Summaries of Tobacco-Related Illinois State Laws
Cigarette Use
Tax Act
(35 ILCS 135/2)
Illinois imposes a tax on the privilege of its adult citizens to use cigarettes. The rate of the tax has been amended a number of times, and the latest revision, in 1993, raised the rate on cigarette use to 7 mills per cigarette. This amount does not include any other taxes that the state, political subdivisions or municipalities impose additionally. Those fees are separate.
When the rate of tax is amended in any way, cigarette distributors that have sold cigarettes with tax stamps for the old amount may receive assistance from the Illinois Revenue Department to make up the difference of the tax owed. Where the tax stamps for the old amount were affixed to cigarettes that were sold at the old tax rate, if the distributor did not recover the amount of the new tax from the customer or buyer, then the distributor may take a credit for such amount against a later purchase of tax stamps from the Revenue Department.
The word "tax" means any tax or tax rate imposed by this Act.
When the tax rate is amended in any way, cigarette distributors that possess and intend to sell cigarettes with tax stamps for the old amount affixed to them, the distributor is required to pay the additional tax as of the effective date of the 1993 amendatory Act. Payment of the additional tax is due when the distributor first goes to buy cigarette tax stamps after the effective date of the new Act, or on the due date of a return after the effective date of the Act, whichever occurs first. After the additional tax is paid to the Revenue Department, the distributor may purchase stamps from the Revenue Department.
Cigarette Use Tax Act
(
35 ILCS 135/3)
Cigarette distributors that maintain a place of business in the State of Illinois or that are authorized by the Revenue Department are required to collect the Cigarette Use Taxes. The tax must be added to the sales price of the cigarettes and its collection is to be proven by firmly affixing a stamp (or an authorized substitute) to the original package of cigarettes before sale of such cigarettes to any purchaser. Stamps, imprints and appropriate substitutes need not be duplicated; one is suitable.
Distributors must purchase stamps from the Revenue Department or anyone authorized by the Revenue Department.
As of December 1, 1985, the Revenue Department allows distributors 30 days in which to make final payment for the purchase of the tax stamps. Such payment may be made by a draft (as regulated by the Revenue Department) that shall be payable within 30 days. This option is available to the distributor only if it has filed a bond payable to the Department in an amount equal to $750,000 or 150% of the distributor's average monthly tax liability to the Revenue Department for the preceding year, whichever is less. Bonds filed on or after January 1, 1987, the bond shall be in an amount of $750,000 or 100% of the distributor's average monthly tax liability to the Revenue Department, whichever is less. The bond must be joint and several (where the issuer of the bond and the distributor both bind themselves individually and as a unit for payment) and must be in the form of a surety company bond (where the issuer of the bond agrees to protect the Revenue Department if the distributor defaults in performing its obligations), or it may can be a bank certificate or deposit or bank letter of credit. The bond ensures that the distributor will pay the amount of any 30 day draft which the Revenue Department accepts for payment of tax stamps. If the distributor fails to pay the amount on such draft when it is due it is also liable for a penalty equal to 25% of the amount of the draft.
Taxpayers who complied with the Revenue Department for payment of their taxes prior to December 1, 1985, are not required to establish the above bond requirements with the Department. However, if the taxpayer is at any time delinquent in the filing of any returns or payment of any taxes, it will become subject to the bond requirements stated above for a 2 year trial period. If, during the 2 years, the taxpayer is not delinquent in filing or paying taxes, the Revenue Department may reinstate the taxpayer to that status of prior continuance compliance taxpayer.
Any person aggrieved by any decision of the Revenue Department may, within a stated period, protest and request a hearing. The Department then gives notice of the time and date of the hearing then issues its final decision to the person.
The Department must return all sureties, bonds, and security deposits deposited, assigned, pledged, or otherwise provided to it by a taxpayer within 30 days after (1) the taxpayer becomes a prior continuous compliance taxpayer; or (2) the taxpayer is no longer liable for payment of taxes or filing a return. The Revenue Department must notify the taxpayer of its final outstanding tax liability as soon as possible after the final return is filed.
