Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1314 Compare Versions

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

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1314 Introduced 1/28/2025, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED: 35 ILCS 143/10-535 ILCS 143/10-1035 ILCS 143/10-24 new35 ILCS 143/10-2535 ILCS 143/10-3035 ILCS 143/10-3535 ILCS 143/10-3735 ILCS 143/10-3835 ILCS 143/10-4535 ILCS 143/10-50 Amends the Tobacco Products Tax Act of 1995. Provides that remote retail sellers that meet certain sales criteria are required to collect and remit the tax under the Act. Provides that, beginning on January 1, 2026, the tax under the Act is 36% of (i) the actual cost paid by a distributor or remote retail seller for the stock keeping unit or (ii) if documentation of the actual cost is not available due to matters beyond the distributor or remote retail seller's control, the actual cost list paid by the distributor or remote retail seller for the stock keeping unit. Provides that, beginning January 1, 2026 and continuing through December 31, 2028, the tax per cigar sold or otherwise disposed of in the State, other than a little cigar, shall not exceed $0.75 per cigar. Effective January 1, 2026. LRB104 07123 HLH 17160 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1314 Introduced 1/28/2025, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED: 35 ILCS 143/10-535 ILCS 143/10-1035 ILCS 143/10-24 new35 ILCS 143/10-2535 ILCS 143/10-3035 ILCS 143/10-3535 ILCS 143/10-3735 ILCS 143/10-3835 ILCS 143/10-4535 ILCS 143/10-50 35 ILCS 143/10-5 35 ILCS 143/10-10 35 ILCS 143/10-24 new 35 ILCS 143/10-25 35 ILCS 143/10-30 35 ILCS 143/10-35 35 ILCS 143/10-37 35 ILCS 143/10-38 35 ILCS 143/10-45 35 ILCS 143/10-50 Amends the Tobacco Products Tax Act of 1995. Provides that remote retail sellers that meet certain sales criteria are required to collect and remit the tax under the Act. Provides that, beginning on January 1, 2026, the tax under the Act is 36% of (i) the actual cost paid by a distributor or remote retail seller for the stock keeping unit or (ii) if documentation of the actual cost is not available due to matters beyond the distributor or remote retail seller's control, the actual cost list paid by the distributor or remote retail seller for the stock keeping unit. Provides that, beginning January 1, 2026 and continuing through December 31, 2028, the tax per cigar sold or otherwise disposed of in the State, other than a little cigar, shall not exceed $0.75 per cigar. Effective January 1, 2026. LRB104 07123 HLH 17160 b LRB104 07123 HLH 17160 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1314 Introduced 1/28/2025, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 143/10-535 ILCS 143/10-1035 ILCS 143/10-24 new35 ILCS 143/10-2535 ILCS 143/10-3035 ILCS 143/10-3535 ILCS 143/10-3735 ILCS 143/10-3835 ILCS 143/10-4535 ILCS 143/10-50 35 ILCS 143/10-5 35 ILCS 143/10-10 35 ILCS 143/10-24 new 35 ILCS 143/10-25 35 ILCS 143/10-30 35 ILCS 143/10-35 35 ILCS 143/10-37 35 ILCS 143/10-38 35 ILCS 143/10-45 35 ILCS 143/10-50
4	4	35 ILCS 143/10-5
5	5	35 ILCS 143/10-10
6	6	35 ILCS 143/10-24 new
7	7	35 ILCS 143/10-25
8	8	35 ILCS 143/10-30
9	9	35 ILCS 143/10-35
10	10	35 ILCS 143/10-37
11	11	35 ILCS 143/10-38
12	12	35 ILCS 143/10-45
13	13	35 ILCS 143/10-50
14	14	Amends the Tobacco Products Tax Act of 1995. Provides that remote retail sellers that meet certain sales criteria are required to collect and remit the tax under the Act. Provides that, beginning on January 1, 2026, the tax under the Act is 36% of (i) the actual cost paid by a distributor or remote retail seller for the stock keeping unit or (ii) if documentation of the actual cost is not available due to matters beyond the distributor or remote retail seller's control, the actual cost list paid by the distributor or remote retail seller for the stock keeping unit. Provides that, beginning January 1, 2026 and continuing through December 31, 2028, the tax per cigar sold or otherwise disposed of in the State, other than a little cigar, shall not exceed $0.75 per cigar. Effective January 1, 2026.
15	15	LRB104 07123 HLH 17160 b LRB104 07123 HLH 17160 b
16	16	LRB104 07123 HLH 17160 b
17	17	A BILL FOR
18	18	SB1314LRB104 07123 HLH 17160 b SB1314 LRB104 07123 HLH 17160 b
19	19	SB1314 LRB104 07123 HLH 17160 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 Tobacco Products Tax Act of 1995 is amended
24	24	5 by changing Sections 10-5, 10-10, 10-25, 10-30, 10-35, 10-37,
25	25	6 10-38, 10-45, and 10-50 and by adding Section 10-24 as
26	26	7 follows:
27	27	8 (35 ILCS 143/10-5)
28	28	9 Sec. 10-5. Definitions. For purposes of this Act:
29	29	10 "Actual cost" means the actual price paid for each
30	30	11 individual SKU by a distributor or a remote retail seller
31	31	12 before any stated discounts or rebates.
32	32	13 "Actual cost list" means the average actual price paid for
33	33	14 a SKU by a distributor or a remote retail seller, before any
34	34	15 stated discounts or rebates, to a manufacturer, wholesaler, or
35	35	16 distributor during the calendar year immediately preceding the
36	36	17 calendar year in which the sale occurs.
37	37	18 "Business" means any trade, occupation, activity, or
38	38	19 enterprise engaged in, at any location whatsoever, for the
39	39	20 purpose of selling tobacco products.
40	40	21 "Cigar" means any roll of tobacco wrapped in leaf tobacco
41	41	22 or in any substance containing tobacco. "Cigar" does not
42	42	23 include a little cigar or any roll of tobacco that is
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46	46	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1314 Introduced 1/28/2025, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED:
47	47	35 ILCS 143/10-535 ILCS 143/10-1035 ILCS 143/10-24 new35 ILCS 143/10-2535 ILCS 143/10-3035 ILCS 143/10-3535 ILCS 143/10-3735 ILCS 143/10-3835 ILCS 143/10-4535 ILCS 143/10-50 35 ILCS 143/10-5 35 ILCS 143/10-10 35 ILCS 143/10-24 new 35 ILCS 143/10-25 35 ILCS 143/10-30 35 ILCS 143/10-35 35 ILCS 143/10-37 35 ILCS 143/10-38 35 ILCS 143/10-45 35 ILCS 143/10-50
48	48	35 ILCS 143/10-5
49	49	35 ILCS 143/10-10
50	50	35 ILCS 143/10-24 new
51	51	35 ILCS 143/10-25
52	52	35 ILCS 143/10-30
53	53	35 ILCS 143/10-35
54	54	35 ILCS 143/10-37
55	55	35 ILCS 143/10-38
56	56	35 ILCS 143/10-45
57	57	35 ILCS 143/10-50
58	58	Amends the Tobacco Products Tax Act of 1995. Provides that remote retail sellers that meet certain sales criteria are required to collect and remit the tax under the Act. Provides that, beginning on January 1, 2026, the tax under the Act is 36% of (i) the actual cost paid by a distributor or remote retail seller for the stock keeping unit or (ii) if documentation of the actual cost is not available due to matters beyond the distributor or remote retail seller's control, the actual cost list paid by the distributor or remote retail seller for the stock keeping unit. Provides that, beginning January 1, 2026 and continuing through December 31, 2028, the tax per cigar sold or otherwise disposed of in the State, other than a little cigar, shall not exceed $0.75 per cigar. Effective January 1, 2026.
59	59	LRB104 07123 HLH 17160 b LRB104 07123 HLH 17160 b
60	60	LRB104 07123 HLH 17160 b
61	61	A BILL FOR
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67	67	35 ILCS 143/10-5
68	68	35 ILCS 143/10-10
69	69	35 ILCS 143/10-24 new
70	70	35 ILCS 143/10-25
71	71	35 ILCS 143/10-30
72	72	35 ILCS 143/10-35
73	73	35 ILCS 143/10-37
74	74	35 ILCS 143/10-38
75	75	35 ILCS 143/10-45
76	76	35 ILCS 143/10-50
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95	95	1 classified as a cigarette within the meaning of Section 1 of
96	96	2 the Cigarette Tax Act.
97	97	3 "Cigarette" has the meaning ascribed to the term in
98	98	4 Section 1 of the Cigarette Tax Act.
99	99	5 "Contraband little cigar" means:
100	100	6 (1) packages of little cigars containing 20 or 25
101	101	7 little cigars that do not bear a required tax stamp under
102	102	8 this Act;
103	103	9 (2) packages of little cigars containing 20 or 25
104	104	10 little cigars that bear a fraudulent, imitation, or
105	105	11 counterfeit tax stamp;
106	106	12 (3) packages of little cigars containing 20 or 25
107	107	13 little cigars that are improperly tax stamped, including
108	108	14 packages of little cigars that bear only a tax stamp of
109	109	15 another state or taxing jurisdiction; or
110	110	16 (4) packages of little cigars containing other than 20
111	111	17 or 25 little cigars in the possession of a distributor,
112	112	18 retailer or wholesaler, unless the distributor, retailer,
113	113	19 or wholesaler possesses, or produces within the time frame
114	114	20 provided in Section 10-27 or 10-28 of this Act, an invoice
115	115	21 from a stamping distributor, distributor, or wholesaler
116	116	22 showing that the tax on the packages has been or will be
117	117	23 paid.
