(35 ILCS 130/1) (from Ch. 120, par. 453.1)
Sec. 1. For the purposes of this Act:
"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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| to commercially manufactured cigarettes;
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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 lack a tax stamp required by any political subdivision of Illinois; 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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"Little cigar" has the meaning ascribed to that term in the Tobacco Products Tax Act of 1995.
"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.
"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 for 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.
"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:
(1) 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 or other disposition in the course of such business.
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(2) Any person who makes, manufactures or fabricates
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| cigarettes in this State for sale in this State, except a person who makes, manufactures or fabricates cigarettes as a part of a correctional industries program for sale to residents incarcerated in penal institutions or resident patients of a State-operated mental health facility.
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(3) 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 4b of this Act.
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"Place of business" shall mean and include any place where cigarettes
are sold or where cigarettes are manufactured, stored or kept for the
purpose of sale or consumption, including any vessel, vehicle, airplane,
train or vending machine.
"Manufacturer representative" means a director, officer, or employee of a manufacturer who has obtained authority from the Department under Section 4f to maintain representatives in Illinois that provide or sell original packages of cigarettes made, manufactured, or fabricated by the manufacturer to retailers in compliance with Section 4f of this Act to promote cigarettes made, manufactured, or fabricated by the manufacturer.
"Business" means any trade, occupation, activity or enterprise
engaged in for the purpose of selling cigarettes in this State.
"Retailer" means any person who engages in the making of transfers of
the ownership of, or title to, cigarettes to a purchaser for use or
consumption and not for resale in any form, for a valuable consideration. "Retailer" does not include a person:
(1) who transfers to residents incarcerated in penal
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| institutions or resident patients of a State-operated mental health facility ownership of cigarettes made, manufactured, or fabricated as part of a correctional industries program; or
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(2) who transfers cigarettes to a not-for-profit
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| research institution that conducts tests concerning the health effects of tobacco products and who does not offer the cigarettes for resale.
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"Retailer" shall be construed to include any person who engages in
the making of transfers of the ownership of, or title to, cigarettes to
a purchaser, for use or consumption by any other person to whom such
purchaser may transfer the cigarettes without a valuable consideration,
except a person who transfers to residents incarcerated in penal institutions
or resident patients of a State-operated mental health facility ownership
of cigarettes made, manufactured or fabricated as part of a correctional
industries program.
"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 Use 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.
"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. 98-273, eff. 8-9-13; 99-360, eff. 8-13-15.)
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(35 ILCS 130/2) (from Ch. 120, par. 453.2) Sec. 2. Tax imposed; rate; collection, payment, and distribution; discount. (a) Beginning on July 1, 2019, in place of the aggregate tax rate of 99 mills previously imposed by this Act, a tax is imposed upon any person engaged in business as a retailer of cigarettes at the rate of 149 mills per cigarette sold or otherwise disposed of in the course of such business in this State. (b) The payment of such taxes shall be evidenced by a stamp affixed to each original package of cigarettes, or an authorized substitute for such stamp imprinted on each original package of such cigarettes underneath the sealed transparent outside wrapper of such original package, as hereinafter provided. However, such taxes are not imposed upon any activity in such business in interstate commerce or otherwise, which activity may not under the Constitution and statutes of the United States be made the subject of taxation by this State. Out of the 149 mills per cigarette tax imposed by subsection (a), until July 1, 2023, the revenues received from 4 mills shall be paid into the Common School Fund each month, not to exceed $9,000,000 per month. Out of the 149 mills per cigarette tax imposed by subsection (a), until July 1, 2023, all of the revenues received from 7 mills shall be paid into the Common School Fund each month. Out of the 149 mills per cigarette tax imposed by subsection (a), until July 1, 2023, 50 mills per cigarette each month shall be paid into the Healthcare Provider Relief Fund. Beginning on July 1, 2006 and until July 1, 2023, all of the moneys received by the Department of Revenue pursuant to this Act and the Cigarette Use Tax Act, other than the moneys that are dedicated to the Common School Fund and, beginning on June 14, 2012 (the effective date of Public Act 97-688), other than the moneys from the additional taxes imposed by Public Act 97-688 that must be paid each month into the Healthcare Provider Relief Fund and other than the moneys from the additional taxes imposed by Public Act 101-31 that must be paid each month under subsection (c), shall be distributed each month as follows: first, there shall be paid into the General Revenue Fund an amount that, when added to the amount paid into the Common School Fund for that month, equals $29,200,000; then, from the moneys remaining, if any amounts required to be paid into the General Revenue Fund in previous months remain unpaid, those amounts shall be paid into the General Revenue Fund; then from the moneys remaining, $5,000,000 per month shall be paid into the School Infrastructure Fund; then, if any amounts required to be paid into the School Infrastructure Fund in previous months remain unpaid, those amounts shall be paid into the School Infrastructure Fund; then the moneys remaining, if any, shall be paid into the Long-Term Care Provider Fund. Any amounts required to be paid into the General Revenue Fund, the School Infrastructure Fund, the Long-Term Care Provider Fund, the Common School Fund, the Capital Projects Fund, or the Healthcare Provider Relief Fund under this subsection that remain unpaid as of July 1, 2023 shall be deemed satisfied on that date, eliminating any deficiency accrued through that date. (c) Beginning on July 1, 2019 and until July 1, 2023, all of the moneys from the additional taxes imposed by Public Act 101-31, except for moneys received from the tax on electronic cigarettes, received by the Department of Revenue pursuant to this Act, the Cigarette Use Tax Act, and the Tobacco Products Tax Act of 1995 shall be distributed each month into the Capital Projects Fund. (c-5) Beginning on July 1, 2023, all of the moneys received by the Department of Revenue pursuant to (i) this Act, (ii) the Cigarette Use Tax Act, and (iii) the tax imposed on little cigars under Section 10-10 of the Tobacco Products Tax Act of 1995 shall be paid each month as follows: (1) 7% into the Common School Fund; (2) 34% into the Healthcare Provider Relief Fund; (3) 34% into the Capital Projects Fund; and (4) 25% into the General Revenue Fund. (d) Until July 1, 2023, except for moneys received from the additional taxes imposed by Public Act 101-31, moneys collected from the tax imposed on little cigars under Section 10-10 of the Tobacco Products Tax Act of 1995 shall be included with the moneys collected under the Cigarette Tax Act and the Cigarette Use Tax Act when making distributions to the Common School Fund, the Healthcare Provider Relief Fund, the General Revenue Fund, the School Infrastructure Fund, and the Long-Term Care Provider Fund under this Section. Any amounts, including moneys collected from the tax imposed on little cigars under Section 10-10 of the Tobacco Products Tax Act of 1995, that are required to be paid into the General Revenue Fund, the School Infrastructure Fund, the Long-Term Care Provider Fund, the Common School Fund, the Capital Projects Fund, or the Healthcare Provider Relief Fund under subsection (b) that remain unpaid as of July 1, 2023 shall be deemed satisfied on that date, eliminating any deficiency accrued through that date. Beginning on July 1, 2023, moneys collected from the tax imposed on little cigars under Section 10-10 of the Tobacco Products Tax Act of 1995 shall be included with the moneys collected under the Cigarette Tax Act and the Cigarette Use Tax Act when making distributions under subsection (c-5). (e) If the tax imposed herein terminates or has terminated, distributors who have bought stamps while such tax was in effect and who therefore paid such tax, but who can show, to the Department's satisfaction, that they sold the cigarettes to which they affixed such stamps after such tax had terminated and did not recover the tax or its equivalent from purchasers, shall be allowed by the Department to take credit for such absorbed tax against subsequent tax stamp purchases from the Department by such distributor. (f) The impact of the tax levied by this Act is imposed upon the retailer and shall be prepaid or pre-collected by the distributor for the purpose of convenience and facility only, and the amount of the tax shall be added to the price of the cigarettes sold by such distributor. Collection of the tax shall be evidenced by a stamp or stamps affixed to each original package of cigarettes, as hereinafter provided. Any distributor who purchases stamps may credit any excess payments verified by the Department against amounts subsequently due for the purchase of additional stamps, until such time as no excess payment remains. (g) Each distributor shall collect the tax from the retailer at or before the time of the sale, shall affix the stamps as hereinafter required, and shall remit the tax collected from retailers to the Department, as hereinafter provided. Any distributor who fails to properly collect and pay the tax imposed by this Act shall be liable for the tax. (h) Any distributor having cigarettes in his or her possession on July 1, 2019 to which tax stamps have been affixed, and any distributor having stamps in his or her possession on July 1, 2019 that have not been affixed to packages of cigarettes before July 1, 2019, is required to pay the additional tax that begins on July 1, 2019 imposed by Public Act 101-31 to the extent that the volume of affixed and unaffixed stamps in the distributor's possession on July 1, 2019 exceeds the average monthly volume of cigarette stamps purchased by the distributor in calendar year 2018. This payment, less the discount provided in subsection (l), is due when the distributor first makes a purchase of cigarette stamps on or after July 1, 2019 or on the first due date of a return under this Act occurring on or after July 1, 2019, whichever occurs first. Those distributors may elect to pay the additional tax on packages of cigarettes to which stamps have been affixed and on any stamps in the distributor's possession that have not been affixed to packages of cigarettes in their possession on July 1, 2019 over a period not to exceed 12 months from the due date of the additional tax by notifying the Department in writing. The first payment for distributors making such election is due when the distributor first makes a purchase of cigarette tax stamps on or after July 1, 2019 or on the first due date of a return under this Act occurring on or after July 1, 2019, whichever occurs first. Distributors making such an election are not entitled to take the discount provided in subsection (l) on such payments. (i) Any retailer having cigarettes in its possession on July 1, 2019 to which tax stamps have been affixed is not required to pay the additional tax that begins on July 1, 2019 imposed by Public Act 101-31 on those stamped cigarettes. (j) Distributors making sales of cigarettes to secondary distributors shall add the amount of the tax to the price of the cigarettes sold by the distributors. Secondary distributors making sales of cigarettes to retailers shall include the amount of the tax in the price of the cigarettes sold to retailers. The amount of tax shall not be less than the amount of taxes imposed by the State and all local jurisdictions. The amount of local taxes shall be calculated based on the location of the retailer's place of business shown on the retailer's certificate of registration or sub-registration issued to the retailer pursuant to Section 2a of the Retailers' Occupation Tax Act. The original packages of cigarettes sold to the retailer shall bear all the required stamps, or other indicia, for the taxes included in the price of cigarettes. (k) The amount of the Cigarette Tax imposed by this Act shall be separately stated, apart from the price of the goods, by distributors, manufacturer representatives, secondary distributors, and retailers, in all bills and sales invoices. (l) The distributor shall be required to collect the tax provided under subsection (a) and, to cover the costs of such collection, shall be allowed a discount during any year commencing July 1st and ending the following June 30th in accordance with the schedule set out hereinbelow, which discount shall be allowed at the time of purchase of the stamps when purchase is required by this Act, or at the time when the tax is remitted to the Department without the purchase of stamps from the Department when that method of paying the tax is required or authorized by this Act. On and after December 1, 1985, a discount equal to 1.75% of the amount of the tax payable under this Act up to and including the first $3,000,000 paid hereunder by such distributor to the Department during any such year and 1.5% of the amount of any additional tax paid hereunder by such distributor to the Department during any such year shall apply. Two or more distributors that use a common means of affixing revenue tax stamps or that are owned or controlled by the same interests shall be treated as a single distributor for the purpose of computing the discount. (m) The taxes herein imposed are in addition to all other occupation or privilege taxes imposed by the State of Illinois, or by any political subdivision thereof, or by any municipal corporation.(Source: P.A. 103-9, eff. 6-7-23; 103-605, eff. 7-1-24.) |
(35 ILCS 130/3) (from Ch. 120, par. 453.3)
Sec. 3. Affixing tax stamp; remitting tax to the Department. Payment of
the taxes imposed by Section 2 of this Act shall
(except as hereinafter provided) be evidenced by revenue tax stamps affixed
to each original package of cigarettes. Each distributor of cigarettes,
before delivering or causing to be delivered any original package of
cigarettes in this State to a purchaser, shall firmly affix a proper stamp
or stamps to each such package, or (in case of manufacturers of cigarettes
in original packages which are contained inside a sealed transparent
wrapper) shall imprint the required language on the original package of
cigarettes beneath such outside wrapper, as hereinafter provided.
