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Full Text of SB2078  97th General Assembly

SB2078 97TH GENERAL ASSEMBLY

  
  

 


 
97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB2078

 

Introduced 2/10/2011, by Sen. Kirk W. Dillard

 

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, 2011, 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 10319 HLH 50527 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2078LRB097 10319 HLH 50527 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,
132011, the 1.25% rate on motor fuel and gasohol, and beginning
14on August 6, 2010 through August 15, 2010, the 1.25% rate on
15sales tax holiday items) on sales subject to taxation under the
16Retailers' Occupation Tax Act and the Service Occupation Tax
17Act, which occurred in municipalities, shall be distributed to
18each municipality, based upon the sales which occurred in that
19municipality. The remainder shall be distributed to each
20county, based upon the sales which occurred in the
21unincorporated 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;
20revised 7-22-10.)
 
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, 2011, the 1.25% rate on motor
25fuel and gasohol, and beginning on August 6, 2010 through

 

 

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1August 15, 2010, the 1.25% rate on sales tax holiday items) on
2sales subject to taxation under the Retailers' Occupation Tax
3Act and Service Occupation Tax Act and paid into the County and
4Mass Transit District Fund, distribution to the Regional
5Transportation Authority tax fund, created pursuant to Section
64.03 of the Regional Transportation Authority Act, for deposit
7therein shall be made based upon the retail sales occurring in
8a county having more than 3,000,000 inhabitants. The remainder
9shall be distributed to each county having 3,000,000 or fewer
10inhabitants based upon the retail sales occurring in each such
11county.
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;
10revised 7-22-10.)
 
11    Section 10. The Use Tax Act is amended by changing Section
123-10 as follows:
 
13    (35 ILCS 105/3-10)
14    Sec. 3-10. Rate of tax. Unless otherwise provided in this
15Section, the tax imposed by this Act is at the rate of 6.25% of
16either the selling price or the fair market value, if any, of
17the tangible personal property. In all cases where property
18functionally used or consumed is the same as the property that
19was purchased at retail, then the tax is imposed on the selling
20price of the property. In all cases where property functionally
21used or consumed is a by-product or waste product that has been
22refined, manufactured, or produced from property purchased at
23retail, then the tax is imposed on the lower of the fair market
24value, if any, of the specific property so used in this State

 

 

SB2078- 11 -LRB097 10319 HLH 50527 b

1or on the selling price of the property purchased at retail.
2For purposes of this Section "fair market value" means the
3price at which property would change hands between a willing
4buyer and a willing seller, neither being under any compulsion
5to buy or sell and both having reasonable knowledge of the
6relevant facts. The fair market value shall be established by
7Illinois sales by the taxpayer of the same property as that
8functionally used or consumed, or if there are no such sales by
9the taxpayer, then comparable sales or purchases of property of
10like kind and character in Illinois.
11    Beginning on July 1, 2000 and through December 31, 2000 and
12beginning again on July 1, 2011, with respect to motor fuel, as
13defined in Section 1.1 of the Motor Fuel Tax Law, and gasohol,
14as defined in Section 3-40 of the Use Tax Act, the tax is
15imposed at the rate of 1.25%.
16    Beginning on August 6, 2010 through August 15, 2010, with
17respect to sales tax holiday items as defined in Section 3-6 of
18this Act, the tax is imposed at the rate of 1.25%.
19    With respect to gasohol, the tax imposed by this Act
20applies to (i) 70% of the proceeds of sales made on or after
21January 1, 1990, and before July 1, 2003, (ii) 80% of the
22proceeds of sales made on or after July 1, 2003 and on or
23before December 31, 2013, and (iii) 100% of the proceeds of
24sales made thereafter. If, at any time, however, the tax under
25this Act on sales of gasohol is imposed at the rate of 1.25%,
26then the tax imposed by this Act applies to 100% of the

 

 

