State of Illinois
92nd General Assembly
Legislation

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92_SB0449ham006











                                           LRB9204353SMdvam02

 1                    AMENDMENT TO SENATE BILL 449

 2        AMENDMENT NO.     .  Amend Senate Bill 449,  AS  AMENDED,
 3    by  replacing  everything  after the enacting clause with the
 4    following:

 5        "Section 5.  The Cigarette Tax Act is amended by changing
 6    Section 2 as follows:

 7        (35 ILCS 130/2) (from Ch. 120, par. 453.2)
 8        Sec. 2.  Tax  imposed;  rate;  collection,  payment,  and
 9    distribution; discount.
10        (a)  A tax is imposed upon any person engaged in business
11    as  a  retailer  of cigarettes in this State at the rate of 5
12    1/2 mills per cigarette sold, or otherwise disposed of in the
13    course of such business in this State.  In  addition  to  any
14    other  tax  imposed  by  this  Act, a tax is imposed upon any
15    person engaged in business as a  retailer  of  cigarettes  in
16    this  State  at  a  rate  of  1/2  mill per cigarette sold or
17    otherwise disposed of in the course of such business in  this
18    State  on  and  after January 1, 1947, and shall be paid into
19    the Metropolitan Fair and Exposition Authority Reconstruction
20    Fund. On and after December 1, 1985, in addition to any other
21    tax imposed by this Act, a tax is  imposed  upon  any  person
22    engaged in business as a retailer of cigarettes in this State
 
                            -2-            LRB9204353SMdvam02
 1    at a rate of 4 mills per cigarette sold or otherwise disposed
 2    of  in  the  course  of  such  business in this State. Of the
 3    additional tax  imposed  by  this  amendatory  Act  of  1985,
 4    $9,000,000  of  the  moneys  received  by  the  Department of
 5    Revenue pursuant to this Act shall be paid  each  month  into
 6    the  Common  School  Fund. On and after the effective date of
 7    this amendatory Act of 1989, in addition  to  any  other  tax
 8    imposed by this Act, a tax is imposed upon any person engaged
 9    in  business  as  a  retailer  of cigarettes at the rate of 5
10    mills per cigarette sold or  otherwise  disposed  of  in  the
11    course  of  such  business  in  this  State. On and after the
12    effective date of this amendatory Act of 1993, in addition to
13    any other tax imposed by this Act, a tax is imposed upon  any
14    person engaged in business as a retailer of cigarettes at the
15    rate  of  7 mills per cigarette sold or otherwise disposed of
16    in the course of such business in this State.  On  and  after
17    December  15,  1997,  in addition to any other tax imposed by
18    this Act, a  tax  is  imposed  upon  any  person  engaged  in
19    business  as  a retailer of cigarettes at the rate of 7 mills
20    per cigarette sold or otherwise disposed of in the course  of
21    such  business  of  this State. All of the moneys received by
22    the Department of  Revenue  pursuant  to  this  Act  and  the
23    Cigarette  Use  Tax  Act from the additional taxes imposed by
24    this amendatory Act of 1997, shall be paid  each  month  into
25    the  Common  School  Fund. On and after the effective date of
26    this amendatory Act of the 92nd General Assembly, in addition
27    to any other tax imposed by this Act, a tax is  imposed  upon
28    any person engaged in business as a retailer of cigarettes at
29    the  rate  of  25.0  mills  per  cigarette  sold or otherwise
30    disposed of in the course of such business in this State. The
31    payment of such taxes shall be evidenced by a  stamp  affixed
32    to  each  original  package  of  cigarettes, or an authorized
33    substitute for such stamp imprinted on each original  package
34    of  such cigarettes underneath the sealed transparent outside
 
