Illinois 2025-2026 Regular Session

Illinois House Bill HB2767 Compare Versions

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

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1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2767 Introduced , by Rep. Joe C. Sosnowski SYNOPSIS AS INTRODUCED: 35 ILCS 120/2a from Ch. 120, par. 441a35 ILCS 128/1-4035 ILCS 130/4b from Ch. 120, par. 453.4b35 ILCS 130/9 from Ch. 120, par. 453.935 ILCS 130/9e35 ILCS 130/9f35 ILCS 135/11 from Ch. 120, par. 453.4135 ILCS 135/11a35 ILCS 135/12 from Ch. 120, par. 453.4235 ILCS 143/10-30 Amends the Retailers' Occupation Tax Act. Provides that certificates of registration shall be issued in the form and manner required by the Department of Revenue. Provides that certificates of registration shall be displayed in the manner and form as the Department of Revenue may require by rule. Amends the Cigarette Machine Operators' Occupation Tax Act, the Cigarette Tax Act, the Cigarette Use Tax Act, and the Tobacco Products Tax Act of 1995. Provides that certain returns and supporting schedules shall be filed and payments shall be made by electronic means. Effective immediately, except that provisions amending the Cigarette Machine Operators' Occupation Tax Act, the Cigarette Tax Act, the Cigarette Use Tax Act, and the Tobacco Products Tax Act of 1995 take effect January 1, 2026. LRB104 10322 HLH 20396 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2767 Introduced , by Rep. Joe C. Sosnowski SYNOPSIS AS INTRODUCED: 35 ILCS 120/2a from Ch. 120, par. 441a35 ILCS 128/1-4035 ILCS 130/4b from Ch. 120, par. 453.4b35 ILCS 130/9 from Ch. 120, par. 453.935 ILCS 130/9e35 ILCS 130/9f35 ILCS 135/11 from Ch. 120, par. 453.4135 ILCS 135/11a35 ILCS 135/12 from Ch. 120, par. 453.4235 ILCS 143/10-30 35 ILCS 120/2a from Ch. 120, par. 441a 35 ILCS 128/1-40 35 ILCS 130/4b from Ch. 120, par. 453.4b 35 ILCS 130/9 from Ch. 120, par. 453.9 35 ILCS 130/9e 35 ILCS 130/9f 35 ILCS 135/11 from Ch. 120, par. 453.41 35 ILCS 135/11a 35 ILCS 135/12 from Ch. 120, par. 453.42 35 ILCS 143/10-30 Amends the Retailers' Occupation Tax Act. Provides that certificates of registration shall be issued in the form and manner required by the Department of Revenue. Provides that certificates of registration shall be displayed in the manner and form as the Department of Revenue may require by rule. Amends the Cigarette Machine Operators' Occupation Tax Act, the Cigarette Tax Act, the Cigarette Use Tax Act, and the Tobacco Products Tax Act of 1995. Provides that certain returns and supporting schedules shall be filed and payments shall be made by electronic means. Effective immediately, except that provisions amending the Cigarette Machine Operators' Occupation Tax Act, the Cigarette Tax Act, the Cigarette Use Tax Act, and the Tobacco Products Tax Act of 1995 take effect January 1, 2026. LRB104 10322 HLH 20396 b LRB104 10322 HLH 20396 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2767 Introduced , by Rep. Joe C. Sosnowski SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 120/2a from Ch. 120, par. 441a35 ILCS 128/1-4035 ILCS 130/4b from Ch. 120, par. 453.4b35 ILCS 130/9 from Ch. 120, par. 453.935 ILCS 130/9e35 ILCS 130/9f35 ILCS 135/11 from Ch. 120, par. 453.4135 ILCS 135/11a35 ILCS 135/12 from Ch. 120, par. 453.4235 ILCS 143/10-30 35 ILCS 120/2a from Ch. 120, par. 441a 35 ILCS 128/1-40 35 ILCS 130/4b from Ch. 120, par. 453.4b 35 ILCS 130/9 from Ch. 120, par. 453.9 35 ILCS 130/9e 35 ILCS 130/9f 35 ILCS 135/11 from Ch. 120, par. 453.41 35 ILCS 135/11a 35 ILCS 135/12 from Ch. 120, par. 453.42 35 ILCS 143/10-30
4	4	35 ILCS 120/2a from Ch. 120, par. 441a
5	5	35 ILCS 128/1-40
6	6	35 ILCS 130/4b from Ch. 120, par. 453.4b
7	7	35 ILCS 130/9 from Ch. 120, par. 453.9
8	8	35 ILCS 130/9e
9	9	35 ILCS 130/9f
10	10	35 ILCS 135/11 from Ch. 120, par. 453.41
11	11	35 ILCS 135/11a
12	12	35 ILCS 135/12 from Ch. 120, par. 453.42
13	13	35 ILCS 143/10-30
14	14	Amends the Retailers' Occupation Tax Act. Provides that certificates of registration shall be issued in the form and manner required by the Department of Revenue. Provides that certificates of registration shall be displayed in the manner and form as the Department of Revenue may require by rule. Amends the Cigarette Machine Operators' Occupation Tax Act, the Cigarette Tax Act, the Cigarette Use Tax Act, and the Tobacco Products Tax Act of 1995. Provides that certain returns and supporting schedules shall be filed and payments shall be made by electronic means. Effective immediately, except that provisions amending the Cigarette Machine Operators' Occupation Tax Act, the Cigarette Tax Act, the Cigarette Use Tax Act, and the Tobacco Products Tax Act of 1995 take effect January 1, 2026.
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17	17	A BILL FOR
18	18	HB2767LRB104 10322 HLH 20396 b HB2767 LRB104 10322 HLH 20396 b
19	19	HB2767 LRB104 10322 HLH 20396 b
20	20	1 AN ACT concerning revenue.
21	21	2 Be it enacted by the People of the State of Illinois,
22	22	3 represented in the General Assembly:
23	23	4 Section 5. The Retailers' Occupation Tax Act is amended by
24	24	5 changing Section 2a as follows:
25	25	6 (35 ILCS 120/2a) (from Ch. 120, par. 441a)
26	26	7 Sec. 2a. Registration of retailers. It is unlawful for any
27	27	8 person to engage in the business of selling, which, on and
28	28	9 after January 1, 2025, includes leasing, tangible personal
29	29	10 property at retail in this State without a certificate of
30	30	11 registration from the Department. Application for a
31	31	12 certificate of registration shall be made to the Department
32	32	13 upon forms furnished by it. Each such application shall be
33	33	14 signed and verified and shall state: (1) the name and social
34	34	15 security number of the applicant; (2) the address of his
35	35	16 principal place of business; (3) the address of the principal
36	36	17 place of business from which he engages in the business of
37	37	18 selling tangible personal property at retail in this State and
38	38	19 the addresses of all other places of business, if any
39	39	20 (enumerating such addresses, if any, in a separate list
40	40	21 attached to and made a part of the application), from which he
41	41	22 engages in the business of selling tangible personal property
42	42	23 at retail in this State; (4) the name and address of the person
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46	46	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2767 Introduced , by Rep. Joe C. Sosnowski SYNOPSIS AS INTRODUCED:
47	47	35 ILCS 120/2a from Ch. 120, par. 441a35 ILCS 128/1-4035 ILCS 130/4b from Ch. 120, par. 453.4b35 ILCS 130/9 from Ch. 120, par. 453.935 ILCS 130/9e35 ILCS 130/9f35 ILCS 135/11 from Ch. 120, par. 453.4135 ILCS 135/11a35 ILCS 135/12 from Ch. 120, par. 453.4235 ILCS 143/10-30 35 ILCS 120/2a from Ch. 120, par. 441a 35 ILCS 128/1-40 35 ILCS 130/4b from Ch. 120, par. 453.4b 35 ILCS 130/9 from Ch. 120, par. 453.9 35 ILCS 130/9e 35 ILCS 130/9f 35 ILCS 135/11 from Ch. 120, par. 453.41 35 ILCS 135/11a 35 ILCS 135/12 from Ch. 120, par. 453.42 35 ILCS 143/10-30
48	48	35 ILCS 120/2a from Ch. 120, par. 441a
49	49	35 ILCS 128/1-40
50	50	35 ILCS 130/4b from Ch. 120, par. 453.4b
51	51	35 ILCS 130/9 from Ch. 120, par. 453.9
52	52	35 ILCS 130/9e
53	53	35 ILCS 130/9f
54	54	35 ILCS 135/11 from Ch. 120, par. 453.41
55	55	35 ILCS 135/11a
56	56	35 ILCS 135/12 from Ch. 120, par. 453.42
57	57	35 ILCS 143/10-30
58	58	Amends the Retailers' Occupation Tax Act. Provides that certificates of registration shall be issued in the form and manner required by the Department of Revenue. Provides that certificates of registration shall be displayed in the manner and form as the Department of Revenue may require by rule. Amends the Cigarette Machine Operators' Occupation Tax Act, the Cigarette Tax Act, the Cigarette Use Tax Act, and the Tobacco Products Tax Act of 1995. Provides that certain returns and supporting schedules shall be filed and payments shall be made by electronic means. Effective immediately, except that provisions amending the Cigarette Machine Operators' Occupation Tax Act, the Cigarette Tax Act, the Cigarette Use Tax Act, and the Tobacco Products Tax Act of 1995 take effect January 1, 2026.
