Illinois 2023-2024 Regular Session

Illinois Senate Bill SB2994 Compare Versions

Only one version of the bill is available at this time.

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2994 Introduced 2/2/2024, by Sen. Jil Tracy SYNOPSIS AS INTRODUCED: 35 ILCS 143/10-1035 ILCS 143/10-30 Amends the Tobacco Products Tax Act of 1995. Provides that, beginning January 1, 2025, the tax per cigar sold or otherwise disposed of shall not exceed $0.50 per cigar, excluding little cigars. Provides that distributors are allowed a discount in the amount of 2% of the distributor's tax liability but not more than $2,000 per return. LRB103 38046 HLH 68178 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2994 Introduced 2/2/2024, by Sen. Jil Tracy SYNOPSIS AS INTRODUCED: 35 ILCS 143/10-1035 ILCS 143/10-30 35 ILCS 143/10-10 35 ILCS 143/10-30 Amends the Tobacco Products Tax Act of 1995. Provides that, beginning January 1, 2025, the tax per cigar sold or otherwise disposed of shall not exceed $0.50 per cigar, excluding little cigars. Provides that distributors are allowed a discount in the amount of 2% of the distributor's tax liability but not more than $2,000 per return. LRB103 38046 HLH 68178 b LRB103 38046 HLH 68178 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2994 Introduced 2/2/2024, by Sen. Jil Tracy SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 143/10-1035 ILCS 143/10-30 35 ILCS 143/10-10 35 ILCS 143/10-30
4	4	35 ILCS 143/10-10
5	5	35 ILCS 143/10-30
6	6	Amends the Tobacco Products Tax Act of 1995. Provides that, beginning January 1, 2025, the tax per cigar sold or otherwise disposed of shall not exceed $0.50 per cigar, excluding little cigars. Provides that distributors are allowed a discount in the amount of 2% of the distributor's tax liability but not more than $2,000 per return.
7	7	LRB103 38046 HLH 68178 b LRB103 38046 HLH 68178 b
8	8	LRB103 38046 HLH 68178 b
9	9	A BILL FOR
10	10	SB2994LRB103 38046 HLH 68178 b SB2994 LRB103 38046 HLH 68178 b
11	11	SB2994 LRB103 38046 HLH 68178 b
12	12	1 AN ACT concerning revenue.
13	13	2 Be it enacted by the People of the State of Illinois,
14	14	3 represented in the General Assembly:
15	15	4 Section 5. The Tobacco Products Tax Act of 1995 is amended
16	16	5 by changing Sections 10-10 and 10-30 as follows:
17	17	6 (35 ILCS 143/10-10)
18	18	7 Sec. 10-10. Tax imposed.
19	19	8 (a) Except as otherwise provided in this Section with
20	20	9 respect to little cigars, on the first day of the third month
21	21	10 after the month in which this Act becomes law, a tax is imposed
22	22	11 on any person engaged in business as a distributor of tobacco
23	23	12 products, as defined in Section 10-5, at the rate of (i) 18% of
24	24	13 the wholesale price of tobacco products sold or otherwise
25	25	14 disposed of to retailers or consumers located in this State
26	26	15 prior to July 1, 2012 and (ii) 36% of the wholesale price of
27	27	16 tobacco products sold or otherwise disposed of to retailers or
28	28	17 consumers located in this State beginning on July 1, 2012;
29	29	18 except that, beginning on January 1, 2013, the tax on moist
30	30	19 snuff shall be imposed at a rate of $0.30 per ounce, and a
31	31	20 proportionate tax at the like rate on all fractional parts of
32	32	21 an ounce, sold or otherwise disposed of to retailers or
33	33	22 consumers located in this State; and except that, beginning
34	34	23 July 1, 2019, the tax on electronic cigarettes shall be
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38	38	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2994 Introduced 2/2/2024, by Sen. Jil Tracy SYNOPSIS AS INTRODUCED:
39	39	35 ILCS 143/10-1035 ILCS 143/10-30 35 ILCS 143/10-10 35 ILCS 143/10-30
40	40	35 ILCS 143/10-10
41	41	35 ILCS 143/10-30
42	42	Amends the Tobacco Products Tax Act of 1995. Provides that, beginning January 1, 2025, the tax per cigar sold or otherwise disposed of shall not exceed $0.50 per cigar, excluding little cigars. Provides that distributors are allowed a discount in the amount of 2% of the distributor's tax liability but not more than $2,000 per return.
43	43	LRB103 38046 HLH 68178 b LRB103 38046 HLH 68178 b
44	44	LRB103 38046 HLH 68178 b
45	45	A BILL FOR
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51	51	35 ILCS 143/10-10
52	52	35 ILCS 143/10-30
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71	71	1 imposed at the rate of 15% of the wholesale price of electronic
72	72	2 cigarettes sold or otherwise disposed of to retailers or
73	73	3 consumers located in this State. The tax is in addition to all
74	74	4 other occupation or privilege taxes imposed by the State of
75	75	5 Illinois, by any political subdivision thereof, or by any
76	76	6 municipal corporation. However, the tax is not imposed upon
77	77	7 any activity in that business in interstate commerce or
78	78	8 otherwise, to the extent to which that activity may not, under
79	79	9 the Constitution and Statutes of the United States, be made
80	80	10 the subject of taxation by this State, and except that,
81	81	11 beginning July 1, 2013, the tax on little cigars shall be
82	82	12 imposed at the same rate, and the proceeds shall be
83	83	13 distributed in the same manner, as the tax imposed on
84	84	14 cigarettes under the Cigarette Tax Act. The tax is also not
85	85	15 imposed on sales made to the United States or any entity
86	86	16 thereof.
87	87	17 (b) Notwithstanding subsection (a) of this Section,
88	88	18 stamping distributors of packages of little cigars containing
89	89	19 20 or 25 little cigars sold or otherwise disposed of in this
90	90	20 State shall remit the tax by purchasing tax stamps from the
