97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3836

 

Introduced 10/19/2011, by Rep. Richard Morthland

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/6z-18  from Ch. 127, par. 142z-18
30 ILCS 105/6z-20  from Ch. 127, par. 142z-20
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 the Department of Revenue shall monitor the rate of tax imposed on motor fuel and gasohol by the states of Iowa, Kentucky, and Missouri. Provides that, if the Department finds that the rate of tax imposed on the selling price of motor fuel or gasohol, or both, by the State of Iowa, the State of Kentucky, or the State of Missouri is less than 6.25%, then the Department shall, by rule, reduce the rate of tax imposed under the Acts on motor fuel and gasohol sold within 30 miles of a bridge or operating motor vehicle ferry that crosses the Illinois border with Iowa, Kentucky, or Missouri, as applicable, to 1.25% beginning on the first day of the first month to occur not less than 30 days after the date of the finding. Provides that, if the Department finds that the rate of tax imposed on the selling price of motor fuel or gasohol, or both, by the State of Iowa, the State of Kentucky, or the State of Missouri is 6.25% or higher, then the Department shall, by rule, increase the rate of tax imposed under the Acts on motor fuel and gasohol to 6.25%. Effective immediately.


LRB097 13627 HLH 58266 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3836LRB097 13627 HLH 58266 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 State Finance Act is amended by changing
5Sections 6z-18 and 6z-20 as follows:
 
6    (30 ILCS 105/6z-18)  (from Ch. 127, par. 142z-18)
7    Sec. 6z-18. A portion of the money paid into the Local
8Government Tax Fund from sales of food for human consumption
9which is to be consumed off the premises where it is sold
10(other than alcoholic beverages, soft drinks and food which has
11been prepared for immediate consumption) and prescription and
12nonprescription medicines, drugs, medical appliances and
13insulin, urine testing materials, syringes and needles used by
14diabetics, which occurred in municipalities, shall be
15distributed to each municipality based upon the sales which
16occurred in that municipality. The remainder shall be
17distributed to each county based upon the sales which occurred
18in the unincorporated area of that county.
19    A portion of the money paid into the Local Government Tax
20Fund from the 6.25% general use tax rate on the selling price
21of tangible personal property which is purchased outside
22Illinois at retail from a retailer and which is titled or
23registered by any agency of this State's government shall be

 

 

HB3836- 2 -LRB097 13627 HLH 58266 b

1distributed to municipalities as provided in this paragraph.
2Each municipality shall receive the amount attributable to
3sales for which Illinois addresses for titling or registration
4purposes are given as being in such municipality. The remainder
5of the money paid into the Local Government Tax Fund from such
6sales shall be distributed to counties. Each county shall
7receive the amount attributable to sales for which Illinois
8addresses for titling or registration purposes are given as
9being located in the unincorporated area of such county.
10    A portion of the money paid into the Local Government Tax
11Fund from the 6.25% general rate (and, beginning July 1, 2000
12and through December 31, 2000, and in any month in which the
13rate on motor fuel and gasohol is reduced to 1.25% pursuant to
14a rule adopted by the Department of Revenue, the 1.25% rate on
15motor fuel and gasohol, and beginning on August 6, 2010 through
16August 15, 2010, the 1.25% rate on sales tax holiday items) on
17sales subject to taxation under the Retailers' Occupation Tax
18Act and the Service Occupation Tax Act, which occurred in
19municipalities, shall be distributed to each municipality,
20based upon the sales which occurred in that municipality. The
21remainder shall be distributed to each county, based upon the
22sales which occurred in the unincorporated area of such county.
23    For the purpose of determining allocation to the local
24government unit, a retail sale by a producer of coal or other
25mineral mined in Illinois is a sale at retail at the place
26where the coal or other mineral mined in Illinois is extracted

 

 

HB3836- 3 -LRB097 13627 HLH 58266 b

1from the earth. This paragraph does not apply to coal or other
2mineral when it is delivered or shipped by the seller to the
3purchaser at a point outside Illinois so that the sale is
4exempt under the United States Constitution as a sale in
5interstate or foreign commerce.
6    Whenever the Department determines that a refund of money
7paid into the Local Government Tax Fund should be made to a
8claimant instead of issuing a credit memorandum, the Department
9shall notify the State Comptroller, who shall cause the order
10to be drawn for the amount specified, and to the person named,
11in such notification from the Department. Such refund shall be
12paid by the State Treasurer out of the Local Government Tax
13Fund.
14    As soon as possible after the first day of each month,
15beginning January 1, 2011, upon certification of the Department
16of Revenue, the Comptroller shall order transferred, and the
17Treasurer shall transfer, to the STAR Bonds Revenue Fund the
18local sales tax increment, as defined in the Innovation
19Development and Economy Act, collected during the second
20preceding calendar month for sales within a STAR bond district
21and deposited into the Local Government Tax Fund, less 3% of
22that amount, which shall be transferred into the Tax Compliance
23and Administration Fund and shall be used by the Department,
24subject to appropriation, to cover the costs of the Department
25in administering the Innovation Development and Economy Act.
26    After the monthly transfer to the STAR Bonds Revenue Fund,

 

 

