(35 ILCS 143/Art. 10 heading)
(35 ILCS 143/10-1)
Sec. 10-1.
Short title.
This Article may be cited as the Tobacco
Products Tax Act of 1995, and references in this Article to "this Act" mean
this Article.
(Source: P.A. 89-21, eff. 6-6-95.)
(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:
"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:
"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:
The changes made to the definition of "electronic cigarette" by this amendatory Act of the 102nd General Assembly apply on and after June 28, 2019, 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, 2019 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, 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 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 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 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; 102-40, eff. 6-25-21.)
(35 ILCS 143/10-10)
Sec. 10-10. Tax imposed.
(a) Except as otherwise provided in this Section with respect to little cigars, on the first day of the third month after the
month in which this Act becomes law, a tax is imposed on any person engaged in
business as a distributor of tobacco products, as defined in Section 10-5,
at the rate of (i) 18% of the wholesale price of tobacco products sold or otherwise
disposed of to retailers or consumers located in this State prior to July 1, 2012 and (ii) 36% of the wholesale price of tobacco products sold or otherwise
disposed of to retailers or consumers located in this State beginning on July 1, 2012; except that, beginning on January 1, 2013, the tax on moist snuff shall be imposed at a rate of $0.30 per ounce, and a proportionate tax at the like rate on all fractional parts of an ounce, sold or otherwise
disposed of to retailers or consumers located in this State; and except that, beginning July 1, 2019,
the tax on electronic cigarettes shall be imposed at the rate of
15% of the wholesale price of electronic cigarettes sold or
otherwise disposed of to retailers or consumers located in this
State. The tax is in
addition to all other
occupation or privilege taxes imposed by the State of Illinois, by any
political subdivision thereof, or by any municipal corporation. However, the
tax is not imposed upon any activity in that business in interstate commerce or
otherwise, to the extent to which that activity may not, under the Constitution
and Statutes of the United States, be made the subject of taxation by this
State, and except that, beginning July 1, 2013, the tax on little cigars shall be imposed at the same rate, and the proceeds shall be distributed in the same manner, as the tax imposed on cigarettes under the Cigarette Tax Act. The tax is also not imposed on sales made to the United States or any
entity thereof.
(b) Notwithstanding subsection (a) of this Section, stamping distributors of packages of little cigars containing 20 or 25 little cigars sold or otherwise disposed of in this State shall remit the tax by purchasing tax stamps from the Department and affixing them to packages of little cigars in the same manner as stamps are purchased and affixed to cigarettes under the Cigarette Tax Act, unless the stamping distributor sells or otherwise disposes of those packages of little cigars to another stamping distributor. Only persons meeting the definition of "stamping distributor" contained in Section 10-5 of this Act may affix stamps to packages of little cigars containing 20 or 25 little cigars. Stamping distributors may not sell or dispose of little cigars at retail to consumers or users at locations where stamping distributors affix stamps to packages of little cigars containing 20 or 25 little cigars.
(c) The impact of the tax levied by this Act is imposed upon distributors engaged in the business of selling tobacco products to retailers or consumers in this State. Whenever a stamping distributor brings or causes to be brought into this State from without this State, or purchases from without or within this State, any packages of little cigars containing 20 or 25 little cigars upon which there are no tax stamps affixed as required by this Act, for purposes of resale or disposal in this State to a person not a stamping distributor, then such stamping distributor shall pay the tax to the Department and add the amount of the tax to the price of such packages sold by such stamping distributor. Payment of the tax shall be evidenced by a stamp or stamps affixed to each package of little cigars containing 20 or 25 little cigars.
Stamping distributors paying the tax to the Department on packages of little cigars containing 20 or 25 little cigars sold to other distributors, wholesalers or retailers shall add the amount of the tax to the price of the packages of little cigars containing 20 or 25 little cigars sold by such stamping distributors.
(d) Beginning on January 1, 2013, the tax rate imposed per ounce of moist snuff may not exceed 15% of the tax imposed upon a package of 20 cigarettes pursuant to the Cigarette Tax Act.
(e) All moneys received by the Department under this Act from sales occurring prior to July 1, 2012 shall be paid into
the Long-Term Care Provider Fund of the State Treasury. Of the moneys received by the Department from sales occurring on or after July 1, 2012, except for moneys received from the tax imposed on the sale of little cigars, 50% shall be paid into the Long-Term Care Provider Fund and 50% shall be paid into the Healthcare Provider Relief Fund. Beginning July 1, 2013, all moneys received by the Department under this Act from the tax imposed on little cigars shall be distributed as provided in Section 2 of the Cigarette Tax Act.
(Source: P.A. 101-31, eff. 6-28-19.)
(35 ILCS 143/10-15)
Sec. 10-15. Exempt sales. Purchases of tobacco products other than little cigars by wholesalers
who will not sell the product at retail are exempt from the tax imposed by this
Act. Purchases of tobacco products other than little cigars by wholesalers and retailers for delivery
of the product outside Illinois are exempt from the tax imposed by this Act.
The wholesaler or retailer making the exempt sale of tobacco products other than little cigars shall document this
exemption by obtaining a certification from the purchaser containing the
seller's name and address, the purchaser's name and address, the date of
purchase, the purchaser's signature, the purchaser's tobacco products tax
license number, if applicable, and a statement that the purchaser is purchasing for resale
other than for sale to consumers or is purchasing for delivery outside of
Illinois.
