State of Illinois
90th General Assembly
Legislation

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90_SB1455sam001

                                             LRB9011546KDksam
 1                    AMENDMENT TO SENATE BILL 1455
 2        AMENDMENT NO.     .  Amend Senate Bill 1455 by  replacing
 3    everything after the enacting clause with the following:
 4        "Section  5.  The  Use  Tax  Act  is  amended by changing
 5    Section 3-10 as follows:
 6        (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
 7        Sec. 3-10.  Rate of tax.  Unless  otherwise  provided  in
 8    this  Section,  the tax imposed by this Act is at the rate of
 9    6.25% of either the selling price or the fair  market  value,
10    if  any,  of  the  tangible  personal property.  In all cases
11    where property functionally used or consumed is the  same  as
12    the  property  that  was purchased at retail, then the tax is
13    imposed on the selling price of the property.  In  all  cases
14    where  property functionally used or consumed is a by-product
15    or waste product that  has  been  refined,  manufactured,  or
16    produced  from  property purchased at retail, then the tax is
17    imposed on the lower of the fair market value, if any, of the
18    specific property so used in this State  or  on  the  selling
19    price  of  the  property purchased at retail. For purposes of
20    this Section "fair market value" means  the  price  at  which
21    property  would  change  hands  between a willing buyer and a
22    willing seller, neither being under any compulsion to buy  or
                            -2-              LRB9011546KDksam
 1    sell  and  both  having  reasonable knowledge of the relevant
 2    facts. The fair market value shall be established by Illinois
 3    sales  by  the  taxpayer  of  the  same  property   as   that
 4    functionally  used or consumed, or if there are no such sales
 5    by the  taxpayer,  then  comparable  sales  or  purchases  of
 6    property of like kind and character in Illinois.
 7        With  respect  to  gasohol,  the  tax imposed by this Act
 8    applies to 70% of the proceeds of  sales  made  on  or  after
 9    January 1, 1990, and before July 1, 2003 1999, and to 100% of
10    the  proceeds of sales made thereafter, except that from July
11    1, 1997 to July 1, 1999, the rate shall be  85%  for  gasohol
12    sold  in  this  State  during  the 12 months beginning July 1
13    following any calendar year  for  which  the  Department  has
14    determined  that the percentages in Section 10 of the Gasohol
15    Fuels Tax Abatement Act have not been met.
16        With respect to food for human consumption that is to  be
17    consumed  off  the  premises  where  it  is  sold (other than
18    alcoholic beverages, soft drinks,  and  food  that  has  been
19    prepared  for  immediate  consumption)  and  prescription and
20    nonprescription   medicines,   drugs,   medical   appliances,
21    modifications to a motor vehicle for the purpose of rendering
22    it usable by a disabled person, and  insulin,  urine  testing
23    materials, syringes, and needles used by diabetics, for human
24    use,  the  tax is imposed at the rate of 1%. For the purposes
25    of this Section, the term "soft drinks" means  any  complete,
26    finished,    ready-to-use,   non-alcoholic   drink,   whether
27    carbonated or not, including but not limited to  soda  water,
28    cola, fruit juice, vegetable juice, carbonated water, and all
29    other  preparations commonly known as soft drinks of whatever
30    kind or description that  are  contained  in  any  closed  or
31    sealed bottle, can, carton, or container, regardless of size.
32    "Soft  drinks"  does  not include coffee, tea, non-carbonated
33    water, infant formula, milk or milk products  as  defined  in
34    the Grade A Pasteurized Milk and Milk Products Act, or drinks
                            -3-              LRB9011546KDksam
 1    containing 50% or more natural fruit or vegetable juice.
 2        Notwithstanding  any  other provisions of this Act, "food
 3    for human consumption that is to be consumed off the premises
 4    where it is sold" includes all food sold  through  a  vending
 5    machine,  except  soft  drinks  and  food  products  that are
 6    dispensed hot from  a  vending  machine,  regardless  of  the
 7    location of the vending machine.
