Full Text of SB3924 97th General Assembly
SB3924 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB3924 Introduced 5/31/2012, by Sen. William R. Haine SYNOPSIS AS INTRODUCED: |
| 35 ILCS 130/1 | from Ch. 120, par. 453.1 | 35 ILCS 135/1 | from Ch. 120, par. 453.31 | 425 ILCS 8/65 rep. | |
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Repeals the Cigarette Machine Operators' Occupation Tax Act and makes related changes to other Acts if and only if House Bill 2194 of the 97th General Assembly becomes law. Effective immediately.
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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. If and only if House Bill 2194 of the 97th | 5 | | General Assembly becomes law, the Cigarette Machine Operators' | 6 | | Occupation Tax Act is repealed. | 7 | | Section 10. If and only if House Bill 2194 of the 97th | 8 | | General Assembly becomes law, the Cigarette Tax Act is amended | 9 | | by changing Section 1 as follows:
| 10 | | (35 ILCS 130/1) (from Ch. 120, par. 453.1)
| 11 | | Sec. 1. For the purposes of this Act:
| 12 | | "Brand Style" means a variety of cigarettes distinguished | 13 | | by the tobacco used, tar and nicotine content, flavoring used, | 14 | | size of the cigarette, filtration on the cigarette or | 15 | | packaging. | 16 | | Until July 1, 2012, "cigarette", means any
roll for smoking | 17 | | made wholly or in part of tobacco irrespective of size
or shape | 18 | | and whether or not such tobacco is flavored, adulterated or
| 19 | | mixed with any other ingredient, and the wrapper or cover of | 20 | | which is
made of paper or any other substance or material | 21 | | except tobacco.
| 22 | | "Cigarette", beginning on and after July 1, 2012, means any |
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| 1 | | roll for smoking made wholly or in part of tobacco irrespective | 2 | | of size or shape and whether or not such tobacco is flavored, | 3 | | adulterated, or mixed with any other ingredient, and the | 4 | | wrapper or cover of which is made of paper. | 5 | | "Cigarette", beginning on and after July 1, 2012, also | 6 | | shall mean: Any roll for smoking made wholly or in part of | 7 | | tobacco labeled as anything other than a cigarette or not | 8 | | bearing a label, if it meets two or more of the following | 9 | | criteria: | 10 | | (a) the product is sold in packs similar to cigarettes; | 11 | | (b) the product is available for sale in cartons of ten | 12 | | packs; | 13 | | (c) the product is sold in soft packs, hard packs, | 14 | | flip-top boxes, clam shells, or other cigarette-type | 15 | | boxes; | 16 | | (d) the product is of a length and diameter similar to | 17 | | commercially manufactured cigarettes; | 18 | | (e) the product has a cellulose acetate or other | 19 | | integrated filter; | 20 | | (f) the product is marketed or advertised to consumers | 21 | | as a cigarette or cigarette substitute; or | 22 | | (g) other evidence that the product fits within the | 23 | | definition of cigarette. | 24 | | "Contraband cigarettes" means: | 25 | | (a) cigarettes that do not bear a required tax stamp | 26 | | under this Act; |
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| 1 | | (b) cigarettes for which any required federal taxes | 2 | | have not been paid; | 3 | | (c) cigarettes that bear a counterfeit tax stamp; | 4 | | (d) cigarettes that are manufactured, fabricated, | 5 | | assembled, processed, packaged, or labeled by any person | 6 | | other than (i) the owner of the trademark rights in the | 7 | | cigarette brand or (ii) a person that is directly or | 8 | | indirectly authorized by such owner; | 9 | | (e) cigarettes imported into the United States, or | 10 | | otherwise distributed, in violation of the federal | 11 | | Imported Cigarette Compliance Act of 2000 (Title IV of | 12 | | Public Law 106-476); | 13 | | (f) cigarettes that have false manufacturing labels; | 14 | | (g) cigarettes identified in Section 3-10(a)(1) of | 15 | | this Act; or | 16 | | (h) cigarettes that are improperly tax stamped, | 17 | | including cigarettes that bear a tax stamp of another state | 18 | | or taxing jurisdiction . ; or | 19 | | (i) cigarettes made or fabricated by a person holding a | 20 | | cigarette machine operator license under Section 1-20 of | 21 | | the Cigarette Machine Operators' Occupation Tax Act in the | 22 | | possession of manufacturers, distributors, secondary | 23 | | distributors, manufacturer representatives or other | 24 | | retailers for the purpose of resale, regardless of whether | 25 | | the tax has been paid on such cigarettes. | 26 | | "Person" means any natural individual, firm, partnership, |
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| 1 | | association, joint
stock company, joint adventure, public or | 2 | | private corporation, however formed,
limited liability | 3 | | company, or a receiver, executor, administrator, trustee,
| 4 | | guardian or other representative appointed by order of any | 5 | | court.
