97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5631

 

Introduced 2/15/2012, by Rep. Frank J. Mautino

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 2505/2505-250  was 20 ILCS 2505/39c
35 ILCS 105/3-10
35 ILCS 105/3-61
35 ILCS 110/3-10  from Ch. 120, par. 439.33-10
35 ILCS 110/3-51
35 ILCS 115/2d
35 ILCS 115/3-10  from Ch. 120, par. 439.103-10
35 ILCS 120/2-10
35 ILCS 120/2-51
35 ILCS 120/5  from Ch. 120, par. 444
35 ILCS 130/18c
415 ILCS 5/55.8  from Ch. 111 1/2, par. 1055.8

    Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Makes a technical correction concerning a cross-reference. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Makes a technical correction concerning an effective date for a change in the definition of "food for human consumption that is to be consumed off the premises where it is sold. Provides that, in the case of a return that is not filed at the required time, a notice of tax liability may be issued on and after each July 1, and January 1 for returns filed more than 3 years prior to that July 1 or January 1. Amends the Cigarette Tax Act. Provides that the penalty for possession of less than 10 and not more than 100 original packages of contraband cigarettes is $20 (instead of $10) per package. Effective July 1, 2012.


LRB097 17992 HLH 63215 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5631LRB097 17992 HLH 63215 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 Department of Revenue Law of the Civil
5Administrative Code of Illinois is amended by changing Section
62505-250 as follows:
 
7    (20 ILCS 2505/2505-250)  (was 20 ILCS 2505/39c)
8    Sec. 2505-250. Compromising debts due to the State. Under
9no circumstances shall any officer or employee of the
10Department compromise any debt due to this State, except in
11case of actions of the Director after review by the board of
12appeals provided for by Section 2505-505 95-505. However,
13claims or accounts receivable of less than $1,000 may be
14written off the Department's records and cancelled by the
15Department without complying with the provisions of Section 2
16of the Uncollected State Claims Act when the Department
17determines that the cost of collecting the claim or account
18would exceed the amount to be collected. The Department shall
19submit to the Comptroller a list of all such claims or accounts
20written off the Department's records.
21(Source: P.A. 91-239, eff. 1-1-00.)
 
22    Section 10. The Use Tax Act is amended by changing Sections

 

 

HB5631- 2 -LRB097 17992 HLH 63215 b

13-10 and 3-61 as follows:
 
2    (35 ILCS 105/3-10)
3    (Text of Section before amendment by P.A. 97-636)
4    Sec. 3-10. Rate of tax. Unless otherwise provided in this
5Section, the tax imposed by this Act is at the rate of 6.25% of
6either the selling price or the fair market value, if any, of
7the tangible personal property. In all cases where property
8functionally used or consumed is the same as the property that
9was purchased at retail, then the tax is imposed on the selling
10price of the property. In all cases where property functionally
11used or consumed is a by-product or waste product that has been
12refined, manufactured, or produced from property purchased at
13retail, then the tax is imposed on the lower of the fair market
14value, if any, of the specific property so used in this State
15or on the selling price of the property purchased at retail.
16For purposes of this Section "fair market value" means the
17price at which property would change hands between a willing
18buyer and a willing seller, neither being under any compulsion
19to buy or sell and both having reasonable knowledge of the
20relevant facts. The fair market value shall be established by
21Illinois sales by the taxpayer of the same property as that
22functionally used or consumed, or if there are no such sales by
23the taxpayer, then comparable sales or purchases of property of
24like kind and character in Illinois.
25    Beginning on July 1, 2000 and through December 31, 2000,

 

 

HB5631- 3 -LRB097 17992 HLH 63215 b

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 3-6 of
6this Act, the tax is imposed at the rate of 1.25%.
7    With respect to gasohol, the tax imposed by this Act
8applies to (i) 70% of the proceeds of sales made on or after
9January 1, 1990, and before July 1, 2003, (ii) 80% of the
10proceeds of sales made on or after July 1, 2003 and on or
11before December 31, 2013, and (iii) 100% of the proceeds of
12sales made thereafter. If, at any time, however, the tax under
13this Act on sales of gasohol is imposed at the rate of 1.25%,
14then the tax imposed by this Act applies to 100% of the
15proceeds of sales of gasohol made during that time.
16    With respect to majority blended ethanol fuel, the tax
17imposed by this Act does not apply to the proceeds of sales
18made on or after July 1, 2003 and on or before December 31,
192013 but applies to 100% of the proceeds of sales made
20thereafter.
21    With respect to biodiesel blends with no less than 1% and
22no more than 10% biodiesel, the tax imposed by this Act applies
23to (i) 80% of the proceeds of sales made on or after July 1,
242003 and on or before December 31, 2013 and (ii) 100% of the
25proceeds of sales made thereafter. If, at any time, however,
26the tax under this Act on sales of biodiesel blends with no

 

 

HB5631- 4 -LRB097 17992 HLH 63215 b

1less than 1% and no more than 10% biodiesel is imposed at the
2rate of 1.25%, then the tax imposed by this Act applies to 100%
3of the proceeds of sales of biodiesel blends with no less than
41% and no more than 10% biodiesel made during that time.
5    With respect to 100% biodiesel and biodiesel blends with
6more than 10% but no more than 99% biodiesel, the tax imposed
7by this Act does not apply to the proceeds of sales made on or
8after July 1, 2003 and on or before December 31, 2013 but
9applies to 100% of the proceeds of sales made thereafter.
10    With respect to food for human consumption that is to be
11consumed off the premises where it is sold (other than
12alcoholic beverages, soft drinks, and food that has been
13prepared for immediate consumption) and prescription and
14nonprescription medicines, drugs, medical appliances,
15modifications to a motor vehicle for the purpose of rendering
16it usable by a disabled person, and insulin, urine testing
17materials, syringes, and needles used by diabetics, for human
18use, the tax is imposed at the rate of 1%. For the purposes of
19this Section, until September 1, 2009: the term "soft drinks"
20means any complete, finished, ready-to-use, non-alcoholic
21drink, whether carbonated or not, including but not limited to
22soda water, cola, fruit juice, vegetable juice, carbonated
23water, and all other preparations commonly known as soft drinks
24of whatever kind or description that are contained in any
25closed or sealed bottle, can, carton, or container, regardless
26of size; but "soft drinks" does not include coffee, tea,

 

 

HB5631- 5 -LRB097 17992 HLH 63215 b

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

 

 

HB5631- 6 -LRB097 17992 HLH 63215 b

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

 

 

HB5631- 7 -LRB097 17992 HLH 63215 b

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. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
5eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10.)
 
6    (Text of Section after amendment by P.A. 97-636)
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
24Illinois sales by the taxpayer of the same property as that
25functionally used or consumed, or if there are no such sales by

 

 

HB5631- 8 -LRB097 17992 HLH 63215 b

1the taxpayer, then comparable sales or purchases of property of
2like kind and character in Illinois.
3    Beginning on July 1, 2000 and through December 31, 2000,
4with respect to motor fuel, as defined in Section 1.1 of the
5Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
6the Use Tax Act, the tax is imposed at the rate of 1.25%.
7    Beginning on August 6, 2010 through August 15, 2010, with
8respect to sales tax holiday items as defined in Section 3-6 of
9this Act, the tax is imposed at the rate of 1.25%.
10    With respect to gasohol, the tax imposed by this Act
11applies to (i) 70% of the proceeds of sales made on or after
12January 1, 1990, and before July 1, 2003, (ii) 80% of the
13proceeds of sales made on or after July 1, 2003 and on or
14before December 31, 2018, and (iii) 100% of the proceeds of
15sales made thereafter. If, at any time, however, the tax under
16this Act on sales of gasohol is imposed at the rate of 1.25%,
17then the tax imposed by this Act applies to 100% of the
18proceeds of sales of gasohol made during that time.
19    With respect to majority blended ethanol fuel, the tax
20imposed by this Act does not apply to the proceeds of sales
21made on or after July 1, 2003 and on or before December 31,
222018 but applies to 100% of the proceeds of sales made
23thereafter.
24    With respect to biodiesel blends with no less than 1% and
25no more than 10% biodiesel, the tax imposed by this Act applies
26to (i) 80% of the proceeds of sales made on or after July 1,

 

 

HB5631- 9 -LRB097 17992 HLH 63215 b

12003 and on or before December 31, 2018 and (ii) 100% of the
2proceeds of sales made thereafter. If, at any time, however,
3the tax under this Act on sales of biodiesel blends with no
4less than 1% and no more than 10% biodiesel is imposed at the
5rate of 1.25%, then the tax imposed by this Act applies to 100%
6of the proceeds of sales of biodiesel blends with no less than
71% and no more than 10% biodiesel made during that time.
8    With respect to 100% biodiesel and biodiesel blends with
9more than 10% but no more than 99% biodiesel, the tax imposed
10by this Act does not apply to the proceeds of sales made on or
11after July 1, 2003 and on or before December 31, 2018 but
12applies to 100% of the proceeds of sales made thereafter.
13    With respect to 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 prescription and
17nonprescription medicines, drugs, medical appliances,
18modifications to a motor vehicle for the purpose of rendering
19it usable by a disabled person, and insulin, urine testing
20materials, syringes, and needles used by diabetics, for human
21use, the tax is imposed at the rate of 1%. For the purposes of
22this Section, until September 1, 2009: the term "soft drinks"
23means any complete, finished, ready-to-use, non-alcoholic
24drink, whether carbonated or not, including but not limited to
25soda water, cola, fruit juice, vegetable juice, carbonated
26water, and all other preparations commonly known as soft drinks

 

 

HB5631- 10 -LRB097 17992 HLH 63215 b

1of whatever kind or description that are contained in any
2closed or sealed bottle, can, carton, or container, regardless
3of size; but "soft drinks" does not include coffee, tea,
4non-carbonated water, infant formula, milk or milk products as
5defined in the Grade A Pasteurized Milk and Milk Products Act,
6or drinks containing 50% or more natural fruit or vegetable
7juice.
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 September August 1, 2009, and notwithstanding any
15other provisions of this Act, "food for human consumption that
16is to be consumed off the premises where it is sold" includes
17all food 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
20September August 1, 2009, and notwithstanding any other
21provisions of this Act, "food for human consumption that is to
22be consumed off the premises where it is sold" includes all
23food sold through a vending machine, except soft drinks, candy,
24and food products that are dispensed hot from a vending
25machine, regardless of the location of the vending machine.
26    Notwithstanding any other provisions of this Act,

 

 

HB5631- 11 -LRB097 17992 HLH 63215 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    If the property that is purchased at retail from a retailer

 

 

HB5631- 12 -LRB097 17992 HLH 63215 b

1is acquired outside Illinois and used outside Illinois before
2being brought to Illinois for use here and is taxable under
3this Act, the "selling price" on which the tax is computed
4shall be reduced by an amount that represents a reasonable
5allowance for depreciation for the period of prior out-of-state
6use.
7(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
8eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10;
997-636, eff. 6-1-12.)
 