 8        If  the  property  that  is  purchased  at  retail from a
 9    retailer  is  acquired  outside  Illinois  and  used  outside
10    Illinois before being brought to Illinois for use here and is
11    taxable under this Act, the "selling price" on which the  tax
12    is  computed  shall be reduced by an amount that represents a
13    reasonable allowance for depreciation for the period of prior
14    out-of-state use.
15    (Source: P.A.  88-45;  89-359,  eff.  8-17-95;  89-420,  eff.
16    6-1-96; 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
17        Section  10.  The  Service  Use  Tax  Act  is  amended by
18    changing Section 3-10 as follows:
19        (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
20        Sec. 3-10.  Rate of tax.  Unless  otherwise  provided  in
21    this  Section,  the tax imposed by this Act is at the rate of
22    6.25% of the selling  price  of  tangible  personal  property
23    transferred  as  an incident to the sale of service, but, for
24    the purpose of computing this tax,  in  no  event  shall  the
25    selling  price be less than the cost price of the property to
26    the serviceman.
27        With respect to gasohol, as defined in the Use  Tax  Act,
28    the  tax  imposed  by  this Act applies to 70% of the selling
29    price of property transferred as an incident to the  sale  of
30    service  on or after January 1, 1990, and before July 1, 2003
31    1999, and to 100% of the  selling  price  thereafter,  except
32    that from July 1, 1997 to July 1, 1999, the rate shall be 85%
                            -4-              LRB9011546KDksam
 1    for gasohol sold in this State during the 12 months beginning
 2    July  1  following any calendar year for which the Department
 3    has determined that the percentages  in  Section  10  of  the
 4    Gasohol Fuels Tax Abatement Act have not been met.
 5        At  the  election  of  any registered serviceman made for
 6    each fiscal year, sales of service  in  which  the  aggregate
 7    annual  cost  price of tangible personal property transferred
 8    as an incident to the sales of service is less than  35%,  or
 9    75% in the case of servicemen transferring prescription drugs
10    or  servicemen  engaged  in  graphic  arts production, of the
11    aggregate annual total  gross  receipts  from  all  sales  of
12    service,  the  tax  imposed by this Act shall be based on the
13    serviceman's cost price of  the  tangible  personal  property
14    transferred as an incident to the sale of those services.
15        The  tax  shall  be  imposed  at  the  rate of 1% on food
16    prepared for immediate consumption and  transferred  incident
17    to  a  sale  of  service  subject  to this Act or the Service
18    Occupation Tax Act by an entity licensed under  the  Hospital
19    Licensing  Act  or  the Nursing Home Care Act.  The tax shall
20    also be  imposed  at  the  rate  of  1%  on  food  for  human
21    consumption  that is to be consumed off the premises where it
22    is sold (other than alcoholic  beverages,  soft  drinks,  and
23    food  that has been prepared for immediate consumption and is
24    not otherwise included in this  paragraph)  and  prescription
25    and  nonprescription  medicines,  drugs,  medical appliances,
26    modifications to a motor vehicle for the purpose of rendering
27    it usable by a disabled person, and  insulin,  urine  testing
28    materials, syringes, and needles used by diabetics, for human
29    use. For the purposes of this Section, the term "soft drinks"
30    means  any  complete,  finished,  ready-to-use, non-alcoholic
31    drink, whether carbonated or not, including but  not  limited
32    to soda water, cola, fruit juice, vegetable juice, carbonated
33    water,  and  all  other  preparations  commonly known as soft
34    drinks of whatever kind or description that are contained  in
                            -5-              LRB9011546KDksam
 1    any  closed  or  sealed  bottle,  can,  carton, or container,
 2    regardless of size.  "Soft drinks" does not  include  coffee,
 3    tea,  non-carbonated  water,  infant  formula,  milk  or milk
 4    products as defined in the Grade A Pasteurized Milk and  Milk
 5    Products  Act, or drinks containing 50% or more natural fruit
 6    or vegetable juice.
 7        Notwithstanding any other provisions of this  Act,  "food
 8    for human consumption that is to be consumed off the premises
 9    where  it  is  sold" includes all food sold through a vending
10    machine, except  soft  drinks  and  food  products  that  are
11    dispensed  hot  from  a  vending  machine,  regardless of the
12    location of the vending machine.
