Sen. John J. Cullerton
Filed: 7/25/2007
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1 | AMENDMENT TO HOUSE BILL 556
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2 | AMENDMENT NO. ______. Amend House Bill 556 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The General Obligation Bond Act is amended by | ||||||
5 | changing Section 14 as follows:
| ||||||
6 | (30 ILCS 330/14) (from Ch. 127, par. 664)
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7 | Sec. 14. Repayment.
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8 | (a) To provide for the manner of repayment of Bonds, the | ||||||
9 | Governor shall
include an appropriation in each annual State | ||||||
10 | Budget of monies in such amount
as shall be necessary and | ||||||
11 | sufficient, for the period covered by such budget,
to pay the | ||||||
12 | interest, as it shall accrue, on all Bonds issued under this | ||||||
13 | Act,
to pay and discharge the principal of such Bonds as shall, | ||||||
14 | by their terms,
fall due during such period, and to pay a | ||||||
15 | premium, if any, on Bonds to be
redeemed prior to the maturity | ||||||
16 | date. Amounts included in such appropriations
for the payment |
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1 | of interest on variable rate bonds shall be the maximum amounts
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2 | of interest that may be payable for the period covered by the | ||||||
3 | budget, after
taking into account any credits permitted in the | ||||||
4 | related indenture or other
instrument against the amount of | ||||||
5 | such interest required to be appropriated for
such period. | ||||||
6 | Amounts included in such appropriations for the payment of
| ||||||
7 | interest shall include the amounts certified by the Director of | ||||||
8 | the
Governor's Office of Management and Budget under subsection | ||||||
9 | (b) of Section 9 of this Act.
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10 | (b) A separate fund in the State Treasury called the | ||||||
11 | "General Obligation
Bond Retirement and Interest Fund" is | ||||||
12 | hereby created.
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13 | (c) The General Assembly shall annually make | ||||||
14 | appropriations to pay the
principal of, interest on, and | ||||||
15 | premium, if any, on Bonds sold under this
Act from the General | ||||||
16 | Obligation Bond Retirement and Interest Fund.
Amounts included | ||||||
17 | in such appropriations for the payment of interest on
variable | ||||||
18 | rate bonds shall be the maximum amounts of interest that may be
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19 | payable during the fiscal year, after taking into account any | ||||||
20 | credits
permitted in the related indenture or other instrument | ||||||
21 | against the amount
of such interest required to be appropriated | ||||||
22 | for such period. Amounts included
in such appropriations for | ||||||
23 | the payment of interest shall include the amounts
certified by | ||||||
24 | the Director of the
Governor's Office of Management and Budget | ||||||
25 | under subsection (b) of
Section 9 of this Act.
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26 | Beginning October 1, 2007, on the first day of each month, |
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1 | or as soon thereafter as practical, the State Comptroller shall | ||||||
2 | direct and the State Treasurer shall transfer, from the General | ||||||
3 | Revenue Fund to the General Obligation
Bond Retirement and | ||||||
4 | Interest Fund, all amounts that were paid into the General | ||||||
5 | Revenue Fund in the previous month under Section 2 of the | ||||||
6 | Cigarette Tax Act from the additional taxes imposed under the | ||||||
7 | Cigarette Tax Act and the Cigarette Use Tax Act by this | ||||||
8 | amendatory Act of the 95th General Assembly.
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9 | If for any reason there are insufficient funds in either | ||||||
10 | the General
Revenue Fund or the Road Fund to make
transfers to | ||||||
11 | the General Obligation Bond Retirement and Interest Fund as
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12 | required by Section 15 of this Act, or if for any reason the | ||||||
13 | General Assembly
fails to make appropriations sufficient to pay | ||||||
14 | the principal of, interest on,
and premium, if any, on the | ||||||
15 | Bonds, as the same by their terms shall become due,
this Act | ||||||
16 | shall constitute an irrevocable and continuing appropriation | ||||||
17 | of all
amounts necessary for that purpose, and the irrevocable | ||||||
18 | and continuing
authority for and direction to the State | ||||||
19 | Treasurer and the Comptroller to make
the necessary transfers, | ||||||
20 | as directed by the Governor, out of and disbursements
from the | ||||||
21 | revenues and funds of the
State.
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22 | (d) If, because of insufficient funds in either the General | ||||||
23 | Revenue Fund
or the Road Fund, monies have been transferred to | ||||||
24 | the General Obligation
Bond Retirement and Interest Fund, as | ||||||
25 | required by subsection (c) of this
Section, this Act shall | ||||||
26 | constitute the irrevocable and continuing authority
for and |
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1 | direction to the State Treasurer and Comptroller to reimburse | ||||||
2 | these
funds of the State from the General Revenue Fund or the | ||||||
3 | Road Fund, as
appropriate, by transferring, at such times and | ||||||
4 | in such amounts, as directed by
the Governor, an amount to | ||||||
5 | these funds equal to that transferred from them.
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6 | (Source: P.A. 93-9, eff. 6-3-03; 94-793, eff. 5-19-06.)
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7 | Section 10. The Cigarette Tax Act is amended by changing | ||||||
8 | Sections 2 and 3 as follows:
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9 | (35 ILCS 130/2) (from Ch. 120, par. 453.2)
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10 | Sec. 2. Tax imposed; rate; collection, payment, and | ||||||
11 | distribution;
discount. | ||||||
12 | (a) A tax is imposed upon any person engaged in business as | ||||||
13 | a
retailer of cigarettes in this State at the rate of 5 1/2 | ||||||
14 | mills per
cigarette sold, or otherwise disposed of in the | ||||||
15 | course of such business in
this State. In addition to any other | ||||||
16 | tax imposed by this Act, a tax is
imposed upon any person | ||||||
17 | engaged in business as a retailer of cigarettes in
this State | ||||||
18 | at a rate of 1/2 mill per cigarette sold or otherwise disposed
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19 | of in the course of such business in this State on and after | ||||||
20 | January 1,
1947, and shall be paid into the Metropolitan Fair | ||||||
21 | and Exposition Authority
Reconstruction Fund or as otherwise | ||||||
22 | provided in Section 29. On and after December 1, 1985, in | ||||||
23 | addition to any
other tax imposed by this Act, a tax is imposed | ||||||
24 | upon any person engaged in
business as a retailer of cigarettes |
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1 | in this State at a rate of 4 mills per
cigarette sold or | ||||||
2 | otherwise disposed of in the course of such business in
this | ||||||
3 | State. Of the additional tax imposed by this amendatory Act of | ||||||
4 | 1985,
$9,000,000 of the moneys received by the Department of | ||||||
5 | Revenue pursuant to
this Act shall be paid each month into the | ||||||
6 | Common School Fund. On and after
the effective date of this | ||||||
7 | amendatory Act of 1989, in addition to any other tax
imposed by | ||||||
8 | this Act, a tax is imposed upon any person engaged in business | ||||||
9 | as a
retailer of cigarettes at the rate of 5 mills per | ||||||
10 | cigarette sold or
otherwise disposed of in the course of such | ||||||
11 | business in this State.
On and after the effective date of this | ||||||
12 | amendatory Act of 1993, in addition
to any other tax imposed by | ||||||
13 | this Act, a tax is imposed upon any person engaged
in business | ||||||
14 | as a retailer of cigarettes at the rate of 7 mills per | ||||||
15 | cigarette
sold or otherwise disposed of in the course of such | ||||||
16 | business in this State.
