Sen. Elgie R. Sims, Jr.

Filed: 4/8/2021

 

 


 

 


 
10200SB2202sam001LRB102 15832 HLH 24724 a

1
AMENDMENT TO SENATE BILL 2202

2    AMENDMENT NO. ______. Amend Senate Bill 2202 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Use Tax Act is amended by changing
5Sections 2 and 3-10 as follows:
 
6    (35 ILCS 105/2)  (from Ch. 120, par. 439.2)
7    Sec. 2. Definitions.
8    "Use" means the exercise by any person of any right or
9power over tangible personal property incident to the
10ownership of that property, except that it does not include
11the sale of such property in any form as tangible personal
12property in the regular course of business to the extent that
13such property is not first subjected to a use for which it was
14purchased, and does not include the use of such property by its
15owner for demonstration purposes: Provided that the property
16purchased is deemed to be purchased for the purpose of resale,

 

 

10200SB2202sam001- 2 -LRB102 15832 HLH 24724 a

1despite first being used, to the extent to which it is resold
2as an ingredient of an intentionally produced product or
3by-product of manufacturing. "Use" does not mean the
4demonstration use or interim use of tangible personal property
5by a retailer before he sells that tangible personal property.
6For watercraft or aircraft, if the period of demonstration use
7or interim use by the retailer exceeds 18 months, the retailer
8shall pay on the retailers' original cost price the tax
9imposed by this Act, and no credit for that tax is permitted if
10the watercraft or aircraft is subsequently sold by the
11retailer. "Use" does not mean the physical incorporation of
12tangible personal property, to the extent not first subjected
13to a use for which it was purchased, as an ingredient or
14constituent, into other tangible personal property (a) which
15is sold in the regular course of business or (b) which the
16person incorporating such ingredient or constituent therein
17has undertaken at the time of such purchase to cause to be
18transported in interstate commerce to destinations outside the
19State of Illinois: Provided that the property purchased is
20deemed to be purchased for the purpose of resale, despite
21first being used, to the extent to which it is resold as an
22ingredient of an intentionally produced product or by-product
23of manufacturing.
24    "Watercraft" means a Class 2, Class 3, or Class 4
25watercraft as defined in Section 3-2 of the Boat Registration
26and Safety Act, a personal watercraft, or any boat equipped

 

 

10200SB2202sam001- 3 -LRB102 15832 HLH 24724 a

1with an inboard motor.
2    "Purchase at retail" means the acquisition of the
3ownership of or title to tangible personal property through a
4sale at retail.
5    "Purchaser" means anyone who, through a sale at retail,
6acquires the ownership of tangible personal property for a
7valuable consideration.
8    "Sale at retail" means any transfer of the ownership of or
9title to tangible personal property to a purchaser, for the
10purpose of use, and not for the purpose of resale in any form
11as tangible personal property to the extent not first
12subjected to a use for which it was purchased, for a valuable
13consideration: Provided that the property purchased is deemed
14to be purchased for the purpose of resale, despite first being
15used, to the extent to which it is resold as an ingredient of
16an intentionally produced product or by-product of
17manufacturing. For this purpose, slag produced as an incident
18to manufacturing pig iron or steel and sold is considered to be
19an intentionally produced by-product of manufacturing. "Sale
20at retail" includes any such transfer made for resale unless
21made in compliance with Section 2c of the Retailers'
22Occupation Tax Act, as incorporated by reference into Section
2312 of this Act. Transactions whereby the possession of the
24property is transferred but the seller retains the title as
25security for payment of the selling price are sales.
26    "Sale at retail" shall also be construed to include any

 

 

10200SB2202sam001- 4 -LRB102 15832 HLH 24724 a

1Illinois florist's sales transaction in which the purchase
2order is received in Illinois by a florist and the sale is for
3use or consumption, but the Illinois florist has a florist in
4another state deliver the property to the purchaser or the
5purchaser's donee in such other state.
6    Nonreusable tangible personal property that is used by
7persons engaged in the business of operating a restaurant,
8cafeteria, or drive-in is a sale for resale when it is
9transferred to customers in the ordinary course of business as
10part of the sale of food or beverages and is used to deliver,
11package, or consume food or beverages, regardless of where
12consumption of the food or beverages occurs. Examples of those
13items include, but are not limited to nonreusable, paper and
14plastic cups, plates, baskets, boxes, sleeves, buckets or
15other containers, utensils, straws, placemats, napkins, doggie
16bags, and wrapping or packaging materials that are transferred
17to customers as part of the sale of food or beverages in the
18ordinary course of business.
19    The purchase, employment and transfer of such tangible
20personal property as newsprint and ink for the primary purpose
21of conveying news (with or without other information) is not a
22purchase, use or sale of tangible personal property.
23    "Selling price" means the consideration for a sale valued
24in money whether received in money or otherwise, including
25cash, credits, property other than as hereinafter provided,
26and services, but, prior to January 1, 2020, not including the

 

 

10200SB2202sam001- 5 -LRB102 15832 HLH 24724 a

1value of or credit given for traded-in tangible personal
2property where the item that is traded-in is of like kind and
3character as that which is being sold; beginning January 1,
42020, "selling price" includes the portion of the value of or
5credit given for traded-in motor vehicles of the First
6Division as defined in Section 1-146 of the Illinois Vehicle
7Code of like kind and character as that which is being sold
8that exceeds $10,000. "Selling price" shall be determined
9without any deduction on account of the cost of the property
10sold, the cost of materials used, labor or service cost or any
11other expense whatsoever, but does not include interest or
12finance charges which appear as separate items on the bill of
13sale or sales contract nor charges that are added to prices by
14sellers on account of the seller's tax liability under the
15Retailers' Occupation Tax Act, or on account of the seller's
16duty to collect, from the purchaser, the tax that is imposed by
17this Act, or, except as otherwise provided with respect to any
18cigarette tax imposed by a home rule unit, on account of the
19seller's tax liability under any local occupation tax
20administered by the Department, or, except as otherwise
21provided with respect to any cigarette tax imposed by a home
22rule unit on account of the seller's duty to collect, from the
23purchasers, the tax that is imposed under any local use tax
24administered by the Department. Effective December 1, 1985,
25"selling price" shall include charges that are added to prices
26by sellers on account of the seller's tax liability under the

