[ Home ] [ ILCS ] [ Search ] [ Bottom ]
[ Other General Assemblies ]
Public Act 92-0737
SB2017 Enrolled LRB9215600SMdv
AN ACT concerning tobacco.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short Title. This Act may be cited as the
Tobacco Product Manufacturers' Escrow Enforcement Act.
Section 5. Definitions. As used in this Act:
"Cigarette" means that term as defined in Section 10 of
the Tobacco Product Manufacturers' Escrow Act, which includes
roll-your-own tobacco.
"Distributor" has the same meaning as that term is
defined in Section 1 of the Cigarette Tax Act, Section 1 of
the Cigarette Use Tax Act, or Section 10-5 of the Tobacco
Products Tax Act of 1995, as appropriate.
"Participating manufacturer" has the same meaning as that
term is defined in subdivision (a)(1) of Section 15 of the
Tobacco Product Manufacturers' Escrow Act.
"Qualified escrow fund" has the same meaning as that term
is defined in subdivision (a)(2)(A) of Section 15 of the
Tobacco Product Manufacturers' Escrow Act.
"Stamps or imprints" means (i) revenue tax stamps or
imprints as provided for in Section 3 of the Cigarette Tax
Act or (ii) stamps or imprints evidencing the payment of use
tax as provided for in Section 3 of the Cigarette Use Tax
Act, as appropriate.
"Tobacco product manufacturer" has the same meaning as
that term is defined in Section 10 of the Tobacco Product
Manufacturers' Escrow Act.
Section 15. Distributor's determination of tobacco
product manufacturer compliance.
(a) A distributor of cigarettes under the Cigarette Tax
Act or the Cigarette Use Tax Act, as appropriate, may not
affix or cause to be affixed stamps or imprints to individual
packages of cigarettes delivered or caused to be delivered by
the distributor in this State if the tobacco product
manufacturer of those cigarettes has:
(1) failed to become a participating manufacturer,
as defined in subdivision (a)(1) of Section 15 of the
Tobacco Product Manufacturers' Escrow Act; or
(2) failed to create a qualified escrow fund for
any cigarettes manufactured by the tobacco product
manufacturer and sold in this State or otherwise failed
to bring itself into compliance with subdivision (a)(2)
of Section 15 of the Tobacco Product Manufacturers'
Escrow Act.
(b) The Department of Revenue may revoke, suspend, or
cancel the license of a distributor of roll-your-own tobacco
under the Tobacco Products Tax Act of 1995 that is delivered
or caused to be delivered by the distributor in this State if
the tobacco product manufacturer of the roll-your-own tobacco
has:
(1) failed to become a participating manufacturer,
as defined in subdivision (a)(1) of Section 15 of the
Tobacco Product Manufacturers' Escrow Act; or
(2) failed to create a qualified escrow fund for
any roll-your-own tobacco manufactured by the tobacco
product manufacturer and sold in this State or otherwise
failed to bring itself into compliance with subdivision
(a)(2) of Section 15 of the Tobacco Product
Manufacturers' Escrow Act.
Section 20. Penalties. A distributor who violates this
Act is subject to the same penalties as provided in Section 6
of the Cigarette Tax Act, Section 6 of the Cigarette Use Tax
Act, or Section 10-25 of the Tobacco Products Tax Act of
1995, as appropriate.
Section 25. Rules. The Illinois Attorney General, in
consultation with the Illinois Department of Revenue, shall
adopt rules as necessary to effectuate compliance with this
Act.
Section 905. The Cigarette Tax Act is amended by
changing Sections 3 and 6 as follows:
(35 ILCS 130/3) (from Ch. 120, par. 453.3)
Sec. 3. Affixing tax stamp; remitting tax to the
Department. Payment of the taxes imposed by Section 2 of
this Act shall (except as hereinafter provided) be evidenced
by revenue tax stamps affixed to each original package of
cigarettes. Each distributor of cigarettes, before delivering
or causing to be delivered any original package of cigarettes
in this State to a purchaser, shall firmly affix a proper
stamp or stamps to each such package, or (in case of
manufacturers of cigarettes in original packages which are
contained inside a sealed transparent wrapper) shall imprint
the required language on the original package of cigarettes
beneath such outside wrapper, as hereinafter provided.
