Bill Text: IL SB0109 | 2011-2012 | 97th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Property Tax Code. Provides that the general homestead exemption and exemptions granted to disabled and returning veterans shall be granted on a pro-rata basis if the property is first occupied as a residence after January 1 of any assessment year by a person who is eligible for the exemption. Provides that cooperatives and life care facilities must credit the savings resulting from those exemptions only to the apportioned tax liability of the owner or resident who qualified for the exemption, and provides that any person who willfully refuses to so credit the savings shall be guilty of a Class B misdemeanor. Provides that the general homestead exemption and exemptions granted to disabled and returning veterans shall continue even if the qualifying taxpayer becomes a resident of a facility licensed under the Nursing Home Care Act or the MR/DD Community Care Act so long as (i) the residence continues to be occupied by the qualifying person's spouse or (ii) the residence remains unoccupied but is still owned by the person qualified for the exemption. Effective immediately.

Sponsorship: Partisan Bill (Democrat 4)

Status: (Passed) 2011-08-26 - Public Act . . . . . . . . . 97-0587 [SB0109 Detail]

Download: Illinois-2011-SB0109-Amended.html

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Rep. Frank J. Mautino

Filed: 5/26/2011

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AMENDMENT TO SENATE BILL 109
AMENDMENT NO. ______. Amend Senate Bill 109 by replacing
everything after the enacting clause with the following:
"Section 5. The Cigarette Tax Act is amended by changing
Sections 1, 2, 4d, 7, 8, 9, 10, and 23 and by adding Sections
4f, 9f, and 11b as follows:
(35 ILCS 130/1) (from Ch. 120, par. 453.1)
Sec. 1. For the purposes of this Act:
"Brand Style" means a variety of cigarettes distinguished
by the tobacco used, tar and nicotine content, flavoring used,
size of the cigarette, filtration on the cigarette or
packaging.
"Cigarette", means any roll for smoking made wholly or in
part of tobacco irrespective of size or shape and whether or
not such tobacco is flavored, adulterated or mixed with any
other ingredient, and the wrapper or cover of which is made of

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paper or any other substance or material except tobacco.
"Contraband cigarettes" means:
(a) cigarettes that do not bear a required tax stamp
under this Act;
(b) cigarettes for which any required federal taxes
have not been paid;
(c) cigarettes that bear a counterfeit tax stamp;
(d) cigarettes that are manufactured, fabricated,
assembled, processed, packaged, or labeled by any person
other than (i) the owner of the trademark rights in the
cigarette brand or (ii) a person that is directly or
indirectly authorized by such owner;
(e) cigarettes imported into the United States, or
otherwise distributed, in violation of the federal
Imported Cigarette Compliance Act of 2000 (Title IV of
Public Law 106-476);
(f) cigarettes that have false manufacturing labels;
(g) cigarettes identified in Section 3-10(a)(1) of
this Act; or
(h) cigarettes that are improperly tax stamped,
including cigarettes that bear a tax stamp of another state
or taxing jurisdiction.
"Person" means any natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, however formed, limited liability
company, or a receiver, executor, administrator, trustee,

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guardian or other representative appointed by order of any
court.
"Prior Continuous Compliance Taxpayer" means any person
who is licensed under this Act and who, having been a licensee
for a continuous period of 5 years, is determined by the
Department not to have been either delinquent or deficient in
the payment of tax liability during that period or otherwise in
violation of this Act. Also, any taxpayer who has, as verified
by the Department, continuously complied with the condition of
his bond or other security under provisions of this Act for a
period of 5 consecutive years shall be considered to be a
"Prior continuous compliance taxpayer". In calculating the
consecutive period of time described herein for qualification
as a "prior continuous compliance taxpayer", a consecutive
period of time of qualifying compliance immediately prior to
the effective date of this amendatory Act of 1987 shall be
credited to any licensee who became licensed on or before the
effective date of this amendatory Act of 1987.
"Department" means the Department of Revenue.
"Sale" means any transfer, exchange or barter in any manner
or by any means whatsoever for a consideration, and includes
and means all sales made by any person.
"Original Package" means the individual packet, box or
other container whatsoever used to contain and to convey
cigarettes to the consumer.
"Distributor" means any and each of the following:

