100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3141

 

Introduced , by Rep. David Harris

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-10
35 ILCS 110/3-10  from Ch. 120, par. 439.33-10
35 ILCS 115/3-10  from Ch. 120, par. 439.103-10
35 ILCS 120/2-10

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the tax on gasohol applies to 100% of the proceeds of sales made on or after the effective date (currently, the tax applies to 80% of the proceeds of sales made before December 31, 2018 and 100% of the proceeds of sales made thereafter).


LRB100 10947 HLH 21184 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3141LRB100 10947 HLH 21184 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section
53-10 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
17value, if any, of the specific property so used in this State
18or on the selling price of the property purchased at retail.
19For purposes of this Section "fair market value" means the
20price at which property would change hands between a willing
21buyer and a willing seller, neither being under any compulsion
22to buy or sell and both having reasonable knowledge of the
23relevant facts. The fair market value shall be established by

 

 

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1Illinois sales by the taxpayer of the same property as that
2functionally used or consumed, or if there are no such sales by
3the taxpayer, then comparable sales or purchases of property of
4like kind and character in Illinois.
5    Beginning on July 1, 2000 and through December 31, 2000,
6with respect to motor fuel, as defined in Section 1.1 of the
7Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
8the Use Tax Act, the tax is imposed at the rate of 1.25%.
9    Beginning on August 6, 2010 through August 15, 2010, with
10respect to sales tax holiday items as defined in Section 3-6 of
11this Act, the tax is imposed at the rate of 1.25%.
12    With respect to gasohol, the tax imposed by this Act
13applies to (i) 70% of the proceeds of sales made on or after
14January 1, 1990, and before July 1, 2003, (ii) 80% of the
15proceeds of sales made on or after July 1, 2003 and on or
16before December 31, 2018, and (iii) 100% of the proceeds of
17sales made thereafter. If, at any time, however, the tax under
18this Act on sales of gasohol is imposed at the rate of 1.25%,
19then the tax imposed by this Act applies to 100% of the
20proceeds of sales of gasohol made during that time.
21    With respect to majority blended ethanol fuel, the tax
22imposed by this Act does not apply to the proceeds of sales
23made on or after July 1, 2003 and on or before December 31,
242018 but applies to 100% of the proceeds of sales made
25thereafter.
26    With respect to biodiesel blends with no less than 1% and

 

 

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1no more than 10% biodiesel, the tax imposed by this Act applies
2to (i) 80% of the proceeds of sales made on or after July 1,
32003 and on or before December 31, 2018 and (ii) 100% of the
4proceeds of sales made thereafter. If, at any time, however,
5the tax under this Act on sales of biodiesel blends with no
6less than 1% and no more than 10% biodiesel is imposed at the
7rate of 1.25%, then the tax imposed by this Act applies to 100%
8of the proceeds of sales of biodiesel blends with no less than
91% and no more than 10% biodiesel made during that time.
10    With respect to 100% biodiesel and biodiesel blends with
11more than 10% but no more than 99% biodiesel, the tax imposed
12by this Act does not apply to the proceeds of sales made on or
13after July 1, 2003 and on or before December 31, 2018 but
14applies to 100% of the proceeds of sales made thereafter.
15    With respect to food for human consumption that is to be
16consumed off the premises where it is sold (other than
17alcoholic beverages, soft drinks, and food that has been
18prepared for immediate consumption) and prescription and
19nonprescription medicines, drugs, medical appliances, products
20classified as Class III medical devices by the United States
21Food and Drug Administration that are used for cancer treatment
22pursuant to a prescription, as well as any accessories and
23components related to those devices, modifications to a motor
24vehicle for the purpose of rendering it usable by a person with
25a disability, and insulin, urine testing materials, syringes,
26and needles used by diabetics, for human use, the tax is

 

 

HB3141- 4 -LRB100 10947 HLH 21184 b

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

 

 

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

 

 

HB3141- 6 -LRB100 10947 HLH 21184 b

1        (A) A "Drug Facts" panel; or
2        (B) A statement of the "active ingredient(s)" with a
3    list of those ingredients contained in the compound,
4    substance or preparation.
5    Beginning on the effective date of this amendatory Act of
6the 98th General Assembly, "prescription and nonprescription
7medicines and drugs" includes medical cannabis purchased from a
8registered dispensing organization under the Compassionate Use
9of Medical Cannabis Pilot Program Act.
10    If the property that is purchased at retail from a retailer
11is acquired outside Illinois and used outside Illinois before
12being brought to Illinois for use here and is taxable under
13this Act, the "selling price" on which the tax is computed
14shall be reduced by an amount that represents a reasonable
15allowance for depreciation for the period of prior out-of-state
16use.
17(Source: P.A. 98-122, eff. 1-1-14; 99-143, eff. 7-27-15;
1899-858, eff. 8-19-16.)
 
