Rep. Michael J. Zalewski

Filed: 3/24/2017

 

 


 

 


 
10000HB2801ham001LRB100 09030 HLH 24320 a

1
AMENDMENT TO HOUSE BILL 2801

2    AMENDMENT NO. ______. Amend House Bill 2801 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Use Tax Act is amended by changing Section
53-10 and by adding Section 3-44.10 as follows:
 
6    (35 ILCS 105/3-10)
7    Sec. 3-10. Rate of tax. Unless otherwise provided in this
8Section, the tax imposed by this Act is at the rate of 6.25% of
9either the selling price or the fair market value, if any, of
10the tangible personal property. In all cases where property
11functionally used or consumed is the same as the property that
12was purchased at retail, then the tax is imposed on the selling
13price of the property. In all cases where property functionally
14used or consumed is a by-product or waste product that has been
15refined, manufactured, or produced from property purchased at
16retail, then the tax is imposed on the lower of the fair market

 

 

10000HB2801ham001- 2 -LRB100 09030 HLH 24320 a

1value, if any, of the specific property so used in this State
2or on the selling price of the property purchased at retail.
3For purposes of this Section "fair market value" means the
4price at which property would change hands between a willing
5buyer and a willing seller, neither being under any compulsion
6to buy or sell and both having reasonable knowledge of the
7relevant facts. The fair market value shall be established by
8Illinois sales by the taxpayer of the same property as that
9functionally used or consumed, or if there are no such sales by
10the taxpayer, then comparable sales or purchases of property of
11like kind and character in Illinois.
12    Beginning on July 1, 2000 and through December 31, 2000,
13with respect to motor fuel, as defined in Section 1.1 of the
14Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
15the Use Tax Act, the tax is imposed at the rate of 1.25%.
16    Beginning on August 6, 2010 through August 15, 2010, with
17respect to sales tax holiday items as defined in Section 3-6 of
18this Act, the tax is imposed at the rate of 1.25%.
19    With respect to gasohol, the tax imposed by this Act
20applies to (i) 70% of the proceeds of sales made on or after
21January 1, 1990, and before July 1, 2003, (ii) 80% of the
22proceeds of sales made on or after July 1, 2003 and on or
23before December 31, 2018, and (iii) 100% of the proceeds of
24sales made thereafter. If, at any time, however, the tax under
25this Act on sales of gasohol is imposed at the rate of 1.25%,
26then the tax imposed by this Act applies to 100% of the

 

 

10000HB2801ham001- 3 -LRB100 09030 HLH 24320 a

1proceeds of sales of gasohol made during that time.
2    With respect to majority blended ethanol fuel, the tax
3imposed by this Act does not apply to the proceeds of sales
4made on or after July 1, 2003 and on or before December 31,
52018 but applies to 100% of the proceeds of sales made
6thereafter.
7    With respect to biodiesel blends with no less than 1% and
8no more than 10% biodiesel, the tax imposed by this Act applies
9to (i) 80% of the proceeds of sales made on or after July 1,
102003 and on or before December 31, 2018 and (ii) 100% of the
11proceeds of sales made thereafter. If, at any time, however,
12the tax under this Act on sales of biodiesel blends with no
13less than 1% and no more than 10% biodiesel is imposed at the
14rate of 1.25%, then the tax imposed by this Act applies to 100%
15of the proceeds of sales of biodiesel blends with no less than
161% and no more than 10% biodiesel made during that time.
17    With respect to 100% biodiesel and biodiesel blends with
18more than 10% but no more than 99% biodiesel, the tax imposed
19by this Act does not apply to the proceeds of sales made on or
20after July 1, 2003 and on or before December 31, 2018 but
21applies to 100% of the proceeds of sales made thereafter.
22    With respect to liquefied natural gas, as defined in
23Section 3-44.10 of this Act, the tax imposed by this Act
24applies to (i) 70% of the selling price of that liquefied
25natural gas for sales made on or after January 1, 2018 and on
26or before December 31, 2023 and (ii) 100% of the selling price

 

 