No stamp or imprint may be affixed to, or made upon, any
package of cigarettes unless that package complies with all
requirements of the federal Cigarette Labeling and
Advertising Act, 15 U.S.C. 1331 and following, for the
placement of labels, warnings, or any other information upon
a package of cigarettes that is sold within the United
States. Under the authority of Section 6, the Department
shall revoke the license of any distributor that is
determined to have violated this paragraph. A person may not
affix a stamp on a package of cigarettes, cigarette papers,
wrappers, or tubes if that individual package has been marked
for export outside the United States with a label or notice
in compliance with Section 290.185 of Title 27 of the Code of
Federal Regulations. It is not a defense to a proceeding for
violation of this paragraph that the label or notice has been
removed, mutilated, obliterated, or altered in any manner.
The Department, or any person authorized by the
Department, shall sell such stamps only to persons holding
valid licenses as distributors under this Act. The Department
may refuse to sell stamps to any person who does not comply
with the provisions of this Act.
Prior to December 1, 1985, the Department shall allow a
distributor 21 days in which to make final payment of the
amount to be paid for such stamps, by allowing the
distributor to make payment for the stamps at the time of
purchasing them with a draft which shall be in such form as
the Department prescribes, and which shall be payable within
21 days thereafter: Provided that such distributor has filed
with the Department, and has received the Department's
approval of, a bond, which is in addition to the bond
required under Section 4 of this Act, payable to the
Department in an amount equal to 80% of such distributor's
average monthly tax liability to the Department under this
Act during the preceding calendar year or $500,000, whichever
is less. The Bond shall be joint and several and shall be in
the form of a surety company bond in such form as the
Department prescribes, or it may be in the form of a bank
certificate of deposit or bank letter of credit. The bond
shall be conditioned upon the distributor's payment of amount
of any 21-day draft which the Department accepts from that
distributor for the delivery of stamps to that distributor
under this Act. The distributor's failure to pay any such
draft, when due, shall also make such distributor
automatically liable to the Department for a penalty equal to
25% of the amount of such draft.
On and after December 1, 1985, the Department shall allow
a distributor 30 days in which to make final payment of the
amount to be paid for such stamps, by allowing the
distributor to make payment for the stamps at the time of
purchasing them with a draft which shall be in such form as
the Department prescribes, and which shall be payable within
30 days thereafter, and beginning on January 1, 2003 and
thereafter, the draft shall be payable by means of electronic
funds transfer: Provided that such distributor has filed
with the Department, and has received the Department's
approval of, a bond, which is in addition to the bond
required under Section 4 of this Act, payable to the
Department in an amount equal to 150% of such distributor's
average monthly tax liability to the Department under this
Act during the preceding calendar year or $750,000, whichever
is less, except that as to bonds filed on or after January 1,
1987, such additional bond shall be in an amount equal to
100% of such distributor's average monthly tax liability
under this Act during the preceding calendar year or
$750,000, whichever is less. The bond shall be joint and
several and shall be in the form of a surety company bond in
such form as the Department prescribes, or it may be in the
form of a bank certificate of deposit or bank letter of
credit. The bond shall be conditioned upon the distributor's
payment of the amount of any 30-day draft which the
Department accepts from that distributor for the delivery of
stamps to that distributor under this Act. The distributor's
failure to pay any such draft, when due, shall also make such
distributor automatically liable to the Department for a
penalty equal to 25% of the amount of such draft.
Every prior continuous compliance taxpayer shall be
exempt from all requirements under this Section concerning
the furnishing of such bond, as defined in this Section, as a
condition precedent to his being authorized to engage in the
business licensed under this Act. This exemption shall
continue for each such taxpayer until such time as he may be
determined by the Department to be delinquent in the filing
of any returns, or is determined by the Department (either
through the Department's issuance of a final assessment which
has become final under the Act, or by the taxpayer's filing
of a return which admits tax to be due that is not paid) to
be delinquent or deficient in the paying of any tax under
this Act, at which time that taxpayer shall become subject to
the bond requirements of this Section and, as a condition of
being allowed to continue to engage in the business licensed
under this Act, shall be required to furnish bond to the
Department in such form as provided in this Section. Such
taxpayer shall furnish such bond for a period of 2 years,
after which, if the taxpayer has not been delinquent in the
filing of any returns, or delinquent or deficient in the
paying of any tax under this Act, the Department may
reinstate such person as a prior continuance compliance
taxpayer. Any taxpayer who fails to pay an admitted or
established liability under this Act may also be required to
post bond or other acceptable security with the Department
guaranteeing the payment of such admitted or established
liability.
