Bill Text: IL SB0021 | 2011-2012 | 97th General Assembly | Amended

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Bill Title: Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning the short title.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Failed) 2013-01-08 - Session Sine Die [SB0021 Detail]

Download: Illinois-2011-SB0021-Amended.html

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Sen. John J. Cullerton

Filed: 3/16/2011

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AMENDMENT TO SENATE BILL 21
AMENDMENT NO. ______. Amend Senate Bill 21 by replacing
everything after the enacting clause with the following:
"Section 5. The Cigarette Tax Act is amended by changing
Sections 2 and 3 as follows:
(35 ILCS 130/2) (from Ch. 120, par. 453.2)
Sec. 2. Tax imposed; rate; collection, payment, and
distribution; discount.
(a) A tax is imposed upon any person engaged in business as
a retailer of cigarettes in this State at the rate of 5 1/2
mills per cigarette sold, or otherwise disposed of in the
course of such business in this State. In addition to any other
tax imposed by this Act, a tax is imposed upon any person
engaged in business as a retailer of cigarettes in this State
at a rate of 1/2 mill per cigarette sold or otherwise disposed
of in the course of such business in this State on and after

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January 1, 1947, and shall be paid into the Metropolitan Fair
and Exposition Authority Reconstruction Fund or as otherwise
provided in Section 29. On and after December 1, 1985, in
addition to any other tax imposed by this Act, a tax is imposed
upon any person engaged in business as a retailer of cigarettes
in this State at a rate of 4 mills per cigarette sold or
otherwise disposed of in the course of such business in this
State. Of the additional tax imposed by this amendatory Act of
1985, $9,000,000 of the moneys received by the Department of
Revenue pursuant to this Act shall be paid each month into the
Common School Fund. On and after the effective date of this
amendatory Act of 1989, in addition to any other tax imposed by
this Act, a tax is imposed upon any person engaged in business
as a retailer of cigarettes at the rate of 5 mills per
cigarette sold or otherwise disposed of in the course of such
business in this State. On and after the effective date of this
amendatory Act of 1993, in addition to any other tax imposed by
this Act, a tax is imposed upon any person engaged in business
as a retailer of cigarettes at the rate of 7 mills per
cigarette sold or otherwise disposed of in the course of such
business in this State. On and after December 15, 1997, in
addition to any other tax imposed by this Act, a tax is imposed
upon any person engaged in business as a retailer of cigarettes
at the rate of 7 mills per cigarette sold or otherwise disposed
of in the course of such business of this State. All of the
moneys received by the Department of Revenue pursuant to this

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Act and the Cigarette Use Tax Act from the additional taxes
imposed by this amendatory Act of 1997, shall be paid each
month into the Common School Fund. On and after July 1, 2002,
in addition to any other tax imposed by this Act, a tax is
imposed upon any person engaged in business as a retailer of
cigarettes at the rate of 20.0 mills per cigarette sold or
otherwise disposed of in the course of such business in this
State. Beginning on July 1, 2011, in addition to any other tax
imposed by this Act, a tax is imposed upon any person engaged
in business as a retailer of cigarettes at the rate of 25 mills
per cigarette sold or otherwise disposed of in the course of
such business in this State. Beginning on July 1, 2012, in
addition to any other tax imposed by this Act, a tax is imposed
upon any person engaged in business as a retailer of cigarettes
at the rate of 25 mills per cigarette sold or otherwise
disposed of in the course of such business in this State. Of
the moneys received by the Department of Revenue under this Act
and the Cigarette Use Tax Act from the additional taxes imposed
by this amendatory Act of the 97th General Assembly the balance
shall be paid each month into the Capital Projects Fund, a
special fund in the State treasury. The payment of such taxes
shall be evidenced by a stamp affixed to each original package
of cigarettes, or an authorized substitute for such stamp
imprinted on each original package of such cigarettes
underneath the sealed transparent outside wrapper of such
original package, as hereinafter provided. However, such taxes

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are not imposed upon any activity in such business in
interstate commerce or otherwise, which activity may not under
the Constitution and statutes of the United States be made the
subject of taxation by this State.
Beginning on the effective date of this amendatory Act of
the 92nd General Assembly and through June 30, 2006, all of the
moneys received by the Department of Revenue pursuant to this
Act and the Cigarette Use Tax Act, other than the moneys that
are dedicated to the Common School Fund, shall be distributed
each month as follows: first, there shall be paid into the
General Revenue Fund an amount which, when added to the amount
paid into the Common School Fund for that month, equals
$33,300,000, except that in the month of August of 2004, this
amount shall equal $83,300,000; then, from the moneys
remaining, if any amounts required to be paid into the General
Revenue Fund in previous months remain unpaid, those amounts
shall be paid into the General Revenue Fund; then, beginning on
April 1, 2003, from the moneys remaining, $5,000,000 per month
shall be paid into the School Infrastructure Fund; then, if any
amounts required to be paid into the School Infrastructure Fund
in previous months remain unpaid, those amounts shall be paid
into the School Infrastructure Fund; then the moneys remaining,
if any, shall be paid into the Long-Term Care Provider Fund. To
the extent that more than $25,000,000 has been paid into the
General Revenue Fund and Common School Fund per month for the
period of July 1, 1993 through the effective date of this

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amendatory Act of 1994 from combined receipts of the Cigarette
Tax Act and the Cigarette Use Tax Act, notwithstanding the
distribution provided in this Section, the Department of
Revenue is hereby directed to adjust the distribution provided
in this Section to increase the next monthly payments to the
Long Term Care Provider Fund by the amount paid to the General
Revenue Fund and Common School Fund in excess of $25,000,000
per month and to decrease the next monthly payments to the
General Revenue Fund and Common School Fund by that same excess
amount.
Beginning on July 1, 2006, all of the moneys received by
the Department of Revenue pursuant to this Act and the
Cigarette Use Tax Act, other than the moneys that are dedicated
to the Common School Fund and, beginning on the effective date
of this amendatory Act of the 97th General Assembly, other than
the moneys from the additional taxes imposed by this amendatory
Act of the 97th General Assembly that must be paid each month
into the Capital Projects Fund, shall be distributed each month
as follows: first, there shall be paid into the General Revenue
Fund an amount that, when added to the amount paid into the
Common School Fund for that month, equals $29,200,000; then,
from the moneys remaining, if any amounts required to be paid
into the General Revenue Fund in previous months remain unpaid,
those amounts shall be paid into the General Revenue Fund; then
from the moneys remaining, $5,000,000 per month shall be paid
into the School Infrastructure Fund; then, if any amounts