(Source: P.A. 98-273, eff. 8-9-13.)
(35 ILCS 143/10-20)
Sec. 10-20. Distributor's licenses. It shall be unlawful for any person to engage in
business as a distributor of tobacco products within the
meaning
of this Act without first having obtained a license to do so from the
Department. Application for that license shall be made to the Department in a
form prescribed and furnished by the Department. Each applicant for a license
shall furnish to the Department on a form, signed and verified by the
applicant, the following information:
Except as otherwise provided in this Section, every applicant who is required
to procure a distributor's license shall file with his or her application a
joint and several bond. The bond shall be executed to the Department of
Revenue, with good and sufficient surety or sureties residing or licensed to do
business within the State of Illinois, conditioned upon the true and faithful
compliance by the licensee with all of the provisions of this Act. The
Department shall fix the amount of the bond for each applicant, taking into
consideration the amount of money expected to become due from the applicant
under this Act. The amount of bond required by the Department shall be an
amount that, in its opinion, will protect the State of Illinois against failure
to pay the amount that may become due from the applicant under this Act, but
the amount of the security required by the Department shall not exceed 3 times
the amount of the applicant's average monthly tax liability, or $50,000,
whichever amount is lower. The bond, a reissue, or a substitute shall be kept
in full force and effect during the entire period covered by the license. A
separate application for license shall be made, and bond filed,
for each place of business at which a person who is required to procure a
distributor's license proposes to engage in business as a distributor under this Act.
The Department, upon receipt of an application and bond in proper form,
shall issue to the applicant a license, in a form prescribed by the
Department, which shall permit the applicant to whom it is issued
to engage in business as a distributor at the place shown on his or her
application. The license shall be issued by the Department without charge
or cost to the applicant. No license issued under this Act is
transferable or assignable. The license shall be conspicuously displayed
in the place of business conducted by the licensee under the
license.
The bonding requirement in this Section does not apply to an applicant
for a distributor's license who is already bonded under the Cigarette
Tax Act or the Cigarette Use Tax Act.
Licenses issued by the Department under this Act shall be valid for a period
not to exceed one year after issuance unless sooner revoked, canceled, or
suspended as provided in this Act.
No license shall be issued to any person who is in default to the State
of Illinois for moneys due under this Act or any other tax Act administered
by the Department.
The Department may, in its discretion, upon application, authorize the
payment of the tax imposed under Section 10-10 by any distributor or
manufacturer not otherwise subject to the tax imposed under this Act who, to
the satisfaction of the Department, furnishes adequate security to ensure
payment of the tax. The distributor or manufacturer shall be issued, without
charge, a license to remit the tax. When so authorized, it shall be the duty
of the distributor or manufacturer to remit the tax imposed upon the wholesale
price of tobacco products sold or otherwise disposed of to retailers or
consumers located in this State, in the
same manner and subject to the same requirements as any other
distributor or
manufacturer licensed under this Act.
The Department may revoke, suspend, or cancel the license of a distributor
of roll-your-own tobacco (as that term is used in Section 10 of the Tobacco
Product
Manufacturers' Escrow Act) under this Act if the tobacco product manufacturer,
as
defined in Section 10 of the Tobacco Product Manufacturers' Escrow Act, that
made or sold the roll-your-own tobacco has failed to become a participating
manufacturer, as defined in subdivision (a)(1) of Section 15 of the Tobacco
Product Manufacturers' Escrow Act, or has failed to create a qualified escrow
fund for any roll-your-own tobacco manufactured by the tobacco product
manufacturer
and sold in this State or otherwise failed to bring itself into compliance with
subdivision (a)(2) of Section 15
of the Tobacco Product Manufacturers' Escrow Act.
Any person aggrieved by any decision of the Department under this Section
may, within 20 days after notice of that decision, protest and request a
hearing, whereupon the Department must give notice to that person of the time
and place fixed for the hearing and must hold a hearing in conformity with
the provisions of this Act and then issue its final administrative decision in
the matter to that person. In the absence of such a protest within 20 days,
the Department's decision becomes final without any further determination
being made or notice given.
(Source: P.A. 98-1055, eff. 1-1-16.)
(35 ILCS 143/10-21)
Sec. 10-21. Retailer's license. Beginning on January 1, 2016, no person may engage in business as a retailer of tobacco products in this State without first having obtained a license from the Department. Application for license shall be made to the Department, by electronic means, in a form prescribed by the Department. Each applicant for a license under this Section shall furnish to the Department, in an electronic format established by the Department, the following information:
The annual license fee payable to the Department for each retailer's license shall be $75. The fee will be deposited into the Tax Compliance and Administration Fund and shall be used for the cost of tobacco retail inspection and contraband tobacco and tobacco smuggling with at least two-thirds of the money being used for contraband tobacco and tobacco smuggling operations and enforcement.
Each applicant for license shall pay such fee to the Department at the time of submitting its application for license to the Department. The Department shall require an applicant for a license under this Section to electronically file and pay the fee.
A separate annual license fee shall be paid for each place of business at which a person who is required to procure a retailer's license under this Section proposes to engage in business as a retailer in Illinois under this Act.
