Illinois 2023-2024 Regular Session

Illinois Senate Bill SB1850 Compare Versions

Version 1 (Old)

Version 2 (New)

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2		-	SB1850 Engrossed LRB103 27454 HLH 53826 b
	1	+	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1850 Introduced 2/9/2023, by Sen. Elgie R. Sims, Jr. SYNOPSIS AS INTRODUCED: 35 ILCS 130/2 from Ch. 120, par. 453.2 Amends the Cigarette Tax Act. Makes changes concerning the distribution of moneys collected pursuant to (i) the Cigarette Tax Act, (ii) the Cigarette Use Tax Act, and (iii) the tax imposed on little cigars under the Tobacco Products Tax Act of 1995. Effective immediately. LRB103 27454 HLH 53826 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1850 Introduced 2/9/2023, by Sen. Elgie R. Sims, Jr. SYNOPSIS AS INTRODUCED: 35 ILCS 130/2 from Ch. 120, par. 453.2 35 ILCS 130/2 from Ch. 120, par. 453.2 Amends the Cigarette Tax Act. Makes changes concerning the distribution of moneys collected pursuant to (i) the Cigarette Tax Act, (ii) the Cigarette Use Tax Act, and (iii) the tax imposed on little cigars under the Tobacco Products Tax Act of 1995. Effective immediately. LRB103 27454 HLH 53826 b LRB103 27454 HLH 53826 b A BILL FOR
	2	+	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1850 Introduced 2/9/2023, by Sen. Elgie R. Sims, Jr. SYNOPSIS AS INTRODUCED:
	3	+	35 ILCS 130/2 from Ch. 120, par. 453.2 35 ILCS 130/2 from Ch. 120, par. 453.2
	4	+	35 ILCS 130/2 from Ch. 120, par. 453.2
	5	+	Amends the Cigarette Tax Act. Makes changes concerning the distribution of moneys collected pursuant to (i) the Cigarette Tax Act, (ii) the Cigarette Use Tax Act, and (iii) the tax imposed on little cigars under the Tobacco Products Tax Act of 1995. Effective immediately.
	6	+	LRB103 27454 HLH 53826 b LRB103 27454 HLH 53826 b
	7	+	LRB103 27454 HLH 53826 b
	8	+	A BILL FOR
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3	11		1 AN ACT concerning revenue.
4	12		2 Be it enacted by the People of the State of Illinois,
5	13		3 represented in the General Assembly:
6	14		4 Section 5. The Cigarette Tax Act is amended by changing
7	15		5 Section 2 as follows:
8	16		6 (35 ILCS 130/2) (from Ch. 120, par. 453.2)
9	17		7 Sec. 2. Tax imposed; rate; collection, payment, and
10	18		8 distribution; discount.
11	19		9 (a) Beginning on July 1, 2019, in place of the aggregate
12	20		10 tax rate of 99 mills previously imposed by this Act, a tax is
13	21		11 imposed upon any person engaged in business as a retailer of
14	22		12 cigarettes at the rate of 149 mills per cigarette sold or
15	23		13 otherwise disposed of in the course of such business in this
16	24		14 State.
17	25		15 (b) The payment of such taxes shall be evidenced by a stamp
18	26		16 affixed to each original package of cigarettes, or an
19	27		17 authorized substitute for such stamp imprinted on each
20	28		18 original package of such cigarettes underneath the sealed
21	29		19 transparent outside wrapper of such original package, as
22	30		20 hereinafter provided. However, such taxes are not imposed upon
23	31		21 any activity in such business in interstate commerce or
24	32		22 otherwise, which activity may not under the Constitution and
25	33		23 statutes of the United States be made the subject of taxation
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	37	+	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1850 Introduced 2/9/2023, by Sen. Elgie R. Sims, Jr. SYNOPSIS AS INTRODUCED:
	38	+	35 ILCS 130/2 from Ch. 120, par. 453.2 35 ILCS 130/2 from Ch. 120, par. 453.2
	39	+	35 ILCS 130/2 from Ch. 120, par. 453.2
	40	+	Amends the Cigarette Tax Act. Makes changes concerning the distribution of moneys collected pursuant to (i) the Cigarette Tax Act, (ii) the Cigarette Use Tax Act, and (iii) the tax imposed on little cigars under the Tobacco Products Tax Act of 1995. Effective immediately.