10000HB2801ham001- 4 -LRB100 09030 HLH 24320 a

1of that liquefied natural gas thereafter.
2    With respect to food for human consumption that is to be
3consumed off the premises where it is sold (other than
4alcoholic beverages, soft drinks, and food that has been
5prepared for immediate consumption) and prescription and
6nonprescription medicines, drugs, medical appliances, products
7classified as Class III medical devices by the United States
8Food and Drug Administration that are used for cancer treatment
9pursuant to a prescription, as well as any accessories and
10components related to those devices, modifications to a motor
11vehicle for the purpose of rendering it usable by a person with
12a disability, and insulin, urine testing materials, syringes,
13and needles used by diabetics, for human use, the tax is
14imposed at the rate of 1%. For the purposes of this Section,
15until September 1, 2009: the term "soft drinks" means any
16complete, finished, ready-to-use, non-alcoholic drink, whether
17carbonated or not, including but not limited to soda water,
18cola, fruit juice, vegetable juice, carbonated water, and all
19other preparations commonly known as soft drinks of whatever
20kind or description that are contained in any closed or sealed
21bottle, can, carton, or container, regardless of size; but
22"soft drinks" does not include coffee, tea, non-carbonated
23water, infant formula, milk or milk products as defined in the
24Grade A Pasteurized Milk and Milk Products Act, or drinks
25containing 50% or more natural fruit or vegetable juice.
26    Notwithstanding any other provisions of this Act,

 

 

10000HB2801ham001- 5 -LRB100 09030 HLH 24320 a

1beginning September 1, 2009, "soft drinks" means non-alcoholic
2beverages that contain natural or artificial sweeteners. "Soft
3drinks" do not include beverages that contain milk or milk
4products, soy, rice or similar milk substitutes, or greater
5than 50% of vegetable or fruit juice by volume.
6    Until August 1, 2009, and notwithstanding any other
7provisions of this Act, "food for human consumption that is to
8be consumed off the premises where it is sold" includes all
9food sold through a vending machine, except soft drinks and
10food products that are dispensed hot from a vending machine,
11regardless of the location of the vending machine. Beginning
12August 1, 2009, and notwithstanding any other provisions of
13this Act, "food for human consumption that is to be consumed
14off the premises where it is sold" includes all food sold
15through a vending machine, except soft drinks, candy, and food
16products that are dispensed hot from a vending machine,
17regardless of the location of the vending machine.
18    Notwithstanding any other provisions of this Act,
19beginning September 1, 2009, "food for human consumption that
20is to be consumed off the premises where it is sold" does not
21include candy. For purposes of this Section, "candy" means a
22preparation of sugar, honey, or other natural or artificial
23sweeteners in combination with chocolate, fruits, nuts or other
24ingredients or flavorings in the form of bars, drops, or
25pieces. "Candy" does not include any preparation that contains
26flour or requires refrigeration.

 

 

10000HB2801ham001- 6 -LRB100 09030 HLH 24320 a

1    Notwithstanding any other provisions of this Act,
2beginning September 1, 2009, "nonprescription medicines and
3drugs" does not include grooming and hygiene products. For
4purposes of this Section, "grooming and hygiene products"
5includes, but is not limited to, soaps and cleaning solutions,
6shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
7lotions and screens, unless those products are available by
8prescription only, regardless of whether the products meet the
9definition of "over-the-counter-drugs". For the purposes of
10this paragraph, "over-the-counter-drug" means a drug for human
11use that contains a label that identifies the product as a drug
12as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
13label includes:
14        (A) A "Drug Facts" panel; or
15        (B) A statement of the "active ingredient(s)" with a
16    list of those ingredients contained in the compound,
17    substance or preparation.
18    Beginning on the effective date of this amendatory Act of
19the 98th General Assembly, "prescription and nonprescription
20medicines and drugs" includes medical cannabis purchased from a
21registered dispensing organization under the Compassionate Use
22of Medical Cannabis Pilot Program Act.
23    If the property that is purchased at retail from a retailer
24is acquired outside Illinois and used outside Illinois before
25being brought to Illinois for use here and is taxable under
26this Act, the "selling price" on which the tax is computed

 

 

10000HB2801ham001- 7 -LRB100 09030 HLH 24320 a

1shall be reduced by an amount that represents a reasonable
2allowance for depreciation for the period of prior out-of-state
3use.
4(Source: P.A. 98-122, eff. 1-1-14; 99-143, eff. 7-27-15;
599-858, eff. 8-19-16.)
 
6    (35 ILCS 105/3-44.10 new)
7    Sec. 3-44.10. Liquefied natural gas. "Liquefied natural
8gas" means a motor fuel derived from methane or natural gas in
9the form of a cryogenic or refrigerated liquid.
 
