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| [ Introduced ] | [ Engrossed ] | [ Senate Amendment 001 ] |
92_SB0856enr SB856 Enrolled LRB9205820SMdv 1 AN ACT in relation to 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 3, 4, 5, 9, 9a, 9b, and 24 and by adding Section 18c 6 as follows: 7 (35 ILCS 130/3) (from Ch. 120, par. 453.3) 8 Sec. 3. Affixing tax stamp; remitting tax to the 9 Department. Payment of the taxes imposed by Section 2 of 10 this Act shall (except as hereinafter provided) be evidenced 11 by revenue tax stamps affixed to each original package of 12 cigarettes. Each distributor of cigarettes, before delivering 13 or causing to be delivered any original package of cigarettes 14 in this State to a purchaser, shall firmly affix a proper 15 stamp or stamps to each such package, or (in case of 16 manufacturers of cigarettes in original packages which are 17 contained inside a sealed transparent wrapper) shall imprint 18 the required language on the original package of cigarettes 19 beneath such outside wrapper, as hereinafter provided. 20 No stamp or imprint may be affixed to, or made upon, any 21 package of cigarettes unless that package complies with all 22 requirements of the federal Cigarette Labeling and 23 Advertising Act, 15 U.S.C. 1331 and following, for the 24 placement of labels, warnings, or any other information upon 25 a package of cigarettes that is sold within the United 26 States. Under the authority of Section 6, the Department 27 shall revoke the license of any distributor that is 28 determined to have violated this paragraph. A person may not 29 affix a stamp on a package of cigarettes, cigarette papers, 30 wrappers, or tubes if that individual package has been marked 31 for export outside the United States with a label or notice SB856 Enrolled -2- LRB9205820SMdv 1 in compliance with Section 290.185 of Title 27 of the Code of 2 Federal Regulations. It is not a defense to a proceeding for 3 violation of this paragraph that the label or notice has been 4 removed, mutilated, obliterated, or altered in any manner. 5 The Department, or any person authorized by the 6 Department, shall sell such stamps only to persons holding 7 valid licenses as distributors under this Act. The Department 8 may refuse to sell stamps to any person who does not comply 9 with the provisions of this Act. 10 Prior to December 1, 1985, the Department shall allow a 11 distributor 21 days in which to make final payment of the 12 amount to be paid for such stamps, by allowing the 13 distributor to make payment for the stamps at the time of 14 purchasing them with a draft which shall be in such form as 15 the Department prescribes, and which shall be payable within 16 21 days thereafter: 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 80% of such distributor's 21 average monthly tax liability to the Department under this 22 Act during the preceding calendar year or $500,000, whichever 23 is less. The Bond shall be joint and several and shall be in 24 the form of a surety company bond in such form as the 25 Department prescribes, or it may be in the form of a bank 26 certificate of deposit or bank letter of credit. The bond 27 shall be conditioned upon the distributor's payment of amount 28 of any 21-day draft which the Department accepts from that 29 distributor for the delivery of stamps to that distributor 30 under this Act. The distributor's failure to pay any such 31 draft, when due, shall also make such distributor 32 automatically liable to the Department for a penalty equal to 33 25% of the amount of such draft. 34 On and after December 1, 1985, the Department shall allow SB856 Enrolled -3- LRB9205820SMdv 1 a distributor 30 days in which to make final payment of the 2 amount to be paid for such stamps, by allowing the 3 distributor to make payment for the stamps at the time of 4 purchasing them with a draft which shall be in such form as 5 the Department prescribes, and which shall be payable within 6 30 days thereafter, and beginning on January 1, 2003 and 7 thereafter, the draft shall be payable by means of electronic 8 funds transfer: Provided that such distributor has filed 9 with the Department, and has received the Department's 10 approval of, a bond, which is in addition to the bond 11 required under Section 4 of this Act, payable to the 12 Department in an amount equal to 150% of such distributor's 13 average monthly tax liability to the Department under this 14 Act during the preceding calendar year or $750,000, whichever 15 is less, except that as to bonds filed on or after January 1, 16 1987, such additional bond shall be in an amount equal to 17 100% of such distributor's average monthly tax liability 18 under this Act during the preceding calendar year or 19 $750,000, whichever is less. The bond shall be joint and 20 several and shall be in the form of a surety company bond in 21 such form as the Department prescribes, or it may be in the 22 form of a bank certificate of deposit or bank letter of 23 credit. The bond shall be conditioned upon the distributor's 24 payment of the amount of any 30-day draft which the 25 Department accepts from that distributor for the delivery of 26 stamps to that distributor under this Act. The distributor's 27 failure to pay any such draft, when due, shall also make such 28 distributor automatically liable to the Department for a 29 penalty equal to 25% of the amount of such draft. 30 Every prior continuous compliance taxpayer shall be 31 exempt from all requirements under this Section concerning 32 the furnishing of such bond, as defined in this Section, as a 33 condition precedent to his being authorized to engage in the 34 business licensed under this Act. This exemption shall SB856 Enrolled -4- LRB9205820SMdv 1 continue for each such taxpayer until such time as he may be 2 determined by the Department to be delinquent in the filing 3 of any returns, or is determined by the Department (either 4 through the Department's issuance of a final assessment which 5 has become final under the Act, or by the taxpayer's filing 6 of a return which admits tax to be due that is not paid) to 7 be delinquent or deficient in the paying of any tax under 8 this Act, at which time that taxpayer shall become subject to 9 the bond requirements of this Section and, as a condition of 10 being allowed to continue to engage in the business licensed 11 under this Act, shall be required to furnish bond to the 12 Department in such form as provided in this Section. Such 13 taxpayer shall furnish such bond for a period of 2 years, 14 after which, if the taxpayer has not been delinquent in the 15 filing of any returns, or delinquent or deficient in the 16 paying of any tax under this Act, the Department may 17 reinstate such person as a prior continuance compliance 18 taxpayer. Any taxpayer who fails to pay an admitted or 19 established liability under this Act may also be required to 20 post bond or other acceptable security with the Department 21 guaranteeing the payment of such admitted or established 22 liability. 23 Any person aggrieved by any decision of the Department 24 under this Section may, within the time allowed by law, 25 protest and request a hearing, whereupon the Department shall 26 give notice and shall hold a hearing in conformity with the 27 provisions of this Act and then issue its final 28 administrative decision in the matter to such person. In the 29 absence of such a protest filed within the time allowed by 30 law, the Department's decision shall become final without any 31 further determination being made or notice given. 