97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB6146

 

Introduced , by Rep. Wayne Rosenthal - Bill Mitchell - Adam Brown - Dwight Kay - Richard Morthland, et al.

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/6z-18  from Ch. 127, par. 142z-18
30 ILCS 105/6z-20  from Ch. 127, par. 142z-20
35 ILCS 105/3-10
35 ILCS 110/3-10  from Ch. 120, par. 439.33-10
35 ILCS 115/3-10  from Ch. 120, par. 439.103-10
35 ILCS 120/2-10

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on July 1, 2012 and through December 31, 2012, with respect to motor fuel and gasohol the tax under the Acts is imposed at the rate of 1.25% (now, 6.25%). Effective immediately.


LRB097 20947 HLH 68068 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB6146LRB097 20947 HLH 68068 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 State Finance Act is amended by changing
5Sections 6z-18 and 6z-20 as follows:
 
6    (30 ILCS 105/6z-18)  (from Ch. 127, par. 142z-18)
7    Sec. 6z-18. A portion of the money paid into the Local
8Government Tax Fund from sales of food for human consumption
9which is to be consumed off the premises where it is sold
10(other than alcoholic beverages, soft drinks and food which has
11been prepared for immediate consumption) and prescription and
12nonprescription medicines, drugs, medical appliances and
13insulin, urine testing materials, syringes and needles used by
14diabetics, which occurred in municipalities, shall be
15distributed to each municipality based upon the sales which
16occurred in that municipality. The remainder shall be
17distributed to each county based upon the sales which occurred
18in the unincorporated area of that county.
19    A portion of the money paid into the Local Government Tax
20Fund from the 6.25% general use tax rate on the selling price
21of tangible personal property which is purchased outside
22Illinois at retail from a retailer and which is titled or
23registered by any agency of this State's government shall be

 

 

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1distributed to municipalities as provided in this paragraph.
2Each municipality shall receive the amount attributable to
3sales for which Illinois addresses for titling or registration
4purposes are given as being in such municipality. The remainder
5of the money paid into the Local Government Tax Fund from such
6sales shall be distributed to counties. Each county shall
7receive the amount attributable to sales for which Illinois
8addresses for titling or registration purposes are given as
9being located in the unincorporated area of such county.
10    A portion of the money paid into the Local Government Tax
11Fund from the 6.25% general rate (and, beginning July 1, 2000
12and through December 31, 2000 and beginning again on July 1,
132012 and through December 31, 2012, the 1.25% rate on motor
14fuel and gasohol, and beginning on August 6, 2010 through
15August 15, 2010, the 1.25% rate on sales tax holiday items) on
16sales subject to taxation under the Retailers' Occupation Tax
17Act and the Service Occupation Tax Act, which occurred in
18municipalities, shall be distributed to each municipality,
19based upon the sales which occurred in that municipality. The
20remainder shall be distributed to each county, based upon the
21sales which occurred in the unincorporated area of such county.
22    For the purpose of determining allocation to the local
23government unit, a retail sale by a producer of coal or other
24mineral mined in Illinois is a sale at retail at the place
25where the coal or other mineral mined in Illinois is extracted
26from the earth. This paragraph does not apply to coal or other

 

 

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1mineral when it is delivered or shipped by the seller to the
2purchaser at a point outside Illinois so that the sale is
3exempt under the United States Constitution as a sale in
4interstate or foreign commerce.
5    Whenever the Department determines that a refund of money
6paid into the Local Government Tax Fund should be made to a
7claimant instead of issuing a credit memorandum, the Department
8shall notify the State Comptroller, who shall cause the order
9to be drawn for the amount specified, and to the person named,
10in such notification from the Department. Such refund shall be
11paid by the State Treasurer out of the Local Government Tax
12Fund.
13    As soon as possible after the first day of each month,
14beginning January 1, 2011, upon certification of the Department
15of Revenue, the Comptroller shall order transferred, and the
16Treasurer shall transfer, to the STAR Bonds Revenue Fund the
17local sales tax increment, as defined in the Innovation
18Development and Economy Act, collected during the second
19preceding calendar month for sales within a STAR bond district
20and deposited into the Local Government Tax Fund, less 3% of
21that amount, which shall be transferred into the Tax Compliance
22and Administration Fund and shall be used by the Department,
23subject to appropriation, to cover the costs of the Department
24in administering the Innovation Development and Economy Act.
25    After the monthly transfer to the STAR Bonds Revenue Fund,
26on or before the 25th day of each calendar month, the

 

 

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1Department shall prepare and certify to the Comptroller the
2disbursement of stated sums of money to named municipalities
3and counties, the municipalities and counties to be those
4entitled to distribution of taxes or penalties paid to the
5Department during the second preceding calendar month. The
6amount to be paid to each municipality or county shall be the
7amount (not including credit memoranda) collected during the
8second preceding calendar month by the Department and paid into
9the Local Government Tax Fund, plus an amount the Department
10determines is necessary to offset any amounts which were
11erroneously paid to a different taxing body, and not including
12an amount equal to the amount of refunds made during the second
13preceding calendar month by the Department, and not including
14any amount which the Department determines is necessary to
15offset any amounts which are payable to a different taxing body
16but were erroneously paid to the municipality or county, and
17not including any amounts that are transferred to the STAR
18Bonds Revenue Fund. Within 10 days after receipt, by the
19Comptroller, of the disbursement certification to the
20municipalities and counties, provided for in this Section to be
21given to the Comptroller by the Department, the Comptroller
22shall cause the orders to be drawn for the respective amounts
23in accordance with the directions contained in such
24certification.
25    When certifying the amount of monthly disbursement to a
26municipality or county under this Section, the Department shall

 

 

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1increase or decrease that amount by an amount necessary to
2offset any misallocation of previous disbursements. The offset
3amount shall be the amount erroneously disbursed within the 6
4months preceding the time a misallocation is discovered.
5    The provisions directing the distributions from the
6special fund in the State Treasury provided for in this Section
7shall constitute an irrevocable and continuing appropriation
8of all amounts as provided herein. The State Treasurer and
9State Comptroller are hereby authorized to make distributions
10as provided in this Section.
11    In construing any development, redevelopment, annexation,
12preannexation or other lawful agreement in effect prior to
13September 1, 1990, which describes or refers to receipts from a
14county or municipal retailers' occupation tax, use tax or
15service occupation tax which now cannot be imposed, such
16description or reference shall be deemed to include the
17replacement revenue for such abolished taxes, distributed from
18the Local Government Tax Fund.
19(Source: P.A. 96-939, eff. 6-24-10; 96-1012, eff. 7-7-10;
2097-333, eff. 8-12-11.)
 
