Full Text of SB0044 96th General Assembly
SB0044ham007 96TH GENERAL ASSEMBLY | Rep. Barbara Flynn Currie Filed: 1/10/2011
| | 09600SB0044ham007 | | LRB096 03720 HLH 44934 a |
|
| 1 | | AMENDMENT TO SENATE BILL 44
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 44 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The State Finance Act is amended by adding | 5 | | Sections 5.786 and 6z-85 as follows: | 6 | | (30 ILCS 105/5.786 new) | 7 | | Sec. 5.786. The Fund for the Advancement of Education. | 8 | | (30 ILCS 105/6z-85 new) | 9 | | Sec. 6z-85. The Fund for the Advancement of Education; | 10 | | creation. The Fund for the Advancement of Education is hereby | 11 | | created as a special fund in the State treasury. All moneys | 12 | | deposited into the fund shall be
appropriated to provide | 13 | | financial assistance for education programs. Moneys | 14 | | appropriated from the Fund shall supplement and not supplant | 15 | | the current level of education funding. |
| | | 09600SB0044ham007 | - 2 - | LRB096 03720 HLH 44934 a |
|
| 1 | | Section 10. The Cigarette Tax Act is amended by changing | 2 | | Sections 2 and 3 as follows:
| 3 | | (35 ILCS 130/2) (from Ch. 120, par. 453.2)
| 4 | | Sec. 2. Tax imposed; rate; collection, payment, and | 5 | | distribution;
discount. | 6 | | (a) A tax is imposed upon any person engaged in business as | 7 | | a
retailer of cigarettes in this State at the rate of 5 1/2 | 8 | | mills per
cigarette sold, or otherwise disposed of in the | 9 | | course of such business in
this State. In addition to any other | 10 | | tax imposed by this Act, a tax is
imposed upon any person | 11 | | engaged in business as a retailer of cigarettes in
this State | 12 | | at a rate of 1/2 mill per cigarette sold or otherwise disposed
| 13 | | of in the course of such business in this State on and after | 14 | | January 1,
1947, and shall be paid into the Metropolitan Fair | 15 | | and Exposition Authority
Reconstruction Fund or as otherwise | 16 | | provided in Section 29. On and after December 1, 1985, in | 17 | | addition to any
other tax imposed by this Act, a tax is imposed | 18 | | upon any person engaged in
business as a retailer of cigarettes | 19 | | in this State at a rate of 4 mills per
cigarette sold or | 20 | | otherwise disposed of in the course of such business in
this | 21 | | State. Of the additional tax imposed by this amendatory Act of | 22 | | 1985,
$9,000,000 of the moneys received by the Department of | 23 | | Revenue pursuant to
this Act shall be paid each month into the | 24 | | Common School Fund. On and after
the effective date of this |
| | | 09600SB0044ham007 | - 3 - | LRB096 03720 HLH 44934 a |
|
| 1 | | amendatory Act of 1989, in addition to any other tax
imposed by | 2 | | this Act, a tax is imposed upon any person engaged in business | 3 | | as a
retailer of cigarettes at the rate of 5 mills per | 4 | | cigarette sold or
otherwise disposed of in the course of such | 5 | | business in this State.
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 any person engaged
in business | 8 | | as a retailer of cigarettes at the rate of 7 mills per | 9 | | cigarette
sold or otherwise disposed of in the course of such | 10 | | business in this State.
On and after December 15, 1997, in | 11 | | addition
to any other tax imposed by this Act, a tax is imposed | 12 | | upon any person engaged
in business as a retailer of cigarettes | 13 | | at the rate of 7 mills per cigarette
sold or otherwise disposed | 14 | | of in the course of such business of this State.
All of the | 15 | | moneys received by the Department of Revenue pursuant to this | 16 | | Act
and the Cigarette Use Tax Act from the additional taxes | 17 | | imposed by this
amendatory Act of 1997, shall be paid each | 18 | | month into the Common School Fund.
On and after July 1, 2002, | 19 | | in addition to any other tax imposed by this Act,
a tax is | 20 | | imposed upon any person engaged in business as a retailer of
| 21 | | cigarettes at the rate of 20.0 mills per cigarette sold or | 22 | | otherwise disposed
of
in the course of such business in this | 23 | | State.
Beginning on March 1, 2011, in addition to any other tax | 24 | | imposed by this Act, a tax is imposed upon any person engaged | 25 | | in business as a retailer of cigarettes at the rate of 50.5 | 26 | | mills per cigarette sold or otherwise disposed of in the course |
| | | 09600SB0044ham007 | - 4 - | LRB096 03720 HLH 44934 a |
|
| 1 | | of such business in this State. Of the moneys received by the | 2 | | Department of Revenue under this Act and the Cigarette Use Tax | 3 | | Act from the additional taxes imposed by this amendatory Act of | 4 | | the 96th General Assembly (i) an amount equal to 0.5 mills per | 5 | | cigarette sold or otherwise disposed of shall be paid each | 6 | | month into the Long-Term Care Provider Fund and (ii) the | 7 | | balance shall be paid each month (A) into the General Revenue | 8 | | Fund beginning on March 1, 2011 and through June 30, 2011, and | 9 | | (B) into the Fund for the Advancement of Education, a special | 10 | | fund in the State treasury, beginning on July 1, 2011. The | 11 | | payment of such taxes shall be evidenced by a stamp affixed to
| 12 | | each original package of cigarettes, or an authorized | 13 | | substitute for such stamp
imprinted on each original package of | 14 | | such cigarettes underneath the sealed
transparent outside | 15 | | wrapper of such original package, as hereinafter provided.
| 16 | | However, such taxes are not imposed upon any activity in such | 17 | | business in
interstate commerce or otherwise, which activity | 18 | | may not under
the Constitution and statutes of the United | 19 | | States be made the subject of
taxation by this State.
| 20 | | Beginning on the effective date of this amendatory Act of | 21 | | the 92nd General
Assembly and through June 30, 2006,
all of the | 22 | | moneys received by the Department of Revenue pursuant to this | 23 | | Act
and the Cigarette Use Tax Act, other than the moneys that | 24 | | are dedicated to the Common
School Fund, shall be distributed | 25 | | each month as follows: first, there shall be
paid into the | 26 | | General Revenue Fund an amount which, when added to the amount
|
| | | 09600SB0044ham007 | - 5 - | LRB096 03720 HLH 44934 a |
|
| 1 | | paid into the Common School Fund for that month, equals | 2 | | $33,300,000, except that in the month of August of 2004, this | 3 | | amount shall equal $83,300,000; then, from
the moneys | 4 | | remaining, if any amounts required to be paid into the General
| 5 | | Revenue Fund in previous months remain unpaid, those amounts | 6 | | shall be paid into
the General Revenue Fund;
then, beginning on | 7 | | April 1, 2003, from the moneys remaining, $5,000,000 per
month | 8 | | shall be paid into the School Infrastructure Fund; then, if any | 9 | | amounts
required to be paid into the School Infrastructure Fund | 10 | | in previous months
remain unpaid, those amounts shall be paid | 11 | | into the School Infrastructure
Fund;
then the moneys remaining, | 12 | | if any, shall be paid into the Long-Term Care
Provider Fund.
To | 13 | | the extent that more than $25,000,000 has been paid into the | 14 | | General
Revenue Fund and Common School Fund per month for the | 15 | | period of July 1, 1993
through the effective date of this | 16 | | amendatory Act of 1994 from combined
receipts
of the Cigarette | 17 | | Tax Act and the Cigarette Use Tax Act, notwithstanding the
| 18 | | distribution provided in this Section, the Department of | 19 | | Revenue is hereby
directed to adjust the distribution provided | 20 | | in this Section to increase the
next monthly payments to the | 21 | | Long Term Care Provider Fund by the amount paid to
the General | 22 | | Revenue Fund and Common School Fund in excess of $25,000,000 | 23 | | per
month and to decrease the next monthly payments to the | 24 | | General Revenue Fund and
Common School Fund by that same excess | 25 | | amount.
| 26 | | Beginning on July 1, 2006, all of the moneys received by |
| | | 09600SB0044ham007 | - 6 - | LRB096 03720 HLH 44934 a |
|
| 1 | | the Department of Revenue pursuant to this Act and the | 2 | | Cigarette Use Tax Act, other than the moneys that are dedicated | 3 | | to the Common School Fund and, beginning on the effective date | 4 | | of this amendatory Act of the 96th General Assembly, other than | 5 | | the moneys from the additional taxes imposed by this amendatory | 6 | | Act of the 96th General Assembly that must be paid each month | 7 | | into the General Revenue Fund, the Long-Term Care Provider | 8 | | Fund, and the Fund for the Advancement of Education , shall be | 9 | | distributed each month as follows: first, there shall be paid | 10 | | into the General Revenue Fund an amount that, when added to the | 11 | | amount paid into the Common School Fund for that month, equals | 12 | | $29,200,000; then, from the moneys remaining, if any amounts | 13 | | required to be paid into the General Revenue Fund in previous | 14 | | months remain unpaid, those amounts shall be paid into the | 15 | | General Revenue Fund; then from the moneys remaining, | 16 | | $5,000,000 per month shall be paid into the School | 17 | | Infrastructure Fund; then, if any amounts required to be paid | 18 | | into the School Infrastructure Fund in previous months remain | 19 | | unpaid, those amounts shall be paid into the School | 20 | | Infrastructure Fund; then the moneys remaining, if any, shall | 21 | | be paid into the Long-Term Care Provider Fund.