HB3836- 4 -LRB097 13627 HLH 58266 b

1on or before the 25th day of each calendar month, the
2Department shall prepare and certify to the Comptroller the
3disbursement of stated sums of money to named municipalities
4and counties, the municipalities and counties to be those
5entitled to distribution of taxes or penalties paid to the
6Department during the second preceding calendar month. The
7amount to be paid to each municipality or county shall be the
8amount (not including credit memoranda) collected during the
9second preceding calendar month by the Department and paid into
10the Local Government Tax Fund, plus an amount the Department
11determines is necessary to offset any amounts which were
12erroneously paid to a different taxing body, and not including
13an amount equal to the amount of refunds made during the second
14preceding calendar month by the Department, and not including
15any amount which the Department determines is necessary to
16offset any amounts which are payable to a different taxing body
17but were erroneously paid to the municipality or county, and
18not including any amounts that are transferred to the STAR
19Bonds Revenue Fund. Within 10 days after receipt, by the
20Comptroller, of the disbursement certification to the
21municipalities and counties, provided for in this Section to be
22given to the Comptroller by the Department, the Comptroller
23shall cause the orders to be drawn for the respective amounts
24in accordance with the directions contained in such
25certification.
26    When certifying the amount of monthly disbursement to a

 

 

HB3836- 5 -LRB097 13627 HLH 58266 b

1municipality or county under this Section, the Department shall
2increase or decrease that amount by an amount necessary to
3offset any misallocation of previous disbursements. The offset
4amount shall be the amount erroneously disbursed within the 6
5months preceding the time a misallocation is discovered.
6    The provisions directing the distributions from the
7special fund in the State Treasury provided for in this Section
8shall constitute an irrevocable and continuing appropriation
9of all amounts as provided herein. The State Treasurer and
10State Comptroller are hereby authorized to make distributions
11as provided in this Section.
12    In construing any development, redevelopment, annexation,
13preannexation or other lawful agreement in effect prior to
14September 1, 1990, which describes or refers to receipts from a
15county or municipal retailers' occupation tax, use tax or
16service occupation tax which now cannot be imposed, such
17description or reference shall be deemed to include the
18replacement revenue for such abolished taxes, distributed from
19the Local Government Tax Fund.
20(Source: P.A. 96-939, eff. 6-24-10; 96-1012, eff. 7-7-10;
2197-333, eff. 8-12-11.)
 
22    (30 ILCS 105/6z-20)  (from Ch. 127, par. 142z-20)
23    Sec. 6z-20. Of the money received from the 6.25% general
24rate (and, beginning July 1, 2000 and through December 31,
252000, and in any month in which the rate on motor fuel and

 

 

HB3836- 6 -LRB097 13627 HLH 58266 b

1gasohol is reduced to 1.25% pursuant to a rule adopted by the
2Department of Revenue, the 1.25% rate on motor fuel and
3gasohol, and beginning on August 6, 2010 through August 15,
42010, the 1.25% rate on sales tax holiday items) on sales
5subject to taxation under the Retailers' Occupation Tax Act and
6Service Occupation Tax Act and paid into the County and Mass
7Transit District Fund, distribution to the Regional
8Transportation Authority tax fund, created pursuant to Section
94.03 of the Regional Transportation Authority Act, for deposit
10therein shall be made based upon the retail sales occurring in
11a county having more than 3,000,000 inhabitants. The remainder
12shall be distributed to each county having 3,000,000 or fewer
13inhabitants based upon the retail sales occurring in each such
14county.
15    For the purpose of determining allocation to the local
16government unit, a retail sale by a producer of coal or other
17mineral mined in Illinois is a sale at retail at the place
18where the coal or other mineral mined in Illinois is extracted
19from the earth. This paragraph does not apply to coal or other
20mineral when it is delivered or shipped by the seller to the
21purchaser at a point outside Illinois so that the sale is
22exempt under the United States Constitution as a sale in
23interstate or foreign commerce.
24    Of the money received from the 6.25% general use tax rate
25on tangible personal property which is purchased outside
26Illinois at retail from a retailer and which is titled or

 

 

HB3836- 7 -LRB097 13627 HLH 58266 b

1registered by any agency of this State's government and paid
2into the County and Mass Transit District Fund, the amount for
3which Illinois addresses for titling or registration purposes
4are given as being in each county having more than 3,000,000
5inhabitants shall be distributed into the Regional
6Transportation Authority tax fund, created pursuant to Section
74.03 of the Regional Transportation Authority Act. The
8remainder of the money paid from such sales shall be
9distributed to each county based on sales for which Illinois
10addresses for titling or registration purposes are given as
11being located in the county. Any money paid into the Regional
12Transportation Authority Occupation and Use Tax Replacement
13Fund from the County and Mass Transit District Fund prior to
14January 14, 1991, which has not been paid to the Authority
15prior to that date, shall be transferred to the Regional
16Transportation Authority tax fund.
17    Whenever the Department determines that a refund of money
18paid into the County and Mass Transit District Fund should be
19made to a claimant instead of issuing a credit memorandum, the
20Department shall notify the State Comptroller, who shall cause
21the order to be drawn for the amount specified, and to the
22person named, in such notification from the Department. Such
23refund shall be paid by the State Treasurer out of the County
24and Mass Transit District Fund.
25    As soon as possible after the first day of each month,
26beginning January 1, 2011, upon certification of the Department