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61	61	A BILL FOR
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67	67	35 ILCS 120/2a from Ch. 120, par. 441a
68	68	35 ILCS 128/1-40
69	69	35 ILCS 130/4b from Ch. 120, par. 453.4b
70	70	35 ILCS 130/9 from Ch. 120, par. 453.9
71	71	35 ILCS 130/9e
72	72	35 ILCS 130/9f
73	73	35 ILCS 135/11 from Ch. 120, par. 453.41
74	74	35 ILCS 135/11a
75	75	35 ILCS 135/12 from Ch. 120, par. 453.42
76	76	35 ILCS 143/10-30
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95	95	1 or persons who will be responsible for filing returns and
96	96	2 payment of taxes due under this Act; (5) in the case of a
97	97	3 publicly traded corporation, the name and title of the Chief
98	98	4 Financial Officer, Chief Operating Officer, and any other
99	99	5 officer or employee with responsibility for preparing tax
100	100	6 returns under this Act, and, in the case of all other
101	101	7 corporations, the name, title, and social security number of
102	102	8 each corporate officer; (6) in the case of a limited liability
103	103	9 company, the name, social security number, and FEIN number of
104	104	10 each manager and member; and (7) such other information as the
105	105	11 Department may reasonably require. The application shall
106	106	12 contain an acceptance of responsibility signed by the person
107	107	13 or persons who will be responsible for filing returns and
108	108	14 payment of the taxes due under this Act. If the applicant will
109	109	15 sell tangible personal property at retail through vending
110	110	16 machines, his application to register shall indicate the
111	111	17 number of vending machines to be so operated. If requested by
112	112	18 the Department at any time, that person shall verify the total
113	113	19 number of vending machines he or she uses in his or her
114	114	20 business of selling tangible personal property at retail.
115	115	21 The Department shall provide by rule for an expedited
116	116	22 business registration process for remote retailers required to
117	117	23 register and file under subsection (b) of Section 2 who use a
118	118	24 certified service provider to file their returns under this
119	119	25 Act. Such expedited registration process shall allow the
120	120	26 Department to register a taxpayer based upon the same
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131	131	1 registration information required by the Streamlined Sales Tax
132	132	2 Governing Board for states participating in the Streamlined
133	133	3 Sales Tax Project.
134	134	4 The Department may deny a certificate of registration to
135	135	5 any applicant if a person who is named as the owner, a partner,
136	136	6 a manager or member of a limited liability company, or a
137	137	7 corporate officer of the applicant on the application for the
138	138	8 certificate of registration is or has been named as the owner,
139	139	9 a partner, a manager or member of a limited liability company,
140	140	10 or a corporate officer on the application for the certificate
141	141	11 of registration of another retailer that (i) is in default for
142	142	12 moneys due under this Act or any other tax or fee Act
143	143	13 administered by the Department or (ii) fails to file any
144	144	14 return, on or before the due date prescribed for filing that
145	145	15 return (including any extensions of time granted by the
146	146	16 Department), that the retailer is required to file under this
147	147	17 Act or any other tax or fee Act administered by the Department.
148	148	18 For purposes of this paragraph only, in determining whether a
149	149	19 person is in default for moneys due, the Department shall
150	150	20 include only amounts established as a final liability within
151	151	21 the 23 years prior to the date of the Department's notice of
152	152	22 denial of a certificate of registration.
153	153	23 The Department may require an applicant for a certificate
154	154	24 of registration hereunder to, at the time of filing such
155	155	25 application, furnish a bond from a surety company authorized
156	156	26 to do business in the State of Illinois, or an irrevocable bank
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167	167	1 letter of credit or a bond signed by 2 personal sureties who
168	168	2 have filed, with the Department, sworn statements disclosing
169	169	3 net assets equal to at least 3 times the amount of the bond to
170	170	4 be required of such applicant, or a bond secured by an
171	171	5 assignment of a bank account or certificate of deposit, stocks
172	172	6 or bonds, conditioned upon the applicant paying to the State
173	173	7 of Illinois all moneys becoming due under this Act and under
174	174	8 any other State tax law or municipal or county tax ordinance or
175	175	9 resolution under which the certificate of registration that is
176	176	10 issued to the applicant under this Act will permit the
177	177	11 applicant to engage in business without registering separately
178	178	12 under such other law, ordinance or resolution. In making a
179	179	13 determination as to whether to require a bond or other
180	180	14 security, the Department shall take into consideration whether
181	181	15 the owner, any partner, any manager or member of a limited
182	182	16 liability company, or a corporate officer of the applicant is
183	183	17 or has been the owner, a partner, a manager or member of a
184	184	18 limited liability company, or a corporate officer of another
185	185	19 retailer that is in default for moneys due under this Act or
186	186	20 any other tax or fee Act administered by the Department; and
187	187	21 whether the owner, any partner, any manager or member of a
188	188	22 limited liability company, or a corporate officer of the
189	189	23 applicant is or has been the owner, a partner, a manager or
190	190	24 member of a limited liability company, or a corporate officer
191	191	25 of another retailer whose certificate of registration has been
192	192	26 revoked within the previous 5 years under this Act or any other
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203	203	1 tax or fee Act administered by the Department. If a bond or
204	204	2 other security is required, the Department shall fix the
205	205	3 amount of the bond or other security, taking into
206	206	4 consideration the amount of money expected to become due from
207	207	5 the applicant under this Act and under any other State tax law
208	208	6 or municipal or county tax ordinance or resolution under which
209	209	7 the certificate of registration that is issued to the
210	210	8 applicant under this Act will permit the applicant to engage
211	211	9 in business without registering separately under such other
212	212	10 law, ordinance, or resolution. The amount of security required
213	213	11 by the Department shall be such as, in its opinion, will
214	214	12 protect the State of Illinois against failure to pay the
215	215	13 amount which may become due from the applicant under this Act
216	216	14 and under any other State tax law or municipal or county tax
217	217	15 ordinance or resolution under which the certificate of
218	218	16 registration that is issued to the applicant under this Act
219	219	17 will permit the applicant to engage in business without
220	220	18 registering separately under such other law, ordinance or
221	221	19 resolution, but the amount of the security required by the
222	222	20 Department shall not exceed three times the amount of the
223	223	21 applicant's average monthly tax liability, or $50,000.00,
224	224	22 whichever amount is lower.
225	225	23 No certificate of registration under this Act shall be
226	226	24 issued by the Department until the applicant provides the
227	227	25 Department with satisfactory security, if required, as herein
228	228	26 provided for.
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239	239	1 Upon receipt of the application for certificate of
240	240	2 registration in proper form, and upon approval by the
241	241	3 Department of the security furnished by the applicant, if
242	242	4 required, the Department shall issue to such applicant, in the
243	243	5 manner and form determined by the Department, a certificate of
244	244	6 registration which shall permit the person to whom it is
245	245	7 issued to engage in the business of selling tangible personal
246	246	8 property at retail in this State. The certificate of
247	247	9 registration shall be conspicuously displayed, in the manner
248	248	10 and form as the Department may require by rule, at the place of
249	249	11 business which the person so registered states in his
250	250	12 application to be the principal place of business from which
251	251	13 he engages in the business of selling tangible personal
252	252	14 property at retail in this State.