	41	+	LRB103 27454 HLH 53826 b LRB103 27454 HLH 53826 b
	42	+	LRB103 27454 HLH 53826 b
	43	+	A BILL FOR
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	49	+	35 ILCS 130/2 from Ch. 120, par. 453.2
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34	68		1 by this State.
35	69		2 Out of the 149 mills per cigarette tax imposed by
36	70		3 subsection (a), until July 1, 2023, the revenues received from
37	71		4 4 mills shall be paid into the Common School Fund each month,
38	72		5 not to exceed $9,000,000 per month. Out of the 149 mills per
39	73		6 cigarette tax imposed by subsection (a), until July 1, 2023,
40	74		7 all of the revenues received from 7 mills shall be paid into
41	75		8 the Common School Fund each month. Out of the 149 mills per
42	76		9 cigarette tax imposed by subsection (a), until July 1, 2023,
43	77		10 50 mills per cigarette each month shall be paid into the
44	78		11 Healthcare Provider Relief Fund.
45	79		12 Beginning on July 1, 2006 and until July 1, 2023, all of
46	80		13 the moneys received by the Department of Revenue pursuant to
47	81		14 this Act and the Cigarette Use Tax Act, other than the moneys
48	82		15 that are dedicated to the Common School Fund and, beginning on
49	83		16 the effective date of this amendatory Act of the 97th General
50	84		17 Assembly, other than the moneys from the additional taxes
51	85		18 imposed by this amendatory Act of the 97th General Assembly
52	86		19 that must be paid each month into the Healthcare Provider
53	87		20 Relief Fund, and other than the moneys from the additional
54	88		21 taxes imposed by this amendatory Act of the 101st General
55	89		22 Assembly that must be paid each month under subsection (c),
56	90		23 shall be distributed each month as follows: first, there shall
57	91		24 be paid into the General Revenue Fund an amount that, when
58	92		25 added to the amount paid into the Common School Fund for that
59	93		26 month, equals $29,200,000; then, from the moneys remaining, if
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70	104		1 any amounts required to be paid into the General Revenue Fund
71	105		2 in previous months remain unpaid, those amounts shall be paid
72	106		3 into the General Revenue Fund; then from the moneys remaining,
73	107		4 $5,000,000 per month shall be paid into the School
74	108		5 Infrastructure Fund; then, if any amounts required to be paid
75	109		6 into the School Infrastructure Fund in previous months remain
76	110		7 unpaid, those amounts shall be paid into the School
77	111		8 Infrastructure Fund; then the moneys remaining, if any, shall
78	112		9 be paid into the Long-Term Care Provider Fund. Any amounts
79	113		10 required to be paid into the General Revenue Fund, the School
80	114		11 Infrastructure Fund, the Long-Term Care Provider Fund, the
81	115		12 Common School Fund, the Capital Projects Fund, or the
82	116		13 Healthcare Provider Relief Fund under this subsection that
83	117		14 remain unpaid as of July 1, 2023 shall be deemed satisfied on
84	118		15 that date, eliminating any deficiency accrued through that
85	119		16 date.
86	120		17 (c) Beginning on July 1, 2019 and until July 1, 2023, all
87	121		18 of the moneys from the additional taxes imposed by Public Act
88	122		19 101-31, except for moneys received from the tax on electronic
89	123		20 cigarettes, received by the Department of Revenue pursuant to
90	124		21 this Act, the Cigarette Use Tax Act, and the Tobacco Products
91	125		22 Tax Act of 1995 shall be distributed each month into the
92	126		23 Capital Projects Fund.
93	127		24 (c-5) Beginning on July 1, 2023, all of the moneys
94	128		25 received by the Department of Revenue pursuant to (i) this
95	129		26 Act, (ii) the Cigarette Use Tax Act, and (iii) the tax imposed
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106	140		1 on little cigars under Section 10-10 of the Tobacco Products
107	141		2 Tax Act of 1995 shall be paid each month as follows:
108	142		3 (1) 7% into the Common School Fund;
109	143		4 (2) 34% into the Healthcare Provider Relief Fund;
110	144		5 (3) 34% into the Capital Projects Fund; and
111	145		6 (4) 25% into the General Revenue Fund.