21    (30 ILCS 105/6z-20)  (from Ch. 127, par. 142z-20)
22    Sec. 6z-20. Of the money received from the 6.25% general
23rate (and, beginning July 1, 2000 and through December 31, 2000
24and beginning again on July 1, 2012 and through December 31,
252012, the 1.25% rate on motor fuel and gasohol, and beginning

 

 

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1on August 6, 2010 through August 15, 2010, the 1.25% rate on
2sales tax holiday items) on sales subject to taxation under the
3Retailers' Occupation Tax Act and Service Occupation Tax Act
4and paid into the County and Mass Transit District Fund,
5distribution to the Regional Transportation Authority tax
6fund, created pursuant to Section 4.03 of the Regional
7Transportation Authority Act, for deposit therein shall be made
8based upon the retail sales occurring in a county having more
9than 3,000,000 inhabitants. The remainder shall be distributed
10to each county having 3,000,000 or fewer inhabitants based upon
11the retail sales occurring in each such county.
12    For the purpose of determining allocation to the local
13government unit, a retail sale by a producer of coal or other
14mineral mined in Illinois is a sale at retail at the place
15where the coal or other mineral mined in Illinois is extracted
16from the earth. This paragraph does not apply to coal or other
17mineral when it is delivered or shipped by the seller to the
18purchaser at a point outside Illinois so that the sale is
19exempt under the United States Constitution as a sale in
20interstate or foreign commerce.
21    Of the money received from the 6.25% general use tax rate
22on tangible personal property which is purchased outside
23Illinois at retail from a retailer and which is titled or
24registered by any agency of this State's government and paid
25into the County and Mass Transit District Fund, the amount for
26which Illinois addresses for titling or registration purposes

 

 

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1are given as being in each county having more than 3,000,000
2inhabitants shall be distributed into the Regional
3Transportation Authority tax fund, created pursuant to Section
44.03 of the Regional Transportation Authority Act. The
5remainder of the money paid from such sales shall be
6distributed to each county based on sales for which Illinois
7addresses for titling or registration purposes are given as
8being located in the county. Any money paid into the Regional
9Transportation Authority Occupation and Use Tax Replacement
10Fund from the County and Mass Transit District Fund prior to
11January 14, 1991, which has not been paid to the Authority
12prior to that date, shall be transferred to the Regional
13Transportation Authority tax fund.
14    Whenever the Department determines that a refund of money
15paid into the County and Mass Transit District Fund should be
16made to a claimant instead of issuing a credit memorandum, the
17Department shall notify the State Comptroller, who shall cause
18the order to be drawn for the amount specified, and to the
19person named, in such notification from the Department. Such
20refund shall be paid by the State Treasurer out of the County
21and Mass Transit District Fund.
22    As soon as possible after the first day of each month,
23beginning January 1, 2011, upon certification of the Department
24of Revenue, the Comptroller shall order transferred, and the
25Treasurer shall transfer, to the STAR Bonds Revenue Fund the
26local sales tax increment, as defined in the Innovation

 

 

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1Development and Economy Act, collected during the second
2preceding calendar month for sales within a STAR bond district
3and deposited into the County and Mass Transit District Fund,
4less 3% of that amount, which shall be transferred into the Tax
5Compliance and Administration Fund and shall be used by the
6Department, subject to appropriation, to cover the costs of the
7Department in administering the Innovation Development and
8Economy Act.
9    After the monthly transfer to the STAR Bonds Revenue Fund,
10on or before the 25th day of each calendar month, the
11Department shall prepare and certify to the Comptroller the
12disbursement of stated sums of money to the Regional
13Transportation Authority and to named counties, the counties to
14be those entitled to distribution, as hereinabove provided, of
15taxes or penalties paid to the Department during the second
16preceding calendar month. The amount to be paid to the Regional
17Transportation Authority and each county having 3,000,000 or
18fewer inhabitants shall be the amount (not including credit
19memoranda) collected during the second preceding calendar
20month by the Department and paid into the County and Mass
21Transit District Fund, plus an amount the Department determines
22is necessary to offset any amounts which were erroneously paid
23to a different taxing body, and not including an amount equal
24to the amount of refunds made during the second preceding
25calendar month by the Department, and not including any amount
26which the Department determines is necessary to offset any

 

 

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1amounts which were payable to a different taxing body but were
2erroneously paid to the Regional Transportation Authority or
3county, and not including any amounts that are transferred to
4the STAR Bonds Revenue Fund. Within 10 days after receipt, by
5the Comptroller, of the disbursement certification to the
6Regional Transportation Authority and counties, provided for
7in this Section to be given to the Comptroller by the
8Department, the Comptroller shall cause the orders to be drawn
9for the respective amounts in accordance with the directions
10contained in such certification.
11    When certifying the amount of a monthly disbursement to the
12Regional Transportation Authority or to a county under this
13Section, the Department shall increase or decrease that amount
14by an amount necessary to offset any misallocation of previous
15disbursements. The offset amount shall be the amount
16erroneously disbursed within the 6 months preceding the time a
17misallocation is discovered.
18    The provisions directing the distributions from the
19special fund in the State Treasury provided for in this Section
20and from the Regional Transportation Authority tax fund created
21by Section 4.03 of the Regional Transportation Authority Act
22shall constitute an irrevocable and continuing appropriation
23of all amounts as provided herein. The State Treasurer and
24State Comptroller are hereby authorized to make distributions
25as provided in this Section.
26    In construing any development, redevelopment, annexation,

 

 

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1preannexation or other lawful agreement in effect prior to
2September 1, 1990, which describes or refers to receipts from a
3county or municipal retailers' occupation tax, use tax or
4service occupation tax which now cannot be imposed, such
5description or reference shall be deemed to include the
6replacement revenue for such abolished taxes, distributed from
7the County and Mass Transit District Fund or Local Government
8Distributive Fund, as the case may be.
9(Source: P.A. 96-939, eff. 6-24-10; 96-1012, eff. 7-7-10;
1097-333, eff. 8-12-11.)
 