253	253	15 No certificate of registration issued prior to July 1,
254	254	16 2017 to a taxpayer who files returns required by this Act on a
255	255	17 monthly basis or renewed prior to July 1, 2017 by a taxpayer
256	256	18 who files returns required by this Act on a monthly basis shall
257	257	19 be valid after the expiration of 5 years from the date of its
258	258	20 issuance or last renewal. No certificate of registration
259	259	21 issued on or after July 1, 2017 to a taxpayer who files returns
260	260	22 required by this Act on a monthly basis or renewed on or after
261	261	23 July 1, 2017 by a taxpayer who files returns required by this
262	262	24 Act on a monthly basis shall be valid after the expiration of
263	263	25 one year from the date of its issuance or last renewal. The
264	264	26 expiration date of a sub-certificate of registration shall be
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275	275	1 that of the certificate of registration to which the
276	276	2 sub-certificate relates. Prior to July 1, 2017, a certificate
277	277	3 of registration shall automatically be renewed, subject to
278	278	4 revocation as provided by this Act, for an additional 5 years
279	279	5 from the date of its expiration unless otherwise notified by
280	280	6 the Department as provided by this paragraph. On and after
281	281	7 July 1, 2017, a certificate of registration shall
282	282	8 automatically be renewed, subject to revocation as provided by
283	283	9 this Act, for an additional one year from the date of its
284	284	10 expiration unless otherwise notified by the Department as
285	285	11 provided by this paragraph.
286	286	12 Where a taxpayer to whom a certificate of registration is
287	287	13 issued under this Act is in default to the State of Illinois
288	288	14 for delinquent returns or for moneys due under this Act or any
289	289	15 other State tax law or municipal or county ordinance
290	290	16 administered or enforced by the Department, the Department
291	291	17 shall, not less than 60 days before the expiration date of such
292	292	18 certificate of registration, give notice to the taxpayer to
293	293	19 whom the certificate was issued of the account period of the
294	294	20 delinquent returns, the amount of tax, penalty and interest
295	295	21 due and owing from the taxpayer, and that the certificate of
296	296	22 registration shall not be automatically renewed upon its
297	297	23 expiration date unless the taxpayer, on or before the date of
298	298	24 expiration, has filed and paid the delinquent returns or paid
299	299	25 the defaulted amount in full. A taxpayer to whom such a notice
300	300	26 is issued shall be deemed an applicant for renewal. The
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311	311	1 Department shall promulgate regulations establishing
312	312	2 procedures for taxpayers who file returns on a monthly basis
313	313	3 but desire and qualify to change to a quarterly or yearly
314	314	4 filing basis and will no longer be subject to renewal under
315	315	5 this Section, and for taxpayers who file returns on a yearly or
316	316	6 quarterly basis but who desire or are required to change to a
317	317	7 monthly filing basis and will be subject to renewal under this
318	318	8 Section.
319	319	9 The Department may in its discretion approve renewal by an
320	320	10 applicant who is in default if, at the time of application for
321	321	11 renewal, the applicant files all of the delinquent returns or
322	322	12 pays to the Department such percentage of the defaulted amount
323	323	13 as may be determined by the Department and agrees in writing to
324	324	14 waive all limitations upon the Department for collection of
325	325	15 the remaining defaulted amount to the Department over a period
326	326	16 not to exceed 5 years from the date of renewal of the
327	327	17 certificate; however, no renewal application submitted by an
328	328	18 applicant who is in default shall be approved if the
329	329	19 immediately preceding renewal by the applicant was conditioned
330	330	20 upon the installment payment agreement described in this
331	331	21 Section. The payment agreement herein provided for shall be in
332	332	22 addition to and not in lieu of the security that may be
333	333	23 required by this Section of a taxpayer who is no longer
334	334	24 considered a prior continuous compliance taxpayer. The
335	335	25 execution of the payment agreement as provided in this Act
336	336	26 shall not toll the accrual of interest at the statutory rate.
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347	347	1 The Department may suspend a certificate of registration
348	348	2 if the Department finds that the person to whom the
349	349	3 certificate of registration has been issued knowingly sold
350	350	4 contraband cigarettes.
351	351	5 A certificate of registration issued under this Act more
352	352	6 than 5 years before January 1, 1990 (the effective date of
353	353	7 Public Act 86-383) shall expire and be subject to the renewal
354	354	8 provisions of this Section on the next anniversary of the date
355	355	9 of issuance of such certificate which occurs more than 6
356	356	10 months after January 1, 1990 (the effective date of Public Act
357	357	11 86-383). A certificate of registration issued less than 5
358	358	12 years before January 1, 1990 (the effective date of Public Act
359	359	13 86-383) shall expire and be subject to the renewal provisions
360	360	14 of this Section on the 5th anniversary of the issuance of the
361	361	15 certificate.
362	362	16 If the person so registered states that he operates other
363	363	17 places of business from which he engages in the business of
364	364	18 selling tangible personal property at retail in this State,
365	365	19 the Department shall furnish him with a sub-certificate of
366	366	20 registration for each such place of business, and the
367	367	21 applicant shall display the appropriate sub-certificate of
368	368	22 registration at each such place of business. All
369	369	23 sub-certificates of registration shall bear the same
370	370	24 registration number as that appearing upon the certificate of
371	371	25 registration to which such sub-certificates relate.
372	372	26 If the applicant will sell tangible personal property at
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383	383	1 retail through vending machines, the Department shall furnish
384	384	2 him with a sub-certificate of registration for each such
385	385	3 vending machine, and the applicant shall display the
386	386	4 appropriate sub-certificate of registration on each such
387	387	5 vending machine by attaching the sub-certificate of
388	388	6 registration to a conspicuous part of such vending machine. If
389	389	7 a person who is registered to sell tangible personal property
390	390	8 at retail through vending machines adds an additional vending
391	391	9 machine or additional vending machines to the number of
392	392	10 vending machines he or she uses in his or her business of
393	393	11 selling tangible personal property at retail, he or she shall
394	394	12 notify the Department, on a form prescribed by the Department,
395	395	13 to request an additional sub-certificate or additional
396	396	14 sub-certificates of registration, as applicable. With each
397	397	15 such request, the applicant shall report the number of
398	398	16 sub-certificates of registration he or she is requesting as
399	399	17 well as the total number of vending machines from which he or
400	400	18 she makes retail sales.
401	401	19 Where the same person engages in 2 or more businesses of
402	402	20 selling tangible personal property at retail in this State,
403	403	21 which businesses are substantially different in character or
404	404	22 engaged in under different trade names or engaged in under
405	405	23 other substantially dissimilar circumstances (so that it is
406	406	24 more practicable, from an accounting, auditing or bookkeeping
407	407	25 standpoint, for such businesses to be separately registered),
408	408	26 the Department may require or permit such person (subject to
409	409
410	410
411	411
412	412
413	413
414	414	HB2767 - 10 - LRB104 10322 HLH 20396 b
415	415
416	416
417	417	HB2767- 11 -LRB104 10322 HLH 20396 b HB2767 - 11 - LRB104 10322 HLH 20396 b
418	418	HB2767 - 11 - LRB104 10322 HLH 20396 b
419	419	1 the same requirements concerning the furnishing of security as
420	420	2 those that are provided for hereinbefore in this Section as to
421	421	3 each application for a certificate of registration) to apply
422	422	4 for and obtain a separate certificate of registration for each
423	423	5 such business or for any of such businesses, under a single
424	424	6 certificate of registration supplemented by related
425	425	7 sub-certificates of registration.
426	426	8 Any person who is registered under the Retailers'
427	427	9 Occupation Tax Act as of March 8, 1963, and who, during the
428	428	10 3-year period immediately prior to March 8, 1963, or during a
429	429	11 continuous 3-year period part of which passed immediately
430	430	12 before and the remainder of which passes immediately after
431	431	13 March 8, 1963, has been so registered continuously and who is
432	432	14 determined by the Department not to have been either
433	433	15 delinquent or deficient in the payment of tax liability during
434	434	16 that period under this Act or under any other State tax law or
435	435	17 municipal or county tax ordinance or resolution under which
436	436	18 the certificate of registration that is issued to the
437	437	19 registrant under this Act will permit the registrant to engage
438	438	20 in business without registering separately under such other
439	439	21 law, ordinance or resolution, shall be considered to be a
440	440	22 Prior Continuous Compliance taxpayer. Also any taxpayer who
441	441	23 has, as verified by the Department, faithfully and
442	442	24 continuously complied with the condition of his bond or other
443	443	25 security under the provisions of this Act for a period of 3
444	444	26 consecutive years shall be considered to be a Prior Continuous
445	445
446	446
447	447
448	448
449	449
450	450	HB2767 - 11 - LRB104 10322 HLH 20396 b
451	451
452	452
453	453	HB2767- 12 -LRB104 10322 HLH 20396 b HB2767 - 12 - LRB104 10322 HLH 20396 b
454	454	HB2767 - 12 - LRB104 10322 HLH 20396 b
455	455	1 Compliance taxpayer.