| 22 | | When any tax imposed herein terminates or has terminated, | 23 | | distributors
who have bought stamps while such tax was in | 24 | | effect and who therefore paid
such tax, but who can show, to | 25 | | the Department's satisfaction, that they
sold the cigarettes to | 26 | | which they affixed such stamps after such tax had
terminated |
| | | 09600SB0044ham007 | - 7 - | LRB096 03720 HLH 44934 a |
|
| 1 | | and did not recover the tax or its equivalent from purchasers,
| 2 | | shall be allowed by the Department to take credit for such | 3 | | absorbed tax
against subsequent tax stamp purchases from the | 4 | | Department by such
distributor.
| 5 | | The impact of the tax levied by this Act is imposed upon | 6 | | the retailer
and shall be prepaid or pre-collected by the | 7 | | distributor for the purpose of
convenience and facility only, | 8 | | and the amount of the tax shall be added to
the price of the | 9 | | cigarettes sold by such distributor. Collection of the tax
| 10 | | shall be evidenced by a stamp or stamps affixed to each | 11 | | original package of
cigarettes, as hereinafter provided.
| 12 | | Each distributor shall collect the tax from the retailer at | 13 | | or before
the time of the sale, shall affix the stamps as | 14 | | hereinafter required, and
shall remit the tax collected from | 15 | | retailers to the Department, as
hereinafter provided. Any | 16 | | distributor who fails to properly collect and pay
the tax | 17 | | imposed by this Act shall be liable for the tax. Any | 18 | | distributor having
cigarettes to which stamps have been affixed | 19 | | in his possession for sale on the
effective date of this | 20 | | 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 |
| | | 09600SB0044ham007 | - 8 - | LRB096 03720 HLH 44934 a |
|
| 1 | | payment, less the
discount provided in subsection (b), shall be | 2 | | due when the distributor first
makes a purchase of cigarette | 3 | | tax stamps after the effective date of this
amendatory Act of | 4 | | 1993, or on the first due date of a return under this Act
after | 5 | | the effective date of this amendatory Act of 1993, whichever | 6 | | occurs
first. Any distributor having cigarettes to which stamps | 7 | | have been affixed
in his possession for sale on December 15, | 8 | | 1997
shall not be required to pay the additional tax imposed by | 9 | | this amendatory Act
of 1997 on such stamped cigarettes.
| 10 | | Any distributor having cigarettes to which stamps have been | 11 | | affixed in his
or her
possession for sale on July 1, 2002 shall | 12 | | not be required to pay the additional
tax imposed by this | 13 | | amendatory Act of the 92nd General Assembly on those
stamped
| 14 | | cigarettes. Any retailer having cigarettes in his or her | 15 | | possession on March 1, 2011 to which tax stamps have been | 16 | | affixed is not required to pay the additional tax that begins | 17 | | on March 1, 2011 imposed by this amendatory Act of the 96th | 18 | | General Assembly on those stamped cigarettes. Any distributor | 19 | | having cigarettes in his or her possession on March 1, 2011 to | 20 | | which tax stamps have been affixed is required to pay the | 21 | | additional tax that begins on March 1, 2011 imposed by this | 22 | | amendatory Act of the 96th General Assembly to the extent the | 23 | | calendar year 2011 average monthly volume of cigarette stamps | 24 | | in the distributor's possession exceeds the average monthly | 25 | | volume of cigarette stamps purchased by the distributor in | 26 | | calendar year 2010. This payment, less the discount provided in |
| | | 09600SB0044ham007 | - 9 - | LRB096 03720 HLH 44934 a |
|
| 1 | | subsection (b), is due when the distributor first makes a | 2 | | purchase of cigarette stamps on or after March 1, 2011 or on | 3 | | the first due date of a return under this Act occurring on or | 4 | | after March 1, 2011, whichever occurs first.
| 5 | | Distributors making sales of cigarettes to secondary | 6 | | distributors shall add the amount of the tax to the price of | 7 | | the cigarettes sold by the distributors. Secondary | 8 | | distributors making sales of cigarettes to retailers shall | 9 | | include the amount of the tax in the price of the cigarettes | 10 | | sold to retailers. The amount of tax shall not be less than the | 11 | | amount of taxes imposed by the State and all local | 12 | | jurisdictions. The amount of local taxes shall be calculated | 13 | | based on the location of the retailer's place of business shown | 14 | | on the retailer's certificate of registration or | 15 | | sub-registration issued to the retailer pursuant to Section 2a | 16 | | of the Retailers' Occupation Tax Act. The original packages of | 17 | | cigarettes sold to the retailer shall bear all the required | 18 | | stamps, or other indicia, for the taxes included in the price | 19 | | of cigarettes. | 20 | | The amount of the Cigarette Tax imposed by this Act shall | 21 | | be separately
stated, apart from the price of the goods, by | 22 | | distributors, secondary distributors, and
retailers, in all | 23 | | bills and sales invoices.
| 24 | | (b) The distributor shall be required to collect the taxes | 25 | | provided
under paragraph (a) hereof, and, to cover the costs of | 26 | | such collection,
shall be allowed a discount during any year |
| | | 09600SB0044ham007 | - 10 - | LRB096 03720 HLH 44934 a |
|
| 1 | | commencing July 1st and ending
the following June 30th in | 2 | | accordance with the schedule set out
hereinbelow, which | 3 | | discount shall be allowed at the time of purchase of the
stamps | 4 | | when purchase is required by this Act, or at the time when the | 5 | | tax
is remitted to the Department without the purchase of | 6 | | stamps from the
Department when that method of paying the tax | 7 | | is required or authorized by
this Act. Prior to December 1, | 8 | | 1985, a discount equal to 1 2/3% of
the amount of the tax up to | 9 | | and including the first $700,000 paid hereunder by
such | 10 | | distributor to the Department during any such year; 1 1/3% of | 11 | | the next
$700,000 of tax or any part thereof, paid hereunder by | 12 | | such distributor to the
Department during any such year; 1% of | 13 | | the next $700,000 of tax, or any part
thereof, paid hereunder | 14 | | by such distributor to the Department during any such
year, and | 15 | | 2/3 of 1% of the amount of any additional tax paid hereunder by | 16 | | such
distributor to the Department during any such year shall | 17 | | apply. On and after
December 1, 1985, a discount equal to 1.75% | 18 | | of the amount of the tax payable
under this Act up to and | 19 | | including the first $3,000,000 paid hereunder by such
| 20 | | distributor to the Department during any such year and 1.5% of | 21 | | the amount of
any additional tax paid hereunder by such | 22 | | distributor to the Department during
any such year shall apply.
| 23 | | Two or more distributors that use a common means of | 24 | | affixing revenue tax
stamps or that are owned or controlled by | 25 | | the same interests shall be
treated as a single distributor for | 26 | | the purpose of computing the discount.
|
| | | 09600SB0044ham007 | - 11 - | LRB096 03720 HLH 44934 a |
|
| 1 | | (c) The taxes herein imposed are in addition to all other | 2 | | occupation or
privilege taxes imposed by the State of Illinois, | 3 | | or by any political
subdivision thereof, or by any municipal | 4 | | corporation.
| 5 | | (Source: P.A. 96-1027, eff. 7-12-10.)
| 6 | | (35 ILCS 130/3) (from Ch. 120, par. 453.3)
| 7 | | Sec. 3. Affixing tax stamp; remitting tax to the | 8 | | Department. Payment of
the taxes imposed by Section 2 of this | 9 | | Act shall
(except as hereinafter provided) be evidenced by | 10 | | revenue tax stamps affixed
to each original package of | 11 | | cigarettes. Each distributor of cigarettes,
before delivering | 12 | | or causing to be delivered any original package of
cigarettes | 13 | | in this State to a purchaser, shall firmly affix a proper stamp
| 14 | | or stamps to each such package, or (in case of manufacturers of | 15 | | cigarettes
in original packages which are contained inside a | 16 | | sealed transparent
wrapper) shall imprint the required | 17 | | language on the original package of
cigarettes beneath such | 18 | | outside wrapper, as hereinafter provided.