No stamp or imprint may be affixed to, or made upon, any package of
cigarettes unless that package complies with all requirements of the federal
Cigarette Labeling and Advertising Act, 15 U.S.C. 1331 and following, for the
placement of labels, warnings, or any other information upon a package of
cigarettes that is sold within the United States. Under the authority of
Section 6, the Department shall revoke the license of any distributor that is
determined to have violated this paragraph.
A person may not affix a stamp on a package of cigarettes, cigarette papers,
wrappers, or tubes if that individual package has been marked for export
outside the United States with a label or notice in compliance with Section
290.185 of Title 27 of the Code of Federal Regulations. It is not a defense to
a proceeding for violation of this paragraph that the label or notice has been
removed, mutilated, obliterated, or altered in any manner.
Only distributors licensed under this Act and transporters, as defined in Section 9c of this Act, may possess unstamped original packages of cigarettes. Prior to shipment to a secondary distributor or an Illinois retailer, a stamp shall be applied to each original package of cigarettes sold to the secondary distributor or retailer. A distributor may apply tax stamps only to original packages of cigarettes purchased or obtained directly from an in-state maker, manufacturer, or fabricator licensed as a distributor under Section 4 of this Act or an out-of-state maker, manufacturer, or fabricator holding a permit under Section 4b of this Act. A licensed distributor may ship or otherwise cause to be delivered unstamped original packages of cigarettes in, into, or from this State. A licensed distributor may transport unstamped original packages of cigarettes to a facility, wherever located, owned or controlled by such distributor; however, a distributor may not transport unstamped original packages of cigarettes to a facility where retail sales of cigarettes take place or to a facility where a secondary distributor makes sales for resale. Any licensed distributor that ships or otherwise causes to be delivered unstamped original packages of cigarettes into, within, or from this State shall ensure that the invoice or equivalent documentation and the bill of lading or freight bill for the shipment identifies the true name and address of the consignor or seller, the true name and address of the consignee or purchaser, and the quantity by brand style of the cigarettes so transported, provided that this Section shall not be construed as to impose any requirement or liability upon any common or contract carrier. The Department, or any person authorized by the Department, shall
sell such stamps only to persons holding valid
licenses as distributors under this Act. On and after July 1, 2003, payment
for such stamps must be made by means of
electronic funds transfer. The Department may refuse to sell stamps to any
person who does not comply
with the provisions of this Act.
Beginning on the effective date of this amendatory Act of the 92nd General
Assembly and through June 30, 2002, persons holding valid licenses as
distributors
may purchase cigarette tax stamps up to an amount equal to 115% of the
distributor's average monthly cigarette tax stamp purchases over the 12
calendar
months prior to the effective date of this amendatory Act of the 92nd General
Assembly.
Prior to December 1, 1985, the Department shall allow a distributor
21 days in which to make final
payment of the amount to be paid for such stamps, by allowing the
distributor to make payment for the stamps at the time of purchasing them
with a draft which shall be in such form as the Department prescribes, and
which shall be payable within 21 days thereafter: Provided that such
distributor has filed with the Department, and has received the
Department's approval of, a bond, which is in addition to the bond required
under Section 4 of this Act, payable to the Department in an amount equal
to 80% of such distributor's average monthly tax liability to
the Department under this Act during the preceding calendar year or $500,000,
whichever is less. The Bond shall be joint and
several and shall be in the form of a surety company bond in such form as
the Department prescribes, or it may be in the form of a bank certificate
of deposit or bank letter of credit. The bond shall be conditioned upon the
distributor's payment of amount of any 21-day draft which the Department
accepts from that distributor for the delivery of stamps to that
distributor under this Act. The distributor's failure to pay any such
draft, when due, shall also make such distributor automatically liable to
the Department for a penalty equal to 25% of the amount of such draft.
On and after December 1, 1985 and until July 1, 2003, the Department
shall allow a distributor
30 days in which to make
final payment of the amount to be paid for such stamps, by allowing the
distributor to make payment for the stamps at the time of purchasing them
with a draft which shall be in such form as the Department prescribes, and
which shall be payable within 30 days thereafter, and beginning on January 1,
2003 and thereafter, the draft shall be payable by means of electronic funds
transfer: Provided that such
distributor has filed with the Department, and has received the
Department's approval of, a bond, which is in addition to the bond required
under Section 4 of this Act, payable to the Department in an amount equal
to 150% of such distributor's average monthly tax liability to the
Department under this Act during the preceding calendar year or $750,000,
whichever is less, except that as to bonds filed on or after January 1,
1987, such additional bond shall be in an amount equal to 100% of such
distributor's average monthly tax liability under this Act during the
preceding calendar year or $750,000, whichever is less. The bond shall be
joint and several and shall be in the form of a surety company bond in such
form as the Department prescribes, or it may be in the form of a bank
certificate of deposit or bank letter of credit.
The bond shall be conditioned upon the distributor's payment of the amount
of any 30-day draft which the Department accepts from that distributor for
the delivery of stamps to that distributor under this Act. The
distributor's failure to pay any such draft, when due, shall also make such
distributor automatically liable to the Department for a penalty equal to
25% of the amount of such draft.
Every prior continuous compliance taxpayer shall be exempt from all
requirements under this Section concerning the furnishing of such bond, as
defined in this Section, as a condition precedent to his being authorized
to engage in the business licensed under this Act. This exemption shall
continue for each such taxpayer until such time as he may be determined by
the Department to be delinquent in the filing of any returns, or is
determined by the Department (either through the Department's issuance of a
final assessment which has become final under the Act, or by the taxpayer's
filing of a return which admits tax to be due that is not paid) to be
delinquent or deficient in the paying of any tax under this Act, at which
time that taxpayer shall become subject to the bond requirements of this
Section and, as a condition of being allowed to continue to engage in the
business licensed under this Act, shall be required to furnish bond to the
Department in such form as provided in this Section. Such taxpayer shall
furnish such bond for a period of 2 years, after which, if the taxpayer has
not been delinquent in the filing of any returns, or delinquent or
deficient in the paying of any tax under this Act, the Department may
reinstate such person as a prior continuance compliance taxpayer. Any
taxpayer who fails to pay an admitted or established liability under this
Act may also be required to post bond or other acceptable security with the
Department guaranteeing the payment of such admitted or established liability.
Except as otherwise provided in this Section, any person aggrieved by any decision of the Department under this
Section may, within the time allowed by law, protest and request a hearing,
whereupon the Department shall give notice and shall hold a hearing in
conformity with the provisions of this Act and then issue its final
administrative decision in the matter to such person. On and after July 1, 2013, protests concerning matters that are subject to the jurisdiction of the Illinois Independent Tax Tribunal shall be filed with the Tribunal in accordance with the Illinois Independent Tax Tribunal Act of 2012, and hearings on those matters shall be held before the Tribunal in accordance with that Act. With respect to protests filed with the Department prior to July 1, 2013 that would otherwise be subject to the jurisdiction of the Illinois Independent Tax Tribunal, the taxpayer may elect to be subject to the provisions of the Illinois Independent Tax Tribunal Act of 2012 at any time on or after July 1, 2013, but not later than 30 days after the date on which the protest was filed. If made, the election shall be irrevocable. In the absence of
such a protest filed within the time allowed by law, the Department's
decision shall become final without any further determination being made or
notice given.
The Department shall discharge any surety and shall release and return
any bond or security deposited, assigned, pledged, or otherwise provided to
it by a taxpayer under this Section within 30 days after:
(1) Such taxpayer becomes a prior continuous |
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(2) Such taxpayer has ceased to collect receipts on
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| which he is required to remit tax to the Department, has filed a final tax return, and has paid to the Department an amount sufficient to discharge his remaining tax liability as determined by the Department under this Act. The Department shall make a final determination of the taxpayer's outstanding tax liability as expeditiously as possible after his final tax return has been filed. If the Department cannot make such final determination within 45 days after receiving the final tax return, within such period it shall so notify the taxpayer, stating its reasons therefor.
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The Department may authorize distributors to affix revenue tax stamps by
imprinting tax meter stamps upon original packages of cigarettes. The
Department shall adopt rules and regulations relating to the imprinting of
such tax meter stamps as will result in payment of the proper taxes as
herein imposed. No distributor may affix revenue tax stamps to original
packages of cigarettes by imprinting tax meter stamps thereon unless such
distributor has first obtained permission from the Department to employ
this method of affixation. The Department shall regulate the use of tax
meters and may, to assure the proper collection of the taxes imposed by
this Act, revoke or suspend the privilege, theretofore granted by the
Department to any distributor, to imprint tax meter stamps upon original
packages of cigarettes.