118	118	24 "Consumer" means a person who acquires ownership of
119	119	25 tangible personal property, including tobacco products, for
120	120	26 use or consumption in this State and not for resale.
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131	131	1 "Correctional Industries program" means a program run by a
132	132	2 State penal institution in which residents of the penal
133	133	3 institution produce tobacco products for sale to persons
134	134	4 incarcerated in penal institutions or resident patients of a
135	135	5 State operated mental health facility.
136	136	6 "Department" means the Illinois Department of Revenue.
137	137	7 "Distributor" means any of the following:
138	138	8 (1) Any manufacturer or wholesaler in this State
139	139	9 engaged in the business of selling tobacco products who
140	140	10 sells, exchanges, or distributes tobacco products to
141	141	11 retailers or consumers in this State.
142	142	12 (2) Any manufacturer or wholesaler engaged in the
143	143	13 business of selling tobacco products from without this
144	144	14 State who sells, exchanges, distributes, ships, or
145	145	15 transports tobacco products to retailers or consumers
146	146	16 located in this State, so long as that manufacturer or
147	147	17 wholesaler has or maintains within this State, directly or
148	148	18 by subsidiary, an office, sales house, or other place of
149	149	19 business, or any agent or other representative operating
150	150	20 within this State under the authority of the person or
151	151	21 subsidiary, irrespective of whether the place of business
152	152	22 or agent or other representative is located here
153	153	23 permanently or temporarily.
154	154	24 (3) Any retailer who receives tobacco products on
155	155	25 which the tax has not been or will not be paid by another
156	156	26 distributor.
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167	167	1 "Distributor" does not include any person, wherever
168	168	2 resident or located, who makes, manufactures, or fabricates
169	169	3 tobacco products as part of a Correctional Industries program
170	170	4 for sale to residents incarcerated in penal institutions or
171	171	5 resident patients of a State operated mental health facility.
172	172	6 "Electronic cigarette" means:
173	173	7 (1) any device that employs a battery or other
174	174	8 mechanism to heat a solution or substance to produce a
175	175	9 vapor or aerosol intended for inhalation, except for (A)
176	176	10 any device designed solely for use with cannabis that
177	177	11 contains a statement on the retail packaging that the
178	178	12 device is designed solely for use with cannabis and not
179	179	13 for use with tobacco or (B) any device that contains a
180	180	14 solution or substance that contains cannabis subject to
181	181	15 tax under the Compassionate Use of Medical Cannabis
182	182	16 Program Act or the Cannabis Regulation and Tax Act;
183	183	17 (2) any cartridge or container of a solution or
184	184	18 substance intended to be used with or in the device or to
185	185	19 refill the device, except for any cartridge or container
186	186	20 of a solution or substance that contains cannabis subject
187	187	21 to tax under the Compassionate Use of Medical Cannabis
188	188	22 Program Act or the Cannabis Regulation and Tax Act; or
189	189	23 (3) any solution or substance, whether or not it
190	190	24 contains nicotine, intended for use in the device, except
191	191	25 for any solution or substance that contains cannabis
192	192	26 subject to tax under the Compassionate Use of Medical
193	193
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203	203	1 Cannabis Program Act or the Cannabis Regulation and Tax
204	204	2 Act.
205	205	3 The changes made to the definition of "electronic
206	206	4 cigarette" by this amendatory Act of the 102nd General
207	207	5 Assembly apply on and after June 28, 2019, but no claim for
208	208	6 credit or refund is allowed on or after the effective date of
209	209	7 this amendatory Act of the 102nd General Assembly for such
210	210	8 taxes paid during the period beginning June 28, 2019 and the
211	211	9 effective date of this amendatory Act of the 102nd General
212	212	10 Assembly.
213	213	11 "Electronic cigarette" includes, but is not limited to,
214	214	12 any electronic nicotine delivery system, electronic cigar,
215	215	13 electronic cigarillo, electronic pipe, electronic hookah, vape
216	216	14 pen, or similar product or device, and any component or part
217	217	15 that can be used to build the product or device. "Electronic
218	218	16 cigarette" does not include: cigarettes, as defined in Section
219	219	17 1 of the Cigarette Tax Act; any product approved by the United
220	220	18 States Food and Drug Administration for sale as a tobacco
221	221	19 cessation product, a tobacco dependence product, or for other
222	222	20 medical purposes that is marketed and sold solely for that
223	223	21 approved purpose; any asthma inhaler prescribed by a physician
224	224	22 for that condition that is marketed and sold solely for that
225	225	23 approved purpose; or any therapeutic product approved for use
226	226	24 under the Compassionate Use of Medical Cannabis Program Act.
227	227	25 "Little cigar" means and includes any roll, made wholly or
228	228	26 in part of tobacco, where such roll has an integrated
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239	239	1 cellulose acetate filter and weighs less than 4 pounds per
240	240	2 thousand and the wrapper or cover of which is made in whole or
241	241	3 in part of tobacco.
242	242	4 "Manufacturer" means any person, wherever resident or
243	243	5 located, who manufactures and sells tobacco products, except a
244	244	6 person who makes, manufactures, or fabricates tobacco products
245	245	7 as a part of a Correctional Industries program for sale to
246	246	8 persons incarcerated in penal institutions or resident
247	247	9 patients of a State operated mental health facility.
248	248	10 Beginning on January 1, 2013, "moist snuff" means any
249	249	11 finely cut, ground, or powdered tobacco that is not intended
250	250	12 to be smoked, but shall not include any finely cut, ground, or
251	251	13 powdered tobacco that is intended to be placed in the nasal
252	252	14 cavity.
253	253	15 "Person" means any natural individual, firm, partnership,
254	254	16 association, joint stock company, joint venture, limited
255	255	17 liability company, or public or private corporation, however
256	256	18 formed, or a receiver, executor, administrator, trustee,
257	257	19 conservator, or other representative appointed by order of any
258	258	20 court.
259	259	21 "Pipe tobacco" means any tobacco that, because of its
260	260	22 appearance, type, packaging, or labeling, is suitable for use
261	261	23 in a pipe and is likely to be offered to or purchased by a
262	262	24 consumer as tobacco to be smoked in a pipe.
263	263	25 "Place of business" means and includes any place where
264	264	26 tobacco products are sold or where tobacco products are
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275	275	1 manufactured, stored, or kept for the purpose of sale or
276	276	2 consumption, including any vessel, vehicle, airplane, train,
277	277	3 or vending machine.
278	278	4 "Prior continuous compliance taxpayer" means any person
279	279	5 who is licensed under this Act and who, having been a licensee
280	280	6 for a continuous period of 2 years, is determined by the
281	281	7 Department not to have been either delinquent or deficient in
282	282	8 the payment of tax liability during that period or otherwise
283	283	9 in violation of this Act. "Prior continuous compliance
284	284	10 taxpayer" also means any taxpayer who has, as verified by the
285	285	11 Department, continuously complied with the condition of his
286	286	12 bond or other security under provisions of this Act for a
287	287	13 period of 2 consecutive years. In calculating the consecutive
288	288	14 period of time described in this definition for qualification
289	289	15 as a prior continuous compliance taxpayer, a consecutive
290	290	16 period of time of qualifying compliance immediately prior to
291	291	17 the effective date of this amendatory Act of the 103rd General
292	292	18 Assembly shall be credited to any licensee who became licensed
293	293	19 on or before the effective date of this amendatory Act of the
294	294	20 103rd General Assembly. A distributor that is a prior
295	295	21 continuous compliance taxpayer and becomes a successor to a
296	296	22 distributor as the result of an acquisition, merger, or
297	297	23 consolidation of that distributor shall be deemed to be a
298	298	24 prior continuous compliance taxpayer with respect to the
299	299	25 acquired, merged, or consolidated entity.
300	300	26 "Remote retail sale" means a sale by a remote retail
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311	311	1 seller of cigars or pipe tobacco to a consumer in this State
312	312	2 when:
313	313	3 (1) the buyer submits the order for the sale by means
314	314	4 of a telephone or other method of voice transmission, by
315	315	5 first class mail, or by using the Internet or other online
316	316	6 service, or if the seller is otherwise not in the physical
317	317	7 presence of the buyer when the request for purchase or
318	318	8 order is made; or
319	319	9 (2) the cigars or pipe tobacco are delivered to the
320	320	10 buyer by common carrier, private delivery service, or
321	321	11 other method of remote delivery, or the seller is not in
322	322	12 the physical presence of the buyer when the buyer obtains
323	323	13 possession of the cigars or pipe tobacco.
324	324	14 "Remote retail seller" means a person located outside of
325	325	15 this State who makes remote retail sales of cigars or pipe
326	326	16 tobacco, so long as that person does not maintain within this
327	327	17 State, directly or by a subsidiary, an office, distribution
328	328	18 house, sales house, warehouse, or other place of business, or
329	329	19 any agent or other representative operating within this State
330	330	20 under the authority of the person or its subsidiary,
331	331	21 irrespective of whether the place of business or the agent is
332	332	22 located here permanently or temporarily or whether the person
333	333	23 or subsidiary is licensed to do business in this State.
