97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB6147

 

Introduced , by Rep. Bill Mitchell - Adam Brown - Wayne Rosenthal - Dwight Kay - Sandy Cole, et al.

 

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 the tax is imposed at the rate of 6.25% upon all sales of motor fuel and gasohol at a retail price of up to $2.50 per gallon, and is imposed at the rate of 1.25% upon any portion of the retail price of motor fuel or gasohol that exceeds $2.50 per gallon. Effective immediately.


LRB097 20978 HLH 68226 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB6147LRB097 20978 HLH 68226 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    (Text of Section before amendment by P.A. 97-636)
8    Sec. 3-10. Rate of tax. Unless otherwise provided in this
9Section, the tax imposed by this Act is at the rate of 6.25% of
10either the selling price or the fair market value, if any, of
11the tangible personal property. In all cases where property
12functionally used or consumed is the same as the property that
13was purchased at retail, then the tax is imposed on the selling
14price of the property. In all cases where property functionally
15used or consumed is a by-product or waste product that has been
16refined, manufactured, or produced from property purchased at
17retail, then the tax is imposed on the lower of the fair market
18value, if any, of the specific property so used in this State
19or on the selling price of the property purchased at retail.
20For purposes of this Section "fair market value" means the
21price at which property would change hands between a willing
22buyer and a willing seller, neither being under any compulsion
23to buy or sell and both having reasonable knowledge of the

 

 

HB6147- 2 -LRB097 20978 HLH 68226 b

1relevant facts. The fair market value shall be established by
2Illinois sales by the taxpayer of the same property as that
3functionally used or consumed, or if there are no such sales by
4the taxpayer, then comparable sales or purchases of property of
5like kind and character in Illinois.
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    Beginning on July 1, 2012, with respect to motor fuel, as
11defined in Section 1.1 of the Motor Fuel Tax Law, and gasohol,
12as defined in Section 3-40 of the Use Tax Act, the tax is
13imposed at the rate of 6.25% upon all sales of motor fuel and
14gasohol at a retail price of up to $2.50 per gallon, and is
15imposed at the rate of 1.25% upon any portion of the retail
16price of motor fuel or gasohol that exceeds $2.50 per gallon.
17    Beginning on August 6, 2010 through August 15, 2010, with
18respect to sales tax holiday items as defined in Section 3-6 of
19this Act, the tax is imposed at the rate of 1.25%.
20    With respect to gasohol, the tax imposed by this Act
21applies to (i) 70% of the proceeds of sales made on or after
22January 1, 1990, and before July 1, 2003, (ii) 80% of the
23proceeds of sales made on or after July 1, 2003 and on or
24before December 31, 2013, and (iii) 100% of the proceeds of
25sales made thereafter. If, at any time, however, the tax under
26this Act on sales of gasohol is imposed at the rate of 1.25%,

 

 

HB6147- 3 -LRB097 20978 HLH 68226 b

1then the tax imposed by this Act applies to 100% of the
2proceeds of sales of gasohol made during that time.
3    With respect to majority blended ethanol fuel, the tax
4imposed by this Act does not apply to the proceeds of sales
5made on or after July 1, 2003 and on or before December 31,
62013 but applies to 100% of the proceeds of sales made
7thereafter.
8    With respect to biodiesel blends with no less than 1% and
9no more than 10% biodiesel, the tax imposed by this Act applies
10to (i) 80% of the proceeds of sales made on or after July 1,
112003 and on or before December 31, 2013 and (ii) 100% of the
12proceeds of sales made thereafter. If, at any time, however,
13the tax under this Act on sales of biodiesel blends with no
14less than 1% and no more than 10% biodiesel is imposed at the
15rate of 1.25%, then the tax imposed by this Act applies to 100%
16of the proceeds of sales of biodiesel blends with no less than
171% and no more than 10% biodiesel made during that time.
18    With respect to 100% biodiesel and biodiesel blends with
19more than 10% but no more than 99% biodiesel, the tax imposed
20by this Act does not apply to the proceeds of sales made on or
21after July 1, 2003 and on or before December 31, 2013 but
22applies to 100% of the proceeds of sales made thereafter.
23    With respect to food for human consumption that is to be
24consumed off the premises where it is sold (other than
25alcoholic beverages, soft drinks, and food that has been
26prepared for immediate consumption) and prescription and

