103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2544

 

Introduced 2/15/2023, by Rep. Joyce Mason

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-10
35 ILCS 110/3-10  from Ch. 120, par. 439.33-10
35 ILCS 115/3-10  from Ch. 120, par. 439.103-10
35 ILCS 120/2-10

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on January 1, 2024, the tax on gun safes and locks designed to secure firearms is imposed at the rate of 1%. Effective immediately.


LRB103 27004 HLH 53371 b

 

 

A BILL FOR

 

HB2544LRB103 27004 HLH 53371 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section
53-10 as follows:
 
6    (35 ILCS 105/3-10)
7    Sec. 3-10. Rate of tax. Unless otherwise provided in this
8Section, the tax imposed by this Act is at the rate of 6.25% of
9either the selling price or the fair market value, if any, of
10the tangible personal property. In all cases where property
11functionally used or consumed is the same as the property that
12was purchased at retail, then the tax is imposed on the selling
13price of the property. In all cases where property
14functionally used or consumed is a by-product or waste product
15that has been refined, manufactured, or produced from property
16purchased at retail, then the tax is imposed on the lower of
17the fair market value, if any, of the specific property so used
18in this State or on the selling price of the property purchased
19at retail. For purposes of this Section "fair market value"
20means the price at which property would change hands between a
21willing buyer and a willing seller, neither being under any
22compulsion to buy or sell and both having reasonable knowledge
23of the relevant facts. The fair market value shall be

 

 

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1established by Illinois sales by the taxpayer of the same
2property as that functionally used or consumed, or if there
3are no such sales by the taxpayer, then comparable sales or
4purchases of property of like kind and character in Illinois.
5    Beginning on July 1, 2000 and through December 31, 2000,
6with respect to motor fuel, as defined in Section 1.1 of the
7Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
8the Use Tax Act, the tax is imposed at the rate of 1.25%.
9    Beginning on August 6, 2010 through August 15, 2010, and
10beginning again on August 5, 2022 through August 14, 2022,
11with respect to sales tax holiday items as defined in Section
123-6 of this Act, the tax is imposed at the rate of 1.25%.
13    With respect to gasohol, the tax imposed by this Act
14applies to (i) 70% of the proceeds of sales made on or after
15January 1, 1990, and before July 1, 2003, (ii) 80% of the
16proceeds of sales made on or after July 1, 2003 and on or
17before July 1, 2017, and (iii) 100% of the proceeds of sales
18made thereafter. If, at any time, however, the tax under this
19Act on sales of gasohol is imposed at the rate of 1.25%, then
20the tax imposed by this Act applies to 100% of the proceeds of
21sales of gasohol made during that time.
22    With respect to majority blended ethanol fuel, the tax
23imposed by this Act does not apply to the proceeds of sales
24made on or after July 1, 2003 and on or before December 31,
252023 but applies to 100% of the proceeds of sales made
26thereafter.

 

 

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1    With respect to biodiesel blends with no less than 1% and
2no more than 10% biodiesel, the tax imposed by this Act applies
3to (i) 80% of the proceeds of sales made on or after July 1,
42003 and on or before December 31, 2018 and (ii) 100% of the
5proceeds of sales made after December 31, 2018 and before
6January 1, 2024. On and after January 1, 2024 and on or before
7December 31, 2030, the taxation of biodiesel, renewable
8diesel, and biodiesel blends shall be as provided in Section
93-5.1. If, at any time, however, the tax under this Act on
10sales of biodiesel blends with no less than 1% and no more than
1110% biodiesel is imposed at the rate of 1.25%, then the tax
12imposed by this Act applies to 100% of the proceeds of sales of
13biodiesel blends with no less than 1% and no more than 10%
14biodiesel made during that time.
15    With respect to biodiesel and biodiesel blends with more
16than 10% but no more than 99% biodiesel, the tax imposed by
17this Act does not apply to the proceeds of sales made on or
18after July 1, 2003 and on or before December 31, 2023. On and
19after January 1, 2024 and on or before December 31, 2030, the
20taxation of biodiesel, renewable diesel, and biodiesel blends
21shall be as provided in Section 3-5.1.
22    With respect to gun safes and locks designed to secure
23firearms, beginning on January 1, 2024, the tax is imposed at
24the rate of 1%.
25    Until July 1, 2022 and beginning again on July 1, 2023,
26with respect to food for human consumption that is to be

