Sen. William E. Brady

Filed: 3/15/2013

 

 


 

 


 
09800SB0052sam003LRB098 05107 HLH 43109 a

1
AMENDMENT TO SENATE BILL 52

2    AMENDMENT NO. ______. Amend Senate Bill 52 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Renewable Fuels Development
5Program Act is amended by changing Sections 15 and 20 as
6follows:
 
7    (20 ILCS 689/15)
8    Sec. 15. Illinois Renewable Fuels Development Program.
9    (a) The Department must develop and administer the Illinois
10Renewable Fuels Development Program to assist in the
11construction, modification, alteration, or retrofitting of
12renewable fuel plants in Illinois. The recipient of a grant
13under this Section must:
14        (1) be constructing, modifying, altering, or
15    retrofitting a plant in the State of Illinois;
16        (2) be constructing, modifying, altering, or

 

 

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1    retrofitting a plant that has annual production capacity of
2    no less than 5,000,000 gallons of renewable fuel per year;
3    and
4        (3) enter into a project labor agreement, whenever
5    practicable, as prescribed by Section 25 of this Act.
6    (b) Grant applications must be made on forms provided by
7and in accordance with procedures established by the
8Department.
9    (c) The Department must give preference to applicants that
10use Illinois agricultural products in the production of
11renewable fuel at the plant for which the grant is being
12requested.
13(Source: P.A. 96-140, eff. 1-1-10.)
 
14    (20 ILCS 689/20)
15    Sec. 20. Grants. Subject to appropriation, the Director is
16authorized to award grants to eligible applicants for the
17following programs.
18        (1) Next generation ethanol/renewable fuels. Eligible
19    next generation ethanol/renewable fuel projects include
20    those renewable fuel facilities installing new
21    technologies to reduce water and energy usage as well as
22    technologies to reduce greenhouse gas emissions. Projects
23    that will result in more efficient processes, new
24    co-products, fuels and chemicals are also eligible for
25    funding. The annual aggregate amount of grants awarded

 

 

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1    under this item (1) for next generation ethanol/renewable
2    fuel projects shall not exceed $15,000,000.
3        (2) Majority blended ethanol and blender pump
4    infrastructure program. The Department shall establish a
5    grant program to provide funds for the installation of
6    majority blended ethanol and blender pump fueling
7    facilities. The annual aggregate amount of grants awarded
8    under this item (2) shall not exceed $5,000,000.
9        (3) Research and development program for sustainable
10    corn production and corn-based renewable fuel production.
11    The Department shall establish a grant program to provide
12    funds for research and development projects to reduce the
13    carbon footprint of corn based renewable fuels through new
14    co-products, new process technologies, and new fuels. The
15    Department shall also establish a grant program to fund
16    research on increasing the sustainability of corn
17    production through better nitrogen utilization, new best
18    management practices for improved soil health, water
19    conservation, and reduced environmental concerns. Eligible
20    projects include those that will increase corn
21    productivity with lower inputs and less risk. The annual
22    aggregate amount of grants awarded under this item (3)
23    shall not exceed $5,000,000.
24The annual aggregate amount of grants awarded shall not exceed
25$20,000,000, except that this amount does not include amounts,
26up to $4,000,000 per grant, that may be awarded to each

 

 

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1eligible applicant who installs advanced technologies for
2water usage, carbon footprint reduction, and other blending
3improvements designed to optimize processes at the applicant's
4renewable fuels facility.
5(Source: P.A. 96-173, eff. 8-10-09.)
 
