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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Tobacco Products Tax Act of 1995 is amended | |||||||||||||||||||||
5 | by changing Sections 10-10 and 10-30 as follows:
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6 | (35 ILCS 143/10-10)
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7 | Sec. 10-10. Tax imposed. | |||||||||||||||||||||
8 | (a) Except as otherwise provided in this Section with | |||||||||||||||||||||
9 | respect to little cigars, on the first day of the third month | |||||||||||||||||||||
10 | after the
month in which this Act becomes law, a tax is imposed | |||||||||||||||||||||
11 | on any person engaged in
business as a distributor of tobacco | |||||||||||||||||||||
12 | products, as defined in Section 10-5,
at the rate of (i) 18% of | |||||||||||||||||||||
13 | the wholesale price of tobacco products sold or otherwise
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14 | disposed of to retailers or consumers located in this State | |||||||||||||||||||||
15 | prior to July 1, 2012 and (ii) 36% of the wholesale price of | |||||||||||||||||||||
16 | tobacco products sold or otherwise
disposed of to retailers or | |||||||||||||||||||||
17 | consumers located in this State beginning on July 1, 2012; | |||||||||||||||||||||
18 | except that, beginning on January 1, 2013, the tax on moist | |||||||||||||||||||||
19 | snuff shall be imposed at a rate of $0.30 per ounce, and a | |||||||||||||||||||||
20 | proportionate tax at the like rate on all fractional parts of | |||||||||||||||||||||
21 | an ounce, sold or otherwise
disposed of to retailers or | |||||||||||||||||||||
22 | consumers located in this State; and except that, beginning | |||||||||||||||||||||
23 | July 1, 2019,
the tax on electronic cigarettes shall be |
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1 | imposed at the rate of
15% of the wholesale price of electronic | ||||||
2 | cigarettes sold or
otherwise disposed of to retailers or | ||||||
3 | consumers located in this
State. The tax is in
addition to all | ||||||
4 | other
occupation or privilege taxes imposed by the State of | ||||||
5 | Illinois, by any
political subdivision thereof, or by any | ||||||
6 | municipal corporation. However, the
tax is not imposed upon | ||||||
7 | any activity in that business in interstate commerce or
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8 | otherwise, to the extent to which that activity may not, under | ||||||
9 | the Constitution
and Statutes of the United States, be made | ||||||
10 | the subject of taxation by this
State, and except that, | ||||||
11 | beginning July 1, 2013, the tax on little cigars shall be | ||||||
12 | imposed at the same rate, and the proceeds shall be | ||||||
13 | distributed in the same manner, as the tax imposed on | ||||||
14 | cigarettes under the Cigarette Tax Act. The tax is also not | ||||||
15 | imposed on sales made to the United States or any
entity | ||||||
16 | thereof.
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17 | (b) Notwithstanding subsection (a) of this Section, | ||||||
18 | stamping distributors of packages of little cigars containing | ||||||
19 | 20 or 25 little cigars sold or otherwise disposed of in this | ||||||
20 | State shall remit the tax by purchasing tax stamps from the | ||||||
21 | Department and affixing them to packages of little cigars in | ||||||
22 | the same manner as stamps are purchased and affixed to | ||||||
23 | cigarettes under the Cigarette Tax Act, unless the stamping | ||||||
24 | distributor sells or otherwise disposes of those packages of | ||||||
25 | little cigars to another stamping distributor. Only persons | ||||||
26 | meeting the definition of "stamping distributor" contained in |
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1 | Section 10-5 of this Act may affix stamps to packages of little | ||||||
2 | cigars containing 20 or 25 little cigars. Stamping | ||||||
3 | distributors may not sell or dispose of little cigars at | ||||||
4 | retail to consumers or users at locations where stamping | ||||||
5 | distributors affix stamps to packages of little cigars | ||||||
6 | containing 20 or 25 little cigars. | ||||||
7 | (c) The impact of the tax levied by this Act is imposed | ||||||
8 | upon distributors engaged in the business of selling tobacco | ||||||
9 | products to retailers or consumers in this State. Whenever a | ||||||
10 | stamping distributor brings or causes to be brought into this | ||||||
11 | State from without this State, or purchases from without or | ||||||
12 | within this State, any packages of little cigars containing 20 | ||||||
13 | or 25 little cigars upon which there are no tax stamps affixed | ||||||
14 | as required by this Act, for purposes of resale or disposal in | ||||||
15 | this State to a person not a stamping distributor, then such | ||||||
16 | stamping distributor shall pay the tax to the Department and | ||||||
17 | add the amount of the tax to the price of such packages sold by | ||||||
18 | such stamping distributor. Payment of the tax shall be | ||||||
19 | evidenced by a stamp or stamps affixed to each package of | ||||||
20 | little cigars containing 20 or 25 little cigars. | ||||||
