Bill Text: IL SB1925 | 2011-2012 | 97th General Assembly | Introduced
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.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2013-01-08 - Session Sine Die [SB1925 Detail]
Download: Illinois-2011-SB1925-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Tobacco Products Tax Act of 1995 is amended | ||||||||||||||||||||||||||||
5 | by changing Sections 10-5, 10-10, and 10-30 as follows:
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6 | (35 ILCS 143/10-5)
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7 | Sec. 10-5. Definitions. For purposes of this Act:
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8 | "Business" means any trade, occupation, activity, or | ||||||||||||||||||||||||||||
9 | enterprise engaged
in, at any location whatsoever, for the | ||||||||||||||||||||||||||||
10 | purpose of selling tobacco products.
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11 | "Cigarette" has the meaning ascribed to the term in Section | ||||||||||||||||||||||||||||
12 | 1 of the
Cigarette Tax Act.
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13 | "Correctional Industries program" means a program run by a | ||||||||||||||||||||||||||||
14 | State penal
institution in which residents of the penal | ||||||||||||||||||||||||||||
15 | institution produce tobacco
products for sale to persons | ||||||||||||||||||||||||||||
16 | incarcerated in penal institutions or resident
patients of a | ||||||||||||||||||||||||||||
17 | State operated mental health facility.
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18 | "Department" means the Illinois Department of Revenue.
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19 | "Distributor" means any of the following:
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20 | (1) Any manufacturer or wholesaler in this State | ||||||||||||||||||||||||||||
21 | engaged in the business
of selling tobacco products who | ||||||||||||||||||||||||||||
22 | sells, exchanges, or distributes tobacco
products to | ||||||||||||||||||||||||||||
23 | retailers or consumers in this State.
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1 | (2) Any manufacturer or wholesaler engaged
in
the | ||||||
2 | business of selling tobacco products from without this | ||||||
3 | State who sells,
exchanges, distributes,
ships, or | ||||||
4 | transports tobacco products to retailers or consumers | ||||||
5 | located in
this State,
so long as that manufacturer or | ||||||
6 | wholesaler has or maintains within this State,
directly or | ||||||
7 | by subsidiary, an office, sales house, or other place of | ||||||
8 | business,
or any agent or other representative operating | ||||||
9 | within this State under the
authority of the person or | ||||||
10 | subsidiary, irrespective of whether the place of
business | ||||||
11 | or agent or other representative is located here | ||||||
12 | permanently or
temporarily.
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13 | (3) Any retailer who receives tobacco products on which | ||||||
14 | the tax has not
been or
will not be paid by another | ||||||
15 | distributor.
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16 | "Distributor" does not include any person, wherever | ||||||
17 | resident or located, who
makes, manufactures, or fabricates | ||||||
18 | tobacco products as part of a Correctional
Industries program | ||||||
19 | for sale to residents incarcerated in penal institutions or
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20 | resident patients of a State operated mental health facility. | ||||||
21 | "Little cigar" means any roll for smoking, made wholly or | ||||||
22 | in part of tobacco, if such product uses an integrated | ||||||
23 | cellulose acetate or other similar filter and is wrapped in any | ||||||
24 | substance containing tobacco, other than natural leaf tobacco.
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25 | "Manufacturer" means any person, wherever resident or | ||||||
26 | located, who
manufactures and sells tobacco products, except a |
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1 | person who makes,
manufactures, or fabricates tobacco products | ||||||
2 | as a part of a Correctional
Industries program for sale to | ||||||
3 | persons incarcerated in penal institutions or
resident | ||||||
4 | patients of a State operated mental health facility.
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5 | "Person" means any natural individual, firm, partnership, | ||||||
6 | association, joint
stock company, joint venture, limited | ||||||
7 | liability company, or public or private
corporation, however | ||||||
8 | formed, or a receiver, executor, administrator, trustee,
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9 | conservator, or other representative appointed by order of any | ||||||
10 | court.
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11 | "Place of business" means and includes any place where | ||||||
12 | tobacco products
are sold or where tobacco products are | ||||||
13 | manufactured, stored, or kept for
the purpose of sale or | ||||||
14 | consumption, including any vessel, vehicle, airplane,
train, | ||||||
15 | or vending machine.
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16 | "Retailer" means any person in this State engaged in the | ||||||
17 | business of selling
tobacco products to consumers in this | ||||||
18 | State, regardless of quantity or number
of sales.
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19 | "Sale" means any transfer, exchange, or barter in any | ||||||
20 | manner or by any means
whatsoever for a consideration and | ||||||
21 | includes all sales made by
persons.