334	334	24 "Retailer" means any person in this State engaged in the
335	335	25 business of selling tobacco products to consumers in this
336	336	26 State, regardless of quantity or number of sales.
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347	347	1 "Sale" means any transfer, exchange, or barter in any
348	348	2 manner or by any means whatsoever for a consideration and
349	349	3 includes all sales made by persons.
350	350	4 "Stamp" or "stamps" mean the indicia required to be
351	351	5 affixed on a package of little cigars that evidence payment of
352	352	6 the tax on packages of little cigars containing 20 or 25 little
353	353	7 cigars under Section 10-10 of this Act. These stamps shall be
354	354	8 the same stamps used for cigarettes under the Cigarette Tax
355	355	9 Act.
356	356	10 "Stamping distributor" means a distributor licensed under
357	357	11 this Act and also licensed as a distributor under the
358	358	12 Cigarette Tax Act or Cigarette Use Tax Act.
359	359	13 "Stock keeping unit" or "SKU" means the unique identifier
360	360	14 assigned by a manufacturer, distributor, or remote retail
361	361	15 seller to various tobacco products in order to track
362	362	16 inventory.
363	363	17 "Tobacco products" means any cigars, including little
364	364	18 cigars; cheroots; stogies; periques; granulated, plug cut,
365	365	19 crimp cut, ready rubbed, and other smoking tobacco; snuff
366	366	20 (including moist snuff) or snuff flour; cavendish; plug and
367	367	21 twist tobacco; fine-cut and other chewing tobaccos; shorts;
368	368	22 refuse scraps, clippings, cuttings, and sweeping of tobacco;
369	369	23 and other kinds and forms of tobacco, prepared in such manner
370	370	24 as to be suitable for chewing or smoking in a pipe or
371	371	25 otherwise, or both for chewing and smoking; but does not
372	372	26 include cigarettes as defined in Section 1 of the Cigarette
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383	383	1 Tax Act or tobacco purchased for the manufacture of cigarettes
384	384	2 by cigarette distributors and manufacturers defined in the
385	385	3 Cigarette Tax Act and persons who make, manufacture, or
386	386	4 fabricate cigarettes as a part of a Correctional Industries
387	387	5 program for sale to residents incarcerated in penal
388	388	6 institutions or resident patients of a State operated mental
389	389	7 health facility.
390	390	8 Beginning on July 1, 2019, "tobacco products" also
391	391	9 includes electronic cigarettes.
392	392	10 "Wholesale price" means the established list price for
393	393	11 which a manufacturer sells tobacco products to a distributor,
394	394	12 before the allowance of any discount, trade allowance, rebate,
395	395	13 or other reduction. In the absence of such an established list
396	396	14 price, the manufacturer's invoice price at which the
397	397	15 manufacturer sells the tobacco product to unaffiliated
398	398	16 distributors, before any discounts, trade allowances, rebates,
399	399	17 or other reductions, shall be presumed to be the wholesale
400	400	18 price.
401	401	19 "Wholesaler" means any person, wherever resident or
402	402	20 located, engaged in the business of selling tobacco products
403	403	21 to others for the purpose of resale. "Wholesaler", when used
404	404	22 in this Act, does not include a person licensed as a
405	405	23 distributor under Section 10-20 of this Act unless expressly
406	406	24 stated in this Act.
407	407	25 (Source: P.A. 102-40, eff. 6-25-21; 103-1001, eff. 8-9-24.)
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418	418	1 (35 ILCS 143/10-10)
419	419	2 Sec. 10-10. Tax imposed.
420	420	3 (a) Except as otherwise provided in this Section with
421	421	4 respect to little cigars, on the first day of the third month
422	422	5 after the month in which this Act becomes law, a tax is imposed
423	423	6 on any person engaged in business as a distributor of tobacco
424	424	7 products, as defined in Section 10-5, at the rate of:
425	425	8 (1) (i) 18% of the wholesale price of tobacco
426	426	9 products sold or otherwise disposed of to retailers or
427	427	10 consumers located in this State prior to July 1, 2012;
428	428	11 (2) and (ii) 36% of the wholesale price of tobacco
429	429	12 products sold or otherwise disposed of to retailers or
430	430	13 consumers located in this State beginning on July 1, 2012
431	431	14 and before January 1, 2026; and
432	432	15 (3) beginning on January 1, 2026, 36% of:
433	433	16 (A) the actual cost paid by a distributor or
434	434	17 remote retail seller for the stock keeping unit sold
435	435	18 or otherwise disposed of to a retailer or consumer in
436	436	19 the State; or
437	437	20 (B) if documentation of the actual cost paid
438	438	21 by a distributor or remote retail seller is not
439	439	22 available due to matters beyond the distributor or
440	440	23 remote retail seller's control, the actual cost list
441	441	24 paid by a distributor or remote retail seller for the
442	442	25 stock keeping unit sold or otherwise disposed of to
443	443	26 retailers or consumers located in this State for which
444	444
445	445
446	446
447	447
448	448
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450	450
451	451
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453	453	SB1314 - 12 - LRB104 07123 HLH 17160 b
454	454	1 documentation is not available. ; except that,
455	455	2 beginning
456	456	3 Notwithstanding the provisions of this subsection (a),
457	457	4 beginning on January 1, 2013, the tax on moist snuff shall be
458	458	5 imposed at a rate of $0.30 per ounce, and a proportionate tax
459	459	6 at the like rate on all fractional parts of an ounce, sold or
460	460	7 otherwise disposed of to retailers or consumers located in
461	461	8 this State. Notwithstanding the provisions of subsection (a),
462	462	9 beginning on ; and except that, beginning July 1, 2019, the tax
463	463	10 on electronic cigarettes shall be imposed at the rate of 15% of
464	464	11 the wholesale price of electronic cigarettes sold or otherwise
465	465	12 disposed of to retailers or consumers located in this State.
466	466	13 The tax imposed under this subsection (a) is in addition
467	467	14 to all other occupation or privilege taxes imposed by the
468	468	15 State of Illinois, by any political subdivision thereof, or by
469	469	16 any municipal corporation. However, the tax is not imposed
470	470	17 upon any activity in that business in interstate commerce or
471	471	18 otherwise, to the extent to which that activity may not, under
472	472	19 the Constitution and Statutes of the United States, be made
473	473	20 the subject of taxation by this State, and except that,
474	474	21 beginning July 1, 2013, the tax on little cigars shall be
475	475	22 imposed at the same rate, and the proceeds shall be
476	476	23 distributed in the same manner, as the tax imposed on
477	477	24 cigarettes under the Cigarette Tax Act. The tax is also not
478	478	25 imposed on sales made to the United States or any entity
479	479	26 thereof.
480	480
481	481
482	482
483	483
484	484
485	485	SB1314 - 12 - LRB104 07123 HLH 17160 b
486	486
487	487
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489	489	SB1314 - 13 - LRB104 07123 HLH 17160 b
490	490	1 If the Department determines that the actual cost list for
491	491	2 a SKU is not indicative of the actual cost paid for the SKU,
492	492	3 then the Department may determine the distributor's or remote
493	493	4 retail seller's tax liability for the SKU based on the
494	494	5 distributor's or remote retail seller's books and records or
495	495	6 from information on invoices obtained from the distributor's
496	496	7 or remote retail seller's suppliers.
497	497	8 (a-5) Beginning January 1, 2026, the tax imposed under
498	498	9 subsection (a) is also imposed upon persons who are engaged in
499	499	10 business as remote retail sellers of cigars and pipe tobacco
500	500	11 and who make sales to Illinois consumers on which the tax has
501	501	12 not been paid by a distributor, if:
502	502	13 (1) the cumulative gross receipts of the remote retail
503	503	14 seller from sales of tangible personal property to
504	504	15 consumers in this State are $100,000 or more; or
505	505	16 (2) the remote retail seller enters into 200 or more
506	506	17 separate transactions for the sale of tangible personal
507	507	18 property to consumers in this State.
508	508	19 A remote retail seller that meets or exceeds the threshold
509	509	20 in either paragraph (1) or (2) of this subsection shall be
510	510	21 liable for taxes imposed by this Act on all sales made by that
511	511	22 remote retail seller of taxable products under this Act to
512	512	23 Illinois consumers on which the tax has not been paid by a
513	513	24 distributor.
514	514	25 The remote retail seller shall determine on a quarterly
515	515	26 basis, ending on the last day of March, June, September, and
516	516
517	517
518	518
519	519
520	520
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522	522
523	523
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525	525	SB1314 - 14 - LRB104 07123 HLH 17160 b
526	526	1 December, whether it meets the criteria of either paragraph
527	527	2 (1) or (2) of this subsection for the preceding 12-month
528	528	3 period. If the remote retail seller meets the criteria of
529	529	4 either paragraph (1) or (2) for a 12-month period, then the
530	530	5 remote retail seller is considered to be engaged in business
531	531	6 as a remote retail seller in this State and is required to
532	532	7 collect and remit the tax imposed under this Act and to file
533	533	8 all applicable returns for the next 12-month period. At the
534	534	9 end of that 12-month period, the remote retail seller shall
535	535	10 determine whether the remote retail seller met the criteria of
536	536	11 either paragraph (1) or (2) for the preceding 12-month period.
