99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3140

 

Introduced , by Rep. David Harris

 

SYNOPSIS AS INTRODUCED:
 
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 the tax on gasohol applies to 100% of the proceeds of sales made on or after the effective date (currently, the tax applies to 80% of the proceeds of sales made before December 31, 2018 and 100% of the proceeds of sales made thereafter).


LRB099 10111 HLH 30334 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3140LRB099 10111 HLH 30334 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 Use Tax Act is amended by changing Section
53-10 as follows:
 
6    (35 ILCS 105/3-10)
7    Sec. 3-10. Rate of tax. Unless otherwise provided in this
8Section, the tax imposed by this Act is at the rate of 6.25% of
9either the selling price or the fair market value, if any, of
10the tangible personal property. In all cases where property
11functionally used or consumed is the same as the property that
12was purchased at retail, then the tax is imposed on the selling
13price of the property. In all cases where property functionally
14used or consumed is a by-product or waste product that has been
15refined, manufactured, or produced from property purchased at
16retail, then the tax is imposed on the lower of the fair market
17value, if any, of the specific property so used in this State
18or on the selling price of the property purchased at retail.
19For purposes of this Section "fair market value" means the
20price at which property would change hands between a willing
21buyer and a willing seller, neither being under any compulsion
22to buy or sell and both having reasonable knowledge of the
23relevant facts. The fair market value shall be established by

 

 

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1Illinois sales by the taxpayer of the same property as that
2functionally used or consumed, or if there are no such sales by
3the taxpayer, then comparable sales or purchases of property of
4like kind and character in Illinois.
5    Beginning on July 1, 2000 and through December 31, 2000,
6with respect to motor fuel, as defined in Section 1.1 of the
7Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
8the Use Tax Act, the tax is imposed at the rate of 1.25%.
9    Beginning on August 6, 2010 through August 15, 2010, with
10respect to sales tax holiday items as defined in Section 3-6 of
11this Act, the tax is imposed at the rate of 1.25%.
12    With respect to gasohol, the tax imposed by this Act
13applies to (i) 70% of the proceeds of sales made on or after
14January 1, 1990, and before July 1, 2003, (ii) 80% of the
15proceeds of sales made on or after July 1, 2003 and on or
16before December 31, 2018, and (iii) 100% of the proceeds of
17sales made thereafter. If, at any time, however, the tax under
18this Act on sales of gasohol is imposed at the rate of 1.25%,
19then the tax imposed by this Act applies to 100% of the
20proceeds of sales of gasohol made during that time.
21    With respect to majority blended ethanol fuel, the tax
22imposed by this Act does not apply to the proceeds of sales
23made on or after July 1, 2003 and on or before December 31,
242018 but applies to 100% of the proceeds of sales made
25thereafter.
26    With respect to biodiesel blends with no less than 1% and

 

 

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1no more than 10% biodiesel, the tax imposed by this Act applies
2to (i) 80% of the proceeds of sales made on or after July 1,
32003 and on or before December 31, 2018 and (ii) 100% of the
4proceeds of sales made thereafter. If, at any time, however,
5the tax under this Act on sales of biodiesel blends with no
6less than 1% and no more than 10% biodiesel is imposed at the
7rate of 1.25%, then the tax imposed by this Act applies to 100%
8of the proceeds of sales of biodiesel blends with no less than
91% and no more than 10% biodiesel made during that time.
10    With respect to 100% biodiesel and biodiesel blends with
11more than 10% but no more than 99% biodiesel, the tax imposed
12by this Act does not apply to the proceeds of sales made on or
13after July 1, 2003 and on or before December 31, 2018 but
14applies to 100% of the proceeds of sales made thereafter.
15    With respect to food for human consumption that is to be
16consumed off the premises where it is sold (other than
17alcoholic beverages, soft drinks, and food that has been
18prepared for immediate consumption) and prescription and
19nonprescription medicines, drugs, medical appliances,
20modifications to a motor vehicle for the purpose of rendering
21it usable by a disabled person, and insulin, urine testing
22materials, syringes, and needles used by diabetics, for human
23use, the tax is imposed at the rate of 1%. For the purposes of
24this Section, until September 1, 2009: the term "soft drinks"
25means any complete, finished, ready-to-use, non-alcoholic
26drink, whether carbonated or not, including but not limited to

 

 

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

 

 

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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,

 

 

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1    substance or preparation.
2    Beginning on the effective date of this amendatory Act of
3the 98th General Assembly, "prescription and nonprescription
4medicines and drugs" includes medical cannabis purchased from a
5registered dispensing organization under the Compassionate Use
6of Medical Cannabis Pilot Program Act.
7    If the property that is purchased at retail from a retailer
8is acquired outside Illinois and used outside Illinois before
9being brought to Illinois for use here and is taxable under
10this Act, the "selling price" on which the tax is computed
11shall be reduced by an amount that represents a reasonable
12allowance for depreciation for the period of prior out-of-state
13use.
14(Source: P.A. 97-636, eff. 6-1-12; 98-122, eff. 1-1-14.)
 
