Illinois Administrative Code › Title 86 - REVENUE › Part 660 - TOBACCO PRODUCTS TAX ACT OF 1995 › Section 660.10 - General Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
"Act" means the Tobacco Products Tax Act of 1995 [35 ILCS 143
				/Art. 10].
"Business" means any trade, occupation, activity, or
				enterprise engaged in, at any location whatsoever, for the purpose of selling
				tobacco products
. [35 ILCS
				143/10-5 ]
"Contraband little cigar" means:
packages of little cigars containing 20 or 25 little
				cigars that do not bear a required tax stamp under the Act;
packages of little cigars containing 20 or 25 little
				cigars that bear a fraudulent, imitation, or counterfeit tax
				stamp;
packages of little cigars containing 20 or 25 little
				cigars that are improperly tax stamped, including packages of little cigars
				that bear only a tax stamp of another state or taxing jurisdiction;
				or
packages of little cigars containing other than 20 or
				25 little cigars in the possession of a distributor, retailer or wholesaler,
				unless the distributor, retailer, or wholesaler possesses, or produces within
				the time frame provided in Section 10-27 or 10-28 of the Act, an invoice from a
				stamping distributor, distributor, or wholesaler showing that the tax on the
				packages has been or will be paid.
"Department" means the Illinois Department of
				Revenue.
"Distributor" means any of the
				following:
Any manufacturer or wholesaler in this State engaged in
				the business of selling tobacco products who sells, exchanges, or distributes
				tobacco products to retailers or consumers in this State.
Any manufacturer or wholesaler engaged in the business
				of selling tobacco products from without this State who sells, exchanges,
				distributes, ships, or transports tobacco products to retailers or consumers
				located in this State, so long as that manufacturer or wholesaler has or
				maintains within this State, directly or by subsidiary, an office, sales house,
				or other place of business, or any agent or other representative operating
				within this State under the authority of the person or subsidiary, irrespective
				of whether the place of business or agent or other representative is located
				here permanently or temporarily.
Any retailer who receives tobacco products on which the
				tax has not been or will not be paid by another distributor.
Distributor does not include any person, wherever
				resident or located, who makes, manufactures, or fabricates tobacco products as
				a part of a Correctional Industries program for sale to residents incarcerated
				in penal institutions or resident patients of a State operated mental health
				facility.
[35 ILCS 143/10-5 ] A
				Correctional Industries program is a program that employs committed persons
				confined in institutions and facilities of the Illinois Department of
				Corrections to make, manufacture, or fabricate tobacco products for sale to
				residents incarcerated in penal institutions or resident patients of a State
				operated mental health facility.
"Electronic cigarette" means:
any device that employs a battery or other mechanism to
				heat a solution or substance to produce a vapor or aerosol intended for
				inhalation, except for (A) any device designed solely for use with cannabis
				that contains a statement on the retail packaging that the device is designed
				solely for use with cannabis and not for use with tobacco or (B) any device
				that contains a solution or substance that contains cannabis subject to tax
				under the Compassionate Use of Medical Cannabis Program Act or the Cannabis
				Regulation and Tax Act;
any cartridge or container of a solution or substance
				intended to be used with or in the device or to refill the device, except for
				any cartridge or container of a solution or substance that contains cannabis
				subject to tax under the Compassionate Use of Medical Cannabis Program Act or
				the Cannabis Regulation and Tax Act; or
any solution or substance, whether or not it contains
				nicotine, intended for use in the device, except for any solution or substance
				that contains cannabis subject to tax under the Compassionate Use of Medical
				Cannabis Program Act or the Cannabis Regulation and Tax Act.
"Electronic cigarette" includes, but is not limited to,
				any electronic nicotine delivery system, electronic cigar, electronic
				cigarillo, electronic pipe, electronic hookah, vape pen, or similar product or
				device, and any component or part that can be used to build the product or
				device. "Electronic cigarette" does not include:
cigarettes, as defined in Section 1 of the Cigarette
				Tax Act;
any product approved by the United States Food and Drug
				Administration for sale as a tobacco cessation product, a tobacco dependence
				product, or for other medical purposes that is marketed and sold solely for
				that approved purpose;
any asthma inhaler prescribed by a physician for that
				condition that is marketed and sold solely for that approved purpose;
				or
any therapeutic product approved for use under the
				Compassionate Use of Medical Cannabis Program Act
[410 ILCS 130
				]
.