 

 

10200SB2202sam001- 6 -LRB102 15832 HLH 24724 a

1Cigarette Tax Act, on account of the seller's duty to collect,
2from the purchaser, the tax imposed under the Cigarette Use
3Tax Act, and on account of the seller's duty to collect, from
4the purchaser, any cigarette tax imposed by a home rule unit.
5    Notwithstanding any law to the contrary, for any motor
6vehicle, as defined in Section 1-146 of the Vehicle Code, that
7is sold on or after January 1, 2015 for the purpose of leasing
8the vehicle for a defined period that is longer than one year
9and (1) is a motor vehicle of the second division that: (A) is
10a self-contained motor vehicle designed or permanently
11converted to provide living quarters for recreational,
12camping, or travel use, with direct walk through access to the
13living quarters from the driver's seat; (B) is of the van
14configuration designed for the transportation of not less than
157 nor more than 16 passengers; or (C) has a gross vehicle
16weight rating of 8,000 pounds or less or (2) is a motor vehicle
17of the first division, "selling price" or "amount of sale"
18means the consideration received by the lessor pursuant to the
19lease contract, including amounts due at lease signing and all
20monthly or other regular payments charged over the term of the
21lease. Also included in the selling price is any amount
22received by the lessor from the lessee for the leased vehicle
23that is not calculated at the time the lease is executed,
24including, but not limited to, excess mileage charges and
25charges for excess wear and tear. For sales that occur in
26Illinois, with respect to any amount received by the lessor

 

 

10200SB2202sam001- 7 -LRB102 15832 HLH 24724 a

1from the lessee for the leased vehicle that is not calculated
2at the time the lease is executed, the lessor who purchased the
3motor vehicle does not incur the tax imposed by the Use Tax Act
4on those amounts, and the retailer who makes the retail sale of
5the motor vehicle to the lessor is not required to collect the
6tax imposed by this Act or to pay the tax imposed by the
7Retailers' Occupation Tax Act on those amounts. However, the
8lessor who purchased the motor vehicle assumes the liability
9for reporting and paying the tax on those amounts directly to
10the Department in the same form (Illinois Retailers'
11Occupation Tax, and local retailers' occupation taxes, if
12applicable) in which the retailer would have reported and paid
13such tax if the retailer had accounted for the tax to the
14Department. For amounts received by the lessor from the lessee
15that are not calculated at the time the lease is executed, the
16lessor must file the return and pay the tax to the Department
17by the due date otherwise required by this Act for returns
18other than transaction returns. If the retailer is entitled
19under this Act to a discount for collecting and remitting the
20tax imposed under this Act to the Department with respect to
21the sale of the motor vehicle to the lessor, then the right to
22the discount provided in this Act shall be transferred to the
23lessor with respect to the tax paid by the lessor for any
24amount received by the lessor from the lessee for the leased
25vehicle that is not calculated at the time the lease is
26executed; provided that the discount is only allowed if the

 

 

10200SB2202sam001- 8 -LRB102 15832 HLH 24724 a

1return is timely filed and for amounts timely paid. The
2"selling price" of a motor vehicle that is sold on or after
3January 1, 2015 for the purpose of leasing for a defined period
4of longer than one year shall not be reduced by the value of or
5credit given for traded-in tangible personal property owned by
6the lessor, nor shall it be reduced by the value of or credit
7given for traded-in tangible personal property owned by the
8lessee, regardless of whether the trade-in value thereof is
9assigned by the lessee to the lessor. In the case of a motor
10vehicle that is sold for the purpose of leasing for a defined
11period of longer than one year, the sale occurs at the time of
12the delivery of the vehicle, regardless of the due date of any
13lease payments. A lessor who incurs a Retailers' Occupation
14Tax liability on the sale of a motor vehicle coming off lease
15may not take a credit against that liability for the Use Tax
16the lessor paid upon the purchase of the motor vehicle (or for
17any tax the lessor paid with respect to any amount received by
18the lessor from the lessee for the leased vehicle that was not
19calculated at the time the lease was executed) if the selling
20price of the motor vehicle at the time of purchase was
21calculated using the definition of "selling price" as defined
22in this paragraph. Notwithstanding any other provision of this
23Act to the contrary, lessors shall file all returns and make
24all payments required under this paragraph to the Department
25by electronic means in the manner and form as required by the
26Department. This paragraph does not apply to leases of motor

 

 

10200SB2202sam001- 9 -LRB102 15832 HLH 24724 a

1vehicles for which, at the time the lease is entered into, the
2term of the lease is not a defined period, including leases
3with a defined initial period with the option to continue the
4lease on a month-to-month or other basis beyond the initial
5defined period.
6    The phrase "like kind and character" shall be liberally
7construed (including but not limited to any form of motor
8vehicle for any form of motor vehicle, or any kind of farm or
9agricultural implement for any other kind of farm or
10agricultural implement), while not including a kind of item
11which, if sold at retail by that retailer, would be exempt from
12retailers' occupation tax and use tax as an isolated or
13occasional sale.
14    "Department" means the Department of Revenue.
15    "Person" means any natural individual, firm, partnership,
16association, joint stock company, joint adventure, public or
17private corporation, limited liability company, or a receiver,
18executor, trustee, guardian or other representative appointed
19by order of any court.
20    "Retailer" means and includes every person engaged in the
21business of making sales at retail as defined in this Section.
22    A person who holds himself or herself out as being engaged
23(or who habitually engages) in selling tangible personal
24property at retail is a retailer hereunder with respect to
25such sales (and not primarily in a service occupation)
26notwithstanding the fact that such person designs and produces

 

 

10200SB2202sam001- 10 -LRB102 15832 HLH 24724 a

1such tangible personal property on special order for the
2purchaser and in such a way as to render the property of value
3only to such purchaser, if such tangible personal property so
4produced on special order serves substantially the same
5function as stock or standard items of tangible personal
6property that are sold at retail.
7    A person whose activities are organized and conducted
8primarily as a not-for-profit service enterprise, and who
9engages in selling tangible personal property at retail
10(whether to the public or merely to members and their guests)
11is a retailer with respect to such transactions, excepting
12only a person organized and operated exclusively for
13charitable, religious or educational purposes either (1), to
14the extent of sales by such person to its members, students,
15patients or inmates of tangible personal property to be used
16primarily for the purposes of such person, or (2), to the
17extent of sales by such person of tangible personal property
18which is not sold or offered for sale by persons organized for
19profit. The selling of school books and school supplies by
20schools at retail to students is not "primarily for the
21purposes of" the school which does such selling. This
22paragraph does not apply to nor subject to taxation occasional
23dinners, social or similar activities of a person organized
24and operated exclusively for charitable, religious or
25educational purposes, whether or not such activities are open
26to the public.