19    Section 10. The Service Use Tax Act is amended by changing
20Section 3-10 as follows:
 
21    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
22    Sec. 3-10. Rate of tax. Unless otherwise provided in this
23Section, the tax imposed by this Act is at the rate of 6.25% of
24the selling price of tangible personal property transferred as

 

 

HB3141- 7 -LRB100 10947 HLH 21184 b

1an incident to the sale of service, but, for the purpose of
2computing this tax, in no event shall the selling price be less
3than the cost price of the property to the serviceman.
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    With respect to gasohol, as defined in the Use Tax Act, the
9tax imposed by this Act applies to (i) 70% of the selling price
10of property transferred as an incident to the sale of service
11on or after January 1, 1990, and before July 1, 2003, (ii) 80%
12of the selling price of property transferred as an incident to
13the sale of service on or after July 1, 2003 and on or before
14December 31, 2018, and (iii) 100% of the selling price
15thereafter. If, at any time, however, the tax under this Act on
16sales of gasohol, as defined in the Use Tax Act, is imposed at
17the rate of 1.25%, then the tax imposed by this Act applies to
18100% of the proceeds of sales of gasohol made during that time.
19    With respect to majority blended ethanol fuel, as defined
20in the Use Tax Act, the tax imposed by this Act does not apply
21to the selling price of property transferred as an incident to
22the sale 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 biodiesel blends, as defined in the Use Tax
26Act, with no less than 1% and no more than 10% biodiesel, the

 

 

HB3141- 8 -LRB100 10947 HLH 21184 b

1tax imposed by this Act applies to (i) 80% of the selling price
2of property transferred as an incident to the sale of service
3on or after July 1, 2003 and on or before December 31, 2018 and
4(ii) 100% of the proceeds of the selling price thereafter. If,
5at any time, however, the tax under this Act on sales of
6biodiesel blends, as defined in the Use Tax Act, with no less
7than 1% and no more than 10% biodiesel is imposed at the rate
8of 1.25%, then the tax imposed by this Act applies to 100% of
9the proceeds of sales of biodiesel blends with no less than 1%
10and no more than 10% biodiesel made during that time.
11    With respect to 100% biodiesel, as defined in the Use Tax
12Act, and biodiesel blends, as defined in the Use Tax Act, with
13more than 10% but no more than 99% biodiesel, the tax imposed
14by this Act does not apply to the proceeds of the selling price
15of property transferred as an incident to the sale of service
16on or after July 1, 2003 and on or before December 31, 2018 but
17applies to 100% of the selling price thereafter.
18    At the election of any registered serviceman made for each
19fiscal year, sales of service in which the aggregate annual
20cost price of tangible personal property transferred as an
21incident to the sales of service is less than 35%, or 75% in
22the case of servicemen transferring prescription drugs or
23servicemen engaged in graphic arts production, of the aggregate
24annual total gross receipts from all sales of service, the tax
25imposed by this Act shall be based on the serviceman's cost
26price of the tangible personal property transferred as an

 

 

HB3141- 9 -LRB100 10947 HLH 21184 b

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

 

 

HB3141- 10 -LRB100 10947 HLH 21184 b

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

 

 

HB3141- 11 -LRB100 10947 HLH 21184 b

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

 

 

HB3141- 12 -LRB100 10947 HLH 21184 b

1Act 98-122), "prescription and nonprescription medicines and
2drugs" includes medical cannabis purchased from a registered
3dispensing organization under the Compassionate Use of Medical
4Cannabis Pilot Program Act.
5    If the property that is acquired from a serviceman is
6acquired outside Illinois and used outside Illinois before
7being brought to Illinois for use here and is taxable under
8this Act, the "selling price" on which the tax is computed
9shall be reduced by an amount that represents a reasonable
10allowance for depreciation for the period of prior out-of-state
11use.
12(Source: P.A. 98-104, eff. 7-22-13; 98-122, eff. 1-1-14;
1398-756, eff. 7-16-14; 99-143, eff. 7-27-15; 99-180, eff.
147-29-15; 99-642, eff. 7-28-16; 99-858, eff. 8-19-16.)
 
