100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5694

 

Introduced , by Rep. Jerry Costello, II

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-10
35 ILCS 105/3-40  from Ch. 120, par. 439.3-40
35 ILCS 105/3-44
35 ILCS 105/3-44.3 new
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, on or after July 1, 2018 and on or before December 31, 2019, the taxes imposed under the Acts apply to 80% of the proceeds of sales of mid-range ethanol blends. Defines mid-range ethanol blend. Effective immediately.


LRB100 17333 HLH 32497 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5694LRB100 17333 HLH 32497 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 Use Tax Act is amended by changing Sections
53-10, 3-40, and 3-44 and by adding Section 3-44.3 as follows:
 
6    (35 ILCS 105/3-10)
7    Sec. 3-10. Rate of tax. Unless otherwise provided in this
8Section, the tax imposed by this Act is at the rate of 6.25% of
9either the selling price or the fair market value, if any, of
10the tangible personal property. In all cases where property
11functionally used or consumed is the same as the property that
12was purchased at retail, then the tax is imposed on the selling
13price of the property. In all cases where property functionally
14used or consumed is a by-product or waste product that has been
15refined, manufactured, or produced from property purchased at
16retail, then the tax is imposed on the lower of the fair market
17value, if any, of the specific property so used in this State
18or on the selling price of the property purchased at retail.
19For purposes of this Section "fair market value" means the
20price at which property would change hands between a willing
21buyer and a willing seller, neither being under any compulsion
22to buy or sell and both having reasonable knowledge of the
23relevant facts. The fair market value shall be established by

 

 

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1Illinois sales by the taxpayer of the same property as that
2functionally used or consumed, or if there are no such sales by
3the taxpayer, then comparable sales or purchases of property of
4like kind and character in Illinois.
5    Beginning on July 1, 2000 and through December 31, 2000,
6with respect to motor fuel, as defined in Section 1.1 of the
7Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
8the Use Tax Act, the tax is imposed at the rate of 1.25%.
9    Beginning on August 6, 2010 through August 15, 2010, with
10respect to sales tax holiday items as defined in Section 3-6 of
11this Act, the tax is imposed at the rate of 1.25%.
12    With respect to gasohol, the tax imposed by this Act
13applies to (i) 70% of the proceeds of sales made on or after
14January 1, 1990, and before July 1, 2003, (ii) 80% of the
15proceeds of sales made on or after July 1, 2003 and on or
16before July 1, 2017, and (iii) 100% of the proceeds of sales
17made thereafter. If, at any time, however, the tax under this
18Act on sales of gasohol is imposed at the rate of 1.25%, then
19the tax imposed by this Act applies to 100% of the proceeds of
20sales of gasohol made during that time.
21    With respect to mid-range ethanol blends, the tax imposed
22by this Act applies to (i) 80% of the proceeds of sales made on
23or after July 1, 2018 and on or before December 31, 2019 and
24(ii) 100% of the proceeds of sales made thereafter. If, at any
25time, however, the tax under this Act on sales of mid-range
26ethanol blends is imposed at the rate of 1.25%, then the tax

 

 

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1imposed by this Act applies to 100% of the proceeds of sales of
2mid-range ethanol blends made during that time.
3    With respect to majority blended ethanol fuel, the tax
4imposed by this Act does not apply to the proceeds of sales
5made on or after July 1, 2003 and on or before December 31,
62023 but applies to 100% of the proceeds of sales made
7thereafter.
8    With respect to biodiesel blends with no less than 1% and
9no more than 10% biodiesel, the tax imposed by this Act applies
10to (i) 80% of the proceeds of sales made on or after July 1,
112003 and on or before December 31, 2018 and (ii) 100% of the
12proceeds of sales made thereafter. If, at any time, however,
13the tax under this Act on sales of biodiesel blends with no
14less than 1% and no more than 10% biodiesel is imposed at the
15rate of 1.25%, then the tax imposed by this Act applies to 100%
16of the proceeds of sales of biodiesel blends with no less than
171% and no more than 10% biodiesel made during that time.
18    With respect to 100% biodiesel and biodiesel blends with
19more than 10% but no more than 99% biodiesel, the tax imposed
20by this Act does not apply to the proceeds of sales made on or
21after July 1, 2003 and on or before December 31, 2023 but
22applies to 100% of the proceeds of sales made thereafter.
23    With respect to food for human consumption that is to be
24consumed off the premises where it is sold (other than
25alcoholic beverages, soft drinks, and food that has been
26prepared for immediate consumption) and prescription and