 

 

10200SB2202sam001- 11 -LRB102 15832 HLH 24724 a

1    A person who is the recipient of a grant or contract under
2Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
3serves meals to participants in the federal Nutrition Program
4for the Elderly in return for contributions established in
5amount by the individual participant pursuant to a schedule of
6suggested fees as provided for in the federal Act is not a
7retailer under this Act with respect to such transactions.
8    Persons who engage in the business of transferring
9tangible personal property upon the redemption of trading
10stamps are retailers hereunder when engaged in such business.
11    The isolated or occasional sale of tangible personal
12property at retail by a person who does not hold himself out as
13being engaged (or who does not habitually engage) in selling
14such tangible personal property at retail or a sale through a
15bulk vending machine does not make such person a retailer
16hereunder. However, any person who is engaged in a business
17which is not subject to the tax imposed by the Retailers'
18Occupation Tax Act because of involving the sale of or a
19contract to sell real estate or a construction contract to
20improve real estate, but who, in the course of conducting such
21business, transfers tangible personal property to users or
22consumers in the finished form in which it was purchased, and
23which does not become real estate, under any provision of a
24construction contract or real estate sale or real estate sales
25agreement entered into with some other person arising out of
26or because of such nontaxable business, is a retailer to the

 

 

10200SB2202sam001- 12 -LRB102 15832 HLH 24724 a

1extent of the value of the tangible personal property so
2transferred. If, in such transaction, a separate charge is
3made for the tangible personal property so transferred, the
4value of such property, for the purposes of this Act, is the
5amount so separately charged, but not less than the cost of
6such property to the transferor; if no separate charge is
7made, the value of such property, for the purposes of this Act,
8is the cost to the transferor of such tangible personal
9property.
10    "Retailer maintaining a place of business in this State",
11or any like term, means and includes any of the following
12retailers:
13        (1) A retailer having or maintaining within this
14    State, directly or by a subsidiary, an office,
15    distribution house, sales house, warehouse or other place
16    of business, or any agent or other representative
17    operating within this State under the authority of the
18    retailer or its subsidiary, irrespective of whether such
19    place of business or agent or other representative is
20    located here permanently or temporarily, or whether such
21    retailer or subsidiary is licensed to do business in this
22    State. However, the ownership of property that is located
23    at the premises of a printer with which the retailer has
24    contracted for printing and that consists of the final
25    printed product, property that becomes a part of the final
26    printed product, or copy from which the printed product is

 

 

10200SB2202sam001- 13 -LRB102 15832 HLH 24724 a

1    produced shall not result in the retailer being deemed to
2    have or maintain an office, distribution house, sales
3    house, warehouse, or other place of business within this
4    State.
5        (1.1) A retailer having a contract with a person
6    located in this State under which the person, for a
7    commission or other consideration based upon the sale of
8    tangible personal property by the retailer, directly or
9    indirectly refers potential customers to the retailer by
10    providing to the potential customers a promotional code or
11    other mechanism that allows the retailer to track
12    purchases referred by such persons. Examples of mechanisms
13    that allow the retailer to track purchases referred by
14    such persons include but are not limited to the use of a
15    link on the person's Internet website, promotional codes
16    distributed through the person's hand-delivered or mailed
17    material, and promotional codes distributed by the person
18    through radio or other broadcast media. The provisions of
19    this paragraph (1.1) shall apply only if the cumulative
20    gross receipts from sales of tangible personal property by
21    the retailer to customers who are referred to the retailer
22    by all persons in this State under such contracts exceed
23    $10,000 during the preceding 4 quarterly periods ending on
24    the last day of March, June, September, and December. A
25    retailer meeting the requirements of this paragraph (1.1)
26    shall be presumed to be maintaining a place of business in

 

 

10200SB2202sam001- 14 -LRB102 15832 HLH 24724 a

1    this State but may rebut this presumption by submitting
2    proof that the referrals or other activities pursued
3    within this State by such persons were not sufficient to
4    meet the nexus standards of the United States Constitution
5    during the preceding 4 quarterly periods.
6        (1.2) Beginning July 1, 2011, a retailer having a
7    contract with a person located in this State under which:
8            (A) the retailer sells the same or substantially
9        similar line of products as the person located in this
10        State and does so using an identical or substantially
11        similar name, trade name, or trademark as the person
12        located in this State; and
13            (B) the retailer provides a commission or other
14        consideration to the person located in this State
15        based upon the sale of tangible personal property by
16        the retailer.
17        The provisions of this paragraph (1.2) shall apply
18    only if the cumulative gross receipts from sales of
19    tangible personal property by the retailer to customers in
20    this State under all such contracts exceed $10,000 during
21    the preceding 4 quarterly periods ending on the last day
22    of March, June, September, and December.
23        (2) (Blank).
24        (3) (Blank).
25        (4) (Blank).
26        (5) (Blank).

