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92_HB0539enr HB0539 Enrolled LRB9203973SMdv 1 AN ACT concerning taxation. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Cigarette Tax Act is amended by changing 5 Sections 2 and 3 as follows: 6 (35 ILCS 130/2) (from Ch. 120, par. 453.2) 7 Sec. 2. Tax imposed; rate; collection, payment, and 8 distribution; discount. 9 (a) A tax is imposed upon any person engaged in business 10 as a retailer of cigarettes in this State at the rate of 5 11 1/2 mills per cigarette sold, or otherwise disposed of in the 12 course of such business in this State. In addition to any 13 other tax imposed by this Act, a tax is imposed upon any 14 person engaged in business as a retailer of cigarettes in 15 this State at a rate of 1/2 mill per cigarette sold or 16 otherwise disposed of in the course of such business in this 17 State on and after January 1, 1947, and shall be paid into 18 the Metropolitan Fair and Exposition Authority Reconstruction 19 Fund. On and after December 1, 1985, in addition to any other 20 tax imposed by this Act, a tax is imposed upon any person 21 engaged in business as a retailer of cigarettes in this State 22 at a rate of 4 mills per cigarette sold or otherwise disposed 23 of in the course of such business in this State. Of the 24 additional tax imposed by this amendatory Act of 1985, 25 $9,000,000 of the moneys received by the Department of 26 Revenue pursuant to this Act shall be paid each month into 27 the Common School Fund. On and after the effective date of 28 this amendatory Act of 1989, in addition to any other tax 29 imposed by this Act, a tax is imposed upon any person engaged 30 in business as a retailer of cigarettes at the rate of 5 31 mills per cigarette sold or otherwise disposed of in the HB0539 Enrolled -2- LRB9203973SMdv 1 course of such business in this State. On and after the 2 effective date of this amendatory Act of 1993, in addition to 3 any other tax imposed by this Act, a tax is imposed upon any 4 person engaged in business as a retailer of cigarettes at the 5 rate of 7 mills per cigarette sold or otherwise disposed of 6 in the course of such business in this State. On and after 7 December 15, 1997, in addition to any other tax imposed by 8 this Act, a tax is imposed upon any person engaged in 9 business as a retailer of cigarettes at the rate of 7 mills 10 per cigarette sold or otherwise disposed of in the course of 11 such business of this State. All of the moneys received by 12 the Department of Revenue pursuant to this Act and the 13 Cigarette Use Tax Act from the additional taxes imposed by 14 this amendatory Act of 1997, shall be paid each month into 15 the Common School Fund. On and after July 1, 2002, in 16 addition to any other tax imposed by this Act, a tax is 17 imposed upon any person engaged in business as a retailer of 18 cigarettes at the rate of 20.0 mills per cigarette sold or 19 otherwise disposed of in the course of such business in this 20 State. The payment of such taxes shall be evidenced by a 21 stamp affixed to each original package of cigarettes, or an 22 authorized substitute for such stamp imprinted on each 23 original package of such cigarettes underneath the sealed 24 transparent outside wrapper of such original package, as 25 hereinafter provided. However, such taxes are not imposed 26 upon any activity in such business in interstate commerce or 27 otherwise, which activity may not under the Constitution and 28 statutes of the United States be made the subject of taxation 29 by this State. 30 Beginning on the effective date of this amendatory Act of 31 the 92nd General Assembly1998, all of the moneys received by 32 the Department of Revenue pursuant to this Act and the 33 Cigarette Use Tax Act, other than the moneys that are 34 dedicated to the Metropolitan Fair and Exposition Authority HB0539 Enrolled -3- LRB9203973SMdv 1 Reconstruction Fund and the Common School Fund, shall be 2 distributed each month as follows: first, there shall be paid 3 into the General Revenue Fund an amount which, when added to 4 the amount paid into the Common School Fund for that month, 5 equals $33,300,000; then, from the moneys remaining, if any 6 amounts required to be paid into the General Revenue Fund in 7 previous months remain unpaid, those amounts shall be paid 8 into the General Revenue Fund; then, beginning on April 1, 9 2003, from the moneys remaining, $5,000,000 per month shall 10 be paid into the School Infrastructure Fund; then, if any 11 amounts required to be paid into the School Infrastructure 12 Fund in previous months remain unpaid, those amounts shall be 13 paid into the School Infrastructure Fund; then the moneys 14 remaining, if any, shall be paid into the Long-Term Care 15 Provider Fund. To the extent that more than $25,000,000 has 16 been paid into the General Revenue Fund and Common School 17 Fund per month for the period of July 1, 1993 through the 18 effective date of this amendatory Act of 1994 from combined 19 receipts of the Cigarette Tax Act and the Cigarette Use Tax 20 Act, notwithstanding the distribution provided in this 21 Section, the Department of Revenue is hereby directed to 22 adjust the distribution provided in this Section to increase 23 the next monthly payments to the Long Term Care Provider Fund 24 by the amount paid to the General Revenue Fund and Common 25 School Fund in excess of $25,000,000 per month and to 26 decrease the next monthly payments to the General Revenue 27 Fund and Common School Fund by that same excess amount. 