32 The Department shall discharge any surety and shall 33 release and return any bond or security deposited, assigned, 34 pledged, or otherwise provided to it by a taxpayer under this SB856 Enrolled -5- LRB9205820SMdv 1 Section within 30 days after: 2 (1) Such taxpayer becomes a prior continuous compliance 3 taxpayer; or 4 (2) Such taxpayer has ceased to collect receipts on 5 which he is required to remit tax to the Department, has 6 filed a final tax return, and has paid to the Department an 7 amount sufficient to discharge his remaining tax liability as 8 determined by the Department under this Act. The Department 9 shall make a final determination of the taxpayer's 10 outstanding tax liability as expeditiously as possible after 11 his final tax return has been filed. If the Department 12 cannot make such final determination within 45 days after 13 receiving the final tax return, within such period it shall 14 so notify the taxpayer, stating its reasons therefor. 15 The Department may authorize distributors to affix 16 revenue tax stamps by imprinting tax meter stamps upon 17 original packages of cigarettes. The Department shall adopt 18 rules and regulations relating to the imprinting of such tax 19 meter stamps as will result in payment of the proper taxes as 20 herein imposed. No distributor may affix revenue tax stamps 21 to original packages of cigarettes by imprinting tax meter 22 stamps thereon unless such distributor has first obtained 23 permission from the Department to employ this method of 24 affixation. The Department shall regulate the use of tax 25 meters and may, to assure the proper collection of the taxes 26 imposed by this Act, revoke or suspend the privilege, 27 theretofore granted by the Department to any distributor, to 28 imprint tax meter stamps upon original packages of 29 cigarettes. 30 Illinois cigarette manufacturers who place their 31 cigarettes in original packages which are contained inside a 32 sealed transparent wrapper, and similar out-of-State 33 cigarette manufacturers who elect to qualify and are accepted 34 by the Department as distributors under Section 4b of this SB856 Enrolled -6- LRB9205820SMdv 1 Act, shall pay the taxes imposed by this Act by remitting the 2 amount thereof to the Department by the 5th day of each month 3 covering cigarettes shipped or otherwise delivered in 4 Illinois to purchasers during the preceding calendar month. 5 Such manufacturers of cigarettes in original packages which 6 are contained inside a sealed transparent wrapper, before 7 delivering such cigarettes or causing such cigarettes to be 8 delivered in this State to purchasers, shall evidence their 9 obligation to remit the taxes due with respect to such 10 cigarettes by imprinting language to be prescribed by the 11 Department on each original package of such cigarettes 12 underneath the sealed transparent outside wrapper of such 13 original package, in such place thereon and in such manner as 14 the Department may designate. Such imprinted language shall 15 acknowledge the manufacturer's payment of or liability for 16 the tax imposed by this Act with respect to the distribution 17 of such cigarettes. 18 (Source: P.A. 91-246, eff. 7-22-99.) 19 (35 ILCS 130/4) (from Ch. 120, par. 453.4) 20 Sec. 4. Distributor's license. No person may engage in 21 business as a distributor of cigarettes in this State within 22 the meaning of the first 2 definitions of distributor in 23 Section 1 of this Act without first having obtained a license 24 therefor from the Department. Application for license shall 25 be made to the Department in form as furnished and prescribed 26 by the Department. Each applicant for a license under this 27 Section shall furnish to the Department on the form signed 28 and verified by the applicant the following information: 29 (a) The name and address of the applicant; 30 (b) The address of the location at which the 31 applicant proposes to engage in business as a distributor 32 of cigarettes in this State; 33 (c) Such other additional information as the SB856 Enrolled -7- LRB9205820SMdv 1 Department may lawfully require by its rules and 2 regulations. 3 The annual license fee payable to the Department for each 4 distributor's license shall be $250. The purpose of such 5 annual license fee is to defray the cost, to the Department, 6 ofcoding, serializing or coding andserializing cigarette 7 tax stamps. Each applicant for license shall pay such fee to 8 the Department at the time of submitting his application for 9 license to the Department. 10 Every applicant who is required to procure a 11 distributor's license shall file with his application a joint 12 and several bond. Such bond shall be executed to the 13 Department of Revenue, with good and sufficient surety or 14 sureties residing or licensed to do business within the State 15 of Illinois, in the amount of $2,500, conditioned upon the 16 true and faithful compliance by the licensee with all of the 17 provisions of this Act. Such bond, or a reissue thereof, or a 18 substitute therefor, shall be kept in effect during the 19 entire period covered by the license. A separate application 20 for license shall be made, a separate annual license fee 21 paid, and a separate bond filed, for each place of business 22 at which a person who is required to procure a distributor's 23 license under this Section proposes to engage in business as 24 a distributor in Illinois under this Act. 25 The following are ineligible to receive a distributor's 26 license under this Act: 27 (1) a person who is not of good character and 28 reputation in the community in which he resides; 29 (2) a person who has been convicted of a 30 felony under any Federal or State law, if the 31 Department, after investigation and a hearing, if 32 requested by the applicant, determines that such 33 person has not been sufficiently rehabilitated to 34 warrant the public trust; SB856 Enrolled -8- LRB9205820SMdv 1 (3) a corporation, if any officer, manager or 2 director thereof, or any stockholder or stockholders 3 owning in the aggregate more than 5% of the stock of 4 such corporation, would not be eligible to receive a 5 license under this Act for any reason. 6 The Department, upon receipt of an application, license 7 fee and bond in proper form, from a person who is eligible to 8 receive a distributor's license under this Act, shall issue 9 to such applicant a license in form as prescribed by the 10 Department, which license shall permit the applicant to which 11 it is issued to engage in business as a distributor at the 12 place shown in his application. All licenses issued by the 13 Department under this Act shall be valid for not to exceed 14 one year after issuance unless sooner revoked, canceled or 15 suspended as provided in this Act. No license issued under 16 this Act is transferable or assignable. Such license shall be 17 conspicuously displayed in the place of business conducted by 18 the licensee in Illinois under such license. 19 Any person aggrieved by any decision of the Department 20 under this Section may, within 20 days after notice of the 21 decision, protest and request a hearing. Upon receiving a 22 request for a hearing, the Department shall give notice to 23 the person requesting the hearing of the time and place fixed 24 for the hearing and shall hold a hearing in conformity with 25 the provisions of this Act and then issue its final 26 administrative decision in the matter to that person. In the 27 absence of a protest and request for a hearing within 20 28 days, the Department's decision shall become final without 29 any further determination being made or notice given. 30 (Source: P.A. 91-901, eff. 1-1-01.) 31 (35 ILCS 130/5) (from Ch. 120, par. 453.5) 32 Sec. 5. Printing tax stamps. The Department shall adopt 33 the design or designs of the tax stamps or alternative tax SB856 Enrolled -9- LRB9205820SMdv 1 indicia and shall procure the printing of such stamps or 2 alternative tax indicia in such amounts and denominations as 3 it deems necessary to provide for the affixation of the 4 proper amount of tax stamps or alternative tax indicia to 5 each original package of cigarettes. 6 (Source: Laws 1943, vol. 1, p. 1063.) 