Any person aggrieved by any decision of the Department
under this Section may, within the time allowed by law,
protest and request a hearing, whereupon the Department shall
give notice and shall hold a hearing in conformity with the
provisions of this Act and then issue its final
administrative decision in the matter to such person. In the
absence of such a protest filed within the time allowed by
law, the Department's decision shall become final without any
further determination being made or notice given.
The Department shall discharge any surety and shall
release and return any bond or security deposited, assigned,
pledged, or otherwise provided to it by a taxpayer under this
Section within 30 days after:
(1) Such taxpayer becomes a prior continuous compliance
taxpayer; or
(2) Such taxpayer has ceased to collect receipts on
which he is required to remit tax to the Department, has
filed a final tax return, and has paid to the Department an
amount sufficient to discharge his remaining tax liability as
determined by the Department under this Act. The Department
shall make a final determination of the taxpayer's
outstanding tax liability as expeditiously as possible after
his final tax return has been filed. If the Department
cannot make such final determination within 45 days after
receiving the final tax return, within such period it shall
so notify the taxpayer, stating its reasons therefor.
The Department may authorize distributors to affix
revenue tax stamps by imprinting tax meter stamps upon
original packages of cigarettes. The Department shall adopt
rules and regulations relating to the imprinting of such tax
meter stamps as will result in payment of the proper taxes as
herein imposed. No distributor may affix revenue tax stamps
to original packages of cigarettes by imprinting tax meter
stamps thereon unless such distributor has first obtained
permission from the Department to employ this method of
affixation. The Department shall regulate the use of tax
meters and may, to assure the proper collection of the taxes
imposed by this Act, revoke or suspend the privilege,
theretofore granted by the Department to any distributor, to
imprint tax meter stamps upon original packages of
cigarettes.
Illinois cigarette manufacturers who place their
cigarettes in original packages which are contained inside a
sealed transparent wrapper, and similar out-of-State
cigarette manufacturers who elect to qualify and are accepted
by the Department as distributors under Section 4b of this
Act, shall pay the taxes imposed by this Act by remitting the
amount thereof to the Department by the 5th day of each month
covering cigarettes shipped or otherwise delivered in
Illinois to purchasers during the preceding calendar month.
Such manufacturers of cigarettes in original packages which
are contained inside a sealed transparent wrapper, before
delivering such cigarettes or causing such cigarettes to be
delivered in this State to purchasers, shall evidence their
obligation to remit the taxes due with respect to such
cigarettes by imprinting language to be prescribed by the
Department on each original package of such cigarettes
underneath the sealed transparent outside wrapper of such
original package, in such place thereon and in such manner as
the Department may designate. Such imprinted language shall
acknowledge the manufacturer's payment of or liability for
the tax imposed by this Act with respect to the distribution
of such cigarettes.
A distributor shall not affix, or cause to be affixed,
any stamp or imprint to a package of cigarettes, as provided
for in this Section, if the tobacco product manufacturer, as
defined in Section 10 of the Tobacco Product Manufacturers'
Escrow Act, that made or sold the cigarettes has failed to
become a participating manufacturer, as defined in
subdivision (a)(1) of Section 15 of the Tobacco Product
Manufacturers' Escrow Act, or has failed to create a
qualified escrow fund for any cigarettes manufactured by the
tobacco product manufacturer and sold in this State or
otherwise failed to bring itself into compliance with
subdivision (a)(2) of Section 15 of the Tobacco Product
Manufacturers' Escrow Act.
(Source: P.A. 91-246, eff. 7-22-99; 92-322, eff. 1-1-02.)
(35 ILCS 130/6) (from Ch. 120, par. 453.6)
Sec. 6. Revocation, cancellation, or suspension of
license. The Department may, after notice and hearing as
provided for by this Act, revoke, cancel or suspend the
license of any distributor for the violation of any provision
of this Act, or for noncompliance with any provision herein
contained, or for any noncompliance with any lawful rule or
regulation promulgated by the Department under Section 8 of
this Act, or because the licensee is determined to be
ineligible for a distributor's license for any one or more of
the reasons provided for in Section 4 of this Act. However,
no such license shall be revoked, cancelled or suspended,
except after a hearing by the Department with notice to the
distributor, as aforesaid, and affording such distributor a
reasonable opportunity to appear and defend, and any
distributor aggrieved by any decision of the Department with
respect thereto may have the determination of the Department
judicially reviewed, as herein provided.