28 When any tax imposed herein terminates or has terminated, 29 distributors who have bought stamps while such tax was in 30 effect and who therefore paid such tax, but who can show, to 31 the Department's satisfaction, that they sold the cigarettes 32 to which they affixed such stamps after such tax had 33 terminated and did not recover the tax or its equivalent from 34 purchasers, shall be allowed by the Department to take credit HB0539 Enrolled -4- LRB9203973SMdv 1 for such absorbed tax against subsequent tax stamp purchases 2 from the Department by such distributor. 3 The impact of the tax levied by this Act is imposed upon 4 the retailer and shall be prepaid or pre-collected by the 5 distributor for the purpose of convenience and facility only, 6 and the amount of the tax shall be added to the price of the 7 cigarettes sold by such distributor. Collection of the tax 8 shall be evidenced by a stamp or stamps affixed to each 9 original package of cigarettes, as hereinafter provided. 10 Each distributor shall collect the tax from the retailer 11 at or before the time of the sale, shall affix the stamps as 12 hereinafter required, and shall remit the tax collected from 13 retailers to the Department, as hereinafter provided. Any 14 distributor who fails to properly collect and pay the tax 15 imposed by this Act shall be liable for the tax. Any 16 distributor having cigarettes to which stamps have been 17 affixed in his possession for sale on the effective date of 18 this amendatory Act of 1989 shall not be required to pay the 19 additional tax imposed by this amendatory Act of 1989 on such 20 stamped cigarettes. Any distributor having cigarettes to 21 which stamps have been affixed in his or her possession for 22 sale at 12:01 a.m. on the effective date of this amendatory 23 Act of 1993, is required to pay the additional tax imposed by 24 this amendatory Act of 1993 on such stamped cigarettes. This 25 payment, less the discount provided in subsection (b), shall 26 be due when the distributor first makes a purchase of 27 cigarette tax stamps after the effective date of this 28 amendatory Act of 1993, or on the first due date of a return 29 under this Act after the effective date of this amendatory 30 Act of 1993, whichever occurs first. Any distributor having 31 cigarettes to which stamps have been affixed in his 32 possession for sale on December 15, 1997 shall not be 33 required to pay the additional tax imposed by this amendatory 34 Act of 1997 on such stamped cigarettes. HB0539 Enrolled -5- LRB9203973SMdv 1 Any distributor having cigarettes to which stamps have 2 been affixed in his or her possession for sale on July 1, 3 2002 shall not be required to pay the additional tax imposed 4 by this amendatory Act of the 92nd General Assembly on those 5 stamped cigarettes. 6 The amount of the Cigarette Tax imposed by this Act shall 7 be separately stated, apart from the price of the goods, by 8 both distributors and retailers, in all advertisements, bills 9 and sales invoices. 10 (b) The distributor shall be required to collect the 11 taxes provided under paragraph (a) hereof, and, to cover the 12 costs of such collection, shall be allowed a discount during 13 any year commencing July 1st and ending the following June 14 30th in accordance with the schedule set out hereinbelow, 15 which discount shall be allowed at the time of purchase of 16 the stamps when purchase is required by this Act, or at the 17 time when the tax is remitted to the Department without the 18 purchase of stamps from the Department when that method of 19 paying the tax is required or authorized by this Act. Prior 20 to December 1, 1985, a discount equal to 1 2/3% of the amount 21 of the tax up to and including the first $700,000 paid 22 hereunder by such distributor to the Department during any 23 such year; 1 1/3% of the next $700,000 of tax or any part 24 thereof, paid hereunder by such distributor to the Department 25 during any such year; 1% of the next $700,000 of tax, or any 26 part thereof, paid hereunder by such distributor to the 27 Department during any such year, and 2/3 of 1% of the amount 28 of any additional tax paid hereunder by such distributor to 29 the Department during any such year shall apply. On and after 30 December 1, 1985, a discount equal to 1.75% of the amount of 31 the tax payable under this Act up to and including the first 32 $3,000,000 paid hereunder by such distributor to the 33 Department during any such year and 1.5% of the amount of any 34 additional tax paid hereunder by such distributor to the HB0539 Enrolled -6- LRB9203973SMdv 1 Department during any such year shall apply. 2 Two or more distributors that use a common means of 3 affixing revenue tax stamps or that are owned or controlled 4 by the same interests shall be treated as a single 5 distributor for the purpose of computing the discount. 6 (c) The taxes herein imposed are in addition to all 7 other occupation or privilege taxes imposed by the State of 8 Illinois, or by any political subdivision thereof, or by any 9 municipal corporation. 