102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5732

 

Introduced , by Rep. Adam Niemerg

 

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
35 ILCS 505/2  from Ch. 120, par. 418
5 ILCS 100/5-45.21 new

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning 30 days after the effective date of the amendatory Act and continuing through the last day of the fourth month after the effective date of the amendatory Act, the taxes imposed by those Acts do not apply to the proceeds of sales of: motor fuel; gasohol; majority blended ethanol fuel; biodiesel; and biodiesel blends. Amends the Motor Fuel Tax Act. Provides that no tax shall be imposed under this Act beginning 30 days after the effective date of the amendatory Act and continuing through the last day of the fourth month after the effective date of the amendatory Act. Amends the Illinois Administrative Procedure Act to authorize emergency rulemaking. Effective immediately.


LRB102 26939 HLH 38114 b

 

 

A BILL FOR

 

HB5732LRB102 26939 HLH 38114 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 1. Short title. This Act may be cited as the Motor
5Fuel Tax Relief Act.
 
6    Section 5. The Use Tax Act is amended by changing Section
73-10 as follows:
 
8    (35 ILCS 105/3-10)
9    Sec. 3-10. Rate of tax. Unless otherwise provided in this
10Section, the tax imposed by this Act is at the rate of 6.25% of
11either the selling price or the fair market value, if any, of
12the tangible personal property. In all cases where property
13functionally used or consumed is the same as the property that
14was purchased at retail, then the tax is imposed on the selling
15price of the property. In all cases where property
16functionally used or consumed is a by-product or waste product
17that has been refined, manufactured, or produced from property
18purchased at retail, then the tax is imposed on the lower of
19the fair market value, if any, of the specific property so used
20in this State or on the selling price of the property purchased
21at retail. For purposes of this Section "fair market value"
22means the price at which property would change hands between a

 

 

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1willing buyer and a willing seller, neither being under any
2compulsion to buy or sell and both having reasonable knowledge
3of the relevant facts. The fair market value shall be
4established by Illinois sales by the taxpayer of the same
5property as that functionally used or consumed, or if there
6are no such sales by the taxpayer, then comparable sales or
7purchases of property of like kind and character in Illinois.
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 3-6 of
14this Act, the tax is imposed at the rate of 1.25%.
15    With respect to gasohol, the tax imposed by this Act
16applies to (i) 70% of the proceeds of sales made on or after
17January 1, 1990, and before July 1, 2003, (ii) 80% of the
18proceeds of sales made on or after July 1, 2003 and on or
19before July 1, 2017, and (iii) 100% of the proceeds of sales
20made thereafter. If, at any time, however, the tax under this
21Act on sales of gasohol is imposed at the rate of 1.25%, then
22the tax imposed by this Act applies to 100% of the proceeds of
23sales of gasohol made during that time.
24    With respect to majority blended ethanol fuel, the tax
25imposed by this Act does not apply to the proceeds of sales
26made on or after July 1, 2003 and on or before December 31,

 

 

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12023 but applies to 100% of the proceeds of sales made
2thereafter.
3    With respect to biodiesel blends with no less than 1% and
4no more than 10% biodiesel, the tax imposed by this Act applies
5to (i) 80% of the proceeds of sales made on or after July 1,
62003 and on or before December 31, 2018 and (ii) 100% of the
7proceeds of sales made thereafter. If, at any time, however,
8the tax under this Act on sales of biodiesel blends with no
9less than 1% and no more than 10% biodiesel is imposed at the
10rate of 1.25%, then the tax imposed by this Act applies to 100%
11of the proceeds of sales of biodiesel blends with no less than
121% and no more than 10% biodiesel made during that time.
13    With respect to 100% biodiesel and biodiesel blends 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    Beginning 30 days after the effective date of this
19amendatory Act of the 102nd General Assembly and continuing
20through the last day of the fourth month after the effective
21date of this amendatory Act of the 102nd General Assembly, the
22tax imposed by this Act does not apply to the proceeds of sales
23of: motor fuel, as defined in Section 1.1 of the Motor Fuel Tax
24Law; gasohol, as defined in Section 3-40 of this Act; majority
25blended ethanol fuel; biodiesel; and biodiesel blends.
26    With respect to food for human consumption that is to be

 

 

HB5732- 4 -LRB102 26939 HLH 38114 b

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

 

 

HB5732- 5 -LRB102 26939 HLH 38114 b

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

 

 

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

 

 

HB5732- 7 -LRB102 26939 HLH 38114 b

1    If the property that is purchased at retail from a
2retailer is acquired outside Illinois and used outside
3Illinois before being brought to Illinois for use here and is
4taxable under this Act, the "selling price" on which the tax is
5computed shall be reduced by an amount that represents a
6reasonable allowance for depreciation for the period of prior
7out-of-state use.
8(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
9102-4, eff. 4-27-21.)
 