10    (35 ILCS 105/3-61)
11    Sec. 3-61. Motor vehicles; trailers; use as rolling stock
12definition.
13    (a) Through June 30, 2003, "use as rolling stock moving in
14interstate commerce" in subsections (b) and (c) of Section 3-55
15means for motor vehicles, as defined in Section 1-146 of the
16Illinois Vehicle Code, and trailers, as defined in Section
171-209 of the Illinois Vehicle Code, when on 15 or more
18occasions in a 12-month period the motor vehicle and trailer
19has carried persons or property for hire in interstate
20commerce, even just between points in Illinois, if the motor
21vehicle and trailer transports persons whose journeys or
22property whose shipments originate or terminate outside
23Illinois. This definition applies to all property purchased for
24the purpose of being attached to those motor vehicles or
25trailers as a part thereof.

 

 

HB5631- 13 -LRB097 17992 HLH 63215 b

1    (b) On and after July 1, 2003 and through June 30, 2004,
2"use as rolling stock moving in interstate commerce" in
3paragraphs (b) and (c) of Section 3-55 occurs for motor
4vehicles, as defined in Section 1-146 of the Illinois Vehicle
5Code, when during a 12-month period the rolling stock has
6carried persons or property for hire in interstate commerce for
751% of its total trips and transports persons whose journeys or
8property whose shipments originate or terminate outside
9Illinois. Trips that are only between points in Illinois shall
10not be counted as interstate trips when calculating whether the
11tangible personal property qualifies for the exemption but such
12trips shall be included in total trips taken.
13    (c) Beginning July 1, 2004, "use as rolling stock moving in
14interstate commerce" in paragraphs (b) and (c) of Section 3-55
15occurs for motor vehicles, as defined in Section 1-146 of the
16Illinois Vehicle Code, when during a 12-month period the
17rolling stock has carried persons or property for hire in
18interstate commerce for greater than 50% of its total trips for
19that period or for greater than 50% of its total miles for that
20period. The person claiming the exemption shall make an
21election at the time of purchase to use either the trips or
22mileage method. Persons who purchased motor vehicles prior to
23July 1, 2004 shall make an election to use either the trips or
24mileage method and document that election in their books and
25records. If no election is made under this subsection to use
26the trips or mileage method, the person shall be deemed to have

 

 

HB5631- 14 -LRB097 17992 HLH 63215 b

1chosen the mileage method. Any election to use either the trips
2or mileage method will remain in effect for that motor vehicle
3for any period for which the Department may issue a notice of
4tax liability under this Act.
5    For purposes of determining qualifying trips or miles,
6motor vehicles that carry persons or property for hire, even
7just between points in Illinois, will be considered used for
8hire in interstate commerce if the motor vehicle transports
9persons whose journeys or property whose shipments originate or
10terminate outside Illinois. The exemption for motor vehicles
11used as rolling stock moving in interstate commerce may be
12claimed only for the following vehicles: (i) motor vehicles
13whose gross vehicle weight rating exceeds 16,000 pounds; and
14(ii) limousines, as defined in Section 1-139.1 of the Illinois
15Vehicle Code. This definition applies to all property purchased
16for the purpose of being attached to those motor vehicles as a
17part thereof.
18    (d) Beginning July 1, 2004, "use as rolling stock moving in
19interstate commerce" in paragraphs (b) and (c) of Section 3-55
20occurs for trailers, as defined in Section 1-209 of the
21Illinois Vehicle Code, semitrailers as defined in Section 1-187
22of the Illinois Vehicle Code, and pole trailers as defined in
23Section 1-161 of the Illinois Vehicle Code, when during a
2412-month period the rolling stock has carried persons or
25property for hire in interstate commerce for greater than 50%
26of its total trips for that period or for greater than 50% of

 

 

HB5631- 15 -LRB097 17992 HLH 63215 b

1its total miles for that period. The person claiming the
2exemption for a trailer or trailers that will not be dedicated
3to a motor vehicle or group of motor vehicles shall make an
4election at the time of purchase to use either the trips or
5mileage method. Persons who purchased trailers prior to July 1,
62004 that are not dedicated to a motor vehicle or group of
7motor vehicles shall make an election to use either the trips
8or mileage method and document that election in their books and
9records. If no election is made under this subsection to use
10the trips or mileage method, the person shall be deemed to have
11chosen the mileage method. Any election to use either the trips
12or mileage method will remain in effect for that trailer for
13any period for which the Department may issue a notice of tax
14liability under this Act.
15    For purposes of determining qualifying trips or miles,
16trailers, semitrailers, or pole trailers that carry property
17for hire, even just between points in Illinois, will be
18considered used for hire in interstate commerce if the
19trailers, semitrailers, or pole trailers transport property
20whose shipments originate or terminate outside Illinois. This
21definition applies to all property purchased for the purpose of
22being attached to those trailers, semitrailers, or pole
23trailers as a part thereof. In lieu of a person providing
24documentation regarding the qualifying use of each individual
25trailer, semitrailer, or pole trailer, that person may document
26such qualifying use by providing documentation of the

 

 

HB5631- 16 -LRB097 17992 HLH 63215 b

1following:
2        (1) If a trailer, semitrailer, or pole trailer is
3    dedicated to a motor vehicle that qualifies as rolling
4    stock moving in interstate commerce under subsection (c) of
5    this Section, then that trailer, semitrailer, or pole
6    trailer qualifies as rolling stock moving in interstate
7    commerce under this subsection.
8        (2) If a trailer, semitrailer, or pole trailer is
9    dedicated to a group of motor vehicles that all qualify as
10    rolling stock moving in interstate commerce under
11    subsection (c) of this Section, then that trailer,
12    semitrailer, or pole trailer qualifies as rolling stock
13    moving in interstate commerce under this subsection.
14        (3) If one or more trailers, semitrailers, or pole
15    trailers are dedicated to a group of motor vehicles and not
16    all of those motor vehicles in that group qualify as
17    rolling stock moving in interstate commerce under
18    subsection (c) of this Section, then the percentage of
19    those trailers, semitrailers, or pole trailers that
20    qualifies as rolling stock moving in interstate commerce
21    under this subsection is equal to the percentage of those
22    motor vehicles in that group that qualify as rolling stock
23    moving in interstate commerce under subsection (c) of this
24    Section to which those trailers, semitrailers, or pole
25    trailers are dedicated. However, to determine the
26    qualification for the exemption provided under this item

 

 

HB5631- 17 -LRB097 17992 HLH 63215 b

1    (3), the mathematical application of the qualifying
2    percentage to one or more trailers, semitrailers, or pole
3    trailers under this subpart shall not be allowed as to any
4    fraction of a trailer, semitrailer, or pole trailer.
5    (e) Beginning July 1, 2012, "use as rolling stock moving in
6interstate commerce" in paragraphs (b) and (c) of Section 3-55
7occurs for aircraft and watercraft when, during a 12-month
8period, the rolling stock has carried persons or property for
9hire in interstate commerce for greater than 50% of its total
10trips for that period or for greater than 50% of its total
11miles for that period. The person claiming the exemption shall
12make an election at the time of purchase to use either the
13trips or mileage method. Persons who purchased aircraft or
14watercraft prior to July 1, 2012 shall make an election to use
15either the trips or mileage method and document that election
16in their books and records. If no election is made under this
17subsection to use the trips or mileage method, the person shall
18be deemed to have chosen the mileage method. For aircraft,
19flight hours may be used in lieu of recording miles in
20determining whether the aircraft meets the mileage test in this
21subsection. For watercraft, nautical miles or trip hours may be
22used in lieu of recording miles in determining whether the
23watercraft meets the mileage test in this subsection.
24    (f) Any election to use either the trips or mileage method
25made under the provisions of subsections (c), (d), or (e) of
26this Section will remain in effect for the life of that item.

 

 

HB5631- 18 -LRB097 17992 HLH 63215 b

1(Source: P.A. 95-528, eff. 8-28-07.)
 
2    Section 15. The Service Use Tax Act is amended by changing
3Sections 3-10 and 3-51 as follows:
 
4    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
5    (Text of Section before amendment by P.A. 97-636)
6    Sec. 3-10. Rate of tax. Unless otherwise provided in this
7Section, the tax imposed by this Act is at the rate of 6.25% of
8the selling price of tangible personal property transferred as
9an incident to the sale of service, but, for the purpose of
10computing this tax, in no event shall the selling price be less
11than the cost price of the property to the serviceman.
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 applies to (i) 70% of the selling price
18of property transferred as an incident to the sale of service
19on or after January 1, 1990, and before July 1, 2003, (ii) 80%
20of the selling price of property transferred as an incident to
21the sale of service on or after July 1, 2003 and on or before
22December 31, 2013, and (iii) 100% of the selling 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

 

 

HB5631- 19 -LRB097 17992 HLH 63215 b

1the rate of 1.25%, then the tax imposed by this Act applies to
2100% of the proceeds of sales of gasohol made during that time.
3    With respect to majority blended ethanol fuel, as defined
4in the Use Tax Act, the tax imposed by this Act does not apply
5to the selling price of property transferred as an incident to
6the sale of service on or after July 1, 2003 and on or before
7December 31, 2013 but applies to 100% of the selling price
8thereafter.
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 selling price
12of property transferred as an incident to the sale of service
13on or after July 1, 2003 and on or before December 31, 2013 and
14(ii) 100% of the proceeds of the selling price thereafter. If,
15at any time, however, the tax under this Act on sales of
16biodiesel blends, as defined in the Use Tax Act, with no less
17than 1% and no more than 10% biodiesel is imposed at the rate
18of 1.25%, then the tax imposed by this Act applies to 100% of
19the proceeds of sales of biodiesel blends with no less than 1%
20and no more than 10% biodiesel made during that time.
21    With respect to 100% biodiesel, as defined in the Use Tax
22Act, and biodiesel blends, as defined in the Use Tax Act, with
23more than 10% but no more than 99% biodiesel, the tax imposed
24by this Act does not apply to the proceeds of the selling price
25of property transferred as an incident to the sale of service
26on or after July 1, 2003 and on or before December 31, 2013 but

 

 

HB5631- 20 -LRB097 17992 HLH 63215 b

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

 

 

HB5631- 21 -LRB097 17992 HLH 63215 b

1human use. For the purposes of this Section, until September 1,
22009: the term "soft drinks" means any complete, finished,
3ready-to-use, non-alcoholic drink, whether carbonated or not,
4including but not limited to soda water, cola, fruit juice,
5vegetable juice, carbonated water, and all other preparations
6commonly known as soft drinks of whatever kind or description
7that are contained in any closed or sealed bottle, can, carton,
8or container, regardless of size; but "soft drinks" does not
9include coffee, tea, non-carbonated water, infant formula,
10milk or milk products as defined in the Grade A Pasteurized
11Milk and Milk Products Act, or drinks containing 50% or more
12natural 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 September August 1, 2009, and notwithstanding any
20other provisions of this Act, "food for human consumption that
21is to be consumed off the premises where it is sold" includes
22all food 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
25September August 1, 2009, and notwithstanding any other
26provisions of this Act, "food for human consumption that is to

 

 

HB5631- 22 -LRB097 17992 HLH 63215 b

1be consumed off the premises where it is sold" includes all
2food sold through a vending machine, except soft drinks, candy,
3and food products that are dispensed hot from a vending
4machine, regardless 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:

 

 

HB5631- 23 -LRB097 17992 HLH 63215 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    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. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
13eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38,
14eff. 6-28-11; 97-227, eff. 1-1-12; revised 9-12-11.)
 
