Full Text of HB4048 101st General Assembly
HB4048 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB4048 Introduced 1/13/2020, by Rep. Jonathan Carroll SYNOPSIS AS INTRODUCED: |
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35 ILCS 143/10-10 |
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35 ILCS 143/10-30 |
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Amends the Tobacco Products Tax Act of 1995. Provides that, beginning on January 1, 2021, the tax per cigar or other rolled tobacco product shall not exceed $0.50 per cigar or roll. Provides that distributors are allowed a discount in the amount of 2% of the distributor's tax liability, but not to exceed $2,000 per return.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Tobacco Products Tax Act of 1995 is amended | 5 | | by changing Sections 10-10 and 10-30 as follows:
| 6 | | (35 ILCS 143/10-10)
| 7 | | Sec. 10-10. Tax imposed. | 8 | | (a) Except as otherwise provided in this Section with | 9 | | respect to little cigars, on the first day of the third month | 10 | | after the
month in which this Act becomes law, a tax is imposed | 11 | | on any person engaged in
business as a distributor of tobacco | 12 | | products, as defined in Section 10-5,
at the rate of (i) 18% of | 13 | | the wholesale price of tobacco products sold or otherwise
| 14 | | disposed of to retailers or consumers located in this State | 15 | | prior to July 1, 2012 and (ii) 36% of the wholesale price of | 16 | | tobacco products sold or otherwise
disposed of to retailers or | 17 | | consumers located in this State beginning on July 1, 2012; | 18 | | except that, beginning on January 1, 2013, the tax on moist | 19 | | snuff shall be imposed at a rate of $0.30 per ounce, and a | 20 | | proportionate tax at the like rate on all fractional parts of | 21 | | an ounce, sold or otherwise
disposed of to retailers or | 22 | | consumers located in this State; and except that, beginning | 23 | | July 1, 2019,
the tax on electronic cigarettes shall be imposed |
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| 1 | | at the rate of
15% of the wholesale price of electronic | 2 | | cigarettes sold or
otherwise disposed of to retailers or | 3 | | consumers located in this
State. The tax is in
addition to all | 4 | | other
occupation or privilege taxes imposed by the State of | 5 | | Illinois, by any
political subdivision thereof, or by any | 6 | | municipal corporation. However, the
tax is not imposed upon any | 7 | | activity in that business in interstate commerce or
otherwise, | 8 | | to the extent to which that activity may not, under the | 9 | | Constitution
and Statutes of the United States, be made the | 10 | | subject of taxation by this
State, and except that, beginning | 11 | | July 1, 2013, the tax on little cigars shall be imposed at the | 12 | | same rate, and the proceeds shall be distributed in the same | 13 | | manner, as the tax imposed on cigarettes under the Cigarette | 14 | | Tax Act. The tax is also not imposed on sales made to the | 15 | | United States or any
entity thereof.
| 16 | | (b) Notwithstanding subsection (a) of this Section, | 17 | | stamping distributors of packages of little cigars containing | 18 | | 20 or 25 little cigars sold or otherwise disposed of in this | 19 | | State shall remit the tax by purchasing tax stamps from the | 20 | | Department and affixing them to packages of little cigars in | 21 | | the same manner as stamps are purchased and affixed to | 22 | | cigarettes under the Cigarette Tax Act, unless the stamping | 23 | | distributor sells or otherwise disposes of those packages of | 24 | | little cigars to another stamping distributor. Only persons | 25 | | meeting the definition of "stamping distributor" contained in | 26 | | Section 10-5 of this Act may affix stamps to packages of little |
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| 1 | | cigars containing 20 or 25 little cigars. Stamping distributors | 2 | | may not sell or dispose of little cigars at retail to consumers | 3 | | or users at locations where stamping distributors affix stamps | 4 | | to packages of little cigars containing 20 or 25 little cigars. | 5 | | (c) The impact of the tax levied by this Act is imposed | 6 | | upon distributors engaged in the business of selling tobacco | 7 | | products to retailers or consumers in this State. Whenever a | 8 | | stamping distributor brings or causes to be brought into this | 9 | | State from without this State, or purchases from without or | 10 | | within this State, any packages of little cigars containing 20 | 11 | | or 25 little cigars upon which there are no tax stamps affixed | 12 | | as required by this Act, for purposes of resale or disposal in | 13 | | this State to a person not a stamping distributor, then such | 14 | | stamping distributor