 

 

10200SB2202sam001- 15 -LRB102 15832 HLH 24724 a

1        (6) (Blank).
2        (7) (Blank).
3        (8) (Blank).
4        (9) Beginning October 1, 2018, a retailer making sales
5    of tangible personal property to purchasers in Illinois
6    from outside of Illinois if:
7            (A) the cumulative gross receipts from sales of
8        tangible personal property to purchasers in Illinois
9        are $100,000 or more; or
10            (B) the retailer enters into 200 or more separate
11        transactions for the sale of tangible personal
12        property to purchasers in Illinois.
13        The retailer shall determine on a quarterly basis,
14    ending on the last day of March, June, September, and
15    December, whether he or she meets the criteria of either
16    subparagraph (A) or (B) of this paragraph (9) for the
17    preceding 12-month period. If the retailer meets the
18    threshold of either subparagraph (A) or (B) for a 12-month
19    period, he or she is considered a retailer maintaining a
20    place of business in this State and is required to collect
21    and remit the tax imposed under this Act and file returns
22    for one year. At the end of that one-year period, the
23    retailer shall determine whether he or she met the
24    threshold of either subparagraph (A) or (B) during the
25    preceding 12-month period. If the retailer met the
26    criteria in either subparagraph (A) or (B) for the

 

 

10200SB2202sam001- 16 -LRB102 15832 HLH 24724 a

1    preceding 12-month period, he or she is considered a
2    retailer maintaining a place of business in this State and
3    is required to collect and remit the tax imposed under
4    this Act and file returns for the subsequent year. If at
5    the end of a one-year period a retailer that was required
6    to collect and remit the tax imposed under this Act
7    determines that he or she did not meet the threshold in
8    either subparagraph (A) or (B) during the preceding
9    12-month period, the retailer shall subsequently determine
10    on a quarterly basis, ending on the last day of March,
11    June, September, and December, whether he or she meets the
12    threshold of either subparagraph (A) or (B) for the
13    preceding 12-month period.
14        Beginning January 1, 2020, neither the gross receipts
15    from nor the number of separate transactions for sales of
16    tangible personal property to purchasers in Illinois that
17    a retailer makes through a marketplace facilitator and for
18    which the retailer has received a certification from the
19    marketplace facilitator pursuant to Section 2d of this Act
20    shall be included for purposes of determining whether he
21    or she has met the thresholds of this paragraph (9).
22        (10) Beginning January 1, 2020, a marketplace
23    facilitator that meets a threshold set forth in subsection
24    (b) of Section 2d of this Act.
25    "Bulk vending machine" means a vending machine, containing
26unsorted confections, nuts, toys, or other items designed

 

 

10200SB2202sam001- 17 -LRB102 15832 HLH 24724 a

1primarily to be used or played with by children which, when a
2coin or coins of a denomination not larger than $0.50 are
3inserted, are dispensed in equal portions, at random and
4without selection by the customer.
5    For the purposes of Section 3-10, "manufactured home"
6means a factory-assembled, completely integrated structure
7designed for permanent habitation that:
8        (1) is designed to be used as a single-family dwelling
9    which complies with the standards established under Title
10    42 of the United States Code;
11        (2) is transportable in one or more sections;
12        (3) is installed according to the manufacturer's
13    instructions and connected to residential utilities for
14    year-round occupancy; and
15        (4) contains an area of at least 320 square feet.
16(Source: P.A. 100-587, eff. 6-4-18; 101-9, eff. 6-5-19;
17101-31, eff. 1-1-20; 101-604, eff. 1-1-20.)
 
18    (35 ILCS 105/3-10)
19    Sec. 3-10. Rate of tax. Unless otherwise provided in this
20Section, the tax imposed by this Act is at the rate of 6.25% of
21either the selling price or the fair market value, if any, of
22the tangible personal property. In all cases where property
23functionally used or consumed is the same as the property that
24was purchased at retail, then the tax is imposed on the selling
25price of the property. In all cases where property

 

 

10200SB2202sam001- 18 -LRB102 15832 HLH 24724 a

1functionally used or consumed is a by-product or waste product
2that has been refined, manufactured, or produced from property
3purchased at retail, then the tax is imposed on the lower of
4the fair market value, if any, of the specific property so used
5in this State or on the selling price of the property purchased
6at retail. For purposes of this Section "fair market value"
7means the price at which property would change hands between a
8willing buyer and a willing seller, neither being under any
9compulsion to buy or sell and both having reasonable knowledge
10of the relevant facts. The fair market value shall be
11established by Illinois sales by the taxpayer of the same
12property as that functionally used or consumed, or if there
13are no such sales by the taxpayer, then comparable sales or
14purchases of property of like kind and character in Illinois.
15    Beginning on July 1, 2000 and through December 31, 2000,
16with respect to motor fuel, as defined in Section 1.1 of the
17Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
18the Use Tax Act, the tax is imposed at the rate of 1.25%.
19    Beginning on August 6, 2010 through August 15, 2010, with
20respect to sales tax holiday items as defined in Section 3-6 of
21this Act, the tax is imposed at the rate of 1.25%.
22    With respect to gasohol, the tax imposed by this Act
23applies to (i) 70% of the proceeds of sales made on or after
24January 1, 1990, and before July 1, 2003, (ii) 80% of the
25proceeds of sales made on or after July 1, 2003 and on or
26before July 1, 2017, and (iii) 100% of the proceeds of sales

 

 

10200SB2202sam001- 19 -LRB102 15832 HLH 24724 a

1made thereafter. If, at any time, however, the tax under this
2Act on sales of gasohol is imposed at the rate of 1.25%, then
3the tax imposed by this Act applies to 100% of the proceeds of
4sales of gasohol made during that time.
5    With respect to majority blended ethanol fuel, the tax
6imposed by this Act does not apply to the proceeds of sales
7made on or after July 1, 2003 and on or before December 31,
82023 but applies to 100% of the proceeds of sales made
9thereafter.
10    With respect to biodiesel blends with no less than 1% and
11no more than 10% biodiesel, the tax imposed by this Act applies
12to (i) 80% of the proceeds of sales made on or after July 1,
132003 and on or before December 31, 2018 and (ii) 100% of the
14proceeds of sales made thereafter. If, at any time, however,
15the tax under this Act on sales of biodiesel blends with no
16less than 1% and no more than 10% biodiesel is imposed at the
17rate of 1.25%, then the tax imposed by this Act applies to 100%
18of the proceeds of sales of biodiesel blends with no less than
191% and no more than 10% biodiesel made during that time.
20    With respect to 100% biodiesel and biodiesel blends with
21more than 10% but no more than 99% biodiesel, the tax imposed
22by this Act does not apply to the proceeds of sales made on or
23after July 1, 2003 and on or before December 31, 2023 but
24applies to 100% of the proceeds of sales made thereafter.
25    On and after January 1, 2022, with respect to the sale of a
26manufactured home, as defined in Section 2, where (i) the

 

 