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required to be paid into the School Infrastructure Fund in
previous months remain unpaid, those amounts shall be paid into
the School Infrastructure Fund; then the moneys remaining, if
any, shall be paid into the Long-Term Care Provider Fund.
When any tax imposed herein terminates or has terminated,
distributors who have bought stamps while such tax was in
effect and who therefore paid such tax, but who can show, to
the Department's satisfaction, that they sold the cigarettes to
which they affixed such stamps after such tax had terminated
and did not recover the tax or its equivalent from purchasers,
shall be allowed by the Department to take credit for such
absorbed tax against subsequent tax stamp purchases from the
Department by such distributor.
The impact of the tax levied by this Act is imposed upon
the retailer and shall be prepaid or pre-collected by the
distributor for the purpose of convenience and facility only,
and the amount of the tax shall be added to the price of the
cigarettes sold by such distributor. Collection of the tax
shall be evidenced by a stamp or stamps affixed to each
original package of cigarettes, as hereinafter provided.
Each distributor shall collect the tax from the retailer at
or before the time of the sale, shall affix the stamps as
hereinafter required, and shall remit the tax collected from
retailers to the Department, as hereinafter provided. Any
distributor who fails to properly collect and pay the tax
imposed by this Act shall be liable for the tax. Any

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distributor having cigarettes to which stamps have been affixed
in his possession for sale on the effective date of this
amendatory Act of 1989 shall not be required to pay the
additional tax imposed by this amendatory Act of 1989 on such
stamped cigarettes. Any distributor having cigarettes to which
stamps have been affixed in his or her possession for sale at
12:01 a.m. on the effective date of this amendatory Act of
1993, is required to pay the additional tax imposed by this
amendatory Act of 1993 on such stamped cigarettes. This
payment, less the discount provided in subsection (b), shall be
due when the distributor first makes a purchase of cigarette
tax stamps after the effective date of this amendatory Act of
1993, or on the first due date of a return under this Act after
the effective date of this amendatory Act of 1993, whichever
occurs first. Any distributor having cigarettes to which stamps
have been affixed in his possession for sale on December 15,
1997 shall not be required to pay the additional tax imposed by
this amendatory Act of 1997 on such stamped cigarettes.
Any distributor having cigarettes to which stamps have been
affixed in his or her possession for sale on July 1, 2002 shall
not be required to pay the additional tax imposed by this
amendatory Act of the 92nd General Assembly on those stamped
cigarettes. Any retailer having cigarettes in his or her
possession on July 1, 2011 to which tax stamps have been
affixed is not required to pay the additional tax that begins
on July 1, 2011 imposed by this amendatory Act of the 97th

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General Assembly on those stamped cigarettes. Any distributor
having cigarettes in his or her possession on July 1, 2011 to
which tax stamps have been affixed is required to pay the
additional tax that begins on July 1, 2011 imposed by this
amendatory Act of the 97th General Assembly to the extent the
calendar year 2011 average monthly volume of cigarette stamps
in the distributor's possession exceeds the average monthly
volume of cigarette stamps purchased by the distributor in
calendar year 2010. This payment, less the discount provided in
subsection (b), is due when the distributor first makes a
purchase of cigarette stamps on or after July 1, 2011 or on the
first due date of a return under this Act occurring on or after
July 1, 2011, whichever occurs first. Any retailer having
cigarettes in his or her possession on July 1, 2012 to which
tax stamps have been affixed is not required to pay the
additional tax that begins on July 1, 2012 imposed by this
amendatory Act of the 97th General Assembly on those stamped
cigarettes. Any distributor having cigarettes in his or her
possession on July 1, 2012 to which tax stamps have been
affixed is required to pay the additional tax that begins on
July 1, 2012 imposed by this amendatory Act of the 97th General
Assembly to the extent the calendar year 2012 average monthly
volume of cigarette stamps in the distributor's possession
exceeds the average monthly volume of cigarette stamps
purchased by the distributor in calendar year 2011. This
payment, less the discount provided in subsection (b), is due

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when the distributor first makes a purchase of cigarette stamps
on or after July 1, 2012 or on the first due date of a return
under this Act occurring on or after July 1, 2012, whichever
occurs first.
Distributors making sales of cigarettes to secondary
distributors shall add the amount of the tax to the price of
the cigarettes sold by the distributors. Secondary
distributors making sales of cigarettes to retailers shall
include the amount of the tax in the price of the cigarettes
sold to retailers. The amount of tax shall not be less than the
amount of taxes imposed by the State and all local
jurisdictions. The amount of local taxes shall be calculated
based on the location of the retailer's place of business shown
on the retailer's certificate of registration or
sub-registration issued to the retailer pursuant to Section 2a
of the Retailers' Occupation Tax Act. The original packages of
cigarettes sold to the retailer shall bear all the required
stamps, or other indicia, for the taxes included in the price
of cigarettes.
The amount of the Cigarette Tax imposed by this Act shall
be separately stated, apart from the price of the goods, by
distributors, secondary distributors, and retailers, in all
bills and sales invoices.
(b) The distributor shall be required to collect the taxes
provided under paragraph (a) hereof, and, to cover the costs of
such collection, shall be allowed a discount during any year

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commencing July 1st and ending the following June 30th in
accordance with the schedule set out hereinbelow, which
discount shall be allowed at the time of purchase of the stamps
when purchase is required by this Act, or at the time when the
tax is remitted to the Department without the purchase of
stamps from the Department when that method of paying the tax
is required or authorized by this Act. Prior to December 1,
1985, a discount equal to 1 2/3% of the amount of the tax up to
and including the first $700,000 paid hereunder by such
distributor to the Department during any such year; 1 1/3% of
the next $700,000 of tax or any part thereof, paid hereunder by
such distributor to the Department during any such year; 1% of
the next $700,000 of tax, or any part thereof, paid hereunder
by such distributor to the Department during any such year, and
2/3 of 1% of the amount of any additional tax paid hereunder by
such distributor to the Department during any such year shall
apply. On and after December 1, 1985, a discount equal to 1.75%
of the amount of the tax payable under this Act up to and
including the first $3,000,000 paid hereunder by such
distributor to the Department during any such year and 1.5% of
the amount of any additional tax paid hereunder by such
distributor to the Department during any such year shall apply.
Two or more distributors that use a common means of
affixing revenue tax stamps or that are owned or controlled by
the same interests shall be treated as a single distributor for
the purpose of computing the discount.

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(c) The taxes herein imposed are in addition to all other
occupation or privilege taxes imposed by the State of Illinois,
or by any political subdivision thereof, or by any municipal
corporation.
(Source: P.A. 96-1027, eff. 7-12-10.)
(35 ILCS 130/3) (from Ch. 120, par. 453.3)
Sec. 3. Affixing tax stamp; remitting tax to the
Department. Payment of the taxes imposed by Section 2 of this
Act shall (except as hereinafter provided) be evidenced by
revenue tax stamps affixed to each original package of
cigarettes. Each distributor of cigarettes, before delivering
or causing to be delivered any original package of cigarettes
in this State to a purchaser, shall firmly affix a proper stamp
or stamps to each such package, or (in case of manufacturers of
cigarettes in original packages which are contained inside a
sealed transparent wrapper) shall imprint the required
language on the original package of cigarettes beneath such
outside wrapper, as hereinafter provided.
No stamp or imprint may be affixed to, or made upon, any
package of cigarettes unless that package complies with all
requirements of the federal Cigarette Labeling and Advertising
Act, 15 U.S.C. 1331 and following, for the placement of labels,
warnings, or any other information upon a package of cigarettes
that is sold within the United States. Under the authority of
Section 6, the Department shall revoke the license of any

