Full Text of SB0509 99th General Assembly
SB0509enr 99TH 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 | | Until July 1, 2012, and beginning July 1, 2013, | 13 | | "cigarette", means any
roll for smoking made wholly or in part | 14 | | of tobacco irrespective of size
or shape and whether or not | 15 | | such tobacco is flavored, adulterated or
mixed with any other | 16 | | ingredient, and the wrapper or cover of which is
made of paper | 17 | | or any other substance or material except tobacco.
| 18 | | "Cigarette", beginning on and after July 1, 2012, and | 19 | | through June 30, 2013, means any roll for smoking made wholly | 20 | | or in part of tobacco irrespective of size or shape and whether | 21 | | or not such tobacco is flavored, adulterated, or mixed with any | 22 | | other ingredient, and the wrapper or cover of which is made of | 23 | | paper. |
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| 1 | | "Cigarette", beginning on and after July 1, 2012, and | 2 | | through June 30, 2013, also shall mean: Any roll for smoking | 3 | | made wholly or in part of tobacco labeled as anything other | 4 | | than a cigarette or not bearing a label, if it meets two or | 5 | | more of the following criteria: | 6 | | (a) the product is sold in packs similar to cigarettes; | 7 | | (b) the product is available for sale in cartons of ten | 8 | | packs; | 9 | | (c) the product is sold in soft packs, hard packs, | 10 | | flip-top boxes, clam shells, or other cigarette-type | 11 | | boxes; | 12 | | (d) the product is of a length and diameter similar to | 13 | | commercially manufactured cigarettes; | 14 | | (e) the product has a cellulose acetate or other | 15 | | integrated filter; | 16 | | (f) the product is marketed or advertised to consumers | 17 | | as a cigarette or cigarette substitute; or | 18 | | (g) other evidence that the product fits within the | 19 | | definition of cigarette. | 20 | | "Contraband cigarettes" means: | 21 | | (a) cigarettes that do not bear a required tax stamp | 22 | | under this Act; | 23 | | (b) cigarettes for which any required federal taxes | 24 | | have not been paid; | 25 | | (c) cigarettes that bear a counterfeit tax stamp; | 26 | | (d) cigarettes that are manufactured, fabricated, |
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| 1 | | assembled, processed, packaged, or labeled by any person | 2 | | other than (i) the owner of the trademark rights in the | 3 | | cigarette brand or (ii) a person that is directly or | 4 | | indirectly authorized by such owner; | 5 | | (e) cigarettes imported into the United States, or | 6 | | otherwise distributed, in violation of the federal | 7 | | Imported Cigarette Compliance Act of 2000 (Title IV of | 8 | | Public Law 106-476); | 9 | | (f) cigarettes that have false manufacturing labels; | 10 | | (g) cigarettes identified in Section 3-10(a)(1) of | 11 | | this Act; | 12 | | (h) cigarettes that are improperly tax stamped, | 13 | | including cigarettes that bear a tax stamp of another state | 14 | | or taxing jurisdiction , or lack a tax stamp required by any | 15 | | political subdivision of Illinois ; or | 16 | | (i) cigarettes made or fabricated by a person holding a | 17 | | cigarette machine operator license under Section 1-20 of | 18 | | the Cigarette Machine Operators' Occupation Tax Act in the | 19 | | possession of manufacturers, distributors, secondary | 20 | | distributors, manufacturer representatives or other | 21 | | retailers for the purpose of resale, regardless of whether | 22 | | the tax has been paid on such cigarettes. | 23 | | "Little cigar" has the meaning ascribed to that term in the | 24 | | Tobacco Products Tax Act of 1995. | 25 | | "Person" means any natural individual, firm, partnership, | 26 | | association, joint
stock company, joint adventure, public or |
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| 1 | | private corporation, however formed,
limited liability | 2 | | company, or a receiver, executor, administrator, trustee,
| 3 | | guardian or other representative appointed by order of any | 4 | | court.
| 5 | | "Prior Continuous Compliance Taxpayer" means any person | 6 | | who is licensed
under this Act and who, having been a licensee | 7 | | for a continuous period of 5
years, is determined by the | 8 | | Department not to have been either delinquent
or deficient in | 9 | | the payment of tax liability during that period or
otherwise in | 10 | | violation of this Act. Also, any taxpayer who has, as
verified | 11 | | by the Department, continuously complied with the condition of | 12 | | his
bond or other security under provisions of this Act for a | 13 | | period of 5
consecutive years shall be considered to be a | 14 | | "Prior continuous compliance
taxpayer". In calculating the | 15 | | consecutive period of time described herein
for qualification | 16 | | as a "prior continuous compliance taxpayer", a
consecutive | 17 | | period of time of qualifying compliance immediately prior to
| 18 | | the effective date of this amendatory Act of 1987 shall be | 19 | | credited to any
licensee who became licensed on or before the | 20 | | effective date of this
amendatory Act of 1987.