| 19 | | No stamp or imprint may be affixed to, or made upon, any | 20 | | package of
cigarettes unless that package complies with all | 21 | | requirements of the federal
Cigarette Labeling and Advertising | 22 | | Act, 15 U.S.C. 1331 and following, for the
placement of labels, | 23 | | warnings, or any other information upon a package of
cigarettes | 24 | | that is sold within the United States. Under the authority of
| 25 | | Section 6, the Department shall revoke the license of any |
| | | 09600SB0044ham007 | - 12 - | LRB096 03720 HLH 44934 a |
|
| 1 | | distributor that is
determined to have violated this paragraph.
| 2 | | A person may not affix a stamp on a package of cigarettes, | 3 | | cigarette papers,
wrappers, or tubes if that individual package | 4 | | has been marked for export
outside the United States with a | 5 | | label or notice in compliance with Section
290.185 of Title 27 | 6 | | of the Code of Federal Regulations. It is not a defense to
a | 7 | | proceeding for violation of this paragraph that the label or | 8 | | notice has been
removed, mutilated, obliterated, or altered in | 9 | | any manner.
| 10 | | Only distributors licensed under this Act and | 11 | | transporters, as defined in Section 9c of this Act, may possess | 12 | | unstamped original packages of cigarettes. Prior to shipment to | 13 | | a secondary distributor or an Illinois retailer, a stamp shall | 14 | | be applied to each original package of cigarettes sold to the | 15 | | secondary distributor or retailer. A distributor may apply tax | 16 | | stamps only to original packages of cigarettes purchased or | 17 | | obtained directly from an in-state maker, manufacturer, or | 18 | | fabricator licensed as a distributor under Section 4 of this | 19 | | Act or an out-of-state maker, manufacturer, or fabricator | 20 | | holding a permit under Section 4b of this Act. A licensed | 21 | | distributor may ship or otherwise cause to be delivered | 22 | | unstamped original packages of cigarettes in, into, or from | 23 | | this State. A licensed distributor may transport unstamped | 24 | | original packages of cigarettes to a facility, wherever | 25 | | located, owned or controlled by such distributor; however, a | 26 | | distributor may not transport unstamped original packages of |
| | | 09600SB0044ham007 | - 13 - | LRB096 03720 HLH 44934 a |
|
| 1 | | cigarettes to a facility where retail sales of cigarettes take | 2 | | place or to a facility where a secondary distributor makes | 3 | | sales for resale. Any licensed distributor that ships or | 4 | | otherwise causes to be delivered unstamped original packages of | 5 | | cigarettes into, within, or from this State shall ensure that | 6 | | the invoice or equivalent documentation and the bill of lading | 7 | | or freight bill for the shipment identifies the true name and | 8 | | address of the consignor or seller, the true name and address | 9 | | of the consignee or purchaser, and the quantity by brand style | 10 | | of the cigarettes so transported, provided that this Section | 11 | | shall not be construed as to impose any requirement or | 12 | | liability upon any common or contract carrier. | 13 | | The Department, or any person authorized by the Department, | 14 | | shall
sell such stamps only to persons holding valid
licenses | 15 | | as distributors under this Act. On and after July 1, 2003, | 16 | | payment
for such stamps must be made by means of
electronic | 17 | | funds transfer. The Department may refuse to sell stamps to any
| 18 | | person who does not comply
with the provisions of this Act.
| 19 | | Beginning on the effective date of this amendatory Act of the | 20 | | 92nd General
Assembly and through June 30, 2002, persons | 21 | | holding valid licenses as
distributors
may purchase cigarette | 22 | | tax stamps up to an amount equal to 115% of the
distributor's | 23 | | average monthly cigarette tax stamp purchases over the 12
| 24 | | calendar
months prior to the effective date of this amendatory | 25 | | Act of the 92nd General
Assembly.
| 26 | | Prior to December 1, 1985, the Department shall allow a |
| | | 09600SB0044ham007 | - 14 - | LRB096 03720 HLH 44934 a |
|
| 1 | | distributor
21 days in which to make final
payment of the | 2 | | amount to be paid for such stamps, by allowing the
distributor | 3 | | to make payment for the stamps at the time of purchasing them
| 4 | | with a draft which shall be in such form as the Department | 5 | | prescribes, and
which shall be payable within 21 days | 6 | | thereafter: Provided that such
distributor has filed with the | 7 | | Department, and has received the
Department's approval of, a | 8 | | bond, which is in addition to the bond required
under Section 4 | 9 | | of this Act, payable to the Department in an amount equal
to | 10 | | 80% of such distributor's average monthly tax liability to
the | 11 | | Department under this Act during the preceding calendar year or | 12 | | $500,000,
whichever is less. The Bond shall be joint and
| 13 | | several and shall be in the form of a surety company bond in | 14 | | such form as
the Department prescribes, or it may be in the | 15 | | form of a bank certificate
of deposit or bank letter of credit. | 16 | | The bond shall be conditioned upon the
distributor's payment of | 17 | | amount of any 21-day draft which the Department
accepts from | 18 | | that distributor for the delivery of stamps to that
distributor | 19 | | under this Act. The distributor's failure to pay any such
| 20 | | draft, when due, shall also make such distributor automatically | 21 | | liable to
the Department for a penalty equal to 25% of the | 22 | | amount of such draft.
| 23 | | On and after December 1, 1985 and until July 1, 2003, the | 24 | | Department
shall allow a distributor
30 days in which to make
| 25 | | final payment of the amount to be paid for such stamps, by | 26 | | allowing the
distributor to make payment for the stamps at the |
| | | 09600SB0044ham007 | - 15 - | LRB096 03720 HLH 44934 a |
|
| 1 | | time of purchasing them
with a draft which shall be in such | 2 | | form as the Department prescribes, and
which shall be payable | 3 | | within 30 days thereafter, and beginning on January 1,
2003 and | 4 | | thereafter, the draft shall be payable by means of electronic | 5 | | funds
transfer: Provided that such
distributor has filed with | 6 | | the Department, and has received the
Department's approval of, | 7 | | a bond, which is in addition to the bond required
under Section | 8 | | 4 of this Act, payable to the Department in an amount equal
to | 9 | | 150% of such distributor's average monthly tax liability to the
| 10 | | Department under this Act during the preceding calendar year or | 11 | | $750,000,
whichever is less, except that as to bonds filed on | 12 | | or after January 1,
1987, such additional bond shall be in an | 13 | | amount equal to 100% of such
distributor's average monthly tax | 14 | | liability under this Act during the
preceding calendar year or | 15 | | $750,000, whichever is less. The bond shall be
joint and | 16 | | several and shall be in the form of a surety company bond in | 17 | | such
form as the Department prescribes, or it may be in the | 18 | | form of a bank
certificate of deposit or bank letter of credit.
| 19 | | The bond shall be conditioned upon the distributor's payment of | 20 | | the amount
of any 30-day draft which the Department accepts | 21 | | from that distributor for
the delivery of stamps to that | 22 | | distributor under this Act. The
distributor's failure to pay | 23 | | any such draft, when due, shall also make such
distributor | 24 | | automatically liable to the Department for a penalty equal to
| 25 | | 25% of the amount of such draft.
| 26 | | Beginning on the effective date of this amendatory Act of |
| | | 09600SB0044ham007 | - 16 - | LRB096 03720 HLH 44934 a |
|
| 1 | | the 96th General Assembly, the Department
shall allow a | 2 | | distributor
10 days in which to make
final payment of the | 3 | | amount to be paid for such stamps, by allowing the
distributor | 4 | | to make payment for the stamps at the time of purchasing them
| 5 | | with a draft, which shall be payable by means of electronic | 6 | | funds transfer and in such form as the Department prescribes, | 7 | | and
which shall be payable within 10 days thereafter, provided | 8 | | that such
distributor has filed with the Department, and has | 9 | | received the
Department's approval of, a bond, which is in | 10 | | addition to the bond required
under Section 4 of this Act, | 11 | | payable to the Department in an amount equal
to 100% of that | 12 | | distributor's average monthly tax liability to the
Department | 13 | | under this Act during the preceding calendar year or $750,000,
| 14 | | whichever is less. The bond shall be
joint and several and | 15 | | shall be in the form of a surety company bond in such
form as | 16 | | the Department prescribes, or it may be in the form of a bank
| 17 | | certificate of deposit or bank letter of credit.
