufacturer or wholesaler in this State | 17 | | engaged in the business
of selling tobacco products who | 18 | | sells, exchanges, or distributes tobacco
products to | 19 | | retailers or consumers in this State.
| 20 | | (2) Any manufacturer or wholesaler engaged
in
the | 21 | | business of selling tobacco products from without this | 22 | | State who sells,
exchanges, distributes,
ships, or | 23 | | transports tobacco products to retailers or consumers | 24 | | located in
this State,
so long as that manufacturer or | 25 | | wholesaler has or maintains within this State,
directly or | 26 | | by subsidiary, an office, sales house, or other place of |
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| 1 | | business,
or any agent or other representative operating | 2 | | within this State under the
authority of the person or | 3 | | subsidiary, irrespective of whether the place of
business | 4 | | or agent or other representative is located here | 5 | | permanently or
temporarily.
| 6 | | (3) Any retailer who receives tobacco products on which | 7 | | the tax has not
been or
will not be paid by another | 8 | | distributor.
| 9 | | "Distributor" does not include any person, wherever | 10 | | resident or located, who
makes, manufactures, or fabricates | 11 | | tobacco products as part of a Correctional
Industries program | 12 | | for sale to residents incarcerated in penal institutions or
| 13 | | resident patients of a State operated mental health facility.
| 14 | | "Electronic cigarette" means: | 15 | | (1) any device that employs a battery or other | 16 | | mechanism to
heat a solution or substance to produce a | 17 | | vapor or aerosol
intended for inhalation; | 18 | | (2) any cartridge or container of a solution or | 19 | | substance
intended to be used with or in the device or to | 20 | | refill the
device , except any cartridge or container of a | 21 | | solution or substance that contains cannabis subject to tax | 22 | | under the Compassionate Use of Medical Cannabis Program Act | 23 | | or the Cannabis Cultivation Privilege Tax Law ; or | 24 | | (3) any solution or substance, whether or not it | 25 | | contains
nicotine, intended for use in the device , except | 26 | | any solution or substance that contains cannabis subject to |
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| 1 | | tax under the Compassionate Use of Medical Cannabis Program | 2 | | Act or the Cannabis Cultivation Privilege Tax Law. The | 3 | | changes made to the definition of "electronic cigarette" by | 4 | | this amendatory Act of the 101st General Assembly apply on | 5 | | and after June 28, 2019, but no claim for credit or refund | 6 | | is allowed on or after the effective date of this | 7 | | amendatory Act of the 101st General Assembly for such taxes | 8 | | paid during the period beginning June 28, 2019 and the | 9 | | effective date of this amendatory Act of the 101st General | 10 | | Assembly . | 11 | | "Electronic cigarette"
includes, but is not limited to, any | 12 | | electronic nicotine
delivery system, electronic cigar, | 13 | | electronic cigarillo,
electronic pipe, electronic hookah, vape | 14 | | pen, or similar product
or device, and any component or part | 15 | | that can be used to build
the product or device. "Electronic | 16 | | cigarette" does not include:
cigarettes, as defined in Section | 17 | | 1 of the Cigarette Tax Act; any
product approved by the United | 18 | | States Food and Drug
Administration for sale as a tobacco | 19 | | cessation product, a
tobacco dependence product, or for other | 20 | | medical purposes that
is marketed and sold solely for that | 21 | | approved purpose; any
asthma inhaler prescribed by a physician | 22 | | for that condition that is marketed and sold solely for that | 23 | | approved purpose; or
any therapeutic product approved for use | 24 | | under the Compassionate
Use of Medical Cannabis Program Act. | 25 | | "Little cigar" means and includes any roll, made wholly or | 26 | | in part of tobacco, where such roll has an integrated cellulose |
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| 1 | | acetate filter and weighs less than 4 pounds per thousand and | 2 | | the wrapper or cover of which is made in whole or in part of | 3 | | tobacco. | 4 | | "Manufacturer" means any person, wherever resident or | 5 | | located, who
manufactures and sells tobacco products, except a | 6 | | person who makes,
manufactures, or fabricates tobacco products | 7 | | as a part of a Correctional
Industries program for sale to | 8 | | persons incarcerated in penal institutions or
resident | 9 | | patients of a State operated mental health facility.