456	456	2 Every Prior Continuous Compliance taxpayer shall be exempt
457	457	3 from all requirements under this Act concerning the furnishing
458	458	4 of a bond or other security as a condition precedent to his
459	459	5 being authorized to engage in the business of selling tangible
460	460	6 personal property at retail in this State. This exemption
461	461	7 shall continue for each such taxpayer until such time as he may
462	462	8 be determined by the Department to be delinquent in the filing
463	463	9 of any returns, or is determined by the Department (either
464	464	10 through the Department's issuance of a final assessment which
465	465	11 has become final under the Act, or by the taxpayer's filing of
466	466	12 a return which admits tax that is not paid to be due) to be
467	467	13 delinquent or deficient in the paying of any tax under this Act
468	468	14 or under any other State tax law or municipal or county tax
469	469	15 ordinance or resolution under which the certificate of
470	470	16 registration that is issued to the registrant under this Act
471	471	17 will permit the registrant to engage in business without
472	472	18 registering separately under such other law, ordinance or
473	473	19 resolution, at which time that taxpayer shall become subject
474	474	20 to all the financial responsibility requirements of this Act
475	475	21 and, as a condition of being allowed to continue to engage in
476	476	22 the business of selling tangible personal property at retail,
477	477	23 may be required to post bond or other acceptable security with
478	478	24 the Department covering liability which such taxpayer may
479	479	25 thereafter incur. Any taxpayer who fails to pay an admitted or
480	480	26 established liability under this Act may also be required to
481	481
482	482
483	483
484	484
485	485
486	486	HB2767 - 12 - LRB104 10322 HLH 20396 b
487	487
488	488
489	489	HB2767- 13 -LRB104 10322 HLH 20396 b HB2767 - 13 - LRB104 10322 HLH 20396 b
490	490	HB2767 - 13 - LRB104 10322 HLH 20396 b
491	491	1 post bond or other acceptable security with this Department
492	492	2 guaranteeing the payment of such admitted or established
493	493	3 liability.
494	494	4 No certificate of registration shall be issued to any
495	495	5 person who is in default to the State of Illinois for moneys
496	496	6 due under this Act or under any other State tax law or
497	497	7 municipal or county tax ordinance or resolution under which
498	498	8 the certificate of registration that is issued to the
499	499	9 applicant under this Act will permit the applicant to engage
500	500	10 in business without registering separately under such other
501	501	11 law, ordinance or resolution.
502	502	12 Any person aggrieved by any decision of the Department
503	503	13 under this Section may, within 20 days after notice of such
504	504	14 decision, protest and request a hearing, whereupon the
505	505	15 Department shall give notice to such person of the time and
506	506	16 place fixed for such hearing and shall hold a hearing in
507	507	17 conformity with the provisions of this Act and then issue its
508	508	18 final administrative decision in the matter to such person. In
509	509	19 the absence of such a protest within 20 days, the Department's
510	510	20 decision shall become final without any further determination
511	511	21 being made or notice given.
512	512	22 With respect to security other than bonds (upon which the
513	513	23 Department may sue in the event of a forfeiture), if the
514	514	24 taxpayer fails to pay, when due, any amount whose payment such
515	515	25 security guarantees, the Department shall, after such
516	516	26 liability is admitted by the taxpayer or established by the
517	517
518	518
519	519
520	520
521	521
522	522	HB2767 - 13 - LRB104 10322 HLH 20396 b
523	523
524	524
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526	526	HB2767 - 14 - LRB104 10322 HLH 20396 b
527	527	1 Department through the issuance of a final assessment that has
528	528	2 become final under the law, convert the security which that
529	529	3 taxpayer has furnished into money for the State, after first
530	530	4 giving the taxpayer at least 10 days' written notice, by
531	531	5 registered or certified mail, to pay the liability or forfeit
532	532	6 such security to the Department. If the security consists of
533	533	7 stocks or bonds or other securities which are listed on a
534	534	8 public exchange, the Department shall sell such securities
535	535	9 through such public exchange. If the security consists of an
536	536	10 irrevocable bank letter of credit, the Department shall
537	537	11 convert the security in the manner provided for in the Uniform
538	538	12 Commercial Code. If the security consists of a bank
539	539	13 certificate of deposit, the Department shall convert the
540	540	14 security into money by demanding and collecting the amount of
541	541	15 such bank certificate of deposit from the bank which issued
542	542	16 such certificate. If the security consists of a type of stocks
543	543	17 or other securities which are not listed on a public exchange,
544	544	18 the Department shall sell such security to the highest and
545	545	19 best bidder after giving at least 10 days' notice of the date,
546	546	20 time and place of the intended sale by publication in the
547	547	21 "State Official Newspaper". If the Department realizes more
548	548	22 than the amount of such liability from the security, plus the
549	549	23 expenses incurred by the Department in converting the security
550	550	24 into money, the Department shall pay such excess to the
551	551	25 taxpayer who furnished such security, and the balance shall be
552	552	26 paid into the State Treasury.
553	553
554	554
555	555
556	556
557	557
558	558	HB2767 - 14 - LRB104 10322 HLH 20396 b
559	559
560	560
561	561	HB2767- 15 -LRB104 10322 HLH 20396 b HB2767 - 15 - LRB104 10322 HLH 20396 b
562	562	HB2767 - 15 - LRB104 10322 HLH 20396 b
563	563	1 The Department shall discharge any surety and shall
564	564	2 release and return any security deposited, assigned, pledged
565	565	3 or otherwise provided to it by a taxpayer under this Section
566	566	4 within 30 days after:
567	567	5 (1) such taxpayer becomes a Prior Continuous
568	568	6 Compliance taxpayer; or
569	569	7 (2) such taxpayer has ceased to collect receipts on
570	570	8 which he is required to remit tax to the Department, has
571	571	9 filed a final tax return, and has paid to the Department an
572	572	10 amount sufficient to discharge his remaining tax
573	573	11 liability, as determined by the Department, under this Act
574	574	12 and under every other State tax law or municipal or county
575	575	13 tax ordinance or resolution under which the certificate of
576	576	14 registration issued under this Act permits the registrant
577	577	15 to engage in business without registering separately under
578	578	16 such other law, ordinance or resolution. The Department
579	579	17 shall make a final determination of the taxpayer's
580	580	18 outstanding tax liability as expeditiously as possible
581	581	19 after his final tax return has been filed; if the
582	582	20 Department cannot make such final determination within 45
583	583	21 days after receiving the final tax return, within such
584	584	22 period it shall so notify the taxpayer, stating its
585	585	23 reasons therefor.
586	586	24 (Source: P.A. 102-40, eff. 6-25-21; 103-319, eff. 1-1-24;
587	587	25 103-592, eff. 1-1-25.)
588	588
589	589
590	590
591	591
592	592
593	593	HB2767 - 15 - LRB104 10322 HLH 20396 b
594	594
595	595
596	596	HB2767- 16 -LRB104 10322 HLH 20396 b HB2767 - 16 - LRB104 10322 HLH 20396 b
597	597	HB2767 - 16 - LRB104 10322 HLH 20396 b
598	598	1 Section 10. The Cigarette Machine Operators' Occupation
599	599	2 Tax Act is amended by changing Section 1-40 as follows:
600	600	3 (35 ILCS 128/1-40)
601	601	4 Sec. 1-40. Returns.
602	602	5 (a) Cigarette machine operators shall file a return and
603	603	6 remit the tax imposed by Section 1-10 by the 15th day of each
604	604	7 month covering the preceding calendar month. Each such return
605	605	8 shall show: the quantity of cigarettes made or fabricated
606	606	9 during the period covered by the return; the beginning and
607	607	10 ending meter reading for each cigarette machine for the period
608	608	11 covered by the return; the quantity of such cigarettes sold or
609	609	12 otherwise disposed of during the period covered by the return;
610	610	13 the brand family and manufacturer and quantity of tobacco
611	611	14 products used to make or fabricate cigarettes by use of a
612	612	15 cigarette machine; the license number of each distributor from
613	613	16 whom tobacco products are purchased; the type and quantity of
614	614	17 cigarette tubes purchased for use in a cigarette machine; the
615	615	18 type and quantity of cigarette tubes used in a cigarette
616	616	19 machine; and such other information as the Department may
617	617	20 require. All returns and supporting schedules required to be
618	618	21 filed under this Section and all payments required to be made
619	619	22 under this Section shall be by electronic means in the form
620	620	23 prescribed by the Department. Such returns shall be filed on
621	621	24 forms prescribed and furnished by the Department. The
622	622	25 Department may promulgate rules to require that the cigarette
623	623
624	624
625	625
626	626
627	627
628	628	HB2767 - 16 - LRB104 10322 HLH 20396 b
629	629
630	630
631	631	HB2767- 17 -LRB104 10322 HLH 20396 b HB2767 - 17 - LRB104 10322 HLH 20396 b
632	632	HB2767 - 17 - LRB104 10322 HLH 20396 b
633	633	1 machine operator's return be accompanied by appropriate
634	634	2 computer-generated magnetic media supporting schedule data in
635	635	3 the format required by the Department, unless, as provided by
636	636	4 rule, the Department grants an exception upon petition of a
637	637	5 cigarette machine operator.
