Bill Text: IL SB1124 | 2019-2020 | 101st General Assembly | Introduced
Bill Title: Amends the Tobacco Products Tax Act of 1995. Provides that, beginning on July 1, 2019, "tobacco products" also includes electronic cigarettes. Effective immediately.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Failed) 2021-01-13 - Session Sine Die [SB1124 Detail]
Download: Illinois-2019-SB1124-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Tobacco Products Tax Act of 1995 is amended | ||||||||||||||||||||||||
5 | by changing Section 10-5 as follows:
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6 | (35 ILCS 143/10-5)
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7 | Sec. 10-5. Definitions. For purposes of this Act:
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8 | "Business" means any trade, occupation, activity, or | ||||||||||||||||||||||||
9 | enterprise engaged
in, at any location whatsoever, for the | ||||||||||||||||||||||||
10 | purpose of selling tobacco products.
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11 | "Cigarette" has the meaning ascribed to the term in Section | ||||||||||||||||||||||||
12 | 1 of the
Cigarette Tax Act.
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13 | "Contraband little cigar" means: | ||||||||||||||||||||||||
14 | (1) packages of little cigars containing 20 or 25 | ||||||||||||||||||||||||
15 | little cigars that do not bear a required tax stamp under | ||||||||||||||||||||||||
16 | this Act; | ||||||||||||||||||||||||
17 | (2) packages of little cigars containing 20 or 25 | ||||||||||||||||||||||||
18 | little cigars that bear a fraudulent, imitation, or | ||||||||||||||||||||||||
19 | counterfeit tax stamp; | ||||||||||||||||||||||||
20 | (3) packages of little cigars containing 20 or 25 | ||||||||||||||||||||||||
21 | little cigars that are improperly tax stamped, including | ||||||||||||||||||||||||
22 | packages of little cigars that bear only a tax stamp of | ||||||||||||||||||||||||
23 | another state or taxing jurisdiction; or |
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1 | (4) packages of little cigars containing other than 20 | ||||||
2 | or 25 little cigars in the possession of a distributor, | ||||||
3 | retailer or wholesaler, unless the distributor, retailer, | ||||||
4 | or wholesaler possesses, or produces within the time frame | ||||||
5 | provided in Section 10-27 or 10-28 of this Act, an invoice | ||||||
6 | from a stamping distributor, distributor, or wholesaler | ||||||
7 | showing that the tax on the packages has been or will be | ||||||
8 | paid. | ||||||
9 | "Correctional Industries program" means a program run by a | ||||||
10 | State penal
institution in which residents of the penal | ||||||
11 | institution produce tobacco
products for sale to persons | ||||||
12 | incarcerated in penal institutions or resident
patients of a | ||||||
13 | State operated mental health facility.
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14 | "Department" means the Illinois Department of Revenue.
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15 | "Distributor" means any of the following:
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16 | (1) Any manufacturer or wholesaler in this State | ||||||
17 | engaged in the business
of selling tobacco products who | ||||||
18 | sells, exchanges, or distributes tobacco
products to | ||||||
19 | retailers or consumers in this State.
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20 | (2) Any manufacturer or wholesaler engaged
in
the | ||||||
21 | business of selling tobacco products from without this | ||||||
22 | State who sells,
exchanges, distributes,
ships, or | ||||||
23 | transports tobacco products to retailers or consumers | ||||||
24 | located in
this State,
so long as that manufacturer or | ||||||
25 | wholesaler has or maintains within this State,
directly or | ||||||
26 | by subsidiary, an office, sales house, or other place of |
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1 | business,
or any agent or other representative operating | ||||||
2 | within this State under the
authority of the person or | ||||||
3 | subsidiary, irrespective of whether the place of
business | ||||||
4 | or agent or other representative is located here | ||||||
5 | permanently or
temporarily.
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6 | (3) Any retailer who receives tobacco products on which | ||||||
7 | the tax has not
been or
will not be paid by another | ||||||
8 | distributor.
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9 | "Distributor" does not include any person, wherever | ||||||
10 | resident or located, who
makes, manufactures, or fabricates | ||||||
11 | tobacco products as part of a Correctional
Industries program | ||||||
12 | for sale to residents incarcerated in penal institutions or
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13 | resident patients of a State operated mental health facility.
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14 | "Electronic cigarette" means: | ||||||
15 | (1) any device that employs a battery or other
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16 | mechanism to heat a solution or substance to produce a
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17 | vapor or aerosol intended for inhalation; | ||||||
18 | (2) any cartridge or container of a solution or
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19 | substance intended to be used with or in the device or to
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20 | refill the device; or | ||||||
21 | (3) any solution or substance, whether or not it
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22 | contains nicotine intended for use in the device.
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23 | "Electronic cigarette" includes, but is not limited to, any
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24 | electronic nicotine delivery system, electronic cigar,
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25 | electronic cigarillo, electronic pipe, electronic hookah,
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26 | vape pen, or similar product or device, and any components
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1 | or parts that can be used to build the product or device.