 

 

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1nonprescription medicines, drugs, medical appliances, products
2classified as Class III medical devices by the United States
3Food and Drug Administration that are used for cancer treatment
4pursuant to a prescription, as well as any accessories and
5components related to those devices, modifications to a motor
6vehicle for the purpose of rendering it usable by a person with
7a disability, and insulin, urine testing materials, syringes,
8and needles used by diabetics, for human use, the tax is
9imposed at the rate of 1%. For the purposes of this Section,
10until September 1, 2009: the term "soft drinks" means any
11complete, finished, ready-to-use, non-alcoholic drink, whether
12carbonated or not, including but not limited to soda water,
13cola, fruit juice, vegetable juice, carbonated water, and all
14other preparations commonly known as soft drinks of whatever
15kind or description that are contained in any closed or sealed
16bottle, can, carton, or container, regardless of size; but
17"soft drinks" does not include coffee, tea, non-carbonated
18water, infant formula, milk or milk products as defined in the
19Grade A Pasteurized Milk and Milk Products Act, or drinks
20containing 50% or more natural fruit or vegetable juice.
21    Notwithstanding any other provisions of this Act,
22beginning September 1, 2009, "soft drinks" means non-alcoholic
23beverages that contain natural or artificial sweeteners. "Soft
24drinks" do not include beverages that contain milk or milk
25products, soy, rice or similar milk substitutes, or greater
26than 50% of vegetable or fruit juice by volume.

 

 

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1    Until August 1, 2009, and notwithstanding any other
2provisions of this Act, "food for human consumption that is to
3be consumed off the premises where it is sold" includes all
4food sold through a vending machine, except soft drinks and
5food products that are dispensed hot from a vending machine,
6regardless of the location of the vending machine. Beginning
7August 1, 2009, and notwithstanding any other provisions of
8this Act, "food for human consumption that is to be consumed
9off the premises where it is sold" includes all food sold
10through a vending machine, except soft drinks, candy, and food
11products that are dispensed hot from a vending machine,
12regardless of the location of the vending machine.
13    Notwithstanding any other provisions of this Act,
14beginning September 1, 2009, "food for human consumption that
15is to be consumed off the premises where it is sold" does not
16include candy. For purposes of this Section, "candy" means a
17preparation of sugar, honey, or other natural or artificial
18sweeteners in combination with chocolate, fruits, nuts or other
19ingredients or flavorings in the form of bars, drops, or
20pieces. "Candy" does not include any preparation that contains
21flour or requires refrigeration.
22    Notwithstanding any other provisions of this Act,
23beginning September 1, 2009, "nonprescription medicines and
24drugs" does not include grooming and hygiene products. For
25purposes of this Section, "grooming and hygiene products"
26includes, but is not limited to, soaps and cleaning solutions,

 

 