15    (Text of Section after amendment by P.A. 97-636)
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 of tangible personal property transferred as
19an incident to the sale of service, but, for the purpose of
20computing this tax, in no event shall the selling price be less
21than the cost price of the property to the serviceman.
22    Beginning on July 1, 2000 and through December 31, 2000,
23with respect to motor fuel, as defined in Section 1.1 of the
24Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
25the Use Tax Act, the tax is imposed at the rate of 1.25%.

 

 

HB5631- 24 -LRB097 17992 HLH 63215 b

1    With respect to gasohol, as defined in the Use Tax Act, the
2tax imposed by this Act applies to (i) 70% of the selling price
3of property transferred as an incident to the sale of service
4on or after January 1, 1990, and before July 1, 2003, (ii) 80%
5of the selling price of property transferred as an incident to
6the sale of service on or after July 1, 2003 and on or before
7December 31, 2018, and (iii) 100% of the selling price
8thereafter. If, at any time, however, the tax under this Act on
9sales of gasohol, as defined in the Use Tax Act, is imposed at
10the rate of 1.25%, then the tax imposed by this Act applies to
11100% of the proceeds of sales of gasohol made during that time.
12    With respect to majority blended ethanol fuel, as defined
13in the Use Tax Act, the tax imposed by this Act does not apply
14to the selling price of property transferred as an incident to
15the sale of service on or after July 1, 2003 and on or before
16December 31, 2018 but applies to 100% of the selling price
17thereafter.
18    With respect to biodiesel blends, as defined in the Use Tax
19Act, with no less than 1% and no more than 10% biodiesel, the
20tax imposed by this Act applies to (i) 80% of the selling price
21of property transferred as an incident to the sale of service
22on or after July 1, 2003 and on or before December 31, 2018 and
23(ii) 100% of the proceeds of the selling price thereafter. If,
24at any time, however, the tax under this Act on sales of
25biodiesel blends, as defined in the Use Tax Act, with no less
26than 1% and no more than 10% biodiesel is imposed at the rate

 

 

HB5631- 25 -LRB097 17992 HLH 63215 b

1of 1.25%, then the tax imposed by this Act applies to 100% of
2the proceeds of sales of biodiesel blends with no less than 1%
3and no more than 10% biodiesel made during that time.
4    With respect to 100% biodiesel, as defined in the Use Tax
5Act, and biodiesel blends, as defined in the Use Tax Act, with
6more than 10% but no more than 99% biodiesel, the tax imposed
7by this Act does not apply to the proceeds 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 but
10applies to 100% of the selling price thereafter.
11    At the election of any registered serviceman made for each
12fiscal year, sales of service in which the aggregate annual
13cost price of tangible personal property transferred as an
14incident to the sales of service is less than 35%, or 75% in
15the case of servicemen transferring prescription drugs or
16servicemen engaged in graphic arts production, of the aggregate
17annual total gross receipts from all sales of service, the tax
18imposed by this Act shall be based on the serviceman's cost
19price of the tangible personal property transferred as an
20incident to the sale of those services.
21    The tax shall be imposed at the rate of 1% on food prepared
22for immediate consumption and transferred incident to a sale of
23service subject to this Act or the Service Occupation Tax Act
24by an entity licensed under the Hospital Licensing Act, the
25Nursing Home Care Act, the ID/DD Community Care Act, the
26Specialized Mental Health Rehabilitation Act, or the Child Care

 

 

HB5631- 26 -LRB097 17992 HLH 63215 b

1Act of 1969. The tax shall also be imposed at the rate of 1% on
2food for human consumption that is to be consumed off the
3premises where it is sold (other than alcoholic beverages, soft
4drinks, and food that has been prepared for immediate
5consumption and is not otherwise included in this paragraph)
6and prescription and nonprescription medicines, drugs, medical
7appliances, modifications to a motor vehicle for the purpose of
8rendering it usable by a disabled person, and insulin, urine
9testing materials, syringes, and needles used by diabetics, for
10human use. For the purposes of this Section, until September 1,
112009: the term "soft drinks" means any complete, finished,
12ready-to-use, non-alcoholic drink, whether carbonated or not,
13including but not limited to soda water, cola, fruit juice,
14vegetable juice, carbonated water, and all other preparations
15commonly known as soft drinks of whatever kind or description
16that are contained in any closed or sealed bottle, can, carton,
17or container, regardless of size; but "soft drinks" does not
18include coffee, tea, non-carbonated water, infant formula,
19milk or milk products as defined in the Grade A Pasteurized
20Milk and Milk Products Act, or drinks containing 50% or more
21natural fruit or vegetable juice.
22    Notwithstanding any other provisions of this Act,
23beginning September 1, 2009, "soft drinks" means non-alcoholic
24beverages that contain natural or artificial sweeteners. "Soft
25drinks" do not include beverages that contain milk or milk
26products, soy, rice or similar milk substitutes, or greater

 

 

HB5631- 27 -LRB097 17992 HLH 63215 b

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

 

 

HB5631- 28 -LRB097 17992 HLH 63215 b

1includes, but is not limited to, soaps and cleaning solutions,
2shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
3lotions and screens, unless those products are available by
4prescription only, regardless of whether the products meet the
5definition of "over-the-counter-drugs". For the purposes of
6this paragraph, "over-the-counter-drug" means a drug for human
7use that contains a label that identifies the product as a drug
8as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
9label includes:
10        (A) A "Drug Facts" panel; or
11        (B) A statement of the "active ingredient(s)" with a
12    list of those ingredients contained in the compound,
13    substance or preparation.
14    If the property that is acquired from a serviceman is
15acquired outside Illinois and used outside Illinois before
16being brought to Illinois for use here and is taxable under
17this Act, the "selling price" on which the tax is computed
18shall be reduced by an amount that represents a reasonable
19allowance for depreciation for the period of prior out-of-state
20use.
21(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
22eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38,
23eff. 6-28-11; 97-227, eff. 1-1-12; 97-636, eff. 6-1-12.)
 
24    (35 ILCS 110/3-51)
25    Sec. 3-51. Motor vehicles; trailers; use as rolling stock

 

 

HB5631- 29 -LRB097 17992 HLH 63215 b

1definition.
2    (a) Through June 30, 2003, "use as rolling stock moving in
3interstate commerce" in subsection (b) of Section 3-45 means
4for motor vehicles, as defined in Section 1-46 of the Illinois
5Vehicle Code, and trailers, as defined in Section 1-209 of the
6Illinois Vehicle Code, when on 15 or more occasions in a
712-month period the motor vehicle and trailer has carried
8persons or property for hire in interstate commerce, even just
9between points in Illinois, if the motor vehicle and trailer
10transports persons whose journeys or property whose shipments
11originate or terminate outside Illinois. This definition
12applies to all property purchased for the purpose of being
13attached to those motor vehicles or trailers as a part thereof.
14    (b) On and after July 1, 2003 and through June 30, 2004,
15"use as rolling stock moving in interstate commerce" in
16paragraphs (4) and (4a) of the definition of "sale of service"
17in Section 2 and subsection (b) of Section 3-45 occurs for
18motor vehicles, as defined in Section 1-146 of the Illinois
19Vehicle Code, when during a 12-month period the rolling stock
20has carried persons or property for hire in interstate commerce
21for 51% of its total trips and transports persons whose
22journeys or property whose shipments originate or terminate
23outside Illinois. Trips that are only between points in
24Illinois shall not be counted as interstate trips when
25calculating whether the tangible personal property qualifies
26for the exemption but such trips shall be included in total

 

 

HB5631- 30 -LRB097 17992 HLH 63215 b

1trips taken.
2    (c) Beginning July 1, 2004, "use as rolling stock moving in
3interstate commerce" in paragraphs (4) and (4a) of the
4definition of "sale of service" in Section 2 and subsection (b)
5of Section 3-45 occurs for motor vehicles, as defined in
6Section 1-146 of the Illinois Vehicle Code, when during a
712-month period the rolling stock has carried persons or
8property for hire in interstate commerce for greater than 50%
9of its total trips for that period or for greater than 50% of
10its total miles for that period. The person claiming the
11exemption shall make an election at the time of purchase to use
12either the trips or mileage method. Persons who purchased motor
13vehicles prior to July 1, 2004 shall make an election to use
14either the trips or mileage method and document that election
15in their books and records. If no election is made under this
16subsection to use the trips or mileage method, the person shall
17be deemed to have chosen the mileage method. Any election to
18use either the trips or mileage method will remain in effect
19for that motor vehicle for any period for which the Department
20may issue a notice of tax liability under this Act.
21    For purposes of determining qualifying trips or miles,
22motor vehicles that carry persons or property for hire, even
23just between points in Illinois, will be considered used for
24hire in interstate commerce if the motor vehicle transports
25persons whose journeys or property whose shipments originate or
26terminate outside Illinois. The exemption for motor vehicles

 

 

HB5631- 31 -LRB097 17992 HLH 63215 b

1used as rolling stock moving in interstate commerce may be
2claimed only for the following vehicles: (i) motor vehicles
3whose gross vehicle weight rating exceeds 16,000 pounds; and
4(ii) limousines, as defined in Section 1-139.1 of the Illinois
5Vehicle Code. This definition applies to all property purchased
6for the purpose of being attached to those motor vehicles as a
7part thereof.
8    (d) Beginning July 1, 2004, "use as rolling stock moving in
9interstate commerce" in paragraphs (4) and (4a) of the
10definition of "sale of service" in Section 2 and subsection (b)
11of Section 3-45 occurs for trailers, as defined in Section
121-209 of the Illinois Vehicle Code, semitrailers as defined in
13Section 1-187 of the Illinois Vehicle Code, and pole trailers
14as defined in Section 1-161 of the Illinois Vehicle Code, when
15during a 12-month period the rolling stock has carried persons
16or property for hire in interstate commerce for greater than
1750% of its total trips for that period or for greater than 50%
18of its total miles for that period. The person claiming the
19exemption for a trailer or trailers that will not be dedicated
20to a motor vehicle or group of motor vehicles shall make an
21election at the time of purchase to use either the trips or
22mileage method. Persons who purchased trailers prior to July 1,
232004 that are not dedicated to a motor vehicle or group of
24motor vehicles shall make an election to use either the trips
25or mileage method and document that election in their books and
26records. If no election is made under this subsection to use

 

 

HB5631- 32 -LRB097 17992 HLH 63215 b

1the trips or mileage method, the person shall be deemed to have
2chosen the mileage method. Any election to use either the trips
3or mileage method will remain in effect for that trailer for
4any period for which the Department may issue a notice of tax
5liability under this Act.
6    For purposes of determining qualifying trips or miles,
7trailers, semitrailers, or pole trailers that carry property
8for hire, even just between points in Illinois, will be
9considered used for hire in interstate commerce if the
10trailers, semitrailers, or pole trailers transport property
11whose shipments originate or terminate outside Illinois. This
12definition applies to all property purchased for the purpose of
13being attached to those trailers, semitrailers, or pole
14trailers as a part thereof. In lieu of a person providing
15documentation regarding the qualifying use of each individual
16trailer, semitrailer, or pole trailer, that person may document
17such qualifying use by providing documentation of the
18following:
19        (1) If a trailer, semitrailer, or pole trailer is
20    dedicated to a motor vehicle that qualifies as rolling
21    stock moving in interstate commerce under subsection (c) of
22    this Section, then that trailer, semitrailer, or pole
23    trailer qualifies as rolling stock moving in interstate
24    commerce under this subsection.
25        (2) If a trailer, semitrailer, or pole trailer is
26    dedicated to a group of motor vehicles that all qualify as