638	638	6 Cigarette machine operators shall send a copy of those
639	639	7 returns, together with supporting schedule data, to the
640	640	8 Attorney General's Office by the 15th day of each month for the
641	641	9 period covering the preceding calendar month.
642	642	10 (b) Cigarette machine operators may take a credit against
643	643	11 any tax due under Section 1-10 of this Act for taxes imposed
644	644	12 and paid under the Tobacco Products Tax Act of 1995 on tobacco
645	645	13 products sold to a customer and used in a rolling machine
646	646	14 located at the cigarette machine operator's place of business.
647	647	15 To be eligible for such credit, the tobacco product must meet
648	648	16 the requirements of subsection (a) of Section 1-25 of this
649	649	17 Act. This subsection (b) is exempt from the provisions of
650	650	18 Section 1-155 of this Act.
651	651	19 (c) If any payment provided for in this Section exceeds
652	652	20 the cigarette machine operator's liabilities under this Act,
653	653	21 as shown on an original return, the cigarette machine operator
654	654	22 may credit such excess payment against liability subsequently
655	655	23 to be remitted to the Department under this Act, in accordance
656	656	24 with reasonable rules adopted by the Department.
657	657	25 (Source: P.A. 100-1171, eff. 1-4-19.)
658	658
659	659
660	660
661	661
662	662
663	663	HB2767 - 17 - LRB104 10322 HLH 20396 b
664	664
665	665
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667	667	HB2767 - 18 - LRB104 10322 HLH 20396 b
668	668	1 Section 15. The Cigarette Tax Act is amended by changing
669	669	2 Sections 4b, 9, 9e, and 9f as follows:
670	670	3 (35 ILCS 130/4b) (from Ch. 120, par. 453.4b)
671	671	4 Sec. 4b. (a) The Department may, in its discretion, upon
672	672	5 application, issue permits authorizing the payment of the tax
673	673	6 herein imposed by out-of-State cigarette manufacturers who are
674	674	7 not required to be licensed as distributors of cigarettes in
675	675	8 this State, but who elect to qualify under this Act as
676	676	9 distributors of cigarettes in this State, and who, to the
677	677	10 satisfaction of the Department, furnish adequate security to
678	678	11 insure payment of the tax, provided that any such permit shall
679	679	12 extend only to cigarettes which such permittee manufacturer
680	680	13 places in original packages that are contained inside a sealed
681	681	14 transparent wrapper. Such permits shall be issued without
682	682	15 charge in such form as the Department may prescribe and shall
683	683	16 not be transferable or assignable.
684	684	17 The following are ineligible to receive a distributor's
685	685	18 permit under this subsection:
686	686	19 (1) a person who is not of good character and
687	687	20 reputation in the community in which he resides; the
688	688	21 Department may consider past conviction of a felony but
689	689	22 the conviction shall not operate as an absolute bar to
690	690	23 receiving a permit;
691	691	24 (2) a person who has been convicted of a felony under
692	692	25 any Federal or State law, if the Department, after
693	693
694	694
695	695
696	696
697	697
698	698	HB2767 - 18 - LRB104 10322 HLH 20396 b
699	699
700	700
701	701	HB2767- 19 -LRB104 10322 HLH 20396 b HB2767 - 19 - LRB104 10322 HLH 20396 b
702	702	HB2767 - 19 - LRB104 10322 HLH 20396 b
703	703	1 investigation and a hearing and consideration of
704	704	2 mitigating factors and evidence of rehabilitation
705	705	3 contained in the applicant's record, including those in
706	706	4 Section 4i of this Act, determines that such person has
707	707	5 not been sufficiently rehabilitated to warrant the public
708	708	6 trust and the conviction will impair the ability of the
709	709	7 person to engage in the position for which a permit is
710	710	8 sought;
711	711	9 (3) a corporation, if any officer, manager or director
712	712	10 thereof, or any stockholder or stockholders owning in the
713	713	11 aggregate more than 5% of the stock of such corporation,
714	714	12 would not be eligible to receive a permit under this Act
715	715	13 for any reason.
716	716	14 With respect to cigarettes which come within the scope of
717	717	15 such a permit and which any such permittee delivers or causes
718	718	16 to be delivered in Illinois to licensed distributors, such
719	719	17 permittee shall remit the tax imposed by this Act at the times
720	720	18 provided for in Section 3 of this Act. Each such remittance
721	721	19 shall be accompanied by a return filed with the Department on a
722	722	20 form to be prescribed and furnished by the Department and
723	723	21 shall disclose such information as the Department may lawfully
724	724	22 require. Information that the Department may lawfully require
725	725	23 includes information related to the uniform regulation and
726	726	24 taxation of cigarettes. All returns and supporting schedules
727	727	25 required to be filed under this Section and all payments
728	728	26 required to be made under this Section shall be by electronic
729	729
730	730
731	731
732	732
733	733
734	734	HB2767 - 19 - LRB104 10322 HLH 20396 b
735	735
736	736
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738	738	HB2767 - 20 - LRB104 10322 HLH 20396 b
739	739	1 means in the form prescribed by the Department. The Department
740	740	2 may promulgate rules to require that the permittee's return be
741	741	3 accompanied by appropriate computer-generated magnetic media
742	742	4 supporting schedule data in the format prescribed by the
743	743	5 Department, unless, as provided by rule, the Department grants
744	744	6 an exception upon petition of the permittee. Each such return
745	745	7 shall be accompanied by a copy of each invoice rendered by the
746	746	8 permittee to any licensed distributor to whom the permittee
747	747	9 delivered cigarettes of the type covered by the permit (or
748	748	10 caused cigarettes of the type covered by the permit to be
749	749	11 delivered) in Illinois during the period covered by such
750	750	12 return.
751	751	13 Such permit may be suspended, canceled or revoked when, at
752	752	14 any time, the Department considers that the security given is
753	753	15 inadequate, or that such tax can more effectively be collected
754	754	16 from distributors located in this State, or whenever the
755	755	17 permittee violates any provision of this Act or any lawful
756	756	18 rule or regulation issued by the Department pursuant to this
757	757	19 Act or is determined to be ineligible for a distributor's
758	758	20 permit under this Act as provided in this Section, whenever
759	759	21 the permittee shall notify the Department in writing of his
760	760	22 desire to have the permit canceled. The Department shall have
761	761	23 the power, in its discretion, to issue a new permit after such
762	762	24 suspension, cancellation or revocation, except when the person
763	763	25 who would receive the permit is ineligible to receive a
764	764	26 distributor's permit under this Act.
765	765
766	766
767	767
768	768
769	769
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771	771
772	772
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774	774	HB2767 - 21 - LRB104 10322 HLH 20396 b
775	775	1 All permits issued by the Department under this Act shall
776	776	2 be valid for not to exceed one year after issuance unless
777	777	3 sooner revoked, canceled or suspended as in this Act provided.
778	778	4 (b) Out-of-state cigarette manufacturers who are not
779	779	5 required to be licensed as distributors of cigarettes in this
780	780	6 State and who do not elect to obtain approval under subsection
781	781	7 4b(a) to pay the tax imposed by this Act, but who elect to
782	782	8 qualify under this Act as distributors of cigarettes in this
783	783	9 State for purposes of shipping and delivering unstamped
784	784	10 original packages of cigarettes into this State to licensed
785	785	11 distributors, shall obtain a permit from the Department. These
786	786	12 permits shall be issued without charge in such form as the
787	787	13 Department may prescribe and shall not be transferable or
788	788	14 assignable.