10 (Source: P.A. 90-548, eff. 12-4-97; 90-587, eff. 7-1-98.) 11 (35 ILCS 130/3) (from Ch. 120, par. 453.3) 12 Sec. 3. Affixing tax stamp; remitting tax to the 13 Department. Payment of the taxes imposed by Section 2 of 14 this Act shall (except as hereinafter provided) be evidenced 15 by revenue tax stamps affixed to each original package of 16 cigarettes. Each distributor of cigarettes, before delivering 17 or causing to be delivered any original package of cigarettes 18 in this State to a purchaser, shall firmly affix a proper 19 stamp or stamps to each such package, or (in case of 20 manufacturers of cigarettes in original packages which are 21 contained inside a sealed transparent wrapper) shall imprint 22 the required language on the original package of cigarettes 23 beneath such outside wrapper, as hereinafter provided. 24 No stamp or imprint may be affixed to, or made upon, any 25 package of cigarettes unless that package complies with all 26 requirements of the federal Cigarette Labeling and 27 Advertising Act, 15 U.S.C. 1331 and following, for the 28 placement of labels, warnings, or any other information upon 29 a package of cigarettes that is sold within the United 30 States. Under the authority of Section 6, the Department 31 shall revoke the license of any distributor that is 32 determined to have violated this paragraph. A person may not 33 affix a stamp on a package of cigarettes, cigarette papers, HB0539 Enrolled -7- LRB9203973SMdv 1 wrappers, or tubes if that individual package has been marked 2 for export outside the United States with a label or notice 3 in compliance with Section 290.185 of Title 27 of the Code of 4 Federal Regulations. It is not a defense to a proceeding for 5 violation of this paragraph that the label or notice has been 6 removed, mutilated, obliterated, or altered in any manner. 7 The Department, or any person authorized by the 8 Department, shall sell such stamps only to persons holding 9 valid licenses as distributors under this Act. The Department 10 may refuse to sell stamps to any person who does not comply 11 with the provisions of this Act. Beginning on the effective 12 date of this amendatory Act of the 92nd General Assembly and 13 through June 30, 2002, persons holding valid licenses as 14 distributors may purchase cigarette tax stamps up to an 15 amount equal to 115% of the distributor's average monthly 16 cigarette tax stamp purchases over the 12 calendar months 17 prior to the effective date of this amendatory Act of the 18 92nd General Assembly. 19 Prior to December 1, 1985, the Department shall allow a 20 distributor 21 days in which to make final payment of the 21 amount to be paid for such stamps, by allowing the 22 distributor to make payment for the stamps at the time of 23 purchasing them with a draft which shall be in such form as 24 the Department prescribes, and which shall be payable within 25 21 days thereafter: Provided that such distributor has filed 26 with the Department, and has received the Department's 27 approval of, a bond, which is in addition to the bond 28 required under Section 4 of this Act, payable to the 29 Department in an amount equal to 80% of such distributor's 30 average monthly tax liability to the Department under this 31 Act during the preceding calendar year or $500,000, whichever 32 is less. The Bond shall be joint and several and shall be in 33 the form of a surety company bond in such form as the 34 Department prescribes, or it may be in the form of a bank HB0539 Enrolled -8- LRB9203973SMdv 1 certificate of deposit or bank letter of credit. The bond 2 shall be conditioned upon the distributor's payment of amount 3 of any 21-day draft which the Department accepts from that 4 distributor for the delivery of stamps to that distributor 5 under this Act. The distributor's failure to pay any such 6 draft, when due, shall also make such distributor 7 automatically liable to the Department for a penalty equal to 8 25% of the amount of such draft. 9 On and after December 1, 1985, the Department shall allow 10 a distributor 30 days in which to make final payment of the 11 amount to be paid for such stamps, by allowing the 12 distributor to make payment for the stamps at the time of 13 purchasing them with a draft which shall be in such form as 14 the Department prescribes, and which shall be payable within 15 30 days thereafter, and beginning on January 1, 2003 and 16 thereafter, the draft shall be payable by means of electronic 17 funds transfer: Provided that such distributor has filed 18 with the Department, and has received the Department's 19 approval of, a bond, which is in addition to the bond 20 required under Section 4 of this Act, payable to the 21 Department in an amount equal to 150% of such distributor's 22 average monthly tax liability to the Department under this 23 Act during the preceding calendar year or $750,000, whichever 24 is less, except that as to bonds filed on or after January 1, 25 1987, such additional bond shall be in an amount equal to 26 100% of such distributor's average monthly tax liability 27 under this Act during the preceding calendar year or 28 $750,000, whichever is less. The bond shall be joint and 29 several and shall be in the form of a surety company bond in 30 such form as the Department prescribes, or it may be in the 31 form of a bank certificate of deposit or bank letter of 32 credit. The bond shall be conditioned upon the distributor's 33 payment of the amount of any 30-day draft which the 34 Department accepts from that distributor for the delivery of HB0539 Enrolled -9- LRB9203973SMdv 1 stamps to that distributor under this Act. The distributor's 2 failure to pay any such draft, when due, shall also make such 3 distributor automatically liable to the Department for a 4 penalty equal to 25% of the amount of such draft. 