Section 660.15 Distributor Licenses

Section 660

TITLE 86: REVENUE

CHAPTER I: DEPARTMENT OF REVENUE

PART 660 TOBACCO PRODUCTS TAX ACT OF 1995

SECTION 660.15 DISTRIBUTOR LICENSES

Section 660.15  Distributor Licenses

a)

It

shall be unlawful for any person to engage in business as a distributor of

tobacco products

within the meaning of

the

Act without first

having obtained a license to do so from the Department.

Application for

a

distributor's

license shall be made to the Department in a form prescribed

and furnished by the Department

and shall be accompanied by a bond, if

applicable as provided in subsection (d).  [35 ILCS 143/10-20]  Bonds may be

furnished electronically by sureties using one of the methods contained in 86

Ill. Adm. Code 760.230(b)

.  Each licensed place of business shall be

covered by a separate license. Subject to the limitations regarding little

cigars imposed on retailers contained in this subsection (a) and Section

660.28, a retailer who receives or purchases tobacco products on which the tax

has not been paid or will not be paid by another distributor is required to register

with the Department and obtain a license, file returns, and pay the Tobacco

Products Tax.  Whenever any sales invoice issued by a supplier to a retailer

for tobacco products sold to the retailer does not comply with the requirements

of Section 660.25(d), (e), and (g), a prima facie presumption shall arise that

the tax imposed by Section 10-10 of the Act and Section 660.5 has not been paid

on the tobacco products listed on the sales invoice.

1)         Subject

to the limitations regarding little cigars imposed on retailers contained in

this subsection (a) and Section 660.28, a retailer who receives or purchases

tobacco products from an

out-of-State

distributor that is not registered with the Department must obtain a license

on 10-10 of the Act and Section 660.5 has not been paid

on the tobacco products listed on the sales invoice.

1)         Subject

to the limitations regarding little cigars imposed on retailers contained in

this subsection (a) and Section 660.28, a retailer who receives or purchases

tobacco products from an

out-of-State

distributor that is not registered with the Department must obtain a license.

2)         Subject

to the limitations regarding little cigars imposed on retailers contained in

this subsection (a) and Section 660.28, a retailer who receives or purchases

tobacco products from a supplier, whether within or without the State, that is

not registered with the Department must obtain a license.

b)

The

Department may, in its discretion,

and

upon application

issue licenses authorizing

the payment of the tax

imposed by

the

Act

on tobacco products, excluding little cigars,

by

any distributor or manufacturer not otherwise subject to the tax imposed under

the

Act who, to the satisfaction of the Department furnishes adequate security to

ensure payment of the tax.

[35 ILCS 143/10-20]

c)         Wholesalers that are not registered and licensed as

distributors with the Department but claim to only sell tobacco products,

excluding little cigars, in such a way that their sales are not taxable under the

Act (e.g., resale or to exempt purchasers) are advised to apply to the

Department for a resale number so that those wholesalers are able to provide

distributors with Certificates of Resale when purchasing the tobacco products,

excluding little cigars, that will be resold.  Those wholesalers need not file

returns with the Department. See Section 660.30, Exempt Sales.

d)

Bonding

xable under the

Act (e.g., resale or to exempt purchasers) are advised to apply to the

Department for a resale number so that those wholesalers are able to provide

distributors with Certificates of Resale when purchasing the tobacco products,

excluding little cigars, that will be resold.  Those wholesalers need not file

returns with the Department. See Section 660.30, Exempt Sales.

d)

Bonding.

1)

Each distributor shall file with the

Department a bond in an amount not to exceed 3 times the amount of the

distributor's average monthly tax liability or $50,000, whichever is lower, on

a form to be approved by the Department, except for:

A)

a distributor who is applying for a

distributor's license under

the

Act for the first time; or

B)

a distributor who, in the preceding year, had

less than $50,000 of tax liability.

2)

Any applicant applying for a distributor's

license after the applicant's distributor's license has been revoked by the

Department shall also file a bond with the Department in an amount equal to 3

times the amount of the applicant's average monthly tax liability under

the

Act, as that average monthly tax liability was calculated immediately prior to

the revocation of the applicant's distributor's license.

3)

The Department shall discharge any surety and

shall release and return any bond provided to it by a taxpayer under this

subsection

within 90 days after:

A)

the taxpayer becomes a prior continuous

compliance taxpayer,

as defined in 660.10

; or

B)

the taxpayer has ceased to collect receipts on

which the taxpayer is required to remit the tax under

the

Act to the

Department, has filed a final tax return, and has paid to the Department an

amount sufficient to discharge

any

remaining tax liability as determined

by the Department under

the

Act.

e)

Licenses issued by the Department under

the

Act shall be valid for a period not to exceed one

year after issuance unless sooner revoked, canceled, or suspended as provided

in

the

Act

he tax under

the

Act to the

Department, has filed a final tax return, and has paid to the Department an

amount sufficient to discharge

any

remaining tax liability as determined

by the Department under

the

Act.

e)

Licenses issued by the Department under

the

Act shall be valid for a period not to exceed one

year after issuance unless sooner revoked, canceled, or suspended as provided

in

the

Act.

f)

No

license shall be issued to any person who is in default to the State of

Illinois for moneys due under

the

Act or any other tax Act administered

by the Department.

[35 ILCS 143/10-20]

g)

No person shall be issued a

license or granted a renewal of a license to act as a distributor unless the

person has certified in writing, under penalty of perjury, that the person will

comply fully with

the Tobacco Products Manufacturers' Escrow Enforcement

Act of 2003.  [30 ILCS 167/35(b)]