| 10 | | Beginning on January 1, 2013, "moist snuff" means any | 11 | | finely cut, ground, or powdered tobacco that is not intended to | 12 | | be smoked, but shall not include any finely cut, ground, or | 13 | | powdered tobacco that is intended to be placed in the nasal | 14 | | cavity. | 15 | | "Person" means any natural individual, firm, partnership, | 16 | | association, joint
stock company, joint venture, limited | 17 | | liability company, or public or private
corporation, however | 18 | | formed, or a receiver, executor, administrator, trustee,
| 19 | | conservator, or other representative appointed by order of any | 20 | | court.
| 21 | | "Place of business" means and includes any place where | 22 | | tobacco products
are sold or where tobacco products are | 23 | | manufactured, stored, or kept for
the purpose of sale or | 24 | | consumption, including any vessel, vehicle, airplane,
train, | 25 | | or vending machine.
| 26 | | "Retailer" means any person in this State engaged in the |
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| 1 | | business of selling
tobacco products to consumers in this | 2 | | State, regardless of quantity or number
of sales.
| 3 | | "Sale" means any transfer, exchange, or barter in any | 4 | | manner or by any means
whatsoever for a consideration and | 5 | | includes all sales made by
persons.
| 6 | | "Stamp" or "stamps" mean the indicia required to be affixed | 7 | | on a package of little cigars that evidence payment of the tax | 8 | | on packages of little cigars containing 20 or 25 little cigars | 9 | | under Section 10-10 of this Act. These stamps shall be the same | 10 | | stamps used for cigarettes under the Cigarette Tax Act. | 11 | | "Stamping distributor" means a distributor licensed under | 12 | | this Act and also licensed as a distributor under the Cigarette | 13 | | Tax Act or Cigarette Use Tax Act. | 14 | | "Tobacco products" means any cigars, including little | 15 | | cigars; cheroots; stogies; periques; granulated,
plug cut, | 16 | | crimp cut, ready rubbed, and other smoking tobacco; snuff | 17 | | (including moist snuff) or snuff
flour; cavendish; plug and | 18 | | twist tobacco; fine-cut and other chewing tobaccos;
shorts; | 19 | | refuse scraps, clippings, cuttings, and sweeping of tobacco; | 20 | | and
other kinds and forms of tobacco, prepared in such manner | 21 | | as to be suitable for
chewing or smoking in a pipe or | 22 | | otherwise, or both for chewing and smoking; but
does not | 23 | | include cigarettes as defined in Section 1 of the Cigarette Tax | 24 | | Act or tobacco purchased for the manufacture of
cigarettes by | 25 | | cigarette distributors and manufacturers defined in the
| 26 | | Cigarette Tax Act and persons who make, manufacture, or |
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| 1 | | fabricate
cigarettes as a part of a Correctional Industries | 2 | | program for sale to
residents incarcerated in penal | 3 | | institutions or resident patients of a
State operated mental | 4 | | health facility.
| 5 | | Beginning on July 1, 2019, "tobacco products" also includes
| 6 | | electronic cigarettes. | 7 | | "Wholesale price" means the established list price for | 8 | | which a manufacturer
sells tobacco products to a distributor, | 9 | | before the allowance of any discount,
trade allowance, rebate, | 10 | | or other reduction.
In the absence of such an established list | 11 | | price, the manufacturer's invoice
price at which the | 12 | | manufacturer sells the tobacco product to unaffiliated
| 13 | | distributors, before any discounts, trade allowances, rebates, | 14 | | or other
reductions, shall be presumed to be the wholesale | 15 | | price.
| 16 | | "Wholesaler" means any person, wherever resident or | 17 | | located, engaged in the
business of selling tobacco products to | 18 | | others for the purpose of resale. "Wholesaler", when used in | 19 | | this Act, does not include a person licensed as a distributor | 20 | | under Section 10-20 of this Act unless expressly stated in this | 21 | | Act.
| 22 | | (Source: P.A. 101-31, eff. 6-28-19; 101-593, eff. 12-4-19.)
| 23 | | Section 99. Effective date. This Act takes effect upon | 24 | | becoming law.
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