Full Text of HB4602 96th General Assembly
HB4602 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB4602
Introduced , by Rep. William B. Black SYNOPSIS AS INTRODUCED: |
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35 ILCS 130/1 |
from Ch. 120, par. 453.1 |
35 ILCS 130/2 |
from Ch. 120, par. 453.2 |
35 ILCS 135/1 |
from Ch. 120, par. 453.31 |
35 ILCS 135/2 |
from Ch. 120, par. 453.32 |
35 ILCS 135/12 |
from Ch. 120, par. 453.42 |
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If and only if Senate Bill 44 of the 96th General Assembly becomes law, amends the Cigarette Tax Act and the Cigarette Use Tax Act. Provides that the additional taxes are imposed as follows: an additional 25 mills per cigarette on September 1, 2009; an additional 12.5 mills per cigarette on September 1, 2010; and an additional 12.5 mills per cigarette on September 1, 2011. Makes changes concerning payments by retailers and distributors who have stamped cigarettes in their possession when the additional taxes take effect on September 1, 2009, September 1, 2010, and September 1, 2011. In the Cigarette Use Tax Act, provides that the additional tax that takes effect on September 1, 2010 is imposed on the privilege of using cigarettes in the State (instead of on retailers). Makes changes to the definition of "cigarette". Makes other changes. Effective immediately.
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A BILL FOR
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HB4602 |
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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. If and only if Senate Bill 44 of the 96th | 5 |
| General Assembly becomes law in the form it passed the Senate, | 6 |
| the Cigarette Tax Act is amended by changing Sections 1 and 2 | 7 |
| as follows:
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| (35 ILCS 130/1) (from Ch. 120, par. 453.1)
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| Sec. 1. For the purposes of this Act:
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| "Cigarette", when used in this Act, shall be construed to | 11 |
| mean: Any
roll for smoking made wholly or in part of tobacco | 12 |
| irrespective of size
or shape and whether or not such tobacco | 13 |
| is flavored, adulterated or
mixed with any other ingredient, | 14 |
| and the wrapper or cover of which is
made of paper or any other | 15 |
| substance or material except whole tobacco leaf . | 16 |
| "Cigarette" when used in this Act, shall also be construed | 17 |
| to mean: any roll for smoking made wholly or in part of tobacco | 18 |
| labeled as anything other than a cigarette or not bearing a | 19 |
| label, if it meets 2 or more of the following criteria: | 20 |
| (a) the product is sold in packs similar to cigarettes; | 21 |
| (b) the product is available for sale in cartons of 10 | 22 |
| packs; | 23 |
| (c) the product is sold in soft packs, hard packs, flip-top |
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| boxes, clam shells, or other cigarette-type boxes; | 2 |
| (d) the product is of a length and diameter found in | 3 |
| commercially-manufactured cigarettes; | 4 |
| (e) the product has a cellulose acetate or other integrated | 5 |
| filter; | 6 |
| (f) the product weighs less than 3 pounds per thousand | 7 |
| sticks; | 8 |
| (g) the product is marketed or advertised to consumers as a | 9 |
| cigarette or cigarette substitute; or | 10 |
| (h) there is other evidence that the product fits within | 11 |
| the definition of cigarette.
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| "Person" means any natural individual, firm, partnership, | 13 |
| association, joint
stock company, joint adventure, public or | 14 |
| private corporation, however formed,
limited liability | 15 |
| company, or a receiver, executor, administrator, trustee,
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| guardian or other representative appointed by order of any | 17 |
| court.
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| "Prior Continuous Compliance Taxpayer" means any person | 19 |
| who is licensed
under this Act and who, having been a licensee | 20 |
| for a continuous period of 5
years, is determined by the | 21 |
| Department not to have been either delinquent
or deficient in | 22 |
| the payment of tax liability during that period or
otherwise in | 23 |
| violation of this Act. Also, any taxpayer who has, as
verified | 24 |
| by the Department, continuously complied with the condition of | 25 |
| his
bond or other security under provisions of this Act for a | 26 |
| period of 5
consecutive years shall be considered to be a |
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| "Prior continuous compliance
taxpayer". In calculating the | 2 |
| consecutive period of time described herein
for qualification | 3 |
| as a "prior continuous compliance taxpayer", a
consecutive | 4 |
| period of time of qualifying compliance immediately prior to
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| the effective date of this amendatory Act of 1987 shall be | 6 |
| credited to any
licensee who became licensed on or before the | 7 |
| effective date of this
amendatory Act of 1987.
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| "Department" means the Department of Revenue.
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| "Sale" means any transfer, exchange or barter in any manner | 10 |
| or by any
means whatsoever for a consideration, and includes | 11 |
| and means all sales
made by any person.
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| "Original Package" means the individual packet, box or | 13 |
| other container
whatsoever used to contain and to convey | 14 |
| cigarettes to the consumer.
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| "Distributor" means any and each of the following:
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| (1) Any person engaged in the business of selling | 17 |
| cigarettes in this
State who brings or causes to be brought | 18 |
| into this State from without
this State any original | 19 |
| packages of cigarettes, on which original
packages there is | 20 |
| no authorized evidence underneath a sealed transparent
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| wrapper showing that the tax liability imposed by this Act | 22 |
| has been paid
or assumed by the out-of-State seller of such | 23 |
| cigarettes, for sale or
other disposition in the course of | 24 |
| such business.
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| (2) Any person who makes, manufactures or fabricates | 26 |
| cigarettes in this
State for sale in this State, except a |
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| person who makes, manufactures
or fabricates cigarettes as | 2 |
| a part of a correctional industries program
for sale to | 3 |
| residents incarcerated in penal institutions or resident | 4 |
| patients
of a State-operated mental health facility.