On and after December 15, 1997, in | ||||||
17 | addition
to any other tax imposed by this Act, a tax is imposed | ||||||
18 | upon any person engaged
in business as a retailer of cigarettes | ||||||
19 | at the rate of 7 mills per cigarette
sold or otherwise disposed | ||||||
20 | of in the course of such business of this State.
All of the | ||||||
21 | moneys received by the Department of Revenue pursuant to this | ||||||
22 | Act
and the Cigarette Use Tax Act from the additional taxes | ||||||
23 | imposed by this
amendatory Act of 1997, shall be paid each | ||||||
24 | month into the Common School Fund.
On and after July 1, 2002, | ||||||
25 | in addition to any other tax imposed by this Act,
a tax is | ||||||
26 | imposed upon any person engaged in business as a retailer of
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1 | cigarettes at the rate of 20.0 mills per cigarette sold or | ||||||
2 | otherwise disposed
of
in the course of such business in this | ||||||
3 | State.
Beginning on September 1, 2007 in addition to any other | ||||||
4 | tax imposed by this Act, a tax is imposed upon any person | ||||||
5 | engaged in business as a retailer of cigarettes at the rate of | ||||||
6 | 37.5 mills per cigarette sold or otherwise disposed of in the | ||||||
7 | course of such business in this State. All of the moneys | ||||||
8 | received by the Department of Revenue under this Act and the | ||||||
9 | Cigarette Use Tax Act from the additional taxes imposed by this | ||||||
10 | amendatory Act of the 95th General Assembly must be paid each | ||||||
11 | month into the General Revenue Fund. The payment of such taxes | ||||||
12 | shall be evidenced by a stamp affixed to
each original package | ||||||
13 | of cigarettes, or an authorized substitute for such stamp
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14 | imprinted on each original package of such cigarettes | ||||||
15 | underneath the sealed
transparent outside wrapper of such | ||||||
16 | original package, as hereinafter provided.
However, such taxes | ||||||
17 | are not imposed upon any activity in such business in
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18 | interstate commerce or otherwise, which activity may not under
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19 | the Constitution and statutes of the United States be made the | ||||||
20 | subject of
taxation by this State.
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21 | All
Beginning on the effective date of this amendatory Act | ||||||
22 | of the 92nd General
Assembly and through June 30, 2006,
all of | ||||||
23 | the moneys received by the Department of Revenue pursuant to | ||||||
24 | this Act
and the Cigarette Use Tax Act, other than the moneys | ||||||
25 | that are dedicated to the Common
School Fund, shall be | ||||||
26 | distributed each month as follows: first, there must be paid |
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1 | into the General Revenue Fund, the amount required to be | ||||||
2 | deposited by this amendatory Act of the 95th General Assembly; | ||||||
3 | then there shall be
paid into the General Revenue Fund an | ||||||
4 | amount which, when added to the amount
paid into the Common | ||||||
5 | School Fund for that month, equals $33,300,000, except that in | ||||||
6 | the month of August of 2004, this amount shall equal | ||||||
7 | $83,300,000; then, from
the moneys remaining, if any amounts | ||||||
8 | required to be paid into the General
Revenue Fund in previous | ||||||
9 | months remain unpaid, those amounts shall be paid into
the | ||||||
10 | General Revenue Fund;
then, beginning on April 1, 2003, from | ||||||
11 | the moneys remaining, $5,000,000 per
month shall be paid into | ||||||
12 | the School Infrastructure Fund; then, if any amounts
required | ||||||
13 | to be paid into the School Infrastructure Fund in previous | ||||||
14 | months
remain unpaid, those amounts shall be paid into the | ||||||
15 | School Infrastructure
Fund;
then the moneys remaining, if any, | ||||||
16 | shall be paid into the Long-Term Care
Provider Fund.
To the | ||||||
17 | extent that more than $25,000,000 has been paid into the | ||||||
18 | General
Revenue Fund and Common School Fund per month for the | ||||||
19 | period of July 1, 1993
through the effective date of this | ||||||
20 | amendatory Act of 1994 from combined
receipts
of the Cigarette | ||||||
21 | Tax Act and the Cigarette Use Tax Act, notwithstanding the
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22 | distribution provided in this Section, the Department of | ||||||
23 | Revenue is hereby
directed to adjust the distribution provided | ||||||
24 | in this Section to increase the
next monthly payments to the | ||||||
25 | Long Term Care Provider Fund by the amount paid to
the General | ||||||
26 | Revenue Fund and Common School Fund in excess of $25,000,000 |
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1 | per
month and to decrease the next monthly payments to the | ||||||
2 | General Revenue Fund and
Common School Fund by that same excess | ||||||
3 | amount.
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4 | Beginning on July 1, 2006, all of the moneys received by | ||||||
5 | the Department of Revenue pursuant to this Act and the | ||||||
6 | Cigarette Use Tax Act, other than the moneys that are dedicated | ||||||
7 | to the Common School Fund, shall be distributed each month as | ||||||
8 | follows: first, there shall be paid into the General Revenue | ||||||
9 | Fund an amount that, when added to the amount paid into the | ||||||
10 | Common School Fund for that month, equals $29,200,000; then, | ||||||
11 | from the moneys remaining, if any amounts required to be paid | ||||||
12 | into the General Revenue Fund in previous months remain unpaid, | ||||||
13 | those amounts shall be paid into the General Revenue Fund; then | ||||||
14 | from the moneys remaining, $5,000,000 per month shall be paid | ||||||
15 | into the School Infrastructure Fund; then, if any amounts | ||||||
16 | required to be paid into the School Infrastructure Fund in | ||||||
17 | previous months remain unpaid, those amounts shall be paid into | ||||||
18 | the School Infrastructure Fund; then the moneys remaining, if | ||||||
19 | any, shall be paid into the Long-Term Care Provider Fund.
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20 | When any tax imposed herein terminates or has terminated, | ||||||
21 | distributors
who have bought stamps while such tax was in | ||||||
22 | effect and who therefore paid
such tax, but who can show, to | ||||||
23 | the Department's satisfaction, that they
sold the cigarettes to | ||||||
24 | which they affixed such stamps after such tax had
terminated | ||||||
25 | and did not recover the tax or its equivalent from purchasers,
| ||||||
26 | shall be allowed by the Department to take credit for such |
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1 | absorbed tax
against subsequent tax stamp purchases from the | ||||||
2 | Department by such
distributor.
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3 | The impact of the tax levied by this Act is imposed upon | ||||||
4 | the retailer
and shall be prepaid or pre-collected by the | ||||||
5 | distributor for the purpose of
convenience and facility only, | ||||||
6 | and the amount of the tax shall be added to
the price of the | ||||||
7 | cigarettes sold by such distributor. Collection of the tax
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8 | shall be evidenced by a stamp or stamps affixed to each | ||||||
9 | original package of
cigarettes, as hereinafter provided.