10    Section 10. The Service Use Tax Act is amended by changing
11Section 3-10 as follows:
 
12    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
13    Sec. 3-10. Rate of tax. Unless otherwise provided in this
14Section, the tax imposed by this Act is at the rate of 6.25% of
15the selling price of tangible personal property transferred as
16an incident to the sale of service, but, for the purpose of
17computing this tax, in no event shall the selling price be less
18than the cost price of the property to the serviceman.
19    Beginning on July 1, 2000 and through December 31, 2000,
20with respect to motor fuel, as defined in Section 1.1 of the
21Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
22the Use Tax Act, the tax is imposed at the rate of 1.25%.
23    With respect to gasohol, as defined in the Use Tax Act, the

 

 

10000HB2801ham001- 8 -LRB100 09030 HLH 24320 a

1tax imposed by this Act applies to (i) 70% of the selling price
2of property transferred as an incident to the sale of service
3on or after January 1, 1990, and before July 1, 2003, (ii) 80%
4of the selling price of property transferred as an incident to
5the sale of service on or after July 1, 2003 and on or before
6December 31, 2018, and (iii) 100% of the selling price
7thereafter. If, at any time, however, the tax under this Act on
8sales of gasohol, as defined in the Use Tax Act, is imposed at
9the rate of 1.25%, then the tax imposed by this Act applies to
10100% of the proceeds of sales of gasohol made during that time.
11    With respect to majority blended ethanol fuel, as defined
12in the Use Tax Act, the tax imposed by this Act does not apply
13to the selling price of property transferred as an incident to
14the sale of service on or after July 1, 2003 and on or before
15December 31, 2018 but applies to 100% of the selling price
16thereafter.
17    With respect to biodiesel blends, as defined in the Use Tax
18Act, with no less than 1% and no more than 10% biodiesel, the
19tax imposed by this Act applies to (i) 80% of the selling price
20of property transferred as an incident to the sale of service
21on or after July 1, 2003 and on or before December 31, 2018 and
22(ii) 100% of the proceeds of the selling price thereafter. If,
23at any time, however, the tax under this Act on sales of
24biodiesel blends, as defined in the Use Tax Act, with no less
25than 1% and no more than 10% biodiesel is imposed at the rate
26of 1.25%, then the tax imposed by this Act applies to 100% of

 

 

10000HB2801ham001- 9 -LRB100 09030 HLH 24320 a

1the proceeds of sales of biodiesel blends with no less than 1%
2and no more than 10% biodiesel made during that time.
3    With respect to 100% biodiesel, as defined in the Use Tax
4Act, and biodiesel blends, as defined in the Use Tax Act, with
5more than 10% but no more than 99% biodiesel, the tax imposed
6by this Act does not apply to the proceeds of the selling price
7of property transferred as an incident to the sale of service
8on or after July 1, 2003 and on or before December 31, 2018 but
9applies to 100% of the selling price thereafter.
10    With respect to liquefied natural gas, as defined in
11Section 3-44.10 of the Use Tax Act, the tax imposed by this Act
12applies to (i) 70% of the selling price of that liquefied
13natural gas for sales made on or after January 1, 2018 and on
14or before December 31, 2023 and (ii) 100% of the selling price
15of that liquefied natural gas thereafter.
16    At the election of any registered serviceman made for each
17fiscal year, sales of service in which the aggregate annual
18cost price of tangible personal property transferred as an
19incident to the sales of service is less than 35%, or 75% in
20the case of servicemen transferring prescription drugs or
21servicemen engaged in graphic arts production, of the aggregate
22annual total gross receipts from all sales of service, the tax
23imposed by this Act shall be based on the serviceman's cost
24price of the tangible personal property transferred as an
25incident to the sale of those services.
26    The tax shall be imposed at the rate of 1% on food prepared

 

 

