102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2387

 

Introduced 2/17/2021, by Rep. Joyce Mason

 

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, with respect to diapers, infant formula, and breastfeeding supplies designed for human use, the tax is imposed at the rate of 1%.


LRB102 12910 HLH 18253 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2387LRB102 12910 HLH 18253 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
14functionally used or consumed is a by-product or waste product
15that has been refined, manufactured, or produced from property
16purchased at retail, then the tax is imposed on the lower of
17the fair market value, if any, of the specific property so used
18in this State or on the selling price of the property purchased
19at retail. For purposes of this Section "fair market value"
20means the price at which property would change hands between a
21willing buyer and a willing seller, neither being under any
22compulsion to buy or sell and both having reasonable knowledge
23of the relevant facts. The fair market value shall be

 

 

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1established by Illinois sales by the taxpayer of the same
2property as that functionally used or consumed, or if there
3are no such sales by the taxpayer, then comparable sales or
4purchases of property of like 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

 

 

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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
23a prescription, as well as any accessories and components
24related to those devices, modifications to a motor vehicle for
25the purpose of rendering it usable by a person with a
26disability, and insulin, urine testing materials, syringes,

 

 

HB2387- 4 -LRB102 12910 HLH 18253 b

1and needles used by 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

 

 

HB2387- 5 -LRB102 12910 HLH 18253 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
12other ingredients 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"

 

 

HB2387- 6 -LRB102 12910 HLH 18253 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
9a registered dispensing organization under the Compassionate
10Use of 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
14and does not include cannabis subject to tax under the
15Compassionate Use of Medical Cannabis Program Act.
16    Beginning on the effective date of this amendatory Act of
17the 102nd General Assembly, with respect to diapers, infant
18formula, and breastfeeding supplies designed for human use,
19the tax is imposed at the rate of 1%. As used in this Section,
20"breastfeeding supplies" means breast pumps, breast pump kits,
21and other items of tangible personal property designed or
22marketed to be used in conjunction with a breast pump,
23including, but not limited to, breast shields, tubes, bottles
24and bottle caps specific to the operation of the breast pump,
25and bags used in the collection of breast milk. As used in this
26Section "infant formula" means a food which purports to be or

 

 

HB2387- 7 -LRB102 12910 HLH 18253 b

1is represented for special dietary use solely as a food for
2infants by reason of its simulation of human milk or its
3suitability as a complete or partial substitute for human
4milk.
5    If the property that is purchased at retail from a
6retailer is acquired outside Illinois and used outside
7Illinois before being brought to Illinois for use here and is
8taxable under this Act, the "selling price" on which the tax is
9computed shall be reduced by an amount that represents a
10reasonable allowance for depreciation for the period of prior
11out-of-state use.
12(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
13101-593, eff. 12-4-19.)
 
14    Section 10. The Service Use Tax Act is amended by changing
15Section 3-10 as follows:
 
16    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
17    Sec. 3-10. Rate of tax. Unless otherwise provided in this
18Section, the tax imposed by this Act is at the rate of 6.25% of
19the selling price of tangible personal property transferred as
20an incident to the sale of service, but, for the purpose of
21computing this tax, in no event shall the selling price be less
22than the cost price of the property to the serviceman.
23    Beginning on July 1, 2000 and through December 31, 2000,
24with respect to motor fuel, as defined in Section 1.1 of the

 

 

HB2387- 8 -LRB102 12910 HLH 18253 b

1Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
2the Use Tax Act, the tax is imposed at the rate of 1.25%.
3    With respect to gasohol, as defined in the Use Tax Act, the
4tax imposed by this Act applies to (i) 70% of the selling price
5of property transferred as an incident to the sale of service
6on or after January 1, 1990, and before July 1, 2003, (ii) 80%
7of the selling price of property transferred as an incident to
8the sale of service on or after July 1, 2003 and on or before
9July 1, 2017, and (iii) 100% of the selling price thereafter.
10If, at any time, however, the tax under this Act on sales of
11gasohol, as defined in the Use Tax Act, is imposed at the rate
12of 1.25%, then the tax imposed by this Act applies to 100% of
13the proceeds of sales of gasohol made during that time.
14    With respect to majority blended ethanol fuel, as defined
15in the Use Tax Act, the tax imposed by this Act does not apply
16to the selling price of property transferred as an incident to
17the sale of service on or after July 1, 2003 and on or before
18December 31, 2023 but applies to 100% of the selling price
19thereafter.
20    With respect to biodiesel blends, as defined in the Use
21Tax Act, with no less than 1% and no more than 10% biodiesel,
22the tax imposed by this Act applies to (i) 80% of the selling
23price of property transferred as an incident to the sale of
24service on or after July 1, 2003 and on or before December 31,
252018 and (ii) 100% of the proceeds of the selling price
26thereafter. If, at any time, however, the tax under this Act on

