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91_HB2849
LRB9103413PTpk
1 AN ACT to amend the Use Tax Act by changing Section 3-10.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
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. Rates Rate of tax. Unless otherwise provided
8 in this Section, the tax imposed by this Act is at the rate
9 of 6.25% of either the selling price or the fair market
10 value, if any, of the tangible personal property. In all
11 cases where property functionally used or consumed is the
12 same as the property that was purchased at retail, then the
13 tax is imposed on the selling price of the property. In all
14 cases where property functionally used or consumed is a
15 by-product or waste product that has been refined,
16 manufactured, or produced from property purchased at retail,
17 then the tax is imposed on the lower of the fair market
18 value, if any, of the specific property so used in this State
19 or on the selling price of the property purchased at retail.
20 For purposes of this Section "fair market value" means the
21 price at which property would change hands between a willing
22 buyer and a willing seller, neither being under any
23 compulsion to buy or sell and both having reasonable
24 knowledge of the relevant facts. The fair market value shall
25 be established by Illinois sales by the taxpayer of the same
26 property as that functionally used or consumed, or if there
27 are no such sales by the taxpayer, then comparable sales or
28 purchases of property of like kind and character in Illinois.
29 With respect to gasohol, the tax imposed by this Act
30 applies to 70% of the proceeds of sales made on or after
31 January 1, 1990, and before July 1, 2003, and to 100% of the
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1 proceeds of sales made thereafter.
2 With respect to food for human consumption that is to be
3 consumed off the premises where it is sold (other than
4 alcoholic beverages, soft drinks, and food that has been
5 prepared for immediate consumption) and prescription and
6 nonprescription medicines, drugs, medical appliances,
7 modifications to a motor vehicle for the purpose of rendering
8 it usable by a disabled person, and insulin, urine testing
9 materials, syringes, and needles used by diabetics, for human
10 use, the tax is imposed at the rate of 1%. For the purposes
11 of this Section, the term "soft drinks" means any complete,
12 finished, ready-to-use, non-alcoholic drink, whether
13 carbonated or not, including but not limited to soda water,
14 cola, fruit juice, vegetable juice, carbonated water, and all
15 other preparations commonly known as soft drinks of whatever
16 kind or description that are contained in any closed or
17 sealed bottle, can, carton, or container, regardless of size.
18 "Soft drinks" does not include coffee, tea, non-carbonated
19 water, infant formula, milk or milk products as defined in
20 the Grade A Pasteurized Milk and Milk Products Act, or drinks
21 containing 50% or more natural fruit or vegetable juice.
22 Notwithstanding any other provisions of this Act, "food
23 for human consumption that is to be consumed off the premises
24 where it is sold" includes all food sold through a vending
25 machine, except soft drinks and food products that are
26 dispensed hot from a vending machine, regardless of the
27 location of the vending machine.
28 If the property that is purchased at retail from a
29 retailer is acquired outside Illinois and used outside
30 Illinois before being brought to Illinois for use here and is
31 taxable under this Act, the "selling price" on which the tax
32 is computed shall be reduced by an amount that represents a
33 reasonable allowance for depreciation for the period of prior
34 out-of-state use.
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1 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
2 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
3 6-30-98; 90-606, eff. 6-30-98.)