789	789	15 The following are ineligible to receive a distributor's
790	790	16 permit under this subsection:
791	791	17 (1) a person who is not of good character and
792	792	18 reputation in the community in which he or she resides;
793	793	19 the Department may consider past conviction of a felony
794	794	20 but the conviction shall not operate as an absolute bar to
795	795	21 receiving a permit;
796	796	22 (2) a person who has been convicted of a felony under
797	797	23 any federal or State law, if the Department, after
798	798	24 investigation and a hearing and consideration of
799	799	25 mitigating factors and evidence of rehabilitation
800	800	26 contained in the applicant's record, including those set
801	801
802	802
803	803
804	804
805	805
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807	807
808	808
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810	810	HB2767 - 22 - LRB104 10322 HLH 20396 b
811	811	1 forth in Section 4i of this Act, determines that the
812	812	2 person has not been sufficiently rehabilitated to warrant
813	813	3 the public trust and the conviction will impair the
814	814	4 ability of the person to engage in the position for which a
815	815	5 permit is sought; and
816	816	6 (3) a corporation, if any officer, manager, or
817	817	7 director thereof, or any stockholder or stockholders
818	818	8 owning in the aggregate more than 5% of the stock of the
819	819	9 corporation, would not be eligible to receive a permit
820	820	10 under this Act for any reason.
821	821	11 With respect to original packages of cigarettes that such
822	822	12 permittee delivers or causes to be delivered in Illinois and
823	823	13 distributes to the public for promotional purposes without
824	824	14 consideration, the permittee shall pay the tax imposed by this
825	825	15 Act by remitting the amount thereof to the Department by the
826	826	16 5th day of each month covering cigarettes shipped or otherwise
827	827	17 delivered in Illinois for those purposes during the preceding
828	828	18 calendar month. The permittee, before delivering those
829	829	19 cigarettes or causing those cigarettes to be delivered in this
830	830	20 State, shall evidence his or her obligation to remit the taxes
831	831	21 due with respect to those cigarettes by imprinting language to
832	832	22 be prescribed by the Department on each original package of
833	833	23 cigarettes, in such place thereon and in such manner also to be
834	834	24 prescribed by the Department. The imprinted language shall
835	835	25 acknowledge the permittee's payment of or liability for the
836	836	26 tax imposed by this Act with respect to the distribution of
837	837
838	838
839	839
840	840
841	841
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843	843
844	844
845	845	HB2767- 23 -LRB104 10322 HLH 20396 b HB2767 - 23 - LRB104 10322 HLH 20396 b
846	846	HB2767 - 23 - LRB104 10322 HLH 20396 b
847	847	1 those cigarettes.
848	848	2 With respect to cigarettes that the permittee delivers or
849	849	3 causes to be delivered in Illinois to Illinois licensed
850	850	4 distributors or distributed to the public for promotional
851	851	5 purposes, the permittee shall, by the 5th day of each month,
852	852	6 file with the Department, a report covering cigarettes shipped
853	853	7 or otherwise delivered in Illinois to licensed distributors or
854	854	8 distributed to the public for promotional purposes during the
855	855	9 preceding calendar month on a form to be prescribed and
856	856	10 furnished by the Department and shall disclose such other
857	857	11 information as the Department may lawfully require.
858	858	12 Information that the Department may lawfully require includes
859	859	13 information related to the uniform regulation and taxation of
860	860	14 cigarettes. All reports and supporting schedules required to
861	861	15 be filed under this Section shall be filed electronically in
862	862	16 the form prescribed by the Department. The Department may
863	863	17 promulgate rules to require that the permittee's report be
864	864	18 accompanied by appropriate computer-generated magnetic media
865	865	19 supporting schedule data in the format prescribed by the
866	866	20 Department, unless, as provided by rule, the Department grants
867	867	21 an exception upon petition of the permittee. Each such report
868	868	22 shall be accompanied by a copy of each invoice rendered by the
869	869	23 permittee to any purchaser to whom the permittee delivered
870	870	24 cigarettes of the type covered by the permit (or caused
871	871	25 cigarettes of the type covered by the permit to be delivered)
872	872	26 in Illinois during the period covered by such report.
873	873
874	874
875	875
876	876
877	877
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879	879
880	880
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882	882	HB2767 - 24 - LRB104 10322 HLH 20396 b
883	883	1 Such permit may be suspended, canceled, or revoked
884	884	2 whenever the permittee violates any provision of this Act or
885	885	3 any lawful rule or regulation issued by the Department
886	886	4 pursuant to this Act, is determined to be ineligible for a
887	887	5 distributor's permit under this Act as provided in this
888	888	6 Section, or notifies the Department in writing of his or her
889	889	7 desire to have the permit canceled. The Department shall have
890	890	8 the power, in its discretion, to issue a new permit after such
891	891	9 suspension, cancellation, or revocation, except when the
892	892	10 person who would receive the permit is ineligible to receive a
893	893	11 distributor's permit under this Act.
894	894	12 All permits issued by the Department under this Act shall
895	895	13 be valid for a period not to exceed one year after issuance
896	896	14 unless sooner revoked, canceled, or suspended as provided in
897	897	15 this Act.
898	898	16 (Source: P.A. 103-592, eff. 1-1-25.)
899	899	17 (35 ILCS 130/9) (from Ch. 120, par. 453.9)
900	900	18 Sec. 9. Returns; remittance. Every distributor who is
901	901	19 required to procure a license under this Act, but who is not a
902	902	20 manufacturer of cigarettes in original packages which are
903	903	21 contained in a sealed transparent wrapper, shall, on or before
904	904	22 the 15th day of each calendar month, file a return with the
905	905	23 Department, showing the quantity of cigarettes manufactured
906	906	24 during the preceding calendar month, the quantity of
907	907	25 cigarettes brought into this State or caused to be brought
908	908
909	909
910	910
911	911
912	912
913	913	HB2767 - 24 - LRB104 10322 HLH 20396 b
914	914
915	915
916	916	HB2767- 25 -LRB104 10322 HLH 20396 b HB2767 - 25 - LRB104 10322 HLH 20396 b
917	917	HB2767 - 25 - LRB104 10322 HLH 20396 b
918	918	1 into this State from outside this State during the preceding
919	919	2 calendar month without authorized evidence on the original
920	920	3 packages of such cigarettes underneath the sealed transparent
921	921	4 wrapper thereof that the tax liability imposed by this Act has
922	922	5 been assumed by the out-of-State seller of such cigarettes,
923	923	6 the quantity of cigarettes purchased tax-paid during the
924	924	7 preceding calendar month either within or outside this State,
925	925	8 the quantity of cigarettes sold by manufacturer
926	926	9 representatives on behalf of the distributor, the quantity of
927	927	10 cigarettes sold to manufacturer representatives, and the
928	928	11 quantity of cigarettes sold or otherwise disposed of during
929	929	12 the preceding calendar month. Such return shall be filed upon
930	930	13 forms furnished and prescribed by the Department and shall
931	931	14 contain such other information as the Department may
932	932	15 reasonably require. Information that the Department may
933	933	16 reasonably require includes information related to the uniform
934	934	17 regulation and taxation of cigarettes. All returns and
935	935	18 supporting schedules required to be filed under this Section
936	936	19 and all payments required to be made under this Section shall
937	937	20 be by electronic means in the form prescribed by the
938	938	21 Department. The Department may promulgate rules to require
939	939	22 that the distributor's return be accompanied by appropriate
940	940	23 computer-generated magnetic media supporting schedule data in
941	941	24 the format required by the Department, unless, as provided by
942	942	25 rule, the Department grants an exception upon petition of a
943	943	26 distributor.
944	944
945	945
946	946
947	947
948	948
949	949	HB2767 - 25 - LRB104 10322 HLH 20396 b
950	950
951	951
952	952	HB2767- 26 -LRB104 10322 HLH 20396 b HB2767 - 26 - LRB104 10322 HLH 20396 b
953	953	HB2767 - 26 - LRB104 10322 HLH 20396 b
954	954	1 Illinois manufacturers of cigarettes in original packages
955	955	2 which are contained inside a sealed transparent wrapper shall
956	956	3 file a return by the 5th day of each month covering the
957	957	4 preceding calendar month. Each such return shall be
958	958	5 accompanied by the appropriate remittance for tax as provided
959	959	6 in Section 3 of this Act. Each such return shall show the
960	960	7 quantity of such cigarettes manufactured during the period
961	961	8 covered by the return, the quantity of cigarettes sold or
962	962	9 otherwise disposed of during the period covered by the return
963	963	10 and such other information as the Department may lawfully
964	964	11 require. Information that the Department may lawfully require
965	965	12 includes information related to the uniform regulation and
966	966	13 taxation of cigarettes. All returns and supporting schedules
967	967	14 required to be filed under this Section and all payments
968	968	15 required to be made under this Section shall be by electronic
969	969	16 means in the form prescribed Such returns shall be filed on
970	970	17 forms prescribed and furnished by the Department. Each such
971	971	18 return shall be accompanied by a copy of each invoice rendered
972	972	19 by such manufacturer to any purchaser to whom such
973	973	20 manufacturer delivered cigarettes (or caused cigarettes to be
974	974	21 delivered) during the period covered by the return. The
975	975	22 Department may promulgate rules to require that the
976	976	23 manufacturer's return be accompanied by appropriate
977	977	24 computer-generated magnetic media supporting schedule data in
978	978	25 the format required by the Department, unless, as provided by
979	979	26 rule, the Department grants an exception upon petition of a
980	980
981	981
982	982
983	983
984	984
985	985	HB2767 - 26 - LRB104 10322 HLH 20396 b
986	986
987	987
988	988	HB2767- 27 -LRB104 10322 HLH 20396 b HB2767 - 27 - LRB104 10322 HLH 20396 b
989	989	HB2767 - 27 - LRB104 10322 HLH 20396 b
990	990	1 manufacturer.
