101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4487

 

Introduced 2/4/2020, by Rep. Marcus C. Evans, Jr.

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-10
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 all blood sugar testing materials are subject to the 1% reduced rate of tax (currently, urine testing materials for human use only). Effective immediately.


LRB101 17684 HLH 69110 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4487LRB101 17684 HLH 69110 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 Section
53-10 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 majority blended ethanol fuel, the tax
22imposed by this Act does not apply to the proceeds of sales
23made on or after July 1, 2003 and on or before December 31,
242023 but applies to 100% of the proceeds of sales made
25thereafter.
26    With respect to biodiesel blends with no less than 1% and

 

 

HB4487- 3 -LRB101 17684 HLH 69110 b

1no more than 10% biodiesel, the tax imposed by this Act applies
2to (i) 80% of the proceeds of sales made on or after July 1,
32003 and on or before December 31, 2018 and (ii) 100% of the
4proceeds of sales made thereafter. If, at any time, however,
5the tax under this Act on sales of biodiesel blends with no
6less than 1% and no more than 10% biodiesel is imposed at the
7rate of 1.25%, then the tax imposed by this Act applies to 100%
8of the proceeds of sales of biodiesel blends with no less than
91% and no more than 10% biodiesel made during that time.
10    With respect to 100% biodiesel and biodiesel blends with
11more than 10% but no more than 99% biodiesel, the tax imposed
12by this Act does not apply to the proceeds of sales made on or
13after July 1, 2003 and on or before December 31, 2023 but
14applies to 100% of the proceeds of sales made thereafter.
15    With respect to food for human consumption that is to be
16consumed off the premises where it is sold (other than
17alcoholic beverages, food consisting of or infused with adult
18use cannabis, soft drinks, and food that has been prepared for
19immediate consumption) and prescription and nonprescription
20medicines, drugs, medical appliances, products classified as
21Class III medical devices by the United States Food and Drug
22Administration that are used for cancer treatment pursuant to a
23prescription, as well as any accessories and components related
24to those devices, modifications to a motor vehicle for the
25purpose of rendering it usable by a person with a disability,
26and insulin, blood sugar urine testing materials, syringes, and

 

 

HB4487- 4 -LRB101 17684 HLH 69110 b

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

 

 

HB4487- 5 -LRB101 17684 HLH 69110 b

1this Act, "food for human consumption that is to be consumed
2off the premises where it is sold" includes all food sold
3through a vending machine, except soft drinks, candy, and food
4products that are dispensed hot from a vending machine,
5regardless of the location of the vending machine.
6    Notwithstanding any other provisions of this Act,
7beginning September 1, 2009, "food for human consumption that
8is to be consumed off the premises where it is sold" does not
9include candy. For purposes of this Section, "candy" means a
10preparation of sugar, honey, or other natural or artificial
11sweeteners in combination with chocolate, fruits, nuts or other
12ingredients or flavorings in the form of bars, drops, or
13pieces. "Candy" does not include any preparation that contains
14flour or requires refrigeration.
15    Notwithstanding any other provisions of this Act,
16beginning September 1, 2009, "nonprescription medicines and
17drugs" does not include grooming and hygiene products. For
18purposes of this Section, "grooming and hygiene products"
19includes, but is not limited to, soaps and cleaning solutions,
20shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
21lotions and screens, unless those products are available by
22prescription only, regardless of whether the products meet the
23definition of "over-the-counter-drugs". For the purposes of
24this paragraph, "over-the-counter-drug" means a drug for human
25use that contains a label that identifies the product as a drug
26as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"

 

 