10    Section 10. The Service Use Tax Act is amended by changing
11Section 3-10 as follows:
 
12    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
13    Sec. 3-10. Rate of tax. Unless otherwise provided in this
14Section, the tax imposed by this Act is at the rate of 6.25% of
15the selling price of tangible personal property transferred as
16an incident to the sale of service, but, for the purpose of
17computing this tax, in no event shall the selling price be less
18than the cost price of the property to the serviceman.
19    Beginning on July 1, 2000 and through December 31, 2000,
20with respect to motor fuel, as defined in Section 1.1 of the
21Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
22the Use Tax Act, the tax is imposed at the rate of 1.25%.
23    With respect to gasohol, as defined in the Use Tax Act, the
24tax imposed by this Act applies to (i) 70% of the selling price

 

 

HB5732- 8 -LRB102 26939 HLH 38114 b

1of property transferred as an incident to the sale of service
2on or after January 1, 1990, and before July 1, 2003, (ii) 80%
3of the selling price of property transferred as an incident to
4the sale of service on or after July 1, 2003 and on or before
5July 1, 2017, and (iii) 100% of the selling price thereafter.
6If, at any time, however, the tax under this Act on sales of
7gasohol, as defined in the Use Tax Act, is imposed at the rate
8of 1.25%, then the tax imposed by this Act applies to 100% of
9the proceeds of sales of gasohol made during that time.
10    With respect to majority blended ethanol fuel, as defined
11in the Use Tax Act, the tax imposed by this Act does not apply
12to the selling price of property transferred as an incident to
13the sale 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    With respect to biodiesel blends, as defined in the Use
17Tax Act, with no less than 1% and no more than 10% biodiesel,
18the tax imposed by this Act applies to (i) 80% of the selling
19price of property transferred as an incident to the sale of
20service on or after July 1, 2003 and on or before December 31,
212018 and (ii) 100% of the proceeds of the selling price
22thereafter. If, at any time, however, the tax under this Act on
23sales of biodiesel blends, as defined in the Use Tax Act, with
24no less than 1% and no more than 10% biodiesel is imposed at
25the rate of 1.25%, then the tax imposed by this Act applies to
26100% of the proceeds of sales of biodiesel blends with no less

 

 

HB5732- 9 -LRB102 26939 HLH 38114 b

1than 1% and no more than 10% biodiesel made during that time.
2    With respect to 100% biodiesel, as defined in the Use Tax
3Act, and biodiesel blends, as defined in the Use Tax Act, with
4more than 10% but no more than 99% biodiesel, the tax imposed
5by this Act does not apply to the proceeds of the selling price
6of property transferred as an incident to the sale of service
7on or after July 1, 2003 and on or before December 31, 2023 but
8applies to 100% of the selling price thereafter.
9    Beginning 30 days after the effective date of this
10amendatory Act of the 102nd General Assembly and continuing
11through the last day of the fourth month after the effective
12date of this amendatory Act of the 102nd General Assembly, the
13tax imposed by this Act does not apply to the proceeds of the
14selling price of the following property transferred as an
15incident to the sale of service: motor fuel, as defined in
16Section 1.1 of the Motor Fuel Tax Law; gasohol, as defined in
17Section 3-40 of the Use Tax Act; majority blended ethanol
18fuel; biodiesel; and biodiesel blends.
19    At the election of any registered serviceman made for each
20fiscal year, sales of service in which the aggregate annual
21cost price of tangible personal property transferred as an
22incident to the sales of service is less than 35%, or 75% in
23the case of servicemen transferring prescription drugs or
24servicemen engaged in graphic arts production, of the
25aggregate annual total gross receipts from all sales of
26service, the tax imposed by this Act shall be based on the