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| (3) Any person who makes, manufactures or fabricates | 6 |
| cigarettes
outside this State, which cigarettes are placed | 7 |
| in original packages
contained in sealed transparent | 8 |
| wrappers, for delivery or shipment into
this State, and who | 9 |
| elects to qualify and is accepted by the Department
as a | 10 |
| distributor under Section 4b of this Act.
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| "Place of business" shall mean and include any place where | 12 |
| cigarettes
are sold or where cigarettes are manufactured, | 13 |
| stored or kept for the
purpose of sale or consumption, | 14 |
| including any vessel, vehicle, airplane,
train or vending | 15 |
| machine.
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| "Business" means any trade, occupation, activity or | 17 |
| enterprise
engaged in for the purpose of selling cigarettes in | 18 |
| this State.
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| "Retailer" means any person who engages in the making of | 20 |
| transfers of
the ownership of, or title to, cigarettes to a | 21 |
| purchaser for use or
consumption and not for resale in any | 22 |
| form, for a valuable consideration. "Retailer" does not include | 23 |
| a person:
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| (1) who transfers to residents incarcerated in penal | 25 |
| institutions
or resident patients of a State-operated | 26 |
| mental health facility ownership
of cigarettes made, |
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| manufactured, or fabricated as part of a correctional
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| industries program; or | 3 |
| (2) who transfers cigarettes to a not-for-profit | 4 |
| research institution that conducts tests concerning the | 5 |
| health effects of tobacco products and who does not offer | 6 |
| the cigarettes for resale.
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| "Retailer" shall be construed to include any person who | 8 |
| engages in
the making of transfers of the ownership of, or | 9 |
| title to, cigarettes to
a purchaser, for use or consumption by | 10 |
| any other person to whom such
purchaser may transfer the | 11 |
| cigarettes without a valuable consideration,
except a person | 12 |
| who transfers to residents incarcerated in penal institutions
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| or resident patients of a State-operated mental health facility | 14 |
| ownership
of cigarettes made, manufactured or fabricated as | 15 |
| part of a correctional
industries program.
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| (Source: P.A. 95-462, eff. 8-27-07; 09600SB0044eng.)
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| (35 ILCS 130/2) (from Ch. 120, par. 453.2)
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| Sec. 2. Tax imposed; rate; collection, payment, and | 19 |
| distribution;
discount. | 20 |
| (a) A tax is imposed upon any person engaged in business as | 21 |
| a
retailer of cigarettes in this State at the rate of 5 1/2 | 22 |
| mills per
cigarette sold, or otherwise disposed of in the | 23 |
| course of such business in
this State. In addition to any other | 24 |
| tax imposed by this Act, a tax is
imposed upon any person | 25 |
| engaged in business as a retailer of cigarettes in
this State |
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| at a rate of 1/2 mill per cigarette sold or otherwise disposed
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| of in the course of such business in this State on and after | 3 |
| January 1,
1947, and shall be paid into the Metropolitan Fair | 4 |
| and Exposition Authority
Reconstruction Fund or as otherwise | 5 |
| provided in Section 29. On and after December 1, 1985, in | 6 |
| addition to any
other tax imposed by this Act, a tax is imposed | 7 |
| upon any person engaged in
business as a retailer of cigarettes | 8 |
| in this State at a rate of 4 mills per
cigarette sold or | 9 |
| otherwise disposed of in the course of such business in
this | 10 |
| State. Of the additional tax imposed by this amendatory Act of | 11 |
| 1985,
$9,000,000 of the moneys received by the Department of | 12 |
| Revenue pursuant to
this Act shall be paid each month into the | 13 |
| Common School Fund. On and after
the effective date of this | 14 |
| amendatory Act of 1989, in addition to any other tax
imposed by | 15 |
| this Act, a tax is imposed upon any person engaged in business | 16 |
| as a
retailer of cigarettes at the rate of 5 mills per | 17 |
| cigarette sold or
otherwise disposed of in the course of such | 18 |
| business in this State.
On and after the effective date of this | 19 |
| amendatory Act of 1993, in addition
to any other tax imposed by | 20 |
| this Act, a tax is imposed upon any person engaged
in business | 21 |
| as a retailer of cigarettes at the rate of 7 mills per | 22 |
| cigarette
sold or otherwise disposed of in the course of such | 23 |
| business in this State.
On and after December 15, 1997, in | 24 |
| addition
to any other tax imposed by this Act, a tax is imposed | 25 |
| upon any person engaged
in business as a retailer of cigarettes | 26 |
| at the rate of 7 mills per cigarette
sold or otherwise disposed |
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| of in the course of such business of this State.
All of the | 2 |
| moneys received by the Department of Revenue pursuant to this | 3 |
| Act
and the Cigarette Use Tax Act from the additional taxes | 4 |
| imposed by this
amendatory Act of 1997, shall be paid each | 5 |
| month into the Common School Fund.
On and after July 1, 2002, | 6 |
| in addition to any other tax imposed by this Act,
a tax is | 7 |
| imposed upon any person engaged in business as a retailer of
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| cigarettes at the rate of 20.0 mills per cigarette sold or | 9 |
| otherwise disposed
of
in the course of such business in this | 10 |
| State.