991	991	2 (Source: P.A. 103-592, eff. 1-1-25.)
992	992	3 (35 ILCS 130/9e)
993	993	4 Sec. 9e. Secondary distributors; reports. Every secondary
994	994	5 distributor who is required to procure a license under this
995	995	6 Act shall, on or before the 15th day of each calendar month,
996	996	7 file a report with the Department, showing the quantity of
997	997	8 cigarettes purchased during the preceding calendar month
998	998	9 either within or outside this State, and the quantity of
999	999	10 cigarettes sold to retailers or otherwise disposed of during
1000	1000	11 the preceding calendar month. Such reports shall be filed
1001	1001	12 electronically in such form prescribed by the Department and
1002	1002	13 shall contain such other information as the Department may
1003	1003	14 reasonably require. Information that the Department may
1004	1004	15 reasonably require includes information related to the uniform
1005	1005	16 regulation and taxation of cigarettes. The secondary
1006	1006	17 distributor's report shall be accompanied by appropriate
1007	1007	18 computer generated magnetic media supporting schedule data in
1008	1008	19 the format required by the Department, unless, as provided by
1009	1009	20 rule, the Department grants an exception upon petition of a
1010	1010	21 secondary distributor.
1011	1011	22 A certification by the Director of the Department that a
1012	1012	23 report has not been filed, or that information has not been
1013	1013	24 supplied pursuant to the provisions of this Act, shall be
1014	1014	25 prima facie evidence thereof.
1015	1015
1016	1016
1017	1017
1018	1018
1019	1019
1020	1020	HB2767 - 27 - LRB104 10322 HLH 20396 b
1021	1021
1022	1022
1023	1023	HB2767- 28 -LRB104 10322 HLH 20396 b HB2767 - 28 - LRB104 10322 HLH 20396 b
1024	1024	HB2767 - 28 - LRB104 10322 HLH 20396 b
1025	1025	1 (Source: P.A. 103-592, eff. 1-1-25.)
1026	1026	2 (35 ILCS 130/9f)
1027	1027	3 Sec. 9f. Manufacturer representatives; reports. Every
1028	1028	4 manufacturer with authority to maintain manufacturer
1029	1029	5 representatives as defined by Section 4f of this Act shall, on
1030	1030	6 or before the 15th day of each calendar month, file a report
1031	1031	7 with the Department, showing the quantity of cigarettes
1032	1032	8 purchased from licensed distributors during the preceding
1033	1033	9 calendar month, either within or outside this State, and the
1034	1034	10 quantity of cigarettes sold to retailers or otherwise disposed
1035	1035	11 of during the preceding calendar month. Such reports shall be
1036	1036	12 filed in the form prescribed by the Department and shall
1037	1037	13 contain such other information as the Department may
1038	1038	14 reasonably require. Information that the Department may
1039	1039	15 reasonably require includes information related to the uniform
1040	1040	16 regulation and taxation of cigarettes. The report and
1041	1041	17 supporting schedules shall be filed electronically in the form
1042	1042	18 prescribed by the Department and be accompanied by appropriate
1043	1043	19 computer generated magnetic media supporting schedule data in
1044	1044	20 the format required by the Department, unless, as provided by
1045	1045	21 rule, the Department grants an exception upon petition of a
1046	1046	22 manufacturer with authority to maintain manufacturer
1047	1047	23 representatives in this State.
1048	1048	24 A certification by the Director of the Department that a
1049	1049	25 report has not been filed, or that information has not been
1050	1050
1051	1051
1052	1052
1053	1053
1054	1054
1055	1055	HB2767 - 28 - LRB104 10322 HLH 20396 b
1056	1056
1057	1057
1058	1058	HB2767- 29 -LRB104 10322 HLH 20396 b HB2767 - 29 - LRB104 10322 HLH 20396 b
1059	1059	HB2767 - 29 - LRB104 10322 HLH 20396 b
1060	1060	1 supplied pursuant to the provisions of this Act, shall be
1061	1061	2 prima facie evidence thereof.
1062	1062	3 (Source: P.A. 103-592, eff. 1-1-25.)
1063	1063	4 Section 20. The Cigarette Use Tax Act is amended by
1064	1064	5 changing Sections 11, 11a, and 12 as follows:
1065	1065	6 (35 ILCS 135/11) (from Ch. 120, par. 453.41)
1066	1066	7 Sec. 11. Return by distributor or manufacturer. Every
1067	1067	8 distributor, who is required or authorized to collect tax
1068	1068	9 under this Act, but who is not a manufacturer of cigarettes in
1069	1069	10 original packages which are contained in a sealed transparent
1070	1070	11 wrapper, shall, on or before the 15th day of each calendar
1071	1071	12 month, file a return with the Department, showing such
1072	1072	13 information as the Department may reasonably require.
1073	1073	14 Information that the Department may reasonably require
1074	1074	15 includes information related to the uniform regulation and
1075	1075	16 taxation of cigarettes. All returns and supporting schedules
1076	1076	17 required to be filed under this Section shall be filed
1077	1077	18 electronically in the form prescribed by the Department. The
1078	1078	19 Department may promulgate rules to require that the
1079	1079	20 distributor's return be accompanied by appropriate
1080	1080	21 computer-generated magnetic media supporting schedule data in
1081	1081	22 the format required by the Department, unless, as provided by
1082	1082	23 rule, the Department grants an exception upon petition of a
1083	1083	24 distributor.
1084	1084
1085	1085
1086	1086
1087	1087
1088	1088
1089	1089	HB2767 - 29 - LRB104 10322 HLH 20396 b
1090	1090
1091	1091
1092	1092	HB2767- 30 -LRB104 10322 HLH 20396 b HB2767 - 30 - LRB104 10322 HLH 20396 b
1093	1093	HB2767 - 30 - LRB104 10322 HLH 20396 b
1094	1094	1 Illinois manufacturers of cigarettes in original packages
1095	1095	2 which are contained inside a sealed transparent wrapper shall
1096	1096	3 file a return by the 5th day of each month covering the
1097	1097	4 preceding calendar month. Each such return shall be
1098	1098	5 accompanied by the appropriate remittance for tax as provided
1099	1099	6 in Section 3 of this Act. Each such return shall disclose such
1100	1100	7 information as the Department may lawfully require.
1101	1101	8 Information that the Department may lawfully require includes
1102	1102	9 information related to the uniform regulation and taxation of
1103	1103	10 cigarettes. All returns and supporting schedules required to
1104	1104	11 be filed under this Section and all payments required to be
1105	1105	12 made under this Section shall be by electronic means in the
1106	1106	13 form prescribed by the Department. Each such return shall be
1107	1107	14 accompanied by a copy of each invoice rendered by such
1108	1108	15 manufacturer to any purchaser to whom such manufacturer
1109	1109	16 delivered cigarettes (or caused cigarettes to be delivered)
1110	1110	17 during the period covered by the return. The Department may
1111	1111	18 promulgate rules to require that the manufacturer's return be
1112	1112	19 accompanied by appropriate computer-generated magnetic media
1113	1113	20 supporting schedule data in the format required by the
1114	1114	21 Department, unless, as provided by rule, the Department grants
1115	1115	22 an exception upon petition of a manufacturer.
1116	1116	23 No distributor shall be required to return information to
1117	1117	24 the extent to which the reporting of such information would be
1118	1118	25 a duplication of such distributor's reporting of information
1119	1119	26 in any return which he is required to file with the Department
1120	1120
1121	1121
1122	1122
1123	1123
1124	1124
1125	1125	HB2767 - 30 - LRB104 10322 HLH 20396 b
1126	1126
1127	1127
1128	1128	HB2767- 31 -LRB104 10322 HLH 20396 b HB2767 - 31 - LRB104 10322 HLH 20396 b
1129	1129	HB2767 - 31 - LRB104 10322 HLH 20396 b
1130	1130	1 under the Cigarette Tax Act. Returns shall be filed on forms
1131	1131	2 prescribed by the Department.