shall pay the tax to the Department and | 15 | | add the amount of the tax to the price of such packages sold by | 16 | | such stamping distributor. Payment of the tax shall be | 17 | | evidenced by a stamp or stamps affixed to each package of | 18 | | little cigars containing 20 or 25 little cigars. | 19 | | Stamping distributors paying the tax to the Department on | 20 | | packages of little cigars containing 20 or 25 little cigars | 21 | | sold to other distributors, wholesalers or retailers shall add | 22 | | the amount of the tax to the price of the packages of little | 23 | | cigars containing 20 or 25 little cigars sold by such stamping | 24 | | distributors. | 25 | | (d) Beginning on January 1, 2013, the tax rate imposed per | 26 | | ounce of moist snuff may not exceed 15% of the tax imposed upon |
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| 1 | | a package of 20 cigarettes pursuant to the Cigarette Tax Act. | 2 | | (d-5) Notwithstanding the provisions of this Section, | 3 | | beginning January 1, 2021, the tax per cigar or other rolled | 4 | | tobacco product sold or otherwise disposed of shall not exceed | 5 | | $0.50 per cigar or roll. | 6 | | (e) All moneys received by the Department under this Act | 7 | | from sales occurring prior to July 1, 2012 shall be paid into
| 8 | | the Long-Term Care Provider Fund of the State Treasury. Of the | 9 | | moneys received by the Department from sales occurring on or | 10 | | after July 1, 2012, except for moneys received from the tax | 11 | | imposed on the sale of little cigars, 50% shall be paid into | 12 | | the Long-Term Care Provider Fund and 50% shall be paid into the | 13 | | Healthcare Provider Relief Fund. Beginning July 1, 2013, all | 14 | | moneys received by the Department under this Act from the tax | 15 | | imposed on little cigars shall be distributed as provided in | 16 | | Section 2 of the Cigarette Tax Act.
| 17 | | (Source: P.A. 101-31, eff. 6-28-19.)
| 18 | | (35 ILCS 143/10-30)
| 19 | | Sec. 10-30. Returns. | 20 | | (a) Every distributor shall, on or before the 15th day of
| 21 | | each month, file a return with the Department covering the | 22 | | preceding calendar
month. The return shall disclose the | 23 | | wholesale price for all tobacco products other than moist snuff | 24 | | and the quantity in ounces of moist snuff sold
or otherwise | 25 | | disposed of and other information that the Department may
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| 1 | | reasonably require. The return shall be filed upon a form | 2 | | prescribed and
furnished by the Department.
| 3 | | (b) In addition to the information required under | 4 | | subsection (a), on or before the 15th day of each month, | 5 | | covering the preceding calendar month, each stamping | 6 | | distributor shall, on forms prescribed and furnished by the | 7 | | Department, report the quantity of little cigars sold or | 8 | | otherwise disposed of, including the number of packages of | 9 | | little cigars sold or disposed of during the month containing | 10 | | 20 or 25 little cigars. | 11 | | (c) At the time when any return of any distributor is due | 12 | | to be filed with
the Department, the distributor shall also | 13 | | remit to the Department the
tax liability that the distributor | 14 | | has incurred for transactions
occurring in the preceding | 15 | | calendar month , less the discount allowed .
| 16 | | (d) The Department may adopt rules to require the | 17 | | electronic filing of any return or document required to be | 18 | | filed under this Act. Those rules may provide for exceptions | 19 | | from the filing requirement set forth in this paragraph for | 20 | | persons who demonstrate that they do not have access to the | 21 | | Internet and petition the Department to waive the electronic | 22 | | filing requirement. | 23 | | (e) If any payment provided for in this Section exceeds the | 24 | | distributor's liabilities under this Act, as shown on an | 25 | | original return, the distributor may credit such excess payment | 26 | | against liability subsequently to be remitted to the Department |
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| 1 | | under this Act, in accordance with reasonable rules adopted by | 2 | | the Department. | 3 | | (f) The distributor required to pay the tax under Section | 4 | | 10-10 shall be entitled to a discount to reimburse the | 5 | | distributor for the expenses incurred in keeping and | 6 | | maintaining records, preparing and filing the returns, | 7 | | remitting the tax, and supplying the data to the Department | 8 | | upon request. The discount shall be 2% of the distributor's tax | 9 | | liability under this Act, but not to exceed $2,000 per return. | 10 | | (Source: P.A. 100-1171, eff. 1-4-19.)
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