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distributor that is determined to have violated this paragraph.
A person may not affix a stamp on a package of cigarettes,
cigarette papers, wrappers, or tubes if that individual package
has been marked for export outside the United States with a
label or notice in compliance with Section 290.185 of Title 27
of the Code of Federal Regulations. It is not a defense to a
proceeding for violation of this paragraph that the label or
notice has been removed, mutilated, obliterated, or altered in
any manner.
Only distributors licensed under this Act and
transporters, as defined in Section 9c of this Act, may possess
unstamped original packages of cigarettes. Prior to shipment to
a secondary distributor or an Illinois retailer, a stamp shall
be applied to each original package of cigarettes sold to the
secondary distributor or retailer. A distributor may apply tax
stamps only to original packages of cigarettes purchased or
obtained directly from an in-state maker, manufacturer, or
fabricator licensed as a distributor under Section 4 of this
Act or an out-of-state maker, manufacturer, or fabricator
holding a permit under Section 4b of this Act. A licensed
distributor may ship or otherwise cause to be delivered
unstamped original packages of cigarettes in, into, or from
this State. A licensed distributor may transport unstamped
original packages of cigarettes to a facility, wherever
located, owned or controlled by such distributor; however, a
distributor may not transport unstamped original packages of

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cigarettes to a facility where retail sales of cigarettes take
place or to a facility where a secondary distributor makes
sales for resale. Any licensed distributor that ships or
otherwise causes to be delivered unstamped original packages of
cigarettes into, within, or from this State shall ensure that
the invoice or equivalent documentation and the bill of lading
or freight bill for the shipment identifies the true name and
address of the consignor or seller, the true name and address
of the consignee or purchaser, and the quantity by brand style
of the cigarettes so transported, provided that this Section
shall not be construed as to impose any requirement or
liability upon any common or contract carrier.
The Department, or any person authorized by the Department,
shall sell such stamps only to persons holding valid licenses
as distributors under this Act. On and after July 1, 2003,
payment for such stamps must be made by means of electronic
funds transfer. The Department may refuse to sell stamps to any
person who does not comply with the provisions of this Act.
Beginning on the effective date of this amendatory Act of the
92nd General Assembly and through June 30, 2002, persons
holding valid licenses as distributors may purchase cigarette
tax stamps up to an amount equal to 115% of the distributor's
average monthly cigarette tax stamp purchases over the 12
calendar months prior to the effective date of this amendatory
Act of the 92nd General Assembly.
Prior to December 1, 1985, the Department shall allow a

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distributor 21 days in which to make final payment of the
amount to be paid for such stamps, by allowing the distributor
to make payment for the stamps at the time of purchasing them
with a draft which shall be in such form as the Department
prescribes, and which shall be payable within 21 days
thereafter: Provided that such distributor has filed with the
Department, and has received the Department's approval of, a
bond, which is in addition to the bond required under Section 4
of this Act, payable to the Department in an amount equal to
80% of such distributor's average monthly tax liability to the
Department under this Act during the preceding calendar year or
$500,000, whichever is less. The Bond shall be joint and
several and shall be in the form of a surety company bond in
such form as the Department prescribes, or it may be in the
form of a bank certificate of deposit or bank letter of credit.
The bond shall be conditioned upon the distributor's payment of
amount of any 21-day draft which the Department accepts from
that distributor for the delivery of stamps to that distributor
under this Act. The distributor's failure to pay any such
draft, when due, shall also make such distributor automatically
liable to the Department for a penalty equal to 25% of the
amount of such draft.
On and after December 1, 1985 and until July 1, 2003, the
Department shall allow a distributor 30 days in which to make
final payment of the amount to be paid for such stamps, by
allowing the distributor to make payment for the stamps at the

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time of purchasing them with a draft which shall be in such
form as the Department prescribes, and which shall be payable
within 30 days thereafter, and beginning on January 1, 2003 and
thereafter, the draft shall be payable by means of electronic
funds transfer: Provided that such distributor has filed with
the Department, and has received the Department's approval of,
a bond, which is in addition to the bond required under Section
4 of this Act, payable to the Department in an amount equal to
150% of such distributor's average monthly tax liability to the
Department under this Act during the preceding calendar year or
$750,000, whichever is less, except that as to bonds filed on
or after January 1, 1987, such additional bond shall be in an
amount equal to 100% of such distributor's average monthly tax
liability under this Act during the preceding calendar year or
$750,000, whichever is less. The bond shall be joint and
several and shall be in the form of a surety company bond in
such form as the Department prescribes, or it may be in the
form of a bank certificate of deposit or bank letter of credit.
The bond shall be conditioned upon the distributor's payment of
the amount of any 30-day draft which the Department accepts
from that distributor for the delivery of stamps to that
distributor under this Act. The distributor's failure to pay
any such draft, when due, shall also make such distributor
automatically liable to the Department for a penalty equal to
25% of the amount of such draft.
Beginning on the effective date of this amendatory Act of

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the 97th General Assembly, the Department shall allow a
distributor 10 days in which to make final payment of the
amount to be paid for such stamps, by allowing the distributor
to make payment for the stamps at the time of purchasing them
with a draft, which shall be payable by means of electronic
funds transfer and in such form as the Department prescribes,
and which shall be payable within 10 days thereafter, provided
that such distributor has filed with the Department, and has
received the Department's approval of, a bond, which is in
addition to the bond required under Section 4 of this Act,
payable to the Department in an amount equal to 100% of that
distributor's average monthly tax liability to the Department
under this Act during the preceding calendar year or $750,000,
whichever is less. The bond shall be joint and several and
shall be in the form of a surety company bond in such form as
the Department prescribes, or it may be in the form of a bank
certificate of deposit or bank letter of credit. The bond shall
be conditioned upon the distributor's payment of the amount of
any 10-day draft which the Department accepts from that
distributor for the delivery of stamps to that distributor
under this Act. The distributor's failure to pay any such
draft, when due, shall also make such distributor automatically
liable to the Department for a penalty equal to 25% of the
amount of such draft.
Every prior continuous compliance taxpayer shall be exempt
from all requirements under this Section concerning the

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furnishing of such bond, as defined in this Section, as a
condition precedent to his being authorized to engage in the
business licensed under this Act. This exemption shall continue
for each such taxpayer until such time as he may be determined
by the Department to be delinquent in the filing of any
returns, or is determined by the Department (either through the
Department's issuance of a final assessment which has become
final under the Act, or by the taxpayer's filing of a return
which admits tax to be due that is not paid) to be delinquent
or deficient in the paying of any tax under this Act, at which
time that taxpayer shall become subject to the bond
requirements of this Section and, as a condition of being
allowed to continue to engage in the business licensed under
this Act, shall be required to furnish bond to the Department
in such form as provided in this Section. Such taxpayer shall
furnish such bond for a period of 2 years, after which, if the
taxpayer has not been delinquent in the filing of any returns,
or delinquent or deficient in the paying of any tax under this
Act, the Department may reinstate such person as a prior
continuance compliance taxpayer. Any taxpayer who fails to pay
an admitted or established liability under this Act may also be
required to post bond or other acceptable security with the
Department guaranteeing the payment of such admitted or
established liability.
Any person aggrieved by any decision of the Department
under this Section may, within the time allowed by law, protest