5 Every prior continuous compliance taxpayer shall be 6 exempt from all requirements under this Section concerning 7 the furnishing of such bond, as defined in this Section, as a 8 condition precedent to his being authorized to engage in the 9 business licensed under this Act. This exemption shall 10 continue for each such taxpayer until such time as he may be 11 determined by the Department to be delinquent in the filing 12 of any returns, or is determined by the Department (either 13 through the Department's issuance of a final assessment which 14 has become final under the Act, or by the taxpayer's filing 15 of a return which admits tax to be due that is not paid) to 16 be delinquent or deficient in the paying of any tax under 17 this Act, at which time that taxpayer shall become subject to 18 the bond requirements of this Section and, as a condition of 19 being allowed to continue to engage in the business licensed 20 under this Act, shall be required to furnish bond to the 21 Department in such form as provided in this Section. Such 22 taxpayer shall furnish such bond for a period of 2 years, 23 after which, if the taxpayer has not been delinquent in the 24 filing of any returns, or delinquent or deficient in the 25 paying of any tax under this Act, the Department may 26 reinstate such person as a prior continuance compliance 27 taxpayer. Any taxpayer who fails to pay an admitted or 28 established liability under this Act may also be required to 29 post bond or other acceptable security with the Department 30 guaranteeing the payment of such admitted or established 31 liability. 32 Any person aggrieved by any decision of the Department 33 under this Section may, within the time allowed by law, 34 protest and request a hearing, whereupon the Department shall HB0539 Enrolled -10- LRB9203973SMdv 1 give notice and shall hold a hearing in conformity with the 2 provisions of this Act and then issue its final 3 administrative decision in the matter to such person. In the 4 absence of such a protest filed within the time allowed by 5 law, the Department's decision shall become final without any 6 further determination being made or notice given. 7 The Department shall discharge any surety and shall 8 release and return any bond or security deposited, assigned, 9 pledged, or otherwise provided to it by a taxpayer under this 10 Section within 30 days after: 11 (1) Such taxpayer becomes a prior continuous compliance 12 taxpayer; or 13 (2) Such taxpayer has ceased to collect receipts on 14 which he is required to remit tax to the Department, has 15 filed a final tax return, and has paid to the Department an 16 amount sufficient to discharge his remaining tax liability as 17 determined by the Department under this Act. The Department 18 shall make a final determination of the taxpayer's 19 outstanding tax liability as expeditiously as possible after 20 his final tax return has been filed. If the Department 21 cannot make such final determination within 45 days after 22 receiving the final tax return, within such period it shall 23 so notify the taxpayer, stating its reasons therefor. 24 The Department may authorize distributors to affix 25 revenue tax stamps by imprinting tax meter stamps upon 26 original packages of cigarettes. The Department shall adopt 27 rules and regulations relating to the imprinting of such tax 28 meter stamps as will result in payment of the proper taxes as 29 herein imposed. No distributor may affix revenue tax stamps 30 to original packages of cigarettes by imprinting tax meter 31 stamps thereon unless such distributor has first obtained 32 permission from the Department to employ this method of 33 affixation. The Department shall regulate the use of tax 34 meters and may, to assure the proper collection of the taxes HB0539 Enrolled -11- LRB9203973SMdv 1 imposed by this Act, revoke or suspend the privilege, 2 theretofore granted by the Department to any distributor, to 3 imprint tax meter stamps upon original packages of 4 cigarettes. 5 Illinois cigarette manufacturers who place their 6 cigarettes in original packages which are contained inside a 7 sealed transparent wrapper, and similar out-of-State 8 cigarette manufacturers who elect to qualify and are accepted 9 by the Department as distributors under Section 4b of this 10 Act, shall pay the taxes imposed by this Act by remitting the 11 amount thereof to the Department by the 5th day of each month 12 covering cigarettes shipped or otherwise delivered in 13 Illinois to purchasers during the preceding calendar month. 