15    Section 10. The Service Use Tax Act is amended by changing
16Section 3-10 as follows:
 
17    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
18    Sec. 3-10. Rate of tax. Unless otherwise provided in this
19Section, the tax imposed by this Act is at the rate of 6.25% of
20the selling price of tangible personal property transferred as
21an incident to the sale of service, but, for the purpose of
22computing this tax, in no event shall the selling price be less
23than the cost price of the property to the serviceman.
24    Beginning on July 1, 2000 and through December 31, 2000,

 

 

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1with respect to motor fuel, as defined in Section 1.1 of the
2Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
3the Use Tax Act, the tax is imposed at the rate of 1.25%.
4    With respect to gasohol, as defined in the Use Tax Act, the
5tax imposed by this Act applies to (i) 70% of the selling price
6of property transferred as an incident to the sale of service
7on or after January 1, 1990, and before July 1, 2003, (ii) 80%
8of the selling price of property transferred as an incident to
9the sale of service on or after July 1, 2003 and on or before
10December 31, 2018, and (iii) 100% of the selling price
11thereafter. If, at any time, however, the tax under this Act on
12sales of gasohol, as defined in the Use Tax Act, is imposed at
13the rate of 1.25%, then the tax imposed by this Act applies to
14100% of the proceeds of sales of gasohol made during that time.
15    With respect to majority blended ethanol fuel, as defined
16in the Use Tax Act, the tax imposed by this Act does not apply
17to the selling price of property transferred as an incident to
18the sale of service on or after July 1, 2003 and on or before
19December 31, 2018 but applies to 100% of the selling price
20thereafter.
21    With respect to biodiesel blends, as defined in the Use Tax
22Act, with no less than 1% and no more than 10% biodiesel, the
23tax imposed by this Act applies to (i) 80% of the selling price
24of property transferred as an incident to the sale of service
25on or after July 1, 2003 and on or before December 31, 2018 and
26(ii) 100% of the proceeds of the selling price thereafter. If,

 

 

HB3140- 8 -LRB099 10111 HLH 30334 b

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

 

 

HB3140- 9 -LRB099 10111 HLH 30334 b

1by an entity licensed under the Hospital Licensing Act, the
2Nursing Home Care Act, the ID/DD Community Care Act, the
3Specialized Mental Health Rehabilitation Act of 2013, or the
4Child Care Act of 1969. The tax shall also be imposed at the
5rate of 1% on food for human consumption that is to be consumed
6off the premises where it is sold (other than alcoholic
7beverages, soft drinks, and food that has been prepared for
8immediate consumption and is not otherwise included in this
9paragraph) and prescription and nonprescription medicines,
10drugs, medical appliances, modifications to a motor vehicle for
11the purpose of rendering it usable by a disabled person, and
12insulin, urine testing materials, syringes, and needles used by
13diabetics, for human use. For the purposes of this Section,
14until September 1, 2009: the term "soft drinks" means any
15complete, finished, ready-to-use, non-alcoholic drink, whether
16carbonated or not, including but not limited to soda water,
17cola, fruit juice, vegetable juice, carbonated water, and all
18other preparations commonly known as soft drinks of whatever
19kind or description that are contained in any closed or sealed
20bottle, can, carton, or container, regardless of size; but
21"soft drinks" does not include coffee, tea, non-carbonated
22water, infant formula, milk or milk products as defined in the
23Grade A Pasteurized Milk and Milk Products Act, or drinks
24containing 50% or more natural fruit or vegetable juice.
25    Notwithstanding any other provisions of this Act,
26beginning September 1, 2009, "soft drinks" means non-alcoholic

 

 

HB3140- 10 -LRB099 10111 HLH 30334 b

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

 

 