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and request a hearing, whereupon the Department shall give
notice and shall hold a hearing in conformity with the
provisions of this Act and then issue its final administrative
decision in the matter to such person. In the absence of such a
protest filed within the time allowed by law, the Department's
decision shall become final without any further determination
being made or notice given.
The Department shall discharge any surety and shall release
and return any bond or security deposited, assigned, pledged,
or otherwise provided to it by a taxpayer under this Section
within 30 days after such : (1) Such taxpayer becomes a prior
continuous compliance taxpayer; or (2) Such taxpayer has ceased
to collect receipts on which he is required to remit tax to the
Department, has filed a final tax return, and has paid to the
Department an amount sufficient to discharge his remaining tax
liability as determined by the Department under this Act. The
Department shall make a final determination of the taxpayer's
outstanding tax liability as expeditiously as possible after
his final tax return has been filed. If the Department cannot
make such final determination within 45 days after receiving
the final tax return, within such period it shall so notify the
taxpayer, stating its reasons therefor.
The Department may authorize distributors to affix revenue
tax stamps by imprinting tax meter stamps upon original
packages of cigarettes. The Department shall adopt rules and
regulations relating to the imprinting of such tax meter stamps

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as will result in payment of the proper taxes as herein
imposed. No distributor may affix revenue tax stamps to
original packages of cigarettes by imprinting tax meter stamps
thereon unless such distributor has first obtained permission
from the Department to employ this method of affixation. The
Department shall regulate the use of tax meters and may, to
assure the proper collection of the taxes imposed by this Act,
revoke or suspend the privilege, theretofore granted by the
Department to any distributor, to imprint tax meter stamps upon
original packages of cigarettes.
Illinois cigarette manufacturers who place their
cigarettes in original packages which are contained inside a
sealed transparent wrapper, and similar out-of-State cigarette
manufacturers who elect to qualify and are accepted by the
Department as distributors under Section 4b(a) of this Act,
shall pay the taxes imposed by this Act by remitting the amount
thereof to the Department by the 5th day of each month covering
cigarettes shipped or otherwise delivered in Illinois to
purchasers during the preceding calendar month. Such
manufacturers of cigarettes in original packages which are
contained inside a sealed transparent wrapper, before
delivering such cigarettes or causing such cigarettes to be
delivered in this State to purchasers, shall evidence their
obligation to remit the taxes due with respect to such
cigarettes by imprinting language to be prescribed by the
Department on each original package of such cigarettes

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underneath the sealed transparent outside wrapper of such
original package, in such place thereon and in such manner as
the Department may designate. Such imprinted language shall
acknowledge the manufacturer's payment of or liability for the
tax imposed by this Act with respect to the distribution of
such cigarettes.
A distributor shall not affix, or cause to be affixed, any
stamp or imprint to a package of cigarettes, as provided for in
this Section, if the tobacco product manufacturer, as defined
in Section 10 of the Tobacco Product Manufacturers' Escrow Act,
that made or sold the cigarettes has failed to become a
participating manufacturer, as defined in subdivision (a)(1)
of Section 15 of the Tobacco Product Manufacturers' Escrow Act,
or has failed to create a qualified escrow fund for any
cigarettes manufactured by the tobacco product manufacturer
and sold in this State or otherwise failed to bring itself into
compliance with subdivision (a)(2) of Section 15 of the Tobacco
Product Manufacturers' Escrow Act.
(Source: P.A. 95-1053, eff. 1-1-10; 96-782, eff. 1-1-10;
96-1027, eff. 7-12-10.)
Section 10. The Cigarette Use Tax Act is amended by
changing Sections 2, 3, and 12 as follows:
(35 ILCS 135/2) (from Ch. 120, par. 453.32)
Sec. 2. A tax is imposed upon the privilege of using

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cigarettes in this State, at the rate of 6 mills per cigarette
so used. On and after December 1, 1985, in addition to any
other tax imposed by this Act, a tax is imposed upon the
privilege of using cigarettes in this State at a rate of 4
mills per cigarette so used. On and after the effective date of
this amendatory Act of 1989, in addition to any other tax
imposed by this Act, a tax is imposed upon the privilege of
using cigarettes in this State at the rate of 5 mills per
cigarette so used. On and after the effective date of this
amendatory Act of 1993, in addition to any other tax imposed by
this Act, a tax is imposed upon the privilege of using
cigarettes in this State at a rate of 7 mills per cigarette so
used. On and after December 15, 1997, in addition to any other
tax imposed by this Act, a tax is imposed upon the privilege of
using cigarettes in this State at a rate of 7 mills per
cigarette so used. On and after July 1, 2002, in addition to
any other tax imposed by this Act, a tax is imposed upon the
privilege of using cigarettes in this State at a rate of 20.0
mills per cigarette so used. Beginning on July 1, 2011, in
addition to any other tax imposed by this Act, a tax is imposed
upon the privilege of using cigarettes in this State at a rate
of 25 mills per cigarette so used. Beginning on July 1, 2012,
in addition to any other tax imposed by this Act, a tax is
imposed upon the privilege of using cigarettes in this State at
a rate of 25 mills per cigarette so used. The taxes herein
imposed shall be in addition to all other occupation or

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privilege taxes imposed by the State of Illinois or by any
political subdivision thereof or by any municipal corporation.
When any tax imposed herein terminates or has terminated,
distributors who have bought stamps while such tax was in
effect and who therefore paid such tax, but who can show, to
the Department's satisfaction, that they sold the cigarettes to
which they affixed such stamps after such tax had terminated
and did not recover the tax or its equivalent from purchasers,
shall be allowed by the Department to take credit for such
absorbed tax against subsequent tax stamp purchases from the
Department by such distributors.
When the word "tax" is used in this Act, it shall include
any tax or tax rate imposed by this Act and shall mean the
singular of "tax" or the plural "taxes" as the context may
require.
Any distributor having cigarettes to which stamps have been
affixed in his possession for sale on the effective date of
this amendatory Act of 1989 shall not be required to pay the
additional tax imposed by this amendatory Act of 1989 on such
stamped cigarettes. Any distributor having cigarettes to which
stamps have been affixed in his or her possession for sale at
12:01 a.m. on the effective date of this amendatory Act of
1993, is required to pay the additional tax imposed by this
amendatory Act of 1993 on such stamped cigarettes. This payment
shall be due when the distributor first makes a purchase of
cigarette tax stamps after the effective date of this

