Section 660.10 General Definitions

Section 660

TITLE 86: REVENUE

CHAPTER I: DEPARTMENT OF REVENUE

PART 660 TOBACCO PRODUCTS TAX ACT OF 1995

SECTION 660.10 GENERAL DEFINITIONS

Section 660.10  General

Definitions

"Act"

means the Tobacco Products Tax Act of 1995. [35 ILCS 143/10-1]

"Business" means any

trade, occupation, activity, or enterprise engaged in, at any location

whatsoever, for the purpose of selling tobacco products

.

"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

ing 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

f 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

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

shall

not include any finely cut, ground, or powdered tobacco that is intended to be

placed in the nasal cavity

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

shall

not include any finely cut, ground, or powdered tobacco that is intended to be

placed in the nasal cavity.

"Nicotine" means any

form of the chemical nicotine, including any salt or complex, regardless of

whether the chemical is naturally or synthetically derived, and includes

nicotinic alkaloids and nicotine analogs.

"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.

"Prior continuous

compliance taxpayer" means any person who is licensed under

the

Act

and who, having been a licensee for a continuous period of 2 years, is

determined by the Department not to have been either delinquent or deficient in

the payment of tax liability during that period or otherwise in violation of

the

Act.  "Prior continuous compliance taxpayer" also means any taxpayer

who has, as verified by the Department, continuously complied with the

condition of

the

bond or other security under provisions of

the

Act for a period of 2 consecutive years.  In calculating the consecutive period

of time described in this definition for qualification as a prior continuous

compliance taxpayer, a consecutive period of time of qualifying compliance

immediately prior to

August 9, 2024,

the effective date of

P.A

tment, continuously complied with the

condition of

the

bond or other security under provisions of

the

Act for a period of 2 consecutive years.  In calculating the consecutive period

of time described in this definition for qualification as a prior continuous

compliance taxpayer, a consecutive period of time of qualifying compliance

immediately prior to

August 9, 2024,

the effective date of

P.A.

103-1001

, shall be credited to any licensee who became licensed on or before

August 9, 2024

.

A distributor that is a prior

continuous compliance taxpayer and becomes a successor to a distributor as the

result of an acquisition, merger, or consolidation of that distributor shall be

deemed to be a prior continuous compliance taxpayer with respect to the

acquired, merged, or consolidated entity.

"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

e 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 product that is made from or derived from tobacco that

is intended for human consumption or is likely to be consumed, including but

not limited to cigars, including little cigars; cheroots; stogies; periques;

granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco; snuff

(including moist snuff) and snuff flour; cavendish; plug and twist tobacco;

fine-cut and other chewing tobaccos; shorts; refuse scraps, clippings,

cuttings, and sweeping of tobacco; snus; shisha and tobacco for use in

waterpipes; 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 or for inhalation, absorption, or ingesting by any other means; but

does not include cigarettes as defined in 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

arettes 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.

Beginning on July 1, 2025,

"tobacco products" also includes any product that is made from or

derived from tobacco, or that contains nicotine whether natural or synthetic,

that is intended for human consumption or is likely to be consumed, including

but not limited to nicotine pouches, lozenges, and gum; and other kinds and

forms of nicotine prepared in such manner as to be suitable for chewing or

smoking in a pipe or otherwise, or both for chewing and smoking or for

inhalation, absorption, or ingesting by any other means.

"Tobacco

products" does not include any product that has been approved by the

United States Food and Drug Administration for sale as a tobacco or smoking

cessation product, a nicotine replacement therapy product, or for other medical

purposes where that product is marketed and sold solely for such approved use,

including but not limited to spray or inhaler prescribed by a physician,

chewing gum, skin patches, or lozenges.

"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

cco

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.

[35 ILCS 143/10-5]  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, engaged in the business of selling

tobacco products to others for the purpose of resale.

"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]