 

 

HB5631- 33 -LRB097 17992 HLH 63215 b

1    rolling stock moving in interstate commerce under
2    subsection (c) of this Section, then that trailer,
3    semitrailer, or pole trailer qualifies as rolling stock
4    moving in interstate commerce under this subsection.
5        (3) If one or more trailers, semitrailers, or pole
6    trailers are dedicated to a group of motor vehicles and not
7    all of those motor vehicles in that group qualify as
8    rolling stock moving in interstate commerce under
9    subsection (c) of this Section, then the percentage of
10    those trailers, semitrailers, or pole trailers that
11    qualifies as rolling stock moving in interstate commerce
12    under this subsection is equal to the percentage of those
13    motor vehicles in that group that qualify as rolling stock
14    moving in interstate commerce under subsection (c) of this
15    Section to which those trailers, semitrailers, or pole
16    trailers are dedicated. However, to determine the
17    qualification for the exemption provided under this item
18    (3), the mathematical application of the qualifying
19    percentage to one or more trailers, semitrailers, or pole
20    trailers under this subpart shall not be allowed as to any
21    fraction of a trailer, semitrailer, or pole trailer.
22    (e) Beginning July 1, 2012, "use as rolling stock moving in
23interstate commerce" in (i) paragraphs (4) and (4a) of the
24definition of "sale of service" in Section 2 and (ii)
25subsection (b) of Section 3-45 occurs for aircraft and
26watercraft when, during a 12-month period, the rolling stock

 

 

HB5631- 34 -LRB097 17992 HLH 63215 b

1has carried persons or property for hire in interstate commerce
2for greater than 50% of its total trips for that period or for
3greater than 50% of its total miles for that period. The person
4claiming the exemption shall make an election at the time of
5purchase to use either the trips or mileage method. Persons who
6purchased aircraft or watercraft prior to July 1, 2012 shall
7make an election to use either the trips or mileage method and
8document that election in their books and records. If no
9election is made under this subsection to use the trips or
10mileage method, the person shall be deemed to have chosen the
11mileage method. For aircraft, flight hours may be used in lieu
12of recording miles in determining whether the aircraft meets
13the mileage test in this subsection. For watercraft, nautical
14miles or trip hours may be used in lieu of recording miles in
15determining whether the watercraft meets the mileage test in
16this subsection.
17    (f) Any election to use either the trips or mileage method
18made under the provisions of subsections (c), (d), or (e) of
19this Section will remain in effect for the life of that item.
20(Source: P.A. 95-528, eff. 8-28-07.)
 
21    Section 20. The Service Occupation Tax Act is amended by
22changing Sections 2d and 3-10 as follows:
 
23    (35 ILCS 115/2d)
24    Sec. 2d. Motor vehicles; trailers; use as rolling stock

 

 

HB5631- 35 -LRB097 17992 HLH 63215 b

1definition.
2    (a) Through June 30, 2003, "use as rolling stock moving in
3interstate commerce" in subsections (d) and (d-1) of the
4definition of "sale of service" in Section 2 means for motor
5vehicles, as defined in Section 1-146 of the Illinois Vehicle
6Code, and trailers, as defined in Section 1-209 of the Illinois
7Vehicle Code, when on 15 or more occasions in a 12-month period
8the motor vehicle and trailer has carried persons or property
9for hire in interstate commerce, even just between points in
10Illinois, if the motor vehicle and trailer transports persons
11whose journeys or property whose shipments originate or
12terminate outside Illinois. This definition applies to all
13property purchased for the purpose of being attached to those
14motor vehicles or trailers as a part thereof.
15    (b) On and after July 1, 2003 and through June 30, 2004,
16"use as rolling stock moving in interstate commerce" in
17paragraphs (d) and (d-1) of the definition of "sale of service"
18in Section 2 occurs for motor vehicles, as defined in Section
191-146 of the Illinois Vehicle Code, when during a 12-month
20period the rolling stock has carried persons or property for
21hire in interstate commerce for 51% of its total trips and
22transports persons whose journeys or property whose shipments
23originate or terminate outside Illinois. Trips that are only
24between points in Illinois will not be counted as interstate
25trips when calculating whether the tangible personal property
26qualifies for the exemption but such trips will be included in

 

 

HB5631- 36 -LRB097 17992 HLH 63215 b

1total trips taken.
2    (c) Beginning July 1, 2004, "use as rolling stock moving in
3interstate commerce" in paragraphs (d) and (d-1) of the
4definition of "sale of service" in Section 2 occurs for motor
5vehicles, as defined in Section 1-146 of the Illinois Vehicle
6Code, when during a 12-month period the rolling stock has
7carried persons or property for hire in interstate commerce for
8greater than 50% of its total trips for that period or for
9greater than 50% of its total miles for that period. The person
10claiming the exemption shall make an election at the time of
11purchase to use either the trips or mileage method. Persons who
12purchased motor vehicles prior to July 1, 2004 shall make an
13election to use either the trips or mileage method and document
14that election in their books and records. If no election is
15made under this subsection to use the trips or mileage method,
16the person shall be deemed to have chosen the mileage method.
17Any election to use either the trips or mileage method will
18remain in effect for that motor vehicle for any period for
19which the Department may issue a notice of tax liability under
20this Act.
21    For purposes of determining qualifying trips or miles,
22motor vehicles that carry persons or property for hire, even
23just between points in Illinois, will be considered used for
24hire in interstate commerce if the motor vehicle transports
25persons whose journeys or property whose shipments originate or
26terminate outside Illinois. The exemption for motor vehicles

 

 

HB5631- 37 -LRB097 17992 HLH 63215 b

1used as rolling stock moving in interstate commerce may be
2claimed only for the following vehicles: (i) motor vehicles
3whose gross vehicle weight rating exceeds 16,000 pounds; and
4(ii) limousines, as defined in Section 1-139.1 of the Illinois
5Vehicle Code. This definition applies to all property purchased
6for the purpose of being attached to those motor vehicles as a
7part thereof.
8    (d) Beginning July 1, 2004, "use as rolling stock moving in
9interstate commerce" in paragraphs (d) and (d-1) of the
10definition of "sale of service" in Section 2 occurs for
11trailers, as defined in Section 1-209 of the Illinois Vehicle
12Code, semitrailers as defined in Section 1-187 of the Illinois
13Vehicle Code, and pole trailers as defined in Section 1-161 of
14the Illinois Vehicle Code, when during a 12-month period the
15rolling stock has carried persons or property for hire in
16interstate commerce for greater than 50% of its total trips for
17that period or for greater than 50% of its total miles for that
18period. The person claiming the exemption for a trailer or
19trailers that will not be dedicated to a motor vehicle or group
20of motor vehicles shall make an election at the time of
21purchase to use either the trips or mileage method. Persons who
22purchased trailers prior to July 1, 2004 that are not dedicated
23to a motor vehicle or group of motor vehicles shall make an
24election to use either the trips or mileage method and document
25that election in their books and records. If no election is
26made under this subsection to use the trips or mileage method,

 

 

HB5631- 38 -LRB097 17992 HLH 63215 b

1the person shall be deemed to have chosen the mileage method.
2Any election to use either the trips or mileage method will
3remain in effect for that trailer for any period for which the
4Department may issue a notice of tax liability under this Act.
5    For purposes of determining qualifying trips or miles,
6trailers, semitrailers, or pole trailers that carry property
7for hire, even just between points in Illinois, will be
8considered used for hire in interstate commerce if the
9trailers, semitrailers, or pole trailers transport property
10whose shipments originate or terminate outside Illinois. This
11definition applies to all property purchased for the purpose of
12being attached to those trailers, semitrailers, or pole
13trailers as a part thereof. In lieu of a person providing
14documentation regarding the qualifying use of each individual
15trailer, semitrailer, or pole trailer, that person may document
16such qualifying use by providing documentation of the
17following:
18        (1) If a trailer, semitrailer, or pole trailer is
19    dedicated to a motor vehicle that qualifies as rolling
20    stock moving in interstate commerce under subsection (c) of
21    this Section, then that trailer, semitrailer, or pole
22    trailer qualifies as rolling stock moving in interstate
23    commerce under this subsection.
24        (2) If a trailer, semitrailer, or pole trailer is
25    dedicated to a group of motor vehicles that all qualify as
26    rolling stock moving in interstate commerce under

 

 

HB5631- 39 -LRB097 17992 HLH 63215 b

1    subsection (c) of this Section, then that trailer,
2    semitrailer, or pole trailer qualifies as rolling stock
3    moving in interstate commerce under this subsection.
4        (3) If one or more trailers, semitrailers, or pole
5    trailers are dedicated to a group of motor vehicles and not
6    all of those motor vehicles in that group qualify as
7    rolling stock moving in interstate commerce under
8    subsection (c) of this Section, then the percentage of
9    those trailers, semitrailers, or pole trailers that
10    qualifies as rolling stock moving in interstate commerce
11    under this subsection is equal to the percentage of those
12    motor vehicles in that group that qualify as rolling stock
13    moving in interstate commerce under subsection (c) of this
14    Section to which those trailers, semitrailers, or pole
15    trailers are dedicated. However, to determine the
16    qualification for the exemption provided under this item
17    (3), the mathematical application of the qualifying
18    percentage to one or more trailers, semitrailers, or pole
19    trailers under this subpart shall not be allowed as to any
20    fraction of a trailer, semitrailer, or pole trailer.
21    (e) Beginning July 1, 2012, "use as rolling stock moving in
22interstate commerce" in paragraphs (d) and (d-1) of the
23definition of "sale of service" in Section 2 occurs for
24aircraft and watercraft when, during a 12-month period, the
25rolling stock has carried persons or property for hire in
26interstate commerce for greater than 50% of its total trips for

 

 

HB5631- 40 -LRB097 17992 HLH 63215 b

1that period or for greater than 50% of its total miles for that
2period. The person claiming the exemption shall make an
3election at the time of purchase to use either the trips or
4mileage method. Persons who purchased aircraft or watercraft
5prior to July 1, 2012 shall make an election to use either the
6trips or mileage method and document that election in their
7books and records. If no election is made under this subsection
8to use the trips or mileage method, the person shall be deemed
9to have chosen the mileage method. For aircraft, flight hours
10may be used in lieu of recording miles in determining whether
11the aircraft meets the mileage test in this subsection. For
12watercraft, nautical miles or trip hours may be used in lieu of
13recording miles in determining whether the watercraft meets the
14mileage test in this subsection.
15    (f) Any election to use either the trips or mileage method
16made under the provisions of subsections (c), (d), or (e) of
17this Section will remain in effect for the life of that item.
18(Source: P.A. 95-528, eff. 8-28-07.)
 