537	537	12 If the remote retail seller met the criteria in either
538	538	13 paragraph (1) or (2) for the preceding 12-month period, the
539	539	14 remote retail seller is considered to be engaged in business
540	540	15 as a remote retail seller in this State and is required to
541	541	16 collect and remit the tax imposed under this Act and file
542	542	17 returns for the subsequent year. If, at the end of a one-year
543	543	18 period, a remote retail seller that was required to collect
544	544	19 and remit the tax imposed under this Act determines that the
545	545	20 remote retail seller did not meet the criteria in either
546	546	21 paragraph (1) or (2) during the preceding 12-month period,
547	547	22 then the remote retail seller shall certify to the Department,
548	548	23 in the form and manner required by the Department, that the
549	549	24 remote retail seller did not meet the criteria in either
550	550	25 paragraph (1) or (2) during the preceding 12-month period and
551	551	26 shall subsequently determine on a quarterly basis, ending on
552	552
553	553
554	554
555	555
556	556
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558	558
559	559
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561	561	SB1314 - 15 - LRB104 07123 HLH 17160 b
562	562	1 the last day of March, June, September, and December, whether
563	563	2 the remote retail seller meets the criteria of either
564	564	3 paragraph (1) or (2) for the preceding 12-month period.
565	565	4 (b) Notwithstanding subsection (a) of this Section,
566	566	5 stamping distributors of packages of little cigars containing
567	567	6 20 or 25 little cigars sold or otherwise disposed of in this
568	568	7 State shall remit the tax by purchasing tax stamps from the
569	569	8 Department and affixing them to packages of little cigars in
570	570	9 the same manner as stamps are purchased and affixed to
571	571	10 cigarettes under the Cigarette Tax Act, unless the stamping
572	572	11 distributor sells or otherwise disposes of those packages of
573	573	12 little cigars to another stamping distributor. Only persons
574	574	13 meeting the definition of "stamping distributor" contained in
575	575	14 Section 10-5 of this Act may affix stamps to packages of little
576	576	15 cigars containing 20 or 25 little cigars. Stamping
577	577	16 distributors may not sell or dispose of little cigars at
578	578	17 retail to consumers or users at locations where stamping
579	579	18 distributors affix stamps to packages of little cigars
580	580	19 containing 20 or 25 little cigars.
581	581	20 (c) The impact of the tax levied by this Act is imposed
582	582	21 upon distributors engaged in the business of selling tobacco
583	583	22 products to retailers or consumers in this State. Beginning
584	584	23 January 1, 2026, the impact of the tax levied by this Act is
585	585	24 also imposed upon remote retail sellers that meet the criteria
586	586	25 in subsection (a-5) of this Section. A remote retail seller
587	587	26 shall pay the tax on all sales of cigars and pipe tobacco to
588	588
589	589
590	590
591	591
592	592
593	593	SB1314 - 15 - LRB104 07123 HLH 17160 b
594	594
595	595
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597	597	SB1314 - 16 - LRB104 07123 HLH 17160 b
598	598	1 consumers in this State on which the tax has not been paid by a
599	599	2 distributor. Whenever a stamping distributor brings or causes
600	600	3 to be brought into this State from without this State, or
601	601	4 purchases from without or within this State, any packages of
602	602	5 little cigars containing 20 or 25 little cigars upon which
603	603	6 there are no tax stamps affixed as required by this Act, for
604	604	7 purposes of resale or disposal in this State to a person not a
605	605	8 stamping distributor, then such stamping distributor shall pay
606	606	9 the tax to the Department and add the amount of the tax to the
607	607	10 price of such packages sold by such stamping distributor.
608	608	11 Payment of the tax shall be evidenced by a stamp or stamps
609	609	12 affixed to each package of little cigars containing 20 or 25
610	610	13 little cigars.
611	611	14 Stamping distributors paying the tax to the Department on
612	612	15 packages of little cigars containing 20 or 25 little cigars
613	613	16 sold to other distributors, wholesalers or retailers shall add
614	614	17 the amount of the tax to the price of the packages of little
615	615	18 cigars containing 20 or 25 little cigars sold by such stamping
616	616	19 distributors.
617	617	20 (d) Beginning on January 1, 2013, the tax rate imposed per
618	618	21 ounce of moist snuff may not exceed 15% of the tax imposed upon
619	619	22 a package of 20 cigarettes pursuant to the Cigarette Tax Act.
620	620	23 (d-5) Notwithstanding any other provisions of this Section
621	621	24 to the contrary, beginning January 1, 2026 and continuing
622	622	25 through December 31, 2028, the tax per cigar sold or otherwise
623	623	26 disposed of shall not exceed $0.75 per cigar. This subsection
624	624
625	625
626	626
627	627
628	628
629	629	SB1314 - 16 - LRB104 07123 HLH 17160 b
630	630
631	631
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633	633	SB1314 - 17 - LRB104 07123 HLH 17160 b
634	634	1 shall not apply to little cigars.
635	635	2 (e) All moneys received by the Department under this Act
636	636	3 from sales occurring prior to July 1, 2012 shall be paid into
637	637	4 the Long-Term Care Provider Fund of the State Treasury. Of the
638	638	5 moneys received by the Department from sales occurring on or
639	639	6 after July 1, 2012, except for moneys received from the tax
640	640	7 imposed on the sale of little cigars, 50% shall be paid into
641	641	8 the Long-Term Care Provider Fund and 50% shall be paid into the
642	642	9 Healthcare Provider Relief Fund. Beginning July 1, 2013, all
643	643	10 moneys received by the Department under this Act from the tax
644	644	11 imposed on little cigars shall be distributed as provided in
645	645	12 Section 2 of the Cigarette Tax Act.
646	646	13 (Source: P.A. 101-31, eff. 6-28-19.)
647	647	14 (35 ILCS 143/10-24 new)
648	648	15 Sec. 10-24. Remote retail seller's license. Beginning on
649	649	16 January 1, 2026, it shall be unlawful for any person who meets
650	650	17 the criteria established in subsection (a-5) of Section 10-10
651	651	18 to engage in business as a remote retail seller within the
652	652	19 meaning of this Act without first having obtained a license to
653	653	20 do so from the Department. Application for that license shall
654	654	21 be made to the Department, by electronic means, in a form
655	655	22 prescribed by the Department. Each applicant for a license
656	656	23 shall furnish to the Department, in an electronic format
657	657	24 established by the Department, the following information:
658	658	25 (1) the name and address of the applicant;
659	659
660	660
661	661
662	662
663	663
664	664	SB1314 - 17 - LRB104 07123 HLH 17160 b
665	665
666	666
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668	668	SB1314 - 18 - LRB104 07123 HLH 17160 b
669	669	1 (2) the address of the location at which the applicant
670	670	2 proposes to engage in business as a remote retail seller
671	671	3 outside this State; and
672	672	4 (3) such other additional information as the
673	673	5 Department may lawfully require by rule.
674	674	6 Beginning on January 1, 2026, in addition to obtaining a
675	675	7 license to engage in business as a remote retail seller in this
676	676	8 State, no remote retail seller who meets the criteria
677	677	9 established in subsection (a-5) of Section 10-10 may engage in
678	678	10 business as a remote retail seller within the meaning of this
679	679	11 Act without registering under the Retailers' Occupation Tax
680	680	12 Act pursuant to Section 2a of that Act.
681	681	13 A separate annual license shall be obtained for each place
682	682	14 of business at which a person who is required to procure a
683	683	15 remote retail seller's license under this Section proposes to
684	684	16 engage in business as a remote retail seller in Illinois under
685	685	17 this Act. All licenses issued by the Department under this
686	686	18 Section shall be valid for a period not to exceed one year
687	687	19 after issuance unless sooner revoked, canceled, or suspended
688	688	20 as provided in this Act. All licenses must be renewed on an
689	689	21 annual basis. An application submitted by a remote retail
690	690	22 seller shall include an acknowledgement consenting to the
691	691	23 jurisdiction of the Department and the courts of this State
692	692	24 concerning the enforcement of this Act and any related laws,
693	693	25 rules, and regulations, including authorizing the Department
694	694	26 of Revenue to conduct inspections and audits for the purpose
695	695
696	696
697	697
698	698
699	699
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701	701
702	702
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704	704	SB1314 - 19 - LRB104 07123 HLH 17160 b
705	705	1 of ensuring compliance with this Act and to issue penalties
706	706	2 for violations of this Act.
707	707	3 Each remote retail seller must perform age verification
708	708	4 through an independent, third-party age verification service
709	709	5 that compares information available from a commercially
710	710	6 available database, or aggregate of databases, that are
711	711	7 regularly used by government agencies and businesses for the
712	712	8 purpose of age and identity verification to the personal
713	713	9 information entered by the individual during the ordering
714	714	10 process that establishes that the individual is of age.
715	715	11 If the provisions of subsection (a-5) of Section 10-10 are
716	716	12 met, and the tax imposed under this Act is being remitted using
717	717	13 the actual cost list method to calculate the tax, each remote
718	718	14 retail seller must provide the remote retail sellers's
719	719	15 certified actual cost list to the Department for each SKU to be
720	720	16 offered for remote retail sale in the subsequent calendar
721	721	17 year. The actual cost list shall be updated by the remote
722	722	18 retail seller quarterly as new SKUs are added to the remote
723	723	19 retail seller's inventory. New SKUs will be added using the
724	724	20 actual cost first paid for the SKU.