7 (35 ILCS 130/9) (from Ch. 120, par. 453.9) 8 Sec. 9. Returns; remittance. Every distributor who is 9 required to procure a license under this Act, but who is not 10 a manufacturer of cigarettes in original packages which are 11 contained in a sealed transparent wrapper, shall, on or 12 before the 15th day of each calendar month, file a return 13 with the Department, showing the quantity of cigarettes 14 manufactured during the preceding calendar month, the 15 quantity of cigarettes brought into this State or caused to 16 be brought into this State from outside this State during the 17 preceding calendar month without authorized evidence on the 18 original packages of such cigarettes underneath the sealed 19 transparent wrapper thereof that the tax liability imposed by 20 this Act has been assumed by the out-of-State seller of such 21 cigarettes, the quantity of cigarettes purchased tax-paid 22 during the preceding calendar month either within or outside 23 this State, and the quantity of cigarettes sold or otherwise 24 disposed of during the preceding calendar month. Such return 25 shall be filed upon forms furnished and prescribed by the 26 Department and shall contain such other information as the 27 Department may reasonably require. The Department may 28 promulgate rules to require that the distributor's return be 29 accompanied by appropriate computer-generated magnetic media 30 supporting schedule data in the format required by the 31 Department, unless, as provided by rule, the Department 32 grants an exception upon petition of a distributor. 33 Illinois manufacturers of cigarettes in original packages SB856 Enrolled -10- LRB9205820SMdv 1 which are contained inside a sealed transparent wrapper shall 2 file a return by the 5th day of each month covering the 3 preceding calendar month. Each such return shall be 4 accompanied by the appropriate remittance for tax as provided 5 in the last paragraph of Section 3 of this Act. Each such 6 return shall show the quantity of such cigarettes 7 manufactured during the period covered by the return, the 8 quantity of cigarettes sold or otherwise disposed of during 9 the period covered by the return and such other information 10 as the Department may lawfully require. Such returns shall be 11 filed on forms prescribed and furnished by the Department. 12 Each such return shall be accompanied by a copy of each 13 invoice rendered by such manufacturer to any purchaser to 14 whom such manufacturer delivered cigarettes (or caused 15 cigarettes to be delivered) during the period covered by the 16 return. The Department may promulgate rules to require that 17 the manufacturer's return be accompanied by appropriate 18 computer-generated magnetic media supporting schedule data in 19 the format required by the Department, unless, as provided by 20 rule, the Department grants an exception upon petition of a 21 manufacturer. 22 (Source: Laws 1953, p. 255.) 23 (35 ILCS 130/9a) (from Ch. 120, par. 453.9a) 24 Sec. 9a. Examination and correction of returns. 25 (1) As soon as practicable after any return is filed, 26 the Department shall examine such return and shall correct 27 such return according to its best judgment and information, 28 which return so corrected by the Department shall be prima 29 facie correct and shall be prima facie evidence of the 30 correctness of the amount of tax due, as shown therein. 31 Instead of requiring the distributor to file an amended 32 return, the Department may simply notify the distributor of 33 the correction or corrections it has made. Proof of such SB856 Enrolled -11- LRB9205820SMdv 1 correction by the Department may be made at any hearing 2 before the Department or in any legal proceeding by a 3 reproduced copy of the Department's record relating thereto 4 in the name of the Department under the certificate of the 5 Director of Revenue. Such reproduced copy shall, without 6 further proof, be admitted into evidence before the 7 Department or in any legal proceeding and shall be prima 8 facie proof of the correctness of the amount of tax due, as 9 shown therein. If the Department finds that any amount of tax 10 is due from the distributor, the Department shall issue the 11 distributor a notice of tax liability for the amount of tax 12 claimed by the Department to be due, together with a penalty 13 in an amount determined in accordance with Sections 3-3, 3-5 14 and 3-6 of the Uniform Penalty and Interest Act. If, in 15 administering the provisions of this Act, comparison of a 16 return or returns of a distributor with the books, records 17 and inventories of such distributor discloses a deficiency 18 which cannot be allocated by the Department to a particular 19 month or months, the Department shall issue the distributor a 20 notice of tax liability for the amount of tax claimed by the 21 Department to be due for a given period, but without any 22 obligation upon the Department to allocate such deficiency to 23 any particular month or months, together with a penalty in an 24 amount determined in accordance with Sections 3-3, 3-5 and 25 3-6 of the Uniform Penalty and Interest Act, under which 26 circumstances the aforesaid notice of tax liability shall be 27 prima facie correct and shall be prima facie evidence of the 28 correctness of the amount of tax due, as shown therein; and 29 proof of such correctness may be made in accordance with, and 30 the admissibility of a reproduced copy of such notice of tax 31 liability shall be governed by, all the provisions of this 32 Act applicable to corrected returns. If any distributor 33 filing any return dies or becomes a person under legal 34 disability at any time before the Department issues its SB856 Enrolled -12- LRB9205820SMdv 1 notice of tax liability, such notice shall be issued to the 2 administrator, executor or other legal representative, as 3 such, of such distributor. 4 (2) If, within 6020days after such notice of tax 5 liability, the distributor or his or her legal representative 6 files a protest to such notice of tax liability and requests 7 a hearing thereon, the Department shall give notice to such 8 distributor or legal representative of the time and place 9 fixed for such hearing, and shall hold a hearing in 10 conformity with the provisions of this Act, and pursuant 11 thereto shall issue a final assessment to such distributor or 12 legal representative for the amount found to be due as a 13 result of such hearing. If a protest to the notice of tax 14 liability and a request for a hearing thereon is not filed 15 within 6020days after such notice of tax liability, such 16 notice of tax liability shall become final without the 17 necessity of a final assessment being issued and shall be 18 deemed to be a final assessment. 19 (3) In case of failure to pay the tax, or any portion 20 thereof, or any penalty provided for in this Act, when due, 21 the Department may bring suit to recover the amount of such 22 tax, or portion thereof, or penalty; or, if the taxpayer dies 23 or becomes incompetent, by filing claim therefor against his 24 estate; provided that no such action with respect to any tax, 25 or portion thereof, or penalty, shall be instituted more than 26 2 years after the cause of action accrues, except with the 27 consent of the person from whom such tax or penalty is due. 28 After the expiration of the period within which the 29 person assessed may file an action for judicial review under 30 the Administrative Review Law without such an action being 31 filed, a certified copy of the final assessment or revised 32 final assessment of the Department may be filed with the 33 Circuit Court of the county in which the taxpayer has his or 34 her principal place of business, or of Sangamon County in SB856 Enrolled -13- LRB9205820SMdv 1 those cases in which the taxpayer does not have his principal 2 place of business in this State. The certified copy of the 3 final assessment or revised final assessment shall be 4 accompanied by a certification which recites facts that are 5 sufficient to show that the Department complied with the 6 jurisdictional requirements of the Law in arriving at its 7 final assessment or its revised final assessment and that the 8 taxpayer had his or her opportunity for an administrative 9 hearing and for judicial review, whether he availed himself 10 or herself of either or both of these opportunities