Bill Amendment: IL HB5108 | 2023-2024 | 103rd General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: TOBACCO-REMOTE SELLERS
Status: 2024-05-31 - House Committee Amendment No. 2 Rule 19(c) / Re-referred to Rules Committee [HB5108 Detail]
Download: Illinois-2023-HB5108-House_Amendment_001.html
Bill Title: TOBACCO-REMOTE SELLERS
Status: 2024-05-31 - House Committee Amendment No. 2 Rule 19(c) / Re-referred to Rules Committee [HB5108 Detail]
Download: Illinois-2023-HB5108-House_Amendment_001.html
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1 | AMENDMENT TO HOUSE BILL 5108 | ||||||
2 | AMENDMENT NO. ______. Amend House Bill 5108 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Tobacco Products Tax Act of 1995 is | ||||||
5 | amended by changing Sections 10-5, 10-10, 10-25, 10-30, 10-35, | ||||||
6 | 10-37, 10-38, 10-45, and 10-50 and by adding Section 10-24 as | ||||||
7 | follows:
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8 | (35 ILCS 143/10-5) | ||||||
9 | Sec. 10-5. Definitions. For purposes of this Act: | ||||||
10 | "Actual cost" means the actual price paid for each | ||||||
11 | individual SKU by a distributor or a remote retail seller | ||||||
12 | before any stated discounts or rebates. | ||||||
13 | "Actual cost list" means the average actual price paid by | ||||||
14 | a distributor or a remote retail seller to a manufacturer, | ||||||
15 | wholesaler, or distributor for a SKU during the calendar year | ||||||
16 | immediately preceding the calendar year in which the sale |
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1 | occurs. | ||||||
2 | "Business" means any trade, occupation, activity, or | ||||||
3 | enterprise engaged in, at any location whatsoever, for the | ||||||
4 | purpose of selling tobacco products. | ||||||
5 | "Cigar" means any roll of tobacco wrapped in leaf tobacco | ||||||
6 | or in any substance containing tobacco. "Cigar" does not | ||||||
7 | include a little cigar or any roll of tobacco that is | ||||||
8 | classified as a cigarette within the meaning of Section 1 of | ||||||
9 | the Cigarette Tax Act. | ||||||
10 | "Cigarette" has the meaning ascribed to the term in | ||||||
11 | Section 1 of the Cigarette Tax Act. | ||||||
12 | "Contraband little cigar" means: | ||||||
13 | (1) packages of little cigars containing 20 or 25 | ||||||
14 | little cigars that do not bear a required tax stamp under | ||||||
15 | this Act; | ||||||
16 | (2) packages of little cigars containing 20 or 25 | ||||||
17 | little cigars that bear a fraudulent, imitation, or | ||||||
18 | counterfeit tax stamp; | ||||||
19 | (3) packages of little cigars containing 20 or 25 | ||||||
20 | little cigars that are improperly tax stamped, including | ||||||
21 | packages of little cigars that bear only a tax stamp of | ||||||
22 | another state or taxing jurisdiction; or | ||||||
23 | (4) packages of little cigars containing other than 20 | ||||||
24 | or 25 little cigars in the possession of a distributor, | ||||||
25 | retailer or wholesaler, unless the distributor, retailer, | ||||||
26 | or wholesaler possesses, or produces within the time frame |
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1 | provided in Section 10-27 or 10-28 of this Act, an invoice | ||||||
2 | from a stamping distributor, distributor, or wholesaler | ||||||
3 | showing that the tax on the packages has been or will be | ||||||
4 | paid. | ||||||
5 | "Consumer" means a person who acquires ownership of | ||||||
6 | tangible personal property, including tobacco products, for | ||||||
7 | use or consumption in this State and not for resale. | ||||||
8 | "Correctional Industries program" means a program run by a | ||||||
9 | State penal institution in which residents of the penal | ||||||
10 | institution produce tobacco products for sale to persons | ||||||
11 | incarcerated in penal institutions or resident patients of a | ||||||
12 | State operated mental health facility. | ||||||
13 | "Department" means the Illinois Department of Revenue. | ||||||
14 | "Distributor" means any of the following: | ||||||
15 | (1) Any manufacturer or wholesaler in this State | ||||||
16 | engaged in the business of selling tobacco products who | ||||||
17 | sells, exchanges, or distributes tobacco products to | ||||||
18 | retailers or consumers in this State. | ||||||
19 | (2) Any manufacturer or wholesaler engaged in the | ||||||
20 | business of selling tobacco products from without this | ||||||
21 | State who sells, exchanges, distributes, ships, or | ||||||
22 | transports tobacco products to retailers or consumers | ||||||
23 | located in this State, so long as that manufacturer or | ||||||
24 | wholesaler has or maintains within this State, directly or | ||||||
25 | by subsidiary, an office, sales house, or other place of | ||||||
26 | business, or any agent or other representative operating |
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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 | "Electronic cigarette" means: | ||||||
14 | (1) any device that employs a battery or other | ||||||
15 | mechanism to heat a solution or substance to produce a | ||||||
16 | vapor or aerosol intended for inhalation, except for (A) | ||||||
17 | any device designed solely for use with cannabis that | ||||||
18 | contains a statement on the retail packaging that the | ||||||
19 | device is designed solely for use with cannabis and not | ||||||
20 | for use with tobacco or (B) any device that contains a | ||||||
21 | solution or substance that contains cannabis subject to | ||||||
22 | tax under the Compassionate Use of Medical Cannabis | ||||||
23 | Program Act or the Cannabis Regulation and Tax Act; | ||||||
24 | (2) any cartridge or container of a solution or | ||||||
25 | substance intended to be used with or in the device or to | ||||||
26 | refill the device, except for any cartridge or container |
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1 | of a solution or substance that contains cannabis subject | ||||||
2 | to tax under the Compassionate Use of Medical Cannabis | ||||||
3 | Program Act or the Cannabis Regulation and Tax Act; or | ||||||
4 | (3) any solution or substance, whether or not it | ||||||
5 | contains nicotine, intended for use in the device, except | ||||||
6 | for any solution or substance that contains cannabis | ||||||
7 | subject to tax under the Compassionate Use of Medical | ||||||
8 | Cannabis Program Act or the Cannabis Regulation and Tax | ||||||
9 | Act. | ||||||
10 | The changes made to the definition of "electronic | ||||||
11 | cigarette" by this amendatory Act of the 102nd General | ||||||
12 | Assembly apply on and after June 28, 2019, but no claim for | ||||||
13 | credit or refund is allowed on or after the effective date of | ||||||
14 | this amendatory Act of the 102nd General Assembly for such | ||||||
15 | taxes paid during the period beginning June 28, 2019 and the | ||||||
16 | effective date of this amendatory Act of the 102nd General | ||||||
17 | Assembly. | ||||||
18 | "Electronic cigarette" includes, but is not limited to, | ||||||
19 | any electronic nicotine delivery system, electronic cigar, | ||||||
20 | electronic cigarillo, electronic pipe, electronic hookah, vape | ||||||
21 | pen, or similar product or device, and any component or part | ||||||
22 | that can be used to build the product or device. "Electronic | ||||||
23 | cigarette" does not include: cigarettes, as defined in Section | ||||||
24 | 1 of the Cigarette Tax Act; any product approved by the United | ||||||
25 | States Food and Drug Administration for sale as a tobacco | ||||||
26 | cessation product, a tobacco dependence product, or for other |
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1 | medical purposes that is marketed and sold solely for that | ||||||