11    Section 10. The Use Tax Act is amended by changing Section
123-10 as follows:
 
13    (35 ILCS 105/3-10)
14    (Text of Section before amendment by P.A. 97-636)
15    Sec. 3-10. Rate of tax. Unless otherwise provided in this
16Section, the tax imposed by this Act is at the rate of 6.25% of
17either the selling price or the fair market value, if any, of
18the tangible personal property. In all cases where property
19functionally used or consumed is the same as the property that
20was purchased at retail, then the tax is imposed on the selling
21price of the property. In all cases where property functionally
22used or consumed is a by-product or waste product that has been
23refined, manufactured, or produced from property purchased at
24retail, then the tax is imposed on the lower of the fair market

 

 

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1value, if any, of the specific property so used in this State
2or on the selling price of the property purchased at retail.
3For purposes of this Section "fair market value" means the
4price at which property would change hands between a willing
5buyer and a willing seller, neither being under any compulsion
6to buy or sell and both having reasonable knowledge of the
7relevant facts. The fair market value shall be established by
8Illinois sales by the taxpayer of the same property as that
9functionally used or consumed, or if there are no such sales by
10the taxpayer, then comparable sales or purchases of property of
11like kind and character in Illinois.
12    Beginning on July 1, 2000 and through December 31, 2000 and
13beginning again on July 1, 2012 and through December 31, 2012,
14with respect to motor fuel, as defined in Section 1.1 of the
15Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
16the Use Tax Act, the tax is imposed at the rate of 1.25%.
17    Beginning on August 6, 2010 through August 15, 2010, with
18respect to sales tax holiday items as defined in Section 3-6 of
19this Act, the tax is imposed at the rate of 1.25%.
20    With respect to gasohol, the tax imposed by this Act
21applies to (i) 70% of the proceeds of sales made on or after
22January 1, 1990, and before July 1, 2003, (ii) 80% of the
23proceeds of sales made on or after July 1, 2003 and on or
24before December 31, 2013, and (iii) 100% of the proceeds of
25sales made thereafter. If, at any time, however, the tax under
26this Act on sales of gasohol is imposed at the rate of 1.25%,

 

 

HB6146- 12 -LRB097 20947 HLH 68068 b

1then the tax imposed by this Act applies to 100% of the
2proceeds of sales of gasohol made during that time.
3    With respect to majority blended ethanol fuel, the tax
4imposed by this Act does not apply to the proceeds of sales
5made on or after July 1, 2003 and on or before December 31,
62013 but applies to 100% of the proceeds of sales made
7thereafter.
8    With respect to biodiesel blends with no less than 1% and
9no more than 10% biodiesel, the tax imposed by this Act applies
10to (i) 80% of the proceeds of sales made on or after July 1,
112003 and on or before December 31, 2013 and (ii) 100% of the
12proceeds of sales made thereafter. If, at any time, however,
13the tax under this Act on sales of biodiesel blends with no
14less than 1% and no more than 10% biodiesel is imposed at the
15rate of 1.25%, then the tax imposed by this Act applies to 100%
16of the proceeds of sales of biodiesel blends with no less than
171% and no more than 10% biodiesel made during that time.
18    With respect to 100% biodiesel and biodiesel blends with
19more than 10% but no more than 99% biodiesel, the tax imposed
20by this Act does not apply to the proceeds of sales made on or
21after July 1, 2003 and on or before December 31, 2013 but
22applies to 100% of the proceeds of sales made thereafter.
23    With respect to food for human consumption that is to be
24consumed off the premises where it is sold (other than
25alcoholic beverages, soft drinks, and food that has been
26prepared for immediate consumption) and prescription and

 

 

HB6146- 13 -LRB097 20947 HLH 68068 b

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

 

 

HB6146- 14 -LRB097 20947 HLH 68068 b

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

 

 

HB6146- 15 -LRB097 20947 HLH 68068 b

1definition of "over-the-counter-drugs". For the purposes of
2this paragraph, "over-the-counter-drug" means a drug for human
3use that contains a label that identifies the product as a drug
4as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
5label includes:
6        (A) A "Drug Facts" panel; or
7        (B) A statement of the "active ingredient(s)" with a
8    list of those ingredients contained in the compound,
9    substance or preparation.
10    If the property that is purchased at retail from a retailer
11is acquired outside Illinois and used outside Illinois before
12being brought to Illinois for use here and is taxable under
13this Act, the "selling price" on which the tax is computed
14shall be reduced by an amount that represents a reasonable
15allowance for depreciation for the period of prior out-of-state
16use.
17(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
18eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10.)
 
19    (Text of Section after amendment by P.A. 97-636)
20    Sec. 3-10. Rate of tax. Unless otherwise provided in this
21Section, the tax imposed by this Act is at the rate of 6.25% of
22either the selling price or the fair market value, if any, of
23the tangible personal property. In all cases where property
24functionally used or consumed is the same as the property that
25was purchased at retail, then the tax is imposed on the selling

 

 

HB6146- 16 -LRB097 20947 HLH 68068 b

1price of the property. In all cases where property functionally
2used or consumed is a by-product or waste product that has been
3refined, manufactured, or produced from property purchased at
4retail, then the tax is imposed on the lower of the fair market
5value, if any, of the specific property so used in this State
6or on the selling price of the property purchased at retail.
7For purposes of this Section "fair market value" means the
8price at which property would change hands between a willing
9buyer and a willing seller, neither being under any compulsion
10to buy or sell and both having reasonable knowledge of the
11relevant facts. The fair market value shall be established by
12Illinois sales by the taxpayer of the same property as that
13functionally used or consumed, or if there are no such sales by
14the taxpayer, then comparable sales or purchases of property of
15like kind and character in Illinois.
16    Beginning on July 1, 2000 and through December 31, 2000 and
17beginning again on July 1, 2012 and through December 31, 2012,
18with respect to motor fuel, as defined in Section 1.1 of the
19Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
20the Use Tax Act, the tax is imposed at the rate of 1.25%.
21    Beginning on August 6, 2010 through August 15, 2010, with
22respect to sales tax holiday items as defined in Section 3-6 of
23this Act, the tax is imposed at the rate of 1.25%.
24    With respect to gasohol, the tax imposed by this Act
25applies to (i) 70% of the proceeds of sales made on or after
26January 1, 1990, and before July 1, 2003, (ii) 80% of the

 

 

HB6146- 17 -LRB097 20947 HLH 68068 b

1proceeds of sales made on or after July 1, 2003 and on or
2before December 31, 2018, and (iii) 100% of the proceeds of
3sales made thereafter. If, at any time, however, the tax under
4this Act on sales of gasohol is imposed at the rate of 1.25%,
5then the tax imposed by this Act applies to 100% of the
6proceeds of sales of gasohol made during that time.
7    With respect to majority blended ethanol fuel, the tax
8imposed by this Act does not apply to the proceeds of sales
9made on or after July 1, 2003 and on or before December 31,
102018 but applies to 100% of the proceeds of sales made
11thereafter.
12    With respect to biodiesel blends with no less than 1% and
13no more than 10% biodiesel, the tax imposed by this Act applies
14to (i) 80% of the proceeds of sales made on or after July 1,
152003 and on or before December 31, 2018 and (ii) 100% of the
16proceeds of sales made thereafter. If, at any time, however,
17the tax under this Act on sales of biodiesel blends with no
18less than 1% and no more than 10% biodiesel is imposed at the
19rate of 1.25%, then the tax imposed by this Act applies to 100%
20of the proceeds of sales of biodiesel blends with no less than
211% and no more than 10% biodiesel made during that time.
22    With respect to 100% biodiesel and biodiesel blends with
23more than 10% but no more than 99% biodiesel, the tax imposed
24by this Act does not apply to the proceeds of sales made on or
25after July 1, 2003 and on or before December 31, 2018 but
26applies to 100% of the proceeds of sales made thereafter.

