SB3141 Summary

• Establishes uniform penalties of $1,000 for first failure and $3,000 for subsequent failures to keep or produce books and records across Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act, with penalties deposited into Tax Compliance and Administration Fund.

• Adds new provisions to Cigarette Tax Act and Cigarette Use Tax Act creating presumptions that cigarettes obtained from unlicensed distributors are contraband and subject to tax, penalty, and interest assessments.

• Prohibits sale of cigarettes in packages smaller than 20 or 25 cigarettes, establishing penalties of $1,000 for first violation and $3,000 for subsequent violations, with violations constituting Class 4 felonies.

• Creates presumptions that failure to produce records upon Department request establishes prima facie evidence of record-keeping violations, allowing Department to assess penalties without rebuttal unless taxpayer demonstrates ordinary business care and prudence.

• Modifies Tobacco Products Tax Act to strengthen enforcement by adding record-keeping penalties, creating presumptions for unlicensed distributor transactions, and increasing civil penalties to $1,000 for first violations and $3,000 for subsequent violations.