Public Act 099-0360
 
SB0509 EnrolledLRB099 03061 HLH 23069 b



    AN ACT concerning revenue.

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



 
    Section 5. The Cigarette Tax Act is amended  by changing 
Section 1 as follows:
 


    (35 ILCS 130/1)  (from Ch. 120, par. 453.1)




    Sec. 1. For the purposes of this Act: 

    "Brand Style" means a variety of cigarettes distinguished 
by the tobacco used, tar and nicotine content, flavoring used, 
size of the cigarette, filtration on the cigarette or 
packaging.
    Until July 1, 2012, and beginning July 1, 2013, 
"cigarette", means any
roll for smoking made wholly or in part 
of tobacco irrespective of size
or shape and whether or not 
such tobacco is flavored, adulterated or
mixed with any other 
ingredient, and the wrapper or cover of which is
made of paper 
or any other substance or material except tobacco.

    "Cigarette", beginning on and after July 1, 2012, and 
through June 30, 2013, means any roll for smoking made wholly 
or in part of tobacco irrespective of size or shape and whether 
or not such tobacco is flavored, adulterated, or mixed with any 
other ingredient, and the wrapper or cover of which is made of 
paper.
    "Cigarette", beginning on and after July 1, 2012, and 
through June 30, 2013, also shall mean: Any roll for smoking 
made wholly or in part of tobacco labeled as anything other 
than a cigarette or not bearing a label, if it meets two or 
more of the following criteria:
        (a)  the product is sold in packs similar to cigarettes;
        (b)  the product is available for sale in cartons of ten 
    packs;
        (c)  the product is sold in soft packs, hard packs, 
    flip-top boxes, clam shells, or other cigarette-type 
    boxes;
        (d)  the product is of a length and diameter similar to 
    commercially manufactured cigarettes;
        (e)  the product has a cellulose acetate or other 
    integrated filter;
        (f)  the product is marketed or advertised to consumers 
    as a cigarette or cigarette substitute; or
        (g)  other evidence that the product fits within the 
    definition of cigarette.
    "Contraband cigarettes" means:
        (a) cigarettes that do not bear a required tax stamp 
    under this Act;
        (b) cigarettes for which any required federal taxes 
    have not been paid;
        (c) cigarettes that bear a counterfeit tax stamp;
        (d) cigarettes that are manufactured, fabricated, 
    assembled, processed, packaged, or labeled by any person 
    other than (i) the owner of the trademark rights in the 
    cigarette brand or (ii) a person that is directly or 
    indirectly authorized by such owner;
        (e) cigarettes imported into the United States, or 
    otherwise distributed, in violation of the federal 
    Imported Cigarette Compliance Act of 2000 (Title IV of 
    Public Law 106-476); 
        (f) cigarettes that have false manufacturing labels; 
        (g) cigarettes identified in Section 3-10(a)(1) of 
    this Act; 
        (h) cigarettes that are improperly tax stamped, 
    including cigarettes that bear a tax stamp of another state 
    or taxing jurisdiction, or lack a tax stamp required by any 
    political subdivision of Illinois; or 
        (i) cigarettes made or fabricated by a person holding a 
    cigarette machine operator license under Section 1-20 of 
    the Cigarette Machine Operators' Occupation Tax Act in the 
    possession of manufacturers, distributors, secondary 
    distributors, manufacturer representatives or other 
    retailers for the purpose of resale, regardless of whether 
    the tax has been paid on such cigarettes. 
    "Little cigar" has the meaning ascribed to that term in the 
Tobacco Products Tax Act of 1995. 
    "Person" means any natural individual, firm, partnership, 
association, joint
stock company, joint adventure, public or 
private corporation, however formed,
limited liability 
company, or a receiver, executor, administrator, trustee,

guardian or other representative appointed by order of any 
court.

    "Prior Continuous Compliance Taxpayer" means any person 
who is licensed
under this Act and who, having been a licensee 
for a continuous period of 5
years, is determined by the 
Department not to have been either delinquent
or deficient in 
the payment of tax liability during that period or
otherwise in 
violation of this Act.  Also, any taxpayer who has, as
verified 
by the Department, continuously complied with the condition of 
his
bond or other security under provisions of this Act for a 
period of 5
consecutive years shall be considered to be a 
"Prior continuous compliance
taxpayer".  In calculating the 
consecutive period of time described herein
for qualification 
as a "prior continuous compliance taxpayer", a
consecutive 
period of time of qualifying compliance immediately prior to

the effective date of this amendatory Act of 1987 shall be 
credited to any
licensee who became licensed on or before the 
effective date of this
amendatory Act of 1987.