 

 

HB5732- 10 -LRB102 26939 HLH 38114 b

1serviceman's cost price of the tangible personal property
2transferred as an incident to the sale of those services.
3    The tax shall be imposed at the rate of 1% on food prepared
4for immediate consumption and transferred incident to a sale
5of service subject to this Act or the Service Occupation Tax
6Act by an entity licensed under the Hospital Licensing Act,
7the Nursing Home Care Act, the Assisted Living and Shared
8Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
9Specialized Mental Health Rehabilitation Act of 2013, or the
10Child Care Act of 1969, or an entity that holds a permit issued
11pursuant to the Life Care Facilities Act. The tax shall also be
12imposed at the rate of 1% on food for human consumption that is
13to be consumed off the premises where it is sold (other than
14alcoholic beverages, food consisting of or infused with adult
15use cannabis, soft drinks, and food that has been prepared for
16immediate consumption and is not otherwise included in this
17paragraph) and prescription and nonprescription medicines,
18drugs, medical appliances, products classified as Class III
19medical devices by the United States Food and Drug
20Administration that are used for cancer treatment pursuant to
21a prescription, as well as any accessories and components
22related to those devices, modifications to a motor vehicle for
23the purpose of rendering it usable by a person with a
24disability, and insulin, blood sugar testing materials,
25syringes, and needles used by human diabetics. For the
26purposes of this Section, until September 1, 2009: the term

 

 

HB5732- 11 -LRB102 26939 HLH 38114 b

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

 

 

HB5732- 12 -LRB102 26939 HLH 38114 b

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

 

 

HB5732- 13 -LRB102 26939 HLH 38114 b

1        (B) A statement of the "active ingredient(s)" with a
2    list of those ingredients contained in the compound,
3    substance or preparation.
4    Beginning on January 1, 2014 (the effective date of Public
5Act 98-122), "prescription and nonprescription medicines and
6drugs" includes medical cannabis purchased from a registered
7dispensing organization under the Compassionate Use of Medical
8Cannabis Program Act.
9    As used in this Section, "adult use cannabis" means
10cannabis subject to tax under the Cannabis Cultivation
11Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
12and does not include cannabis subject to tax under the
13Compassionate Use of Medical Cannabis Program Act.
14    If the property that is acquired from a serviceman is
15acquired outside Illinois and used outside Illinois before
16being brought to Illinois for use here and is taxable under
17this Act, the "selling price" on which the tax is computed
18shall be reduced by an amount that represents a reasonable
19allowance for depreciation for the period of prior
20out-of-state use.
21(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
22102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
23    Section 15. The Service Occupation Tax Act is amended by
24changing Section 3-10 as follows:
 

 

 

HB5732- 14 -LRB102 26939 HLH 38114 b

1    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
2    Sec. 3-10. Rate of tax. Unless otherwise provided in this
3Section, the tax imposed by this Act is at the rate of 6.25% of
4the "selling price", as defined in Section 2 of the Service Use
5Tax Act, of the tangible personal property. For the purpose of
6computing this tax, in no event shall the "selling price" be
7less than the cost price to the serviceman of the tangible
8personal property transferred. The selling price of each item
9of tangible personal property transferred as an incident of a
10sale of service may be shown as a distinct and separate item on
11the serviceman's billing to the service customer. If the
12selling price is not so shown, the selling price of the
13tangible personal property is deemed to be 50% of the
14serviceman's entire billing to the service customer. When,
15however, a serviceman contracts to design, develop, and
16produce special order machinery or equipment, the tax imposed
17by this Act shall be based on the serviceman's cost price of
18the tangible personal property transferred incident to the
19completion of the contract.
20    Beginning on July 1, 2000 and through December 31, 2000,
21with respect to motor fuel, as defined in Section 1.1 of the
22Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
23the Use Tax Act, the tax is imposed at the rate of 1.25%.
24    With respect to gasohol, as defined in the Use Tax Act, the
25tax imposed by this Act shall apply to (i) 70% of the cost
26price of property transferred as an incident to the sale of

 

 