15    Section 15. The Service Occupation Tax Act is amended by
16changing Section 3-10 as follows:
 
17    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
18    Sec. 3-10. Rate of tax. Unless otherwise provided in this
19Section, the tax imposed by this Act is at the rate of 6.25% of
20the "selling price", as defined in Section 2 of the Service Use
21Tax Act, of the tangible personal property. For the purpose of
22computing this tax, in no event shall the "selling price" be
23less than the cost price to the serviceman of the tangible
24personal property transferred. The selling price of each item

 

 

HB3141- 13 -LRB100 10947 HLH 21184 b

1of tangible personal property transferred as an incident of a
2sale of service may be shown as a distinct and separate item on
3the serviceman's billing to the service customer. If the
4selling price is not so shown, the selling price of the
5tangible personal property is deemed to be 50% of the
6serviceman's entire billing to the service customer. When,
7however, a serviceman contracts to design, develop, and produce
8special order machinery or equipment, the tax imposed by this
9Act shall be based on the serviceman's cost price of the
10tangible personal property transferred incident to the
11completion of the contract.
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    With respect to gasohol, as defined in the Use Tax Act, the
17tax imposed by this Act shall apply to (i) 70% of the cost
18price of property transferred as an incident to the sale of
19service on or after January 1, 1990, and before July 1, 2003,
20(ii) 80% of the selling price of property transferred as an
21incident to the sale of service on or after July 1, 2003 and on
22or before December 31, 2018, and (iii) 100% of the cost price
23thereafter. If, at any time, however, the tax under this Act on
24sales of gasohol, as defined in the Use Tax Act, is imposed at
25the rate of 1.25%, then the tax imposed by this Act applies to
26100% of the proceeds of sales of gasohol made during that time.

 

 

HB3141- 14 -LRB100 10947 HLH 21184 b

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

 

 

HB3141- 15 -LRB100 10947 HLH 21184 b

1    At the election of any registered serviceman made for each
2fiscal year, sales of service in which the aggregate annual
3cost price of tangible personal property transferred as an
4incident to the sales of service is less than 35%, or 75% in
5the case of servicemen transferring prescription drugs or
6servicemen engaged in graphic arts production, of the aggregate
7annual total gross receipts from all sales of service, the tax
8imposed by this Act shall be based on the serviceman's cost
9price of the tangible personal property transferred incident to
10the sale of those services.
11    The tax shall be imposed at the rate of 1% on food prepared
12for immediate consumption and transferred incident to a sale of
13service subject to this Act or the Service Occupation Tax Act
14by an entity licensed under the Hospital Licensing Act, the
15Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
16Act, the Specialized Mental Health Rehabilitation Act of 2013,
17or the Child Care Act of 1969. The tax shall also be imposed at
18the rate of 1% on food for human consumption that is to be
19consumed off the premises where it is sold (other than
20alcoholic beverages, soft drinks, and food that has been
21prepared for immediate consumption and is not otherwise
22included in this paragraph) and prescription and
23nonprescription medicines, drugs, medical appliances, products
24classified as Class III medical devices by the United States
25Food and Drug Administration that are used for cancer treatment
26pursuant to a prescription, as well as any accessories and

 

 

HB3141- 16 -LRB100 10947 HLH 21184 b

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

 

 

HB3141- 17 -LRB100 10947 HLH 21184 b

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

 

 

HB3141- 18 -LRB100 10947 HLH 21184 b

1this paragraph, "over-the-counter-drug" means a drug for human
2use that contains a label that identifies the product as a drug
3as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
4label includes:
5        (A) A "Drug Facts" panel; or
6        (B) A statement of the "active ingredient(s)" with a
7    list of those ingredients contained in the compound,
8    substance or preparation.
9    Beginning on January 1, 2014 (the effective date of Public
10Act 98-122), "prescription and nonprescription medicines and
11drugs" includes medical cannabis purchased from a registered
12dispensing organization under the Compassionate Use of Medical
13Cannabis Pilot Program Act.
14(Source: P.A. 98-104, eff. 7-22-13; 98-122, eff. 1-1-14;
1598-756, eff. 7-16-14; 99-143, eff. 7-27-15; 99-180, eff.
167-29-15; 99-642, eff. 7-28-16; 99-858, eff. 8-19-16.)
 