10000HB2801ham001- 10 -LRB100 09030 HLH 24320 a

1for immediate consumption and transferred incident to a sale of
2service subject to this Act or the Service Occupation Tax Act
3by an entity licensed under the Hospital Licensing Act, the
4Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
5Act, the Specialized Mental Health Rehabilitation Act of 2013,
6or the Child Care Act of 1969. The tax shall also be imposed at
7the rate of 1% on food for human consumption that is to be
8consumed off the premises where it is sold (other than
9alcoholic beverages, soft drinks, and food that has been
10prepared for immediate consumption and is not otherwise
11included in this paragraph) and prescription and
12nonprescription medicines, drugs, medical appliances, products
13classified as Class III medical devices by the United States
14Food and Drug Administration that are used for cancer treatment
15pursuant to a prescription, as well as any accessories and
16components related to those devices, modifications to a motor
17vehicle for the purpose of rendering it usable by a person with
18a disability, and insulin, urine testing materials, syringes,
19and needles used by diabetics, for human use. For the purposes
20of this Section, until September 1, 2009: the term "soft
21drinks" means any complete, finished, ready-to-use,
22non-alcoholic drink, whether carbonated or not, including but
23not limited to soda water, cola, fruit juice, vegetable juice,
24carbonated water, and all other preparations commonly known as
25soft drinks of whatever kind or description that are contained
26in any closed or sealed bottle, can, carton, or container,

 

 

10000HB2801ham001- 11 -LRB100 09030 HLH 24320 a

1regardless of size; but "soft drinks" does not include coffee,
2tea, non-carbonated water, infant formula, milk or milk
3products as defined in the Grade A Pasteurized Milk and Milk
4Products Act, or drinks containing 50% or more natural fruit or
5vegetable juice.
6    Notwithstanding any other provisions of this Act,
7beginning September 1, 2009, "soft drinks" means non-alcoholic
8beverages that contain natural or artificial sweeteners. "Soft
9drinks" do not include beverages that contain milk or milk
10products, soy, rice or similar milk substitutes, or greater
11than 50% of vegetable or fruit juice by volume.
12    Until August 1, 2009, and notwithstanding any other
13provisions of this Act, "food for human consumption that is to
14be consumed off the premises where it is sold" includes all
15food sold through a vending machine, except soft drinks and
16food products that are dispensed hot from a vending machine,
17regardless of the location of the vending machine. Beginning
18August 1, 2009, and notwithstanding any other provisions of
19this Act, "food for human consumption that is to be consumed
20off the premises where it is sold" includes all food sold
21through a vending machine, except soft drinks, candy, and food
22products that are dispensed hot from a vending machine,
23regardless of the location of the vending machine.
24    Notwithstanding any other provisions of this Act,
25beginning September 1, 2009, "food for human consumption that
26is to be consumed off the premises where it is sold" does not

 

 

10000HB2801ham001- 12 -LRB100 09030 HLH 24320 a

1include candy. For purposes of this Section, "candy" means a
2preparation of sugar, honey, or other natural or artificial
3sweeteners in combination with chocolate, fruits, nuts or other
4ingredients or flavorings in the form of bars, drops, or
5pieces. "Candy" does not include any preparation that contains
6flour or requires refrigeration.
7    Notwithstanding any other provisions of this Act,
8beginning September 1, 2009, "nonprescription medicines and
9drugs" does not include grooming and hygiene products. For
10purposes of this Section, "grooming and hygiene products"
11includes, but is not limited to, soaps and cleaning solutions,
12shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
13lotions and screens, unless those products are available by
14prescription only, regardless of whether the products meet the
15definition of "over-the-counter-drugs". For the purposes of
16this paragraph, "over-the-counter-drug" means a drug for human
17use that contains a label that identifies the product as a drug
18as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
19label includes:
20        (A) A "Drug Facts" panel; or
21        (B) A statement of the "active ingredient(s)" with a
22    list of those ingredients contained in the compound,
23    substance or preparation.
24    Beginning on January 1, 2014 (the effective date of Public
25Act 98-122), "prescription and nonprescription medicines and
26drugs" includes medical cannabis purchased from a registered

 

 

10000HB2801ham001- 13 -LRB100 09030 HLH 24320 a

1dispensing organization under the Compassionate Use of Medical
2Cannabis Pilot Program Act.
3    If the property that is acquired from a serviceman is
4acquired outside Illinois and used outside Illinois before
5being brought to Illinois for use here and is taxable under
6this Act, the "selling price" on which the tax is computed
7shall be reduced by an amount that represents a reasonable
8allowance for depreciation for the period of prior out-of-state
9use.
10(Source: P.A. 98-104, eff. 7-22-13; 98-122, eff. 1-1-14;
1198-756, eff. 7-16-14; 99-143, eff. 7-27-15; 99-180, eff.
127-29-15; 99-642, eff. 7-28-16; 99-858, eff. 8-19-16.)
 