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2 | "Electronic cigarette" does not include: cigarettes as | ||||||
3 | defined in
Section 1 of the Cigarette Tax Act; any product | ||||||
4 | approved by the United States Food and Drug Administration | ||||||
5 | for sale as a tobacco cessation product, a tobacco | ||||||
6 | dependence product, or for other medical purposes that is | ||||||
7 | being marketed and sold solely for that approved purpose; | ||||||
8 | any asthma
inhaler prescribed by a physician for that | ||||||
9 | condition and is being marketed and sold solely for that | ||||||
10 | approved purpose; or any therapeutic product approved for | ||||||
11 | use under the Compassionate Use of Medical Cannabis
Pilot | ||||||
12 | Program Act. | ||||||
13 | "Little cigar" means and includes any roll, made wholly or | ||||||
14 | in part of tobacco, where such roll has an integrated cellulose | ||||||
15 | acetate filter and weighs less than 4 pounds per thousand and | ||||||
16 | the wrapper or cover of which is made in whole or in part of | ||||||
17 | tobacco. | ||||||
18 | "Manufacturer" means any person, wherever resident or | ||||||
19 | located, who
manufactures and sells tobacco products, except a | ||||||
20 | person who makes,
manufactures, or fabricates tobacco products | ||||||
21 | as a part of a Correctional
Industries program for sale to | ||||||
22 | persons incarcerated in penal institutions or
resident | ||||||
23 | patients of a State operated mental health facility.
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24 | Beginning on January 1, 2013, "moist snuff" means any | ||||||
25 | finely cut, ground, or powdered tobacco that is not intended to | ||||||
26 | be smoked, but shall not include any finely cut, ground, or |
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1 | powdered tobacco that is intended to be placed in the nasal | ||||||
2 | cavity. | ||||||
3 | "Person" means any natural individual, firm, partnership, | ||||||
4 | association, joint
stock company, joint venture, limited | ||||||
5 | liability company, or public or private
corporation, however | ||||||
6 | formed, or a receiver, executor, administrator, trustee,
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7 | conservator, or other representative appointed by order of any | ||||||
8 | court.
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9 | "Place of business" means and includes any place where | ||||||
10 | tobacco products
are sold or where tobacco products are | ||||||
11 | manufactured, stored, or kept for
the purpose of sale or | ||||||
12 | consumption, including any vessel, vehicle, airplane,
train, | ||||||
13 | or vending machine.
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14 | "Retailer" means any person in this State engaged in the | ||||||
15 | business of selling
tobacco products to consumers in this | ||||||
16 | State, regardless of quantity or number
of sales.
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17 | "Sale" means any transfer, exchange, or barter in any | ||||||
18 | manner or by any means
whatsoever for a consideration and | ||||||
19 | includes all sales made by
persons.
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20 | "Stamp" or "stamps" mean the indicia required to be affixed | ||||||
21 | on a package of little cigars that evidence payment of the tax | ||||||
22 | on packages of little cigars containing 20 or 25 little cigars | ||||||
23 | under Section 10-10 of this Act. These stamps shall be the same | ||||||
24 | stamps used for cigarettes under the Cigarette Tax Act. | ||||||
25 | "Stamping distributor" means a distributor licensed under | ||||||
26 | this Act and also licensed as a distributor under the Cigarette |
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1 | Tax Act or Cigarette Use Tax Act. | ||||||
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 Tax | ||||||
12 | Act or tobacco purchased for the manufacture of
cigarettes by | ||||||
13 | cigarette distributors and manufacturers defined in the
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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. Beginning on July 1, 2019, "tobacco products" | ||||||
19 | also includes electronic cigarettes.
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20 | "Wholesale price" means the established list price for | ||||||
21 | which a manufacturer
sells tobacco products to a distributor, | ||||||
22 | before the allowance of any discount,
trade allowance, rebate, | ||||||
23 | or other reduction.
In the absence of such an established list | ||||||
24 | price, the manufacturer's invoice
price at which the | ||||||
25 | manufacturer sells the tobacco product to unaffiliated
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26 | distributors, before any discounts, trade allowances, rebates, |
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1 | or other
reductions, shall be presumed to be the wholesale | ||||||
2 | price.
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3 | "Wholesaler" means any person, wherever resident or | ||||||
4 | located, engaged in the
business of selling tobacco products to | ||||||
5 | others for the purpose of resale. "Wholesaler", when used in | ||||||
6 | this Act, does not include a person licensed as a distributor | ||||||
7 | under Section 10-20 of this Act unless expressly stated in this | ||||||
8 | Act.
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9 | (Source: P.A. 97-688, eff. 6-14-12; 98-273, eff. 8-9-13; | ||||||
10 | 98-1055, eff. 1-1-16 .)
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11 | Section 99. Effective date. This Act takes effect upon | ||||||
12 | becoming law.
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