17    Section 20. The Retailers' Occupation Tax Act is amended by
18changing Section 2-10 as follows:
 
19    (35 ILCS 120/2-10)
20    Sec. 2-10. Rate of tax. Unless otherwise provided in this
21Section, the tax imposed by this Act is at the rate of 6.25% of
22gross receipts from sales of tangible personal property made in
23the course of business.
24    Beginning on July 1, 2000 and through December 31, 2000,

 

 

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1with respect to motor fuel, as defined in Section 1.1 of the
2Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
3the Use Tax Act, the tax is imposed at the rate of 1.25%.
4    Beginning on August 6, 2010 through August 15, 2010, with
5respect to sales tax holiday items as defined in Section 2-8 of
6this Act, the tax is imposed at the rate of 1.25%.
7    Within 14 days after the effective date of this amendatory
8Act of the 91st General Assembly, each retailer of motor fuel
9and gasohol shall cause the following notice to be posted in a
10prominently visible place on each retail dispensing device that
11is used to dispense motor fuel or gasohol in the State of
12Illinois: "As of July 1, 2000, the State of Illinois has
13eliminated the State's share of sales tax on motor fuel and
14gasohol through December 31, 2000. The price on this pump
15should reflect the elimination of the tax." The notice shall be
16printed in bold print on a sign that is no smaller than 4
17inches by 8 inches. The sign shall be clearly visible to
18customers. Any retailer who fails to post or maintain a
19required sign through December 31, 2000 is guilty of a petty
20offense for which the fine shall be $500 per day per each
21retail premises where a violation occurs.
22    With respect to gasohol, as defined in the Use Tax Act, the
23tax imposed by this Act applies to (i) 70% of the proceeds of
24sales made on or after January 1, 1990, and before July 1,
252003, (ii) 80% of the proceeds of sales made on or after July
261, 2003 and on or before December 31, 2018, and (iii) 100% of

 

 

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1the proceeds of sales made thereafter. If, at any time,
2however, the tax under this Act on sales of gasohol, as defined
3in the Use Tax Act, is imposed at the rate of 1.25%, then the
4tax imposed by this Act applies to 100% of the proceeds of
5sales of gasohol made during that time.
6    With respect to majority blended ethanol fuel, as defined
7in the Use Tax Act, the tax imposed by this Act does not apply
8to the proceeds of sales made on or after July 1, 2003 and on or
9before December 31, 2018 but applies to 100% of the proceeds of
10sales made thereafter.
11    With respect to biodiesel blends, as defined in the Use Tax
12Act, with no less than 1% and no more than 10% biodiesel, the
13tax imposed by this Act applies to (i) 80% of the proceeds of
14sales made on or after July 1, 2003 and on or before December
1531, 2018 and (ii) 100% of the proceeds of sales made
16thereafter. If, at any time, however, the tax under this Act on
17sales of biodiesel blends, as defined in the Use Tax Act, with
18no less than 1% and no more than 10% biodiesel is imposed at
19the rate of 1.25%, then the tax imposed by this Act applies to
20100% of the proceeds of sales of biodiesel blends with no less
21than 1% and no more than 10% biodiesel made during that time.
22    With respect to 100% biodiesel, as defined in the Use Tax
23Act, and biodiesel blends, as defined in the Use Tax Act, with
24more than 10% but no more than 99% biodiesel, the tax imposed
25by this Act does not apply to the proceeds of sales made on or
26after July 1, 2003 and on or before December 31, 2018 but

 

 

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1applies to 100% of the proceeds of sales made 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,

 

 

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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.

 

 

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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(Source: P.A. 98-122, eff. 1-1-14; 99-143, eff. 7-27-15;
2499-858, eff. 8-19-16.)