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Public Act 100-0940 | ||||
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Use Tax Act is amended by changing Section | ||||
11 as follows:
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(35 ILCS 105/11) (from Ch. 120, par. 439.11)
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Sec. 11.
Every retailer required or authorized to collect | ||||
taxes hereunder
and every person using in this State tangible | ||||
personal property purchased
at retail from a retailer on or | ||||
after the effective date hereof shall keep
such records, | ||||
receipts, invoices and other pertinent books, documents,
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memoranda and papers as the Department shall require, in such | ||||
form as the
Department shall require. The Department may adopt | ||||
rules that establish
requirements, including record forms and | ||||
formats, for records required to be
kept and maintained by | ||||
taxpayers. For purposes of this Section, "records" means
all | ||||
data maintained by the taxpayer, including data on paper, | ||||
microfilm,
microfiche or any type of machine-sensible data | ||||
compilation. For the purpose of
administering and enforcing the | ||||
provisions hereof, the Department, or any
officer or employee | ||||
of the Department designated, in writing, by the Director
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thereof, may hold investigations and hearings concerning any | ||||
matters covered
herein and may examine any books, papers, |
records, documents or memoranda of
any retailer or purchaser | ||
bearing upon the sales or purchases of tangible
personal | ||
property, the privilege of using which is taxed hereunder, and | ||
may
require the attendance of such person or any officer or | ||
employee of such
person, or of any person having knowledge of | ||
the facts, and may take testimony
and require proof for its | ||
information.
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Any person who fails to keep books and records or fails to | ||
produce books and records for examination, as required by this | ||
Section and the rules adopted by the Department, is liable to | ||
pay to the Department, for deposit into the Tax Compliance and | ||
Administration Fund, a penalty of $1,000 for the first failure | ||
to keep books and records or produce books and records for | ||
examination and a penalty of $3,000 for each subsequent failure | ||
to keep books and records or produce books and records for | ||
examination as required by this Section and the rules adopted | ||
by the Department. The penalties imposed under this Section | ||
shall not apply if the taxpayer shows that he or she acted with | ||
ordinary business care and prudence. The Department may adopt | ||
rules to administer the penalties under this Section. | ||
(Source: P.A. 88-480.)
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Section 10. The Service Use Tax Act is amended by changing | ||
Section 11 as follows:
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(35 ILCS 110/11) (from Ch. 120, par. 439.41)
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Sec. 11.
Every serviceman required or authorized to collect | ||
taxes hereunder
and every user who is subject to the tax | ||
imposed by this Act shall keep
such records, receipts, invoices | ||
and other pertinent books, documents,
memoranda and papers as | ||
the Department shall require, in such form as the
Department | ||
shall require. The Department may adopt rules that establish
| ||
requirements, including record forms and formats, for records | ||
required to be
kept and maintained by taxpayers. For purposes | ||
of this Section, "records" means
all data maintained by the | ||
taxpayer, including data on paper, microfilm,
microfiche or any | ||
type of machine-sensible data compilation. For the purpose of
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administering and enforcing the provisions hereof, the | ||
Department, or any
officer or employee of the Department | ||
designated, in writing, by the Director
thereof, may hold | ||
investigations and hearings concerning any matters covered
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herein and not otherwise delegated to the Illinois Independent | ||
Tax Tribunal and may examine any relevant books, papers, | ||
records, documents or
memoranda of any serviceman or any | ||
taxable purchaser for use hereunder, and may
require the | ||
attendance of such person or any officer or employee of such
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person, or of any person having knowledge of the facts, and may | ||
take testimony
and require proof for its information.
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Any person who fails to keep books and records or fails to | ||
produce books and records for examination, as required by this | ||
Section and the rules adopted by the Department, is liable to | ||
pay to the Department, for deposit into the Tax Compliance and |
Administration Fund, a penalty of $1,000 for the first failure | ||
to keep books and records or produce books and records for | ||
examination and a penalty of $3,000 for each subsequent failure | ||
to keep books and records or produce books and records for | ||
examination as required by this Section and the rules adopted | ||
by the Department. The penalties imposed under this Section | ||
shall not apply if the taxpayer shows that he or she acted with | ||
ordinary business care and prudence. The Department may adopt | ||
rules to administer the penalties under this Section. | ||
(Source: P.A. 97-1129, eff. 8-28-12.)
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Section 15. The Service Occupation Tax Act is amended by | ||
changing Section 11 as follows:
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(35 ILCS 115/11) (from Ch. 120, par. 439.111)
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Sec. 11.
Every supplier required or authorized to collect | ||
taxes hereunder
and every serviceman making sales of service in | ||
this State on or after the
effective date hereof shall keep | ||
such records, receipts, invoices and other
pertinent books, | ||
documents, memoranda and papers as the Department shall
| ||
require, in such form as the Department shall require.
The | ||
Department may adopt rules that establish requirements, | ||
including record
forms and formats, for records required to be | ||
kept and maintained by taxpayers.
For purposes of this Section, | ||
"records" means all data maintained by the
taxpayer, including | ||
data on paper, microfilm, microfiche or any type of
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machine-sensible data compilation. For the purpose of
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administering and enforcing the provisions hereof, the | ||
Department, or any
officer or employee of the Department | ||
designated, in writing, by the
Director thereof, may hold | ||
investigations and hearings not otherwise delegated to the | ||
Illinois Independent Tax Tribunal concerning any
matters | ||
covered herein and may examine any books, papers, records,
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documents or memoranda of any supplier or serviceman bearing | ||
upon the sales
of services or the sales of tangible personal | ||
property to servicemen, and
may require the attendance of such | ||
person or any officer or employee of
such person, or of any | ||
person having knowledge of the facts, and may take
testimony | ||
and require proof for its information.