Beginning on September 1, 2009, in addition to any other | 11 |
| tax imposed by this Act, a tax is imposed upon any person | 12 |
| engaged in business as a retailer of cigarettes at the rate of | 13 |
| 25 mills per cigarette sold or otherwise disposed of in the | 14 |
| course of such business in this State. Beginning on September | 15 |
| 1, 2010, in addition to any other tax imposed by this Act, a | 16 |
| tax is imposed upon any person engaged in business as a | 17 |
| retailer of cigarettes at the rate of 12.5 25 mills per | 18 |
| cigarette sold or otherwise disposed of in the course of such | 19 |
| business in this State. Beginning on September 1, 2011, in | 20 |
| addition to any other tax imposed by this Act, a tax is imposed | 21 |
| upon any person engaged in business as a retailer of cigarettes | 22 |
| at the rate of 12.5 mills per cigarette sold or otherwise | 23 |
| disposed of in the course of such business in this State. Of | 24 |
| the moneys received by the Department of Revenue under this Act | 25 |
| and the Cigarette Use Tax Act from the additional taxes imposed | 26 |
| by this amendatory Act of the 96th General Assembly: (i) |
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| $54,167 must be paid each month into the Tax Compliance and | 2 |
| Administration Fund for the purpose of cigarette and tobacco | 3 |
| related enforcement, retail inspections, and prevention of | 4 |
| internet and interstate trafficking of contraband cigarettes, | 5 |
| and (ii) the balance must be paid each month into the | 6 |
| Healthcare Provider Relief Fund. The payment of such taxes | 7 |
| shall be evidenced by a stamp affixed to
each original package | 8 |
| of cigarettes, or an authorized substitute for such stamp
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| imprinted on each original package of such cigarettes | 10 |
| underneath the sealed
transparent outside wrapper of such | 11 |
| original package, as hereinafter provided.
However, such taxes | 12 |
| are not imposed upon any activity in such business in
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| interstate commerce or otherwise, which activity may not under
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| the Constitution and statutes of the United States be made the | 15 |
| subject of
taxation by this State.
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| Beginning on the effective date of this amendatory Act of | 17 |
| the 92nd General
Assembly and through June 30, 2006,
all of the | 18 |
| moneys received by the Department of Revenue pursuant to this | 19 |
| Act
and the Cigarette Use Tax Act, other than the moneys that | 20 |
| are dedicated to the Common
School Fund, shall be distributed | 21 |
| each month as follows: first, there shall be
paid into the | 22 |
| General Revenue Fund an amount which, when added to the amount
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| paid into the Common School Fund for that month, equals | 24 |
| $33,300,000, except that in the month of August of 2004, this | 25 |
| amount shall equal $83,300,000; then, from
the moneys | 26 |
| remaining, if any amounts required to be paid into the General
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| Revenue Fund in previous months remain unpaid, those amounts | 2 |
| shall be paid into
the General Revenue Fund;
then, beginning on | 3 |
| April 1, 2003, from the moneys remaining, $5,000,000 per
month | 4 |
| shall be paid into the School Infrastructure Fund; then, if any | 5 |
| amounts
required to be paid into the School Infrastructure Fund | 6 |
| in previous months
remain unpaid, those amounts shall be paid | 7 |
| into the School Infrastructure
Fund;
then the moneys remaining, | 8 |
| if any, shall be paid into the Long-Term Care
Provider Fund.
To | 9 |
| the extent that more than $25,000,000 has been paid into the | 10 |
| General
Revenue Fund and Common School Fund per month for the | 11 |
| period of July 1, 1993
through the effective date of this | 12 |
| amendatory Act of 1994 from combined
receipts
of the Cigarette | 13 |
| Tax Act and the Cigarette Use Tax Act, notwithstanding the
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| distribution provided in this Section, the Department of | 15 |
| Revenue is hereby
directed to adjust the distribution provided | 16 |
| in this Section to increase the
next monthly payments to the | 17 |
| Long Term Care Provider Fund by the amount paid to
the General | 18 |
| Revenue Fund and Common School Fund in excess of $25,000,000 | 19 |
| per
month and to decrease the next monthly payments to the | 20 |
| General Revenue Fund and
Common School Fund by that same excess | 21 |
| amount.
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| Beginning on July 1, 2006, all of the moneys received by | 23 |
| the Department of Revenue pursuant to this Act and the | 24 |
| Cigarette Use Tax Act, other than the moneys that are dedicated | 25 |
| to the Common School Fund and, beginning on the effective date | 26 |
| of this amendatory Act of the 96th General Assembly, other than |
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| the moneys from the additional taxes imposed by this amendatory | 2 |
| Act of the 96th General Assembly that must be paid each month | 3 |
| into the Tax Compliance and Administration Fund and the | 4 |
| Healthcare Provider Relief Fund, shall be distributed each | 5 |
| month as follows: first, there shall be paid into the General | 6 |
| Revenue Fund an amount that, when added to the amount paid into | 7 |
| the Common School Fund for that month, equals $29,200,000; | 8 |
| then, from the moneys remaining, if any amounts required to be | 9 |
| paid into the General Revenue Fund in previous months remain | 10 |
| unpaid, those amounts shall be paid into the General Revenue | 11 |
| Fund; then from the moneys remaining, $5,000,000 per month | 12 |
| shall be paid into the School Infrastructure Fund; then, if any | 13 |
| amounts required to be paid into the School Infrastructure Fund | 14 |
| in previous months remain unpaid, those amounts shall be paid | 15 |
| into the School Infrastructure Fund; then the moneys remaining, | 16 |
| if any, shall be paid into the Long-Term Care Provider Fund.
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| When any tax imposed herein terminates or has terminated, | 18 |
| distributors
who have bought stamps while such tax was in | 19 |
| effect and who therefore paid
such tax, but who can show, to | 20 |
| the Department's satisfaction, that they
sold the cigarettes to | 21 |
| which they affixed such stamps after such tax had
terminated | 22 |
| and did not recover the tax or its equivalent from purchasers,
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| shall be allowed by the Department to take credit for such | 24 |
| absorbed tax
against subsequent tax stamp purchases from the | 25 |
| Department by such
distributor.