HB5732- 15 -LRB102 26939 HLH 38114 b

1service on or after January 1, 1990, and before July 1, 2003,
2(ii) 80% of the selling price of property transferred as an
3incident to the sale of service on or after July 1, 2003 and on
4or before July 1, 2017, and (iii) 100% of the cost price
5thereafter. If, at any time, however, the tax under this Act on
6sales of gasohol, as defined in the Use Tax Act, is imposed at
7the rate of 1.25%, then the tax imposed by this Act applies to
8100% of the proceeds of sales of gasohol made during that time.
9    With respect to majority blended ethanol fuel, as defined
10in the Use Tax Act, the tax imposed by this Act does not apply
11to the selling price of property transferred as an incident to
12the sale of service on or after July 1, 2003 and on or before
13December 31, 2023 but applies to 100% of the selling price
14thereafter.
15    With respect to biodiesel blends, as defined in the Use
16Tax Act, with no less than 1% and no more than 10% biodiesel,
17the tax imposed by this Act applies to (i) 80% of the selling
18price of property transferred as an incident to the sale of
19service on or after July 1, 2003 and on or before December 31,
202018 and (ii) 100% of the proceeds of the selling price
21thereafter. If, at any time, however, the tax under this Act on
22sales of biodiesel blends, as defined in the Use Tax Act, with
23no less than 1% and no more than 10% biodiesel is imposed at
24the rate of 1.25%, then the tax imposed by this Act applies to
25100% of the proceeds of sales of biodiesel blends with no less
26than 1% and no more than 10% biodiesel made during that time.

 

 

HB5732- 16 -LRB102 26939 HLH 38114 b

1    With respect to 100% biodiesel, as defined in the Use Tax
2Act, and biodiesel blends, as defined in the Use Tax Act, with
3more than 10% but no more than 99% biodiesel material, the tax
4imposed by this Act does not apply to the proceeds of the
5selling price of property transferred as an incident to the
6sale of service on or after July 1, 2003 and on or before
7December 31, 2023 but applies to 100% of the selling price
8thereafter.
9    Beginning 30 days after the effective date of this
10amendatory Act of the 102nd General Assembly and continuing
11through the last day of the fourth month after the effective
12date of this amendatory Act of the 102nd General Assembly, the
13tax imposed by this Act does not apply to the proceeds of the
14selling price of the following property transferred as an
15incident to the sale of service: motor fuel, as defined in
16Section 1.1 of the Motor Fuel Tax Law; gasohol, as defined in
17Section 3-40 of the Use Tax Act; majority blended ethanol
18fuel; biodiesel; and biodiesel blends.
19    At the election of any registered serviceman made for each
20fiscal year, sales of service in which the aggregate annual
21cost price of tangible personal property transferred as an
22incident to the sales of service is less than 35%, or 75% in
23the case of servicemen transferring prescription drugs or
24servicemen engaged in graphic arts production, of the
25aggregate annual total gross receipts from all sales of
26service, the tax imposed by this Act shall be based on the

 

 

HB5732- 17 -LRB102 26939 HLH 38114 b

1serviceman's cost price of the tangible personal property
2transferred incident to the sale of those services.
3    The tax shall be imposed at the rate of 1% on food prepared
4for immediate consumption and transferred incident to a sale
5of service subject to this Act or the Service Occupation Tax
6Act by an entity licensed under the Hospital Licensing Act,
7the Nursing Home Care Act, the Assisted Living and Shared
8Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
9Specialized Mental Health Rehabilitation Act of 2013, or the
10Child Care Act of 1969, or an entity that holds a permit issued
11pursuant to the Life Care Facilities Act. The tax shall also be
12imposed at the rate of 1% on food for human consumption that is
13to be consumed off the premises where it is sold (other than
14alcoholic beverages, food consisting of or infused with adult
15use cannabis, soft drinks, and food that has been prepared for
16immediate consumption and is not otherwise included in this
17paragraph) and prescription and nonprescription medicines,
18drugs, medical appliances, products classified as Class III
19medical devices by the United States Food and Drug
20Administration that are used for cancer treatment pursuant to
21a prescription, as well as any accessories and components
22related to those devices, modifications to a motor vehicle for
23the purpose of rendering it usable by a person with a
24disability, and insulin, blood sugar testing materials,
25syringes, and needles used by human diabetics. For the
26purposes of this Section, until September 1, 2009: the term