| 6 | | "Prior Continuous Compliance Taxpayer" means any person | 7 | | who is licensed
under this Act and who, having been a licensee | 8 | | for a continuous period of 5
years, is determined by the | 9 | | Department not to have been either delinquent
or deficient in | 10 | | the payment of tax liability during that period or
otherwise in | 11 | | violation of this Act. Also, any taxpayer who has, as
verified | 12 | | by the Department, continuously complied with the condition of | 13 | | his
bond or other security under provisions of this Act for a | 14 | | period of 5
consecutive years shall be considered to be a | 15 | | "Prior continuous compliance
taxpayer". In calculating the | 16 | | consecutive period of time described herein
for qualification | 17 | | as a "prior continuous compliance taxpayer", a
consecutive | 18 | | period of time of qualifying compliance immediately prior to
| 19 | | the effective date of this amendatory Act of 1987 shall be | 20 | | credited to any
licensee who became licensed on or before the | 21 | | effective date of this
amendatory Act of 1987.
| 22 | | "Department" means the Department of Revenue.
| 23 | | "Sale" means any transfer, exchange or barter in any manner | 24 | | or by any
means whatsoever for a consideration, and includes | 25 | | and means all sales
made by any person.
| 26 | | "Original Package" means the individual packet, box or |
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| 1 | | other container
whatsoever used to contain and to convey | 2 | | cigarettes to the consumer.
| 3 | | "Distributor" means any and each of the following:
| 4 | | (1) Any person engaged in the business of selling | 5 | | cigarettes in this
State who brings or causes to be brought | 6 | | into this State from without
this State any original | 7 | | packages of cigarettes, on which original
packages there is | 8 | | no authorized evidence underneath a sealed transparent
| 9 | | wrapper showing that the tax liability imposed by this Act | 10 | | has been paid
or assumed by the out-of-State seller of such | 11 | | cigarettes, for sale or
other disposition in the course of | 12 | | such business.
| 13 | | (2) Any person who makes, manufactures or fabricates | 14 | | cigarettes in this
State for sale in this State, except a | 15 | | person who makes, manufactures
or fabricates cigarettes as | 16 | | a part of a correctional industries program
for sale to | 17 | | residents incarcerated in penal institutions or resident | 18 | | patients
of a State-operated mental health facility.
| 19 | | (3) Any person who makes, manufactures or fabricates | 20 | | cigarettes
outside this State, which cigarettes are placed | 21 | | in original packages
contained in sealed transparent | 22 | | wrappers, for delivery or shipment into
this State, and who | 23 | | elects to qualify and is accepted by the Department
as a | 24 | | distributor under Section 4b of this Act.
| 25 | | "Place of business" shall mean and include any place where | 26 | | cigarettes
are sold or where cigarettes are manufactured, |
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| 1 | | stored or kept for the
purpose of sale or consumption, | 2 | | including any vessel, vehicle, airplane,
train or vending | 3 | | machine.
| 4 | | "Manufacturer representative" means a director, officer, | 5 | | or employee of a manufacturer who has obtained authority from | 6 | | the Department under Section 4f to maintain representatives in | 7 | | Illinois that provide or sell original packages of cigarettes | 8 | | made, manufactured, or fabricated by the manufacturer to | 9 | | retailers in compliance with Section 4f of this Act to promote | 10 | | cigarettes made, manufactured, or fabricated by the | 11 | | manufacturer. | 12 | | "Business" means any trade, occupation, activity or | 13 | | enterprise
engaged in for the purpose of selling cigarettes in | 14 | | this State.