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| The impact of the tax levied by this Act is imposed upon |
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| the retailer
and shall be prepaid or pre-collected by the | 2 |
| distributor for the purpose of
convenience and facility only, | 3 |
| and the amount of the tax shall be added to
the price of the | 4 |
| cigarettes sold by such distributor. Collection of the tax
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| shall be evidenced by a stamp or stamps affixed to each | 6 |
| original package of
cigarettes, as hereinafter provided.
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| Each distributor shall collect the tax from the retailer at | 8 |
| or before
the time of the sale, shall affix the stamps as | 9 |
| hereinafter required, and
shall remit the tax collected from | 10 |
| retailers to the Department, as
hereinafter provided. Any | 11 |
| distributor who fails to properly collect and pay
the tax | 12 |
| imposed by this Act shall be liable for the tax. Any | 13 |
| distributor having
cigarettes to which stamps have been affixed | 14 |
| in his possession for sale on the
effective date of this | 15 |
| amendatory Act of 1989 shall not be required to pay the
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| additional tax imposed by this amendatory Act of 1989 on such | 17 |
| stamped
cigarettes. Any distributor having cigarettes to which | 18 |
| stamps have been affixed
in his or her possession for sale at | 19 |
| 12:01 a.m. on the effective date of this
amendatory Act of | 20 |
| 1993, is required to pay the additional tax imposed by this
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| amendatory Act of 1993 on such stamped cigarettes. This | 22 |
| payment, less the
discount provided in subsection (b), shall be | 23 |
| due when the distributor first
makes a purchase of cigarette | 24 |
| tax stamps after the effective date of this
amendatory Act of | 25 |
| 1993, or on the first due date of a return under this Act
after | 26 |
| the effective date of this amendatory Act of 1993, whichever |
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| occurs
first. Any distributor having cigarettes to which stamps | 2 |
| have been affixed
in his possession for sale on December 15, | 3 |
| 1997
shall not be required to pay the additional tax imposed by | 4 |
| this amendatory Act
of 1997 on such stamped cigarettes.
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| Any distributor having cigarettes to which stamps have been | 6 |
| affixed in his
or her
possession for sale on July 1, 2002 shall | 7 |
| not be required to pay the additional
tax imposed by this | 8 |
| amendatory Act of the 92nd General Assembly on those
stamped
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| cigarettes. Any retailer having cigarettes in his or her | 10 |
| possession on September 1, 2009 to which tax stamps have been | 11 |
| affixed is not required to pay the additional tax that begins | 12 |
| of September 1, 2009 imposed by an amendatory Act of the 96th | 13 |
| General Assembly on those stamped cigarettes. Any distributor | 14 |
| having cigarettes in his or her possession on September 1, 2009 | 15 |
| to which tax stamps have been affixed is required to pay the | 16 |
| additional tax that begins on September 1, 2009 imposed by an | 17 |
| amendatory Act of the 96th General Assembly to the extent the | 18 |
| calendar year 2009 average monthly volume of cigarette stamps | 19 |
| in the distributor's possession exceeds the average monthly | 20 |
| volume of cigarette stamps purchased by the distributor in | 21 |
| calendar year 2008. This payment, less the discount provided in | 22 |
| subsection (b), is due when the distributor first makes a | 23 |
| purchase of cigarette stamps on or after September 1, 2009 or | 24 |
| on the first due date of a return under this Act occurring on | 25 |
| or after September 1, 2009, whichever occurs first. | 26 |
| Any retailer having cigarettes in his or her possession on |
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| September 1, 2010 to which tax stamps have been affixed is not | 2 |
| required to pay the additional tax that begins on September 1, | 3 |
| 2010 imposed by an amendatory Act of the 96th General Assembly | 4 |
| on those stamped cigarettes. Any distributor having cigarettes | 5 |
| in his or her possession on September 1, 2010 to which tax | 6 |
| stamps have been affixed is required to pay the additional tax | 7 |
| that begins on September 1, 2010 imposed by an amendatory Act | 8 |
| of the 96th General Assembly to the extent the calendar year | 9 |
| 2010 average monthly volume of cigarette stamps in the | 10 |
| distributor's possession exceeds the average monthly volume of | 11 |
| cigarette stamps purchased by the distributor in calendar year | 12 |
| 2009. This payment, less the discount provided in subsection | 13 |
| (b), is due when the distributor first makes a purchase of | 14 |
| cigarette stamps on or after September 1, 2010 or on the first | 15 |
| due date of a return under this Act occurring on or after | 16 |
| September 1, 2010, whichever occurs first. | 17 |
| Any retailer having cigarettes in his or her possession on | 18 |
| September 1, 2011 to which tax stamps have been affixed is not | 19 |
| required to pay the additional tax that begins of September 1, | 20 |
| 2011 imposed by an amendatory Act of the 96th General Assembly | 21 |
| on those stamped cigarettes. Any distributor having cigarettes | 22 |
| in his or her possession on September 1, 2011 to which tax | 23 |
| stamps have been affixed is required to pay the additional tax | 24 |
| that begins on September 1, 2011 imposed by an amendatory Act | 25 |
| of the 96th General Assembly to the extent the calendar year | 26 |
| 2011 average monthly volume of cigarette stamps in the |
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| distributor's possession exceeds the average monthly volume of | 2 |
| cigarette stamps purchased by the distributor in calendar year | 3 |
| 2010. This payment, less the discount provided in subsection | 4 |
| (b), is due when the distributor first makes a purchase of | 5 |
| cigarette stamps on or after September 1, 2011 or on the first | 6 |
| due date of a return under this Act occurring on or after | 7 |
| September 1, 2011, whichever occurs first. Any distributor | 8 |
| having cigarettes to which stamps have been affixed in his
or | 9 |
| her
possession for sale on or after September 1, 2009 is | 10 |
| required to pay the additional tax imposed by this amendatory | 11 |
| Act of the 96th General Assembly on those stamped cigarettes. | 12 |
| This payment, less the discount provided in subsection (b), is | 13 |
| due when the distributor first makes a purchase of cigarette | 14 |
| tax stamps on or after September 1, 2009 or on the first due | 15 |
| date of a return
under this Act occurring on or after September | 16 |
| 1, 2009, whichever occurs first. Any distributor having | 17 |
| cigarettes to which stamps have been affixed in his
or her
| 18 |
| possession for sale on or after September 1, 2010 is required | 19 |
| to pay the additional tax imposed by this amendatory Act of the | 20 |
| 96th General Assembly on those stamped cigarettes. This | 21 |
| payment, less the discount provided in subsection (b), is due | 22 |
| when the distributor first makes a purchase of cigarette tax | 23 |
| stamps on or after September 1, 2010 or on the first due date | 24 |
| of a return
under this Act occurring on or after September 1, | 25 |
| 2010, whichever occurs first.