 

 

HB2387- 9 -LRB102 12910 HLH 18253 b

1sales of biodiesel blends, as defined in the Use Tax Act, with
2no less than 1% and no more than 10% biodiesel is imposed at
3the rate of 1.25%, then the tax imposed by this Act applies to
4100% of the proceeds of sales of biodiesel blends with no less
5than 1% and no more than 10% biodiesel made during that time.
6    With respect to 100% biodiesel, as defined in the Use Tax
7Act, and biodiesel blends, as defined in the Use Tax Act, with
8more than 10% but no more than 99% biodiesel, the tax imposed
9by this Act does not apply to the proceeds of the selling price
10of property transferred as an incident to the sale of service
11on or after July 1, 2003 and on or before December 31, 2023 but
12applies to 100% of the selling price thereafter.
13    At the election of any registered serviceman made for each
14fiscal year, sales of service in which the aggregate annual
15cost price of tangible personal property transferred as an
16incident to the sales of service is less than 35%, or 75% in
17the case of servicemen transferring prescription drugs or
18servicemen engaged in graphic arts production, of the
19aggregate annual total gross receipts from all sales of
20service, the tax imposed by this Act shall be based on the
21serviceman's cost price of the tangible personal property
22transferred as an incident to the sale of those services.
23    The tax shall be imposed at the rate of 1% on food prepared
24for immediate consumption and transferred incident to a sale
25of service subject to this Act or the Service Occupation Tax
26Act by an entity licensed under the Hospital Licensing Act,

 

 

HB2387- 10 -LRB102 12910 HLH 18253 b

1the Nursing Home Care Act, the ID/DD Community Care Act, the
2MC/DD Act, the Specialized Mental Health Rehabilitation Act of
32013, or the Child Care Act of 1969. The tax shall also be
4imposed at the rate of 1% on food for human consumption that is
5to be consumed off the premises where it is sold (other than
6alcoholic beverages, food consisting of or infused with adult
7use cannabis, soft drinks, and food that has been prepared for
8immediate consumption and is not otherwise included in this
9paragraph) and prescription and nonprescription medicines,
10drugs, medical appliances, products classified as Class III
11medical devices by the United States Food and Drug
12Administration that are used for cancer treatment pursuant to
13a prescription, as well as any accessories and components
14related to those devices, modifications to a motor vehicle for
15the purpose of rendering it usable by a person with a
16disability, and insulin, urine testing materials, syringes,
17and needles used by diabetics, for human use. For the purposes
18of this Section, until September 1, 2009: the term "soft
19drinks" means any complete, finished, ready-to-use,
20non-alcoholic drink, whether carbonated or not, including but
21not limited to soda water, cola, fruit juice, vegetable juice,
22carbonated water, and all other preparations commonly known as
23soft drinks of whatever kind or description that are contained
24in any closed or sealed bottle, can, carton, or container,
25regardless of size; but "soft drinks" does not include coffee,
26tea, non-carbonated water, infant formula, milk or milk

 

 

HB2387- 11 -LRB102 12910 HLH 18253 b

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

 

 

HB2387- 12 -LRB102 12910 HLH 18253 b

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

 

 

