Bill Text: IL HB0454 | 2009-2010 | 96th General Assembly | Introduced
Bill Title: Amends the Cigarette Tax Act and the Cigarette Use Tax Act. Provides that, beginning July 1, 2009, an additional tax of 50 mills per cigarette ($1 per package of 20) shall be imposed. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2009-03-13 - Rule 19(a) / Re-referred to Rules Committee [HB0454 Detail]
Download: Illinois-2009-HB0454-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Cigarette Tax Act is amended by changing | ||||||||||||||||||||||||||
5 | Section 2 as follows:
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6 | (35 ILCS 130/2) (from Ch. 120, par. 453.2)
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7 | Sec. 2. Tax imposed; rate; collection, payment, and | ||||||||||||||||||||||||||
8 | distribution;
discount. | ||||||||||||||||||||||||||
9 | (a) A tax is imposed upon any person engaged in business as | ||||||||||||||||||||||||||
10 | a
retailer of cigarettes in this State at the rate of 5 1/2 | ||||||||||||||||||||||||||
11 | mills per
cigarette sold, or otherwise disposed of in the | ||||||||||||||||||||||||||
12 | course of such business in
this State. In addition to any other | ||||||||||||||||||||||||||
13 | tax imposed by this Act, a tax is
imposed upon any person | ||||||||||||||||||||||||||
14 | engaged in business as a retailer of cigarettes in
this State | ||||||||||||||||||||||||||
15 | at a rate of 1/2 mill per cigarette sold or otherwise disposed
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16 | of in the course of such business in this State on and after | ||||||||||||||||||||||||||
17 | January 1,
1947, and shall be paid into the Metropolitan Fair | ||||||||||||||||||||||||||
18 | and Exposition Authority
Reconstruction Fund or as otherwise | ||||||||||||||||||||||||||
19 | provided in Section 29. On and after December 1, 1985, in | ||||||||||||||||||||||||||
20 | addition to any
other tax imposed by this Act, a tax is imposed | ||||||||||||||||||||||||||
21 | upon any person engaged in
business as a retailer of cigarettes | ||||||||||||||||||||||||||
22 | in this State at a rate of 4 mills per
cigarette sold or | ||||||||||||||||||||||||||
23 | otherwise disposed of in the course of such business in
this |
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1 | State. Of the additional tax imposed by this amendatory Act of | ||||||
2 | 1985,
$9,000,000 of the moneys received by the Department of | ||||||
3 | Revenue pursuant to
this Act shall be paid each month into the | ||||||
4 | Common School Fund. On and after
the effective date of this | ||||||
5 | amendatory Act of 1989, in addition to any other tax
imposed by | ||||||
6 | this Act, a tax is imposed upon any person engaged in business | ||||||
7 | as a
retailer of cigarettes at the rate of 5 mills per | ||||||
8 | cigarette sold or
otherwise disposed of in the course of such | ||||||
9 | business in this State.
On and after the effective date of this | ||||||
10 | amendatory Act of 1993, in addition
to any other tax imposed by | ||||||
11 | this Act, a tax is imposed upon any person engaged
in business | ||||||
12 | as a retailer of cigarettes at the rate of 7 mills per | ||||||
13 | cigarette
sold or otherwise disposed of in the course of such | ||||||
14 | business in this State.
On and after December 15, 1997, in | ||||||
15 | addition
to any other tax imposed by this Act, a tax is imposed | ||||||
16 | upon any person engaged
in business as a retailer of cigarettes | ||||||
17 | at the rate of 7 mills per cigarette
sold or otherwise disposed | ||||||
18 | of in the course of such business of this State.
All of the | ||||||
19 | moneys received by the Department of Revenue pursuant to this | ||||||
20 | Act
and the Cigarette Use Tax Act from the additional taxes | ||||||
21 | imposed by this
amendatory Act of 1997, shall be paid each | ||||||
22 | month into the Common School Fund.
