Sen. Ram Villivalam

Filed: 5/23/2019

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3233

2    AMENDMENT NO. ______. Amend House Bill 3233 on page 2,
3immediately below line 9, by inserting the following:
 
4    "Section 10. 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

 

 

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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 July 1, 2017, and (iii) 100% of the proceeds of sales
24made after July 1, 2017 and prior to July 1, 2019, (iv) 80% of
25the proceeds of sales made on or after July 1, 2019 and prior
26to January 1, 2023, and (v) 100% of the proceeds of sales made

 

 

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1on or after January 1, 2023 thereafter. If, at any time,
2however, the tax under this Act on sales of gasohol is imposed
3at the rate of 1.25%, then the tax imposed by this Act applies
4to 100% of the proceeds of sales of gasohol made during that
5time.
6    With respect to majority blended ethanol fuel, the tax
7imposed by this Act does not apply to the proceeds of sales
8made on or after July 1, 2003 and on or before December 31,
92023 but applies to 100% of the proceeds of sales made
10thereafter.
11    With respect to biodiesel blends with no less than 1% and
12no more than 10% biodiesel, the tax imposed by this Act applies
13to (i) 80% of the proceeds of sales made on or after July 1,
142003 and on or before December 31, 2018 and (ii) 100% of the
15proceeds of sales made thereafter. If, at any time, however,
16the tax under this Act on sales of biodiesel blends with no
17less than 1% and no more than 10% biodiesel is imposed at the
18rate of 1.25%, then the tax imposed by this Act applies to 100%
19of the proceeds of sales of biodiesel blends with no less than
201% and no more than 10% biodiesel made during that time.
21    With respect to 100% biodiesel and biodiesel blends with
22more than 10% but no more than 99% biodiesel, the tax imposed
23by this Act does not apply to the proceeds of sales made on or
24after July 1, 2003 and on or before December 31, 2023 but
25applies to 100% of the proceeds of sales made thereafter.
26    With respect to food for human consumption that is to be

 

 

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

 

 

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

 

 

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

 

 

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1use.
2(Source: P.A. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16;
3100-22, eff. 7-6-17.)
 
4    Section 15. The Service Use Tax Act is amended by changing
5Section 3-10 as follows:
 
6    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
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
9the selling price of tangible personal property transferred as
10an incident to the sale of service, but, for the purpose of
11computing this tax, in no event shall the selling price be less
12than the cost price of the property to the serviceman.
13    Beginning on July 1, 2000 and through December 31, 2000,
14with respect to motor fuel, as defined in Section 1.1 of the
15Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
16the Use Tax Act, the tax is imposed at the rate of 1.25%.
17    With respect to gasohol, as defined in the Use Tax Act, the
18tax imposed by this Act applies to (i) 70% of the selling price
19of property transferred as an incident to the sale of service
20on or after January 1, 1990, and before July 1, 2003, (ii) 80%
21of the selling price of property transferred as an incident to
22the sale of service on or after July 1, 2003 and on or before
23July 1, 2017, and (iii) 100% of the selling price of property
24transferred as an incident to the sale of service after July 1,

 

 

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12017 and prior to July 1, 2019, (iv) 80% of the selling price
2of property transferred as an incident to the sale of service
3on and after July 1, 2019 and prior to January 1, 2023, and (v)
4100% of the selling price on and after January 1, 2023
5thereafter. If, at any time, however, the tax under this Act on
6sales of gasohol, as defined in the Use Tax Act, is imposed at
7the rate of 1.25%, then the tax imposed by this Act applies to
8100% of the proceeds of sales of gasohol made during that time.
9    With respect to majority blended ethanol fuel, as defined
10in the Use Tax Act, the tax imposed by this Act does not apply
11to the selling price of property transferred as an incident to
12the sale of service on or after July 1, 2003 and on or before
13December 31, 2023 but applies to 100% of the selling price
14thereafter.
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 selling price
18of property transferred as an incident to the sale of service
19on or after July 1, 2003 and on or before December 31, 2018 and
20(ii) 100% of the proceeds of the selling price thereafter. If,
21at any time, however, the tax under this Act on sales of
22biodiesel blends, as defined in the Use Tax Act, with no less
23than 1% and no more than 10% biodiesel is imposed at the rate
24of 1.25%, then the tax imposed by this Act applies to 100% of
25the proceeds of sales of biodiesel blends with no less than 1%
26and no more than 10% biodiesel made during that time.