The following are ineligible to receive a retailer's license under this Act:
The Department, upon receipt of an application and license fee, in proper form, from a person who is eligible to receive a retailer's license under this Act, shall issue to such applicant a license in form as prescribed by the Department, which license shall permit the applicant to which it is issued to engage in business as a retailer under this Act at the place shown in his application. All licenses issued by the Department under this Section shall be valid for a period not to exceed one year after issuance unless sooner revoked, canceled or suspended as provided in this Act. No license issued under this Section is transferable or assignable. Such license shall be conspicuously displayed in the place of business conducted by the licensee in Illinois under such license. A person who obtains a license as a retailer who ceases to do business as specified in the license, or who never commenced business, or whose license is suspended or revoked, shall immediately surrender the license to the Department. The Department shall not issue a license to a retailer unless the retailer is also validly registered under the Retailers Occupation Tax Act.
A retailer as defined under this Act need not obtain an additional license under this Act, but shall be deemed to be sufficiently licensed by virtue of his being properly licensed as a retailer under Section 4g of the Cigarette Tax Act.
Any person aggrieved by any decision of the Department under this Section may, within 30 days after notice of the decision, protest and request a hearing. Upon receiving a request for a hearing, the Department shall give notice to the person requesting the hearing of the time and place fixed for the hearing and shall hold a hearing in conformity with the provisions of this Act and then issue its final administrative decision in the matter to that person. In the absence of a protest and request for a hearing within 30 days, the Department's decision shall become final without any further determination being made or notice given.
(Source: P.A. 98-1055, eff. 1-1-16; 99-78, eff. 7-20-15; 99-192, eff. 1-1-16.)
(35 ILCS 143/10-22)
Sec. 10-22. Purchases of tobacco products by licensed retailers. A person who possesses a retailer's license under Section 10-21 of this Act shall obtain tobacco products for sale only from a licensed distributor or licensed secondary distributor.
(Source: P.A. 98-1055, eff. 1-1-16.)
(35 ILCS 143/10-25)
Sec. 10-25. License actions.
(a) The Department may, after notice and a hearing,
revoke, cancel, or suspend the license of any distributor or retailer who violates any of
the provisions of this Act, fails to keep books and records as required under this Act, fails to make books and records available for inspection upon demand by a duly authorized employee of the Department, or violates a rule or regulation of the Department for the administration and enforcement of this Act. The notice shall specify the alleged violation or
violations upon which the revocation, cancellation, or suspension proceeding is
based.
(b) The Department may revoke, cancel, or suspend the license of any
distributor for a violation of the Tobacco Product Manufacturers' Escrow
Enforcement Act as provided in Section 20 of that Act.
(c) If the retailer has a training program that facilitates compliance with minimum-age tobacco laws, the Department shall suspend for 3 days the license of that retailer for a fourth or subsequent violation of the Prevention of Tobacco Use by Persons under 21 Years of Age and Sale and Distribution of Tobacco Products Act, as provided in subsection (a) of Section 2 of that Act. For the purposes of this Section, any violation of subsection (a) of Section 2 of the Prevention of Tobacco Use by Persons under 21 Years of Age and Sale and Distribution of Tobacco Products Act occurring at the retailer's licensed location, during a 24-month period, shall be counted as a violation against the retailer.
If the retailer does not have a training program that facilitates compliance with minimum-age tobacco laws, the Department shall suspend for 3 days the license of that retailer for a second violation of the Prevention of Tobacco Use by Persons under 21 Years of Age and Sale and Distribution of Tobacco Products Act, as provided in subsection (a-5) of Section 2 of that Act.
If the retailer does not have a training program that facilitates compliance with minimum-age tobacco laws, the Department shall suspend for 7 days the license of that retailer for a third violation of the Prevention of Tobacco Use by Persons under 21 Years of Age and Sale and Distribution of Tobacco Products Act, as provided in subsection (a-5) of Section 2 of that Act.
If the retailer does not have a training program that facilitates compliance with minimum-age tobacco laws, the Department shall suspend for 30 days the license of a retailer for a fourth or subsequent violation of the Prevention of Tobacco Use by Persons under 21 Years of Age and Sale and Distribution of Tobacco Products Act, as provided in subsection (a-5) of Section 2 of that Act.
A training program that facilitates compliance with minimum-age tobacco laws must include at least the following elements: (i) it must explain that only individuals displaying valid identification demonstrating that they are 21 years of age or older shall be eligible to purchase cigarettes or tobacco products and (ii) it must explain where a clerk can check identification for a date of birth. The training may be conducted electronically. Each retailer that has a training program shall require each employee who completes the training program to sign a form attesting that the employee has received and completed tobacco training. The form shall be kept in the employee's file and may be used to provide proof of training.
(d) The Department may, by application to any circuit court, obtain an injunction
restraining any person who engages in business as a distributor of tobacco
products without a license (either because his or her license has been revoked,
canceled, or suspended or because of a failure to obtain a license in the first
instance) from engaging in that business until that person, as if that person
were a new applicant for a license, complies with all of the conditions,
restrictions, and requirements of Section 10-20 of this Act and qualifies for
and obtains a license. Refusal or neglect to obey the order of the court may
result in punishment for contempt.
(Source: P.A. 100-940, eff. 8-17-18; 101-2, eff. 7-1-19.)