13        If the property that is acquired  from  a  serviceman  is
14    acquired  outside  Illinois  and used outside Illinois before
15    being brought to Illinois for use here and is  taxable  under
16    this  Act,  the  "selling price" on which the tax is computed
17    shall be reduced by an amount that  represents  a  reasonable
18    allowance   for   depreciation   for   the  period  of  prior
19    out-of-state use.
20    (Source: P.A.  88-45;  89-359,  eff.  8-17-95;  89-420,  eff.
21    6-1-96; 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
22        Section 15.  The Service Occupation Tax Act is amended by
23    changing Section 3-10 as follows:
24        (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
25        Sec. 3-10. Rate of tax.   Unless  otherwise  provided  in
26    this  Section,  the tax imposed by this Act is at the rate of
27    6.25% of the "selling price", as defined in Section 2 of  the
28    Service  Use Tax Act, of the tangible personal property.  For
29    the purpose of computing this tax,  in  no  event  shall  the
30    "selling price" be less than the cost price to the serviceman
31    of  the  tangible personal property transferred.  The selling
32    price of each item of tangible personal property  transferred
                            -6-              LRB9011546KDksam
 1    as  an  incident  of  a  sale  of  service  may be shown as a
 2    distinct and separate item on the serviceman's billing to the
 3    service customer. If the selling price is not so  shown,  the
 4    selling  price of the tangible personal property is deemed to
 5    be 50% of the serviceman's  entire  billing  to  the  service
 6    customer.   When,  however, a serviceman contracts to design,
 7    develop, and produce special order  machinery  or  equipment,
 8    the   tax   imposed  by  this  Act  shall  be  based  on  the
 9    serviceman's cost price of  the  tangible  personal  property
10    transferred incident to the completion of the contract.
11        With  respect  to gasohol, as defined in the Use Tax Act,
12    the tax imposed by this Act shall apply to 70%  of  the  cost
13    price  of  property transferred as an incident to the sale of
14    service on or after January 1, 1990, and before July 1,  2003
15    1999,  and  to 100% of the cost price thereafter, except that
16    from July 1, 1997 to July 1, 1999, the rate shall be 85%  for
17    gasohol  sold  in  this  State during the 12 months beginning
18    July 1 following any calendar year for which  the  Department
19    has  determined  that  the  percentages  in Section 10 of the
20    Gasohol Fuels Tax Abatement Act have not been met.
21        At the election of any  registered  serviceman  made  for
22    each  fiscal  year,  sales  of service in which the aggregate
23    annual cost price of tangible personal  property  transferred
24    as  an  incident to the sales of service is less than 35%, or
25    75% in the case of servicemen transferring prescription drugs
26    or servicemen engaged in  graphic  arts  production,  of  the
27    aggregate  annual  total  gross  receipts  from  all sales of
28    service, the tax imposed by this Act shall be  based  on  the
29    serviceman's  cost  price  of  the tangible personal property
30    transferred incident to the sale of those services.
31        The tax shall be imposed  at  the  rate  of  1%  on  food
32    prepared  for  immediate consumption and transferred incident
33    to a sale of service subject  to  this  Act  or  the  Service
34    Occupation  Tax  Act by an entity licensed under the Hospital
                            -7-              LRB9011546KDksam
 1    Licensing Act or the Nursing Home Care Act.   The  tax  shall
 2    also  be  imposed  at  the  rate  of  1%  on  food  for human
 3    consumption that is to be consumed off the premises where  it
 4    is  sold  (other  than  alcoholic beverages, soft drinks, and
 5    food that has been prepared for immediate consumption and  is
 6    not  otherwise  included  in this paragraph) and prescription
 7    and nonprescription  medicines,  drugs,  medical  appliances,
 8    modifications to a motor vehicle for the purpose of rendering
 9    it  usable  by  a disabled person, and insulin, urine testing
10    materials, syringes, and needles used by diabetics, for human
11    use.  For the  purposes  of  this  Section,  the  term  "soft
12    drinks"   means   any   complete,   finished,   ready-to-use,
13    non-alcoholic drink, whether carbonated or not, including but
14    not  limited  to  soda  water,  cola,  fruit juice, vegetable
15    juice, carbonated water, and all other preparations  commonly
16    known as soft drinks of whatever kind or description that are
17    contained  in any closed or sealed can, carton, or container,
18    regardless of size.  "Soft drinks" does not  include  coffee,
19    tea,  non-carbonated  water,  infant  formula,  milk  or milk
20    products as defined in the Grade A Pasteurized Milk and  Milk
21    Products  Act, or drinks containing 50% or more natural fruit
22    or vegetable juice.
