SB2900sam002 97TH GENERAL ASSEMBLY

Sen. Terry Link

Filed: 3/26/2012

09700SB2900sam002 LRB097 15550 HLH 67969 a

AMENDMENT TO SENATE BILL 2900

AMENDMENT NO. ______. Amend Senate Bill 2900, AS AMENDED, by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Cigarette Machine Use Tax Act.

Section 5. Definitions.

"Cigarette machine" means any machine, equipment, or device used to make, manufacture, or fabricate a product that is made or derived from tobacco and rolled into a tube.

"Cigarette machine operator" means any person who offers a cigarette machine for use to the general public on his or her premises in this State and is licensed by the Department as a cigarette machine operator under Section 15 of this Act.

"Department" means the Department of Revenue.

Section 10. Tax imposed.

(a) A tax is imposed upon all persons engaged in business as cigarette machine operators. The tax is imposed at the rate of $7.78 for every 200 tubes used in the machine. The tax imposed under this Section shall be collected and paid to the Department by the cigarette machine operator.

(b) The assessment payment obligation set forth in subsection (a) may be transferred by the cigarette machine operator to the manufacturer of the machine described in subsection (a) by a written agreement signed by the cigarette machine operator and the manufacturer of the machine and approved by the Department.

Section 15. License required.

(a) No person may engage in business as a cigarette machine operator without first having obtained a license therefor from the Department. Applications for a license shall be made to the Department on a form furnished and prescribed by the Department. Each applicant for a license under this Section shall furnish to the Department on the form signed and verified by the applicant under penalty of perjury the following information:

(1) the name and address of the applicant;

(2) the address of the location at which the applicant proposes to engage in business as a cigarette machine operator in this State; and

(3) such other additional information as the Department may lawfully require by its rules and regulations.

(b) The annual license fee payable to the Department for each cigarette machine operator's license is $250.

(c) It shall be unlawful for a cigarette machine operator to permit the use of such machine within the State unless the license fee has been paid and is evidenced by a license conspicuously affixed to the machine. Each cigarette machine operator doing business in the State on the effective date of this amendatory Act of the 97th General Assembly shall register with the Department within 30 days after the effective date of this amendatory Act of the 97th General Assembly.

(d) Notwithstanding the foregoing, no cigarette machine operator shall offer a cigarette machine for use unless such machine is constructed and maintained to allow the cigarette machine operator or manufacturer thereof to maintain an electronic count of the number of cigarette tubes used in that machine. In order to verify the payment of the assessment imposed in Section 10 of this Act, the cigarette machine operator shall report to the Department, on a return provided by the Department, the total number of tubes used in each machine during the preceding month.

Section 20. Application of Retailers' Occupation Tax provisions. All the provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, and 13 of the Retailers' Occupation Tax Act that are not inconsistent with this Act apply, as far as practicable, to the tax imposed by this Act to the same extent as if those provisions were included in this Act. References in the incorporated Sections of the Retailers' Occupation Tax Act to retailers, to sellers, or to persons engaged in the business of selling tangible personal property mean cigarette machine operators.

Section 30. Hearing; notice.

(a) The Department may adopt and enforce any reasonable rule to administer and enforce the tax imposed by this Act.

(b) Whenever the Department is required to provide notice to a cigarette machine operator under this Act, the notice may be personally served or given by United States certified or registered mail, addressed to the operator concerned at his or her last known address, and proof of this mailing is sufficient for the purposes of this Act. In the case of a notice of hearing, the Department must mail the notice at least 7 days prior to the date fixed for the hearing.

(c) All hearings provided by the Department under this Act with respect to or concerning a operator having his or her principal place of business in this State other than in Cook County must be held at the Department's office nearest to the location of the operator's principal place of business. If the operator has his or her principal place of business in Cook County, then the hearing must be held in Cook County. If the operator does not have his or her principal place of business in this State, then the hearing must be held in Sangamon County.

(d) If any proceeding under this Act has been begun by the Department or by a person subject thereto and that person subsequently dies or becomes a person under legal disability before the proceeding has been concluded, then the legal representative of the deceased person or person under legal disability shall notify the Department of the death or legal disability. The Department must substitute the legal representative, as such, in place of and for the person. Within 20 days after notice to the legal representative of the time fixed for that purpose, the proceeding may proceed in all respects and with like effect as though the person had not died or become a person under legal disability.

Section 35. Administrative procedures. The Illinois Administrative Procedure Act is expressly adopted and applies to all administrative rules and procedures of the Department under this Act, except that: (1) paragraph (b) of Section 4 of the Illinois Administrative Procedure Act does not apply to final orders, decisions, and opinions of the Department; (2) subparagraph (a)(2) of Section 4 of the Illinois Administrative Procedure Act does not apply to forms established by the Department for use under this Act; and (3) the provisions of Section 13 of the Illinois Administrative Procedure Act regarding proposals for decision are excluded and not applicable to the Department under this Act.

Section 40. Review under the Administrative Review Law.

(a) The circuit court of any county in which a hearing is held has the power to review all final administrative decisions of the Department in administering the tax imposed under this Act. If, however, the administrative proceeding that is to be reviewed judicially is a claim for refund proceeding commenced under this Act and Section 2a of the State Officers and Employees Money Disposition Act, the circuit court having jurisdiction over the action for judicial review under this Section and under the Administrative Review Law is the same court that entered the temporary restraining order or preliminary injunction that is provided for in that Section 2a, and that enables the claim proceeding to be processed and disposed of as a claim for refund proceeding other than as a claim for credit proceeding.

(b) The provisions of the Administrative Review Law apply to and govern all proceedings for the judicial review of final administrative decisions of the Department under this Title. The term "administrative decision" is defined as in Section 3-101 of the Code of Civil Procedure.

(c) Service of summons issued in any action to review a final administrative decision upon the Director or Assistant Director of Revenue shall be service upon the Department. The Department shall certify the record of its proceedings if the taxpayer pays to it the sum of $0.75 per page of testimony taken before the Department and $0.25 per page of all other matters contained in the record, except that these charges may be waived if the Department is satisfied that the aggrieved party cannot afford to pay these charges.".