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10 | Each distributor shall collect the tax from the retailer at | ||||||
11 | or before
the time of the sale, shall affix the stamps as | ||||||
12 | hereinafter required, and
shall remit the tax collected from | ||||||
13 | retailers to the Department, as
hereinafter provided. Any | ||||||
14 | distributor who fails to properly collect and pay
the tax | ||||||
15 | imposed by this Act shall be liable for the tax. Any | ||||||
16 | distributor having
cigarettes to which stamps have been affixed | ||||||
17 | in his possession for sale on the
effective date of this | ||||||
18 | amendatory Act of 1989 shall not be required to pay the
| ||||||
19 | additional tax imposed by this amendatory Act of 1989 on such | ||||||
20 | stamped
cigarettes. Any distributor having cigarettes to which | ||||||
21 | stamps have been affixed
in his or her possession for sale at | ||||||
22 | 12:01 a.m. on the effective date of this
amendatory Act of | ||||||
23 | 1993, is required to pay the additional tax imposed by this
| ||||||
24 | amendatory Act of 1993 on such stamped cigarettes. This | ||||||
25 | payment, less the
discount provided in subsection (b), shall be | ||||||
26 | due when the distributor first
makes a purchase of cigarette |
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1 | tax stamps after the effective date of this
amendatory Act of | ||||||
2 | 1993, or on the first due date of a return under this Act
after | ||||||
3 | the effective date of this amendatory Act of 1993, whichever | ||||||
4 | occurs
first. Any distributor having cigarettes to which stamps | ||||||
5 | have been affixed
in his possession for sale on December 15, | ||||||
6 | 1997
shall not be required to pay the additional tax imposed by | ||||||
7 | this amendatory Act
of 1997 on such stamped cigarettes.
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8 | Any distributor having cigarettes to which stamps have been | ||||||
9 | affixed in his
or her
possession for sale on July 1, 2002 shall | ||||||
10 | not be required to pay the additional
tax imposed by this | ||||||
11 | amendatory Act of the 92nd General Assembly on those
stamped
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12 | cigarettes. Any distributor having cigarettes to which stamps | ||||||
13 | have been affixed in his
or her
possession for sale on | ||||||
14 | September 1, 2007 is not required to pay the additional
tax | ||||||
15 | imposed by this amendatory Act of the 95th General Assembly on | ||||||
16 | those
stamped
cigarettes.
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17 | The amount of the Cigarette Tax imposed by this Act shall | ||||||
18 | be separately
stated, apart from the price of the goods, by | ||||||
19 | both distributors and
retailers, in all advertisements, bills | ||||||
20 | and sales invoices.
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21 | (b) The distributor shall be required to collect the taxes | ||||||
22 | provided
under paragraph (a) hereof, and, to cover the costs of | ||||||
23 | such collection,
shall be allowed a discount during any year | ||||||
24 | commencing July 1st and ending
the following June 30th in | ||||||
25 | accordance with the schedule set out
hereinbelow, which | ||||||
26 | discount shall be allowed at the time of purchase of the
stamps |
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1 | when purchase is required by this Act, or at the time when the | ||||||
2 | tax
is remitted to the Department without the purchase of | ||||||
3 | stamps from the
Department when that method of paying the tax | ||||||
4 | is required or authorized by
this Act. Prior to December 1, | ||||||
5 | 1985, a discount equal to 1 2/3% of
the amount of the tax up to | ||||||
6 | and including the first $700,000 paid hereunder by
such | ||||||
7 | distributor to the Department during any such year; 1 1/3% of | ||||||
8 | the next
$700,000 of tax or any part thereof, paid hereunder by | ||||||
9 | such distributor to the
Department during any such year; 1% of | ||||||
10 | the next $700,000 of tax, or any part
thereof, paid hereunder | ||||||
11 | by such distributor to the Department during any such
year, and | ||||||
12 | 2/3 of 1% of the amount of any additional tax paid hereunder by | ||||||
13 | such
distributor to the Department during any such year shall | ||||||
14 | apply. On and after
December 1, 1985, a discount equal to 1.75% | ||||||
15 | of the amount of the tax payable
under this Act up to and | ||||||
16 | including the first $3,000,000 paid hereunder by such
| ||||||
17 | distributor to the Department during any such year and 1.5% of | ||||||
18 | the amount of
any additional tax paid hereunder by such | ||||||
19 | distributor to the Department during
any such year shall apply.
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20 | Two or more distributors that use a common means of | ||||||
21 | affixing revenue tax
stamps or that are owned or controlled by | ||||||
22 | the same interests shall be
treated as a single distributor for | ||||||
23 | the purpose of computing the discount.
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24 | (c) The taxes herein imposed are in addition to all other | ||||||
25 | occupation or
privilege taxes imposed by the State of Illinois, | ||||||
26 | or by any political
subdivision thereof, or by any municipal |
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1 | corporation.
| ||||||
2 | (Source: P.A. 93-839, eff. 7-30-04; 94-91, eff. 7-1-05; 94-839, | ||||||
3 | eff. 6-6-06.)
| ||||||
4 | (35 ILCS 130/3) (from Ch. 120, par. 453.3)
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5 | Sec. 3. Affixing tax stamp; remitting tax to the | ||||||
6 | Department. Payment of
the taxes imposed by Section 2 of this | ||||||
7 | Act shall
(except as hereinafter provided) be evidenced by | ||||||
8 | revenue tax stamps affixed
to each original package of | ||||||
9 | cigarettes. Each distributor of cigarettes,
before delivering | ||||||
10 | or causing to be delivered any original package of
cigarettes | ||||||
11 | in this State to a purchaser, shall firmly affix a proper stamp
| ||||||
12 | or stamps to each such package, or (in case of manufacturers of | ||||||
13 | cigarettes
in original packages which are contained inside a | ||||||
14 | sealed transparent
wrapper) shall imprint the required | ||||||
15 | language on the original package of
cigarettes beneath such | ||||||
16 | outside wrapper, as hereinafter provided.
| ||||||
17 | No stamp or imprint may be affixed to, or made upon, any | ||||||
18 | package of
cigarettes unless that package complies with all | ||||||
19 | requirements of the federal
Cigarette Labeling and Advertising | ||||||
20 | Act, 15 U.S.C. 1331 and following, for the
placement of labels, | ||||||
21 | warnings, or any other information upon a package of
cigarettes | ||||||
22 | that is sold within the United States. Under the authority of
| ||||||
23 | Section 6, the Department shall revoke the license of any | ||||||
24 | distributor that is
determined to have violated this paragraph.