112	146		7 (d) Until July 1, 2023, except Except for moneys received
113	147		8 from the additional taxes imposed by Public Act 101-31, moneys
114	148		9 collected from the tax imposed on little cigars under Section
115	149		10 10-10 of the Tobacco Products Tax Act of 1995 shall be included
116	150		11 with the moneys collected under the Cigarette Tax Act and the
117	151		12 Cigarette Use Tax Act when making distributions to the Common
118	152		13 School Fund, the Healthcare Provider Relief Fund, the General
119	153		14 Revenue Fund, the School Infrastructure Fund, and the
120	154		15 Long-Term Care Provider Fund under this Section. Any amounts,
121	155		16 including moneys collected from the tax imposed on little
122	156		17 cigars under Section 10-10 of the Tobacco Products Tax Act of
123	157		18 1995, that are required to be paid into the General Revenue
124	158		19 Fund, the School Infrastructure Fund, the Long-Term Care
125	159		20 Provider Fund, the Common School Fund, the Capital Projects
126	160		21 Fund, or the Healthcare Provider Relief Fund under subsection
127	161		22 (b) that remain unpaid as of July 1, 2023 shall be deemed
128	162		23 satisfied on that date, eliminating any deficiency accrued
129	163		24 through that date. Beginning on July 1, 2023, moneys collected
130	164		25 from the tax imposed on little cigars under Section 10-10 of
131	165		26 the Tobacco Products Tax Act of 1995 shall be included with the
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142	176		1 moneys collected under the Cigarette Tax Act and the Cigarette
143	177		2 Use Tax Act when making distributions under subsections (c-5).
144	178		3 (e) If the tax imposed herein terminates or has
145	179		4 terminated, distributors who have bought stamps while such tax
146	180		5 was in effect and who therefore paid such tax, but who can
147	181		6 show, to the Department's satisfaction, that they sold the
148	182		7 cigarettes to which they affixed such stamps after such tax
149	183		8 had terminated and did not recover the tax or its equivalent
150	184		9 from purchasers, shall be allowed by the Department to take
151	185		10 credit for such absorbed tax against subsequent tax stamp
152	186		11 purchases from the Department by such distributor.
153	187		12 (f) The impact of the tax levied by this Act is imposed
154	188		13 upon the retailer and shall be prepaid or pre-collected by the
155	189		14 distributor for the purpose of convenience and facility only,
156	190		15 and the amount of the tax shall be added to the price of the
157	191		16 cigarettes sold by such distributor. Collection of the tax
158	192		17 shall be evidenced by a stamp or stamps affixed to each
159	193		18 original package of cigarettes, as hereinafter provided. Any
160	194		19 distributor who purchases stamps may credit any excess
161	195		20 payments verified by the Department against amounts
162	196		21 subsequently due for the purchase of additional stamps, until
163	197		22 such time as no excess payment remains.
164	198		23 (g) Each distributor shall collect the tax from the
165	199		24 retailer at or before the time of the sale, shall affix the
166	200		25 stamps as hereinafter required, and shall remit the tax
167	201		26 collected from retailers to the Department, as hereinafter
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178	212		1 provided. Any distributor who fails to properly collect and
179	213		2 pay the tax imposed by this Act shall be liable for the tax.