SB2078- 12 -LRB097 10319 HLH 50527 b

1proceeds of sales of gasohol made during that time.
2    With respect to majority blended ethanol fuel, the tax
3imposed by this Act does not apply to the proceeds of sales
4made on or after July 1, 2003 and on or before December 31,
52013 but applies to 100% of the proceeds of sales made
6thereafter.
7    With respect to biodiesel blends with no less than 1% and
8no more than 10% biodiesel, the tax imposed by this Act applies
9to (i) 80% of the proceeds of sales made on or after July 1,
102003 and on or before December 31, 2013 and (ii) 100% of the
11proceeds of sales made thereafter. If, at any time, however,
12the tax under this Act on sales of biodiesel blends with no
13less than 1% and no more than 10% biodiesel is imposed at the
14rate of 1.25%, then the tax imposed by this Act applies to 100%
15of the proceeds of sales of biodiesel blends with no less than
161% and no more than 10% biodiesel made during that time.
17    With respect to 100% biodiesel and biodiesel blends with
18more than 10% but no more than 99% biodiesel, the tax imposed
19by this Act does not apply to the proceeds of sales made on or
20after July 1, 2003 and on or before December 31, 2013 but
21applies to 100% of the proceeds of sales made thereafter.
22    With respect to food for human consumption that is to be
23consumed off the premises where it is sold (other than
24alcoholic beverages, soft drinks, and food that has been
25prepared for immediate consumption) and prescription and
26nonprescription medicines, drugs, medical appliances,

 

 

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

 

 

SB2078- 15 -LRB097 10319 HLH 50527 b

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 purchased at retail from a retailer
10is acquired 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; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10.)
 
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
22Section, the tax imposed by this Act is at the rate of 6.25% of
23the selling price of tangible personal property transferred as
24an incident to the sale of service, but, for the purpose of

 

 

SB2078- 16 -LRB097 10319 HLH 50527 b

1computing this tax, in no event shall the selling price be less
2than the cost price of the property to the serviceman.
3    Beginning on July 1, 2000 and through December 31, 2000 and
4beginning again on July 1, 2011, with respect to motor fuel, as
5defined in Section 1.1 of the Motor Fuel Tax Law, and gasohol,
6as defined in Section 3-40 of the Use Tax Act, the tax is
7imposed at the rate of 1.25%.
8    With respect to gasohol, as defined in the Use Tax Act, the
9tax imposed by this Act applies to (i) 70% of the selling price
10of property transferred as an incident to the sale of service
11on or after January 1, 1990, and before July 1, 2003, (ii) 80%
12of 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, and (iii) 100% of the selling price
15thereafter. If, at any time, however, the tax under this Act on
16sales of gasohol, as defined in the Use Tax Act, is imposed at
17the rate of 1.25%, then the tax imposed by this Act applies to
18100% of the proceeds of sales of gasohol made during that time.
19    With respect to majority blended ethanol fuel, as defined
20in the Use Tax Act, the tax imposed by this Act does not apply
21to the selling price of property transferred as an incident to
22the sale of service on or after July 1, 2003 and on or before
23December 31, 2013 but applies to 100% of the selling price
24thereafter.
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

 

 

SB2078- 17 -LRB097 10319 HLH 50527 b

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

 

 

SB2078- 18 -LRB097 10319 HLH 50527 b

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

 

 

SB2078- 19 -LRB097 10319 HLH 50527 b

1containing 50% or more natural 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

 

 

SB2078- 20 -LRB097 10319 HLH 50527 b

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

 

 

SB2078- 21 -LRB097 10319 HLH 50527 b

1(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
2eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10.)
 
3    Section 20. The Service Occupation Tax Act is amended by
4changing Section 3-10 as follows:
 
5    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
6    Sec. 3-10. Rate of tax. Unless otherwise provided in this
7Section, the tax imposed by this Act is at the rate of 6.25% of
8the "selling price", as defined in Section 2 of the Service Use
9Tax Act, of the tangible personal property. For the purpose of
10computing this tax, in no event shall the "selling price" be
11less than the cost price to the serviceman of the tangible
12personal property transferred. The selling price of each item
13of tangible personal property transferred as an incident of a
14sale of service may be shown as a distinct and separate item on
15the serviceman's billing to the service customer. If the
16selling price is not so shown, the selling price of the
17tangible personal property is deemed to be 50% of the
18serviceman's entire billing to the service customer. When,
19however, a serviceman contracts to design, develop, and produce
20special order machinery or equipment, the tax imposed by this
21Act shall be based on the serviceman's cost price of the
22tangible personal property transferred incident to the
23completion of the contract.
24    Beginning on July 1, 2000 and through December 31, 2000 and

 