09700SB0021sam001 - 23 - LRB097 06653 HLH 53122 a
amendatory Act of 1993, or on the first due date of a return
under this Act after the effective date of this amendatory Act
of 1993, whichever occurs first. Once a distributor tenders
payment of the additional tax to the Department, the
distributor may purchase stamps from the Department. Any
distributor having cigarettes to which stamps have been affixed
in his possession for sale on December 15, 1997 shall not be
required to pay the additional tax imposed by this amendatory
Act of 1997 on such stamped cigarettes.
Any distributor having cigarettes to which stamps have been
affixed in his or her possession for sale on July 1, 2002 shall
not be required to pay the additional tax imposed by this
amendatory Act of the 92nd General Assembly on those stamped
cigarettes. Any retailer having cigarettes in his or her
possession on July 1, 2011 to which tax stamps have been
affixed is not required to pay the additional tax that begins
on July 1, 2011 imposed by this amendatory Act of the 97th
General Assembly on those stamped cigarettes. Any distributor
having cigarettes in his or her possession on July 1, 2011 to
which tax stamps have been affixed is required to pay the
additional tax that begins on July 1, 2011 imposed by this
amendatory Act of the 97th General Assembly to the extent the
calendar year 2011 average monthly volume of cigarette stamps
in the distributor's possession exceeds the average monthly
volume of cigarette stamps purchased by the distributor in
calendar year 2010. This payment, less the discount provided in

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Section 3, is due when the distributor first makes a purchase
of cigarette stamps on or after July 1, 2011 or on the first
due date of a return under this Act occurring on or after July
1, 2011, whichever occurs first. Any retailer having cigarettes
in his or her possession on July 1, 2012 to which tax stamps
have been affixed is not required to pay the additional tax
that begins on July 1, 2012 imposed by this amendatory Act of
the 97th General Assembly on those stamped cigarettes. Any
distributor having cigarettes in his or her possession on July
1, 2012 to which tax stamps have been affixed is required to
pay the additional tax that begins on July 1, 2012 imposed by
this amendatory Act of the 97th General Assembly to the extent
the calendar year 2012 average monthly volume of cigarette
stamps in the distributor's possession exceeds the average
monthly volume of cigarette stamps purchased by the distributor
in calendar year 2011. This payment, less the discount provided
in Section 3, is due when the distributor first makes a
purchase of cigarette stamps on or after July 1, 2012 or on the
first due date of a return under this Act occurring on or after
July 1, 2012, whichever occurs first.
(Source: P.A. 92-536, eff. 6-6-02.)
(35 ILCS 135/3) (from Ch. 120, par. 453.33)
Sec. 3. Stamp payment. The tax hereby imposed shall be
collected by a distributor maintaining a place of business in
this State or a distributor authorized by the Department

09700SB0021sam001 - 25 - LRB097 06653 HLH 53122 a
pursuant to Section 7 hereof to collect the tax, and the amount
of the tax shall be added to the price of the cigarettes sold
by such distributor. Collection of the tax shall be evidenced
by a stamp or stamps affixed to each original package of
cigarettes or by an authorized substitute for such stamp
imprinted on each original package of such cigarettes
underneath the sealed transparent outside wrapper of such
original package, except as hereinafter provided. Each
distributor who is required or authorized to collect the tax
herein imposed, before delivering or causing to be delivered
any original packages of cigarettes in this State to any
purchaser, shall firmly affix a proper stamp or stamps to each
such package, or (in the case of manufacturers of cigarettes in
original packages which are contained inside a sealed
transparent wrapper) shall imprint the required language on the
original package of cigarettes beneath such outside wrapper as
hereinafter provided. Such stamp or stamps need not be affixed
to the original package of any cigarettes with respect to which
the distributor is required to affix a like stamp or stamps by
virtue of the Cigarette Tax Act, however, and no tax imprint
need be placed underneath the sealed transparent wrapper of an
original package of cigarettes with respect to which the
distributor is required or authorized to employ a like tax
imprint by virtue of the Cigarette Tax Act.
No stamp or imprint may be affixed to, or made upon, any
package of cigarettes unless that package complies with all

09700SB0021sam001 - 26 - LRB097 06653 HLH 53122 a
requirements of the federal Cigarette Labeling and Advertising
Act, 15 U.S.C. 1331 and following, for the placement of labels,
warnings, or any other information upon a package of cigarettes
that is sold within the United States. Under the authority of
Section 6, the Department shall revoke the license of any
distributor that is determined to have violated this paragraph.
A person may not affix a stamp on a package of cigarettes,
cigarette papers, wrappers, or tubes if that individual package
has been marked for export outside the United States with a
label or notice in compliance with Section 290.185 of Title 27
of the Code of Federal Regulations. It is not a defense to a
proceeding for violation of this paragraph that the label or
notice has been removed, mutilated, obliterated, or altered in
any manner.
Only distributors licensed under this Act and
transporters, as defined in Section 9c of the Cigarette Tax
Act, may possess unstamped original packages of cigarettes.
Prior to shipment to an Illinois retailer or secondary
distributor, a stamp shall be applied to each original package
of cigarettes sold to the retailer or secondary distributor. A
distributor may apply a tax stamp only to an original package
of cigarettes purchased or obtained directly from an in-state
maker, manufacturer, or fabricator licensed as a distributor
under Section 4 of this Act or an out-of-state maker,
manufacturer, or fabricator holding a permit under Section 7 of
this Act. A licensed distributor may ship or otherwise cause to

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be delivered unstamped original packages of cigarettes in,
into, or from this State. A licensed distributor may transport
unstamped original packages of cigarettes to a facility,
wherever located, owned or controlled by such distributor;
however, a distributor may not transport unstamped original
packages of cigarettes to a facility where retail sales of
cigarettes take place or to a facility where a secondary
distributor makes sales for resale. Any licensed distributor
that ships or otherwise causes to be delivered unstamped
original packages of cigarettes into, within, or from this
State shall ensure that the invoice or equivalent documentation
and the bill of lading or freight bill for the shipment
identifies the true name and address of the consignor or
seller, the true name and address of the consignee or
purchaser, and the quantity by brand style of the cigarettes so
transported, provided that this Section shall not be construed
as to impose any requirement or liability upon any common or
contract carrier.
Distributors making sales of cigarettes to secondary
distributors shall add the amount of the tax to the price of
the cigarettes sold by the distributors. Secondary
distributors making sales of cigarettes to retailers shall
include the amount of the tax in the price of the cigarettes
sold to retailers. The amount of tax shall not be less than the
amount of taxes imposed by the State and all local
jurisdictions. The amount of local taxes shall be calculated

09700SB0021sam001 - 28 - LRB097 06653 HLH 53122 a
based on the location of the retailer's place of business shown
on the retailer's certificate of registration or
sub-registration issued to the retailer pursuant to Section 2a
of the Retailers' Occupation Tax Act. The original packages of
cigarettes sold by the retailer shall bear all the required
stamps, or other indicia, for the taxes included in the price
of cigarettes.
Stamps, when required hereunder, shall be purchased from
the Department, or any person authorized by the Department, by
distributors. On and after July 1, 2003, payment for such
stamps must be made by means of electronic funds transfer. The
Department may refuse to sell stamps to any person who does not
comply with the provisions of this Act. Beginning on June 6,
2002 and through June 30, 2002, persons holding valid licenses
as distributors may purchase cigarette tax stamps up to an
amount equal to 115% of the distributor's average monthly
cigarette tax stamp purchases over the 12 calendar months prior
to June 6, 2002.
Prior to December 1, 1985, the Department shall allow a
distributor 21 days in which to make final payment of the
amount to be paid for such stamps, by allowing the distributor
to make payment for the stamps at the time of purchasing them
with a draft which shall be in such form as the Department
prescribes, and which shall be payable within 21 days
thereafter: Provided that such distributor has filed with the
Department, and has received the Department's approval of, a