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(1) Any person engaged in the business of selling
cigarettes in this State who brings or causes to be brought
into this State from without this State any original packages
of cigarettes, on which original packages there is no
authorized evidence underneath a sealed transparent wrapper
showing that the tax liability imposed by this Act has been
paid or assumed by the out-of-State seller of such cigarettes,
for sale or other disposition in the course of such business.
(2) Any person who makes, manufactures or fabricates
cigarettes in this State for sale in this State, except a
person who makes, manufactures or fabricates cigarettes as a
part of a correctional industries program for sale to residents
incarcerated in penal institutions or resident patients of a
State-operated mental health facility.
(3) Any person who makes, manufactures or fabricates
cigarettes outside this State, which cigarettes are placed in
original packages contained in sealed transparent wrappers,
for delivery or shipment into this State, and who elects to
qualify and is accepted by the Department as a distributor
under Section 4b of this Act.
"Place of business" shall mean and include any place where
cigarettes are sold or where cigarettes are manufactured,
stored or kept for the purpose of sale or consumption,
including any vessel, vehicle, airplane, train or vending
machine.
"Manufacturer representative" means a director, officer,

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or employee of a manufacturer who has obtained authority from
the Department under Section 4f to maintain representatives in
Illinois that provide or sell original packages of cigarettes
made, manufactured, or fabricated by the manufacturer to
retailers in compliance with Section 4f of this Act to promote
cigarettes made, manufactured, or fabricated by the
manufacturer.
"Business" means any trade, occupation, activity or
enterprise engaged in for the purpose of selling cigarettes in
this State.
"Retailer" means any person who engages in the making of
transfers of the ownership of, or title to, cigarettes to a
purchaser for use or consumption and not for resale in any
form, for a valuable consideration. "Retailer" does not include
a person:
(1) who transfers to residents incarcerated in penal
institutions or resident patients of a State-operated
mental health facility ownership of cigarettes made,
manufactured, or fabricated as part of a correctional
industries program; or
(2) who transfers cigarettes to a not-for-profit
research institution that conducts tests concerning the
health effects of tobacco products and who does not offer
the cigarettes for resale.
"Retailer" shall be construed to include any person who
engages in the making of transfers of the ownership of, or

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title to, cigarettes to a purchaser, for use or consumption by
any other person to whom such purchaser may transfer the
cigarettes without a valuable consideration, except a person
who transfers to residents incarcerated in penal institutions
or resident patients of a State-operated mental health facility
ownership of cigarettes made, manufactured or fabricated as
part of a correctional industries program.
"Secondary distributor" means any person engaged in the
business of selling cigarettes who purchases stamped original
packages of cigarettes from a licensed distributor under this
Act or the Cigarette Use Tax Act, sells 75% or more of those
cigarettes to retailers for resale, and maintains an
established business where a substantial stock of cigarettes is
available to retailers for resale.
"Stamp" or "stamps" mean the indicia required to be affixed
on a pack of cigarettes that evidence payment of the tax on
cigarettes under Section 2 of this Act.
"Related party" means any person that is associated with
any other person because he or she:
(a) is an officer or director of a business; or
(b) is legally recognized as a partner in business.
(Source: P.A. 95-462, eff. 8-27-07; 95-1053, eff. 1-1-10;
96-782, eff. 1-1-10; 96-1027, eff. 7-12-10.)
(35 ILCS 130/2) (from Ch. 120, par. 453.2)
Sec. 2. Tax imposed; rate; collection, payment, and

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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
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

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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
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. 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 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

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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
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

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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, 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
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

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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
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

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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.
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

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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, manufacturer representatives, 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
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