| 15 | | "Retailer" means any person who engages in the making of | 16 | | transfers of
the ownership of, or title to, cigarettes to a | 17 | | purchaser for use or
consumption and not for resale in any | 18 | | form, for a valuable consideration. "Retailer" does not include | 19 | | a person:
| 20 | | (1) who transfers to residents incarcerated in penal | 21 | | institutions
or resident patients of a State-operated | 22 | | mental health facility ownership
of cigarettes made, | 23 | | manufactured, or fabricated as part of a correctional
| 24 | | industries program; or | 25 | | (2) who transfers cigarettes to a not-for-profit | 26 | | research institution that conducts tests concerning the |
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| 1 | | health effects of tobacco products and who does not offer | 2 | | the cigarettes for resale.
| 3 | | "Retailer" shall be construed to include any person who | 4 | | engages in
the making of transfers of the ownership of, or | 5 | | title to, cigarettes to
a purchaser, for use or consumption by | 6 | | any other person to whom such
purchaser may transfer the | 7 | | cigarettes without a valuable consideration,
except a person | 8 | | who transfers to residents incarcerated in penal institutions
| 9 | | or resident patients of a State-operated mental health facility | 10 | | ownership
of cigarettes made, manufactured or fabricated as | 11 | | part of a correctional
industries program.
| 12 | | "Secondary distributor" means any person engaged in the | 13 | | business of selling cigarettes who purchases stamped original | 14 | | packages of cigarettes from a licensed distributor under this | 15 | | Act or the Cigarette Use Tax Act, sells 75% or more of those | 16 | | cigarettes to retailers for resale, and maintains an | 17 | | established business where a substantial stock of cigarettes is | 18 | | available to retailers for resale. | 19 | | "Stamp" or "stamps" mean the indicia required to be affixed | 20 | | on a pack of cigarettes that evidence payment of the tax on | 21 | | cigarettes under Section 2 of this Act. | 22 | | "Related party" means any person that is associated with | 23 | | any other person because he or she: | 24 | | (a) is an officer or director of a business; or | 25 | | (b) is legally recognized as a partner in business. | 26 | | (Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10; |
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| 1 | | 97-587, eff. 8-26-11; 09700SB2194enr.)
| 2 | | Section 15. If and only if House Bill 2194 of the 97th | 3 | | General Assembly becomes law, the Cigarette Use Tax Act is | 4 | | amended by changing Section 1 as follows:
| 5 | | (35 ILCS 135/1) (from Ch. 120, par. 453.31)
| 6 | | Sec. 1. For the purpose of this Act, unless otherwise | 7 | | required by the
context:
| 8 | | "Use" means the exercise by any person of any right or | 9 | | power over
cigarettes incident to the ownership or possession | 10 | | thereof, other than the
making of a sale thereof in the course | 11 | | of engaging in a business of selling
cigarettes and shall | 12 | | include the keeping or retention of cigarettes for use, except | 13 | | that "use" does not include the use of cigarettes by a | 14 | | not-for-profit research institution conducting tests | 15 | | concerning the health effects of tobacco products, provided the | 16 | | cigarettes are not offered for resale.
| 17 | | "Brand Style" means a variety of cigarettes distinguished | 18 | | by the tobacco used, tar and nicotine content, flavoring used, | 19 | | size of the cigarette, filtration on the cigarette or | 20 | | packaging. | 21 | | Until July 1, 2012, "cigarette" means any roll for smoking | 22 | | made wholly or in part of tobacco
irrespective of size or shape | 23 | | and whether or not such tobacco is flavored,
adulterated or | 24 | | mixed with any other ingredient, and the wrapper or cover of
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| 1 | | which is made of paper or any other substance or material | 2 | | except tobacco.