6    Section 10. The Use Tax Act is amended by changing Sections
73-10 and 3-44 and by adding Sections 3-44.6, 3-44.7, and 3-44.8
8as follows:
 
9    (35 ILCS 105/3-10)
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
12either the selling price or the fair market value, if any, of
13the tangible personal property. In all cases where property
14functionally used or consumed is the same as the property that
15was purchased at retail, then the tax is imposed on the selling
16price of the property. In all cases where property functionally
17used or consumed is a by-product or waste product that has been
18refined, manufactured, or produced from property purchased at
19retail, then the tax is imposed on the lower of the fair market
20value, if any, of the specific property so used in this State
21or on the selling price of the property purchased at retail.
22For purposes of this Section "fair market value" means the
23price at which property would change hands between a willing
24buyer and a willing seller, neither being under any compulsion

 

 

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1to buy or sell and both having reasonable knowledge of the
2relevant facts. The fair market value shall be established by
3Illinois sales by the taxpayer of the same property as that
4functionally used or consumed, or if there are no such sales by
5the taxpayer, then comparable sales or purchases of property of
6like kind and character in Illinois.
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 3-6 of
13this Act, the tax is imposed at the rate of 1.25%.
14    With respect to gasohol, the tax imposed by this Act
15applies to (i) 70% of the proceeds of sales made on or after
16January 1, 1990, and before July 1, 2003, (ii) 80% of the
17proceeds of sales made on or after July 1, 2003 and on or
18before December 31, 2018, and (iii) 100% of the proceeds of
19sales made thereafter. If, at any time, however, the tax under
20this Act on sales of gasohol is imposed at the rate of 1.25%,
21then the tax imposed by this Act applies to 100% of the
22proceeds of sales of gasohol made during that time.
23    With respect to E15 and E20 blended ethanol fuel, the tax
24imposed by this Act applies to (i) 80% of the proceeds of sales
25made on or after July 1, 2013 and on or before December 31,
262020 and (ii) 100% of the proceeds of sales made thereafter.

 

 

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1    With respect to E30 blended ethanol fuel, the tax imposed
2by this Act applies to (i) 60% of the proceeds of sales made on
3or after July 1, 2013 and on or before December 31, 2020 and
4(ii) 100% of the proceeds of sales made thereafter.
5    With respect to majority blended ethanol fuel, the tax
6imposed by this Act does not apply to the proceeds of sales
7made on or after July 1, 2003 and on or before December 31,
82018 but applies to 100% of the proceeds of sales made
9thereafter.
10    With respect to biodiesel blends with no less than 1% and
11no more than 10% biodiesel, the tax imposed by this Act applies
12to (i) 80% of the proceeds of sales made on or after July 1,
132003 and on or before December 31, 2018 and (ii) 100% of the
14proceeds of sales made thereafter. If, at any time, however,
15the tax under this Act on sales of biodiesel blends with no
16less than 1% and no more than 10% biodiesel is imposed at the
17rate of 1.25%, then the tax imposed by this Act applies to 100%
18of the proceeds of sales of biodiesel blends with no less than
191% and no more than 10% biodiesel made during that time.
20    With respect to 100% biodiesel and biodiesel blends with
21more than 10% but no more than 99% biodiesel, the tax imposed
22by this Act does not apply to the proceeds of sales made on or
23after July 1, 2003 and on or before December 31, 2018 but
24applies to 100% of the proceeds of sales made thereafter.
25    With respect to food for human consumption that is to be
26consumed off the premises where it is sold (other than

 

 

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

 

 

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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

 

 

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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 purchased at retail from a retailer
13is acquired 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; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10;
2197-636, eff. 6-1-12.)
 
22    (35 ILCS 105/3-44)
23    Sec. 3-44. Majority blended ethanol fuel. "Majority
24blended ethanol fuel" means motor fuel that (i) contains not
25less than 51% and no more than 83% by volume ethanol, as

 

 

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1specified in ASTM Standard DS798-11 and (ii) is capable of
2being used in the operation of flexible fuel vehicles. 70% and
3no more than 90% denatured ethanol and no less than 10% and no
4more than 30% gasoline.
5(Source: P.A. 93-17, eff. 6-11-03.)
 