 

 

HB3836- 8 -LRB097 13627 HLH 58266 b

1of Revenue, the Comptroller shall order transferred, and the
2Treasurer shall transfer, to the STAR Bonds Revenue Fund the
3local sales tax increment, as defined in the Innovation
4Development and Economy Act, collected during the second
5preceding calendar month for sales within a STAR bond district
6and deposited into the County and Mass Transit District Fund,
7less 3% of that amount, which shall be transferred into the Tax
8Compliance and Administration Fund and shall be used by the
9Department, subject to appropriation, to cover the costs of the
10Department in administering the Innovation Development and
11Economy Act.
12    After the monthly transfer to the STAR Bonds Revenue Fund,
13on or before the 25th day of each calendar month, the
14Department shall prepare and certify to the Comptroller the
15disbursement of stated sums of money to the Regional
16Transportation Authority and to named counties, the counties to
17be those entitled to distribution, as hereinabove provided, of
18taxes or penalties paid to the Department during the second
19preceding calendar month. The amount to be paid to the Regional
20Transportation Authority and each county having 3,000,000 or
21fewer inhabitants shall be the amount (not including credit
22memoranda) collected during the second preceding calendar
23month by the Department and paid into the County and Mass
24Transit District Fund, plus an amount the Department determines
25is necessary to offset any amounts which were erroneously paid
26to a different taxing body, and not including an amount equal

 

 

HB3836- 9 -LRB097 13627 HLH 58266 b

1to the amount of refunds made during the second preceding
2calendar month by the Department, and not including any amount
3which the Department determines is necessary to offset any
4amounts which were payable to a different taxing body but were
5erroneously paid to the Regional Transportation Authority or
6county, and not including any amounts that are transferred to
7the STAR Bonds Revenue Fund. Within 10 days after receipt, by
8the Comptroller, of the disbursement certification to the
9Regional Transportation Authority and counties, provided for
10in this Section to be given to the Comptroller by the
11Department, the Comptroller shall cause the orders to be drawn
12for the respective amounts in accordance with the directions
13contained in such certification.
14    When certifying the amount of a monthly disbursement to the
15Regional Transportation Authority or to a county under this
16Section, the Department shall increase or decrease that amount
17by an amount necessary to offset any misallocation of previous
18disbursements. The offset amount shall be the amount
19erroneously disbursed within the 6 months preceding the time a
20misallocation is discovered.
21    The provisions directing the distributions from the
22special fund in the State Treasury provided for in this Section
23and from the Regional Transportation Authority tax fund created
24by Section 4.03 of the Regional Transportation Authority Act
25shall constitute an irrevocable and continuing appropriation
26of all amounts as provided herein. The State Treasurer and

 

 

HB3836- 10 -LRB097 13627 HLH 58266 b

1State Comptroller are hereby authorized to make distributions
2as provided in this Section.
3    In construing any development, redevelopment, annexation,
4preannexation or other lawful agreement in effect prior to
5September 1, 1990, which describes or refers to receipts from a
6county or municipal retailers' occupation tax, use tax or
7service occupation tax which now cannot be imposed, such
8description or reference shall be deemed to include the
9replacement revenue for such abolished taxes, distributed from
10the County and Mass Transit District Fund or Local Government
11Distributive Fund, as the case may be.
12(Source: P.A. 96-939, eff. 6-24-10; 96-1012, eff. 7-7-10;
1397-333, eff. 8-12-11.)
 
14    Section 10. The Use Tax Act is amended by changing Section
153-10 as follows:
 
16    (35 ILCS 105/3-10)
17    Sec. 3-10. Rate of tax. Unless otherwise provided in this
18Section, the tax imposed by this Act is at the rate of 6.25% of
19either the selling price or the fair market value, if any, of
20the tangible personal property. In all cases where property
21functionally used or consumed is the same as the property that
22was purchased at retail, then the tax is imposed on the selling
23price of the property. In all cases where property functionally
24used or consumed is a by-product or waste product that has been

 

 

HB3836- 11 -LRB097 13627 HLH 58266 b

1refined, manufactured, or produced from property purchased at
2retail, then the tax is imposed on the lower of the fair market
3value, if any, of the specific property so used in this State
4or on the selling price of the property purchased at retail.
5For purposes of this Section "fair market value" means the
6price at which property would change hands between a willing
7buyer and a willing seller, neither being under any compulsion
8to buy or sell and both having reasonable knowledge of the
9relevant facts. The fair market value shall be established by
10Illinois sales by the taxpayer of the same property as that
11functionally used or consumed, or if there are no such sales by
12the taxpayer, then comparable sales or purchases of property of
13like kind and character in Illinois.
14    Beginning on July 1, 2000 and through December 31, 2000,
15with respect to motor fuel, as defined in Section 1.1 of the
16Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
17the Use Tax Act, the tax is imposed at the rate of 1.25%.
18    Beginning on August 6, 2010 through August 15, 2010, with
19respect to sales tax holiday items as defined in Section 3-6 of
20this Act, the tax is imposed at the rate of 1.25%.
21    With respect to gasohol, the tax imposed by this Act
22applies to (i) 70% of the proceeds of sales made on or after
23January 1, 1990, and before July 1, 2003, (ii) 80% of the
24proceeds of sales made on or after July 1, 2003 and on or
25before December 31, 2013, and (iii) 100% of the proceeds of
26sales made thereafter. If, at any time, however, the tax under