 

 

HB5732- 18 -LRB102 26939 HLH 38114 b

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

 

 

HB5732- 19 -LRB102 26939 HLH 38114 b

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

 

 

HB5732- 20 -LRB102 26939 HLH 38114 b

1        (B) A statement of the "active ingredient(s)" with a
2    list of those ingredients contained in the compound,
3    substance or preparation.
4    Beginning on January 1, 2014 (the effective date of Public
5Act 98-122), "prescription and nonprescription medicines and
6drugs" includes medical cannabis purchased from a registered
7dispensing organization under the Compassionate Use of Medical
8Cannabis Program Act.
9    As used in this Section, "adult use cannabis" means
10cannabis subject to tax under the Cannabis Cultivation
11Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
12and does not include cannabis subject to tax under the
13Compassionate Use of Medical Cannabis Program Act.
14(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
15102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
16    Section 20. The Retailers' Occupation Tax Act is amended
17by changing Section 2-10 as follows:
 
18    (35 ILCS 120/2-10)
19    Sec. 2-10. Rate of tax. Unless otherwise provided in this
20Section, the tax imposed by this Act is at the rate of 6.25% of
21gross receipts from sales of tangible personal property made
22in the course of business.
23    Beginning on July 1, 2000 and through December 31, 2000,
24with respect to motor fuel, as defined in Section 1.1 of the

 

 

HB5732- 21 -LRB102 26939 HLH 38114 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    Beginning on August 6, 2010 through August 15, 2010, with
4respect to sales tax holiday items as defined in Section 2-8 of
5this Act, the tax is imposed at the rate of 1.25%.
6    Within 14 days after the effective date of this amendatory
7Act of the 91st General Assembly, each retailer of motor fuel
8and gasohol shall cause the following notice to be posted in a
9prominently visible place on each retail dispensing device
10that is used to dispense motor fuel or gasohol in the State of
11Illinois: "As of July 1, 2000, the State of Illinois has
12eliminated the State's share of sales tax on motor fuel and
13gasohol through December 31, 2000. The price on this pump
14should reflect the elimination of the tax." The notice shall
15be printed in bold print on a sign that is no smaller than 4
16inches by 8 inches. The sign shall be clearly visible to
17customers. Any retailer who fails to post or maintain a
18required sign through December 31, 2000 is guilty of a petty
19offense for which the fine shall be $500 per day per each
20retail premises where a violation occurs.
21    With respect to gasohol, as defined in the Use Tax Act, the
22tax imposed by this Act applies to (i) 70% of the proceeds of
23sales made on or after January 1, 1990, and before July 1,
242003, (ii) 80% of the proceeds of sales made on or after July
251, 2003 and on or before July 1, 2017, and (iii) 100% of the
26proceeds of sales made thereafter. If, at any time, however,

 

 

HB5732- 22 -LRB102 26939 HLH 38114 b

1the tax under this Act on sales of gasohol, as defined in the
2Use Tax Act, is imposed at the rate of 1.25%, then the tax
3imposed by this Act applies to 100% of the proceeds of sales of
4gasohol made during that time.
5    With respect to majority blended ethanol fuel, as defined
6in the Use Tax Act, the tax imposed by this Act does not apply
7to the proceeds of sales made on or after July 1, 2003 and on
8or before December 31, 2023 but applies to 100% of the proceeds
9of sales made thereafter.
10    With respect to biodiesel blends, as defined in the Use
11Tax Act, with no less than 1% and no more than 10% biodiesel,
12the tax imposed by this Act applies to (i) 80% of the proceeds
13of sales made on or after July 1, 2003 and on or before
14December 31, 2018 and (ii) 100% of the proceeds of sales made
15thereafter. If, at any time, however, the tax under this Act on
16sales of biodiesel blends, as defined in the Use Tax Act, with
17no less than 1% and no more than 10% biodiesel is imposed at
18the rate of 1.25%, then the tax imposed by this Act applies to
19100% of the proceeds of sales of biodiesel blends with no less
20than 1% and no more than 10% biodiesel made during that time.
21    With respect to 100% biodiesel, as defined in the Use Tax
22Act, and biodiesel blends, as defined in the Use Tax Act, with
23more than 10% but no more than 99% biodiesel, the tax imposed
24by this Act does not apply to the proceeds of sales made on or
25after July 1, 2003 and on or before December 31, 2023 but
26applies to 100% of the proceeds of sales made thereafter.