The bond shall | 18 | | be conditioned upon the distributor's payment of the amount
of | 19 | | any 10-day draft which the Department accepts from that | 20 | | distributor for
the delivery of stamps to that distributor | 21 | | under this Act. The
distributor's failure to pay any such | 22 | | draft, when due, shall also make such
distributor automatically | 23 | | liable to the Department for a penalty equal to
25% of the | 24 | | amount of such draft. | 25 | | Every prior continuous compliance taxpayer shall be exempt | 26 | | from all
requirements under this Section concerning the |
| | | 09600SB0044ham007 | - 17 - | LRB096 03720 HLH 44934 a |
|
| 1 | | furnishing of such bond, as
defined in this Section, as a | 2 | | condition precedent to his being authorized
to engage in the | 3 | | business licensed under this Act. This exemption shall
continue | 4 | | for each such taxpayer until such time as he may be determined | 5 | | by
the Department to be delinquent in the filing of any | 6 | | returns, or is
determined by the Department (either through the | 7 | | Department's issuance of a
final assessment which has become | 8 | | final under the Act, or by the taxpayer's
filing of a return | 9 | | which admits tax to be due that is not paid) to be
delinquent | 10 | | or deficient in the paying of any tax under this Act, at which
| 11 | | time that taxpayer shall become subject to the bond | 12 | | requirements of this
Section and, as a condition of being | 13 | | allowed to continue to engage in the
business licensed under | 14 | | this Act, shall be required to furnish bond to the
Department | 15 | | in such form as provided in this Section. Such taxpayer shall
| 16 | | furnish such bond for a period of 2 years, after which, if the | 17 | | taxpayer has
not been delinquent in the filing of any returns, | 18 | | or delinquent or
deficient in the paying of any tax under this | 19 | | Act, the Department may
reinstate such person as a prior | 20 | | continuance compliance taxpayer. Any
taxpayer who fails to pay | 21 | | an admitted or established liability under this
Act may also be | 22 | | required to post bond or other acceptable security with the
| 23 | | Department guaranteeing the payment of such admitted or | 24 | | established liability.
| 25 | | Any person aggrieved by any decision of the Department | 26 | | under this
Section may, within the time allowed by law, protest |
| | | 09600SB0044ham007 | - 18 - | LRB096 03720 HLH 44934 a |
|
| 1 | | and request a hearing,
whereupon the Department shall give | 2 | | notice and shall hold a hearing in
conformity with the | 3 | | provisions of this Act and then issue its final
administrative | 4 | | decision in the matter to such person. In the absence of
such a | 5 | | protest filed within the time allowed by law, the Department's
| 6 | | decision shall become final without any further determination | 7 | | being made or
notice given.
| 8 | | The Department shall discharge any surety and shall release | 9 | | and return
any bond or security deposited, assigned, pledged, | 10 | | or otherwise provided to
it by a taxpayer under this Section | 11 | | within 30 days after:
| 12 | | (1) Such taxpayer becomes a prior continuous compliance | 13 | | taxpayer; or
| 14 | | (2) Such taxpayer has ceased to collect receipts on which | 15 | | he is
required to remit tax to the Department, has filed a | 16 | | final tax return, and
has paid to the Department an amount | 17 | | sufficient to discharge his remaining
tax liability as | 18 | | determined by the Department under this Act. The
Department | 19 | | shall make a final determination of the taxpayer's outstanding
| 20 | | tax liability as expeditiously as possible after his final tax | 21 | | return has
been filed. If the Department cannot make such final | 22 | | determination within
45 days after receiving the final tax | 23 | | return, within such period it shall
so notify the taxpayer, | 24 | | stating its reasons therefor.
| 25 | | The Department may authorize distributors to affix revenue | 26 | | tax stamps by
imprinting tax meter stamps upon original |
| | | 09600SB0044ham007 | - 19 - | LRB096 03720 HLH 44934 a |
|
| 1 | | packages of cigarettes. The
Department shall adopt rules and | 2 | | regulations relating to the imprinting of
such tax meter stamps | 3 | | as will result in payment of the proper taxes as
herein | 4 | | imposed. No distributor may affix revenue tax stamps to | 5 | | original
packages of cigarettes by imprinting tax meter stamps | 6 | | thereon unless such
distributor has first obtained permission | 7 | | from the Department to employ
this method of affixation. The | 8 | | Department shall regulate the use of tax
meters and may, to | 9 | | assure the proper collection of the taxes imposed by
this Act, | 10 | | revoke or suspend the privilege, theretofore granted by the
| 11 | | Department to any distributor, to imprint tax meter stamps upon | 12 | | original
packages of cigarettes.
| 13 | | Illinois cigarette manufacturers who place their | 14 | | cigarettes in original
packages which are contained inside a | 15 | | sealed transparent wrapper, and
similar out-of-State cigarette | 16 | | manufacturers who elect to qualify and are
accepted by the | 17 | | Department as distributors under Section 4b(a) of this Act,
| 18 | | shall pay the taxes imposed by this Act by remitting the amount | 19 | | thereof to
the Department by the 5th day of each month covering | 20 | | cigarettes shipped or
otherwise delivered in Illinois to | 21 | | purchasers during the preceding calendar
month. Such | 22 | | manufacturers of cigarettes in original packages which are
| 23 | | contained inside a sealed transparent wrapper, before | 24 | | delivering such
cigarettes or causing such cigarettes to be | 25 | | delivered in this State to
purchasers, shall evidence their | 26 | | obligation to remit the taxes due with
respect to such |
| | | 09600SB0044ham007 | - 20 - | LRB096 03720 HLH 44934 a |
|
| 1 | | cigarettes by imprinting language to be prescribed by the
| 2 | | Department on each original package of such cigarettes | 3 | | underneath the
sealed transparent outside wrapper of such | 4 | | original package, in such place
thereon and in such manner as | 5 | | the Department may designate. Such imprinted
language shall | 6 | | acknowledge the manufacturer's payment of or liability for
the | 7 | | tax imposed by this Act with respect to the distribution of | 8 | | such
cigarettes.
| 9 | | A distributor shall not affix, or cause to be affixed, any | 10 | | stamp or imprint
to a package of cigarettes, as provided for in | 11 | | this Section, if the tobacco
product
manufacturer, as defined | 12 | | in Section 10 of the Tobacco Product Manufacturers'
Escrow
Act, | 13 | | that made or sold the cigarettes has failed to become a | 14 | | participating
manufacturer, as defined in subdivision (a)(1) | 15 | | of Section 15 of the Tobacco
Product
Manufacturers' Escrow Act, | 16 | | or has failed to create a qualified escrow fund for
any | 17 | | cigarettes manufactured by the tobacco product manufacturer | 18 | | and sold in
this State or otherwise failed to bring itself into | 19 | | compliance with subdivision
(a)(2) of Section 15 of the Tobacco | 20 | | Product
Manufacturers' Escrow Act.
| 21 | | (Source: P.A. 95-1053, eff. 1-1-10; 96-782, eff. 1-1-10; | 22 | | 96-1027, eff. 7-12-10.)
| 23 | | Section 15. The Cigarette Use Tax Act is amended by | 24 | | changing Sections 2, 3, and 12 as follows:
|
| | | 09600SB0044ham007 | - 21 - | LRB096 03720 HLH 44934 a |
|
| 1 | | (35 ILCS 135/2) (from Ch. 120, par. 453.32)
| 2 | | Sec. 2.
A tax is imposed upon the privilege of using | 3 | | cigarettes in this
State, at the rate of 6 mills per cigarette | 4 | | so used. On and after
December 1, 1985, in addition to any | 5 | | other tax imposed by this Act, a tax
is imposed upon the | 6 | | privilege of using cigarettes in this State at a rate
of 4 | 7 | | mills per cigarette so used. On and after the effective date of | 8 | | this
amendatory Act of 1989, in addition to any other tax | 9 | | imposed by this Act, a
tax is imposed upon the privilege of | 10 | | using cigarettes in this State at the
rate of 5 mills per | 11 | | cigarette so used. On and after the effective date of this
| 12 | | amendatory Act of 1993, in addition to any other tax imposed by | 13 | | this Act, a tax
is imposed upon the privilege of using | 14 | | cigarettes in this State at a rate of 7
mills per cigarette so | 15 | | used. On and after December 15,
1997, in addition to any other | 16 | | tax imposed by this Act, a tax
is imposed upon the privilege of | 17 | | using cigarettes in this State at a rate of
7 mills per | 18 | | cigarette so used.
On and after July 1, 2002, in addition to | 19 | | any other tax imposed by
this Act, a tax is imposed
upon the | 20 | | privilege of using cigarettes in this State at a rate of 20.0 | 21 | | mills
per cigarette so used. Beginning on March 1, 2011, in | 22 | | addition to any other tax imposed by this Act, a tax is imposed | 23 | | upon the privilege of using cigarettes in this State at a rate | 24 | | of 50.5 mills per cigarette so used.
