Bill Amendment: IL SB1706 | 2021-2022 | 102nd General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: TOBACCO PRODUCTS TAX-E-CIGS

Status: 2021-05-15 - Rule 19(a) / Re-referred to Rules Committee [SB1706 Detail]

Download: Illinois-2021-SB1706-House_Amendment_001.html

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Rep. Kelly M. Cassidy

Filed: 5/7/2021

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AMENDMENT TO SENATE BILL 1706
AMENDMENT NO. ______. Amend Senate Bill 1706 by replacing
everything after the enacting clause with the following:
"Section 5. The Tobacco Products Tax Act of 1995 is
amended by changing Section 10-5 as follows:
(35 ILCS 143/10-5)
Sec. 10-5. Definitions. For purposes of this Act:
"Business" means any trade, occupation, activity, or
enterprise engaged in, at any location whatsoever, for the
purpose of selling tobacco products.
"Cigarette" has the meaning ascribed to the term in
Section 1 of the Cigarette Tax Act.
"Contraband little cigar" means:
(1) packages of little cigars containing 20 or 25
little cigars that do not bear a required tax stamp under
this Act;

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(2) packages of little cigars containing 20 or 25
little cigars that bear a fraudulent, imitation, or
counterfeit tax stamp;
(3) packages of little cigars containing 20 or 25
little cigars that are improperly tax stamped, including
packages of little cigars that bear only a tax stamp of
another state or taxing jurisdiction; or
(4) packages of little cigars containing other than 20
or 25 little cigars in the possession of a distributor,
retailer or wholesaler, unless the distributor, retailer,
or wholesaler possesses, or produces within the time frame
provided in Section 10-27 or 10-28 of this Act, an invoice
from a stamping distributor, distributor, or wholesaler
showing that the tax on the packages has been or will be
paid.
"Correctional Industries program" means a program run by a
State penal institution in which residents of the penal
institution produce tobacco products for sale to persons
incarcerated in penal institutions or resident patients of a
State operated mental health facility.
"Department" means the Illinois Department of Revenue.
"Distributor" means any of the following:
(1) Any manufacturer or wholesaler in this State
engaged in the business of selling tobacco products who
sells, exchanges, or distributes tobacco products to
retailers or consumers in this State.

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(2) Any manufacturer or wholesaler engaged in the
business of selling tobacco products from without this
State who sells, exchanges, distributes, ships, or
transports tobacco products to retailers or consumers
located in this State, so long as that manufacturer or
wholesaler has or maintains within this State, directly or
by subsidiary, an office, sales house, or other place of
business, or any agent or other representative operating
within this State under the authority of the person or
subsidiary, irrespective of whether the place of business
or agent or other representative is located here
permanently or temporarily.
(3) Any retailer who receives tobacco products on
which the tax has not been or will not be paid by another
distributor.
"Distributor" does not include any person, wherever
resident or located, who makes, manufactures, or fabricates
tobacco products as part of a Correctional Industries program
for sale to residents incarcerated in penal institutions or
resident patients of a State operated mental health facility.
"Electronic cigarette" means:
(1) any device that employs a battery or other
mechanism to heat a solution or substance to produce a
vapor or aerosol intended for inhalation, except (A) any
device designed solely for use with cannabis that contains
a statement on the retail packaging that the device is

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designed solely for use with cannabis and not for use with
tobacco or (B) any device that contains a solution or
substance that contains cannabis subject to tax under the
Compassionate Use of Medical Cannabis Program Act or the
Cannabis Regulation and Tax Act;
(2) any cartridge or container of a solution or
substance intended to be used with or in the device or to
refill the device, except any cartridge or container of a
solution or substance that contains cannabis subject to
tax under the Compassionate Use of Medical Cannabis
Program Act or the Cannabis Regulation and Tax Act; or
(3) any solution or substance, whether or not it
contains nicotine, intended for use in the device, except
any solution or substance that contains cannabis subject
to tax under the Compassionate Use of Medical Cannabis
Program Act or the Cannabis Regulation and Tax Act.
The changes made to the definition of "electronic
cigarette" by this amendatory Act of the 102nd General
Assembly apply on and after June 28, 2020, but no claim for
credit or refund is allowed on or after the effective date of
this amendatory Act of the 102nd General Assembly for such
taxes paid during the period beginning June 28, 2020 and the
effective date of this amendatory Act of the 102nd General
Assembly.
"Electronic cigarette" includes, but is not limited to,
any electronic nicotine delivery system, electronic cigar,

