Sen. Antonio Muņoz

Filed: 4/22/2015

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 509

2    AMENDMENT NO. ______. Amend Senate Bill 509 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1or any other substance or material except tobacco.
2    "Cigarette", beginning on and after July 1, 2012, and
3through June 30, 2013, means any roll for smoking made wholly
4or in part of tobacco irrespective of size or shape and whether
5or not such tobacco is flavored, adulterated, or mixed with any
6other ingredient, and the wrapper or cover of which is made of
7paper.
8    "Cigarette", beginning on and after July 1, 2012, and
9through June 30, 2013, also shall mean: Any roll for smoking
10made wholly or in part of tobacco labeled as anything other
11than a cigarette or not bearing a label, if it meets two or
12more of the following criteria:
13        (a) the product is sold in packs similar to cigarettes;
14        (b) the product is available for sale in cartons of ten
15    packs;
16        (c) the product is sold in soft packs, hard packs,
17    flip-top boxes, clam shells, or other cigarette-type
18    boxes;
19        (d) the product is of a length and diameter similar to
20    commercially manufactured cigarettes;
21        (e) the product has a cellulose acetate or other
22    integrated filter;
23        (f) the product is marketed or advertised to consumers
24    as a cigarette or cigarette substitute; or
25        (g) other evidence that the product fits within the
26    definition of cigarette.

 

 

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1    "Contraband cigarettes" means:
2        (a) cigarettes that do not bear a required tax stamp
3    under this Act;
4        (b) cigarettes for which any required federal taxes
5    have not been paid;
6        (c) cigarettes that bear a counterfeit tax stamp;
7        (d) cigarettes that are manufactured, fabricated,
8    assembled, processed, packaged, or labeled by any person
9    other than (i) the owner of the trademark rights in the
10    cigarette brand or (ii) a person that is directly or
11    indirectly authorized by such owner;
12        (e) cigarettes imported into the United States, or
13    otherwise distributed, in violation of the federal
14    Imported Cigarette Compliance Act of 2000 (Title IV of
15    Public Law 106-476);
16        (f) cigarettes that have false manufacturing labels;
17        (g) cigarettes identified in Section 3-10(a)(1) of
18    this Act;
19        (h) cigarettes that are improperly tax stamped,
20    including cigarettes that bear a tax stamp of another state
21    or taxing jurisdiction, or lack a tax stamp required by any
22    political subdivision of Illinois; or
23        (i) cigarettes made or fabricated by a person holding a
24    cigarette machine operator license under Section 1-20 of
25    the Cigarette Machine Operators' Occupation Tax Act in the
26    possession of manufacturers, distributors, secondary

 

 

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1    distributors, manufacturer representatives or other
2    retailers for the purpose of resale, regardless of whether
3    the tax has been paid on such cigarettes.
4    "Little cigar" has the meaning ascribed to that term in the
5Tobacco Products Tax Act of 1995.
6    "Person" means any natural individual, firm, partnership,
7association, joint stock company, joint adventure, public or
8private corporation, however formed, limited liability
9company, or a receiver, executor, administrator, trustee,
10guardian or other representative appointed by order of any
11court.
12    "Prior Continuous Compliance Taxpayer" means any person
13who is licensed under this Act and who, having been a licensee
14for a continuous period of 5 years, is determined by the
15Department not to have been either delinquent or deficient in
16the payment of tax liability during that period or otherwise in
17violation of this Act. Also, any taxpayer who has, as verified
18by the Department, continuously complied with the condition of
19his bond or other security under provisions of this Act for a
20period of 5 consecutive years shall be considered to be a
21"Prior continuous compliance taxpayer". In calculating the
22consecutive period of time described herein for qualification
23as a "prior continuous compliance taxpayer", a consecutive
24period of time of qualifying compliance immediately prior to
25the effective date of this amendatory Act of 1987 shall be
26credited to any licensee who became licensed on or before the

 

 