or not. 11 If the court is satisfied that the Department complied with 12 the jurisdictional requirements of the Law in arriving at its 13 final assessment or its revised final assessment and that the 14 taxpayer had his or her opportunity for an administrative 15 hearing and for judicial review, whether he or she availed 16 himself or herself of either or both of these opportunities 17 or not, the court shall enter judgment in favor of the 18 Department and against the taxpayer for the amount shown to 19 be due by the final assessment or the revised final 20 assessment, and such judgment shall be filed of record in the 21 court. Such judgment shall bear the rate of interest set in 22 the Uniform Penalty and Interest Act, but otherwise shall 23 have the same effect as other judgments. The judgment may be 24 enforced, and all laws applicable to sales for the 25 enforcement of a judgment shall be applicable to sales made 26 under such judgments. The Department shall file the certified 27 copy of its assessment, as herein provided, with the Circuit 28 Court within 2 years after such assessment becomes final 29 except when the taxpayer consents in writing to an extension 30 of such filing period. 31 If, when the cause of action for a proceeding in court 32 accrues against a person, he or she is out of the State, the 33 action may be commenced within the times herein limited, 34 after his or her coming into or return to the State; and if, SB856 Enrolled -14- LRB9205820SMdv 1 after the cause of action accrues, he or she departs from and 2 remains out of the State, the time of his or her absence is 3 no part of the time limited for the commencement of the 4 action; but the foregoing provisions concerning absence from 5 the State shall not apply to any case in which, at the time 6 the cause of action accrues, the party against whom the cause 7 of action accrues is not a resident of this State. The time 8 within which a court action is to be commenced by the 9 Department hereunder shall not run while the taxpayer is a 10 debtor in any proceeding under the Federal Bankruptcy Act nor 11 thereafter until 90 days after the Department is notified by 12 such debtor of being discharged in bankruptcy. 13 No claim shall be filed against the estate of any 14 deceased person or a person under legal disability for any 15 tax or penalty or part of either except in the manner 16 prescribed and within the time limited by the Probate Act of 17 1975, as amended. 18 The remedies provided for herein shall not be exclusive, 19 but all remedies available to creditors for the collection of 20 debts shall be available for the collection of any tax or 21 penalty due hereunder. 22 The collection of tax or penalty by any means provided 23 for herein shall not be a bar to any prosecution under this 24 Act. 25 The certificate of the Director of the Department to the 26 effect that a tax or amount required to be paid by this Act 27 has not been paid, that a return has not been filed, or that 28 information has not been supplied pursuant to the provisions 29 of this Act, shall be prima facie evidence thereof. 30 All of the provisions of Sections 5a, 5b, 5c, 5d, 5e, 5f, 31 5g, 5i and 5j of the Retailers' Occupation Tax Act, which are 32 not inconsistent with this Act, and Section 3-7 of the 33 Uniform Penalty and Interest Act shall apply, as far as 34 practicable, to the subject matter of this Act to the same SB856 Enrolled -15- LRB9205820SMdv 1 extent as if such provisions were included herein. References 2 in such incorporated Sections of the "Retailers' Occupation 3 Tax Act" to retailers, to sellers or to persons engaged in 4 the business of selling tangible personal property shall mean 5 distributors when used in this Act. 6 (Source: P.A. 87-205.) 7 (35 ILCS 130/9b) (from Ch. 120, par. 453.9b) 8 Sec. 9b. Failure to file return; penalty; protest. In 9 case any person who is required to file a return under this 10 Act fails to file such return, the Department shall determine 11 the amount of tax due from him according to its best judgment 12 and information, which amount so fixed by the Department 13 shall be prima facie correct and shall be prima facie 14 evidence of the correctness of the amount of tax due, as 15 shown in such determination. Proof of such determination by 16 the Department may be made at any hearing before the 17 Department or in any legal proceeding by a reproduced copy of 18 the Department's record relating thereto in the name of the 19 Department under the certificate of the Director of Revenue. 20 Such reproduced copy shall, without further proof, be 21 admitted into evidence before the Department or in any legal 22 proceeding and shall be prima facie proof of the correctness 23 of the amount of tax due, as shown therein. The Department 24 shall issue such person a notice of tax liability for the 25 amount of tax claimed by the Department to be due, together 26 with a penalty in an amount determined in accordance with 27 Sections 3-3, 3-5 and 3-6 of the Uniform Penalty and Interest 28 Act. If such person or the legal representative of such 29 person, within 6020days after such notice, files a protest 30 to such notice of tax liability and requests a hearing 31 thereon, the Department shall give notice to such person or 32 the legal representative of such person of the time and place 33 fixed for such hearing and shall hold a hearing in conformity SB856 Enrolled -16- LRB9205820SMdv 1 with the provisions of this Act, and pursuant thereto shall 2 issue a final assessment to such person or to the legal 3 representative of such person for the amount found to be due 4 as a result of such hearing. If a protest to the notice of 5 tax liability and a request for a hearing thereon is not 6 filed within 6020days after such notice of tax liability, 7 such notice of tax liability shall become final without the 8 necessity of a final assessment being issued and shall be 9 deemed to be a final assessment. 10 (Source: P.A. 87-205.) 11 (35 ILCS 130/18c new) 12 Sec. 18c. Possession of not less than 10 and not more 13 than 100 original packages not tax stamped or improperly tax 14 stamped; penalty. With the exception of licensed 15 distributors, anyone possessing not less than 10 and not more 16 than 100 packages of cigarettes contained in original 17 packages that are not tax stamped as required by this Act, or 18 that are improperly tax stamped, is liable to pay to the 19 Department, for deposit into the Tax Compliance and 20 Administration Fund, a penalty of $10 for each such package 21 of cigarettes, unless reasonable cause can be established by 22 the person upon whom the penalty is imposed. Reasonable 23 cause shall be determined in each situation in accordance 24 with rules adopted by the Department. 25 (35 ILCS 130/24) (from Ch. 120, par. 453.24) 26 Sec. 24. Punishment for sale or possession of unstamped 27 packages. 28 (a) Any person other than a licensed distributor who 29 sells, offers for sale, or has in his possession with intent 30 to sell or offer for sale, more than 100anoriginal packages 31package, not tax stamped or tax imprinted underneath the 32 sealed transparent wrapper of such original package in SB856 Enrolled -17- LRB9205820SMdv 1 accordance with this Act, shall be guilty of a Class 4 2 felony. 3 (a-5) Any person other than a licensed distributor who 4 sells, offers for sale, or has in his possession with intent 5 to sell or offer for sale, 100 or fewer original packages, 6 not tax stamped or tax imprinted underneath the sealed 7 transparent wrapper of the original package in accordance 8 with this Act, is guilty of a Class A misdemeanor for the 9 first offense and a Class 4 felony for each subsequent 10 offense. 11 (b) Any distributor who sells an original package of 12 cigarettes, not tax stamped or tax imprinted underneath the 13 sealed transparent wrapper of such original package in 14 accordance with this Act, except when the sale is made under 15 such circumstances that the tax imposed by this Act may not 16 legally be levied because of the Constitution or laws of the 17 United States, shall be guilty of a Class 3 felony. 