2 | approved purpose; any asthma inhaler prescribed by a physician | ||||||
3 | for that condition that is marketed and sold solely for that | ||||||
4 | approved purpose; or any therapeutic product approved for use | ||||||
5 | under the Compassionate Use of Medical Cannabis Program Act. | ||||||
6 | "Little cigar" means and includes any roll, made wholly or | ||||||
7 | in part of tobacco, where such roll has an integrated | ||||||
8 | cellulose acetate filter and weighs less than 4 pounds per | ||||||
9 | thousand and the wrapper or cover of which is made in whole or | ||||||
10 | in part of tobacco. | ||||||
11 | "Manufacturer" means any person, wherever resident or | ||||||
12 | located, who manufactures and sells tobacco products, except a | ||||||
13 | person who makes, manufactures, or fabricates tobacco products | ||||||
14 | as a part of a Correctional Industries program for sale to | ||||||
15 | persons incarcerated in penal institutions or resident | ||||||
16 | patients of a State operated mental health facility. | ||||||
17 | Beginning on January 1, 2013, "moist snuff" means any | ||||||
18 | finely cut, ground, or powdered tobacco that is not intended | ||||||
19 | to be smoked, but shall not include any finely cut, ground, or | ||||||
20 | powdered tobacco that is intended to be placed in the nasal | ||||||
21 | cavity. | ||||||
22 | "Person" means any natural individual, firm, partnership, | ||||||
23 | association, joint stock company, joint venture, limited | ||||||
24 | liability company, or public or private corporation, however | ||||||
25 | formed, or a receiver, executor, administrator, trustee, | ||||||
26 | conservator, or other representative appointed by order of any |
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1 | court. | ||||||
2 | "Pipe tobacco" means any tobacco that, because of its | ||||||
3 | appearance, type, packaging, or labeling, is suitable for use | ||||||
4 | in a pipe and is likely to be offered to or purchased by a | ||||||
5 | consumer as tobacco to be smoked in a pipe. | ||||||
6 | "Place of business" means and includes any place where | ||||||
7 | tobacco products are sold or where tobacco products are | ||||||
8 | manufactured, stored, or kept for the purpose of sale or | ||||||
9 | consumption, including any vessel, vehicle, airplane, train, | ||||||
10 | or vending machine. | ||||||
11 | "Remote retail sale" means a sale by a remote retail | ||||||
12 | seller of cigars or pipe tobacco to a consumer in this State | ||||||
13 | when: | ||||||
14 | (1) the buyer submits the order for the sale by means | ||||||
15 | of a telephone or other method of voice transmission, by | ||||||
16 | first class mail, or by using the Internet or other online | ||||||
17 | service, or if the seller is otherwise not in the physical | ||||||
18 | presence of the buyer when the request for purchase or | ||||||
19 | order is made; or | ||||||
20 | (2) the cigars or pipe tobacco are delivered to the | ||||||
21 | buyer by common carrier, private delivery service, or | ||||||
22 | other method of remote delivery, or the seller is not in | ||||||
23 | the physical presence of the buyer when the buyer obtains | ||||||
24 | possession of the cigars or pipe tobacco. | ||||||
25 | "Remote retail seller" means a person located outside of | ||||||
26 | this State who makes remote retail sales of cigars or pipe |
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1 | tobacco, so long as that person does not maintain within this | ||||||
2 | State, directly or by a subsidiary, an office, distribution | ||||||
3 | house, sales house, warehouse, or other place of business, or | ||||||
4 | any agent or other representative operating within this State | ||||||
5 | under the authority of the person or its subsidiary, | ||||||
6 | irrespective of whether the place of business or the agent is | ||||||
7 | located here permanently or temporarily or whether the person | ||||||
8 | or subsidiary is licensed to do business in this State. | ||||||
9 | "Retailer" means any person in this State engaged in the | ||||||
10 | business of selling tobacco products to consumers in this | ||||||
11 | State, regardless of quantity or number of sales. | ||||||
12 | "Sale" means any transfer, exchange, or barter in any | ||||||
13 | manner or by any means whatsoever for a consideration and | ||||||
14 | includes all sales made by persons. | ||||||
15 | "Stamp" or "stamps" mean the indicia required to be | ||||||
16 | affixed on a package of little cigars that evidence payment of | ||||||
17 | the tax on packages of little cigars containing 20 or 25 little | ||||||
18 | cigars under Section 10-10 of this Act. These stamps shall be | ||||||
19 | the same stamps used for cigarettes under the Cigarette Tax | ||||||
20 | Act. | ||||||
21 | "Stamping distributor" means a distributor licensed under | ||||||
22 | this Act and also licensed as a distributor under the | ||||||
23 | Cigarette Tax Act or Cigarette Use Tax Act. | ||||||
24 | "Stock keeping unit" or "SKU" means the unique identifier | ||||||
25 | assigned by a manufacturer, distributor, or remote retail | ||||||
26 | seller to various tobacco products in order to track |
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1 | inventory. | ||||||
2 | "Tobacco products" means any cigars, including little | ||||||
3 | cigars; cheroots; stogies; periques; granulated, plug cut, | ||||||
4 | crimp cut, ready rubbed, and other smoking tobacco; snuff | ||||||
5 | (including moist snuff) or snuff flour; cavendish; plug and | ||||||
6 | twist tobacco; fine-cut and other chewing tobaccos; shorts; | ||||||
7 | refuse scraps, clippings, cuttings, and sweeping of tobacco; | ||||||
8 | and other kinds and forms of tobacco, prepared in such manner | ||||||
9 | as to be suitable for chewing or smoking in a pipe or | ||||||
10 | otherwise, or both for chewing and smoking; but does not | ||||||
11 | include cigarettes as defined in Section 1 of the Cigarette | ||||||
12 | Tax Act or tobacco purchased for the manufacture of cigarettes | ||||||
13 | by cigarette distributors and manufacturers defined in the | ||||||
14 | Cigarette Tax Act and persons who make, manufacture, or | ||||||
15 | fabricate cigarettes as a part of a Correctional Industries | ||||||
16 | program for sale to residents incarcerated in penal | ||||||
17 | institutions or resident patients of a State operated mental | ||||||
18 | health facility. | ||||||
19 | Beginning on July 1, 2019, "tobacco products" also | ||||||
20 | includes electronic cigarettes. | ||||||
21 | "Wholesale price" means the established list price for | ||||||
22 | which a manufacturer sells tobacco products to a distributor, | ||||||
23 | before the allowance of any discount, trade allowance, rebate, | ||||||
24 | or other reduction. In the absence of such an established list | ||||||
25 | price, the manufacturer's invoice price at which the | ||||||
26 | manufacturer sells the tobacco product to unaffiliated |
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1 | distributors, before any discounts, trade allowances, rebates, | ||||||
2 | or other reductions, shall be presumed to be the wholesale | ||||||
3 | price. | ||||||
4 | "Wholesaler" means any person, wherever resident or | ||||||
5 | located, engaged in the business of selling tobacco products | ||||||
6 | to others for the purpose of resale. "Wholesaler", when used | ||||||
7 | in this Act, does not include a person licensed as a | ||||||
8 | distributor under Section 10-20 of this Act unless expressly | ||||||
9 | stated in this Act. | ||||||
10 | (Source: P.A. 101-31, eff. 6-28-19; 101-593, eff. 12-4-19; | ||||||
11 | 102-40, eff. 6-25-21.)