14 Such manufacturers of cigarettes in original packages which 15 are contained inside a sealed transparent wrapper, before 16 delivering such cigarettes or causing such cigarettes to be 17 delivered in this State to purchasers, shall evidence their 18 obligation to remit the taxes due with respect to such 19 cigarettes by imprinting language to be prescribed by the 20 Department on each original package of such cigarettes 21 underneath the sealed transparent outside wrapper of such 22 original package, in such place thereon and in such manner as 23 the Department may designate. Such imprinted language shall 24 acknowledge the manufacturer's payment of or liability for 25 the tax imposed by this Act with respect to the distribution 26 of such cigarettes. 27 (Source: P.A. 91-246, eff. 7-22-99; 92-322, eff. 1-1-02.) 28 Section 10. The Cigarette Use Tax Act is amended by 29 changing Sections 2 and 3 as follows: 30 (35 ILCS 135/2) (from Ch. 120, par. 453.32) 31 Sec. 2. A tax is imposed upon the privilege of using 32 cigarettes in this State, at the rate of 6 mills per HB0539 Enrolled -12- LRB9203973SMdv 1 cigarette so used. On and after December 1, 1985, in addition 2 to any other tax imposed by this Act, a tax is imposed upon 3 the privilege of using cigarettes in this State at a rate of 4 4 mills per cigarette so used. On and after the effective 5 date of this amendatory Act of 1989, in addition to any other 6 tax imposed by this Act, a tax is imposed upon the privilege 7 of using cigarettes in this State at the rate of 5 mills per 8 cigarette so used. On and after the effective date of this 9 amendatory Act of 1993, in addition to any other tax imposed 10 by this Act, a tax is imposed upon the privilege of using 11 cigarettes in this State at a rate of 7 mills per cigarette 12 so used. On and after December 15, 1997, in addition to any 13 other tax imposed by this Act, a tax is imposed upon the 14 privilege of using cigarettes in this State at a rate of 7 15 mills per cigarette so used. On and after July 1, 2002, in 16 addition to any other tax imposed by this Act, a tax is 17 imposed upon the privilege of using cigarettes in this State 18 at a rate of 20.0 mills per cigarette so used. The taxes 19 herein imposed shall be in addition to all other occupation 20 or privilege taxes imposed by the State of Illinois or by any 21 political subdivision thereof or by any municipal 22 corporation. 23 When any tax imposed herein terminates or has terminated, 24 distributors who have bought stamps while such tax was in 25 effect and who therefore paid such tax, but who can show, to 26 the Department's satisfaction, that they sold the cigarettes 27 to which they affixed such stamps after such tax had 28 terminated and did not recover the tax or its equivalent from 29 purchasers, shall be allowed by the Department to take credit 30 for such absorbed tax against subsequent tax stamp purchases 31 from the Department by such distributors. 32 When the word "tax" is used in this Act, it shall include 33 any tax or tax rate imposed by this Act and shall mean the 34 singular of "tax" or the plural "taxes" as the context may HB0539 Enrolled -13- LRB9203973SMdv 1 require. 2 Any distributor having cigarettes to which stamps have 3 been affixed in his possession for sale on the effective date 4 of this amendatory Act of 1989 shall not be required to pay 5 the additional tax imposed by this amendatory Act of 1989 on 6 such stamped cigarettes. Any distributor having cigarettes to 7 which stamps have been affixed in his or her possession for 8 sale at 12:01 a.m. on the effective date of this amendatory 9 Act of 1993, is required to pay the additional tax imposed by 10 this amendatory Act of 1993 on such stamped cigarettes. This 11 payment shall be due when the distributor first makes a 12 purchase of cigarette tax stamps after the effective date of 13 this amendatory Act of 1993, or on the first due date of a 14 return under this Act after the effective date of this 15 amendatory Act of 1993, whichever occurs first. Once a 16 distributor tenders payment of the additional tax to the 17 Department, the distributor may purchase stamps from the 18 Department. Any distributor having cigarettes to which 19 stamps have been affixed in his possession for sale on 20 December 15, 1997 shall not be required to pay the additional 21 tax imposed by this amendatory Act of 1997 on such stamped 22 cigarettes. 23 Any distributor having cigarettes to which stamps have 24 been affixed in his or her possession for sale on July 1, 25 2002 shall not be required to pay the additional tax imposed 26 by this amendatory Act of the 92nd General Assembly on those 27 stamped cigarettes. 28 (Source: P.A. 90-548, eff. 12-4-97.) 29 (35 ILCS 135/3) (from Ch. 120, par. 453.33) 30 Sec. 3. Stamp payment. The tax hereby imposed shall be 31 collected by a distributor maintaining a place of business in 32 this State or a distributor authorized by the Department 33 pursuant to Section 7 hereof to collect the tax, and the HB0539 Enrolled -14- LRB9203973SMdv 1 amount of the tax shall be added to the price of the 2 cigarettes sold by such distributor. Collection of the tax 3 shall be evidenced by a stamp or stamps affixed to each 4 original package of cigarettes or by an authorized substitute 5 for such stamp imprinted on each original package of such 6 cigarettes underneath the sealed transparent outside wrapper 7 of such original package, except as hereinafter provided. 