Public Act 099-0360
 
SB0509 EnrolledLRB099 03061 HLH 23069 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Cigarette Tax Act is amended by changing
Section 1 as follows:
 
    (35 ILCS 130/1)  (from Ch. 120, par. 453.1)
    Sec. 1. For the purposes of this Act:
    "Brand Style" means a variety of cigarettes distinguished
by the tobacco used, tar and nicotine content, flavoring used,
size of the cigarette, filtration on the cigarette or
packaging.
    Until July 1, 2012, and beginning July 1, 2013,
"cigarette", means any roll for smoking made wholly or in part
of tobacco irrespective of size or shape and whether or not
such tobacco is flavored, adulterated or mixed with any other
ingredient, and the wrapper or cover of which is made of paper
or any other substance or material except tobacco.
    "Cigarette", beginning on and after July 1, 2012, and
through June 30, 2013, means any roll for smoking made wholly
or in part of tobacco irrespective of size or shape and whether
or not such tobacco is flavored, adulterated, or mixed with any
other ingredient, and the wrapper or cover of which is made of
paper.
    "Cigarette", beginning on and after July 1, 2012, and
through June 30, 2013, also shall mean: Any roll for smoking
made wholly or in part of tobacco labeled as anything other
than a cigarette or not bearing a label, if it meets two or
more of the following criteria:
        (a) the product is sold in packs similar to cigarettes;
        (b) the product is available for sale in cartons of ten
    packs;
        (c) the product is sold in soft packs, hard packs,
    flip-top boxes, clam shells, or other cigarette-type
    boxes;
        (d) the product is of a length and diameter similar to
    commercially manufactured cigarettes;
        (e) the product has a cellulose acetate or other
    integrated filter;
        (f) the product is marketed or advertised to consumers
    as a cigarette or cigarette substitute; or
        (g) other evidence that the product fits within the
    definition of cigarette.
    "Contraband cigarettes" means:
        (a) cigarettes that do not bear a required tax stamp
    under this Act;
        (b) cigarettes for which any required federal taxes
    have not been paid;
        (c) cigarettes that bear a counterfeit tax stamp;
        (d) cigarettes that are manufactured, fabricated,
    assembled, processed, packaged, or labeled by any person
    other than (i) the owner of the trademark rights in the
    cigarette brand or (ii) a person that is directly or
    indirectly authorized by such owner;
        (e) cigarettes imported into the United States, or
    otherwise distributed, in violation of the federal
    Imported Cigarette Compliance Act of 2000 (Title IV of
    Public Law 106-476);
        (f) cigarettes that have false manufacturing labels;
        (g) cigarettes identified in Section 3-10(a)(1) of
    this Act;
        (h) cigarettes that are improperly tax stamped,
    including cigarettes that bear a tax stamp of another state
    or taxing jurisdiction, or lack a tax stamp required by any
    political subdivision of Illinois; or
        (i) cigarettes made or fabricated by a person holding a
    cigarette machine operator license under Section 1-20 of
    the Cigarette Machine Operators' Occupation Tax Act in the
    possession of manufacturers, distributors, secondary
    distributors, manufacturer representatives or other
    retailers for the purpose of resale, regardless of whether
    the tax has been paid on such cigarettes.
    "Little cigar" has the meaning ascribed to that term in the
Tobacco Products Tax Act of 1995.
    "Person" means any natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, however formed, limited liability
company, or a receiver, executor, administrator, trustee,
guardian or other representative appointed by order of any
court.
    "Prior Continuous Compliance Taxpayer" means any person
who is licensed under this Act and who, having been a licensee
for a continuous period of 5 years, is determined by the
Department not to have been either delinquent or deficient in
the payment of tax liability during that period or otherwise in
violation of this Act. Also, any taxpayer who has, as verified
by the Department, continuously complied with the condition of
his bond or other security under provisions of this Act for a
period of 5 consecutive years shall be considered to be a
"Prior continuous compliance taxpayer". In calculating the
consecutive period of time described herein for qualification
as a "prior continuous compliance taxpayer", a consecutive
period of time of qualifying compliance immediately prior to
the effective date of this amendatory Act of 1987 shall be
credited to any licensee who became licensed on or before the
effective date of this amendatory Act of 1987.