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12 | (35 ILCS 143/10-10) | ||||||
13 | Sec. 10-10. Tax imposed. | ||||||
14 | (a) Except as otherwise provided in this Section with | ||||||
15 | respect to little cigars, on the first day of the third month | ||||||
16 | after the month in which this Act becomes law, a tax is imposed | ||||||
17 | on any person engaged in business as a distributor of tobacco | ||||||
18 | products, as defined in Section 10-5, at the rate of : | ||||||
19 | (1) (i) 18% of the wholesale price of tobacco | ||||||
20 | products sold or otherwise disposed of to retailers or | ||||||
21 | consumers located in this State prior to July 1, 2012 ; | ||||||
22 | (2) and (ii) 36% of the wholesale price of tobacco | ||||||
23 | products sold or otherwise disposed of to retailers or | ||||||
24 | consumers located in this State beginning on July 1, 2012 | ||||||
25 | and before January 1, 2025; and |
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1 | (3) beginning on January 1, 2025, 36% of: | ||||||
2 | (A) the actual cost paid by a distributor or | ||||||
3 | remote retail seller for the stock keeping unit sold | ||||||
4 | or otherwise disposed of to a retailer or consumer in | ||||||
5 | the State; or | ||||||
6 | (B) if documentation of the actual cost paid | ||||||
7 | by a distributor or remote retail seller is not | ||||||
8 | available due to matters beyond the distributor or | ||||||
9 | remote retail seller's control, the actual cost list | ||||||
10 | paid by a distributor or remote retail seller for the | ||||||
11 | stock keeping unit sold or otherwise disposed of to | ||||||
12 | retailers or consumers located in this State for which | ||||||
13 | documentation is not available. ; except that, | ||||||
14 | beginning | ||||||
15 | Notwithstanding the provisions of this subsection (a), | ||||||
16 | beginning on January 1, 2013, the tax on moist snuff shall be | ||||||
17 | imposed at a rate of $0.30 per ounce, and a proportionate tax | ||||||
18 | at the like rate on all fractional parts of an ounce, sold or | ||||||
19 | otherwise disposed of to retailers or consumers located in | ||||||
20 | this State . Notwithstanding the provisions of subsection (a), | ||||||
21 | beginning on ; and except that, beginning July 1, 2019, the tax | ||||||
22 | on electronic cigarettes shall be imposed at the rate of 15% of | ||||||
23 | the wholesale price of electronic cigarettes sold or otherwise | ||||||
24 | disposed of to retailers or consumers located in this State. | ||||||
25 | The tax imposed under this subsection (a) is in addition | ||||||
26 | to all other occupation or privilege taxes imposed by the |
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1 | State of Illinois, by any political subdivision thereof, or by | ||||||
2 | any municipal corporation. However, the tax is not imposed | ||||||
3 | upon any activity in that business in interstate commerce or | ||||||
4 | otherwise, to the extent to which that activity may not, under | ||||||
5 | the Constitution and Statutes of the United States, be made | ||||||
6 | the subject of taxation by this State, and except that, | ||||||
7 | beginning July 1, 2013, the tax on little cigars shall be | ||||||
8 | imposed at the same rate, and the proceeds shall be | ||||||
9 | distributed in the same manner, as the tax imposed on | ||||||
10 | cigarettes under the Cigarette Tax Act. The tax is also not | ||||||
11 | imposed on sales made to the United States or any entity | ||||||
12 | thereof. | ||||||
13 | If the Department determines that the actual cost list for | ||||||
14 | a SKU is not indicative of the actual cost paid for the SKU, | ||||||
15 | then the Department may determine the distributor's or remote | ||||||
16 | retail seller's tax liability for the SKU based on the | ||||||
17 | distributor's or remote retail seller's books and records or | ||||||
18 | from information on invoices obtained from the distributor's | ||||||
19 | or remote retail seller's suppliers. | ||||||
20 | (a-5) Beginning January 1, 2025, the tax imposed under | ||||||
21 | subsection (a) is also imposed upon persons who are engaged in | ||||||
22 | business as remote retail sellers of cigars and pipe tobacco | ||||||
23 | and who make sales to Illinois consumers on which the tax has | ||||||
24 | not been paid by a distributor, if: | ||||||
25 | (1) the cumulative gross receipts of the remote retail | ||||||
26 | seller from sales of tangible personal property to |
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1 | consumers in this State are $100,000 or more; or | ||||||
2 | (2) the remote retail seller enters into 200 or more | ||||||
3 | separate transactions for the sale of tangible personal | ||||||
4 | property to consumers in this State. | ||||||
5 | A remote retail seller that meets or exceeds the threshold | ||||||
6 | in either paragraph (1) or (2) of this subsection shall be | ||||||
7 | liable for taxes imposed by this Act on all sales made by that | ||||||
8 | remote retail seller of taxable products under this Act to | ||||||
9 | Illinois consumers on which the tax has not been paid by a | ||||||
10 | distributor. | ||||||
11 | The remote retail seller shall determine on a quarterly | ||||||
12 | basis, ending on the last day of March, June, September, and | ||||||
13 | December, whether it meets the criteria of either paragraph | ||||||
14 | (1) or (2) of this subsection for the preceding 12-month | ||||||
15 | period. If the remote retail seller meets the criteria of | ||||||
16 | either paragraph (1) or (2) for a 12-month period, then the | ||||||
17 | remote retail seller is considered to be engaged in business | ||||||
18 | as a remote retail seller in this State and is required to | ||||||
19 | collect and remit the tax imposed under this Act and to file | ||||||
20 | all applicable returns for the next 12-month period. At the | ||||||
21 | end of that 12-month period, the remote retail seller shall | ||||||
22 | determine whether the remote retail seller met the criteria of | ||||||
23 | either paragraph (1) or (2) for the preceding 12-month period. | ||||||
24 | If the remote retail seller met the criteria in either | ||||||
25 | paragraph (1) or (2) for the preceding 12-month period, the | ||||||
26 | remote retail seller is considered to be engaged in business |
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1 | as a remote retail seller in this State and is required to | ||||||
2 | collect and remit the tax imposed under this Act and file | ||||||
3 | returns for the subsequent year. If, at the end of a one-year | ||||||
4 | period, a remote retail seller that was required to collect | ||||||
5 | and remit the tax imposed under this Act determines that the | ||||||
6 | remote retail seller did not meet the criteria in either | ||||||
7 | paragraph (1) or (2) during the preceding 12-month period, | ||||||
8 | then the remote retail seller shall certify to the Department, | ||||||
9 | in the form and manner required by the Department, that the | ||||||
10 | remote retail seller did not meet the criteria in either | ||||||
11 | paragraph (1) or (2) during the preceding 12-month period and | ||||||
12 | shall subsequently determine on a quarterly basis, ending on | ||||||
13 | the last day of March, June, September, and December, whether | ||||||
14 | the remote retail seller meets the criteria of either | ||||||
15 | paragraph (1) or (2) for the preceding 12-month period. | ||||||
16 | (b) Notwithstanding subsection (a) of this Section, | ||||||
17 | stamping distributors of packages of little cigars containing | ||||||
18 | 20 or 25 little cigars sold or otherwise disposed of in this | ||||||
19 | State shall remit the tax by purchasing tax stamps from the | ||||||
20 | Department and affixing them to packages of little cigars in | ||||||
21 | the same manner as stamps are purchased and affixed to | ||||||
22 | cigarettes under the Cigarette Tax Act, unless the stamping | ||||||
23 | distributor sells or otherwise disposes of those packages of | ||||||
24 | little cigars to another stamping distributor. Only persons | ||||||
25 | meeting the definition of "stamping distributor" contained in | ||||||
26 | Section 10-5 of this Act may affix stamps to packages of little |
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1 | cigars containing 20 or 25 little cigars. Stamping | ||||||
2 | distributors may not sell or dispose of little cigars at | ||||||
3 | retail to consumers or users at locations where stamping | ||||||
4 | distributors affix stamps to packages of little cigars | ||||||
5 | containing 20 or 25 little cigars. | ||||||
6 | (c) The impact of the tax levied by this Act is imposed | ||||||
7 | upon distributors engaged in the business of selling tobacco | ||||||
