Section 440.90  Tax Stamps − Purchase of:  Cost:  Discount

a)         Sales of stamps shall be made by the Department, or any person authorized by the Department, to licensed distributors in proper denominations, subject to discounts as explained in subsection (b).  The discount shall be allowed at the time of purchase of the stamps, when purchase is required by the Act.

b)         The discount allowable to distributors at the time of purchasing stamps during any year commencing July 1 and ending the following June 30 shall be equal to 1.75% of the amount of the tax payable under the Cigarette Tax Act up to and including the first $3,000,000 paid by the distributor to the Department during any such year and 1.5% of the amount of any additional tax paid by the distributor to the Department during any such year. (Section 2 of the Act)

c)         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.

d)         All payment for revenue tax stamps must be made by means of electronic funds transfer.  (Section 3 of the Act)

e)         The Department may refuse to sell cigarette tax stamps to any person who does not comply with the provisions of the Cigarette Tax Act.  (Section 3 of the Act)

(Source:  Amended at 42 Ill. Reg. 23174, effective November 29, 2018)