8 Each distributor who is required or authorized to collect the 9 tax herein imposed, before delivering or causing to be 10 delivered any original packages of cigarettes in this State 11 to any purchaser, shall firmly affix a proper stamp or stamps 12 to each such package, or (in the case of manufacturers of 13 cigarettes in original packages which are contained inside a 14 sealed transparent wrapper) shall imprint the required 15 language on the original package of cigarettes beneath such 16 outside wrapper as hereinafter provided. Such stamp or stamps 17 need not be affixed to the original package of any cigarettes 18 with respect to which the distributor is required to affix a 19 like stamp or stamps by virtue of the Cigarette Tax Act, 20 however, and no tax imprint need be placed underneath the 21 sealed transparent wrapper of an original package of 22 cigarettes with respect to which the distributor is required 23 or authorized to employ a like tax imprint by virtue of the 24 Cigarette Tax Act. 25 No stamp or imprint may be affixed to, or made upon, any 26 package of cigarettes unless that package complies with all 27 requirements of the federal Cigarette Labeling and 28 Advertising Act, 15 U.S.C. 1331 and following, for the 29 placement of labels, warnings, or any other information upon 30 a package of cigarettes that is sold within the United 31 States. Under the authority of Section 6, the Department 32 shall revoke the license of any distributor that is 33 determined to have violated this paragraph. A person may not 34 affix a stamp on a package of cigarettes, cigarette papers, HB0539 Enrolled -15- LRB9203973SMdv 1 wrappers, or tubes if that individual package has been marked 2 for export outside the United States with a label or notice 3 in compliance with Section 290.185 of Title 27 of the Code of 4 Federal Regulations. It is not a defense to a proceeding for 5 violation of this paragraph that the label or notice has been 6 removed, mutilated, obliterated, or altered in any manner. 7 Stamps, when required hereunder, shall be purchased from 8 the Department, or any person authorized by the Department, 9 by distributors. The Department may refuse to sell stamps to 10 any person who does not comply with the provisions of this 11 Act. Beginning on the effective date of this amendatory Act 12 of the 92nd General Assembly and through June 30, 2002, 13 persons holding valid licenses as distributors may purchase 14 cigarette tax stamps up to an amount equal to 115% of the 15 distributor's average monthly cigarette tax stamp purchases 16 over the 12 calendar months prior to the effective date of 17 this amendatory Act of the 92nd General Assembly. 18 Prior to December 1, 1985, the Department shall allow a 19 distributor 21 days in which to make final payment of the 20 amount to be paid for such stamps, by allowing the 21 distributor to make payment for the stamps at the time of 22 purchasing them with a draft which shall be in such form as 23 the Department prescribes, and which shall be payable within 24 21 days thereafter: Provided that such distributor has filed 25 with the Department, and has received the Department's 26 approval of, a bond, which is in addition to the bond 27 required under Section 4 of this Act, payable to the 28 Department in an amount equal to 80% of such distributor's 29 average monthly tax liability to the Department under this 30 Act during the preceding calendar year or $500,000, whichever 31 is less. The bond shall be joint and several and shall be in 32 the form of a surety company bond in such form as the 33 Department prescribes, or it may be in the form of a bank 34 certificate of deposit or bank letter of credit. The bond HB0539 Enrolled -16- LRB9203973SMdv 1 shall be conditioned upon the distributor's payment of the 2 amount of any 21-day draft which the Department accepts from 3 that distributor for the delivery of stamps to that 4 distributor under this Act. The distributor's failure to pay 5 any such draft, when due, shall also make such distributor 6 automatically liable to the Department for a penalty equal to 7 25% of the amount of such draft. 8 On and after December 1, 1985, the Department shall allow 9 a distributor 30 days in which to make final payment of the 10 amount to be paid for such stamps, by allowing the 11 distributor to make payment for the stamps at the time of 12 purchasing them with a draft which shall be in such form as 13 the Department prescribes, and which shall be payable within 14 30 days thereafter, and beginning on January 1, 2003 and 15 thereafter, the draft shall be payable by means of electronic 16 funds transfer: Provided that such distributor has filed 17 with the Department, and has received the Department's 18 approval of, a bond, which is in addition to the bond 19 required under Section 4 of this Act, payable to the 20 Department in an amount equal to 150% of such distributor's 21 average monthly tax liability to the Department under this 22 Act during the preceding calendar year or $750,000, whichever 23 is less, except that as to bonds filed on or after January 