The Department may revoke, cancel, or suspend the license
of any distributor for a violation of the Tobacco Product
Manufacturers' Escrow Enforcement Act as provided in Section
20 of that Act.
Any distributor aggrieved by any decision of the
Department under this Section may, within 20 days after
notice of the decision, protest and request a hearing. Upon
receiving a request for a hearing, the Department shall give
notice in writing to the distributor requesting the hearing
that contains a statement of the charges preferred against
the distributor and that states the time and place fixed for
the hearing. The Department shall hold the hearing in
conformity with the provisions of this Act and then issue its
final administrative decision in the matter to the
distributor. In the absence of a protest and request for a
hearing within 20 days, the Department's decision shall
become final without any further determination being made or
notice given.
No license so revoked, as aforesaid, shall be reissued to
any such distributor within a period of 6 months after the
date of the final determination of such revocation. No such
license shall be reissued at all so long as the person who
would receive the license is ineligible to receive a
distributor's license under this Act for any one or more of
the reasons provided for in Section 4 of this Act.
The Department upon complaint filed in the circuit court
may by injunction restrain any person who fails, or refuses,
to comply with any of the provisions of this Act from acting
as a distributor of cigarettes in this State.
(Source: P.A. 91-901, eff. 1-1-01.)
Section 910. The Cigarette Use Tax Act is amended by
changing Sections 3 and 6 as follows:
(35 ILCS 135/3) (from Ch. 120, par. 453.33)
Sec. 3. Stamp payment. The tax hereby imposed shall be
collected by a distributor maintaining a place of business in
this State or a distributor authorized by the Department
pursuant to Section 7 hereof to collect the tax, and the
amount of the tax shall be added to the price of the
cigarettes sold by such distributor. Collection of the tax
shall be evidenced by a stamp or stamps affixed to each
original package of cigarettes or by an authorized substitute
for such stamp imprinted on each original package of such
cigarettes underneath the sealed transparent outside wrapper
of such original package, except as hereinafter provided.
Each distributor who is required or authorized to collect the
tax herein imposed, before delivering or causing to be
delivered any original packages of cigarettes in this State
to any purchaser, shall firmly affix a proper stamp or stamps
to each such package, or (in the case of manufacturers of
cigarettes in original packages which are contained inside a
sealed transparent wrapper) shall imprint the required
language on the original package of cigarettes beneath such
outside wrapper as hereinafter provided. Such stamp or stamps
need not be affixed to the original package of any cigarettes
with respect to which the distributor is required to affix a
like stamp or stamps by virtue of the Cigarette Tax Act,
however, and no tax imprint need be placed underneath the
sealed transparent wrapper of an original package of
cigarettes with respect to which the distributor is required
or authorized to employ a like tax imprint by virtue of the
Cigarette Tax Act.
No stamp or imprint may be affixed to, or made upon, any
package of cigarettes unless that package complies with all
requirements of the federal Cigarette Labeling and
Advertising Act, 15 U.S.C. 1331 and following, for the
placement of labels, warnings, or any other information upon
a package of cigarettes that is sold within the United
States. Under the authority of Section 6, the Department
shall revoke the license of any distributor that is
determined to have violated this paragraph. A person may not
affix a stamp on a package of cigarettes, cigarette papers,
wrappers, or tubes if that individual package has been marked
for export outside the United States with a label or notice
in compliance with Section 290.185 of Title 27 of the Code of
Federal Regulations. It is not a defense to a proceeding for
violation of this paragraph that the label or notice has been
removed, mutilated, obliterated, or altered in any manner.
Stamps, when required hereunder, shall be purchased from
the Department, or any person authorized by the Department,
by distributors. The Department may refuse to sell stamps to
any person who does not comply with the provisions of this
Act.