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Any person who fails to keep books and records or fails to | ||
produce books and records for examination, as required by this | ||
Section and the rules adopted by the Department, is liable to | ||
pay to the Department, for deposit into the Tax Compliance and | ||
Administration Fund, a penalty of $1,000 for the first failure | ||
to keep books and records or produce books and records for | ||
examination and a penalty of $3,000 for each subsequent failure | ||
to keep books and records or produce books and records for | ||
examination as required by this Section and the rules adopted | ||
by the Department. The penalties imposed under this Section | ||
shall not apply if the taxpayer shows that he or she acted with | ||
ordinary business care and prudence. The Department may adopt | ||
rules to administer the penalties under this Section. |
(Source: P.A. 97-1129, eff. 8-28-12.)
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Section 20. The Retailers' Occupation Tax Act is amended by | ||
changing Section 7 as follows:
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(35 ILCS 120/7) (from Ch. 120, par. 446)
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Sec. 7.
Every person engaged in the business of selling | ||
tangible personal
property at retail in this State shall keep | ||
records and books of all sales
of tangible personal property, | ||
together with invoices, bills of lading,
sales records, copies | ||
of bills of sale, inventories prepared as of December
31 of | ||
each year or otherwise annually as has been the custom in the
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specific trade and other pertinent papers and documents. Every | ||
person who
is engaged in the business of selling tangible | ||
personal property at retail
in this State and who, in | ||
connection with such business, also engages in
other activities | ||
(including, but not limited to, engaging in a service
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occupation) shall keep such additional records and books of all | ||
such
activities as will accurately reflect the character and | ||
scope of such
activities and the amount of receipts realized | ||
therefrom.
The Department may adopt rules that establish | ||
requirements, including record
forms and formats, for records | ||
required to be kept and maintained by taxpayers.
For purposes | ||
of this Section, "records" means all data maintained by the
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taxpayer, including data on paper, microfilm, microfiche or any | ||
type of
machine-sensible data compilation.
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All books and records and other papers and documents which | ||
are required
by this Act to be kept shall be kept in the | ||
English language
and shall, at all times during business hours | ||
of the day, be subject to
inspection by the Department or its | ||
duly authorized agents and employees.
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To support deductions made on the tax return form, or | ||
authorized under
this Act, on account of receipts from isolated | ||
or occasional sales of
tangible personal property, on account | ||
of receipts from sales of tangible
personal property for | ||
resale, on account of receipts from sales to
governmental | ||
bodies or other exempted types of purchasers, on account of
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receipts from sales of tangible personal property in interstate | ||
commerce,
and on account of receipts from any other kind of | ||
transaction that is not
taxable under this Act, entries in any | ||
books, records or other pertinent
papers or documents of the | ||
taxpayer in relation thereto shall be in detail
sufficient to | ||
show the name and address of the taxpayer's customer in each
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such transaction, the character of every such transaction, the | ||
date of
every such transaction, the amount of receipts realized | ||
from every such
transaction and such other information as may | ||
be necessary to establish the
non-taxable character of such | ||
transaction under this Act.
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Except in the case of a sale to a purchaser who will always | ||
resell and
deliver the property to his customers outside | ||
Illinois, anyone claiming
that he has made a nontaxable sale | ||
for resale in some form as tangible
personal property shall |
also keep a record of the purchaser's registration
number or | ||
resale number with the Department.
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It shall be presumed that all sales of tangible personal | ||
property are
subject to tax under this Act until the contrary | ||
is established, and the
burden of proving that a transaction is | ||
not taxable hereunder shall be upon
the person who would be | ||
required to remit the tax to the Department if such
transaction | ||
is taxable. In the course of any audit or investigation or
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hearing by the Department with reference to a given taxpayer, | ||
if the
Department finds that the taxpayer lacks documentary | ||
evidence needed to
support the taxpayer's claim to exemption | ||
from tax hereunder, the
Department is authorized to notify the | ||
taxpayer in writing to produce such
evidence, and the taxpayer | ||
shall have 60 days subject to the right in the
Department to | ||
extend this period either on request for good cause shown or
on | ||
its own motion from the date when such notice is sent to the | ||
taxpayer by
certified or registered mail (or delivered to the | ||
taxpayer if the notice is
served personally) in which to obtain | ||
and produce such evidence for the
Department's inspection, | ||
failing which the matter shall be closed, and the
transaction | ||
shall be conclusively presumed to be taxable hereunder.
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Books and records and other papers reflecting gross | ||
receipts received
during any period with respect to which the | ||
Department is authorized to
issue notices of tax liability as | ||
provided by Sections 4 and 5 of this
Act shall be preserved | ||
until the expiration of such period unless the
Department, in |
writing, shall authorize their destruction or disposal prior
to | ||
such expiration.
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Any person who fails to keep books and records or fails to | ||
produce books and records for examination, as required by this | ||
Section and the rules adopted by the Department, is liable to | ||
pay to the Department, for deposit into the Tax Compliance and | ||
Administration Fund, a penalty of $1,000 for the first failure | ||
to keep books and records or produce books and records for | ||
examination and a penalty of $3,000 for each subsequent failure | ||
to keep books and records or produce books and records for | ||
examination as required by this Section and the rules adopted | ||
by the Department. The penalties imposed under this Section | ||
shall not apply if the taxpayer shows that he or she acted with | ||
ordinary business care and prudence. The Department may adopt | ||
rules to administer the penalties under this Section. | ||
(Source: P.A. 88-480.)
