Public Act 095-0462
 
SB1433 Enrolled LRB095 04684 BDD 24743 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Cigarette Tax Act is amended by changing
Section 1 as follows:
 
    (35 ILCS 130/1)  (from Ch. 120, par. 453.1)
    Sec. 1. For the purposes of this Act:
    "Cigarette", when used in this Act, shall be construed to
mean: Any roll for smoking made wholly or in part of tobacco
irrespective of size or shape and whether or not such tobacco
is flavored, adulterated or mixed with any other ingredient,
and the wrapper or cover of which is made of paper or any other
substance or material except tobacco.
    "Person" means any natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, however formed, limited liability
company, or a receiver, executor, administrator, trustee,
guardian or other representative appointed by order of any
court.
    "Prior Continuous Compliance Taxpayer" means any person
who is licensed under this Act and who, having been a licensee
for a continuous period of 5 years, is determined by the
Department not to have been either delinquent or deficient in
the payment of tax liability during that period or otherwise in
violation of this Act. Also, any taxpayer who has, as verified
by the Department, continuously complied with the condition of
his bond or other security under provisions of this Act for a
period of 5 consecutive years shall be considered to be a
"Prior continuous compliance taxpayer". In calculating the
consecutive period of time described herein for qualification
as a "prior continuous compliance taxpayer", a consecutive
period of time of qualifying compliance immediately prior to
the effective date of this amendatory Act of 1987 shall be
credited to any licensee who became licensed on or before the
effective date of this amendatory Act of 1987.
    "Department" means the Department of Revenue.
    "Sale" means any transfer, exchange or barter in any manner
or by any means whatsoever for a consideration, and includes
and means all sales made by any person.
    "Original Package" means the individual packet, box or
other container whatsoever used to contain and to convey
cigarettes to the consumer.
    "Distributor" means any and each of the following:
    (1) Any person engaged in the business of selling
cigarettes in this State who brings or causes to be brought
into this State from without this State any original packages
of cigarettes, on which original packages there is no
authorized evidence underneath a sealed transparent wrapper
showing that the tax liability imposed by this Act has been
paid or assumed by the out-of-State seller of such cigarettes,
for sale or other disposition in the course of such business.
    (2) Any person who makes, manufactures or fabricates
cigarettes in this State for sale in this State, except a
person who makes, manufactures or fabricates cigarettes as a
part of a correctional industries program for sale to residents
incarcerated in penal institutions or resident patients of a
State-operated mental health facility.
    (3) Any person who makes, manufactures or fabricates
cigarettes outside this State, which cigarettes are placed in
original packages contained in sealed transparent wrappers,
for delivery or shipment into this State, and who elects to
qualify and is accepted by the Department as a distributor
under Section 4b of this Act.
    "Place of business" shall mean and include any place where
cigarettes are sold or where cigarettes are manufactured,
stored or kept for the purpose of sale or consumption,
including any vessel, vehicle, airplane, train or vending
machine.
    "Business" means any trade, occupation, activity or
enterprise engaged in for the purpose of selling cigarettes in
this State.
    "Retailer" means any person who engages in the making of
transfers of the ownership of, or title to, cigarettes to a
purchaser for use or consumption and not for resale in any
form, for a valuable consideration. "Retailer" does not
include , except a person:
        (1) who transfers to residents incarcerated in penal
    institutions or resident patients of a State-operated
    mental health facility ownership of cigarettes made,
    manufactured, or fabricated as part of a correctional
    industries program; or
        (2) who transfers cigarettes to a not-for-profit
    research institution that conducts tests concerning the
    health effects of tobacco products and who does not offer
    the cigarettes for resale.
    "Retailer" shall be construed to include any person who
engages in the making of transfers of the ownership of, or
title to, cigarettes to a purchaser, for use or consumption by
any other person to whom such purchaser may transfer the
cigarettes without a valuable consideration, except a person
who transfers to residents incarcerated in penal institutions
or resident patients of a State-operated mental health facility
ownership of cigarettes made, manufactured or fabricated as
part of a correctional industries program.
(Source: P.A. 88-480.)
 
    Section 10. The Cigarette Use Tax Act is amended by
changing Section 1 as follows:
 
    (35 ILCS 135/1)  (from Ch. 120, par. 453.31)
    Sec. 1. For the purpose of this Act, unless otherwise
required by the context:
    "Use" means the exercise by any person of any right or
power over cigarettes incident to the ownership or possession
thereof, other than the making of a sale thereof in the course
of engaging in a business of selling cigarettes and shall
include the keeping or retention of cigarettes for use.
    "Cigarette" means any roll for smoking made wholly or in
part of tobacco irrespective of size or shape and whether or
not such tobacco is flavored, adulterated or mixed with any
other ingredient, and the wrapper or cover of which is made of
paper or any other substance or material except tobacco.
    "Person" means any natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, however formed, limited liability
company, or a receiver, executor, administrator, trustee,
guardian or other representative appointed by order of any
court.
    "Department" means the Department of Revenue.
    "Sale" means any transfer, exchange or barter in any manner
or by any means whatsoever for a consideration, and includes
and means all sales made by any person.
    "Original Package" means the individual packet, box or
other container whatsoever used to contain and to convey
cigarettes to the consumer.
    "Distributor" means any and each of the following:
        a. Any person engaged in the business of selling
    cigarettes in this State who brings or causes to be brought
    into this State from without this State any original
    packages of cigarettes, on which original packages there is
    no authorized evidence underneath a sealed transparent
    wrapper showing that the tax liability imposed by this Act
    has been paid or assumed by the out-of-State seller of such
    cigarettes, for sale in the course of such business.
        b. Any person who makes, manufactures or fabricates
    cigarettes in this State for sale, except a person who
    makes, manufactures or fabricates cigarettes for sale to
    residents incarcerated in penal institutions or resident
    patients or a State-operated mental health facility.
        c. Any person who makes, manufactures or fabricates
    cigarettes outside this State, which cigarettes are placed
    in original packages contained in sealed transparent
    wrappers, for delivery or shipment into this State, and who
    elects to qualify and is accepted by the Department as a
    distributor under Section 7 of this Act.
    "Distributor" does not include any person who transfers
cigarettes to a not-for-profit research institution that
conducts tests concerning the health effects of tobacco
products and who does not offer the cigarettes for resale.
    "Distributor maintaining a place of business in this
State", or any like term, means any distributor having or
maintaining within this State, directly or by a subsidiary, an
office, distribution house, sales house, warehouse or other
place of business, or any agent operating within this State
under the authority of the distributor or its subsidiary,
irrespective of whether such place of business or agent is
located here permanently or temporarily, or whether such
distributor or subsidiary is licensed to transact business
within this State.
    "Business" means any trade, occupation, activity or
enterprise engaged in or conducted in this State for the
purpose of selling cigarettes.
    "Prior Continuous Compliance Taxpayer" means any person
who is licensed under this Act and who, having been a licensee
for a continuous period of 5 years, is determined by the
Department not to have been either delinquent or deficient in
the payment of tax liability during that period or otherwise in
violation of this Act. Also, any taxpayer who has, as verified
by the Department, continuously complied with the condition of
his bond or other security under provisions of this Act of a
period of 5 consecutive years shall be considered to be a
"prior continuous compliance taxpayer". In calculating the
consecutive period of time described herein for qualification
as a "prior continuous compliance taxpayer", a consecutive
period of time of qualifying compliance immediately prior to
the effective date of this amendatory Act of 1987 shall be
credited to any licensee who became licensed on or before the
effective date of this amendatory Act of 1987.
(Source: P.A. 88-480.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.