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bond, which is in addition to the bond required under Section 4
of this Act, payable to the Department in an amount equal to
80% of such distributor's average monthly tax liability to the
Department under this Act during the preceding calendar year or
$500,000, whichever is less. The bond shall be joint and
several and shall be in the form of a surety company bond in
such form as the Department prescribes, or it may be in the
form of a bank certificate of deposit or bank letter of credit.
The bond shall be conditioned upon the distributor's payment of
the amount of any 21-day draft which the Department accepts
from that distributor for the delivery of stamps to that
distributor under this Act. The distributor's failure to pay
any such draft, when due, shall also make such distributor
automatically liable to the Department for a penalty equal to
25% of the amount of such draft.
On and after December 1, 1985 and until July 1, 2003, the
Department shall allow a distributor 30 days in which to make
final payment of the amount to be paid for such stamps, by
allowing the distributor to make payment for the stamps at the
time of purchasing them with a draft which shall be in such
form as the Department prescribes, and which shall be payable
within 30 days thereafter, and beginning on January 1, 2003 and
thereafter, the draft shall be payable by means of electronic
funds transfer: Provided that such distributor has filed with
the Department, and has received the Department's approval of,
a bond, which is in addition to the bond required under Section

09700SB0021sam001 - 30 - LRB097 06653 HLH 53122 a
4 of this Act, payable to the Department in an amount equal to
150% of such distributor's average monthly tax liability to the
Department under this Act during the preceding calendar year or
$750,000, whichever is less, except that as to bonds filed on
or after January 1, 1987, such additional bond shall be in an
amount equal to 100% of such distributor's average monthly tax
liability under this Act during the preceding calendar year or
$750,000, whichever is less. The bond shall be joint and
several and shall be in the form of a surety company bond in
such form as the Department prescribes, or it may be in the
form of a bank certificate of deposit or bank letter of credit.
The bond shall be conditioned upon the distributor's payment of
the amount of any 30-day draft which the Department accepts
from that distributor for the delivery of stamps to that
distributor under this Act. The distributor's failure to pay
any such draft, when due, shall also make such distributor
automatically liable to the Department for a penalty equal to
25% of the amount of such draft.
Beginning on the effective date of this amendatory Act of
the 97th General Assembly, the Department shall allow a
distributor 10 days in which to make final payment of the
amount to be paid for such stamps, by allowing the distributor
to make payment for the stamps at the time of purchasing them
with a draft, which shall be payable by means of electronic
funds transfer and in such form as the Department prescribes,
and which shall be payable within 10 days thereafter, provided

09700SB0021sam001 - 31 - LRB097 06653 HLH 53122 a
that such distributor has filed with the Department, and has
received the Department's approval of, a bond, which is in
addition to the bond required under Section 4 of this Act,
payable to the Department in an amount equal to 100% of that
distributor's average monthly tax liability to the Department
under this Act during the preceding calendar year or $750,000,
whichever is less. The bond shall be joint and several and
shall be in the form of a surety company bond in such form as
the Department prescribes, or it may be in the form of a bank
certificate of deposit or bank letter of credit. The bond shall
be conditioned upon the distributor's payment of the amount of
any 10-day draft which the Department accepts from that
distributor for the delivery of stamps to that distributor
under this Act. The distributor's failure to pay any such
draft, when due, shall also make such distributor automatically
liable to the Department for a penalty equal to 25% of the
amount of such draft.
Every prior continuous compliance taxpayer shall be exempt
from all requirements under this Section concerning the
furnishing of such bond, as defined in this Section, as a
condition precedent to his being authorized to engage in the
business licensed under this Act. This exemption shall continue
for each such taxpayer until such time as he may be determined
by the Department to be delinquent in the filing of any
returns, or is determined by the Department (either through the
Department's issuance of a final assessment which has become

09700SB0021sam001 - 32 - LRB097 06653 HLH 53122 a
final under the Act, or by the taxpayer's filing of a return
which admits tax to be due that is not paid) to be delinquent
or deficient in the paying of any tax under this Act, at which
time that taxpayer shall become subject to the bond
requirements of this Section and, as a condition of being
allowed to continue to engage in the business licensed under
this Act, shall be required to furnish bond to the Department
in such form as provided in this Section. Such taxpayer shall
furnish such bond for a period of 2 years, after which, if the
taxpayer has not been delinquent in the filing of any returns,
or delinquent or deficient in the paying of any tax under this
Act, the Department may reinstate such person as a prior
continuance compliance taxpayer. Any taxpayer who fails to pay
an admitted or established liability under this Act may also be
required to post bond or other acceptable security with the
Department guaranteeing the payment of such admitted or
established liability.
Any person aggrieved by any decision of the Department
under this Section may, within the time allowed by law, protest
and request a hearing, whereupon the Department shall give
notice and shall hold a hearing in conformity with the
provisions of this Act and then issue its final administrative
decision in the matter to such person. In the absence of such a
protest filed within the time allowed by law, the Department's
decision shall become final without any further determination
being made or notice given.

09700SB0021sam001 - 33 - LRB097 06653 HLH 53122 a
The Department shall discharge any surety and shall release
and return any bond or security deposited, assigned, pledged,
or otherwise provided to it by a taxpayer under this Section
within 30 days after:(1) such Taxpayer becomes a prior
continuous compliance taxpayer; or (2) such taxpayer has ceased
to collect receipts on which he is required to remit tax to the
Department, has filed a final tax return, and has paid to the
Department an amount sufficient to discharge his remaining tax
liability as determined by the Department under this Act. The
Department shall make a final determination of the taxpayer's
outstanding tax liability as expeditiously as possible after
his final tax return has been filed. If the Department cannot
make such final determination within 45 days after receiving
the final tax return, within such period it shall so notify the
taxpayer, stating its reasons therefor.
At the time of purchasing such stamps from the Department
when purchase is required by this Act, or at the time when the
tax which he has collected is remitted by a distributor to the
Department without the purchase of stamps from the Department
when that method of remitting the tax that has been collected
is required or authorized by this Act, the distributor shall be
allowed a discount during any year commencing July 1 and ending
the following June 30 in accordance with the schedule set out
hereinbelow, from the amount to be paid by him to the
Department for such stamps, or to be paid by him to the
Department on the basis of monthly remittances (as the case may