HB2387- 13 -LRB102 12910 HLH 18253 b

1    As used in this Section, "adult use cannabis" means
2cannabis subject to tax under the Cannabis Cultivation
3Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
4and does not include cannabis subject to tax under the
5Compassionate Use of Medical Cannabis Program Act.
6    Beginning on the effective date of this amendatory Act of
7the 102nd General Assembly, with respect to diapers, infant
8formula, and breastfeeding supplies designed for human use,
9the tax is imposed at the rate of 1%. As used in this Section,
10"breastfeeding supplies" means breast pumps, breast pump kits,
11and other items of tangible personal property designed or
12marketed to be used in conjunction with a breast pump,
13including, but not limited to, breast shields, tubes, bottles
14and bottle caps specific to the operation of the breast pump,
15and bags used in the collection of breast milk. As used in this
16Section "infant formula" means a food which purports to be or
17is represented for special dietary use solely as a food for
18infants by reason of its simulation of human milk or its
19suitability as a complete or partial substitute for human
20milk.
21    If the property that is acquired from a serviceman is
22acquired outside Illinois and used outside Illinois before
23being brought to Illinois for use here and is taxable under
24this Act, the "selling price" on which the tax is computed
25shall be reduced by an amount that represents a reasonable
26allowance for depreciation for the period of prior

 

 

HB2387- 14 -LRB102 12910 HLH 18253 b

1out-of-state use.
2(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
3101-593, eff. 12-4-19.)
 
4    Section 15. The Service Occupation Tax Act is amended by
5changing Section 3-10 as follows:
 
6    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
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
9the "selling price", as defined in Section 2 of the Service Use
10Tax Act, of the tangible personal property. For the purpose of
11computing this tax, in no event shall the "selling price" be
12less than the cost price to the serviceman of the tangible
13personal property transferred. The selling price of each item
14of tangible personal property transferred as an incident of a
15sale of service may be shown as a distinct and separate item on
16the serviceman's billing to the service customer. If the
17selling price is not so shown, the selling price of the
18tangible personal property is deemed to be 50% of the
19serviceman's entire billing to the service customer. When,
20however, a serviceman contracts to design, develop, and
21produce special order machinery or equipment, the tax imposed
22by this Act shall be based on the serviceman's cost price of
23the tangible personal property transferred incident to the
24completion of the contract.

 

 

HB2387- 15 -LRB102 12910 HLH 18253 b

1    Beginning on July 1, 2000 and through December 31, 2000,
2with respect to motor fuel, as defined in Section 1.1 of the
3Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
4the Use Tax Act, the tax is imposed at the rate of 1.25%.
5    With respect to gasohol, as defined in the Use Tax Act, the
6tax imposed by this Act shall apply to (i) 70% of the cost
7price of property transferred as an incident to the sale of
8service on or after January 1, 1990, and before July 1, 2003,
9(ii) 80% of the selling price of property transferred as an
10incident to the sale of service on or after July 1, 2003 and on
11or before July 1, 2017, and (iii) 100% of the cost price
12thereafter. If, at any time, however, the tax under this Act on
13sales of gasohol, as defined in the Use Tax Act, is imposed at
14the rate of 1.25%, then the tax imposed by this Act applies to
15100% of the proceeds of sales of gasohol made during that time.
16    With respect to majority blended ethanol fuel, as defined
17in the Use Tax Act, the tax imposed by this Act does not apply
18to the selling price of property transferred as an incident to
19the sale of service on or after July 1, 2003 and on or before
20December 31, 2023 but applies to 100% of the selling price
21thereafter.
22    With respect to biodiesel blends, as defined in the Use
23Tax Act, with no less than 1% and no more than 10% biodiesel,
24the tax imposed by this Act applies to (i) 80% of the selling
25price of property transferred as an incident to the sale of
26service on or after July 1, 2003 and on or before December 31,

 

 