 

 

HB6146- 18 -LRB097 20947 HLH 68068 b

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

 

 

HB6146- 19 -LRB097 20947 HLH 68068 b

1than 50% of vegetable or fruit juice by volume.
2    Until August 1, 2009, and notwithstanding any other
3provisions of this Act, "food for human consumption that is to
4be consumed off the premises where it is sold" includes all
5food 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
8August 1, 2009, and notwithstanding any other provisions of
9this Act, "food for human consumption that is to be consumed
10off the premises where it is sold" includes all food sold
11through a vending machine, except soft drinks, candy, and food
12products that are dispensed hot from a vending machine,
13regardless 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"

 

 

HB6146- 20 -LRB097 20947 HLH 68068 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 purchased at retail from a retailer
15is acquired 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; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10;
2397-636, eff. 6-1-12.)
 
24    Section 15. The Service Use Tax Act is amended by changing
25Section 3-10 as follows:
 

 

 

HB6146- 21 -LRB097 20947 HLH 68068 b

1    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
2    (Text of Section before amendment by P.A. 97-636)
3    Sec. 3-10. Rate of tax. Unless otherwise provided in this
4Section, the tax imposed by this Act is at the rate of 6.25% of
5the selling price of tangible personal property transferred as
6an incident to the sale of service, but, for the purpose of
7computing this tax, in no event shall the selling price be less
8than the cost price of the property to the serviceman.
9    Beginning on July 1, 2000 and through December 31, 2000 and
10beginning again on July 1, 2012 and through December 31, 2012,
11with respect to motor fuel, as defined in Section 1.1 of the
12Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
13the Use Tax Act, the tax is imposed at the rate of 1.25%.
14    With respect to gasohol, as defined in the Use Tax Act, the
15tax imposed by this Act applies to (i) 70% of the selling price
16of property transferred as an incident to the sale of service
17on or after January 1, 1990, and before July 1, 2003, (ii) 80%
18of the selling price of property transferred as an incident to
19the sale of service on or after July 1, 2003 and on or before
20December 31, 2013, and (iii) 100% of the selling price
21thereafter. If, at any time, however, the tax under this Act on
22sales of gasohol, as defined in the Use Tax Act, is imposed at
23the rate of 1.25%, then the tax imposed by this Act applies to
24100% of the proceeds of sales of gasohol made during that time.
25    With respect to majority blended ethanol fuel, as defined

 

 

HB6146- 22 -LRB097 20947 HLH 68068 b

1in the Use Tax Act, the tax imposed by this Act does not apply
2to the selling price of property transferred as an incident to
3the sale of service on or after July 1, 2003 and on or before
4December 31, 2013 but applies to 100% of the selling price
5thereafter.
6    With respect to biodiesel blends, as defined in the Use Tax
7Act, with no less than 1% and no more than 10% biodiesel, the
8tax imposed by this Act applies to (i) 80% of the selling price
9of property transferred as an incident to the sale of service
10on or after July 1, 2003 and on or before December 31, 2013 and
11(ii) 100% of the proceeds of the selling price thereafter. If,
12at any time, however, the tax under this Act on sales of
13biodiesel blends, as defined in the Use Tax Act, with no less
14than 1% and no more than 10% biodiesel is imposed at the rate
15of 1.25%, then the tax imposed by this Act applies to 100% of
16the proceeds of sales of biodiesel blends with no less than 1%
17and no more than 10% biodiesel made during that time.
18    With respect to 100% biodiesel, as defined in the Use Tax
19Act, and biodiesel blends, as defined in the Use Tax Act, with
20more than 10% but no more than 99% biodiesel, the tax imposed
21by this Act does not apply to the proceeds of the selling price
22of property transferred as an incident to the sale of service
23on or after July 1, 2003 and on or before December 31, 2013 but
24applies to 100% of the selling price thereafter.
25    At the election of any registered serviceman made for each
26fiscal year, sales of service in which the aggregate annual

 

 

HB6146- 23 -LRB097 20947 HLH 68068 b

1cost price of tangible personal property transferred as an
2incident to the sales of service is less than 35%, or 75% in
3the case of servicemen transferring prescription drugs or
4servicemen engaged in graphic arts production, of the aggregate
5annual total gross receipts from all sales of service, the tax
6imposed by this Act shall be based on the serviceman's cost
7price of the tangible personal property transferred as an
8incident to the sale of those services.
9    The tax shall be imposed at the rate of 1% on food prepared
10for immediate consumption and transferred incident to a sale of
11service subject to this Act or the Service Occupation Tax Act
12by an entity licensed under the Hospital Licensing Act, the
13Nursing Home Care Act, the ID/DD Community Care Act, the
14Specialized Mental Health Rehabilitation Act, or the Child Care
15Act of 1969. The tax shall also be imposed at the rate of 1% on
16food for human consumption that is to be consumed off the
17premises where it is sold (other than alcoholic beverages, soft
18drinks, and food that has been prepared for immediate
19consumption and is not otherwise included in this paragraph)
20and prescription and nonprescription medicines, drugs, medical
21appliances, modifications to a motor vehicle for the purpose of
22rendering it usable by a disabled person, and insulin, urine
23testing materials, syringes, and needles used by diabetics, for
24human use. For the purposes of this Section, until September 1,
252009: the term "soft drinks" means any complete, finished,
26ready-to-use, non-alcoholic drink, whether carbonated or not,

 

 

HB6146- 24 -LRB097 20947 HLH 68068 b

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

 

 

HB6146- 25 -LRB097 20947 HLH 68068 b

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

 

 

HB6146- 26 -LRB097 20947 HLH 68068 b

1    substance or preparation.
2    If the property that is acquired from a serviceman is
3acquired outside Illinois and used outside Illinois before
4being brought to Illinois for use here and is taxable under
5this Act, the "selling price" on which the tax is computed
6shall be reduced by an amount that represents a reasonable
7allowance for depreciation for the period of prior out-of-state
8use.
9(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
10eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38,
11eff. 6-28-11; 97-227, eff. 1-1-12; revised 9-12-11.)
 
