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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Cigarette Tax Act is amended by changing
5Section 1 as follows:
 
6    (35 ILCS 130/1)  (from Ch. 120, par. 453.1)
7    Sec. 1. For the purposes of this Act:
8    "Brand Style" means a variety of cigarettes distinguished
9by the tobacco used, tar and nicotine content, flavoring used,
10size of the cigarette, filtration on the cigarette or
11packaging.
12    Until July 1, 2012, and beginning July 1, 2013,
13"cigarette", means any roll for smoking made wholly or in part
14of tobacco irrespective of size or shape and whether or not
15such tobacco is flavored, adulterated or mixed with any other
16ingredient, and the wrapper or cover of which is made of paper
17or any other substance or material except tobacco.
18    "Cigarette", beginning on and after July 1, 2012, and
19through June 30, 2013, means any roll for smoking made wholly
20or in part of tobacco irrespective of size or shape and whether
21or not such tobacco is flavored, adulterated, or mixed with any
22other ingredient, and the wrapper or cover of which is made of
23paper.

 

 

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1    "Cigarette", beginning on and after July 1, 2012, and
2through June 30, 2013, also shall mean: Any roll for smoking
3made wholly or in part of tobacco labeled as anything other
4than a cigarette or not bearing a label, if it meets two or
5more of the following criteria:
6        (a) the product is sold in packs similar to cigarettes;
7        (b) the product is available for sale in cartons of ten
8    packs;
9        (c) the product is sold in soft packs, hard packs,
10    flip-top boxes, clam shells, or other cigarette-type
11    boxes;
12        (d) the product is of a length and diameter similar to
13    commercially manufactured cigarettes;
14        (e) the product has a cellulose acetate or other
15    integrated filter;
16        (f) the product is marketed or advertised to consumers
17    as a cigarette or cigarette substitute; or
18        (g) other evidence that the product fits within the
19    definition of cigarette.
20    "Contraband cigarettes" means:
21        (a) cigarettes that do not bear a required tax stamp
22    under this Act;
23        (b) cigarettes for which any required federal taxes
24    have not been paid;
25        (c) cigarettes that bear a counterfeit tax stamp;
26        (d) cigarettes that are manufactured, fabricated,

 

 

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1    assembled, processed, packaged, or labeled by any person
2    other than (i) the owner of the trademark rights in the
3    cigarette brand or (ii) a person that is directly or
4    indirectly authorized by such owner;
5        (e) cigarettes imported into the United States, or
6    otherwise distributed, in violation of the federal
7    Imported Cigarette Compliance Act of 2000 (Title IV of
8    Public Law 106-476);
9        (f) cigarettes that have false manufacturing labels;
10        (g) cigarettes identified in Section 3-10(a)(1) of
11    this Act;
12        (h) cigarettes that are improperly tax stamped,
13    including cigarettes that bear a tax stamp of another state
14    or taxing jurisdiction, or lack a tax stamp required by any
15    political subdivision of Illinois; or
16        (i) cigarettes made or fabricated by a person holding a
17    cigarette machine operator license under Section 1-20 of
18    the Cigarette Machine Operators' Occupation Tax Act in the
19    possession of manufacturers, distributors, secondary
20    distributors, manufacturer representatives or other
21    retailers for the purpose of resale, regardless of whether
22    the tax has been paid on such cigarettes.
23    "Little cigar" has the meaning ascribed to that term in the
24Tobacco Products Tax Act of 1995.
25    "Person" means any natural individual, firm, partnership,
26association, joint stock company, joint adventure, public or

 

 

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1private corporation, however formed, limited liability
2company, or a receiver, executor, administrator, trustee,
3guardian or other representative appointed by order of any
4court.
5    "Prior Continuous Compliance Taxpayer" means any person
6who is licensed under this Act and who, having been a licensee
7for a continuous period of 5 years, is determined by the
8Department not to have been either delinquent or deficient in
9the payment of tax liability during that period or otherwise in
10violation of this Act. Also, any taxpayer who has, as verified
11by the Department, continuously complied with the condition of
12his bond or other security under provisions of this Act for a
13period of 5 consecutive years shall be considered to be a
14"Prior continuous compliance taxpayer". In calculating the
15consecutive period of time described herein for qualification
16as a "prior continuous compliance taxpayer", a consecutive
17period of time of qualifying compliance immediately prior to
18the effective date of this amendatory Act of 1987 shall be
19credited to any licensee who became licensed on or before the
20effective date of this amendatory Act of 1987.
21    "Department" means the Department of Revenue.
22    "Sale" means any transfer, exchange or barter in any manner
23or by any means whatsoever for a consideration, and includes
24and means all sales made by any person.
25    "Original Package" means the individual packet, box or
26other container whatsoever used to contain and to convey