 

 

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1    With respect to 100% biodiesel, as defined in the Use Tax
2Act, and biodiesel blends, as defined in the Use Tax Act, with
3more than 10% but no more than 99% biodiesel, the tax imposed
4by this Act does not apply to the proceeds of the selling price
5of property transferred as an incident to the sale of service
6on or after July 1, 2003 and on or before December 31, 2023 but
7applies to 100% of the selling price thereafter.
8    At the election of any registered serviceman made for each
9fiscal year, sales of service in which the aggregate annual
10cost price of tangible personal property transferred as an
11incident to the sales of service is less than 35%, or 75% in
12the case of servicemen transferring prescription drugs or
13servicemen engaged in graphic arts production, of the aggregate
14annual total gross receipts from all sales of service, the tax
15imposed by this Act shall be based on the serviceman's cost
16price of the tangible personal property transferred as an
17incident to the sale of those services.
18    The tax shall be imposed at the rate of 1% on food prepared
19for immediate consumption and transferred incident to a sale of
20service subject to this Act or the Service Occupation Tax Act
21by an entity licensed under the Hospital Licensing Act, the
22Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
23Act, the Specialized Mental Health Rehabilitation Act of 2013,
24or the Child Care Act of 1969. The tax shall also be imposed at
25the rate of 1% on food for human consumption that is to be
26consumed off the premises where it is sold (other than

 

 

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

 

 

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

 

 

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1drugs" does not include grooming and hygiene products. For
2purposes of this Section, "grooming and hygiene products"
3includes, but is not limited to, soaps and cleaning solutions,
4shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
5lotions and screens, unless those products are available by
6prescription only, regardless of whether the products meet the
7definition of "over-the-counter-drugs". For the purposes of
8this paragraph, "over-the-counter-drug" means a drug for human
9use that contains a label that identifies the product as a drug
10as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
11label includes:
12        (A) A "Drug Facts" panel; or
13        (B) A statement of the "active ingredient(s)" with a
14    list of those ingredients contained in the compound,
15    substance or preparation.
16    Beginning on January 1, 2014 (the effective date of Public
17Act 98-122), "prescription and nonprescription medicines and
18drugs" includes medical cannabis purchased from a registered
19dispensing organization under the Compassionate Use of Medical
20Cannabis Pilot Program Act.
21    If the property that is acquired from a serviceman is
22acquired outside Illinois and used outside Illinois before
23being brought to Illinois for use here and is taxable under
24this Act, the "selling price" on which the tax is computed
25shall be reduced by an amount that represents a reasonable
26allowance for depreciation for the period of prior out-of-state

 

 

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1use.
2(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
399-642, eff. 7-28-16; 99-858, eff. 8-19-16; 100-22, eff.
47-6-17.)
 
5    Section 20. The Service Occupation Tax Act is amended by
6changing Section 3-10 as follows:
 
7    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
8    Sec. 3-10. Rate of tax. Unless otherwise provided in this
9Section, the tax imposed by this Act is at the rate of 6.25% of
10the "selling price", as defined in Section 2 of the Service Use
11Tax Act, of the tangible personal property. For the purpose of
12computing this tax, in no event shall the "selling price" be
13less than the cost price to the serviceman of the tangible
14personal property transferred. The selling price of each item
15of tangible personal property transferred as an incident of a
16sale of service may be shown as a distinct and separate item on
17the serviceman's billing to the service customer. If the
18selling price is not so shown, the selling price of the
19tangible personal property is deemed to be 50% of the
20serviceman's entire billing to the service customer. When,
21however, a serviceman contracts to design, develop, and produce
22special order machinery or equipment, the tax imposed by this
23Act shall be based on the serviceman's cost price of the
24tangible personal property transferred incident to the

 

 