Prior to December 1, 1985, the Department shall allow a
distributor 21 days in which to make final payment of the
amount to be paid for such stamps, by allowing the
distributor to make payment for the stamps at the time of
purchasing them with a draft which shall be in such form as
the Department prescribes, and which shall be payable within
21 days thereafter: Provided that such distributor has filed
with the Department, and has received the Department's
approval of, a bond, which is in addition to the bond
required under Section 4 of this Act, payable to the
Department in an amount equal to 80% of such distributor's
average monthly tax liability to the Department under this
Act during the preceding calendar year or $500,000, whichever
is less. The bond shall be joint and several and shall be in
the form of a surety company bond in such form as the
Department prescribes, or it may be in the form of a bank
certificate of deposit or bank letter of credit. The bond
shall be conditioned upon the distributor's payment of the
amount of any 21-day draft which the Department accepts from
that distributor for the delivery of stamps to that
distributor under this Act. The distributor's failure to pay
any such draft, when due, shall also make such distributor
automatically liable to the Department for a penalty equal to
25% of the amount of such draft.
On and after December 1, 1985, the Department shall allow
a distributor 30 days in which to make final payment of the
amount to be paid for such stamps, by allowing the
distributor to make payment for the stamps at the time of
purchasing them with a draft which shall be in such form as
the Department prescribes, and which shall be payable within
30 days thereafter, and beginning on January 1, 2003 and
thereafter, the draft shall be payable by means of electronic
funds transfer: Provided that such distributor has filed
with the Department, and has received the Department's
approval of, a bond, which is in addition to the bond
required under Section 4 of this Act, payable to the
Department in an amount equal to 150% of such distributor's
average monthly tax liability to the Department under this
Act during the preceding calendar year or $750,000, whichever
is less, except that as to bonds filed on or after January 1,
1987, such additional bond shall be in an amount equal to
100% of such distributor's average monthly tax liability
under this Act during the preceding calendar year or
$750,000, whichever is less. The bond shall be joint and
several and shall be in the form of a surety company bond in
such form as the Department prescribes, or it may be in the
form of a bank certificate of deposit or bank letter of
credit. The bond shall be conditioned upon the distributor's
payment of the amount of any 30-day draft which the
Department accepts from that distributor for the delivery of
stamps to that distributor under this Act. The distributor's
failure to pay any such draft, when due, shall also make such
distributor automatically liable to the Department for a
penalty equal to 25% of the amount of such draft.
Every prior continuous compliance taxpayer shall be
exempt from all requirements under this Section concerning
the furnishing of such bond, as defined in this Section, as a
condition precedent to his being authorized to engage in the
business licensed under this Act. This exemption shall
continue for each such taxpayer until such time as he may be
determined by the Department to be delinquent in the filing
of any returns, or is determined by the Department (either
through the Department's issuance of a final assessment which
has become final under the Act, or by the taxpayer's filing
of a return which admits tax to be due that is not paid) to
be delinquent or deficient in the paying of any tax under
this Act, at which time that taxpayer shall become subject to
the bond requirements of this Section and, as a condition of
being allowed to continue to engage in the business licensed
under this Act, shall be required to furnish bond to the
Department in such form as provided in this Section. Such
taxpayer shall furnish such bond for a period of 2 years,
after which, if the taxpayer has not been delinquent in the
filing of any returns, or delinquent or deficient in the
paying of any tax under this Act, the Department may
reinstate such person as a prior continuance compliance
taxpayer. Any taxpayer who fails to pay an admitted or
established liability under this Act may also be required to
post bond or other acceptable security with the Department
guaranteeing the payment of such admitted or established
liability.
Any person aggrieved by any decision of the Department
under this Section may, within the time allowed by law,
protest and request a hearing, whereupon the Department shall
give notice and shall hold a hearing in conformity with the
provisions of this Act and then issue its final
administrative decision in the matter to such person. In the
absence of such a protest filed within the time allowed by
law, the Department's decision shall become final without any
further determination being made or notice given.
The Department shall discharge any surety and shall
release and return any bond or security deposited, assigned,
pledged, or otherwise provided to it by a taxpayer under this
Section within 30 days after:
(1) such Taxpayer becomes a prior continuous
compliance taxpayer; or
(2) such taxpayer has ceased to collect receipts on
which he is required to remit tax to the Department, has
filed a final tax return, and has paid to the Department
an amount sufficient to discharge his remaining tax
liability as determined by the Department under this Act.