1, 24 1987, such additional bond shall be in an amount equal to 25 100% of such distributor's average monthly tax liability 26 under this Act during the preceding calendar year or 27 $750,000, whichever is less. The bond shall be joint and 28 several and shall be in the form of a surety company bond in 29 such form as the Department prescribes, or it may be in the 30 form of a bank certificate of deposit or bank letter of 31 credit. The bond shall be conditioned upon the distributor's 32 payment of the amount of any 30-day draft which the 33 Department accepts from that distributor for the delivery of 34 stamps to that distributor under this Act. The distributor's HB0539 Enrolled -17- LRB9203973SMdv 1 failure to pay any such draft, when due, shall also make such 2 distributor automatically liable to the Department for a 3 penalty equal to 25% of the amount of such draft. 4 Every prior continuous compliance taxpayer shall be 5 exempt from all requirements under this Section concerning 6 the furnishing of such bond, as defined in this Section, as a 7 condition precedent to his being authorized to engage in the 8 business licensed under this Act. This exemption shall 9 continue for each such taxpayer until such time as he may be 10 determined by the Department to be delinquent in the filing 11 of any returns, or is determined by the Department (either 12 through the Department's issuance of a final assessment which 13 has become final under the Act, or by the taxpayer's filing 14 of a return which admits tax to be due that is not paid) to 15 be delinquent or deficient in the paying of any tax under 16 this Act, at which time that taxpayer shall become subject to 17 the bond requirements of this Section and, as a condition of 18 being allowed to continue to engage in the business licensed 19 under this Act, shall be required to furnish bond to the 20 Department in such form as provided in this Section. Such 21 taxpayer shall furnish such bond for a period of 2 years, 22 after which, if the taxpayer has not been delinquent in the 23 filing of any returns, or delinquent or deficient in the 24 paying of any tax under this Act, the Department may 25 reinstate such person as a prior continuance compliance 26 taxpayer. Any taxpayer who fails to pay an admitted or 27 established liability under this Act may also be required to 28 post bond or other acceptable security with the Department 29 guaranteeing the payment of such admitted or established 30 liability. 31 Any person aggrieved by any decision of the Department 32 under this Section may, within the time allowed by law, 33 protest and request a hearing, whereupon the Department shall 34 give notice and shall hold a hearing in conformity with the HB0539 Enrolled -18- LRB9203973SMdv 1 provisions of this Act and then issue its final 2 administrative decision in the matter to such person. In the 3 absence of such a protest filed within the time allowed by 4 law, the Department's decision shall become final without any 5 further determination being made or notice given. 6 The Department shall discharge any surety and shall 7 release and return any bond or security deposited, assigned, 8 pledged, or otherwise provided to it by a taxpayer under this 9 Section within 30 days after: 10 (1) such Taxpayer becomes a prior continuous 11 compliance taxpayer; or 12 (2) such taxpayer has ceased to collect receipts on 13 which he is required to remit tax to the Department, has 14 filed a final tax return, and has paid to the Department 15 an amount sufficient to discharge his remaining tax 16 liability as determined by the Department under this Act. 17 The Department shall make a final determination of the 18 taxpayer's outstanding tax liability as expeditiously as 19 possible after his final tax return has been filed. If 20 the Department cannot make such final determination 21 within 45 days after receiving the final tax return, 22 within such period it shall so notify the taxpayer, 23 stating its reasons therefor. 24 At the time of purchasing such stamps from the Department 25 when purchase is required by this Act, or at the time when 26 the tax which he has collected is remitted by a distributor 27 to the Department without the purchase of stamps from the 28 Department when that method of remitting the tax that has 29 been collected is required or authorized by this Act, the 30 distributor shall be allowed a discount during any year 31 commencing July 1 and ending the following June 30 in 32 accordance with the schedule set out hereinbelow, from the 33 amount to be paid by him to the Department for such stamps, 34 or to be paid by him to the Department on the basis of HB0539 Enrolled -19- LRB9203973SMdv 1 monthly remittances (as the case may be), to cover the cost, 2 to such distributor, of collecting the tax herein imposed by 3 affixing such stamps to the original packages of cigarettes 4 sold by such distributor or by placing tax imprints 5 underneath the sealed transparent wrapper of original 6 packages of cigarettes sold by such distributor (as the case 7 may be): (1) Prior to December 1, 1985, a discount equal to 8 1-2/3% of the amount of the tax up to and including the first 9 $700,000 paid hereunder by such distributor to the Department 10 during any