10200SB2202sam001- 20 -LRB102 15832 HLH 24724 a

1purchase is the first purchase of the manufactured home for
2use as a dwelling and (ii) the taxpayer certifies to the
3Department that, within 30 days after the sale, the
4manufactured home will be affixed to a permanent foundation in
5the State so that the manufactured home is deemed to be real
6property under the Conveyance and Encumbrance of Manufactured
7Homes as Real Property and Severance Act, the tax imposed by
8this Act applies to 50% of the proceeds of sales. The
9Department may adopt rules to implement the incentive under
10this paragraph, including rules to require the submission or
11attachment of documentation of eligibility to receive the
12incentive. This paragraph is exempt from the provisions of
13Section 3-90.
14    With respect to food for human consumption that is to be
15consumed off the premises where it is sold (other than
16alcoholic beverages, food consisting of or infused with adult
17use cannabis, soft drinks, and food that has been prepared for
18immediate consumption) and prescription and nonprescription
19medicines, drugs, medical appliances, products classified as
20Class III medical devices by the United States Food and Drug
21Administration that are used for cancer treatment pursuant to
22a prescription, as well as any accessories and components
23related to those devices, modifications to a motor vehicle for
24the purpose of rendering it usable by a person with a
25disability, and insulin, urine testing materials, syringes,
26and needles used by diabetics, for human use, the tax is

 

 

10200SB2202sam001- 21 -LRB102 15832 HLH 24724 a

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

 

 

10200SB2202sam001- 22 -LRB102 15832 HLH 24724 a

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

 

 

10200SB2202sam001- 23 -LRB102 15832 HLH 24724 a

1        (A) A "Drug Facts" panel; or
2        (B) A statement of the "active ingredient(s)" with a
3    list of those ingredients contained in the compound,
4    substance or preparation.
5    Beginning on the effective date of this amendatory Act of
6the 98th General Assembly, "prescription and nonprescription
7medicines and drugs" includes medical cannabis purchased from
8a registered dispensing organization under the Compassionate
9Use of Medical Cannabis Program Act.
10    As used in this Section, "adult use cannabis" means
11cannabis subject to tax under the Cannabis Cultivation
12Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
13and does not include cannabis subject to tax under the
14Compassionate Use of Medical Cannabis Program Act.
15    If the property that is purchased at retail from a
16retailer is acquired outside Illinois and used outside
17Illinois before being brought to Illinois for use here and is
18taxable under this Act, the "selling price" on which the tax is
19computed shall be reduced by an amount that represents a
20reasonable allowance for depreciation for the period of prior
21out-of-state use.
22(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
23101-593, eff. 12-4-19.)
 
24    Section 10. The Retailers' Occupation Tax Act is amended
25by changing Sections 1 and 2-10 as follows:
 

 

 

10200SB2202sam001- 24 -LRB102 15832 HLH 24724 a

1    (35 ILCS 120/1)  (from Ch. 120, par. 440)
2    Sec. 1. Definitions. "Sale at retail" means any transfer
3of the ownership of or title to tangible personal property to a
4purchaser, for the purpose of use or consumption, and not for
5the purpose of resale in any form as tangible personal
6property to the extent not first subjected to a use for which
7it was purchased, for a valuable consideration: Provided that
8the property purchased is deemed to be purchased for the
9purpose of resale, despite first being used, to the extent to
10which it is resold as an ingredient of an intentionally
11produced product or byproduct of manufacturing. For this
12purpose, slag produced as an incident to manufacturing pig
13iron or steel and sold is considered to be an intentionally
14produced byproduct of manufacturing. Transactions whereby the
15possession of the property is transferred but the seller
16retains the title as security for payment of the selling price
17shall be deemed to be sales.
18    "Sale at retail" shall be construed to include any
19transfer of the ownership of or title to tangible personal
20property to a purchaser, for use or consumption by any other
21person to whom such purchaser may transfer the tangible
22personal property without a valuable consideration, and to
23include any transfer, whether made for or without a valuable
24consideration, for resale in any form as tangible personal
25property unless made in compliance with Section 2c of this

 

 

10200SB2202sam001- 25 -LRB102 15832 HLH 24724 a

1Act.
2    Sales of tangible personal property, which property, to
3the extent not first subjected to a use for which it was
4purchased, as an ingredient or constituent, goes into and
5forms a part of tangible personal property subsequently the
6subject of a "Sale at retail", are not sales at retail as
7defined in this Act: Provided that the property purchased is
8deemed to be purchased for the purpose of resale, despite
9first being used, to the extent to which it is resold as an
10ingredient of an intentionally produced product or byproduct
11of manufacturing.
12    "Sale at retail" shall be construed to include any
13Illinois florist's sales transaction in which the purchase
14order is received in Illinois by a florist and the sale is for
15use or consumption, but the Illinois florist has a florist in
16another state deliver the property to the purchaser or the
17purchaser's donee in such other state.
18    Nonreusable tangible personal property that is used by
19persons engaged in the business of operating a restaurant,
20cafeteria, or drive-in is a sale for resale when it is
21transferred to customers in the ordinary course of business as
22part of the sale of food or beverages and is used to deliver,
23package, or consume food or beverages, regardless of where
24consumption of the food or beverages occurs. Examples of those
25items include, but are not limited to nonreusable, paper and
26plastic cups, plates, baskets, boxes, sleeves, buckets or

 

 

10200SB2202sam001- 26 -LRB102 15832 HLH 24724 a

1other containers, utensils, straws, placemats, napkins, doggie
2bags, and wrapping or packaging materials that are transferred
3to customers as part of the sale of food or beverages in the
4ordinary course of business.
5    The purchase, employment and transfer of such tangible
6personal property as newsprint and ink for the primary purpose
7of conveying news (with or without other information) is not a
8purchase, use or sale of tangible personal property.
9    A person whose activities are organized and conducted
10primarily as a not-for-profit service enterprise, and who
11engages in selling tangible personal property at retail
12(whether to the public or merely to members and their guests)
13is engaged in the business of selling tangible personal
14property at retail with respect to such transactions,
15excepting only a person organized and operated exclusively for
16charitable, religious or educational purposes either (1), to
17the extent of sales by such person to its members, students,
18patients or inmates of tangible personal property to be used
19primarily for the purposes of such person, or (2), to the
20extent of sales by such person of tangible personal property
21which is not sold or offered for sale by persons organized for
22profit. The selling of school books and school supplies by
23schools at retail to students is not "primarily for the
24purposes of" the school which does such selling. The
25provisions of this paragraph shall not apply to nor subject to
26taxation occasional dinners, socials or similar activities of