On and after July 1, 2002, | ||||||
23 | in addition to any other tax imposed by this Act,
a tax is | ||||||
24 | imposed upon any person engaged in business as a retailer of
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25 | cigarettes at the rate of 20.0 mills per cigarette sold or | ||||||
26 | otherwise disposed
of
in the course of such business in this |
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1 | State. Beginning on July 1, 2009, in addition to any other tax | ||||||
2 | imposed by this Act, a tax is imposed upon any person engaged | ||||||
3 | in business as a retailer of cigarettes at the rate of 50 mills | ||||||
4 | per cigarette sold or otherwise disposed of in the course of | ||||||
5 | such business in this State.
The payment of such taxes shall be | ||||||
6 | evidenced by a stamp affixed to
each original package of | ||||||
7 | cigarettes, or an authorized substitute for such stamp
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8 | imprinted on each original package of such cigarettes | ||||||
9 | underneath the sealed
transparent outside wrapper of such | ||||||
10 | original package, as hereinafter provided.
However, such taxes | ||||||
11 | are not imposed upon any activity in such business in
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12 | interstate commerce or otherwise, which activity may not under
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13 | the Constitution and statutes of the United States be made the | ||||||
14 | subject of
taxation by this State.
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15 | Beginning on the effective date of this amendatory Act of | ||||||
16 | the 92nd General
Assembly and through June 30, 2006,
all of the | ||||||
17 | moneys received by the Department of Revenue pursuant to this | ||||||
18 | Act
and the Cigarette Use Tax Act, other than the moneys that | ||||||
19 | are dedicated to the Common
School Fund, shall be distributed | ||||||
20 | each month as follows: first, there shall be
paid into the | ||||||
21 | General Revenue Fund an amount which, when added to the amount
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22 | paid into the Common School Fund for that month, equals | ||||||
23 | $33,300,000, except that in the month of August of 2004, this | ||||||
24 | amount shall equal $83,300,000; then, from
the moneys | ||||||
25 | remaining, if any amounts required to be paid into the General
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26 | Revenue Fund in previous months remain unpaid, those amounts |
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1 | shall be paid into
the General Revenue Fund;
then, beginning on | ||||||
2 | April 1, 2003, from the moneys remaining, $5,000,000 per
month | ||||||
3 | shall be paid into the School Infrastructure Fund; then, if any | ||||||
4 | amounts
required to be paid into the School Infrastructure Fund | ||||||
5 | in previous months
remain unpaid, those amounts shall be paid | ||||||
6 | into the School Infrastructure
Fund;
then the moneys remaining, | ||||||
7 | if any, shall be paid into the Long-Term Care
Provider Fund.
To | ||||||
8 | the extent that more than $25,000,000 has been paid into the | ||||||
9 | General
Revenue Fund and Common School Fund per month for the | ||||||
10 | period of July 1, 1993
through the effective date of this | ||||||
11 | amendatory Act of 1994 from combined
receipts
of the Cigarette | ||||||
12 | Tax Act and the Cigarette Use Tax Act, notwithstanding the
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13 | distribution provided in this Section, the Department of | ||||||
14 | Revenue is hereby
directed to adjust the distribution provided | ||||||
15 | in this Section to increase the
next monthly payments to the | ||||||
16 | Long Term Care Provider Fund by the amount paid to
the General | ||||||
17 | Revenue Fund and Common School Fund in excess of $25,000,000 | ||||||
18 | per
month and to decrease the next monthly payments to the | ||||||
19 | General Revenue Fund and
Common School Fund by that same excess | ||||||
20 | amount.