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| The amount of the Cigarette Tax imposed by this Act shall |
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| be separately
stated, apart from the price of the goods, by | 2 |
| both distributors and
retailers, in all advertisements, bills | 3 |
| and sales invoices.
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| (b) The distributor shall be required to collect the taxes | 5 |
| provided
under paragraph (a) hereof, and, to cover the costs of | 6 |
| such collection,
shall be allowed a discount during any year | 7 |
| commencing July 1st and ending
the following June 30th in | 8 |
| accordance with the schedule set out
hereinbelow, which | 9 |
| discount shall be allowed at the time of purchase of the
stamps | 10 |
| when purchase is required by this Act, or at the time when the | 11 |
| tax
is remitted to the Department without the purchase of | 12 |
| stamps from the
Department when that method of paying the tax | 13 |
| is required or authorized by
this Act. Prior to December 1, | 14 |
| 1985, a discount equal to 1 2/3% of
the amount of the tax up to | 15 |
| and including the first $700,000 paid hereunder by
such | 16 |
| distributor to the Department during any such year; 1 1/3% of | 17 |
| the next
$700,000 of tax or any part thereof, paid hereunder by | 18 |
| such distributor to the
Department during any such year; 1% of | 19 |
| the next $700,000 of tax, or any part
thereof, paid hereunder | 20 |
| by such distributor to the Department during any such
year, and | 21 |
| 2/3 of 1% of the amount of any additional tax paid hereunder by | 22 |
| such
distributor to the Department during any such year shall | 23 |
| apply. On and after
December 1, 1985, a discount equal to 1.75% | 24 |
| of the amount of the tax payable
under this Act up to and | 25 |
| including the first $3,000,000 paid hereunder by such
| 26 |
| distributor to the Department during any such year and 1.5% of |
|
|
|
HB4602 |
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LRB096 13497 HLH 28231 b |
|
| 1 |
| the amount of
any additional tax paid hereunder by such | 2 |
| distributor to the Department during
any such year shall apply.
| 3 |
| Two or more distributors that use a common means of | 4 |
| affixing revenue tax
stamps or that are owned or controlled by | 5 |
| the same interests shall be
treated as a single distributor for | 6 |
| the purpose of computing the discount.
| 7 |
| (c) The taxes herein imposed are in addition to all other | 8 |
| occupation or
privilege taxes imposed by the State of Illinois, | 9 |
| or by any political
subdivision thereof, or by any municipal | 10 |
| corporation.
| 11 |
| (Source: P.A. 93-839, eff. 7-30-04; 94-91, eff. 7-1-05; 94-839, | 12 |
| eff. 6-6-06; 09600SB0044eng.)
| 13 |
| Section 10. If and only if Senate Bill 44 of the 96th | 14 |
| General Assembly becomes law in the form it passed the Senate, | 15 |
| the Cigarette Use Tax Act is amended by changing Sections 1, 2, | 16 |
| and 12 as follows:
| 17 |
| (35 ILCS 135/1) (from Ch. 120, par. 453.31)
| 18 |
| Sec. 1. For the purpose of this Act, unless otherwise | 19 |
| required by the
context:
| 20 |
| "Use" means the exercise by any person of any right or | 21 |
| power over
cigarettes incident to the ownership or possession | 22 |
| thereof, other than the
making of a sale thereof in the course | 23 |
| of engaging in a business of selling
cigarettes and shall | 24 |
| include the keeping or retention of cigarettes for use. For the |
|
|
|
HB4602 |
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LRB096 13497 HLH 28231 b |
|
| 1 |
| purpose of this Act, "use" does not include the use of | 2 |
| cigarettes by a not-for-profit research institution for the | 3 |
| purpose of conducting tests concerning the health effects of | 4 |
| tobacco products, provided the cigarettes are not offered for | 5 |
| resale.
