98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB0391

 

Introduced 1/23/2013, by Sen. John J. Cullerton

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 120/2-10

    Amends the Retailers' Occupation Tax Act. Makes a technical change in a Section concerning the rate of tax.


LRB098 04627 HLH 34655 b

 

 

A BILL FOR

 

SB0391LRB098 04627 HLH 34655 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 Retailers' Occupation Tax Act is amended by
5changing Section 2-10 as follows:
 
6    (35 ILCS 120/2-10)
7    Sec. 2-10. Rate of tax. Unless otherwise provided in this
8Section, the the tax imposed by this Act is at the rate of
96.25% of gross receipts from sales of tangible personal
10property made in the course of business.
11    Beginning on July 1, 2000 and through December 31, 2000,
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    Beginning on August 6, 2010 through August 15, 2010, with
16respect to sales tax holiday items as defined in Section 2-8 of
17this Act, the tax is imposed at the rate of 1.25%.
18    Within 14 days after the effective date of this amendatory
19Act of the 91st General Assembly, each retailer of motor fuel
20and gasohol shall cause the following notice to be posted in a
21prominently visible place on each retail dispensing device that
22is used to dispense motor fuel or gasohol in the State of
23Illinois: "As of July 1, 2000, the State of Illinois has

 

 

SB0391- 2 -LRB098 04627 HLH 34655 b

1eliminated the State's share of sales tax on motor fuel and
2gasohol through December 31, 2000. The price on this pump
3should reflect the elimination of the tax." The notice shall be
4printed in bold print on a sign that is no smaller than 4
5inches by 8 inches. The sign shall be clearly visible to
6customers. Any retailer who fails to post or maintain a
7required sign through December 31, 2000 is guilty of a petty
8offense for which the fine shall be $500 per day per each
9retail premises where a violation occurs.
10    With respect to gasohol, as defined in the Use Tax Act, the
11tax imposed by this Act applies to (i) 70% of the proceeds of
12sales made on or after January 1, 1990, and before July 1,
132003, (ii) 80% of the proceeds of sales made on or after July
141, 2003 and on or before December 31, 2018, and (iii) 100% of
15the proceeds of sales made thereafter. If, at any time,
16however, the tax under this Act on sales of gasohol, as defined
17in the Use Tax Act, is imposed at the rate of 1.25%, then the
18tax imposed by this Act applies to 100% of the proceeds of
19sales of gasohol made during that time.
20    With respect to majority blended ethanol fuel, as defined
21in the Use Tax Act, the tax imposed by this Act does not apply
22to the proceeds of sales made on or after July 1, 2003 and on or
23before December 31, 2018 but applies to 100% of the proceeds of
24sales made thereafter.
25    With respect to biodiesel blends, as defined in the Use Tax
26Act, with no less than 1% and no more than 10% biodiesel, the

 

 

SB0391- 3 -LRB098 04627 HLH 34655 b

1tax imposed by this Act applies to (i) 80% of the proceeds of
2sales made on or after July 1, 2003 and on or before December
331, 2018 and (ii) 100% of the proceeds of sales made
4thereafter. If, at any time, however, the tax under this Act on
5sales of biodiesel blends, as defined in the Use Tax Act, with
6no less than 1% and no more than 10% biodiesel is imposed at
7the rate of 1.25%, then the tax imposed by this Act applies to
8100% of the proceeds of sales of biodiesel blends with no less
9than 1% and no more than 10% biodiesel made during that time.
10    With respect to 100% biodiesel, as defined in the Use Tax
11Act, and biodiesel blends, as defined in the Use Tax Act, with
12more than 10% but no more than 99% biodiesel, the tax imposed
13by this Act does not apply to the proceeds of sales made on or
14after July 1, 2003 and on or before December 31, 2018 but
15applies to 100% of the proceeds of sales made thereafter.
16    With respect to food for human consumption that is to be
17consumed off the premises where it is sold (other than
18alcoholic beverages, soft drinks, and food that has been
19prepared for immediate consumption) and prescription and
20nonprescription medicines, drugs, medical appliances,
21modifications to a motor vehicle for the purpose of rendering
22it usable by a disabled person, and insulin, urine testing
23materials, syringes, and needles used by diabetics, for human
24use, the tax is imposed at the rate of 1%. For the purposes of
25this Section, until September 1, 2009: the term "soft drinks"
26means any complete, finished, ready-to-use, non-alcoholic

 

 

SB0391- 4 -LRB098 04627 HLH 34655 b

1drink, whether carbonated or not, including but not limited to
2soda water, cola, fruit juice, vegetable juice, carbonated
3water, and all other preparations commonly known as soft drinks
4of whatever kind or description that are contained in any
5closed or sealed bottle, can, carton, or container, regardless
6of size; but "soft drinks" does not include coffee, tea,
7non-carbonated water, infant formula, milk or milk products as
8defined in the Grade A Pasteurized Milk and Milk Products Act,
9or drinks containing 50% or more natural fruit or vegetable
10juice.
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

 

 

SB0391- 5 -LRB098 04627 HLH 34655 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

 

 

SB0391- 6 -LRB098 04627 HLH 34655 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; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10;
597-636, eff. 6-1-12.)