The taxes herein imposed | 25 | | shall be in
addition to
all other occupation or privilege taxes | 26 | | imposed by the State of Illinois or by
any political |
| | | 09600SB0044ham007 | - 22 - | LRB096 03720 HLH 44934 a |
|
| 1 | | subdivision thereof or by any municipal corporation.
| 2 | | When any tax imposed herein terminates or has terminated, | 3 | | distributors
who have bought stamps while such tax was in | 4 | | effect and who therefore paid
such tax, but who can show, to | 5 | | the Department's satisfaction, that they
sold the cigarettes to | 6 | | which they affixed such stamps after such tax had
terminated | 7 | | and did not recover the tax or its equivalent from purchasers,
| 8 | | shall be allowed by the Department to take credit for such | 9 | | absorbed tax
against subsequent tax stamp purchases from the | 10 | | Department by such
distributors.
| 11 | | When the word "tax" is used in this Act, it shall include | 12 | | any tax or tax
rate imposed by this Act and shall mean the | 13 | | singular of "tax" or the plural
"taxes" as the context may | 14 | | require.
| 15 | | Any distributor having cigarettes to which stamps have been | 16 | | affixed in
his possession for sale on the effective date of | 17 | | this amendatory Act of
1989 shall not be required to pay the | 18 | | additional tax imposed by this
amendatory Act of 1989 on such | 19 | | stamped cigarettes. Any distributor having
cigarettes to which | 20 | | stamps have been affixed in his or her possession for sale
at | 21 | | 12:01 a.m. on the effective date of this amendatory Act of | 22 | | 1993, is required
to pay the additional tax imposed by this | 23 | | amendatory Act of 1993 on such
stamped cigarettes. This payment | 24 | | shall be due when the distributor first makes
a purchase of | 25 | | cigarette tax stamps after the effective date of this | 26 | | amendatory
Act of 1993, or on the first due date of a return |
| | | 09600SB0044ham007 | - 23 - | LRB096 03720 HLH 44934 a |
|
| 1 | | under this Act after the
effective date of this amendatory Act | 2 | | of 1993, whichever occurs first. Once a
distributor tenders | 3 | | payment of the additional tax to the Department, the
| 4 | | distributor may purchase stamps from the Department.
Any | 5 | | distributor having cigarettes to which stamps have been affixed
| 6 | | in his possession for sale on December 15, 1997
shall not be | 7 | | required to pay the additional tax imposed by this amendatory | 8 | | Act
of 1997 on such stamped cigarettes.
| 9 | | Any distributor having cigarettes to which stamps have been | 10 | | affixed in his
or her possession for sale on July 1, 2002 shall | 11 | | not be required to pay the
additional
tax imposed by this | 12 | | amendatory Act of the 92nd General Assembly on those
stamped
| 13 | | cigarettes. Any retailer having cigarettes in his or her | 14 | | possession on March 1, 2011 to which tax stamps have been | 15 | | affixed is not required to pay the additional tax that begins | 16 | | on March 1, 2011 imposed by this amendatory Act of the 96th | 17 | | General Assembly on those stamped cigarettes. Any distributor | 18 | | having cigarettes in his or her possession on March 1, 2011 to | 19 | | which tax stamps have been affixed is required to pay the | 20 | | additional tax that begins on March 1, 2011 imposed by this | 21 | | amendatory Act of the 96th General Assembly to the extent the | 22 | | calendar year 2011 average monthly volume of cigarette stamps | 23 | | in the distributor's possession exceeds the average monthly | 24 | | volume of cigarette stamps purchased by the distributor in | 25 | | calendar year 2010. This payment, less the discount provided in | 26 | | Section 3, is due when the distributor first makes a purchase |
| | | 09600SB0044ham007 | - 24 - | LRB096 03720 HLH 44934 a |
|
| 1 | | of cigarette stamps on or after March 1, 2011 or on the first | 2 | | due date of a return under this Act occurring on or after March | 3 | | 1, 2011, whichever occurs first.
| 4 | | (Source: P.A. 92-536, eff. 6-6-02.)
| 5 | | (35 ILCS 135/3) (from Ch. 120, par. 453.33)
| 6 | | Sec. 3. Stamp payment. The tax hereby imposed shall be | 7 | | collected by a
distributor
maintaining a place of business in | 8 | | this State or a distributor authorized
by the Department | 9 | | pursuant to Section 7 hereof to collect the tax, and the
amount | 10 | | of the tax shall be added to the price of the cigarettes sold | 11 | | by
such distributor. Collection of the tax shall be evidenced | 12 | | by a stamp or
stamps affixed to each original package of | 13 | | cigarettes or by an authorized
substitute for such stamp | 14 | | imprinted on each original package of such
cigarettes | 15 | | underneath the sealed transparent outside wrapper of such
| 16 | | original package, except as hereinafter provided. Each | 17 | | distributor who is
required or authorized to collect the tax | 18 | | herein imposed, before delivering
or causing to be delivered | 19 | | any original packages of cigarettes in this
State to any | 20 | | purchaser, shall firmly affix a proper stamp or stamps to each
| 21 | | such package, or (in the case of manufacturers of cigarettes in | 22 | | original
packages which are contained inside a sealed | 23 | | transparent wrapper) shall
imprint the required language on the | 24 | | original package of cigarettes beneath
such outside wrapper as | 25 | | hereinafter provided. Such stamp or stamps need not
be affixed |
| | | 09600SB0044ham007 | - 25 - | LRB096 03720 HLH 44934 a |
|
| 1 | | to the original package of any cigarettes with respect to which
| 2 | | the distributor is required to affix a like stamp or stamps by | 3 | | virtue of
the Cigarette Tax Act, however, and no tax imprint | 4 | | need be placed
underneath the sealed transparent wrapper of an | 5 | | original package of
cigarettes with respect to which the | 6 | | distributor is required or authorized
to employ a like tax | 7 | | imprint by virtue of the Cigarette Tax Act.
| 8 | | No stamp or imprint may be affixed to, or made upon, any | 9 | | package of
cigarettes unless that package complies with all | 10 | | requirements of the federal
Cigarette Labeling and Advertising | 11 | | Act, 15 U.S.C. 1331 and following, for the
placement of labels, | 12 | | warnings, or any other information upon a package of
cigarettes | 13 | | that is sold within the United States. Under the authority of
| 14 | | Section 6, the Department shall revoke the license of any | 15 | | distributor that is
determined to have violated this paragraph.
| 16 | | A person may not affix a stamp on a package of cigarettes, | 17 | | cigarette papers,
wrappers, or tubes if that individual package | 18 | | has been marked for export
outside the United States with a | 19 | | label or notice in compliance with Section
290.185 of Title 27 | 20 | | of the Code of Federal Regulations. It is not a defense to
a | 21 | | proceeding for violation of this paragraph that the label or | 22 | | notice has been
removed, mutilated, obliterated, or altered in | 23 | | any manner.
| 24 | | Only distributors licensed under this Act and | 25 | | transporters, as defined in Section 9c of the Cigarette Tax | 26 | | Act, may possess unstamped original packages of cigarettes. |
| | | 09600SB0044ham007 | - 26 - | LRB096 03720 HLH 44934 a |
|
| 1 | | Prior to shipment to an Illinois retailer or secondary | 2 | | distributor, a stamp shall be applied to each original package | 3 | | of cigarettes sold to the retailer or secondary distributor. A | 4 | | distributor may apply a tax stamp only to an original package | 5 | | of cigarettes purchased or obtained directly from an in-state | 6 | | maker, manufacturer, or fabricator licensed as a distributor | 7 | | under Section 4 of this Act or an out-of-state maker, | 8 | | manufacturer, or fabricator holding a permit under Section 7 of | 9 | | this Act. A licensed distributor may ship or otherwise cause to | 10 | | be delivered unstamped original packages of cigarettes in, | 11 | | into, or from this State. A licensed distributor may transport | 12 | | unstamped original packages of cigarettes to a facility, | 13 | | wherever located, owned or controlled by such distributor; | 14 | | however, a distributor may not transport unstamped original | 15 | | packages of cigarettes to a facility where retail sales of | 16 | | cigarettes take place or to a facility where a secondary | 17 | | distributor makes sales for resale. Any licensed distributor | 18 | | that ships or otherwise causes to be delivered unstamped | 19 | | original packages of cigarettes into, within, or from this | 20 | | State shall ensure that the invoice or equivalent documentation | 21 | | and the bill of lading or freight bill for the shipment | 22 | | identifies the true name and address of the consignor or | 23 | | seller, the true name and address of the consignee or | 24 | | purchaser, and the quantity by brand style of the cigarettes so | 25 | | transported, provided that this Section shall not be construed | 26 | | as to impose any requirement or liability upon any common or |
| | | 09600SB0044ham007 | - 27 - | LRB096 03720 HLH 44934 a |
|
| 1 | | contract carrier. | 2 | | Distributors making sales of cigarettes to secondary | 3 | | distributors shall add the amount of the tax to the price of | 4 | | the cigarettes sold by the distributors. Secondary | 5 | | distributors making sales of cigarettes to retailers shall | 6 | | include the amount of the tax in the price of the cigarettes | 7 | | sold to retailers. The amount of tax shall not be less than the | 8 | | amount of taxes imposed by the State and all local | 9 | | jurisdictions. The amount of local taxes shall be calculated | 10 | | based on the location of the retailer's place of business shown | 11 | | on the retailer's certificate of registration or | 12 | | sub-registration issued to the retailer pursuant to Section 2a | 13 | | of the Retailers' Occupation Tax Act. The original packages of | 14 | | cigarettes sold by the retailer shall bear all the required | 15 | | stamps, or other indicia, for the taxes included in the price | 16 | | of cigarettes. | 17 | | Stamps, when required hereunder, shall be purchased from | 18 | | the Department, or
any person authorized by the Department, by | 19 | | distributors. On and after July
1, 2003, payment for such | 20 | | stamps must be made by means of
electronic funds transfer. The | 21 | | Department may
refuse to sell stamps to any person who does not | 22 | | comply with the provisions
of this Act. Beginning on June 6, | 23 | | 2002 and through June 30, 2002,
persons holding valid licenses | 24 | | as distributors may purchase cigarette tax
stamps up to an | 25 | | amount equal to 115% of the distributor's average monthly
| 26 | | cigarette tax stamp purchases over the 12 calendar months prior |
| | | 09600SB0044ham007 | - 28 - | LRB096 03720 HLH 44934 a |
|
| 1 | | to June
6, 2002.
