35 ILCS 130/2

Current through Public Act 103-1056

Section 35 ILCS 130/2 - Tax imposed; rate; collection, payment, and distribution; discount

(a) Beginning on July 1, 2019, in place of the aggregate tax rate of 99 mills previously imposed by this Act, a tax is imposed upon any person engaged in business as a retailer of cigarettes at the rate of 149 mills per cigarette sold or otherwise disposed of in the course of such business in this State.

(b) The payment of such taxes shall be evidenced by a stamp affixed to each original package of cigarettes, or an authorized substitute for such stamp imprinted on each original package of such cigarettes underneath the sealed transparent outside wrapper of such original package, as hereinafter provided. However, such taxes are not imposed upon any activity in such business in interstate commerce or otherwise, which activity may not under the Constitution and statutes of the United States be made the subject of taxation by this State.

Out of the 149 mills per cigarette tax imposed by subsection (a), until July 1, 2023, the revenues received from 4 mills shall be paid into the Common School Fund each month, not to exceed $9,000,000 per month. Out of the 149 mills per cigarette tax imposed by subsection (a), until July 1, 2023, all of the revenues received from 7 mills shall be paid into the Common School Fund each month. Out of the 149 mills per cigarette tax imposed by subsection (a), until July 1, 2023, 50 mills per cigarette each month shall be paid into the Healthcare Provider Relief Fund.

Beginning on July 1, 2006 and until July 1, 2023, all of the moneys received by the Department of Revenue pursuant to this Act and the Cigarette Use Tax Act, other than the moneys that are dedicated to the Common School Fund and, beginning on June 14, 2012 (the effective date of Public Act 97-688) , other than the moneys from the additional taxes imposed by Public Act 97-688 that must be paid each month into the Healthcare Provider Relief Fund and other than the moneys from the additional taxes imposed by Public Act 101-31 that must be paid each month under subsection (c), shall be distributed each month as follows: first, there shall be paid into the General Revenue Fund an amount that, when added to the amount paid into the Common School Fund for that month, equals $29,200,000; then, from the moneys remaining, if any amounts required to be paid into the General Revenue Fund in previous months remain unpaid, those amounts shall be paid into the General Revenue Fund; then from the moneys remaining, $5,000,000 per month shall be paid into the School Infrastructure Fund; then, if any amounts required to be paid into the School Infrastructure Fund in previous months remain unpaid, those amounts shall be paid into the School Infrastructure Fund; then the moneys remaining, if any, shall be paid into the Long-Term Care Provider Fund. Any amounts required to be paid into the General Revenue Fund, the School Infrastructure Fund, the Long-Term Care Provider Fund, the Common School Fund, the Capital Projects Fund, or the Healthcare Provider Relief Fund under this subsection that remain unpaid as of July 1, 2023 shall be deemed satisfied on that date, eliminating any deficiency accrued through that date.

(c) Beginning on July 1, 2019 and until July 1, 2023, all of the moneys from the additional taxes imposed by Public Act 101-31, except for moneys received from the tax on electronic cigarettes, received by the Department of Revenue pursuant to this Act, the Cigarette Use Tax Act, and the Tobacco Products Tax Act of 1995 shall be distributed each month into the Capital Projects Fund.

(c-5) Beginning on July 1, 2023, all of the moneys received by the Department of Revenue pursuant to (i) this Act, (ii) the Cigarette Use Tax Act, and (iii) the tax imposed on little cigars under Section 10-10 of the Tobacco Products Tax Act of 1995 shall be paid each month as follows:

(1) 7% into the Common School Fund;

(2) 34% into the Healthcare Provider Relief Fund;

(3) 34% into the Capital Projects Fund; and

(4) 25% into the General Revenue Fund.

(d) Until July 1, 2023, except for moneys received from the additional taxes imposed by Public Act 101-31, moneys collected from the tax imposed on little cigars under Section 10-10 of the Tobacco Products Tax Act of 1995 shall be included with the moneys collected under the Cigarette Tax Act and the Cigarette Use Tax Act when making distributions to the Common School Fund, the Healthcare Provider Relief Fund, the General Revenue Fund, the School Infrastructure Fund, and the Long-Term Care Provider Fund under this Section. Any amounts, including moneys collected from the tax imposed on little cigars under Section 10-10 of the Tobacco Products Tax Act of 1995, that are required to be paid into the General Revenue Fund, the School Infrastructure Fund, the Long-Term Care Provider Fund, the Common School Fund, the Capital Projects Fund, or the Healthcare Provider Relief Fund under subsection (b) that remain unpaid as of July 1, 2023 shall be deemed satisfied on that date, eliminating any deficiency accrued through that date. Beginning on July 1, 2023, moneys collected from the tax imposed on little cigars under Section 10-10 of the Tobacco Products Tax Act of 1995 shall be included with the moneys collected under the Cigarette Tax Act and the Cigarette Use Tax Act when making distributions under subsection (c-5).

(e) If the tax imposed herein terminates or has terminated, distributors who have bought stamps while such tax was in effect and who therefore paid such tax, but who can show, to the Department's satisfaction, that they sold the cigarettes to which they affixed such stamps after such tax had terminated and did not recover the tax or its equivalent from purchasers, shall be allowed by the Department to take credit for such absorbed tax against subsequent tax stamp purchases from the Department by such distributor.

