Full Text of HB5550 98th General Assembly
HB5550 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB5550 Introduced , by Rep. Brad E. Halbrook SYNOPSIS AS INTRODUCED: |
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Amends the Tobacco Products Tax Act. Provides that the tax on cigars may not exceed $0.50 per cigar.
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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 Section 10-10 as follows:
| 6 | | (35 ILCS 143/10-10)
| 7 | | Sec. 10-10. Tax imposed. | 8 | | (a) Except as otherwise provided in this Section with | 9 | | respect to little cigars, on the first day of the third month | 10 | | after the
month in which this Act becomes law, a tax is imposed | 11 | | on any person engaged in
business as a distributor of tobacco | 12 | | products, as defined in Section 10-5,
at the rate of (i) 18% of | 13 | | the wholesale price of tobacco products sold or otherwise
| 14 | | disposed of to retailers or consumers located in this State | 15 | | prior to July 1, 2012 and (ii) 36% of the wholesale price of | 16 | | tobacco products sold or otherwise
disposed of to retailers or | 17 | | consumers located in this State beginning on July 1, 2012; | 18 | | except that, beginning on January 1, 2013, the tax on moist | 19 | | snuff shall be imposed at a rate of $0.30 per ounce, and a | 20 | | proportionate tax at the like rate on all fractional parts of | 21 | | an ounce, sold or otherwise
disposed of to retailers or | 22 | | consumers located in this State. Notwithstanding any other | 23 | | provision of law, the tax on cigars, other than little cigars, |
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| 1 | | may not exceed $0.50 per cigar. The tax is in
addition to all | 2 | | other
occupation or privilege taxes imposed by the State of | 3 | | Illinois, by any
political subdivision thereof, or by any | 4 | | municipal corporation. However, the
tax is not imposed upon any | 5 | | activity in that business in interstate commerce or
otherwise, | 6 | | to the extent to which that activity may not, under the | 7 | | Constitution
and Statutes of the United States, be made the | 8 | | subject of taxation by this
State, and except that, beginning | 9 | | July 1, 2013, the tax on little cigars shall be imposed at the | 10 | | same rate, and the proceeds shall be distributed in the same | 11 | | manner, as the tax imposed on cigarettes under the Cigarette | 12 | | Tax Act. The tax is also not imposed on sales made to the | 13 | | United States or any
entity thereof.
| 14 | | (b) Notwithstanding subsection (a) of this Section, | 15 | | stamping distributors of packages of little cigars containing | 16 | | 20 or 25 little cigars sold or otherwise disposed of in this | 17 | | State shall remit the tax by purchasing tax stamps from the | 18 | | Department and affixing them to packages of little cigars in | 19 | | the same manner as stamps are purchased and affixed to | 20 | | cigarettes under the Cigarette Tax Act, unless the stamping | 21 | | distributor sells or otherwise disposes of those packages of | 22 | | little cigars to another stamping distributor. Only persons | 23 | | meeting the definition of "stamping distributor" contained in | 24 | | Section 10-5 of this Act may affix stamps to packages of little | 25 | | cigars containing 20 or 25 little cigars. Stamping distributors | 26 | | may not sell or dispose of little cigars at retail to consumers |
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| 1 | | or users at locations where stamping distributors affix stamps | 2 | | to packages of little cigars containing 20 or 25 little cigars. | 3 | | (c) The impact of the tax levied by this Act is imposed | 4 | | upon distributors engaged in the business of selling tobacco | 5 | | products to retailers or consumers in this State. Whenever a | 6 | | stamping distributor brings or causes to be brought into this | 7 | | State from without this State, or purchases from without or | 8 | | within this State, any packages of little cigars containing 20 | 9 | | or 25 little cigars upon which there are no tax stamps affixed | 10 | | as required by this Act, for purposes of resale or disposal in | 11 | | this State to a person not a stamping distributor, then such | 12 | | stamping distributor shall pay the tax to the Department and | 13 | | add the amount of the tax to the price of such packages sold by | 14 | | such stamping distributor. Payment of the tax shall be | 15 | | evidenced by a stamp or stamps affixed to each package of | 16 | | little cigars containing 20 or 25 little cigars. | 17 | | Stamping distributors paying the tax to the Department on | 18 | | packages of little cigars containing 20 or 25 little cigars | 19 | | sold to other distributors, wholesalers or retailers shall add | 20 | | the amount of the tax to the price of the packages of little | 21 | | cigars containing 20 or 25 little cigars sold by such stamping | 22 | | distributors. | 23 | | (d) Beginning on January 1, 2013, the tax rate imposed per | 24 | | ounce of moist snuff may not exceed 15% of the tax imposed upon | 25 | | a package of 20 cigarettes pursuant to the Cigarette Tax Act. | 26 | | (e) All moneys received by the Department under this Act |
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| 1 | | from sales occurring prior to July 1, 2012 shall be paid into
| 2 | | the Long-Term Care Provider Fund of the State Treasury. Of the | 3 | | moneys received by the Department from sales occurring on or | 4 | | after July 1, 2012, except for moneys received from the tax | 5 | | imposed on the sale of little cigars, 50% shall be paid into | 6 | | the Long-Term Care Provider Fund and 50% shall be paid into the | 7 | | Healthcare Provider Relief Fund. Beginning July 1, 2013, all | 8 | | moneys received by the Department under this Act from the tax | 9 | | imposed on little cigars shall be distributed as provided in | 10 | | subsection (a) of Section 2 of the Cigarette Tax Act.
| 11 | | (Source: P.A. 97-688, eff. 6-14-12; 98-273, eff. 8-9-13.)
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