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21 | Beginning on July 1, 2006, all of the moneys received by | ||||||
22 | the Department of Revenue pursuant to this Act and the | ||||||
23 | Cigarette Use Tax Act, other than the moneys that are dedicated | ||||||
24 | to the Common School Fund, shall be distributed each month as | ||||||
25 | follows: first, there shall be paid into the General Revenue | ||||||
26 | Fund an amount that, when added to the amount paid into the |
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1 | Common School Fund for that month, equals $29,200,000; then, | ||||||
2 | from the moneys remaining, if any amounts required to be paid | ||||||
3 | into the General Revenue Fund in previous months remain unpaid, | ||||||
4 | those amounts shall be paid into the General Revenue Fund; then | ||||||
5 | from the moneys remaining, $5,000,000 per month shall be paid | ||||||
6 | into the School Infrastructure Fund; then, if any amounts | ||||||
7 | required to be paid into the School Infrastructure Fund in | ||||||
8 | previous months remain unpaid, those amounts shall be paid into | ||||||
9 | the School Infrastructure Fund; then the moneys remaining, if | ||||||
10 | any, shall be paid into the Long-Term Care Provider Fund.
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11 | When any tax imposed herein terminates or has terminated, | ||||||
12 | distributors
who have bought stamps while such tax was in | ||||||
13 | effect and who therefore paid
such tax, but who can show, to | ||||||
14 | the Department's satisfaction, that they
sold the cigarettes to | ||||||
15 | which they affixed such stamps after such tax had
terminated | ||||||
16 | and did not recover the tax or its equivalent from purchasers,
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17 | shall be allowed by the Department to take credit for such | ||||||
18 | absorbed tax
against subsequent tax stamp purchases from the | ||||||
19 | Department by such
distributor.
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20 | The impact of the tax levied by this Act is imposed upon | ||||||
21 | the retailer
and shall be prepaid or pre-collected by the | ||||||
22 | distributor for the purpose of
convenience and facility only, | ||||||
23 | and the amount of the tax shall be added to
the price of the | ||||||
24 | cigarettes sold by such distributor. Collection of the tax
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25 | shall be evidenced by a stamp or stamps affixed to each | ||||||
26 | original package of
cigarettes, as hereinafter provided.
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1 | Each distributor shall collect the tax from the retailer at | ||||||
2 | or before
the time of the sale, shall affix the stamps as | ||||||
3 | hereinafter required, and
shall remit the tax collected from | ||||||
4 | retailers to the Department, as
hereinafter provided. Any | ||||||
5 | distributor who fails to properly collect and pay
the tax | ||||||
6 | imposed by this Act shall be liable for the tax. Any | ||||||
7 | distributor having
cigarettes to which stamps have been affixed | ||||||
8 | in his possession for sale on the
effective date of this | ||||||
9 | amendatory Act of 1989 shall not be required to pay the
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10 | additional tax imposed by this amendatory Act of 1989 on such | ||||||
11 | stamped
cigarettes. Any distributor having cigarettes to which | ||||||
12 | stamps have been affixed
in his or her possession for sale at | ||||||
13 | 12:01 a.m. on the effective date of this
amendatory Act of | ||||||
14 | 1993, is required to pay the additional tax imposed by this
| ||||||
15 | amendatory Act of 1993 on such stamped cigarettes. This | ||||||
16 | payment, less the
discount provided in subsection (b), shall be | ||||||
17 | due when the distributor first
makes a purchase of cigarette | ||||||
18 | tax stamps after the effective date of this
amendatory Act of | ||||||
19 | 1993, or on the first due date of a return under this Act
after | ||||||
20 | the effective date of this amendatory Act of 1993, whichever | ||||||
21 | occurs
first. Any distributor having cigarettes to which stamps | ||||||
22 | have been affixed
in his possession for sale on December 15, | ||||||
23 | 1997
shall not be required to pay the additional tax imposed by | ||||||
24 | this amendatory Act
of 1997 on such stamped cigarettes.
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25 | Any distributor having cigarettes to which stamps have been | ||||||
26 | affixed in his
or her
possession for sale on July 1, 2002 shall |
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1 | not be required to pay the additional
tax imposed by this | ||||||
2 | amendatory Act of the 92nd General Assembly on those
stamped
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3 | cigarettes.