| 2 | | Prior to December 1, 1985, the Department shall
allow a | 3 | | distributor
21 days in which to make final
payment of the | 4 | | amount to be paid for such stamps, by allowing the
distributor | 5 | | to make payment for the stamps at the time of purchasing them
| 6 | | with a draft which shall be in such form as the Department | 7 | | prescribes, and
which shall be payable within 21 days | 8 | | thereafter: Provided that such
distributor has filed with the | 9 | | Department, and has received the
Department's approval of, a | 10 | | bond, which is in addition to the bond required
under Section 4 | 11 | | of this Act, payable to the Department in an amount equal
to | 12 | | 80% of such distributor's average monthly tax liability to
the | 13 | | Department under this Act during the preceding calendar year or
| 14 | | $500,000, whichever is less. The bond shall be joint and
| 15 | | several and shall be in the form of a surety company bond in | 16 | | such form as
the Department prescribes, or it may be in the | 17 | | form of a bank certificate
of deposit or bank letter of credit. | 18 | | The bond shall be conditioned upon the
distributor's payment of | 19 | | the amount of any 21-day draft which the
Department accepts | 20 | | from that distributor for the delivery of stamps to that
| 21 | | distributor under this Act. The distributor's failure to pay | 22 | | any such
draft, when due, shall also make such distributor | 23 | | automatically liable to
the Department for a penalty equal to | 24 | | 25% of the amount of such draft.
| 25 | | On and after December 1, 1985 and until July 1, 2003, the | 26 | | Department
shall allow a distributor
30 days in which to make
|
| | | 09600SB0044ham007 | - 29 - | LRB096 03720 HLH 44934 a |
|
| 1 | | final payment of the amount to be paid for such stamps, by | 2 | | allowing the
distributor to make payment for the stamps at the | 3 | | time of purchasing them
with a draft which shall be in such | 4 | | form as the Department prescribes, and
which shall be payable | 5 | | within 30 days thereafter, and beginning on January 1,
2003 and | 6 | | thereafter, the draft shall be payable by means of electronic | 7 | | funds
transfer: Provided that such
distributor has filed with | 8 | | the Department, and has received the
Department's approval of, | 9 | | a bond, which is in addition to the bond required
under Section | 10 | | 4 of this Act, payable to the Department in an amount equal
to | 11 | | 150% of such distributor's average monthly tax liability to the
| 12 | | Department under this Act during the preceding calendar year or | 13 | | $750,000,
whichever is less, except that as to bonds filed on | 14 | | or after January 1,
1987, such additional bond shall be in an | 15 | | amount equal to 100% of such
distributor's average monthly tax | 16 | | liability under this Act during the
preceding calendar year or | 17 | | $750,000, whichever is less. The bond shall be
joint and | 18 | | several and shall be in the form of a surety company bond in | 19 | | such
form as the Department prescribes, or it may be in the | 20 | | form of a bank
certificate of deposit or bank letter of credit.
| 21 | | The bond shall be conditioned upon the distributor's payment of | 22 | | the amount
of any 30-day draft which the Department accepts | 23 | | from that distributor for
the delivery of stamps to that | 24 | | distributor under this Act. The
distributor's failure to pay | 25 | | any such draft, when due, shall also make such
distributor | 26 | | automatically liable to the Department for a penalty equal to
|
| | | 09600SB0044ham007 | - 30 - | LRB096 03720 HLH 44934 a |
|
| 1 | | 25% of the amount of such draft.
| 2 | | Beginning on the effective date of this amendatory Act of | 3 | | the 96th General Assembly, the Department
shall allow a | 4 | | distributor
10 days in which to make
final payment of the | 5 | | amount to be paid for such stamps, by allowing the
distributor | 6 | | to make payment for the stamps at the time of purchasing them
| 7 | | with a draft, which shall be payable by means of electronic | 8 | | funds transfer and in such form as the Department prescribes, | 9 | | and
which shall be payable within 10 days thereafter, provided | 10 | | that such
distributor has filed with the Department, and has | 11 | | received the
Department's approval of, a bond, which is in | 12 | | addition to the bond required
under Section 4 of this Act, | 13 | | payable to the Department in an amount equal
to 100% of that | 14 | | distributor's average monthly tax liability to the
Department | 15 | | under this Act during the preceding calendar year or $750,000,
| 16 | | whichever is less. The bond shall be
joint and several and | 17 | | shall be in the form of a surety company bond in such
form as | 18 | | the Department prescribes, or it may be in the form of a bank
| 19 | | certificate of deposit or bank letter of credit.
The bond shall | 20 | | be conditioned upon the distributor's payment of the amount
of | 21 | | any 10-day draft which the Department accepts from that | 22 | | distributor for
the delivery of stamps to that distributor | 23 | | under this Act. The
distributor's failure to pay any such | 24 | | draft, when due, shall also make such
distributor automatically | 25 | | liable to the Department for a penalty equal to
25% of the | 26 | | amount of such draft. |
| | | 09600SB0044ham007 | - 31 - | LRB096 03720 HLH 44934 a |
|
| 1 | | Every prior continuous compliance taxpayer shall be exempt | 2 | | from all
requirements under this Section concerning the | 3 | | furnishing of such bond, as
defined in this Section, as a | 4 | | condition precedent to his being authorized
to engage in the | 5 | | business licensed under this Act. This exemption shall
continue | 6 | | for each such taxpayer until such time as he may be determined | 7 | | by
the Department to be delinquent in the filing of any | 8 | | returns, or is
determined by the Department (either through the | 9 | | Department's issuance of a
final assessment which has become | 10 | | final under the Act, or by the taxpayer's
filing of a return | 11 | | which admits tax to be due that is not paid) to be
delinquent | 12 | | or deficient in the paying of any tax under this Act, at which
| 13 | | time that taxpayer shall become subject to the bond | 14 | | requirements of this
Section and, as a condition of being | 15 | | allowed to continue to engage in the
business licensed under | 16 | | this Act, shall be required to furnish bond to the
Department | 17 | | in such form as provided in this Section. Such taxpayer shall
| 18 | | furnish such bond for a period of 2 years, after which, if the | 19 | | taxpayer has
not been delinquent in the filing of any returns, | 20 | | or delinquent or
deficient in the paying of any tax under this | 21 | | Act, the Department may
reinstate such person as a prior | 22 | | continuance compliance taxpayer. Any
taxpayer who fails to pay | 23 | | an admitted or established liability under this
Act may also be | 24 | | required to post bond or other acceptable security with the
| 25 | | Department guaranteeing the payment of such admitted or | 26 | | established liability.
|
| | | 09600SB0044ham007 | - 32 - | LRB096 03720 HLH 44934 a |
|
| 1 | | Any person aggrieved by any decision of the Department | 2 | | under this
Section may, within the time allowed by law, protest | 3 | | and request a hearing,
whereupon the Department shall give | 4 | | notice and shall hold a hearing in
conformity with the | 5 | | provisions of this Act and then issue its final
administrative | 6 | | decision in the matter to such person. In the absence of
such a | 7 | | protest filed within the time allowed by law, the Department's
| 8 | | decision shall become final without any further determination | 9 | | being made or
notice given.
| 10 | | The Department shall discharge any surety and shall release | 11 | | and return
any bond or security deposited, assigned, pledged, | 12 | | or otherwise provided to
it by a taxpayer under this Section | 13 | | within 30 days after:
| 14 | | (1) such Taxpayer becomes a prior continuous | 15 | | compliance taxpayer; or
| 16 | | (2) such taxpayer has ceased to collect receipts on | 17 | | which he is
required to remit tax to the Department, has | 18 | | filed a final tax return, and
has paid to the Department an | 19 | | amount sufficient to discharge his remaining
tax liability | 20 | | as determined by the Department under this Act. The
| 21 | | Department shall make a final determination of the | 22 | | taxpayer's outstanding
tax liability as expeditiously as | 23 | | possible after his final tax return has
been filed. If the | 24 | | Department cannot make such final determination within
45 | 25 | | days after receiving the final tax return, within such | 26 | | period it shall
so notify the taxpayer, stating its reasons |
| | | 09600SB0044ham007 | - 33 - | LRB096 03720 HLH 44934 a |
|
| 1 | | therefor.