 

 

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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), the tax is imposed at the rate of 1%.
5Beginning on July 1, 2022 and until July 1, 2023, with respect
6to food for human consumption that is to be consumed off the
7premises where it is sold (other than alcoholic beverages,
8food consisting of or infused with adult use cannabis, soft
9drinks, and food that has been prepared for immediate
10consumption), the tax is imposed at the rate of 0%.
11    With respect to prescription and nonprescription
12medicines, drugs, medical appliances, products classified as
13Class III medical devices by the United States Food and Drug
14Administration that are used for cancer treatment pursuant to
15a prescription, as well as any accessories and components
16related to those devices, modifications to a motor vehicle for
17the purpose of rendering it usable by a person with a
18disability, and insulin, blood sugar testing materials,
19syringes, and needles used by human diabetics, the tax is
20imposed at the rate of 1%. For the purposes of this Section,
21until September 1, 2009: the term "soft drinks" means any
22complete, finished, ready-to-use, non-alcoholic drink, whether
23carbonated or not, including, but not limited to, soda water,
24cola, fruit juice, vegetable juice, carbonated water, and all
25other preparations commonly known as soft drinks of whatever
26kind or description that are contained in any closed or sealed

 

 

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

 

 

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

 

 

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1includes medical cannabis purchased from a registered
2dispensing organization under the Compassionate Use of Medical
3Cannabis Program Act.
4    As used in this Section, "adult use cannabis" means
5cannabis subject to tax under the Cannabis Cultivation
6Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
7and does not include cannabis subject to tax under the
8Compassionate Use of Medical Cannabis Program Act.
9    If the property that is purchased at retail from a
10retailer is acquired outside Illinois and used outside
11Illinois before being brought to Illinois for use here and is
12taxable under this Act, the "selling price" on which the tax is
13computed shall be reduced by an amount that represents a
14reasonable allowance for depreciation for the period of prior
15out-of-state use.
16(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
17102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.
184-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;
19102-700, Article 65, Section 65-5, eff. 4-19-22; revised
205-27-22.)
 
21    Section 10. The Service Use Tax Act is amended by changing
22Section 3-10 as follows:
 
23    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
24    Sec. 3-10. Rate of tax. Unless otherwise provided in this

 

 

HB2544- 8 -LRB103 27004 HLH 53371 b

1Section, the tax imposed by this Act is at the rate of 6.25% of
2the selling price of tangible personal property transferred as
3an incident to the sale of service, but, for the purpose of
4computing this tax, in no event shall the selling price be less
5than the cost price of the property to the serviceman.
6    Beginning on July 1, 2000 and through December 31, 2000,
7with respect to motor fuel, as defined in Section 1.1 of the
8Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
9the Use Tax Act, the tax is imposed at the rate of 1.25%.
10    With respect to gasohol, as defined in the Use Tax Act, the
11tax imposed by this Act applies to (i) 70% of the selling price
12of property transferred as an incident to the sale of service
13on or after January 1, 1990, and before July 1, 2003, (ii) 80%
14of the selling price of property transferred as an incident to
15the sale of service on or after July 1, 2003 and on or before
16July 1, 2017, and (iii) 100% of the selling price thereafter.
17If, at any time, however, the tax under this Act on sales of
18gasohol, as defined in the Use Tax Act, is imposed at the rate
19of 1.25%, then the tax imposed by this Act applies to 100% of
20the proceeds of sales of gasohol made during that time.
21    With respect to majority blended ethanol fuel, as defined
22in the Use Tax Act, the tax imposed by this Act does not apply
23to the selling price of property transferred as an incident to
24the sale of service on or after July 1, 2003 and on or before
25December 31, 2023 but applies to 100% of the selling price
26thereafter.