 

 

HB3836- 12 -LRB097 13627 HLH 58266 b

1this Act on sales of gasohol is imposed at the rate of 1.25%,
2then the tax imposed by this Act applies to 100% of the
3proceeds of sales of gasohol made during that time.
4    With respect to majority blended ethanol fuel, the tax
5imposed by this Act does not apply to the proceeds of sales
6made on or after July 1, 2003 and on or before December 31,
72013 but applies to 100% of the proceeds of sales made
8thereafter.
9    With respect to biodiesel blends with no less than 1% and
10no more than 10% biodiesel, the tax imposed by this Act applies
11to (i) 80% of the proceeds of sales made on or after July 1,
122003 and on or before December 31, 2013 and (ii) 100% of the
13proceeds of sales made thereafter. If, at any time, however,
14the tax under this Act on sales of biodiesel blends with no
15less than 1% and no more than 10% biodiesel is imposed at the
16rate of 1.25%, then the tax imposed by this Act applies to 100%
17of the proceeds of sales of biodiesel blends with no less than
181% and no more than 10% biodiesel made during that time.
19    With respect to 100% biodiesel and biodiesel blends with
20more than 10% but no more than 99% biodiesel, the tax imposed
21by this Act does not apply to the proceeds of sales made on or
22after July 1, 2003 and on or before December 31, 2013 but
23applies to 100% of the proceeds of sales made thereafter.
24    Beginning on the effective date of this amendatory Act of
25the 97th General Assembly, the Department shall monitor the
26rate of tax imposed on the selling price of motor fuel, as

 

 

HB3836- 13 -LRB097 13627 HLH 58266 b

1defined in Section 1.1 of the Motor Fuel Tax Law, and gasohol,
2as defined in Section 3-40 of this Act, by the states of Iowa,
3Kentucky, and Missouri. If, in any month, the Department finds
4that the rate of tax imposed on the selling price of motor fuel
5or gasohol, or both, by the State of Iowa, the State of
6Kentucky, or the State of Missouri is less than 6.25%, then the
7Department shall, by rule, reduce the rate of tax imposed under
8this Act on motor fuel and gasohol sold within 30 miles of a
9bridge or operating motor vehicle ferry that crosses the
10Illinois border with Iowa, Kentucky, or Missouri, as
11applicable, to 1.25% beginning on the first day of the first
12month to occur not less than 30 days after the date of the
13finding. If the Department finds that the tax imposed on the
14selling price of motor fuel or gasohol, or both, by the State
15of Iowa, the State of Kentucky, or the State of Missouri is
166.25% or higher, then the Department shall, by rule, increase
17the rate of tax imposed under this Act on motor fuel and
18gasohol sold within 30 miles of a bridge or operating motor
19vehicle ferry that crosses the Illinois border with that state
20to 6.25% beginning on the first day of the first month to occur
21not less than 30 days after the date of the finding.
22    With respect to food for human consumption that is to be
23consumed off the premises where it is sold (other than
24alcoholic beverages, soft drinks, and food that has been
25prepared for immediate consumption) and prescription and
26nonprescription medicines, drugs, medical appliances,

 

 

HB3836- 14 -LRB097 13627 HLH 58266 b

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

 

 

HB3836- 15 -LRB097 13627 HLH 58266 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 other
15ingredients or flavorings in the form of bars, drops, or
16pieces. "Candy" does not include any preparation that contains
17flour or requires refrigeration.
18    Notwithstanding any other provisions of this Act,
19beginning September 1, 2009, "nonprescription medicines and
20drugs" does not include grooming and hygiene products. For
21purposes of this Section, "grooming and hygiene products"
22includes, but is not limited to, soaps and cleaning solutions,
23shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
24lotions and screens, unless those products are available by
25prescription only, regardless of whether the products meet the
26definition of "over-the-counter-drugs". For the purposes of

 

 

HB3836- 16 -LRB097 13627 HLH 58266 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 C.F.R. § 201.66. The "over-the-counter-drug"
4label includes:
5        (A) A "Drug Facts" panel; or
6        (B) A statement of the "active ingredient(s)" with a
7    list of those ingredients contained in the compound,
8    substance or preparation.
9    If the property that is purchased at retail from a retailer
10is acquired outside Illinois and used outside Illinois before
11being brought to Illinois for use here and is taxable under
12this Act, the "selling price" on which the tax is computed
13shall be reduced by an amount that represents a reasonable
14allowance for depreciation for the period of prior out-of-state
15use.
16(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
17eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10.)
 