| 2 | | At the time of purchasing such stamps from the Department | 3 | | when purchase
is required by this Act, or at the time when the | 4 | | tax which he has collected
is remitted by a distributor to the | 5 | | Department without the purchase of
stamps from the Department | 6 | | when that method of remitting the tax that has
been collected | 7 | | is required or authorized by this Act, the distributor shall
be | 8 | | allowed a discount during any year commencing July 1 and ending | 9 | | the
following June 30 in accordance with the schedule set out | 10 | | hereinbelow, from
the amount to be paid by him to the | 11 | | Department for such stamps, or to be
paid by him to the | 12 | | Department on the basis of monthly remittances (as the
case may | 13 | | be), to cover the cost, to such distributor, of collecting the | 14 | | tax
herein imposed by affixing such stamps to the original | 15 | | packages of
cigarettes sold by such distributor or by placing | 16 | | tax imprints underneath
the sealed transparent wrapper of | 17 | | original packages of cigarettes sold by
such distributor (as | 18 | | the case may be): (1) Prior to December 1, 1985, a
discount | 19 | | equal to 1-2/3% of the amount of the tax up to and including | 20 | | the
first $700,000 paid hereunder by
such distributor to the | 21 | | Department during any such year; 1-1/3% of the next
$700,000 of | 22 | | tax or any part thereof, paid hereunder by such distributor to
| 23 | | the Department during any such year; 1% of the next $700,000 of | 24 | | tax, or any
part thereof, paid hereunder by such distributor to | 25 | | the Department during
any such year; and 2/3 of 1% of the | 26 | | amount of any additional tax paid
hereunder by such distributor |
| | | 09600SB0044ham007 | - 34 - | LRB096 03720 HLH 44934 a |
|
| 1 | | to the Department during any such year or
(2) On and after | 2 | | December 1, 1985, a discount equal to 1.75% of the
amount of | 3 | | the tax payable under this Act up to and including the first
| 4 | | $3,000,000 paid hereunder by such distributor to the Department | 5 | | during any
such year and 1.5% of the amount of any additional | 6 | | tax paid hereunder by
such distributor to the Department during | 7 | | any such year.
| 8 | | Two or more distributors that use a common means of | 9 | | affixing revenue tax
stamps or that are owned or controlled by | 10 | | the same interests shall be
treated as a single distributor for | 11 | | the purpose of computing the discount.
| 12 | | Cigarette manufacturers who are distributors under Section | 13 | | 7(a) of this Act, and who
place their cigarettes in original | 14 | | packages which are contained inside a
sealed transparent | 15 | | wrapper, shall be required to remit the tax which they
are | 16 | | required to collect under this Act to the Department by | 17 | | remitting the
amount thereof to the Department by the 5th day | 18 | | of each month, covering
cigarettes shipped or otherwise | 19 | | delivered to points in Illinois to
purchasers during the | 20 | | preceding calendar month, but a distributor need not
remit to | 21 | | the Department the tax so collected by him from purchasers | 22 | | under
this Act to the extent to which such distributor is | 23 | | required to remit the
tax imposed by the Cigarette Tax Act to | 24 | | the Department with respect to the
same cigarettes. All taxes | 25 | | upon cigarettes under this Act are a direct tax
upon the retail | 26 | | consumer and shall conclusively be presumed to be
precollected |
| | | 09600SB0044ham007 | - 35 - | LRB096 03720 HLH 44934 a |
|
| 1 | | for the purpose of convenience and facility only.
Cigarette | 2 | | manufacturers that are distributors licensed under Section | 3 | | 7(a) of this Act and who place their cigarettes in original | 4 | | packages which
are contained inside a sealed transparent | 5 | | wrapper, before delivering such
cigarettes or causing such | 6 | | cigarettes to be delivered in this State to
purchasers, shall | 7 | | evidence their obligation to collect and remit the tax
due with | 8 | | respect to such cigarettes by imprinting language to be | 9 | | prescribed
by the Department on each original package of such | 10 | | cigarettes underneath
the sealed transparent outside wrapper | 11 | | of such original package, in such
place thereon and in such | 12 | | manner as the Department may prescribe; provided
(as stated | 13 | | hereinbefore) that this requirement does not apply when such
| 14 | | distributor is required or authorized by the Cigarette Tax Act | 15 | | to place the
tax imprint provided for in the last paragraph of | 16 | | Section 3 of that Act
underneath the sealed transparent wrapper | 17 | | of such original package of
cigarettes. Such imprinted language | 18 | | shall acknowledge the manufacturer's
collection and payment of | 19 | | or liability for the tax imposed by this Act with
respect to | 20 | | such cigarettes.
| 21 | | The Department shall adopt the design or designs of the tax | 22 | | stamps and
shall procure the printing of such stamps in such | 23 | | amounts and denominations
as it deems necessary to provide for | 24 | | the affixation of the proper amount of
tax stamps to each | 25 | | original package of cigarettes.
| 26 | | Where tax stamps are required, the Department may authorize |
| | | 09600SB0044ham007 | - 36 - | LRB096 03720 HLH 44934 a |
|
| 1 | | distributors
to affix revenue tax stamps by imprinting tax | 2 | | meter stamps upon original
packages of cigarettes. The | 3 | | Department shall adopt rules and regulations
relating to the | 4 | | imprinting of such tax meter stamps as will result in
payment | 5 | | of the proper taxes as herein imposed. No distributor may affix
| 6 | | revenue tax stamps to original packages of cigarettes by | 7 | | imprinting meter
stamps thereon unless such distributor has | 8 | | first obtained permission from
the Department to employ this | 9 | | method of affixation. The Department shall
regulate the use of | 10 | | tax meters and may, to assure the proper collection of
the | 11 | | taxes imposed by this Act, revoke or suspend the privilege, | 12 | | theretofore
granted by the Department to any distributor, to | 13 | | imprint tax meter stamps
upon original packages of cigarettes.
| 14 | | The tax hereby imposed and not paid pursuant to this | 15 | | Section shall be
paid to the Department directly by any person | 16 | | using such cigarettes within
this State, pursuant to Section 12 | 17 | | hereof.
| 18 | | A distributor shall not affix, or cause to be affixed, any | 19 | | stamp or imprint
to a package
of cigarettes, as provided for in | 20 | | this Section, if the tobacco product
manufacturer, as defined | 21 | | in Section 10 of the Tobacco Product Manufacturers'
Escrow
Act, | 22 | | that made or sold the cigarettes has failed to become a | 23 | | participating
manufacturer, as defined in subdivision (a)(1) | 24 | | of Section 15 of the Tobacco
Product Manufacturers' Escrow Act, | 25 | | or has failed to create a qualified escrow
fund for any | 26 | | cigarettes manufactured by the tobacco
product manufacturer |
| | | 09600SB0044ham007 | - 37 - | LRB096 03720 HLH 44934 a |
|
| 1 | | and sold in this State or otherwise failed to bring itself
into
| 2 | | compliance with subdivision (a)(2) of Section 15 of the Tobacco | 3 | | Product
Manufacturers' Escrow Act.
| 4 | | (Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10.)
| 5 | | (35 ILCS 135/12) (from Ch. 120, par. 453.42)
| 6 | | Sec. 12. Declaration of possession of cigarettes on which | 7 | | tax not paid.
| 8 | | (a) When cigarettes are acquired for use in this State by a | 9 | | person
(including a distributor as well as any other person), | 10 | | who did not pay the
tax herein imposed to a distributor, the | 11 | | person, within 30 days after
acquiring the cigarettes, shall | 12 | | file with the Department a return
declaring the possession of | 13 | | the cigarettes and shall transmit with
the
return to the | 14 | | Department the tax imposed by this Act.
| 15 | | (b) On receipt of the return and payment of the tax as | 16 | | required by
paragraph (a), the Department may furnish the | 17 | | person with a suitable tax stamp
to be
affixed to the package | 18 | | of cigarettes upon which the tax has been paid
if the | 19 | | Department determines that the cigarettes still exist.
| 20 | | (c) The return referred to in paragraph
(a) shall
contain | 21 | | the name and address of the person possessing the cigarettes
| 22 | | involved, the location of the cigarettes and the quantity, | 23 | | brand
name,
place, and date of the acquisition of the | 24 | | cigarettes.
| 25 | | (d) Nothing in this Section shall permit a secondary |
| | | 09600SB0044ham007 | - 38 - | LRB096 03720 HLH 44934 a |
|
| 1 | | distributor to purchase unstamped original packages of | 2 | | cigarettes or to purchase original packages of cigarettes from | 3 | | a person other than a licensed distributor. | 4 | | (e) The provisions of this Section are not subject to the | 5 | | Uniform Penalty and
Interest
Act. | 6 | | (Source: P.A. 96-1027, eff. 7-12-10.)