 

 

HB5732- 23 -LRB102 26939 HLH 38114 b

1    Beginning 30 days after the effective date of this
2amendatory Act of the 102nd General Assembly and continuing
3through the last day of the fourth month after the effective
4date of this amendatory Act of the 102nd General Assembly, the
5tax imposed by this Act does not apply to the proceeds of sales
6of: motor fuel, as defined in Section 1.1 of the Motor Fuel Tax
7Law; gasohol, as defined in Section 3-40 of the Use Tax Act;
8majority blended ethanol fuel; biodiesel; and biodiesel
9blends.
10    With respect to food for human consumption that is to be
11consumed off the premises where it is sold (other than
12alcoholic beverages, food consisting of or infused with adult
13use cannabis, soft drinks, and food that has been prepared for
14immediate consumption) and prescription and nonprescription
15medicines, drugs, medical appliances, products classified as
16Class III medical devices by the United States Food and Drug
17Administration that are used for cancer treatment pursuant to
18a prescription, as well as any accessories and components
19related to those devices, modifications to a motor vehicle for
20the purpose of rendering it usable by a person with a
21disability, and insulin, blood sugar testing materials,
22syringes, and needles used by human diabetics, the tax is
23imposed at the rate of 1%. For the purposes of this Section,
24until September 1, 2009: the term "soft drinks" means any
25complete, finished, ready-to-use, non-alcoholic drink, whether
26carbonated or not, including but not limited to soda water,

 

 

HB5732- 24 -LRB102 26939 HLH 38114 b

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

 

 

HB5732- 25 -LRB102 26939 HLH 38114 b

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

 

 

HB5732- 26 -LRB102 26939 HLH 38114 b

1    Beginning on the effective date of this amendatory Act of
2the 98th General Assembly, "prescription and nonprescription
3medicines and drugs" includes medical cannabis purchased from
4a registered dispensing organization under the Compassionate
5Use of Medical Cannabis Program Act.
6    As used in this Section, "adult use cannabis" means
7cannabis subject to tax under the Cannabis Cultivation
8Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
9and does not include cannabis subject to tax under the
10Compassionate Use of Medical Cannabis Program Act.
11(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
12102-4, eff. 4-27-21.)
 
13    Section 25. The Motor Fuel Tax Law is amended by changing
14Section 2 as follows:
 
15    (35 ILCS 505/2)  (from Ch. 120, par. 418)
16    Sec. 2. A tax is imposed on the privilege of operating
17motor vehicles upon the public highways and recreational-type
18watercraft upon the waters of this State.
19    (a) Prior to August 1, 1989, the tax is imposed at the rate
20of 13 cents per gallon on all motor fuel used in motor vehicles
21operating on the public highways and recreational type
22watercraft operating upon the waters of this State. Beginning
23on August 1, 1989 and until January 1, 1990, the rate of the
24tax imposed in this paragraph shall be 16 cents per gallon.

 

 

HB5732- 27 -LRB102 26939 HLH 38114 b

1Beginning January 1, 1990 and until July 1, 2019, the rate of
2tax imposed in this paragraph, including the tax on compressed
3natural gas, shall be 19 cents per gallon. Beginning July 1,
42019, the rate of tax imposed in this paragraph shall be 38
5cents per gallon and increased on July 1 of each subsequent
6year by an amount equal to the percentage increase, if any, in
7the Consumer Price Index for All Urban Consumers for all items
8published by the United States Department of Labor for the 12
9months ending in March of each year. The rate shall be rounded
10to the nearest one-tenth of one cent.
11    (b) Until July 1, 2019, the tax on the privilege of
12operating motor vehicles which use diesel fuel, liquefied
13natural gas, or propane shall be the rate according to
14paragraph (a) plus an additional 2 1/2 cents per gallon.
15Beginning July 1, 2019, the tax on the privilege of operating
16motor vehicles which use diesel fuel, liquefied natural gas,
17or propane shall be the rate according to subsection (a) plus
18an additional 7.5 cents per gallon. "Diesel fuel" is defined
19as any product intended for use or offered for sale as a fuel
20for engines in which the fuel is injected into the combustion
21chamber and ignited by pressure without electric spark.
22    (c) A tax is imposed upon the privilege of engaging in the
23business of selling motor fuel as a retailer or reseller on all
24motor fuel used in motor vehicles operating on the public
25highways and recreational type watercraft operating upon the
26waters of this State: (1) at the rate of 3 cents per gallon on