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1shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
2lotions and screens, unless those products are available by
3prescription only, regardless of whether the products meet the
4definition of "over-the-counter-drugs". For the purposes of
5this paragraph, "over-the-counter-drug" means a drug for human
6use that contains a label that identifies the product as a drug
7as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
8label includes:
9        (A) A "Drug Facts" panel; or
10        (B) A statement of the "active ingredient(s)" with a
11    list of those ingredients contained in the compound,
12    substance or preparation.
13    Beginning on the effective date of this amendatory Act of
14the 98th General Assembly, "prescription and nonprescription
15medicines and drugs" includes medical cannabis purchased from a
16registered dispensing organization under the Compassionate Use
17of Medical Cannabis Pilot Program Act.
18    If the property that is purchased at retail from a retailer
19is acquired outside Illinois and used outside Illinois before
20being brought to Illinois for use here and is taxable under
21this Act, the "selling price" on which the tax is computed
22shall be reduced by an amount that represents a reasonable
23allowance for depreciation for the period of prior out-of-state
24use.
25(Source: P.A. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16;
26100-22, eff. 7-6-17.)
 

 

 

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1    (35 ILCS 105/3-40)  (from Ch. 120, par. 439.3-40)
2    Sec. 3-40. Gasohol. As used in this Act, "gasohol" means
3motor fuel that is a denatured ethanol and gasoline blend of
4denatured ethanol and gasoline that contains (i) no more than
51.25% water by weight and (ii) the maximum proportion of
6ethanol authorized by the United States Environmental
7Protection Agency under Section 211 of the Clean Air Act. The
8blend must contain 90% gasoline and 10% denatured ethanol. A
9maximum of one percent error factor in the amount of denatured
10ethanol used in the blend is allowable to compensate for
11blending equipment variations. Any person who knowingly sells
12or represents as gasohol any fuel that does not qualify as
13gasohol under this Act is guilty of a business offense and
14shall be fined not more than $100 for each day that the sale or
15representation takes place after notification from the
16Department of Agriculture that the fuel in question does not
17qualify as gasohol.
18(Source: P.A. 93-724, eff. 7-13-04.)
 
19    (35 ILCS 105/3-44)
20    Sec. 3-44. Majority blended ethanol fuel. "Majority
21blended ethanol fuel" means motor fuel that (i) contains not
22less than 51% and no more than 83% by volume ethanol, as
23specified in ASTM Standard DS798-11 and (ii) is capable of
24being used in the operation of flexible fuel vehicles. 70% and

 

 

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1no more than 90% denatured ethanol and no less than 10% and no
2more than 30% gasoline.
3(Source: P.A. 93-17, eff. 6-11-03.)
 
4    (35 ILCS 105/3-44.3 new)
5    Sec. 3-44.3. Mid-range ethanol blend. "Mid-range ethanol
6blend" means a blend of gasoline and denatured ethanol that
7contains not less than 20% but less than 51% denatured ethanol.
 
8    Section 10. The Service Use Tax Act is amended by changing
9Section 3-10 as follows:
 
10    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
11    Sec. 3-10. Rate of tax. Unless otherwise provided in this
12Section, the tax imposed by this Act is at the rate of 6.25% of
13the selling price of tangible personal property transferred as
14an incident to the sale of service, but, for the purpose of
15computing this tax, in no event shall the selling price be less
16than the cost price of the property to the serviceman.
17    Beginning on July 1, 2000 and through December 31, 2000,
18with respect to motor fuel, as defined in Section 1.1 of the
19Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
20the Use Tax Act, the tax is imposed at the rate of 1.25%.
21    With respect to gasohol, as defined in the Use Tax Act, the
22tax imposed by this Act applies to (i) 70% of the selling price
23of property transferred as an incident to the sale of service

 

 

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1on or after January 1, 1990, and before July 1, 2003, (ii) 80%
2of the selling price of property transferred as an incident to
3the sale of service on or after July 1, 2003 and on or before
4July 1, 2017, and (iii) 100% of the selling price thereafter.
5If, at any time, however, the tax under this Act on sales of
6gasohol, as defined in the Use Tax Act, is imposed at the rate
7of 1.25%, then the tax imposed by this Act applies to 100% of
8the proceeds of sales of gasohol made during that time.
9    With respect to mid-range ethanol blends, as defined in the
10Use Tax Act, the tax imposed by this Act applies to (i) 80% of
11the selling price of property transferred as an incident to the
12sale of service on or after July 1, 2018 and on or before
13December 31, 2019 and (ii) 100% of the selling price
14thereafter. If, at any time, however, the tax under this Act on
15sales of mid-range ethanol blends is imposed at the rate of
161.25%, then the tax imposed by this Act applies to 100% of the
17proceeds of sales of mid-range ethanol blends made during that
18time.
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, 2023 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