(35 ILCS 143/10-26)
Sec. 10-26. Manufacturers; sale of little cigars. Manufacturers that are not stamping distributors may not sell little cigars to consumers in this State or to distributors, wholesalers or retailers, unless the distributors, wholesalers or retailers are stamping distributors. Manufacturers that are not stamping distributors may sell little cigars only to stamping distributors. Manufacturers that are not stamping distributors are prohibited from delivering little cigars to locations where sales of little cigars to consumers or users take place.
(Source: P.A. 98-273, eff. 8-9-13.)
(35 ILCS 143/10-27)
Sec. 10-27. Retailers; purchase and possession of little cigars.
(a) Retailers are prohibited from possessing unstamped packages of little cigars containing 20 or 25 little cigars at locations where retailers make sales of little cigars to consumers or users. Retailers that are also stamping distributors are prohibited from possessing unstamped little cigars at locations where those retailers make sales of packages of little cigars containing 20 or 25 little cigars to consumers or users. Retailers that are not stamping distributors shall purchase stamped packages of little cigars containing 20 or 25 little cigars for resale only from stamping distributors, distributors, or wholesalers. Retailers who are not stamping distributors may not purchase or possess unstamped packages of little cigars containing 20 or 25 little cigars. A retailer must be a stamping distributor to make tax exempt sales of packages of little cigars containing 20 or 25 little cigars for use outside of this State. A retailer who is a stamping distributor making sales of stamped packages of little cigars for use outside of this State may file a claim for credit for such sales with the Department on forms and in the manner provided by the Department.
(b) For purchases of packages of little cigars containing other than 20 or 25 little cigars, retailers who are not stamping distributors may not purchase or possess such packages of little cigars, unless the retailer receives an invoice from a stamping distributor, distributor, or wholesaler stating the tax on the packages has been or will be paid. Retailers shall retain such invoices for inspection by the Department. If a retailer maintaining multiple retail locations notifies the Department in writing that it maintains its invoices at a centralized business location, the Department shall have the authority to inspect invoices at the centralized business location at all times during the usual business hours of the day and the Department may grant the retailer 3 business days to produce the invoices at the retail location at which the request was made. A retailer must be a stamping distributor to make tax exempt sales of packages of little cigars containing other than 20 or 25 little cigars for use outside of this State. A retailer who is a stamping distributor making sales of packages of little cigars containing other than 20 or 25 little cigars for use outside of this State on which the tax has been or will be paid by another stamping distributor or was paid by the retailer may file a claim for credit for such sales with the Department on forms and in the manner provided by the Department.
(c) Notwithstanding anything to the contrary in this Act, a retailer unknowingly possessing contraband little cigars obtained from a stamping distributor, distributor, or wholesaler or other person engaged in the business of selling tobacco products or knowingly possessing contraband little cigars obtained from a stamping distributor is not subject to penalties for such purchase or possession if the retailer, within 48 hours after discovering that the little cigars are contraband little cigars, excluding Saturdays, Sundays, and holidays: (i) notifies the Department and the person from whom the little cigars were obtained, orally and in writing, that he or she possesses contraband little cigars; (ii) places the contraband little cigars in one or more containers and seals those containers; and (iii) places on the containers the following or similar language: "Contraband Little Cigars. Not For Sale." All contraband little cigars in the possession of a retailer remain subject to forfeiture under the provisions of this Act.
(Source: P.A. 98-273, eff. 8-9-13.)
(35 ILCS 143/10-28)
Sec. 10-28. Wholesalers.
(a) Wholesalers are prohibited from possessing unstamped packages of little cigars containing 20 or 25 little cigars unless the wholesalers are stamping distributors. A wholesaler must be a stamping distributor to make tax exempt sales of packages of little cigars containing 20 or 25 little cigars for use outside of this State. A wholesaler who is a stamping distributor making sales of stamped packages of little cigars for use outside of this State may file a claim for credit for such sales with the Department on forms and in the manner provided by the Department.
(b) For purchases of packages of little cigars containing other than 20 or 25 little cigars, wholesalers who are not stamping distributors may not purchase or possess such packages of little cigars, unless the wholesalers receive an invoice from a stamping distributor, distributor, or wholesaler stating the tax on the packages has been or will be paid. Wholesalers shall retain such invoices for inspection by the Department. Every sales invoice for packages of little cigars containing other than 20 or 25 little cigars issued by a wholesaler to a person who is not a stamping distributor shall state that the tax imposed by the Act has been or will be paid. If a wholesaler maintaining multiple wholesale locations notifies the Department in writing that it maintains its invoices at a centralized business location, the Department shall have the authority to inspect invoices at the centralized business location at all times during the usual business hours of the day and the Department may grant the wholesaler 3 business days to produce the invoices at the wholesale location at which the request was made. A wholesaler must be a stamping distributor to make tax exempt sales of packages of little cigars containing other than 20 or 25 little cigars for use outside of this State. A wholesaler who is a stamping distributor making sales of packages of little cigars containing other than 20 or 25 little cigars for use outside of this State on which the tax has been or will be paid by another stamping distributor or was paid by the wholesaler may file a claim for credit for such sales with the Department on forms and in the manner provided by the Department.
(Source: P.A. 98-273, eff. 8-9-13.)
(35 ILCS 143/10-29)
Sec. 10-29. Invoices; packages of little cigars.
