State of Illinois
90th General Assembly
Legislation

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90_SB1508

      235 ILCS 5/8-1            from Ch. 43, par. 158
          Amends the Liquor Control Act  of  1934.   Provides  that
      alcoholic  cider  shall  be  taxed at the rate of 7 cents per
      gallon (now taxed as  wine  at  the  rate  of  23  cents  per
      gallon).  Effective July 1, 1998.
                                                    LRB9011543LDdvA
                                              LRB9011543LDdvA
 1        AN  ACT  to  amend  the  Liquor  Control  Act  of 1934 by
 2    changing Section 8-1.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  5.  The Liquor Control Act of 1934 is amended by
 6    changing Section 8-1 as follows:
 7        (235 ILCS 5/8-1) (from Ch. 43, par. 158)
 8        Sec. 8-1.   A  tax  is  imposed  upon  the  privilege  of
 9    engaging  in  business  as  a manufacturer or as an importing
10    distributor of alcoholic liquor other than beer at  the  rate
11    of  7¢  per  gallon  for  cider containing not less than 0.5%
12    alcohol by volume nor more than 7% alcohol by volume, 23¢ per
13    gallon for wine containing 14% or less of alcohol  by  volume
14    other  than  cider containing less than 7% alcohol by volume,
15    60¢ per gallon for wine containing more than 14%  of  alcohol
16    by  volume,  and  $2.00  per  gallon  on  alcohol and spirits
17    manufactured and sold or used by  such  manufacturer,  or  as
18    agent for any other person, or sold or used by such importing
19    distributor,  or  as  agent  for  any  other person. A tax is
20    imposed upon the privilege  of  engaging  in  business  as  a
21    manufacturer  of  beer or as an importing distributor of beer
22    at the rate of 7¢ per gallon on  all  beer  manufactured  and
23    sold  or used by such manufacturer, or as agent for any other
24    person, or sold or used by such importing distributor, or  as
25    agent  for any other person. Any brewer manufacturing beer in
26    this State shall be entitled to and given a credit or  refund
27    of  75%  of  the tax imposed on each gallon of beer up to 4.9
28    million gallons per year in any given calendar year  for  tax
29    paid  or  payable  on  beer produced and sold in the State of
30    Illinois.
31        For the  purpose  of  this  Section,  "cider"  means  any
                            -2-               LRB9011543LDdvA
 1    alcoholic  beverage  obtained  by the alcohol fermentation of
 2    the juice of apples or pears including, but not  limited  to,
 3    flavored, sparkling, or carbonated cider.
 4        The  credit  or refund created by this Act shall apply to
 5    all beer taxes in the calendar years 1982 through 1986.
 6        A tax at the rate of 1¢ per gallon on beer  and  48¢  per
 7    gallon  on  alcohol  and  spirits  is  also  imposed upon the
 8    privilege of engaging in business  as  a  retailer  or  as  a
 9    distributor  who  is  not  also an importing distributor with
10    respect to all beer and all  alcohol  and  spirits  owned  or
11    possessed   by   such   retailer  or  distributor  when  this
12    amendatory Act of 1969 becomes effective, and with respect to
13    which the additional tax imposed by this amendatory Act  upon
14    manufacturers  and  importing  distributors  does  not apply.
15    Retailers and distributors who are subject to the  additional
16    tax  imposed  by  this  paragraph  of  this  Section shall be
17    required to inventory such alcoholic liquor and to  pay  this
18    additional tax in a manner prescribed by the Department.
19        The  provisions  of  this  Section  shall be construed to
20    apply to any importing distributor engaging  in  business  in
21    this State, whether licensed or not.
22        However,  such  tax is not imposed upon any such business
23    as to any alcoholic liquor shipped  outside  Illinois  by  an
24    Illinois  licensed manufacturer or importing distributor, nor
25    as to any  alcoholic  liquor  delivered  in  Illinois  by  an
26    Illinois  licensed manufacturer or importing distributor to a
27    purchaser for immediate transportation by  the  purchaser  to
28    another  state  into  which  the purchaser has a legal right,
29    under the laws  of  such  state,  to  import  such  alcoholic
30    liquor,  nor  as to any alcoholic liquor other than beer sold
31    by  one   Illinois   licensed   manufacturer   or   importing
32    distributor  to  another  Illinois  licensed  manufacturer or
33    importing distributor to the extent  to  which  the  sale  of
34    alcoholic  liquor  other  than  beer by one Illinois licensed
                            -3-               LRB9011543LDdvA
 1    manufacturer or importing  distributor  to  another  Illinois
 2    licensed  manufacturer or importing distributor is authorized
 3    by the licensing provisions of this  Act,  nor  to  alcoholic
 4    liquor  whether  manufactured  in or imported into this State
 5    when sold to a "non-beverage user" licensed by the State  for
 6    use  in the manufacture of any of the following when they are
 7    unfit for beverage purposes:
 8        Patent   and   proprietary   medicines   and   medicinal,
 9    antiseptic, culinary and toilet preparations;
10        Flavoring extracts and syrups and food products;
11        Scientific, industrial and chemical  products,  excepting
12    denatured alcohol;
13        Or  for  scientific, chemical, experimental or mechanical
14    purposes;
15        Nor is the tax imposed upon the privilege of engaging  in
16    any  business  in  interstate  commerce  or  otherwise, which
17    business may not, under the Constitution and Statutes of  the
18    United States, be made the subject of taxation by this State.
19        The  tax herein imposed shall be in addition to all other
20    occupation  or  privilege  taxes  imposed  by  the  State  of
21    Illinois or political subdivision thereof.
22        If any alcoholic liquor manufactured in or imported  into
23    this  State  is  sold to a licensed manufacturer or importing
24    distributor  by  a   licensed   manufacturer   or   importing
25    distributor  to  be  used  solely  as  an  ingredient  in the
26    manufacture of any beverage for human  consumption,  the  tax
27    imposed   upon  such  purchasing  manufacturer  or  importing
28    distributor shall be reduced by the amount of the taxes which
29    have been paid  by  the  selling  manufacturer  or  importing
30    distributor  under  this  Act  as to such alcoholic liquor so
31    used to the Department of Revenue.
32        If any person  received  any  alcoholic  liquors  from  a
33    manufacturer  or importing distributor, with respect to which
34    alcoholic liquors no tax is imposed under this  Article,  and
                            -4-               LRB9011543LDdvA
 1    such alcoholic liquor shall thereafter be disposed of in such
 2    manner  or  under such circumstances as may cause the same to
 3    become the base for the tax imposed  by  this  Article,  such
 4    person  shall make the same reports and returns, pay the same
 5    taxes and be subject to all other provisions of this  Article
 6    relating to manufacturers and importing distributors.
 7        Nothing in this Article shall be construed to require the
 8    payment  to  the  Department  of  the  taxes  imposed by this
 9    Article more than  once  with  respect  to  any  quantity  of
10    alcoholic liquor sold or used within this State.
11        No  tax  is  imposed  by  this  Act on sales of alcoholic
12    liquor by Illinois licensed  foreign  importers  to  Illinois
13    licensed importing distributors.
14    (Source: P.A. 86-654.)
15        Section  99.  Effective date.  This Act takes effect July
16    1, 1998.

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