 

 

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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, 2018 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, 2023 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

 

 

HB5694- 11 -LRB100 17333 HLH 32497 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 ID/DD Community Care Act, the MC/DD
7Act, the Specialized Mental Health Rehabilitation Act of 2013,
8or the Child Care Act of 1969. The tax shall also be imposed at
9the rate of 1% on food for human consumption that is to be
10consumed off the premises where it is sold (other than
11alcoholic beverages, soft drinks, and food that has been
12prepared for immediate consumption and is not otherwise
13included in this paragraph) and prescription and
14nonprescription medicines, drugs, medical appliances, products
15classified as Class III medical devices by the United States
16Food and Drug Administration that are used for cancer treatment
17pursuant to a prescription, as well as any accessories and
18components related to those devices, modifications to a motor
19vehicle for the purpose of rendering it usable by a person with
20a disability, and insulin, urine testing materials, syringes,
21and needles used by diabetics, for human use. For the purposes
22of this Section, until September 1, 2009: the term "soft
23drinks" means any complete, finished, ready-to-use,
24non-alcoholic drink, whether carbonated or not, including but
25not limited to soda water, cola, fruit juice, vegetable juice,
26carbonated water, and all other preparations commonly known as

 

 

HB5694- 12 -LRB100 17333 HLH 32497 b

1soft drinks of whatever kind or description that are contained
2in any closed or sealed bottle, can, carton, or container,
3regardless of size; but "soft drinks" does not include coffee,
4tea, non-carbonated water, infant formula, milk or milk
5products as defined in the Grade A Pasteurized Milk and Milk
6Products Act, or drinks containing 50% or more natural fruit or
7vegetable juice.
8    Notwithstanding any other provisions of this Act,
9beginning September 1, 2009, "soft drinks" means non-alcoholic
10beverages that contain natural or artificial sweeteners. "Soft
11drinks" do not include beverages that contain milk or milk
12products, soy, rice or similar milk substitutes, or greater
13than 50% of vegetable or fruit juice by volume.
14    Until August 1, 2009, and notwithstanding any other
15provisions of this Act, "food for human consumption that is to
16be consumed off the premises where it is sold" includes all
17food sold through a vending machine, except soft drinks and
18food products that are dispensed hot from a vending machine,
19regardless of the location of the vending machine. Beginning
20August 1, 2009, and notwithstanding any other provisions of
21this Act, "food for human consumption that is to be consumed
22off the premises where it is sold" includes all food sold
23through a vending machine, except soft drinks, candy, and food
24products that are dispensed hot from a vending machine,
25regardless of the location of the vending machine.
26    Notwithstanding any other provisions of this Act,

 

 

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1beginning September 1, 2009, "food for human consumption that
2is to be consumed off the premises where it is sold" does not
3include candy. For purposes of this Section, "candy" means a
4preparation of sugar, honey, or other natural or artificial
5sweeteners in combination with chocolate, fruits, nuts or other
6ingredients or flavorings in the form of bars, drops, or
7pieces. "Candy" does not include any preparation that contains
8flour or requires refrigeration.
9    Notwithstanding any other provisions of this Act,
10beginning September 1, 2009, "nonprescription medicines and
11drugs" does not include grooming and hygiene products. For
12purposes of this Section, "grooming and hygiene products"
13includes, but is not limited to, soaps and cleaning solutions,
14shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
15lotions and screens, unless those products are available by
16prescription only, regardless of whether the products meet the
17definition of "over-the-counter-drugs". For the purposes of
18this paragraph, "over-the-counter-drug" means a drug for human
19use that contains a label that identifies the product as a drug
20as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
21label includes:
22        (A) A "Drug Facts" panel; or
23        (B) A statement of the "active ingredient(s)" with a
24    list of those ingredients contained in the compound,
25    substance or preparation.
26    Beginning on January 1, 2014 (the effective date of Public