The Department shall make a final determination of the
taxpayer's outstanding tax liability as expeditiously as
possible after his final tax return has been filed. If
the Department cannot make such final determination
within 45 days after receiving the final tax return,
within such period it shall so notify the taxpayer,
stating its reasons therefor.
At the time of purchasing such stamps from the Department
when purchase is required by this Act, or at the time when
the tax which he has collected is remitted by a distributor
to the Department without the purchase of stamps from the
Department when that method of remitting the tax that has
been collected is required or authorized by this Act, the
distributor shall be allowed a discount during any year
commencing July 1 and ending the following June 30 in
accordance with the schedule set out hereinbelow, from the
amount to be paid by him to the Department for such stamps,
or to be paid by him to the Department on the basis of
monthly remittances (as the case may be), to cover the cost,
to such distributor, of collecting the tax herein imposed by
affixing such stamps to the original packages of cigarettes
sold by such distributor or by placing tax imprints
underneath the sealed transparent wrapper of original
packages of cigarettes sold by such distributor (as the case
may be): (1) Prior to December 1, 1985, a discount equal to
1-2/3% of the amount of the tax up to and including the first
$700,000 paid hereunder by such distributor to the Department
during any such year; 1-1/3% of the next $700,000 of tax or
any part thereof, paid hereunder by such distributor to the
Department during any such year; 1% of the next $700,000 of
tax, or any part thereof, paid hereunder by such distributor
to the Department during any such year; and 2/3 of 1% of the
amount of any additional tax paid hereunder by such
distributor to the Department during any such year or (2) On
and after December 1, 1985, a discount equal to 1.75% of the
amount of the tax payable under this Act up to and including
the first $3,000,000 paid hereunder by such distributor to
the Department during any such year and 1.5% of the amount of
any additional tax paid hereunder by such distributor to the
Department during any such year.
Two or more distributors that use a common means of
affixing revenue tax stamps or that are owned or controlled
by the same interests shall be treated as a single
distributor for the purpose of computing the discount.
Cigarette manufacturers who are distributors under this
Act, and who place their cigarettes in original packages
which are contained inside a sealed transparent wrapper,
shall be required to remit the tax which they are required to
collect under this Act to the Department by remitting the
amount thereof to the Department by the 5th day of each
month, covering cigarettes shipped or otherwise delivered to
points in Illinois to purchasers during the preceding
calendar month, but a distributor need not remit to the
Department the tax so collected by him from purchasers under
this Act to the extent to which such distributor is required
to remit the tax imposed by the Cigarette Tax Act to the
Department with respect to the same cigarettes. All taxes
upon cigarettes under this Act are a direct tax upon the
retail consumer and shall conclusively be presumed to be
precollected for the purpose of convenience and facility
only. Distributors who are manufacturers of cigarettes in
original packages which are contained inside a sealed
transparent wrapper, before delivering such cigarettes or
causing such cigarettes to be delivered in this State to
purchasers, shall evidence their obligation to collect and
remit the tax due with respect to such cigarettes by
imprinting language to be prescribed by the Department on
each original package of such cigarettes underneath the
sealed transparent outside wrapper of such original package,
in such place thereon and in such manner as the Department
may prescribe; provided (as stated hereinbefore) that this
requirement does not apply when such distributor is required
or authorized by the Cigarette Tax Act to place the tax
imprint provided for in the last paragraph of Section 3 of
that Act underneath the sealed transparent wrapper of such
original package of cigarettes. Such imprinted language shall
acknowledge the manufacturer's collection and payment of or
liability for the tax imposed by this Act with respect to
such cigarettes.
The Department shall adopt the design or designs of the
tax stamps and shall procure the printing of such stamps in
such amounts and denominations as it deems necessary to
provide for the affixation of the proper amount of tax stamps
to each original package of cigarettes.
Where tax stamps are required, the Department may
authorize distributors to affix revenue tax stamps by
imprinting tax meter stamps upon original packages of
cigarettes. The Department shall adopt rules and regulations
relating to the imprinting of such tax meter stamps as will
result in payment of the proper taxes as herein imposed. No
distributor may affix revenue tax stamps to original packages
of cigarettes by imprinting meter stamps thereon unless such
distributor has first obtained permission from the Department
to employ this method of affixation. The Department shall
regulate the use of tax meters and may, to assure the proper
collection of the taxes imposed by this Act, revoke or
suspend the privilege, theretofore granted by the Department
to any distributor, to imprint tax meter stamps upon original
packages of cigarettes.