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1effective date of this amendatory Act of 1987.
2    "Department" means the Department of Revenue.
3    "Sale" means any transfer, exchange or barter in any manner
4or by any means whatsoever for a consideration, and includes
5and means all sales made by any person.
6    "Original Package" means the individual packet, box or
7other container whatsoever used to contain and to convey
8cigarettes to the consumer.
9    "Distributor" means any and each of the following:
10        (1) Any person engaged in the business of selling
11    cigarettes in this State who brings or causes to be brought
12    into this State from without this State any original
13    packages of cigarettes, on which original packages there is
14    no authorized evidence underneath a sealed transparent
15    wrapper showing that the tax liability imposed by this Act
16    has been paid or assumed by the out-of-State seller of such
17    cigarettes, for sale or other disposition in the course of
18    such business.
19        (2) Any person who makes, manufactures or fabricates
20    cigarettes in this State for sale in this State, except a
21    person who makes, manufactures or fabricates cigarettes as
22    a part of a correctional industries program for sale to
23    residents incarcerated in penal institutions or resident
24    patients of a State-operated mental health facility.
25        (3) Any person who makes, manufactures or fabricates
26    cigarettes outside this State, which cigarettes are placed

 

 

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1    in original packages contained in sealed transparent
2    wrappers, for delivery or shipment into this State, and who
3    elects to qualify and is accepted by the Department as a
4    distributor under Section 4b of this Act.
5    "Place of business" shall mean and include any place where
6cigarettes are sold or where cigarettes are manufactured,
7stored or kept for the purpose of sale or consumption,
8including any vessel, vehicle, airplane, train or vending
9machine.
10    "Manufacturer representative" means a director, officer,
11or employee of a manufacturer who has obtained authority from
12the Department under Section 4f to maintain representatives in
13Illinois that provide or sell original packages of cigarettes
14made, manufactured, or fabricated by the manufacturer to
15retailers in compliance with Section 4f of this Act to promote
16cigarettes made, manufactured, or fabricated by the
17manufacturer.
18    "Business" means any trade, occupation, activity or
19enterprise engaged in for the purpose of selling cigarettes in
20this State.
21    "Retailer" means any person who engages in the making of
22transfers of the ownership of, or title to, cigarettes to a
23purchaser for use or consumption and not for resale in any
24form, for a valuable consideration. "Retailer" does not include
25a person:
26        (1) who transfers to residents incarcerated in penal

 

 

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1    institutions or resident patients of a State-operated
2    mental health facility ownership of cigarettes made,
3    manufactured, or fabricated as part of a correctional
4    industries program; or
5        (2) who transfers cigarettes to a not-for-profit
6    research institution that conducts tests concerning the
7    health effects of tobacco products and who does not offer
8    the cigarettes for resale.
9    "Retailer" shall be construed to include any person who
10engages in the making of transfers of the ownership of, or
11title to, cigarettes to a purchaser, for use or consumption by
12any other person to whom such purchaser may transfer the
13cigarettes without a valuable consideration, except a person
14who transfers to residents incarcerated in penal institutions
15or resident patients of a State-operated mental health facility
16ownership of cigarettes made, manufactured or fabricated as
17part of a correctional industries program.
18    "Secondary distributor" means any person engaged in the
19business of selling cigarettes who purchases stamped original
20packages of cigarettes from a licensed distributor under this
21Act or the Cigarette Use Tax Act, sells 75% or more of those
22cigarettes to retailers for resale, and maintains an
23established business where a substantial stock of cigarettes is
24available to retailers for resale.
25    "Stamp" or "stamps" mean the indicia required to be affixed
26on a pack of cigarettes that evidence payment of the tax on

 

 

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1cigarettes under Section 2 of this Act.
2    "Related party" means any person that is associated with
3any other person because he or she:
4        (a) is an officer or director of a business; or
5        (b) is legally recognized as a partner in business.
6(Source: P.A. 97-587, eff. 8-26-11; 97-688, eff. 6-14-12;
798-273, eff. 8-9-13.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.".