Signed by Governor Pat Quinn

Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that increases the cigarette machine operators' tax and amends income taxes for qualifying hospitals.

Highlights:

• Establishes a 9.9 cents per cigarette tax on cigarette machine operators, effective August 1, 2012 (Art. 1, Sec. 10).

• Exempts cigarettes rolled by a handheld manually operated device to make roll-your-own cigarettes for personal consumption from the cigarette tax increase (Art. 1, Sec. 10).

• Authorizes a cigarette machine operator to increase the price of cigarettes by no more than the amount of the tax levied by the provisions of this bill (Art. 1, Sec. 10).

• Prohibits a cigarette machine operator from making a profit by claiming that the price increase of cigarettes is due to the new occupation tax levied by this bill (Art. 1, Sec. 10).

• Requires a business that operates a cigarette machine to obtain an operator license from the Department of Revenue, effective August 1, 2012 (Art. 1, Sec. 15).

• Establishes a $250 annual fee for each cigarette machine operator license (Art. 1, Sec. 15).

• Prohibits certain individuals from obtaining a cigarette machine operator license, including but not limited to, the following (Art. 1, Sec. 15):
• Individuals who are not of good character and reputation in the community in which he or she resides;
• Individuals who have been convicted of a felony; or
• Individuals who have more than 15 percent of the ownership interests in an entity and who owes any delinquent cigarette taxes or tobacco taxes that have been determined by law to be unpaid.

• Authorizes the Department of Revenue to revoke, cancel, or suspend the license of any cigarette machine operator if he or she violates any provision of this bill (Art. 1, Sec. 20).

• Establishes a tax credit for an individual who owns a licensed hospital that is equal in amount to the lesser of the following, beginning with the tax year ending on December 31, 2012 (Art. 5, Sec. 5):
• The amount of real property taxes paid in a tax year for real property used for hospital purposes in the prior tax year; or
• The cost incurred by the hospital for free or discounted services that qualify as charitable financial assistance.

• Specifies that individuals who own licensed hospitals exempt from federal income taxes do not qualify for the tax credit established by this bill (Art. 5, Sec. 5).

• Establishes a tax exemption for tangible personal property sold to or used by a qualified licensed hospital if the hospital provides certain charitable services including, but not limited to, the following (Art. 5, Sec. 10):
• A hospital owner that owns one or more licensed hospitals;
• A hospital operated under the University of Illinois Hospital Act; or
• A hospital affiliate that is not already exempt and meets the criteria for an exemption.

• Specifies that the cost of certain services will be used to calculate the tax exemption including, but not limited to, the following services (Art. 5, Sec. 10):
• Charity care and free or discounted services;
• Health services to low-income and underserved individuals;
• Direct or indirect state or local subsidies; or
• Any other activity of the hospital that the Department of Revenue determines relieves the burden of government or addresses the health of low-income or underserved individuals.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that increases the cigarette machine operators' tax and amends income taxes for qualifying hospitals.

Highlights:

• Establishes a 9.9 cents per cigarette tax on cigarette machine operators, effective August 1, 2012 (Art. 1, Sec. 10).

• Exempts cigarettes rolled by a handheld manually operated device to make roll-your-own cigarettes for personal consumption from the cigarette tax increase (Art. 1, Sec. 10).

• Authorizes a cigarette machine operator to increase the price of cigarettes by no more than the amount of the tax levied by the provisions of this bill (Art. 1, Sec. 10).

• Prohibits a cigarette machine operator from making a profit by claiming that the price increase of cigarettes is due to the new occupation tax levied by this bill (Art. 1, Sec. 10).

• Requires a business that operates a cigarette machine to obtain an operator license from the Department of Revenue, effective August 1, 2012 (Art. 1, Sec. 15).

• Establishes a $250 annual fee for each cigarette machine operator license (Art. 1, Sec. 15).

• Prohibits certain individuals from obtaining a cigarette machine operator license, including but not limited to, the following (Art. 1, Sec. 15):
• Individuals who are not of good character and reputation in the community in which he or she resides;
• Individuals who have been convicted of a felony; or
• Individuals who have more than 15 percent of the ownership interests in an entity and who owes any delinquent cigarette taxes or tobacco taxes that have been determined by law to be unpaid.

• Authorizes the Department of Revenue to revoke, cancel, or suspend the license of any cigarette machine operator if he or she violates any provision of this bill (Art. 1, Sec. 20).

• Establishes a tax credit for an individual who owns a licensed hospital that is equal in amount to the lesser of the following, beginning with the tax year ending on December 31, 2012 (Art. 5, Sec. 5):
• The amount of real property taxes paid in a tax year for real property used for hospital purposes in the prior tax year; or
• The cost incurred by the hospital for free or discounted services that qualify as charitable financial assistance.

• Specifies that individuals who own licensed hospitals exempt from federal income taxes do not qualify for the tax credit established by this bill (Art. 5, Sec. 5).

• Establishes a tax exemption for tangible personal property sold to or used by a qualified licensed hospital if the hospital provides certain charitable services including, but not limited to, the following (Art. 5, Sec. 10):
• A hospital owner that owns one or more licensed hospitals;
• A hospital operated under the University of Illinois Hospital Act; or
• A hospital affiliate that is not already exempt and meets the criteria for an exemption.

• Specifies that the cost of certain services will be used to calculate the tax exemption including, but not limited to, the following services (Art. 5, Sec. 10):
• Charity care and free or discounted services;
• Health services to low-income and underserved individuals;
• Direct or indirect state or local subsidies; or
• Any other activity of the hospital that the Department of Revenue determines relieves the burden of government or addresses the health of low-income or underserved individuals.

Full Bill Text