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Section 25. The Cigarette Tax Act is amended by changing | ||
Sections 12, 13, 14, 15, 18b, and 18c and by adding Sections | ||
13a, 15a, and 18d as follows:
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(35 ILCS 130/12) (from Ch. 120, par. 453.12)
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Sec. 12.
Every distributor or secondary distributor who is | ||
required to procure a license under this
Act and who purchases | ||
cigarettes for shipment into Illinois from a point
outside this | ||
State shall procure invoices in duplicate covering each such
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shipment , shall make the invoices available for inspection upon | ||
demand by a duly authorized employee of the Department , and | ||
shall , if the Department so requires, furnish one copy of each | ||
such invoice to the Department
at the time of filing a return | ||
or a report required by this Act.
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(Source: P.A. 96-1027, eff. 7-12-10.)
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(35 ILCS 130/13) (from Ch. 120, par. 453.13)
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Sec. 13.
Whenever any original package of cigarettes is | ||
found in the place
of business or in the possession of any | ||
person who is not a licensed
distributor under this Act without | ||
proper stamps affixed thereto, or an
authorized substitute | ||
therefor imprinted thereon, underneath the sealed
transparent | ||
wrapper of such original package, as required by this Act, the
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prima facie presumption shall arise that such original package | ||
of
cigarettes is kept therein or is held by such person in | ||
violation of the
provisions of this Act. If a presumption is | ||
raised, the Department may, in addition to the penalties | ||
imposed by Sections 18b and 18c of this Act and any other civil | ||
or criminal penalties provided for in this Act, assess tax, | ||
penalty, and interest on the original packages of cigarettes.
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(Source: Laws 1953, p. 255.)
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(35 ILCS 130/13a new) | ||
Sec. 13a. Contraband cigarettes. Whenever a retailer | ||
obtains original packages of cigarettes from an unlicensed |
in-state or out-of-state distributor or person, a prima facie | ||
presumption shall arise that such original packages of | ||
cigarettes are contraband and are possessed by such retailer or | ||
were possessed by such retailer in violation of the provisions | ||
of this Act and subject to the penalties imposed by Sections | ||
18b and 18c of this Act. Invoices or other documents kept in | ||
the normal course of business in the possession of a retailer | ||
reflecting purchases of original packages of cigarettes from an | ||
unlicensed in-state or out-of-state distributor or person or | ||
invoices or other documents kept in the normal course of | ||
business obtained by the Department from an in-state or | ||
out-of-state distributor or person, are sufficient to raise the | ||
presumption that such original packages of cigarettes are | ||
contraband and are possessed, or were possessed, by such | ||
retailer in violation of the provisions of this Act and the | ||
retailer is subject to the penalties imposed by Sections 18b | ||
and 18c. If a presumption is raised, the Department may, in | ||
addition to the penalties imposed by Sections 18b and 18c and | ||
any other civil or criminal penalties provided for in this Act, | ||
assess tax, penalty, and interest on the original packages of | ||
cigarettes.
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(35 ILCS 130/14) (from Ch. 120, par. 453.14)
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Sec. 14.
Any person required by this Act to keep records of | ||
any kind whatsoever,
who shall fail to keep the records so | ||
required or who shall falsify such
records, shall be guilty of |
a Class 4 felony. If a person fails to produce the records for | ||
inspection by the Department upon request, a prima facie | ||
presumption shall arise that the person has failed to keep the | ||
records so required. A person who is unable to rebut this | ||
presumption is in violation of this Act and is subject to the | ||
penalties provided in this Section.
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(Source: P.A. 83-1428.)
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(35 ILCS 130/15) (from Ch. 120, par. 453.15)
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Sec. 15.
Any person who shall fail to safely maintain and | ||
preserve the records required
by Sections Section 11 , and | ||
Section 11a , 11b, and 11c of this Act for the period of 3 three | ||
years, as required therein,
in such manner as to insure | ||
permanency and accessibility for inspection by the
Department, | ||
shall be guilty of a business offense and may be fined up to
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$5,000.
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(Source: P.A. 96-1027, eff. 7-12-10.)
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(35 ILCS 130/15a new) | ||
Sec. 15a. Failure to keep or produce books and records. Any | ||
person who fails to keep books and records or fails to produce | ||
books and records for inspection, as required by Sections 11, | ||
11a, 11b, and 11c of this Act, is liable to pay to the | ||
Department, for deposit in the Tax Compliance and | ||
Administration Fund, a penalty of $1,000 for the first failure | ||
to keep books and records or failure to produce books and |
records for inspection, as required by Sections 11, 11a, 11b, | ||
and 11c, and $3,000 for each subsequent failure to keep books | ||
and records or failure to produce books and records for | ||
inspection, as required by Sections 11, 11a, 11b, and 11c. The | ||
Department may adopt rules to administer the penalties under | ||
this Section.
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(35 ILCS 130/18b) (from Ch. 120, par. 453.18b)
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Sec. 18b. Possession of more than 100 original packages of | ||
contraband cigarettes; penalty. With the exception of licensed | ||
distributors and transporters, as defined in Section 9c of this | ||
Act, possessing unstamped original packages of cigarettes, and | ||
licensed distributors possessing original packages of | ||
cigarettes that bear a tax stamp of another state or taxing | ||
jurisdiction, anyone possessing
or having possessed contraband | ||
cigarettes contained in original packages is liable
to pay, to | ||
the Department for deposit in the Tax Compliance and | ||
Administration Fund, a penalty of
$25 for each such package of | ||
cigarettes in excess of 100 packages, unless reasonable cause | ||
can be established by the person upon whom the penalty is | ||
imposed. This penalty is in addition to the taxes imposed by | ||
this Act. Reasonable cause shall be determined in each | ||
situation in accordance with rules adopted by the Department. | ||
The provisions of the Uniform Penalty and Interest Act do not | ||
apply to this Section.