| 3 | | "Cigarette", beginning on and after July 1, 2012, means any | 4 | | roll for smoking made wholly or in part of tobacco irrespective | 5 | | of size or shape and whether or not such tobacco is flavored, | 6 | | adulterated or mixed with any other ingredient, and the wrapper | 7 | | or cover of which is made of paper. | 8 | | "Cigarette", beginning on and after July 1, 2012, also | 9 | | shall mean: Any roll for smoking made wholly or in part of | 10 | | tobacco labeled as anything other than a cigarette or not | 11 | | bearing a label, if it meets two or more of the following | 12 | | criteria: | 13 | | (a) the product is sold in packs similar to cigarettes; | 14 | | (b) the product is available for sale in cartons of ten | 15 | | packs; | 16 | | (c) the product is sold in soft packs, hard packs, | 17 | | flip-top boxes, clam shells, or other cigarette-type | 18 | | boxes; | 19 | | (d) the product is of a length and diameter similar to | 20 | | commercially manufactured cigarettes; | 21 | | (e) the product has a cellulose acetate or other | 22 | | integrated filter; | 23 | | (f) the product is marketed or advertised to consumers | 24 | | as a cigarette or cigarette substitute; or | 25 | | (g) other evidence that the product fits within the | 26 | | definition of cigarette. |
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| 1 | | "Contraband cigarettes" means: | 2 | | (a) cigarettes that do not bear a required tax stamp | 3 | | under this Act; | 4 | | (b) cigarettes for which any required federal taxes | 5 | | have not been paid; | 6 | | (c) cigarettes that bear a counterfeit tax stamp; | 7 | | (d) cigarettes that are manufactured, fabricated, | 8 | | assembled, processed, packaged, or labeled by any person | 9 | | other than (i) the owner of the trademark rights in the | 10 | | cigarette brand or (ii) a person that is directly or | 11 | | indirectly authorized by such owner; | 12 | | (e) cigarettes imported into the United States, or | 13 | | otherwise distributed, in violation of the federal | 14 | | Imported Cigarette Compliance Act of 2000 (Title IV of | 15 | | Public Law 106-476); | 16 | | (f) cigarettes that have false manufacturing labels; | 17 | | (g) cigarettes identified in Section 3-10(a)(1) of | 18 | | this Act; or | 19 | | (h) cigarettes that are improperly tax stamped, | 20 | | including cigarettes that bear a tax stamp of another state | 21 | | or taxing jurisdiction . ; or | 22 | | (i) cigarettes made or fabricated by a person holding a | 23 | | cigarette machine operator license under Section 1-20 of | 24 | | the Cigarette Machine Operators' Occupation Tax Act in the | 25 | | possession of manufacturers, distributors, secondary | 26 | | distributors, manufacturer representatives or other |
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| 1 | | retailers for the purpose of resale, regardless of whether | 2 | | the tax has been paid on such cigarettes. | 3 | | "Person" means any natural individual, firm, partnership, | 4 | | association,
joint stock company, joint adventure, public or | 5 | | private corporation,
however formed, limited liability | 6 | | company, or a receiver, executor,
administrator, trustee, | 7 | | guardian or other representative appointed by order of
any | 8 | | court.
| 9 | | "Department" means the Department of Revenue.
| 10 | | "Sale" means any transfer, exchange or barter in any manner | 11 | | or by any
means whatsoever for a consideration, and includes | 12 | | and means all sales made
by any person.
| 13 | | "Original Package" means the individual packet, box or | 14 | | other container
whatsoever used to contain and to convey | 15 | | cigarettes to the consumer.
| 16 | | "Distributor" means any and each of the following:
| 17 | | a. Any person engaged in the business of selling | 18 | | cigarettes in this
State who brings or causes to be brought | 19 | | into this State from without this
State any original | 20 | | packages of cigarettes, on which original packages there
is | 21 | | no authorized evidence underneath a sealed transparent | 22 | | wrapper showing
that the tax liability imposed by this Act | 23 | | has been paid or assumed by the
out-of-State seller of such | 24 | | cigarettes, for sale in the course of such
business.
| 25 | | b. Any person who makes, manufactures or fabricates | 26 | | cigarettes in this
State for sale, except a person who |
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| 1 | | makes, manufactures or fabricates
cigarettes for sale to | 2 | | residents incarcerated in penal institutions or resident
| 3 | | patients or a State-operated mental health facility.