18    Section 15. The Service Use Tax Act is amended by changing
19Section 3-10 as follows:
 
20    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
21    Sec. 3-10. Rate of tax. Unless otherwise provided in this
22Section, the tax imposed by this Act is at the rate of 6.25% of
23the selling price of tangible personal property transferred as
24an incident to the sale of service, but, for the purpose of

 

 

HB3836- 17 -LRB097 13627 HLH 58266 b

1computing this tax, in no event shall the selling price be less
2than the cost price of the property to the serviceman.
3    Beginning on July 1, 2000 and through December 31, 2000,
4with respect to motor fuel, as defined in Section 1.1 of the
5Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
6the Use Tax Act, the tax is imposed at the rate of 1.25%.
7    With respect to gasohol, as defined in the Use Tax Act, the
8tax imposed by this Act applies to (i) 70% of the selling price
9of property transferred as an incident to the sale of service
10on or after January 1, 1990, and before July 1, 2003, (ii) 80%
11of the selling price of property transferred as an incident to
12the sale of service on or after July 1, 2003 and on or before
13December 31, 2013, and (iii) 100% of the selling price
14thereafter. If, at any time, however, the tax under this Act on
15sales of gasohol, as defined in the Use Tax Act, is imposed at
16the rate of 1.25%, then the tax imposed by this Act applies to
17100% of the proceeds of sales of gasohol made during that time.
18    With respect to majority blended ethanol fuel, as defined
19in the Use Tax Act, the tax imposed by this Act does not apply
20to the selling price of property transferred as an incident to
21the sale of service on or after July 1, 2003 and on or before
22December 31, 2013 but applies to 100% of the selling price
23thereafter.
24    With respect to biodiesel blends, as defined in the Use Tax
25Act, with no less than 1% and no more than 10% biodiesel, the
26tax imposed by this Act applies to (i) 80% of the selling price

 

 

HB3836- 18 -LRB097 13627 HLH 58266 b

1of property transferred as an incident to the sale of service
2on or after July 1, 2003 and on or before December 31, 2013 and
3(ii) 100% of the proceeds of the selling price thereafter. If,
4at any time, however, the tax under this Act on sales of
5biodiesel blends, as defined in the Use Tax Act, with no less
6than 1% and no more than 10% biodiesel is imposed at the rate
7of 1.25%, then the tax imposed by this Act applies to 100% of
8the proceeds of sales of biodiesel blends with no less than 1%
9and no more than 10% biodiesel made during that time.
10    With respect to 100% biodiesel, as defined in the Use Tax
11Act, and biodiesel blends, as defined in the Use Tax Act, with
12more than 10% but no more than 99% biodiesel, the tax imposed
13by this Act does not apply to the proceeds of the selling price
14of property transferred as an incident to the sale of service
15on or after July 1, 2003 and on or before December 31, 2013 but
16applies to 100% of the selling price thereafter.
17    Beginning on the effective date of this amendatory Act of
18the 97th General Assembly, the Department shall monitor the
19rate of tax imposed on the selling price of motor fuel, as
20defined in Section 1.1 of the Motor Fuel Tax Law, and gasohol,
21as defined in Section 3-40 of the Use Tax Act, by the states of
22Iowa, Kentucky, and Missouri. If, in any month, the Department
23finds that the rate of tax imposed on the selling price of
24motor fuel or gasohol, or both, by the State of Iowa, the State
25of Kentucky, or the State of Missouri is less than 6.25%, then
26the Department shall, by rule, reduce the rate of tax imposed

 

 

HB3836- 19 -LRB097 13627 HLH 58266 b

1under this Act on motor fuel and gasohol sold within 30 miles
2of a bridge or operating motor vehicle ferry that crosses the
3Illinois border with Iowa, Kentucky, or Missouri, as
4applicable, to 1.25% beginning on the first day of the first
5month to occur not less than 30 days after the date of the
6finding. If the Department finds that the tax imposed on the
7selling price of motor fuel or gasohol, or both, by the State
8of Iowa, the State of Kentucky, or the State of Missouri is
96.25% or higher, then the Department shall, by rule, increase
10the rate of tax imposed under this Act on motor fuel and
11gasohol sold within 30 miles of a bridge or operating motor
12vehicle ferry that crosses the Illinois border with that state
13to 6.25% beginning on the first day of the first month to occur
14not less than 30 days after the date of the finding.
15    At the election of any registered serviceman made for each
16fiscal year, sales of service in which the aggregate annual
17cost price of tangible personal property transferred as an
18incident to the sales of service is less than 35%, or 75% in
19the case of servicemen transferring prescription drugs or
20servicemen engaged in graphic arts production, of the aggregate
21annual total gross receipts from all sales of service, the tax
22imposed by this Act shall be based on the serviceman's cost
23price of the tangible personal property transferred as an
24incident to the sale of those services.
25    The tax shall be imposed at the rate of 1% on food prepared
26for immediate consumption and transferred incident to a sale of

 

 

HB3836- 20 -LRB097 13627 HLH 58266 b

1service subject to this Act or the Service Occupation Tax Act
2by an entity licensed under the Hospital Licensing Act, the
3Nursing Home Care Act, the ID/DD Community Care Act, the
4Specialized Mental Health Rehabilitation Act, or the Child Care
5Act of 1969. The tax shall also be imposed at the rate of 1% on
6food for human consumption that is to be consumed off the
7premises where it is sold (other than alcoholic beverages, soft
8drinks, and food that has been prepared for immediate
9consumption and is not otherwise included in this paragraph)
10and prescription and nonprescription medicines, drugs, medical
11appliances, modifications to a motor vehicle for the purpose of
12rendering it usable by a disabled person, and insulin, urine
13testing materials, syringes, and needles used by diabetics, for
14human use. For the purposes of this Section, until September 1,
152009: the term "soft drinks" means any complete, finished,
16ready-to-use, non-alcoholic drink, whether carbonated or not,
17including but not limited to soda water, cola, fruit juice,
18vegetable juice, carbonated water, and all other preparations
19commonly known as soft drinks of whatever kind or description
20that are contained in any closed or sealed bottle, can, carton,
21or container, regardless of size; but "soft drinks" does not
22include coffee, tea, non-carbonated water, infant formula,
23milk or milk products as defined in the Grade A Pasteurized
24Milk and Milk Products Act, or drinks containing 50% or more
25natural fruit or vegetable juice.
26    Notwithstanding any other provisions of this Act,