    "Department" means the Department of Revenue.

    "Sale" means any transfer, exchange or barter in any manner 
or by any
means whatsoever for a consideration, and includes 
and means all sales
made by any person.

    "Original Package" means the individual packet, box or 
other  container
whatsoever used to contain and to convey 
cigarettes to the consumer.

    "Distributor" means any and each of the following:

        (1) Any person engaged in the business of selling 
    cigarettes in this
State who brings or causes to be brought 
    into this State from without
this State any original 
    packages of cigarettes, on which original
packages there is 
    no authorized evidence underneath a sealed transparent

    wrapper showing that the tax liability imposed by this Act 
    has been paid
or assumed by the out-of-State seller of such 
    cigarettes, for sale or
other disposition in the course of 
    such business.

        (2) Any person who makes, manufactures or fabricates 
    cigarettes in this
State for sale in this State, except a 
    person who makes, manufactures
or fabricates 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.

        (3) Any person who makes, manufactures or fabricates 
    cigarettes
outside this State, which cigarettes are placed 
    in original packages
contained in sealed transparent 
    wrappers, for delivery or shipment into
this State, and who 
    elects to qualify and is accepted by the Department
as a 
    distributor under Section 4b of this Act.

    "Place of business" shall mean and include any place where 
cigarettes
are sold or where cigarettes are manufactured, 
stored or kept for the
purpose of sale or consumption, 
including any vessel, vehicle, airplane,
train or vending 
machine.

    "Manufacturer representative" means a director, officer, 
or employee of a manufacturer who has obtained authority from 
the Department under Section 4f to maintain representatives in 
Illinois that provide or sell original packages of cigarettes 
made, manufactured, or fabricated by the manufacturer to 
retailers in compliance with Section 4f of this Act to promote 
cigarettes made, manufactured, or fabricated by the 
manufacturer. 
    "Business" means any trade, occupation, activity or 
enterprise
engaged in for the purpose of selling cigarettes in 
this State.

    "Retailer" means any person who engages in the making of 
transfers of
the ownership of, or title to, cigarettes to a 
purchaser for use or
consumption and not for resale in any 
form, for a valuable consideration. "Retailer" does not include 
a person:

        (1) who transfers to residents incarcerated in penal 
    institutions
or resident patients of a State-operated 
    mental health facility ownership
of cigarettes made, 
    manufactured, or fabricated as part of a correctional

    industries program; or
        (2) who transfers cigarettes to a not-for-profit 
    research institution that conducts tests concerning the 
    health effects of tobacco products and who does not offer 
    the cigarettes for resale.

    "Retailer" shall be construed to include any person who 
engages in
the making of transfers of the ownership of, or 
title to, cigarettes to
a purchaser, for use or consumption by 
any other person to whom such
purchaser may transfer the 
cigarettes without a valuable consideration,
except a person 
who transfers to residents incarcerated in penal institutions

or resident patients of a State-operated mental health facility 
ownership
of cigarettes made, manufactured or fabricated as 
part of a correctional
industries program.

    "Secondary distributor" means any person engaged in the 
business of selling cigarettes who purchases stamped original 
packages of cigarettes from a licensed distributor under this 
Act or the Cigarette Use Tax Act, sells 75% or more of those 
cigarettes to retailers for resale, and maintains an 
established business where a substantial stock of cigarettes is 
available to retailers for resale. 
    "Stamp" or "stamps" mean the indicia required to be affixed 
on a pack of cigarettes that evidence payment of the tax on 
cigarettes under Section 2 of this Act.
    "Related party" means any person that is associated with 
any other person because he or she:
        (a) is an officer or director of a business; or 
        (b) is legally recognized as a partner in business.
(Source: P.A. 97-587, eff. 8-26-11; 97-688, eff. 6-14-12; 
98-273, eff. 8-9-13.)


 
    Section 99. Effective date. This Act takes effect upon 
becoming law.