725	725	21 The following are ineligible to receive a remote retail
726	726	22 seller's license under this Act:
727	727	23 (1) a person who has been convicted of a felony under
728	728	24 any federal or State law for smuggling cigarettes or
729	729	25 tobacco products or tobacco tax evasion, if the
730	730	26 Department, after investigation and a hearing if requested
731	731
732	732
733	733
734	734
735	735
736	736	SB1314 - 19 - LRB104 07123 HLH 17160 b
737	737
738	738
739	739	SB1314- 20 -LRB104 07123 HLH 17160 b SB1314 - 20 - LRB104 07123 HLH 17160 b
740	740	SB1314 - 20 - LRB104 07123 HLH 17160 b
741	741	1 by the applicant, determines that such person has not been
742	742	2 sufficiently rehabilitated to warrant the public trust;
743	743	3 (2) a corporation, if any officer, manager or director
744	744	4 thereof, or any stockholder or stockholders owning in the
745	745	5 aggregate more than 5% of the stock of such corporation,
746	746	6 would not be eligible to receive a license under this Act
747	747	7 for any reason; and
748	748	8 (3) any person who is in default to the State of
749	749	9 Illinois for moneys due under this Act or any other tax Act
750	750	10 administered by the Department.
751	751	11 The Department, upon receipt of an application, in proper
752	752	12 form, from a person who is eligible to receive a remote retail
753	753	13 seller's license under this Act, shall issue to such applicant
754	754	14 a license in form as prescribed by the Department, which
755	755	15 license shall permit the applicant to which it is issued to
756	756	16 engage in business as a remote retail seller under this Act at
757	757	17 the place shown in the remote retail seller's application. All
758	758	18 licenses issued by the Department under this Section shall be
759	759	19 valid for a period not to exceed one year after issuance unless
760	760	20 sooner revoked, canceled or suspended as provided in this Act.
761	761	21 No license issued under this Section is transferable or
762	762	22 assignable. A person who obtains a license as a retailer who
763	763	23 ceases to do business as specified in the license, or who never
764	764	24 commenced business, or whose license is suspended or revoked,
765	765	25 shall immediately surrender the license to the Department.
766	766	26 The Department may, in its discretion, upon application,
767	767
768	768
769	769
770	770
771	771
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773	773
774	774
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777	777	1 authorize the payment of the tax imposed under Section 10-10
778	778	2 by any remote retail seller not otherwise subject to the tax
779	779	3 imposed under this Act who, to the satisfaction of the
780	780	4 Department, furnishes adequate security to ensure payment of
781	781	5 the tax. The remote retail seller shall be issued, without
782	782	6 charge, a license to remit the tax. When so authorized, it
783	783	7 shall be the duty of the remote retail seller to remit the tax
784	784	8 imposed upon the actual cost or actual cost list price of the
785	785	9 cigars or pipe tobacco sold or otherwise disposed of to
786	786	10 consumers located in this State, in the same manner and
787	787	11 subject to the same requirements as any other remote retail
788	788	12 seller required to be licensed under this Act. It shall be the
789	789	13 duty of the remote retail seller to remit the tax imposed upon
790	790	14 the actual cost or actual cost list price of cigar or pipe
791	791	15 tobacco, sold or otherwise disposed of to consumers located in
792	792	16 this State, in the same manner and subject to the same
793	793	17 requirements as any other remote retail seller required to be
794	794	18 licensed under this Act.
795	795	19 Any person aggrieved by any decision of the Department
796	796	20 under this Section may, within 30 days after notice of the
797	797	21 decision, protest and request a hearing. Upon receiving a
798	798	22 request for a hearing, the Department shall give notice to the
799	799	23 person requesting the hearing of the time and place fixed for
800	800	24 the hearing and shall hold a hearing in conformity with the
801	801	25 provisions of this Act and then issue its final administrative
802	802	26 decision in the matter to that person. In the absence of a
803	803
804	804
805	805
806	806
807	807
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809	809
810	810
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812	812	SB1314 - 22 - LRB104 07123 HLH 17160 b
813	813	1 protest and request for a hearing within 30 days, the
814	814	2 Department's decision shall become final without any further
815	815	3 determination being made or notice given.
816	816	4 (35 ILCS 143/10-25)
817	817	5 Sec. 10-25. License actions.
818	818	6 (a) The Department may, after notice and a hearing,
819	819	7 revoke, cancel, or suspend the license of any distributor, or
820	820	8 retailer, or remote retail seller who violates any of the
821	821	9 provisions of this Act, fails to keep books and records as
822	822	10 required under this Act, fails to make books and records
823	823	11 available for inspection upon demand by a duly authorized
824	824	12 employee of the Department, or violates a rule or regulation
825	825	13 of the Department for the administration and enforcement of
826	826	14 this Act. The notice shall specify the alleged violation or
827	827	15 violations upon which the revocation, cancellation, or
828	828	16 suspension proceeding is based.
829	829	17 (a-5) The Department may, after notice and a hearing,
830	830	18 revoke, cancel, or suspend the license of a distributor or
831	831	19 remote retail seller that fails to properly register and remit
832	832	20 tax under the Retailers' Occupation Tax Act for all tobacco
833	833	21 products that are sold to consumers in this State.
834	834	22 (a-10) The Department may, after notice and a hearing,
835	835	23 revoke, cancel, or suspend the license of a distributor or
836	836	24 remote retail seller who is found in violation of any law,
837	837	25 rule, or regulation of the state where the business is located
838	838
839	839
840	840
841	841
842	842
843	843	SB1314 - 22 - LRB104 07123 HLH 17160 b
844	844
845	845
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847	847	SB1314 - 23 - LRB104 07123 HLH 17160 b
848	848	1 as listed on the license issued by the Department. The notice
849	849	2 shall specify the alleged violation or violations upon which
850	850	3 the revocation, cancellation, or suspension proceeding is
851	851	4 based.
852	852	5 (b) The Department may revoke, cancel, or suspend the
853	853	6 license of any distributor for a violation of the Tobacco
854	854	7 Product Manufacturers' Escrow Enforcement Act as provided in
855	855	8 Section 20 of that Act.
856	856	9 (c) If the retailer has a training program that
857	857	10 facilitates compliance with minimum-age tobacco laws, the
858	858	11 Department shall suspend for 3 days the license of that
859	859	12 retailer for a fourth or subsequent violation of the
860	860	13 Prevention of Tobacco Use by Persons under 21 Years of Age and
861	861	14 Sale and Distribution of Tobacco Products Act, as provided in
862	862	15 subsection (a) of Section 2 of that Act. For the purposes of
863	863	16 this Section, any violation of subsection (a) of Section 2 of
864	864	17 the Prevention of Tobacco Use by Persons under 21 Years of Age
865	865	18 and Sale and Distribution of Tobacco Products Act occurring at
866	866	19 the retailer's licensed location, during a 24-month period,
867	867	20 shall be counted as a violation against the retailer.
868	868	21 If the retailer does not have a training program that
869	869	22 facilitates compliance with minimum-age tobacco laws, the
870	870	23 Department shall suspend for 3 days the license of that
871	871	24 retailer for a second violation of the Prevention of Tobacco
872	872	25 Use by Persons under 21 Years of Age and Sale and Distribution
873	873	26 of Tobacco Products Act, as provided in subsection (a-5) of
874	874
875	875
876	876
877	877
878	878
879	879	SB1314 - 23 - LRB104 07123 HLH 17160 b
880	880
881	881
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883	883	SB1314 - 24 - LRB104 07123 HLH 17160 b
884	884	1 Section 2 of that Act.
885	885	2 If the retailer does not have a training program that
886	886	3 facilitates compliance with minimum-age tobacco laws, the
887	887	4 Department shall suspend for 7 days the license of that
888	888	5 retailer for a third violation of the Prevention of Tobacco
889	889	6 Use by Persons under 21 Years of Age and Sale and Distribution
890	890	7 of Tobacco Products Act, as provided in subsection (a-5) of
891	891	8 Section 2 of that Act.
892	892	9 If the retailer does not have a training program that
893	893	10 facilitates compliance with minimum-age tobacco laws, the
894	894	11 Department shall suspend for 30 days the license of a retailer
895	895	12 for a fourth or subsequent violation of the Prevention of
896	896	13 Tobacco Use by Persons under 21 Years of Age and Sale and
897	897	14 Distribution of Tobacco Products Act, as provided in
898	898	15 subsection (a-5) of Section 2 of that Act.
899	899	16 A training program that facilitates compliance with
900	900	17 minimum-age tobacco laws must include at least the following
901	901	18 elements: (i) it must explain that only individuals displaying
902	902	19 valid identification demonstrating that they are 21 years of
903	903	20 age or older shall be eligible to purchase cigarettes or
904	904	21 tobacco products and (ii) it must explain where a clerk can
905	905	22 check identification for a date of birth. The training may be
906	906	23 conducted electronically. Each retailer that has a training
907	907	24 program shall require each employee who completes the training
908	908	25 program to sign a form attesting that the employee has
909	909	26 received and completed tobacco training. The form shall be
910	910
911	911
912	912
913	913
914	914
915	915	SB1314 - 24 - LRB104 07123 HLH 17160 b
916	916
917	917
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919	919	SB1314 - 25 - LRB104 07123 HLH 17160 b
920	920	1 kept in the employee's file and may be used to provide proof of
921	921	2 training.