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25 | A person may not affix a stamp on a package of cigarettes, |
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1 | cigarette papers,
wrappers, or tubes if that individual package | ||||||
2 | has been marked for export
outside the United States with a | ||||||
3 | label or notice in compliance with Section
290.185 of Title 27 | ||||||
4 | of the Code of Federal Regulations. It is not a defense to
a | ||||||
5 | proceeding for violation of this paragraph that the label or | ||||||
6 | notice has been
removed, mutilated, obliterated, or altered in | ||||||
7 | any manner.
| ||||||
8 | The Department, or any person authorized by the Department, | ||||||
9 | shall
sell such stamps only to persons holding valid
licenses | ||||||
10 | as distributors under this Act. On and after July 1, 2003, | ||||||
11 | payment
for such stamps must be made by means of
electronic | ||||||
12 | funds transfer. The Department may refuse to sell stamps to any
| ||||||
13 | person who does not comply
with the provisions of this Act.
| ||||||
14 | Beginning on the effective date of this amendatory Act of | ||||||
15 | the 92nd General
Assembly and through June 30, 2002, persons | ||||||
16 | holding valid licenses as
distributors
may purchase cigarette | ||||||
17 | tax stamps up to an amount equal to 115% of the
distributor's | ||||||
18 | average monthly cigarette tax stamp purchases over the 12
| ||||||
19 | calendar
months prior to the effective date of this amendatory | ||||||
20 | Act of the 92nd General
Assembly.
| ||||||
21 | Beginning on the effective date of this amendatory Act of | ||||||
22 | the 95th General
Assembly and through August 31, 2007, persons | ||||||
23 | holding valid licenses as
distributors
may purchase cigarette | ||||||
24 | tax stamps up to an amount equal to 115% of the
distributor's | ||||||
25 | average monthly cigarette tax stamp purchases over the 12
| ||||||
26 | calendar
months prior to the effective date of this amendatory |
| |||||||
| |||||||
1 | Act of the 95th General
Assembly.
| ||||||
2 | Prior to December 1, 1985, the Department shall allow a | ||||||
3 | distributor
21 days in which to make final
payment of the | ||||||
4 | amount to be paid for such stamps, by allowing the
distributor | ||||||
5 | to make payment for the stamps at the time of purchasing them
| ||||||
6 | with a draft which shall be in such form as the Department | ||||||
7 | prescribes, and
which shall be payable within 21 days | ||||||
8 | thereafter: Provided that such
distributor has filed with the | ||||||
9 | Department, and has received the
Department's approval of, a | ||||||
10 | bond, which is in addition to the bond required
under Section 4 | ||||||
11 | of this Act, payable to the Department in an amount equal
to | ||||||
12 | 80% of such distributor's average monthly tax liability to
the | ||||||
13 | Department under this Act during the preceding calendar year or | ||||||
14 | $500,000,
whichever is less. The Bond shall be joint and
| ||||||
15 | several and shall be in the form of a surety company bond in | ||||||
16 | such form as
the Department prescribes, or it may be in the | ||||||
17 | form of a bank certificate
of deposit or bank letter of credit. | ||||||
18 | The bond shall be conditioned upon the
distributor's payment of | ||||||
19 | amount of any 21-day draft which the Department
accepts from | ||||||
20 | that distributor for the delivery of stamps to that
distributor | ||||||
21 | under this Act. The distributor's failure to pay any such
| ||||||
22 | draft, when due, shall also make such distributor automatically | ||||||
23 | liable to
the Department for a penalty equal to 25% of the | ||||||
24 | amount of such draft.
| ||||||
25 | On and after December 1, 1985 and until July 1, 2003, the | ||||||
26 | Department
shall allow a distributor
30 days in which to make
|
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| |||||||
1 | final payment of the amount to be paid for such stamps, by | ||||||
2 | allowing the
distributor to make payment for the stamps at the | ||||||
3 | time of purchasing them
with a draft which shall be in such | ||||||
4 | form as the Department prescribes, and
which shall be payable | ||||||
5 | within 30 days thereafter, and beginning on January 1,
2003 and | ||||||
6 | thereafter, the draft shall be payable by means of electronic | ||||||
7 | funds
transfer: Provided that such
distributor has filed with | ||||||
8 | the Department, and has received the
Department's approval of, | ||||||
9 | a bond, which is in addition to the bond required
under Section | ||||||
10 | 4 of this Act, payable to the Department in an amount equal
to | ||||||
11 | 150% of such distributor's average monthly tax liability to the
| ||||||
12 | Department under this Act during the preceding calendar year or | ||||||
13 | $750,000,
whichever is less, except that as to bonds filed on | ||||||
14 | or after January 1,
1987, such additional bond shall be in an | ||||||
15 | amount equal to 100% of such
distributor's average monthly tax | ||||||
16 | liability under this Act during the
preceding calendar year or | ||||||
17 | $750,000, whichever is less. The bond shall be
joint and | ||||||
18 | several and shall be in the form of a surety company bond in | ||||||
19 | such
form as the Department prescribes, or it may be in the | ||||||
20 | form of a bank
certificate of deposit or bank letter of credit.
| ||||||
21 | The bond shall be conditioned upon the distributor's payment of | ||||||
22 | the amount
of any 30-day draft which the Department accepts | ||||||
23 | from that distributor for
the delivery of stamps to that | ||||||
24 | distributor under this Act. The
distributor's failure to pay | ||||||
25 | any such draft, when due, shall also make such
distributor | ||||||
26 | automatically liable to the Department for a penalty equal to
|
| |||||||
| |||||||
1 | 25% of the amount of such draft.
| ||||||
2 | Every prior continuous compliance taxpayer shall be exempt | ||||||
3 | from all
requirements under this Section concerning the | ||||||
4 | furnishing of such bond, as
defined in this Section, as a | ||||||
5 | condition precedent to his being authorized
to engage in the | ||||||
6 | business licensed under this Act. This exemption shall
continue | ||||||
7 | for each such taxpayer until such time as he may be determined | ||||||
8 | by
the Department to be delinquent in the filing of any | ||||||
9 | returns, or is
determined by the Department (either through the | ||||||
10 | Department's issuance of a
final assessment which has become | ||||||
11 | final under the Act, or by the taxpayer's
filing of a return | ||||||
12 | which admits tax to be due that is not paid) to be
delinquent | ||||||
13 | or deficient in the paying of any tax under this Act, at which
| ||||||
14 | time that taxpayer shall become subject to the bond | ||||||
15 | requirements of this
Section and, as a condition of being | ||||||
16 | allowed to continue to engage in the
business licensed under | ||||||
17 | this Act, shall be required to furnish bond to the
Department | ||||||
18 | in such form as provided in this Section. Such taxpayer shall
| ||||||
19 | furnish such bond for a period of 2 years, after which, if the | ||||||
20 | taxpayer has
not been delinquent in the filing of any returns, | ||||||
21 | or delinquent or
deficient in the paying of any tax under this | ||||||
22 | Act, the Department may
reinstate such person as a prior | ||||||
23 | continuance compliance taxpayer. Any
taxpayer who fails to pay | ||||||
24 | an admitted or established liability under this
Act may also be | ||||||
25 | required to post bond or other acceptable security with the
| ||||||
26 | Department guaranteeing the payment of such admitted or |
| |||||||
| |||||||
1 | established liability.
| ||||||
2 | Any person aggrieved by any decision of the Department | ||||||
3 | under this
Section may, within the time allowed by law, protest | ||||||
4 | and request a hearing,
whereupon the Department shall give | ||||||
5 | notice and shall hold a hearing in
conformity with the | ||||||
6 | provisions of this Act and then issue its final
administrative | ||||||
7 | decision in the matter to such person. In the absence of
such a | ||||||
8 | protest filed within the time allowed by law, the Department's
| ||||||
9 | decision shall become final without any further determination | ||||||
10 | being made or
notice given.