8 | products to retailers or consumers in this State. Beginning | ||||||
9 | January 1, 2025, the impact of the tax levied by this Act is | ||||||
10 | also imposed upon remote retail sellers that meet the criteria | ||||||
11 | in subsection (a-5) of this Section. A remote retail seller | ||||||
12 | shall pay the tax on all sales of cigars and pipe tobacco to | ||||||
13 | consumers in this State on which the tax has not been paid by a | ||||||
14 | distributor. Whenever a stamping distributor brings or causes | ||||||
15 | to be brought into this State from without this State, or | ||||||
16 | purchases from without or within this State, any packages of | ||||||
17 | little cigars containing 20 or 25 little cigars upon which | ||||||
18 | there are no tax stamps affixed as required by this Act, for | ||||||
19 | purposes of resale or disposal in this State to a person not a | ||||||
20 | stamping distributor, then such stamping distributor shall pay | ||||||
21 | the tax to the Department and add the amount of the tax to the | ||||||
22 | price of such packages sold by such stamping distributor. | ||||||
23 | Payment of the tax shall be evidenced by a stamp or stamps | ||||||
24 | affixed to each package of little cigars containing 20 or 25 | ||||||
25 | little cigars. | ||||||
26 | Stamping distributors paying the tax to the Department on |
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1 | packages of little cigars containing 20 or 25 little cigars | ||||||
2 | sold to other distributors, wholesalers or retailers shall add | ||||||
3 | the amount of the tax to the price of the packages of little | ||||||
4 | cigars containing 20 or 25 little cigars sold by such stamping | ||||||
5 | distributors. | ||||||
6 | (d) Beginning on January 1, 2013, the tax rate imposed per | ||||||
7 | ounce of moist snuff may not exceed 15% of the tax imposed upon | ||||||
8 | a package of 20 cigarettes pursuant to the Cigarette Tax Act. | ||||||
9 | (d-5) Notwithstanding any other provisions of this Section | ||||||
10 | to the contrary, beginning January 1, 2025, and continuing | ||||||
11 | through December 31, 2027, the tax per cigar sold or otherwise | ||||||
12 | disposed of shall not exceed $1 per cigar. This subsection | ||||||
13 | shall not apply to little cigars. | ||||||
14 | (e) All moneys received by the Department under this Act | ||||||
15 | from sales occurring prior to July 1, 2012 shall be paid into | ||||||
16 | the Long-Term Care Provider Fund of the State Treasury. Of the | ||||||
17 | moneys received by the Department from sales occurring on or | ||||||
18 | after July 1, 2012, except for moneys received from the tax | ||||||
19 | imposed on the sale of little cigars, 50% shall be paid into | ||||||
20 | the Long-Term Care Provider Fund and 50% shall be paid into the | ||||||
21 | Healthcare Provider Relief Fund. Beginning July 1, 2013, all | ||||||
22 | moneys received by the Department under this Act from the tax | ||||||
23 | imposed on little cigars shall be distributed as provided in | ||||||
24 | Section 2 of the Cigarette Tax Act. | ||||||
25 | (Source: P.A. 101-31, eff. 6-28-19.)
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1 | (35 ILCS 143/10-24 new) | ||||||
2 | Sec. 10-24. Remote retail seller's license. Beginning on | ||||||
3 | January 1, 2025, it shall be unlawful for any person who meets | ||||||
4 | the criteria established in subsection (a-5) of Section 10-10 | ||||||
5 | to engage in business as a remote retail seller within the | ||||||
6 | meaning of this Act without first having obtained a license to | ||||||
7 | do so from the Department. Application for that license shall | ||||||
8 | be made to the Department, by electronic means, in a form | ||||||
9 | prescribed by the Department. Each applicant for a license | ||||||
10 | shall furnish to the Department, in an electronic format | ||||||
11 | established by the Department, the following information: | ||||||
12 | (1) the name and address of the applicant; | ||||||
13 | (2) the address of the location at which the applicant | ||||||
14 | proposes to engage in business as a remote retail seller | ||||||
15 | outside this State; and | ||||||
16 | (3) such other additional information as the | ||||||
17 | Department may lawfully require by rule. | ||||||
18 | Beginning on January 1, 2025, in addition to obtaining a | ||||||
19 | license to engage in business as a remote retail seller in this | ||||||
20 | State, no remote retail seller who meets the criteria | ||||||
21 | established in subsection (a-5) of Section 10-10 may engage in | ||||||
22 | business as a remote retail seller within the meaning of this | ||||||
23 | Act without registering under the Retailers' Occupation Tax | ||||||
24 | Act pursuant to Section 2a of that Act. | ||||||
25 | A separate annual license shall be obtained for each place | ||||||
26 | of business at which a person who is required to procure a |
| |||||||
| |||||||
1 | remote retail seller's license under this Section proposes to | ||||||
2 | engage in business as a remote retail seller in Illinois under | ||||||
3 | this Act. All licenses issued by the Department under this | ||||||
4 | Section shall be valid for a period not to exceed one year | ||||||
5 | after issuance unless sooner revoked, canceled, or suspended | ||||||
6 | as provided in this Act. All licenses must be renewed on an | ||||||
7 | annual basis. An application submitted by a remote retail | ||||||
8 | seller shall include an acknowledgement consenting to the | ||||||
9 | jurisdiction of the Department and the courts of this State | ||||||
10 | concerning the enforcement of this Act and any related laws, | ||||||
11 | rules, and regulations, including authorizing the Department | ||||||
12 | of Revenue to conduct inspections and audits for the purpose | ||||||
13 | of ensuring compliance with this Act and to issue penalties | ||||||
14 | for violations of this Act. | ||||||
15 | Each remote retail seller must perform age verification | ||||||
16 | through an independent, third-party age verification service | ||||||
17 | that compares information available from a commercially | ||||||
18 | available database, or aggregate of databases, that are | ||||||
19 | regularly used by government agencies and businesses for the | ||||||
20 | purpose of age and identity verification to the personal | ||||||
21 | information entered by the individual during the ordering | ||||||
22 | process that establishes that the individual is of age. | ||||||
23 | If the provisions of subsection (a-5) of Section 10-10 are | ||||||
24 | met, and the tax imposed under this Act is being remitted using | ||||||
25 | the actual cost list method to calculate the tax, each remote | ||||||
26 | retail seller must provide the remote retail sellers's |
| |||||||
| |||||||
1 | certified actual cost list to the Department for each SKU to be | ||||||
2 | offered for remote retail sale in the subsequent calendar | ||||||
3 | year. The actual cost list shall be updated by the remote | ||||||
4 | retail seller quarterly as new SKUs are added to the remote | ||||||
5 | retail seller's inventory. New SKUs will be added using the | ||||||
6 | actual cost first paid for the SKU. | ||||||
7 | The following are ineligible to receive a remote retail | ||||||
8 | seller's license under this Act: | ||||||
9 | (1) a person who has been convicted of a felony under | ||||||
10 | any federal or State law for smuggling cigarettes or | ||||||
11 | tobacco products or tobacco tax evasion, if the | ||||||
12 | Department, after investigation and a hearing if requested | ||||||
13 | by the applicant, determines that such person has not been | ||||||
14 | sufficiently rehabilitated to warrant the public trust; | ||||||
15 | (2) a corporation, if any officer, manager or director | ||||||
16 | thereof, or any stockholder or stockholders owning in the | ||||||
17 | aggregate more than 5% of the stock of such corporation, | ||||||
18 | would not be eligible to receive a license under this Act | ||||||
19 | for any reason; and | ||||||
20 | (3) any person who is in default to the State of | ||||||
21 | Illinois for moneys due under this Act or any other tax Act | ||||||
22 | administered by the Department. | ||||||
23 | The Department, upon receipt of an application, in proper | ||||||
24 | form, from a person who is eligible to receive a remote retail | ||||||
25 | seller's license under this Act, shall issue to such applicant | ||||||
26 | a license in form as prescribed by the Department, which |
| |||||||
| |||||||
1 | license shall permit the applicant to which it is issued to | ||||||
2 | engage in business as a remote retail seller under this Act at | ||||||
3 | the place shown in the remote retail seller's application. All | ||||||