922	922	3 (d) The Department may, by application to any circuit
923	923	4 court, obtain an injunction restraining any person who engages
924	924	5 in business as a distributor or remote retail seller of
925	925	6 tobacco products without a license (either because the his or
926	926	7 her license has been revoked, canceled, or suspended or
927	927	8 because of a failure to obtain a license in the first instance)
928	928	9 from engaging in that business until that person, as if that
929	929	10 person were a new applicant for a license, complies with all of
930	930	11 the conditions, restrictions, and requirements of Section
931	931	12 10-20 or Section 10-24 of this Act and qualifies for and
932	932	13 obtains a license. Refusal or neglect to obey the order of the
933	933	14 court may result in punishment for contempt.
934	934	15 (Source: P.A. 100-940, eff. 8-17-18; 101-2, eff. 7-1-19.)
935	935	16 (35 ILCS 143/10-30)
936	936	17 Sec. 10-30. Returns.
937	937	18 (a) Every distributor shall, on or before the 15th day of
938	938	19 each month, file a return with the Department covering the
939	939	20 preceding calendar month. The return shall disclose the
940	940	21 wholesale price, or beginning on January 1, 2026, the actual
941	941	22 cost or actual cost list price, for all tobacco products other
942	942	23 than electronic cigarettes, little cigars, or moist snuff and
943	943	24 the quantity in ounces of moist snuff sold or otherwise
944	944	25 disposed of and other information that the Department may
945	945
946	946
947	947
948	948
949	949
950	950	SB1314 - 25 - LRB104 07123 HLH 17160 b
951	951
952	952
953	953	SB1314- 26 -LRB104 07123 HLH 17160 b SB1314 - 26 - LRB104 07123 HLH 17160 b
954	954	SB1314 - 26 - LRB104 07123 HLH 17160 b
955	955	1 reasonably require. Information that the Department may
956	956	2 reasonably require includes information related to the uniform
957	957	3 regulation and taxation of tobacco products. The return shall
958	958	4 be filed upon a form prescribed and furnished by the
959	959	5 Department.
960	960	6 (a-5) Beginning February 1, 2026, every remote retail
961	961	7 seller shall, on or before the 15th day of each month, file a
962	962	8 return with the Department covering the preceding calendar
963	963	9 month. The remote retail seller's return must report all
964	964	10 cigars or pipe tobacco brought in or caused to be brought in
965	965	11 from outside the State or shipped or transported to consumers
966	966	12 within the State during the preceding calendar month. The
967	967	13 return must include further information as the Department may
968	968	14 prescribe and must show the total actual cost or actual cost
969	969	15 list price paid by a remote retail seller for a stock keeping
970	970	16 unit for the previous calendar month. The return must show the
971	971	17 amount of tax due for all remote retail sales made from outside
972	972	18 the State, to a consumer within the State during the preceding
973	973	19 calendar month. It is the intent and purpose of this
974	974	20 amendatory Act of the 104th General Assembly that the remote
975	975	21 retail seller remit the tax at the time the return is filed. It
976	976	22 is further the intent and purpose of this amendatory Act of the
977	977	23 104th General Assembly to impose the tax under this Act only
978	978	24 once on all tobacco products, including cigars and pipe
979	979	25 tobacco, sold in the State.
980	980	26 (b) In addition to the information required under
981	981
982	982
983	983
984	984
985	985
986	986	SB1314 - 26 - LRB104 07123 HLH 17160 b
987	987
988	988
989	989	SB1314- 27 -LRB104 07123 HLH 17160 b SB1314 - 27 - LRB104 07123 HLH 17160 b
990	990	SB1314 - 27 - LRB104 07123 HLH 17160 b
991	991	1 subsection (a), on or before the 15th day of each month,
992	992	2 covering the preceding calendar month, each stamping
993	993	3 distributor shall, on forms prescribed and furnished by the
994	994	4 Department, report the quantity of little cigars sold or
995	995	5 otherwise disposed of, including the number of packages of
996	996	6 little cigars sold or disposed of during the month containing
997	997	7 20 or 25 little cigars.
998	998	8 (c) At the time when any return of any distributor or
999	999	9 remote retail seller is due to be filed with the Department,
1000	1000	10 the distributor shall also remit to the Department the tax
1001	1001	11 liability that the distributor or remote retail seller has
1002	1002	12 incurred for transactions occurring in the preceding calendar
1003	1003	13 month. Starting January 1, 2026, the distributor or remote
1004	1004	14 remote retail seller shall remit the tax liability, less a
1005	1005	15 discount of 1.75%, not to exceed $1,000 per month, which is
1006	1006	16 allowed to reimburse the distributor or remote retail seller
1007	1007	17 for the expenses incurred in keeping records, preparing and
1008	1008	18 filing returns, remitting the tax, and supplying data to the
1009	1009	19 Department on request. No discount may be claimed by a
1010	1010	20 taxpayer on returns not timely filed and for taxes not timely
1011	1011	21 remitted. No discount may be claimed by a taxpayer for any
1012	1012	22 return that is not filed electronically.
1013	1013	23 (d) The Department may adopt rules to require the
1014	1014	24 electronic filing of any return or document required to be
1015	1015	25 filed under this Act. Those rules may provide for exceptions
1016	1016	26 from the filing requirement set forth in this paragraph for
1017	1017
1018	1018
1019	1019
1020	1020
1021	1021
1022	1022	SB1314 - 27 - LRB104 07123 HLH 17160 b
1023	1023
1024	1024
1025	1025	SB1314- 28 -LRB104 07123 HLH 17160 b SB1314 - 28 - LRB104 07123 HLH 17160 b
1026	1026	SB1314 - 28 - LRB104 07123 HLH 17160 b
1027	1027	1 persons who demonstrate that they do not have access to the
1028	1028	2 Internet and petition the Department to waive the electronic
1029	1029	3 filing requirement.
1030	1030	4 (e) If any payment provided for in this Section exceeds
1031	1031	5 the distributor's liabilities under this Act, as shown on an
1032	1032	6 original return, the distributor may credit such excess
1033	1033	7 payment against liability subsequently to be remitted to the
1034	1034	8 Department under this Act, in accordance with reasonable rules
1035	1035	9 adopted by the Department.
1036	1036	10 (Source: P.A. 103-592, eff. 1-1-25.)
1037	1037	11 (35 ILCS 143/10-35)
1038	1038	12 Sec. 10-35. Record keeping.
1039	1039	13 (a) Every distributor, as defined in Section 10-5, shall
1040	1040	14 keep complete and accurate records of tobacco products held,
1041	1041	15 purchased, manufactured, brought in or caused to be brought in
1042	1042	16 from without the State, and tobacco products sold, or
1043	1043	17 otherwise disposed of, and shall preserve and keep all
1044	1044	18 invoices, bills of lading, sales records, and copies of bills
1045	1045	19 of sale, the wholesale price, and beginning January 1, 2026
1046	1046	20 the actual cost or actual cost list price for tobacco products
1047	1047	21 sold or otherwise disposed of, an inventory of tobacco
1048	1048	22 products prepared as of December 31 of each year or as of the
1049	1049	23 last day of the distributor's fiscal year if the distributor
1050	1050	24 he or she files federal income tax returns on the basis of a
1051	1051	25 fiscal year, and other pertinent papers and documents relating
1052	1052
1053	1053
1054	1054
1055	1055
1056	1056
1057	1057	SB1314 - 28 - LRB104 07123 HLH 17160 b
1058	1058
1059	1059
1060	1060	SB1314- 29 -LRB104 07123 HLH 17160 b SB1314 - 29 - LRB104 07123 HLH 17160 b
1061	1061	SB1314 - 29 - LRB104 07123 HLH 17160 b
1062	1062	1 to the manufacture, purchase, sale, or disposition of tobacco
1063	1063	2 products. Every sales invoice issued by a licensed distributor
1064	1064	3 to a retailer in this State shall contain the distributor's
1065	1065	4 Tobacco Products License number unless the distributor has
1066	1066	5 been granted a waiver by the Department in response to a
1067	1067	6 written request in cases where (i) the distributor sells
1068	1068	7 little cigars or other tobacco products only to licensed
1069	1069	8 retailers that are wholly-owned by the distributor or owned by
1070	1070	9 a wholly-owned subsidiary of the distributor; (ii) the
1071	1071	10 licensed retailer obtains little cigars or other tobacco
1072	1072	11 products only from the distributor requesting the waiver; and
1073	1073	12 (iii) the distributor affixes the tax stamps to the original
1074	1074	13 packages of little cigars or has or will pay the tax on the
1075	1075	14 other tobacco products sold to the licensed retailer. The
1076	1076	15 distributor shall file a written request with the Department,
1077	1077	16 and, if the Department determines that the distributor meets
1078	1078	17 the conditions for a waiver, the Department shall grant the
1079	1079	18 waiver.