18 (Source: P.A. 83-1528.) 19 Section 10. The Cigarette Use Tax Act is amended by 20 changing Sections 3, 4, 11, 12, 13, 13a, and 30 and by adding 21 Section 25b as follows: 22 (35 ILCS 135/3) (from Ch. 120, par. 453.33) 23 Sec. 3. Stamp payment. The tax hereby imposed shall be 24 collected by a distributor maintaining a place of business in 25 this State or a distributor authorized by the Department 26 pursuant to Section 7 hereof to collect the tax, and the 27 amount of the tax shall be added to the price of the 28 cigarettes sold by such distributor. Collection of the tax 29 shall be evidenced by a stamp or stamps affixed to each 30 original package of cigarettes or by an authorized substitute 31 for such stamp imprinted on each original package of such 32 cigarettes underneath the sealed transparent outside wrapper SB856 Enrolled -18- LRB9205820SMdv 1 of such original package, except as hereinafter provided. 2 Each distributor who is required or authorized to collect the 3 tax herein imposed, before delivering or causing to be 4 delivered any original packages of cigarettes in this State 5 to any purchaser, shall firmly affix a proper stamp or stamps 6 to each such package, or (in the case of manufacturers of 7 cigarettes in original packages which are contained inside a 8 sealed transparent wrapper) shall imprint the required 9 language on the original package of cigarettes beneath such 10 outside wrapper as hereinafter provided. Such stamp or stamps 11 need not be affixed to the original package of any cigarettes 12 with respect to which the distributor is required to affix a 13 like stamp or stamps by virtue of the Cigarette Tax Act, 14 however, and no tax imprint need be placed underneath the 15 sealed transparent wrapper of an original package of 16 cigarettes with respect to which the distributor is required 17 or authorized to employ a like tax imprint by virtue of the 18 Cigarette Tax Act. 19 No stamp or imprint may be affixed to, or made upon, any 20 package of cigarettes unless that package complies with all 21 requirements of the federal Cigarette Labeling and 22 Advertising Act, 15 U.S.C. 1331 and following, for the 23 placement of labels, warnings, or any other information upon 24 a package of cigarettes that is sold within the United 25 States. Under the authority of Section 6, the Department 26 shall revoke the license of any distributor that is 27 determined to have violated this paragraph. A person may not 28 affix a stamp on a package of cigarettes, cigarette papers, 29 wrappers, or tubes if that individual package has been marked 30 for export outside the United States with a label or notice 31 in compliance with Section 290.185 of Title 27 of the Code of 32 Federal Regulations. It is not a defense to a proceeding for 33 violation of this paragraph that the label or notice has been 34 removed, mutilated, obliterated, or altered in any manner. SB856 Enrolled -19- LRB9205820SMdv 1 Stamps, when required hereunder, shall be purchased from 2 the Department, or any person authorized by the Department, 3 by distributors. The Department may refuse to sell stamps to 4 any person who does not comply with the provisions of this 5 Act. 6 Prior to December 1, 1985, the Department shall allow a 7 distributor 21 days in which to make final payment of the 8 amount to be paid for such stamps, by allowing the 9 distributor to make payment for the stamps at the time of 10 purchasing them with a draft which shall be in such form as 11 the Department prescribes, and which shall be payable within 12 21 days thereafter: Provided that such distributor has filed 13 with the Department, and has received the Department's 14 approval of, a bond, which is in addition to the bond 15 required under Section 4 of this Act, payable to the 16 Department in an amount equal to 80% of such distributor's 17 average monthly tax liability to the Department under this 18 Act during the preceding calendar year or $500,000, whichever 19 is less. The bond shall be joint and several and shall be in 20 the form of a surety company bond in such form as the 21 Department prescribes, or it may be in the form of a bank 22 certificate of deposit or bank letter of credit. The bond 23 shall be conditioned upon the distributor's payment of the 24 amount of any 21-day draft which the Department accepts from 25 that distributor for the delivery of stamps to that 26 distributor under this Act. The distributor's failure to pay 27 any such draft, when due, shall also make such distributor 28 automatically liable to the Department for a penalty equal to 29 25% of the amount of such draft. 30 On and after December 1, 1985, the Department shall allow 31 a distributor 30 days in which to make final payment of the 32 amount to be paid for such stamps, by allowing the 33 distributor to make payment for the stamps at the time of 34 purchasing them with a draft which shall be in such form as SB856 Enrolled -20- LRB9205820SMdv 1 the Department prescribes, and which shall be payable within 2 30 days thereafter, and beginning on January 1, 2003 and 3 thereafter, the draft shall be payable by means of electronic 4 funds transfer: Provided that such distributor has filed 5 with the Department, and has received the Department's 6 approval of, a bond, which is in addition to the bond 7 required under Section 4 of this Act, payable to the 8 Department in an amount equal to 150% of such distributor's 9 average monthly tax liability to the Department under this 10 Act during the preceding calendar year or $750,000, whichever 11 is less, except that as to bonds filed on or after January 1, 12 1987, such additional bond shall be in an amount equal to 13 100% of such distributor's average monthly tax liability 14 under this Act during the preceding calendar year or 15 $750,000, whichever is less. The bond shall be joint and 16 several and shall be in the form of a surety company bond in 17 such form as the Department prescribes, or it may be in the 18 form of a bank certificate of deposit or bank letter of 19 credit. The bond shall be conditioned upon the distributor's 20 payment of the amount of any 30-day draft which the 21 Department accepts from that distributor for the delivery of 22 stamps to that distributor under this Act. The distributor's 23 failure to pay any such draft, when due, shall also make such 24 distributor automatically liable to the Department for a 25 penalty equal to 25% of the amount of such draft. 26 Every prior continuous compliance taxpayer shall be 27 exempt from all requirements under this Section concerning 28 the furnishing of such bond, as defined in this Section, as a 29 condition precedent to his being authorized to engage in the 30 business licensed under this Act. This exemption shall 31 continue for each such taxpayer until such time as he may be 32 determined by the Department to be delinquent in the filing 33 of any returns, or is determined by the Department (either 34 through the Department's issuance of a final assessment which SB856 Enrolled -21- LRB9205820SMdv 1 has become final under the Act, or by the taxpayer's filing 2 of a return which admits tax to be due that is not paid) to 3 be delinquent or deficient in the paying of any tax under 4 this Act, at which time that taxpayer shall become subject to 5 the bond requirements of this Section and, as a condition of 6 being allowed to continue to engage in the business licensed 7 under this Act, shall be required to furnish bond to the 8 Department in such form as provided in this Section. Such 9 taxpayer shall furnish such bond for a period of 2 years, 10 after which, if the taxpayer has not been delinquent in the 11 filing of any returns, or delinquent or deficient in the 12 paying of any tax under this Act, the Department may 13 reinstate such person as a prior continuance compliance 14 taxpayer. Any taxpayer who fails to pay an admitted or 15 established liability under this Act may also be required to 16 post bond or other acceptable security with the Department 17 guaranteeing the payment of such admitted or established 18 liability. 