1132	1132	3 (Source: P.A. 103-592, eff. 1-1-25.)
1133	1133	4 (35 ILCS 135/11a)
1134	1134	5 Sec. 11a. Secondary distributors; reports. Every secondary
1135	1135	6 distributor who is required to procure, or is authorized to
1136	1136	7 procure, a license under this Act shall, on or before the 15th
1137	1137	8 day of each calendar month, file a report with the Department,
1138	1138	9 showing the quantity of cigarettes purchased during the
1139	1139	10 preceding calendar month either within or outside this State,
1140	1140	11 and the quantity of cigarettes sold to Illinois retailers or
1141	1141	12 otherwise disposed of during the preceding calendar month.
1142	1142	13 Such reports shall be filed electronically in such form
1143	1143	14 prescribed by the Department and shall contain such other
1144	1144	15 information as the Department may reasonably require.
1145	1145	16 Information that the Department may reasonably require
1146	1146	17 includes information related to the uniform regulation and
1147	1147	18 taxation of cigarettes. The secondary distributor's report
1148	1148	19 shall be accompanied by appropriate computer generated
1149	1149	20 magnetic media supporting schedule data in the format required
1150	1150	21 by the Department, unless, as provided by rule, the Department
1151	1151	22 grants an exception upon petition of a secondary distributor.
1152	1152	23 A certification by the Director of the Department that a
1153	1153	24 report has not been filed, or that information has not been
1154	1154	25 supplied pursuant to the provisions of this Act, shall be
1155	1155
1156	1156
1157	1157
1158	1158
1159	1159
1160	1160	HB2767 - 31 - LRB104 10322 HLH 20396 b
1161	1161
1162	1162
1163	1163	HB2767- 32 -LRB104 10322 HLH 20396 b HB2767 - 32 - LRB104 10322 HLH 20396 b
1164	1164	HB2767 - 32 - LRB104 10322 HLH 20396 b
1165	1165	1 prima facie evidence thereof.
1166	1166	2 (Source: P.A. 103-592, eff. 1-1-25.)
1167	1167	3 (35 ILCS 135/12) (from Ch. 120, par. 453.42)
1168	1168	4 Sec. 12. Declaration of possession of cigarettes on which
1169	1169	5 tax not paid.
1170	1170	6 (a) When cigarettes are acquired for use in this State by a
1171	1171	7 person (including a distributor as well as any other person),
1172	1172	8 who did not pay the tax herein imposed to a distributor, the
1173	1173	9 person, within 30 days after acquiring the cigarettes, shall
1174	1174	10 file with the Department a return declaring the possession of
1175	1175	11 the cigarettes and shall transmit with the return to the
1176	1176	12 Department the tax imposed by this Act. All returns and
1177	1177	13 supporting schedules required to be filed under this Section
1178	1178	14 and all payments required to be made under this Section shall
1179	1179	15 be by electronic means in the form prescribed by the
1180	1180	16 Department.
1181	1181	17 (b) On receipt of the return and payment of the tax as
1182	1182	18 required by paragraph (a), the Department may furnish the
1183	1183	19 person with a suitable tax stamp to be affixed to the package
1184	1184	20 of cigarettes upon which the tax has been paid if the
1185	1185	21 Department determines that the cigarettes still exist.
1186	1186	22 (c) The return referred to in paragraph (a) shall contain
1187	1187	23 the name and address of the person possessing the cigarettes
1188	1188	24 involved, the location of the cigarettes and the quantity,
1189	1189	25 brand name, place, and date of the acquisition of the
1190	1190
1191	1191
1192	1192
1193	1193
1194	1194
1195	1195	HB2767 - 32 - LRB104 10322 HLH 20396 b
1196	1196
1197	1197
1198	1198	HB2767- 33 -LRB104 10322 HLH 20396 b HB2767 - 33 - LRB104 10322 HLH 20396 b
1199	1199	HB2767 - 33 - LRB104 10322 HLH 20396 b
1200	1200	1 cigarettes.
1201	1201	2 (d) Nothing in this Section shall permit a secondary
1202	1202	3 distributor to purchase unstamped original packages of
1203	1203	4 cigarettes or to purchase original packages of cigarettes from
1204	1204	5 a person other than a licensed distributor.
1205	1205	6 (e) Any distributor who violates this Section is liable to
1206	1206	7 pay to the Department, for deposit in the Tax Compliance and
1207	1207	8 Administration Fund, a penalty of $1,000 for the first
1208	1208	9 violation and $3,000 for any subsequent violation. The
1209	1209	10 Department may adopt rules to administer the penalties under
1210	1210	11 this Section. The Department may, in addition to the penalties
1211	1211	12 imposed by this Section, and any other civil or criminal
1212	1212	13 penalties provided for in this Act, assess tax, penalty, and
1213	1213	14 interest on the original packages of cigarettes.
1214	1214	15 (Source: P.A. 100-940, eff. 8-17-18.)
1215	1215	16 Section 25. The Tobacco Products Tax Act of 1995 is
1216	1216	17 amended by changing Section 10-30 as follows:
1217	1217	18 (35 ILCS 143/10-30)
1218	1218	19 Sec. 10-30. Returns.
1219	1219	20 (a) Every distributor shall, on or before the 15th day of
1220	1220	21 each month, file a return with the Department covering the
1221	1221	22 preceding calendar month. The return shall disclose the
1222	1222	23 wholesale price for all tobacco products other than moist
1223	1223	24 snuff and the quantity in ounces of moist snuff sold or
1224	1224
1225	1225
1226	1226
1227	1227
1228	1228
1229	1229	HB2767 - 33 - LRB104 10322 HLH 20396 b
1230	1230
1231	1231
1232	1232	HB2767- 34 -LRB104 10322 HLH 20396 b HB2767 - 34 - LRB104 10322 HLH 20396 b
1233	1233	HB2767 - 34 - LRB104 10322 HLH 20396 b
1234	1234	1 otherwise disposed of and other information that the
1235	1235	2 Department may reasonably require. Information that the
1236	1236	3 Department may reasonably require includes information related
1237	1237	4 to the uniform regulation and taxation of tobacco products.
1238	1238	5 The return shall be filed upon a form prescribed and furnished
1239	1239	6 by the Department.
1240	1240	7 (b) In addition to the information required under
1241	1241	8 subsection (a), on or before the 15th day of each month,
1242	1242	9 covering the preceding calendar month, each stamping
1243	1243	10 distributor shall, on forms prescribed and furnished by the
1244	1244	11 Department, report the quantity of little cigars sold or
1245	1245	12 otherwise disposed of, including the number of packages of
1246	1246	13 little cigars sold or disposed of during the month containing
1247	1247	14 20 or 25 little cigars.
1248	1248	15 (c) At the time when any return of any distributor is due
1249	1249	16 to be filed with the Department, the distributor shall also
1250	1250	17 remit to the Department the tax liability that the distributor
1251	1251	18 has incurred for transactions occurring in the preceding
1252	1252	19 calendar month.
1253	1253	20 (d) All returns and supporting schedules required to be
1254	1254	21 filed under this Section and all payments required to be made
1255	1255	22 under this Section shall be by electronic means in the form
1256	1256	23 prescribed by the Department. The Department may adopt rules
1257	1257	24 to require the electronic filing of any return or document
1258	1258	25 required to be filed under this Act. Those rules may provide
1259	1259	26 for exceptions from the filing requirement set forth in this
1260	1260
1261	1261
1262	1262
1263	1263
1264	1264
1265	1265	HB2767 - 34 - LRB104 10322 HLH 20396 b
1266	1266
1267	1267
1268	1268	HB2767- 35 -LRB104 10322 HLH 20396 b HB2767 - 35 - LRB104 10322 HLH 20396 b
1269	1269	HB2767 - 35 - LRB104 10322 HLH 20396 b
1270	1270	1 paragraph for persons who demonstrate that they do not have
1271	1271	2 access to the Internet and petition the Department to waive
1272	1272	3 the electronic filing requirement.
1273	1273	4 (e) If any payment provided for in this Section exceeds
1274	1274	5 the distributor's liabilities under this Act, as shown on an
1275	1275	6 original return, the distributor may credit such excess
1276	1276	7 payment against liability subsequently to be remitted to the
1277	1277	8 Department under this Act, in accordance with reasonable rules
1278	1278	9 adopted by the Department.
1279	1279	10 (Source: P.A. 103-592, eff. 1-1-25.)
1280	1280
1281	1281
1282	1282
1283	1283
1284	1284
1285	1285	HB2767 - 35 - LRB104 10322 HLH 20396 b