 

SB2078- 22 -LRB097 10319 HLH 50527 b

1beginning again on July 1, 2011, with respect to motor fuel, as
2defined in Section 1.1 of the Motor Fuel Tax Law, and gasohol,
3as defined in Section 3-40 of the Use Tax Act, the tax is
4imposed at the rate of 1.25%.
5    With respect to gasohol, as defined in the Use Tax Act, the
6tax imposed by this Act shall apply to (i) 70% of the cost
7price of property transferred as an incident to the sale of
8service on or after January 1, 1990, and before July 1, 2003,
9(ii) 80% of the selling price of property transferred as an
10incident to the sale of service on or after July 1, 2003 and on
11or before December 31, 2013, and (iii) 100% of the cost price
12thereafter. If, at any time, however, the tax under this Act on
13sales of gasohol, as defined in the Use Tax Act, is imposed at
14the rate of 1.25%, then the tax imposed by this Act applies to
15100% of the proceeds of sales of gasohol made during that time.
16    With respect to majority blended ethanol fuel, as defined
17in the Use Tax Act, the tax imposed by this Act does not apply
18to 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 but applies to 100% of the selling price
21thereafter.
22    With respect to biodiesel blends, as defined in the Use Tax
23Act, with no less than 1% and no more than 10% biodiesel, the
24tax imposed by this Act applies to (i) 80% of the selling price
25of property transferred as an incident to the sale of service
26on or after July 1, 2003 and on or before December 31, 2013 and

 

 

SB2078- 23 -LRB097 10319 HLH 50527 b

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

 

 

SB2078- 24 -LRB097 10319 HLH 50527 b

1for immediate consumption and transferred incident to a sale of
2service subject to this Act or the Service Occupation Tax Act
3by an entity licensed under the Hospital Licensing Act, the
4Nursing Home Care Act, the MR/DD Community Care Act, or the
5Child Care Act of 1969. The tax shall also be imposed at the
6rate of 1% on food for human consumption that is to be consumed
7off the premises where it is sold (other than alcoholic
8beverages, soft drinks, and food that has been prepared for
9immediate consumption and is not otherwise included in this
10paragraph) and prescription and nonprescription medicines,
11drugs, medical appliances, modifications to a motor vehicle for
12the purpose of rendering it usable by a disabled person, and
13insulin, urine testing materials, syringes, and needles used by
14diabetics, for human use. For the purposes of this Section,
15until September 1, 2009: the term "soft drinks" means any
16complete, finished, ready-to-use, non-alcoholic drink, whether
17carbonated or not, including but not limited to soda water,
18cola, fruit juice, vegetable juice, carbonated water, and all
19other preparations commonly known as soft drinks of whatever
20kind or description that are contained in any closed or sealed
21can, carton, or container, regardless of size; but "soft
22drinks" does not include coffee, tea, non-carbonated water,
23infant formula, milk or milk products as defined in the Grade A
24Pasteurized Milk and Milk Products Act, or drinks containing
2550% or more natural fruit or vegetable juice.
26    Notwithstanding any other provisions of this Act,

 

 

SB2078- 25 -LRB097 10319 HLH 50527 b

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

 

 

SB2078- 26 -LRB097 10319 HLH 50527 b

1    Notwithstanding any other provisions of this Act,
2beginning September 1, 2009, "nonprescription medicines and
3drugs" does not include grooming and hygiene products. For
4purposes of this Section, "grooming and hygiene products"
5includes, but is not limited to, soaps and cleaning solutions,
6shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
7lotions and screens, unless those products are available by
8prescription only, regardless of whether the products meet the
9definition of "over-the-counter-drugs". For the purposes of
10this paragraph, "over-the-counter-drug" means a drug for human
11use that contains a label that identifies the product as a drug
12as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
13label includes:
14        (A) A "Drug Facts" panel; or
15        (B) A statement of the "active ingredient(s)" with a
16    list of those ingredients contained in the compound,
17    substance or preparation.
18(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
19eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10.)
 