| ||||||
11 | The Department shall discharge any surety and shall release | ||||||
12 | and return
any bond or security deposited, assigned, pledged, | ||||||
13 | or otherwise provided to
it by a taxpayer under this Section | ||||||
14 | within 30 days after:
| ||||||
15 | (1) Such taxpayer becomes a prior continuous compliance | ||||||
16 | taxpayer; or
| ||||||
17 | (2) Such taxpayer has ceased to collect receipts on which | ||||||
18 | he is
required to remit tax to the Department, has filed a | ||||||
19 | final tax return, and
has paid to the Department an amount | ||||||
20 | sufficient to discharge his remaining
tax liability as | ||||||
21 | determined by the Department under this Act. The
Department | ||||||
22 | shall make a final determination of the taxpayer's outstanding
| ||||||
23 | tax liability as expeditiously as possible after his final tax | ||||||
24 | return has
been filed. If the Department cannot make such final | ||||||
25 | determination within
45 days after receiving the final tax | ||||||
26 | return, within such period it shall
so notify the taxpayer, |
| |||||||
| |||||||
1 | stating its reasons therefor.
| ||||||
2 | The Department may authorize distributors to affix revenue | ||||||
3 | tax stamps by
imprinting tax meter stamps upon original | ||||||
4 | packages of cigarettes. The
Department shall adopt rules and | ||||||
5 | regulations relating to the imprinting of
such tax meter stamps | ||||||
6 | as will result in payment of the proper taxes as
herein | ||||||
7 | imposed. No distributor may affix revenue tax stamps to | ||||||
8 | original
packages of cigarettes by imprinting tax meter stamps | ||||||
9 | thereon unless such
distributor has first obtained permission | ||||||
10 | from the Department to employ
this method of affixation. The | ||||||
11 | Department shall regulate the use of tax
meters and may, to | ||||||
12 | assure the proper collection of the taxes imposed by
this Act, | ||||||
13 | revoke or suspend the privilege, theretofore granted by the
| ||||||
14 | Department to any distributor, to imprint tax meter stamps upon | ||||||
15 | original
packages of cigarettes.
| ||||||
16 | Illinois cigarette manufacturers who place their | ||||||
17 | cigarettes in original
packages which are contained inside a | ||||||
18 | sealed transparent wrapper, and
similar out-of-State cigarette | ||||||
19 | manufacturers who elect to qualify and are
accepted by the | ||||||
20 | Department as distributors under Section 4b of this Act,
shall | ||||||
21 | pay the taxes imposed by this Act by remitting the amount | ||||||
22 | thereof to
the Department by the 5th day of each month covering | ||||||
23 | cigarettes shipped or
otherwise delivered in Illinois to | ||||||
24 | purchasers during the preceding calendar
month. Such | ||||||
25 | manufacturers of cigarettes in original packages which are
| ||||||
26 | contained inside a sealed transparent wrapper, before |
| |||||||
| |||||||
1 | delivering such
cigarettes or causing such cigarettes to be | ||||||
2 | delivered in this State to
purchasers, shall evidence their | ||||||
3 | obligation to remit the taxes due with
respect to such | ||||||
4 | cigarettes by imprinting language to be prescribed by the
| ||||||
5 | Department on each original package of such cigarettes | ||||||
6 | underneath the
sealed transparent outside wrapper of such | ||||||
7 | original package, in such place
thereon and in such manner as | ||||||
8 | the Department may designate. Such imprinted
language shall | ||||||
9 | acknowledge the manufacturer's payment of or liability for
the | ||||||
10 | tax imposed by this Act with respect to the distribution of | ||||||
11 | such
cigarettes.
| ||||||
12 | A distributor shall not affix, or cause to be affixed, any | ||||||
13 | stamp or imprint
to a package of cigarettes, as provided for in | ||||||
14 | this Section, if the tobacco
product
manufacturer, as defined | ||||||
15 | in Section 10 of the Tobacco Product Manufacturers'
Escrow
Act, | ||||||
16 | that made or sold the cigarettes has failed to become a | ||||||
17 | participating
manufacturer, as defined in subdivision (a)(1) | ||||||
18 | of Section 15 of the Tobacco
Product
Manufacturers' Escrow Act, | ||||||
19 | or has failed to create a qualified escrow fund for
any | ||||||
20 | cigarettes manufactured by the tobacco product manufacturer | ||||||
21 | and sold in
this State or otherwise failed to bring itself into | ||||||
22 | compliance with subdivision
(a)(2) of Section 15 of the Tobacco | ||||||
23 | Product
Manufacturers' Escrow Act.
| ||||||
24 | (Source: P.A. 92-322, eff. 1-1-02; 92-536, eff. 6-6-02;
92-737, | ||||||
25 | eff. 7-25-02; 93-22, eff. 6-20-03.)
|
| |||||||
| |||||||
1 | Section 15. The Cigarette Use Tax Act is amended by | ||||||
2 | changing Sections 2 and 3 as follows:
| ||||||
3 | (35 ILCS 135/2) (from Ch. 120, par. 453.32)
| ||||||
4 | Sec. 2. A tax is imposed upon the privilege of using | ||||||
5 | cigarettes in this
State, at the rate of 6 mills per cigarette | ||||||
6 | so used. On and after
December 1, 1985, in addition to any | ||||||
7 | other tax imposed by this Act, a tax
is imposed upon the | ||||||
8 | privilege of using cigarettes in this State at a rate
of 4 | ||||||
9 | mills per cigarette so used. On and after the effective date of | ||||||
10 | this
amendatory Act of 1989, in addition to any other tax | ||||||
11 | imposed by this Act, a
tax is imposed upon the privilege of | ||||||
12 | using cigarettes in this State at the
rate of 5 mills per | ||||||
13 | cigarette so used. On and after the effective date of this
| ||||||
14 | amendatory Act of 1993, in addition to any other tax imposed by | ||||||
15 | this Act, a tax
is imposed upon the privilege of using | ||||||
16 | cigarettes in this State at a rate of 7
mills per cigarette so | ||||||
17 | used. On and after December 15,
1997, in addition to any other | ||||||
18 | tax imposed by this Act, a tax
is imposed upon the privilege of | ||||||
19 | using cigarettes in this State at a rate of
7 mills per | ||||||
20 | cigarette so used.
On and after July 1, 2002, in addition to | ||||||
21 | any other tax imposed by
this Act, a tax is imposed
upon the | ||||||
22 | privilege of using cigarettes in this State at a rate of 20.0 | ||||||
23 | mills
per cigarette so used. Beginning on September 1, 2007, in | ||||||
24 | addition to any other tax imposed by this Act, a tax is imposed | ||||||
25 | upon the privilege of using cigarettes in this State at a rate |
| |||||||
| |||||||
1 | of 37.5 mills per cigarette so used.