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1completion of the contract.
2    Beginning on July 1, 2000 and through December 31, 2000,
3with respect to motor fuel, as defined in Section 1.1 of the
4Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
5the Use Tax Act, the tax is imposed at the rate of 1.25%.
6    With respect to gasohol, as defined in the Use Tax Act, the
7tax imposed by this Act shall apply to (i) 70% of the cost
8price of property transferred as an incident to the sale of
9service on or after January 1, 1990, and before July 1, 2003,
10(ii) 80% of the selling price of property transferred as an
11incident to the sale of service on or after July 1, 2003 and on
12or before July 1, 2017, and (iii) 100% of the cost price after
13July 1, 2017 and prior to July 1, 2019, (iv) 80% of the cost
14price of property transferred as an incident to the sale of
15service on and after July 1, 2019 and prior to January 1, 2023,
16and (v) 100% of the cost price of property transferred as an
17incident to the sale of service on and after January 1, 2023
18thereafter. If, at any time, however, the tax under this Act on
19sales of gasohol, as defined in the Use Tax Act, is imposed at
20the rate of 1.25%, then the tax imposed by this Act applies to
21100% of the proceeds of sales of gasohol made during that time.
22    With respect to majority blended ethanol fuel, as defined
23in the Use Tax Act, the tax imposed by this Act does not apply
24to the selling price of property transferred as an incident to
25the sale of service on or after July 1, 2003 and on or before
26December 31, 2023 but applies to 100% of the selling price

 

 

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1thereafter.
2    With respect to biodiesel blends, as defined in the Use Tax
3Act, with no less than 1% and no more than 10% biodiesel, the
4tax imposed by this Act applies to (i) 80% of the selling price
5of property transferred as an incident to the sale of service
6on or after July 1, 2003 and on or before December 31, 2018 and
7(ii) 100% of the proceeds of the selling price thereafter. If,
8at any time, however, the tax under this Act on sales of
9biodiesel blends, as defined in the Use Tax Act, with no less
10than 1% and no more than 10% biodiesel is imposed at the rate
11of 1.25%, then the tax imposed by this Act applies to 100% of
12the proceeds of sales of biodiesel blends with no less than 1%
13and no more than 10% biodiesel made during that time.
14    With respect to 100% biodiesel, as defined in the Use Tax
15Act, and biodiesel blends, as defined in the Use Tax Act, with
16more than 10% but no more than 99% biodiesel material, the tax
17imposed by this Act does not apply to the proceeds of the
18selling price of property transferred as an incident to the
19sale of service on or after July 1, 2003 and on or before
20December 31, 2023 but applies to 100% of the selling price
21thereafter.
22    At the election of any registered serviceman made for each
23fiscal year, sales of service in which the aggregate annual
24cost price of tangible personal property transferred as an
25incident to the sales of service is less than 35%, or 75% in
26the case of servicemen transferring prescription drugs or

 

 

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1servicemen engaged in graphic arts production, of the aggregate
2annual total gross receipts from all sales of service, the tax
3imposed by this Act shall be based on the serviceman's cost
4price of the tangible personal property transferred incident to
5the sale of those services.
6    The tax shall be imposed at the rate of 1% on food prepared
7for immediate consumption and transferred incident to a sale of
8service subject to this Act or the Service Occupation Tax Act
9by an entity licensed under the Hospital Licensing Act, the
10Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
11Act, the Specialized Mental Health Rehabilitation Act of 2013,
12or the Child Care Act of 1969. The tax shall also be imposed at
13the rate of 1% on food for human consumption that is to be
14consumed off the premises where it is sold (other than
15alcoholic beverages, soft drinks, and food that has been
16prepared for immediate consumption and is not otherwise
17included in this paragraph) and prescription and
18nonprescription medicines, drugs, medical appliances, products
19classified as Class III medical devices by the United States
20Food and Drug Administration that are used for cancer treatment
21pursuant to a prescription, as well as any accessories and
22components related to those devices, modifications to a motor
23vehicle for the purpose of rendering it usable by a person with
24a disability, and insulin, urine testing materials, syringes,
25and needles used by diabetics, for human use. For the purposes
26of this Section, until September 1, 2009: the term "soft

 

 

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

 

 

10100HB3233sam002- 18 -LRB101 11081 HLH 60996 a

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

 

 

10100HB3233sam002- 19 -LRB101 11081 HLH 60996 a

1        (B) A statement of the "active ingredient(s)" with a
2    list of those ingredients contained in the compound,
3    substance or preparation.
4    Beginning on January 1, 2014 (the effective date of Public
5Act 98-122), "prescription and nonprescription medicines and
6drugs" includes medical cannabis purchased from a registered
7dispensing organization under the Compassionate Use of Medical
8Cannabis Pilot Program Act.
9(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
1099-642, eff. 7-28-16; 99-858, eff. 8-19-16; 100-22, eff.
117-6-17.)
 