 

 

HB5694- 14 -LRB100 17333 HLH 32497 b

1Act 98-122), "prescription and nonprescription medicines and
2drugs" includes medical cannabis purchased from a registered
3dispensing organization under the Compassionate Use of Medical
4Cannabis Pilot Program Act.
5    If the property that is acquired from a serviceman is
6acquired outside Illinois and used outside Illinois before
7being brought to Illinois for use here and is taxable under
8this Act, the "selling price" on which the tax is computed
9shall be reduced by an amount that represents a reasonable
10allowance for depreciation for the period of prior out-of-state
11use.
12(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
1399-642, eff. 7-28-16; 99-858, eff. 8-19-16; 100-22, eff.
147-6-17.)
 
15    Section 15. The Service Occupation Tax Act is amended by
16changing Section 3-10 as follows:
 
17    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
18    Sec. 3-10. Rate of tax. Unless otherwise provided in this
19Section, the tax imposed by this Act is at the rate of 6.25% of
20the "selling price", as defined in Section 2 of the Service Use
21Tax Act, of the tangible personal property. For the purpose of
22computing this tax, in no event shall the "selling price" be
23less than the cost price to the serviceman of the tangible
24personal property transferred. The selling price of each item

 

 

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1of tangible personal property transferred as an incident of a
2sale of service may be shown as a distinct and separate item on
3the serviceman's billing to the service customer. If the
4selling price is not so shown, the selling price of the
5tangible personal property is deemed to be 50% of the
6serviceman's entire billing to the service customer. When,
7however, a serviceman contracts to design, develop, and produce
8special order machinery or equipment, the tax imposed by this
9Act shall be based on the serviceman's cost price of the
10tangible personal property transferred incident to the
11completion of the contract.
12    Beginning on July 1, 2000 and through December 31, 2000,
13with respect to motor fuel, as defined in Section 1.1 of the
14Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
15the Use Tax Act, the tax is imposed at the rate of 1.25%.
16    With respect to gasohol, as defined in the Use Tax Act, the
17tax imposed by this Act shall apply to (i) 70% of the cost
18price of property transferred as an incident to the sale of
19service on or after January 1, 1990, and before July 1, 2003,
20(ii) 80% of the selling price of property transferred as an
21incident to the sale of service on or after July 1, 2003 and on
22or before July 1, 2017, and (iii) 100% of the cost price
23thereafter. If, at any time, however, the tax under this Act on
24sales of gasohol, as defined in the Use Tax Act, is imposed at
25the rate of 1.25%, then the tax imposed by this Act applies to
26100% of the proceeds of sales of gasohol made during that time.

 

 

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1    With respect to mid-range ethanol blends, as defined in the
2Use Tax Act, the tax imposed by this Act applies to (i) 80% of
3the selling price of property transferred as an incident to the
4sale of service on or after July 1, 2018 and on or before
5December 31, 2019 and (ii) 100% of the selling price
6thereafter. If, at any time, however, the tax under this Act on
7sales of mid-range ethanol blends is imposed at the rate of
81.25%, then the tax imposed by this Act applies to 100% of the
9proceeds of sales of mid-range ethanol blends made during that
10time.
11    With respect to majority blended ethanol fuel, as defined
12in the Use Tax Act, the tax imposed by this Act does not apply
13to the selling price of property transferred as an incident to
14the sale of service on or after July 1, 2003 and on or before
15December 31, 2023 but applies to 100% of the selling price
16thereafter.
17    With respect to biodiesel blends, as defined in the Use Tax
18Act, with no less than 1% and no more than 10% biodiesel, the
19tax imposed by this Act applies to (i) 80% of the selling price
20of property transferred as an incident to the sale of service
21on or after July 1, 2003 and on or before December 31, 2018 and
22(ii) 100% of the proceeds of the selling price thereafter. If,
23at any time, however, the tax under this Act on sales of
24biodiesel blends, as defined in the Use Tax Act, with no less
25than 1% and no more than 10% biodiesel is imposed at the rate
26of 1.25%, then the tax imposed by this Act applies to 100% of