| 6 |
| "Cigarette" means any roll for smoking made wholly or in | 7 |
| part of tobacco
irrespective of size or shape and whether or | 8 |
| not such tobacco is flavored,
adulterated or mixed with any | 9 |
| other ingredient, and the wrapper or cover of
which is made of | 10 |
| paper or any other substance or material except whole tobacco | 11 |
| leaf . | 12 |
| "Cigarette" when used in this Act, shall also be construed | 13 |
| to mean: any roll for smoking made wholly or in part of tobacco | 14 |
| labeled as anything other than a cigarette or not bearing a | 15 |
| label, if it meets 2 or more of the following criteria: | 16 |
| (a) the product is sold in packs similar to cigarettes; | 17 |
| (b) the product is available for sale in cartons of 10 | 18 |
| packs; | 19 |
| (c) the product is sold in soft packs, hard packs, flip-top | 20 |
| boxes, clam shells, or other cigarette-type boxes; | 21 |
| (d) the product is of a length and diameter found in | 22 |
| commercially-manufactured cigarettes; | 23 |
| (e) the product has a cellulose acetate or other integrated | 24 |
| filter; | 25 |
| (f) the product weighs less than 3 pounds per thousand | 26 |
| sticks; |
|
|
|
HB4602 |
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LRB096 13497 HLH 28231 b |
|
| 1 |
| (g) the product is marketed or advertised to consumers as a | 2 |
| cigarette or cigarette substitute; or | 3 |
| (h) there is other evidence that the product fits within | 4 |
| the definition of cigarette.
| 5 |
| "Person" means any natural individual, firm, partnership, | 6 |
| association,
joint stock company, joint adventure, public or | 7 |
| private corporation,
however formed, limited liability | 8 |
| company, or a receiver, executor,
administrator, trustee, | 9 |
| guardian or other representative appointed by order of
any | 10 |
| court.
| 11 |
| "Department" means the Department of Revenue.
| 12 |
| "Sale" means any transfer, exchange or barter in any manner | 13 |
| or by any
means whatsoever for a consideration, and includes | 14 |
| and means all sales made
by any person.
| 15 |
| "Original Package" means the individual packet, box or | 16 |
| other container
whatsoever used to contain and to convey | 17 |
| cigarettes to the consumer.
| 18 |
| "Distributor" means any and each of the following:
| 19 |
| a. Any person engaged in the business of selling | 20 |
| cigarettes in this
State who brings or causes to be brought | 21 |
| into this State from without this
State any original | 22 |
| packages of cigarettes, on which original packages there
is | 23 |
| no authorized evidence underneath a sealed transparent | 24 |
| wrapper showing
that the tax liability imposed by this Act | 25 |
| has been paid or assumed by the
out-of-State seller of such | 26 |
| cigarettes, for sale in the course of such
business.
|
|
|
|
HB4602 |
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LRB096 13497 HLH 28231 b |
|
| 1 |
| b. Any person who makes, manufactures or fabricates | 2 |
| cigarettes in this
State for sale, except a person who | 3 |
| makes, manufactures or fabricates
cigarettes for sale to | 4 |
| residents incarcerated in penal institutions or resident
| 5 |
| patients or a State-operated mental health facility.
| 6 |
| c. Any person who makes, manufactures or fabricates | 7 |
| cigarettes outside
this State, which cigarettes are placed | 8 |
| in original packages contained in
sealed transparent | 9 |
| wrappers, for delivery or shipment into this State, and
who | 10 |
| elects to qualify and is accepted by the Department as a | 11 |
| distributor
under Section 7 of this Act.
| 12 |
| "Distributor" does not include any person who transfers | 13 |
| cigarettes to a not-for-profit
research institution that | 14 |
| conducts tests concerning the
health effects of tobacco | 15 |
| products and who does not offer
the cigarettes for resale.
| 16 |
| "Distributor maintaining a place of business in this | 17 |
| State", or any like
term, means any distributor having or | 18 |
| maintaining within this State,
directly or by a subsidiary, an | 19 |
| office, distribution house, sales house,
warehouse or other | 20 |
| place of business, or any agent operating within this
State | 21 |
| under the authority of the distributor or its subsidiary,
| 22 |
| irrespective of whether such place of business or agent is | 23 |
| located here
permanently or temporarily, or whether such | 24 |
| distributor or subsidiary is
licensed to transact business | 25 |
| within this State.
| 26 |
| "Business" means any trade, occupation, activity or |
|
|
|
HB4602 |
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LRB096 13497 HLH 28231 b |
|
| 1 |
| enterprise engaged
in or conducted in this State for the | 2 |
| purpose of selling cigarettes.
| 3 |
| "Prior Continuous Compliance Taxpayer" means any person | 4 |
| who is licensed
under this Act and who, having been a licensee | 5 |
| for a continuous period of 5
years, is determined by the | 6 |
| Department not to have been either delinquent
or deficient in | 7 |
| the payment of tax liability during that period or
otherwise in | 8 |
| violation of this Act. Also, any taxpayer who has, as
verified | 9 |
| by the Department, continuously complied with the
condition of | 10 |
| his bond or other security under provisions of this Act of a
| 11 |
| period of 5 consecutive years shall be considered to be a | 12 |
| "prior
continuous compliance taxpayer". In calculating the | 13 |
| consecutive period of
time described herein for qualification | 14 |
| as a "prior continuous compliance
taxpayer", a consecutive | 15 |
| period of time of qualifying compliance
immediately prior to | 16 |
| the effective date of this amendatory Act of 1987 shall be
| 17 |
| credited to any licensee who became licensed on or before the | 18 |
| effective date
of this amendatory Act of 1987.
| 19 |
| (Source: P.A. 95-462, eff. 8-27-07; 09600SB0044eng.)
| 20 |
| (35 ILCS 135/2) (from Ch. 120, par. 453.32)
| 21 |
| Sec. 2. A tax is imposed upon the privilege of using | 22 |
| cigarettes in this
State, at the rate of 6 mills per cigarette | 23 |
| so used. On and after
December 1, 1985, in addition to any | 24 |
| other tax imposed by this Act, a tax
is imposed upon the | 25 |
| privilege of using cigarettes in this State at a rate
of 4 |
|
|
|
HB4602 |
- 21 - |
LRB096 13497 HLH 28231 b |
|
| 1 |
| mills per cigarette so used. On and after the effective date of | 2 |
| this
amendatory Act of 1989, in addition to any other tax | 3 |
| imposed by this Act, a
tax is imposed upon the privilege of | 4 |
| using cigarettes in this State at the
rate of 5 mills per | 5 |
| cigarette so used. On and after the effective date of this
| 6 |
| amendatory Act of 1993, in addition to any other tax imposed by | 7 |
| this Act, a tax
is imposed upon the privilege of using | 8 |
| cigarettes in this State at a rate of 7
mills per cigarette so | 9 |
| used. On and after December 15,
1997, in addition to any other | 10 |
| tax imposed by this Act, a tax
is imposed upon the privilege of | 11 |
| using cigarettes in this State at a rate of
7 mills per | 12 |
| cigarette so used.