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(Source: P.A. 96-782, eff. 1-1-10.)
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(35 ILCS 130/18c)
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Sec. 18c.
Possession of
not less than 10 and not
more than
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100 original packages of contraband cigarettes; penalty. With | ||
the exception of licensed distributors and transporters, as | ||
defined in Section 9c of this Act, possessing unstamped | ||
original packages of cigarettes, and licensed distributors | ||
possessing original packages of cigarettes that bear a tax | ||
stamp of another state or taxing jurisdiction,
anyone | ||
possessing or having possessed
not less than 10
and not more | ||
than 100 packages of
contraband cigarettes contained in | ||
original packages is
liable to pay to the Department, for | ||
deposit into the Tax Compliance and
Administration Fund, a | ||
penalty of $15 $10
for each such package of
cigarettes, unless | ||
reasonable cause can be established by the person upon whom
the | ||
penalty is imposed. Reasonable cause shall be determined in | ||
each situation
in accordance with rules adopted by the | ||
Department. The provisions of the Uniform Penalty and Interest | ||
Act do not apply to this Section.
| ||
(Source: P.A. 96-782, eff. 1-1-10.)
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(35 ILCS 130/18d new) | ||
Sec. 18d. Cigarette package sizes; sale of individual or | ||
loose cigarettes prohibited. Cigarettes may only be sold in | ||
packages of 20 or 25 cigarettes. The sale of individual or | ||
loose cigarettes is prohibited. Any person who violates this |
Section of the Act is liable to pay to the Department, for | ||
deposit in the Tax Compliance and Administration Fund, a | ||
penalty of $1,000 for the first violation and $3,000 for any | ||
subsequent violation. Any person who violates this Section | ||
shall be guilty of a Class 4 felony. The Department may adopt | ||
rules to administer the penalties under this Section. | ||
Section 30. The Cigarette Use Tax Act is amended by | ||
changing Sections 12, 22, 23, 25a, and 25b and by adding | ||
Sections 8a, 23a, and 25c as follows: | ||
(35 ILCS 135/8a new) | ||
Sec. 8a. Contraband cigarettes. Whenever any person | ||
obtains original packages of cigarettes from an unlicensed | ||
in-state or out-of-state distributor or person, a prima facie | ||
presumption shall arise that such original packages of | ||
cigarettes are contraband and are possessed or were possessed | ||
by such person in violation of the provisions of this Act and | ||
subject to the penalties imposed by Sections 25a and 25b. | ||
Invoices or other documents kept in the normal course of | ||
business in the possession of a person reflecting purchases of | ||
original packages of cigarettes from an unlicensed in-state or | ||
out-of-state distributor or person or invoices or other | ||
documents kept in the normal course of business obtained by the | ||
Department from an in-state or out-of-state distributor or | ||
person, are sufficient to raise the presumption that such |
original packages of cigarettes are contraband and are | ||
possessed, or were possessed, by such person in violation of | ||
the provisions of this Act and the person is subject to the | ||
penalties imposed by Sections 25a and 25b. If a presumption is | ||
raised, the Department may, in addition to the penalties | ||
imposed by Sections 25a and 25b and any other civil or criminal | ||
penalties provided for in this Act, assess tax, penalty, and | ||
interest on the original packages of cigarettes.
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(35 ILCS 135/12) (from Ch. 120, par. 453.42)
| ||
Sec. 12. Declaration of possession of cigarettes on which | ||
tax not paid.
| ||
(a) When cigarettes are acquired for use in this State by a | ||
person
(including a distributor as well as any other person), | ||
who did not pay the
tax herein imposed to a distributor, the | ||
person, within 30 days after
acquiring the cigarettes, shall | ||
file with the Department a return
declaring the possession of | ||
the cigarettes and shall transmit with
the
return to the | ||
Department the tax imposed by this Act.
| ||
(b) On receipt of the return and payment of the tax as | ||
required by
paragraph (a), the Department may furnish the | ||
person with a suitable tax stamp
to be
affixed to the package | ||
of cigarettes upon which the tax has been paid
if the | ||
Department determines that the cigarettes still exist.
| ||
(c) The return referred to in paragraph
(a) shall
contain | ||
the name and address of the person possessing the cigarettes
|
involved, the location of the cigarettes and the quantity, | ||
brand
name,
place, and date of the acquisition of the | ||
cigarettes.
| ||
(d) Nothing in this Section shall permit a secondary | ||
distributor to purchase unstamped original packages of | ||
cigarettes or to purchase original packages of cigarettes from | ||
a person other than a licensed distributor. | ||
(e) Any distributor who violates this Section is liable to | ||
pay to the Department, for deposit in the Tax Compliance and | ||
Administration Fund, a penalty of $1,000 for the first | ||
violation and $3,000 for any subsequent violation. The | ||
Department may adopt rules to administer the penalties under | ||
this Section. The Department may, in addition to the penalties | ||
imposed by this Section, and any other civil or criminal | ||
penalties provided for in this Act, assess tax, penalty, and | ||
interest on the original packages of cigarettes. | ||
(Source: P.A. 96-1027, eff. 7-12-10.)
| ||
(35 ILCS 135/22) (from Ch. 120, par. 453.52)
| ||
Sec. 22.