 

 

HB5694- 17 -LRB100 17333 HLH 32497 b

1the proceeds of sales of biodiesel blends with no less than 1%
2and no more than 10% biodiesel made during that time.
3    With respect to 100% biodiesel, as defined in the Use Tax
4Act, and biodiesel blends, as defined in the Use Tax Act, with
5more than 10% but no more than 99% biodiesel material, the tax
6imposed by this Act does not apply to the proceeds of the
7selling price of property transferred as an incident to the
8sale of service on or after July 1, 2003 and on or before
9December 31, 2023 but applies to 100% of the selling price
10thereafter.
11    At the election of any registered serviceman made for each
12fiscal year, sales of service in which the aggregate annual
13cost price of tangible personal property transferred as an
14incident to the sales of service is less than 35%, or 75% in
15the case of servicemen transferring prescription drugs or
16servicemen engaged in graphic arts production, of the aggregate
17annual total gross receipts from all sales of service, the tax
18imposed by this Act shall be based on the serviceman's cost
19price of the tangible personal property transferred incident to
20the sale of those services.
21    The tax shall be imposed at the rate of 1% on food prepared
22for immediate consumption and transferred incident to a sale of
23service subject to this Act or the Service Occupation Tax Act
24by an entity licensed under the Hospital Licensing Act, the
25Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
26Act, the Specialized Mental Health Rehabilitation Act of 2013,

 

 

HB5694- 18 -LRB100 17333 HLH 32497 b

1or the Child Care Act of 1969. The tax shall also be imposed at
2the rate of 1% on food for human consumption that is to be
3consumed off the premises where it is sold (other than
4alcoholic beverages, soft drinks, and food that has been
5prepared for immediate consumption and is not otherwise
6included in this paragraph) and prescription and
7nonprescription medicines, drugs, medical appliances, products
8classified as Class III medical devices by the United States
9Food and Drug Administration that are used for cancer treatment
10pursuant to a prescription, as well as any accessories and
11components related to those devices, modifications to a motor
12vehicle for the purpose of rendering it usable by a person with
13a disability, and insulin, urine testing materials, syringes,
14and needles used by diabetics, for human use. For the purposes
15of this Section, until September 1, 2009: the term "soft
16drinks" means any complete, finished, ready-to-use,
17non-alcoholic drink, whether carbonated or not, including but
18not limited to soda water, cola, fruit juice, vegetable juice,
19carbonated water, and all other preparations commonly known as
20soft drinks of whatever kind or description that are contained
21in any closed or sealed 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.

 

 

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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

 

 

HB5694- 20 -LRB100 17333 HLH 32497 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    Beginning on January 1, 2014 (the effective date of Public
20Act 98-122), "prescription and nonprescription medicines and
21drugs" includes medical cannabis purchased from a registered
22dispensing organization under the Compassionate Use of Medical
23Cannabis Pilot Program Act.
24(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
2599-642, eff. 7-28-16; 99-858, eff. 8-19-16; 100-22, eff.
267-6-17.)
 