 

 

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1    With respect to biodiesel blends, as defined in the Use
2Tax Act, with no less than 1% and no more than 10% biodiesel,
3the tax imposed by this Act applies to (i) 80% of the selling
4price of property transferred as an incident to the sale of
5service on or after July 1, 2003 and on or before December 31,
62018 and (ii) 100% of the proceeds of the selling price after
7December 31, 2018 and before January 1, 2024. On and after
8January 1, 2024 and on or before December 31, 2030, the
9taxation of biodiesel, renewable diesel, and biodiesel blends
10shall be as provided in Section 3-5.1 of the Use Tax Act. If,
11at any time, however, the tax under this Act on sales of
12biodiesel blends, as defined in the Use Tax Act, with no less
13than 1% and no more than 10% biodiesel is imposed at the rate
14of 1.25%, then the tax imposed by this Act applies to 100% of
15the proceeds of sales of biodiesel blends with no less than 1%
16and no more than 10% biodiesel made during that time.
17    With respect to biodiesel, as defined in the Use Tax Act,
18and biodiesel blends, as defined in the Use Tax Act, with more
19than 10% but no more than 99% biodiesel, the tax imposed by
20this Act does not apply to the proceeds of the selling price of
21property transferred as an incident to the sale of service on
22or after July 1, 2003 and on or before December 31, 2023. On
23and after January 1, 2024 and on or before December 31, 2030,
24the taxation of biodiesel, renewable diesel, and biodiesel
25blends shall be as provided in Section 3-5.1 of the Use Tax
26Act.

 

 

HB2544- 10 -LRB103 27004 HLH 53371 b

1    At the election of any registered serviceman made for each
2fiscal year, sales of service in which the aggregate annual
3cost price of tangible personal property transferred as an
4incident to the sales of service is less than 35%, or 75% in
5the case of servicemen transferring prescription drugs or
6servicemen engaged in graphic arts production, of the
7aggregate annual total gross receipts from all sales of
8service, the tax imposed by this Act shall be based on the
9serviceman's cost price of the tangible personal property
10transferred as an incident to the sale of those services.
11    With respect to gun safes and locks designed to secure
12firearms, beginning on January 1, 2024, the tax is imposed at
13the rate of 1%.
14    Until July 1, 2022 and beginning again on July 1, 2023, the
15tax shall be imposed at the rate of 1% on food prepared for
16immediate consumption and transferred incident to a sale of
17service subject to this Act or the Service Occupation Tax Act
18by an entity licensed under the Hospital Licensing Act, the
19Nursing Home Care Act, the Assisted Living and Shared Housing
20Act, the ID/DD Community Care Act, the MC/DD Act, the
21Specialized Mental Health Rehabilitation Act of 2013, or the
22Child Care Act of 1969, or an entity that holds a permit issued
23pursuant to the Life Care Facilities Act. Until July 1, 2022
24and beginning again on July 1, 2023, the tax shall also be
25imposed at the rate of 1% on food for human consumption that is
26to be consumed off the premises where it is sold (other than

 

 

HB2544- 11 -LRB103 27004 HLH 53371 b

1alcoholic beverages, food consisting of or infused with adult
2use cannabis, soft drinks, and food that has been prepared for
3immediate consumption and is not otherwise included in this
4paragraph).
5    Beginning on July 1, 2022 and until July 1, 2023, the tax
6shall be imposed at the rate of 0% on food prepared for
7immediate consumption and transferred incident to a sale of
8service subject to this Act or the Service Occupation Tax Act
9by an entity licensed under the Hospital Licensing Act, the
10Nursing Home Care Act, the Assisted Living and Shared Housing
11Act, the ID/DD Community Care Act, the MC/DD Act, the
12Specialized Mental Health Rehabilitation Act of 2013, or the
13Child Care Act of 1969, or an entity that holds a permit issued
14pursuant to the Life Care Facilities Act. Beginning on July 1,
152022 and until July 1, 2023, the tax shall also be imposed at
16the rate of 0% on food for human consumption that is to be
17consumed off the premises where it is sold (other than
18alcoholic beverages, food consisting of or infused with adult
19use cannabis, soft drinks, and food that has been prepared for
20immediate consumption and is not otherwise included in this
21paragraph).
22    The tax shall also be imposed at the rate of 1% on
23prescription and nonprescription medicines, drugs, medical
24appliances, products classified as Class III medical devices
25by the United States Food and Drug Administration that are
26used for cancer treatment pursuant to a prescription, as well

 

 