09700SB0021sam001 - 34 - LRB097 06653 HLH 53122 a
be), to cover the cost, to such distributor, of collecting the
tax herein imposed by affixing such stamps to the original
packages of cigarettes sold by such distributor or by placing
tax imprints underneath the sealed transparent wrapper of
original packages of cigarettes sold by such distributor (as
the case may be): (1) Prior to December 1, 1985, a discount
equal to 1-2/3% of the amount of the tax up to and including
the first $700,000 paid hereunder by such distributor to the
Department during any such year; 1-1/3% of the next $700,000 of
tax or any part thereof, paid hereunder by such distributor to
the Department during any such year; 1% of the next $700,000 of
tax, or any part thereof, paid hereunder by such distributor to
the Department during any such year; and 2/3 of 1% of the
amount of any additional tax paid hereunder by such distributor
to the Department during any such year or (2) On and after
December 1, 1985, a discount equal to 1.75% of the amount of
the tax payable under this Act up to and including the first
$3,000,000 paid hereunder by such distributor to the Department
during any such year and 1.5% of the amount of any additional
tax paid hereunder by such distributor to the Department during
any such year.
Two or more distributors that use a common means of
affixing revenue tax stamps or that are owned or controlled by
the same interests shall be treated as a single distributor for
the purpose of computing the discount.
Cigarette manufacturers who are distributors under Section

09700SB0021sam001 - 35 - LRB097 06653 HLH 53122 a
7(a) of this Act, and who place their cigarettes in original
packages which are contained inside a sealed transparent
wrapper, shall be required to remit the tax which they are
required to collect under this Act to the Department by
remitting the amount thereof to the Department by the 5th day
of each month, covering cigarettes shipped or otherwise
delivered to points in Illinois to purchasers during the
preceding calendar month, but a distributor need not remit to
the Department the tax so collected by him from purchasers
under this Act to the extent to which such distributor is
required to remit the tax imposed by the Cigarette Tax Act to
the Department with respect to the same cigarettes. All taxes
upon cigarettes under this Act are a direct tax upon the retail
consumer and shall conclusively be presumed to be precollected
for the purpose of convenience and facility only. Cigarette
manufacturers that are distributors licensed under Section
7(a) of this Act and who place their cigarettes in original
packages which are contained inside a sealed transparent
wrapper, before delivering such cigarettes or causing such
cigarettes to be delivered in this State to purchasers, shall
evidence their obligation to collect and remit the tax due with
respect to such cigarettes by imprinting language to be
prescribed by the Department on each original package of such
cigarettes underneath the sealed transparent outside wrapper
of such original package, in such place thereon and in such
manner as the Department may prescribe; provided (as stated

09700SB0021sam001 - 36 - LRB097 06653 HLH 53122 a
hereinbefore) that this requirement does not apply when such
distributor is required or authorized by the Cigarette Tax Act
to place the tax imprint provided for in the last paragraph of
Section 3 of that Act underneath the sealed transparent wrapper
of such original package of cigarettes. Such imprinted language
shall acknowledge the manufacturer's collection and payment of
or liability for the tax imposed by this Act with respect to
such cigarettes.
The Department shall adopt the design or designs of the tax
stamps and shall procure the printing of such stamps in such
amounts and denominations as it deems necessary to provide for
the affixation of the proper amount of tax stamps to each
original package of cigarettes.
Where tax stamps are required, the Department may authorize
distributors to affix revenue tax stamps by imprinting tax
meter stamps upon original packages of cigarettes. The
Department shall adopt rules and regulations relating to the
imprinting of such tax meter stamps as will result in payment
of the proper taxes as herein imposed. No distributor may affix
revenue tax stamps to original packages of cigarettes by
imprinting meter stamps thereon unless such distributor has
first obtained permission from the Department to employ this
method of affixation. The Department shall regulate the use of
tax meters and may, to assure the proper collection of the
taxes imposed by this Act, revoke or suspend the privilege,
theretofore granted by the Department to any distributor, to

09700SB0021sam001 - 37 - LRB097 06653 HLH 53122 a
imprint tax meter stamps upon original packages of cigarettes.
The tax hereby imposed and not paid pursuant to this
Section shall be paid to the Department directly by any person
using such cigarettes within this State, pursuant to Section 12
hereof.
A distributor shall not affix, or cause to be affixed, any
stamp or imprint to a package of cigarettes, as provided for in
this Section, if the tobacco product manufacturer, as defined
in Section 10 of the Tobacco Product Manufacturers' Escrow Act,
that made or sold the cigarettes has failed to become a
participating manufacturer, as defined in subdivision (a)(1)
of Section 15 of the Tobacco Product Manufacturers' Escrow Act,
or has failed to create a qualified escrow fund for any
cigarettes manufactured by the tobacco product manufacturer
and sold in this State or otherwise failed to bring itself into
compliance with subdivision (a)(2) of Section 15 of the Tobacco
Product Manufacturers' Escrow Act.
(Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10.)
(35 ILCS 135/12) (from Ch. 120, par. 453.42)
Sec. 12. Declaration of possession of cigarettes on which
tax not paid.
(a) When cigarettes are acquired for use in this State by a
person (including a distributor as well as any other person),
who did not pay the tax herein imposed to a distributor, the
person, within 30 days after acquiring the cigarettes, shall

09700SB0021sam001 - 38 - LRB097 06653 HLH 53122 a
file with the Department a return declaring the possession of
the cigarettes and shall transmit with the return to the
Department the tax imposed by this Act.
(b) On receipt of the return and payment of the tax as
required by paragraph (a), the Department may furnish the
person with a suitable tax stamp to be affixed to the package
of cigarettes upon which the tax has been paid if the
Department determines that the cigarettes still exist.
(c) The return referred to in paragraph (a) shall contain
the name and address of the person possessing the cigarettes
involved, the location of the cigarettes and the quantity,
brand name, place, and date of the acquisition of the
cigarettes.
(d) Nothing in this Section shall permit a secondary
distributor to purchase unstamped original packages of
cigarettes or to purchase original packages of cigarettes from
a person other than a licensed distributor.
(e) The provisions of this Section are not subject to the
Uniform Penalty and Interest Act.
(Source: P.A. 96-1027, eff. 7-12-10.)
Section 15. The Liquor Control Act of 1934 is amended by
reenacting and changing Section 8-1 as follows:
(235 ILCS 5/8-1)
Sec. 8-1. A tax is imposed upon the privilege of engaging

09700SB0021sam001 - 39 - LRB097 06653 HLH 53122 a
in business as a manufacturer or as an importing distributor of
alcoholic liquor other than beer at the rate of $0.185 per
gallon until September 1, 2009 and $0.231 per gallon beginning
September 1, 2009 for cider containing not less than 0.5%
alcohol by volume nor more than 7% alcohol by volume, $0.73 per
gallon until September 1, 2009, and $1.39 per gallon beginning
September 1, 2009 and until July 1, 2011, and $0.911 per gallon
beginning July 1, 2011 for wine other than cider containing
less than 7% alcohol by volume, and $4.50 per gallon until
September 1, 2009 and $8.55 per gallon beginning September 1,
2009 and until July 1, 2011, and $5.619 per gallon beginning
July 1, 2011 on alcohol and spirits manufactured and sold or
used by such manufacturer, or as agent for any other person, or
sold or used by such importing distributor, or as agent for any
other person. A tax is imposed upon the privilege of engaging
in business as a manufacturer of beer or as an importing
distributor of beer at the rate of $0.185 per gallon until
September 1, 2009 and $0.231 per gallon beginning September 1,
2009 on all beer manufactured and sold or used by such
manufacturer, or as agent for any other person, or sold or used
by such importing distributor, or as agent for any other
person. Any brewer manufacturing beer in this State shall be
entitled to and given a credit or refund of 75% of the tax
imposed on each gallon of beer up to 4.9 million gallons per
year in any given calendar year for tax paid or payable on beer
produced and sold in the State of Illinois.