HB4487- 6 -LRB101 17684 HLH 69110 b

1label includes:
2        (A) A "Drug Facts" panel; or
3        (B) A statement of the "active ingredient(s)" with a
4    list of those ingredients contained in the compound,
5    substance or preparation.
6    Beginning on the effective date of this amendatory Act of
7the 98th General Assembly, "prescription and nonprescription
8medicines and drugs" includes medical cannabis purchased from a
9registered dispensing organization under the Compassionate Use
10of Medical Cannabis Program Act.
11    As used in this Section, "adult use cannabis" means
12cannabis subject to tax under the Cannabis Cultivation
13Privilege Tax Law and the Cannabis Purchaser Excise Tax Law and
14does not include cannabis subject to tax under the
15Compassionate Use of Medical Cannabis Program Act.
16    If the property that is purchased at retail from a retailer
17is acquired outside Illinois and used outside Illinois before
18being brought to Illinois for use here and is taxable under
19this Act, the "selling price" on which the tax is computed
20shall be reduced by an amount that represents a reasonable
21allowance for depreciation for the period of prior out-of-state
22use.
23(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
24101-593, eff. 12-4-19.)
 
25    Section 10. The Service Use Tax Act is amended by changing

 

 

HB4487- 7 -LRB101 17684 HLH 69110 b

1Section 3-10 as follows:
 
2    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
3    Sec. 3-10. Rate of tax. Unless otherwise provided in this
4Section, the tax imposed by this Act is at the rate of 6.25% of
5the selling price of tangible personal property transferred as
6an incident to the sale of service, but, for the purpose of
7computing this tax, in no event shall the selling price be less
8than the cost price of the property to the serviceman.
9    Beginning on July 1, 2000 and through December 31, 2000,
10with respect to motor fuel, as defined in Section 1.1 of the
11Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
12the Use Tax Act, the tax is imposed at the rate of 1.25%.
13    With respect to gasohol, as defined in the Use Tax Act, the
14tax imposed by this Act applies to (i) 70% of the selling price
15of property transferred as an incident to the sale of service
16on or after January 1, 1990, and before July 1, 2003, (ii) 80%
17of the selling price of property transferred as an incident to
18the sale of service on or after July 1, 2003 and on or before
19July 1, 2017, and (iii) 100% of the selling price thereafter.
20If, at any time, however, the tax under this Act on sales of
21gasohol, as defined in the Use Tax Act, is imposed at the rate
22of 1.25%, then the tax imposed by this Act applies to 100% of
23the proceeds of sales of gasohol made during that time.
24    With respect to majority blended ethanol fuel, as defined
25in the Use Tax Act, the tax imposed by this Act does not apply

 

 

HB4487- 8 -LRB101 17684 HLH 69110 b

1to the selling price of property transferred as an incident to
2the sale of service on or after July 1, 2003 and on or before
3December 31, 2023 but applies to 100% of the selling price
4thereafter.
5    With respect to biodiesel blends, as defined in the Use Tax
6Act, with no less than 1% and no more than 10% biodiesel, the
7tax imposed by this Act applies to (i) 80% of the selling price
8of property transferred as an incident to the sale of service
9on or after July 1, 2003 and on or before December 31, 2018 and
10(ii) 100% of the proceeds of the selling price thereafter. If,
11at any time, however, the tax under this Act on sales of
12biodiesel blends, as defined in the Use Tax Act, with no less
13than 1% and no more than 10% biodiesel is imposed at the rate
14of 1.25%, then the tax imposed by this Act applies to 100% of
15the proceeds of sales of biodiesel blends with no less than 1%
16and no more than 10% biodiesel made during that time.
17    With respect to 100% biodiesel, as defined in the Use Tax
18Act, and biodiesel blends, as defined in the Use Tax Act, with
19more than 10% but no more than 99% biodiesel, the tax imposed
20by this Act does not apply to the proceeds of the selling price
21of property transferred as an incident to the sale of service
22on or after July 1, 2003 and on or before December 31, 2023 but
23applies to 100% of the selling price thereafter.
24    At the election of any registered serviceman made for each
25fiscal year, sales of service in which the aggregate annual
26cost price of tangible personal property transferred as an

 

 