1080	1080	19 (b) Every retailer, as defined in Section 10-5, whether or
1081	1081	20 not the retailer has obtained a retailer's license pursuant to
1082	1082	21 Section 4g, shall keep complete and accurate records of
1083	1083	22 tobacco products held, purchased, sold, or otherwise disposed
1084	1084	23 of, and shall preserve and keep all invoices, bills of lading,
1085	1085	24 sales records, and copies of bills of sale, returns and other
1086	1086	25 pertinent papers and documents relating to the purchase, sale,
1087	1087	26 or disposition of tobacco products. Such records need not be
1088	1088
1089	1089
1090	1090
1091	1091
1092	1092
1093	1093	SB1314 - 29 - LRB104 07123 HLH 17160 b
1094	1094
1095	1095
1096	1096	SB1314- 30 -LRB104 07123 HLH 17160 b SB1314 - 30 - LRB104 07123 HLH 17160 b
1097	1097	SB1314 - 30 - LRB104 07123 HLH 17160 b
1098	1098	1 maintained on the licensed premises, but must be maintained in
1099	1099	2 the State of Illinois; however, if access is available
1100	1100	3 electronically, the records may be maintained out of state.
1101	1101	4 However, all original invoices or copies thereof covering
1102	1102	5 purchases of tobacco products must be retained on the licensed
1103	1103	6 premises for a period of 90 days after such purchase, unless
1104	1104	7 the Department has granted a waiver in response to a written
1105	1105	8 request in cases where records are kept at a central business
1106	1106	9 location within the State of Illinois or in cases where
1107	1107	10 records that are available electronically are maintained out
1108	1108	11 of state. The Department shall adopt rules regarding the
1109	1109	12 eligibility for a waiver, revocation of a waiver, and
1110	1110	13 requirements and standards for maintenance and accessibility
1111	1111	14 of records located at a central location out-of-State pursuant
1112	1112	15 to a waiver provided under this Section.
1113	1113	16 (b-5) Every remote retail seller, as defined in Section
1114	1114	17 10-5 shall keep complete and accurate records of tobacco
1115	1115	18 products held, purchased, sold, or otherwise disposed of and
1116	1116	19 shall preserve and keep all invoices, bills of lading, sales
1117	1117	20 records, and copies of bills of sale, returns and other
1118	1118	21 pertinent papers and documents relating to the purchase, sale,
1119	1119	22 or disposition of tobacco products. Such records must be on
1120	1120	23 the remote retail seller's premises but need not be maintained
1121	1121	24 in the State of Illinois; however, remote retail sellers shall
1122	1122	25 also provide access electronically. However, all original
1123	1123	26 invoices or copies thereof covering purchases of tobacco
1124	1124
1125	1125
1126	1126
1127	1127
1128	1128
1129	1129	SB1314 - 30 - LRB104 07123 HLH 17160 b
1130	1130
1131	1131
1132	1132	SB1314- 31 -LRB104 07123 HLH 17160 b SB1314 - 31 - LRB104 07123 HLH 17160 b
1133	1133	SB1314 - 31 - LRB104 07123 HLH 17160 b
1134	1134	1 products must be retained on the remote retail seller's
1135	1135	2 premises until the expiration of the period with respect to
1136	1136	3 which the Department is authorized to issue a notice of tax
1137	1137	4 liability.
1138	1138	5 (c) Books, records, papers, and documents that are
1139	1139	6 required by this Act to be kept shall, at all times during the
1140	1140	7 usual business hours of the day, be subject to inspection by
1141	1141	8 the Department or its duly authorized agents and employees.
1142	1142	9 The books, records, papers, and documents for any period with
1143	1143	10 respect to which the Department is authorized to issue a
1144	1144	11 notice of tax liability shall be preserved until the
1145	1145	12 expiration of that period.
1146	1146	13 (Source: P.A. 99-192, eff. 1-1-16; 100-940, eff. 8-17-18.)
1147	1147	14 (35 ILCS 143/10-37)
1148	1148	15 Sec. 10-37. Proof of payment of tax imposed by this Act.
1149	1149	16 Every licensed distributor of tobacco products in this State
1150	1150	17 is required to show proof of the tax having been paid as
1151	1151	18 required by this Act by displaying its Tobacco Products
1152	1152	19 License number on every sales invoice issued to a retailer in
1153	1153	20 this State. Every licensed remote retail seller of tobacco
1154	1154	21 products in this State is required to show proof of the tax
1155	1155	22 having been paid as required by this Act by displaying its
1156	1156	23 Tobacco Products License number on every sales invoice issued
1157	1157	24 to a consumer in this State. No retailer shall possess tobacco
1158	1158	25 products without either a proper invoice indicating that the
1159	1159
1160	1160
1161	1161
1162	1162
1163	1163
1164	1164	SB1314 - 31 - LRB104 07123 HLH 17160 b
1165	1165
1166	1166
1167	1167	SB1314- 32 -LRB104 07123 HLH 17160 b SB1314 - 32 - LRB104 07123 HLH 17160 b
1168	1168	SB1314 - 32 - LRB104 07123 HLH 17160 b
1169	1169	1 tobacco products tax was paid by a distributor for the tobacco
1170	1170	2 products in the retailer's possession or other proof that the
1171	1171	3 tax was paid by the retailer if it has purchased tobacco
1172	1172	4 products on which tax has not been paid as required by this
1173	1173	5 Act. Failure to comply with the provisions of this paragraph
1174	1174	6 may be grounds for revocation of a distributor's, remote
1175	1175	7 retail seller's, or retailer's license in accordance with
1176	1176	8 Section 10-25 of this Act or Section 6 of the Cigarette Tax
1177	1177	9 Act. In addition, the Department may impose a civil penalty
1178	1178	10 not to exceed $1,000 for the first violation and $3,000 for
1179	1179	11 each subsequent violation, which shall be deposited into the
1180	1180	12 Tax Compliance and Administration Fund.
1181	1181	13 (Source: P.A. 100-940, eff. 8-17-18.)
1182	1182	14 (35 ILCS 143/10-38)
1183	1183	15 Sec. 10-38. Presumption for unlicensed distributors,
1184	1184	16 remote retail sellers, or persons. Whenever any person obtains
1185	1185	17 tobacco products from an unlicensed in-state or out-of-state
1186	1186	18 distributor, remote retail seller, or person, a prima facie
1187	1187	19 presumption shall arise that the tax imposed by this Act on
1188	1188	20 such tobacco products has not been paid in violation of this
1189	1189	21 Act. Invoices or other documents kept in the normal course of
1190	1190	22 business in the possession of a person reflecting purchases of
1191	1191	23 tobacco products from an unlicensed in-state or out-of-state
1192	1192	24 distributor, remote retail seller, or person or invoices or
1193	1193	25 other documents kept in the normal course of business obtained
1194	1194
1195	1195
1196	1196
1197	1197
1198	1198
1199	1199	SB1314 - 32 - LRB104 07123 HLH 17160 b
1200	1200
1201	1201
1202	1202	SB1314- 33 -LRB104 07123 HLH 17160 b SB1314 - 33 - LRB104 07123 HLH 17160 b
1203	1203	SB1314 - 33 - LRB104 07123 HLH 17160 b
1204	1204	1 by the Department from in-state or out-of-state distributors,
1205	1205	2 remote retail sellers, or persons, are sufficient to raise the
1206	1206	3 presumption that the tax imposed by this Act has not been paid.
1207	1207	4 If a presumption is raised, the Department may assess tax,
1208	1208	5 penalty, and interest on the tobacco products. In addition,
1209	1209	6 any person who violates this Section is liable to pay to the
1210	1210	7 Department, for deposit in the Tax Compliance and
1211	1211	8 Administration Fund, a penalty of $1,000 for the first
1212	1212	9 violation and $3,000 for any subsequent violation. The
1213	1213	10 Department may adopt rules to administer the penalties under
1214	1214	11 this Section.
1215	1215	12 (Source: P.A. 100-940, eff. 8-17-18.)
1216	1216	13 (35 ILCS 143/10-45)
1217	1217	14 Sec. 10-45. Incorporation by reference. All of the
1218	1218	15 provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
1219	1219	16 5i, 5j, 6, 6a, 6b, 6c, 8, 9, 10, 11, 11a, and 12 of the
1220	1220	17 Retailers' Occupation Tax Act, and all applicable provisions
1221	1221	18 of the Uniform Penalty and Interest Act that are not
1222	1222	19 inconsistent with this Act, apply to distributors and remote
1223	1223	20 retail sellers of tobacco products to the same extent as if
1224	1224	21 those provisions were included in this Act. References in the
1225	1225	22 incorporated Sections of the Retailers' Occupation Tax Act to
1226	1226	23 retailers, to sellers, or to persons engaged in the business
1227	1227	24 of selling tangible personal property mean distributors or
1228	1228	25 remote retail sellers when used in this Act. References in the
1229	1229
1230	1230
1231	1231
1232	1232
1233	1233
1234	1234	SB1314 - 33 - LRB104 07123 HLH 17160 b
1235	1235
1236	1236
1237	1237	SB1314- 34 -LRB104 07123 HLH 17160 b SB1314 - 34 - LRB104 07123 HLH 17160 b
1238	1238	SB1314 - 34 - LRB104 07123 HLH 17160 b
1239	1239	1 incorporated Sections to sales of tangible personal property
1240	1240	2 mean sales of tobacco products when used in this Act.