23        Notwithstanding any other provisions of this  Act,  "food
24    for human consumption that is to be consumed off the premises
25    where  it  is  sold" includes all food sold through a vending
26    machine, except  soft  drinks  and  food  products  that  are
27    dispensed  hot  from  a  vending  machine,  regardless of the
28    location of the vending machine.
29    (Source: P.A. 89-359,  eff.  8-17-95;  89-420,  eff.  6-1-96;
30    89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
31        Section 20.  The Retailers' Occupation Tax Act is amended
32    by changing Section 2-10 as follows:
                            -8-              LRB9011546KDksam
 1        (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
 2        Sec.  2-10.  Rate  of  tax.  Unless otherwise provided in
 3    this Section, the tax imposed by this Act is at the  rate  of
 4    6.25%  of  gross  receipts  from  sales  of tangible personal
 5    property made in the course of business.
 6        With respect to gasohol, as defined in the Use  Tax  Act,
 7    the tax imposed by this Act applies to 70% of the proceeds of
 8    sales  made  on  or after January 1, 1990, and before July 1,
 9    2003 1999,  and  to  100%  of  the  proceeds  of  sales  made
10    thereafter,  except  that  from July 1, 1997 to July 1, 1999,
11    the rate shall be 85% for gasohol sold in this  State  during
12    the  12  months  beginning July 1 following any calendar year
13    for which the Department has determined that the  percentages
14    in Section 10 of the Gasohol Fuels Tax Abatement Act have not
15    been met.
16        With  respect to food for human consumption that is to be
17    consumed off the  premises  where  it  is  sold  (other  than
18    alcoholic  beverages,  soft  drinks,  and  food that has been
19    prepared for  immediate  consumption)  and  prescription  and
20    nonprescription   medicines,   drugs,   medical   appliances,
21    modifications to a motor vehicle for the purpose of rendering
22    it  usable  by  a disabled person, and insulin, urine testing
23    materials, syringes, and needles used by diabetics, for human
24    use, the tax is imposed at the rate of 1%. For  the  purposes
25    of  this  Section, the term "soft drinks" means any complete,
26    finished,   ready-to-use,   non-alcoholic   drink,    whether
27    carbonated  or  not, including but not limited to soda water,
28    cola, fruit juice, vegetable juice, carbonated water, and all
29    other preparations commonly known as soft drinks of  whatever
30    kind  or  description  that  are  contained  in any closed or
31    sealed bottle, can, carton, or container, regardless of size.
32    "Soft drinks" does not include  coffee,  tea,  non-carbonated
33    water,  infant  formula,  milk or milk products as defined in
34    the Grade A Pasteurized Milk and Milk Products Act, or drinks
                            -9-              LRB9011546KDksam
 1    containing 50% or more natural fruit or vegetable juice.
 2        Notwithstanding any other provisions of this  Act,  "food
 3    for human consumption that is to be consumed off the premises
 4    where  it  is  sold" includes all food sold through a vending
 5    machine, except  soft  drinks  and  food  products  that  are
 6    dispensed  hot  from  a  vending  machine,  regardless of the
 7    location of the vending machine.
 8    (Source: P.A. 89-359,  eff.  8-17-95;  89-420,  eff.  6-1-96;
 9    89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
10        (35 ILCS 125/Act rep.)
11        Section  25.  The  Gasohol  Fuels  Tax  Abatement  Act is
12    repealed.
13        Section 99.  Effective date.  This Act takes effect  upon
14    becoming law.".

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