The taxes herein imposed | ||||||
2 | shall be in
addition to
all other occupation or privilege taxes | ||||||
3 | imposed by the State of Illinois or by
any political | ||||||
4 | subdivision thereof or by any municipal corporation.
| ||||||
5 | When any tax imposed herein terminates or has terminated, | ||||||
6 | distributors
who have bought stamps while such tax was in | ||||||
7 | effect and who therefore paid
such tax, but who can show, to | ||||||
8 | the Department's satisfaction, that they
sold the cigarettes to | ||||||
9 | which they affixed such stamps after such tax had
terminated | ||||||
10 | and did not recover the tax or its equivalent from purchasers,
| ||||||
11 | shall be allowed by the Department to take credit for such | ||||||
12 | absorbed tax
against subsequent tax stamp purchases from the | ||||||
13 | Department by such
distributors.
| ||||||
14 | When the word "tax" is used in this Act, it shall include | ||||||
15 | any tax or tax
rate imposed by this Act and shall mean the | ||||||
16 | singular of "tax" or the plural
"taxes" as the context may | ||||||
17 | require.
| ||||||
18 | Any distributor having cigarettes to which stamps have been | ||||||
19 | affixed in
his possession for sale on the effective date of | ||||||
20 | this amendatory Act of
1989 shall not be required to pay the | ||||||
21 | additional tax imposed by this
amendatory Act of 1989 on such | ||||||
22 | stamped cigarettes. Any distributor having
cigarettes to which | ||||||
23 | stamps have been affixed in his or her possession for sale
at | ||||||
24 | 12:01 a.m. on the effective date of this amendatory Act of | ||||||
25 | 1993, is required
to pay the additional tax imposed by this | ||||||
26 | amendatory Act of 1993 on such
stamped cigarettes. This payment |
| |||||||
| |||||||
1 | shall be due when the distributor first makes
a purchase of | ||||||
2 | cigarette tax stamps after the effective date of this | ||||||
3 | amendatory
Act of 1993, or on the first due date of a return | ||||||
4 | under this Act after the
effective date of this amendatory Act | ||||||
5 | of 1993, whichever occurs first. Once a
distributor tenders | ||||||
6 | payment of the additional tax to the Department, the
| ||||||
7 | distributor may purchase stamps from the Department.
Any | ||||||
8 | distributor having cigarettes to which stamps have been affixed
| ||||||
9 | in his possession for sale on December 15, 1997
shall not be | ||||||
10 | required to pay the additional tax imposed by this amendatory | ||||||
11 | Act
of 1997 on such stamped cigarettes.
| ||||||
12 | Any distributor having cigarettes to which stamps have been | ||||||
13 | affixed in his
or her possession for sale on July 1, 2002 shall | ||||||
14 | not be required to pay the
additional
tax imposed by this | ||||||
15 | amendatory Act of the 92nd General Assembly on those
stamped
| ||||||
16 | cigarettes. Any distributor having cigarettes to which stamps | ||||||
17 | have been affixed in his
or her
possession for sale on | ||||||
18 | September 1, 2007 is not required to pay the additional
tax | ||||||
19 | imposed by this amendatory Act of the 95th General Assembly on | ||||||
20 | those
stamped
cigarettes.
| ||||||
21 | (Source: P.A. 92-536, eff. 6-6-02.)
| ||||||
22 | (35 ILCS 135/3) (from Ch. 120, par. 453.33)
| ||||||
23 | Sec. 3. Stamp payment. The tax hereby imposed shall be | ||||||
24 | collected by a
distributor
maintaining a place of business in | ||||||
25 | this State or a distributor authorized
by the Department |
| |||||||
| |||||||
1 | pursuant to Section 7 hereof to collect the tax, and the
amount | ||||||
2 | of the tax shall be added to the price of the cigarettes sold | ||||||
3 | by
such distributor. Collection of the tax shall be evidenced | ||||||
4 | by a stamp or
stamps affixed to each original package of | ||||||
5 | cigarettes or by an authorized
substitute for such stamp | ||||||
6 | imprinted on each original package of such
cigarettes | ||||||
7 | underneath the sealed transparent outside wrapper of such
| ||||||
8 | original package, except as hereinafter provided. Each | ||||||
9 | distributor who is
required or authorized to collect the tax | ||||||
10 | herein imposed, before delivering
or causing to be delivered | ||||||
11 | any original packages of cigarettes in this
State to any | ||||||
12 | purchaser, shall firmly affix a proper stamp or stamps to each
| ||||||
13 | such package, or (in the case of manufacturers of cigarettes in | ||||||
14 | original
packages which are contained inside a sealed | ||||||
15 | transparent wrapper) shall
imprint the required language on the | ||||||
16 | original package of cigarettes beneath
such outside wrapper as | ||||||
17 | hereinafter provided. Such stamp or stamps need not
be affixed | ||||||
18 | to the original package of any cigarettes with respect to which
| ||||||
19 | the distributor is required to affix a like stamp or stamps by | ||||||
20 | virtue of
the Cigarette Tax Act, however, and no tax imprint | ||||||
21 | need be placed
underneath the sealed transparent wrapper of an | ||||||
22 | original package of
cigarettes with respect to which the | ||||||
23 | distributor is required or authorized
to employ a like tax | ||||||
24 | imprint by virtue of the Cigarette Tax Act.
| ||||||
25 | No stamp or imprint may be affixed to, or made upon, any | ||||||
26 | package of
cigarettes unless that package complies with all |
| |||||||
| |||||||
1 | requirements of the federal
Cigarette Labeling and Advertising | ||||||
2 | Act, 15 U.S.C. 1331 and following, for the
placement of labels, | ||||||
3 | warnings, or any other information upon a package of
cigarettes | ||||||
4 | that is sold within the United States. Under the authority of
| ||||||
5 | Section 6, the Department shall revoke the license of any | ||||||
6 | distributor that is
determined to have violated this paragraph.
| ||||||
7 | A person may not affix a stamp on a package of cigarettes, | ||||||
8 | cigarette papers,
wrappers, or tubes if that individual package | ||||||
9 | has been marked for export
outside the United States with a | ||||||
10 | label or notice in compliance with Section
290.185 of Title 27 | ||||||
11 | of the Code of Federal Regulations. It is not a defense to
a | ||||||
12 | proceeding for violation of this paragraph that the label or | ||||||
13 | notice has been
removed, mutilated, obliterated, or altered in | ||||||
14 | any manner.
| ||||||
15 | Stamps, when required hereunder, shall be purchased from | ||||||
16 | the Department, or
any person authorized by the Department, by | ||||||
17 | distributors. On and after July
1, 2003, payment for such | ||||||
18 | stamps must be made by means of
electronic funds transfer. The | ||||||
19 | Department may
refuse to sell stamps to any person who does not | ||||||
20 | comply with the provisions
of this Act. | ||||||
21 | Beginning on June 6, 2002 and through June 30, 2002,
| ||||||
22 | persons holding valid licenses as distributors may purchase | ||||||
23 | cigarette tax
stamps up to an amount equal to 115% of the | ||||||
24 | distributor's average monthly
cigarette tax stamp purchases | ||||||
25 | over the 12 calendar months prior to June
6, 2002.
| ||||||
26 | Beginning on the effective date of this amendatory Act of |
| |||||||
| |||||||
1 | the 95th General
Assembly and through August 31, 2007, persons | ||||||
2 | holding valid licenses as distributors may purchase cigarette | ||||||
3 | tax
stamps up to an amount equal to 115% of the distributor's | ||||||
4 | average monthly
cigarette tax stamp purchases over the 12 | ||||||
5 | calendar months prior to the effective date of this amendatory | ||||||
6 | Act of the 95th General
Assembly.