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4 | Any distributor having cigarettes to which stamps have been | ||||||
5 | affixed in his or her possession for sale on or after July 1, | ||||||
6 | 2009 is required to pay the additional tax imposed by this | ||||||
7 | amendatory Act of the 96th General Assembly on those stamped | ||||||
8 | cigarettes. This payment, less the discount provided in | ||||||
9 | subsection (b), is due when the distributor first makes a | ||||||
10 | purchase of cigarette tax stamps on or after July 1, 2009 or on | ||||||
11 | the first due date of a return under this Act occurring on or | ||||||
12 | after July 1, 2009, whichever occurs first. | ||||||
13 | The amount of the Cigarette Tax imposed by this Act shall | ||||||
14 | be separately
stated, apart from the price of the goods, by | ||||||
15 | both distributors and
retailers, in all advertisements, bills | ||||||
16 | and sales invoices.
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17 | (b) The distributor shall be required to collect the taxes | ||||||
18 | provided
under paragraph (a) hereof, and, to cover the costs of | ||||||
19 | such collection,
shall be allowed a discount during any year | ||||||
20 | commencing July 1st and ending
the following June 30th in | ||||||
21 | accordance with the schedule set out
hereinbelow, which | ||||||
22 | discount shall be allowed at the time of purchase of the
stamps | ||||||
23 | when purchase is required by this Act, or at the time when the | ||||||
24 | tax
is remitted to the Department without the purchase of | ||||||
25 | stamps from the
Department when that method of paying the tax | ||||||
26 | is required or authorized by
this Act. Prior to December 1, |
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1 | 1985, a discount equal to 1 2/3% of
the amount of the tax up to | ||||||
2 | and including the first $700,000 paid hereunder by
such | ||||||
3 | distributor to the Department during any such year; 1 1/3% of | ||||||
4 | the next
$700,000 of tax or any part thereof, paid hereunder by | ||||||
5 | such distributor to the
Department during any such year; 1% of | ||||||
6 | the next $700,000 of tax, or any part
thereof, paid hereunder | ||||||
7 | by such distributor to the Department during any such
year, and | ||||||
8 | 2/3 of 1% of the amount of any additional tax paid hereunder by | ||||||
9 | such
distributor to the Department during any such year shall | ||||||
10 | apply. On and after
December 1, 1985, a discount equal to 1.75% | ||||||
11 | of the amount of the tax payable
under this Act up to and | ||||||
12 | including the first $3,000,000 paid hereunder by such
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13 | distributor to the Department during any such year and 1.5% of | ||||||
14 | the amount of
any additional tax paid hereunder by such | ||||||
15 | distributor to the Department during
any such year shall apply.
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16 | Two or more distributors that use a common means of | ||||||
17 | affixing revenue tax
stamps or that are owned or controlled by | ||||||
18 | the same interests shall be
treated as a single distributor for | ||||||
19 | the purpose of computing the discount.
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20 | (c) The taxes herein imposed are in addition to all other | ||||||
21 | occupation or
privilege taxes imposed by the State of Illinois, | ||||||
22 | or by any political
subdivision thereof, or by any municipal | ||||||
23 | corporation.
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24 | (Source: P.A. 93-839, eff. 7-30-04; 94-91, eff. 7-1-05; 94-839, | ||||||
25 | eff. 6-6-06.)
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1 | Section 10. The Cigarette Use Tax Act is amended by | ||||||
2 | changing Section 2 as follows:
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3 | (35 ILCS 135/2) (from Ch. 120, par. 453.32)
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4 | Sec. 2.