    "Department" means the Department of Revenue.
    "Sale" means any transfer, exchange or barter in any manner
or by any means whatsoever for a consideration, and includes
and means all sales made by any person.
    "Original Package" means the individual packet, box or
other container whatsoever used to contain and to convey
cigarettes to the consumer.
    "Distributor" means any and each of the following:
        (1) Any person engaged in the business of selling
    cigarettes in this State who brings or causes to be brought
    into this State from without this State any original
    packages of cigarettes, on which original packages there is
    no authorized evidence underneath a sealed transparent
    wrapper showing that the tax liability imposed by this Act
    has been paid or assumed by the out-of-State seller of such
    cigarettes, for sale or other disposition in the course of
    such business.
        (2) Any person who makes, manufactures or fabricates
    cigarettes in this State for sale in this State, except a
    person who makes, manufactures or fabricates cigarettes as
    a part of a correctional industries program for sale to
    residents incarcerated in penal institutions or resident
    patients of a State-operated mental health facility.
        (3) Any person who makes, manufactures or fabricates
    cigarettes outside this State, which cigarettes are placed
    in original packages contained in sealed transparent
    wrappers, for delivery or shipment into this State, and who
    elects to qualify and is accepted by the Department as a
    distributor under Section 4b of this Act.
    "Place of business" shall mean and include any place where
cigarettes are sold or where cigarettes are manufactured,
stored or kept for the purpose of sale or consumption,
including any vessel, vehicle, airplane, train or vending
machine.
    "Manufacturer representative" means a director, officer,
or employee of a manufacturer who has obtained authority from
the Department under Section 4f to maintain representatives in
Illinois that provide or sell original packages of cigarettes
made, manufactured, or fabricated by the manufacturer to
retailers in compliance with Section 4f of this Act to promote
cigarettes made, manufactured, or fabricated by the
manufacturer.
    "Business" means any trade, occupation, activity or
enterprise engaged in for the purpose of selling cigarettes in
this State.
    "Retailer" means any person who engages in the making of
transfers of the ownership of, or title to, cigarettes to a
purchaser for use or consumption and not for resale in any
form, for a valuable consideration. "Retailer" does not include
a person:
        (1) who transfers to residents incarcerated in penal
    institutions or resident patients of a State-operated
    mental health facility ownership of cigarettes made,
    manufactured, or fabricated as part of a correctional
    industries program; or
        (2) who transfers cigarettes to a not-for-profit
    research institution that conducts tests concerning the
    health effects of tobacco products and who does not offer
    the cigarettes for resale.
    "Retailer" shall be construed to include any person who
engages in the making of transfers of the ownership of, or
title to, cigarettes to a purchaser, for use or consumption by
any other person to whom such purchaser may transfer the
cigarettes without a valuable consideration, except a person
who transfers to residents incarcerated in penal institutions
or resident patients of a State-operated mental health facility
ownership of cigarettes made, manufactured or fabricated as
part of a correctional industries program.
    "Secondary distributor" means any person engaged in the
business of selling cigarettes who purchases stamped original
packages of cigarettes from a licensed distributor under this
Act or the Cigarette Use Tax Act, sells 75% or more of those
cigarettes to retailers for resale, and maintains an
established business where a substantial stock of cigarettes is
available to retailers for resale.
    "Stamp" or "stamps" mean the indicia required to be affixed
on a pack of cigarettes that evidence payment of the tax on
cigarettes under Section 2 of this Act.
    "Related party" means any person that is associated with
any other person because he or she:
        (a) is an officer or director of a business; or
        (b) is legally recognized as a partner in business.
(Source: P.A. 97-587, eff. 8-26-11; 97-688, eff. 6-14-12;
98-273, eff. 8-9-13.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.