                            -3-            LRB9204353SMdvam02
 1    wrapper of such original package,  as  hereinafter  provided.
 2    However, such taxes are not imposed upon any activity in such
 3    business  in interstate commerce or otherwise, which activity
 4    may not under the Constitution and  statutes  of  the  United
 5    States be made the subject of taxation by this State.
 6        Beginning on the effective date of this amendatory Act of
 7    the 92nd General Assembly 1998, all of the moneys received by
 8    the  Department  of  Revenue  pursuant  to  this  Act and the
 9    Cigarette Use  Tax  Act,  other  than  the  moneys  that  are
10    dedicated  to  the Metropolitan Fair and Exposition Authority
11    Reconstruction Fund and the  Common  School  Fund,  shall  be
12    distributed each month as follows: first, there shall be paid
13    into  the General Revenue Fund an amount which, when added to
14    the amount paid into the Common School Fund for  that  month,
15    equals   $38,500,000   $33,300,000;  then,  from  the  moneys
16    remaining, if any  amounts  required  to  be  paid  into  the
17    General  Revenue Fund in previous months remain unpaid, those
18    amounts shall be paid into the General  Revenue  Fund;  then,
19    beginning  on  April  1,  2003,  from  the  moneys remaining,
20    $5,000,000  per  month  shall  be  paid   into   the   School
21    Infrastructure Fund; then, if any amounts required to be paid
22    into the School Infrastructure Fund in previous months remain
23    unpaid,   those   amounts  shall  be  paid  into  the  School
24    Infrastructure Fund; then the moneys remaining, if any, shall
25    be paid into the Long-Term Care Provider Fund.  To the extent
26    that more than $25,000,000 has been  paid  into  the  General
27    Revenue  Fund and Common School Fund per month for the period
28    of July 1, 1993 through the effective date of this amendatory
29    Act of 1994 from combined receipts of the Cigarette  Tax  Act
30    and   the   Cigarette   Use   Tax  Act,  notwithstanding  the
31    distribution provided in  this  Section,  the  Department  of
32    Revenue   is  hereby  directed  to  adjust  the  distribution
33    provided  in  this  Section  to  increase  the  next  monthly
34    payments to the Long Term Care Provider Fund  by  the  amount
 
                            -4-            LRB9204353SMdvam02
 1    paid  to  the  General Revenue Fund and Common School Fund in
 2    excess of $25,000,000 per month  and  to  decrease  the  next
 3    monthly  payments  to  the  General  Revenue  Fund and Common
 4    School Fund by that same excess amount.
 5        When any tax imposed herein terminates or has terminated,
 6    distributors who have bought stamps while  such  tax  was  in
 7    effect  and who therefore paid such tax, but who can show, to
 8    the Department's satisfaction, that they sold the  cigarettes
 9    to  which  they  affixed  such  stamps  after  such  tax  had
10    terminated and did not recover the tax or its equivalent from
11    purchasers, shall be allowed by the Department to take credit
12    for  such absorbed tax against subsequent tax stamp purchases
13    from the Department by such distributor.
14        The impact of the tax levied by this Act is imposed  upon
15    the  retailer  and  shall  be prepaid or pre-collected by the
16    distributor for the purpose of convenience and facility only,
17    and the amount of the tax shall be added to the price of  the
18    cigarettes  sold  by  such distributor. Collection of the tax
19    shall be evidenced by a  stamp  or  stamps  affixed  to  each
20    original package of cigarettes, as hereinafter provided.
21        Each  distributor shall collect the tax from the retailer
22    at or before the time of the sale, shall affix the stamps  as
23    hereinafter  required, and shall remit the tax collected from
24    retailers to the Department,  as  hereinafter  provided.  Any
25    distributor  who  fails  to  properly collect and pay the tax
26    imposed by  this  Act  shall  be  liable  for  the  tax.  Any
27    distributor  having  cigarettes  to  which  stamps  have been
28    affixed in his possession for sale on the effective  date  of
29    this  amendatory Act of 1989 shall not be required to pay the
30    additional tax imposed by this amendatory Act of 1989 on such
31    stamped cigarettes.  Any  distributor  having  cigarettes  to
32    which  stamps  have been affixed in his or her possession for
33    sale at 12:01 a.m. on the effective date of  this  amendatory
34    Act of 1993, is required to pay the additional tax imposed by
 