On and after July 1, 2002, in addition to | 13 |
| any other tax imposed by
this Act, a tax is imposed
upon the | 14 |
| privilege of using cigarettes in this State at a rate of 20.0 | 15 |
| mills
per cigarette so used. Beginning on September 1, 2009, in | 16 |
| addition to any other tax imposed by this Act, a tax is imposed | 17 |
| upon the privilege of using cigarettes in this State at a rate | 18 |
| of 25 mills per cigarette so used. Beginning on September 1, | 19 |
| 2010, in addition to any other tax imposed by this Act, a tax | 20 |
| is imposed upon the privilege of using any person engaged in | 21 |
| business as a retailer of cigarettes in this State at the rate | 22 |
| of 12.5 25 mills per cigarette so used sold or otherwise | 23 |
| disposed of in the course of such business in this State .
| 24 |
| Beginning on September 1, 2011, in addition to any other tax | 25 |
| imposed by this Act, a tax is imposed upon the privilege of | 26 |
| using cigarettes in this State at the rate of 12.5 mills per |
|
|
|
HB4602 |
- 22 - |
LRB096 13497 HLH 28231 b |
|
| 1 |
| cigarette so used. The taxes herein imposed shall be in
| 2 |
| addition to
all other occupation or privilege taxes imposed by | 3 |
| the State of Illinois or by
any political subdivision thereof | 4 |
| or by any municipal corporation.
| 5 |
| When any tax imposed herein terminates or has terminated, | 6 |
| distributors
who have bought stamps while such tax was in | 7 |
| effect and who therefore paid
such tax, but who can show, to | 8 |
| the Department's satisfaction, that they
sold the cigarettes to | 9 |
| which they affixed such stamps after such tax had
terminated | 10 |
| and did not recover the tax or its equivalent from purchasers,
| 11 |
| shall be allowed by the Department to take credit for such | 12 |
| absorbed tax
against subsequent tax stamp purchases from the | 13 |
| Department by such
distributors.
| 14 |
| When the word "tax" is used in this Act, it shall include | 15 |
| any tax or tax
rate imposed by this Act and shall mean the | 16 |
| singular of "tax" or the plural
"taxes" as the context may | 17 |
| require.
| 18 |
| Any distributor having cigarettes to which stamps have been | 19 |
| affixed in
his possession for sale on the effective date of | 20 |
| this amendatory Act of
1989 shall not be required to pay the | 21 |
| additional tax imposed by this
amendatory Act of 1989 on such | 22 |
| stamped cigarettes. Any distributor having
cigarettes to which | 23 |
| stamps have been affixed in his or her possession for sale
at | 24 |
| 12:01 a.m. on the effective date of this amendatory Act of | 25 |
| 1993, is required
to pay the additional tax imposed by this | 26 |
| amendatory Act of 1993 on such
stamped cigarettes. This payment |
|
|
|
HB4602 |
- 23 - |
LRB096 13497 HLH 28231 b |
|
| 1 |
| shall be due when the distributor first makes
a purchase of | 2 |
| cigarette tax stamps after the effective date of this | 3 |
| amendatory
Act of 1993, or on the first due date of a return | 4 |
| under this Act after the
effective date of this amendatory Act | 5 |
| of 1993, whichever occurs first. Once a
distributor tenders | 6 |
| payment of the additional tax to the Department, the
| 7 |
| distributor may purchase stamps from the Department.
Any | 8 |
| distributor having cigarettes to which stamps have been affixed
| 9 |
| in his possession for sale on December 15, 1997
shall not be | 10 |
| required to pay the additional tax imposed by this amendatory | 11 |
| Act
of 1997 on such stamped cigarettes.