13    Section 15. The Service Occupation Tax Act is amended by
14changing Section 3-10 as follows:
 
15    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
16    Sec. 3-10. Rate of tax. Unless otherwise provided in this
17Section, the tax imposed by this Act is at the rate of 6.25% of
18the "selling price", as defined in Section 2 of the Service Use
19Tax Act, of the tangible personal property. For the purpose of
20computing this tax, in no event shall the "selling price" be
21less than the cost price to the serviceman of the tangible
22personal property transferred. The selling price of each item
23of tangible personal property transferred as an incident of a
24sale of service may be shown as a distinct and separate item on

 

 

10000HB2801ham001- 14 -LRB100 09030 HLH 24320 a

1the serviceman's billing to the service customer. If the
2selling price is not so shown, the selling price of the
3tangible personal property is deemed to be 50% of the
4serviceman's entire billing to the service customer. When,
5however, a serviceman contracts to design, develop, and produce
6special order machinery or equipment, the tax imposed by this
7Act shall be based on the serviceman's cost price of the
8tangible personal property transferred incident to the
9completion of the contract.
10    Beginning on July 1, 2000 and through December 31, 2000,
11with respect to motor fuel, as defined in Section 1.1 of the
12Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
13the Use Tax Act, the tax is imposed at the rate of 1.25%.
14    With respect to gasohol, as defined in the Use Tax Act, the
15tax imposed by this Act shall apply to (i) 70% of the cost
16price of property transferred as an incident to the sale of
17service on or after January 1, 1990, and before July 1, 2003,
18(ii) 80% of the selling price of property transferred as an
19incident to the sale of service on or after July 1, 2003 and on
20or before December 31, 2018, and (iii) 100% of the cost price
21thereafter. If, at any time, however, the tax under this Act on
22sales of gasohol, as defined in the Use Tax Act, is imposed at
23the rate of 1.25%, then the tax imposed by this Act applies to
24100% of the proceeds of sales of gasohol made during that time.
25    With respect to majority blended ethanol fuel, as defined
26in the Use Tax Act, the tax imposed by this Act does not apply

 

 

10000HB2801ham001- 15 -LRB100 09030 HLH 24320 a

1to the selling price of property transferred as an incident to
2the sale of service on or after July 1, 2003 and on or before
3December 31, 2018 but applies to 100% of the selling price
4thereafter.
5    With respect to biodiesel blends, as defined in the Use Tax
6Act, with no less than 1% and no more than 10% biodiesel, the
7tax imposed by this Act applies to (i) 80% of the selling price
8of property transferred as an incident to the sale of service
9on or after July 1, 2003 and on or before December 31, 2018 and
10(ii) 100% of the proceeds of the selling price thereafter. If,
11at any time, however, the tax under this Act on sales of
12biodiesel blends, as defined in the Use Tax Act, with no less
13than 1% and no more than 10% biodiesel is imposed at the rate
14of 1.25%, then the tax imposed by this Act applies to 100% of
15the proceeds of sales of biodiesel blends with no less than 1%
16and no more than 10% biodiesel made during that time.
17    With respect to 100% biodiesel, as defined in the Use Tax
18Act, and biodiesel blends, as defined in the Use Tax Act, with
19more than 10% but no more than 99% biodiesel material, the tax
20imposed by this Act does not apply to the proceeds of the
21selling price of property transferred as an incident to the
22sale of service on or after July 1, 2003 and on or before
23December 31, 2018 but applies to 100% of the selling price
24thereafter.
25    With respect to liquefied natural gas, as defined in
26Section 3-44.10 of the Use Tax Act, the tax imposed by this Act

 

 