If the Revenue Department cannot do so within 45 days, it shall so notify the taxpayer stating why it cannot.
When it is time to purchase tax stamps from the Revenue Department the distributor shall be allowed a discount during any year beginning July 1 and ending the following June 30 from the amount due to the Revenue Department to cover costs incurred by the distributor in collecting taxes to affix stamps to the original packages of cigarettes by placing the imprints underneath the sealed transparent wrapper of original cigarettes sold by the distributor. The schedule for the discount states that on and after December 1, 1985, a discount shall be applied in an amount equal to 1.75% of the tax payable up to and including the first $3,000,000 paid by the distributor during any year and 1.5% of the amount of additional tax payable during any year.
Two or more distributors that use the same method of affixing 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.
Cigarette manufacturers who are also distributors and who place their cigarettes in original packages inside a sealed transparent wrapper, must remit the tax they owe to the Revenue Department by notifying the Revenue Department of the amount of the tax by the 5th day of each month. This tax covers cigarettes shipped or delivered somewhere in Illinois to buyers during the preceding calendar month. Distributors do not need to pay tax to the extent if must pay such tax as imposed by the Cigarette tax act with respect to the same cigarettes.
All taxes upon cigarettes are direct taxes on the retail consumer and are presumed to be precollected.
Distributors who are manufacturers of cigarettes must show evidence of their obligation to collect and pay taxes on such cigarettes by imprinting language stating such on each original package underneath the sealed transparent outside wrapper. This is only so provided the distributor is not required to do so in accordance with the Cigarette Tax Act to place the tax imprint on the cigarette package.
The Revenue Department will adopt the design of the tax stamps and will provide for the printing of such stamps in the amounts and denominations necessary to reflect the proper amount of stamps to each original package of cigarettes.
Where distributors are required to affix tax stamps to their cigarette packages, the Revenue Department may require them to affix revenue tax stamps by imprinting tax meter stamps on the original packages. Distributors may not affix revenue tax stamps without the permission of the Revenue Department. Use of revenue tax meters and collection of the taxes is at the total discretion of the Revenue Department. The Revenue Department may revoke or suspend the privilege of imprinting tax meter stamps upon original packages of cigarettes.
The taxes imposed by this Act but not paid must be paid directly to the Revenue Department by any person using cigarettes in the state of Illinois.
Illinois
Clean Indoor Air Act
( 410 ILCS 80/1)
This Act is, shall be referred to, and shall be cited as the "Illinois Clean Indoor Air Act."
Illinois Clean Indoor Air
Act
(410 ILCS
80/2)
The General Assembly of the state of Illinois has found tobacco smoke to be annoying, harmful and dangerous to human beings and a hazard to the public health.
Illinois Clean Indoor Air
Act
( 410 ILCS 80/3)
The definitions for this Act are as follows unless otherwise stated. See text of statute.
Illinois Clean Indoor Air
Act
( 410 ILCS 80/4)
No individual is permitted to smoke in public places except in the portions of those public places that are designated as smoking areas. This is not the rule for places leased for private use where the seating arrangements are at the discretion of the private sponsor, not the owner of the establishment. This is also not the rule in factories, warehouses and other similar places of work that are not typically frequented by the general public.
Illinois Clean Indoor Air
Act
( 410 ILCS 80/5) Appointed or elected state and school
officials may establish a smoking area on the premises which they govern.
Such smoking areas must be set apart by physical barriers, ventilation
systems, and other physical elements of the premises to minimize the
intrusion of smoke into areas where smoking is not permitted. Where
smoking is allowed in a single room, a smoking area may be designated by
selecting a portion or area of the room for smoking purposes.
Illinois Clean Indoor Air
Act
( 410 ILCS 80/6)
Appointed or elected state and school officials who allow smoking areas on the premises which they govern, must also make reasonable efforts to prevent smoking in the public place outside the set aside smoking areas by posting signs, notifying the proper authorities, or whatever else is necessary for enforcement.
