Public Act 90-0606 of the 90th General Assembly
Public Act 90-0606
SB1455 Enrolled LRB9011546KDpcA
AN ACT in relation to gasohol, amending named Acts.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Use Tax Act is amended by changing
Section 3-10 as follows:
(35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
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 either the selling price or the fair market value,
if any, of the tangible personal property. In all cases
where property functionally used or consumed is the same as
the property that was purchased at retail, then the tax is
imposed on the selling price of the property. In all cases
where property functionally used or consumed is a by-product
or waste product that has been refined, manufactured, or
produced from property purchased at retail, then the tax is
imposed on the lower of the fair market value, if any, of the
specific property so used in this State or on the selling
price of the property purchased at retail. For purposes of
this Section "fair market value" means the price at which
property would change hands between a willing buyer and a
willing seller, neither being under any compulsion to buy or
sell and both having reasonable knowledge of the relevant
facts. The fair market value shall be established by Illinois
sales by the taxpayer of the same property as that
functionally used or consumed, or if there are no such sales
by the taxpayer, then comparable sales or purchases of
property of like kind and character in Illinois.
With respect to gasohol, the tax imposed by this Act
applies to 70% of the proceeds of sales made on or after
January 1, 1990, and before July 1, 2003 1999, and to 100% of
the proceeds of sales made thereafter, except that from July
1, 1997 to July 1, 1999, the rate shall be 85% for gasohol
sold in this State during the 12 months beginning July 1
following any calendar year for which the Department has
determined that the percentages in Section 10 of the Gasohol
Fuels Tax Abatement Act have not been met.
With respect to 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 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, the tax is imposed at the rate of 1%. For the purposes
of this Section, 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 bottle, can, carton, or container, regardless of size.
"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, "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.
If the property that is purchased at retail from a
retailer is acquired outside Illinois and used outside
Illinois before being brought to Illinois for use here and is
taxable under this Act, the "selling price" on which the tax
is computed shall be reduced by an amount that represents a
reasonable allowance for depreciation for the period of prior
out-of-state use.
(Source: P.A. 88-45; 89-359, eff. 8-17-95; 89-420, eff.
6-1-96; 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
Section 10. The Service Use Tax Act is amended by
changing Section 3-10 as follows:
(35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
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 of tangible personal property
transferred as an incident to the sale of service, but, for
the purpose of computing this tax, in no event shall the
selling price be less than the cost price of the property to
the serviceman.
With respect to gasohol, as defined in the Use Tax Act,
the tax imposed by this Act applies to 70% of the selling
price of property transferred as an incident to the sale of
service on or after January 1, 1990, and before July 1, 2003
1999, and to 100% of the selling price thereafter, except
that from July 1, 1997 to July 1, 1999, the rate shall be 85%
for gasohol sold in this State during the 12 months beginning
July 1 following any calendar year for which the Department
has determined that the percentages in Section 10 of the
Gasohol Fuels Tax Abatement Act have not been met.
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 as an 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 or the Nursing Home Care Act. 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, 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 bottle, can, carton, or container,
regardless of size. "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, "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.
If the property that is acquired from a serviceman is
acquired outside Illinois and used outside Illinois before
being brought to Illinois for use here and is taxable under
this Act, the "selling price" on which the tax is computed
shall be reduced by an amount that represents a reasonable
allowance for depreciation for the period of prior
out-of-state use.
(Source: P.A. 88-45; 89-359, eff. 8-17-95; 89-420, eff.
6-1-96; 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
Section 15. The Service Occupation Tax Act is amended by
changing Section 3-10 as follows:
(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.
With respect to gasohol, as defined in the Use Tax Act,
the tax imposed by this Act shall apply to 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
1999, and to 100% of the cost price thereafter, except that
from July 1, 1997 to July 1, 1999, the rate shall be 85% for
gasohol sold in this State during the 12 months beginning
July 1 following any calendar year for which the Department
has determined that the percentages in Section 10 of the
Gasohol Fuels Tax Abatement Act have not been met.
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 or the Nursing Home Care Act. 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, 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. "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, "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.
(Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
Section 20. The Retailers' Occupation Tax Act is amended
by changing Section 2-10 as follows:
(35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
Sec. 2-10. Rate of tax. Unless otherwise provided in
this Section, the tax imposed by this Act is at the rate of
6.25% of gross receipts from sales of tangible personal
property made in the course of business.
With respect to gasohol, as defined in the Use Tax Act,
the tax imposed by this Act applies to 70% of the proceeds of
sales made on or after January 1, 1990, and before July 1,
2003 1999, and to 100% of the proceeds of sales made
thereafter, except that from July 1, 1997 to July 1, 1999,
the rate shall be 85% for gasohol sold in this State during
the 12 months beginning July 1 following any calendar year
for which the Department has determined that the percentages
in Section 10 of the Gasohol Fuels Tax Abatement Act have not
been met.
With respect to 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 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, the tax is imposed at the rate of 1%. For the purposes
of this Section, 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 bottle, can, carton, or container, regardless of size.
"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, "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.
(Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
(35 ILCS 125/Act rep.)
Section 25. The Gasohol Fuels Tax Abatement Act is
repealed.
Section 99. Effective date. This Act takes effect upon
becoming law.