4 | licenses issued by the Department under this Section shall be | ||||||
5 | valid for a period not to exceed one year after issuance unless | ||||||
6 | sooner revoked, canceled or suspended as provided in this Act. | ||||||
7 | No license issued under this Section is transferable or | ||||||
8 | assignable. A person who obtains a license as a retailer who | ||||||
9 | ceases to do business as specified in the license, or who never | ||||||
10 | commenced business, or whose license is suspended or revoked, | ||||||
11 | shall immediately surrender the license to the Department. | ||||||
12 | The Department may, in its discretion, upon application, | ||||||
13 | authorize the payment of the tax imposed under Section 10-10 | ||||||
14 | by any remote retail seller not otherwise subject to the tax | ||||||
15 | imposed under this Act who, to the satisfaction of the | ||||||
16 | Department, furnishes adequate security to ensure payment of | ||||||
17 | the tax. The remote retail seller shall be issued, without | ||||||
18 | charge, a license to remit the tax. When so authorized, it | ||||||
19 | shall be the duty of the remote retail seller to remit the tax | ||||||
20 | imposed upon the actual cost or actual cost list price of the | ||||||
21 | cigars or pipe tobacco sold or otherwise disposed of to | ||||||
22 | consumers located in this State, in the same manner and | ||||||
23 | subject to the same requirements as any other remote retail | ||||||
24 | seller required to be licensed under this Act. It shall be the | ||||||
25 | duty of the remote retail seller to remit the tax imposed upon | ||||||
26 | the actual cost or actual cost list price of cigar or pipe |
| |||||||
| |||||||
1 | tobacco, sold or otherwise disposed of to consumers located in | ||||||
2 | this State, in the same manner and subject to the same | ||||||
3 | requirements as any other remote retail seller required to be | ||||||
4 | licensed under this Act. | ||||||
5 | Any person aggrieved by any decision of the Department | ||||||
6 | under this Section may, within 30 days after notice of the | ||||||
7 | decision, protest and request a hearing. Upon receiving a | ||||||
8 | request for a hearing, the Department shall give notice to the | ||||||
9 | person requesting the hearing of the time and place fixed for | ||||||
10 | the hearing 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 that person. In the absence of a | ||||||
13 | protest and request for a hearing within 30 days, the | ||||||
14 | Department's decision shall become final without any further | ||||||
15 | determination being made or notice given.
| ||||||
16 | (35 ILCS 143/10-25) | ||||||
17 | Sec. 10-25. License actions. | ||||||
18 | (a) The Department may, after notice and a hearing, | ||||||
19 | revoke, cancel, or suspend the license of any distributor , or | ||||||
20 | retailer , or remote retail seller who violates any of the | ||||||
21 | provisions of this Act, fails to keep books and records as | ||||||
22 | required under this Act, fails to make books and records | ||||||
23 | available for inspection upon demand by a duly authorized | ||||||
24 | employee of the Department, or violates a rule or regulation | ||||||
25 | of the Department for the administration and enforcement of |
| |||||||
| |||||||
1 | this Act. The notice shall specify the alleged violation or | ||||||
2 | violations upon which the revocation, cancellation, or | ||||||
3 | suspension proceeding is based. | ||||||
4 | (a-5) The Department may, after notice and a hearing, | ||||||
5 | revoke, cancel, or suspend the license of a distributor or | ||||||
6 | remote retail seller that fails to properly register and remit | ||||||
7 | tax under the Retailers' Occupation Tax Act for all tobacco | ||||||
8 | products that are sold to consumers in this State. | ||||||
9 | (a-10) The Department may, after notice and a hearing, | ||||||
10 | revoke, cancel, or suspend the license of a distributor or | ||||||
11 | remote retail seller who is found in violation of any law, | ||||||
12 | rule, or regulation of the state where the business is located | ||||||
13 | as listed on the license issued by the Department. The notice | ||||||
14 | shall specify the alleged violation or violations upon which | ||||||
15 | the revocation, cancellation, or suspension proceeding is | ||||||
16 | based. | ||||||
17 | (b) The Department may revoke, cancel, or suspend the | ||||||
18 | license of any distributor for a violation of the Tobacco | ||||||
19 | Product Manufacturers' Escrow Enforcement Act as provided in | ||||||
20 | Section 20 of that Act. | ||||||
21 | (c) If the retailer has a training program that | ||||||
22 | facilitates compliance with minimum-age tobacco laws, the | ||||||
23 | Department shall suspend for 3 days the license of that | ||||||
24 | retailer for a fourth or subsequent violation of the | ||||||
25 | Prevention of Tobacco Use by Persons under 21 Years of Age and | ||||||
26 | Sale and Distribution of Tobacco Products Act, as provided in |
| |||||||
| |||||||
1 | subsection (a) of Section 2 of that Act. For the purposes of | ||||||
2 | this Section, any violation of subsection (a) of Section 2 of | ||||||
3 | the Prevention of Tobacco Use by Persons under 21 Years of Age | ||||||
4 | and Sale and Distribution of Tobacco Products Act occurring at | ||||||
5 | the retailer's licensed location, during a 24-month period, | ||||||
6 | shall be counted as a violation against the retailer. | ||||||
7 | If the retailer does not have a training program that | ||||||
8 | facilitates compliance with minimum-age tobacco laws, the | ||||||
9 | Department shall suspend for 3 days the license of that | ||||||
10 | retailer for a second violation of the Prevention of Tobacco | ||||||
11 | Use by Persons under 21 Years of Age and Sale and Distribution | ||||||
12 | of Tobacco Products Act, as provided in subsection (a-5) of | ||||||
13 | Section 2 of that Act. | ||||||
14 | If the retailer does not have a training program that | ||||||
15 | facilitates compliance with minimum-age tobacco laws, the | ||||||
16 | Department shall suspend for 7 days the license of that | ||||||
17 | retailer for a third violation of the Prevention of Tobacco | ||||||
18 | Use by Persons under 21 Years of Age and Sale and Distribution | ||||||
19 | of Tobacco Products Act, as provided in subsection (a-5) of | ||||||
20 | Section 2 of that Act. | ||||||
21 | If the retailer does not have a training program that | ||||||
22 | facilitates compliance with minimum-age tobacco laws, the | ||||||
23 | Department shall suspend for 30 days the license of a retailer | ||||||
24 | for a fourth or subsequent violation of the Prevention of | ||||||
25 | Tobacco Use by Persons under 21 Years of Age and Sale and | ||||||
26 | Distribution of Tobacco Products Act, as provided in |
| |||||||
| |||||||
1 | subsection (a-5) of Section 2 of that Act. | ||||||
2 | A training program that facilitates compliance with | ||||||
3 | minimum-age tobacco laws must include at least the following | ||||||
4 | elements: (i) it must explain that only individuals displaying | ||||||
5 | valid identification demonstrating that they are 21 years of | ||||||
6 | age or older shall be eligible to purchase cigarettes or | ||||||
7 | tobacco products and (ii) it must explain where a clerk can | ||||||
8 | check identification for a date of birth. The training may be | ||||||
9 | conducted electronically. Each retailer that has a training | ||||||
10 | program shall require each employee who completes the training | ||||||
11 | program to sign a form attesting that the employee has | ||||||
12 | received and completed tobacco training. The form shall be | ||||||
13 | kept in the employee's file and may be used to provide proof of | ||||||
14 | training. | ||||||
15 | (d) The Department may, by application to any circuit | ||||||
16 | court, obtain an injunction restraining any person who engages | ||||||
17 | in business as a distributor or remote retailer of tobacco | ||||||
18 | products without a license (either because the his or her | ||||||
19 | license has been revoked, canceled, or suspended or because of | ||||||
20 | a failure to obtain a license in the first instance) from | ||||||
21 | engaging in that business until that person, as if that person | ||||||
22 | were a new applicant for a license, complies with all of the | ||||||
23 | conditions, restrictions, and requirements of Section 10-20 or | ||||||
24 | Section 10-24 of this Act and qualifies for and obtains a | ||||||
25 | license. Refusal or neglect to obey the order of the court may | ||||||
26 | result in punishment for contempt. |
| |||||||
| |||||||
1 | (Source: P.A. 100-940, eff. 8-17-18; 101-2, eff. 7-1-19 .)