 

 

10200SB2202sam001- 27 -LRB102 15832 HLH 24724 a

1a person organized and operated exclusively for charitable,
2religious or educational purposes, whether or not such
3activities are open to the public.
4    A person who is the recipient of a grant or contract under
5Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
6serves meals to participants in the federal Nutrition Program
7for the Elderly in return for contributions established in
8amount by the individual participant pursuant to a schedule of
9suggested fees as provided for in the federal Act is not
10engaged in the business of selling tangible personal property
11at retail with respect to such transactions.
12    "Purchaser" means anyone who, through a sale at retail,
13acquires the ownership of or title to tangible personal
14property for a valuable consideration.
15    "Reseller of motor fuel" means any person engaged in the
16business of selling or delivering or transferring title of
17motor fuel to another person other than for use or
18consumption. No person shall act as a reseller of motor fuel
19within this State without first being registered as a reseller
20pursuant to Section 2c or a retailer pursuant to Section 2a.
21    "Selling price" or the "amount of sale" means the
22consideration for a sale valued in money whether received in
23money or otherwise, including cash, credits, property, other
24than as hereinafter provided, and services, but, prior to
25January 1, 2020, not including the value of or credit given for
26traded-in tangible personal property where the item that is

 

 

10200SB2202sam001- 28 -LRB102 15832 HLH 24724 a

1traded-in is of like kind and character as that which is being
2sold; beginning January 1, 2020, "selling price" includes the
3portion of the value of or credit given for traded-in motor
4vehicles of the First Division as defined in Section 1-146 of
5the Illinois Vehicle Code of like kind and character as that
6which is being sold that exceeds $10,000. "Selling price"
7shall be determined without any deduction on account of the
8cost of the property sold, the cost of materials used, labor or
9service cost or any other expense whatsoever, but does not
10include charges that are added to prices by sellers on account
11of the seller's tax liability under this Act, or on account of
12the seller's duty to collect, from the purchaser, the tax that
13is imposed by the Use Tax Act, or, except as otherwise provided
14with respect to any cigarette tax imposed by a home rule unit,
15on account of the seller's tax liability under any local
16occupation tax administered by the Department, or, except as
17otherwise provided with respect to any cigarette tax imposed
18by a home rule unit on account of the seller's duty to collect,
19from the purchasers, the tax that is imposed under any local
20use tax administered by the Department. Effective December 1,
211985, "selling price" shall include charges that are added to
22prices by sellers on account of the seller's tax liability
23under the Cigarette Tax Act, on account of the sellers' duty to
24collect, from the purchaser, the tax imposed under the
25Cigarette Use Tax Act, and on account of the seller's duty to
26collect, from the purchaser, any cigarette tax imposed by a

 

 

10200SB2202sam001- 29 -LRB102 15832 HLH 24724 a

1home rule unit.
2    Notwithstanding any law to the contrary, for any motor
3vehicle, as defined in Section 1-146 of the Vehicle Code, that
4is sold on or after January 1, 2015 for the purpose of leasing
5the vehicle for a defined period that is longer than one year
6and (1) is a motor vehicle of the second division that: (A) is
7a self-contained motor vehicle designed or permanently
8converted to provide living quarters for recreational,
9camping, or travel use, with direct walk through access to the
10living quarters from the driver's seat; (B) is of the van
11configuration designed for the transportation of not less than
127 nor more than 16 passengers; or (C) has a gross vehicle
13weight rating of 8,000 pounds or less or (2) is a motor vehicle
14of the first division, "selling price" or "amount of sale"
15means the consideration received by the lessor pursuant to the
16lease contract, including amounts due at lease signing and all
17monthly or other regular payments charged over the term of the
18lease. Also included in the selling price is any amount
19received by the lessor from the lessee for the leased vehicle
20that is not calculated at the time the lease is executed,
21including, but not limited to, excess mileage charges and
22charges for excess wear and tear. For sales that occur in
23Illinois, with respect to any amount received by the lessor
24from the lessee for the leased vehicle that is not calculated
25at the time the lease is executed, the lessor who purchased the
26motor vehicle does not incur the tax imposed by the Use Tax Act

 

 

10200SB2202sam001- 30 -LRB102 15832 HLH 24724 a

1on those amounts, and the retailer who makes the retail sale of
2the motor vehicle to the lessor is not required to collect the
3tax imposed by the Use Tax Act or to pay the tax imposed by
4this Act on those amounts. However, the lessor who purchased
5the motor vehicle assumes the liability for reporting and
6paying the tax on those amounts directly to the Department in
7the same form (Illinois Retailers' Occupation Tax, and local
8retailers' occupation taxes, if applicable) in which the
9retailer would have reported and paid such tax if the retailer
10had accounted for the tax to the Department. For amounts
11received by the lessor from the lessee that are not calculated
12at the time the lease is executed, the lessor must file the
13return and pay the tax to the Department by the due date
14otherwise required by this Act for returns other than
15transaction returns. If the retailer is entitled under this
16Act to a discount for collecting and remitting the tax imposed
17under this Act to the Department with respect to the sale of
18the motor vehicle to the lessor, then the right to the discount
19provided in this Act shall be transferred to the lessor with
20respect to the tax paid by the lessor for any amount received
21by the lessor from the lessee for the leased vehicle that is
22not calculated at the time the lease is executed; provided
23that the discount is only allowed if the return is timely filed
24and for amounts timely paid. The "selling price" of a motor
25vehicle that is sold on or after January 1, 2015 for the
26purpose of leasing for a defined period of longer than one year

 

 