The tax hereby imposed and not paid pursuant to this
Section shall be paid to the Department directly by any
person using such cigarettes within this State, pursuant to
Section 12 hereof.
A distributor shall not affix, or cause to be affixed,
any stamp or imprint to a package of cigarettes, as provided
for in this Section, if the tobacco product manufacturer, as
defined in Section 10 of the Tobacco Product Manufacturers'
Escrow Act, that made or sold the cigarettes has failed to
become a participating manufacturer, as defined in
subdivision (a)(1) of Section 15 of the Tobacco Product
Manufacturers' Escrow Act, or has failed to create a
qualified escrow fund for any cigarettes manufactured by the
tobacco product manufacturer and sold in this State or
otherwise failed to bring itself into compliance with
subdivision (a)(2) of Section 15 of the Tobacco Product
Manufacturers' Escrow Act.
(Source: P.A. 91-246, eff. 7-22-99; 92-322, eff. 1-1-02.)
(35 ILCS 135/6) (from Ch. 120, par. 453.36)
Sec. 6. Revocation, cancellation, or suspension of
license. The Department may, after notice and hearing as
provided for by this Act, revoke, cancel or suspend the
license of any distributor for the violation of any provision
of this Act, or for non-compliance with any provision herein
contained, or for any non-compliance with any lawful rule or
regulation promulgated by the Department under Section 21 of
this Act, or because the licensee is determined to be
ineligible for a distributor's license for any one or more of
the reasons provided for in Section 4 of this Act. However,
no such license shall be revoked, canceled or suspended,
except after a hearing by the Department with notice to the
distributor, as aforesaid, and affording such distributor a
reasonable opportunity to appear and defend, and any
distributor aggrieved by any decision of the Department with
respect thereto may have the determination of the Department
judicially reviewed, as herein provided.
The Department may revoke, cancel, or suspend the license
of any distributor for a violation of the Tobacco Product
Manufacturers' Escrow Enforcement Act as provided in Section
20 of that Act.
Any distributor aggrieved by any decision of the
Department under this Section may, within 20 days after
notice of the decision, protest and request a hearing. Upon
receiving a request for a hearing, the Department shall give
notice in writing to the distributor requesting the hearing
that contains a statement of the charges preferred against
the distributor and that states the time and place fixed for
the hearing. The Department shall hold the hearing in
conformity with the provisions of this Act and then issue its
final administrative decision in the matter to the
distributor. In the absence of a protest and request for a
hearing within 20 days, the Department's decision shall
become final without any further determination being made or
notice given.
No license so revoked, shall be reissued to any such
distributor within a period of 6 months after the date of the
final determination of such revocation. No such license
shall be reissued at all so long as the person who would
receive the license is ineligible to receive a distributor's
license under this Act for any one or more of the reasons
provided for in Section 4 of this Act.
The Department upon complaint filed in the circuit court
may by injunction restrain any person who fails, or refuses,
to comply with this Act from acting as a distributor of
cigarettes in this State.
(Source: P.A. 91-901, eff. 1-1-01.)
Section 915. The Tobacco Products Tax Act of 1995 is
amended by changing Sections 10-20 and 10-25 as follows:
(35 ILCS 143/10-20)
Sec. 10-20. Licenses. It shall be unlawful for any
person to engage in business as a distributor of tobacco
products within the meaning of this Act without first having
obtained a license to do so from the Department. Application
for that license shall be made to the Department in a form
prescribed and furnished by the Department. Each applicant
for a license shall furnish to the Department on a form,
signed and verified by the applicant, the following
information:
(1) The name of the applicant.
(2) The address of the location at which the
applicant proposes to engage in business as a distributor
of tobacco products.
(3) Other information the Department may reasonably
require.
Except as otherwise provided in this Section, every
applicant who is required to procure a distributor's license
shall file with his or her application a joint and several
bond. The bond shall be executed to the Department of
Revenue, with good and sufficient surety or sureties residing
or licensed to do business within the State of Illinois,
conditioned upon the true and faithful compliance by the
licensee with all of the provisions of this Act. The
Department shall fix the amount of the bond for each
applicant, taking into consideration the amount of money
expected to become due from the applicant under this Act.