 

 

HB5694- 21 -LRB100 17333 HLH 32497 b

1    Section 20. The Retailers' Occupation Tax Act is amended by
2changing Section 2-10 as follows:
 
3    (35 ILCS 120/2-10)
4    Sec. 2-10. Rate of tax. Unless otherwise provided in this
5Section, the tax imposed by this Act is at the rate of 6.25% of
6gross receipts from sales of tangible personal property made in
7the course of business.
8    Beginning on July 1, 2000 and through December 31, 2000,
9with respect to motor fuel, as defined in Section 1.1 of the
10Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
11the Use Tax Act, the tax is imposed at the rate of 1.25%.
12    Beginning on August 6, 2010 through August 15, 2010, with
13respect to sales tax holiday items as defined in Section 2-8 of
14this Act, the tax is imposed at the rate of 1.25%.
15    Within 14 days after the effective date of this amendatory
16Act of the 91st General Assembly, each retailer of motor fuel
17and gasohol shall cause the following notice to be posted in a
18prominently visible place on each retail dispensing device that
19is used to dispense motor fuel or gasohol in the State of
20Illinois: "As of July 1, 2000, the State of Illinois has
21eliminated the State's share of sales tax on motor fuel and
22gasohol through December 31, 2000. The price on this pump
23should reflect the elimination of the tax." The notice shall be
24printed in bold print on a sign that is no smaller than 4

 

 

HB5694- 22 -LRB100 17333 HLH 32497 b

1inches by 8 inches. The sign shall be clearly visible to
2customers. Any retailer who fails to post or maintain a
3required sign through December 31, 2000 is guilty of a petty
4offense for which the fine shall be $500 per day per each
5retail premises where a violation occurs.
6    With respect to gasohol, as defined in the Use Tax Act, the
7tax imposed by this Act applies to (i) 70% of the proceeds of
8sales made on or after January 1, 1990, and before July 1,
92003, (ii) 80% of the proceeds of sales made on or after July
101, 2003 and on or before July 1, 2017, and (iii) 100% of the
11proceeds of sales made thereafter. If, at any time, however,
12the tax under this Act on sales of gasohol, as defined in the
13Use Tax Act, is imposed at the rate of 1.25%, then the tax
14imposed by this Act applies to 100% of the proceeds of sales of
15gasohol made during that time.
16    With respect to mid-range ethanol blends, as defined in the
17Use Tax Act, the tax imposed by this Act applies to (i) 80% of
18the proceeds of sales made on or after July 1, 2018 and on or
19before December 31, 2019 and (ii) 100% of the proceeds of sales
20made thereafter. If, at any time, however, the tax under this
21Act on sales of mid-range ethanol blends is imposed at the rate
22of 1.25%, then the tax imposed by this Act applies to 100% of
23the proceeds of sales of mid-range ethanol blends made during
24that time.
25    With respect to majority blended ethanol fuel, as defined
26in the Use Tax Act, the tax imposed by this Act does not apply

 

 

HB5694- 23 -LRB100 17333 HLH 32497 b

1to the proceeds of sales made on or after July 1, 2003 and on or
2before December 31, 2023 but applies to 100% of the proceeds of
3sales made thereafter.
4    With respect to biodiesel blends, as defined in the Use Tax
5Act, with no less than 1% and no more than 10% biodiesel, the
6tax imposed by this Act applies to (i) 80% of the proceeds of
7sales made on or after July 1, 2003 and on or before December
831, 2018 and (ii) 100% of the proceeds of sales made
9thereafter. If, at any time, however, the tax under this Act on
10sales of biodiesel blends, as defined in the Use Tax Act, with
11no less than 1% and no more than 10% biodiesel is imposed at
12the rate of 1.25%, then the tax imposed by this Act applies to
13100% of the proceeds of sales of biodiesel blends with no less
14than 1% and no more than 10% biodiesel made during that time.
15    With respect to 100% biodiesel, as defined in the Use Tax
16Act, and biodiesel blends, as defined in the Use Tax Act, with
17more than 10% but no more than 99% biodiesel, the tax imposed
18by this Act does not apply to the proceeds of sales made on or
19after July 1, 2003 and on or before December 31, 2023 but
20applies to 100% of the proceeds of sales made thereafter.
21    With respect to food for human consumption that is to be
22consumed off the premises where it is sold (other than
23alcoholic beverages, soft drinks, and food that has been
24prepared for immediate consumption) and prescription and
25nonprescription medicines, drugs, medical appliances, products
26classified as Class III medical devices by the United States

