State of Illinois
92nd General Assembly
Legislation

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92_SB0449

 
                                               LRB9204353TAtm

 1        AN ACT concerning taxes.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Tobacco  Products  Tax  Act  of  1995  is
 5    amended by changing Sections 10-5 and 10-10 as follows:

 6        (35 ILCS 143/10-5)
 7        Sec. 10-5.  Definitions. For purposes of this Act:
 8        "Business"  means  any  trade,  occupation,  activity, or
 9    enterprise engaged in for  the  purpose  of  selling  tobacco
10    products in this State.
11        "Cigarette"  has  the  meaning  ascribed  to  the term in
12    Section 1 of the Cigarette Tax Act.
13        "Correctional Industries program" means a program run  by
14    a  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.
18        "Department" means the Department of Revenue.
19        "Distributor" means any of the following:
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.
24             (2)  Any  manufacturer or wholesaler located outside
25        of Illinois engaged in the business  of  selling  tobacco
26        products  who  sells,  exchanges,  distributes, ships, or
27        transports tobacco products to retailers or consumers  in
28        this  State,  so  long as that manufacturer or wholesaler
29        has or  maintains  within  this  State,  directly  or  by
30        subsidiary,  an  office,  sales  house, or other place of
31        business, or any agent or other representative  operating
 
                            -2-                LRB9204353TAtm
 1        within  this  State  under the authority of the person or
 2        subsidiary, irrespective of whether the place of business
 3        or  agent  or  other  representative  is   located   here
 4        permanently or temporarily.
 5             (3)  Any  retailer  who receives tobacco products on
 6        which the tax has not been or will not be paid by another
 7        distributor.
 8        "Distributor"  does  not  include  any  person,  wherever
 9    resident or located, who makes, manufactures,  or  fabricates
10    tobacco products as part of a Correctional Industries program
11    for  sale  to residents incarcerated in penal institutions or
12    resident patients of a State operated mental health facility.
13        "Manufacturer" means any  person,  wherever  resident  or
14    located,  who manufactures and sells tobacco products, except
15    a person  who  makes,  manufactures,  or  fabricates  tobacco
16    products  as  a part of a Correctional Industries program for
17    sale  to  persons  incarcerated  in  penal  institutions   or
18    resident patients of a State operated mental health facility.
19        "Person" means any natural individual, firm, partnership,
20    association,  joint  stock  company,  joint  venture, limited
21    liability company, or public or private corporation,  however
22    formed,  or  a  receiver,  executor,  administrator, trustee,
23    conservator, or other representative appointed  by  order  of
24    any court.
25        "Place  of  business"  means and includes any place where
26    tobacco products are  sold  or  where  tobacco  products  are
27    manufactured,  stored,  or  kept  for  the purpose of sale or
28    consumption, including any vessel, vehicle, airplane,  train,
29    or vending machine.
30        "Retailer"  means any person in this State engaged in the
31    business of selling tobacco products  to  consumers  in  this
32    State, regardless of quantity or number of sales.
33        "Sale"  means  any  transfer,  exchange, or barter in any
34    manner or by any means whatsoever  for  a  consideration  and
 
                            -3-                LRB9204353TAtm
 1    includes all sales made by persons.
 2        "Snuff" means any finely cut, ground, or powdered tobacco
 3    that is intended to be placed in the oral cavity.
 4        "Tobacco  products"  means any cigars; cheroots; stogies;
 5    periques; granulated, plug cut, crimp cut, ready rubbed,  and
 6    other  smoking tobacco; snuff or snuff flour; cavendish; plug
 7    and twist  tobacco;  fine-cut  and  other  chewing  tobaccos;
 8    shorts;  refuse  scraps, clippings, cuttings, and sweeping of
 9    tobacco; and other kinds and forms of  tobacco,  prepared  in
10    such  manner  as  to  be suitable for chewing or smoking in a
11    pipe or otherwise, or both for chewing and smoking; but  does
12    not   include   cigarettes   or  tobacco  purchased  for  the
13    manufacture  of  cigarettes  by  cigarette  distributors  and
14    manufacturers defined in the Cigarette Tax  Act  and  persons
15    who make, manufacture, or fabricate cigarettes as a part of a
16    Correctional   Industries   program  for  sale  to  residents
17    incarcerated in penal institutions or resident patients of  a
18    State operated mental health facility.
19        "Wholesale  price"  means  the established list price for
20    which a manufacturer sells tobacco products to a distributor,
21    before  the  allowance  of  any  discount,  trade  allowance,
22    rebate, or  other  reduction.  In  the  absence  of  such  an
23    established  list  price, the manufacturer's invoice price at
24    which  the  manufacturer  sells  the   tobacco   product   to
25    unaffiliated   distributors,   before  any  discounts,  trade
26    allowances, rebates, or other reductions, shall  be  presumed
27    to be the wholesale price.
28        "Wholesaler"  means  any  person,  wherever  resident  or
29    located,  engaged in the business of selling tobacco products
30    to others for the purpose of resale.
31    (Source: P.A. 89-21, eff. 6-6-95.)

32        (35 ILCS 143/10-10)
33        Sec. 10-10.  Tax imposed. On the first day of  the  third
 
                            -4-                LRB9204353TAtm
 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  other  than  snuff,  as defined in Section
 4    10-5, at the rate of 18% of the wholesale  price  of  tobacco
 5    products  sold  or otherwise disposed of in this State. A tax
 6    is imposed on any person engaged in business as a distributor
 7    of snuff, as defined in Section 10-5, at the rate of 37 cents
 8    per ounce of snuff, with a proportionate tax at the like rate
 9    on all fractional parts of an ounce of snuff.   For  purposes
10    of  the  tax on snuff, the tax shall be computed based on the
11    net weight as listed by  the  manufacturer.  The  tax  is  in
12    addition  to  all other occupation or privilege taxes imposed
13    by the  State  of  Illinois,  by  any  political  subdivision
14    thereof,  or  by any municipal corporation.  However, the tax
15    is  not  imposed  upon  any  activity  in  that  business  in
16    interstate commerce or otherwise, to the extent to which that
17    activity may not, under the Constitution and Statutes of  the
18    United States, be made the subject of taxation by this State.
19    The  tax  is  also  not  imposed  on sales made to the United
20    States or any entity thereof.
21        All moneys received by  the  Department  under  this  Act
22    shall  be  paid  into the Long-Term Care Provider Fund of the
23    State Treasury.
24    (Source: P.A. 89-21, eff. 6-6-95.)

25        Section 99.  Effective date.  This Act  takes  effect  on
26    January 1, 2002.

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