such year; 1-1/3% of the next $700,000 of tax or 11 any part thereof, paid hereunder by such distributor to the 12 Department during any such year; 1% of the next $700,000 of 13 tax, or any part thereof, paid hereunder by such distributor 14 to the Department during any such year; and 2/3 of 1% of the 15 amount of any additional tax paid hereunder by such 16 distributor to the Department during any such year or (2) On 17 and after December 1, 1985, a discount equal to 1.75% of the 18 amount of the tax payable under this Act up to and including 19 the first $3,000,000 paid hereunder by such distributor to 20 the Department during any such year and 1.5% of the amount of 21 any additional tax paid hereunder by such distributor to the 22 Department during any such year. 23 Two or more distributors that use a common means of 24 affixing revenue tax stamps or that are owned or controlled 25 by the same interests shall be treated as a single 26 distributor for the purpose of computing the discount. 27 Cigarette manufacturers who are distributors under this 28 Act, and who place their cigarettes in original packages 29 which are contained inside a sealed transparent wrapper, 30 shall be required to remit the tax which they are required to 31 collect under this Act to the Department by remitting the 32 amount thereof to the Department by the 5th day of each 33 month, covering cigarettes shipped or otherwise delivered to 34 points in Illinois to purchasers during the preceding HB0539 Enrolled -20- LRB9203973SMdv 1 calendar month, but a distributor need not remit to the 2 Department the tax so collected by him from purchasers under 3 this Act to the extent to which such distributor is required 4 to remit the tax imposed by the Cigarette Tax Act to the 5 Department with respect to the same cigarettes. All taxes 6 upon cigarettes under this Act are a direct tax upon the 7 retail consumer and shall conclusively be presumed to be 8 precollected for the purpose of convenience and facility 9 only. Distributors who are manufacturers of cigarettes in 10 original packages which are contained inside a sealed 11 transparent wrapper, before delivering such cigarettes or 12 causing such cigarettes to be delivered in this State to 13 purchasers, shall evidence their obligation to collect and 14 remit the tax due with respect to such cigarettes by 15 imprinting language to be prescribed by the Department on 16 each original package of such cigarettes underneath the 17 sealed transparent outside wrapper of such original package, 18 in such place thereon and in such manner as the Department 19 may prescribe; provided (as stated hereinbefore) that this 20 requirement does not apply when such distributor is required 21 or authorized by the Cigarette Tax Act to place the tax 22 imprint provided for in the last paragraph of Section 3 of 23 that Act underneath the sealed transparent wrapper of such 24 original package of cigarettes. Such imprinted language shall 25 acknowledge the manufacturer's collection and payment of or 26 liability for the tax imposed by this Act with respect to 27 such cigarettes. 28 The Department shall adopt the design or designs of the 29 tax stamps and shall procure the printing of such stamps in 30 such amounts and denominations as it deems necessary to 31 provide for the affixation of the proper amount of tax stamps 32 to each original package of cigarettes. 33 Where tax stamps are required, the Department may 34 authorize distributors to affix revenue tax stamps by HB0539 Enrolled -21- LRB9203973SMdv 1 imprinting tax meter stamps upon original packages of 2 cigarettes. The Department shall adopt rules and regulations 3 relating to the imprinting of such tax meter stamps as will 4 result in payment of the proper taxes as herein imposed. No 5 distributor may affix revenue tax stamps to original packages 6 of cigarettes by imprinting meter stamps thereon unless such 7 distributor has first obtained permission from the Department 8 to employ this method of affixation. The Department shall 9 regulate the use of tax meters and may, to assure the proper 10 collection of the taxes imposed by this Act, revoke or 11 suspend the privilege, theretofore granted by the Department 12 to any distributor, to imprint tax meter stamps upon original 13 packages of cigarettes. 14 The tax hereby imposed and not paid pursuant to this 15 Section shall be paid to the Department directly by any 16 person using such cigarettes within this State, pursuant to 17 Section 12 hereof. 18 (Source: P.A. 91-246, eff. 7-22-99; 92-322, eff. 1-1-02.) 19 Section 15. The Property Tax Code is amended by changing 20 Section 31-35 as follows: 21 (35 ILCS 200/31-35) 22 Sec. 31-35. Deposit of tax revenue. Beginning on the 23 effective date of this amendatory Act of the 92nd General 24 AssemblyJuly 1, 1994,50%of the moneysmoniescollected 25 under Section 31-15, 50% shall be deposited into the Illinois 26 Affordable Housing Trust Fund, 20%35%into the Open Space 27 Lands Acquisition and Development Fund, 5%and 15%into the 28 Natural Areas Acquisition Fund, and 25% into the General 29 Revenue Fund. 30 (Source: P.A. 91-555, eff. 1-1-00.) 31 Section 99. Effective date. This Act takes effect upon HB0539 Enrolled -22- LRB9203973SMdv 1 becoming law.