Illinois Clean Indoor Air
Act
( 410 ILCS 80/7)
Anyone who smokes in public places that are not designated smoking areas are guilty of a petty offense.
Illinois Clean Indoor Air
Act
(410 ILCS 80/8)
Anyone, including organizations and corporations, who is affected by violations of the rules regarding smoking areas may bring an action against the violator(s) to stop their illegal activity in a circuit court.
Illinois Clean Indoor Air
Act
( 410 ILCS 80/9)
That an individual smokes or does not smoke is not a reasonable basis for discrimination against that person as long as the smoking and non-smoking is in accordance with the rules set forth above.
Powers of
Home Rule Units
( 410 ILCS 80/11)
Home rule units and non-home rule units do not have the authority to regulate smoking in public places.
Illinois Constitution Article 4,
Section 13
The General Assembly of Illinois State Legislature may not
pass a special or local law where there previously exists a general law or
such a general law may be made applicable.
Illinois Constitution Article 7,
Section 6
Home rule units are defined by whether a county has a chief
executive officer that was elected by the electors of the county or
whether a municipality has a population of more than 25,000.
Home rule
units can regulate for the protection of the public health, safety, morals
and welfare, license, tax, and to incur debt for their
constituencies.
A home rule unit can, by referendum, elect not to be a
home rule unit.
Municipal ordinances prevail over home rule county
ordinances when there is a conflict.
Home rule units cannot incur debt
that the county or municipality expects to pay from ad valorem property
taxes (taxes determined by property value). Also, home rule units cannot
define and provide for the punishment of felonies.
Home rule units
must be accordance with the General Assembly when punishing by
imprisonment for more than six months or licensing for revenue or impose
taxes base upon the measurement of income or earnings or upon occupations.
Home rule units may adopt, alter, or repeal a law by submitting a proposal
for approval by referendum.
Home rule municipalities can provide for
its own officers, may determine their manner of selection and their terms
of office.
The General Assembly may deny or limit the power to tax and
any power of a home rule unit not governed by the state.
The General
Assembly can reserve the exclusive right to exercise any power or function
of a home rule unit other than a taxing power.
Home rule units may
exercise and perform concurrently with the state as long as the General
Assembly does not limit the concurrent exercise or specifically declare
the State's exercise to be exclusive.
The General Assembly may limit
the amount of debt that home rule counties and municipalities may incur
(other than ad valorem property taxes).
The General Assembly may limit
the amount of debt incurred by home rule municipalities, and require
approval of the debt by referendum. The General Assembly's limitations are
only applicable where (1) the population is 500,000 or more, an aggregate
of 3% of assessed value of taxable property; (2) the population is 25,000
and less than 500,000, 1% of assessed value of taxable property; and (3)
the population is 25,000 or less, an aggregate of 1/2% of assessed value
to taxable property.
The General Assembly cannot deny or limit the
power of home rule units to (1) make local improvements by special
assessment and to exercise this power jointly with other counties and
municipalities, and other units having that power, or (2) levy or impose
additional taxes upon areas within their boundaries for the payment of
debt incurred.
Powers and functions of home rule units shall be
written and applied liberally (generally, in the favor of the county or
municipality).
Powers of Home Rule Units
( 55 ILCS 5/5-1009)
No home rule county can impose a retailer's occupation tax, service occupation tax, use tax, sales tax or other tax on the use, sale or purchase of tangible personal property based on the gross receipts from such sales or the selling or purchase price of the tangible personal property. Home rule taxes on tangibles such as alcoholic beverages, the number of units of cigarettes or tobacco products, the use of a hotel or motel room or similar facility, the sale or transfer of real property, lease receipts, food prepared for immediate consumption, other taxes not based on the selling or purchase price or gross receipts from the use, and the sale or purchase of tangible personal property are not preempted by this regulation.