12    (Text of Section after amendment by P.A. 97-636)
13    Sec. 3-10. Rate of tax. Unless otherwise provided in this
14Section, the tax imposed by this Act is at the rate of 6.25% of
15the selling price of tangible personal property transferred as
16an incident to the sale of service, but, for the purpose of
17computing this tax, in no event shall the selling price be less
18than the cost price of the property to the serviceman.
19    Beginning on July 1, 2000 and through December 31, 2000 and
20beginning again on July 1, 2012 and through December 31, 2012,
21with respect to motor fuel, as defined in Section 1.1 of the
22Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
23the Use Tax Act, the tax is imposed at the rate of 1.25%.
24    With respect to gasohol, as defined in the Use Tax Act, the
25tax imposed by this Act applies to (i) 70% of the selling price

 

 

HB6146- 27 -LRB097 20947 HLH 68068 b

1of property transferred as an incident to the sale of service
2on or after January 1, 1990, and before July 1, 2003, (ii) 80%
3of the selling price of property transferred as an incident to
4the sale of service on or after July 1, 2003 and on or before
5December 31, 2018, and (iii) 100% of the selling price
6thereafter. If, at any time, however, the tax under this Act on
7sales of gasohol, as defined in the Use Tax Act, is imposed at
8the rate of 1.25%, then the tax imposed by this Act applies to
9100% of the proceeds of sales of gasohol made during that time.
10    With respect to majority blended ethanol fuel, as defined
11in the Use Tax Act, the tax imposed by this Act does not apply
12to the selling price of property transferred as an incident to
13the sale of service on or after July 1, 2003 and on or before
14December 31, 2018 but applies to 100% of the selling price
15thereafter.
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 selling price
19of property transferred as an incident to the sale of service
20on or after July 1, 2003 and on or before December 31, 2018 and
21(ii) 100% of the proceeds of the selling price thereafter. If,
22at any time, however, the tax under this Act on sales of
23biodiesel blends, as defined in the Use Tax Act, with no less
24than 1% and no more than 10% biodiesel is imposed at the rate
25of 1.25%, then the tax imposed by this Act applies to 100% of
26the proceeds of sales of biodiesel blends with no less than 1%

 

 

HB6146- 28 -LRB097 20947 HLH 68068 b

1and no more than 10% biodiesel made during that time.
2    With respect to 100% biodiesel, as defined in the Use Tax
3Act, and biodiesel blends, as defined in the Use Tax Act, with
4more than 10% but no more than 99% biodiesel, the tax imposed
5by this Act does not apply to the proceeds of the selling price
6of property transferred as an incident to the sale of service
7on or after July 1, 2003 and on or before December 31, 2018 but
8applies to 100% of the selling price thereafter.
9    At the election of any registered serviceman made for each
10fiscal year, sales of service in which the aggregate annual
11cost price of tangible personal property transferred as an
12incident to the sales of service is less than 35%, or 75% in
13the case of servicemen transferring prescription drugs or
14servicemen engaged in graphic arts production, of the aggregate
15annual total gross receipts from all sales of service, the tax
16imposed by this Act shall be based on the serviceman's cost
17price of the tangible personal property transferred as an
18incident to the sale of those services.
19    The tax shall be imposed at the rate of 1% on food prepared
20for immediate consumption and transferred incident to a sale of
21service subject to this Act or the Service Occupation Tax Act
22by an entity licensed under the Hospital Licensing Act, the
23Nursing Home Care Act, the ID/DD Community Care Act, the
24Specialized Mental Health Rehabilitation Act, or the Child Care
25Act of 1969. The tax shall also be imposed at the rate of 1% on
26food for human consumption that is to be consumed off the

 

 

HB6146- 29 -LRB097 20947 HLH 68068 b

1premises where it is sold (other than alcoholic beverages, soft
2drinks, and food that has been prepared for immediate
3consumption and is not otherwise included in this paragraph)
4and prescription and nonprescription medicines, drugs, medical
5appliances, modifications to a motor vehicle for the purpose of
6rendering it usable by a disabled person, and insulin, urine
7testing materials, syringes, and needles used by diabetics, for
8human use. For the purposes of this Section, until September 1,
92009: the term "soft drinks" means any complete, finished,
10ready-to-use, non-alcoholic drink, whether carbonated or not,
11including but not limited to soda water, cola, fruit juice,
12vegetable juice, carbonated water, and all other preparations
13commonly known as soft drinks of whatever kind or description
14that are contained in any closed or sealed bottle, can, carton,
15or container, regardless of size; but "soft drinks" does not
16include coffee, tea, non-carbonated water, infant formula,
17milk or milk products as defined in the Grade A Pasteurized
18Milk and Milk Products Act, or drinks containing 50% or more
19natural fruit or vegetable juice.
20    Notwithstanding any other provisions of this Act,
21beginning September 1, 2009, "soft drinks" means non-alcoholic
22beverages that contain natural or artificial sweeteners. "Soft
23drinks" do not include beverages that contain milk or milk
24products, soy, rice or similar milk substitutes, or greater
25than 50% of vegetable or fruit juice by volume.
26    Until August 1, 2009, and notwithstanding any other

 

 

HB6146- 30 -LRB097 20947 HLH 68068 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 and
4food products that are dispensed hot from a vending machine,
5regardless of the location of the vending machine. Beginning
6August 1, 2009, and notwithstanding any other provisions of
7this Act, "food for human consumption that is to be consumed
8off the premises where it is sold" includes all food sold
9through a vending machine, except soft drinks, candy, and food
10products that are dispensed hot from a vending machine,
11regardless of the location of the vending machine.
12    Notwithstanding any other provisions of this Act,
13beginning September 1, 2009, "food for human consumption that
14is to be consumed off the premises where it is sold" does not
15include candy. For purposes of this Section, "candy" means a
16preparation of sugar, honey, or other natural or artificial
17sweeteners in combination with chocolate, fruits, nuts or other
18ingredients or flavorings in the form of bars, drops, or
19pieces. "Candy" does not include any preparation that contains
20flour or requires refrigeration.
21    Notwithstanding any other provisions of this Act,
22beginning September 1, 2009, "nonprescription medicines and
23drugs" does not include grooming and hygiene products. For
24purposes of this Section, "grooming and hygiene products"
25includes, but is not limited to, soaps and cleaning solutions,
26shampoo, toothpaste, mouthwash, antiperspirants, and sun tan

 

 

HB6146- 31 -LRB097 20947 HLH 68068 b

1lotions and screens, unless those products are available by
2prescription only, regardless of whether the products meet the
3definition of "over-the-counter-drugs". For the purposes of
4this paragraph, "over-the-counter-drug" means a drug for human
5use that contains a label that identifies the product as a drug
6as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
7label includes:
8        (A) A "Drug Facts" panel; or
9        (B) A statement of the "active ingredient(s)" with a
10    list of those ingredients contained in the compound,
11    substance or preparation.
12    If the property that is acquired from a serviceman is
13acquired outside Illinois and used outside Illinois before
14being brought to Illinois for use here and is taxable under
15this Act, the "selling price" on which the tax is computed
16shall be reduced by an amount that represents a reasonable
17allowance for depreciation for the period of prior out-of-state
18use.
19(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
20eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38,
21eff. 6-28-11; 97-227, eff. 1-1-12; 97-636, eff. 6-1-12.)
 