 

 

HB3836- 21 -LRB097 13627 HLH 58266 b

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

 

 

HB3836- 22 -LRB097 13627 HLH 58266 b

1    Notwithstanding any other provisions of this Act,
2beginning September 1, 2009, "nonprescription medicines and
3drugs" does not include grooming and hygiene products. For
4purposes of this Section, "grooming and hygiene products"
5includes, but is not limited to, soaps and cleaning solutions,
6shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
7lotions and screens, unless those products are available by
8prescription only, regardless of whether the products meet the
9definition of "over-the-counter-drugs". For the purposes of
10this paragraph, "over-the-counter-drug" means a drug for human
11use that contains a label that identifies the product as a drug
12as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
13label includes:
14        (A) A "Drug Facts" panel; or
15        (B) A statement of the "active ingredient(s)" with a
16    list of those ingredients contained in the compound,
17    substance or preparation.
18    If the property that is acquired from a serviceman is
19acquired outside Illinois and used outside Illinois before
20being brought to Illinois for use here and is taxable under
21this Act, the "selling price" on which the tax is computed
22shall be reduced by an amount that represents a reasonable
23allowance for depreciation for the period of prior out-of-state
24use.
25(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
26eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38,

 

 

HB3836- 23 -LRB097 13627 HLH 58266 b

1eff. 6-28-11; 97-227, eff. 1-1-12; revised 9-12-11.)
 
2    Section 20. The Service Occupation Tax Act is amended by
3changing Section 3-10 as follows:
 
4    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
5    Sec. 3-10. Rate of tax. Unless otherwise provided in this
6Section, the tax imposed by this Act is at the rate of 6.25% of
7the "selling price", as defined in Section 2 of the Service Use
8Tax Act, of the tangible personal property. For the purpose of
9computing this tax, in no event shall the "selling price" be
10less than the cost price to the serviceman of the tangible
11personal property transferred. The selling price of each item
12of tangible personal property transferred as an incident of a
13sale of service may be shown as a distinct and separate item on
14the serviceman's billing to the service customer. If the
15selling price is not so shown, the selling price of the
16tangible personal property is deemed to be 50% of the
17serviceman's entire billing to the service customer. When,
18however, a serviceman contracts to design, develop, and produce
19special order machinery or equipment, the tax imposed by this
20Act shall be based on the serviceman's cost price of the
21tangible personal property transferred incident to the
22completion of the contract.
23    Beginning on July 1, 2000 and through December 31, 2000,
24with respect to motor fuel, as defined in Section 1.1 of the

 

 

HB3836- 24 -LRB097 13627 HLH 58266 b

1Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
2the Use Tax Act, the tax is imposed at the rate of 1.25%.
3    With respect to gasohol, as defined in the Use Tax Act, the
4tax imposed by this Act shall apply to (i) 70% of the cost
5price of property transferred as an incident to the sale of
6service on or after January 1, 1990, and before July 1, 2003,
7(ii) 80% of the selling price of property transferred as an
8incident to the sale of service on or after July 1, 2003 and on
9or before December 31, 2013, and (iii) 100% of the cost price
10thereafter. If, at any time, however, the tax under this Act on
11sales of gasohol, as defined in the Use Tax Act, is imposed at
12the rate of 1.25%, then the tax imposed by this Act applies to
13100% of the proceeds of sales of gasohol made during that time.
14    With respect to majority blended ethanol fuel, as defined
15in the Use Tax Act, the tax imposed by this Act does not apply
16to the selling price of property transferred as an incident to
17the sale of service on or after July 1, 2003 and on or before
18December 31, 2013 but applies to 100% of the selling price
19thereafter.
20    With respect to biodiesel blends, as defined in the Use Tax
21Act, with no less than 1% and no more than 10% biodiesel, the
22tax imposed by this Act applies to (i) 80% of the selling price
23of property transferred as an incident to the sale of service
24on or after July 1, 2003 and on or before December 31, 2013 and
25(ii) 100% of the proceeds of the selling price thereafter. If,
26at any time, however, the tax under this Act on sales of

 

 