A tax is imposed upon the privilege of using | ||||||
5 | cigarettes in this
State, at the rate of 6 mills per cigarette | ||||||
6 | so used. On and after
December 1, 1985, in addition to any | ||||||
7 | other tax imposed by this Act, a tax
is imposed upon the | ||||||
8 | privilege of using cigarettes in this State at a rate
of 4 | ||||||
9 | mills per cigarette so used. On and after the effective date of | ||||||
10 | this
amendatory Act of 1989, in addition to any other tax | ||||||
11 | imposed by this Act, a
tax is imposed upon the privilege of | ||||||
12 | using cigarettes in this State at the
rate of 5 mills per | ||||||
13 | cigarette so used. On and after the effective date of this
| ||||||
14 | amendatory Act of 1993, in addition to any other tax imposed by | ||||||
15 | this Act, a tax
is imposed upon the privilege of using | ||||||
16 | cigarettes in this State at a rate of 7
mills per cigarette so | ||||||
17 | used. On and after December 15,
1997, in addition to any other | ||||||
18 | tax imposed by this Act, a tax
is imposed upon the privilege of | ||||||
19 | using cigarettes in this State at a rate of
7 mills per | ||||||
20 | cigarette so used.
On and after July 1, 2002, in addition to | ||||||
21 | any other tax imposed by
this Act, a tax is imposed
upon the | ||||||
22 | privilege of using cigarettes in this State at a rate of 20.0 | ||||||
23 | mills
per cigarette so used. Beginning on July 1, 2009, in | ||||||
24 | addition to any other tax imposed by this Act, a tax is imposed | ||||||
25 | upon the privilege of using cigarettes in this State at a rate |
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1 | of 50 mills per cigarette so used.
The taxes herein imposed | ||||||
2 | shall be in
addition to
all other occupation or privilege taxes | ||||||
3 | imposed by the State of Illinois or by
any political | ||||||
4 | subdivision thereof or by any municipal corporation.
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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 to | ||||||
9 | which they affixed such stamps after such tax had
terminated | ||||||
10 | and did not recover the tax or its equivalent from purchasers,
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11 | shall be allowed by the Department to take credit for such | ||||||
12 | absorbed tax
against subsequent tax stamp purchases from the | ||||||
13 | Department by such
distributors.
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14 | When the word "tax" is used in this Act, it shall include | ||||||
15 | any tax or tax
rate imposed by this Act and shall mean the | ||||||
16 | singular of "tax" or the plural
"taxes" as the context may | ||||||
17 | require.
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18 | Any distributor having cigarettes to which stamps have been | ||||||
19 | affixed in
his possession for sale on the effective date of | ||||||
20 | this 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 payment |
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1 | shall be due when the distributor first makes
a purchase of | ||||||
2 | cigarette tax stamps after the effective date of this | ||||||
3 | amendatory
Act of 1993, or on the first due date of a return | ||||||
4 | under this Act after the
effective date of this amendatory Act | ||||||
5 | of 1993, whichever occurs first. Once a
distributor tenders | ||||||
6 | payment of the additional tax to the Department, the
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7 | distributor may purchase stamps from the Department.
Any | ||||||
8 | distributor having cigarettes to which stamps have been affixed
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9 | in his 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.
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12 | Any distributor having cigarettes to which stamps have been | ||||||
13 | affixed in his
or her possession for sale on July 1, 2002 shall | ||||||
14 | not be required to pay the
additional
tax imposed by this | ||||||
15 | amendatory Act of the 92nd General Assembly on those
stamped
| ||||||
16 | cigarettes.
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17 | Any distributor having cigarettes to which stamps have been | ||||||
18 | affixed in his or her
possession for sale on or after July 1, | ||||||
19 | 2009 is required to pay the additional tax imposed by this | ||||||
20 | amendatory Act of the 96th General Assembly on those stamped | ||||||
21 | cigarettes. This payment, less the discount provided in Section | ||||||
22 | 3 of this Act, is due when the distributor first makes a | ||||||
23 | purchase of cigarette tax stamps on or after July 1, or on the | ||||||
24 | first due date of a return under this Act occurring on or after | ||||||
25 | July 1, 2009, whichever occurs first. | ||||||
26 | (Source: P.A. 92-536, eff. 6-6-02.)
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1 | Section 99. Effective date. This Act takes effect upon | ||||||
2 | becoming law.
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