Illinois Administrative Code › Title 86 - REVENUE › Part 423 - CANNABIS PURCHASER EXCISE TAX › Section 423.105 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
"Act" means the Cannabis Regulation and Tax
			 Act. [410 ILCS 705]
"Adjusted
			 delta-9-tetrahydrocannabinol level" means, for a delta-9-tetrahydrocannabinol
			 dominant product, the sum of the percentage of delta-9-tetrahydrocannabinol
			 plus .877 multiplied by the percentage of tetrahydrocannabinolic acid.
[410 ILCS
			 705/65-5]
"Automated sales
			 suppression device" or "zapper" means a software program that falsifies the
			 electronic records of an electronic cash register or other point-of-sale
			 system, including, but not limited to, transaction data and transaction
			 reports. The term includes the software program, any device that carries the
			 software program, or an Internet link to the software program.
[410 ILCS
			 705/65-38]
"Cannabis"
			 means:
marijuana, hashish, and other substances that
			 are identified as including any parts of the plant Cannabis sativa and
			 including derivatives or subspecies, such as indica, of all strains of
			 cannabis, whether growing or not;
the seeds
			 of the plant;
the resin extracted from any
			 part of the plant;
any compound,
			 manufacture, salt, derivative, mixture, or preparation of the plant, its seeds,
			 or resin, including tetrahydrocannabinol (THC) and all other naturally produced
			 cannabinol derivatives, whether produced directly or indirectly by extraction;
			 and
cannabis flower, concentrate, and
			 cannabis-infused products.
"Cannabis" does not include:
the mature stalks of
			 the plant;
fiber produced from the
			 stalks;
oil or cake made from the seeds of
			 the plant;
any other compound,
			 manufacture, salt, derivative, mixture, or preparation of the mature stalks
			 (except the resin extracted from it), fiber, oil or cake;
the sterilized seed of the plant that is incapable of
			 germination;
industrial hemp as defined
			 and authorized under the Industrial Hemp Act
[505 ILCS 5];
			 or
cannabis that is subject to tax under the
			 Compassionate Use of Medical Cannabis Program Act
[410 ILCS
			 130]
.
[410 ILCS
			 705/1-10]
"Cannabis business establishment" means a cultivation center, craft
			 grower, infuser organization, processing organization, dispensing organization,
			 or transporting organization.
[410 ILCS
			 705/1-10]
"Cannabis
			 concentrate" means a product derived:
from cannabis
			 that is produced by extracting cannabinoids, including tetrahydrocannabinol
			 (THC), from the plant through the use of:
propylene
			 glycol, glycerin, butter, olive oil or other typical cooking
			 fats;
water, ice, or dry ice;
			 or
butane, propane, CO2, ethanol, or
			 isopropanol; and
with the
			 intended use of smoking or making a cannabis-infused product.
[410 ILCS
			 705/1-10]
"Cannabis flower" means marijuana, hashish, and other substances that
			 are identified as including any parts of the plant Cannabis sativa and
			 including:
derivatives or subspecies, such as indica,
			 of all strains of cannabis; and
raw kief,
			 leaves, and buds, but not:
resin that has been
			 extracted from any part of the plant; nor
any compound, manufacture, salt, derivative, mixture, or preparation of
			 the plant, its seeds, or resin.
[410 ILCS
			 705/1-10]
"Cannabis-infused product" means beverage, food, oils, ointments,
			 tincture, topical formulation, or another product containing cannabis that is
			 not intended to be smoked.
"Cannabis-infused product" does not include
			 cannabis concentrates. [410 ILCS
			 705/65-5]
"Cannabis
			 Purchaser Excise Tax" or "Tax" means the tax imposed by Section 65-10 of the
			 Law.
"Craft grower" means a facility
			 operated by an organization or business that is licensed by the Department of
			 Agriculture to cultivate, dry, cure, and package cannabis and perform other
			 necessary activities to make cannabis available for sale at a dispensing
			 organization or use at a processing organization. A craft grower may contain up
			 to 5,000 square feet of canopy space on its premises for plants in the
			 flowering state. The Department of Agriculture may authorize an increase or
			 decrease of flowering stage cultivation space in increments of 3,000 square
			 feet by rule based on market need, craft grower capacity, and the licensee's
			 history of compliance or noncompliance, with a maximum space of 14,000 square
			 feet for cultivating plants in the flowering stage, which must be cultivated in
			 all stages of growth in an enclosed and secure area. A craft grower may share
			 premises with a processing organization or a dispensing organization, or both,
			 provided each licensee stores currency and cannabis or cannabis-infused
			 products in a separate secured vault to which the other licensee does not have
			 access or all licensees sharing a vault share more than 50% of the same
			 ownership.
