State of Illinois
2019 and 2020


Introduced 2/5/2019, by Sen. Terry Link


35 ILCS 143/10-5

    Amends the Tobacco Products Tax Act of 1995. Provides that, beginning on July 1, 2019, "tobacco products" also includes electronic cigarettes. Effective immediately.

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1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Tobacco Products Tax Act of 1995 is amended
5by changing Section 10-5 as follows:
6    (35 ILCS 143/10-5)
7    Sec. 10-5. Definitions. For purposes of this Act:
8    "Business" means any trade, occupation, activity, or
9enterprise engaged in, at any location whatsoever, for the
10purpose of selling tobacco products.
11    "Cigarette" has the meaning ascribed to the term in Section
121 of the Cigarette Tax Act.
13    "Contraband little cigar" means:
14        (1) packages of little cigars containing 20 or 25
15    little cigars that do not bear a required tax stamp under
16    this Act;
17        (2) packages of little cigars containing 20 or 25
18    little cigars that bear a fraudulent, imitation, or
19    counterfeit tax stamp;
20        (3) packages of little cigars containing 20 or 25
21    little cigars that are improperly tax stamped, including
22    packages of little cigars that bear only a tax stamp of
23    another state or taxing jurisdiction; or



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1        (4) packages of little cigars containing other than 20
2    or 25 little cigars in the possession of a distributor,
3    retailer or wholesaler, unless the distributor, retailer,
4    or wholesaler possesses, or produces within the time frame
5    provided in Section 10-27 or 10-28 of this Act, an invoice
6    from a stamping distributor, distributor, or wholesaler
7    showing that the tax on the packages has been or will be
8    paid.
9    "Correctional Industries program" means a program run by a
10State penal institution in which residents of the penal
11institution produce tobacco products for sale to persons
12incarcerated in penal institutions or resident patients of a
13State operated mental health facility.
14    "Department" means the Illinois Department of Revenue.
15    "Distributor" means any of the following:
16        (1) Any manufacturer or wholesaler in this State
17    engaged in the business of selling tobacco products who
18    sells, exchanges, or distributes tobacco products to
19    retailers or consumers in this State.
20        (2) Any manufacturer or wholesaler engaged in the
21    business of selling tobacco products from without this
22    State who sells, exchanges, distributes, ships, or
23    transports tobacco products to retailers or consumers
24    located in this State, so long as that manufacturer or
25    wholesaler has or maintains within this State, directly or
26    by subsidiary, an office, sales house, or other place of



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1    business, or any agent or other representative operating
2    within this State under the authority of the person or
3    subsidiary, irrespective of whether the place of business
4    or agent or other representative is located here
5    permanently or temporarily.
6        (3) Any retailer who receives tobacco products on which
7    the tax has not been or will not be paid by another
8    distributor.
9    "Distributor" does not include any person, wherever
10resident or located, who makes, manufactures, or fabricates
11tobacco products as part of a Correctional Industries program
12for sale to residents incarcerated in penal institutions or
13resident patients of a State operated mental health facility.
14        "Electronic cigarette" means:
15        (1) any device that employs a battery or other
16    mechanism to heat a solution or substance to produce a
17    vapor or aerosol intended for inhalation;
18        (2) any cartridge or container of a solution or
19    substance intended to be used with or in the device or to
20    refill the device; or
21        (3) any solution or substance, whether or not it
22    contains nicotine intended for use in the device.
23    "Electronic cigarette" includes, but is not limited to, any
24    electronic nicotine delivery system, electronic cigar,
25    electronic cigarillo, electronic pipe, electronic hookah,
26    vape pen, or similar product or device, and any components