91	91	21 Department and affixing them to packages of little cigars in
92	92	22 the same manner as stamps are purchased and affixed to
93	93	23 cigarettes under the Cigarette Tax Act, unless the stamping
94	94	24 distributor sells or otherwise disposes of those packages of
95	95	25 little cigars to another stamping distributor. Only persons
96	96	26 meeting the definition of "stamping distributor" contained in
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107	107	1 Section 10-5 of this Act may affix stamps to packages of little
108	108	2 cigars containing 20 or 25 little cigars. Stamping
109	109	3 distributors may not sell or dispose of little cigars at
110	110	4 retail to consumers or users at locations where stamping
111	111	5 distributors affix stamps to packages of little cigars
112	112	6 containing 20 or 25 little cigars.
113	113	7 (c) The impact of the tax levied by this Act is imposed
114	114	8 upon distributors engaged in the business of selling tobacco
115	115	9 products to retailers or consumers in this State. Whenever a
116	116	10 stamping distributor brings or causes to be brought into this
117	117	11 State from without this State, or purchases from without or
118	118	12 within this State, any packages of little cigars containing 20
119	119	13 or 25 little cigars upon which there are no tax stamps affixed
120	120	14 as required by this Act, for purposes of resale or disposal in
121	121	15 this State to a person not a stamping distributor, then such
122	122	16 stamping distributor shall pay the tax to the Department and
123	123	17 add the amount of the tax to the price of such packages sold by
124	124	18 such stamping distributor. Payment of the tax shall be
125	125	19 evidenced by a stamp or stamps affixed to each package of
126	126	20 little cigars containing 20 or 25 little cigars.
127	127	21 Stamping distributors paying the tax to the Department on
128	128	22 packages of little cigars containing 20 or 25 little cigars
129	129	23 sold to other distributors, wholesalers or retailers shall add
130	130	24 the amount of the tax to the price of the packages of little
131	131	25 cigars containing 20 or 25 little cigars sold by such stamping
132	132	26 distributors.
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143	143	1 (d) Beginning on January 1, 2013, the tax rate imposed per
144	144	2 ounce of moist snuff may not exceed 15% of the tax imposed upon
145	145	3 a package of 20 cigarettes pursuant to the Cigarette Tax Act.
146	146	4 (d-5) Notwithstanding the provisions of this Section,
147	147	5 beginning January 1, 2025, the tax per cigar sold or otherwise
148	148	6 disposed of shall not exceed $0.50 per cigar. This subsection
149	149	7 does not apply to little cigars.
150	150	8 (e) All moneys received by the Department under this Act
151	151	9 from sales occurring prior to July 1, 2012 shall be paid into
152	152	10 the Long-Term Care Provider Fund of the State Treasury. Of the
153	153	11 moneys received by the Department from sales occurring on or
154	154	12 after July 1, 2012, except for moneys received from the tax
155	155	13 imposed on the sale of little cigars, 50% shall be paid into
156	156	14 the Long-Term Care Provider Fund and 50% shall be paid into the
157	157	15 Healthcare Provider Relief Fund. Beginning July 1, 2013, all
158	158	16 moneys received by the Department under this Act from the tax
159	159	17 imposed on little cigars shall be distributed as provided in
160	160	18 Section 2 of the Cigarette Tax Act.
161	161	19 (Source: P.A. 101-31, eff. 6-28-19.)
162	162	20 (35 ILCS 143/10-30)
163	163	21 Sec. 10-30. Returns.
164	164	22 (a) Every distributor shall, on or before the 15th day of
165	165	23 each month, file a return with the Department covering the
166	166	24 preceding calendar month. The return shall disclose the
167	167	25 wholesale price for all tobacco products other than moist
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178	178	1 snuff and the quantity in ounces of moist snuff sold or
179	179	2 otherwise disposed of and other information that the
180	180	3 Department may reasonably require. The return shall be filed
181	181	4 upon a form prescribed and furnished by the Department.
182	182	5 (b) In addition to the information required under
183	183	6 subsection (a), on or before the 15th day of each month,
184	184	7 covering the preceding calendar month, each stamping
185	185	8 distributor shall, on forms prescribed and furnished by the
186	186	9 Department, report the quantity of little cigars sold or
187	187	10 otherwise disposed of, including the number of packages of
188	188	11 little cigars sold or disposed of during the month containing
189	189	12 20 or 25 little cigars.
190	190	13 (c) At the time when any return of any distributor is due
191	191	14 to be filed with the Department, the distributor shall also
192	192	15 remit to the Department the tax liability that the distributor
193	193	16 has incurred for transactions occurring in the preceding
194	194	17 calendar month, less the discount allowed.
195	195	18 (d) The Department may adopt rules to require the
196	196	19 electronic filing of any return or document required to be
197	197	20 filed under this Act. Those rules may provide for exceptions
198	198	21 from the filing requirement set forth in this paragraph for
199	199	22 persons who demonstrate that they do not have access to the
200	200	23 Internet and petition the Department to waive the electronic
201	201	24 filing requirement.
202	202	25 (e) If any payment provided for in this Section exceeds
203	203	26 the distributor's liabilities under this Act, as shown on an
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