19    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
20    (Text of Section before amendment by P.A. 97-636)
21    Sec. 3-10. Rate of tax. Unless otherwise provided in this
22Section, the tax imposed by this Act is at the rate of 6.25% of
23the "selling price", as defined in Section 2 of the Service Use
24Tax Act, of the tangible personal property. For the purpose of
25computing this tax, in no event shall the "selling price" be

 

 

HB5631- 41 -LRB097 17992 HLH 63215 b

1less than the cost price to the serviceman of the tangible
2personal property transferred. The selling price of each item
3of tangible personal property transferred as an incident of a
4sale of service may be shown as a distinct and separate item on
5the serviceman's billing to the service customer. If the
6selling price is not so shown, the selling price of the
7tangible personal property is deemed to be 50% of the
8serviceman's entire billing to the service customer. When,
9however, a serviceman contracts to design, develop, and produce
10special order machinery or equipment, the tax imposed by this
11Act shall be based on the serviceman's cost price of the
12tangible personal property transferred incident to the
13completion of the contract.
14    Beginning on July 1, 2000 and through December 31, 2000,
15with respect to motor fuel, as defined in Section 1.1 of the
16Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
17the Use Tax Act, the tax is imposed at the rate of 1.25%.
18    With respect to gasohol, as defined in the Use Tax Act, the
19tax imposed by this Act shall apply to (i) 70% of the cost
20price of property transferred as an incident to the sale of
21service on or after January 1, 1990, and before July 1, 2003,
22(ii) 80% of the selling price of property transferred as an
23incident to the sale of service on or after July 1, 2003 and on
24or before December 31, 2013, and (iii) 100% of the cost price
25thereafter. If, at any time, however, the tax under this Act on
26sales of gasohol, as defined in the Use Tax Act, is imposed at

 

 

HB5631- 42 -LRB097 17992 HLH 63215 b

1the rate of 1.25%, then the tax imposed by this Act applies to
2100% of the proceeds of sales of gasohol made during that time.
3    With respect to majority blended ethanol fuel, as defined
4in the Use Tax Act, the tax imposed by this Act does not apply
5to the selling price of property transferred as an incident to
6the sale of service on or after July 1, 2003 and on or before
7December 31, 2013 but applies to 100% of the selling price
8thereafter.
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 selling price
12of property transferred as an incident to the sale of service
13on or after July 1, 2003 and on or before December 31, 2013 and
14(ii) 100% of the proceeds of the selling price thereafter. If,
15at any time, however, the tax under this Act on sales of
16biodiesel blends, as defined in the Use Tax Act, with no less
17than 1% and no more than 10% biodiesel is imposed at the rate
18of 1.25%, then the tax imposed by this Act applies to 100% of
19the proceeds of sales of biodiesel blends with no less than 1%
20and no more than 10% biodiesel made during that time.
21    With respect to 100% biodiesel, as defined in the Use Tax
22Act, and biodiesel blends, as defined in the Use Tax Act, with
23more than 10% but no more than 99% biodiesel material, the tax
24imposed by this Act does not apply to the proceeds of the
25selling price of property transferred as an incident to the
26sale of service on or after July 1, 2003 and on or before

 

 

HB5631- 43 -LRB097 17992 HLH 63215 b

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

 

 

HB5631- 44 -LRB097 17992 HLH 63215 b

1testing materials, syringes, and needles used by diabetics, for
2human use. For the purposes of this Section, until September 1,
32009: the term "soft drinks" means any complete, finished,
4ready-to-use, non-alcoholic drink, whether carbonated or not,
5including but not limited to soda water, cola, fruit juice,
6vegetable juice, carbonated water, and all other preparations
7commonly known as soft drinks of whatever kind or description
8that are contained in any closed or sealed can, carton, or
9container, regardless of size; but "soft drinks" does not
10include coffee, tea, non-carbonated water, infant formula,
11milk or milk products as defined in the Grade A Pasteurized
12Milk and Milk Products Act, or drinks containing 50% or more
13natural fruit or vegetable juice.
14    Notwithstanding any other provisions of this Act,
15beginning September 1, 2009, "soft drinks" means non-alcoholic
16beverages that contain natural or artificial sweeteners. "Soft
17drinks" do not include beverages that contain milk or milk
18products, soy, rice or similar milk substitutes, or greater
19than 50% of vegetable or fruit juice by volume.
20    Until September August 1, 2009, and notwithstanding any
21other provisions of this Act, "food for human consumption that
22is to be consumed off the premises where it is sold" includes
23all food sold through a vending machine, except soft drinks and
24food products that are dispensed hot from a vending machine,
25regardless of the location of the vending machine. Beginning
26September August 1, 2009, and notwithstanding any other

 

 

HB5631- 45 -LRB097 17992 HLH 63215 b

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

 

 

HB5631- 46 -LRB097 17992 HLH 63215 b

1label includes:
2        (A) A "Drug Facts" panel; or
3        (B) A statement of the "active ingredient(s)" with a
4    list of those ingredients contained in the compound,
5    substance or preparation.
6(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
7eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38,
8eff. 6-28-11; 97-227, eff. 1-1-12; revised 9-12-11.)
 
9    (Text of Section after amendment by P.A. 97-636)
10    Sec. 3-10. Rate of tax. Unless otherwise provided in this
11Section, the tax imposed by this Act is at the rate of 6.25% of
12the "selling price", as defined in Section 2 of the Service Use
13Tax Act, of the tangible personal property. For the purpose of
14computing this tax, in no event shall the "selling price" be
15less than the cost price to the serviceman of the tangible
16personal property transferred. The selling price of each item
17of tangible personal property transferred as an incident of a
18sale of service may be shown as a distinct and separate item on
19the serviceman's billing to the service customer. If the
20selling price is not so shown, the selling price of the
21tangible personal property is deemed to be 50% of the
22serviceman's entire billing to the service customer. When,
23however, a serviceman contracts to design, develop, and produce
24special order machinery or equipment, the tax imposed by this
25Act shall be based on the serviceman's cost price of the

 

 

HB5631- 47 -LRB097 17992 HLH 63215 b

1tangible personal property transferred incident to the
2completion of the contract.
3    Beginning on July 1, 2000 and through December 31, 2000,
4with respect to motor fuel, as defined in Section 1.1 of the
5Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
6the Use Tax Act, the tax is imposed at the rate of 1.25%.
7    With respect to gasohol, as defined in the Use Tax Act, the
8tax imposed by this Act shall apply to (i) 70% of the cost
9price of property transferred as an incident to the sale of
10service on or after January 1, 1990, and before July 1, 2003,
11(ii) 80% of the selling price of property transferred as an
12incident to the sale of service on or after July 1, 2003 and on
13or before December 31, 2018, and (iii) 100% of the cost price
14thereafter. If, at any time, however, the tax under this Act on
15sales of gasohol, as defined in the Use Tax Act, is imposed at
16the rate of 1.25%, then the tax imposed by this Act applies to
17100% of the proceeds of sales of gasohol made during that time.
18    With respect to majority blended ethanol fuel, as defined
19in the Use Tax Act, the tax imposed by this Act does not apply
20to the selling price of property transferred as an incident to
21the sale of service on or after July 1, 2003 and on or before
22December 31, 2018 but applies to 100% of the selling price
23thereafter.
24    With respect to biodiesel blends, as defined in the Use Tax
25Act, with no less than 1% and no more than 10% biodiesel, the
26tax imposed by this Act applies to (i) 80% of the selling price

 

 

HB5631- 48 -LRB097 17992 HLH 63215 b

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

 

 

HB5631- 49 -LRB097 17992 HLH 63215 b

1the 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
7Specialized Mental Health Rehabilitation Act, or the Child Care
8Act of 1969. The tax shall also be imposed at the rate of 1% on
9food for human consumption that is to be consumed off the
10premises where it is sold (other than alcoholic beverages, soft
11drinks, and food that has been prepared for immediate
12consumption and is not otherwise included in this paragraph)
13and prescription and nonprescription medicines, drugs, medical
14appliances, modifications to a motor vehicle for the purpose of
15rendering it usable by a disabled person, and insulin, urine
16testing materials, syringes, and needles used by diabetics, for
17human use. For the purposes of this Section, until September 1,
182009: the term "soft drinks" means any complete, finished,
19ready-to-use, non-alcoholic drink, whether carbonated or not,
20including but not limited to soda water, cola, fruit juice,
21vegetable juice, carbonated water, and all other preparations
22commonly known as soft drinks of whatever kind or description
23that are contained in any closed or sealed can, carton, or
24container, regardless of size; but "soft drinks" does not
25include coffee, tea, non-carbonated water, infant formula,
26milk or milk products as defined in the Grade A Pasteurized

 

 

HB5631- 50 -LRB097 17992 HLH 63215 b

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

 

 

HB5631- 51 -LRB097 17992 HLH 63215 b

1ingredients or flavorings in the form of bars, drops, or
2pieces. "Candy" does not include any preparation that contains
3flour or requires refrigeration.
4    Notwithstanding any other provisions of this Act,
5beginning September 1, 2009, "nonprescription medicines and
6drugs" does not include grooming and hygiene products. For
7purposes of this Section, "grooming and hygiene products"
8includes, but is not limited to, soaps and cleaning solutions,
9shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
10lotions and screens, unless those products are available by
11prescription only, regardless of whether the products meet the
12definition of "over-the-counter-drugs". For the purposes of
13this paragraph, "over-the-counter-drug" means a drug for human
14use that contains a label that identifies the product as a drug
15as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
16label includes:
17        (A) A "Drug Facts" panel; or
18        (B) A statement of the "active ingredient(s)" with a
19    list of those ingredients contained in the compound,
20    substance or preparation.
21(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
22eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38,
23eff. 6-28-11; 97-227, eff. 1-1-12; 97-636, eff. 6-1-12.)
 
