Illinois Administrative Code › Title 86 - REVENUE › Part 440 - CIGARETTE TAX ACT › Section 440.10 - Nature and Rate of Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a) Through June
			 30, 2019, the cigarette tax is imposed at the rate of 99 mills per cigarette
			 upon any person who exercises the privilege of engaging in business as a
			 retailer of cigarettes in this State. Beginning July 1, 2019, the tax is
			 imposed upon any person who exercises the privilege of engaging in business as
			 a retailer of cigarettes in this State at the rate of 149 mills per cigarette
			 sold or otherwise disposed of in the course of business in this State, or $2.98
			 per package of 20 cigarettes.
b)
			 The impact of these taxes is declared by the Cigarette Tax Act [35 ILCS 130]
			 (Act) to be imposed upon the retailer, with the taxes being required to 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 the distributor. Collection of the tax shall be evidenced by
			 a stamp or stamps affixed to each original package of cigarettes, as provided
			 in the Act and in this Part.
c) It
			 shall be the duty of each distributor to collect the tax from the retailer at
			 or before the time of the sale, to affix the required stamps and to remit the
			 tax collected from retailers to the Department of Revenue (Department). Any
			 distributor who shall fail to properly collect and pay the tax imposed by the
			 Act shall be liable for the tax.
d)
			 The amount of the cigarette tax imposed by the Act shall be separately stated,
			 apart from the price of the goods, by both distributors and retailers, in all
			 advertisements, bills and sales invoices.
e) The taxes so imposed are in addition to
			 all other occupation or privilege taxes imposed by the State of Illinois,
			 political subdivisions of the State or by any municipal corporation.
f) Out of the 149 mills per cigarette tax
			 imposed by subsection (a), 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), 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), 50
			 mills per cigarette each month shall be paid into the Healthcare Provider
			 Relief Fund.
g) All moneys received
			 by the Department under the Act, the Cigarette Use Tax Act [35 ILCS 135] , and
			 the Tobacco Products Tax Act of 1995 [35 ILCS 143] from the additional tax of
			 50 mills per cigarette imposed by P.A. 101-0031 shall be paid each month into
			 the Capital Projects Fund.
h)
			 Distributions
1) Cigarettes
All
of the moneys received by the Department pursuant
				to the Act and the Cigarette Use Tax Act, other than the moneys that are
				dedicated to the Common School Fund, Healthcare Provider Relief Fund, and
				Capital Projects Fund pursuant to subsections (f) and (g), 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.
2) Little Cigars
Except for the distributions provided for in subsection (g),
				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 Section 2 of the Cigarette Tax Act.
(Section
				2(a) of the Act)