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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.
(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 130/4d)
Sec. 4d. Sales of cigarettes to and by retailers. In-state
makers, manufacturers, and fabricators licensed as
distributors under Section 4 of this Act and out-of-state
makers, manufacturers, and fabricators holding permits under
Section 4b of this Act may not sell original packages of
cigarettes to retailers. A retailer may sell only original
packages of cigarettes obtained from manufacturer
representatives, licensed secondary distributors, or licensed
distributors other than in-state makers, manufacturers, or

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fabricators licensed as distributors under Section 4 of this
Act and out-of-state makers, manufacturers, or fabricators
holding permits under Section 4b of this Act.
(Source: P.A. 95-1053, eff. 1-1-10; 96-782, eff. 1-1-10;
96-1027, eff. 7-12-10.)
(35 ILCS 130/4f new)
Sec. 4f. Manufacturer representatives.
(a) No manufacturer may market cigarettes produced by the
manufacturer directly to retailers in this State without first
having obtained authorization from the Department. Application
for authority to maintain representatives in this State to
market in this State cigarettes produced by the manufacturer
shall be made to the Department on a form furnished and
prescribed by the Department. Each applicant under this Section
shall furnish the following information to the Department on a
form signed and verified by the applicant under penalty of
perjury:
(1) the name and address of the applicant;
(2) the address of every location from which the
applicant proposes to engage in business in this State;
(3) the number of manufacturer representatives the
applicant requests to maintain in this State; and
(4) any other additional information as the Department
may reasonably require.
The following manufacturers are ineligible to receive

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authorization to maintain manufacturer representatives in this
State:
(1) a manufacturer who owes, at the time of
application, any delinquent cigarette taxes that have been
determined by law to be due and unpaid, unless the
applicant has entered into an agreement approved by the
Department to pay the amount due;
(2) a manufacturer who has had a license revoked within
the past 2 years for misconduct relating to stolen or
contraband cigarettes or has been convicted of a state or
federal crime, punishable by imprisonment of one year or
more, relating to stolen or contraband cigarettes;
(3) a manufacturer who has been found, after notice and
a hearing, to have imported or caused to be imported into
the United States for sale or distribution any cigarette in
violation of 19 U.S.C. 1681a;
(4) a manufacturer who has been found, after notice and
a hearing, to have imported or caused to be imported into
the United States for sale or distribution or manufactured
for sale or distribution in the United States any cigarette
that does not fully comply with the Federal Cigarette
Labeling and Advertising Act (15 U.S.C. 1331, et seq.);
(5) a manufacturer who has been found, after notice and
a hearing, to have made a material false statement in an
application or has failed to produce records required to be
maintained by this Act;

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(6) a manufacturer who has been found, after notice and
hearing, to have violated any Section of this Act; or
(7) a manufacturer licensed as a distributor under
Section 4 of this Act or holding a permit under Section 4b
of this Act.
The Department, upon receipt of an application from a
manufacturer who is eligible to maintain manufacturer
representatives in this State, shall notify the applicant in
writing, not more than 60 days after an application has been
received, that the applicant may or may not maintain the
requested number of manufacturer representatives in this
State. A copy of the notice authorizing a manufacturer to
maintain manufacturer representatives in this State shall be
available for inspection by the Department at each place of
business identified in the application and in the motor vehicle
operated by marketing representatives in the course of
performing his or her duties in this State on behalf of the
manufacturer.
A manufacturer representative shall notify the Department
of any change in the information contained on the application
form and shall do so within 30 days after any such change.
(b) Only directors, officers, and employees of the
manufacturer may act as manufacturer representatives in this
State. The manufacturer shall provide to the Department the
names and addresses of the manufacturer representatives
operating in this State and the make, model, and license plate