Illinois cigarette manufacturers who place their cigarettes in original
packages which are contained inside a sealed transparent wrapper, and
similar out-of-State cigarette manufacturers who elect to qualify and are
accepted by the Department as distributors under Section 4b(a) of this Act,
shall pay the taxes imposed by this Act by remitting the amount thereof to
the Department by the 5th day of each month covering cigarettes shipped or
otherwise delivered in Illinois to purchasers during the preceding calendar
month. Such manufacturers of cigarettes in original packages which are
contained inside a sealed transparent wrapper, before delivering such
cigarettes or causing such cigarettes to be delivered in this State to
purchasers, shall evidence their obligation to remit the taxes due with
respect to such cigarettes by imprinting language to be prescribed by the
Department on each original package of such cigarettes underneath the
sealed transparent outside wrapper of such original package, in such place
thereon and in such manner as the Department may designate. Such imprinted
language shall acknowledge the manufacturer's payment of or liability for
the tax imposed by this Act with respect to the distribution of such
cigarettes.
A distributor shall not affix, or cause to be affixed, any stamp or imprint
to a package of cigarettes, as provided for in this Section, if the tobacco
product
manufacturer, as defined in Section 10 of the Tobacco Product Manufacturers'
Escrow
Act, that made or sold the cigarettes has failed to become a participating
manufacturer, as defined in subdivision (a)(1) of Section 15 of the Tobacco
Product
Manufacturers' Escrow Act, or has failed to create a qualified escrow fund for
any cigarettes manufactured by the tobacco product manufacturer and sold in
this State or otherwise failed to bring itself into compliance with subdivision
(a)(2) of Section 15 of the Tobacco Product
Manufacturers' Escrow Act.
(Source: P.A. 97-1129, eff. 8-28-12; 98-463, eff. 8-16-13.)
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(35 ILCS 130/3-10)
Sec. 3-10. Cigarette enforcement.
(a) Prohibitions. It is unlawful for any person:
(1) to sell or distribute in this State; to acquire, |
| hold, own, possess, or transport, for sale or distribution in this State; or to import, or cause to be imported into this State for sale or distribution in this State:
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(A) any cigarettes the package of which:
(i) bears any statement, label, stamp,
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| sticker, or notice indicating that the manufacturer did not intend the cigarettes to be sold, distributed, or used in the United States, including but not limited to labels stating "For Export Only", "U.S. Tax Exempt", "For Use Outside U.S.", or similar wording; or
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(ii) does not comply with:
(aa) all requirements imposed by or
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| pursuant to federal law regarding warnings and other information on packages of cigarettes manufactured, packaged, or imported for sale, distribution, or use in the United States, including but not limited to the precise warning labels specified in the federal Cigarette Labeling and Advertising Act, 15 U.S.C. 1333; and
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(bb) all federal trademark and copyright
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(B) any cigarettes imported into the United
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| States in violation of 26 U.S.C. 5754 or any other federal law, or implementing federal regulations;
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(C) any cigarettes that such person otherwise
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| knows or has reason to know the manufacturer did not intend to be sold, distributed, or used in the United States; or
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(D) any cigarettes for which there has not been
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| submitted to the Secretary of the U.S. Department of Health and Human Services the list or lists of the ingredients added to tobacco in the manufacture of the cigarettes required by the federal Cigarette Labeling and Advertising Act, 15 U.S.C. 1335a;
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(2) to alter the package of any cigarettes, prior to
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| sale or distribution to the ultimate consumer, so as to remove, conceal, or obscure:
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(A) any statement, label, stamp, sticker, or
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| notice described in subdivision (a)(1)(A)(i) of this Section;
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(B) any health warning that is not specified in,
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| or does not conform with the requirements of, the federal Cigarette Labeling and Advertising Act, 15 U.S.C. 1333; or
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(3) to affix any stamp required pursuant to this Act
|
| to the package of any cigarettes described in subdivision (a)(1) of this Section or altered in violation of subdivision (a)(2).
|
|
(b) Documentation. On the first business day of each month, each person
licensed
to affix the State tax stamp to cigarettes shall file with the Department, for
all cigarettes
imported into the United States to which the person has affixed the tax stamp
in the
preceding month:
(1) a copy of:
(A) the permit issued pursuant to the Internal
|
| Revenue Code, 26 U.S.C. 5713, to the person importing the cigarettes into the United States allowing the person to import the cigarettes; and
|
|
(B) the customs form containing, with respect to
|
| the cigarettes, the internal revenue tax information required by the U.S. Bureau of Alcohol, Tobacco and Firearms;
|
|
(2) a statement, signed by the person under penalty
|
| of perjury, which shall be treated as confidential by the Department and exempt from disclosure under the Freedom of Information Act, identifying the brand and brand styles of all such cigarettes, the quantity of each brand style of such cigarettes, the supplier of such cigarettes, and the person or persons, if any, to whom such cigarettes have been conveyed for resale; and a separate statement, signed by the individual under penalty of perjury, which shall not be treated as confidential or exempt from disclosure, separately identifying the brands and brand styles of such cigarettes; and
|
|
(3) a statement, signed by an officer of the
|
| manufacturer or importer under penalty of perjury, certifying that the manufacturer or importer has complied with:
|
|
(A) the package health warning and ingredient
|
| reporting requirements of the federal Cigarette Labeling and Advertising Act, 15 U.S.C. 1333 and 1335a, with respect to such cigarettes; and
|
|
(B) the provisions of Exhibit T of the Master
|
| Settlement Agreement entered in the case of People of the State of Illinois v. Philip Morris, et al. (Circuit Court of Cook County, No. 96-L13146), including a statement indicating whether the manufacturer is, or is not, a participating tobacco manufacturer within the meaning of Exhibit T.
|
|
(c) Administrative sanctions.
(1) Upon finding that a distributor, secondary
|
| distributor, retailer, or person has committed any of the acts prohibited by subsection (a), knowing or having reason to know that he or she has done so, or upon finding that a distributor or person has failed to comply with any requirement of subsection (b), the Department may revoke or suspend the license or licenses of any distributor, secondary distributor, or retailer pursuant to the procedures set forth in Section 6 and impose, on the distributor, secondary distributor, retailer, or person, a civil penalty in an amount not to exceed the greater of 500% of the retail value of the cigarettes involved or $5,000.
|
|
(2) Cigarettes that are acquired, held, owned,
|
| possessed, transported in, imported into, or sold or distributed in this State in violation of this Section shall be deemed contraband under this Act and are subject to seizure and forfeiture as provided in this Act, and all such cigarettes seized and forfeited shall be destroyed or maintained and used in an undercover capacity. Such cigarettes shall be deemed contraband whether the violation of this Section is knowing or otherwise.
|
|
(d) Unfair trade practices. In addition to any other penalties provided for in this Act, a violation of subsection (a) or subsection
(b) of this Section shall constitute an unlawful practice as provided in the
Consumer Fraud and Deceptive Business Practices Act.
(d-1) Retailers issued a license under Section 4g of this Act and secondary distributors shall not be liable under subsections (c)(1) and (d) of this Section for unknowingly possessing, selling, or distributing to consumers or users cigarettes identified in subsection (a)(1) of this Section if the cigarettes possessed, sold, or distributed by the licensed retailer or secondary distributor were obtained from a distributor licensed under this Act.
(d-2) Criminal penalties. A distributor, secondary distributor, retailer, or person who violates subsection (a), or a distributor, secondary distributor, or person who violates subsection (b) of this Section shall be guilty of a Class 4 felony.
(e) Unfair cigarette sales. For purposes of the Trademark Registration and
Protection Act and the Counterfeit Trademark Act, cigarettes imported or
reimported into the United States for sale or distribution under any trade
name, trade dress, or trademark that is the same as, or is confusingly similar
to, any trade name, trade dress, or trademark used for cigarettes manufactured
in the United States for sale or distribution in the United States shall be
presumed to have been purchased outside of the ordinary channels of trade.
(f) General provisions.
(1) This Section shall be enforced by the Department;
|
| provided that, at the request of the Director of Revenue or the Director's duly authorized agent, the State police and all local police authorities shall enforce the provisions of this Section. The Attorney General has concurrent power with the State's Attorney of any county to enforce this Section.
|
|
(2) For the purpose of enforcing this Section, the
|
| Director of Revenue and any agency to which the Director has delegated enforcement responsibility pursuant to subdivision (f)(1) may request information from any State or local agency and may share information with and request information from any federal agency and any agency of any other state or any local agency of any other state.
|
|
(3) In addition to any other remedy provided by law,
|
| including enforcement as provided in subdivision (f)(1), any person may bring an action for appropriate injunctive or other equitable relief for a violation of this Section; actual damages, if any, sustained by reason of the violation; and, as determined by the court, interest on the damages from the date of the complaint, taxable costs, and reasonable attorney's fees. If the trier of fact finds that the violation is flagrant, it may increase recovery to an amount not in excess of 3 times the actual damages sustained by reason of the violation.
|
|
(g) Definitions. As used in this Section:
"Importer" means that term as defined in 26 U.S.C. 5702(1).
"Package" means that term as defined in 15 U.S.C. 1332(4).
(h) Applicability.
(1) This Section does not apply to:
(A) cigarettes allowed to be imported or brought
|
| into the United States for personal use; and
|
|
(B) cigarettes sold or intended to be sold as
|
| duty-free merchandise by a duty-free sales enterprise in accordance with the provisions of 19 U.S.C. 1555(b) and any implementing regulations; except that this Section shall apply to any such cigarettes that are brought back into the customs territory for resale within the customs territory.
|
|
(2) The penalties provided in this Section are in
|
| addition to any other penalties imposed under other provision of law.
|
|
(Source: P.A. 98-1055, eff. 1-1-16.)
|
(35 ILCS 130/4) (from Ch. 120, par. 453.4)
Sec. 4. Distributor's license. No person may engage in business as a distributor of cigarettes in this
State within the meaning of the first 2 definitions of distributor in
Section 1 of this Act without first having obtained a license therefor from
the Department. Application for license shall be made to the Department in
form as furnished and prescribed by the Department. Each applicant for a
license under this Section shall furnish to the Department on the form
signed and verified by the applicant under penalty of perjury the following information:
(a) The name and address of the applicant;
(b) The address of the location at which the |
| applicant proposes to engage in business as a distributor of cigarettes in this State;
|
|
(c) Such other additional information as the
|
| Department may lawfully require by its rules and regulations.
|
|
The annual license fee payable to the Department for each distributor's
license shall be $250. The purpose of such annual license fee is to defray
the cost, to the Department, of
serializing cigarette tax stamps. Each applicant for license shall pay such
fee to the Department at the time of submitting his application for license
to the Department.
Every applicant who is required to procure a distributor's license shall
file with his application a joint and several bond. Such bond shall be
executed to the Department of Revenue, with good and sufficient surety or
sureties residing or licensed to do business within the State of Illinois,
in the amount of $2,500, conditioned upon the true and faithful compliance
by the licensee with all of the provisions of this Act. Such bond, or a
reissue thereof, or a substitute therefor, shall be kept in effect during
the entire period covered by the license. A separate application for
license shall be made, a separate annual license fee paid, and a separate
bond filed, for each place of business at which a person who is required to
procure a distributor's license under this Section proposes to engage in
business as a distributor in Illinois under this Act.
