35 ILCS 115/3-10

(35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)

Sec. 3-10. Rate of tax.

Unless otherwise provided in this Section,
the tax imposed by this Act is at the rate of 6.25% of the "selling price",
as defined in Section 2 of the Service Use Tax Act, of the tangible
personal property.  For the purpose of computing this tax, in no event
shall the "selling price" be less than the cost price to the serviceman of
the tangible personal property transferred.  The selling price of each item
of tangible personal property transferred as an incident of a sale of
service may be shown as a distinct and separate item on the serviceman's
billing to the service customer. If the selling price is not so shown, the
selling price of the tangible personal property is deemed to be 50% of the
serviceman's entire billing to the service customer.  When, however, a
serviceman contracts to design, develop, and produce special order machinery or
equipment, the tax imposed by this Act shall be based on the serviceman's
cost price of the tangible personal property transferred incident to the
completion of the contract.

Beginning on July 1, 2000 and through December 31, 2000, with respect to
motor fuel, as defined in Section 1.1 of the Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of the Use Tax Act, the tax is
imposed at
the rate of 1.25%.

With respect to gasohol, as defined in the Use Tax Act, the tax imposed
by this Act shall apply to (i) 70% of the cost price of property
transferred as
an incident to the sale of service on or after January 1, 1990, and before
July 1, 2003, (ii) 80% of the selling price of property transferred as an
incident to the sale of service on or after July
1, 2003 and on or before December 31, 2018, and (iii) 100%
of
the cost price
thereafter.
If, at any time, however, the tax under this Act on sales of gasohol, as
defined in
the Use Tax Act, is imposed at the rate of 1.25%, then the
tax imposed by this Act applies to 100% of the proceeds of sales of gasohol
made during that time.

With respect to majority blended ethanol fuel, as defined in the Use Tax Act,
the
tax
imposed by this Act does not apply to the selling price of property transferred
as an incident to the sale of service on or after July 1, 2003 and on or before
December 31, 2018 but applies to 100% of the selling price thereafter.

With respect to biodiesel blends, as defined in the Use Tax Act, with no less
than 1% and no
more than 10% biodiesel, the tax imposed by this Act
applies to (i) 80% of the selling price of property transferred as an incident
to the sale of service on or after July 1, 2003 and on or before December 31, 2018
 and (ii) 100% of the proceeds of the selling price
thereafter.
If, at any time, however, the tax under this Act on sales of biodiesel blends,
as
defined in the Use Tax Act, with no less than 1% and no more than 10% biodiesel
is imposed at the rate of 1.25%, then the
tax imposed by this Act applies to 100% of the proceeds of sales of biodiesel
blends with no less than 1% and no more than 10% biodiesel
made
during that time.

With respect to 100% biodiesel, as defined in the Use Tax Act, and biodiesel
blends, as defined in the Use Tax Act, with
more than 10% but no more than 99% biodiesel material, the tax imposed by this
Act
does not apply to the proceeds of the selling price of property transferred
as an incident to the sale of service on or after July 1, 2003 and on or before
December 31, 2018 but applies to 100% of the selling price thereafter.

At the election of any registered serviceman made for each fiscal year,
sales of service in which the aggregate annual cost price of tangible
personal property transferred as an incident to the sales of service is
less than 35%, or 75% in the case of servicemen transferring prescription
drugs or servicemen engaged in graphic arts production, of the aggregate
annual total gross receipts from all sales of service, the tax imposed by
this Act shall be based on the serviceman's cost price of the tangible
personal property transferred incident to the sale of those services.

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

Notwithstanding any other provisions of this
Act, beginning September 1, 2009, "soft drinks" means non-alcoholic beverages that contain natural or artificial sweeteners.  "Soft drinks" do not include beverages that contain milk or milk products, soy, rice or similar milk substitutes, or greater than 50% of vegetable or fruit juice by volume.

Until August 1, 2009, and notwithstanding any other provisions of this Act, "food for human consumption
that is to be consumed off the premises where it is sold" includes all food
sold through a vending machine, except soft drinks and food products that are
dispensed hot from a vending machine, regardless of the location of the vending
machine. Beginning August 1, 2009, and notwithstanding any other provisions of this Act, "food for human consumption that is to be consumed off the premises where it is sold" includes all food sold through a vending machine, except soft drinks, candy, and food products that are dispensed hot from a vending machine, regardless of the location of the vending machine.

Notwithstanding any other provisions of this
Act, beginning September 1, 2009, "food for human consumption that is to be consumed off the premises where
it is sold" does not include candy.  For purposes of this Section, "candy" means a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts or other ingredients or flavorings in the form of bars, drops, or pieces.  "Candy" does not include any preparation that contains flour or requires refrigeration.

Notwithstanding any other provisions of this
Act, beginning September 1, 2009, "nonprescription medicines and drugs"  does not include grooming and hygiene products.  For purposes of this Section, "grooming and hygiene products" includes, but is not limited to, soaps and cleaning solutions, shampoo, toothpaste, mouthwash, antiperspirants, and sun tan lotions and screens, unless those products are available by prescription only, regardless of whether the products meet the definition of "over-the-counter-drugs".  For the purposes of this paragraph, "over-the-counter-drug" means a drug for human use that contains a label that identifies the product as a drug as required by 21 C.F.R. § 201.66.  The "over-the-counter-drug" label includes:

(A) A "Drug Facts" panel; or
(B) A statement of the "active ingredient(s)" with a