22    Section 20. The Service Occupation Tax Act is amended by
23changing Section 3-10 as follows:
 
24    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)

 

 

HB6146- 32 -LRB097 20947 HLH 68068 b

1    (Text of Section before amendment by P.A. 97-636)
2    Sec. 3-10. Rate of tax. Unless otherwise provided in this
3Section, the tax imposed by this Act is at the rate of 6.25% of
4the "selling price", as defined in Section 2 of the Service Use
5Tax Act, of the tangible personal property. For the purpose of
6computing this tax, in no event shall the "selling price" be
7less than the cost price to the serviceman of the tangible
8personal property transferred. The selling price of each item
9of tangible personal property transferred as an incident of a
10sale of service may be shown as a distinct and separate item on
11the serviceman's billing to the service customer. If the
12selling price is not so shown, the selling price of the
13tangible personal property is deemed to be 50% of the
14serviceman's entire billing to the service customer. When,
15however, a serviceman contracts to design, develop, and produce
16special order machinery or equipment, the tax imposed by this
17Act shall be based on the serviceman's cost price of the
18tangible personal property transferred incident to the
19completion of the contract.
20    Beginning on July 1, 2000 and through December 31, 2000 and
21beginning again on July 1, 2012 and through December 31, 2012,
22with respect to motor fuel, as defined in Section 1.1 of the
23Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
24the Use Tax Act, the tax is imposed at the rate of 1.25%.
25    With respect to gasohol, as defined in the Use Tax Act, the
26tax imposed by this Act shall apply to (i) 70% of the cost

 

 

HB6146- 33 -LRB097 20947 HLH 68068 b

1price of property transferred as an incident to the sale of
2service on or after January 1, 1990, and before July 1, 2003,
3(ii) 80% of the selling price of property transferred as an
4incident to the sale of service on or after July 1, 2003 and on
5or before December 31, 2013, and (iii) 100% of the cost price
6thereafter. If, at any time, however, the tax under this Act on
7sales of gasohol, as defined in the Use Tax Act, is imposed at
8the rate of 1.25%, then the tax imposed by this Act applies to
9100% of the proceeds of sales of gasohol made during that time.
10    With respect to majority blended ethanol fuel, as defined
11in the Use Tax Act, the tax imposed by this Act does not apply
12to the selling price of property transferred as an incident to
13the sale of service on or after July 1, 2003 and on or before
14December 31, 2013 but applies to 100% of the selling price
15thereafter.
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 selling price
19of property transferred as an incident to the sale of service
20on or after July 1, 2003 and on or before December 31, 2013 and
21(ii) 100% of the proceeds of the selling price thereafter. If,
22at any time, however, the tax under this Act on sales of
23biodiesel blends, as defined in the Use Tax Act, with no less
24than 1% and no more than 10% biodiesel is imposed at the rate
25of 1.25%, then the tax imposed by this Act applies to 100% of
26the proceeds of sales of biodiesel blends with no less than 1%

 

 

HB6146- 34 -LRB097 20947 HLH 68068 b

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

 

 

HB6146- 35 -LRB097 20947 HLH 68068 b

1food for human consumption that is to be consumed off the
2premises where it is sold (other than alcoholic beverages, soft
3drinks, and food that has been prepared for immediate
4consumption and is not otherwise included in this paragraph)
5and prescription and nonprescription medicines, drugs, medical
6appliances, modifications to a motor vehicle for the purpose of
7rendering it usable by a disabled person, and insulin, urine
8testing materials, syringes, and needles used by diabetics, for
9human use. For the purposes of this Section, until September 1,
102009: the term "soft drinks" means any complete, finished,
11ready-to-use, non-alcoholic drink, whether carbonated or not,
12including but not limited to soda water, cola, fruit juice,
13vegetable juice, carbonated water, and all other preparations
14commonly known as soft drinks of whatever kind or description
15that are contained in any closed or sealed can, carton, or
16container, regardless of size; but "soft drinks" does not
17include coffee, tea, non-carbonated water, infant formula,
18milk or milk products as defined in the Grade A Pasteurized
19Milk and Milk Products Act, or drinks containing 50% or more
20natural fruit or vegetable juice.
21    Notwithstanding any other provisions of this Act,
22beginning September 1, 2009, "soft drinks" means non-alcoholic
23beverages that contain natural or artificial sweeteners. "Soft
24drinks" do not include beverages that contain milk or milk
25products, soy, rice or similar milk substitutes, or greater
26than 50% of vegetable or fruit juice by volume.

 

 

HB6146- 36 -LRB097 20947 HLH 68068 b

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

 

 

HB6146- 37 -LRB097 20947 HLH 68068 b

1shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
2lotions and screens, unless those products are available by
3prescription only, regardless of whether the products meet the
4definition of "over-the-counter-drugs". For the purposes of
5this paragraph, "over-the-counter-drug" means a drug for human
6use that contains a label that identifies the product as a drug
7as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
8label includes:
9        (A) A "Drug Facts" panel; or
10        (B) A statement of the "active ingredient(s)" with a
11    list of those ingredients contained in the compound,
12    substance or preparation.
13(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
14eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38,
15eff. 6-28-11; 97-227, eff. 1-1-12; revised 9-12-11.)
 