Any person required by this Act to maintain or | ||
keep records of any kind whatsoever,
who shall fail to keep the | ||
records so required or who shall falsify such
records, shall be | ||
guilty of a Class 4 felony A misdemeanor . If a person fails to | ||
produce the records for inspection by the Department upon | ||
request, a prima facie presumption shall arise that the person | ||
has failed to keep the records so required. A person who is |
unable to rebut this presumption is in violation of this Act | ||
and is subject to the penalties provided in this Section.
| ||
This Section shall not apply if the violation in a | ||
particular case also
constitutes a criminal violation of the | ||
Cigarette Tax Act.
| ||
(Source: P.A. 77-2229 .)
| ||
(35 ILCS 135/23) (from Ch. 120, par. 453.53)
| ||
Sec. 23.
Any person who shall fail to safely preserve the | ||
records required
by Section 15 and Section 15a of this Act for | ||
the period of three (3) years, as required
therein, in such | ||
manner as to insure permanency and accessibility for
inspection | ||
by the Department, shall be guilty of a business offense and | ||
may
be fined up to $5,000 One Thousand Dollars ($1000) .
| ||
This Section shall not apply if the violation in a | ||
particular case also
constitutes a criminal violation of the | ||
Cigarette Tax Act.
| ||
(Source: P.A. 96-1027, eff. 7-12-10.)
| ||
(35 ILCS 135/23a new) | ||
Sec. 23a. Failure to keep or produce books and records. Any | ||
person who fails to keep books and records or fails to produce | ||
books and records for inspection, as required by Sections 15 | ||
and 15a of this Act, is liable to pay to the Department, for | ||
deposit in the Tax Compliance and Administration Fund, a | ||
penalty of $1,000 for the first failure to keep books and |
records or failure to produce books and records for inspection, | ||
as required by Sections 15 and 15a, and $3,000 for each | ||
subsequent failure to keep books and records or failure to | ||
produce books and records for inspection, as required by | ||
Sections 15 and 15a. The Department may adopt rules to | ||
administer the penalties under this Section.
| ||
(35 ILCS 135/25a) (from Ch. 120, par. 453.55a)
| ||
Sec. 25a. Possession of more than 100 original packages of | ||
contraband cigarettes; penalty. With the exception of licensed | ||
distributors or transporters, as defined in Section 9c of the | ||
Cigarette Tax Act, possessing unstamped original packages of | ||
cigarettes, and licensed distributors possessing original | ||
packages of cigarettes that bear a tax stamp of another state | ||
or taxing jurisdiction, anyone possessing or having possessed
| ||
more than 100 packages of contraband cigarettes contained in | ||
original packages is liable
to pay, to the Department for | ||
deposit into the Tax Compliance and Administration Fund, a | ||
penalty of
$25 for each such package of cigarettes in excess of | ||
100 packages, unless reasonable cause can be established by the | ||
person upon whom the penalty is imposed. Reasonable cause shall | ||
be determined in each situation in accordance with rules | ||
adopted by the Department. The provisions of the Uniform | ||
Penalty and Interest Act do not apply to this Section.
| ||
(Source: P.A. 96-782, eff. 1-1-10.)
|
(35 ILCS 135/25b)
| ||
Sec. 25b.
Possession of
not less than 10 and not
more than
| ||
100 original packages not tax stamped or
improperly tax | ||
stamped; penalty. With the exception of licensed distributors | ||
and transporters, as defined in Section 9c of the Cigarette Tax | ||
Act, possessing unstamped packages of cigarettes, and licensed | ||
distributors possessing original packages of cigarettes that | ||
bear a tax stamp of another state or taxing jurisdiction,
| ||
anyone possessing or having possessed
not less than 10
and not | ||
more than 100 packages of
contraband cigarettes contained in | ||
original packages is
liable to pay to the Department, for | ||
deposit into the Tax Compliance and
Administration Fund, a | ||
penalty of $20
for each such package of
cigarettes, unless | ||
reasonable cause can be established by the person upon whom
the | ||
penalty is imposed. Reasonable cause shall be determined in | ||
each situation
in accordance with rules adopted by the | ||
Department. Any person who purchases and possesses a total of 9 | ||
or fewer original packages of unstamped cigarettes per month is | ||
exempt from the penalties of this Section. The provisions of | ||
the Uniform Penalty and Interest Act do not apply to this | ||
Section.
| ||
(Source: P.A. 96-782, eff. 1-1-10.)
| ||
(35 ILCS 135/25c new) | ||
Sec. 25c. Cigarette package sizes; sale of individual or | ||
loose cigarettes prohibited. Cigarettes may only be sold in |
packages of 20 or 25 cigarettes. The sale of individual or | ||
loose cigarettes is prohibited. Any person who violates this | ||
Section is liable to pay to the Department, for deposit in the | ||
Tax Compliance and Administration Fund, a penalty of $1,000 for | ||
the first violation and $3,000 for any subsequent violation. | ||
Any person who violates this Section shall be guilty of a Class | ||
4 felony. This Section shall not apply if the violation in a | ||
particular case also constitutes a violation of the Cigarette | ||
Tax Act. | ||
Section 35. The Tobacco Products Tax Act of 1995 is amended | ||
by changing Sections 10-25, 10-35, 10-37, 10-40, and 10-50 and | ||
by adding Sections 10-35a and 10-38 as follows:
| ||
(35 ILCS 143/10-25)
| ||
Sec. 10-25. License actions. | ||
(a) The Department may, after notice and a hearing,
revoke, | ||
cancel, or suspend the license of any distributor or retailer | ||
who violates any of
the provisions of this Act , fails to keep | ||
books and records as required under this Act, fails to make | ||
books and records available for inspection upon demand by a | ||
duly authorized employee of the Department, or violates a rule | ||
or regulation of the Department for the administration and | ||
enforcement of this Act . The notice shall specify the alleged | ||
violation or
violations upon which the revocation, | ||
cancellation, or suspension proceeding is
based.