09700SB0021sam001 - 40 - LRB097 06653 HLH 53122 a
For the purpose of this Section, "cider" means any
alcoholic beverage obtained by the alcohol fermentation of the
juice of apples or pears including, but not limited to,
flavored, sparkling, or carbonated cider.
The credit or refund created by this Act shall apply to all
beer taxes in the calendar years 1982 through 1986.
The increases made by this amendatory Act of the 91st
General Assembly in the rates of taxes imposed under this
Section shall apply beginning on July 1, 1999.
A tax at the rate of 1� per gallon on beer and 48� per
gallon on alcohol and spirits is also imposed upon the
privilege of engaging in business as a retailer or as a
distributor who is not also an importing distributor with
respect to all beer and all alcohol and spirits owned or
possessed by such retailer or distributor when this amendatory
Act of 1969 becomes effective, and with respect to which the
additional tax imposed by this amendatory Act upon
manufacturers and importing distributors does not apply.
Retailers and distributors who are subject to the additional
tax imposed by this paragraph of this Section shall be required
to inventory such alcoholic liquor and to pay this additional
tax in a manner prescribed by the Department.
The provisions of this Section shall be construed to apply
to any importing distributor engaging in business in this
State, whether licensed or not.
However, such tax is not imposed upon any such business as

09700SB0021sam001 - 41 - LRB097 06653 HLH 53122 a
to any alcoholic liquor shipped outside Illinois by an Illinois
licensed manufacturer or importing distributor, nor as to any
alcoholic liquor delivered in Illinois by an Illinois licensed
manufacturer or importing distributor to a purchaser for
immediate transportation by the purchaser to another state into
which the purchaser has a legal right, under the laws of such
state, to import such alcoholic liquor, nor as to any alcoholic
liquor other than beer sold by one Illinois licensed
manufacturer or importing distributor to another Illinois
licensed manufacturer or importing distributor to the extent to
which the sale of alcoholic liquor other than beer by one
Illinois licensed manufacturer or importing distributor to
another Illinois licensed manufacturer or importing
distributor is authorized by the licensing provisions of this
Act, nor to alcoholic liquor whether manufactured in or
imported into this State when sold to a "non-beverage user"
licensed by the State for use in the manufacture of any of the
following when they are unfit for beverage purposes:
Patent and proprietary medicines and medicinal,
antiseptic, culinary and toilet preparations;
Flavoring extracts and syrups and food products;
Scientific, industrial and chemical products, excepting
denatured alcohol;
Or for scientific, chemical, experimental or mechanical
purposes;
Nor is the tax imposed upon the privilege of engaging in

09700SB0021sam001 - 42 - LRB097 06653 HLH 53122 a
any business in interstate commerce or otherwise, which
business may not, under the Constitution and Statutes of the
United States, be made the subject of taxation by this State.
The tax herein imposed shall be in addition to all other
occupation or privilege taxes imposed by the State of Illinois
or political subdivision thereof.
If any alcoholic liquor manufactured in or imported into
this State is sold to a licensed manufacturer or importing
distributor by a licensed manufacturer or importing
distributor to be used solely as an ingredient in the
manufacture of any beverage for human consumption, the tax
imposed upon such purchasing manufacturer or importing
distributor shall be reduced by the amount of the taxes which
have been paid by the selling manufacturer or importing
distributor under this Act as to such alcoholic liquor so used
to the Department of Revenue.
If any person received any alcoholic liquors from a
manufacturer or importing distributor, with respect to which
alcoholic liquors no tax is imposed under this Article, and
such alcoholic liquor shall thereafter be disposed of in such
manner or under such circumstances as may cause the same to
become the base for the tax imposed by this Article, such
person shall make the same reports and returns, pay the same
taxes and be subject to all other provisions of this Article
relating to manufacturers and importing distributors.
Nothing in this Article shall be construed to require the

09700SB0021sam001 - 43 - LRB097 06653 HLH 53122 a
payment to the Department of the taxes imposed by this Article
more than once with respect to any quantity of alcoholic liquor
sold or used within this State.
No tax is imposed by this Act on sales of alcoholic liquor
by Illinois licensed foreign importers to Illinois licensed
importing distributors.
All of the proceeds of the additional tax imposed by Public
Act 96-34, as subsequently amended by Public Acts 96-37, 96-38,
and 96-1000, and then reenacted and reduced by this amendatory
Act of the 97th General Assembly, shall be deposited by the
Department into the Capital Projects Fund. The remainder of the
tax imposed by this Act shall be deposited by the Department
into the General Revenue Fund.
The provisions of this Section 8-1 are severable under
Section 1.31 of the Statute on Statutes.
(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
eff. 7-13-09; 96-1000, eff. 7-2-10.)
Section 90. Finding; reenactment; base text; tax;
validation.
(a) On January 26, 2011, the First District Appellate
Court, in Wirtz v. Quinn (Nos. 1-09-3163 and 1-10-0344), found
that Public Act 96-34 violates the single subject rule of
Article IV, Section 8 of the Illinois Constitution, and is
therefore void in its entirety. It also found that Public Acts
96-35, 96-37, and 96-38 "are all contingent on the enactment of

09700SB0021sam001 - 44 - LRB097 06653 HLH 53122 a
Public Act 96-34", and therefore "cannot stand". As of the date
this Act was prepared, enforcement of the decision in Wirtz v.
Quinn had been stayed by the Illinois Supreme Court and the
case was still subject to further appeal.
(b) Among other things, this Act reenacts the changes to
Section 8-1 of the Liquor Control Act of 1934 made by Public
Act 96-34, by the related trailer amendments of Public Acts
96-37 and 96-38, and by the revisory bill Public Act 96-1000.
This reenactment is intended to remove any question about the
validity of those provisions and the actions taken in reliance
on them, and to provide continuity in the implementation and
administration of those provisions. Notwithstanding Section
9999 of Public Act 96-34, this reenactment is not contingent
upon House Bill 312 of the 96th General Assembly (now P.A.
96-35) becoming law. This reenactment is not intended, and
shall not be construed, to imply that all or any portion of
P.A. 96-34, 96-37, or 96-38 is invalid.
(c) The text of the reenacted material, including the
existing amendments, is shown in this Act as existing text;
striking and underscoring have been used only to indicate new
changes being made to the reenacted text by this Act
(d) All otherwise lawful actions taken before the effective
date of this Act in reasonable reliance on or pursuant to the
provisions reenacted by this Act (as those provisions were set
forth in Public Act 96-34, 96-37, or 96-38 or had been
otherwise amended at the relevant time) by any officer,

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employee, agency, or unit of State or local government or by
any other person or entity are hereby validated.
With respect to actions taken before the effective date of
this Act in relation to matters arising under the provisions
reenacted by this Act, a person is rebuttably presumed to have
acted in reasonable reliance on or pursuant to those
provisions, as they had been amended at the relevant time.
Section 99. Effective date. This Act takes effect upon
becoming law.".