16    (Text of Section after amendment by P.A. 97-636)
17    Sec. 3-10. Rate of tax. Unless otherwise provided in this
18Section, the tax imposed by this Act is at the rate of 6.25% of
19the "selling price", as defined in Section 2 of the Service Use
20Tax Act, of the tangible personal property. For the purpose of
21computing this tax, in no event shall the "selling price" be
22less than the cost price to the serviceman of the tangible
23personal property transferred. The selling price of each item
24of tangible personal property transferred as an incident of a
25sale of service may be shown as a distinct and separate item on

 

 

HB6146- 38 -LRB097 20947 HLH 68068 b

1the serviceman's billing to the service customer. If the
2selling price is not so shown, the selling price of the
3tangible personal property is deemed to be 50% of the
4serviceman's entire billing to the service customer. When,
5however, a serviceman contracts to design, develop, and produce
6special order machinery or equipment, the tax imposed by this
7Act shall be based on the serviceman's cost price of the
8tangible personal property transferred incident to the
9completion of the contract.
10    Beginning on July 1, 2000 and through December 31, 2000 and
11beginning again on July 1, 2012 and through December 31, 2012,
12with respect to motor fuel, as defined in Section 1.1 of the
13Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
14the Use Tax Act, the tax is imposed at the rate of 1.25%.
15    With respect to gasohol, as defined in the Use Tax Act, the
16tax imposed by this Act shall apply to (i) 70% of the cost
17price of property transferred as an incident to the sale of
18service on or after January 1, 1990, and before July 1, 2003,
19(ii) 80% of the selling price of property transferred as an
20incident to the sale of service on or after July 1, 2003 and on
21or before December 31, 2018, and (iii) 100% of the cost price
22thereafter. If, at any time, however, the tax under this Act on
23sales of gasohol, as defined in the Use Tax Act, is imposed at
24the rate of 1.25%, then the tax imposed by this Act applies to
25100% of the proceeds of sales of gasohol made during that time.
26    With respect to majority blended ethanol fuel, as defined

 

 

HB6146- 39 -LRB097 20947 HLH 68068 b

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

 

 

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1fiscal year, sales of service in which the aggregate annual
2cost price of tangible personal property transferred as an
3incident to the sales of service is less than 35%, or 75% in
4the case of servicemen transferring prescription drugs or
5servicemen engaged in graphic arts production, of the aggregate
6annual total gross receipts from all sales of service, the tax
7imposed by this Act shall be based on the serviceman's cost
8price of the tangible personal property transferred incident to
9the sale of those services.
10    The tax shall be imposed at the rate of 1% on food prepared
11for immediate consumption and transferred incident to a sale of
12service subject to this Act or the Service Occupation Tax Act
13by an entity licensed under the Hospital Licensing Act, the
14Nursing Home Care Act, the ID/DD Community Care Act, the
15Specialized Mental Health Rehabilitation Act, or the Child Care
16Act of 1969. The tax shall also be imposed at the rate of 1% on
17food for human consumption that is to be consumed off the
18premises where it is sold (other than alcoholic beverages, soft
19drinks, and food that has been prepared for immediate
20consumption and is not otherwise included in this paragraph)
21and prescription and nonprescription medicines, drugs, medical
22appliances, modifications to a motor vehicle for the purpose of
23rendering it usable by a disabled person, and insulin, urine
24testing materials, syringes, and needles used by diabetics, for
25human use. For the purposes of this Section, until September 1,
262009: the term "soft drinks" means any complete, finished,

 

 

HB6146- 41 -LRB097 20947 HLH 68068 b

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

 

 

HB6146- 42 -LRB097 20947 HLH 68068 b

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

 

 

HB6146- 43 -LRB097 20947 HLH 68068 b

1    list of those ingredients contained in the compound,
2    substance or preparation.
3(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
4eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38,
5eff. 6-28-11; 97-227, eff. 1-1-12; 97-636, eff. 6-1-12.)
 
6    Section 25. The Retailers' Occupation Tax Act is amended by
7changing Section 2-10 as follows:
 
8    (35 ILCS 120/2-10)
9    (Text of Section before amendment by P.A. 97-636)
10    Sec. 2-10. Rate of tax. Unless otherwise provided in this
11Section, the tax imposed by this Act is at the rate of 6.25% of
12gross receipts from sales of tangible personal property made in
13the course of business.
14    Beginning on July 1, 2000 and through December 31, 2000 and
15beginning again on July 1, 2012 and through December 31, 2012,
16with respect to motor fuel, as defined in Section 1.1 of the
17Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
18the Use Tax Act, the tax is imposed at the rate of 1.25%.
19    Beginning on August 6, 2010 through August 15, 2010, with
20respect to sales tax holiday items as defined in Section 2-8 of
21this Act, the tax is imposed at the rate of 1.25%.
22    Within 14 days after the effective date of this amendatory
23Act of the 91st General Assembly, each retailer of motor fuel
24and gasohol shall cause the following notice to be posted in a

 

 

HB6146- 44 -LRB097 20947 HLH 68068 b

1prominently visible place on each retail dispensing device that
2is used to dispense motor fuel or gasohol in the State of
3Illinois: "As of July 1, 2000, the State of Illinois has
4eliminated the State's share of sales tax on motor fuel and
5gasohol through December 31, 2000. The price on this pump
6should reflect the elimination of the tax." The notice shall be
7printed in bold print on a sign that is no smaller than 4
8inches by 8 inches. The sign shall be clearly visible to
9customers. Any retailer who fails to post or maintain a
10required sign through December 31, 2000 is guilty of a petty
11offense for which the fine shall be $500 per day per each
12retail premises where a violation occurs.
13    Within 14 days after the effective date of this amendatory
14Act of the 97th General Assembly, each retailer of motor fuel
15and gasohol shall cause the following notice to be posted in a
16prominently visible place on each retail dispensing device that
17is used to dispense motor fuel or gasohol in the State of
18Illinois: "As of July 1, 2012, the State of Illinois has
19eliminated the State's share of sales tax on motor fuel and
20gasohol through December 31, 2012. The price on this pump
21should reflect the elimination of the tax." The notice shall be
22printed in bold print on a sign that is no smaller than 4
23inches by 8 inches. The sign shall be clearly visible to
24customers. Any retailer who fails to post or maintain a
25required sign through December 31, 2012 is guilty of a petty
26offense for which the fine shall be $500 per day per each

 

 

HB6146- 45 -LRB097 20947 HLH 68068 b

1retail premises where a violation occurs.
2    With respect to gasohol, as defined in the Use Tax Act, the
3tax imposed by this Act applies to (i) 70% of the proceeds of
4sales made on or after January 1, 1990, and before July 1,
52003, (ii) 80% of the proceeds of sales made on or after July
61, 2003 and on or before December 31, 2013, and (iii) 100% of
7the proceeds of sales made thereafter. If, at any time,
8however, the tax under this Act on sales of gasohol, as defined
9in the Use Tax Act, is imposed at the rate of 1.25%, then the
10tax imposed by this Act applies to 100% of the proceeds of
11sales 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 proceeds of sales made on or after July 1, 2003 and on or
15before December 31, 2013 but applies to 100% of the proceeds of
16sales made thereafter.
17    With respect to biodiesel blends, as defined in the Use Tax
18Act, with no less than 1% and no more than 10% biodiesel, the
19tax imposed by this Act applies to (i) 80% of the proceeds of
20sales made on or after July 1, 2003 and on or before December
2131, 2013 and (ii) 100% of the proceeds of sales made
22thereafter. If, at any time, however, the tax under this Act on
23sales of biodiesel blends, as defined in the Use Tax Act, with
24no less than 1% and no more than 10% biodiesel is imposed at
25the rate of 1.25%, then the tax imposed by this Act applies to
26100% of the proceeds of sales of biodiesel blends with no less