180	214		3 (h) Any distributor having cigarettes in his or her
181	215		4 possession on July 1, 2019 to which tax stamps have been
182	216		5 affixed, and any distributor having stamps in his or her
183	217		6 possession on July 1, 2019 that have not been affixed to
184	218		7 packages of cigarettes before July 1, 2019, is required to pay
185	219		8 the additional tax that begins on July 1, 2019 imposed by this
186	220		9 amendatory Act of the 101st General Assembly to the extent
187	221		10 that the volume of affixed and unaffixed stamps in the
188	222		11 distributor's possession on July 1, 2019 exceeds the average
189	223		12 monthly volume of cigarette stamps purchased by the
190	224		13 distributor in calendar year 2018. This payment, less the
191	225		14 discount provided in subsection (l), is due when the
192	226		15 distributor first makes a purchase of cigarette stamps on or
193	227		16 after July 1, 2019 or on the first due date of a return under
194	228		17 this Act occurring on or after July 1, 2019, whichever occurs
195	229		18 first. Those distributors may elect to pay the additional tax
196	230		19 on packages of cigarettes to which stamps have been affixed
197	231		20 and on any stamps in the distributor's possession that have
198	232		21 not been affixed to packages of cigarettes in their possession
199	233		22 on July 1, 2019 over a period not to exceed 12 months from the
200	234		23 due date of the additional tax by notifying the Department in
201	235		24 writing. The first payment for distributors making such
202	236		25 election is due when the distributor first makes a purchase of
203	237		26 cigarette tax stamps on or after July 1, 2019 or on the first
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214	248		1 due date of a return under this Act occurring on or after July
215	249		2 1, 2019, whichever occurs first. Distributors making such an
216	250		3 election are not entitled to take the discount provided in
217	251		4 subsection (l) on such payments.
218	252		5 (i) Any retailer having cigarettes in its possession on
219	253		6 July 1, 2019 to which tax stamps have been affixed is not
220	254		7 required to pay the additional tax that begins on July 1, 2019
221	255		8 imposed by this amendatory Act of the 101st General Assembly
222	256		9 on those stamped cigarettes.
223	257		10 (j) Distributors making sales of cigarettes to secondary
224	258		11 distributors shall add the amount of the tax to the price of
225	259		12 the cigarettes sold by the distributors. Secondary
226	260		13 distributors making sales of cigarettes to retailers shall
227	261		14 include the amount of the tax in the price of the cigarettes
228	262		15 sold to retailers. The amount of tax shall not be less than the
229	263		16 amount of taxes imposed by the State and all local
230	264		17 jurisdictions. The amount of local taxes shall be calculated
231	265		18 based on the location of the retailer's place of business
232	266		19 shown on the retailer's certificate of registration or
233	267		20 sub-registration issued to the retailer pursuant to Section 2a
234	268		21 of the Retailers' Occupation Tax Act. The original packages of
235	269		22 cigarettes sold to the retailer shall bear all the required
236	270		23 stamps, or other indicia, for the taxes included in the price
237	271		24 of cigarettes.
238	272		25 (k) The amount of the Cigarette Tax imposed by this Act
239	273		26 shall be separately stated, apart from the price of the goods,
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250	284		1 by distributors, manufacturer representatives, secondary
251	285		2 distributors, and retailers, in all bills and sales invoices.
252	286		3 (l) The distributor shall be required to collect the tax
253	287		4 provided under paragraph (a) hereof, and, to cover the costs
254	288		5 of such collection, shall be allowed a discount during any
255	289		6 year commencing July 1st and ending the following June 30th in
256	290		7 accordance with the schedule set out hereinbelow, which
257	291		8 discount shall be allowed at the time of purchase of the stamps
258	292		9 when purchase is required by this Act, or at the time when the
259	293		10 tax is remitted to the Department without the purchase of
260	294		11 stamps from the Department when that method of paying the tax
261	295		12 is required or authorized by this Act.
262	296		13 On and after December 1, 1985, a discount equal to 1.75% of
263	297		14 the amount of the tax payable under this Act up to and
264	298		15 including the first $3,000,000 paid hereunder by such
265	299		16 distributor to the Department during any such year and 1.5% of
266	300		17 the amount of any additional tax paid hereunder by such
267	301		18 distributor to the Department during any such year shall
268	302		19 apply.
269	303		20 Two or more distributors that use a common means of
270	304		21 affixing revenue tax stamps or that are owned or controlled by
271	305		22 the same interests shall be treated as a single distributor
272	306		23 for the purpose of computing the discount.
273	307		24 (m) The taxes herein imposed are in addition to all other
274	308		25 occupation or privilege taxes imposed by the State of
275	309		26 Illinois, or by any political subdivision thereof, or by any
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286	320		1 municipal corporation.
287	321		2 (Source: P.A. 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19;
288	322		3 101-604, eff. 12-13-19.)
289	323		4 Section 99. Effective date. This Act takes effect upon
290	324		5 becoming law.
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