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number of each motor vehicle operated by a manufacturer
representative in the course of performing his or her duties in
this State on behalf of the manufacturer. The following
individuals may not act as manufacturer representatives:
(1) an individual who owes any delinquent cigarette
taxes that have been determined by law to be due and
unpaid, unless the individual has entered into an agreement
approved by the Department to pay the amount due;
(2) an individual who has had a license revoked within
the past 2 years for misconduct relating to stolen or
contraband cigarettes or has been convicted of a state or
federal crime, punishable by imprisonment of one year or
more, relating to stolen or contraband cigarettes;
(3) an individual who has been found, after notice and
a hearing, to have made a material false statement in an
application or has failed to produce records required to be
maintained by this Act; or
(4) an individual who has been found, after notice and
hearing, to have violated any Section of this Act.
(c) Manufacturer representatives may sell to retailers in
this State only original packages of cigarettes made,
manufactured, or fabricated by the manufacturer and purchased
or obtained from a distributor licensed under this Act, or the
Cigarette Tax Use Act, and on which tax stamps have been
affixed. Manufacturer representatives may sell up to 600
stamped original packages of cigarettes in a calendar year, for

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the purpose of promoting the manufacturer's brands of
cigarettes. A manufacturer representative may not possess more
than 500 stamped original packages of cigarettes made,
manufactured, or fabricated by the manufacturer and purchased
or obtained from a distributor licensed under this Act or the
Cigarette Use Tax Act. Any original packages of cigarettes in
the possession of a manufacturer representative that (i) are
not made, manufactured, or fabricated by the manufacturer and
purchased or obtained from a distributor licensed under this
Act or the Cigarette Use Tax Act, other than cigarettes for
personal use and consumption, (ii) exceed the maximum quantity
of 500 original packages of cigarettes, excluding packages of
cigarettes for personal use and consumption; (iii) violate
Section 3-10 of this Act; or (iv) do not have the proper tax
stamps affixed, are contraband and subject to seizure and
forfeiture.
Manufacturer representatives may sell stamped original
packages of cigarettes to retailers on behalf of licensed
distributors. The manufacturer representative shall provide
the distributor with a signed receipt for the cigarettes
obtained from the distributor. The distributor shall invoice
the retailer, and the retailer shall pay the distributor for
all cigarettes provided to retailers by manufacturer
representatives on behalf of a distributor.
Manufacturer representatives may sell stamped original
packages of cigarettes to retailers that are purchased from

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licensed distributors. Distributors shall provide manufacturer
representatives with invoices for stamped original packages of
cigarettes sold to manufacturer representatives. Manufacturer
representatives shall invoice retailers, and the retailers
shall pay the manufacturer representatives for all original
packages of cigarettes sold to retailers.
(d) Any person aggrieved by any decision of the Department
under this Section may, within 20 days after notice of the
decision, protest and request a hearing. Upon receiving a
request for a hearing, the Department shall give notice to the
person requesting the hearing of the time and place fixed for
the hearing and shall hold a hearing in conformity with the
provisions of this Act and then issue its final administrative
decision in the matter to that person. In the absence of a
protest and request for a hearing within 20 days, the
Department's decision shall become final without any further
determination being made or notice given.
(35 ILCS 130/7) (from Ch. 120, par. 453.7)
Sec. 7. The Department or any officer or employee of the
Department designated, in writing, by the Director thereof,
shall at its or his or her own instance, or on the written
request of any distributor, secondary distributor,
manufacturer with authority to maintain manufacturer
representatives, or other interested party to the proceeding,
issue subpoenas requiring the attendance of and the giving of

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testimony by witnesses, and subpoenas duces tecum requiring the
production of books, papers, records or memoranda. All
subpoenas and subpoenas duces tecum issued under the terms of
this Act may be served by any person of full age. The fees of
witnesses for attendance and travel shall be the same as the
fees of witnesses before the circuit court of this State; such
fees to be paid when the witness is excused from further
attendance. When the witness is subpoenaed at the instance of
the Department or any officer or employee thereof, such fees
shall be paid in the same manner as other expenses of the
Department, and when the witness is subpoenaed at the instance
of any other party to any such proceeding, the cost of service
of the subpoena or subpoena duces tecum and the fee of the
witness shall be borne by the party at whose instance the
witness is summoned. In such case the Department, in its
discretion, may require a deposit to cover the cost of such
service and witness fees. A subpoena or subpoena duces tecum so
issued shall be served in the same manner as a subpoena or
subpoena duces tecum issued out of a court.
Any circuit court of this State, upon the application of
the Department or any officer or employee thereof, or upon the
application of any other party to the proceeding, may, in its
discretion, compel the attendance of witnesses, the production
of books, papers, records or memoranda and the giving of
testimony before the Department or any officer or employee
thereof conducting an investigation or holding a hearing