HB3836- 25 -LRB097 13627 HLH 58266 b

1biodiesel blends, as defined in the Use Tax Act, with no less
2than 1% and no more than 10% biodiesel is imposed at the rate
3of 1.25%, then the tax imposed by this Act applies to 100% of
4the proceeds of sales of biodiesel blends with no less than 1%
5and no more than 10% biodiesel made during that time.
6    With respect to 100% biodiesel, as defined in the Use Tax
7Act, and biodiesel blends, as defined in the Use Tax Act, with
8more than 10% but no more than 99% biodiesel material, the tax
9imposed by this Act does not apply to the proceeds of the
10selling price of property transferred as an incident to the
11sale of service on or after July 1, 2003 and on or before
12December 31, 2013 but applies to 100% of the selling price
13thereafter.
14    Beginning on the effective date of this amendatory Act of
15the 97th General Assembly, the Department shall monitor the
16rate of tax imposed on the selling price of motor fuel, as
17defined in Section 1.1 of the Motor Fuel Tax Law, and gasohol,
18as defined in Section 3-40 of the Use Tax Act, by the states of
19Iowa, Kentucky, and Missouri. If, in any month, the Department
20finds that the rate of tax imposed on the selling price of
21motor fuel or gasohol, or both, by the State of Iowa, the State
22of Kentucky, or the State of Missouri is less than 6.25%, then
23the Department shall, by rule, reduce the rate of tax imposed
24under this Act on motor fuel and gasohol sold within 30 miles
25of a bridge or operating motor vehicle ferry that crosses the
26Illinois border with Iowa, Kentucky, or Missouri, as

 

 

HB3836- 26 -LRB097 13627 HLH 58266 b

1applicable, to 1.25% beginning on the first day of the first
2month to occur not less than 30 days after the date of the
3finding. If the Department finds that the tax imposed on the
4selling price of motor fuel or gasohol, or both, by the State
5of Iowa, the State of Kentucky, or the State of Missouri is
66.25% or higher, then the Department shall, by rule, increase
7the rate of tax imposed under this Act on motor fuel and
8gasohol sold within 30 miles of a bridge or operating motor
9vehicle ferry that crosses the Illinois border with that state
10to 6.25% beginning on the first day of the first month to occur
11not less than 30 days after the date of the finding.
12    At the election of any registered serviceman made for each
13fiscal year, sales of service in which the aggregate annual
14cost price of tangible personal property transferred as an
15incident to the sales of service is less than 35%, or 75% in
16the case of servicemen transferring prescription drugs or
17servicemen engaged in graphic arts production, of the aggregate
18annual total gross receipts from all sales of service, the tax
19imposed by this Act shall be based on the serviceman's cost
20price of the tangible personal property transferred incident to
21the sale of those services.
22    The tax shall be imposed at the rate of 1% on food prepared
23for immediate consumption and transferred incident to a sale of
24service subject to this Act or the Service Occupation Tax Act
25by an entity licensed under the Hospital Licensing Act, the
26Nursing Home Care Act, the ID/DD Community Care Act, the

 

 

HB3836- 27 -LRB097 13627 HLH 58266 b

1Specialized Mental Health Rehabilitation Act, or the Child Care
2Act of 1969. The tax shall also be imposed at the rate of 1% on
3food for human consumption that is to be consumed off the
4premises where it is sold (other than alcoholic beverages, soft
5drinks, and food that has been prepared for immediate
6consumption and is not otherwise included in this paragraph)
7and prescription and nonprescription medicines, drugs, medical
8appliances, modifications to a motor vehicle for the purpose of
9rendering it usable by a disabled person, and insulin, urine
10testing materials, syringes, and needles used by diabetics, for
11human use. For the purposes of this Section, until September 1,
122009: the term "soft drinks" means any complete, finished,
13ready-to-use, non-alcoholic drink, whether carbonated or not,
14including but not limited to soda water, cola, fruit juice,
15vegetable juice, carbonated water, and all other preparations
16commonly known as soft drinks of whatever kind or description
17that are contained in any closed or sealed can, carton, or
18container, regardless of size; but "soft drinks" does not
19include coffee, tea, non-carbonated water, infant formula,
20milk or milk products as defined in the Grade A Pasteurized
21Milk and Milk Products Act, or drinks containing 50% or more
22natural fruit or vegetable juice.
23    Notwithstanding any other provisions of this Act,
24beginning September 1, 2009, "soft drinks" means non-alcoholic
25beverages that contain natural or artificial sweeteners. "Soft
26drinks" do not include beverages that contain milk or milk

 

 

HB3836- 28 -LRB097 13627 HLH 58266 b

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

 

 

HB3836- 29 -LRB097 13627 HLH 58266 b

1purposes of this Section, "grooming and hygiene products"
2includes, but is not limited to, soaps and cleaning solutions,
3shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
4lotions and screens, unless those products are available by
5prescription only, regardless of whether the products meet the
6definition of "over-the-counter-drugs". For the purposes of
7this paragraph, "over-the-counter-drug" means a drug for human
8use that contains a label that identifies the product as a drug
9as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
10label includes:
11        (A) A "Drug Facts" panel; or
12        (B) A statement of the "active ingredient(s)" with a
13    list of those ingredients contained in the compound,
14    substance or preparation.
15(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
16eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38,
17eff. 6-28-11; 97-227, eff. 1-1-12; revised 9-12-11.)
 
18    Section 25. The Retailers' Occupation Tax Act is amended by
19changing Section 2-10 as follows:
 
20    (35 ILCS 120/2-10)
21    Sec. 2-10. Rate of tax. Unless otherwise provided in this
22Section, the tax imposed by this Act is at the rate of 6.25% of
23gross receipts from sales of tangible personal property made in
24the course of business.