1241	1241	3 All of the provisions of Sections 7, 8, 8a, 16, 18a, 18b,
1242	1242	4 18c, 22, 23, 24, 26, 27, and 28a of the Cigarette Tax Act which
1243	1243	5 are not inconsistent with this Act shall apply, as far as
1244	1244	6 practicable, to the subject matter of this Act to the same
1245	1245	7 extent as if those provisions were included in this Act.
1246	1246	8 References in the incorporated Sections to sales of cigarettes
1247	1247	9 mean sales of little cigars in packages of 20 or 25 little
1248	1248	10 cigars.
1249	1249	11 (Source: P.A. 98-273, eff. 8-9-13.)
1250	1250	12 (35 ILCS 143/10-50)
1251	1251	13 Sec. 10-50. Violations and penalties. When the amount due
1252	1252	14 is under $300, any distributor or remote retail seller who
1253	1253	15 fails to file a return, willfully fails or refuses to make any
1254	1254	16 payment to the Department of the tax imposed by this Act, or
1255	1255	17 files a fraudulent return, or any officer or agent of a
1256	1256	18 corporation engaged in the business of distributing or
1257	1257	19 engaging in remote retail sales of tobacco products to
1258	1258	20 retailers or and consumers located in this State who signs a
1259	1259	21 fraudulent return filed on behalf of the corporation, or any
1260	1260	22 accountant or other agent who knowingly enters false
1261	1261	23 information on the return of any taxpayer under this Act is
1262	1262	24 guilty of a Class 4 felony.
1263	1263	25 Any person who violates any provision of Section 10-20,
1264	1264
1265	1265
1266	1266
1267	1267
1268	1268
1269	1269	SB1314 - 34 - LRB104 07123 HLH 17160 b
1270	1270
1271	1271
1272	1272	SB1314- 35 -LRB104 07123 HLH 17160 b SB1314 - 35 - LRB104 07123 HLH 17160 b
1273	1273	SB1314 - 35 - LRB104 07123 HLH 17160 b
1274	1274	1 10-21, or 10-22, or 10-24 of this Act, fails to keep books and
1275	1275	2 records as required under this Act, or willfully violates a
1276	1276	3 rule or regulation of the Department for the administration
1277	1277	4 and enforcement of this Act is guilty of a Class 4 felony. A
1278	1278	5 person commits a separate offense on each day that he or she
1279	1279	6 engages in business in violation of Section 10-20, 10-21, or
1280	1280	7 10-22, or 10-24 of this Act. If a person fails to produce the
1281	1281	8 books and records for inspection by the Department upon
1282	1282	9 request, a prima facie presumption shall arise that the person
1283	1283	10 has failed to keep books and records as required under this
1284	1284	11 Act. A person who is unable to rebut this presumption is in
1285	1285	12 violation of this Act and is subject to the penalties provided
1286	1286	13 in this Section.
1287	1287	14 When the amount due is under $300, any person who accepts
1288	1288	15 money that is due to the Department under this Act from a
1289	1289	16 taxpayer for the purpose of acting as the taxpayer's agent to
1290	1290	17 make the payment to the Department, but who fails to remit the
1291	1291	18 payment to the Department when due, is guilty of a Class 4
1292	1292	19 felony.
1293	1293	20 Any person who violates any provision of Sections 10-20,
1294	1294	21 10-21 and 10-22 of this Act, fails to keep books and records as
1295	1295	22 required under this Act, or willfully violates a rule or
1296	1296	23 regulation of the Department for the administration and
1297	1297	24 enforcement of this Act is guilty of a business offense and may
1298	1298	25 be fined up to $5,000. If a person fails to produce books and
1299	1299	26 records for inspection by the Department upon request, a prima
1300	1300
1301	1301
1302	1302
1303	1303
1304	1304
1305	1305	SB1314 - 35 - LRB104 07123 HLH 17160 b
1306	1306
1307	1307
1308	1308	SB1314- 36 -LRB104 07123 HLH 17160 b SB1314 - 36 - LRB104 07123 HLH 17160 b
1309	1309	SB1314 - 36 - LRB104 07123 HLH 17160 b
1310	1310	1 facie presumption shall arise that the person has failed to
1311	1311	2 keep books and records as required under this Act. A person who
1312	1312	3 is unable to rebut this presumption is in violation of this Act
1313	1313	4 and is subject to the penalties provided in this Section. A
1314	1314	5 person commits a separate offense on each day that he or she
1315	1315	6 engages in business in violation of Sections 10-20, 10-21 and
1316	1316	7 10-22 of this Act.
1317	1317	8 When the amount due is $300 or more, any distributor or
1318	1318	9 remote retail seller who files, or causes to be filed, a
1319	1319	10 fraudulent return, or any officer or agent of a corporation
1320	1320	11 engaged in the business of distributing or engaging in remote
1321	1321	12 retail sales of tobacco products to retailers or and consumers
1322	1322	13 located in this State who files or causes to be filed or signs
1323	1323	14 or causes to be signed a fraudulent return filed on behalf of
1324	1324	15 the corporation, or any accountant or other agent who
1325	1325	16 knowingly enters false information on the return of any
1326	1326	17 taxpayer under this Act is guilty of a Class 3 felony.
1327	1327	18 When the amount due is $300 or more, any person engaged in
1328	1328	19 the business of distributing or engaging in remote retail
1329	1329	20 sales of tobacco products to retailers or and consumers
1330	1330	21 located in this State who fails to file a return, willfully
1331	1331	22 fails or refuses to make any payment to the Department of the
1332	1332	23 tax imposed by this Act, or accepts money that is due to the
1333	1333	24 Department under this Act from a taxpayer for the purpose of
1334	1334	25 acting as the taxpayer's agent to make payment to the
1335	1335	26 Department but fails to remit such payment to the Department
1336	1336
1337	1337
1338	1338
1339	1339
1340	1340
1341	1341	SB1314 - 36 - LRB104 07123 HLH 17160 b
1342	1342
1343	1343
1344	1344	SB1314- 37 -LRB104 07123 HLH 17160 b SB1314 - 37 - LRB104 07123 HLH 17160 b
1345	1345	SB1314 - 37 - LRB104 07123 HLH 17160 b
1346	1346	1 when due is guilty of a Class 3 felony.
1347	1347	2 When the amount due is under $300, any retailer who fails
1348	1348	3 to file a return, willfully fails or refuses to make any
1349	1349	4 payment to the Department of the tax imposed by this Act, or
1350	1350	5 files a fraudulent return, or any officer or agent of a
1351	1351	6 corporation engaged in the retail business of selling tobacco
1352	1352	7 products to purchasers of tobacco products for use and
1353	1353	8 consumption located in this State who signs a fraudulent
1354	1354	9 return filed on behalf of the corporation, or any accountant
1355	1355	10 or other agent who knowingly enters false information on the
1356	1356	11 return of any taxpayer under this Act is guilty of a Class A
1357	1357	12 misdemeanor for a first offense and a Class 4 felony for each
1358	1358	13 subsequent offense.
1359	1359	14 When the amount due is $300 or more, any retailer who fails
1360	1360	15 to file a return, willfully fails or refuses to make any
1361	1361	16 payment to the Department of the tax imposed by this Act, or
1362	1362	17 files a fraudulent return, or any officer or agent of a
1363	1363	18 corporation engaged in the retail business of selling tobacco
1364	1364	19 products to purchasers of tobacco products for use and
1365	1365	20 consumption located in this State who signs a fraudulent
1366	1366	21 return filed on behalf of the corporation, or any accountant
1367	1367	22 or other agent who knowingly enters false information on the
1368	1368	23 return of any taxpayer under this Act is guilty of a Class 4
1369	1369	24 felony.
1370	1370	25 Any person whose principal place of business is in this
1371	1371	26 State and who is charged with a violation under this Section
1372	1372
1373	1373
1374	1374
1375	1375
1376	1376
1377	1377	SB1314 - 37 - LRB104 07123 HLH 17160 b
1378	1378
1379	1379
1380	1380	SB1314- 38 -LRB104 07123 HLH 17160 b SB1314 - 38 - LRB104 07123 HLH 17160 b
1381	1381	SB1314 - 38 - LRB104 07123 HLH 17160 b
1382	1382	1 shall be tried in the county where his or her principal place
1383	1383	2 of business is located unless he or she asserts a right to be
1384	1384	3 tried in another venue. If the taxpayer does not have his or
1385	1385	4 her principal place of business in this State, however, the
1386	1386	5 hearing must be held in Sangamon County unless the taxpayer
1387	1387	6 asserts a right to be tried in another venue.
1388	1388	7 Any taxpayer or agent of a taxpayer who with the intent to
1389	1389	8 defraud purports to make a payment due to the Department by
1390	1390	9 issuing or delivering a check or other order upon a real or
1391	1391	10 fictitious depository for the payment of money, knowing that
1392	1392	11 it will not be paid by the depository, is guilty of a deceptive
1393	1393	12 practice in violation of Section 17-1 of the Criminal Code of
1394	1394	13 2012.
1395	1395	14 A prosecution for a violation described in this Section
1396	1396	15 may be commenced within 3 years after the commission of the act
1397	1397	16 constituting the violation.
1398	1398	17 (Source: P.A. 100-201, eff. 8-18-17; 100-940, eff. 8-17-18.)
1399	1399
1400	1400
1401	1401
1402	1402
1403	1403
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