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91_HB3151
LRB9110410SMdv
1 AN ACT to amend the Cigarette Tax Act by changing Section
2 2.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Cigarette Tax Act is amended by changing
6 Section 2 as follows:
7 (35 ILCS 130/2) (from Ch. 120, par. 453.2)
8 Sec. 2. Tax imposed; rate; collection, payment, and
9 distribution; discount.
10 (a) A tax is imposed upon any person engaged in business
11 as a retailer of cigarettes in Illinois this State at the
12 rate of 5 1/2 mills per cigarette sold, or otherwise disposed
13 of in the course of such business in this State. In addition
14 to any other tax imposed by this Act, a tax is imposed upon
15 any person engaged in business as a retailer of cigarettes in
16 this State at a rate of 1/2 mill per cigarette sold or
17 otherwise disposed of in the course of such business in this
18 State on and after January 1, 1947, and shall be paid into
19 the Metropolitan Fair and Exposition Authority Reconstruction
20 Fund. On and after December 1, 1985, in addition to any other
21 tax imposed by this Act, a tax is imposed upon any person
22 engaged in business as a retailer of cigarettes in this State
23 at a rate of 4 mills per cigarette sold or otherwise disposed
24 of in the course of such business in this State. Of the
25 additional tax imposed by this amendatory Act of 1985,
26 $9,000,000 of the moneys received by the Department of
27 Revenue pursuant to this Act shall be paid each month into
28 the Common School Fund. On and after the effective date of
29 this amendatory Act of 1989, in addition to any other tax
30 imposed by this Act, a tax is imposed upon any person engaged
31 in business as a retailer of cigarettes at the rate of 5
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1 mills per cigarette sold or otherwise disposed of in the
2 course of such business in this State. On and after the
3 effective date of this amendatory Act of 1993, in addition to
4 any other tax imposed by this Act, a tax is imposed upon any
5 person engaged in business as a retailer of cigarettes at the
6 rate of 7 mills per cigarette sold or otherwise disposed of
7 in the course of such business in this State. On and after
8 December 15, 1997, in addition to any other tax imposed by
9 this Act, a tax is imposed upon any person engaged in
10 business as a retailer of cigarettes at the rate of 7 mills
11 per cigarette sold or otherwise disposed of in the course of
12 such business of this State. All of the moneys received by
13 the Department of Revenue pursuant to this Act and the
14 Cigarette Use Tax Act from the additional taxes imposed by
15 this amendatory Act of 1997, shall be paid each month into
16 the Common School Fund. The payment of such taxes shall be
17 evidenced by a stamp affixed to each original package of
18 cigarettes, or an authorized substitute for such stamp
19 imprinted on each original package of such cigarettes
20 underneath the sealed transparent outside wrapper of such
21 original package, as hereinafter provided. However, such
22 taxes are not imposed upon any activity in such business in
23 interstate commerce or otherwise, which activity may not
24 under the Constitution and statutes of the United States be
25 made the subject of taxation by this State.
26 Beginning on the effective date of this amendatory Act of
27 1998, all of the moneys received by the Department of Revenue
28 pursuant to this Act and the Cigarette Use Tax Act, other
29 than the moneys that are dedicated to the Metropolitan Fair
30 and Exposition Authority Reconstruction Fund and the Common
31 School Fund, shall be distributed each month as follows:
32 first, there shall be paid into the General Revenue Fund an
33 amount which, when added to the amount paid into the Common
34 School Fund for that month, equals $33,300,000; then, from
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1 the moneys remaining, if any amounts required to be paid into
2 the General Revenue Fund in previous months remain unpaid,
3 those amounts shall be paid into the General Revenue Fund;
4 then the moneys remaining, if any, shall be paid into the
5 Long-Term Care Provider Fund. To the extent that more than
6 $25,000,000 has been paid into the General Revenue Fund and
7 Common School Fund per month for the period of July 1, 1993
8 through the effective date of this amendatory Act of 1994
9 from combined receipts of the Cigarette Tax Act and the
10 Cigarette Use Tax Act, notwithstanding the distribution
11 provided in this Section, the Department of Revenue is hereby
12 directed to adjust the distribution provided in this Section
13 to increase the next monthly payments to the Long Term Care
14 Provider Fund by the amount paid to the General Revenue Fund
15 and Common School Fund in excess of $25,000,000 per month and
16 to decrease the next monthly payments to the General Revenue
17 Fund and Common School Fund by that same excess amount.
18 When any tax imposed herein terminates or has terminated,
19 distributors who have bought stamps while such tax was in
20 effect and who therefore paid such tax, but who can show, to
21 the Department's satisfaction, that they sold the cigarettes
22 to which they affixed such stamps after such tax had
23 terminated and did not recover the tax or its equivalent from
24 purchasers, shall be allowed by the Department to take credit
25 for such absorbed tax against subsequent tax stamp purchases
26 from the Department by such distributor.