                            -5-            LRB9204353SMdvam02
 1    this amendatory Act of 1993 on such stamped cigarettes.  This
 2    payment,  less the discount provided in subsection (b), shall
 3    be due  when  the  distributor  first  makes  a  purchase  of
 4    cigarette  tax  stamps  after  the  effective  date  of  this
 5    amendatory  Act of 1993, or on the first due date of a return
 6    under this Act after the effective date  of  this  amendatory
 7    Act  of 1993, whichever occurs first.  Any distributor having
 8    cigarettes  to  which  stamps  have  been  affixed   in   his
 9    possession  for  sale  on  December  15,  1997  shall  not be
10    required to pay the additional tax imposed by this amendatory
11    Act of 1997 on such stamped cigarettes.
12        Any distributor having cigarettes to  which  stamps  have
13    been  affixed in his or her possession for sale at 12:01 a.m.
14    on the effective date of this  amendatory  Act  of  the  92nd
15    General  Assembly  is  required  to  pay  the  additional tax
16    imposed by this amendatory Act of the 92nd  General  Assembly
17    on  such stamped cigarettes.  This payment, less the discount
18    provided in subsection (b), shall be due when the distributor
19    first makes a purchase of  cigarette  tax  stamps  after  the
20    effective  date  of  this  amendatory Act of the 92nd General
21    Assembly, or on the first due date of a return under this Act
22    after the effective date of this amendatory Act of  the  92nd
23    General Assembly, whichever occurs first.  Once a distributor
24    tenders  payment of the additional tax to the Department, the
25    distributor may purchase stamps from the Department.
26        The amount of the Cigarette Tax imposed by this Act shall
27    be separately stated, apart from the price of the  goods,  by
28    both distributors and retailers, in all advertisements, bills
29    and sales invoices.
30        (b)  The  distributor  shall  be  required to collect the
31    taxes provided under paragraph (a) hereof, and, to cover  the
32    costs  of such collection, shall be allowed a discount during
33    any year commencing July 1st and ending  the  following  June
34    30th  in  accordance  with  the schedule set out hereinbelow,
 
                            -6-            LRB9204353SMdvam02
 1    which discount shall be allowed at the time  of  purchase  of
 2    the  stamps  when purchase is required by this Act, or at the
 3    time when the tax is remitted to the Department  without  the
 4    purchase  of  stamps  from the Department when that method of
 5    paying the tax is required or authorized by this Act.   Prior
 6    to December 1, 1985, a discount equal to 1 2/3% of the amount
 7    of  the  tax  up  to  and  including  the first $700,000 paid
 8    hereunder by such distributor to the  Department  during  any
 9    such  year;  1  1/3%  of the next $700,000 of tax or any part
10    thereof, paid hereunder by such distributor to the Department
11    during any such year; 1% of the next $700,000 of tax, or  any
12    part  thereof,  paid  hereunder  by  such  distributor to the
13    Department during any such year, and 2/3 of 1% of the  amount
14    of  any  additional tax paid hereunder by such distributor to
15    the Department during any such year shall apply. On and after
16    December 1, 1985, a discount equal to 1.75% of the amount  of
17    the  tax payable under this Act up to and including the first
18    $3,000,000  paid  hereunder  by  such  distributor   to   the
19    Department during any such year and 1.5% of the amount of any
20    additional  tax  paid  hereunder  by  such distributor to the
21    Department during any such year shall apply.
22        Two or more distributors  that  use  a  common  means  of
23    affixing  revenue  tax stamps or that are owned or controlled
24    by  the  same  interests  shall  be  treated  as   a   single
25    distributor for the purpose of computing the discount.
26        (c)  The  taxes  herein  imposed  are  in addition to all
27    other occupation or privilege taxes imposed by the  State  of
28    Illinois,  or by any political subdivision thereof, or by any
29    municipal corporation.
30    (Source: P.A. 90-548, eff. 12-4-97; 90-587, eff. 7-1-98.)