[410 ILCS
			 705/1-10]
"Cannabis
			 retailer" means a dispensing organization that sells cannabis for use and not
			 for resale.
[410 ILCS
			 705/65-5]
"Department"
			 means the Department of Revenue.
[410 ILCS
			 705/65-5]
"Dispensary"
			 means a facility operated by a dispensing organization at which activities
			 licensed by the Act may occur.
[410 ILCS
			 705/1-10]
"Dispensing
			 organization" means a facility operated by an organization or business that is
			 licensed by the Department of Financial and Professional Regulation to acquire
			 cannabis from a cultivation center, craft grower, processing organization,
			 infuser, or another dispensary for the purpose of selling or dispensing
			 cannabis, cannabis-infused products, cannabis seeds, paraphernalia, or related
			 supplies under the Act to purchasers or to qualified registered medical
			 cannabis patients and caregivers. As used in the Act, dispensing organization
			 includes a registered medical cannabis organization as defined in the
			 Compassionate Use of Medical Cannabis Program Act or its successor Act that has
			 obtained an Early Approval Adult Use Dispensing Organization License.
[410 ILCS
			 705/1-10]
"Electronic cash
			 register" means a device that keeps a register or supporting documents through
			 the use of an electronic device or computer system designed to record
			 transaction data for the purpose of computing, compiling, or processing retail
			 sales transaction data in any manner.
[410 ILCS
			 705/65-38]
"Infuser
			 organization" or "infuser" means a facility operated by an organization or
			 business that is licensed by the Department of Agriculture to directly
			 incorporate cannabis or cannabis concentrate into a product formulation to
			 produce a cannabis-infused product.
[410 ILCS
			 705/65-5]
"Law" means the Cannabis
			 Purchaser Excise Tax Law [410 ILCS 705 /Art. 65].
"Person" means:
a natural individual, firm,
			 partnership, association, joint stock company, joint adventure, public or
			 private corporation, limited liability company; or
a receiver, executor, trustee, guardian, or other representative
			 appointed by order of any court.
[410 ILCS
			 705/65-5]
"Phantom-ware" means a hidden programming option embedded in the
			 operating system of an electronic cash register or hardwired into an electronic
			 cash register that can be used to create a second set of records or that can
			 eliminate or manipulate transaction records in an electronic cash
			 register.
[410 ILCS
			 705/65-38]
"Purchase
			 price":
means the consideration paid for a purchase
			 of cannabis, valued in money, whether received in money or otherwise, including
			 cash, gift cards, credits, and property; and
shall be determined without any deduction on account of the cost of
			 materials used, labor or service costs, or any other expense
			 whatsoever.
However, "purchase
			 price" does not include consideration paid for:
any
			 charge for a payment that is not honored by a financial
			 institution;
any finance or credit charge,
			 penalty or charge for delayed payment, or discount for prompt payment;
			 and
any amounts added to a purchaser's bill
			 because of charges made under the tax imposed by the Cannabis Purchase Excise
			 Tax Law, the Municipal Cannabis Retailers' Occupation Tax Law
[65 ILCS
			 5/8-11 -23]
, the County Cannabis Retailers' Occupation Tax Law
[55 ILCS
			 5/5-1006.8]
, the Retailers' Occupation Tax
			 Act
[35 ILCS 120]
, the Use Tax Act
[35 ILCS
			 105]
, the Service Occupation Tax Act
[35 ILCS 115]
,
			 the Service Use Tax Act
[35 ILCS 110]
, or any locally imposed
			 occupation or use tax.
[410 ILCS
			 705/65-5]
"Purchaser" means a person who acquires cannabis for a valuable
			 consideration.
[410 ILCS
			 705/65-5]
"Smoked" or "smoking"
			 means changing cannabis from a hard, soft, or liquid form by combustion, heat,
			 electricity, or batteries into a form that can be inhaled by the
			 user.
"Taxpayer" means a cannabis retailer who is
			 required to collect the Tax imposed under the Law.
[410 ILCS
			 705/65-5]
"Transaction
			 data" includes:
items purchased by a
			 purchaser;
the price of each
			 item;
a taxability determination for each
			 item;
a segregated tax amount for each
			 taxed item;
the amount of cash or credit
			 tendered;
the net amount returned to the
			 customer in change;
the date and time of
			 the purchase;
the name, address, and
			 identification number of the vendor; and
the receipt or invoice number of the transaction.
[410 ILCS
			 705/65-38]
"Transaction report" means a report that documents, without limitation,
			 the sales, taxes, or fees collected, media totals, and discount voids at an
			 electronic cash register and that is printed on a cash register tape at the end
			 of a day or shift, or a report that documents every action at an electronic
			 cash register and is stored electronically.
[410 ILCS
			 705/65-38]