10000HB2801ham001- 16 -LRB100 09030 HLH 24320 a

1applies to (i) 70% of the selling price of that liquefied
2natural gas for sales made on or after January 1, 2018 and on
3or before December 31, 2023 and (ii) 100% of the selling price
4of that liquefied natural gas thereafter.
5    At the election of any registered serviceman made for each
6fiscal year, sales of service in which the aggregate annual
7cost price of tangible personal property transferred as an
8incident to the sales of service is less than 35%, or 75% in
9the case of servicemen transferring prescription drugs or
10servicemen engaged in graphic arts production, of the aggregate
11annual total gross receipts from all sales of service, the tax
12imposed by this Act shall be based on the serviceman's cost
13price of the tangible personal property transferred incident to
14the sale of those services.
15    The tax shall be imposed at the rate of 1% on food prepared
16for immediate consumption and transferred incident to a sale of
17service subject to this Act or the Service Occupation Tax Act
18by an entity licensed under the Hospital Licensing Act, the
19Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
20Act, the Specialized Mental Health Rehabilitation Act of 2013,
21or the Child Care Act of 1969. The tax shall also be imposed at
22the rate of 1% on food for human consumption that is to be
23consumed off the premises where it is sold (other than
24alcoholic beverages, soft drinks, and food that has been
25prepared for immediate consumption and is not otherwise
26included in this paragraph) and prescription and

 

 

10000HB2801ham001- 17 -LRB100 09030 HLH 24320 a

1nonprescription medicines, drugs, medical appliances, products
2classified as Class III medical devices by the United States
3Food and Drug Administration that are used for cancer treatment
4pursuant to a prescription, as well as any accessories and
5components related to those devices, modifications to a motor
6vehicle for the purpose of rendering it usable by a person with
7a disability, and insulin, urine testing materials, syringes,
8and needles used by diabetics, for human use. For the purposes
9of this Section, until September 1, 2009: the term "soft
10drinks" means any complete, finished, ready-to-use,
11non-alcoholic drink, whether carbonated or not, including but
12not limited to soda water, cola, fruit juice, vegetable juice,
13carbonated water, and all other preparations commonly known as
14soft drinks of whatever kind or description that are contained
15in any closed or sealed can, carton, or container, regardless
16of size; but "soft drinks" does not include coffee, tea,
17non-carbonated water, infant formula, milk or milk products as
18defined in the Grade A Pasteurized Milk and Milk Products Act,
19or drinks containing 50% or more natural fruit or vegetable
20juice.
21    Notwithstanding any other provisions of this Act,
22beginning September 1, 2009, "soft drinks" means non-alcoholic
23beverages that contain natural or artificial sweeteners. "Soft
24drinks" do not include beverages that contain milk or milk
25products, soy, rice or similar milk substitutes, or greater
26than 50% of vegetable or fruit juice by volume.

 

 

10000HB2801ham001- 18 -LRB100 09030 HLH 24320 a

1    Until August 1, 2009, and notwithstanding any other
2provisions of this Act, "food for human consumption that is to
3be consumed off the premises where it is sold" includes all
4food sold through a vending machine, except soft drinks and
5food products that are dispensed hot from a vending machine,
6regardless of the location of the vending machine. Beginning
7August 1, 2009, and notwithstanding any other provisions of
8this Act, "food for human consumption that is to be consumed
9off the premises where it is sold" includes all food sold
10through a vending machine, except soft drinks, candy, and food
11products that are dispensed hot from a vending machine,
12regardless of the location of the vending machine.
13    Notwithstanding any other provisions of this Act,
14beginning September 1, 2009, "food for human consumption that
15is to be consumed off the premises where it is sold" does not
16include candy. For purposes of this Section, "candy" means a
17preparation of sugar, honey, or other natural or artificial
18sweeteners in combination with chocolate, fruits, nuts or other
19ingredients or flavorings in the form of bars, drops, or
20pieces. "Candy" does not include any preparation that contains
21flour or requires refrigeration.
22    Notwithstanding any other provisions of this Act,
23beginning September 1, 2009, "nonprescription medicines and
24drugs" does not include grooming and hygiene products. For
25purposes of this Section, "grooming and hygiene products"
26includes, but is not limited to, soaps and cleaning solutions,

 

 

10000HB2801ham001- 19 -LRB100 09030 HLH 24320 a

1shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
2lotions and screens, unless those products are available by
3prescription only, regardless of whether the products meet the
4definition of "over-the-counter-drugs". For the purposes of
5this paragraph, "over-the-counter-drug" means a drug for human
6use that contains a label that identifies the product as a drug
7as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
8label includes:
9        (A) A "Drug Facts" panel; or
10        (B) A statement of the "active ingredient(s)" with a
11    list of those ingredients contained in the compound,
12    substance or preparation.
13    Beginning on January 1, 2014 (the effective date of Public
14Act 98-122), "prescription and nonprescription medicines and
15drugs" includes medical cannabis purchased from a registered
16dispensing organization under the Compassionate Use of Medical
17Cannabis Pilot Program Act.
18(Source: P.A. 98-104, eff. 7-22-13; 98-122, eff. 1-1-14;
1998-756, eff. 7-16-14; 99-143, eff. 7-27-15; 99-180, eff.
207-29-15; 99-642, eff. 7-28-16; 99-858, eff. 8-19-16.)
 