(a) Every sales invoice for packages of little cigars containing other than 20 or 25 little cigars issued by a stamping distributor to a person who is not a stamping distributor shall contain both the stamping distributor's Tobacco Products License number and Cigarette Tax Distributor's License number or Cigarette Use Tax Distributor's License number and state that the tax imposed by the Act has been or will be paid or that the sale is exempt in whole or in part and the exemption which is claimed.
(b) Any stamping distributor, distributor or wholesaler who knowingly falsely states on the invoice that the tax imposed by this Act has been or will be paid, or any officer or employee of a corporation, member or employee of a partnership, or manager, member or employee of a limited liability company that is a stamping distributor, distributor, or wholesaler, who, as such officer, employee, manager, or member, knowingly causes to be issued an invoice on behalf of such entity, that such person knows falsely states that the tax imposed by the Act has been or will be paid, is guilty of a Class 4 felony.
(c) Whenever any sales invoice issued by a stamping distributor, distributor or wholesaler for the sale of packages of little cigars containing other than 20 or 25 little cigars does not comply with subsection (b) of Section 10-28 or subsection (a) of this Section by indicating that the tax has been or will be paid or that the sale is exempt in whole or in part, a prima facie presumption shall arise that the tax imposed by Section 10-10 of this Act has not been paid on the little cigars listed on the sales invoice. A person who is not a stamping distributor and is unable to rebut this presumption is in violation of this Act and is subject to the penalties provided in this Act.
(Source: P.A. 98-273, eff. 8-9-13.)
(35 ILCS 143/10-30)
Sec. 10-30. Returns.
(a) Every distributor shall, on or before the 15th day of
each month, file a return with the Department covering the preceding calendar
month. The return shall disclose the wholesale price for all tobacco products other than moist snuff and the quantity in ounces of moist snuff sold
or otherwise disposed of and other information that the Department may
reasonably require. The return shall be filed upon a form prescribed and
furnished by the Department.
(b) In addition to the information required under subsection (a), on or before the 15th day of each month, covering the preceding calendar month, each stamping distributor shall, on forms prescribed and furnished by the Department, report the quantity of little cigars sold or otherwise disposed of, including the number of packages of little cigars sold or disposed of during the month containing 20 or 25 little cigars.
(c) At the time when any return of any distributor is due to be filed with
the Department, the distributor shall also remit to the Department the
tax liability that the distributor has incurred for transactions
occurring in the preceding calendar month.
(d) The Department may adopt rules to require the electronic filing of any return or document required to be filed under this Act. Those rules may provide for exceptions from the filing requirement set forth in this paragraph for persons who demonstrate that they do not have access to the Internet and petition the Department to waive the electronic filing requirement.
(e) If any payment provided for in this Section exceeds the distributor's liabilities under this Act, as shown on an original return, the distributor may credit such excess payment against liability subsequently to be remitted to the Department under this Act, in accordance with reasonable rules adopted by the Department.
(Source: P.A. 100-1171, eff. 1-4-19.)
(35 ILCS 143/10-35)
Sec. 10-35. Record keeping.
(a) Every distributor, as defined in Section 10-5,
shall keep complete and accurate records of tobacco products held, purchased,
manufactured, brought in or caused to be brought in from without the State, and
tobacco products sold, or otherwise disposed of, and shall preserve and keep
all invoices, bills of lading, sales records, and copies of bills
of sale, the wholesale price for tobacco products sold or otherwise disposed
of, an inventory of tobacco products prepared as of December 31 of each year or
as of the last day of the distributor's fiscal year if he or she files federal
income tax returns on the basis of a fiscal year, and other pertinent papers
and documents relating to the manufacture, purchase, sale, or disposition of
tobacco products. Every sales invoice issued by a licensed distributor to a retailer in this State shall contain the distributor's Tobacco Products License number unless the distributor has been granted a waiver by the Department in response to a written request in cases where (i) the distributor sells little cigars or other tobacco products only to licensed retailers that are wholly-owned by the distributor or owned by a wholly-owned subsidiary of the distributor; (ii) the licensed retailer obtains little cigars or other tobacco products only from the distributor requesting the waiver; and (iii) the distributor affixes the tax stamps to the original packages of little cigars or has or will pay the tax on the other tobacco products sold to the licensed retailer. The distributor shall file a written request with the Department, and, if the Department determines that the distributor meets the conditions for a waiver, the Department shall grant the waiver.
(b) Every retailer, as defined in Section 10-5, whether or not the retailer has obtained a retailer's license pursuant to Section 4g, shall keep complete and accurate records of tobacco products held, purchased, sold, or otherwise disposed of, and shall preserve and keep all invoices, bills of lading, sales records, and copies of bills of sale, returns and other pertinent papers and documents relating to the purchase, sale, or disposition of tobacco products. Such records need not be maintained on the licensed premises, but must be maintained in the State of Illinois; however, if access is available electronically, the records may be maintained out of state. However, all original invoices or copies thereof covering purchases of tobacco products must be retained on the licensed premises for a period of 90 days after such purchase, unless the Department has granted a waiver in response to a written request in cases where records are kept at a central business location within the State of Illinois or in cases where records that are available electronically are maintained out of state. The Department shall adopt rules regarding the eligibility for a waiver, revocation of a waiver, and requirements and standards for maintenance and accessibility of records located at a central location out-of-State pursuant to a waiver provided under this Section.