19 Any person aggrieved by any decision of the Department 20 under this Section may, within the time allowed by law, 21 protest and request a hearing, whereupon the Department shall 22 give notice and shall hold a hearing in conformity with the 23 provisions of this Act and then issue its final 24 administrative decision in the matter to such person. In the 25 absence of such a protest filed within the time allowed by 26 law, the Department's decision shall become final without any 27 further determination being made or notice given. 28 The Department shall discharge any surety and shall 29 release and return any bond or security deposited, assigned, 30 pledged, or otherwise provided to it by a taxpayer under this 31 Section within 30 days after: 32 (1) Such Taxpayer becomes a prior continuous compliance 33 taxpayer; or 34 (2) Such taxpayer has ceased to collect receipts on SB856 Enrolled -22- LRB9205820SMdv 1 which he is required to remit tax to the Department, has 2 filed a final tax return, and has paid to the Department an 3 amount sufficient to discharge his remaining tax liability as 4 determined by the Department under this Act. The Department 5 shall make a final determination of the taxpayer's 6 outstanding tax liability as expeditiously as possible after 7 his final tax return has been filed. If the Department 8 cannot make such final determination within 45 days after 9 receiving the final tax return, within such period it shall 10 so notify the taxpayer, stating its reasons therefor. 11 At the time of purchasing such stamps from the Department 12 when purchase is required by this Act, or at the time when 13 the tax which he has collected is remitted by a distributor 14 to the Department without the purchase of stamps from the 15 Department when that method of remitting the tax that has 16 been collected is required or authorized by this Act, the 17 distributor shall be allowed a discount during any year 18 commencing July 1 and ending the following June 30 in 19 accordance with the schedule set out hereinbelow, from the 20 amount to be paid by him to the Department for such stamps, 21 or to be paid by him to the Department on the basis of 22 monthly remittances (as the case may be), to cover the cost, 23 to such distributor, of collecting the tax herein imposed by 24 affixing such stamps to the original packages of cigarettes 25 sold by such distributor or by placing tax imprints 26 underneath the sealed transparent wrapper of original 27 packages of cigarettes sold by such distributor (as the case 28 may be): (1) Prior to December 1, 1985, a discount equal to 29 1-2/3% of the amount of the tax up to and including the first 30 $700,000 paid hereunder by such distributor to the Department 31 during any such year; 1-1/3% of the next $700,000 of tax or 32 any part thereof, paid hereunder by such distributor to the 33 Department during any such year; 1% of the next $700,000 of 34 tax, or any part thereof, paid hereunder by such distributor SB856 Enrolled -23- LRB9205820SMdv 1 to the Department during any such year; and 2/3 of 1% of the 2 amount of any additional tax paid hereunder by such 3 distributor to the Department during any such year or (2) On 4 and after December 1, 1985, a discount equal to 1.75% of the 5 amount of the tax payable under this Act up to and including 6 the first $3,000,000 paid hereunder by such distributor to 7 the Department during any such year and 1.5% of the amount of 8 any additional tax paid hereunder by such distributor to the 9 Department during any such year. 10 Two or more distributors that use a common means of 11 affixing revenue tax stamps or that are owned or controlled 12 by the same interests shall be treated as a single 13 distributor for the purpose of computing the discount. 14 Cigarette manufacturers who are distributors under this 15 Act, and who place their cigarettes in original packages 16 which are contained inside a sealed transparent wrapper, 17 shall be required to remit the tax which they are required to 18 collect under this Act to the Department by remitting the 19 amount thereof to the Department by the 5th day of each 20 month, covering cigarettes shipped or otherwise delivered to 21 points in Illinois to purchasers during the preceding 22 calendar month, but a distributor need not remit to the 23 Department the tax so collected by him from purchasers under 24 this Act to the extent to which such distributor is required 25 to remit the tax imposed by the Cigarette Tax Act to the 26 Department with respect to the same cigarettes. All taxes 27 upon cigarettes under this Act are a direct tax upon the 28 retail consumer and shall conclusively be presumed to be 29 precollected for the purpose of convenience and facility 30 only. Distributors who are manufacturers of cigarettes in 31 original packages which are contained inside a sealed 32 transparent wrapper, before delivering such cigarettes or 33 causing such cigarettes to be delivered in this State to 34 purchasers, shall evidence their obligation to collect and SB856 Enrolled -24- LRB9205820SMdv 1 remit the tax due with respect to such cigarettes by 2 imprinting language to be prescribed by the Department on 3 each original package of such cigarettes underneath the 4 sealed transparent outside wrapper of such original package, 5 in such place thereon and in such manner as the Department 6 may prescribe; provided (as stated hereinbefore) that this 7 requirement does not apply when such distributor is required 8 or authorized by the Cigarette Tax Act to place the tax 9 imprint provided for in the last paragraph of Section 3 of 10 that Act underneath the sealed transparent wrapper of such 11 original package of cigarettes. Such imprinted language shall 12 acknowledge the manufacturer's collection and payment of or 13 liability for the tax imposed by this Act with respect to 14 such cigarettes. 15 The Department shall adopt the design or designs of the 16 tax stamps and shall procure the printing of such stamps in 17 such amounts and denominations as it deems necessary to 18 provide for the affixation of the proper amount of tax stamps 19 to each original package of cigarettes. 20 Where tax stamps are required, the Department may 21 authorize distributors to affix revenue tax stamps by 22 imprinting tax meter stamps upon original packages of 23 cigarettes. The Department shall adopt rules and regulations 24 relating to the imprinting of such tax meter stamps as will 25 result in payment of the proper taxes as herein imposed. No 26 distributor may affix revenue tax stamps to original packages 27 of cigarettes by imprinting meter stamps thereon unless such 28 distributor has first obtained permission from the Department 29 to employ this method of affixation. The Department shall 30 regulate the use of tax meters and may, to assure the proper 31 collection of the taxes imposed by this Act, revoke or 32 suspend the privilege, theretofore granted by the Department 33 to any distributor, to imprint tax meter stamps upon original 34 packages of cigarettes. SB856 Enrolled -25- LRB9205820SMdv 1 The tax hereby imposed and not paid pursuant to this 2 Section shall be paid to the Department directly by any 3 person using such cigarettes within this State, pursuant to 4 Section 12 hereof. 5 (Source: P.A. 91-246, eff. 7-22-99.) 6 (35 ILCS 135/4) (from Ch. 120, par. 453.34) 7 Sec. 4. Distributor's license. A distributor maintaining 8 a place of business in this State, if required to procure a 9 license or allowed to obtain a permit as a distributor under 10 the Cigarette Tax Act, need not obtain an additional license 11 or permit under this Act, but shall be deemed to be 12 sufficiently licensed or registered by virtue of his being 13 licensed or registered under the Cigarette Tax Act. 14 Every distributor maintaining a place of business in this 15 State, if not required to procure a license or allowed to 16 obtain a permit as a distributor under the Cigarette Tax Act, 17 shall make a verified application to the Department (upon a 18 form prescribed and furnished by the Department) for a 19 license to act as a distributor under this Act. In completing 20 such application, the applicant shall furnish such 21 information as the Department may reasonably require. 