21    Section 20. The Retailers' Occupation Tax Act is amended by
22changing Section 2-10 as follows:
 
23    (35 ILCS 120/2-10)
24    Sec. 2-10. Rate of tax. Unless otherwise provided in this

 

 

10000HB2801ham001- 20 -LRB100 09030 HLH 24320 a

1Section, the tax imposed by this Act is at the rate of 6.25% of
2gross receipts from sales of tangible personal property made in
3the course of business.
4    Beginning on July 1, 2000 and through December 31, 2000,
5with respect to motor fuel, as defined in Section 1.1 of the
6Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
7the Use Tax Act, the tax is imposed at the rate of 1.25%.
8    Beginning on August 6, 2010 through August 15, 2010, with
9respect to sales tax holiday items as defined in Section 2-8 of
10this Act, the tax is imposed at the rate of 1.25%.
11    Within 14 days after the effective date of this amendatory
12Act of the 91st General Assembly, each retailer of motor fuel
13and gasohol shall cause the following notice to be posted in a
14prominently visible place on each retail dispensing device that
15is used to dispense motor fuel or gasohol in the State of
16Illinois: "As of July 1, 2000, the State of Illinois has
17eliminated the State's share of sales tax on motor fuel and
18gasohol through December 31, 2000. The price on this pump
19should reflect the elimination of the tax." The notice shall be
20printed in bold print on a sign that is no smaller than 4
21inches by 8 inches. The sign shall be clearly visible to
22customers. Any retailer who fails to post or maintain a
23required sign through December 31, 2000 is guilty of a petty
24offense for which the fine shall be $500 per day per each
25retail premises where a violation occurs.
26    With respect to gasohol, as defined in the Use Tax Act, the

 

 

10000HB2801ham001- 21 -LRB100 09030 HLH 24320 a

1tax imposed by this Act applies to (i) 70% of the proceeds of
2sales made on or after January 1, 1990, and before July 1,
32003, (ii) 80% of the proceeds of sales made on or after July
41, 2003 and on or before December 31, 2018, and (iii) 100% of
5the proceeds of sales made thereafter. If, at any time,
6however, the tax under this Act on sales of gasohol, as defined
7in the Use Tax Act, is imposed at the rate of 1.25%, then the
8tax imposed by this Act applies to 100% of the proceeds of
9sales of gasohol made during that time.
10    With respect to majority blended ethanol fuel, as defined
11in the Use Tax Act, the tax imposed by this Act does not apply
12to the proceeds of sales made on or after July 1, 2003 and on or
13before December 31, 2018 but applies to 100% of the proceeds of
14sales made thereafter.
15    With respect to biodiesel blends, as defined in the Use Tax
16Act, with no less than 1% and no more than 10% biodiesel, the
17tax imposed by this Act applies to (i) 80% of the proceeds of
18sales made on or after July 1, 2003 and on or before December
1931, 2018 and (ii) 100% of the proceeds of sales made
20thereafter. If, at any time, however, the tax under this Act on
21sales of biodiesel blends, as defined in the Use Tax Act, with
22no less than 1% and no more than 10% biodiesel is imposed at
23the rate of 1.25%, then the tax imposed by this Act applies to
24100% of the proceeds of sales of biodiesel blends with no less
25than 1% and no more than 10% biodiesel made during that time.
26    With respect to 100% biodiesel, as defined in the Use Tax

 

 