|
(b) The Department may revoke, cancel, or suspend the | ||
license of any
distributor for a violation of the Tobacco | ||
Product Manufacturers' Escrow
Enforcement Act as provided in | ||
Section 20 of that Act.
| ||
(c) If the retailer has a training program that facilitates | ||
compliance with minimum-age tobacco laws, the Department shall | ||
suspend for 3 days the license of that retailer for a fourth or | ||
subsequent violation of the Prevention of Tobacco Use by Minors | ||
and Sale and Distribution of Tobacco Products Act, as provided | ||
in subsection (a) of Section 2 of that Act. For the purposes of | ||
this Section, any violation of subsection (a) of Section 2 of | ||
the Prevention of Tobacco Use by Minors and Sale and | ||
Distribution of Tobacco Products Act occurring at the | ||
retailer's licensed location, during a 24-month period, shall | ||
be counted as a violation against the retailer. | ||
If the retailer does not have a training program that | ||
facilitates compliance with minimum-age tobacco laws, the | ||
Department shall suspend for 3 days the license of that | ||
retailer for a second violation of the Prevention of Tobacco | ||
Use by Minors and Sale and Distribution of Tobacco Products | ||
Act, as provided in subsection (a-5) of Section 2 of that Act. | ||
If the retailer does not have a training program that | ||
facilitates compliance with minimum-age tobacco laws, the | ||
Department shall suspend for 7 days the license of that | ||
retailer for a third violation of the Prevention of Tobacco Use | ||
by Minors and Sale and Distribution of Tobacco Products Act, as |
provided in subsection (a-5) of Section 2 of that Act. | ||
If the retailer does not have a training program that | ||
facilitates compliance with minimum-age tobacco laws, the | ||
Department shall suspend for 30 days the license of a retailer | ||
for a fourth or subsequent violation of the Prevention of | ||
Tobacco Use by Minors and Sale and Distribution of Tobacco | ||
Products Act, as provided in subsection (a-5) of Section 2 of | ||
that Act. | ||
A training program that facilitates compliance with | ||
minimum-age tobacco laws must include at least the following | ||
elements: (i) it must explain that only individuals displaying | ||
valid identification demonstrating that they are 18 years of | ||
age or older shall be eligible to purchase cigarettes or | ||
tobacco products and (ii) it must explain where a clerk can | ||
check identification for a date of birth. The training may be | ||
conducted electronically. Each retailer that has a training | ||
program shall require each employee who completes the training | ||
program to sign a form attesting that the employee has received | ||
and completed tobacco training. The form shall be kept in the | ||
employee's file and may be used to provide proof of training. | ||
(d) The Department may, by application to any circuit | ||
court, obtain an injunction
restraining any person who engages | ||
in business as a distributor of tobacco
products without a | ||
license (either because his or her license has been revoked,
| ||
canceled, or suspended or because of a failure to obtain a | ||
license in the first
instance) from engaging in that business |
until that person, as if that person
were a new applicant for a | ||
license, complies with all of the conditions,
restrictions, and | ||
requirements of Section 10-20 of this Act and qualifies for
and | ||
obtains a license. Refusal or neglect to obey the order of the | ||
court may
result in punishment for contempt.
| ||
(Source: P.A. 98-1055, eff. 1-1-16; 99-192, eff. 1-1-16 .)
| ||
(35 ILCS 143/10-35)
| ||
Sec. 10-35. Record keeping. | ||
(a) Every distributor, as defined in Section 10-5,
shall | ||
keep complete and accurate records of tobacco products held, | ||
purchased,
manufactured, brought in or caused to be brought in | ||
from without the State, and
tobacco products sold, or otherwise | ||
disposed of, and shall preserve and keep
all invoices, bills of | ||
lading, sales records, and copies of bills
of sale, the | ||
wholesale price for tobacco products sold or otherwise disposed
| ||
of, an inventory of tobacco products prepared as of December 31 | ||
of each year or
as of the last day of the distributor's fiscal | ||
year if he or she files federal
income tax returns on the basis | ||
of a fiscal year, and other pertinent papers
and documents | ||
relating to the manufacture, purchase, sale, or disposition of
| ||
tobacco products. Every sales invoice issued by a licensed | ||
distributor to a retailer in this State shall contain the | ||
distributor's Tobacco Products License number unless the | ||
distributor has been granted a waiver by the Department in | ||
response to a written request in cases where (i) the |
distributor sells little cigars or other tobacco products only | ||
to licensed retailers that are wholly-owned by the distributor | ||
or owned by a wholly-owned subsidiary of the distributor; (ii) | ||
the licensed retailer obtains little cigars or other tobacco | ||
products only from the distributor requesting the waiver; and | ||
(iii) the distributor affixes the tax stamps to the original | ||
packages of little cigars or has or will pay the tax on the | ||
other tobacco products sold to the licensed retailer. The | ||
distributor shall file a written request with the Department, | ||
and, if the Department determines that the distributor meets | ||
the conditions for a waiver, the Department shall grant the | ||
waiver. | ||
(b) Every retailer, as defined in Section 10-5, whether or | ||
not the retailer has obtained a retailer's license pursuant to | ||
Section 4g, shall keep complete and accurate records of tobacco | ||
products held, purchased, sold, or otherwise disposed of, and | ||
shall preserve and keep all invoices, bills of lading, sales | ||
records, and copies of bills of sale, returns and other | ||
pertinent papers and documents relating to the purchase, sale, | ||
or disposition of tobacco products. Such records need not be | ||
maintained on the licensed premises, but must be maintained in | ||
the State of Illinois; however, if access is available | ||
electronically, the records may be maintained out of state. | ||
However, all original invoices or copies thereof covering | ||
purchases of tobacco products must be retained on the licensed | ||
premises for a period of 90 days after such purchase, unless |
the Department has granted a waiver in response to a written | ||
request in cases where records are kept at a central business | ||
location within the State of Illinois or in cases where records | ||
that are available electronically are maintained out of state. | ||
The Department shall adopt rules regarding the eligibility for | ||
a waiver, revocation of a waiver, and requirements and | ||
standards for maintenance and accessibility of records located | ||
at a central location out-of-State pursuant to a waiver | ||
provided under this Section. | ||
(c) Books, records, papers, and documents that are
required | ||
by this Act to be kept shall, at all times during the usual | ||
business
hours of the day, be subject to inspection by the | ||
Department or its duly
authorized agents and employees. The | ||
books, records, papers, and documents for
any period with | ||
respect to which the Department is authorized to issue a notice
| ||
of tax liability shall be preserved until the expiration of | ||
that period.