(c) Books, records, papers, and documents that are
required by this Act to be kept shall, at all times during the usual business
hours of the day, be subject to inspection by the Department or its duly
authorized agents and employees. The books, records, papers, and documents for
any period with respect to which the Department is authorized to issue a notice
of tax liability shall be preserved until the expiration of that period.
(Source: P.A. 99-192, eff. 1-1-16; 100-940, eff. 8-17-18.)
(35 ILCS 143/10-35a)
Sec. 10-35a. Failure to keep or produce books and records. Any person who fails to keep books and records or fails to produce books and records for inspection, as required by Section 10-35, is liable to pay to the Department, for deposit in the Tax Compliance and Administration Fund, a penalty of $1,000 for the first failure to keep books and records or failure to produce books and records for inspection, as required by Section 10-35, and $3,000 for each subsequent failure to keep books and records or failure to produce books and records for inspection, as required by Section 10-35. The Department may adopt rules to administer the penalties under this Section.
(Source: P.A. 100-940, eff. 8-17-18.)
(35 ILCS 143/10-36)
Sec. 10-36. (Repealed).
(Source: P.A. 98-273, eff. 8-9-13. Repealed by P.A. 100-940, eff. 8-17-18.)
(35 ILCS 143/10-37)
Sec. 10-37. Proof of payment of tax imposed by this Act. Every licensed distributor of tobacco products in this State is required to show proof of the tax having been paid as required by this Act by displaying its Tobacco Products License number on every sales invoice issued to a retailer in this State. No retailer shall possess tobacco products without either a proper invoice indicating that the tobacco products tax was paid by a distributor for the tobacco products in the retailer's possession or other proof that the tax was paid by the retailer if it has purchased tobacco products on which tax has not been paid as required by this Act. Failure to comply with the provisions of this paragraph may be grounds for revocation of a distributor's or retailer's license in accordance with Section 10-25 of this Act or Section 6 of the Cigarette Tax Act. In addition, the Department may impose a civil penalty not to exceed $1,000 for the first violation and $3,000 for each subsequent violation, which shall be deposited into the Tax Compliance and Administration Fund.
(Source: P.A. 100-940, eff. 8-17-18.)
(35 ILCS 143/10-38)
Sec. 10-38. Presumption for unlicensed distributors or persons. Whenever any person obtains tobacco products from an unlicensed in-state or out-of-state distributor or person, a prima facie presumption shall arise that the tax imposed by this Act on such tobacco products has not been paid in violation of this Act. Invoices or other documents kept in the normal course of business in the possession of a person reflecting purchases of tobacco products from an unlicensed in-state or out-of-state distributor or person or invoices or other documents kept in the normal course of business obtained by the Department from in-state or out-of-state distributors or persons, are sufficient to raise the presumption that the tax imposed by this Act has not been paid. If a presumption is raised, the Department may assess tax, penalty, and interest on the tobacco products. In addition, any person who violates this Section is liable to pay to the Department, for deposit in the Tax Compliance and Administration Fund, a penalty of $1,000 for the first violation and $3,000 for any subsequent violation. The Department may adopt rules to administer the penalties under this Section.
(Source: P.A. 100-940, eff. 8-17-18.)
(35 ILCS 143/10-40)
Sec. 10-40. Invoices. Every distributor or other person who purchases tobacco products for resale
for shipment into Illinois from a point outside Illinois shall procure invoices
in duplicate covering each shipment and shall make the invoices available for inspection upon demand by a duly authorized employee of the Department, and shall, if the Department so
requires, furnish one copy of each invoice to the Department at the time
of filing the return required by this Act.
(Source: P.A. 100-940, eff. 8-17-18.)
(35 ILCS 143/10-45)
Sec. 10-45. Incorporation by reference. All of the provisions of Sections
4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, 10, 11, 11a,
and 12 of the Retailers' Occupation Tax Act, and all applicable provisions of
the Uniform Penalty and Interest Act that are not inconsistent with this Act,
apply to distributors of tobacco products to the same extent as if those
provisions were included in this Act. References in the
incorporated Sections of the Retailers' Occupation Tax Act to retailers, to
sellers, or to persons engaged in the business of selling tangible personal
property mean distributors when used in this Act. References in the
incorporated Sections to sales of tangible personal property mean sales
of tobacco products when used in this Act.
All of the provisions of Sections 7, 8, 8a, 16, 18a, 18b, 18c, 22, 23, 24, 26, 27, and 28a of the Cigarette Tax Act which are not inconsistent with this Act shall apply, as far as practicable, to the subject matter of this Act to the same extent as if those provisions were included in this Act. References in the incorporated Sections to sales of cigarettes mean sales of little cigars in packages of 20 or 25 little cigars.
(Source: P.A. 98-273, eff. 8-9-13.)
(35 ILCS 143/10-50)
Sec. 10-50. Violations and penalties. When the amount due is under $300,
any distributor who fails to file a return, willfully fails or refuses to
make any payment to the Department of the tax imposed by this Act, or files
a fraudulent return, or any officer or agent of a corporation engaged in the
business of distributing tobacco products to retailers and consumers
located in this State who signs a fraudulent
return filed on behalf of the corporation, or any accountant or other agent
who knowingly enters false information on the return of any taxpayer under this
Act is guilty of a Class 4 felony.