HB4487- 9 -LRB101 17684 HLH 69110 b

1incident to the sales of service is less than 35%, or 75% in
2the case of servicemen transferring prescription drugs or
3servicemen engaged in graphic arts production, of the aggregate
4annual total gross receipts from all sales of service, the tax
5imposed by this Act shall be based on the serviceman's cost
6price of the tangible personal property transferred as an
7incident to the sale of those services.
8    The tax shall be imposed at the rate of 1% on food prepared
9for immediate consumption and transferred incident to a sale of
10service subject to this Act or the Service Occupation Tax Act
11by an entity licensed under the Hospital Licensing Act, the
12Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
13Act, the Specialized Mental Health Rehabilitation Act of 2013,
14or the Child Care Act of 1969. The tax shall also be imposed at
15the rate of 1% on food for human consumption that is to be
16consumed off the premises where it is sold (other than
17alcoholic beverages, food consisting of or infused with adult
18use cannabis, soft drinks, and food that has been prepared for
19immediate consumption and is not otherwise included in this
20paragraph) and prescription and nonprescription medicines,
21drugs, medical appliances, products classified as Class III
22medical devices by the United States Food and Drug
23Administration that are used for cancer treatment pursuant to a
24prescription, as well as any accessories and components related
25to those devices, modifications to a motor vehicle for the
26purpose of rendering it usable by a person with a disability,

 

 

HB4487- 10 -LRB101 17684 HLH 69110 b

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

 

 

HB4487- 11 -LRB101 17684 HLH 69110 b

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

 

 

HB4487- 12 -LRB101 17684 HLH 69110 b

1as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
2label includes:
3        (A) A "Drug Facts" panel; or
4        (B) A statement of the "active ingredient(s)" with a
5    list of those ingredients contained in the compound,
6    substance or preparation.
7    Beginning on January 1, 2014 (the effective date of Public
8Act 98-122), "prescription and nonprescription medicines and
9drugs" includes medical cannabis purchased from a registered
10dispensing organization under the Compassionate Use of Medical
11Cannabis Program Act.
12    As used in this Section, "adult use cannabis" means
13cannabis subject to tax under the Cannabis Cultivation
14Privilege Tax Law and the Cannabis Purchaser Excise Tax Law and
15does not include cannabis subject to tax under the
16Compassionate Use of Medical Cannabis Program Act.
17    If the property that is acquired from a serviceman is
18acquired outside Illinois and used outside Illinois before
19being brought to Illinois for use here and is taxable under
20this Act, the "selling price" on which the tax is computed
21shall be reduced by an amount that represents a reasonable
22allowance for depreciation for the period of prior out-of-state
23use.
24(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
25101-593, eff. 12-4-19.)
 

 

 

HB4487- 13 -LRB101 17684 HLH 69110 b

1    Section 15. The Service Occupation Tax Act is amended by
2changing Section 3-10 as follows:
 
3    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
4    Sec. 3-10. Rate of tax. Unless otherwise provided in this
5Section, the tax imposed by this Act is at the rate of 6.25% of
6the "selling price", as defined in Section 2 of the Service Use
7Tax Act, of the tangible personal property. For the purpose of
8computing this tax, in no event shall the "selling price" be
9less than the cost price to the serviceman of the tangible
10personal property transferred. The selling price of each item
11of tangible personal property transferred as an incident of a
12sale of service may be shown as a distinct and separate item on
13the serviceman's billing to the service customer. If the
14selling price is not so shown, the selling price of the
15tangible personal property is deemed to be 50% of the
16serviceman's entire billing to the service customer. When,
17however, a serviceman contracts to design, develop, and produce
18special order machinery or equipment, the tax imposed by this
19Act shall be based on the serviceman's cost price of the
20tangible personal property transferred incident to the
21completion of the contract.
22    Beginning on July 1, 2000 and through December 31, 2000,
23with respect to motor fuel, as defined in Section 1.1 of the
24Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
25the Use Tax Act, the tax is imposed at the rate of 1.25%.