HB2544- 12 -LRB103 27004 HLH 53371 b

1as any accessories and components related to those devices,
2modifications to a motor vehicle for the purpose of rendering
3it usable by a person with a disability, and insulin, blood
4sugar testing materials, syringes, and needles used by human
5diabetics. For the purposes of this Section, until September
61, 2009: the term "soft drinks" means any complete, finished,
7ready-to-use, non-alcoholic drink, whether carbonated or not,
8including, but not limited to, soda water, cola, fruit juice,
9vegetable juice, carbonated water, and all other preparations
10commonly known as soft drinks of whatever kind or description
11that are contained in any closed or sealed bottle, can,
12carton, or container, regardless of size; but "soft drinks"
13does not include coffee, tea, non-carbonated water, infant
14formula, milk or milk products as defined in the Grade A
15Pasteurized Milk and Milk Products Act, or drinks containing
1650% or more natural fruit or vegetable juice.
17    Notwithstanding any other provisions of this Act,
18beginning September 1, 2009, "soft drinks" means non-alcoholic
19beverages that contain natural or artificial sweeteners. "Soft
20drinks" does do not include beverages that contain milk or
21milk products, soy, rice or similar milk substitutes, or
22greater than 50% of vegetable or fruit juice by volume.
23    Until August 1, 2009, and notwithstanding any other
24provisions of this Act, "food for human consumption that is to
25be consumed off the premises where it is sold" includes all
26food sold through a vending machine, except soft drinks and

 

 

HB2544- 13 -LRB103 27004 HLH 53371 b

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

 

 

HB2544- 14 -LRB103 27004 HLH 53371 b

1this paragraph, "over-the-counter-drug" means a drug for human
2use that contains a label that identifies the product as a drug
3as required by 21 CFR C.F.R. § 201.66. The
4"over-the-counter-drug" label includes:
5        (A) a A "Drug Facts" panel; or
6        (B) a A statement of the "active ingredient(s)" with a
7    list of those ingredients contained in the compound,
8    substance or preparation.
9    Beginning on January 1, 2014 (the effective date of Public
10Act 98-122), "prescription and nonprescription medicines and
11drugs" includes medical cannabis purchased from a registered
12dispensing organization under the Compassionate Use of Medical
13Cannabis Program Act.
14    As used in this Section, "adult use cannabis" means
15cannabis subject to tax under the Cannabis Cultivation
16Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
17and does not include cannabis subject to tax under the
18Compassionate Use of Medical Cannabis Program Act.
19    If the property that is acquired from a serviceman is
20acquired outside Illinois and used outside Illinois before
21being brought to Illinois for use here and is taxable under
22this Act, the "selling price" on which the tax is computed
23shall be reduced by an amount that represents a reasonable
24allowance for depreciation for the period of prior
25out-of-state use.
26(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;

 

 

HB2544- 15 -LRB103 27004 HLH 53371 b

1102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
220, Section 20-10, eff. 4-19-22; 102-700, Article 60, Section
360-20, eff. 4-19-22; revised 6-1-22.)
 
4    Section 15. The Service Occupation Tax Act is amended by
5changing Section 3-10 as follows:
 
6    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
7    Sec. 3-10. Rate of tax. Unless otherwise provided in this
8Section, the tax imposed by this Act is at the rate of 6.25% of
9the "selling price", as defined in Section 2 of the Service Use
10Tax Act, of the tangible personal property. For the purpose of
11computing this tax, in no event shall the "selling price" be
12less than the cost price to the serviceman of the tangible
13personal property transferred. The selling price of each item
14of tangible personal property transferred as an incident of a
15sale of service may be shown as a distinct and separate item on
16the serviceman's billing to the service customer. If the
17selling price is not so shown, the selling price of the
18tangible personal property is deemed to be 50% of the
19serviceman's entire billing to the service customer. When,
20however, a serviceman contracts to design, develop, and
21produce special order machinery or equipment, the tax imposed
22by this Act shall be based on the serviceman's cost price of
23the tangible personal property transferred incident to the
24completion of the contract.