 

 

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

 

 

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

 

 

HB6147- 6 -LRB097 20978 HLH 68226 b

1definition of "over-the-counter-drugs". For the purposes of
2this paragraph, "over-the-counter-drug" means a drug for human
3use that contains a label that identifies the product as a drug
4as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
5label includes:
6        (A) A "Drug Facts" panel; or
7        (B) A statement of the "active ingredient(s)" with a
8    list of those ingredients contained in the compound,
9    substance or preparation.
10    If the property that is purchased at retail from a retailer
11is acquired outside Illinois and used outside Illinois before
12being brought to Illinois for use here and is taxable under
13this Act, the "selling price" on which the tax is computed
14shall be reduced by an amount that represents a reasonable
15allowance for depreciation for the period of prior out-of-state
16use.
17(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
18eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10.)
 
19    (Text of Section after amendment by P.A. 97-636)
20    Sec. 3-10. Rate of tax. Unless otherwise provided in this
21Section, the tax imposed by this Act is at the rate of 6.25% of
22either the selling price or the fair market value, if any, of
23the tangible personal property. In all cases where property
24functionally used or consumed is the same as the property that
25was purchased at retail, then the tax is imposed on the selling

 

 

HB6147- 7 -LRB097 20978 HLH 68226 b

1price of the property. In all cases where property functionally
2used or consumed is a by-product or waste product that has been
3refined, manufactured, or produced from property purchased at
4retail, then the tax is imposed on the lower of the fair market
5value, if any, of the specific property so used in this State
6or on the selling price of the property purchased at retail.
7For purposes of this Section "fair market value" means the
8price at which property would change hands between a willing
9buyer and a willing seller, neither being under any compulsion
10to buy or sell and both having reasonable knowledge of the
11relevant facts. The fair market value shall be established by
12Illinois sales by the taxpayer of the same property as that
13functionally used or consumed, or if there are no such sales by
14the taxpayer, then comparable sales or purchases of property of
15like kind and character in Illinois.
16    Beginning on July 1, 2000 and through December 31, 2000,
17with respect to motor fuel, as defined in Section 1.1 of the
18Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
19the Use Tax Act, the tax is imposed at the rate of 1.25%.
20    Beginning on July 1, 2012, with respect to motor fuel, as
21defined in Section 1.1 of the Motor Fuel Tax Law, and gasohol,
22as defined in Section 3-40 of the Use Tax Act, the tax is
23imposed at the rate of 6.25% upon all sales of motor fuel and
24gasohol at a retail price of up to $2.50 per gallon, and is
25imposed at the rate of 1.25% upon any portion of the retail
26price of motor fuel or gasohol that exceeds $2.50 per gallon.

 

 

HB6147- 8 -LRB097 20978 HLH 68226 b

1    Beginning on August 6, 2010 through August 15, 2010, with
2respect to sales tax holiday items as defined in Section 3-6 of
3this Act, the tax is imposed at the rate of 1.25%.
4    With respect to gasohol, the tax imposed by this Act
5applies to (i) 70% of the proceeds of sales made on or after
6January 1, 1990, and before July 1, 2003, (ii) 80% of the
7proceeds of sales made on or after July 1, 2003 and on or
8before December 31, 2018, and (iii) 100% of the proceeds of
9sales made thereafter. If, at any time, however, the tax under
10this Act on sales of gasohol is imposed at the rate of 1.25%,
11then the tax imposed by this Act applies to 100% of the
12proceeds of sales of gasohol made during that time.
13    With respect to majority blended ethanol fuel, the tax
14imposed by this Act does not apply to the proceeds of sales
15made on or after July 1, 2003 and on or before December 31,
162018 but applies to 100% of the proceeds of sales made
17thereafter.
18    With respect to biodiesel blends with no less than 1% and
19no more than 10% biodiesel, the tax imposed by this Act applies
20to (i) 80% of the proceeds of sales made on or after July 1,
212003 and on or before December 31, 2018 and (ii) 100% of the
22proceeds of sales made thereafter. If, at any time, however,
23the tax under this Act on sales of biodiesel blends with no
24less than 1% and no more than 10% biodiesel is imposed at the
25rate of 1.25%, then the tax imposed by this Act applies to 100%
26of the proceeds of sales of biodiesel blends with no less than