 

 

HB3836- 30 -LRB097 13627 HLH 58266 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    Beginning on August 6, 2010 through August 15, 2010, with
6respect to sales tax holiday items as defined in Section 2-8 of
7this Act, the tax is imposed at the rate of 1.25%.
8    Within 14 days after the effective date of this amendatory
9Act of the 91st General Assembly, each retailer of motor fuel
10and gasohol shall cause the following notice to be posted in a
11prominently visible place on each retail dispensing device that
12is used to dispense motor fuel or gasohol in the State of
13Illinois: "As of July 1, 2000, the State of Illinois has
14eliminated the State's share of sales tax on motor fuel and
15gasohol through December 31, 2000. The price on this pump
16should reflect the elimination of the tax." The notice shall be
17printed in bold print on a sign that is no smaller than 4
18inches by 8 inches. The sign shall be clearly visible to
19customers. Any retailer who fails to post or maintain a
20required sign through December 31, 2000 is guilty of a petty
21offense for which the fine shall be $500 per day per each
22retail premises where a violation occurs.
23    With respect to gasohol, as defined in the Use Tax Act, the
24tax imposed by this Act applies to (i) 70% of the proceeds of
25sales made on or after January 1, 1990, and before July 1,
262003, (ii) 80% of the proceeds of sales made on or after July

 

 

HB3836- 31 -LRB097 13627 HLH 58266 b

11, 2003 and on or before December 31, 2013, and (iii) 100% of
2the proceeds of sales made thereafter. If, at any time,
3however, the tax under this Act on sales of gasohol, as defined
4in the Use Tax Act, is imposed at the rate of 1.25%, then the
5tax imposed by this Act applies to 100% of the proceeds of
6sales of gasohol made during that time.
7    With respect to majority blended ethanol fuel, as defined
8in the Use Tax Act, the tax imposed by this Act does not apply
9to the proceeds of sales made on or after July 1, 2003 and on or
10before December 31, 2013 but applies to 100% of the proceeds of
11sales made thereafter.
12    With respect to biodiesel blends, as defined in the Use Tax
13Act, with no less than 1% and no more than 10% biodiesel, the
14tax imposed by this Act applies to (i) 80% of the proceeds of
15sales made on or after July 1, 2003 and on or before December
1631, 2013 and (ii) 100% of the proceeds of sales made
17thereafter. If, at any time, however, the tax under this Act on
18sales of biodiesel blends, as defined in the Use Tax Act, with
19no less than 1% and no more than 10% biodiesel is imposed at
20the rate of 1.25%, then the tax imposed by this Act applies to
21100% of the proceeds of sales of biodiesel blends with no less
22than 1% and no more than 10% biodiesel made during that time.
23    With respect to 100% biodiesel, as defined in the Use Tax
24Act, and biodiesel blends, as defined in the Use Tax Act, with
25more than 10% but no more than 99% biodiesel, the tax imposed
26by this Act does not apply to the proceeds of sales made on or

 

 

HB3836- 32 -LRB097 13627 HLH 58266 b

1after July 1, 2003 and on or before December 31, 2013 but
2applies to 100% of the proceeds of sales made thereafter.
3    Beginning on the effective date of this amendatory Act of
4the 97th General Assembly, the Department shall monitor the
5rate of tax imposed on the selling price of motor fuel, as
6defined in Section 1.1 of the Motor Fuel Tax Law, and gasohol,
7as defined in Section 3-40 of the Use Tax Act, by the states of
8Iowa, Kentucky, and Missouri. If, in any month, the Department
9finds that the rate of tax imposed on the selling price of
10motor fuel or gasohol, or both, by the State of Iowa, the State
11of Kentucky, or the State of Missouri is less than 6.25%, then
12the Department shall, by rule, reduce the rate of tax imposed
13under this Act on motor fuel and gasohol sold within 30 miles
14of a bridge or operating motor vehicle ferry that crosses the
15Illinois border with Iowa, Kentucky, or Missouri, as
16applicable, to 1.25% beginning on the first day of the first
17month to occur not less than 30 days after the date of the
18finding. If the Department finds that the tax imposed on the
19selling price of motor fuel or gasohol, or both, by the State
20of Iowa, the State of Kentucky, or the State of Missouri is
216.25% or higher, then the Department shall, by rule, increase
22the rate of tax imposed under this Act on motor fuel and
23gasohol sold within 30 miles of a bridge or operating motor
24vehicle ferry that crosses the Illinois border with that state
25to 6.25% beginning on the first day of the first month to occur
26not less than 30 days after the date of the finding.

 

 

HB3836- 33 -LRB097 13627 HLH 58266 b

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

 

 

HB3836- 34 -LRB097 13627 HLH 58266 b

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

 

 

HB3836- 35 -LRB097 13627 HLH 58266 b

1includes, but is not limited to, soaps and cleaning solutions,
2shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
3lotions and screens, unless those products are available by
4prescription only, regardless of whether the products meet the
5definition of "over-the-counter-drugs". For the purposes of
6this paragraph, "over-the-counter-drug" means a drug for human
7use that contains a label that identifies the product as a drug
8as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
9label includes:
10        (A) A "Drug Facts" panel; or
11        (B) A statement of the "active ingredient(s)" with a
12    list of those ingredients contained in the compound,
13    substance or preparation.
14(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
15eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.