The following are ineligible to receive a distributor's license under
this Act:
(1) a person who is not of good character and
|
| reputation in the community in which he resides; the Department may consider past conviction of a felony but the conviction shall not operate as an absolute bar to licensure;
|
|
(2) a person who has been convicted of a felony
|
| under any Federal or State law, if the Department, after investigation and a hearing and consideration of mitigating factors and evidence of rehabilitation contained in the applicant's record, including those in Section 4i, determines that such person has not been sufficiently rehabilitated to warrant the public trust and the conviction will impair the ability of the person to engage in the position for which a license is sought;
|
|
(3) a corporation, if any officer, manager or
|
| director thereof, or any stockholder or stockholders owning in the aggregate more than 5% of the stock of such corporation, would not be eligible to receive a license under this Act for any reason;
|
|
(4) a person, or any person who owns more than 15
|
| percent of the ownership interests in a person or a related party who:
|
|
(a) owes, at the time of application, any
|
| delinquent cigarette taxes that have been determined by law to be due and unpaid, unless the license applicant has entered into an agreement approved by the Department to pay the amount due;
|
|
(b) had a license under this Act revoked
|
| within the past two years by the Department for misconduct relating to stolen or contraband cigarettes or has been convicted of a State or federal crime, punishable by imprisonment of one year or more, relating to stolen or contraband cigarettes;
|
|
(c) manufactures cigarettes, whether in this
|
| State or out of this State, and who is neither (i) a participating manufacturer as defined in subsection II(jj) of the "Master Settlement Agreement" as defined in Sections 10 of the Tobacco Products Manufacturers' Escrow Act and the Tobacco Products Manufacturers' Escrow Enforcement Act of 2003 (30 ILCS 168/10 and 30 ILCS 167/10); nor (ii) in full compliance with Tobacco Products Manufacturers' Escrow Act and the Tobacco Products Manufacturers' Escrow Enforcement Act of 2003 (30 ILCS 168/ and 30 ILCS 167/);
|
|
(d) has been found by the Department, after
|
| notice and a hearing, to have imported or caused to be imported into the United States for sale or distribution any cigarette in violation of 19 U.S.C. 1681a;
|
|
(e) has been found by the Department, after
|
| notice and a hearing, to have imported or caused to be imported into the United States for sale or distribution or manufactured for sale or distribution in the United States any cigarette that does not fully comply with the Federal Cigarette Labeling and Advertising Act (15 U.S.C. 1331, et seq.); or
|
|
(f) has been found by the Department, after
|
| notice and a hearing, to have made a material false statement in the application or has failed to produce records required to be maintained by this Act.
|
|
The Department, upon receipt of an application, license fee and bond in
proper form, from a person who is eligible to receive a distributor's
license under this Act, shall issue to such applicant a license in form as
prescribed by the Department, which license shall permit the applicant to
which it is issued to engage in business as a distributor at the place
shown in his application. All licenses issued by the Department under this
Act shall be valid for not to exceed one year after issuance unless sooner
revoked, canceled or suspended as provided in this Act. No license issued
under this Act is transferable or assignable. Such license shall be
conspicuously displayed in the place of business conducted by the licensee
in Illinois under such license. No distributor licensee acquires any vested interest or compensable property right in a license issued under this Act.
A licensed distributor shall notify the Department of any change in the information contained on the application form, including any change in ownership and shall do so within 30 days after any such change.
Any person aggrieved by any decision of the Department under this Section
may, within 20 days after notice of the decision, protest and request a
hearing. Upon receiving a request for a hearing, the Department shall give
notice to the person requesting the hearing of the time and place fixed for the
hearing and shall hold a hearing in conformity with the provisions of this Act
and then issue its final administrative decision in the matter to that person.
In the absence of a protest and request for a hearing within 20 days, the
Department's decision shall become final without any further determination
being made or notice given.
(Source: P.A. 100-286, eff. 1-1-18.)
|
(35 ILCS 130/4b) (from Ch. 120, par. 453.4b) (Text of Section before amendment by P.A. 103-592)
Sec. 4b.
(a) The Department may, in its discretion, upon application, issue
permits authorizing the payment of the tax herein imposed by out-of-State
cigarette manufacturers who are not required to be licensed as distributors
of cigarettes in this State, but who elect to qualify under this Act as
distributors of cigarettes in this State, and who, to the satisfaction of
the Department, furnish adequate security to insure payment of the tax,
provided that any such permit shall extend only to cigarettes which such
permittee manufacturer places in original packages that are contained
inside a sealed transparent wrapper. Such permits shall be issued without
charge in such form as the Department may prescribe and shall not be
transferable or assignable.
The following are ineligible to receive a distributor's permit under
this subsection:
(1) a person who is not of good character and |
| reputation in the community in which he resides; the Department may consider past conviction of a felony but the conviction shall not operate as an absolute bar to receiving a permit;
|
|
(2) a person who has been convicted of a felony under
|
| any Federal or State law, if the Department, after investigation and a hearing and consideration of mitigating factors and evidence of rehabilitation contained in the applicant's record, including those in Section 4i of this Act, determines that such person has not been sufficiently rehabilitated to warrant the public trust and the conviction will impair the ability of the person to engage in the position for which a permit is sought;
|
|
(3) a corporation, if any officer, manager or
|
| director thereof, or any stockholder or stockholders owning in the aggregate more than 5% of the stock of such corporation, would not be eligible to receive a permit under this Act for any reason.
|
|
With respect to cigarettes which come within the scope of such a permit
and which any such permittee delivers or causes to be delivered in Illinois
to licensed distributors, such permittee shall remit the tax imposed by this Act at
the times provided for in Section 3 of this Act. Each such remittance
shall be accompanied by a return filed with the Department on a form to be
prescribed and furnished by the Department and shall disclose such
information as the Department may lawfully require. The Department may promulgate rules to require that the permittee's return be accompanied by appropriate computer-generated magnetic media supporting schedule data in the format prescribed by the Department, unless, as provided by rule, the Department grants an exception upon petition of the permittee. Each such return shall
be accompanied by a copy of each invoice rendered by the permittee to any
licensed distributor to whom the permittee delivered cigarettes of the type covered by
the permit (or caused cigarettes of the type covered by the permit to be
delivered) in Illinois during the period covered by such return.
Such permit may be suspended, canceled or revoked when, at any time, the
Department considers that the security given is inadequate, or that such
tax can more effectively be collected from distributors located in this
State, or whenever the permittee violates any provision of this Act or any
lawful rule or regulation issued by the Department pursuant to this Act or
is determined to be ineligible for a distributor's permit under this Act as
provided in this Section, whenever the permittee shall notify the
Department in writing of his desire to have the permit canceled. The
Department shall have the power, in its discretion, to issue a new permit
after such suspension, cancellation or revocation, except when the person
who would receive the permit is ineligible to receive a distributor's
permit under this Act.
All permits issued by the Department under this Act shall be valid for
not to exceed one year after issuance unless sooner revoked, canceled or
suspended as in this Act provided.
(b) Out-of-state cigarette manufacturers who are not required to be licensed as distributors of cigarettes in this State and who do not elect to obtain approval under subsection 4b(a) to pay the tax imposed by this Act, but who elect to qualify under this Act as distributors of cigarettes in this State for purposes of shipping and delivering unstamped original packages of cigarettes into this State to licensed distributors, shall obtain a permit from the Department. These permits shall be issued without charge in such form as the Department may prescribe and shall not be transferable or assignable.
The following are ineligible to receive a distributor's permit under this subsection:
(1) a person who is not of good character and
|
| reputation in the community in which he or she resides; the Department may consider past conviction of a felony but the conviction shall not operate as an absolute bar to receiving a permit;
|
|
(2) a person who has been convicted of a felony under
|
| any federal or State law, if the Department, after investigation and a hearing and consideration of mitigating factors and evidence of rehabilitation contained in the applicant's record, including those set forth in Section 4i of this Act, determines that the person has not been sufficiently rehabilitated to warrant the public trust and the conviction will impair the ability of the person to engage in the position for which a permit is sought; and
|
|
(3) a corporation, if any officer, manager, or
|
| director thereof, or any stockholder or stockholders owning in the aggregate more than 5% of the stock of the corporation, would not be eligible to receive a permit under this Act for any reason.
|
|
With respect to original packages of cigarettes that such permittee delivers or causes to be delivered in Illinois and distributes to the public for promotional purposes without consideration, the permittee shall pay the tax imposed by this Act by remitting the amount thereof to the Department by the 5th day of each month covering cigarettes shipped or otherwise delivered in Illinois for those purposes during the preceding calendar month. The permittee, before delivering those cigarettes or causing those cigarettes to be delivered in this State, shall evidence his or her obligation to remit the taxes due with respect to those cigarettes by imprinting language to be prescribed by the Department on each original package of cigarettes, in such place thereon and in such manner also to be prescribed by the Department. The imprinted language shall acknowledge the permittee's payment of or liability for the tax imposed by this Act with respect to the distribution of those cigarettes.
With respect to cigarettes that the permittee delivers or causes to be delivered in Illinois to Illinois licensed distributors or distributed to the public for promotional purposes, the permittee shall, by the 5th day of each month, file with the Department, a report covering cigarettes shipped or otherwise delivered in Illinois to licensed distributors or distributed to the public for promotional purposes during the preceding calendar month on a form to be prescribed and furnished by the Department and shall disclose such other information as the Department may lawfully require. The Department may promulgate rules to require that the permittee's report be accompanied by appropriate computer-generated magnetic media supporting schedule data in the format prescribed by the Department, unless, as provided by rule, the Department grants an exception upon petition of the permittee. Each such report shall be accompanied by a copy of each invoice rendered by the permittee to any purchaser to whom the permittee delivered cigarettes of the type covered by the permit (or caused cigarettes of the type covered by the permit to be delivered) in Illinois during the period covered by such report.
Such permit may be suspended, canceled, or revoked whenever the permittee violates any provision of this Act or any lawful rule or regulation issued by the Department pursuant to this Act, is determined to be ineligible for a distributor's permit under this Act as provided in this Section, or notifies the Department in writing of his or her desire to have the permit canceled. The Department shall have the power, in its discretion, to issue a new permit after such suspension, cancellation, or revocation, except when the person who would receive the permit is ineligible to receive a distributor's permit under this Act.
All permits issued by the Department under this Act shall be valid for a period not to exceed one year after issuance unless sooner revoked, canceled, or suspended as provided in this Act.