HB3140- 11 -LRB099 10111 HLH 30334 b

1beginning September 1, 2009, "nonprescription medicines and
2drugs" does not include grooming and hygiene products. For
3purposes of this Section, "grooming and hygiene products"
4includes, but is not limited to, soaps and cleaning solutions,
5shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
6lotions and screens, unless those products are available by
7prescription only, regardless of whether the products meet the
8definition of "over-the-counter-drugs". For the purposes of
9this paragraph, "over-the-counter-drug" means a drug for human
10use that contains a label that identifies the product as a drug
11as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
12label includes:
13        (A) A "Drug Facts" panel; or
14        (B) A statement of the "active ingredient(s)" with a
15    list of those ingredients contained in the compound,
16    substance or preparation.
17    Beginning on January 1, 2014 (the effective date of Public
18Act 98-122), "prescription and nonprescription medicines and
19drugs" includes medical cannabis purchased from a registered
20dispensing organization under the Compassionate Use of Medical
21Cannabis Pilot Program Act.
22    If the property that is acquired from a serviceman is
23acquired outside Illinois and used outside Illinois before
24being brought to Illinois for use here and is taxable under
25this Act, the "selling price" on which the tax is computed
26shall be reduced by an amount that represents a reasonable

 

 

HB3140- 12 -LRB099 10111 HLH 30334 b

1allowance for depreciation for the period of prior out-of-state
2use.
3(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-636,
4eff. 6-1-12; 98-104, eff. 7-22-13; 98-122, eff. 1-1-14; 98-756,
5eff. 7-16-14.)
 
6    Section 15. The Service Occupation Tax Act is amended by
7changing Section 3-10 as follows:
 
8    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
9    Sec. 3-10. Rate of tax. Unless otherwise provided in this
10Section, the tax imposed by this Act is at the rate of 6.25% of
11the "selling price", as defined in Section 2 of the Service Use
12Tax Act, of the tangible personal property. For the purpose of
13computing this tax, in no event shall the "selling price" be
14less than the cost price to the serviceman of the tangible
15personal property transferred. The selling price of each item
16of tangible personal property transferred as an incident of a
17sale of service may be shown as a distinct and separate item on
18the serviceman's billing to the service customer. If the
19selling price is not so shown, the selling price of the
20tangible personal property is deemed to be 50% of the
21serviceman's entire billing to the service customer. When,
22however, a serviceman contracts to design, develop, and produce
23special order machinery or equipment, the tax imposed by this
24Act shall be based on the serviceman's cost price of the

 

 

HB3140- 13 -LRB099 10111 HLH 30334 b

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

 

 

HB3140- 14 -LRB099 10111 HLH 30334 b

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

 

 

HB3140- 15 -LRB099 10111 HLH 30334 b

1the sale of those services.
2    The tax shall be imposed at the rate of 1% on food prepared
3for immediate consumption and transferred incident to a sale of
4service subject to this Act or the Service Occupation Tax Act
5by an entity licensed under the Hospital Licensing Act, the
6Nursing Home Care Act, the ID/DD Community Care Act, the
7Specialized Mental Health Rehabilitation Act of 2013, or the
8Child Care Act of 1969. The tax shall also be imposed at the
9rate of 1% on food for human consumption that is to be consumed
10off the premises where it is sold (other than alcoholic
11beverages, soft drinks, and food that has been prepared for
12immediate consumption and is not otherwise included in this
13paragraph) and prescription and nonprescription medicines,
14drugs, medical appliances, modifications to a motor vehicle for
15the purpose of rendering it usable by a disabled person, and
16insulin, urine testing materials, syringes, and needles used by
17diabetics, for human use. For the purposes of this Section,
18until September 1, 2009: the term "soft drinks" means any
19complete, finished, ready-to-use, non-alcoholic drink, whether
20carbonated or not, including but not limited to soda water,
21cola, fruit juice, vegetable juice, carbonated water, and all
22other preparations commonly known as soft drinks of whatever
23kind or description that are contained in any closed or sealed
24can, carton, or container, regardless of size; but "soft
25drinks" does not include coffee, tea, non-carbonated water,
26infant formula, milk or milk products as defined in the Grade A

 

 

HB3140- 16 -LRB099 10111 HLH 30334 b

1Pasteurized Milk and Milk Products Act, or drinks containing
250% or more natural fruit or vegetable juice.
3    Notwithstanding any other provisions of this Act,
4beginning September 1, 2009, "soft drinks" means non-alcoholic
5beverages that contain natural or artificial sweeteners. "Soft
6drinks" do not include beverages that contain milk or milk
7products, soy, rice or similar milk substitutes, or greater
8than 50% of vegetable or fruit juice by volume.
9    Until 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

 

 

HB3140- 17 -LRB099 10111 HLH 30334 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    Beginning on January 1, 2014 (the effective date of Public
22Act 98-122), "prescription and nonprescription medicines and
23drugs" includes medical cannabis purchased from a registered
24dispensing organization under the Compassionate Use of Medical
25Cannabis Pilot Program Act.
26(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-636,

 

 

HB3140- 18 -LRB099 10111 HLH 30334 b

1eff. 6-1-12; 98-104, eff. 7-22-13; 98-122, eff. 1-1-14; 98-756,
2eff. 7-16-14.)
 