6    (35 ILCS 105/3-44.6 new)
7    Sec. 3-44.6. E15 blended ethanol fuel. "E15 blended ethanol
8fuel" means a blend of 15% denatured ethanol, ASTM Standard D
94806, and 85% gasoline for use in flexible fuel vehicles.
 
10    (35 ILCS 105/3-44.7 new)
11    Sec. 3-44.7. E20 blended ethanol fuel. "E20 blended ethanol
12fuel" means a blend of 20% denatured ethanol, ASTM Standard D
134806, and 80% gasoline for use in flexible fuel vehicles.
 
14    (35 ILCS 105/3-44.8 new)
15    Sec. 3-44.8. E30 blended ethanol fuel. "E30 blended ethanol
16fuel" means a blend of 30% denatured ethanol, ASTM Standard D
174806, and 70% gasoline for use in flexible fuel vehicles.
 
18    Section 15. The Service Use Tax Act is amended by changing
19Section 3-10 as follows:
 
20    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
21    Sec. 3-10. Rate of tax. Unless otherwise provided in this

 

 

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1Section, the tax imposed by this Act is at the rate of 6.25% of
2the selling price of tangible personal property transferred as
3an incident to the sale of service, but, for the purpose of
4computing this tax, in no event shall the selling price be less
5than the cost price of the property to the serviceman.
6    Beginning on July 1, 2000 and through December 31, 2000,
7with respect to motor fuel, as defined in Section 1.1 of the
8Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
9the Use Tax Act, the tax is imposed at the rate of 1.25%.
10    With respect to gasohol, as defined in the Use Tax Act, the
11tax imposed by this Act applies to (i) 70% of the selling price
12of property transferred as an incident to the sale of service
13on or after January 1, 1990, and before July 1, 2003, (ii) 80%
14of 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, and (iii) 100% of the selling price
17thereafter. If, at any time, however, the tax under this Act on
18sales of gasohol, as defined in the Use Tax Act, is imposed at
19the rate of 1.25%, then the tax imposed by this Act applies to
20100% of the proceeds of sales of gasohol made during that time.
21    With respect to E15 and E20 blended ethanol fuel, as
22defined in the Use Tax Act, the tax imposed by this Act applies
23to (i) 80% of the selling price of property transferred as an
24incident to the sale of service on or after July 1, 2013 and on
25or before December 31, 2020 and (ii) 100% of the selling price
26thereafter.

 

 

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1    With respect to E30 blended ethanol fuel, as defined in the
2Use Tax Act, the tax imposed by this Act applies to (i) 60% of
3the selling price of property transferred as an incident to the
4sale of service on or after July 1, 2013 and on or before
5December 31, 2020 and (ii) 100% of the selling price
6thereafter.
7    With respect to majority blended ethanol fuel, as defined
8in the Use Tax Act, the tax imposed by this Act does not apply
9to the selling price of property transferred as an incident to
10the sale of service on or after July 1, 2003 and on or before
11December 31, 2018 but applies to 100% of the selling price
12thereafter.
13    With respect to biodiesel blends, as defined in the Use Tax
14Act, with no less than 1% and no more than 10% biodiesel, the
15tax imposed by this Act applies to (i) 80% of the selling price
16of property transferred as an incident to the sale of service
17on or after July 1, 2003 and on or before December 31, 2018 and
18(ii) 100% of the proceeds of the selling price thereafter. If,
19at any time, however, the tax under this Act on sales of
20biodiesel blends, as defined in the Use Tax Act, with no less
21than 1% and no more than 10% biodiesel is imposed at the rate
22of 1.25%, then the tax imposed by this Act applies to 100% of
23the proceeds of sales of biodiesel blends with no less than 1%
24and no more than 10% biodiesel made during that time.
25    With respect to 100% biodiesel, as defined in the Use Tax
26Act, and biodiesel blends, as defined in the Use Tax Act, with

 

 

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

 

 