(Source: P.A. 100-286, eff. 1-1-18.)
(Text of Section after amendment by P.A. 103-592)
Sec. 4b. (a) The Department may, in its discretion, upon application, issue permits authorizing the payment of the tax herein imposed by out-of-State cigarette manufacturers who are not required to be licensed as distributors of cigarettes in this State, but who elect to qualify under this Act as distributors of cigarettes in this State, and who, to the satisfaction of the Department, furnish adequate security to insure payment of the tax, provided that any such permit shall extend only to cigarettes which such permittee manufacturer places in original packages that are contained inside a sealed transparent wrapper. Such permits shall be issued without charge in such form as the Department may prescribe and shall not be transferable or assignable.
The following are ineligible to receive a distributor's permit under this subsection:
(1) a person who is not of good character and
|
| reputation in the community in which he resides; the Department may consider past conviction of a felony but the conviction shall not operate as an absolute bar to receiving a permit;
|
|
(2) a person who has been convicted of a felony under
|
| any Federal or State law, if the Department, after investigation and a hearing and consideration of mitigating factors and evidence of rehabilitation contained in the applicant's record, including those in Section 4i of this Act, determines that such person has not been sufficiently rehabilitated to warrant the public trust and the conviction will impair the ability of the person to engage in the position for which a permit is sought;
|
|
(3) a corporation, if any officer, manager or
|
| director thereof, or any stockholder or stockholders owning in the aggregate more than 5% of the stock of such corporation, would not be eligible to receive a permit under this Act for any reason.
|
|
With respect to cigarettes which come within the scope of such a permit and which any such permittee delivers or causes to be delivered in Illinois to licensed distributors, such permittee shall remit the tax imposed by this Act at the times provided for in Section 3 of this Act. Each such remittance shall be accompanied by a return filed with the Department on a form to be prescribed and furnished by the Department and shall disclose such information as the Department may lawfully require. Information that the Department may lawfully require includes information related to the uniform regulation and taxation of cigarettes. The Department may promulgate rules to require that the permittee's return be accompanied by appropriate computer-generated magnetic media supporting schedule data in the format prescribed by the Department, unless, as provided by rule, the Department grants an exception upon petition of the permittee. Each such return shall be accompanied by a copy of each invoice rendered by the permittee to any licensed distributor to whom the permittee delivered cigarettes of the type covered by the permit (or caused cigarettes of the type covered by the permit to be delivered) in Illinois during the period covered by such return.
Such permit may be suspended, canceled or revoked when, at any time, the Department considers that the security given is inadequate, or that such tax can more effectively be collected from distributors located in this State, or whenever the permittee violates any provision of this Act or any lawful rule or regulation issued by the Department pursuant to this Act or is determined to be ineligible for a distributor's permit under this Act as provided in this Section, whenever the permittee shall notify the Department in writing of his desire to have the permit canceled. The Department shall have the power, in its discretion, to issue a new permit after such suspension, cancellation or revocation, except when the person who would receive the permit is ineligible to receive a distributor's permit under this Act.
All permits issued by the Department under this Act shall be valid for not to exceed one year after issuance unless sooner revoked, canceled or suspended as in this Act provided.
(b) Out-of-state cigarette manufacturers who are not required to be licensed as distributors of cigarettes in this State and who do not elect to obtain approval under subsection 4b(a) to pay the tax imposed by this Act, but who elect to qualify under this Act as distributors of cigarettes in this State for purposes of shipping and delivering unstamped original packages of cigarettes into this State to licensed distributors, shall obtain a permit from the Department. These permits shall be issued without charge in such form as the Department may prescribe and shall not be transferable or assignable.
The following are ineligible to receive a distributor's permit under this subsection:
(1) a person who is not of good character and
|
| reputation in the community in which he or she resides; the Department may consider past conviction of a felony but the conviction shall not operate as an absolute bar to receiving a permit;
|
|
(2) a person who has been convicted of a felony under
|
| any federal or State law, if the Department, after investigation and a hearing and consideration of mitigating factors and evidence of rehabilitation contained in the applicant's record, including those set forth in Section 4i of this Act, determines that the person has not been sufficiently rehabilitated to warrant the public trust and the conviction will impair the ability of the person to engage in the position for which a permit is sought; and
|
|
(3) a corporation, if any officer, manager, or
|
| director thereof, or any stockholder or stockholders owning in the aggregate more than 5% of the stock of the corporation, would not be eligible to receive a permit under this Act for any reason.
|
|
With respect to original packages of cigarettes that such permittee delivers or causes to be delivered in Illinois and distributes to the public for promotional purposes without consideration, the permittee shall pay the tax imposed by this Act by remitting the amount thereof to the Department by the 5th day of each month covering cigarettes shipped or otherwise delivered in Illinois for those purposes during the preceding calendar month. The permittee, before delivering those cigarettes or causing those cigarettes to be delivered in this State, shall evidence his or her obligation to remit the taxes due with respect to those cigarettes by imprinting language to be prescribed by the Department on each original package of cigarettes, in such place thereon and in such manner also to be prescribed by the Department. The imprinted language shall acknowledge the permittee's payment of or liability for the tax imposed by this Act with respect to the distribution of those cigarettes.
With respect to cigarettes that the permittee delivers or causes to be delivered in Illinois to Illinois licensed distributors or distributed to the public for promotional purposes, the permittee shall, by the 5th day of each month, file with the Department, a report covering cigarettes shipped or otherwise delivered in Illinois to licensed distributors or distributed to the public for promotional purposes during the preceding calendar month on a form to be prescribed and furnished by the Department and shall disclose such other information as the Department may lawfully require. Information that the Department may lawfully require includes information related to the uniform regulation and taxation of cigarettes. The Department may promulgate rules to require that the permittee's report be accompanied by appropriate computer-generated magnetic media supporting schedule data in the format prescribed by the Department, unless, as provided by rule, the Department grants an exception upon petition of the permittee. Each such report shall be accompanied by a copy of each invoice rendered by the permittee to any purchaser to whom the permittee delivered cigarettes of the type covered by the permit (or caused cigarettes of the type covered by the permit to be delivered) in Illinois during the period covered by such report.
Such permit may be suspended, canceled, or revoked whenever the permittee violates any provision of this Act or any lawful rule or regulation issued by the Department pursuant to this Act, is determined to be ineligible for a distributor's permit under this Act as provided in this Section, or notifies the Department in writing of his or her desire to have the permit canceled. The Department shall have the power, in its discretion, to issue a new permit after such suspension, cancellation, or revocation, except when the person who would receive the permit is ineligible to receive a distributor's permit under this Act.
All permits issued by the Department under this Act shall be valid for a period not to exceed one year after issuance unless sooner revoked, canceled, or suspended as provided in this Act.
(Source: P.A. 103-592, eff. 1-1-25.)
|
(35 ILCS 130/4c) Sec. 4c. Secondary distributor's license. No person may engage in business as a secondary distributor of cigarettes in this State without first having obtained a license therefor from the Department. Application for license shall be made to the Department on a form as furnished and prescribed by the Department. Each applicant for a license under this Section shall furnish the following information to the Department on a form signed and verified by the applicant under penalty of perjury: (1) the name and address of the applicant; (2) the address of the location at which the |
| applicant proposes to engage in business as a secondary distributor of cigarettes in this State; and
|
|
(3) such other additional information as the
|
| Department may reasonably require.
|
|
The annual license fee payable to the Department for each secondary distributor's license shall be $250. Each applicant for a license shall pay such fee to the Department at the time of submitting an application for license to the Department.
A separate application for license shall be made and separate annual license fee paid for each place of business at which a person who is required to procure a secondary distributor's license under this Section proposes to engage in business as a secondary distributor in Illinois under this Act.
The following are ineligible to receive a secondary distributor's license under this Act:
(1) a person who is not of good character and
|
| reputation in the community in which he resides; the Department may consider past conviction of a felony but the conviction shall not operate as an absolute bar to receiving a license;
|
|
(2) a person who has been convicted of a felony under
|
| any federal or State law, if the Department, after investigation and a hearing and consideration of the mitigating factors provided in subsection (b) of Section 4i of this Act, determines that such person has not been sufficiently rehabilitated to warrant the public trust and the conviction will impair the ability of the person to engage in the position for which a license is sought;
|
|
(3) a corporation, if any officer, manager, or
|
| director thereof, or any stockholder or stockholders owning in the aggregate more than 5% of the stock of such corporation, would not be eligible to receive a license under this Act for any reason;
|
|
(4) a person who manufactures cigarettes, whether in
|
| this State or out of this State;
|
|
(5) a person, or any person who owns more than 15% of
|
| the ownership interests in a person or a related party who:
|
|
(A) owes, at the time of application, any
|
| delinquent cigarette taxes that have been determined by law to be due and unpaid, unless the license applicant has entered into an agreement approved by the Department to pay the amount due;
|
|
(B) had a license under this Act revoked within
|
| the past two years by the Department or has been convicted of a State or federal crime, punishable by imprisonment of one year or more, relating to stolen or contraband cigarettes;
|
|
(C) has been found by the Department, after
|
| notice and a hearing, to have imported or caused to be imported into the United States for sale or distribution any cigarette in violation of 19 U.S.C. 1681a;
|
|
(D) has been found by the Department, after
|
| notice and a hearing, to have imported or caused to be imported into the United States for sale or distribution or manufactured for sale or distribution in the United States any cigarette that does not fully comply with the Federal Cigarette Labeling and Advertising Act (15 U.S.C. 1331, et seq.); or
|
|
(E) has been found by the Department, after
|
| notice and a hearing, to have made a material false statement in the application or has failed to produce records required to be maintained by this Act.
|
|
The Department, upon receipt of an application and license fee from a person who is eligible to receive a secondary distributor's license under this Act, shall issue to such applicant a license in such form as prescribed by the Department. The license shall permit the applicant to which it is issued to engage in business as a secondary distributor at the place shown in his application. All licenses issued by the Department under this Act shall be valid for a period not to exceed one year after issuance unless sooner revoked, canceled, or suspended as provided in this Act. No license issued under this Act is transferable or assignable. Such license shall be conspicuously displayed in the place of business conducted by the licensee in Illinois under such license. No secondary distributor licensee acquires any vested interest or compensable property right in a license issued under this Act.
A licensed secondary distributor shall notify the Department of any change in the information contained on the application form, including any change in ownership, and shall do so within 30 days after any such change.
Any person aggrieved by any decision of the Department under this Section may, within 20 days after notice of the decision, protest and request a hearing. Upon receiving a request for a hearing, the Department shall give notice to the person requesting the hearing of the time and place fixed for the hearing and shall hold a hearing in conformity with the provisions of this Act and then issue its final administrative decision in the matter to that person. In the absence of a protest and request for a hearing within 20 days, the Department's decision shall become final without any further determination being made or notice given.