 

 

HB5732- 28 -LRB102 26939 HLH 38114 b

1motor fuel owned or possessed by such retailer or reseller at
212:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents
3per gallon on motor fuel owned or possessed by such retailer or
4reseller at 12:01 A.M. on January 1, 1990.
5    Retailers and resellers who are subject to this additional
6tax shall be required to inventory such motor fuel and pay this
7additional tax in a manner prescribed by the Department of
8Revenue.
9    The tax imposed in this paragraph (c) shall be in addition
10to all other taxes imposed by the State of Illinois or any unit
11of local government in this State.
12    (d) Except as provided in Section 2a, the collection of a
13tax based on gallonage of gasoline used for the propulsion of
14any aircraft is prohibited on and after October 1, 1979, and
15the collection of a tax based on gallonage of special fuel used
16for the propulsion of any aircraft is prohibited on and after
17December 1, 2019.
18    (e) The collection of a tax, based on gallonage of all
19products commonly or commercially known or sold as 1-K
20kerosene, regardless of its classification or uses, is
21prohibited (i) on and after July 1, 1992 until December 31,
221999, except when the 1-K kerosene is either: (1) delivered
23into bulk storage facilities of a bulk user, or (2) delivered
24directly into the fuel supply tanks of motor vehicles and (ii)
25on and after January 1, 2000. Beginning on January 1, 2000, the
26collection of a tax, based on gallonage of all products

 

 

HB5732- 29 -LRB102 26939 HLH 38114 b

1commonly or commercially known or sold as 1-K kerosene,
2regardless of its classification or uses, is prohibited except
3when the 1-K kerosene is delivered directly into a storage
4tank that is located at a facility that has withdrawal
5facilities that are readily accessible to and are capable of
6dispensing 1-K kerosene into the fuel supply tanks of motor
7vehicles. For purposes of this subsection (e), a facility is
8considered to have withdrawal facilities that are not "readily
9accessible to and capable of dispensing 1-K kerosene into the
10fuel supply tanks of motor vehicles" only if the 1-K kerosene
11is delivered from: (i) a dispenser hose that is short enough so
12that it will not reach the fuel supply tank of a motor vehicle
13or (ii) a dispenser that is enclosed by a fence or other
14physical barrier so that a vehicle cannot pull alongside the
15dispenser to permit fueling.
16    Any person who sells or uses 1-K kerosene for use in motor
17vehicles upon which the tax imposed by this Law has not been
18paid shall be liable for any tax due on the sales or use of 1-K
19kerosene.
20    (f) No tax shall be imposed under this Act beginning 30
21days after the effective date of this amendatory Act of the
22102nd General Assembly and continuing through the last day of
23the fourth month after the effective date of this amendatory
24Act of the 102nd General Assembly. No return is due under this
25Act if the tax is suspended under this subsection (f) for the
26entire period of the return.

 

 

HB5732- 30 -LRB102 26939 HLH 38114 b

1(Source: P.A. 100-9, eff. 7-1-17; 101-10, eff. 6-5-19; 101-32,
2eff. 6-28-19; 101-604, eff. 12-13-19.)
 
3    Section 30. The Illinois Administrative Procedure Act is
4amended by adding Section 5-45.21 as follows:
 
5    (5 ILCS 100/5-45.21 new)
6    Sec. 5-45.21. Emergency rulemaking; motor fuel. To provide
7for the expeditious and timely implementation of this
8amendatory Act of the 102nd General Assembly, emergency rules
9implementing this amendatory Act of the 102nd General Assembly
10may be adopted in accordance with Section 5-45 by the
11Department of Revenue. The adoption of emergency rules
12authorized by Section 5-45 and this Section is deemed to be
13necessary for the public interest, safety, and welfare.
14    This Section is repealed one year after the effective date
15of this amendatory Act of the 102nd General Assembly.
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.