 

 

HB6147- 9 -LRB097 20978 HLH 68226 b

11% and no more than 10% biodiesel made during that time.
2    With respect to 100% biodiesel and biodiesel blends with
3more than 10% but no more than 99% biodiesel, the tax imposed
4by this Act does not apply to the proceeds of sales made on or
5after July 1, 2003 and on or before December 31, 2018 but
6applies to 100% of the proceeds of sales made thereafter.
7    With respect to food for human consumption that is to be
8consumed off the premises where it is sold (other than
9alcoholic beverages, soft drinks, and food that has been
10prepared for immediate consumption) and prescription and
11nonprescription medicines, drugs, medical appliances,
12modifications to a motor vehicle for the purpose of rendering
13it usable by a disabled person, and insulin, urine testing
14materials, syringes, and needles used by diabetics, for human
15use, the tax is imposed at the rate of 1%. For the purposes of
16this Section, until September 1, 2009: the term "soft drinks"
17means any complete, finished, ready-to-use, non-alcoholic
18drink, whether carbonated or not, including but not limited to
19soda water, cola, fruit juice, vegetable juice, carbonated
20water, and all other preparations commonly known as soft drinks
21of whatever kind or description that are contained in any
22closed or sealed bottle, can, carton, or container, regardless
23of size; but "soft drinks" does not include coffee, tea,
24non-carbonated water, infant formula, milk or milk products as
25defined in the Grade A Pasteurized Milk and Milk Products Act,
26or drinks containing 50% or more natural fruit or vegetable

 

 

HB6147- 10 -LRB097 20978 HLH 68226 b

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

 

 

HB6147- 11 -LRB097 20978 HLH 68226 b

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

 

 

HB6147- 12 -LRB097 20978 HLH 68226 b

1(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
2eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10;
397-636, eff. 6-1-12.)
 
4    Section 10. The Service Use Tax Act is amended by changing
5Section 3-10 as follows:
 
6    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
7    (Text of Section before amendment by P.A. 97-636)
8    Sec. 3-10. Rate of tax. Unless otherwise provided in this
9Section, the tax imposed by this Act is at the rate of 6.25% of
10the selling price of tangible personal property transferred as
11an incident to the sale of service, but, for the purpose of
12computing this tax, in no event shall the selling price be less
13than the cost price of the property to the serviceman.
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 July 1, 2012, with respect to motor fuel, as
19defined in Section 1.1 of the Motor Fuel Tax Law, and gasohol,
20as defined in Section 3-40 of the Use Tax Act, the tax is
21imposed at the rate of 6.25% upon all sales of motor fuel and
22gasohol at a retail price of up to $2.50 per gallon, and is
23imposed at the rate of 1.25% upon any portion of the retail
24price of motor fuel or gasohol that exceeds $2.50 per gallon.

 

 

HB6147- 13 -LRB097 20978 HLH 68226 b

1    With respect to gasohol, as defined in the Use Tax Act, the
2tax imposed by this Act applies to (i) 70% of the selling price
3of property transferred as an incident to the sale of service
4on or after January 1, 1990, and before July 1, 2003, (ii) 80%
5of the selling price of property transferred as an incident to
6the sale of service on or after July 1, 2003 and on or before
7December 31, 2013, and (iii) 100% of the selling price
8thereafter. If, at any time, however, the tax under this Act on
9sales of gasohol, as defined in the Use Tax Act, is imposed at
10the rate of 1.25%, then the tax imposed by this Act applies to
11100% of the proceeds of sales of gasohol made during that time.
12    With respect to majority blended ethanol fuel, as defined
13in the Use Tax Act, the tax imposed by this Act does not apply
14to the selling price of property transferred as an incident to
15the sale of service on or after July 1, 2003 and on or before
16December 31, 2013 but applies to 100% of the selling price
17thereafter.
18    With respect to biodiesel blends, as defined in the Use Tax
19Act, with no less than 1% and no more than 10% biodiesel, the
20tax imposed by this Act applies to (i) 80% of the selling price
21of property transferred as an incident to the sale of service
22on or after July 1, 2003 and on or before December 31, 2013 and
23(ii) 100% of the proceeds of the selling price thereafter. If,
24at any time, however, the tax under this Act on sales of
25biodiesel blends, as defined in the Use Tax Act, with no less
26than 1% and no more than 10% biodiesel is imposed at the rate

