(35 ILCS 135/1) (from Ch. 120, par. 453.31)
Sec. 1. For the purpose of this Act, unless otherwise required by the
context:
"Use" means the exercise by any person of any right or power over
cigarettes incident to the ownership or possession thereof, other than the
making of a sale thereof in the course of engaging in a business of selling
cigarettes and shall include the keeping or retention of cigarettes for use, except that "use" does not include the use of cigarettes by a not-for-profit research institution conducting tests concerning the health effects of tobacco products, provided the cigarettes are not offered for resale.
"Brand Style" means a variety of cigarettes distinguished by the tobacco used, tar and nicotine content, flavoring used, size of the cigarette, filtration on the cigarette or packaging. Until July 1, 2012, and beginning July 1, 2013, "cigarette" means any roll for smoking made wholly or in part of tobacco
irrespective of size or shape and whether or not such tobacco is flavored,
adulterated or mixed with any other ingredient, and the wrapper or cover of
which is made of paper or any other substance or material except tobacco.
"Cigarette", beginning on and after July 1, 2012, and through June 30, 2013, means any roll for smoking made wholly or in part of tobacco irrespective of size or shape and whether or not such tobacco is flavored, adulterated or mixed with any other ingredient, and the wrapper or cover of which is made of paper. "Cigarette", beginning on and after July 1, 2012, and through June 30, 2013, also shall mean: Any roll for smoking made wholly or in part of tobacco labeled as anything other than a cigarette or not bearing a label, if it meets two or more of the following criteria: (a) the product is sold in packs similar to |
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(b) the product is available for sale in cartons of
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(c) the product is sold in soft packs, hard packs,
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| flip-top boxes, clam shells, or other cigarette-type boxes;
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(d) the product is of a length and diameter similar
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(e) the product has a cellulose acetate or other
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(f) the product is marketed or advertised to
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| consumers as a cigarette or cigarette substitute; or
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(g) other evidence that the product fits within the
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"Contraband cigarettes" means:
(a) cigarettes that do not bear a required tax stamp
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(b) cigarettes for which any required federal taxes
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(c) cigarettes that bear a counterfeit tax stamp;
(d) cigarettes that are manufactured, fabricated,
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| assembled, processed, packaged, or labeled by any person other than (i) the owner of the trademark rights in the cigarette brand or (ii) a person that is directly or indirectly authorized by such owner;
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(e) cigarettes imported into the United States, or
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| otherwise distributed, in violation of the federal Imported Cigarette Compliance Act of 2000 (Title IV of Public Law 106-476);
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(f) cigarettes that have false manufacturing labels;
(g) cigarettes identified in Section 3-10(a)(1) of
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(h) cigarettes that are improperly tax stamped,
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| including cigarettes that bear a tax stamp of another state or taxing jurisdiction; or
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(i) cigarettes made or fabricated by a person holding
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| a cigarette machine operator license under Section 1-20 of the Cigarette Machine Operators' Occupation Tax Act in the possession of manufacturers, distributors, secondary distributors, manufacturer representatives or other retailers for the purpose of resale, regardless of whether the tax has been paid on such cigarettes.
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"Person" means any natural individual, firm, partnership, association,
joint stock company, joint adventure, public or private corporation,
however formed, limited liability company, or a receiver, executor,
administrator, trustee, guardian or other representative appointed by order of
any court.
"Department" means the Department of Revenue.
"Sale" means any transfer, exchange or barter in any manner or by any
means whatsoever for a consideration, and includes and means all sales made
by any person.
"Original Package" means the individual packet, box or other container
whatsoever used to contain and to convey cigarettes to the consumer.
"Distributor" means any and each of the following:
a. Any person engaged in the business of selling
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| cigarettes in this State who brings or causes to be brought into this State from without this State any original packages of cigarettes, on which original packages there is no authorized evidence underneath a sealed transparent wrapper showing that the tax liability imposed by this Act has been paid or assumed by the out-of-State seller of such cigarettes, for sale in the course of such business.
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b. Any person who makes, manufactures or fabricates
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| cigarettes in this State for sale, except a person who makes, manufactures or fabricates cigarettes for sale to residents incarcerated in penal institutions or resident patients or a State-operated mental health facility.
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c. Any person who makes, manufactures or fabricates
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| cigarettes outside this State, which cigarettes are placed in original packages contained in sealed transparent wrappers, for delivery or shipment into this State, and who elects to qualify and is accepted by the Department as a distributor under Section 7 of this Act.
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"Distributor" does not include any person who transfers cigarettes to a not-for-profit
research institution that conducts tests concerning the
health effects of tobacco products and who does not offer
the cigarettes for resale.
"Distributor maintaining a place of business in this State", or any like
term, means any distributor having or maintaining within this State,
directly or by a subsidiary, an office, distribution house, sales house,
warehouse or other place of business, or any agent operating within this
State under the authority of the distributor or its subsidiary,
irrespective of whether such place of business or agent is located here
permanently or temporarily, or whether such distributor or subsidiary is
licensed to transact business within this State.
"Business" means any trade, occupation, activity or enterprise engaged
in or conducted in this State for the purpose of selling cigarettes.
"Prior Continuous Compliance Taxpayer" means any person who is licensed
under this Act and who, having been a licensee for a continuous period of 5
years, is determined by the Department not to have been either delinquent
or deficient in the payment of tax liability during that period or
otherwise in violation of this Act. Also, any taxpayer who has, as
verified by the Department, continuously complied with the
condition of his bond or other security under provisions of this Act of a
period of 5 consecutive years shall be considered to be a "prior
continuous compliance taxpayer". In calculating the consecutive period of
time described herein for qualification as a "prior continuous compliance
taxpayer", a consecutive period of time of qualifying compliance
immediately prior to the effective date of this amendatory Act of 1987 shall be
credited to any licensee who became licensed on or before the effective date
of this amendatory Act of 1987.
"Secondary distributor" means any person engaged in the business of selling cigarettes who purchases stamped original packages of cigarettes from a licensed distributor under this Act or the Cigarette Tax Act, sells 75% or more of those cigarettes to retailers for resale, and maintains an established business where a substantial stock of cigarettes is available to retailers for resale.
"Secondary distributor maintaining a place of business in this State", or any like term, means any secondary distributor having or maintaining within this State, directly or by a subsidiary, an office, distribution house, sales house, warehouse, or other place of business, or any agent operating within this State under the authority of the secondary distributor or its subsidiary, irrespective of whether such place of business or agent is located here permanently or temporarily, or whether such secondary distributor or subsidiary is licensed to transact business within this State.
"Stamp" or "stamps" mean the indicia required to be affixed on a pack of cigarettes that evidence payment of the tax on cigarettes under Section 2 of this Act.
"Related party" means any person that is associated with any other person because he or she:
(a) is an officer or director of a business; or
(b) is legally recognized as a partner in business.
(Source: P.A. 97-688, eff. 6-14-12; 98-273, eff. 8-9-13.)
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