12    Section 25. The Retailers' Occupation Tax Act is amended by
13changing Section 2-10 as follows:
 
14    (35 ILCS 120/2-10)
15    Sec. 2-10. Rate of tax. Unless otherwise provided in this
16Section, the tax imposed by this Act is at the rate of 6.25% of
17gross receipts from sales of tangible personal property made in
18the course of business.
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    Beginning on August 6, 2010 through August 15, 2010, with
24respect to sales tax holiday items as defined in Section 2-8 of

 

 

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1this Act, the tax is imposed at the rate of 1.25%.
2    Within 14 days after the effective date of this amendatory
3Act of the 91st General Assembly, each retailer of motor fuel
4and gasohol shall cause the following notice to be posted in a
5prominently visible place on each retail dispensing device that
6is used to dispense motor fuel or gasohol in the State of
7Illinois: "As of July 1, 2000, the State of Illinois has
8eliminated the State's share of sales tax on motor fuel and
9gasohol through December 31, 2000. The price on this pump
10should reflect the elimination of the tax." The notice shall be
11printed in bold print on a sign that is no smaller than 4
12inches by 8 inches. The sign shall be clearly visible to
13customers. Any retailer who fails to post or maintain a
14required sign through December 31, 2000 is guilty of a petty
15offense for which the fine shall be $500 per day per each
16retail premises where a violation occurs.
17    With respect to gasohol, as defined in the Use Tax Act, the
18tax imposed by this Act applies to (i) 70% of the proceeds of
19sales made on or after January 1, 1990, and before July 1,
202003, (ii) 80% of the proceeds of sales made on or after July
211, 2003 and on or before July 1, 2017, and (iii) 100% of the
22proceeds of sales made after July 1, 2017 and prior to July 1,
232019, (iv) 80% of the proceeds of sales made on or after July
241, 2019 and prior to January 1, 2023, and (v) 100% of the
25proceeds of sales made on or after January 1, 2023 thereafter.
26If, at any time, however, the tax under this Act on sales of

 

 

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1gasohol, as defined in the Use Tax Act, is imposed at the rate
2of 1.25%, then the tax imposed by this Act applies to 100% of
3the proceeds of sales of gasohol made during that time.
4    With respect to majority blended ethanol fuel, as defined
5in the Use Tax Act, the tax imposed by this Act does not apply
6to the proceeds of sales made on or after July 1, 2003 and on or
7before December 31, 2023 but applies to 100% of the proceeds of
8sales made thereafter.
9    With respect to biodiesel blends, as defined in the Use Tax
10Act, with no less than 1% and no more than 10% biodiesel, the
11tax imposed by this Act applies to (i) 80% of the proceeds of
12sales made on or after July 1, 2003 and on or before December
1331, 2018 and (ii) 100% of the proceeds of sales made
14thereafter. If, at any time, however, the tax under this Act on
15sales of biodiesel blends, as defined in the Use Tax Act, with
16no less than 1% and no more than 10% biodiesel is imposed at
17the rate of 1.25%, then the tax imposed by this Act applies to
18100% of the proceeds of sales of biodiesel blends with no less
19than 1% and no more than 10% biodiesel made during that time.
20    With respect to 100% biodiesel, as defined in the Use Tax
21Act, and biodiesel blends, as defined in the Use Tax Act, with
22more than 10% but no more than 99% biodiesel, the tax imposed
23by this Act does not apply to the proceeds of sales made on or
24after July 1, 2003 and on or before December 31, 2023 but
25applies to 100% of the proceeds of sales made thereafter.
26    With respect to food for human consumption that is to be

 

 

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

 

 

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

 

 

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1drugs" does not include grooming and hygiene products. For
2purposes of this Section, "grooming and hygiene products"
3includes, but is not limited to, soaps and cleaning solutions,
4shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
5lotions and screens, unless those products are available by
6prescription only, regardless of whether the products meet the
7definition of "over-the-counter-drugs". For the purposes of
8this paragraph, "over-the-counter-drug" means a drug for human
9use that contains a label that identifies the product as a drug
10as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
11label includes:
12        (A) A "Drug Facts" panel; or
13        (B) A statement of the "active ingredient(s)" with a
14    list of those ingredients contained in the compound,
15    substance or preparation.
16    Beginning on the effective date of this amendatory Act of
17the 98th General Assembly, "prescription and nonprescription
18medicines and drugs" includes medical cannabis purchased from a
19registered dispensing organization under the Compassionate Use
20of Medical Cannabis Pilot Program Act.
21(Source: P.A. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16;
22100-22, eff. 7-6-17.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.".