 

 

HB5694- 24 -LRB100 17333 HLH 32497 b

1Food and Drug Administration that are used for cancer treatment
2pursuant to a prescription, as well as any accessories and
3components related to those devices, modifications to a motor
4vehicle for the purpose of rendering it usable by a person with
5a disability, and insulin, urine testing materials, syringes,
6and needles used by diabetics, for human use, the tax is
7imposed at the rate of 1%. For the purposes of this Section,
8until September 1, 2009: the term "soft drinks" means any
9complete, finished, ready-to-use, non-alcoholic drink, whether
10carbonated or not, including but not limited to soda water,
11cola, fruit juice, vegetable juice, carbonated water, and all
12other preparations commonly known as soft drinks of whatever
13kind or description that are contained in any closed or sealed
14bottle, can, carton, or container, regardless of size; but
15"soft drinks" does not include coffee, tea, non-carbonated
16water, infant formula, milk or milk products as defined in the
17Grade A Pasteurized Milk and Milk Products Act, or drinks
18containing 50% or more natural fruit or vegetable juice.
19    Notwithstanding any other provisions of this Act,
20beginning September 1, 2009, "soft drinks" means non-alcoholic
21beverages that contain natural or artificial sweeteners. "Soft
22drinks" do not include beverages that contain milk or milk
23products, soy, rice or similar milk substitutes, or greater
24than 50% of vegetable or fruit juice by volume.
25    Until August 1, 2009, and notwithstanding any other
26provisions of this Act, "food for human consumption that is to

 

 

HB5694- 25 -LRB100 17333 HLH 32497 b

1be consumed off the premises where it is sold" includes all
2food sold through a vending machine, except soft drinks and
3food products that are dispensed hot from a vending machine,
4regardless of the location of the vending machine. Beginning
5August 1, 2009, and notwithstanding any other provisions of
6this Act, "food for human consumption that is to be consumed
7off the premises where it is sold" includes all food sold
8through a vending machine, except soft drinks, candy, and food
9products that are dispensed hot from a vending machine,
10regardless of the location of the vending machine.
11    Notwithstanding any other provisions of this Act,
12beginning September 1, 2009, "food for human consumption that
13is to be consumed off the premises where it is sold" does not
14include candy. For purposes of this Section, "candy" means a
15preparation of sugar, honey, or other natural or artificial
16sweeteners in combination with chocolate, fruits, nuts or other
17ingredients or flavorings in the form of bars, drops, or
18pieces. "Candy" does not include any preparation that contains
19flour or requires refrigeration.
20    Notwithstanding any other provisions of this Act,
21beginning September 1, 2009, "nonprescription medicines and
22drugs" does not include grooming and hygiene products. For
23purposes of this Section, "grooming and hygiene products"
24includes, but is not limited to, soaps and cleaning solutions,
25shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
26lotions and screens, unless those products are available by

 

 

HB5694- 26 -LRB100 17333 HLH 32497 b

1prescription only, regardless of whether the products meet the
2definition of "over-the-counter-drugs". For the purposes of
3this paragraph, "over-the-counter-drug" means a drug for human
4use that contains a label that identifies the product as a drug
5as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
6label includes:
7        (A) A "Drug Facts" panel; or
8        (B) A statement of the "active ingredient(s)" with a
9    list of those ingredients contained in the compound,
10    substance or preparation.
11    Beginning on the effective date of this amendatory Act of
12the 98th General Assembly, "prescription and nonprescription
13medicines and drugs" includes medical cannabis purchased from a
14registered dispensing organization under the Compassionate Use
15of Medical Cannabis Pilot Program Act.
16(Source: P.A. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16;
17100-22, eff. 7-6-17.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.