Powers of Home Rule Units
( 65 ILCS 5/8-11-6a)
No home rule municipality can impose, a retailer's occupation tax, service occupation tax, use tax, sales tax or other tax on the use, sale or purchase of tangible personal property based on the gross receipts from such sales or the selling or purchase price of said tangible personal property. Home rule taxes on tangibles such as alcoholic beverages, the number of units of cigarettes or tobacco products, the use of a hotel or motel room or similar facility, the sale or transfer of real property, lease receipts, food prepared for immediate consumption, other taxes not based on the selling or purchase price or gross receipts from the use, and the sale or purchase of tangible personal property are not preempted by this regulation. This section is a limitation on the power of home rule units to tax.
Sales of
Tobacco to Minors Act
( 720 ILCS 675/1)
No one under the age of 18 may legally buy any cigar, cigarette, smokeless tobacco or tobacco in any form. Additionally, no one may legally sell, buy for, distribute samples of or furnish such items to anyone under the age of 18. Smokeless tobacco means any tobacco products that are suitable for dipping or chewing.
Sales of Tobacco to Minors
Act
( 720 ILCS 680/3)
No one may legally sell smokeless tobacco products to anyone under the age of 18. Anyone in violation of this law is guilty of a business offense and must pay not more than $50 for each violation.
Sales of Tobacco to Minors
Act
(720 ILCS 680/4)
No one may legally distribute or cause to be distributed to anyone under the age of 18 any smokeless tobacco products. Anyone in violation of this law is guilty of a business offense punishable for a first offense by a fine of $200, a second offense in a 12-month period by a fine of $400, and for a third offense and any offense thereafter in a 12-month period by a fine of $600. One half of the fine collected goes to the local government that successfully prosecuted the offender. The other half goes to the State.
Sales of Tobacco to Minors
Act
( 410 ILCS 75/2)
Outdoor smokeless tobacco billboard advertisements shall bear one of four statements (see text of statute for wordings of the advertisements). The statements must be rotated every 4 months for each brand of tobacco product. The State and local governments cannot require any other warnings, format, or type style on the outdoor billboard advertisements. If any outdoor billboard advertisement does not conform to these requirements, the billboard will be deemed a nuisance affecting public health.
See OIG State Oversight of Tobacco Sales to Minors in Appendix for further reference.
Liquor Control
Act of 1934
( 235 ILCS 5/1-3)
The following are the definitions used throughout the context of this Act.
Liquor Control Act of
1934
( 235 ILCS 5/1-3.01)
"Alcohol" means rectified or diluted fermented liquid, not including denatured alcohol or wood alcohol.
Liquor Control Act of 1934
( 235 ILCS 5/1-3.02)
"Spirits" means any beverage containing alcohol obtained by distillation and mixed with water or substance in solution.
Liquor Control Act of 1934
(235 ILCS 5/1-3.03)
"Wine" means any alcoholic beverage obtained by adding sugar to fermented natural fruits or vegetables.
Liquor Control Act of 1934
( 235 ILCS 5/1-3.32)
"Auction liquor license" means a person with the written permission from the State Commission to auction wine or spirits for private use.
Liquor Control Act of 1934
(235 ILCS 5/1-3.33)
"Brew Pub" means a person who manufactures beer, stores the beer at the designated premises, and is allowed to sell at retail.
Liquor Control Act of 1934
(235 ILCS 5/1-3.34)
"Caterer retailer" means a person who serves alcoholic liquors as an incidental part of food services.
Liquor Control Act of 1934
( 235 ILCS 5/1-3.35)
"Special use permit license" means a license to allow the transfer of alcoholic beverages for special events.
Liquor Control Act of 1934
( 235 ILCS 5/3-12)
The state commission of Illinois has the... responsibility... of writing a written report (before January 15, 1994) regarding the Liquor Control Act to the Governor and General Assembly. The report is to evaluate the Act's impact on and implications to Illinois in regards to Public Law 102-321, the federal Alcohol, Drug Abuse and Mental Health Administration Reorganization Act of 1992 (SAMHSA). See OIG State Oversight of Tobacco Sales to Minors in Appendix. The Commission was to conduct random, unannounced inspections of a sample of Illinois retail tobacco distributors to determine the number of retail tobacco distributors, the number of citations and convictions for sale to minors, activity to discourage the sale of cigarettes to minors, and the level of accessibility to tobacco products by minors.