10000HB2801ham001- 22 -LRB100 09030 HLH 24320 a

1Act, and biodiesel blends, as defined in the Use Tax Act, with
2more than 10% but no more than 99% biodiesel, the tax imposed
3by this Act does not apply to the proceeds of sales made on or
4after July 1, 2003 and on or before December 31, 2018 but
5applies to 100% of the proceeds of sales made thereafter.
6    With respect to liquefied natural gas, as defined in
7Section 3-44.10 of the Use Tax Act, the tax imposed by this Act
8applies to (i) 70% of the gross receipts from sales of that
9liquefied natural gas made on or after January 1, 2018 and on
10or before December 31, 2023 and (ii) 100% of the gross receipts
11from sales of that liquefied natural gas thereafter.
12    With respect to food for human consumption that is to be
13consumed off the premises where it is sold (other than
14alcoholic beverages, soft drinks, and food that has been
15prepared for immediate consumption) and prescription and
16nonprescription medicines, drugs, medical appliances, products
17classified as Class III medical devices by the United States
18Food and Drug Administration that are used for cancer treatment
19pursuant to a prescription, as well as any accessories and
20components related to those devices, modifications to a motor
21vehicle for the purpose of rendering it usable by a person with
22a disability, and insulin, urine testing materials, syringes,
23and needles used by diabetics, for human use, the tax is
24imposed at the rate of 1%. For the purposes of this Section,
25until September 1, 2009: the term "soft drinks" means any
26complete, finished, ready-to-use, non-alcoholic drink, whether

 

 

10000HB2801ham001- 23 -LRB100 09030 HLH 24320 a

1carbonated or not, including but not limited to soda water,
2cola, fruit juice, vegetable juice, carbonated water, and all
3other preparations commonly known as soft drinks of whatever
4kind or description that are contained in any closed or sealed
5bottle, can, carton, or container, regardless of size; but
6"soft drinks" does not include coffee, tea, non-carbonated
7water, infant formula, milk or milk products as defined in the
8Grade A Pasteurized Milk and Milk Products Act, or drinks
9containing 50% or more natural fruit or vegetable juice.
10    Notwithstanding any other provisions of this Act,
11beginning September 1, 2009, "soft drinks" means non-alcoholic
12beverages that contain natural or artificial sweeteners. "Soft
13drinks" do not include beverages that contain milk or milk
14products, soy, rice or similar milk substitutes, or greater
15than 50% of vegetable or fruit juice by volume.
16    Until August 1, 2009, and notwithstanding any other
17provisions of this Act, "food for human consumption that is to
18be consumed off the premises where it is sold" includes all
19food sold through a vending machine, except soft drinks and
20food products that are dispensed hot from a vending machine,
21regardless of the location of the vending machine. Beginning
22August 1, 2009, and notwithstanding any other provisions of
23this Act, "food for human consumption that is to be consumed
24off the premises where it is sold" includes all food sold
25through a vending machine, except soft drinks, candy, and food
26products that are dispensed hot from a vending machine,

 

 

10000HB2801ham001- 24 -LRB100 09030 HLH 24320 a

1regardless of the location of the vending machine.
2    Notwithstanding any other provisions of this Act,
3beginning September 1, 2009, "food for human consumption that
4is to be consumed off the premises where it is sold" does not
5include candy. For purposes of this Section, "candy" means a
6preparation of sugar, honey, or other natural or artificial
7sweeteners in combination with chocolate, fruits, nuts or other
8ingredients or flavorings in the form of bars, drops, or
9pieces. "Candy" does not include any preparation that contains
10flour or requires refrigeration.
11    Notwithstanding any other provisions of this Act,
12beginning September 1, 2009, "nonprescription medicines and
13drugs" does not include grooming and hygiene products. For
14purposes of this Section, "grooming and hygiene products"
15includes, but is not limited to, soaps and cleaning solutions,
16shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
17lotions and screens, unless those products are available by
18prescription only, regardless of whether the products meet the
19definition of "over-the-counter-drugs". For the purposes of
20this paragraph, "over-the-counter-drug" means a drug for human
21use that contains a label that identifies the product as a drug
22as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
23label includes:
24        (A) A "Drug Facts" panel; or
25        (B) A statement of the "active ingredient(s)" with a
26    list of those ingredients contained in the compound,

 

 

10000HB2801ham001- 25 -LRB100 09030 HLH 24320 a

1    substance or preparation.
2    Beginning on the effective date of this amendatory Act of
3the 98th General Assembly, "prescription and nonprescription
4medicines and drugs" includes medical cannabis purchased from a
5registered dispensing organization under the Compassionate Use
6of Medical Cannabis Pilot Program Act.
7(Source: P.A. 98-122, eff. 1-1-14; 99-143, eff. 7-27-15;
899-858, eff. 8-19-16.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.".