HB2387- 16 -LRB102 12910 HLH 18253 b

12018 and (ii) 100% of the proceeds of the selling price
2thereafter. If, at any time, however, the tax under this Act on
3sales of biodiesel blends, as defined in the Use Tax Act, with
4no less than 1% and no more than 10% biodiesel is imposed at
5the rate of 1.25%, then the tax imposed by this Act applies to
6100% of the proceeds of sales of biodiesel blends with no less
7than 1% and no more than 10% biodiesel made during that time.
8    With respect to 100% biodiesel, as defined in the Use Tax
9Act, and biodiesel blends, as defined in the Use Tax Act, with
10more than 10% but no more than 99% biodiesel material, the tax
11imposed by this Act does not apply to the proceeds of the
12selling price of property transferred as an incident to the
13sale of service on or after July 1, 2003 and on or before
14December 31, 2023 but applies to 100% of the selling price
15thereafter.
16    At the election of any registered serviceman made for each
17fiscal year, sales of service in which the aggregate annual
18cost price of tangible personal property transferred as an
19incident to the sales of service is less than 35%, or 75% in
20the case of servicemen transferring prescription drugs or
21servicemen engaged in graphic arts production, of the
22aggregate annual total gross receipts from all sales of
23service, the tax imposed by this Act shall be based on the
24serviceman's cost price of the tangible personal property
25transferred incident to the sale of those services.
26    The tax shall be imposed at the rate of 1% on food prepared

 

 

HB2387- 17 -LRB102 12910 HLH 18253 b

1for immediate consumption and transferred incident to a sale
2of service subject to this Act or the Service Occupation Tax
3Act by an entity licensed under the Hospital Licensing Act,
4the Nursing Home Care Act, the ID/DD Community Care Act, the
5MC/DD Act, the Specialized Mental Health Rehabilitation Act of
62013, or the Child Care Act of 1969. The tax shall also be
7imposed at the rate of 1% on food for human consumption that is
8to be consumed off the premises where it is sold (other than
9alcoholic beverages, food consisting of or infused with adult
10use cannabis, soft drinks, and food that has been prepared for
11immediate consumption and is not otherwise included in this
12paragraph) and prescription and nonprescription medicines,
13drugs, medical appliances, products classified as Class III
14medical devices by the United States Food and Drug
15Administration that are used for cancer treatment pursuant to
16a prescription, as well as any accessories and components
17related to those devices, modifications to a motor vehicle for
18the purpose of rendering it usable by a person with a
19disability, and insulin, urine testing materials, syringes,
20and needles used by diabetics, for human use. For the purposes
21of this Section, until September 1, 2009: the term "soft
22drinks" means any complete, finished, ready-to-use,
23non-alcoholic drink, whether carbonated or not, including but
24not limited to soda water, cola, fruit juice, vegetable juice,
25carbonated water, and all other preparations commonly known as
26soft drinks of whatever kind or description that are contained

 

 

HB2387- 18 -LRB102 12910 HLH 18253 b

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

 

 

HB2387- 19 -LRB102 12910 HLH 18253 b

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

 

 

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1drugs" includes medical cannabis purchased from a registered
2dispensing organization under the Compassionate Use of Medical
3Cannabis Program Act.
4    As used in this Section, "adult use cannabis" means
5cannabis subject to tax under the Cannabis Cultivation
6Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
7and does not include cannabis subject to tax under the
8Compassionate Use of Medical Cannabis Program Act.
9    Beginning on the effective date of this amendatory Act of
10the 102nd General Assembly, with respect to diapers, infant
11formula, and breastfeeding supplies designed for human use,
12the tax is imposed at the rate of 1%. As used in this Section,
13"breastfeeding supplies" means breast pumps, breast pump kits,
14and other items of tangible personal property designed or
15marketed to be used in conjunction with a breast pump,
16including, but not limited to, breast shields, tubes, bottles
17and bottle caps specific to the operation of the breast pump,
18and bags used in the collection of breast milk. As used in this
19Section "infant formula" means a food which purports to be or
20is represented for special dietary use solely as a food for
21infants by reason of its simulation of human milk or its
22suitability as a complete or partial substitute for human
23milk.
24(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
25101-593, eff. 12-4-19.)
 

 

 

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1    Section 20. The Retailers' Occupation Tax Act is amended
2by changing 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
7in the 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
19that is 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
24be printed in bold print on a sign that is no smaller than 4
25inches by 8 inches. The sign shall be clearly visible to

 

 