Smokeless
Tobacco Limitation Act
(720 ILCS 680/1)
This is known as the "Smokeless Tobacco Limitation Act."
Smokeless Tobacco Limitation
Act
( 720 ILCS 685/2)
The purpose of the Tobacco Accessories and Smoking Herbs Control Act is to state that the sale and possession of marijuana, hashish, cocaine, opium and their substances is illegal and is harmful to human health. It is believed to lead minors into the use of tobacco and other illegal drugs and prohibiting the use of such drugs will help curb the number of underage smokers and drug users.
Smokeless Tobacco Limitation
Act
( 720 ILCS 685/3)
This section defines the following terms as 1. Tobacco accessories: cigarette papers, pipes, holders of smoking materials of all types, cigarette rolling machines, and other items used primarily for the smoking or ingestion of tobacco products. 2. Smoking herbs: all substances of plant origin and their derivatives that are processed and sold primarily for smoking. These include broom, calea, California poppy, damiana, hops, ginseng, lobelia, jimson weed, members of the Datura genus, passion flower and wild lettuce.
Smokeless Tobacco Limitation
Act
( 720 ILCS 685/4)
(a) Tobacco accessories or
smoking herbs shall not be sold, bartered, exchanged, delivered or given
to anyone under the age of 18.
(b) Cigarette papers shall not be, nor
cause to be sold, bartered, exchanged, delivered or given to anyone unless
from premises or establishments were other tobacco products are sold.
Here, tobacco products are cigarettes, cigars, smokeless tobacco, or
tobacco in any form.
(c) Cigarette papers shall not be, nor cause to
be sold, bartered, exchanged, delivered or given to anyone from a vending
or other coin-operated machine. Here, cigarette papers do not include
paper that is a part of a cigarette pack where a tax stamp is affixed
under the Cigarette Tax Act or the Cigarette Use Tax Act.
(d) False or
forged use of identification cards shall not be used to obtain smoking
accessories and smoking herbs.
(e) Establishments where tobacco
accessories and smoking herbs are sold shall conspicuously post a white
with red, 1/2" high letters that state the following: SALE OF TOBACCO
ACCESSORIES AND SMOKING HERBS TO PERSONS UNDER EIGHTEEN YEARS OF AGE OR
THE MISREPRESENTATION OF AGE TO PROCURE SUCH A SALE IS PROHIBITED BY LAW.
Tobacco
Products Tax Act
( 35 ILCS 142/1)
This Act may be cited as the Tobacco Products Tax Act.
Tobacco Products Tax Act
( 35 ILCS 142/5)
This section defines the following terms as: 1. Person: any natural individual, firm, partnership, association, joint stock company, joint venture, limited liability company, public or private corporation; a receiver, executor, administrator, trustee, conservator or other representative appointed by order of any court. 2. Department: the Department of Revenue. 3. Sale: any transfer, exchange or barter made in exchange for something else of equally appropriate value. This sale may be made by any person, but not between licensed distributors of tobacco products on which tax has been paid. 4. Distributor: anyone in Illinois who sells tobacco products that were manufactured outside of Illinois; or anyone who makes tobacco products in Illinois for sale in Illinois. This does not include people who make cigarettes in Correctional Industries for sale to prisoners or patients of a mental health facility. 5. Place of business: any place where tobacco products are sold, manufactured, stored or kept for sale. This may include any vessel, vehicle, airplane, train or vending machine. 6. Business: any trade, occupation, activity or enterprise engaged in for the purpose of selling tobacco products in Illinois. 7. Tobacco products: cigars, cheroots, stogies, and periques. Also, granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco. Snuff, snuff flour, cavendish, plug and twist tobacco, fine-cut and other chewing tobacco, shorts, refuse scraps, clipping, cuttings and sweeping of tobacco. Other kinds and forms of tobacco suitable for chewing or smoking in a pipe. This does not include cigarettes or tobacco bought for the manufacture of cigarettes by distributors and manufacturers. 8. Cigarette: see that defined in the Cigarette Tax Act. 9. Wholesale price: the price a distributor paid for the tobacco products. Where manufacturers are also distributors, the price includes raw materials and the cost of production, or the manufacturer's list price.