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1and prescription and nonprescription medicines, drugs, medical
2appliances, modifications to a motor vehicle for the purpose of
3rendering it usable by a disabled person, and insulin, urine
4testing materials, syringes, and needles used by diabetics, for
5human use. For the purposes of this Section, until September 1,
62009: the term "soft drinks" means any complete, finished,
7ready-to-use, non-alcoholic drink, whether carbonated or not,
8including but not limited to soda water, cola, fruit juice,
9vegetable juice, carbonated water, and all other preparations
10commonly known as soft drinks of whatever kind or description
11that are contained in any closed or sealed bottle, can, carton,
12or container, regardless of size; but "soft drinks" does not
13include coffee, tea, non-carbonated water, infant formula,
14milk or milk products as defined in the Grade A Pasteurized
15Milk and Milk Products Act, or drinks containing 50% or more
16natural fruit or vegetable juice.
17    Notwithstanding any other provisions of this Act,
18beginning September 1, 2009, "soft drinks" means non-alcoholic
19beverages that contain natural or artificial sweeteners. "Soft
20drinks" do not include beverages that contain milk or milk
21products, soy, rice or similar milk substitutes, or greater
22than 50% of vegetable or fruit juice by volume.
23    Until August 1, 2009, and notwithstanding any other
24provisions of this Act, "food for human consumption that is to
25be consumed off the premises where it is sold" includes all
26food sold through a vending machine, except soft drinks and

 

 

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

 

 

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1this paragraph, "over-the-counter-drug" means a drug for human
2use that contains a label that identifies the product as a drug
3as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
4label includes:
5        (A) A "Drug Facts" panel; or
6        (B) A statement of the "active ingredient(s)" with a
7    list of those ingredients contained in the compound,
8    substance or preparation.
9    If the property that is acquired from a serviceman is
10acquired outside Illinois and used outside Illinois before
11being brought to Illinois for use here and is taxable under
12this Act, the "selling price" on which the tax is computed
13shall be reduced by an amount that represents a reasonable
14allowance for depreciation for the period of prior out-of-state
15use.
16(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
17eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38,
18eff. 6-28-11; 97-227, eff. 1-1-12; 97-636, eff. 6-1-12.)
 
19    Section 20. The Service Occupation Tax Act is amended by
20changing Section 3-10 as follows:
 
21    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
22    Sec. 3-10. Rate of tax. Unless otherwise provided in this
23Section, the tax imposed by this Act is at the rate of 6.25% of
24the "selling price", as defined in Section 2 of the Service Use

 

 

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1Tax Act, of the tangible personal property. For the purpose of
2computing this tax, in no event shall the "selling price" be
3less than the cost price to the serviceman of the tangible
4personal property transferred. The selling price of each item
5of tangible personal property transferred as an incident of a
6sale of service may be shown as a distinct and separate item on
7the serviceman's billing to the service customer. If the
8selling price is not so shown, the selling price of the
9tangible personal property is deemed to be 50% of the
10serviceman's entire billing to the service customer. When,
11however, a serviceman contracts to design, develop, and produce
12special order machinery or equipment, the tax imposed by this
13Act shall be based on the serviceman's cost price of the
14tangible personal property transferred incident to the
15completion of the contract.
16    Beginning on July 1, 2000 and through December 31, 2000,
17with respect to motor fuel, as defined in Section 1.1 of the
18Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
19the Use Tax Act, the tax is imposed at the rate of 1.25%.
20    With respect to gasohol, as defined in the Use Tax Act, the
21tax imposed by this Act shall apply to (i) 70% of the cost
22price of property transferred as an incident to the sale of
23service on or after January 1, 1990, and before July 1, 2003,
24(ii) 80% of the selling price of property transferred as an
25incident to the sale of service on or after July 1, 2003 and on
26or before December 31, 2018, and (iii) 100% of the cost price

 

 

