Illinois Administrative Code › Title 86 - REVENUE › Part 660 - TOBACCO PRODUCTS TAX ACT OF 1995 › Section 660.18 - Stamping Distributors; Purchasing Tax Stamps; Affixing Tax Stamps to Packages of Little Cigars

Current through Register Vol. 48, No. 28, July 12, 2024
Only a stamping distributor may purchase and affix stamps to
				packages of little cigars containing 20 or 25 little cigars.
a)
Stamping distributors of packages
			 of little cigars containing 20 or 25 little cigars sold or otherwise disposed
			 of in this State shall remit the tax by purchasing tax stamps from the
			 Department and affixing them to packages of little cigars in the same manner as
			 stamps are purchased and affixed to cigarettes under the Cigarette Tax Act,
			 unless the stamping distributor sells or otherwise disposes of those packages
			 of little cigars to another stamping distributor. Only persons meeting the
			 definition of "stamping distributor" contained in
Section
			 660.10
may affix stamps to packages of little cigars containing 20 or 25
			 little cigars. Stamping distributors may not sell or dispose of little cigars
			 at retail to consumers or users at locations where stamping distributors affix
			 stamps to packages of little cigars containing 20 or 25 little cigars.
[35 ILCS
			 143/10-10(b) ]
b)
Whenever a stamping distributor
			 brings or causes to be brought into this State from without this State, or
			 purchases from without or within this State, any packages of little cigars
			 containing 20 or 25 little cigars upon which there are no tax stamps affixed as
			 required by the Act, for purposes of resale or disposal in this State to a
			 person not a stamping distributor, then the stamping distributor shall pay the
			 tax to the Department and add the amount of the tax to the price of the
			 packages sold by the stamping distributor. Payment of the tax shall be
			 evidenced by a stamp or stamps affixed to each package of little cigars
			 containing 20 or 25 little cigars.
[35 ILCS
			 143/10-10(c) ]
c) Tax stamps for packages of little cigars
			 are
the same stamps used for packages of cigarettes under the Cigarette
			 Tax Act.
[35 ILCS 143/10-5
			 ]
d)
Stamping distributors
			 paying the tax to the Department on packages of little cigars containing 20 or
			 25 little cigars sold to other distributors, wholesalers or retailers shall add
			 the amount of the tax to the price of the packages of little cigars containing
			 20 or 25 little cigars sold by the stamping distributors.
[35 ILCS
			 143/10-10(c) ]
e) The Department may refuse to sell tax
			 stamps to any person who does not comply with the provisions of the
			 Act.
f) The Department, or any
			 person authorized by the Department, will sell tax stamps only to stamping
			 distributors, subject to discounts as explained in subsection (g). The discount
			 shall be allowed at the time of purchase of the stamps. Payment for the stamps
			 must be made by means of electronic funds transfer.
g) A stamping distributor may include the
			 amount of the tax paid for stamps affixed to packages of little cigars under
			 the Act when calculating the discount to which the stamping distributor may be
			 entitled for tax paid for stamps affixed to packages of cigarettes under the
			 Cigarette Tax Act. (See 86 Ill. Adm. Code
			 440.90.)
h) 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.
i) Sales
			 and transfers of Illinois tax stamps by one stamping distributor to another
			 stamping distributor are not permitted unless authorization is given in writing
			 by the Department to make the sale or transfer.
j) Packages of little cigars sold by stamping
			 distributors to other stamping distributors must not be accompanied by loose
			 stamps.
k) When, at the time of
			 terminating his or her business as a stamping distributor in this State, a
			 stamping distributor has on hand unaffixed Illinois tax stamps, he or she may
			 transfer or sell those unaffixed stamps to some other stamping distributor,
			 provided that, prior to the sale or transfer, the stamping distributor shall
			 request and receive from the Department, in writing, authority to sell or
			 transfer the stamps. At the time of requesting authority to sell and transfer
			 stamps to some other stamping distributor, the stamping distributor making the
			 request must submit the name and address of the stamping distributor to whom he
			 or she intends to sell the stamps, together with the exact number of stamps in
			 each series to be sold or transferred.
l) When stamps have become mutilated or
			 otherwise unfit for use, stamping distributors shall file a claim with the
			 Department. (See Section
			 660.40.)