| ||||||
7 | Prior to December 1, 1985, the Department shall
allow a | ||||||
8 | distributor
21 days in which to make final
payment of the | ||||||
9 | amount to be paid for such stamps, by allowing the
distributor | ||||||
10 | to make payment for the stamps at the time of purchasing them
| ||||||
11 | with a draft which shall be in such form as the Department | ||||||
12 | prescribes, and
which shall be payable within 21 days | ||||||
13 | thereafter: Provided that such
distributor has filed with the | ||||||
14 | Department, and has received the
Department's approval of, a | ||||||
15 | bond, which is in addition to the bond required
under Section 4 | ||||||
16 | of this Act, payable to the Department in an amount equal
to | ||||||
17 | 80% of such distributor's average monthly tax liability to
the | ||||||
18 | Department under this Act during the preceding calendar year or
| ||||||
19 | $500,000, whichever is less. The bond shall be joint and
| ||||||
20 | several and shall be in the form of a surety company bond in | ||||||
21 | such form as
the Department prescribes, or it may be in the | ||||||
22 | form of a bank certificate
of deposit or bank letter of credit. | ||||||
23 | The bond shall be conditioned upon the
distributor's payment of | ||||||
24 | the amount of any 21-day draft which the
Department accepts | ||||||
25 | from that distributor for the delivery of stamps to that
| ||||||
26 | distributor under this Act. The distributor's failure to pay |
| |||||||
| |||||||
1 | any such
draft, when due, shall also make such distributor | ||||||
2 | automatically liable to
the Department for a penalty equal to | ||||||
3 | 25% of the amount of such draft.
| ||||||
4 | On and after December 1, 1985 and until July 1, 2003, the | ||||||
5 | Department
shall allow a distributor
30 days in which to make
| ||||||
6 | final payment of the amount to be paid for such stamps, by | ||||||
7 | allowing the
distributor to make payment for the stamps at the | ||||||
8 | time of purchasing them
with a draft which shall be in such | ||||||
9 | form as the Department prescribes, and
which shall be payable | ||||||
10 | within 30 days thereafter, and beginning on January 1,
2003 and | ||||||
11 | thereafter, the draft shall be payable by means of electronic | ||||||
12 | funds
transfer: Provided that such
distributor has filed with | ||||||
13 | the Department, and has received the
Department's approval of, | ||||||
14 | a bond, which is in addition to the bond required
under Section | ||||||
15 | 4 of this Act, payable to the Department in an amount equal
to | ||||||
16 | 150% of such distributor's average monthly tax liability to the
| ||||||
17 | Department under this Act during the preceding calendar year or | ||||||
18 | $750,000,
whichever is less, except that as to bonds filed on | ||||||
19 | or after January 1,
1987, such additional bond shall be in an | ||||||
20 | amount equal to 100% of such
distributor's average monthly tax | ||||||
21 | liability under this Act during the
preceding calendar year or | ||||||
22 | $750,000, whichever is less. The bond shall be
joint and | ||||||
23 | several and shall be in the form of a surety company bond in | ||||||
24 | such
form as the Department prescribes, or it may be in the | ||||||
25 | form of a bank
certificate of deposit or bank letter of credit.
| ||||||
26 | The bond shall be conditioned upon the distributor's payment of |
| |||||||
| |||||||
1 | the amount
of any 30-day draft which the Department accepts | ||||||
2 | from that distributor for
the delivery of stamps to that | ||||||
3 | distributor under this Act. The
distributor's failure to pay | ||||||
4 | any such draft, when due, shall also make such
distributor | ||||||
5 | automatically liable to the Department for a penalty equal to
| ||||||
6 | 25% of the amount of such draft.
| ||||||
7 | Every prior continuous compliance taxpayer shall be exempt | ||||||
8 | from all
requirements under this Section concerning the | ||||||
9 | furnishing of such bond, as
defined in this Section, as a | ||||||
10 | condition precedent to his being authorized
to engage in the | ||||||
11 | business licensed under this Act. This exemption shall
continue | ||||||
12 | for each such taxpayer until such time as he may be determined | ||||||
13 | by
the Department to be delinquent in the filing of any | ||||||
14 | returns, or is
determined by the Department (either through the | ||||||
15 | Department's issuance of a
final assessment which has become | ||||||
16 | final under the Act, or by the taxpayer's
filing of a return | ||||||
17 | which admits tax to be due that is not paid) to be
delinquent | ||||||
18 | or deficient in the paying of any tax under this Act, at which
| ||||||
19 | time that taxpayer shall become subject to the bond | ||||||
20 | requirements of this
Section and, as a condition of being | ||||||
21 | allowed to continue to engage in the
business licensed under | ||||||
22 | this Act, shall be required to furnish bond to the
Department | ||||||
23 | in such form as provided in this Section. Such taxpayer shall
| ||||||
24 | furnish such bond for a period of 2 years, after which, if the | ||||||
25 | taxpayer has
not been delinquent in the filing of any returns, | ||||||
26 | or delinquent or
deficient in the paying of any tax under this |
| |||||||
| |||||||
1 | Act, the Department may
reinstate such person as a prior | ||||||
2 | continuance compliance taxpayer. Any
taxpayer who fails to pay | ||||||
3 | an admitted or established liability under this
Act may also be | ||||||
4 | required to post bond or other acceptable security with the
| ||||||
5 | Department guaranteeing the payment of such admitted or | ||||||
6 | established liability.
| ||||||
7 | Any person aggrieved by any decision of the Department | ||||||
8 | under this
Section may, within the time allowed by law, protest | ||||||
9 | and request a hearing,
whereupon the Department shall give | ||||||
10 | notice and shall hold a hearing in
conformity with the | ||||||
11 | provisions of this Act and then issue its final
administrative | ||||||
12 | decision in the matter to such person. In the absence of
such a | ||||||
13 | protest filed within the time allowed by law, the Department's
| ||||||
14 | decision shall become final without any further determination | ||||||
15 | being made or
notice given.
| ||||||
16 | The Department shall discharge any surety and shall release | ||||||
17 | and return
any bond or security deposited, assigned, pledged, | ||||||
18 | or otherwise provided to
it by a taxpayer under this Section | ||||||
19 | within 30 days after:
| ||||||
20 | (1) such Taxpayer becomes a prior continuous | ||||||
21 | compliance taxpayer; or
| ||||||
22 | (2) such taxpayer has ceased to collect receipts on | ||||||
23 | which he is
required to remit tax to the Department, has | ||||||
24 | filed a final tax return, and
has paid to the Department an | ||||||
25 | amount sufficient to discharge his remaining
tax liability | ||||||
26 | as determined by the Department under this Act. The
|
| |||||||
| |||||||
1 | Department shall make a final determination of the | ||||||
2 | taxpayer's outstanding
tax liability as expeditiously as | ||||||
3 | possible after his final tax return has
been filed. If the | ||||||
4 | Department cannot make such final determination within
45 | ||||||
5 | days after receiving the final tax return, within such | ||||||
6 | period it shall
so notify the taxpayer, stating its reasons | ||||||
7 | therefor.
