Illinois Administrative Code › Title 86 - REVENUE › Part 440 - CIGARETTE TAX ACT › Section 440.200 - Credit for Stamps that Are Damaged, Unused, Destroyed or on Packages Returned to the Manufacturer

Current through Register Vol. 48, No. 28, July 12, 2024
a) Where a
			 distributor wishes to receive credit for stamps that have been affixed to
			 original packages of cigarettes, the distributor shall file a claim on a form
			 provided by the Department.
b) Upon
			 receipt by the Department of a properly completed and executed claim, the
			 Department may send its representative or representatives to the distributor's
			 place of business to witness destruction of cigarette revenue stamps affixed to
			 packages of cigarettes. Credit for the stamps will be given when an affidavit
			 made by a representative of the Department is supported by other documents
			 required by the Department, or, when no affidavit is made because the
			 Department did not send a representative to witness destruction of the stamps,
			 the claim is supported by the documents required by the Department.
c) If the Department sends one or more of its
			 representatives to witness the destruction of the stamps, the Department may
			 charge as it deems necessary and reasonable because of that expense to the
			 Department.
d) If a greater number
			 of stamps in a certain series of stamps is destroyed than is included in the
			 claim for credit, the excess number of stamps destroyed in that series of
			 stamps will not be credited. If a lesser number of stamps in a certain series
			 of stamps is destroyed than is included in the claim for credit, the actual
			 number of stamps destroyed in that series will be credited. If stamps are
			 destroyed in a certain series of stamps not listed in the claim for credit,
			 credit for stamps in that series will not be made.
e) Claims for credit of cigarette revenue
			 stamps will be approved only when the claim indicates that the cigarettes
			 involved are unsalable and are to be shipped by the claimant in interstate
			 commerce, by a common carrier or through the United States mails, to a
			 designated consignee outside Illinois, or when the claim indicates that the
			 cigarettes involved are unsalable and are to be destroyed by claimant, when the
			 claim indicates that the packages of cigarettes involved have been improperly
			 stamped (e.g., overstamped, understamped) or when the claimant returns unused
			 or damaged stamps.
f) It is
			 mandatory upon a distributor to destroy (in the presence of a Department
			 representative or representatives if the Department so requires) Illinois
			 cigarette revenue stamps that are affixed to packages of cigarettes in
			 connection with his claim to the Department for credit of stamps, if the
			 distributor has improperly stamped packages of cigarettes by affixing Illinois
			 cigarette revenue stamps in an amount that is insufficient to evidence full
			 payment of the tax.
g) Claims for
			 credit of cigarette revenue stamps affixed to packages of cigarettes will not
			 be approved unless the distributor filing the claim has title to the cigarettes
			 covered by the claim and is carrying Illinois tax-stamped cigarettes in his
			 physical, book and Cigarette Revenue Return inventories.
h) If a claim discloses that, subsequent to
			 the destruction of the stamps, the unstamped packages of cigarettes are to be
			 shipped in interstate commerce to a designated out-of-State consignee, credit
			 for the stamps will not be made unless and until the claimant-licensee submits
			 to the Department, to support his claim, an affidavit from the manufacturer
			 that receives and destroys the stamps. If an affidavit cannot be obtained, a
			 waybill, freight bill or bill of lading, issued by a common carrier, or an
			 insurance receipt or registry receipt issued by the United States Postal
			 Department, or a Post Office Department receipt form 3817, proving that the
			 cigarettes have actually been shipped by the claimant in interstate commerce,
			 by common carrier or through the United States mails, to the out-of-State
			 consignee designated in the claim, will be accepted.
i) Subsequent to the destruction of cigarette
			 revenue stamps affixed to packages of cigarettes, credit for the stamps will
			 not be made if a review of pertinent Cigarette Revenue Return or Returns filed
			 by the claimant-licensee reveals that the stamps scheduled in the claim have
			 not been included in the claimant-licensee's inventories.
j) In connection with any claim for credit of
			 Illinois cigarette revenue stamps, in addition to the types of proof specified,
			 the Department reserves the right to require additional proof in support of any
			 claim as may appear to be necessary.
k) If the Department approves a claim for
			 credit for cigarette tax stamps, the Department (subject to the same
			 limitations as those provided for in Section
			 440.230
			 of this Part) may issue an assignable credit memorandum or refund to the
			 claimant or to the claimant's legal representative. Under no circumstances will
			 a claim for credit be approved in an amount that exceeds the amount paid by the
			 claimant for the stamps that are the subject of the claim.
l) When any tax imposed by the Cigarette Tax
			 Act terminates or has terminated, distributors who have bought stamps while the
			 tax was in effect and who paid the tax, but who can show, to the Department's
			 satisfaction, that they sold the cigarettes to which they affixed the stamps
			 after the tax had terminated and did not recover the tax or its equivalent from
			 purchasers, shall be allowed by the Department to take credit for the absorbed
			 tax against subsequent tax stamp purchases from the Department by the
			 distributor.