 

 

HB4487- 14 -LRB101 17684 HLH 69110 b

1    With respect to gasohol, as defined in the Use Tax Act, the
2tax imposed by this Act shall apply to (i) 70% of the cost
3price of property transferred as an incident to the sale of
4service on or after January 1, 1990, and before July 1, 2003,
5(ii) 80% of the selling price of property transferred as an
6incident to the sale of service on or after July 1, 2003 and on
7or before July 1, 2017, and (iii) 100% of the cost price
8thereafter. If, at any time, however, the tax under this Act on
9sales of gasohol, as defined in the Use Tax Act, is imposed at
10the rate of 1.25%, then the tax imposed by this Act applies to
11100% of the proceeds of sales of gasohol made during that time.
12    With respect to majority blended ethanol fuel, as defined
13in the Use Tax Act, the tax imposed by this Act does not apply
14to the selling price of property transferred as an incident to
15the sale of service on or after July 1, 2003 and on or before
16December 31, 2023 but applies to 100% of the selling price
17thereafter.
18    With respect to biodiesel blends, as defined in the Use Tax
19Act, with no less than 1% and no more than 10% biodiesel, the
20tax imposed by this Act applies to (i) 80% of the selling price
21of property transferred as an incident to the sale of service
22on or after July 1, 2003 and on or before December 31, 2018 and
23(ii) 100% of the proceeds of the selling price thereafter. If,
24at any time, however, the tax under this Act on sales of
25biodiesel blends, as defined in the Use Tax Act, with no less
26than 1% and no more than 10% biodiesel is imposed at the rate

 

 

HB4487- 15 -LRB101 17684 HLH 69110 b

1of 1.25%, then the tax imposed by this Act applies to 100% of
2the proceeds of sales of biodiesel blends with no less than 1%
3and no more than 10% biodiesel made during that time.
4    With respect to 100% biodiesel, as defined in the Use Tax
5Act, and biodiesel blends, as defined in the Use Tax Act, with
6more than 10% but no more than 99% biodiesel material, the tax
7imposed by this Act does not apply to the proceeds of the
8selling price of property transferred as an incident to the
9sale of service on or after July 1, 2003 and on or before
10December 31, 2023 but applies to 100% of the selling price
11thereafter.
12    At the election of any registered serviceman made for each
13fiscal year, sales of service in which the aggregate annual
14cost price of tangible personal property transferred as an
15incident to the sales of service is less than 35%, or 75% in
16the case of servicemen transferring prescription drugs or
17servicemen engaged in graphic arts production, of the aggregate
18annual total gross receipts from all sales of service, the tax
19imposed by this Act shall be based on the serviceman's cost
20price of the tangible personal property transferred incident to
21the sale of those services.
22    The tax shall be imposed at the rate of 1% on food prepared
23for immediate consumption and transferred incident to a sale of
24service subject to this Act or the Service Occupation Tax Act
25by an entity licensed under the Hospital Licensing Act, the
26Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD

 

 

HB4487- 16 -LRB101 17684 HLH 69110 b

1Act, the Specialized Mental Health Rehabilitation Act of 2013,
2or the Child Care Act of 1969. The tax shall also be imposed at
3the rate of 1% on food for human consumption that is to be
4consumed off the premises where it is sold (other than
5alcoholic beverages, food consisting of or infused with adult
6use cannabis, soft drinks, and food that has been prepared for
7immediate consumption and is not otherwise included in this
8paragraph) and prescription and nonprescription medicines,
9drugs, medical appliances, products classified as Class III
10medical devices by the United States Food and Drug
11Administration that are used for cancer treatment pursuant to a
12prescription, as well as any accessories and components related
13to those devices, modifications to a motor vehicle for the
14purpose of rendering it usable by a person with a disability,
15and insulin, blood sugar urine testing materials, syringes, and
16needles used by human diabetics, for human use. For the
17purposes of this Section, until September 1, 2009: the term
18"soft drinks" means any complete, finished, ready-to-use,
19non-alcoholic drink, whether carbonated or not, including but
20not limited to soda water, cola, fruit juice, vegetable juice,
21carbonated water, and all other preparations commonly known as
22soft drinks of whatever kind or description that are contained
23in any closed or sealed can, carton, or container, regardless
24of size; but "soft drinks" does not include coffee, tea,
25non-carbonated water, infant formula, milk or milk products as
26defined in the Grade A Pasteurized Milk and Milk Products Act,