24    Section 25. The Retailers' Occupation Tax Act is amended by
25changing Sections 2-10, 2-51, and 5 as follows:
 

 

 

HB5631- 52 -LRB097 17992 HLH 63215 b

1    (35 ILCS 120/2-10)
2    (Text of Section before amendment by P.A. 97-636)
3    Sec. 2-10. Rate of tax. Unless otherwise provided in this
4Section, the tax imposed by this Act is at the rate of 6.25% of
5gross receipts from sales of tangible personal property made in
6the course of business.
7    Beginning on July 1, 2000 and through December 31, 2000,
8with respect to motor fuel, as defined in Section 1.1 of the
9Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
10the Use Tax Act, the tax is imposed at the rate of 1.25%.
11    Beginning on August 6, 2010 through August 15, 2010, with
12respect to sales tax holiday items as defined in Section 2-8 of
13this Act, the tax is imposed at the rate of 1.25%.
14    Within 14 days after the effective date of this amendatory
15Act of the 91st General Assembly, each retailer of motor fuel
16and gasohol shall cause the following notice to be posted in a
17prominently visible place on each retail dispensing device that
18is used to dispense motor fuel or gasohol in the State of
19Illinois: "As of July 1, 2000, the State of Illinois has
20eliminated the State's share of sales tax on motor fuel and
21gasohol through December 31, 2000. The price on this pump
22should reflect the elimination of the tax." The notice shall be
23printed in bold print on a sign that is no smaller than 4
24inches by 8 inches. The sign shall be clearly visible to
25customers. Any retailer who fails to post or maintain a

 

 

HB5631- 53 -LRB097 17992 HLH 63215 b

1required sign through December 31, 2000 is guilty of a petty
2offense for which the fine shall be $500 per day per each
3retail premises where a violation occurs.
4    With respect to gasohol, as defined in the Use Tax Act, the
5tax imposed by this Act applies to (i) 70% of the proceeds of
6sales made on or after January 1, 1990, and before July 1,
72003, (ii) 80% of the proceeds of sales made on or after July
81, 2003 and on or before December 31, 2013, and (iii) 100% of
9the proceeds of sales made thereafter. If, at any time,
10however, the tax under this Act on sales of gasohol, as defined
11in the Use Tax Act, is imposed at the rate of 1.25%, then the
12tax imposed by this Act applies to 100% of the proceeds of
13sales of gasohol made during that time.
14    With respect to majority blended ethanol fuel, as defined
15in the Use Tax Act, the tax imposed by this Act does not apply
16to the proceeds of sales made on or after July 1, 2003 and on or
17before December 31, 2013 but applies to 100% of the proceeds of
18sales made thereafter.
19    With respect to biodiesel blends, as defined in the Use Tax
20Act, with no less than 1% and no more than 10% biodiesel, the
21tax imposed by this Act applies to (i) 80% of the proceeds of
22sales made on or after July 1, 2003 and on or before December
2331, 2013 and (ii) 100% of the proceeds of sales made
24thereafter. If, at any time, however, the tax under this Act on
25sales of biodiesel blends, as defined in the Use Tax Act, with
26no less than 1% and no more than 10% biodiesel is imposed at

 

 

HB5631- 54 -LRB097 17992 HLH 63215 b

1the rate of 1.25%, then the tax imposed by this Act applies to
2100% of the proceeds of sales of biodiesel blends with no less
3than 1% and no more than 10% biodiesel made during that time.
4    With respect to 100% biodiesel, as defined in the Use Tax
5Act, and biodiesel blends, as defined in the Use Tax Act, with
6more than 10% but no more than 99% biodiesel, the tax imposed
7by this Act does not apply to the proceeds of sales made on or
8after July 1, 2003 and on or before December 31, 2013 but
9applies to 100% of the proceeds of sales made thereafter.
10    With respect to food for human consumption that is to be
11consumed off the premises where it is sold (other than
12alcoholic beverages, soft drinks, and food that has been
13prepared for immediate consumption) and prescription and
14nonprescription medicines, drugs, medical appliances,
15modifications to a motor vehicle for the purpose of rendering
16it usable by a disabled person, and insulin, urine testing
17materials, syringes, and needles used by diabetics, for human
18use, the tax is imposed at the rate of 1%. For the purposes of
19this Section, until September 1, 2009: the term "soft drinks"
20means any complete, finished, ready-to-use, non-alcoholic
21drink, whether carbonated or not, including but not limited to
22soda water, cola, fruit juice, vegetable juice, carbonated
23water, and all other preparations commonly known as soft drinks
24of whatever kind or description that are contained in any
25closed or sealed bottle, can, carton, or container, regardless
26of size; but "soft drinks" does not include coffee, tea,

 

 

HB5631- 55 -LRB097 17992 HLH 63215 b

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

 

 

HB5631- 56 -LRB097 17992 HLH 63215 b

1preparation of sugar, honey, or other natural or artificial
2sweeteners in combination with chocolate, fruits, nuts or other
3ingredients or flavorings in the form of bars, drops, or
4pieces. "Candy" does not include any preparation that contains
5flour or requires refrigeration.
6    Notwithstanding any other provisions of this Act,
7beginning September 1, 2009, "nonprescription medicines and
8drugs" does not include grooming and hygiene products. For
9purposes of this Section, "grooming and hygiene products"
10includes, but is not limited to, soaps and cleaning solutions,
11shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
12lotions and screens, unless those products are available by
13prescription only, regardless of whether the products meet the
14definition of "over-the-counter-drugs". For the purposes of
15this paragraph, "over-the-counter-drug" means a drug for human
16use that contains a label that identifies the product as a drug
17as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
18label includes:
19        (A) A "Drug Facts" panel; or
20        (B) A statement of the "active ingredient(s)" with a
21    list of those ingredients contained in the compound,
22    substance or preparation.
23(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
24eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10.)
 
25    (Text of Section after amendment by P.A. 97-636)

 

 

HB5631- 57 -LRB097 17992 HLH 63215 b

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

 

 

HB5631- 58 -LRB097 17992 HLH 63215 b

1    With respect to gasohol, as defined in the Use Tax Act, the
2tax imposed by this Act applies to (i) 70% of the proceeds of
3sales made on or after January 1, 1990, and before July 1,
42003, (ii) 80% of the proceeds of sales made on or after July
51, 2003 and on or before December 31, 2018, and (iii) 100% of
6the proceeds of sales made thereafter. If, at any time,
7however, the tax under this Act on sales of gasohol, as defined
8in the Use Tax Act, is imposed at the rate of 1.25%, then the
9tax imposed by this Act applies to 100% of the proceeds of
10sales 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 proceeds of sales made on or after July 1, 2003 and on or
14before December 31, 2018 but applies to 100% of the proceeds of
15sales made thereafter.
16    With respect to biodiesel blends, as defined in the Use Tax
17Act, with no less than 1% and no more than 10% biodiesel, the
18tax imposed by this Act applies to (i) 80% of the proceeds of
19sales made on or after July 1, 2003 and on or before December
2031, 2018 and (ii) 100% of the proceeds of sales made
21thereafter. If, at any time, however, the tax under this Act on
22sales of biodiesel blends, as defined in the Use Tax Act, with
23no less than 1% and no more than 10% biodiesel is imposed at
24the rate of 1.25%, then the tax imposed by this Act applies to
25100% of the proceeds of sales of biodiesel blends with no less
26than 1% and no more than 10% biodiesel made during that time.

 

 

HB5631- 59 -LRB097 17992 HLH 63215 b

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 sales made on or
5after July 1, 2003 and on or before December 31, 2018 but
6applies to 100% of the proceeds of sales made thereafter.
7    With respect to 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 prescription and
11nonprescription medicines, drugs, medical appliances,
12modifications to a motor vehicle for the purpose of rendering
13it usable by a disabled person, and insulin, urine testing
14materials, syringes, and needles used by diabetics, for human
15use, the tax is imposed at the rate of 1%. For the purposes of
16this Section, until September 1, 2009: the term "soft drinks"
17means any complete, finished, ready-to-use, non-alcoholic
18drink, whether carbonated or not, including but not limited to
19soda water, cola, fruit juice, vegetable juice, carbonated
20water, and all other preparations commonly known as soft drinks
21of whatever kind or description that are contained in any
22closed or sealed bottle, can, carton, or container, regardless
23of size; but "soft drinks" does not include coffee, tea,
24non-carbonated water, infant formula, milk or milk products as
25defined in the Grade A Pasteurized Milk and Milk Products Act,
26or drinks containing 50% or more natural fruit or vegetable

 

 

HB5631- 60 -LRB097 17992 HLH 63215 b

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

 

 

HB5631- 61 -LRB097 17992 HLH 63215 b

1pieces. "Candy" does not include any preparation that contains
2flour or requires refrigeration.
3    Notwithstanding any other provisions of this Act,
4beginning September 1, 2009, "nonprescription medicines and
5drugs" does not include grooming and hygiene products. For
6purposes of this Section, "grooming and hygiene products"
7includes, but is not limited to, soaps and cleaning solutions,
8shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
9lotions and screens, unless those products are available by
10prescription only, regardless of whether the products meet the
11definition of "over-the-counter-drugs". For the purposes of
12this paragraph, "over-the-counter-drug" means a drug for human
13use that contains a label that identifies the product as a drug
14as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
15label includes:
16        (A) A "Drug Facts" panel; or
17        (B) A statement of the "active ingredient(s)" with a
18    list of those ingredients contained in the compound,
19    substance or preparation.
20(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
21eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10;
2297-636, eff. 6-1-12.)
 
23    (35 ILCS 120/2-51)
24    Sec. 2-51. Motor vehicles; trailers; use as rolling stock
25definition.

 

 

HB5631- 62 -LRB097 17992 HLH 63215 b

1    (a) Through June 30, 2003, "use as rolling stock moving in
2interstate commerce" in paragraphs (12) and (13) of Section 2-5
3means for motor vehicles, as defined in Section 1-146 of the
4Illinois Vehicle Code, and trailers, as defined in Section
51-209 of the Illinois Vehicle Code, when on 15 or more
6occasions in a 12-month period the motor vehicle and trailer
7has carried persons or property for hire in interstate
8commerce, even just between points in Illinois, if the motor
9vehicle and trailer transports persons whose journeys or
10property whose shipments originate or terminate outside
11Illinois. This definition applies to all property purchased for
12the purpose of being attached to those motor vehicles or
13trailers as a part thereof.
14    (b) On and after July 1, 2003 and through June 30, 2004,
15"use as rolling stock moving in interstate commerce" in
16paragraphs (12) and (13) of Section 2-5 occurs for motor
17vehicles, as defined in Section 1-146 of the Illinois Vehicle
18Code, when during a 12-month period the rolling stock has
19carried persons or property for hire in interstate commerce for
2051% of its total trips and transports persons whose journeys or
21property whose shipments originate or terminate outside
22Illinois. Trips that are only between points in Illinois shall
23not be counted as interstate trips when calculating whether the
24tangible personal property qualifies for the exemption but such
25trips shall be included in total trips taken.
26    (c) Beginning July 1, 2004, "use as rolling stock moving in

 

 

HB5631- 63 -LRB097 17992 HLH 63215 b

1interstate commerce" in paragraphs (12) and (13) of Section 2-5
2occurs for motor vehicles, as defined in Section 1-146 of the
3Illinois Vehicle Code, when during a 12-month period the
4rolling stock has carried persons or property for hire in
5interstate commerce for greater than 50% of its total trips for
6that period or for greater than 50% of its total miles for that
7period. The person claiming the exemption shall make an
8election at the time of purchase to use either the trips or
9mileage method. Persons who purchased motor vehicles prior to
10July 1, 2004 shall make an election to use either the trips or
11mileage method and document that election in their books and
12records. If no election is made under this subsection to use
13the trips or mileage method, the person shall be deemed to have
14chosen the mileage method. Any election to use either the trips
15or mileage method will remain in effect for that motor vehicle
16for any period for which the Department may issue a notice of
17tax liability under this Act.
18    For purposes of determining qualifying trips or miles,
19motor vehicles that carry persons or property for hire, even
20just between points in Illinois, will be considered used for
21hire in interstate commerce if the motor vehicle transports
22persons whose journeys or property whose shipments originate or
23terminate outside Illinois. The exemption for motor vehicles
24used as rolling stock moving in interstate commerce may be
25claimed only for the following vehicles: (i) motor vehicles
26whose gross vehicle weight rating exceeds 16,000 pounds; and

 

 