(Source: P.A. 100-286, eff. 1-1-18.)
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(35 ILCS 130/4f) Sec. 4f. Manufacturer representatives. (a) No manufacturer may market cigarettes produced by the manufacturer directly to retailers in this State issued a license under Section 4g of this Act without first having obtained authorization from the Department. Application for authority to maintain representatives in this State to market in this State cigarettes produced by the manufacturer shall be made to the Department on a form furnished and prescribed by the Department. Each applicant under this Section shall furnish the following information to the Department on a form signed and verified by the applicant under penalty of perjury: (1) the name and address of the applicant; (2) the address of every location from which the |
| applicant proposes to engage in business in this State;
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(3) the number of manufacturer representatives the
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| applicant requests to maintain in this State; and
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(4) any other additional information as the
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| Department may reasonably require.
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The following manufacturers are ineligible to receive authorization to maintain manufacturer representatives in this State:
(1) a manufacturer who owes, at the time of
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| application, any delinquent cigarette taxes that have been determined by law to be due and unpaid, unless the applicant has entered into an agreement approved by the Department to pay the amount due;
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(2) a manufacturer who has had a license revoked
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| within the past 2 years for misconduct relating to stolen or contraband cigarettes or has been convicted of a state or federal crime, punishable by imprisonment of one year or more, relating to stolen or contraband cigarettes;
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(3) a manufacturer who has been found, after notice
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| and a hearing, to have imported or caused to be imported into the United States for sale or distribution any cigarette in violation of 19 U.S.C. 1681a;
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(4) a manufacturer who has been found, after notice
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| and a hearing, to have imported or caused to be imported into the United States for sale or distribution or manufactured for sale or distribution in the United States any cigarette that does not fully comply with the Federal Cigarette Labeling and Advertising Act (15 U.S.C. 1331, et seq.);
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(5) a manufacturer who has been found, after notice
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| and a hearing, to have made a material false statement in an application or has failed to produce records required to be maintained by this Act;
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(6) a manufacturer who has been found, after notice
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| and hearing, to have violated any Section of this Act; or
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(7) a manufacturer licensed as a distributor under
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| Section 4 of this Act or holding a permit under Section 4b of this Act.
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The Department, upon receipt of an application from a manufacturer who is eligible to maintain manufacturer representatives in this State, shall notify the applicant in writing, not more than 60 days after an application has been received, that the applicant may or may not maintain the requested number of manufacturer representatives in this State. A copy of the notice authorizing a manufacturer to maintain manufacturer representatives in this State shall be available for inspection by the Department at each place of business identified in the application and in the motor vehicle operated by marketing representatives in the course of performing his or her duties in this State on behalf of the manufacturer.
A manufacturer representative shall notify the Department of any change in the information contained on the application form and shall do so within 30 days after any such change.
(b) Only directors, officers, and employees of the manufacturer may act as manufacturer representatives in this State. The manufacturer shall provide to the Department the names and addresses of the manufacturer representatives operating in this State and the make, model, and license plate number of each motor vehicle operated by a manufacturer representative in the course of performing his or her duties in this State on behalf of the manufacturer. The following individuals may not act as manufacturer representatives:
(1) an individual who owes any delinquent cigarette
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| taxes that have been determined by law to be due and unpaid, unless the individual has entered into an agreement approved by the Department to pay the amount due;
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(2) an individual who has had a license revoked
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| within the past 2 years for misconduct relating to stolen or contraband cigarettes or has been convicted of a state or federal crime, punishable by imprisonment of one year or more, relating to stolen or contraband cigarettes;
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(3) an individual who has been found, after notice
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| and a hearing, to have made a material false statement in an application or has failed to produce records required to be maintained by this Act; or
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(4) an individual who has been found, after notice
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| and hearing, to have violated any Section of this Act.
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(c) Manufacturer representatives may sell to retailers in this State who are licensed under Section 4g of this Act only original packages of cigarettes made, manufactured, or fabricated by the manufacturer and purchased or obtained from a distributor licensed under this Act, or the Cigarette Tax Use Act, and on which tax stamps have been affixed. Manufacturer representatives may sell up to 600 stamped original packages of cigarettes in a calendar year, for the purpose of promoting the manufacturer's brands of cigarettes. A manufacturer representative may not possess more than 500 stamped original packages of cigarettes made, manufactured, or fabricated by the manufacturer and purchased or obtained from a distributor licensed under this Act or the Cigarette Use Tax Act. Any original packages of cigarettes in the possession of a manufacturer representative that (i) are not made, manufactured, or fabricated by the manufacturer and purchased or obtained from a distributor licensed under this Act or the Cigarette Use Tax Act, other than cigarettes for personal use and consumption, (ii) exceed the maximum quantity of 500 original packages of cigarettes, excluding packages of cigarettes for personal use and consumption; (iii) violate Section 3-10 of this Act; or (iv) do not have the proper tax stamps affixed, are contraband and subject to seizure and forfeiture.
Manufacturer representatives may sell, on behalf of licensed distributors, stamped original packages of cigarettes to retailers who are licensed under Section 4g of this Act. The manufacturer representative shall provide the distributor with a signed receipt for the cigarettes obtained from the distributor. The distributor shall invoice the licensed retailer, and the licensed retailer shall pay the distributor for all cigarettes provided to licensed retailers by manufacturer representatives on behalf of a distributor.
Manufacturer representatives may sell stamped original packages of cigarettes to licensed retailers that are purchased from licensed distributors. Distributors shall provide manufacturer representatives with invoices for stamped original packages of cigarettes sold to manufacturer representatives. Manufacturer representatives shall invoice licensed retailers, and the licensed retailers shall pay the manufacturer representatives for all original packages of cigarettes sold to licensed retailers.
(d) Any person aggrieved by any decision of the Department under this Section may, within 20 days after notice of the decision, protest and request a hearing. Upon receiving a request for a hearing, the Department shall give notice to the person requesting the hearing of the time and place fixed for the hearing and shall hold a hearing in conformity with the provisions of this Act and then issue its final administrative decision in the matter to that person. In the absence of a protest and request for a hearing within 20 days, the Department's decision shall become final without any further determination being made or notice given.
(Source: P.A. 97-587, eff. 8-26-11; 98-1055, eff. 1-1-16.)
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(35 ILCS 130/4g) Sec. 4g. Retailer's license. Beginning on January 1, 2016, no person may engage in business as a retailer of cigarettes in this State without first having obtained a license from the Department. Application for license shall be made to the Department, by electronic means, in a form prescribed by the Department. Each applicant for a license under this Section shall furnish to the Department, in an electronic format established by the Department, the following information: (1) the name and address of the applicant; (2) the address of the location at which the |
| applicant proposes to engage in business as a retailer of cigarettes in this State; and
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(3) such other additional information as the
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| Department may lawfully require by its rules and regulations.
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The annual license fee payable to the Department for each retailer's license shall be $75. The fee shall be deposited into the Tax Compliance and Administration Fund and shall be for the cost of tobacco retail inspection and contraband tobacco and tobacco smuggling with at least two-thirds of the money being used for contraband tobacco and tobacco smuggling operations and enforcement.
Each applicant for a license shall pay the fee to the Department at the time of submitting its application for a license to the Department. The Department shall require an applicant for a license under this Section to electronically file and pay the fee.
A separate annual license fee shall be paid for each place of business at which a person who is required to procure a retailer's license under this Section proposes to engage in business as a retailer in Illinois under this Act.
The following are ineligible to receive a retailer's license under this Act:
(1) a person who has been convicted of a felony
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| related to the illegal transportation, sale, or distribution of cigarettes, or a tobacco-related felony, under any federal or State law, if the Department, after investigation and a hearing if requested by the applicant, determines that the person has not been sufficiently rehabilitated to warrant the public trust; or
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(2) a corporation, if any officer, manager, or
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| director thereof, or any stockholder or stockholders owning in the aggregate more than 5% of the stock of such corporation, would not be eligible to receive a license under this Act for any reason.
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The Department, upon receipt of an application and license fee, in proper form, from a person who is eligible to receive a retailer's license under this Act, shall issue to such applicant a license in form as prescribed by the Department. That license shall permit the applicant to whom it is issued to engage in business as a retailer under this Act at the place shown in his or her application. All licenses issued by the Department under this Section shall be valid for a period not to exceed one year after issuance unless sooner revoked, canceled, or suspended as provided in this Act. No license issued under this Section is transferable or assignable. The license shall be conspicuously displayed in the place of business conducted by the licensee in Illinois under such license. The Department shall not issue a retailer's license to a retailer unless the retailer is also registered under the Retailers' Occupation Tax Act. A person who obtains a license as a retailer who ceases to do business as specified in the license, or who never commenced business, or whose license is suspended or revoked, shall immediately surrender the license to the Department.
Any person aggrieved by any decision of the Department under this Section may, within 30 days after notice of the decision, protest and request a hearing. Upon receiving a request for a hearing, the Department shall give written notice to the person requesting the hearing of the time and place fixed for the hearing and shall hold a hearing in conformity with the provisions of this Act and then issue its final administrative decision in the matter to that person. In the absence of a protest and request for a hearing within 30 days, the Department's decision shall become final without any further determination being made or notice given.
(Source: P.A. 98-1055, eff. 1-1-16; 99-78, 7-20-15; 99-192, eff. 1-1-16.)
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(35 ILCS 130/4i) Sec. 4i. Applicant convictions. (a) The Department shall not require applicants to report the following information and shall not consider the following criminal history records in connection with an application for a license or permit under this Act: (1) Juvenile adjudications of delinquent minors as |
| defined in Section 5-105 of the Juvenile Court Act of 1987, subject to the restrictions set forth in Section 5-130 of the Juvenile Court Act of 1987.
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(2) Law enforcement records, court records, and
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| conviction records of an individual who was 17 years old at the time of the offense and before January 1, 2014, unless the nature of the offense required the individual to be tried as an adult.
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(3) Records of arrest not followed by a conviction.
(4) Convictions overturned by a higher court.