| ||
(Source: P.A. 98-1055, eff. 1-1-16; 99-192, eff. 1-1-16 .)
| ||
(35 ILCS 143/10-35a new) | ||
Sec. 10-35a. Failure to keep or produce books and records. | ||
Any person who fails to keep books and records or fails to | ||
produce books and records for inspection, as required by | ||
Section 10-35, is liable to pay to the Department, for deposit | ||
in the Tax Compliance and Administration Fund, a penalty of | ||
$1,000 for the first failure to keep books and records or |
failure to produce books and records for inspection, as | ||
required by Section 10-35, and $3,000 for each subsequent | ||
failure to keep books and records or failure to produce books | ||
and records for inspection, as required by Section 10-35. The | ||
Department may adopt rules to administer the penalties under | ||
this Section. | ||
(35 ILCS 143/10-37) | ||
Sec. 10-37. Proof of payment of tax imposed by this Act. | ||
Every licensed distributor of tobacco products in this State is | ||
required to show proof of the tax having been paid as required | ||
by this Act by displaying its Tobacco Products License number | ||
on every sales invoice issued to a retailer in this State. No | ||
retailer shall possess tobacco products without either a proper | ||
invoice indicating that the tobacco products tax was paid by a | ||
distributor for the tobacco products in the retailer's | ||
possession or other proof that the tax was paid by the retailer | ||
if it has purchased tobacco products on which tax has not been | ||
paid as required by this Act. Failure to comply with the | ||
provisions of this paragraph may be grounds for revocation of a | ||
distributor's or retailer's license in accordance with Section | ||
10-25 of this Act or Section 6 of the Cigarette Tax Act. In | ||
addition, the Department may impose a civil penalty not to | ||
exceed $1,000 for the first violation and $3,000 for each | ||
subsequent violation, which shall be deposited into the Tax | ||
Compliance and Administration Fund.
|
(Source: P.A. 98-1055, eff. 1-1-16 .) | ||
(35 ILCS 143/10-38 new) | ||
Sec. 10-38. Presumption for unlicensed distributors or | ||
persons. Whenever any person obtains tobacco products from an | ||
unlicensed in-state or out-of-state distributor or person, a | ||
prima facie presumption shall arise that the tax imposed by | ||
this Act on such tobacco products has not been paid in | ||
violation of this Act. Invoices or other documents kept in the | ||
normal course of business in the possession of a person | ||
reflecting purchases of tobacco products from an unlicensed | ||
in-state or out-of-state distributor or person or invoices or | ||
other documents kept in the normal course of business obtained | ||
by the Department from in-state or out-of-state distributors or | ||
persons, are sufficient to raise the presumption that the tax | ||
imposed by this Act has not been paid. If a presumption is | ||
raised, the Department may assess tax, penalty, and interest on | ||
the tobacco products. In addition, any person who violates this | ||
Section is liable to pay to the Department, for deposit in the | ||
Tax Compliance and Administration Fund, a penalty of $1,000 for | ||
the first violation and $3,000 for any subsequent violation. | ||
The Department may adopt rules to administer the penalties | ||
under this Section.
| ||
(35 ILCS 143/10-40)
| ||
Sec. 10-40. Invoices. Every distributor or other person who |
purchases tobacco products for resale
for shipment into | ||
Illinois from a point outside Illinois shall procure invoices
| ||
in duplicate covering each shipment and shall make the invoices | ||
available for inspection upon demand by a duly authorized | ||
employee of the Department, and shall , if the Department so
| ||
requires, furnish one copy of each invoice to the Department at | ||
the time
of filing the return required by this Act.
| ||
(Source: P.A. 89-21, eff. 6-6-95.)
