Discount cigarette sales

Multiple taxes: Liquor, sales, cigarette tax provisions amended

The Illinois alcoholic beverage tax discount rate, the retailer's occupation (sales) tax reporting requirements for liquor distributors, manufacturers, and retailers, and the cigarette tax stamp payment provisions have been amended.

Alcoholic beverage tax discount rate amended: The discount rate allowed to a liquor manufacturer or distributor that reports and pays Illinois alcoholic beverage taxes electronically is amended as follows: (1) the current discount rate of 1.75% or $1,250 per return, whichever is less, will continue to apply to returns due through September 30, 2003; (2) for returns due October 1, 2003, through September 30, 2004, the discount rate will be increased to 2% or $3,000 per return, whichever is less; and (3) for returns due on and after October 1, 2004, the discount rate will be reduced to 2% or $2,000 per return, whichever is less. Also, the license fee for retailers of alcoholic beverages is increased from $175 to $500.

Reports of liquor transactions required: The Illinois retailer's occupation (sales) tax law is amended to provide that beginning October 1, 2003, any retailer of alcoholic liquor who is not a distributor or manufacturer must file a statement with the Department of Revenue, at a time prescribed by the Department, showing the total amount paid for alcoholic liquor purchased during the preceding month.

In addition, beginning October 1, 2003, every distributor, importing distributor, and manufacturer of alcoholic liquor must file a statement, by electronic means, no later than the 10th day of the month for the preceding month, showing the total gross receipts from alcoholic liquor sold or distributed during the preceding month to purchasers. The statement must identify the purchaser, the purchaser's tax registration number, and other information reasonably required by the Department. A copy of the monthly statement must be sent to the retailer no later than the 10th day of the month for the preceding month.

Cigarette tax stamps payment provisions amended: Beginning July 1, 2003, payment for Illinois cigarette tax stamps and cigarette use tax stamps must be made by means of electronic funds transfer. Also, beginning July 1, 2003, the Department will no longer allow distributors 30 days in which to make a final payment for tax stamps. Formerly, a distributor was allowed to purchase stamps with a draft that was payable within 30 days. (P.A. 93-21 (S.B. 774), Laws 2003, effective as noted above.)