| ||||||
2 | (35 ILCS 143/10-30) | ||||||
3 | Sec. 10-30. Returns. | ||||||
4 | (a) Every distributor shall, on or before the 15th day of | ||||||
5 | each month, file a return with the Department covering the | ||||||
6 | preceding calendar month. The return shall disclose the | ||||||
7 | wholesale price , or beginning on January 1, 2025, the actual | ||||||
8 | cost or actual cost list price for all tobacco products other | ||||||
9 | than electronic cigarettes, little cigars or moist snuff and | ||||||
10 | the quantity in ounces of moist snuff sold or otherwise | ||||||
11 | disposed of and other information that the Department may | ||||||
12 | reasonably require. The return shall be filed upon a form | ||||||
13 | prescribed and furnished by the Department. | ||||||
14 | (a-5) Beginning February 1, 2025, every remote retail | ||||||
15 | seller shall, on or before the 15th day of each month, file a | ||||||
16 | return with the Department covering the preceding calendar | ||||||
17 | month. The remote retail seller's return must report all | ||||||
18 | cigars or pipe tobacco brought in or caused to be brought in | ||||||
19 | from outside the State or shipped or transported to consumers | ||||||
20 | within the State during the preceding calendar month. The | ||||||
21 | return must include further information as the Department may | ||||||
22 | prescribe and must show the total actual cost or actual cost | ||||||
23 | list price paid by a remote retail seller for a stock keeping | ||||||
24 | unit for the previous calendar month. The return must show the | ||||||
25 | amount of tax due for all remote retail sales made from outside |
| |||||||
| |||||||
1 | the State, to a consumer within the State during the preceding | ||||||
2 | calendar month. It is the intent and purpose of this | ||||||
3 | amendatory Act of the 103rd General Assembly that the remote | ||||||
4 | retail seller remit the tax at the time the return is filed. It | ||||||
5 | is further the intent and purpose of this amendatory Act of the | ||||||
6 | 103rd General Assembly to impose the tax under this Act only | ||||||
7 | once on all tobacco products, including cigars and pipe | ||||||
8 | tobacco, sold in the State. | ||||||
9 | (b) In addition to the information required under | ||||||
10 | subsection (a), on or before the 15th day of each month, | ||||||
11 | covering the preceding calendar month, each stamping | ||||||
12 | distributor shall, on forms prescribed and furnished by the | ||||||
13 | Department, report the quantity of little cigars sold or | ||||||
14 | otherwise disposed of, including the number of packages of | ||||||
15 | little cigars sold or disposed of during the month containing | ||||||
16 | 20 or 25 little cigars. | ||||||
17 | (c) At the time when any return of any distributor or | ||||||
18 | remote retail seller is due to be filed with the Department, | ||||||
19 | the distributor shall also remit to the Department the tax | ||||||
20 | liability that the distributor or remote retail seller has | ||||||
21 | incurred for transactions occurring in the preceding calendar | ||||||
22 | month. Starting January 1, 2025, the distributor or remote | ||||||
23 | remote retail seller shall remit the tax liability, less a | ||||||
24 | discount of 1.75%, not to exceed $1,000 per month, which is | ||||||
25 | allowed to reimburse the distributor or remote retail seller | ||||||
26 | for the expenses incurred in keeping records, preparing and |
| |||||||
| |||||||
1 | filing returns, remitting the tax, and supplying data to the | ||||||
2 | Department on request. No discount may be claimed by a | ||||||
3 | taxpayer on returns not timely filed and for taxes not timely | ||||||
4 | remitted. No discount may be claimed by a taxpayer for any | ||||||
5 | return that is not filed electronically. | ||||||
6 | (d) The Department may adopt rules to require the | ||||||
7 | electronic filing of any return or document required to be | ||||||
8 | filed under this Act. Those rules may provide for exceptions | ||||||
9 | from the filing requirement set forth in this paragraph for | ||||||
10 | persons who demonstrate that they do not have access to the | ||||||
11 | Internet and petition the Department to waive the electronic | ||||||
12 | filing requirement. | ||||||
13 | (e) If any payment provided for in this Section exceeds | ||||||
14 | the distributor's liabilities under this Act, as shown on an | ||||||
15 | original return, the distributor may credit such excess | ||||||
16 | payment against liability subsequently to be remitted to the | ||||||
17 | Department under this Act, in accordance with reasonable rules | ||||||
18 | adopted by the Department. | ||||||
19 | (Source: P.A. 100-1171, eff. 1-4-19.)