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electronic cigarillo, electronic pipe, electronic hookah, vape
pen, or similar product or device, and any component or part
that can be used to build the product or device. "Electronic
cigarette" does not include: cigarettes, as defined in Section
1 of the Cigarette Tax Act; any product approved by the United
States Food and Drug Administration for sale as a tobacco
cessation product, a tobacco dependence product, or for other
medical purposes that is marketed and sold solely for that
approved purpose; any asthma inhaler prescribed by a physician
for that condition that is marketed and sold solely for that
approved purpose; or any therapeutic product approved for use
under the Compassionate Use of Medical Cannabis Program Act.
"Little cigar" means and includes any roll, made wholly or
in part of tobacco, where such roll has an integrated
cellulose acetate filter and weighs less than 4 pounds per
thousand and the wrapper or cover of which is made in whole or
in part of tobacco.
"Manufacturer" means any person, wherever resident or
located, who manufactures and sells tobacco products, except a
person who makes, manufactures, or fabricates tobacco products
as a part of a Correctional Industries program for sale to
persons incarcerated in penal institutions or resident
patients of a State operated mental health facility.
Beginning on January 1, 2013, "moist snuff" means any
finely cut, ground, or powdered tobacco that is not intended
to be smoked, but shall not include any finely cut, ground, or

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powdered tobacco that is intended to be placed in the nasal
cavity.
"Person" means any natural individual, firm, partnership,
association, joint stock company, joint venture, limited
liability company, or public or private corporation, however
formed, or a receiver, executor, administrator, trustee,
conservator, or other representative appointed by order of any
court.
"Place of business" means and includes any place where
tobacco products are sold or where tobacco products are
manufactured, stored, or kept for the purpose of sale or
consumption, including any vessel, vehicle, airplane, train,
or vending machine.
"Retailer" means any person in this State engaged in the
business of selling tobacco products to consumers in this
State, regardless of quantity or number of sales.
"Sale" means any transfer, exchange, or barter in any
manner or by any means whatsoever for a consideration and
includes all sales made by persons.
"Stamp" or "stamps" mean the indicia required to be
affixed on a package of little cigars that evidence payment of
the tax on packages of little cigars containing 20 or 25 little
cigars under Section 10-10 of this Act. These stamps shall be
the same stamps used for cigarettes under the Cigarette Tax
Act.
"Stamping distributor" means a distributor licensed under

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this Act and also licensed as a distributor under the
Cigarette Tax Act or Cigarette Use Tax Act.
"Tobacco products" means any cigars, including little
cigars; cheroots; stogies; periques; granulated, plug cut,
crimp cut, ready rubbed, and other smoking tobacco; snuff
(including moist snuff) or snuff flour; cavendish; plug and
twist tobacco; fine-cut and other chewing tobaccos; shorts;
refuse scraps, clippings, cuttings, and sweeping of tobacco;
and other kinds and forms of tobacco, prepared in such manner
as to be suitable for chewing or smoking in a pipe or
otherwise, or both for chewing and smoking; but does not
include cigarettes as defined in Section 1 of the Cigarette
Tax Act or tobacco purchased for the manufacture of cigarettes
by cigarette distributors and manufacturers defined in the
Cigarette Tax Act and persons who make, manufacture, or
fabricate cigarettes as a part of a Correctional Industries
program for sale to residents incarcerated in penal
institutions or resident patients of a State operated mental
health facility.
Beginning on July 1, 2019, "tobacco products" also
includes electronic cigarettes.
"Wholesale price" means the established list price for
which a manufacturer sells tobacco products to a distributor,
before the allowance of any discount, trade allowance, rebate,
or other reduction. In the absence of such an established list
price, the manufacturer's invoice price at which the

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manufacturer sells the tobacco product to unaffiliated
distributors, before any discounts, trade allowances, rebates,
or other reductions, shall be presumed to be the wholesale
price.
"Wholesaler" means any person, wherever resident or
located, engaged in the business of selling tobacco products
to others for the purpose of resale. "Wholesaler", when used
in this Act, does not include a person licensed as a
distributor under Section 10-20 of this Act unless expressly
stated in this Act.
(Source: P.A. 101-31, eff. 6-28-19; 101-593, eff. 12-4-19.)
Section 99. Effective date. This Act takes effect upon
becoming law.".