 

 

HB6147- 14 -LRB097 20978 HLH 68226 b

1of 1.25%, then the tax imposed by this Act applies to 100% of
2the proceeds of sales of biodiesel blends with no less than 1%
3and no more than 10% biodiesel made during that time.
4    With respect to 100% biodiesel, as defined in the Use Tax
5Act, and biodiesel blends, as defined in the Use Tax Act, with
6more than 10% but no more than 99% biodiesel, the tax imposed
7by this Act does not apply to the proceeds of the selling price
8of property transferred as an incident to the sale of service
9on or after July 1, 2003 and on or before December 31, 2013 but
10applies to 100% of the selling price thereafter.
11    At the election of any registered serviceman made for each
12fiscal year, sales of service in which the aggregate annual
13cost price of tangible personal property transferred as an
14incident to the sales of service is less than 35%, or 75% in
15the case of servicemen transferring prescription drugs or
16servicemen engaged in graphic arts production, of the aggregate
17annual total gross receipts from all sales of service, the tax
18imposed by this Act shall be based on the serviceman's cost
19price of the tangible personal property transferred as an
20incident to the sale of those services.
21    The tax shall be imposed at the rate of 1% on food prepared
22for immediate consumption and transferred incident to a sale of
23service subject to this Act or the Service Occupation Tax Act
24by an entity licensed under the Hospital Licensing Act, the
25Nursing Home Care Act, the ID/DD Community Care Act, the
26Specialized Mental Health Rehabilitation Act, or the Child Care

 

 

HB6147- 15 -LRB097 20978 HLH 68226 b

1Act of 1969. The tax shall also be imposed at the rate of 1% on
2food for human consumption that is to be consumed off the
3premises where it is sold (other than alcoholic beverages, soft
4drinks, and food that has been prepared for immediate
5consumption and is not otherwise included in this paragraph)
6and prescription and nonprescription medicines, drugs, medical
7appliances, modifications to a motor vehicle for the purpose of
8rendering it usable by a disabled person, and insulin, urine
9testing materials, syringes, and needles used by diabetics, for
10human use. For the purposes of this Section, until September 1,
112009: the term "soft drinks" means any complete, finished,
12ready-to-use, non-alcoholic drink, whether carbonated or not,
13including but not limited to soda water, cola, fruit juice,
14vegetable juice, carbonated water, and all other preparations
15commonly known as soft drinks of whatever kind or description
16that are contained in any closed or sealed bottle, can, carton,
17or container, regardless of size; but "soft drinks" does not
18include coffee, tea, non-carbonated water, infant formula,
19milk or milk products as defined in the Grade A Pasteurized
20Milk and Milk Products Act, or drinks containing 50% or more
21natural fruit or vegetable juice.
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

 

 

HB6147- 16 -LRB097 20978 HLH 68226 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"

 

 

HB6147- 17 -LRB097 20978 HLH 68226 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    If the property that is acquired from a serviceman is
15acquired outside Illinois and used outside Illinois before
16being brought to Illinois for use here and is taxable under
17this Act, the "selling price" on which the tax is computed
18shall be reduced by an amount that represents a reasonable
19allowance for depreciation for the period of prior out-of-state
20use.
21(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
22eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38,
23eff. 6-28-11; 97-227, eff. 1-1-12; revised 9-12-11.)
 
24    (Text of Section after amendment by P.A. 97-636)
25    Sec. 3-10. Rate of tax. Unless otherwise provided in this

 

 

HB6147- 18 -LRB097 20978 HLH 68226 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    Beginning on July 1, 2012, with respect to motor fuel, as
11defined in Section 1.1 of the Motor Fuel Tax Law, and gasohol,
12as defined in Section 3-40 of the Use Tax Act, the tax is
13imposed at the rate of 6.25% upon all sales of motor fuel and
14gasohol at a retail price of up to $2.50 per gallon, and is
15imposed at the rate of 1.25% upon any portion of the retail
16price of motor fuel or gasohol that exceeds $2.50 per gallon.
17    With respect to gasohol, as defined in the Use Tax Act, the
18tax imposed by this Act applies to (i) 70% of the selling price
19of property transferred as an incident to the sale of service
20on or after January 1, 1990, and before July 1, 2003, (ii) 80%
21of the selling price of property transferred as an incident to
22the sale of service on or after July 1, 2003 and on or before
23December 31, 2018, and (iii) 100% of the selling price
24thereafter. If, at any time, however, the tax under this Act on
25sales of gasohol, as defined in the Use Tax Act, is imposed at
26the rate of 1.25%, then the tax imposed by this Act applies to