20    Section 25. The Retailers' Occupation Tax Act is amended by
21changing Section 2-10 as follows:
 
22    (35 ILCS 120/2-10)
23    Sec. 2-10. Rate of tax. Unless otherwise provided in this
24Section, the tax imposed by this Act is at the rate of 6.25% of

 

 

SB2078- 27 -LRB097 10319 HLH 50527 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, 2011, with respect to motor fuel, as
5defined in Section 1.1 of the Motor Fuel Tax Law, and gasohol,
6as defined in Section 3-40 of the Use Tax Act, the tax is
7imposed 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    With respect to gasohol, as defined in the Use Tax Act, the

 

 

SB2078- 28 -LRB097 10319 HLH 50527 b

1tax imposed by this Act applies to (i) 70% of the proceeds of
2sales made on or after January 1, 1990, and before July 1,
32003, (ii) 80% of the proceeds of sales made on or after July
41, 2003 and on or before December 31, 2013, and (iii) 100% of
5the proceeds of sales made thereafter. If, at any time,
6however, the tax under this Act on sales of gasohol, as defined
7in the Use Tax Act, is imposed at the rate of 1.25%, then the
8tax imposed by this Act applies to 100% of the proceeds of
9sales 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 proceeds of sales made on or after July 1, 2003 and on or
13before December 31, 2013 but applies to 100% of the proceeds of
14sales made thereafter.
15    With respect to biodiesel blends, as defined in the Use Tax
16Act, with no less than 1% and no more than 10% biodiesel, the
17tax imposed by this Act applies to (i) 80% of the proceeds of
18sales made on or after July 1, 2003 and on or before December
1931, 2013 and (ii) 100% of the proceeds of sales made
20thereafter. If, at any time, however, the tax under this Act on
21sales of biodiesel blends, as defined in the Use Tax Act, with
22no less than 1% and no more than 10% biodiesel is imposed at
23the rate of 1.25%, then the tax imposed by this Act applies to
24100% of the proceeds of sales of biodiesel blends with no less
25than 1% and no more than 10% biodiesel made during that time.
26    With respect to 100% biodiesel, as defined in the Use Tax

 

 

SB2078- 29 -LRB097 10319 HLH 50527 b

1Act, and biodiesel blends, as defined in the Use Tax Act, with
2more than 10% but no more than 99% biodiesel, the tax imposed
3by this Act does not apply to the proceeds of sales made on or
4after July 1, 2003 and on or before December 31, 2013 but
5applies to 100% of the proceeds of sales made thereafter.
6    With respect to food for human consumption that is to be
7consumed off the premises where it is sold (other than
8alcoholic beverages, soft drinks, and food that has been
9prepared for immediate consumption) and prescription and
10nonprescription medicines, drugs, medical appliances,
11modifications to a motor vehicle for the purpose of rendering
12it usable by a disabled person, and insulin, urine testing
13materials, syringes, and needles used by diabetics, for human
14use, the tax is imposed at the rate of 1%. For the purposes of
15this Section, until September 1, 2009: the term "soft drinks"
16means any complete, finished, ready-to-use, non-alcoholic
17drink, whether carbonated or not, including but not limited to
18soda water, cola, fruit juice, vegetable juice, carbonated
19water, and all other preparations commonly known as soft drinks
20of whatever kind or description that are contained in any
21closed or sealed bottle, can, carton, or container, regardless
22of size; but "soft drinks" does not include coffee, tea,
23non-carbonated water, infant formula, milk or milk products as
24defined in the Grade A Pasteurized Milk and Milk Products Act,
25or drinks containing 50% or more natural fruit or vegetable
26juice.

 

 

SB2078- 30 -LRB097 10319 HLH 50527 b

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

 

 

SB2078- 31 -LRB097 10319 HLH 50527 b

1flour or requires refrigeration.
2    Notwithstanding any other provisions of this Act,
3beginning September 1, 2009, "nonprescription medicines and
4drugs" does not include grooming and hygiene products. For
5purposes of this Section, "grooming and hygiene products"
6includes, but is not limited to, soaps and cleaning solutions,
7shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
8lotions and screens, unless those products are available by
9prescription only, regardless of whether the products meet the
10definition of "over-the-counter-drugs". For the purposes of
11this paragraph, "over-the-counter-drug" means a drug for human
12use that contains a label that identifies the product as a drug
13as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
14label includes:
15        (A) A "Drug Facts" panel; or
16        (B) A statement of the "active ingredient(s)" with a
17    list of those ingredients contained in the compound,
18    substance or preparation.
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.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.