Bill Text: IL SB1925 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Tobacco Products Tax Act of 1995. Defines "little cigar". Provides that little cigars shall be taxed at a rate per little cigar that is equal to the total taxes imposed per cigarette under the Cigarette Tax Act. Provides that a distributor shall disclose the quantity of little cigars sold or otherwise disposed of.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Failed) 2013-01-08 - Session Sine Die [SB1925 Detail]

Download: Illinois-2011-SB1925-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 SB1925 Introduced 2/10/2011, by Sen. Terry Link SYNOPSIS AS INTRODUCED:
35 ILCS 143/10-5
35 ILCS 143/10-10
35 ILCS 143/10-30
Amends the Tobacco Products Tax Act of 1995. Defines "little cigar". Provides that little cigars shall be taxed at a rate per cigar that is equal to the rate imposed per cigarette under the Cigarette Tax Act. Provides that a distributor shall disclose the quantity of little cigars sold or otherwise disposed of.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Tobacco Products Tax Act of 1995 is amended
by changing Sections 10-5, 10-10, and 10-30 as follows:
(35 ILCS 143/10-5)
Sec. 10-5. Definitions. For purposes of this Act:
"Business" means any trade, occupation, activity, or
enterprise engaged in, at any location whatsoever, for the
purpose of selling tobacco products.
"Cigarette" has the meaning ascribed to the term in Section
1 of the Cigarette Tax Act.
"Correctional Industries program" means a program run by a
State penal institution in which residents of the penal
institution produce tobacco products for sale to persons
incarcerated in penal institutions or resident patients of a
State operated mental health facility.
"Department" means the Illinois Department of Revenue.
"Distributor" means any of the following:
(1) Any manufacturer or wholesaler in this State
engaged in the business of selling tobacco products who
sells, exchanges, or distributes tobacco products to
retailers or consumers in this State.

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(2) Any manufacturer or wholesaler engaged in the
business of selling tobacco products from without this
State who sells, exchanges, distributes, ships, or
transports tobacco products to retailers or consumers
located in this State, so long as that manufacturer or
wholesaler has or maintains within this State, directly or
by subsidiary, an office, sales house, or other place of
business, or any agent or other representative operating
within this State under the authority of the person or
subsidiary, irrespective of whether the place of business
or agent or other representative is located here
permanently or temporarily.
(3) Any retailer who receives tobacco products on which
the tax has not been or will not be paid by another
distributor.
"Distributor" does not include any person, wherever
resident or located, who makes, manufactures, or fabricates
tobacco products as part of a Correctional Industries program
for sale to residents incarcerated in penal institutions or
resident patients of a State operated mental health facility.
"Little cigar" means any roll for smoking, made wholly or
in part of tobacco, if such product uses an integrated
cellulose acetate or other similar filter and is wrapped in any
substance containing tobacco, other than natural leaf tobacco.
"Manufacturer" means any person, wherever resident or
located, who manufactures and sells tobacco products, except a

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person who makes, manufactures, or fabricates tobacco products
as a part of a Correctional Industries program for sale to
persons incarcerated in penal institutions or resident
patients of a State operated mental health facility.
"Person" means any natural individual, firm, partnership,
association, joint stock company, joint venture, limited
liability company, or public or private corporation, however
formed, or a receiver, executor, administrator, trustee,
conservator, or other representative appointed by order of any
court.
"Place of business" means and includes any place where
tobacco products are sold or where tobacco products are
manufactured, stored, or kept for the purpose of sale or
consumption, including any vessel, vehicle, airplane, train,
or vending machine.
"Retailer" means any person in this State engaged in the
business of selling tobacco products to consumers in this
State, regardless of quantity or number of sales.
"Sale" means any transfer, exchange, or barter in any
manner or by any means whatsoever for a consideration and
includes all sales made by persons.
"Tobacco products" means any cigars, including little
cigars; cheroots; stogies; periques; granulated, plug cut,
crimp cut, ready rubbed, and other smoking tobacco; snuff or
snuff flour; cavendish; plug and twist tobacco; fine-cut and
other chewing tobaccos; shorts; refuse scraps, clippings,

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cuttings, and sweeping of tobacco; and other kinds and forms of
tobacco, prepared in such manner as to be suitable for chewing
or smoking in a pipe or otherwise, or both for chewing and
smoking; but does not include cigarettes or tobacco purchased
for the manufacture of cigarettes by cigarette distributors and
manufacturers defined in the Cigarette Tax Act and persons who
make, manufacture, or fabricate 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.
"Wholesale price" means the established list price for
which a manufacturer sells tobacco products to a distributor,
before the allowance of any discount, trade allowance, rebate,
or other reduction. In the absence of such an established list
price, the manufacturer's invoice price at which the
manufacturer sells the tobacco product to unaffiliated
distributors, before any discounts, trade allowances, rebates,
or other reductions, shall be presumed to be the wholesale
price.
"Wholesaler" means any person, wherever resident or
located, engaged in the business of selling tobacco products to
others for the purpose of resale.
(Source: P.A. 92-231, eff. 8-2-01.)
(35 ILCS 143/10-10)
Sec. 10-10. Tax imposed. On the first day of the third

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month after the month in which this Act becomes law, a tax is
imposed on any person engaged in business as a distributor of
tobacco products. The tax on tobacco products, other than
little cigars, as defined in Section 10-5, is at the rate of
18% of the wholesale price of tobacco products sold or
otherwise disposed of to retailers or consumers located in this
State. The tax on little cigars, as defined in Section 10-5, is
at a rate per little cigar that is equal to the total taxes
imposed per cigarette under Section 2 of the Cigarette Tax Act,
as such Section may be amended from time to time, or under any
successor provisions taxing cigarettes. The tax is in addition
to all other occupation or privilege taxes imposed by the State
of Illinois, by any political subdivision thereof, or by any
municipal corporation. However, the tax is not imposed upon any
activity in that business in interstate commerce or otherwise,
to the extent to which that activity may not, under the
Constitution and Statutes of the United States, be made the
subject of taxation by this State. The tax is also not imposed
on sales made to the United States or any entity thereof.
All moneys received by the Department under this Act shall
be paid into the Long-Term Care Provider Fund of the State
Treasury.
(Source: P.A. 92-231, eff. 8-2-01.)
(35 ILCS 143/10-30)
Sec. 10-30. Returns. Every distributor shall, on or before

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the 15th day of each month, file a return with the Department
covering the preceding calendar month. The return shall
disclose the wholesale price for tobacco products and the
quantity of little cigars sold or otherwise disposed of and
other information that the Department may reasonably require.
The return shall be filed upon a form prescribed and furnished
by the Department.
At the time when any return of any distributor is due to be
filed with the Department, the distributor shall also remit to
the Department the tax liability that the distributor has
incurred for transactions occurring in the preceding calendar
month.
(Source: P.A. 89-21, eff. 6-6-95.)