21 | Stamping distributors paying the tax to the Department on | ||||||
22 | packages of little cigars containing 20 or 25 little cigars | ||||||
23 | sold to other distributors, wholesalers or retailers shall add | ||||||
24 | the amount of the tax to the price of the packages of little | ||||||
25 | cigars containing 20 or 25 little cigars sold by such stamping | ||||||
26 | distributors. |
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1 | (d) Beginning on January 1, 2013, the tax rate imposed per | ||||||
2 | ounce of moist snuff may not exceed 15% of the tax imposed upon | ||||||
3 | a package of 20 cigarettes pursuant to the Cigarette Tax Act. | ||||||
4 | (d-5) Notwithstanding the provisions of this Section, | ||||||
5 | beginning January 1, 2024, the tax per cigar or other rolled | ||||||
6 | tobacco product sold or otherwise disposed of shall not exceed | ||||||
7 | $0.50 per cigar or roll. | ||||||
8 | (e) All moneys received by the Department under this Act | ||||||
9 | from sales occurring prior to July 1, 2012 shall be paid into
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10 | the Long-Term Care Provider Fund of the State Treasury. Of the | ||||||
11 | moneys received by the Department from sales occurring on or | ||||||
12 | after July 1, 2012, except for moneys received from the tax | ||||||
13 | imposed on the sale of little cigars, 50% shall be paid into | ||||||
14 | the Long-Term Care Provider Fund and 50% shall be paid into the | ||||||
15 | Healthcare Provider Relief Fund. Beginning July 1, 2013, all | ||||||
16 | moneys received by the Department under this Act from the tax | ||||||
17 | imposed on little cigars shall be distributed as provided in | ||||||
18 | Section 2 of the Cigarette Tax Act.
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19 | (Source: P.A. 101-31, eff. 6-28-19.)
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20 | (35 ILCS 143/10-30)
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21 | Sec. 10-30. Returns. | ||||||
22 | (a) Every distributor shall, on or before the 15th day of
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23 | each month, file a return with the Department covering the | ||||||
24 | preceding calendar
month. The return shall disclose the | ||||||
25 | wholesale price for all tobacco products other than moist |
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1 | snuff and the quantity in ounces of moist snuff sold
or | ||||||
2 | otherwise disposed of and other information that the | ||||||
3 | Department may
reasonably require. The return shall be filed | ||||||
4 | upon a form prescribed and
furnished by the Department.
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5 | (b) In addition to the information required under | ||||||
6 | subsection (a), on or before the 15th day of each month, | ||||||
7 | covering the preceding calendar month, each stamping | ||||||
8 | distributor shall, on forms prescribed and furnished by the | ||||||
9 | Department, report the quantity of little cigars sold or | ||||||
10 | otherwise disposed of, including the number of packages of | ||||||
11 | little cigars sold or disposed of during the month containing | ||||||
12 | 20 or 25 little cigars. | ||||||
13 | (c) At the time when any return of any distributor is due | ||||||
14 | to be filed with
the Department, the distributor shall also | ||||||
15 | remit to the Department the
tax liability that the distributor | ||||||
16 | has incurred for transactions
occurring in the preceding | ||||||
17 | calendar month , less the discount allowed .
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18 | (d) The Department may adopt rules to require the | ||||||
19 | electronic filing of any return or document required to be | ||||||
20 | filed under this Act. Those rules may provide for exceptions | ||||||
21 | from the filing requirement set forth in this paragraph for | ||||||
22 | persons who demonstrate that they do not have access to the | ||||||
23 | Internet and petition the Department to waive the electronic | ||||||
24 | filing requirement. | ||||||
25 | (e) If any payment provided for in this Section exceeds | ||||||
26 | the distributor's liabilities under this Act, as shown on an |
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1 | original return, the distributor may credit such excess | ||||||
2 | payment against liability subsequently to be remitted to the | ||||||
3 | Department under this Act, in accordance with reasonable rules | ||||||
4 | adopted by the Department. | ||||||
5 | (f) The distributor required to pay the tax under Section | ||||||
6 | 10-10 shall be entitled to a discount to reimburse the | ||||||
7 | distributor for the expenses incurred in keeping and | ||||||
8 | maintaining records, preparing and filing the returns, | ||||||
9 | remitting the tax, and supplying the data to the Department | ||||||
10 | upon request. The discount shall be 2% of the distributor's | ||||||
11 | tax liability under this Act, but not to exceed $2,000 per | ||||||
12 | return. | ||||||
13 | (Source: P.A. 100-1171, eff. 1-4-19.)
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14 | Section 99. Effective date. This Act takes effect upon | ||||||
15 | becoming law.
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