22 The annual license fee payable to the Department for each 23 distributor's license shall be $250. The purpose of such 24 annual license fee is to defray the cost, to the Department, 25 ofcoding, serializing or coding andserializing cigarette 26 tax stamps. The applicant for license shall pay such fee to 27 the Department at the time of submitting the application for 28 license to the Department. 29 Such applicant shall file, with his application, a joint 30 and several bond. Such bond shall be executed to the 31 Department of Revenue, with good and sufficient surety or 32 sureties residing or licensed to do business within the State 33 of Illinois, in the amount of $2,500, conditioned upon the SB856 Enrolled -26- LRB9205820SMdv 1 true and faithful compliance by the licensee with all of the 2 provisions of this Act. Such bond, or a reissue thereof, or a 3 substitute therefor, shall be kept in effect during the 4 entire period covered by the license. A separate application 5 for license shall be made, a separate annual license fee 6 paid, and a separate bond filed, for each place of business 7 at or from which the applicant proposes to act as a 8 distributor under this Act and for which the applicant is not 9 required to procure a license or allowed to obtain a permit 10 as a distributor under the Cigarette Tax Act. 11 The following are ineligible to receive a distributor's 12 license under this Act: 13 (1) a person who is not of good character and 14 reputation in the community in which he resides; 15 (2) a person who has been convicted of a felony 16 under any Federal or State law, if the Department, after 17 investigation and a hearing, if requested by the 18 applicant, determines that such person has not been 19 sufficiently rehabilitated to warrant the public trust; 20 (3) a corporation, if any officer, manager or 21 director thereof, or any stockholder or stockholders 22 owning in the aggregate more than 5% of the stock of such 23 corporation, would not be eligible to receive a license 24 hereunder for any reason. 25 Upon approval of such application and bond and payment of 26 the required annual license fee, the Department shall issue a 27 license to the applicant. Such license shall permit the 28 applicant to engage in business as a distributor at or from 29 the place shown in his application. All licenses issued by 30 the Department under this Act shall be valid for not to 31 exceed one year after issuance unless sooner revoked, 32 canceled or suspended as in this Act provided. No license 33 issued under this Act is transferable or assignable. Such 34 license shall be conspicuously displayed at the place of SB856 Enrolled -27- LRB9205820SMdv 1 business for which it is issued. 2 Any person aggrieved by any decision of the Department 3 under this Section may, within 20 days after notice of the 4 decision, protest and request a hearing. Upon receiving a 5 request for a hearing, the Department shall give notice to 6 the person requesting the hearing of the time and place fixed 7 for the hearing and shall hold a hearing in conformity with 8 the provisions of this Act and then issue its final 9 administrative decision in the matter to that person. In the 10 absence of a protest and request for a hearing within 20 11 days, the Department's decision shall become final without 12 any further determination being made or notice given. 13 (Source: P.A. 91-901, eff. 1-1-01.) 14 (35 ILCS 135/11) (from Ch. 120, par. 453.41) 15 Sec. 11. Return by distributor or manufacturer. Every 16 distributor, who is required or authorized to collect tax 17 under this Act, but who is not a manufacturer of cigarettes 18 in original packages which are contained in a sealed 19 transparent wrapper, shall, on or before the 15th day of each 20 calendar month, file a return with the Department, showing 21 such information as the Department may reasonably require. 22 The Department may promulgate rules to require that the 23 distributor's return be accompanied by appropriate 24 computer-generated magnetic media supporting schedule data in 25 the format required by the Department, unless, as provided by 26 rule, the Department grants an exception upon petition of a 27 distributor. 28 Illinois manufacturers of cigarettes in original packages 29 which are contained inside a sealed transparent wrapper shall 30 file a return by the 5th day of each month covering the 31 preceding calendar month. Each such return shall be 32 accompanied by the appropriate remittance for tax as provided 33 in Section 3 of this Act. Each such return shall disclose SB856 Enrolled -28- LRB9205820SMdv 1 such information as the Department may lawfully require. Each 2 such return shall be accompanied by a copy of each invoice 3 rendered by such manufacturer to any purchaser to whom such 4 manufacturer delivered cigarettes (or caused cigarettes to be 5 delivered) during the period covered by the return. The 6 Department may promulgate rules to require that the 7 manufacturer's return be accompanied by appropriate 8 computer-generated magnetic media supporting schedule data in 9 the format required by the Department, unless, as provided by 10 rule, the Department grants an exception upon petition of a 11 manufacturer. 12 No distributor shall be required to return information to 13 the extent to which the reporting of such information would 14 be a duplication of such distributor's reporting of 15 information in any return which he is required to file with 16 the Department under the Cigarette Tax Act. Returns shall be 17 filed on forms prescribed by the Department. 18 (Source: Laws 1953, p. 265.) 19 (35 ILCS 135/12) (from Ch. 120, par. 453.42) 20 Sec. 12. Declaration of possession of cigarettes on 21 which tax not paid. 22 (a) When cigarettes are acquired for use in this State 23 by a person (including a distributor as well as any other 24 person), who did not pay the tax herein imposed to a 25 distributor, thesuchperson, within 303days after 26 acquiring thesuchcigarettes, shall file with the Department 27 a return declaring the possession of thesuchcigarettes and 28 shall transmit with the return to the Department the tax 29 imposed by this Act. 30 (b) On receipt of the return and payment of the tax as 31 required by paragraph (a), the Department mayshall issue a32receipt to the person paying the tax and shallfurnish the 33suchperson with a suitable tax stamp to be affixed to the SB856 Enrolled -29- LRB9205820SMdv 1 package of cigarettes upon which the tax has been paid if the 2 Department determines that the cigarettes still exist. 3 (c) The returnand receiptreferred to in paragraph 4paragraphs(a)and (b)shall contain the name and address of 5 the person possessing the cigarettes involved, the location 6 of thesuchcigarettes and the quantity, brand name, place, 7 and date of the acquisition of thesuchcigarettes. 8 (Source: Laws 1957, p. 1196.) 9 (35 ILCS 135/13) (from Ch. 120, par. 453.43) 10 Sec. 13. Examination and correction of return. As soon 11 as practicable after any return is filed, the Department 12 shall examine such return and shall correct such return 13 according to its best judgment and information, which return 14 so corrected by the Department shall be prima facie correct 15 and shall be prima facie evidence of the correctness of the 16 amount of tax due, as shown therein. Proof of such correction 17 by the Department may be made at any hearing before the 18 Department or in any legal proceeding by a reproduced copy of 19 the Department's record relating thereto in the name of the 20 Department under the certificate of the Director of Revenue. 