Tobacco Products Tax Act
( 35 ILCS 142/10)
As of October 1, 1993, tobacco distributors must pay a tax equal to 20%of the wholesale price of tobacco products sold or disposed of in Illinois. This tax is in addition to local, municipal, and Illinois occupation or privilege taxes. This tax is not applicable to any such business to the extent that it is an interstate operation. The taxes shall be paid to the Long-Term Care Provider Fund of the State Treasury.
Tobacco Products Tax Act
(35 ILCS 142/15)
No one may distribute tobacco
products in Illinois without a license from the Department of Revenue
(unless already bonded under the Cigarette Tax Act of the Cigarette Use
Tax Act). Applications for such licenses shall include:
(a)
applicant's name
(b) address from which tobacco products will be
distributed
(c) other information the Department of Revenue requests.
Applicants must file a joint and several bond with their applications for license. The bond (amount to be set by the Department, but cannot exceed the lower of 3 times the applicant's average tax liability or $50,000) must be backed by an Illinois company or bank that will guarantee the debt and is to be good for the entire period of the license. Licenses are free and applicants must obtain one for every individual location from which they intend to distribute tobacco products in Illinois. Licenses cannot be transferred or given to someone else and must be obviously displayed in the place of business that is licensed.
Tobacco Products Tax Act
(35 ILCS 142/20)
If a distributor violates this Act, the Department of Revenue may revoke, cancel or suspend a distributor's license after providing notice and conducting a hearing which list and explain the distributor's violation. Distributor's who sell tobacco products without a licensed may have an injunction entered against them by the circuit court upon request of the Department of Revenue. The injunction is valid until the distributor qualifies for and obtains a license.
Tobacco Products Tax Act
(35 ILCS 142/30)
Every distributor must keep in Illinois all records of tobacco products held, purchased, sold, and brought into Illinois from another state.
Tobacco Products Tax Act
(35 ILCS 142/35)
If distributors purchase tobacco products outside Illinois for shipment into Illinois, they must obtain invoices in duplicate regarding such shipment. If the Department of Revenue requests it, distributors must provide it with a copy at the time of filing the return.
Tobacco Products Tax Act
( 35 ILCS 142/40)
All provisions of this Act apply to distributors of tobacco products as if those provisions were included in this section of the Act. References in those sections to retailers, sellers, or people engaged in the sale of personal property are distributors in this Act. References in those section to sales of personal property are to the sales of tobacco products in this Act.
Tobacco Products Tax Act
( 35 ILCS 142/45)
When the taxes due under this Act is less than $300, distributors must file a return and pay the Department of Revenue. If a return is fraudulent, or if any of the previously mentioned requirement are neglected, the distributor is guilty of a Class 4 felony. Where taxes are due to the Department, anyone who takes money from the distributor and does not remit it to the Department is also guilty of a Class 4 felony. When the taxes due under this Act is $300 or more, distributors who do not file a return or who file a fraudulent return, or anyone who takes money from the distributor and does not remit it to the Department is guilty of Class 3 felony. Adjudication of any claims under this section take place in the county where the business is located. Prosecution under this section must begin within 3 years of the commission of the act.
Cigarette sales from vending
machines
The sale of
cigarettes in vending machines is currently prohibited only in the city of
Chicago, not by the state. The prohibition is supported by the analysis
and decision of the court in Illinois Cigarette Service Co. v. City of
Chicago, 89 F.2d 610
Cigarette Tax
Act
( 35 ILCS 130/1)
This section consists of definitions of the terms used in this Act. The following words are defined: cigarette, person, prior continuous compliance taxpayer, department, sale, original package, distributor, place of business, business, and retailer.
Cigarette Tax Act
( 35
ILCS 130/2)
There is a tax on retailers who are in the business of selling cigarettes in Illinois.