| ||
(35 ILCS 143/10-50)
| ||
Sec. 10-50. Violations and penalties. When the amount due | ||
is under $300,
any distributor who fails to file a return, | ||
willfully fails or refuses to
make any payment to the | ||
Department of the tax imposed by this Act, or files
a | ||
fraudulent return, or any officer or agent of a corporation | ||
engaged in the
business of distributing tobacco products to | ||
retailers and consumers
located in this State who signs a | ||
fraudulent
return filed on behalf of the corporation, or any | ||
accountant or other agent
who knowingly enters false | ||
information on the return of any taxpayer under this
Act is | ||
guilty of a Class 4 felony.
| ||
Any person who violates any provision of Section 10-20, | ||
10-21, or 10-22 of this Act, fails
to keep books and records as | ||
required under this Act, or willfully violates a
rule or | ||
regulation of the Department for the administration and | ||
enforcement of
this Act is guilty of a Class 4 felony. A person |
commits a separate offense on
each day that he or she engages | ||
in business in violation of Section 10-20, 10-21, or 10-22 of
| ||
this Act. If a person fails to produce the books and records | ||
for inspection by the Department upon request, a prima facie | ||
presumption shall arise that the person has failed to keep | ||
books and records as required under this Act. A person who is | ||
unable to rebut this presumption is in violation of this Act | ||
and is subject to the penalties provided in this Section.
| ||
When the amount due is under $300, any person who accepts | ||
money that is due
to the Department under this Act from a | ||
taxpayer for the purpose of acting as
the taxpayer's agent to | ||
make the payment to the Department, but who fails to
remit the | ||
payment to the Department when due, is guilty of a Class 4 | ||
felony.
| ||
Any person who violates any provision of Sections 10-20, | ||
10-21 and 10-22 of this Act, fails to keep books and records as | ||
required under this Act, or willfully violates a rule or | ||
regulation of the Department for the administration and | ||
enforcement of this Act is guilty of a business offense and may | ||
be fined up to $5,000. If a person fails to produce books and | ||
records for inspection by the Department upon request, a prima | ||
facie presumption shall arise that the person has failed to | ||
keep books and records as required under this Act. A person who | ||
is unable to rebut this presumption is in violation of this Act | ||
and is subject to the penalties provided in this Section. A | ||
person commits a separate offense on each day that he or she |
engages in business in violation of Sections 10-20, 10-21 and | ||
10-22 of this Act. | ||
When the amount due is $300 or more, any distributor who | ||
files,
or causes to be filed, a fraudulent return, or any | ||
officer or agent of a
corporation engaged in the business of | ||
distributing tobacco products
to retailers and consumers | ||
located in this State who files or causes to be
filed or signs | ||
or causes
to be signed a fraudulent return filed on behalf of | ||
the corporation, or
any accountant or other agent who knowingly | ||
enters false information on
the return of any taxpayer under | ||
this Act is guilty of a Class 3 felony.
| ||
When the amount due is $300 or more, any person engaged in | ||
the business
of distributing tobacco products to retailers and | ||
consumers located in this
State who fails to file a return,
| ||
willfully fails or refuses to make any payment to the | ||
Department of the tax
imposed by this Act, or accepts money | ||
that is due to the Department under
this Act from a taxpayer | ||
for the purpose of acting as the taxpayer's agent to
make | ||
payment to the Department but fails to remit such payment to | ||
the
Department when due is guilty of a Class 3 felony.
| ||
When the amount due is under $300, any retailer who fails | ||
to file a return, willfully fails or refuses to make any | ||
payment to the Department of the tax imposed by this Act, or | ||
files a fraudulent return, or any officer or agent of a | ||
corporation engaged in the retail business of selling tobacco | ||
products to purchasers of tobacco products for use and |
consumption located in this State who signs a fraudulent return | ||
filed on behalf of the corporation, or any accountant or other | ||
agent who knowingly enters false information on the return of | ||
any taxpayer under this Act is guilty of a Class A misdemeanor | ||
for a first offense and a Class 4 felony for each subsequent | ||
offense. | ||
When the amount due is $300 or more, any retailer who fails | ||
to file a return, willfully fails or refuses to make any | ||
payment to the Department of the tax imposed by this Act, or | ||
files a fraudulent return, or any officer or agent of a | ||
corporation engaged in the retail business of selling tobacco | ||
products to purchasers of tobacco products for use and | ||
consumption located in this State who signs a fraudulent return | ||
filed on behalf of the corporation, or any accountant or other | ||
agent who knowingly enters false information on the return of | ||
any taxpayer under this Act is guilty of a Class 4 felony. | ||
Any person whose principal place of business is in this | ||
State and
who is charged with a violation under this Section | ||
shall be
tried in the county where his or her principal place | ||
of business is
located unless he or she asserts a right to be | ||
tried in another venue.
If the taxpayer does not have his or | ||
her principal place of business
in this State, however, the | ||
hearing must be held in Sangamon County unless
the taxpayer | ||
asserts a right to be tried in another venue.
| ||
Any taxpayer or agent of a taxpayer who with the intent to | ||
defraud
purports to make a payment due to the Department by |
issuing or delivering a
check or other order upon a real or | ||
fictitious depository for the payment
of money, knowing that it | ||
will not be paid by the depository, is
guilty of a deceptive | ||
practice in violation of Section 17-1 of the Criminal
Code of | ||
2012.
| ||
A prosecution for a violation described in this Section may | ||
be commenced
within 3 years after the commission of the act | ||
constituting the violation.
| ||
(Source: P.A. 100-201, eff. 8-18-17.)
| ||
(35 ILCS 143/10-36 rep.) | ||
Section 40. The Tobacco Products Tax Act of 1995 is amended | ||
by repealing Section 10-36.
| ||
Section 99. Effective date. This Act takes effect upon | ||
becoming law.
|