21 Such reproduced copy shall, without further proof, be 22 admitted into evidence before the Department or in any legal 23 proceeding and shall be prima facie proof of the correctness 24 of the amount of tax due, as shown therein. If the tax as 25 fixed by the Department is greater than the amount of the tax 26 due under the return as filed, the Department shall issue the 27 person filing such return a notice of tax liability for the 28 amount of tax claimed by the Department to be due, together 29 with a penalty in an amount determined in accordance with 30 Sections 3-3, 3-5 and 3-6 of the Uniform Penalty and Interest 31 Act. If, in administering the provisions of this Act, 32 comparison of a return or returns of a distributor with the 33 books, records and inventories of such distributor discloses SB856 Enrolled -30- LRB9205820SMdv 1 a deficiency which cannot be allocated by the Department to a 2 particular month or months, the Department shall issue the 3 distributor a notice of tax liability for the amount of tax 4 claimed by the Department to be due for a given period, but 5 without any obligation upon the Department to allocate such 6 deficiency to any particular month or months, together with a 7 penalty in an amount determined in accordance with Sections 8 3-3, 3-5 and 3-6 of the Uniform Penalty and Interest Act, 9 under which circumstances the aforesaid notice of tax 10 liability shall be prima facie correct and shall be prima 11 facie evidence of the correctness of the amount of tax due, 12 as shown therein; and proof of such correctness may be made 13 in accordance with, and the admissibility of a reproduced 14 copy of such notice of tax liability shall be governed by, 15 all the provisions of this Act applicable to corrected 16 returns. 17 If any person filing any return dies or becomes a person 18 under legal disability at any time before the Department 19 issues its notice of tax liability, such notice shall be 20 issued to the administrator, executor or other legal 21 representative, as such, of such person. 22 If within 6020days after such notice of tax liability, 23 the person to whom such notice is issued or his legal 24 representative files a protest to such notice of tax 25 liability and requests a hearing thereon, the Department 26 shall give notice to such person or legal representative of 27 the time and place fixed for such hearing, and shall hold a 28 hearing in conformity with the provisions of this Act, and 29 pursuant thereto shall issue a final assessment to such 30 person or legal representative for the amount found to be due 31 as a result of such hearing. If a protest to the notice of 32 tax liability and a request for a hearing thereon is not 33 filed within 6020days after such notice of tax liability, 34 such notice of tax liability shall become final without the SB856 Enrolled -31- LRB9205820SMdv 1 necessity of a final assessment being issued and shall be 2 deemed to be a final assessment. 3 (Source: P.A. 87-205.) 4 (35 ILCS 135/13a) (from Ch. 120, par. 453.43a) 5 Sec. 13a. Failure to file return. In case any person who 6 is required to file a return under this Act fails to file 7 such return, the Department shall determine the amount of tax 8 due from him according to its best judgment and information, 9 which amount so fixed by the Department shall be prima facie 10 correct and shall be prima facie evidence of the correctness 11 of the amount of tax due, as shown in such determination. 12 Proof of such determination by the Department may be made at 13 any hearing before the Department or in any legal proceeding 14 by a reproduced copy of the Department's record relating 15 thereto in the name of the Department under the certificate 16 of the Director of Revenue. Such reproduced copy shall, 17 without further proof, be admitted into evidence before the 18 Department or in any legal proceeding and shall be prima 19 facie proof of the correctness of the amount of tax due, as 20 shown therein. The Department shall issue such person a 21 notice of tax liability for the amount of tax claimed by the 22 Department to be due, together with a penalty in an amount 23 determined in accordance with Sections 3-3, 3-5 and 3-6 of 24 the Uniform Penalty and Interest Act. If such person or the 25 legal representative of such person, within 6020days after 26 such notice, files a protest to such notice of tax liability 27 and requests a hearing thereon, the Department shall give 28 notice to such person or the legal representative of such 29 person of the time and place fixed for such hearing, and 30 shall hold a hearing in conformity with the provisions of 31 this Act, and pursuant thereto shall issue a final assessment 32 to such person or to the legal representative of such person 33 for the amount found to be due as a result of such hearing. SB856 Enrolled -32- LRB9205820SMdv 1 If a protest to the notice of tax liability and a request for 2 a hearing thereon is not filed within 6020days after such 3 notice of tax liability, such notice of tax liability shall 4 become final without the necessity of a final assessment 5 being issued and shall be deemed to be a final assessment. 6 (Source: P.A. 87-205.) 7 (35 ILCS 135/25b new) 8 Sec. 25b. Possession of not less than 10 and not more 9 than 100 original packages not tax stamped or improperly tax 10 stamped; penalty. With the exception of licensed 11 distributors, anyone possessing not less than 10 and not more 12 than 100 packages of cigarettes contained in original 13 packages that are not tax stamped as required by this Act, or 14 that are improperly tax stamped, is liable to pay to the 15 Department, for deposit into the Tax Compliance and 16 Administration Fund, a penalty of $10 for each such package 17 of cigarettes, unless reasonable cause can be established by 18 the person upon whom the penalty is imposed. Reasonable 19 cause shall be determined in each situation in accordance 20 with rules adopted by the Department. 21 (35 ILCS 135/30) (from Ch. 120, par. 453.60) 22 Sec. 30. Punishment for sale or possession of unstamped 23 packages. Any person other than a licensed distributor who 24 sells, offers for sale, or has in his possession with intent 25 to sell or offer for sale, more than 100anoriginal packages 26package, not tax stamped or tax imprinted underneath the 27 sealed transparent wrapper of such original package in 28 accordance with this Act, shall be guilty of a Class 4 29 felony. 30 Any person other than a licensed distributor who sells, 31 offers for sale, or has in his possession with intent to sell 32 or offer for sale, 100 or fewer original packages, not tax SB856 Enrolled -33- LRB9205820SMdv 1 stamped or tax imprinted underneath the sealed transparent 2 wrapper of the original package in accordance with this Act, 3 is guilty of a Class A misdemeanor for the first offense and 4 a Class 4 felony for each subsequent offense. 5 Any distributor who sells an original package of 6 cigarettes, not tax stamped or tax imprinted underneath the 7 sealed transparent wrapper of such original package in 8 accordance with this Act, except when the sale is made under 9 such circumstances that the tax imposed by this Act may not 10 legally be levied because of the Constitution or laws of the 11 United States, shall be guilty of a Class 3 felony. 12 (Source: P.A. 83-1528.) 13 Section 99. Effective date. This Act takes effect on 14 January 1, 2002. SB856 Enrolled -34- LRB9205820SMdv 1 INDEX 2 Statutes amended in order of appearance 3 35 ILCS 130/3 from Ch. 120, par. 453.3 4 35 ILCS 130/4 from Ch. 120, par. 453.4 5 35 ILCS 130/5 from Ch. 120, par. 453.5 6 35 ILCS 130/9 from Ch. 120, par. 453.9 7 35 ILCS 130/9a from Ch. 120, par. 453.9a 8 35 ILCS 130/9b from Ch. 120, par. 453.9b 9 35 ILCS 130/18c new 10 35 ILCS 130/24 from Ch. 120, par. 453.24 11 35 ILCS 135/3 from Ch. 120, par. 453.33 12 35 ILCS 135/4 from Ch. 120, par. 453.34 13 35 ILCS 135/11 from Ch. 120, par. 453.41 14 35 ILCS 135/12 from Ch. 120, par. 453.42 15 35 ILCS 135/13 from Ch. 120, par. 453.43 16 35 ILCS 135/13a from Ch. 120, par. 453.43a 17 35 ILCS 135/25b new 18 35 ILCS 135/30 from Ch. 120, par. 453.60