10200SB2202sam001- 31 -LRB102 15832 HLH 24724 a

1shall not be reduced by the value of or credit given for
2traded-in tangible personal property owned by the lessor, nor
3shall it be reduced by the value of or credit given for
4traded-in tangible personal property owned by the lessee,
5regardless of whether the trade-in value thereof is assigned
6by the lessee to the lessor. In the case of a motor vehicle
7that is sold for the purpose of leasing for a defined period of
8longer than one year, the sale occurs at the time of the
9delivery of the vehicle, regardless of the due date of any
10lease payments. A lessor who incurs a Retailers' Occupation
11Tax liability on the sale of a motor vehicle coming off lease
12may not take a credit against that liability for the Use Tax
13the lessor paid upon the purchase of the motor vehicle (or for
14any tax the lessor paid with respect to any amount received by
15the lessor from the lessee for the leased vehicle that was not
16calculated at the time the lease was executed) if the selling
17price of the motor vehicle at the time of purchase was
18calculated using the definition of "selling price" as defined
19in this paragraph. Notwithstanding any other provision of this
20Act to the contrary, lessors shall file all returns and make
21all payments required under this paragraph to the Department
22by electronic means in the manner and form as required by the
23Department. This paragraph does not apply to leases of motor
24vehicles for which, at the time the lease is entered into, the
25term of the lease is not a defined period, including leases
26with a defined initial period with the option to continue the

 

 

10200SB2202sam001- 32 -LRB102 15832 HLH 24724 a

1lease on a month-to-month or other basis beyond the initial
2defined period.
3    The phrase "like kind and character" shall be liberally
4construed (including but not limited to any form of motor
5vehicle for any form of motor vehicle, or any kind of farm or
6agricultural implement for any other kind of farm or
7agricultural implement), while not including a kind of item
8which, if sold at retail by that retailer, would be exempt from
9retailers' occupation tax and use tax as an isolated or
10occasional sale.
11    "Gross receipts" from the sales of tangible personal
12property at retail means the total selling price or the amount
13of such sales, as hereinbefore defined. In the case of charge
14and time sales, the amount thereof shall be included only as
15and when payments are received by the seller. Receipts or
16other consideration derived by a seller from the sale,
17transfer or assignment of accounts receivable to a wholly
18owned subsidiary will not be deemed payments prior to the time
19the purchaser makes payment on such accounts.
20    "Department" means the Department of Revenue.
21    "Person" means any natural individual, firm, partnership,
22association, joint stock company, joint adventure, public or
23private corporation, limited liability company, or a receiver,
24executor, trustee, guardian or other representative appointed
25by order of any court.
26    The isolated or occasional sale of tangible personal

 

 

10200SB2202sam001- 33 -LRB102 15832 HLH 24724 a

1property at retail by a person who does not hold himself out as
2being engaged (or who does not habitually engage) in selling
3such tangible personal property at retail, or a sale through a
4bulk vending machine, does not constitute engaging in a
5business of selling such tangible personal property at retail
6within the meaning of this Act; provided that any person who is
7engaged in a business which is not subject to the tax imposed
8by this Act because of involving the sale of or a contract to
9sell real estate or a construction contract to improve real
10estate or a construction contract to engineer, install, and
11maintain an integrated system of products, but who, in the
12course of conducting such business, transfers tangible
13personal property to users or consumers in the finished form
14in which it was purchased, and which does not become real
15estate or was not engineered and installed, under any
16provision of a construction contract or real estate sale or
17real estate sales agreement entered into with some other
18person arising out of or because of such nontaxable business,
19is engaged in the business of selling tangible personal
20property at retail to the extent of the value of the tangible
21personal property so transferred. If, in such a transaction, a
22separate charge is made for the tangible personal property so
23transferred, the value of such property, for the purpose of
24this Act, shall be the amount so separately charged, but not
25less than the cost of such property to the transferor; if no
26separate charge is made, the value of such property, for the

 

 

10200SB2202sam001- 34 -LRB102 15832 HLH 24724 a

1purposes of this Act, is the cost to the transferor of such
2tangible personal property. Construction contracts for the
3improvement of real estate consisting of engineering,
4installation, and maintenance of voice, data, video, security,
5and all telecommunication systems do not constitute engaging
6in a business of selling tangible personal property at retail
7within the meaning of this Act if they are sold at one
8specified contract price.
9    A person who holds himself or herself out as being engaged
10(or who habitually engages) in selling tangible personal
11property at retail is a person engaged in the business of
12selling tangible personal property at retail hereunder with
13respect to such sales (and not primarily in a service
14occupation) notwithstanding the fact that such person designs
15and produces such tangible personal property on special order
16for the purchaser and in such a way as to render the property
17of value only to such purchaser, if such tangible personal
18property so produced on special order serves substantially the
19same function as stock or standard items of tangible personal
20property that are sold at retail.
21    Persons who engage in the business of transferring
22tangible personal property upon the redemption of trading
23stamps are engaged in the business of selling such property at
24retail and shall be liable for and shall pay the tax imposed by
25this Act on the basis of the retail value of the property
26transferred upon redemption of such stamps.

 

 

10200SB2202sam001- 35 -LRB102 15832 HLH 24724 a

1    "Bulk vending machine" means a vending machine, containing
2unsorted confections, nuts, toys, or other items designed
3primarily to be used or played with by children which, when a
4coin or coins of a denomination not larger than $0.50 are
5inserted, are dispensed in equal portions, at random and
6without selection by the customer.
7    "Remote retailer" means a retailer that does not maintain
8within this State, directly or by a subsidiary, an office,
9distribution house, sales house, warehouse or other place of
10business, or any agent or other representative operating
11within this State under the authority of the retailer or its
12subsidiary, irrespective of whether such place of business or
13agent is located here permanently or temporarily or whether
14such retailer or subsidiary is licensed to do business in this
15State.
16    "Marketplace" means a physical or electronic place, forum,
17platform, application, or other method by which a marketplace
18seller sells or offers to sell items.
19    "Marketplace facilitator" means a person who, pursuant to
20an agreement with an unrelated third-party marketplace seller,
21directly or indirectly through one or more affiliates
22facilitates a retail sale by an unrelated third party
23marketplace seller by:
24        (1) listing or advertising for sale by the marketplace
25    seller in a marketplace, tangible personal property that
26    is subject to tax under this Act; and

 

 

10200SB2202sam001- 36 -LRB102 15832 HLH 24724 a

1        (2) either directly or indirectly, through agreements
2    or arrangements with third parties, collecting payment
3    from the customer and transmitting that payment to the
4    marketplace seller regardless of whether the marketplace
5    facilitator receives compensation or other consideration
6    in exchange for its services.
7    A person who provides advertising services, including
8listing products for sale, is not considered a marketplace
9facilitator, so long as the advertising service platform or
10forum does not engage, directly or indirectly through one or
11more affiliated persons, in the activities described in
12paragraph (2) of this definition of "marketplace facilitator".
13    "Marketplace seller" means a person that makes sales
14through a marketplace operated by an unrelated third party
15marketplace facilitator.
16    For the purposes of Section 3-10, "manufactured home"
17means a factory-assembled, completely integrated structure
18designed for permanent habitation that:
19        (1) is designed to be used as a single-family dwelling
20    which complies with the standards established under Title
21    42 of the United States Code;
22        (2) is transportable in one or more sections;
23        (3) is installed according to the manufacturer's
24    instructions and connected to residential utilities for
25    year-round occupancy; and
26        (4) contains an area of at least 320 square feet.