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authorized by this Act, by an attachment for contempt, or
otherwise, in the same manner as production of evidence may be
compelled before the court.
The Department or any officer or employee thereof, or any
other party in an investigation or hearing before the
Department, may cause the depositions of witnesses within the
State to be taken in the manner prescribed by law for like
depositions, or depositions for discovery in civil actions in
courts of this State, and to that end compel the attendance of
witnesses and the production of books, papers, records or
memoranda, in the same manner hereinbefore provided.
(Source: P.A. 96-1027, eff. 7-12-10.)
(35 ILCS 130/8) (from Ch. 120, par. 453.8)
Sec. 8. The Department may make, promulgate and enforce
such reasonable rules and regulations relating to the
administration and enforcement of this Act as may be deemed
expedient.
Whenever notice is required by this Act, such notice may be
given by United States certified or registered mail, addressed
to the person concerned at his last known address, and proof of
such mailing shall be sufficient for the purposes of this Act.
Notice of any hearing provided for by this Act shall be so
given not less than 7 days prior to the day fixed for the
hearing.
Hearings provided for in this Act shall be held:

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(1) In Cook County, if the taxpayer's or licensee's
principal place of business is in that county;
(2) At the Department's office nearest the taxpayer's
or licensee's principal place of business, if the
taxpayer's or licensee's principal place of business is in
Illinois but outside Cook County;
(3) In Sangamon County, if the taxpayer's or licensee's
principal place of business is outside Illinois.
The Circuit Court of the County wherein the hearing is held
has power to review all final administrative decisions of the
Department in administering this Act. The provisions of the
Administrative Review Law, and all amendments and
modifications thereof, and the rules adopted pursuant thereto,
shall apply to and govern all proceedings for the judicial
review of final administrative decisions of the Department
under this Act. The term "administrative decision" is defined
as in Section 3-101 of the Code of Civil Procedure.
Service upon the Director of Revenue or Assistant Director
of Revenue of summons issued in any action to review a final
administrative decision shall be service upon the Department.
The Department shall certify the record of its proceedings if
the distributor, or secondary distributor, or manufacturer
with authority to maintain manufacturer representatives pays
to it the sum of 75� per page of testimony taken before the
Department and 25� per page of all other matters contained in
such record, except that these charges may be waived where the

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Department is satisfied that the aggrieved party is a poor
person who cannot afford to pay such charges. Before the
delivery of such record to the person applying for it, payment
of these charges must be made, and if the record is not paid
for within 30 days after notice that such record is available,
the complaint may be dismissed by the court upon motion of the
Department.
No stay order shall be entered by the Circuit Court unless
the distributor, or secondary distributor, or manufacturer
with authority to maintain manufacturer representatives files
with the court a bond in an amount fixed and approved by the
court, to indemnify the State against all loss and injury which
may be sustained by it on account of the review proceedings and
to secure all costs which may be occasioned by such
proceedings.
Whenever any proceeding provided by this Act is begun
before the Department, either by the Department or by a person
subject to this Act, and such person thereafter dies or becomes
a person under legal disability before such proceeding is
concluded, the legal representative of the deceased person or
of the person under legal disability shall notify the
Department of such death or legal disability. Such legal
representative, as such, shall then be substituted by the
Department for such person. If the legal representative fails
to notify the Department of his or her appointment as such
legal representative, the Department may, upon its own motion,