3    Section 20. The Retailers' Occupation Tax Act is amended by
4changing Section 2-10 as follows:
 
5    (35 ILCS 120/2-10)
6    Sec. 2-10. Rate of tax. Unless otherwise provided in this
7Section, the tax imposed by this Act is at the rate of 6.25% of
8gross receipts from sales of tangible personal property made in
9the course of business.
10    Beginning on July 1, 2000 and through December 31, 2000,
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    Beginning on August 6, 2010 through August 15, 2010, with
15respect to sales tax holiday items as defined in Section 2-8 of
16this Act, the tax is imposed at the rate of 1.25%.
17    Within 14 days after the effective date of this amendatory
18Act of the 91st General Assembly, each retailer of motor fuel
19and gasohol shall cause the following notice to be posted in a
20prominently visible place on each retail dispensing device that
21is used to dispense motor fuel or gasohol in the State of
22Illinois: "As of July 1, 2000, the State of Illinois has
23eliminated the State's share of sales tax on motor fuel and
24gasohol through December 31, 2000. The price on this pump

 

 

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1should reflect the elimination of the tax." The notice shall be
2printed in bold print on a sign that is no smaller than 4
3inches by 8 inches. The sign shall be clearly visible to
4customers. Any retailer who fails to post or maintain a
5required sign through December 31, 2000 is guilty of a petty
6offense for which the fine shall be $500 per day per each
7retail premises where a violation occurs.
8    With respect to gasohol, as defined in the Use Tax Act, the
9tax imposed by this Act applies to (i) 70% of the proceeds of
10sales made on or after January 1, 1990, and before July 1,
112003, (ii) 80% of the proceeds of sales made on or after July
121, 2003 and on or before December 31, 2018, and (iii) 100% of
13the proceeds of sales made thereafter. If, at any time,
14however, the tax under this Act on sales of gasohol, as defined
15in the Use Tax Act, is imposed at the rate of 1.25%, then the
16tax imposed by this Act applies to 100% of the proceeds of
17sales of gasohol made during that time.
18    With respect to majority blended ethanol fuel, as defined
19in the Use Tax Act, the tax imposed by this Act does not apply
20to the proceeds of sales made on or after July 1, 2003 and on or
21before December 31, 2018 but applies to 100% of the proceeds of
22sales made thereafter.
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 proceeds of
26sales made on or after July 1, 2003 and on or before December

 

 

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131, 2018 and (ii) 100% of the proceeds of sales made
2thereafter. If, at any time, however, the tax under this Act on
3sales of biodiesel blends, as defined in the Use Tax Act, with
4no less than 1% and no more than 10% biodiesel is imposed at
5the rate of 1.25%, then the tax imposed by this Act applies to
6100% of the proceeds of sales of biodiesel blends with no less
7than 1% and no more than 10% biodiesel made during that time.
8    With respect to 100% biodiesel, as defined in the Use Tax
9Act, and biodiesel blends, as defined in the Use Tax Act, with
10more than 10% but no more than 99% biodiesel, the tax imposed
11by this Act does not apply to the proceeds of sales made on or
12after July 1, 2003 and on or before December 31, 2018 but
13applies to 100% of the proceeds of sales made thereafter.
14    With respect to food for human consumption that is to be
15consumed off the premises where it is sold (other than
16alcoholic beverages, soft drinks, and food that has been
17prepared for immediate consumption) and prescription and
18nonprescription medicines, drugs, medical appliances,
19modifications to a motor vehicle for the purpose of rendering
20it usable by a disabled person, and insulin, urine testing
21materials, syringes, and needles used by diabetics, for human
22use, the tax is imposed at the rate of 1%. For the purposes of
23this Section, until September 1, 2009: the term "soft drinks"
24means any complete, finished, ready-to-use, non-alcoholic
25drink, whether carbonated or not, including but not limited to
26soda water, cola, fruit juice, vegetable juice, carbonated

 

 

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

 

 

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

 

 

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1    Beginning on the effective date of this amendatory Act of
2the 98th General Assembly, "prescription and nonprescription
3medicines and drugs" includes medical cannabis purchased from a
4registered dispensing organization under the Compassionate Use
5of Medical Cannabis Pilot Program Act.
6(Source: P.A. 97-636, eff. 6-1-12; 98-122, eff. 1-1-14.)