 

 

HB2544- 16 -LRB103 27004 HLH 53371 b

1    Beginning on July 1, 2000 and through December 31, 2000,
2with respect to motor fuel, as defined in Section 1.1 of the
3Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
4the Use Tax Act, the tax is imposed at the rate of 1.25%.
5    With respect to gasohol, as defined in the Use Tax Act, the
6tax imposed by this Act shall apply to (i) 70% of the cost
7price of property transferred as an incident to the sale of
8service on or after January 1, 1990, and before July 1, 2003,
9(ii) 80% of the selling price of property transferred as an
10incident to the sale of service on or after July 1, 2003 and on
11or before July 1, 2017, and (iii) 100% of the cost price
12thereafter. If, at any time, however, the tax under this Act on
13sales of gasohol, as defined in the Use Tax Act, is imposed at
14the rate of 1.25%, then the tax imposed by this Act applies to
15100% of the proceeds of sales of gasohol made during that time.
16    With respect to majority blended ethanol fuel, as defined
17in the Use Tax Act, the tax imposed by this Act does not apply
18to the selling price of property transferred as an incident to
19the sale of service on or after July 1, 2003 and on or before
20December 31, 2023 but applies to 100% of the selling price
21thereafter.
22    With respect to gun safes and locks designed to secure
23firearms, beginning on January 1, 2024, the tax is imposed at
24the rate of 1%.
25    With respect to biodiesel blends, as defined in the Use
26Tax Act, with no less than 1% and no more than 10% biodiesel,

 

 

HB2544- 17 -LRB103 27004 HLH 53371 b

1the tax imposed by this Act applies to (i) 80% of the selling
2price of property transferred as an incident to the sale of
3service on or after July 1, 2003 and on or before December 31,
42018 and (ii) 100% of the proceeds of the selling price after
5December 31, 2018 and before January 1, 2024. On and after
6January 1, 2024 and on or before December 31, 2030, the
7taxation of biodiesel, renewable diesel, and biodiesel blends
8shall be as provided in Section 3-5.1 of the Use Tax Act. If,
9at any time, however, the tax under this Act on sales of
10biodiesel blends, as defined in the Use Tax Act, with no less
11than 1% and no more than 10% biodiesel is imposed at the rate
12of 1.25%, then the tax imposed by this Act applies to 100% of
13the proceeds of sales of biodiesel blends with no less than 1%
14and no more than 10% biodiesel made during that time.
15    With respect to biodiesel, as defined in the Use Tax Act,
16and biodiesel blends, as defined in the Use Tax Act, with more
17than 10% but no more than 99% biodiesel material, the tax
18imposed by this Act does not apply to the proceeds of the
19selling price of property transferred as an incident to the
20sale of service on or after July 1, 2003 and on or before
21December 31, 2023. On and after January 1, 2024 and on or
22before December 31, 2030, the taxation of biodiesel, renewable
23diesel, and biodiesel blends shall be as provided in Section
243-5.1 of the Use Tax Act.
25    At the election of any registered serviceman made for each
26fiscal year, sales of service in which the aggregate annual

 

 

HB2544- 18 -LRB103 27004 HLH 53371 b

1cost price of tangible personal property transferred as an
2incident to the sales of service is less than 35%, or 75% in
3the case of servicemen transferring prescription drugs or
4servicemen engaged in graphic arts production, of the
5aggregate annual total gross receipts from all sales of
6service, the tax imposed by this Act shall be based on the
7serviceman's cost price of the tangible personal property
8transferred incident to the sale of those services.
9    Until July 1, 2022 and beginning again on July 1, 2023, the
10tax shall be imposed at the rate of 1% on food prepared for
11immediate consumption and transferred incident to a sale of
12service subject to this Act or the Service Use Tax Act by an
13entity licensed under the Hospital Licensing Act, the Nursing
14Home Care Act, the Assisted Living and Shared Housing Act, the
15ID/DD Community Care Act, the MC/DD Act, the Specialized
16Mental Health Rehabilitation Act of 2013, or the Child Care
17Act of 1969, or an entity that holds a permit issued pursuant
18to the Life Care Facilities Act. Until July 1, 2022 and
19beginning again on July 1, 2023, the tax shall also be imposed
20at the rate of 1% on food for human consumption that is to be
21consumed off the premises where it is sold (other than
22alcoholic beverages, food consisting of or infused with adult
23use cannabis, soft drinks, and food that has been prepared for
24immediate consumption and is not otherwise included in this
25paragraph).
26    Beginning on July 1, 2022 and until July 1, 2023, the tax

 

 