HB5631- 64 -LRB097 17992 HLH 63215 b

1(ii) limousines, as defined in Section 1-139.1 of the Illinois
2Vehicle Code. This definition applies to all property purchased
3for the purpose of being attached to those motor vehicles as a
4part thereof.
5    (d) Beginning July 1, 2004, "use as rolling stock moving in
6interstate commerce" in paragraphs (12) and (13) of Section 2-5
7occurs for trailers, as defined in Section 1-209 of the
8Illinois Vehicle Code, semitrailers as defined in Section 1-187
9of the Illinois Vehicle Code, and pole trailers as defined in
10Section 1-161 of the Illinois Vehicle Code, when during a
1112-month period the rolling stock has carried persons or
12property for hire in interstate commerce for greater than 50%
13of its total trips for that period or for greater than 50% of
14its total miles for that period. The person claiming the
15exemption for a trailer or trailers that will not be dedicated
16to a motor vehicle or group of motor vehicles shall make an
17election at the time of purchase to use either the trips or
18mileage method. Persons who purchased trailers prior to July 1,
192004 that are not dedicated to a motor vehicle or group of
20motor vehicles shall make an election to use either the trips
21or mileage method and document that election in their books and
22records. If no election is made under this subsection to use
23the trips or mileage method, the person shall be deemed to have
24chosen the mileage method. Any election to use either the trips
25or mileage method will remain in effect for that trailer for
26any period for which the Department may issue a notice of tax

 

 

HB5631- 65 -LRB097 17992 HLH 63215 b

1liability under this Act.
2    For purposes of determining qualifying trips or miles,
3trailers, semitrailers, or pole trailers that carry property
4for hire, even just between points in Illinois, will be
5considered used for hire in interstate commerce if the
6trailers, semitrailers, or pole trailers transport property
7whose shipments originate or terminate outside Illinois. This
8definition applies to all property purchased for the purpose of
9being attached to those trailers, semitrailers, or pole
10trailers as a part thereof. In lieu of a person providing
11documentation regarding the qualifying use of each individual
12trailer, semitrailer, or pole trailer, that person may document
13such qualifying use by providing documentation of the
14following:
15        (1) If a trailer, semitrailer, or pole trailer is
16    dedicated to a motor vehicle that qualifies as rolling
17    stock moving in interstate commerce under subsection (c) of
18    this Section, then that trailer, semitrailer, or pole
19    trailer qualifies as rolling stock moving in interstate
20    commerce under this subsection.
21        (2) If a trailer, semitrailer, or pole trailer is
22    dedicated to a group of motor vehicles that all qualify as
23    rolling stock moving in interstate commerce under
24    subsection (c) of this Section, then that trailer,
25    semitrailer, or pole trailer qualifies as rolling stock
26    moving in interstate commerce under this subsection.

 

 

HB5631- 66 -LRB097 17992 HLH 63215 b

1        (3) If one or more trailers, semitrailers, or pole
2    trailers are dedicated to a group of motor vehicles and not
3    all of those motor vehicles in that group qualify as
4    rolling stock moving in interstate commerce under
5    subsection (c) of this Section, then the percentage of
6    those trailers, semitrailers, or pole trailers that
7    qualifies as rolling stock moving in interstate commerce
8    under this subsection is equal to the percentage of those
9    motor vehicles in that group that qualify as rolling stock
10    moving in interstate commerce under subsection (c) of this
11    Section to which those trailers, semitrailers, or pole
12    trailers are dedicated. However, to determine the
13    qualification for the exemption provided under this item
14    (3), the mathematical application of the qualifying
15    percentage to one or more trailers, semitrailers, or pole
16    trailers under this subpart shall not be allowed as to any
17    fraction of a trailer, semitrailer, or pole trailer.
18    (e) Beginning July 1, 2012, "use as rolling stock moving in
19interstate commerce" in paragraphs (12) and (13) of Section 2-5
20occurs for aircraft and watercraft when, during a 12-month
21period, the rolling stock has carried persons or property for
22hire in interstate commerce for greater than 50% of its total
23trips for that period or for greater than 50% of its total
24miles for that period. The person claiming the exemption shall
25make an election at the time of purchase to use either the
26trips or mileage method. Persons who purchased aircraft or

 

 

HB5631- 67 -LRB097 17992 HLH 63215 b

1watercraft prior to July 1, 2012 shall make an election to use
2either the trips or mileage method and document that election
3in their books and records. If no election is made under this
4subsection to use the trips or mileage method, the person shall
5be deemed to have chosen the mileage method. For aircraft,
6flight hours may be used in lieu of recording miles in
7determining whether the aircraft meets the mileage test in this
8subsection. For watercraft, nautical miles or trip hours may be
9used in lieu of recording miles in determining whether the
10watercraft meets the mileage test in this subsection.
11    (f) Any election to use either the trips or mileage method
12made under the provisions of subsections (c), (d), or (e) of
13this Section will remain in effect for the life of that item.
14(Source: P.A. 95-528, eff. 8-28-07.)
 
15    (35 ILCS 120/5)  (from Ch. 120, par. 444)
16    Sec. 5. In case any person engaged in the business of
17selling tangible personal property at retail fails to file a
18return when and as herein required, but thereafter, prior to
19the Department's issuance of a notice of tax liability under
20this Section, files a return and pays the tax, he shall also
21pay a penalty in an amount determined in accordance with
22Section 3-3 of the Uniform Penalty and Interest Act.
23    In case any person engaged in the business of selling
24tangible personal property at retail files the return at the
25time required by this Act but fails to pay the tax, or any part

 

 

HB5631- 68 -LRB097 17992 HLH 63215 b

1thereof, when due, a penalty in an amount determined in
2accordance with Section 3-3 of the Uniform Penalty and Interest
3Act shall be added thereto.
4    In case any person engaged in the business of selling
5tangible personal property at retail fails to file a return
6when and as herein required, but thereafter, prior to the
7Department's issuance of a notice of tax liability under this
8Section, files a return but fails to pay the entire tax, a
9penalty in an amount determined in accordance with Section 3-3
10of the Uniform Penalty and Interest Act shall be added thereto.
11    In case any person engaged in the business of selling
12tangible personal property at retail fails to file a return,
13the Department shall determine the amount of tax due from him
14according to its best judgment and information, which amount so
15fixed by the Department shall be prima facie correct and shall
16be prima facie evidence of the correctness of the amount of tax
17due, as shown in such determination. In making any such
18determination of tax due, it shall be permissible for the
19Department to show a figure that represents the tax due for any
20given period of 6 months instead of showing the amount of tax
21due for each month separately. Proof of such determination by
22the Department may be made at any hearing before the Department
23or in any legal proceeding by a reproduced copy or computer
24print-out of the Department's record relating thereto in the
25name of the Department under the certificate of the Director of
26Revenue. If reproduced copies of the Department's records are

 

 

HB5631- 69 -LRB097 17992 HLH 63215 b

1offered as proof of such determination, the Director must
2certify that those copies are true and exact copies of records
3on file with the Department. If computer print-outs of the
4Department's records are offered as proof of such
5determination, the Director must certify that those computer
6print-outs are true and exact representations of records
7properly entered into standard electronic computing equipment,
8in the regular course of the Department's business, at or
9reasonably near the time of the occurrence of the facts
10recorded, from trustworthy and reliable information. Such
11certified reproduced copy or certified computer print-out
12shall, without further proof, be admitted into evidence before
13the Department or in any legal proceeding and shall be prima
14facie proof of the correctness of the amount of tax due, as
15shown therein. The Department shall issue the taxpayer a notice
16of tax liability for the amount of tax claimed by the
17Department to be due, together with a penalty of 30% thereof.
18    However, where the failure to file any tax return required
19under this Act on the date prescribed therefor (including any
20extensions thereof), is shown to be unintentional and
21nonfraudulent and has not occurred in the 2 years immediately
22preceding the failure to file on the prescribed date or is due
23to other reasonable cause the penalties imposed by this Act
24shall not apply.
25    If such person or the legal representative of such person
26files, within 60 days after such notice, a protest to such

 

 

HB5631- 70 -LRB097 17992 HLH 63215 b

1notice of tax liability and requests a hearing thereon, the
2Department shall give notice to such person or the legal
3representative of such person of the time and place fixed for
4such hearing, and shall hold a hearing in conformity with the
5provisions of this Act, and pursuant thereto shall issue a
6final assessment to such person or to the legal representative
7of such person for the amount found to be due as a result of
8such hearing.
9    If a protest to the notice of tax liability and a request
10for a hearing thereon is not filed within 60 days after such
11notice, such notice of tax liability shall become final without
12the necessity of a final assessment being issued and shall be
13deemed to be a final assessment.
14    After the issuance of a final assessment, or a notice of
15tax liability which becomes final without the necessity of
16actually issuing a final assessment as hereinbefore provided,
17the Department, at any time before such assessment is reduced
18to judgment, may (subject to rules of the Department) grant a
19rehearing (or grant departmental review and hold an original
20hearing if no previous hearing in the matter has been held)
21upon the application of the person aggrieved. Pursuant to such
22hearing or rehearing, the Department shall issue a revised
23final assessment to such person or his legal representative for
24the amount found to be due as a result of such hearing or
25rehearing.
26    Except in case of failure to file a return, or with the

 

 

HB5631- 71 -LRB097 17992 HLH 63215 b

1consent of the person to whom the notice of tax liability is to
2be issued, no notice of tax liability shall be issued on and
3after each July 1 and January 1 covering gross receipts
4received during any month or period of time more than 3 years
5prior to such July 1 and January 1, respectively, except that
6if a return is not filed at the required time, no a notice of
7tax liability may be issued on and after each July 1 and
8January 1 for such return filed more than 3 years prior to such
9July 1 and January 1, respectively not later than 3 years after
10the time the return is filed. The foregoing limitations upon
11the issuance of a notice of tax liability shall not apply to
12the issuance of any such notice with respect to any period of
13time prior thereto in cases where the Department has, within
14the period of limitation then provided, notified a person of
15the amount of tax computed even though the Department had not
16determined the amount of tax due from such person in the manner
17required herein prior to the issuance of such notice, but in no
18case shall the amount of any such notice of tax liability for
19any period otherwise barred by this Act exceed for such period
20the amount shown in the notice theretofore issued.
21    If, when a tax or penalty under this Act becomes due and
22payable, the person alleged to be liable therefor is out of the
23State, the notice of tax liability may be issued within the
24times herein limited after his or her coming into or return to
25the State; and if, after the tax or penalty under this Act
26becomes due and payable, the person alleged to be liable

 

 

HB5631- 72 -LRB097 17992 HLH 63215 b

1therefor departs from and remains out of the State, the time of
2his or her absence is no part of the time limited for the
3issuance of the notice of tax liability; but the foregoing
4provisions concerning absence from the State shall not apply to
5any case in which, at the time when a tax or penalty becomes
6due under this Act, the person allegedly liable therefor is not
7a resident of this State.
8    The time limitation period on the Department's right to
9issue a notice of tax liability shall not run during any period
10of time in which the order of any court has the effect of
11enjoining or restraining the Department from issuing the notice
12of tax liability.
13    In case of failure to pay the tax, or any portion thereof,
14or any penalty provided for in this Act, or interest, when due,
15the Department may bring suit to recover the amount of such
16tax, or portion thereof, or penalty or interest; or, if the
17taxpayer has died or become a person under legal disability,
18may file a claim therefor against his estate; provided that no
19such suit with respect to any tax, or portion thereof, or
20penalty, or interest shall be instituted more than 6 years
21after the date any proceedings in court for review thereof have
22terminated or the time for the taking thereof has expired
23without such proceedings being instituted, except with the
24consent of the person from whom such tax or penalty or interest
25is due; nor, except with such consent, shall such suit be
26instituted more than 6 years after the date any return is filed