The amount of bond required by the Department shall be an
amount that, in its opinion, will protect the State of
Illinois against failure to pay the amount that may become
due from the applicant under this Act, but the amount of the
security required by the Department shall not exceed 3 times
the amount of the applicant's average monthly tax liability,
or $50,000, whichever amount is lower. The bond, a reissue,
or a substitute shall be kept in full force and effect during
the entire period covered by the license. A separate
application for license shall be made, and bond filed, for
each place of business at which a person who is required to
procure a distributor's license proposes to engage in
business as a distributor under this Act.
The Department, upon receipt of an application and bond
in proper form, shall issue to the applicant a license, in a
form prescribed by the Department, which shall permit the
applicant to whom it is issued to engage in business as a
distributor at the place shown on his or her application.
The license shall be issued by the Department without charge
or cost to the applicant. No license issued under this Act
is transferable or assignable. The license shall be
conspicuously displayed in the place of business conducted by
the licensee under the license.
The bonding requirement in this Section does not apply to
an applicant for a distributor's license who is already
bonded under the Cigarette Tax Act or the Cigarette Use Tax
Act. Licenses issued by the Department under this Act shall
be valid for a period not to exceed one year after issuance
unless sooner revoked, canceled, or suspended as provided in
this Act.
No license shall be issued to any person who is in
default to the State of Illinois for moneys due under this
Act or any other tax Act administered by the Department.
The Department may, in its discretion, upon application,
authorize the payment of the tax imposed under Section 10-10
by any distributor or manufacturer not otherwise subject to
the tax imposed under this Act who, to the satisfaction of
the Department, furnishes adequate security to ensure payment
of the tax. The distributor or manufacturer shall be issued,
without charge, a license to remit the tax. When so
authorized, it shall be the duty of the distributor or
manufacturer to remit the tax imposed upon the wholesale
price of tobacco products sold or otherwise disposed of to
retailers or consumers located in this State, in the same
manner and subject to the same requirements as any other
distributor or manufacturer licensed under this Act.
The Department may revoke, suspend, or cancel the license
of a distributor of roll-your-own tobacco (as that term is
used in Section 10 of the Tobacco Product Manufacturers'
Escrow Act) under this Act if the tobacco product
manufacturer, as defined in Section 10 of the Tobacco Product
Manufacturers' Escrow Act, that made or sold the
roll-your-own tobacco has failed to become a participating
manufacturer, as defined in subdivision (a)(1) of Section 15
of the Tobacco Product Manufacturers' Escrow Act, or has
failed to create a qualified escrow fund for any
roll-your-own tobacco manufactured by the tobacco product
manufacturer and sold in this State or otherwise failed to
bring itself into compliance with subdivision (a)(2) of
Section 15 of the Tobacco Product Manufacturers' Escrow Act.
Any person aggrieved by any decision of the Department
under this Section may, within 20 days after notice of that
decision, protest and request a hearing, whereupon the
Department must give notice to that person of the time and
place fixed for the hearing and must hold a hearing in
conformity with the provisions of this Act and then issue its
final administrative decision in the matter to that person.
In the absence of such a protest within 20 days, the
Department's decision becomes final without any further
determination being made or notice given.
(Source: P.A. 92-231, eff. 8-2-01.)
(35 ILCS 143/10-25)
Sec. 10-25. License actions. The Department may, after
notice and a hearing, revoke, cancel, or suspend the license
of any distributor who violates any of the provisions of this
Act. The notice shall specify the alleged violation or
violations upon which the revocation, cancellation, or
suspension proceeding is based.
The Department may revoke, cancel, or suspend the license
of any distributor for a violation of the Tobacco Product
Manufacturers' Escrow Enforcement Act as provided in Section
20 of that Act.
The Department may, by application to any circuit court,
obtain an injunction restraining any person who engages in
business as a distributor of tobacco products without a
license (either because his or her license has been revoked,
canceled, or suspended or because of a failure to obtain a
license in the first instance) from engaging in that business
until that person, as if that person were a new applicant for
a license, complies with all of the conditions, restrictions,
and requirements of Section 10-20 of this Act and qualifies
for and obtains a license. Refusal or neglect to obey the
order of the court may result in punishment for contempt.
(Source: P.A. 89-21, eff. 6-6-95.)
Section 999. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly May 29, 2002.
Approved July 25, 2002.
Effective July 25, 2002.
[ Top ]