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1thereafter. If, at any time, however, the tax under this Act on
2sales of gasohol, as defined in the Use Tax Act, is imposed at
3the rate of 1.25%, then the tax imposed by this Act applies to
4100% of the proceeds of sales of gasohol made during that time.
5    With respect to E15 and E20 blended ethanol fuel, as
6defined in the Use Tax Act, the tax imposed by this Act applies
7to (i) 80% of the selling price of property transferred as an
8incident to the sale of service on or after July 1, 2013 and on
9or before December 31, 2020 and (ii) 100% of the selling price
10thereafter.
11    With respect to E30 blended ethanol fuel, as defined in the
12Use Tax Act, the tax imposed by this Act applies to (i) 60% of
13the selling price of property transferred as an incident to the
14sale of service on or after July 1, 2013 and on or before
15December 31, 2020 and (ii) 100% of the selling price
16thereafter.
17    With respect to majority blended ethanol fuel, as defined
18in the Use Tax Act, the tax imposed by this Act does not apply
19to the selling price of property transferred as an incident to
20the sale of service on or after July 1, 2003 and on or before
21December 31, 2018 but applies to 100% of the selling price
22thereafter.
23    With respect to biodiesel blends, as defined in the Use Tax
24Act, with no less than 1% and no more than 10% biodiesel, the
25tax imposed by this Act applies to (i) 80% of the selling price
26of property transferred as an incident to the sale of service

 

 

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

 

 

09800SB0052sam003- 20 -LRB098 05107 HLH 43109 a

1    The tax shall be imposed at the rate of 1% on food prepared
2for immediate consumption and transferred incident to a sale of
3service subject to this Act or the Service Occupation Tax Act
4by an entity licensed under the Hospital Licensing Act, the
5Nursing Home Care Act, the ID/DD Community Care Act, the
6Specialized Mental Health Rehabilitation Act, or the Child Care
7Act of 1969. The tax shall also be imposed at the rate of 1% on
8food for human consumption that is to be consumed off the
9premises where it is sold (other than alcoholic beverages, soft
10drinks, and food that has been prepared for immediate
11consumption and is not otherwise included in this paragraph)
12and prescription and nonprescription medicines, drugs, medical
13appliances, modifications to a motor vehicle for the purpose of
14rendering it usable by a disabled person, and insulin, urine
15testing materials, syringes, and needles used by diabetics, for
16human use. For the purposes of this Section, until September 1,
172009: the term "soft drinks" means any complete, finished,
18ready-to-use, non-alcoholic drink, whether carbonated or not,
19including but not limited to soda water, cola, fruit juice,
20vegetable juice, carbonated water, and all other preparations
21commonly known as soft drinks of whatever kind or description
22that are contained in any closed or sealed can, carton, or
23container, regardless of size; but "soft drinks" does not
24include coffee, tea, non-carbonated water, infant formula,
25milk or milk products as defined in the Grade A Pasteurized
26Milk and Milk Products Act, or drinks containing 50% or more

 

 

09800SB0052sam003- 21 -LRB098 05107 HLH 43109 a

1natural fruit or vegetable juice.
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 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 and
12food products that are dispensed hot from a vending machine,
13regardless of the location of the vending machine. Beginning
14August 1, 2009, and notwithstanding any other provisions of
15this Act, "food for human consumption that is to be consumed
16off the premises where it is sold" includes all food sold
17through a vending machine, except soft drinks, candy, and food
18products that are dispensed hot from a vending machine,
19regardless 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

 

 

09800SB0052sam003- 22 -LRB098 05107 HLH 43109 a

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; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38,
22eff. 6-28-11; 97-227, eff. 1-1-12; 97-636, eff. 6-1-12.)
 