| ||||||
20 | (35 ILCS 143/10-35) | ||||||
21 | Sec. 10-35. Record keeping. | ||||||
22 | (a) Every distributor, as defined in Section 10-5, shall | ||||||
23 | keep complete and accurate records of tobacco products held, | ||||||
24 | purchased, manufactured, brought in or caused to be brought in | ||||||
25 | from without the State, and tobacco products sold, or |
| |||||||
| |||||||
1 | otherwise disposed of, and shall preserve and keep all | ||||||
2 | invoices, bills of lading, sales records, and copies of bills | ||||||
3 | of sale, the wholesale price , and beginning January 1, 2025 | ||||||
4 | the actual cost or actual cost list price for tobacco products | ||||||
5 | sold or otherwise disposed of, an inventory of tobacco | ||||||
6 | products prepared as of December 31 of each year or as of the | ||||||
7 | last day of the distributor's fiscal year if the distributor | ||||||
8 | he or she files federal income tax returns on the basis of a | ||||||
9 | fiscal year, and other pertinent papers and documents relating | ||||||
10 | to the manufacture, purchase, sale, or disposition of tobacco | ||||||
11 | products. Every sales invoice issued by a licensed distributor | ||||||
12 | to a retailer in this State shall contain the distributor's | ||||||
13 | Tobacco Products License number unless the distributor has | ||||||
14 | been granted a waiver by the Department in response to a | ||||||
15 | written request in cases where (i) the distributor sells | ||||||
16 | little cigars or other tobacco products only to licensed | ||||||
17 | retailers that are wholly-owned by the distributor or owned by | ||||||
18 | a wholly-owned subsidiary of the distributor; (ii) the | ||||||
19 | licensed retailer obtains little cigars or other tobacco | ||||||
20 | products only from the distributor requesting the waiver; and | ||||||
21 | (iii) the distributor affixes the tax stamps to the original | ||||||
22 | packages of little cigars or has or will pay the tax on the | ||||||
23 | other tobacco products sold to the licensed retailer. The | ||||||
24 | distributor shall file a written request with the Department, | ||||||
25 | and, if the Department determines that the distributor meets | ||||||
26 | the conditions for a waiver, the Department shall grant the |
| |||||||
| |||||||
1 | waiver. | ||||||
2 | (b) Every retailer, as defined in Section 10-5, whether or | ||||||
3 | not the retailer has obtained a retailer's license pursuant to | ||||||
4 | Section 4g, shall keep complete and accurate records of | ||||||
5 | tobacco products held, purchased, sold, or otherwise disposed | ||||||
6 | of, and shall preserve and keep all invoices, bills of lading, | ||||||
7 | sales records, and copies of bills of sale, returns and other | ||||||
8 | pertinent papers and documents relating to the purchase, sale, | ||||||
9 | or disposition of tobacco products. Such records need not be | ||||||
10 | maintained on the licensed premises, but must be maintained in | ||||||
11 | the State of Illinois; however, if access is available | ||||||
12 | electronically, the records may be maintained out of state. | ||||||
13 | However, all original invoices or copies thereof covering | ||||||
14 | purchases of tobacco products must be retained on the licensed | ||||||
15 | premises for a period of 90 days after such purchase, unless | ||||||
16 | the Department has granted a waiver in response to a written | ||||||
17 | request in cases where records are kept at a central business | ||||||
18 | location within the State of Illinois or in cases where | ||||||
19 | records that are available electronically are maintained out | ||||||
20 | of state. The Department shall adopt rules regarding the | ||||||
21 | eligibility for a waiver, revocation of a waiver, and | ||||||
22 | requirements and standards for maintenance and accessibility | ||||||
23 | of records located at a central location out-of-State pursuant | ||||||
24 | to a waiver provided under this Section. | ||||||
25 | (b-5) Every remote retail seller, as defined in Section | ||||||
26 | 10-5 shall keep complete and accurate records of tobacco |
| |||||||
| |||||||
1 | products held, purchased, sold, or otherwise disposed of and | ||||||
2 | shall preserve and keep all invoices, bills of lading, sales | ||||||
3 | records, and copies of bills of sale, returns and other | ||||||
4 | pertinent papers and documents relating to the purchase, sale, | ||||||
5 | or disposition of tobacco products. Such records must be on | ||||||
6 | the remote retail seller's premises but need not be maintained | ||||||
7 | in the State of Illinois; however, remote retail sellers shall | ||||||
8 | also provide access electronically. However, all original | ||||||
9 | invoices or copies thereof covering purchases of tobacco | ||||||
10 | products must be retained on the remote retail seller's | ||||||
11 | premises until the expiration of the period with respect to | ||||||
12 | which the Department is authorized to issue a notice of tax | ||||||
13 | liability. | ||||||
14 | (c) Books, records, papers, and documents that are | ||||||
15 | required by this Act to be kept shall, at all times during the | ||||||
16 | usual business hours of the day, be subject to inspection by | ||||||
17 | the Department or its duly authorized agents and employees. | ||||||
18 | The books, records, papers, and documents for any period with | ||||||
19 | respect to which the Department is authorized to issue a | ||||||
20 | notice of tax liability shall be preserved until the | ||||||
21 | expiration of that period. | ||||||
22 | (Source: P.A. 99-192, eff. 1-1-16; 100-940, eff. 8-17-18.)
| ||||||
23 | (35 ILCS 143/10-37) | ||||||
24 | Sec. 10-37. Proof of payment of tax imposed by this Act. | ||||||
25 | Every licensed distributor of tobacco products in this State |
| |||||||
| |||||||
1 | is required to show proof of the tax having been paid as | ||||||
2 | required by this Act by displaying its Tobacco Products | ||||||
3 | License number on every sales invoice issued to a retailer in | ||||||
4 | this State. Every licensed remote retail seller of tobacco | ||||||
5 | products in this State is required to show proof of the tax | ||||||
6 | having been paid as required by this Act by displaying its | ||||||
7 | Tobacco Products License number on every sales invoice issued | ||||||
8 | to a consumer in this State. No retailer shall possess tobacco | ||||||
9 | products without either a proper invoice indicating that the | ||||||
10 | tobacco products tax was paid by a distributor for the tobacco | ||||||
11 | products in the retailer's possession or other proof that the | ||||||
12 | tax was paid by the retailer if it has purchased tobacco | ||||||
13 | products on which tax has not been paid as required by this | ||||||
14 | Act. Failure to comply with the provisions of this paragraph | ||||||
15 | may be grounds for revocation of a distributor's , remote | ||||||
16 | retail seller's, or retailer's license in accordance with | ||||||
17 | Section 10-25 of this Act or Section 6 of the Cigarette Tax | ||||||
18 | Act. In addition, the Department may impose a civil penalty | ||||||
19 | not to exceed $1,000 for the first violation and $3,000 for | ||||||
20 | each subsequent violation, which shall be deposited into the | ||||||
21 | Tax Compliance and Administration Fund. | ||||||
22 | (Source: P.A. 100-940, eff. 8-17-18.)
| ||||||
23 | (35 ILCS 143/10-38) | ||||||
24 | Sec. 10-38. Presumption for unlicensed distributors , | ||||||
25 | remote retail sellers, or persons. Whenever any person obtains |
| |||||||
| |||||||
1 | tobacco products from an unlicensed in-state or out-of-state | ||||||
2 | distributor , remote retail seller, or person, a prima facie | ||||||
3 | presumption shall arise that the tax imposed by this Act on | ||||||
4 | such tobacco products has not been paid in violation of this | ||||||
5 | Act. Invoices or other documents kept in the normal course of | ||||||
6 | business in the possession of a person reflecting purchases of | ||||||
7 | tobacco products from an unlicensed in-state or out-of-state | ||||||
8 | distributor , remote retail seller, or person or invoices or | ||||||
9 | other documents kept in the normal course of business obtained | ||||||
10 | by the Department from in-state or out-of-state distributors , | ||||||
11 | remote retail sellers, or persons, are sufficient to raise the | ||||||
12 | presumption that the tax imposed by this Act has not been paid. | ||||||
13 | If a presumption is raised, the Department may assess tax, | ||||||
14 | penalty, and interest on the tobacco products. In addition, | ||||||
15 | any person who violates this Section is liable to pay to the | ||||||
16 | Department, for deposit in the Tax Compliance and | ||||||
17 | Administration Fund, a penalty of $1,000 for the first | ||||||
18 | violation and $3,000 for any subsequent violation. The | ||||||
19 | Department may adopt rules to administer the penalties under | ||||||
20 | this Section. | ||||||
21 | (Source: P.A. 100-940, eff. 8-17-18.)
| ||||||
22 | (35 ILCS 143/10-45) | ||||||
23 | Sec. 10-45. Incorporation by reference. All of the | ||||||
24 | provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, | ||||||
25 | 5i, 5j, 6, 6a, 6b, 6c, 8, 9, 10, 11, 11a, and 12 of the |
| |||||||
| |||||||
1 | Retailers' Occupation Tax Act, and all applicable provisions | ||||||
2 | of the Uniform Penalty and Interest Act that are not | ||||||
3 | inconsistent with this Act, apply to distributors and remote | ||||||
4 | retail sellers of tobacco products to the same extent as if | ||||||
5 | those provisions were included in this Act. References in the | ||||||
6 | incorporated Sections of the Retailers' Occupation Tax Act to | ||||||
7 | retailers, to sellers, or to persons engaged in the business | ||||||
8 | of selling tangible personal property mean distributors or | ||||||
9 | remote retail sellers when used in this Act. References in the | ||||||
10 | incorporated Sections to sales of tangible personal property | ||||||
11 | mean sales of tobacco products when used in this Act. | ||||||
12 | All of the provisions of Sections 7, 8, 8a, 16, 18a, 18b, | ||||||
13 | 18c, 22, 23, 24, 26, 27, and 28a of the Cigarette Tax Act which | ||||||
14 | are not inconsistent with this Act shall apply, as far as | ||||||
15 | practicable, to the subject matter of this Act to the same | ||||||
16 | extent as if those provisions were included in this Act. | ||||||
17 | References in the incorporated Sections to sales of cigarettes | ||||||
18 | mean sales of little cigars in packages of 20 or 25 little | ||||||
19 | cigars. | ||||||
20 | (Source: P.A. 98-273, eff. 8-9-13.)