| ||||||
8 | At the time of purchasing such stamps from the Department | ||||||
9 | when purchase
is required by this Act, or at the time when the | ||||||
10 | tax which he has collected
is remitted by a distributor to the | ||||||
11 | Department without the purchase of
stamps from the Department | ||||||
12 | when that method of remitting the tax that has
been collected | ||||||
13 | is required or authorized by this Act, the distributor shall
be | ||||||
14 | allowed a discount during any year commencing July 1 and ending | ||||||
15 | the
following June 30 in accordance with the schedule set out | ||||||
16 | hereinbelow, from
the amount to be paid by him to the | ||||||
17 | Department for such stamps, or to be
paid by him to the | ||||||
18 | Department on the basis of monthly remittances (as the
case may | ||||||
19 | be), to cover the cost, to such distributor, of collecting the | ||||||
20 | tax
herein imposed by affixing such stamps to the original | ||||||
21 | packages of
cigarettes sold by such distributor or by placing | ||||||
22 | tax imprints underneath
the sealed transparent wrapper of | ||||||
23 | original packages of cigarettes sold by
such distributor (as | ||||||
24 | the case may be): (1) Prior to December 1, 1985, a
discount | ||||||
25 | equal to 1-2/3% of the amount of the tax up to and including | ||||||
26 | the
first $700,000 paid hereunder by
such distributor to the |
| |||||||
| |||||||
1 | Department during any such year; 1-1/3% of the next
$700,000 of | ||||||
2 | tax or any part thereof, paid hereunder by such distributor to
| ||||||
3 | the Department during any such year; 1% of the next $700,000 of | ||||||
4 | tax, or any
part thereof, paid hereunder by such distributor to | ||||||
5 | the Department during
any such year; and 2/3 of 1% of the | ||||||
6 | amount of any additional tax paid
hereunder by such distributor | ||||||
7 | to the Department during any such year or
(2) On and after | ||||||
8 | December 1, 1985, a discount equal to 1.75% of the
amount of | ||||||
9 | the tax payable under this Act up to and including the first
| ||||||
10 | $3,000,000 paid hereunder by such distributor to the Department | ||||||
11 | during any
such year and 1.5% of the amount of any additional | ||||||
12 | tax paid hereunder by
such distributor to the Department during | ||||||
13 | any such year.
| ||||||
14 | Two or more distributors that use a common means of | ||||||
15 | affixing revenue tax
stamps or that are owned or controlled by | ||||||
16 | the same interests shall be
treated as a single distributor for | ||||||
17 | the purpose of computing the discount.
| ||||||
18 | Cigarette manufacturers who are distributors under this | ||||||
19 | Act, and who
place their cigarettes in original packages which | ||||||
20 | are contained inside a
sealed transparent wrapper, shall be | ||||||
21 | required to remit the tax which they
are required to collect | ||||||
22 | under this Act to the Department by remitting the
amount | ||||||
23 | thereof to the Department by the 5th day of each month, | ||||||
24 | covering
cigarettes shipped or otherwise delivered to points in | ||||||
25 | Illinois to
purchasers during the preceding calendar month, but | ||||||
26 | a distributor need not
remit to the Department the tax so |
| |||||||
| |||||||
1 | collected by him from purchasers under
this Act to the extent | ||||||
2 | to which such distributor is required to remit the
tax imposed | ||||||
3 | by the Cigarette Tax Act to the Department with respect to the
| ||||||
4 | same cigarettes. All taxes upon cigarettes under this Act are a | ||||||
5 | direct tax
upon the retail consumer and shall conclusively be | ||||||
6 | presumed to be
precollected for the purpose of convenience and | ||||||
7 | facility only.
Distributors who are manufacturers of | ||||||
8 | cigarettes in original packages which
are contained inside a | ||||||
9 | sealed transparent wrapper, before delivering such
cigarettes | ||||||
10 | or causing such cigarettes to be delivered in this State to
| ||||||
11 | purchasers, shall evidence their obligation to collect and | ||||||
12 | remit the tax
due with respect to such cigarettes by imprinting | ||||||
13 | language to be prescribed
by the Department on each original | ||||||
14 | package of such cigarettes underneath
the sealed transparent | ||||||
15 | outside wrapper of such original package, in such
place thereon | ||||||
16 | and in such manner as the Department may prescribe; provided
| ||||||
17 | (as stated hereinbefore) that this requirement does not apply | ||||||
18 | when such
distributor is required or authorized by the | ||||||
19 | Cigarette Tax Act to place the
tax imprint provided for in the | ||||||
20 | last paragraph of Section 3 of that Act
underneath the sealed | ||||||
21 | transparent wrapper of such original package of
cigarettes. | ||||||
22 | Such imprinted language shall acknowledge the manufacturer's
| ||||||
23 | collection and payment of or liability for the tax imposed by | ||||||
24 | this Act with
respect to such cigarettes.
| ||||||
25 | The Department shall adopt the design or designs of the tax | ||||||
26 | stamps and
shall procure the printing of such stamps in such |
| |||||||
| |||||||
1 | amounts and denominations
as it deems necessary to provide for | ||||||
2 | the affixation of the proper amount of
tax stamps to each | ||||||
3 | original package of cigarettes.
| ||||||
4 | Where tax stamps are required, the Department may authorize | ||||||
5 | distributors
to affix revenue tax stamps by imprinting tax | ||||||
6 | meter stamps upon original
packages of cigarettes. The | ||||||
7 | Department shall adopt rules and regulations
relating to the | ||||||
8 | imprinting of such tax meter stamps as will result in
payment | ||||||
9 | of the proper taxes as herein imposed. No distributor may affix
| ||||||
10 | revenue tax stamps to original packages of cigarettes by | ||||||
11 | imprinting meter
stamps thereon unless such distributor has | ||||||
12 | first obtained permission from
the Department to employ this | ||||||
13 | method of affixation. The Department shall
regulate the use of | ||||||
14 | tax meters and may, to assure the proper collection of
the | ||||||
15 | taxes imposed by this Act, revoke or suspend the privilege, | ||||||
16 | theretofore
granted by the Department to any distributor, to | ||||||
17 | imprint tax meter stamps
upon original packages of cigarettes.
| ||||||
18 | The tax hereby imposed and not paid pursuant to this | ||||||
19 | Section shall be
paid to the Department directly by any person | ||||||
20 | using such cigarettes within
this State, pursuant to Section 12 | ||||||
21 | hereof.
| ||||||
22 | A distributor shall not affix, or cause to be affixed, any | ||||||
23 | stamp or imprint
to a package
of cigarettes, as provided for in | ||||||
24 | this Section, if the tobacco product
manufacturer, as defined | ||||||
25 | in Section 10 of the Tobacco Product Manufacturers'
Escrow
Act, | ||||||
26 | that made or sold the cigarettes has failed to become a |
| |||||||
| |||||||
1 | participating
manufacturer, as defined in subdivision (a)(1) | ||||||
2 | of Section 15 of the Tobacco
Product Manufacturers' Escrow Act, | ||||||
3 | or has failed to create a qualified escrow
fund for any | ||||||
4 | cigarettes manufactured by the tobacco
product manufacturer | ||||||
5 | and sold in this State or otherwise failed to bring itself
into
| ||||||
6 | compliance with subdivision (a)(2) of Section 15 of the Tobacco | ||||||
7 | Product
Manufacturers' Escrow Act.
| ||||||
8 | (Source: P.A. 92-322, eff. 1-1-02; 92-536, eff. 6-6-02;
92-737, | ||||||
9 | eff. 7-25-02; 93-22, eff. 6-20-03.)
| ||||||
10 | Section 99. Effective date. This Act takes effect upon | ||||||
11 | becoming law.".
|