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22 | "Tobacco products" means any cigars , including little | ||||||
23 | cigars ; cheroots; stogies; periques; granulated,
plug cut, | ||||||
24 | crimp cut, ready rubbed, and other smoking tobacco; snuff or | ||||||
25 | snuff
flour; cavendish; plug and twist tobacco; fine-cut and | ||||||
26 | other chewing tobaccos;
shorts; refuse scraps, clippings, |
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1 | cuttings, and sweeping of tobacco; and
other kinds and forms of | ||||||
2 | tobacco, prepared in such manner as to be suitable for
chewing | ||||||
3 | or smoking in a pipe or otherwise, or both for chewing and | ||||||
4 | smoking; but
does not include cigarettes or tobacco purchased | ||||||
5 | for the manufacture of
cigarettes by cigarette distributors and | ||||||
6 | manufacturers defined in the
Cigarette Tax Act and persons who | ||||||
7 | make, manufacture, or fabricate
cigarettes as a part of a | ||||||
8 | Correctional Industries program for sale to
residents | ||||||
9 | incarcerated in penal institutions or resident patients of a
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10 | State operated mental health facility.
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11 | "Wholesale price" means the established list price for | ||||||
12 | which a manufacturer
sells tobacco products to a distributor, | ||||||
13 | before the allowance of any discount,
trade allowance, rebate, | ||||||
14 | or other reduction.
In the absence of such an established list | ||||||
15 | price, the manufacturer's invoice
price at which the | ||||||
16 | manufacturer sells the tobacco product to unaffiliated
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17 | distributors, before any discounts, trade allowances, rebates, | ||||||
18 | or other
reductions, shall be presumed to be the wholesale | ||||||
19 | price.
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20 | "Wholesaler" means any person, wherever resident or | ||||||
21 | located, engaged in the
business of selling tobacco products to | ||||||
22 | others for the purpose of resale.
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23 | (Source: P.A. 92-231, eff. 8-2-01.)
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24 | (35 ILCS 143/10-10)
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25 | Sec. 10-10. Tax imposed. On the first day of the third |
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1 | month after the
month in which this Act becomes law, a tax is | ||||||
2 | imposed on any person engaged in
business as a distributor of | ||||||
3 | tobacco products . The tax on tobacco products, other than | ||||||
4 | little cigars , as defined in Section 10-5,
is at the rate of | ||||||
5 | 18% of the wholesale price of tobacco products sold or | ||||||
6 | otherwise
disposed of to retailers or consumers located in this | ||||||
7 | State. The tax on little cigars, as defined in Section 10-5, is | ||||||
8 | at a rate per little cigar that is equal to the total taxes | ||||||
9 | imposed per cigarette under Section 2 of the Cigarette Tax Act, | ||||||
10 | as such Section may be amended from time to time, or under any | ||||||
11 | successor provisions taxing cigarettes. The tax is in
addition | ||||||
12 | to all other
occupation or privilege taxes imposed by the State | ||||||
13 | of Illinois, by any
political subdivision thereof, or by any | ||||||
14 | municipal corporation. However, the
tax is not imposed upon any | ||||||
15 | activity in that business in interstate commerce or
otherwise, | ||||||
16 | to the extent to which that activity may not, under the | ||||||
17 | Constitution
and Statutes of the United States, be made the | ||||||
18 | subject of taxation by this
State. The tax is also not imposed | ||||||
19 | on sales made to the United States or any
entity thereof.
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20 | All moneys received by the Department under this Act shall | ||||||
21 | be paid into
the Long-Term Care Provider Fund of the State | ||||||
22 | Treasury.
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23 | (Source: P.A. 92-231, eff. 8-2-01.)
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24 | (35 ILCS 143/10-30)
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25 | Sec. 10-30. Returns. Every distributor shall, on or before |
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1 | the 15th day of
each month, file a return with the Department | ||||||
2 | covering the preceding calendar
month. The return shall | ||||||
3 | disclose the wholesale price for tobacco products and the | ||||||
4 | quantity of little cigars sold
or otherwise disposed of and | ||||||
5 | other information that the Department may
reasonably require. | ||||||
6 | The return shall be filed upon a form prescribed and
furnished | ||||||
7 | by the Department.
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8 | At the time when any return of any distributor is due to be | ||||||
9 | filed with
the Department, the distributor shall also remit to | ||||||
10 | the Department the
tax liability that the distributor has | ||||||
11 | incurred for transactions
occurring in the preceding calendar | ||||||
12 | month.
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13 | (Source: P.A. 89-21, eff. 6-6-95.)
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