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1shall be imposed at the rate of 0% on food prepared for
2immediate consumption and transferred incident to a sale of
3service subject to this Act or the Service Use Tax Act by an
4entity licensed under the Hospital Licensing Act, the Nursing
5Home Care Act, the Assisted Living and Shared Housing Act, the
6ID/DD Community Care Act, the MC/DD Act, the Specialized
7Mental Health Rehabilitation Act of 2013, or the Child Care
8Act of 1969, or an entity that holds a permit issued pursuant
9to the Life Care Facilities Act. Beginning July 1, 2022 and
10until July 1, 2023, the tax shall also be imposed at the rate
11of 0% on food for human consumption that is to be consumed off
12the premises where it is sold (other than alcoholic beverages,
13food consisting of or infused with adult use cannabis, soft
14drinks, and food that has been prepared for immediate
15consumption and is not otherwise included in this paragraph).
16    The tax shall also be imposed at the rate of 1% on
17prescription and nonprescription medicines, drugs, medical
18appliances, products classified as Class III medical devices
19by the United States Food and Drug Administration that are
20used for cancer treatment pursuant to a prescription, as well
21as any accessories and components related to those devices,
22modifications to a motor vehicle for the purpose of rendering
23it usable by a person with a disability, and insulin, blood
24sugar testing materials, syringes, and needles used by human
25diabetics. For the purposes of this Section, until September
261, 2009: the term "soft drinks" means any complete, finished,

 

 

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

 

 

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

 

 

HB2544- 22 -LRB103 27004 HLH 53371 b

1    list of those ingredients contained in the compound,
2    substance or preparation.
3    Beginning on January 1, 2014 (the effective date of Public
4Act 98-122), "prescription and nonprescription medicines and
5drugs" includes medical cannabis purchased from a registered
6dispensing organization under the Compassionate Use of Medical
7Cannabis Program Act.
8    As used in this Section, "adult use cannabis" means
9cannabis subject to tax under the Cannabis Cultivation
10Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
11and does not include cannabis subject to tax under the
12Compassionate Use of Medical Cannabis Program Act.
13(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
14102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
1520, Section 20-15, eff. 4-19-22; 102-700, Article 60, Section
1660-25, eff. 4-19-22; revised 6-1-22.)
 
17    Section 20. The Retailers' Occupation Tax Act is amended
18by changing Section 2-10 as follows:
 
19    (35 ILCS 120/2-10)
20    Sec. 2-10. Rate of tax. Unless otherwise provided in this
21Section, the tax imposed by this Act is at the rate of 6.25% of
22gross receipts from sales of tangible personal property made
23in the course of business.
24    Beginning on July 1, 2000 and through December 31, 2000,

 

 

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1with respect to motor fuel, as defined in Section 1.1 of the
2Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
3the Use Tax Act, the tax is imposed at the rate of 1.25%.
4    Beginning on August 6, 2010 through August 15, 2010, and
5beginning again on August 5, 2022 through August 14, 2022,
6with respect to sales tax holiday items as defined in Section
72-8 of this Act, the tax is imposed at the rate of 1.25%.
8    Within 14 days after July 1, 2000 (the effective date of
9Public Act 91-872) this amendatory Act of the 91st General
10Assembly, each retailer of motor fuel and gasohol shall cause
11the following notice to be posted in a prominently visible
12place on each retail dispensing device that is used to
13dispense motor fuel or gasohol in the State of Illinois: "As of
14July 1, 2000, the State of Illinois has eliminated the State's
15share of sales tax on motor fuel and gasohol through December
1631, 2000. The price on this pump should reflect the
17elimination of the tax." The notice shall be printed in bold
18print on a sign that is no smaller than 4 inches by 8 inches.
19The sign shall be clearly visible to customers. Any retailer
20who fails to post or maintain a required sign through December
2131, 2000 is guilty of a petty offense for which the fine shall
22be $500 per day per each retail premises where a violation
23occurs.
24    With respect to gasohol, as defined in the Use Tax Act, the
25tax imposed by this Act applies to (i) 70% of the proceeds of
26sales made on or after January 1, 1990, and before July 1,

 

 