| 7 | | Section 20. The Tobacco Products Tax Act of 1995 is amended | 8 | | by changing Sections 10-5, 10-10, and 10-30 as follows:
| 9 | | (35 ILCS 143/10-5)
| 10 | | Sec. 10-5. Definitions. For purposes of this Act:
| 11 | | "Business" means any trade, occupation, activity, or | 12 | | enterprise engaged
in, at any location whatsoever, for the | 13 | | purpose of selling tobacco products.
| 14 | | "Cigarette" has the meaning ascribed to the term in Section | 15 | | 1 of the
Cigarette Tax Act.
| 16 | | "Correctional Industries program" means a program run by a | 17 | | State penal
institution in which residents of the penal | 18 | | institution produce tobacco
products for sale to persons | 19 | | incarcerated in penal institutions or resident
patients of a | 20 | | State operated mental health facility.
| 21 | | "Department" means the Illinois Department of Revenue.
| 22 | | "Distributor" means any of the following:
| 23 | | (1) Any manufacturer or wholesaler in this State | 24 | | engaged in the business
of selling tobacco products who |
| | | 09600SB0044ham007 | - 39 - | LRB096 03720 HLH 44934 a |
|
| 1 | | sells, exchanges, or distributes tobacco
products to | 2 | | retailers or consumers in this State.
| 3 | | (2) Any manufacturer or wholesaler engaged
in
the | 4 | | business of selling tobacco products from without this | 5 | | State who sells,
exchanges, distributes,
ships, or | 6 | | transports tobacco products to retailers or consumers | 7 | | located in
this State,
so long as that manufacturer or | 8 | | wholesaler has or maintains within this State,
directly or | 9 | | by subsidiary, an office, sales house, or other place of | 10 | | business,
or any agent or other representative operating | 11 | | within this State under the
authority of the person or | 12 | | subsidiary, irrespective of whether the place of
business | 13 | | or agent or other representative is located here | 14 | | permanently or
temporarily.
| 15 | | (3) Any retailer who receives tobacco products on which | 16 | | the tax has not
been or
will not be paid by another | 17 | | distributor.
| 18 | | "Distributor" does not include any person, wherever | 19 | | resident or located, who
makes, manufactures, or fabricates | 20 | | tobacco products as part of a Correctional
Industries program | 21 | | for sale to residents incarcerated in penal institutions or
| 22 | | resident patients of a State operated mental health facility.
| 23 | | "Manufacturer" means any person, wherever resident or | 24 | | located, who
manufactures and sells tobacco products, except a | 25 | | person who makes,
manufactures, or fabricates tobacco products | 26 | | as a part of a Correctional
Industries program for sale to |
| | | 09600SB0044ham007 | - 40 - | LRB096 03720 HLH 44934 a |
|
| 1 | | persons incarcerated in penal institutions or
resident | 2 | | patients of a State operated mental health facility.
| 3 | | "Moist snuff" means any finely cut, ground, or powdered | 4 | | tobacco that is not intended to be smoked, but shall not | 5 | | include any finely cut, ground, or powdered tobacco that is | 6 | | intended to be placed in the nasal cavity. | 7 | | "Person" means any natural individual, firm, partnership, | 8 | | association, joint
stock company, joint venture, limited | 9 | | liability company, or public or private
corporation, however | 10 | | formed, or a receiver, executor, administrator, trustee,
| 11 | | conservator, or other representative appointed by order of any | 12 | | court.
| 13 | | "Place of business" means and includes any place where | 14 | | tobacco products
are sold or where tobacco products are | 15 | | manufactured, stored, or kept for
the purpose of sale or | 16 | | consumption, including any vessel, vehicle, airplane,
train, | 17 | | or vending machine.
| 18 | | "Retailer" means any person in this State engaged in the | 19 | | business of selling
tobacco products to consumers in this | 20 | | State, regardless of quantity or number
of sales.
| 21 | | "Sale" means any transfer, exchange, or barter in any | 22 | | manner or by any means
whatsoever for a consideration and | 23 | | includes all sales made by
persons.
| 24 | | "Tobacco products" means any cigars; cheroots; stogies; | 25 | | periques; granulated,
plug cut, crimp cut, ready rubbed, and | 26 | | other smoking tobacco; snuff (including moist snuff) or snuff
|
| | | 09600SB0044ham007 | - 41 - | LRB096 03720 HLH 44934 a |
|
| 1 | | flour; cavendish; plug and twist tobacco; fine-cut and other | 2 | | chewing tobaccos;
shorts; refuse scraps, clippings, cuttings, | 3 | | and sweeping of tobacco; and
other kinds and forms of tobacco, | 4 | | prepared in such manner as to be suitable for
chewing or | 5 | | smoking in a pipe or otherwise, or both for chewing and | 6 | | smoking; but
does not include cigarettes or tobacco purchased | 7 | | for the manufacture of
cigarettes by cigarette distributors and | 8 | | manufacturers defined in the
Cigarette Tax Act and persons who | 9 | | make, manufacture, or fabricate
cigarettes as a part of a | 10 | | Correctional Industries program for sale to
residents | 11 | | incarcerated in penal institutions or resident patients of a
| 12 | | State operated mental health facility.
| 13 | | "Wholesale price" means the established list price for | 14 | | which a manufacturer
sells tobacco products to a distributor, | 15 | | before the allowance of any discount,
trade allowance, rebate, | 16 | | or other reduction.
In the absence of such an established list | 17 | | price, the manufacturer's invoice
price at which the | 18 | | manufacturer sells the tobacco product to unaffiliated
| 19 | | distributors, before any discounts, trade allowances, rebates, | 20 | | or other
reductions, shall be presumed to be the wholesale | 21 | | price.
| 22 | | "Wholesaler" means any person, wherever resident or | 23 | | located, engaged in the
business of selling tobacco products to | 24 | | others for the purpose of resale.
| 25 | | (Source: P.A. 92-231, eff. 8-2-01.)
|
| | | 09600SB0044ham007 | - 42 - | LRB096 03720 HLH 44934 a |
|
| 1 | | (35 ILCS 143/10-10)
| 2 | | Sec. 10-10. Tax imposed. On the first day of the third | 3 | | month after the
month in which this Act becomes law and until | 4 | | March 1, 2011 , a tax is imposed on any person engaged in
| 5 | | business as a distributor of tobacco products, as defined in | 6 | | Section 10-5,
at the rate of 18% of the wholesale price of | 7 | | tobacco products sold or otherwise
disposed of to retailers or | 8 | | consumers located in this State. Beginning on March 1, 2011, a | 9 | | tax is imposed on any person engaged in
business as a | 10 | | distributor of tobacco products, as defined in Section 10-5,
at | 11 | | the rate of (i) 18% of the wholesale price of tobacco products, | 12 | | other than moist snuff, sold or otherwise
disposed of to | 13 | | retailers or consumers located in this State and (ii) $0.20 per | 14 | | ounce of moist snuff, and a proportionate tax at the like rate | 15 | | on all fractional parts of an ounce, sold or otherwise
disposed | 16 | | of to retailers or consumers located in this State. The tax is | 17 | | in
addition to all other
occupation or privilege taxes imposed | 18 | | by the State of Illinois, by any
political subdivision thereof, | 19 | | or by any municipal corporation. However, the
tax is not | 20 | | imposed upon any activity in that business in interstate | 21 | | commerce or
otherwise, to the extent to which that activity may | 22 | | not, under the Constitution
and Statutes of the United States, | 23 | | be made the subject of taxation by this
State. The tax is also | 24 | | not imposed on sales made to the United States or any
entity | 25 | | thereof.
| 26 | | Beginning on March 1, 2011, the tax rate imposed per ounce |
| | | 09600SB0044ham007 | - 43 - | LRB096 03720 HLH 44934 a |
|
| 1 | | of moist snuff may not exceed 11% of the tax imposed upon a | 2 | | package of 20 cigarettes pursuant to the Cigarette Tax Act. | 3 | | All moneys received by the Department under this Act shall | 4 | | be paid into
the Long-Term Care Provider Fund of the State | 5 | | Treasury.
| 6 | | (Source: P.A. 92-231, eff. 8-2-01.)
| 7 | | (35 ILCS 143/10-30)
| 8 | | Sec. 10-30. Returns. Every distributor shall, on or before | 9 | | the 15th day of
each month, file a return with the Department | 10 | | covering the preceding calendar
month. The return shall | 11 | | disclose the wholesale price for all tobacco products and the | 12 | | quantity of moist snuff sold
or otherwise disposed of and other | 13 | | information that the Department may
reasonably require. The | 14 | | return shall be filed upon a form prescribed and
furnished by | 15 | | the Department.
| 16 | | At the time when any return of any distributor is due to be | 17 | | filed with
the Department, the distributor shall also remit to | 18 | | the Department the
tax liability that the distributor has | 19 | | incurred for transactions
occurring in the preceding calendar | 20 | | month.
| 21 | | (Source: P.A. 89-21, eff. 6-6-95.)
| 22 | | Section 99. Effective date. This Act takes effect upon | 23 | | becoming law.".
|
|