"Little cigar" means and includes any roll, made wholly
				or in part of tobacco, where such roll has an integrated cellulose acetate
				filter and weighs less than 4 pounds per thousand and the wrapper or cover of
				which is made in whole or in part of tobacco.
"Manufacturer" means any person, wherever resident or
				located, who manufactures and sells tobacco products, except a person who
				makes, manufactures, or fabricates tobacco products as a part of a Correctional
				Industries program for sale to residents incarcerated in penal institutions or
				resident patients of a State operated mental health facility.
"Moist snuff" means any finely cut, ground, or powdered
				tobacco that is not intended to be smoked,
including tobacco products
				referred to as "snus",
but does not include any finely cut, ground, or
				powdered tobacco that is intended to be placed in the nasal
				cavity.
"Person" means any natural individual, firm,
				partnership, association, joint stock company, joint venture, limited liability
				company, or public or private corporation, however formed, or a receiver,
				executor, administrator, trustee, conservator, or other representative
				appointed by order of any court.
"Place of business" means and includes any place where
				tobacco products are sold or where tobacco products are manufactured, stored,
				or kept for the purpose of sale or consumption, including any vessel, vehicle,
				airplane, train, or vending machine.
"Retailer" means any person in this State engaged in
				the business of selling tobacco products to consumers in this State, regardless
				of quantity or number of sales.
"Sale" means any transfer, exchange, or barter in any
				manner or by any means whatsoever for a consideration and includes all sales
				made by persons.
[35 ILCS
				143/10-5 ]
"Secondary distributor" means any person engaged in the
				business of selling cigarettes who purchases stamped original packages of
				cigarettes from a licensed distributor under the Cigarette Tax Act or the
				Cigarette Use Tax Act
[35 ILCS 135 ]
, sells 75% or more of
				those cigarettes to retailers for resale, and maintains an established business
				where a substantial stock of cigarettes is available to retailers for
				resale.
[35 ILCS 130/1
				]
"Stamp" or "stamps" mean the indicia required to be
				affixed on a package of little cigars that evidence payment of the tax on
				packages of little cigars containing 20 or 25 little cigars under Section 10-10
				of the Act. These stamps shall be the same stamps used for cigarettes under the
				Cigarette Tax Act
.
"Stamping distributor" means a distributor licensed
				under the Act and also licensed as a distributor under the Cigarette Tax Act or
				Cigarette Use Tax Act.
"Tobacco products" means any cigars, including little
				cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut, ready
				rubbed, and other smoking tobacco; snuff or snuff flour; cavendish; plug and
				twist tobacco; fine-cut and other chewing tobaccos; shorts; refuse scraps,
				clippings, cuttings, and sweeping of tobacco; and other kinds and forms of
				tobacco, prepared in such manner as to be suitable for chewing or smoking in a
				pipe or otherwise, or both for chewing and smoking; but does not include
				cigarettes as defined by Section 1 of the Cigarette Tax Act or tobacco
				purchased for the manufacture of cigarettes by cigarette distributors and
				manufacturers defined in the Cigarette Tax Act and persons who make,
				manufacture, or fabricate cigarettes as a part of a Correctional Industries
				program for sale to residents incarcerated in penal institutions or resident
				patients of a State operated mental health facility. Beginning on July 1, 2019,
				"tobacco products" also includes electronic cigarettes.
"Wholesale price" means the established list price for
				which a manufacturer sells tobacco products to a distributor, before the
				allowance of any discount, trade allowance, rebate, or other reduction. In the
				absence of such an established list price, the manufacturer's invoice price at
				which the manufacturer sells the tobacco product to unaffiliated distributors,
				before any discounts, trade allowances, rebates, or other reductions, shall be
				presumed to be the wholesale price.
The wholesale price of tobacco
				products is the established list price at the time of purchase, by the
				distributor who remits tax to the Department, of such tobacco products.
				Surcharges added by manufacturers or distributors are considered part of the
				wholesale price subject to tax.
"Wholesaler" means any person, wherever resident or located,
				who is engaged solely in making sales of tobacco products to others for resale
				or sales that are otherwise exempt from tax.
"Wholesaler", when used in
				the Act, does not include a person licensed as a distributor under Section
				10-20 of the Act unless expressly stated in the Act.
[35 ILCS 143/10-5
				]