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substitute such legal representative in the proceeding pending
before the Department for the person who died or became a
person under legal disability.
(Source: P.A. 96-1027, eff. 7-12-10.)
(35 ILCS 130/9) (from Ch. 120, par. 453.9)
Sec. 9. Returns; remittance. Every distributor who is
required to procure a license under this Act, but who is not a
manufacturer of cigarettes in original packages which are
contained in a sealed transparent wrapper, shall, on or before
the 15th day of each calendar month, file a return with the
Department, showing the quantity of cigarettes manufactured
during the preceding calendar month, the quantity of cigarettes
brought into this State or caused to be brought into this State
from outside this State during the preceding calendar month
without authorized evidence on the original packages of such
cigarettes underneath the sealed transparent wrapper thereof
that the tax liability imposed by this Act has been assumed by
the out-of-State seller of such cigarettes, the quantity of
cigarettes purchased tax-paid during the preceding calendar
month either within or outside this State, the quantity of
cigarettes sold by manufacturer representatives on behalf of
the distributor, the quantity of cigarettes sold to
manufacturer representatives, and the quantity of cigarettes
sold or otherwise disposed of during the preceding calendar
month. Such return shall be filed upon forms furnished and

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prescribed by the Department and shall contain such other
information as the Department may reasonably require. The
Department may promulgate rules to require that the
distributor's return be accompanied by appropriate
computer-generated magnetic media supporting schedule data in
the format required by the Department, unless, as provided by
rule, the Department grants an exception upon petition of a
distributor.
Illinois manufacturers of cigarettes in original packages
which are contained inside a sealed transparent wrapper shall
file a return by the 5th day of each month covering the
preceding calendar month. Each such return shall be accompanied
by the appropriate remittance for tax as provided in the last
paragraph of Section 3 of this Act. Each such return shall show
the quantity of such cigarettes manufactured during the period
covered by the return, the quantity of cigarettes sold or
otherwise disposed of during the period covered by the return
and such other information as the Department may lawfully
require. Such returns shall be filed on forms prescribed and
furnished by the Department. Each such return shall be
accompanied by a copy of each invoice rendered by such
manufacturer to any purchaser to whom such manufacturer
delivered cigarettes (or caused cigarettes to be delivered)
during the period covered by the return. The Department may
promulgate rules to require that the manufacturer's return be
accompanied by appropriate computer-generated magnetic media

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supporting schedule data in the format required by the
Department, unless, as provided by rule, the Department grants
an exception upon petition of a manufacturer.
(Source: P.A. 92-322, eff. 1-1-02.)
(35 ILCS 130/9f new)
Sec. 9f. Manufacturer representatives; reports. Every
manufacturer with authority to maintain manufacturer
representatives as defined by Section 4f of this Act shall, on
or before the 15th day of each calendar month, file a report
with the Department, showing the quantity of cigarettes
purchased from licensed distributors during the preceding
calendar month, either within or outside this State, and the
quantity of cigarettes sold to retailers or otherwise disposed
of during the preceding calendar month. Such reports shall be
filed in the form prescribed by the Department and shall
contain such other information as the Department may reasonably
require. The report shall be filed electronically and be
accompanied by appropriate computer generated magnetic media
supporting schedule data in the format required by the
Department, unless, as provided by rule, the Department grants
an exception upon petition of a manufacturer with authority to
maintain manufacturer representatives in this State.
A certification by the Director of the Department that a
report has not been filed, or that information has not been
supplied pursuant to the provisions of this Act, shall be prima

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facie evidence thereof.
(35 ILCS 130/10) (from Ch. 120, par. 453.10)
Sec. 10. The Department, or any officer or employee
designated in writing by the Director thereof, for the purpose
of administering and enforcing the provisions of this Act, may
hold investigations and hearings concerning any matters
covered by this Act, and may examine books, papers, records or
memoranda bearing upon the sale or other disposition of
cigarettes by a distributor, or secondary distributor,
manufacturer with authority to maintain manufacturer
representatives under Section 4f of this Act, or manufacturer
representative, and may issue subpoenas requiring the
attendance of a distributor, or secondary distributor,
manufacturer with authority to maintain manufacturer
representatives under Section 4f of this Act, or manufacturer
representative, or any officer or employee of a distributor, or
secondary distributor, manufacturer with authority to maintain
manufacturer representatives under Section 4f of this Act, or
any person having knowledge of the facts, and may take
testimony and require proof, and may issue subpoenas duces
tecum to compel the production of relevant books, papers,
records and memoranda, for the information of the Department.
In the conduct of any investigation or hearing provided for
by this Act, neither the Department, nor any officer or
employee thereof, shall be bound by the technical rules of