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1    or parts that can be used to build the product or device.
2    "Electronic cigarette" does not include: cigarettes as
3    defined in Section 1 of the Cigarette Tax Act; any product
4    approved by the United States Food and Drug Administration
5    for sale as a tobacco cessation product, a tobacco
6    dependence product, or for other medical purposes that is
7    being marketed and sold solely for that approved purpose;
8    any asthma inhaler prescribed by a physician for that
9    condition and is being marketed and sold solely for that
10    approved purpose; or any therapeutic product approved for
11    use under the Compassionate Use of Medical Cannabis Pilot
12    Program Act.
13    "Little cigar" means and includes any roll, made wholly or
14in part of tobacco, where such roll has an integrated cellulose
15acetate filter and weighs less than 4 pounds per thousand and
16the wrapper or cover of which is made in whole or in part of
18    "Manufacturer" means any person, wherever resident or
19located, who manufactures and sells tobacco products, except a
20person who makes, manufactures, or fabricates tobacco products
21as a part of a Correctional Industries program for sale to
22persons incarcerated in penal institutions or resident
23patients of a State operated mental health facility.
24    Beginning on January 1, 2013, "moist snuff" means any
25finely cut, ground, or powdered tobacco that is not intended to
26be smoked, but shall not include any finely cut, ground, or



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1powdered tobacco that is intended to be placed in the nasal
3    "Person" means any natural individual, firm, partnership,
4association, joint stock company, joint venture, limited
5liability company, or public or private corporation, however
6formed, or a receiver, executor, administrator, trustee,
7conservator, or other representative appointed by order of any
9    "Place of business" means and includes any place where
10tobacco products are sold or where tobacco products are
11manufactured, stored, or kept for the purpose of sale or
12consumption, including any vessel, vehicle, airplane, train,
13or vending machine.
14    "Retailer" means any person in this State engaged in the
15business of selling tobacco products to consumers in this
16State, regardless of quantity or number of sales.
17    "Sale" means any transfer, exchange, or barter in any
18manner or by any means whatsoever for a consideration and
19includes all sales made by persons.
20    "Stamp" or "stamps" mean the indicia required to be affixed
21on a package of little cigars that evidence payment of the tax
22on packages of little cigars containing 20 or 25 little cigars
23under Section 10-10 of this Act. These stamps shall be the same
24stamps used for cigarettes under the Cigarette Tax Act.
25    "Stamping distributor" means a distributor licensed under
26this Act and also licensed as a distributor under the Cigarette



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1Tax Act or Cigarette Use Tax Act.
2    "Tobacco products" means any cigars, including little
3cigars; cheroots; stogies; periques; granulated, plug cut,
4crimp cut, ready rubbed, and other smoking tobacco; snuff
5(including moist snuff) or snuff flour; cavendish; plug and
6twist tobacco; fine-cut and other chewing tobaccos; shorts;
7refuse scraps, clippings, cuttings, and sweeping of tobacco;
8and other kinds and forms of tobacco, prepared in such manner
9as to be suitable for chewing or smoking in a pipe or
10otherwise, or both for chewing and smoking; but does not
11include cigarettes as defined in Section 1 of the Cigarette Tax
12Act or tobacco purchased for the manufacture of cigarettes by
13cigarette distributors and manufacturers defined in the
14Cigarette Tax Act and persons who make, manufacture, or
15fabricate cigarettes as a part of a Correctional Industries
16program for sale to residents incarcerated in penal
17institutions or resident patients of a State operated mental
18health facility. Beginning on July 1, 2019, "tobacco products"
19also includes electronic cigarettes.
20    "Wholesale price" means the established list price for
21which a manufacturer sells tobacco products to a distributor,
22before the allowance of any discount, trade allowance, rebate,
23or other reduction. In the absence of such an established list
24price, the manufacturer's invoice price at which the
25manufacturer sells the tobacco product to unaffiliated
26distributors, before any discounts, trade allowances, rebates,



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1or other reductions, shall be presumed to be the wholesale
3    "Wholesaler" means any person, wherever resident or
4located, engaged in the business of selling tobacco products to
5others for the purpose of resale. "Wholesaler", when used in
6this Act, does not include a person licensed as a distributor
7under Section 10-20 of this Act unless expressly stated in this
9(Source: P.A. 97-688, eff. 6-14-12; 98-273, eff. 8-9-13;
1098-1055, eff. 1-1-16.)
11    Section 99. Effective date. This Act takes effect upon
12becoming law.