| 12 |
| Any distributor having cigarettes to which stamps have been | 13 |
| affixed in his
or her possession for sale on July 1, 2002 shall | 14 |
| not be required to pay the
additional
tax imposed by this | 15 |
| amendatory Act of the 92nd General Assembly on those
stamped
| 16 |
| cigarettes. Any retailer having cigarettes in his or her | 17 |
| possession on September 1, 2009 to which tax stamps have been | 18 |
| affixed is not required to pay the additional tax that begins | 19 |
| of September 1, 2009 imposed by an amendatory Act of the 96th | 20 |
| General Assembly on those stamped cigarettes. Any distributor | 21 |
| having cigarettes in his or her possession on September 1, 2009 | 22 |
| to which tax stamps have been affixed is required to pay the | 23 |
| additional tax that begins on September 1, 2009 imposed by an | 24 |
| amendatory Act of the 96th General Assembly to the extent the | 25 |
| calendar year 2009 average monthly volume of cigarette stamps | 26 |
| in the distributor's possession exceeds the average monthly |
|
|
|
HB4602 |
- 24 - |
LRB096 13497 HLH 28231 b |
|
| 1 |
| volume of cigarette stamps purchased by the distributor in | 2 |
| calendar year 2008. This payment, less the discount provided in | 3 |
| Section 3, is due when the distributor first makes a purchase | 4 |
| of cigarette stamps on or after September 1, 2009 or on the | 5 |
| first due date of a return under this Act occurring on or after | 6 |
| September 1, 2009, whichever occurs first. | 7 |
| Any retailer having cigarettes in his or her possession on | 8 |
| September 1, 2010 to which tax stamps have been affixed is not | 9 |
| required to pay the additional tax that begins on September 1, | 10 |
| 2010 imposed by an amendatory Act of the 96th General Assembly | 11 |
| on those stamped cigarettes. Any distributor having cigarettes | 12 |
| in his or her possession on September 1, 2010 to which tax | 13 |
| stamps have been affixed is required to pay the additional tax | 14 |
| that begins on September 1, 2010 imposed by an amendatory Act | 15 |
| of the 96th General Assembly to the extent the calendar year | 16 |
| 2010 average monthly volume of cigarette stamps in the | 17 |
| distributor's possession exceeds the average monthly volume of | 18 |
| cigarette stamps purchased by the distributor in calendar year | 19 |
| 2009. This payment, less the discount provided in Section 3, is | 20 |
| due when the distributor first makes a purchase of cigarette | 21 |
| stamps on or after September 1, 2010 or on the first due date | 22 |
| of a return under this Act occurring on or after September 1, | 23 |
| 2010, whichever occurs first. | 24 |
| Any retailer having cigarettes in his or her possession on | 25 |
| September 1, 2011 to which tax stamps have been affixed is not | 26 |
| required to pay the additional tax that begins of September 1, |
|
|
|
HB4602 |
- 25 - |
LRB096 13497 HLH 28231 b |
|
| 1 |
| 2011 imposed by an amendatory Act of the 96th General Assembly | 2 |
| on those stamped cigarettes. Any distributor having cigarettes | 3 |
| in his or her possession on September 1, 2011 to which tax | 4 |
| stamps have been affixed is required to pay the additional tax | 5 |
| that begins on September 1, 2011 imposed by an amendatory Act | 6 |
| of the 96th General Assembly to the extent the calendar year | 7 |
| 2011 average monthly volume of cigarette stamps in the | 8 |
| distributor's possession exceeds the average monthly volume of | 9 |
| cigarette stamps purchased by the distributor in calendar year | 10 |
| 2010. This payment, less the discount provided in Section 3, is | 11 |
| due when the distributor first makes a purchase of cigarette | 12 |
| stamps on or after September 1, 2011 or on the first due date | 13 |
| of a return under this Act occurring on or after September 1, | 14 |
| 2011, whichever occurs first. Any distributor having | 15 |
| cigarettes to which stamps have been affixed in his
or her
| 16 |
| possession for sale on or after September 1, 2009 is required | 17 |
| to pay the additional tax imposed by this amendatory Act of the | 18 |
| 96th General Assembly on those stamped cigarettes. This | 19 |
| payment, less the discount provided in Section 3 of this Act, | 20 |
| is due when the distributor first makes a purchase of cigarette | 21 |
| tax stamps on or after
September 1, 2009 or on the first due | 22 |
| date of a return under this Act occurring on or after September | 23 |
| 1, 2009, whichever occurs first. Any distributor having | 24 |
| cigarettes to which stamps have been affixed in his
or her
| 25 |
| possession for sale on or after September 1, 2010 is required | 26 |
| to pay the additional tax imposed by this amendatory Act of the |
|
|
|
HB4602 |
- 26 - |
LRB096 13497 HLH 28231 b |
|
| 1 |
| 96th General Assembly on those stamped cigarettes. This | 2 |
| payment, less the discount provided in subsection (b), is due | 3 |
| when the distributor first makes a purchase of cigarette tax | 4 |
| stamps on or after September 1, 2010 or on the first due date | 5 |
| of a return
under this Act occurring on or after September 1, | 6 |
| 2010, whichever occurs first.
| 7 |
| (Source: P.A. 92-536, eff. 6-6-02; 09600SB0044eng.)
| 8 |
| (35 ILCS 135/12) (from Ch. 120, par. 453.42)
| 9 |
| Sec. 12. Declaration of possession of cigarettes on which | 10 |
| tax not paid.
| 11 |
| (a) When cigarettes are acquired for use in this State by a | 12 |
| person
(including a distributor as well as any other person), | 13 |
| who did not pay the
tax herein imposed to a distributor, the | 14 |
| person, within 30 days after
acquiring the cigarettes, shall | 15 |
| file with the Department a return
declaring the possession of | 16 |
| the cigarettes and shall transmit with
the
return to the | 17 |
| Department the tax imposed by this Act.
| 18 |
| (b) On receipt of the return and payment of the tax as | 19 |
| required by
paragraph (a), the Department may furnish the | 20 |
| person with a suitable tax stamp
to be
affixed to the package | 21 |
| of cigarettes upon which the tax has been paid
if the | 22 |
| Department determines that the cigarettes still exist.
| 23 |
| (c) The return referred to in paragraph
(a) shall
contain | 24 |
| the name and address of the person possessing the cigarettes
| 25 |
| involved, the location of the cigarettes and the quantity, |
|
|
|
HB4602 |
- 27 - |
LRB096 13497 HLH 28231 b |
|
| 1 |
| brand
name,
place, and date of the acquisition of the | 2 |
| cigarettes.
| 3 |
| (d) The provisions of this Section subsection are not | 4 |
| subject to the Uniform Penalty and
Interest
Act. | 5 |
| (Source: P.A. 92-322, eff. 1-1-02; 09600SB0044eng.)
| 6 |
| Section 99. Effective date. This Act takes effect upon | 7 |
| becoming law. |
|