Illinois Administrative Code › Title 86 - REVENUE › Part 440 - CIGARETTE TAX ACT › Section 440.50 - Tax Stamps - When and By Whom Affixed: License or Permit Required

Current through Register Vol. 48, No. 28, July 12, 2024
a) The Department,
			 or any person authorized by the Department, will sell tax stamps only to
			 licensed distributors. It shall be unlawful for any person to engage in the
			 business as a distributor of cigarettes in this State without first having
			 obtained a license or permit from the Department. Application for a
			 distributor's license shall be made to the Department in form as furnished and
			 prescribed by the said Department and shall be accompanied by a joint and
			 several bond in the amount of $2,500. Except when the applicant is the
			 manufacturer or when the applicant is a person licensed as a distributor under
			 the Tobacco Products Tax Act of 1995 [35 ILCS 143 ] applying for a
			 distributor's license under the Act to qualify as a stamping distributor for
			 the purpose of acquiring and possessing untaxed little cigars and affixing tax
			 stamps to unstamped packages of little cigars containing 20 or 25 little
			 cigars, no distributor's license shall be issued to an applicant unless he
			 presents the Department with satisfactory proof in writing that he or she will
			 be able to buy cigarettes directly from at least 3 major cigarette
			 manufacturers. A person licensed as a distributor under the Tobacco Products
			 Tax Act of 1995 issued a distributor's license under the Act to qualify as a
			 stamping distributor for the purpose of acquiring and possessing untaxed little
			 cigars and affixing tax stamps to unstamped packages of little cigars
			 containing 20 or 25 little cigars is prohibited from acquiring, possessing or
			 affixing stamps to unstamped packages of cigarettes until the distributor
			 presents the Department with satisfactory proof in writing that he or she will
			 be able to buy cigarettes directly from at least 3 major cigarette
			 manufacturers. Each licensed place of business shall be covered by a separate
			 license.
b) The annual license fee
			 payable to the Department for each distributor's license shall be $250. The
			 purpose of the annual license fee is to defray the cost, to the Department, of
			 serializing cigarette tax stamps. Each applicant for license shall pay the fee
			 to the Department at the time of submitting his application for license to the
			 Department.
c) All licenses issued
			 by the Department under the Cigarette Tax Act shall be valid for not to exceed
			 one year after issuance unless sooner revoked, canceled or suspended as in the
			 Act provided.
d) The Department
			 may, in its discretion, upon application, issue permits authorizing the payment
			 of the tax imposed by the Act by out-of-State cigarette manufacturers who are
			 not required to be licensed as distributors of cigarettes in this State, but
			 who elect to qualify under the Act as distributors of cigarettes in this State,
			 and who, to the satisfaction of the Department, furnish adequate security to
			 insure payment of the tax, provided that any permit shall extend only to
			 cigarettes that the permittee manufacturer places in original packages that are
			 contained inside a sealed transparent wrapper.
e) All permits issued by the Department under
			 the Cigarette Tax Act shall be valid for not to exceed one year after issuance
			 unless sooner revoked, canceled or suspended as in the Act provided.
f)
The following are ineligible to
			 receive a distributor's license or permit under the Act:
1)
A person who is not of good
			 character and reputation in the community in which he
			 resides;
2)
A
			 person who has been convicted of a felony under any federal or State law, if
			 the Department, after investigation and a hearing, if requested by the
			 applicant, determines that person has not been sufficiently rehabilitated to
			 warrant the public trust;
3)
A corporation, if any officer,
			 manager or director thereof, or any stockholder or stockholders owning in the
			 aggregate more than 5%
of the stock of that corporation, would
			 not be eligible to receive a license under the Act for any reason
. [35
			 ILCS 130/4 and 4 b(a)]