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evidence, and no informality in the proceedings nor in the
manner of taking testimony shall invalidate any rule, order,
decision or regulation made, approved or confirmed by the
Department.
The Director of Revenue, or any duly authorized officer or
employee of the Department, shall have the power to administer
oaths to such persons required by this Act to give testimony
before the said Department.
The books, papers, records and memoranda of the Department,
or parts thereof, may be proved in any hearing, investigation
or legal proceeding by a reproduced copy thereof under the
certificate of the Director of Revenue. Such reproduced copy
shall, without further proof, be admitted into evidence before
the Department or in any legal proceeding.
(Source: P.A. 96-1027, eff. 7-12-10.)
(35 ILCS 130/11b new)
Sec. 11b. Manufacturer representatives; records. Every
manufacturer with authority to maintain manufacturer
representatives under Section 4f of this Act shall keep within
Illinois, at his business address identified under section 4f
of this Act, complete and accurate records of cigarettes
purchased, sold, or otherwise disposed of, and shall preserve
and keep within Illinois at his business address all invoices,
sales records, copies of bills of sale, inventory at the close
of each period for which a report is required of all cigarettes

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on hand, and other pertinent papers and documents relating to
the purchase, sale, or disposition of cigarettes. All books and
records and other papers and documents that are required by
this Act to be kept shall be kept in the English language, and
shall, at all times during the usual business hours of the day,
be subject to inspection by the Department or its duly
authorized agents and employees. The Department may adopt rules
that establish requirements, including record forms and
formats, for records required to be kept and maintained by
manufacturers with authority to maintain manufacturer
representatives under Section 4f of this Act and their
manufacturer representatives. For purposes of this Section,
"records" means all data maintained by the manufacturers with
authority to maintain manufacturer representatives under
Section 4f of this Act and their manufacturer representatives,
including data on paper, microfilm, microfiche or any type of
machine sensible data compilation. Those books, records,
papers, and documents shall be preserved for a period of at
least 3 years after the date of the documents, or the date of
the entries appearing in the records, unless the Department, in
writing, authorizes their destruction or disposal at an earlier
date. At all times during the usual business hours of the day
any duly authorized agent or employee of the Department may
enter any place of business of the manufacturers with authority
to maintain manufacturer representatives under Section 4f of
this Act and their manufacturer representatives, or inspect any

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motor vehicle used by a manufacturer representative in the
course of business, without a search warrant and may inspect
the premises, motor vehicle, and any packages of cigarettes
therein contained to determine whether any of the provisions of
this Act are being violated. If such agent or employee is
denied free access or is hindered or interfered with in making
such examination as herein provided, the ability to maintain
marketing representatives in Illinois may be withdrawn by the
Department.
(35 ILCS 130/23) (from Ch. 120, par. 453.23)
Sec. 23. Every distributor, secondary distributor,
manufacturer with authority to maintain manufacturer
representatives under Section 4f of this Act and their
manufacturer representatives, or other person who shall
knowingly and wilfully sell or offer for sale any original
package, as defined in this Act, having affixed thereto any
fraudulent, spurious, imitation or counterfeit stamp, or stamp
which has been previously affixed, or affixes a stamp which has
previously been affixed to an original package, or who shall
knowingly and wilfully sell or offer for sale any original
package, as defined in this Act, having imprinted thereon
underneath the sealed transparent wrapper thereof any
fraudulent, spurious, imitation or counterfeit tax imprint,
shall be deemed guilty of a Class 2 felony.
(Source: P.A. 96-1027, eff. 7-12-10.)

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Section 99. Effective date. This Act takes effect upon
becoming law.".