 

 

HB4487- 17 -LRB101 17684 HLH 69110 b

1or drinks containing 50% or more natural fruit or vegetable
2juice.
3    Notwithstanding any other provisions of this Act,
4beginning September 1, 2009, "soft drinks" means non-alcoholic
5beverages that contain natural or artificial sweeteners. "Soft
6drinks" do not include beverages that contain milk or milk
7products, soy, rice or similar milk substitutes, or greater
8than 50% of vegetable or fruit juice by volume.
9    Until August 1, 2009, and notwithstanding any other
10provisions of this Act, "food for human consumption that is to
11be consumed off the premises where it is sold" includes all
12food sold through a vending machine, except soft drinks and
13food products that are dispensed hot from a vending machine,
14regardless of the location of the vending machine. Beginning
15August 1, 2009, and notwithstanding any other provisions of
16this Act, "food for human consumption that is to be consumed
17off the premises where it is sold" includes all food sold
18through a vending machine, except soft drinks, candy, and food
19products that are dispensed hot from a vending machine,
20regardless of the location of the vending machine.
21    Notwithstanding any other provisions of this Act,
22beginning September 1, 2009, "food for human consumption that
23is to be consumed off the premises where it is sold" does not
24include candy. For purposes of this Section, "candy" means a
25preparation of sugar, honey, or other natural or artificial
26sweeteners in combination with chocolate, fruits, nuts or other

 

 

HB4487- 18 -LRB101 17684 HLH 69110 b

1ingredients or flavorings in the form of bars, drops, or
2pieces. "Candy" does not include any preparation that contains
3flour or requires refrigeration.
4    Notwithstanding any other provisions of this Act,
5beginning September 1, 2009, "nonprescription medicines and
6drugs" does not include grooming and hygiene products. For
7purposes of this Section, "grooming and hygiene products"
8includes, but is not limited to, soaps and cleaning solutions,
9shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
10lotions and screens, unless those products are available by
11prescription only, regardless of whether the products meet the
12definition of "over-the-counter-drugs". For the purposes of
13this paragraph, "over-the-counter-drug" means a drug for human
14use that contains a label that identifies the product as a drug
15as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
16label includes:
17        (A) A "Drug Facts" panel; or
18        (B) A statement of the "active ingredient(s)" with a
19    list of those ingredients contained in the compound,
20    substance or preparation.
21    Beginning on January 1, 2014 (the effective date of Public
22Act 98-122), "prescription and nonprescription medicines and
23drugs" includes medical cannabis purchased from a registered
24dispensing organization under the Compassionate Use of Medical
25Cannabis Program Act.
26    As used in this Section, "adult use cannabis" means

 

 

HB4487- 19 -LRB101 17684 HLH 69110 b

1cannabis subject to tax under the Cannabis Cultivation
2Privilege Tax Law and the Cannabis Purchaser Excise Tax Law and
3does not include cannabis subject to tax under the
4Compassionate Use of Medical Cannabis Program Act.
5(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
6101-593, eff. 12-4-19.)
 
7    Section 20. The Retailers' Occupation Tax Act is amended by
8changing Section 2-10 as follows:
 
9    (35 ILCS 120/2-10)
10    Sec. 2-10. Rate of tax. Unless otherwise provided in this
11Section, the tax imposed by this Act is at the rate of 6.25% of
12gross receipts from sales of tangible personal property made in
13the course of business.
14    Beginning on July 1, 2000 and through December 31, 2000,
15with respect to motor fuel, as defined in Section 1.1 of the
16Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
17the Use Tax Act, the tax is imposed at the rate of 1.25%.
18    Beginning on August 6, 2010 through August 15, 2010, with
19respect to sales tax holiday items as defined in Section 2-8 of
20this Act, the tax is imposed at the rate of 1.25%.
21    Within 14 days after the effective date of this amendatory
22Act of the 91st General Assembly, each retailer of motor fuel
23and gasohol shall cause the following notice to be posted in a
24prominently visible place on each retail dispensing device that