 

 

HB5631- 73 -LRB097 17992 HLH 63215 b

1with the Department in cases where the return constitutes the
2basis for the suit for unpaid tax, or portion thereof, or
3penalty provided for in this Act, or interest: Provided that
4the time limitation period on the Department's right to bring
5any such suit shall not run during any period of time in which
6the order of any court has the effect of enjoining or
7restraining the Department from bringing such suit.
8    After the expiration of the period within which the person
9assessed may file an action for judicial review under the
10Administrative Review Law without such an action being filed, a
11certified copy of the final assessment or revised final
12assessment of the Department may be filed with the Circuit
13Court of the county in which the taxpayer has his principal
14place of business, or of Sangamon County in those cases in
15which the taxpayer does not have his principal place of
16business in this State. The certified copy of the final
17assessment or revised final assessment shall be accompanied by
18a certification which recites facts that are sufficient to show
19that the Department complied with the jurisdictional
20requirements of the Act in arriving at its final assessment or
21its revised final assessment and that the taxpayer had his
22opportunity for an administrative hearing and for judicial
23review, whether he availed himself or herself of either or both
24of these opportunities or not. If the court is satisfied that
25the Department complied with the jurisdictional requirements
26of the Act in arriving at its final assessment or its revised

 

 

HB5631- 74 -LRB097 17992 HLH 63215 b

1final assessment and that the taxpayer had his opportunity for
2an administrative hearing and for judicial review, whether he
3availed himself of either or both of these opportunities or
4not, the court shall render judgment in favor of the Department
5and against the taxpayer for the amount shown to be due by the
6final assessment or the revised final assessment, plus any
7interest which may be due, and such judgment shall be entered
8in the judgment docket of the court. Such judgment shall bear
9the rate of interest as set by the Uniform Penalty and Interest
10Act, but otherwise shall have the same effect as other
11judgments. The judgment may be enforced, and all laws
12applicable to sales for the enforcement of a judgment shall be
13applicable to sales made under such judgments. The Department
14shall file the certified copy of its assessment, as herein
15provided, with the Circuit Court within 6 years after such
16assessment becomes final except when the taxpayer consents in
17writing to an extension of such filing period, and except that
18the time limitation period on the Department's right to file
19the certified copy of its assessment with the Circuit Court
20shall not run during any period of time in which the order of
21any court has the effect of enjoining or restraining the
22Department from filing such certified copy of its assessment
23with the Circuit Court.
24    If, when the cause of action for a proceeding in court
25accrues against a person, he or she is out of the State, the
26action may be commenced within the times herein limited, after

 

 

HB5631- 75 -LRB097 17992 HLH 63215 b

1his or her coming into or return to the State; and if, after
2the cause of action accrues, he or she departs from and remains
3out of the State, the time of his or her absence is no part of
4the time limited for the commencement of the action; but the
5foregoing provisions concerning absence from the State shall
6not apply to any case in which, at the time the cause of action
7accrues, the party against whom the cause of action accrues is
8not a resident of this State. The time within which a court
9action is to be commenced by the Department hereunder shall not
10run from the date the taxpayer files a petition in bankruptcy
11under the Federal Bankruptcy Act until 30 days after notice of
12termination or expiration of the automatic stay imposed by the
13Federal Bankruptcy Act.
14    No claim shall be filed against the estate of any deceased
15person or any person under legal disability for any tax or
16penalty or part of either, or interest, except in the manner
17prescribed and within the time limited by the Probate Act of
181975, as amended.
19    The collection of tax or penalty or interest by any means
20provided for herein shall not be a bar to any prosecution under
21this Act.
22    In addition to any penalty provided for in this Act, any
23amount of tax which is not paid when due shall bear interest at
24the rate and in the manner specified in Sections 3-2 and 3-9 of
25the Uniform Penalty and Interest Act from the date when such
26tax becomes past due until such tax is paid or a judgment

 

 

HB5631- 76 -LRB097 17992 HLH 63215 b

1therefor is obtained by the Department. If the time for making
2or completing an audit of a taxpayer's books and records is
3extended with the taxpayer's consent, at the request of and for
4the convenience of the Department, beyond the date on which the
5statute of limitations upon the issuance of a notice of tax
6liability by the Department otherwise would run, no interest
7shall accrue during the period of such extension or until a
8Notice of Tax Liability is issued, whichever occurs first.
9    In addition to any other remedy provided by this Act, and
10regardless of whether the Department is making or intends to
11make use of such other remedy, where a corporation or limited
12liability company registered under this Act violates the
13provisions of this Act or of any rule or regulation promulgated
14thereunder, the Department may give notice to the Attorney
15General of the identity of such a corporation or limited
16liability company and of the violations committed by such a
17corporation or limited liability company, for such action as is
18not already provided for by this Act and as the Attorney
19General may deem appropriate.
20    If the Department determines that an amount of tax or
21penalty or interest was incorrectly assessed, whether as the
22result of a mistake of fact or an error of law, the Department
23shall waive the amount of tax or penalty or interest that
24accrued due to the incorrect assessment.
25(Source: P.A. 96-1383, eff. 1-1-11.)
 

 

 

HB5631- 77 -LRB097 17992 HLH 63215 b

1    Section 30. The Cigarette Tax Act is amended by changing
2Section 18c as follows:
 
3    (35 ILCS 130/18c)
4    Sec. 18c. Possession of not less than 10 and not more than
5100 original packages of contraband cigarettes; penalty. With
6the exception of licensed distributors and transporters, as
7defined in Section 9c of this Act, possessing unstamped
8original packages of cigarettes, and licensed distributors
9possessing original packages of cigarettes that bear a tax
10stamp of another state or taxing jurisdiction, anyone
11possessing not less than 10 and not more than 100 packages of
12contraband cigarettes contained in original packages is liable
13to pay to the Department, for deposit into the Tax Compliance
14and Administration Fund, a penalty of $20 $10 for each such
15package of cigarettes, unless reasonable cause can be
16established by the person upon whom the penalty is imposed.
17Reasonable cause shall be determined in each situation in
18accordance with rules adopted by the Department. The provisions
19of the Uniform Penalty and Interest Act do not apply to this
20Section.
21(Source: P.A. 96-782, eff. 1-1-10.)
 
22    Section 35. The Environmental Protection Act is amended by
23changing Section 55.8 as follows:
 

 

 

HB5631- 78 -LRB097 17992 HLH 63215 b

1    (415 ILCS 5/55.8)  (from Ch. 111 1/2, par. 1055.8)
2    Sec. 55.8. Tire retailers.
3    (a) Any person selling new or used tires at retail or
4offering new or used tires for retail sale in this State shall:
5        (1) beginning on June 20, 2003 (the effective date of
6    Public Act 93-32), collect from retail customers a fee of
7    $2 per new or used tire sold and delivered in this State,
8    to be paid to the Department of Revenue and deposited into
9    the Used Tire Management Fund, less a collection allowance
10    of 10 cents per tire to be retained by the retail seller
11    and a collection allowance of 10 cents per tire to be
12    retained by the Department of Revenue and paid into the
13    General Revenue Fund; the collection allowance for retail
14    sellers, however, shall be allowed only if the return is
15    filed timely and only for the amount that is paid timely in
16    accordance with this Title XIV;
17        (1.5) beginning on July 1, 2003, collect from retail
18    customers an additional 50 cents per new or used tire sold
19    and delivered in this State; the money collected from this
20    fee shall be deposited into the Emergency Public Health
21    Fund;
22        (2) accept for recycling used tires from customers, at
23    the point of transfer, in a quantity equal to the number of
24    new tires purchased; and
25        (3) post in a conspicuous place a written notice at
26    least 8.5 by 11 inches in size that includes the universal

 

 

HB5631- 79 -LRB097 17992 HLH 63215 b

1    recycling symbol and the following statements: "DO NOT put
2    used tires in the trash."; "Recycle your used tires."; and
3    "State law requires us to accept used tires for recycling,
4    in exchange for new tires purchased.".
5    (b) A person who accepts used tires for recycling under
6subsection (a) shall not allow the tires to accumulate for
7periods of more than 90 days.
8    (c) The requirements of subsection (a) of this Section do
9not apply to mail order sales nor shall the retail sale of a
10motor vehicle be considered to be the sale of tires at retail
11or offering of tires for retail sale. Instead of filing
12returns, retailers of tires may remit the tire user fee of
13$1.00 per tire to their suppliers of tires if the supplier of
14tires is a registered retailer of tires and agrees or otherwise
15arranges to collect and remit the tire fee to the Department of
16Revenue, notwithstanding the fact that the sale of the tire is
17a sale for resale and not a sale at retail. A tire supplier who
18enters into such an arrangement with a tire retailer shall be
19liable for the tax on all tires sold to the tire retailer and
20must (i) provide the tire retailer with a receipt that
21separately reflects the tire tax collected from the retailer on
22each transaction and (ii) accept used tires for recycling from
23the retailer's customers. The tire supplier shall be entitled
24to the collection allowance of 10 cents per tire, but only if
25the return is filed timely and only for the amount that is paid
26timely in accordance with this Title XIV.

 

 

HB5631- 80 -LRB097 17992 HLH 63215 b

1    The retailer of the tires must maintain in its books and
2records evidence that the appropriate fee was paid to the tire
3supplier and that the tire supplier has agreed to remit the fee
4to the Department of Revenue for each tire sold by the
5retailer. Otherwise, the tire retailer shall be directly liable
6for the fee on all tires sold at retail. Tire retailers paying
7the fee to their suppliers are not entitled to the collection
8allowance of 10 cents per tire.
9    (d) The requirements of subsection (a) of this Section
10shall apply exclusively to tires to be used for vehicles
11defined in Section 1-217 of the Illinois Vehicle Code, aircraft
12tires, special mobile equipment, and implements of husbandry.
13    (e) The requirements of paragraph (1) of subsection (a) do
14not apply to the sale of reprocessed tires. For purposes of
15this Section, "reprocessed tire" means a used tire that has
16been recapped, retreaded, or regrooved and that has not been
17placed on a vehicle wheel rim.
18(Source: P.A. 95-49, eff. 8-10-07; 95-331, eff. 8-21-07;
1995-876, eff. 8-21-08; 96-520, eff. 8-14-09.)
 
20    Section 95. No acceleration or delay. Where this Act makes
21changes in a statute that is represented in this Act by text
22that is not yet or no longer in effect (for example, a Section
23represented by multiple versions), the use of that text does
24not accelerate or delay the taking effect of (i) the changes
25made by this Act or (ii) provisions derived from any other

 

 

HB5631- 81 -LRB097 17992 HLH 63215 b

1Public Act.
 
2    Section 99. Effective date. This Act takes effect July 1,
32012.