(f) The impact of the tax levied by this Act is imposed upon the retailer and shall be prepaid or pre-collected by the distributor for the purpose of convenience and facility only, and the amount of the tax shall be added to the price of the cigarettes sold by such distributor. Collection of the tax shall be evidenced by a stamp or stamps affixed to each original package of cigarettes, as hereinafter provided. Any distributor who purchases stamps may credit any excess payments verified by the Department against amounts subsequently due for the purchase of additional stamps, until such time as no excess payment remains.

(g) Each distributor shall collect the tax from the retailer at or before the time of the sale, shall affix the stamps as hereinafter required, and shall remit the tax collected from retailers to the Department, as hereinafter provided. Any distributor who fails to properly collect and pay the tax imposed by this Act shall be liable for the tax.

(h) Any distributor having cigarettes in his or her possession on July 1, 2019 to which tax stamps have been affixed, and any distributor having stamps in his or her possession on July 1, 2019 that have not been affixed to packages of cigarettes before July 1, 2019, is required to pay the additional tax that begins on July 1, 2019 imposed by Public Act 101-31 to the extent that the volume of affixed and unaffixed stamps in the distributor's possession on July 1, 2019 exceeds the average monthly volume of cigarette stamps purchased by the distributor in calendar year 2018. This payment, less the discount provided in subsection (l), is due when the distributor first makes a purchase of cigarette stamps on or after July 1, 2019 or on the first due date of a return under this Act occurring on or after July 1, 2019, whichever occurs first. Those distributors may elect to pay the additional tax on packages of cigarettes to which stamps have been affixed and on any stamps in the distributor's possession that have not been affixed to packages of cigarettes in their possession on July 1, 2019 over a period not to exceed 12 months from the due date of the additional tax by notifying the Department in writing. The first payment for distributors making such election is due when the distributor first makes a purchase of cigarette tax stamps on or after July 1, 2019 or on the first due date of a return under this Act occurring on or after July 1, 2019, whichever occurs first. Distributors making such an election are not entitled to take the discount provided in subsection (l) on such payments.

(i) Any retailer having cigarettes in its possession on July 1, 2019 to which tax stamps have been affixed is not required to pay the additional tax that begins on July 1, 2019 imposed by Public Act 101-31 on those stamped cigarettes.

(j) Distributors making sales of cigarettes to secondary distributors shall add the amount of the tax to the price of the cigarettes sold by the distributors. Secondary distributors making sales of cigarettes to retailers shall include the amount of the tax in the price of the cigarettes sold to retailers. The amount of tax shall not be less than the amount of taxes imposed by the State and all local jurisdictions. The amount of local taxes shall be calculated based on the location of the retailer's place of business shown on the retailer's certificate of registration or sub-registration issued to the retailer pursuant to Section 2a of the Retailers' Occupation Tax Act. The original packages of cigarettes sold to the retailer shall bear all the required stamps, or other indicia, for the taxes included in the price of cigarettes.

(k) The amount of the Cigarette Tax imposed by this Act shall be separately stated, apart from the price of the goods, by distributors, manufacturer representatives, secondary distributors, and retailers, in all bills and sales invoices.

(l) The distributor shall be required to collect the tax provided under subsection (a) and, to cover the costs of such collection, shall be allowed a discount during any year commencing July 1st and ending the following June 30th in accordance with the schedule set out hereinbelow, which discount shall be allowed at the time of purchase of the stamps when purchase is required by this Act, or at the time when the tax is remitted to the Department without the purchase of stamps from the Department when that method of paying the tax is required or authorized by this Act.

On and after December 1, 1985, a discount equal to 1.75% of the amount of the tax payable under this Act up to and including the first $3,000,000 paid hereunder by such distributor to the Department during any such year and 1.5% of the amount of any additional tax paid hereunder by such distributor to the Department during any such year shall apply.

Two or more distributors that use a common means of affixing revenue tax stamps or that are owned or controlled by the same interests shall be treated as a single distributor for the purpose of computing the discount.

(m) The taxes herein imposed are in addition to all other occupation or privilege taxes imposed by the State of Illinois, or by any political subdivision thereof, or by any municipal corporation.

35 ILCS 130/2

Amended by P.A. 103-0605,§ 210, eff. 7/1/2024.

Amended by P.A. 103-0009,§ 80-5, eff. 6/7/2023.

Amended by P.A. 101-0604,§ 10-45, eff. 12/13/2019.

Amended by P.A. 101-0031,§ 15-50, eff. 6/28/2019.

Amended by P.A. 100-1171,§ 55, eff. 1/4/2019.

Amended by P.A. 098-0273,§ 5, eff. 8/9/2013.

Amended by P.A. 097-0688,§ 5-30, eff. 6/14/2012.

Amended by P.A. 097-0587,§ 5, eff. 8/26/2011.

Amended by P.A. 096-1027,§ 15, eff. 7/12/2010.

Amended by P.A. 094-0839, § 5-60, eff. 6/6/2006.

Amended by P.A. 094-0091, § 55-70, eff. 7/1/2005.

Amended by P.A. 093-0839, § 10-140, eff. 7/30/2004.

P.A. 90-548, eff. 12-4-97; 90-587, eff. 7-1-98; 92-536, eff. 6-7-02.