(5) Convictions or arrests that have been sealed or
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(b) The Department, upon a finding that an applicant for a license or permit was previously convicted of a felony under any federal or State law, shall consider any mitigating factors and evidence of rehabilitation contained in the applicant's record, including any of the following factors and evidence, to determine if the applicant has been sufficiently rehabilitated and whether a prior conviction will impair the ability of the applicant to engage in the position for which a license or permit is sought:
(1) the lack of direct relation of the offense for
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| which the applicant was previously convicted to the duties, functions, and responsibilities of the position for which a license or permit is sought;
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(2) whether 5 years since a felony conviction or 3
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| years since release from confinement for the conviction, whichever is later, have passed without a subsequent conviction;
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(3) if the applicant was previously licensed or
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| employed in this State or other states or jurisdictions, then the lack of prior misconduct arising from or related to the licensed position or position of employment;
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(4) the age of the person at the time of the criminal
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(5) successful completion of sentence and, for
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| applicants serving a term of parole or probation, a progress report provided by the applicant's probation or parole officer that documents the applicant's compliance with conditions of supervision;
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(6) evidence of the applicant's present fitness and
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(7) evidence of rehabilitation or rehabilitative
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| effort during or after incarceration, or during or after a term of supervision, including, but not limited to, a certificate of good conduct under Section 5-5.5-25 of the Unified Code of Corrections or a certificate of relief from disabilities under Section 5-5.5-10 of the Unified Code of Corrections; and
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(8) any other mitigating factors that contribute to
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| the person's potential and current ability to perform the duties and responsibilities of the position for which a license, permit or employment is sought.
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(c) If the Department refuses to issue a license or permit to an applicant, then the Department shall notify the applicant of the denial in writing with the following included in the notice of denial:
(1) a statement about the decision to refuse to issue
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(2) a list of the convictions that the Department
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| determined will impair the applicant's ability to engage in the position for which a license or permit is sought;
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(3) a list of convictions that formed the sole or
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| partial basis for the refusal to issue a license or permit; and
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(4) a summary of the appeal process or the earliest
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| the applicant may reapply for a license, whichever is applicable.
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(d) No later than May 1 of each year, the Department must prepare, publicly announce, and publish a report of summary statistical information relating to new and renewal license or permit applications during the preceding calendar year. Each report shall show, at a minimum:
(1) the number of applicants for a new or renewal
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| license or permit under this Act within the previous calendar year;
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(2) the number of applicants for a new or renewal
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| license or permit under this Act within the previous calendar year who had any criminal conviction;
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(3) the number of applicants for a new or renewal
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| license or permit under this Act in the previous calendar year who were granted a license or permit;
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(4) the number of applicants for a new or renewal
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| license or permit with a criminal conviction who were granted a license or permit under this Act within the previous calendar year;
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(5) the number of applicants for a new or renewal
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| license or permit under this Act within the previous calendar year who were denied a license or permit; and
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(6) the number of applicants for a new or renewal
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| license or permit with a criminal conviction who were denied a license or permit under this Act in the previous calendar year in whole or in part because of a prior conviction.
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(Source: P.A. 100-286, eff. 1-1-18.)
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(35 ILCS 130/6) (from Ch. 120, par. 453.6)
Sec. 6. Revocation, cancellation, or suspension of license. The Department may, after notice and hearing as provided for by this
Act, revoke, cancel or suspend the license of any distributor, secondary distributor, or retailer for the
violation of any provision of this Act, or for noncompliance with any
provision herein contained, or for any noncompliance with any lawful rule
or regulation promulgated by the Department under Section 8 of this Act, or
because the licensee is determined to be ineligible for a distributor's
license for any one or more of the reasons provided for in Section 4 of
this Act, or because the licensee is determined to be ineligible for a secondary distributor's license for any one or more of the reasons provided for in Section 4c of this Act, or because the licensee is determined to be ineligible for a retailer's license for any one or more of the reasons provided for in Section 4g of this Act. However, no such license shall be revoked, cancelled or
suspended, except after a hearing by the Department with notice to the
distributor, secondary distributor, or retailer, as aforesaid, and affording such distributor, secondary distributor, or retailer a reasonable
opportunity to appear and defend, and any distributor, secondary distributor, or retailer aggrieved by any
decision of the Department with respect thereto may have the determination
of the Department judicially reviewed, as herein provided.
The Department may revoke, cancel, or suspend the license of any
distributor for a violation of the Tobacco Product Manufacturers' Escrow
Enforcement Act as provided in Section 30 of that Act. The Department may revoke, cancel, or suspend the license of any secondary distributor for a violation of subsection (e) of Section 15 of the Tobacco Product Manufacturers' Escrow Enforcement Act.
If the retailer has a training program that facilitates compliance with minimum-age tobacco laws, the Department shall suspend for 3 days the license of that retailer for a fourth or subsequent violation of the Prevention of Tobacco Use by Persons under 21 Years of Age and Sale and Distribution of Tobacco Products Act, as provided in subsection (a) of Section 2 of that Act. For the purposes of this Section, any violation of subsection (a) of Section 2 of the Prevention of Tobacco Use by Persons under 21 Years of Age and Sale and Distribution of Tobacco Products Act occurring at the retailer's licensed location during a 24-month period shall be counted as a violation against the retailer. If the retailer does not have a training program that facilitates compliance with minimum-age tobacco laws, the Department shall suspend for 3 days the license of that retailer for a second violation of the Prevention of Tobacco Use by Persons under 21 Years of Age and Sale and Distribution of Tobacco Products Act, as provided in subsection (a-5) of Section 2 of that Act. If the retailer does not have a training program that facilitates compliance with minimum-age tobacco laws, the Department shall suspend for 7 days the license of that retailer for a third violation of the Prevention of Tobacco Use by Persons under 21 Years of Age and Sale and Distribution of Tobacco Products Act, as provided in subsection (a-5) of Section 2 of that Act. If the retailer does not have a training program that facilitates compliance with minimum-age tobacco laws, the Department shall suspend for 30 days the license of a retailer for a fourth or subsequent violation of the Prevention of Tobacco Use by Persons under 21 Years of Age and Sale and Distribution of Tobacco Products Act, as provided in subsection (a-5) of Section 2 of that Act. A training program that facilitates compliance with minimum-age tobacco laws must include at least the following elements: (i) it must explain that only individuals displaying valid identification demonstrating that they are 21 years of age or older shall be eligible to purchase cigarettes or tobacco products and (ii) it must explain where a clerk can check identification for a date of birth. The training may be conducted electronically. Each retailer that has a training program shall require each employee who completes the training program to sign a form attesting that the employee has received and completed tobacco training. The form shall be kept in the employee's file and may be used to provide proof of training. Any distributor, secondary distributor, or retailer aggrieved by any decision of the Department under this
Section
may, within 20 days after notice of the decision, protest and request a
hearing. Upon receiving a request for a hearing, the Department shall give
notice in writing to the distributor, secondary distributor, or retailer requesting the hearing that contains a
statement of the charges preferred against the distributor, secondary distributor, or retailer and that states the
time and place fixed for the hearing. The Department shall hold the hearing in
conformity with the provisions of this Act and then issue its final
administrative decision in the matter to the distributor, secondary distributor, or retailer. In the absence of a
protest and request for a hearing within 20 days, the Department's decision
shall become final without any further determination being made or notice
given.
No license so revoked, as aforesaid, shall be reissued to any such
distributor, secondary distributor, or retailer within a period of 6 months after the date of the final
determination of such revocation. No such license shall be reissued at all
so long as the person who would receive the license is ineligible to
receive a distributor's license under this Act for any one or more of the
reasons provided for in Section 4 of this Act, is ineligible to receive a secondary distributor's license under this Act for any one or more of the reasons provided for in Section 4c of this Act, or is determined to be ineligible for a retailer's license under the Act for any one or more of the reasons provided for in Section 4g of this Act.
The Department upon complaint filed in the circuit
court may by injunction
restrain any person who fails, or refuses, to comply with any of the
provisions of this Act from acting as a distributor, secondary distributor, or retailer of cigarettes in this
State.
(Source: P.A. 101-2, eff. 7-1-19.)
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(35 ILCS 130/8) (from Ch. 120, par. 453.8)
Sec. 8.
The Department may make, promulgate and enforce such
reasonable rules and regulations relating to the administration and
enforcement of this Act as may be deemed expedient.
Whenever notice is required by this Act, such notice may be given by
United States certified or registered mail, addressed to the person concerned at his
last known address, and proof of such mailing shall be sufficient for the
purposes of this Act. Notice of any hearing provided for by this Act and held before the Department shall
be so given not less than 7 days prior to the day fixed for the hearing.
Hearings provided for in this Act, other than hearings before the Illinois Independent Tax Tribunal, shall be held:
(1) In Cook County, if the taxpayer's or licensee's |
| principal place of business is in that county;
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(2) At the Department's office nearest the taxpayer's
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| or licensee's principal place of business, if the taxpayer's or licensee's principal place of business is in Illinois but outside Cook County;
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(3) In Sangamon County, if the taxpayer's or
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| licensee's principal place of business is outside Illinois.
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The Circuit Court of the County wherein the hearing is held has
power to review all final administrative decisions of the Department in
administering this Act. The provisions of the Administrative Review Law,
and all amendments and
modifications thereof, and the rules adopted pursuant thereto, shall
apply to and govern all proceedings for the judicial review of final
administrative decisions of the Department under this Act. The term
"administrative decision" is defined as in Section 3-101 of the Code of Civil Procedure.
Service upon the Director of Revenue or Assistant Director of Revenue
of summons issued in any action to review a final
administrative decision shall be service upon the Department. The
Department shall certify the record of its proceedings if the distributor, secondary distributor, retailer, or manufacturer with authority to maintain manufacturer representatives pays to it the sum of 75¢ per page of testimony taken before the Department
and 25¢ per page of all other matters contained in such record, except that
these charges may be waived where the Department is satisfied that the aggrieved
party is a poor person who cannot afford to pay such charges.
Before the delivery of such record to the person applying for it, payment
of these charges must be made, and if
the record is not paid for within 30 days after notice that such record
is available, the
complaint may be dismissed by the court upon motion of the Department.
No stay order shall be entered by the Circuit Court unless the
distributor, secondary distributor, retailer, or manufacturer with authority to maintain manufacturer representatives files with the court a bond in an amount fixed and approved by
the court, to indemnify the State against all loss and injury which may be
sustained by it on account of the review proceedings and to secure all
costs which may be occasioned by such proceedings.
Whenever any proceeding provided by this Act is begun before the
Department, either by the Department or by a person subject to this Act,
and such person thereafter dies or becomes a person under legal disability
before such
proceeding is concluded, the legal representative of the deceased person
or of the person under legal disability shall notify
the Department of such death or legal disability.
Such legal representative, as such, shall then be substituted
by the Department for such person. If the legal representative fails to
notify the Department of his or her appointment as such legal representative, the
Department may, upon its own motion, substitute such legal representative
in the proceeding pending before the Department for the person who died or
became a person under legal disability.
Hearings to contest an administrative decision under this Act conducted as a result of a protest filed with the Illinois Independent Tax Tribunal on or after July 1, 2013 shall be conducted pursuant to the provisions of the Illinois Independent Tax Tribunal Act of 2012.