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12003, (ii) 80% of the proceeds of sales made on or after July
21, 2003 and on or before July 1, 2017, and (iii) 100% of the
3proceeds of sales made thereafter. If, at any time, however,
4the tax under this Act on sales of gasohol, as defined in the
5Use Tax Act, is imposed at the rate of 1.25%, then the tax
6imposed by this Act applies to 100% of the proceeds of sales of
7gasohol made during that time.
8    With respect to majority blended ethanol fuel, as defined
9in the Use Tax Act, the tax imposed by this Act does not apply
10to the proceeds of sales made on or after July 1, 2003 and on
11or before December 31, 2023 but applies to 100% of the proceeds
12of sales made thereafter.
13    With respect to biodiesel blends, as defined in the Use
14Tax Act, with no less than 1% and no more than 10% biodiesel,
15the tax imposed by this Act applies to (i) 80% of the proceeds
16of sales made on or after July 1, 2003 and on or before
17December 31, 2018 and (ii) 100% of the proceeds of sales made
18after December 31, 2018 and before January 1, 2024. On and
19after January 1, 2024 and on or before December 31, 2030, the
20taxation of biodiesel, renewable diesel, and biodiesel blends
21shall be as provided in Section 3-5.1 of the Use Tax Act. If,
22at any time, however, the tax under this Act on sales of
23biodiesel blends, as defined in the Use Tax Act, with no less
24than 1% and no more than 10% biodiesel is imposed at the rate
25of 1.25%, then the tax imposed by this Act applies to 100% of
26the proceeds of sales of biodiesel blends with no less than 1%

 

 

HB2544- 25 -LRB103 27004 HLH 53371 b

1and no more than 10% biodiesel made during that time.
2    With respect to biodiesel, as defined in the Use Tax Act,
3and biodiesel blends, as defined in the Use Tax Act, with more
4than 10% but no more than 99% biodiesel, the tax imposed by
5this Act does not apply to the proceeds of sales made on or
6after July 1, 2003 and on or before December 31, 2023. On and
7after January 1, 2024 and on or before December 31, 2030, the
8taxation of biodiesel, renewable diesel, and biodiesel blends
9shall be as provided in Section 3-5.1 of the Use Tax Act.
10    With respect to gun safes and locks designed to secure
11firearms, beginning on January 1, 2024, the tax is imposed at
12the rate of 1%.
13    Until July 1, 2022 and beginning again on July 1, 2023,
14with 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), the tax is imposed at the rate of 1%.
19Beginning July 1, 2022 and until July 1, 2023, with respect to
20food for human consumption that is to be consumed off the
21premises where it is sold (other than alcoholic beverages,
22food consisting of or infused with adult use cannabis, soft
23drinks, and food that has been prepared for immediate
24consumption), the tax is imposed at the rate of 0%.
25    With respect to prescription and nonprescription
26medicines, drugs, medical appliances, products classified as

 

 

HB2544- 26 -LRB103 27004 HLH 53371 b

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

 

 

HB2544- 27 -LRB103 27004 HLH 53371 b

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

 

 

HB2544- 28 -LRB103 27004 HLH 53371 b

1lotions and screens, unless those products are available by
2prescription only, regardless of whether the products meet the
3definition of "over-the-counter-drugs". For the purposes of
4this paragraph, "over-the-counter-drug" means a drug for human
5use that contains a label that identifies the product as a drug
6as required by 21 CFR C.F.R. § 201.66. The
7"over-the-counter-drug" label includes:
8        (A) a A "Drug Facts" panel; or
9        (B) a A statement of the "active ingredient(s)" with a
10    list of those ingredients contained in the compound,
11    substance or preparation.
12    Beginning on January 1, 2014 (the effective date of Public
13Act 98-122) this amendatory Act of the 98th General Assembly,
14"prescription and nonprescription medicines and drugs"
15includes medical cannabis purchased from a registered
16dispensing organization under the Compassionate Use of Medical
17Cannabis Program Act.
18    As used in this Section, "adult use cannabis" means
19cannabis subject to tax under the Cannabis Cultivation
20Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
21and does not include cannabis subject to tax under the
22Compassionate Use of Medical Cannabis Program Act.
23(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
24102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff.
254-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22;
26102-700, Article 65, Section 65-10, eff. 4-19-22; revised

 

 

HB2544- 29 -LRB103 27004 HLH 53371 b

16-1-22.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.