Section 660.30 Exempt Sales

Section 660

TITLE 86: REVENUE

CHAPTER I: DEPARTMENT OF REVENUE

PART 660 TOBACCO PRODUCTS TAX ACT OF 1995

SECTION 660.30 EXEMPT SALES

Section 660.30  Exempt Sales

a)         Sales of tobacco products, excluding little cigars, by

distributors or wholesalers who will not sell the product to a retailer or

consumer are exempt from the tax imposed by the Act.  For example, sales by a

distributor to another distributor as sales for resale are exempt from the tax

imposed by the Act.  Sales of tobacco products to retailers or consumers are

not exempt sales unless the retailer is a registered distributor

.  See

subsection (g).

b)

The tax is not imposed upon any activity in

the

business as a distributor in

interstate commerce or otherwise, to the extent

to which that activity may not, under the Constitution and Statutes of the

United States, be made the subject of taxation by this State.

[35 ILCS 143/10-10(a)]

Sales of tobacco products,

excluding little cigars, delivered by a distributor to persons located outside

of Illinois are exempt from the tax imposed by the Act.

c)         Sales of tobacco products, excluding little cigars, to

retailers who will deliver the tobacco products outside of Illinois are exempt.

d)         The tax imposed by the Act shall not apply to sales or other

disposition of tobacco products to the United States Government or any entity of

the United States government.  For instance, sales of tobacco products to U.S.

Veterans' Hospitals and U.S. Military personnel through officially recognized

agencies physically located at military bases are exempt from the tax imposed

by the Act.

e)         The tax imposed by the Act shall not apply to sales of tobacco

products to penal institutions for use in a Correctional Industries program

that makes, manufactures, or fabricates tobacco products for sale to residents

incarcerated in penal institutions or resident patients of a State operated

mental health facility

cated at military bases are exempt from the tax imposed

by the Act.

e)         The tax imposed by the Act shall not apply to sales of tobacco

products to penal institutions for use in a Correctional Industries program

that makes, manufactures, or fabricates tobacco products for sale to residents

incarcerated in penal institutions or resident patients of a State operated

mental health facility.  However, sales of tobacco products to a penal

institution that will sell tobacco products through its commissary are taxable.

f)

The tax imposed by the Act shall not

apply to sales of tobacco products to Native Americans.  Native American

transactions include sales to a Native American tribe, band, nation, pueblo,

village, or community that the Secretary of the Interior acknowledges to exist

as a Native American tribe pursuant to the Federally Recognized Indian Tribe

List Act of 1994 [25 U.S.C. 479a].

g)         Under certain circumstances, a blanket Certificate of Resale

may be provided by a purchaser to a distributor.  These circumstances include

the following:

1)         Retailers who purchase tobacco products, excluding little

cigars, for delivery outside of Illinois are exempt under subsection (c).

However, when the retailer may deliver tobacco products, excluding little

cigars, outside of Illinois but may deliver some within Illinois and when it is

impracticable, at the time of purchasing the tobacco products, for the retailer

to determine in which way they will dispose of the tobacco products, the

retailer may certify to the distributor that

the

retailer

is buying all of the tobacco products, excluding little cigars,

for resale and provide a blanket Certificate of Resale to the distributor.  A

retailer may provide such a certificate only if the retailer is registered as a

distributor under the Act and agrees to assume responsibility for reporting and

remitting tax on their taxable Illinois sales (e.g., sales to consumers or

retailers)

etailer

is buying all of the tobacco products, excluding little cigars,

for resale and provide a blanket Certificate of Resale to the distributor.  A

retailer may provide such a certificate only if the retailer is registered as a

distributor under the Act and agrees to assume responsibility for reporting and

remitting tax on their taxable Illinois sales (e.g., sales to consumers or

retailers).

2)         Often times, a distributor registered under the Act will also

sell tobacco products to consumers.  This distributor may similarly find it

impracticable, at the time of purchasing the tobacco products, to determine in

which way they will dispose of the tobacco products.  Consequently, except for

little cigars, the distributor may provide the selling distributor with a

blanket Certificate of Resale and assume responsibility for reporting and

remitting tax on their taxable sales to consumers.

h)

Purchases of tobacco products other than little cigars by

wholesalers

, including distributors making sales for resale,

who will

not sell the product at retail are exempt from the tax imposed by

the Act

.

Purchases of tobacco products other than little cigars by wholesalers,

distributors

,

and retailers for delivery of the product outside Illinois are exempt from the

tax imposed by

the Act

. The wholesaler,

distributor

, or retailer

making the exempt sale of tobacco products other than little cigars shall

document this exemption by obtaining a certification from the purchaser

containing the seller's name and address, the purchaser's name and address, the

date of purchase, the purchaser's signature, the purchaser's tobacco products

tax license number, if applicable, and a statement that the purchaser is

purchasing for resale other than for sale to consumers or is purchasing for

delivery outside of Illinois

s exemption by obtaining a certification from the purchaser

containing the seller's name and address, the purchaser's name and address, the

date of purchase, the purchaser's signature, the purchaser's tobacco products

tax license number, if applicable, and a statement that the purchaser is

purchasing for resale other than for sale to consumers or is purchasing for

delivery outside of Illinois.

[35 JLCS I 0-13] Such certificate of

exemption shall also be obtained from a purchaser to document that the

purchaser is purchasing the product for one of the purposes or activities

identified in subsections (a) through (f) or is assuming responsibility for

reporting and remitting tax as provided for under subsection (g).

i)

A

retailer must be a stamping distributor to make tax exempt sales of packages of

little cigars containing 20 or 25 little cigars for use outside of this State.

A retailer who is a stamping distributor making sales of stamped packages of

little cigars for use outside of this State may file a claim for credit for

such sales with the Department on forms and in the manner provided by the

Department.

[35 ILCS 143/10-27(a)]

A retailer must be a stamping

distributor to make tax exempt sales of packages of little cigars containing

other than 20 or 25 little cigars for use outside of this State.  A retailer

who is a stamping distributor making sales of packages of little cigars

containing other than 20 or 25 little cigars for use outside of this State on

which the tax has been or will be paid by another stamping distributor or was

paid by the retailer may file a claim for credit for those sales with the

Department on forms and in the manner provided by the Department.

[35 ILCS

143/10-27(b)]

j)

A

wholesaler must be a stamping distributor to make tax exempt sales of packages

of little cigars containing 20 or 25 little cigars for use outside of this

State

ax has been or will be paid by another stamping distributor or was

paid by the retailer may file a claim for credit for those sales with the

Department on forms and in the manner provided by the Department.

[35 ILCS

143/10-27(b)]

j)

A

wholesaler must be a stamping distributor to make tax exempt sales of packages

of little cigars containing 20 or 25 little cigars for use outside of this

State.  A wholesaler who is a stamping distributor making sales of stamped

packages of little cigars for use outside of this State may file a claim for

credit for those sales with the Department on forms and in the manner provided

by the Department.

[35 ILCS 143/10-28(a)]

A wholesaler must be a

stamping distributor to make tax exempt sales of packages of little cigars containing

other than 20 or 25 little cigars for use outside of this State.  A wholesaler

who is a stamping distributor making sales of packages of little cigars

containing other than 20 or 25 little cigars for use outside of this State on

which the tax has been or will be paid by another stamping distributor or was

paid by the wholesaler may file a claim for credit for those sales with the

Department on forms and in the manner provided by the Department.

[35 ILCS

143/10-28(b)]