 

 

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1cigarettes to the consumer.
2    "Distributor" means any and each of the following:
3        (1) Any person engaged in the business of selling
4    cigarettes in this State who brings or causes to be brought
5    into this State from without this State any original
6    packages of cigarettes, on which original packages there is
7    no authorized evidence underneath a sealed transparent
8    wrapper showing that the tax liability imposed by this Act
9    has been paid or assumed by the out-of-State seller of such
10    cigarettes, for sale or other disposition in the course of
11    such business.
12        (2) Any person who makes, manufactures or fabricates
13    cigarettes in this State for sale in this State, except a
14    person who makes, manufactures or fabricates cigarettes as
15    a part of a correctional industries program for sale to
16    residents incarcerated in penal institutions or resident
17    patients of a State-operated mental health facility.
18        (3) Any person who makes, manufactures or fabricates
19    cigarettes outside this State, which cigarettes are placed
20    in original packages contained in sealed transparent
21    wrappers, for delivery or shipment into this State, and who
22    elects to qualify and is accepted by the Department as a
23    distributor under Section 4b of this Act.
24    "Place of business" shall mean and include any place where
25cigarettes are sold or where cigarettes are manufactured,
26stored or kept for the purpose of sale or consumption,

 

 

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1including any vessel, vehicle, airplane, train or vending
2machine.
3    "Manufacturer representative" means a director, officer,
4or employee of a manufacturer who has obtained authority from
5the Department under Section 4f to maintain representatives in
6Illinois that provide or sell original packages of cigarettes
7made, manufactured, or fabricated by the manufacturer to
8retailers in compliance with Section 4f of this Act to promote
9cigarettes made, manufactured, or fabricated by the
10manufacturer.
11    "Business" means any trade, occupation, activity or
12enterprise engaged in for the purpose of selling cigarettes in
13this State.
14    "Retailer" means any person who engages in the making of
15transfers of the ownership of, or title to, cigarettes to a
16purchaser for use or consumption and not for resale in any
17form, for a valuable consideration. "Retailer" does not include
18a person:
19        (1) who transfers to residents incarcerated in penal
20    institutions or resident patients of a State-operated
21    mental health facility ownership of cigarettes made,
22    manufactured, or fabricated as part of a correctional
23    industries program; or
24        (2) who transfers cigarettes to a not-for-profit
25    research institution that conducts tests concerning the
26    health effects of tobacco products and who does not offer

 

 

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1    the cigarettes for resale.
2    "Retailer" shall be construed to include any person who
3engages in the making of transfers of the ownership of, or
4title to, cigarettes to a purchaser, for use or consumption by
5any other person to whom such purchaser may transfer the
6cigarettes without a valuable consideration, except a person
7who transfers to residents incarcerated in penal institutions
8or resident patients of a State-operated mental health facility
9ownership of cigarettes made, manufactured or fabricated as
10part of a correctional industries program.
11    "Secondary distributor" means any person engaged in the
12business of selling cigarettes who purchases stamped original
13packages of cigarettes from a licensed distributor under this
14Act or the Cigarette Use Tax Act, sells 75% or more of those
15cigarettes to retailers for resale, and maintains an
16established business where a substantial stock of cigarettes is
17available to retailers for resale.
18    "Stamp" or "stamps" mean the indicia required to be affixed
19on a pack of cigarettes that evidence payment of the tax on
20cigarettes under Section 2 of this Act.
21    "Related party" means any person that is associated with
22any other person because he or she:
23        (a) is an officer or director of a business; or
24        (b) is legally recognized as a partner in business.
25(Source: P.A. 97-587, eff. 8-26-11; 97-688, eff. 6-14-12;
2698-273, eff. 8-9-13.)
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.