27 The impact of the tax levied by this Act is imposed upon
28 the retailer and shall be prepaid or pre-collected by the
29 distributor for the purpose of convenience and facility only,
30 and the amount of the tax shall be added to the price of the
31 cigarettes sold by such distributor. Collection of the tax
32 shall be evidenced by a stamp or stamps affixed to each
33 original package of cigarettes, as hereinafter provided.
34 Each distributor shall collect the tax from the retailer
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1 at or before the time of the sale, shall affix the stamps as
2 hereinafter required, and shall remit the tax collected from
3 retailers to the Department, as hereinafter provided. Any
4 distributor who fails to properly collect and pay the tax
5 imposed by this Act shall be liable for the tax. Any
6 distributor having cigarettes to which stamps have been
7 affixed in his possession for sale on the effective date of
8 this amendatory Act of 1989 shall not be required to pay the
9 additional tax imposed by this amendatory Act of 1989 on such
10 stamped cigarettes. Any distributor having cigarettes to
11 which stamps have been affixed in his or her possession for
12 sale at 12:01 a.m. on the effective date of this amendatory
13 Act of 1993, is required to pay the additional tax imposed by
14 this amendatory Act of 1993 on such stamped cigarettes. This
15 payment, less the discount provided in subsection (b), shall
16 be due when the distributor first makes a purchase of
17 cigarette tax stamps after the effective date of this
18 amendatory Act of 1993, or on the first due date of a return
19 under this Act after the effective date of this amendatory
20 Act of 1993, whichever occurs first. Any distributor having
21 cigarettes to which stamps have been affixed in his
22 possession for sale on December 15, 1997 shall not be
23 required to pay the additional tax imposed by this amendatory
24 Act of 1997 on such stamped cigarettes.
25 The amount of the Cigarette Tax imposed by this Act shall
26 be separately stated, apart from the price of the goods, by
27 both distributors and retailers, in all advertisements, bills
28 and sales invoices.
29 (b) The distributor shall be required to collect the
30 taxes provided under paragraph (a) hereof, and, to cover the
31 costs of such collection, shall be allowed a discount during
32 any year commencing July 1st and ending the following June
33 30th in accordance with the schedule set out hereinbelow,
34 which discount shall be allowed at the time of purchase of
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1 the stamps when purchase is required by this Act, or at the
2 time when the tax is remitted to the Department without the
3 purchase of stamps from the Department when that method of
4 paying the tax is required or authorized by this Act. Prior
5 to December 1, 1985, a discount equal to 1 2/3% of the amount
6 of the tax up to and including the first $700,000 paid
7 hereunder by such distributor to the Department during any
8 such year; 1 1/3% of the next $700,000 of tax or any part
9 thereof, paid hereunder by such distributor to the Department
10 during any such year; 1% of the next $700,000 of tax, or any
11 part thereof, paid hereunder by such distributor to the
12 Department during any such year, and 2/3 of 1% of the amount
13 of any additional tax paid hereunder by such distributor to
14 the Department during any such year shall apply. On and after
15 December 1, 1985, a discount equal to 1.75% of the amount of
16 the tax payable under this Act up to and including the first
17 $3,000,000 paid hereunder by such distributor to the
18 Department during any such year and 1.5% of the amount of any
19 additional tax paid hereunder by such distributor to the
20 Department during any such year shall apply.
21 Two or more distributors that use a common means of
22 affixing revenue tax stamps or that are owned or controlled
23 by the same interests shall be treated as a single
24 distributor for the purpose of computing the discount.
25 (c) The taxes herein imposed are in addition to all
26 other occupation or privilege taxes imposed by the State of
27 Illinois, or by any political subdivision thereof, or by any
28 municipal corporation.
29 (Source: P.A. 90-548, eff. 12-4-97; 90-587, eff. 7-1-98.)