(Source: P.A. 97-587, eff. 8-26-11; 97-1129, eff. 8-28-12; 98-1055, eff. 1-1-16.)
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(35 ILCS 130/9a) (from Ch. 120, par. 453.9a)
Sec. 9a. Examination and correction of returns.
(1) As soon as practicable after any return is filed, the
Department shall examine such return and shall correct such return
according to its best judgment and information, which return so corrected
by the Department shall be prima facie correct and shall be prima facie
evidence of the correctness of the amount of tax due, as shown therein.
Instead of requiring the distributor to file an amended return, the
Department may simply notify the distributor of the correction or
corrections it has made. Proof of such correction by the Department may be
made at any hearing before the Department or in any legal proceeding by a
reproduced copy of the Department's record relating thereto in the name of
the Department under the certificate of the Director of Revenue. Such
reproduced copy shall, without further proof, be admitted into evidence
before the Department or in any legal proceeding and shall be prima facie
proof of the correctness of the amount of tax due, as shown therein. If the
Department finds that any amount of tax is due from the distributor, the
Department shall issue the distributor a notice of tax liability for the
amount of tax claimed by the Department to be due, together with a penalty
in an amount determined in accordance with Sections 3-3, 3-5 and 3-6 of the
Uniform Penalty and Interest Act. If, in administering the provisions of
this Act, comparison of a return or returns of a distributor with the
books, records and inventories of such distributor discloses a deficiency
which cannot be allocated by the Department to a particular month or
months, the Department shall issue the distributor a notice of tax
liability for the amount of tax claimed by the Department to be due for a
given period, but without any obligation upon the Department to allocate
such deficiency to any particular month or months, together with a penalty
in an amount determined in accordance with Sections 3-3, 3-5 and 3-6 of the
Uniform Penalty and Interest Act, under which circumstances the aforesaid
notice of tax liability shall be prima facie correct and shall be prima
facie evidence of the correctness of the amount of tax due, as shown
therein; and proof of such correctness may be made in accordance with, and
the admissibility of a reproduced copy of such notice of tax liability
shall be governed by, all the provisions of this Act applicable to
corrected returns. If any distributor filing any return dies or becomes a
person under legal disability at any time before the Department issues its
notice of tax liability, such notice shall be issued to the administrator,
executor or other legal representative, as such, of such distributor.
(2) Except as otherwise provided in this Section, if, within 60 days after such notice of tax liability, the
distributor or his or her legal representative files a protest to such
notice of tax liability and requests a hearing thereon, the Department shall
give notice to such distributor or legal representative of the time and place
fixed for such hearing, and shall hold a hearing in conformity with the
provisions of this Act, and pursuant thereto shall issue a final assessment
to such distributor or legal representative for the amount found to be due
as a result of such hearing. On or after July 1, 2013, protests concerning matters that are subject to the jurisdiction of the Illinois Independent Tax Tribunal shall be filed in accordance with the Illinois Independent Tax Tribunal Act of 2012, and hearings concerning those matters shall be held before the Tribunal in accordance with that Act. With respect to protests filed with the Department prior to July 1, 2013 that would otherwise be subject to the jurisdiction of the Illinois Independent Tax Tribunal, the taxpayer may elect to be subject to the provisions of the Illinois Independent Tax Tribunal Act of 2012 at any time on or after July 1, 2013, but not later than 30 days after the date on which the protest was filed. If made, the election shall be irrevocable. If a protest to the notice of tax liability
and a request for a hearing thereon is not filed within the time allowed by law, such notice of tax liability shall become final
without the necessity of a final assessment being issued and shall be
deemed to be a final assessment.
(3) In case of failure to pay the tax, or any portion thereof, or any
penalty provided for in this Act, when due, the Department may bring suit
to recover the amount of such tax, or portion thereof, or penalty; or, if
the taxpayer dies or becomes incompetent, by filing claim therefor against
his estate; provided that no such action with respect to any tax, or portion
thereof, or penalty, shall be instituted more than 2 years after the cause
of action accrues, except with the consent of the person from whom such tax
or penalty is due.
After the expiration of the period within which the person assessed may
file an action for judicial review under the Administrative Review Law
without such an action being filed, a certified copy of the final assessment
or revised final assessment of the Department may be filed with the Circuit
Court of the county in which the taxpayer has his or her principal place of
business, or of Sangamon County in those cases in which the taxpayer does
not have his principal place of business in this State. The certified copy
of the final assessment or revised final assessment shall be accompanied by
a certification which recites facts that are sufficient to show that the
Department complied with the jurisdictional requirements of the Law in
arriving at its final assessment or its revised final assessment and that
the taxpayer had his or her opportunity for an administrative hearing and for
judicial review, whether he availed himself or herself of either or both of
these opportunities or not. If the court is satisfied that the Department
complied with the jurisdictional requirements of the Law in arriving at its
final assessment or its revised final assessment and that the taxpayer had
his or her opportunity for an administrative hearing and for judicial review,
whether he or she availed himself or herself of either or both of
these opportunities or not, the court shall enter judgment in favor of the
Department and against the taxpayer for the amount shown to be due by the
final assessment or the revised final assessment, and such judgment shall
be filed of record in the court. Such judgment shall bear the rate of
interest set in the Uniform Penalty and Interest Act, but otherwise shall
have the same effect as other judgments. The judgment may be enforced, and
all laws applicable to sales for the enforcement of a judgment shall be
applicable to sales made under such judgments. The Department shall file
the certified copy of its assessment, as herein provided, with the Circuit
Court within 2 years after such assessment becomes final except when the
taxpayer consents in writing to an extension of such filing period.
If, when the cause of action for a proceeding in court accrues against a
person, he or she is out of the State, the action may be commenced within the
times herein limited, after his or her coming into or return to the State;
and if, after the cause of action accrues, he or she departs from and
remains out of the State, the time of his or her absence is no part of the
time limited for the commencement of the action; but the foregoing
provisions concerning absence from the State shall not apply to any case in
which, at the time the cause of action accrues, the party against whom the
cause of action accrues is not a resident of this State. The time within
which a court action is to be commenced by the Department hereunder shall
not run while the taxpayer is a debtor in any proceeding under the Federal
Bankruptcy Act nor thereafter until 90 days after the Department is
notified by such debtor of being discharged in bankruptcy.
No claim shall be filed against the estate of any deceased person or
a person under legal disability for any tax or penalty or part of either
except in the manner prescribed and within the time limited by the Probate
Act of 1975, as amended.
The remedies provided for herein shall not be exclusive, but all
remedies available to creditors for the collection of debts shall be
available for the collection of any tax or penalty due hereunder.
The collection of tax or penalty by any means provided for herein shall
not be a bar to any prosecution under this Act.
The certificate of the Director of the Department to the effect that a
tax or amount required to be paid by this Act has not been paid, that a
return has not been filed, or that information has not been supplied
pursuant to the provisions of this Act, shall be prima facie evidence
thereof.
Notwithstanding any other provisions of this Act, any amount paid as tax or in respect of tax paid under this Act shall be deemed assessed upon the date of receipt of payment. All of the provisions of Sections 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i and
5j of the Retailers' Occupation Tax Act, which are not inconsistent
with this Act, and Section 3-7 of the Uniform Penalty and Interest Act
shall apply, as far as practicable, to the subject matter of
this Act to the same extent as if such provisions were included herein.
References in such incorporated Sections of the "Retailers' Occupation Tax
Act" to retailers, to sellers or to persons engaged in the business of
selling tangible personal property shall mean distributors when used in
this Act.
(Source: P.A. 103-9, eff. 1-1-24.)
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(35 ILCS 130/10b) (from Ch. 120, par. 453.10b)
Sec. 10b. All information received by the Department from returns or reports
filed under this Act, or from any investigation conducted under this
Act, shall be confidential, except for official purposes, and any person
who divulges any such information in any manner, except in accordance
with a proper judicial order or as otherwise provided by law, shall be
guilty of a Class A misdemeanor.
Nothing in this Act prevents the Director of Revenue from publishing
or making available to the public the names and addresses of persons
filing returns or reports under this Act, or reasonable statistics concerning the
operation of the tax by grouping the contents of returns or reports so that the
information in any individual return or report is not disclosed.
Nothing in this Act prevents the Director of Revenue from divulging
to the United States Government or the government of any other state, or
any officer or agency thereof, for exclusively official purposes,
information received by the Department in administering this Act,
provided that such other governmental agency agrees to divulge requested
tax information to the Department.
The furnishing upon request of the Auditor General, or his authorized
agents, for official use, of returns or reports filed and information related
thereto under this Act is deemed to be an official purpose within the
meaning of this Section.
The furnishing of financial information to a home rule unit with a
population in excess of 2,000,000 that has
imposed a tax similar to that imposed by this Act under its home rule powers,
upon request of the Chief Executive of the home rule unit, is an official
purpose within the meaning of this Section, provided the home rule unit agrees
in writing to the requirements of this Section. Information so provided is
subject to all confidentiality provisions of this Section. The written
agreement shall provide for reciprocity, limitations on access, disclosure,
and procedures for requesting information.
The Director may make available to any State agency, including the
Illinois Supreme Court, which licenses persons to engage in any occupation,
information that a person licensed by such agency has failed to file
returns under this Act or pay the tax, penalty and interest shown therein,
or has failed to pay any final assessment of tax, penalty or interest due
under this Act or has failed to file reports under this Act. An assessment is final when all proceedings in court for
review of such assessment have terminated or the time for the taking
thereof has expired without such proceedings being instituted.
The Director shall make available for public
inspection in the Department's principal office and for publication, at cost,
administrative decisions issued on or after January
1, 1995. These decisions are to be made available in a manner so that the
following
taxpayer or licensee information is not disclosed:
(1) The names, addresses, and identification numbers |
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(2) At the sole discretion of the Director, trade
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| secrets or other confidential information identified as such by the taxpayer or licensee, no later than 30 days after receipt of an administrative decision, by such means as the Department shall provide by rule.
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The Director shall determine the
appropriate extent of the
deletions allowed in paragraph (2). In the event the taxpayer or licensee does not submit
deletions,
the Director shall make only the deletions specified in paragraph (1).
The Director shall make available for public inspection and publication an
administrative decision within 180 days after the issuance of the
administrative
decision. The term "administrative decision" has the same meaning as defined in
Section 3-101 of Article III of the Code of Civil Procedure. Costs collected
under this Section shall be paid into the Tax Compliance and Administration
Fund.
Nothing contained in this Act shall prevent the Director from divulging
information to any person pursuant to a request or authorization made by the
taxpayer or licensee or by an authorized representative of the taxpayer or licensee.
(Source: P.A. 96-1027, eff. 7-12-10.)
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