| 4 | | c. Any person who makes, manufactures or fabricates | 5 | | cigarettes outside
this State, which cigarettes are placed | 6 | | in original packages contained in
sealed transparent | 7 | | wrappers, for delivery or shipment into this State, and
who | 8 | | elects to qualify and is accepted by the Department as a | 9 | | distributor
under Section 7 of this Act.
| 10 | | "Distributor" does not include any person who transfers | 11 | | cigarettes to a not-for-profit
research institution that | 12 | | conducts tests concerning the
health effects of tobacco | 13 | | products and who does not offer
the cigarettes for resale.
| 14 | | "Distributor maintaining a place of business in this | 15 | | State", or any like
term, means any distributor having or | 16 | | maintaining within this State,
directly or by a subsidiary, an | 17 | | office, distribution house, sales house,
warehouse or other | 18 | | place of business, or any agent operating within this
State | 19 | | under the authority of the distributor or its subsidiary,
| 20 | | irrespective of whether such place of business or agent is | 21 | | located here
permanently or temporarily, or whether such | 22 | | distributor or subsidiary is
licensed to transact business | 23 | | within this State.
| 24 | | "Business" means any trade, occupation, activity or | 25 | | enterprise engaged
in or conducted in this State for the | 26 | | purpose of selling cigarettes.
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| 1 | | "Prior Continuous Compliance Taxpayer" means any person | 2 | | who is licensed
under this Act and who, having been a licensee | 3 | | for a continuous period of 5
years, is determined by the | 4 | | Department not to have been either delinquent
or deficient in | 5 | | the payment of tax liability during that period or
otherwise in | 6 | | violation of this Act. Also, any taxpayer who has, as
verified | 7 | | by the Department, continuously complied with the
condition of | 8 | | his bond or other security under provisions of this Act of a
| 9 | | period of 5 consecutive years shall be considered to be a | 10 | | "prior
continuous compliance taxpayer". In calculating the | 11 | | consecutive period of
time described herein for qualification | 12 | | as a "prior continuous compliance
taxpayer", a consecutive | 13 | | period of time of qualifying compliance
immediately prior to | 14 | | the effective date of this amendatory Act of 1987 shall be
| 15 | | credited to any licensee who became licensed on or before the | 16 | | effective date
of this amendatory Act of 1987.
| 17 | | "Secondary distributor" means any person engaged in the | 18 | | business of selling cigarettes who purchases stamped original | 19 | | packages of cigarettes from a licensed distributor under this | 20 | | Act or the Cigarette Tax Act, sells 75% or more of those | 21 | | cigarettes to retailers for resale, and maintains an | 22 | | established business where a substantial stock of cigarettes is | 23 | | available to retailers for resale. | 24 | | "Secondary distributor maintaining a place of business in | 25 | | this State", or any like term, means any secondary distributor | 26 | | having or maintaining within this State, directly or by a |
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| 1 | | subsidiary, an office, distribution house, sales house, | 2 | | warehouse, or other place of business, or any agent operating | 3 | | within this State under the authority of the secondary | 4 | | distributor or its subsidiary, irrespective of whether such | 5 | | place of business or agent is located here permanently or | 6 | | temporarily, or whether such secondary distributor or | 7 | | subsidiary is licensed to transact business within this State. | 8 | | "Stamp" or "stamps" mean the indicia required to be affixed | 9 | | on a pack of cigarettes that evidence payment of the tax on | 10 | | cigarettes under Section 2 of this Act. | 11 | | "Related party" means any person that is associated with | 12 | | any other person because he or she: | 13 | | (a) is an officer or director of a business; or | 14 | | (b) is legally recognized as a partner in business. | 15 | | (Source: P.A. 95-462, eff. 8-27-07; 95-1053, eff. 1-1-10; | 16 | | 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10; 09700SB2194enr.)
| 17 | | (425 ILCS 8/65 rep.) | 18 | | Section 20. The Cigarette Fire Safety Standard Act is | 19 | | amended by repealing Section 65.
| 20 | | Section 99. Effective date. This Act takes effect upon | 21 | | becoming law.
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