Any person who violates any provision of Section 10-20, 10-21, or 10-22 of this Act, fails
to keep books and records as required under this Act, or willfully violates a
rule or regulation of the Department for the administration and enforcement of
this Act is guilty of a Class 4 felony. A person commits a separate offense on
each day that he or she engages in business in violation of Section 10-20, 10-21, or 10-22 of
this Act. If a person fails to produce the books and records for inspection by the Department upon request, a prima facie presumption shall arise that the person has failed to keep books and records as required under this Act. A person who is unable to rebut this presumption is in violation of this Act and is subject to the penalties provided in this Section.
When the amount due is under $300, any person who accepts money that is due
to the Department under this Act from a taxpayer for the purpose of acting as
the taxpayer's agent to make the payment to the Department, but who fails to
remit the payment to the Department when due, is guilty of a Class 4 felony.
Any person who violates any provision of Sections 10-20, 10-21 and 10-22 of this Act, fails to keep books and records as required under this Act, or willfully violates a rule or regulation of the Department for the administration and enforcement of this Act is guilty of a business offense and may be fined up to $5,000. If a person fails to produce books and records for inspection by the Department upon request, a prima facie presumption shall arise that the person has failed to keep books and records as required under this Act. A person who is unable to rebut this presumption is in violation of this Act and is subject to the penalties provided in this Section. A person commits a separate offense on each day that he or she engages in business in violation of Sections 10-20, 10-21 and 10-22 of this Act.
When the amount due is $300 or more, any distributor who files,
or causes to be filed, a fraudulent return, or any officer or agent of a
corporation engaged in the business of distributing tobacco products
to retailers and consumers located in this State who files or causes to be
filed or signs or causes
to be signed a fraudulent return filed on behalf of the corporation, or
any accountant or other agent who knowingly enters false information on
the return of any taxpayer under this Act is guilty of a Class 3 felony.
When the amount due is $300 or more, any person engaged in the business
of distributing tobacco products to retailers and consumers located in this
State who fails to file a return,
willfully fails or refuses to make any payment to the Department of the tax
imposed by this Act, or accepts money that is due to the Department under
this Act from a taxpayer for the purpose of acting as the taxpayer's agent to
make payment to the Department but fails to remit such payment to the
Department when due is guilty of a Class 3 felony.
When the amount due is under $300, any retailer who fails to file a return, willfully fails or refuses to make any payment to the Department of the tax imposed by this Act, or files a fraudulent return, or any officer or agent of a corporation engaged in the retail business of selling tobacco products to purchasers of tobacco products for use and consumption located in this State who signs a fraudulent return filed on behalf of the corporation, or any accountant or other agent who knowingly enters false information on the return of any taxpayer under this Act is guilty of a Class A misdemeanor for a first offense and a Class 4 felony for each subsequent offense.
When the amount due is $300 or more, any retailer who fails to file a return, willfully fails or refuses to make any payment to the Department of the tax imposed by this Act, or files a fraudulent return, or any officer or agent of a corporation engaged in the retail business of selling tobacco products to purchasers of tobacco products for use and consumption located in this State who signs a fraudulent return filed on behalf of the corporation, or any accountant or other agent who knowingly enters false information on the return of any taxpayer under this Act is guilty of a Class 4 felony.
Any person whose principal place of business is in this State and
who is charged with a violation under this Section shall be
tried in the county where his or her principal place of business is
located unless he or she asserts a right to be tried in another venue.
If the taxpayer does not have his or her principal place of business
in this State, however, the hearing must be held in Sangamon County unless
the taxpayer asserts a right to be tried in another venue.
Any taxpayer or agent of a taxpayer who with the intent to defraud
purports to make a payment due to the Department by issuing or delivering a
check or other order upon a real or fictitious depository for the payment
of money, knowing that it will not be paid by the depository, is
guilty of a deceptive practice in violation of Section 17-1 of the Criminal
Code of 2012.
A prosecution for a violation described in this Section may be commenced
within 3 years after the commission of the act constituting the violation.
(Source: P.A. 100-201, eff. 8-18-17; 100-940, eff. 8-17-18.)
(35 ILCS 143/10-53)
Sec. 10-53. Acting as a retailer of tobacco products without a license. Any person who knowingly acts as a retailer of tobacco products in this State without first having obtained a license to do so in compliance with Section 10-21 of this Act or a license in compliance with Section 4g of the Cigarette Tax Act shall be guilty of a Class A misdemeanor for the first offense and a Class 4 felony for a second or subsequent offense. Each day such person operates as a retailer without a license constitutes a separate offense.
(Source: P.A. 98-1055, eff. 1-1-16.)
(35 ILCS 143/10-55)
Sec. 10-55.
Arrest; search and seizure without warrant.
Any duly authorized
employee of the Department (i) may arrest without warrant any person committing
in his or her presence a violation of any of the provisions of this Act, (ii)
may without a search warrant inspect all tobacco products located in any place
of business, (iii) may seize any tobacco products in accordance with the
provisions of this Act, and (iv) may seize any vending device in which those
tobacco products are found. The tobacco products and vending devices so seized
are subject to confiscation and forfeiture as provided in Sections 10-56
through 10-58.
(Source: P.A. 92-743, eff. 7-25-02.)
(35 ILCS 143/10-56)
Sec. 10-56.
Seizure and forfeiture.