 

 

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1is used to dispense motor fuel or gasohol in the State of
2Illinois: "As of July 1, 2000, the State of Illinois has
3eliminated the State's share of sales tax on motor fuel and
4gasohol through December 31, 2000. The price on this pump
5should reflect the elimination of the tax." The notice shall be
6printed in bold print on a sign that is no smaller than 4
7inches by 8 inches. The sign shall be clearly visible to
8customers. Any retailer who fails to post or maintain a
9required sign through December 31, 2000 is guilty of a petty
10offense for which the fine shall be $500 per day per each
11retail premises where a violation occurs.
12    With respect to gasohol, as defined in the Use Tax Act, the
13tax imposed by this Act applies to (i) 70% of the proceeds of
14sales made on or after January 1, 1990, and before July 1,
152003, (ii) 80% of the proceeds of sales made on or after July
161, 2003 and on or before July 1, 2017, and (iii) 100% of the
17proceeds of sales made thereafter. If, at any time, however,
18the tax under this Act on sales of gasohol, as defined in the
19Use Tax Act, is imposed at the rate of 1.25%, then the tax
20imposed by this Act applies to 100% of the proceeds of sales of
21gasohol made during that time.
22    With respect to majority blended ethanol fuel, as defined
23in the Use Tax Act, the tax imposed by this Act does not apply
24to the proceeds of sales made on or after July 1, 2003 and on or
25before December 31, 2023 but applies to 100% of the proceeds of
26sales made thereafter.

 

 

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1    With respect to biodiesel blends, as defined in the Use Tax
2Act, with no less than 1% and no more than 10% biodiesel, the
3tax imposed by this Act applies to (i) 80% of the proceeds of
4sales made on or after July 1, 2003 and on or before December
531, 2018 and (ii) 100% of the proceeds of sales made
6thereafter. If, at any time, however, the tax under this Act on
7sales of biodiesel blends, as defined in the Use Tax Act, with
8no less than 1% and no more than 10% biodiesel is imposed at
9the rate of 1.25%, then the tax imposed by this Act applies to
10100% of the proceeds of sales of biodiesel blends with no less
11than 1% and no more than 10% biodiesel made during that time.
12    With respect to 100% biodiesel, as defined in the Use Tax
13Act, and biodiesel blends, as defined in the Use Tax Act, with
14more than 10% but no more than 99% biodiesel, the tax imposed
15by this Act does not apply to the proceeds of sales made on or
16after July 1, 2003 and on or before December 31, 2023 but
17applies to 100% of the proceeds of sales made thereafter.
18    With respect to food for human consumption that is to be
19consumed off the premises where it is sold (other than
20alcoholic beverages, food consisting of or infused with adult
21use cannabis, soft drinks, and food that has been prepared for
22immediate consumption) and prescription and nonprescription
23medicines, drugs, medical appliances, products classified as
24Class III medical devices by the United States Food and Drug
25Administration that are used for cancer treatment pursuant to a
26prescription, as well as any accessories and components related

 

 

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

 

 

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

 

 

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1this paragraph, "over-the-counter-drug" means a drug for human
2use that contains a label that identifies the product as a drug
3as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
4label includes:
5        (A) A "Drug Facts" panel; or
6        (B) A statement of the "active ingredient(s)" with a
7    list of those ingredients contained in the compound,
8    substance or preparation.
9    Beginning on the effective date of this amendatory Act of
10the 98th General Assembly, "prescription and nonprescription
11medicines and drugs" includes medical cannabis purchased from a
12registered dispensing organization under the Compassionate Use
13of Medical Cannabis Program Act.
14    As used in this Section, "adult use cannabis" means
15cannabis subject to tax under the Cannabis Cultivation
16Privilege Tax Law and the Cannabis Purchaser Excise Tax Law and
17does not include cannabis subject to tax under the
18Compassionate Use of Medical Cannabis Program Act.
19(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
20101-593, eff. 12-4-19.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.