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21 | (35 ILCS 143/10-50) | ||||||
22 | Sec. 10-50. Violations and penalties. When the amount due | ||||||
23 | is under $300, any distributor or remote retail seller who | ||||||
24 | fails to file a return, willfully fails or refuses to make any | ||||||
25 | payment to the Department of the tax imposed by this Act, or |
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1 | files a fraudulent return, or any officer or agent of a | ||||||
2 | corporation engaged in the business of distributing or | ||||||
3 | engaging in remote retail sales of tobacco products to | ||||||
4 | retailers or and consumers located in this State who signs a | ||||||
5 | fraudulent return filed on behalf of the corporation, or any | ||||||
6 | accountant or other agent who knowingly enters false | ||||||
7 | information on the return of any taxpayer under this Act is | ||||||
8 | guilty of a Class 4 felony. | ||||||
9 | Any person who violates any provision of Section 10-20, | ||||||
10 | 10-21, or 10-22 , or 10-24 of this Act, fails to keep books and | ||||||
11 | records as required under this Act, or willfully violates a | ||||||
12 | rule or regulation of the Department for the administration | ||||||
13 | and enforcement of this Act is guilty of a Class 4 felony. A | ||||||
14 | person commits a separate offense on each day that he or she | ||||||
15 | engages in business in violation of Section 10-20, 10-21, or | ||||||
16 | 10-22 , or 10-24 of this Act. If a person fails to produce the | ||||||
17 | books and records for inspection by the Department upon | ||||||
18 | request, a prima facie presumption shall arise that the person | ||||||
19 | has failed to keep books and records as required under this | ||||||
20 | Act. A person who is unable to rebut this presumption is in | ||||||
21 | violation of this Act and is subject to the penalties provided | ||||||
22 | in this Section. | ||||||
23 | When the amount due is under $300, any person who accepts | ||||||
24 | money that is due to the Department under this Act from a | ||||||
25 | taxpayer for the purpose of acting as the taxpayer's agent to | ||||||
26 | make the payment to the Department, but who fails to remit the |
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1 | payment to the Department when due, is guilty of a Class 4 | ||||||
2 | felony. | ||||||
3 | Any person who violates any provision of Sections 10-20, | ||||||
4 | 10-21 and 10-22 of this Act, fails to keep books and records as | ||||||
5 | required under this Act, or willfully violates a rule or | ||||||
6 | regulation of the Department for the administration and | ||||||
7 | enforcement of this Act is guilty of a business offense and may | ||||||
8 | be fined up to $5,000. If a person fails to produce books and | ||||||
9 | records for inspection by the Department upon request, a prima | ||||||
10 | facie presumption shall arise that the person has failed to | ||||||
11 | keep books and records as required under this Act. A person who | ||||||
12 | is unable to rebut this presumption is in violation of this Act | ||||||
13 | and is subject to the penalties provided in this Section. A | ||||||
14 | person commits a separate offense on each day that he or she | ||||||
15 | engages in business in violation of Sections 10-20, 10-21 and | ||||||
16 | 10-22 of this Act. | ||||||
17 | When the amount due is $300 or more, any distributor or | ||||||
18 | remote retail seller who files, or causes to be filed, a | ||||||
19 | fraudulent return, or any officer or agent of a corporation | ||||||
20 | engaged in the business of distributing or engaging in remote | ||||||
21 | retail sales of tobacco products to retailers or and consumers | ||||||
22 | located in this State who files or causes to be filed or signs | ||||||
23 | or causes to be signed a fraudulent return filed on behalf of | ||||||
24 | the corporation, or any accountant or other agent who | ||||||
25 | knowingly enters false information on the return of any | ||||||
26 | taxpayer under this Act is guilty of a Class 3 felony. |
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1 | When the amount due is $300 or more, any person engaged in | ||||||
2 | the business of distributing or engaging in remote retail | ||||||
3 | sales of tobacco products to retailers or and consumers | ||||||
4 | located in this State who fails to file a return, willfully | ||||||
5 | fails or refuses to make any payment to the Department of the | ||||||
6 | tax imposed by this Act, or accepts money that is due to the | ||||||
7 | Department under this Act from a taxpayer for the purpose of | ||||||
8 | acting as the taxpayer's agent to make payment to the | ||||||
9 | Department but fails to remit such payment to the Department | ||||||
10 | when due is guilty of a Class 3 felony. | ||||||
11 | When the amount due is under $300, any retailer who fails | ||||||
12 | to file a return, willfully fails or refuses to make any | ||||||
13 | payment to the Department of the tax imposed by this Act, or | ||||||
14 | files a fraudulent return, or any officer or agent of a | ||||||
15 | corporation engaged in the retail business of selling tobacco | ||||||
16 | products to purchasers of tobacco products for use and | ||||||
17 | consumption located in this State who signs a fraudulent | ||||||
18 | return filed on behalf of the corporation, or any accountant | ||||||
19 | or other agent who knowingly enters false information on the | ||||||
20 | return of any taxpayer under this Act is guilty of a Class A | ||||||
21 | misdemeanor for a first offense and a Class 4 felony for each | ||||||
22 | subsequent offense. | ||||||
23 | When the amount due is $300 or more, any retailer who fails | ||||||
24 | to file a return, willfully fails or refuses to make any | ||||||
25 | payment to the Department of the tax imposed by this Act, or | ||||||
26 | files a fraudulent return, or any officer or agent of a |
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1 | corporation engaged in the retail business of selling tobacco | ||||||
2 | products to purchasers of tobacco products for use and | ||||||
3 | consumption located in this State who signs a fraudulent | ||||||
4 | return filed on behalf of the corporation, or any accountant | ||||||
5 | or other agent who knowingly enters false information on the | ||||||
6 | return of any taxpayer under this Act is guilty of a Class 4 | ||||||
7 | felony. | ||||||
8 | Any person whose principal place of business is in this | ||||||
9 | State and who is charged with a violation under this Section | ||||||
10 | shall be tried in the county where his or her principal place | ||||||
11 | of business is located unless he or she asserts a right to be | ||||||
12 | tried in another venue. If the taxpayer does not have his or | ||||||
13 | her principal place of business in this State, however, the | ||||||
14 | hearing must be held in Sangamon County unless the taxpayer | ||||||
15 | asserts a right to be tried in another venue. | ||||||
16 | Any taxpayer or agent of a taxpayer who with the intent to | ||||||
17 | defraud purports to make a payment due to the Department by | ||||||
18 | issuing or delivering a check or other order upon a real or | ||||||
19 | fictitious depository for the payment of money, knowing that | ||||||
20 | it will not be paid by the depository, is guilty of a deceptive | ||||||
21 | practice in violation of Section 17-1 of the Criminal Code of | ||||||
22 | 2012. | ||||||
23 | A prosecution for a violation described in this Section | ||||||
24 | may be commenced within 3 years after the commission of the act | ||||||
25 | constituting the violation. | ||||||
26 | (Source: P.A. 100-201, eff. 8-18-17; 100-940, eff. 8-17-18.)
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