31        Section 10.  The Cigarette Use  Tax  Act  is  amended  by
32    changing Section 2 as follows:
 
                            -7-            LRB9204353SMdvam02
 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
 4    cigarette so used. On and after December 1, 1985, in addition
 5    to  any  other tax imposed by this Act, a tax is imposed upon
 6    the privilege of using cigarettes in this State at a rate  of
 7    4  mills  per  cigarette  so used. On and after the effective
 8    date of this amendatory Act of 1989, in addition to any other
 9    tax imposed by this Act, a tax is imposed upon the  privilege
10    of  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
13    by this Act, a tax is imposed upon  the  privilege  of  using
14    cigarettes  in  this State at a rate of 7 mills per cigarette
15    so used.  On and after December 15, 1997, in addition to  any
16    other  tax  imposed  by  this  Act, a tax is imposed upon the
17    privilege of using cigarettes in this State at a  rate  of  7
18    mills  per cigarette so used. On and after the effective date
19    of this amendatory Act  of  the  92nd  General  Assembly,  in
20    addition  to  any  other  tax  imposed  by this Act, a tax is
21    imposed upon the privilege of using cigarettes in this  State
22    at  a  rate  of  25.0  mills per cigarette so used. The taxes
23    herein imposed shall be in addition to all  other  occupation
24    or privilege taxes imposed by the State of Illinois or by any
25    political   subdivision   thereof   or   by   any   municipal
26    corporation.
27        When any tax imposed herein terminates or has terminated,
28    distributors  who  have  bought  stamps while such tax was in
29    effect and who therefore paid such tax, but who can show,  to
30    the  Department's satisfaction, that they sold the cigarettes
31    to  which  they  affixed  such  stamps  after  such  tax  had
32    terminated and did not recover the tax or its equivalent from
33    purchasers, shall be allowed by the Department to take credit
34    for such absorbed tax against subsequent tax stamp  purchases
 
                            -8-            LRB9204353SMdvam02
 1    from the Department by such distributors.
 2        When the word "tax" is used in this Act, it shall include
 3    any  tax  or  tax rate imposed by this Act and shall mean the
 4    singular of "tax" or the plural "taxes" as  the  context  may
 5    require.
 6        Any  distributor  having  cigarettes to which stamps have
 7    been affixed in his possession for sale on the effective date
 8    of this amendatory Act of 1989 shall not be required  to  pay
 9    the  additional tax imposed by this amendatory Act of 1989 on
10    such stamped cigarettes. Any distributor having cigarettes to
11    which stamps have been affixed in his or her  possession  for
12    sale  at  12:01 a.m. on the effective date of this amendatory
13    Act of 1993, is required to pay the additional tax imposed by
14    this amendatory Act of 1993 on such stamped cigarettes.  This
15    payment shall be due  when  the  distributor  first  makes  a
16    purchase  of cigarette tax stamps after the effective date of
17    this amendatory Act of 1993, or on the first due  date  of  a
18    return  under  this  Act  after  the  effective  date of this
19    amendatory Act of  1993,  whichever  occurs  first.   Once  a
20    distributor  tenders  payment  of  the  additional tax to the
21    Department, the distributor  may  purchase  stamps  from  the
22    Department.    Any  distributor  having  cigarettes  to which
23    stamps have been  affixed  in  his  possession  for  sale  on
24    December 15, 1997 shall not be required to pay the additional
25    tax  imposed  by  this amendatory Act of 1997 on such stamped
26    cigarettes.
27        Any distributor having cigarettes to  which  stamps  have
28    been  affixed in his or her possession for sale at 12:01 a.m.
29    on the effective date of this  amendatory  Act  of  the  92nd
30    General  Assembly  is  required  to  pay  the  additional tax
31    imposed by this amendatory Act of the 92nd  General  Assembly
32    on  such  stamped cigarettes.  This payment shall be due when
33    the distributor first  makes  a  purchase  of  cigarette  tax
34    stamps after the effective date of this amendatory Act of the
 
                            -9-            LRB9204353SMdvam02
 1    92nd  General  Assembly, or on the first due date of a return
 2    under this Act after the effective date  of  this  amendatory
 3    Act  of  the  92nd  General Assembly, whichever occurs first.
 4    Once a distributor tenders payment of the additional  tax  to
 5    the  Department, the distributor may purchase stamps from the
 6    Department.
 7    (Source: P.A. 90-548, eff. 12-4-97.)

 8        Section 99.  Effective date.  This Act  takes  effect  on
 9    July 1, 2002.".

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