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92_SB0449eng SB449 Engrossed LRB9204353TAtm 1 AN ACT concerning taxes. 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 5 amended by changing Sections 10-5 and 10-10 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 9 enterprise engaged in for the purpose of selling tobacco 10 products in this State. 11 "Cigarette" has the meaning ascribed to the term in 12 Section 1 of the Cigarette Tax Act. 13 "Correctional Industries program" means a program run by 14 a State penal institution in which residents of the penal 15 institution produce tobacco products for sale to persons 16 incarcerated in penal institutions or resident patients of a 17 State operated mental health facility. 18 "Department" means the Department of Revenue. 19 "Distributor" means any of the following: 20 (1) Any manufacturer or wholesaler in this State 21 engaged in the business of selling tobacco products who 22 sells, exchanges, or distributes tobacco products to 23 retailers or consumers in this State. 24 (2) Any manufacturer or wholesaler located outside 25 of Illinois engaged in the business of selling tobacco 26 products who sells, exchanges, distributes, ships, or 27 transports tobacco products to retailers or consumers in 28 this State, so long as that manufacturer or wholesaler 29 has or maintains within this State, directly or by 30 subsidiary, an office, sales house, or other place of 31 business, or any agent or other representative operating SB449 Engrossed -2- LRB9204353TAtm 1 within this State under the authority of the person or 2 subsidiary, irrespective of whether the place of business 3 or agent or other representative is located here 4 permanently or temporarily. 5 (3) Any retailer who receives tobacco products on 6 which the tax has not been or will not be paid by another 7 distributor. 8 "Distributor" does not include any person, wherever 9 resident or located, who makes, manufactures, or fabricates 10 tobacco products as part of a Correctional Industries program 11 for sale to residents incarcerated in penal institutions or 12 resident patients of a State operated mental health facility. 13 "Manufacturer" means any person, wherever resident or 14 located, who manufactures and sells tobacco products, except 15 a person who makes, manufactures, or fabricates tobacco 16 products as a part of a Correctional Industries program for 17 sale to persons incarcerated in penal institutions or 18 resident patients of a State operated mental health facility. 19 "Person" means any natural individual, firm, partnership, 20 association, joint stock company, joint venture, limited 21 liability company, or public or private corporation, however 22 formed, or a receiver, executor, administrator, trustee, 23 conservator, or other representative appointed by order of 24 any court. 25 "Place of business" means and includes any place where 26 tobacco products are sold or where tobacco products are 27 manufactured, stored, or kept for the purpose of sale or 28 consumption, including any vessel, vehicle, airplane, train, 29 or vending machine. 30 "Retailer" means any person in this State engaged in the 31 business of selling tobacco products to consumers in this 32 State, regardless of quantity or number of sales. 33 "Sale" means any transfer, exchange, or barter in any 34 manner or by any means whatsoever for a consideration and SB449 Engrossed -3- LRB9204353TAtm 1 includes all sales made by persons. 2 "Snuff" means any finely cut, ground, or powdered tobacco 3 that is intended to be placed in the oral cavity. 4 "Tobacco products" means any cigars; cheroots; stogies; 5 periques; granulated, plug cut, crimp cut, ready rubbed, and 6 other smoking tobacco; snuff or snuff flour; cavendish; plug 7 and twist tobacco; fine-cut and other chewing tobaccos; 8 shorts; refuse scraps, clippings, cuttings, and sweeping of 9 tobacco; and other kinds and forms of tobacco, prepared in 10 such manner as to be suitable for chewing or smoking in a 11 pipe or otherwise, or both for chewing and smoking; but does 12 not include cigarettes or tobacco purchased for the 13 manufacture of cigarettes by cigarette distributors and 14 manufacturers defined in the Cigarette Tax Act and persons 15 who make, manufacture, or fabricate cigarettes as a part of a 16 Correctional Industries program for sale to residents 17 incarcerated in penal institutions or resident patients of a 18 State operated mental health facility. 19 "Wholesale price" means the established list price for 20 which a manufacturer sells tobacco products to a distributor, 21 before the allowance of any discount, trade allowance, 22 rebate, or other reduction. In the absence of such an 23 established list price, the manufacturer's invoice price at 24 which the manufacturer sells the tobacco product to 25 unaffiliated distributors, before any discounts, trade 26 allowances, rebates, or other reductions, shall be presumed 27 to be the wholesale price. 28 "Wholesaler" means any person, wherever resident or 29 located, engaged in the business of selling tobacco products 30 to others for the purpose of resale. 31 (Source: P.A. 89-21, eff. 6-6-95.) 32 (35 ILCS 143/10-10) 33 Sec. 10-10. Tax imposed. On the first day of the third SB449 Engrossed -4- LRB9204353TAtm 1 month after the month in which this Act becomes law, a tax is 2 imposed on any person engaged in business as a distributor of 3 tobacco products other than snuff, as defined in Section 4 10-5, at the rate of 18% of the wholesale price of tobacco 5 products sold or otherwise disposed of in this State. A tax 6 is imposed on any person engaged in business as a distributor 7 of snuff, as defined in Section 10-5, at the rate of 37 cents 8 per ounce of snuff, with a proportionate tax at the like rate 9 on all fractional parts of an ounce of snuff. For purposes 10 of the tax on snuff, the tax shall be computed based on the 11 net weight as listed by the manufacturer. The tax is in 12 addition to all other occupation or privilege taxes imposed 13 by the State of Illinois, by any political subdivision 14 thereof, or by any municipal corporation. However, the tax 15 is not imposed upon any activity in that business in 16 interstate commerce or otherwise, to the extent to which that 17 activity may not, under the Constitution and Statutes of the 18 United States, be made the subject of taxation by this State. 19 The tax is also not imposed on sales made to the United 20 States or any entity thereof. 21 All moneys received by the Department under this Act 22 shall be paid into the Long-Term Care Provider Fund of the 23 State Treasury. 24 (Source: P.A. 89-21, eff. 6-6-95.) 25 Section 99. Effective date. This Act takes effect on 26 January 1, 2002.