 

 

10200SB2202sam001- 37 -LRB102 15832 HLH 24724 a

1(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
 
2    (35 ILCS 120/2-10)
3    Sec. 2-10. Rate of tax. Unless otherwise provided in this
4Section, the tax imposed by this Act is at the rate of 6.25% of
5gross receipts from sales of tangible personal property made
6in the course of business.
7    Beginning on July 1, 2000 and through December 31, 2000,
8with respect to motor fuel, as defined in Section 1.1 of the
9Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
10the Use Tax Act, the tax is imposed at the rate of 1.25%.
11    Beginning on August 6, 2010 through August 15, 2010, with
12respect to sales tax holiday items as defined in Section 2-8 of
13this Act, the tax is imposed at the rate of 1.25%.
14    Within 14 days after the effective date of this amendatory
15Act of the 91st General Assembly, each retailer of motor fuel
16and gasohol shall cause the following notice to be posted in a
17prominently visible place on each retail dispensing device
18that is used to dispense motor fuel or gasohol in the State of
19Illinois: "As of July 1, 2000, the State of Illinois has
20eliminated the State's share of sales tax on motor fuel and
21gasohol through December 31, 2000. The price on this pump
22should reflect the elimination of the tax." The notice shall
23be printed in bold print on a sign that is no smaller than 4
24inches by 8 inches. The sign shall be clearly visible to
25customers. Any retailer who fails to post or maintain a

 

 

10200SB2202sam001- 38 -LRB102 15832 HLH 24724 a

1required sign through December 31, 2000 is guilty of a petty
2offense for which the fine shall be $500 per day per each
3retail premises where a violation occurs.
4    With respect to gasohol, as defined in the Use Tax Act, the
5tax imposed by this Act applies to (i) 70% of the proceeds of
6sales made on or after January 1, 1990, and before July 1,
72003, (ii) 80% of the proceeds of sales made on or after July
81, 2003 and on or before July 1, 2017, and (iii) 100% of the
9proceeds of sales made thereafter. If, at any time, however,
10the tax under this Act on sales of gasohol, as defined in the
11Use Tax Act, is imposed at the rate of 1.25%, then the tax
12imposed by this Act applies to 100% of the proceeds of sales of
13gasohol 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 proceeds of sales made on or after July 1, 2003 and on
17or before December 31, 2023 but applies to 100% of the proceeds
18of sales made thereafter.
19    With respect to biodiesel blends, as defined in the Use
20Tax Act, with no less than 1% and no more than 10% biodiesel,
21the tax imposed by this Act applies to (i) 80% of the proceeds
22of sales made on or after July 1, 2003 and on or before
23December 31, 2018 and (ii) 100% of the proceeds of sales made
24thereafter. If, at any time, however, the tax under this Act on
25sales of biodiesel blends, as defined in the Use Tax Act, with
26no less than 1% and no more than 10% biodiesel is imposed at

 

 

10200SB2202sam001- 39 -LRB102 15832 HLH 24724 a

1the rate of 1.25%, then the tax imposed by this Act applies to
2100% of the proceeds of sales of biodiesel blends with no less
3than 1% and 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, the tax imposed
7by this Act does not apply to the proceeds of sales made on or
8after July 1, 2003 and on or before December 31, 2023 but
9applies to 100% of the proceeds of sales made thereafter.
10    On and after January 1, 2022, with respect to the sale of a
11manufactured home, as defined in Section 1, where (i) the
12purchase is the first purchase of the manufactured home for
13use as a dwelling and (ii) the taxpayer certifies to the
14Department that, within 30 days after the sale, the
15manufactured home will be affixed to a permanent foundation in
16the State so that the manufactured home is deemed to be real
17property under the Conveyance and Encumbrance of Manufactured
18Homes as Real Property and Severance Act, the tax imposed by
19this Act applies to 50% of the proceeds of sales. The
20Department may adopt rules to implement the incentive under
21this paragraph, including rules to require the submission or
22attachment of documentation of eligibility to receive the
23incentive. This paragraph is exempt from the provisions of
24Section 2-70.
25    With respect to food for human consumption that is to be
26consumed off the premises where it is sold (other than

 

 

10200SB2202sam001- 40 -LRB102 15832 HLH 24724 a

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

 

 

10200SB2202sam001- 41 -LRB102 15832 HLH 24724 a

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

 

 

10200SB2202sam001- 42 -LRB102 15832 HLH 24724 a

1drugs" does not include grooming and hygiene products. For
2purposes of this Section, "grooming and hygiene products"
3includes, but is not limited to, soaps and cleaning solutions,
4shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
5lotions and screens, unless those products are available by
6prescription only, regardless of whether the products meet the
7definition of "over-the-counter-drugs". For the purposes of
8this paragraph, "over-the-counter-drug" means a drug for human
9use that contains a label that identifies the product as a drug
10as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
11label includes:
12        (A) A "Drug Facts" panel; or
13        (B) A statement of the "active ingredient(s)" with a
14    list of those ingredients contained in the compound,
15    substance or preparation.
16    Beginning on the effective date of this amendatory Act of
17the 98th General Assembly, "prescription and nonprescription
18medicines and drugs" includes medical cannabis purchased from
19a registered dispensing organization under the Compassionate
20Use of Medical Cannabis Program Act.
21    As used in this Section, "adult use cannabis" means
22cannabis subject to tax under the Cannabis Cultivation
23Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
24and does not include cannabis subject to tax under the
25Compassionate Use of Medical Cannabis Program Act.
26(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;

 

 

10200SB2202sam001- 43 -LRB102 15832 HLH 24724 a

1101-593, eff. 12-4-19.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.".