23    Section 25. The Retailers' Occupation Tax Act is amended by
24changing Section 2-10 as follows:
 

 

 

09800SB0052sam003- 23 -LRB098 05107 HLH 43109 a

1    (35 ILCS 120/2-10)
2    Sec. 2-10. Rate of tax. Unless otherwise provided in this
3Section, the tax imposed by this Act is at the rate of 6.25% of
4gross receipts from sales of tangible personal property made in
5the course of business.
6    Beginning on July 1, 2000 and through December 31, 2000,
7with respect to motor fuel, as defined in Section 1.1 of the
8Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
9the Use Tax Act, the tax is imposed at the rate of 1.25%.
10    Beginning on August 6, 2010 through August 15, 2010, with
11respect to sales tax holiday items as defined in Section 2-8 of
12this Act, the tax is imposed at the rate of 1.25%.
13    Within 14 days after the effective date of this amendatory
14Act of the 91st 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, 2000, the State of Illinois has
19eliminated the State's share of sales tax on motor fuel and
20gasohol through December 31, 2000. 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, 2000 is guilty of a petty
26offense for which the fine shall be $500 per day per each

 

 

09800SB0052sam003- 24 -LRB098 05107 HLH 43109 a

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, 2018, 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 E15 and E20 blended ethanol fuel, as
13defined in the Use Tax Act, the tax imposed by this Act applies
14to (i) 80% of the proceeds of sales made on or after July 1,
152013 and on or before December 31, 2020 and (ii) 100% of the
16proceeds of sales made thereafter.
17    With respect to E30 blended ethanol fuel, as defined in the
18Use Tax Act, the tax imposed by this Act applies to (i) 60% of
19the proceeds of sales made on or after July 1, 2013 and on or
20before December 31, 2020 and (ii) 100% of the proceeds of sales
21made thereafter.
22    With respect to majority blended ethanol fuel, as defined
23in the Use Tax Act, the tax imposed by this Act does not apply
24to the proceeds of sales made on or after July 1, 2003 and on or
25before December 31, 2018 but applies to 100% of the proceeds of
26sales made thereafter.

 

 

09800SB0052sam003- 25 -LRB098 05107 HLH 43109 a

1    With respect to biodiesel blends, as defined in the Use Tax
2Act, with no less than 1% and no more than 10% biodiesel, the
3tax imposed by this Act applies to (i) 80% of the proceeds of
4sales made on or after July 1, 2003 and on or before December
531, 2018 and (ii) 100% of the proceeds of sales made
6thereafter. If, at any time, however, the tax under this Act on
7sales of biodiesel blends, as defined in the Use Tax Act, with
8no less than 1% and no more than 10% biodiesel is imposed at
9the rate of 1.25%, then the tax imposed by this Act applies to
10100% of the proceeds of sales of biodiesel blends with no less
11than 1% and no more than 10% biodiesel made during that time.
12    With respect to 100% biodiesel, as defined in the Use Tax
13Act, and biodiesel blends, as defined in the Use Tax Act, with
14more than 10% but no more than 99% biodiesel, the tax imposed
15by this Act does not apply to the proceeds of sales made on or
16after July 1, 2003 and on or before December 31, 2018 but
17applies to 100% of the proceeds of sales made thereafter.
18    With respect to food for human consumption that is to be
19consumed off the premises where it is sold (other than
20alcoholic beverages, soft drinks, and food that has been
21prepared for immediate consumption) and prescription and
22nonprescription medicines, drugs, medical appliances,
23modifications to a motor vehicle for the purpose of rendering
24it usable by a disabled person, and insulin, urine testing
25materials, syringes, and needles used by diabetics, for human
26use, the tax is imposed at the rate of 1%. For the purposes of

 

 

09800SB0052sam003- 26 -LRB098 05107 HLH 43109 a

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

 

 

09800SB0052sam003- 27 -LRB098 05107 HLH 43109 a

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

 

 

09800SB0052sam003- 28 -LRB098 05107 HLH 43109 a

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(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
6eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10;
797-636, eff. 6-1-12.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.".