Bill Status of SB 850   100th General Assembly

Short Description:  CIGARETTE TX-DIGITAL STAMPS

Senate Sponsors
Sen. Toi W. Hutchinson, Laura M. Murphy, Napoleon Harris, III and Heather A. Steans

Last Action  View All Actions

DateChamber Action
  1/9/2019SenateSession Sine Die

Statutes Amended In Order of Appearance
35 ILCS 130/3-3 new

Synopsis As Introduced
Amends the Cigarette Tax Act. Requires the Department of Revenue to issue a request for proposal to acquire and use digital tax stamps. Provides that, upon implementation of the digital stamps, a stamp is considered affixed if 90% or more of the stamp is affixed to the individual package. Contains provisions concerning reimbursement of licensed distributors for costs associated with the initial purchase of a tax stamping machine, and provides a tax collection discount for licensed distributors.

 Fiscal Note (Dept. of Revenue)
 The fiscal impact for SB 850 is as follows: (1) Cost of the 5.5% distributor reimbursement for new stamping machines (A) Total number of licensed distributors in IL = 96; (B) Estimated cost of a digital stamping machine = $125,000 to $150,000; (C) Statewide cost if each distributor purchased one new digital stamping machine = $12 million to $14.4 million; (D) Portion of Statewide costs eligible for reimbursement by the Department of Revenue = $660,000 to $792,000; (E) Department of Revenue reimbursement cost factoring the Statewide cap on reimbursement = $60,000. (2) Cost of the 0.5% distributor discount for technology and equipment = Without a Statewide or per distributor cap on the total amount of reimbursement possible there is no way to estimate the total cost of the discount the State may have to bare. (3) Additional revenue due to the 90% requirement for an affixed stamp - This change has no direct impact on the revenue generated by the cigarette tax. (4) Additional revenue due to the implementation of a digital tax stamp - Digital tax stamps are unlikely to produce additional cigarette tax revenue.

Actions 
DateChamber Action
  2/7/2017SenateFiled with Secretary by Sen. Toi W. Hutchinson
  2/7/2017SenateFirst Reading
  2/7/2017SenateReferred to Assignments
  2/8/2017SenateAssigned to Revenue
  2/22/2017SenatePostponed - Revenue
  3/1/2017SenatePostponed - Revenue
  3/9/2017SenatePostponed - Revenue
  3/14/2017SenateFiscal Note Requested by Sen. Pamela J. Althoff
  3/16/2017SenatePostponed - Revenue
  3/16/2017SenateFiscal Note Filed
  3/17/2017SenateRule 2-10 Committee Deadline Established As April 7, 2017
  3/29/2017SenateAdded as Co-Sponsor Sen. Laura M. Murphy
  4/6/2017SenatePostponed - Revenue
  4/6/2017SenateAdded as Co-Sponsor Sen. Napoleon Harris, III
  4/7/2017SenateRule 2-10 Committee Deadline Established As May 5, 2017
  4/10/2017SenateAdded as Co-Sponsor Sen. Heather A. Steans
  5/4/2017SenatePostponed - Revenue
  5/5/2017SenateRule 3-9(a) / Re-referred to Assignments
  1/9/2019SenateSession Sine Die

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