 

 

HB6146- 46 -LRB097 20947 HLH 68068 b

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

 

 

HB6146- 47 -LRB097 20947 HLH 68068 b

1or drinks containing 50% or more natural fruit or vegetable
2juice.
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 August 1, 2009, and notwithstanding any other
10provisions of this Act, "food for human consumption that is to
11be consumed off the premises where it is sold" includes all
12food 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
15August 1, 2009, and notwithstanding any other provisions of
16this Act, "food for human consumption that is to be consumed
17off the premises where it is sold" includes all food sold
18through a vending machine, except soft drinks, candy, and food
19products that are dispensed hot from a vending machine,
20regardless 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

 

 

HB6146- 48 -LRB097 20947 HLH 68068 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; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10.)
 
23    (Text of Section after amendment by P.A. 97-636)
24    Sec. 2-10. Rate of tax. Unless otherwise provided in this
25Section, the tax imposed by this Act is at the rate of 6.25% of

 

 

HB6146- 49 -LRB097 20947 HLH 68068 b

1gross receipts from sales of tangible personal property made in
2the course of business.
3    Beginning on July 1, 2000 and through December 31, 2000 and
4beginning again on July 1, 2012 and through December 31, 2012,
5with respect to motor fuel, as defined in Section 1.1 of the
6Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
7the Use Tax Act, the tax is imposed at the rate of 1.25%.
8    Beginning on August 6, 2010 through August 15, 2010, with
9respect to sales tax holiday items as defined in Section 2-8 of
10this Act, the tax is imposed at the rate of 1.25%.
11    Within 14 days after the effective date of this amendatory
12Act of the 91st General Assembly, each retailer of motor fuel
13and gasohol shall cause the following notice to be posted in a
14prominently visible place on each retail dispensing device that
15is used to dispense motor fuel or gasohol in the State of
16Illinois: "As of July 1, 2000, the State of Illinois has
17eliminated the State's share of sales tax on motor fuel and
18gasohol through December 31, 2000. The price on this pump
19should reflect the elimination of the tax." The notice shall be
20printed in bold print on a sign that is no smaller than 4
21inches by 8 inches. The sign shall be clearly visible to
22customers. Any retailer who fails to post or maintain a
23required sign through December 31, 2000 is guilty of a petty
24offense for which the fine shall be $500 per day per each
25retail premises where a violation occurs.
26    Within 14 days after the effective date of this amendatory

 

 

HB6146- 50 -LRB097 20947 HLH 68068 b

1Act of the 97th General Assembly, each retailer of motor fuel
2and gasohol shall cause the following notice to be posted in a
3prominently visible place on each retail dispensing device that
4is used to dispense motor fuel or gasohol in the State of
5Illinois: "As of July 1, 2012, the State of Illinois has
6eliminated the State's share of sales tax on motor fuel and
7gasohol through December 31, 2012. The price on this pump
8should reflect the elimination of the tax." The notice shall be
9printed in bold print on a sign that is no smaller than 4
10inches by 8 inches. The sign shall be clearly visible to
11customers. Any retailer who fails to post or maintain a
12required sign through December 31, 2012 is guilty of a petty
13offense for which the fine shall be $500 per day per each
14retail premises where a violation occurs.
15    With respect to gasohol, as defined in the Use Tax Act, the
16tax imposed by this Act applies to (i) 70% of the proceeds of
17sales made on or after January 1, 1990, and before July 1,
182003, (ii) 80% of the proceeds of sales made on or after July
191, 2003 and on or before December 31, 2018, and (iii) 100% of
20the proceeds of sales made thereafter. If, at any time,
21however, the tax under this Act on sales of gasohol, as defined
22in the Use Tax Act, is imposed at the rate of 1.25%, then the
23tax imposed by this Act applies to 100% of the proceeds of
24sales of gasohol made during that time.
25    With respect to majority blended ethanol fuel, as defined
26in the Use Tax Act, the tax imposed by this Act does not apply

 

 

HB6146- 51 -LRB097 20947 HLH 68068 b

1to the proceeds of sales made on or after July 1, 2003 and on or
2before December 31, 2018 but applies to 100% of the proceeds of
3sales made thereafter.
4    With respect to biodiesel blends, as defined in the Use Tax
5Act, with no less than 1% and no more than 10% biodiesel, the
6tax imposed by this Act applies to (i) 80% of the proceeds of
7sales made on or after July 1, 2003 and on or before December
831, 2018 and (ii) 100% of the proceeds of sales made
9thereafter. If, at any time, however, the tax under this Act on
10sales of biodiesel blends, as defined in the Use Tax Act, with
11no less than 1% and no more than 10% biodiesel is imposed at
12the rate of 1.25%, then the tax imposed by this Act applies to
13100% of the proceeds of sales of biodiesel blends with no less
14than 1% and no more than 10% biodiesel made during that time.
15    With respect to 100% biodiesel, as defined in the Use Tax
16Act, and biodiesel blends, as defined in the Use Tax Act, with
17more than 10% but no more than 99% biodiesel, the tax imposed
18by this Act does not apply to the proceeds of sales made on or
19after July 1, 2003 and on or before December 31, 2018 but
20applies to 100% of the proceeds of sales made thereafter.
21    With respect to food for human consumption that is to be
22consumed off the premises where it is sold (other than
23alcoholic beverages, soft drinks, and food that has been
24prepared for immediate consumption) and prescription and
25nonprescription medicines, drugs, medical appliances,
26modifications to a motor vehicle for the purpose of rendering

 

 

HB6146- 52 -LRB097 20947 HLH 68068 b

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

 

 

HB6146- 53 -LRB097 20947 HLH 68068 b

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

 

 

HB6146- 54 -LRB097 20947 HLH 68068 b

1use that contains a label that identifies the product as a drug
2as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
3label includes:
4        (A) A "Drug Facts" panel; or
5        (B) A statement of the "active ingredient(s)" with a
6    list of those ingredients contained in the compound,
7    substance or preparation.
8(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
9eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10;
1097-636, eff. 6-1-12.)
 
11    Section 95. No acceleration or delay. Where this Act makes
12changes in a statute that is represented in this Act by text
13that is not yet or no longer in effect (for example, a Section
14represented by multiple versions), the use of that text does
15not accelerate or delay the taking effect of (i) the changes
16made by this Act or (ii) provisions derived from any other
17Public Act.
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.