After seizing any tobacco products or
vending devices, as provided in Section 10-55, the
Department must hold a hearing and determine whether the distributor or
retailer was properly licensed to sell the tobacco products at the time of
their seizure by the Department. The Department shall give not less than 20
days' notice of the time and place of the hearing to the owner of the property,
if the owner is known, and also to the person in whose possession the property
was found, if that person is known and if the person in possession is
not the owner of the property. If neither the owner nor the person in
possession of the property is known, the Department must cause publication of
the time and place of the hearing to be made at least once in each week for 3
weeks successively in a newspaper of general circulation in the county where
the hearing is to be held.
If, as the result of the hearing, the Department determines that the
distributor or retailer was not properly licensed at the time the tobacco
products were seized, the Department must enter an order declaring the tobacco
products or vending devices confiscated and forfeited to the State,
to be held by the Department for disposal by it as provided in Section 10-58.
The Department must give notice of the order to the owner of the
property, if the owner is known, and also to the person in whose possession the
property was found, if that person is known and if the person in
possession is not the owner of the property. If neither the owner nor the
person in possession of the property is known, the Department must cause
publication of the order to be made at least once in each week for 3 weeks
successively in a newspaper of general circulation in the county where the
hearing was held.
(Source: P.A. 92-743, eff. 7-25-02.)
(35 ILCS 143/10-57)
Sec. 10-57.
Search warrant; issuance and return; process; confiscation of
property; forfeitures. If a peace officer of this State or any duly
authorized officer or employee of the Department has reason to believe that any
violation of this Act has occurred and that the person violating the Act has
in that person's possession any tobacco products or vending device
containing tobacco products, that peace officer or officer or employee of the
Department may file or cause to be filed his or her
complaint in writing, verified by affidavit, with any court within whose
jurisdiction the premises to be searched are situated, stating the facts upon
which the belief is founded, the premises to be searched, and the property to
be seized, and procure a search warrant and execute that warrant. Upon the
execution of the search warrant, the peace officer, or officer or employee of
the Department, executing the search warrant shall make due return of the
warrant to the court issuing the warrant, together with an inventory of the
property taken under the warrant. The court must then issue process against the
owner of the property if the owner is known; otherwise, process must be issued
against the person in whose possession the property is found, if that person is
known. In case of inability to serve process upon the owner or the person in
possession of the property at the time of its seizure,
notice of the proceedings before the court must be given in the same manner as
required by the law governing cases of attachment. Upon the return of
the process duly served or upon the posting or publishing of notice made, as
appropriate, the court or jury, if a jury is demanded, shall
proceed to determine whether or not the property so seized was held or
possessed in violation of this Act. If a violation is found, judgment shall be
entered confiscating the property and forfeiting it to the State and ordering
its delivery to the Department. In addition, the court may tax and assess the
costs of the proceedings.
When any tobacco products or any vending devices are declared forfeited to
the State by any court and the confiscated and forfeited property is
delivered to the Department, the Department shall sell
the property for the best price obtainable and shall forthwith pay over the
proceeds of the sale to the State Treasurer. If the
value of the property to be sold at any one time is $500 or more, however, the
property shall be sold only to the highest and best bidder on terms and
conditions, and on open competitive bidding after public advertisement, in a
manner and for terms as the Department, by rule, may prescribe.
(Source: P.A. 92-743, eff. 7-25-02.)
(35 ILCS 143/10-58)
Sec. 10-58. Sale of forfeited tobacco products or vending devices.
(a) When any tobacco products or any vending devices are
declared forfeited to the State by the Department, as provided in Section
10-55, and when all proceedings for the judicial review of the
Department's decision have terminated, the Department shall, to the extent that
its decision is sustained on review, sell the property for the best price
obtainable and shall forthwith pay over the proceeds of the sale to the State
Treasurer. If the value of the property to be sold at any one time is $500 or
more, however, the property shall be sold only to the highest and best bidder
on terms and conditions, and on open competitive bidding after public
advertisement, in a manner and for terms as the Department, by rule,
may prescribe.
(b) If no complaint for review, as provided in Section 12 of the Retailers'
Occupation Tax Act, has been filed within the time required by Law, and if no stay order has been entered under that
Law, the Department shall proceed to destroy, maintain and use in an undercover capacity, or sell the property for the best price
obtainable and shall forthwith pay over the proceeds of the sale to the State
Treasurer. If the value of the property to be sold at any one time is $500 or
more, however, the property shall be sold only to the highest and best bidder
on terms and conditions, and on open competitive bidding after public
advertisement, in a manner and for terms as the Department, by rule, may
prescribe.
(c) Upon making a sale of tobacco products as provided in this Section, the
Department shall affix a distinctive stamp to each of the tobacco products so
sold indicating that they are sold under this Section.
(d) Notwithstanding the foregoing, any tobacco products seized under this
Act may, at the discretion of the Director of Revenue, be distributed to any
eleemosynary institution within the State of Illinois.
(Source: P.A. 97-1129, eff. 8-28-12.)
(35 ILCS 143/10-90)
Sec. 10-90.
The Tobacco Products Tax Act is repealed.
(Source: P.A. 89-21, eff. 6-6-95.)
(35 ILCS 143/10-95)
Sec. 10-95.
(Amendatory provisions; text omitted).
(Source: P.A. 89-21, eff. 6-6-95.)
Structure Illinois Compiled Statutes