HB2387- 22 -LRB102 12910 HLH 18253 b

1customers. Any retailer who fails to post or maintain a
2required sign through December 31, 2000 is guilty of a petty
3offense for which the fine shall be $500 per day per each
4retail premises where a violation occurs.
5    With respect to gasohol, as defined in the Use Tax Act, the
6tax imposed by this Act applies to (i) 70% of the proceeds of
7sales made on or after January 1, 1990, and before July 1,
82003, (ii) 80% of the proceeds of sales made on or after July
91, 2003 and on or before July 1, 2017, and (iii) 100% of the
10proceeds of sales made thereafter. If, at any time, however,
11the tax under this Act on sales of gasohol, as defined in the
12Use Tax Act, is imposed at the rate of 1.25%, then the tax
13imposed by this Act applies to 100% of the proceeds of sales of
14gasohol made during that time.
15    With respect to majority blended ethanol fuel, as defined
16in the Use Tax Act, the tax imposed by this Act does not apply
17to the proceeds of sales made on or after July 1, 2003 and on
18or before December 31, 2023 but applies to 100% of the proceeds
19of sales made thereafter.
20    With respect to biodiesel blends, as defined in the Use
21Tax Act, with no less than 1% and no more than 10% biodiesel,
22the tax imposed by this Act applies to (i) 80% of the proceeds
23of sales made on or after July 1, 2003 and on or before
24December 31, 2018 and (ii) 100% of the proceeds of sales made
25thereafter. If, at any time, however, the tax under this Act on
26sales of biodiesel blends, as defined in the Use Tax Act, with

 

 

HB2387- 23 -LRB102 12910 HLH 18253 b

1no less than 1% and no more than 10% biodiesel is imposed at
2the rate of 1.25%, then the tax imposed by this Act applies to
3100% of the proceeds of sales of biodiesel blends with no less
4than 1% and no more than 10% biodiesel made during that time.
5    With respect to 100% biodiesel, as defined in the Use Tax
6Act, and biodiesel blends, as defined in the Use Tax Act, with
7more than 10% but no more than 99% biodiesel, the tax imposed
8by this Act does not apply to the proceeds of sales made on or
9after July 1, 2003 and on or before December 31, 2023 but
10applies to 100% of the proceeds of sales made thereafter.
11    With respect to food for human consumption that is to be
12consumed off the premises where it is sold (other than
13alcoholic beverages, food consisting of or infused with adult
14use cannabis, soft drinks, and food that has been prepared for
15immediate consumption) and prescription and nonprescription
16medicines, drugs, medical appliances, products classified as
17Class III medical devices by the United States Food and Drug
18Administration that are used for cancer treatment pursuant to
19a prescription, as well as any accessories and components
20related to those devices, modifications to a motor vehicle for
21the purpose of rendering it usable by a person with a
22disability, and insulin, urine testing materials, syringes,
23and needles used by diabetics, for human use, the tax is
24imposed at the rate of 1%. For the purposes of this Section,
25until September 1, 2009: the term "soft drinks" means any
26complete, finished, ready-to-use, non-alcoholic drink, whether

 

 

HB2387- 24 -LRB102 12910 HLH 18253 b

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

 

 

HB2387- 25 -LRB102 12910 HLH 18253 b

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

 

 

HB2387- 26 -LRB102 12910 HLH 18253 b

1    substance or preparation.
2    Beginning on the effective date of this amendatory Act of
3the 98th General Assembly, "prescription and nonprescription
4medicines and drugs" includes medical cannabis purchased from
5a registered dispensing organization under the Compassionate
6Use of Medical Cannabis Program Act.
7    As used in this Section, "adult use cannabis" means
8cannabis subject to tax under the Cannabis Cultivation
9Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
10and does not include cannabis subject to tax under the
11Compassionate Use of Medical Cannabis Program Act.
12    Beginning on the effective date of this amendatory Act of
13the 102nd General Assembly, with respect to diapers, infant
14formula, and breastfeeding supplies designed for human use,
15the tax is imposed at the rate of 1%. As used in this Section,
16"breastfeeding supplies" means breast pumps, breast pump kits,
17and other items of tangible personal property designed or
18marketed to be used in conjunction with a breast pump,
19including, but not limited to, breast shields, tubes, bottles
20and bottle caps specific to the operation of the breast pump,
21and bags used in the collection of breast milk. As used in this
22Section "infant formula" means a food which purports to be or
23is represented for special dietary use solely as a food for
24infants by reason of its simulation of human milk or its
25suitability as a complete or partial substitute for human
26milk.

 

 

HB2387- 27 -LRB102 12910 HLH 18253 b

1(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
2101-593, eff. 12-4-19.)