| 21 | | "Department" means the Department of Revenue.
| 22 | | "Sale" means any transfer, exchange or barter in any manner | 23 | | or by any
means whatsoever for a consideration, and includes | 24 | | and means all sales
made by any person.
| 25 | | "Original Package" means the individual packet, box or | 26 | | other container
whatsoever used to contain and to convey |
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| 1 | | cigarettes to the consumer.
| 2 | | "Distributor" means any and each of the following:
| 3 | | (1) Any person engaged in the business of selling | 4 | | cigarettes in this
State who brings or causes to be brought | 5 | | into this State from without
this State any original | 6 | | packages of cigarettes, on which original
packages there is | 7 | | no authorized evidence underneath a sealed transparent
| 8 | | wrapper showing that the tax liability imposed by this Act | 9 | | has been paid
or assumed by the out-of-State seller of such | 10 | | cigarettes, for sale or
other disposition in the course of | 11 | | such business.
| 12 | | (2) Any person who makes, manufactures or fabricates | 13 | | cigarettes in this
State for sale in this State, except a | 14 | | person who makes, manufactures
or fabricates cigarettes as | 15 | | a part of a correctional industries program
for sale to | 16 | | residents incarcerated in penal institutions or resident | 17 | | patients
of a State-operated mental health facility.
| 18 | | (3) Any person who makes, manufactures or fabricates | 19 | | cigarettes
outside this State, which cigarettes are placed | 20 | | in original packages
contained in sealed transparent | 21 | | wrappers, for delivery or shipment into
this State, and who | 22 | | elects to qualify and is accepted by the Department
as a | 23 | | distributor under Section 4b of this Act.
| 24 | | "Place of business" shall mean and include any place where | 25 | | cigarettes
are sold or where cigarettes are manufactured, | 26 | | stored or kept for the
purpose of sale or consumption, |
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| 1 | | including any vessel, vehicle, airplane,
train or vending | 2 | | machine.
| 3 | | "Manufacturer representative" means a director, officer, | 4 | | or employee of a manufacturer who has obtained authority from | 5 | | the Department under Section 4f to maintain representatives in | 6 | | Illinois that provide or sell original packages of cigarettes | 7 | | made, manufactured, or fabricated by the manufacturer to | 8 | | retailers in compliance with Section 4f of this Act to promote | 9 | | cigarettes made, manufactured, or fabricated by the | 10 | | manufacturer. | 11 | | "Business" means any trade, occupation, activity or | 12 | | enterprise
engaged in for the purpose of selling cigarettes in | 13 | | this State.
| 14 | | "Retailer" means any person who engages in the making of | 15 | | transfers of
the ownership of, or title to, cigarettes to a | 16 | | purchaser for use or
consumption and not for resale in any | 17 | | form, for a valuable consideration. "Retailer" does not include | 18 | | a person:
| 19 | | (1) who transfers to residents incarcerated in penal | 20 | | institutions
or resident patients of a State-operated | 21 | | mental health facility ownership
of cigarettes made, | 22 | | manufactured, or fabricated as part of a correctional
| 23 | | industries program; or | 24 | | (2) who transfers cigarettes to a not-for-profit | 25 | | research institution that conducts tests concerning the | 26 | | health effects of tobacco products and who does not offer |
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| 1 | | the cigarettes for resale.
| 2 | | "Retailer" shall be construed to include any person who | 3 | | engages in
the making of transfers of the ownership of, or | 4 | | title to, cigarettes to
a purchaser, for use or consumption by | 5 | | any other person to whom such
purchaser may transfer the | 6 | | cigarettes without a valuable consideration,
except a person | 7 | | who transfers to residents incarcerated in penal institutions
| 8 | | or resident patients of a State-operated mental health facility | 9 | | ownership
of cigarettes made, manufactured or fabricated as | 10 | | part of a correctional
industries program.
| 11 | | "Secondary distributor" means any person engaged in the | 12 | | business of selling cigarettes who purchases stamped original | 13 | | packages of cigarettes from a licensed distributor under this | 14 | | Act or the Cigarette Use Tax Act, sells 75% or more of those | 15 | | cigarettes to retailers for resale, and maintains an | 16 | | established business where a substantial stock of cigarettes is | 17 | | available to retailers for resale. | 18 | | "Stamp" or "stamps" mean the indicia required to be affixed | 19 | | on a pack of cigarettes that evidence payment of the tax on | 20 | | cigarettes under Section 2 of this Act. | 21 | | "Related party" means any person that is associated with | 22 | | any other person because he or she: | 23 | | (a) is an officer or director of a business; or | 24 | | (b) is legally recognized as a partner in business. | 25 | | (Source: P.A. 97-587, eff. 8-26-11; 97-688, eff. 6-14-12; | 26 | | 98-273, eff. 8-9-13.)
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| 1 | | Section 99. Effective date. This Act takes effect upon | 2 | | becoming law. |
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