 

 

HB6147- 19 -LRB097 20978 HLH 68226 b

1100% of the proceeds of sales of gasohol made during that time.
2    With respect to majority blended ethanol fuel, as defined
3in the Use Tax Act, the tax imposed by this Act does not apply
4to the selling price of property transferred as an incident to
5the sale of service on or after July 1, 2003 and on or before
6December 31, 2018 but applies to 100% of the selling price
7thereafter.
8    With respect to biodiesel blends, as defined in the Use Tax
9Act, with no less than 1% and no more than 10% biodiesel, the
10tax imposed by this Act applies to (i) 80% of the selling price
11of property transferred as an incident to the sale of service
12on or after July 1, 2003 and on or before December 31, 2018 and
13(ii) 100% of the proceeds of the selling price thereafter. If,
14at any time, however, the tax under this Act on sales of
15biodiesel blends, as defined in the Use Tax Act, with no less
16than 1% and no more than 10% biodiesel is imposed at the rate
17of 1.25%, then the tax imposed by this Act applies to 100% of
18the proceeds of sales of biodiesel blends with no less than 1%
19and no more than 10% biodiesel made during that time.
20    With respect to 100% biodiesel, as defined in the Use Tax
21Act, and biodiesel blends, as defined in the Use Tax Act, with
22more than 10% but no more than 99% biodiesel, the tax imposed
23by this Act does not apply to the proceeds of the selling price
24of property transferred as an incident to the sale of service
25on or after July 1, 2003 and on or before December 31, 2018 but
26applies to 100% of the selling price thereafter.

 

 

HB6147- 20 -LRB097 20978 HLH 68226 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 aggregate
7annual total gross receipts from all sales of service, the tax
8imposed by this Act shall be based on the serviceman's cost
9price of the tangible personal property transferred as an
10incident to the sale of those services.
11    The tax shall be imposed at the rate of 1% on food prepared
12for immediate consumption and transferred incident to a sale of
13service subject to this Act or the Service Occupation Tax Act
14by an entity licensed under the Hospital Licensing Act, the
15Nursing Home Care Act, the ID/DD Community Care Act, the
16Specialized Mental Health Rehabilitation Act, or the Child Care
17Act of 1969. The tax shall also be imposed at the rate of 1% on
18food for human consumption that is to be consumed off the
19premises where it is sold (other than alcoholic beverages, soft
20drinks, and food that has been prepared for immediate
21consumption and is not otherwise included in this paragraph)
22and prescription and nonprescription medicines, drugs, medical
23appliances, modifications to a motor vehicle for the purpose of
24rendering it usable by a disabled person, and insulin, urine
25testing materials, syringes, and needles used by diabetics, for
26human use. For the purposes of this Section, until September 1,

 

 

HB6147- 21 -LRB097 20978 HLH 68226 b

12009: the term "soft drinks" means any complete, finished,
2ready-to-use, non-alcoholic drink, whether carbonated or not,
3including but not limited to soda water, cola, fruit juice,
4vegetable juice, carbonated water, and all other preparations
5commonly known as soft drinks of whatever kind or description
6that are contained in any closed or sealed bottle, can, carton,
7or container, regardless of size; but "soft drinks" does not
8include coffee, tea, non-carbonated water, infant formula,
9milk or milk products as defined in the Grade A Pasteurized
10Milk and Milk Products Act, or drinks containing 50% or more
11natural fruit or vegetable juice.
12    Notwithstanding any other provisions of this Act,
13beginning September 1, 2009, "soft drinks" means non-alcoholic
14beverages that contain natural or artificial sweeteners. "Soft
15drinks" do not include beverages that contain milk or milk
16products, soy, rice or similar milk substitutes, or greater
17than 50% of vegetable or fruit juice by volume.
18    Until August 1, 2009, and notwithstanding any other
19provisions of this Act, "food for human consumption that is to
20be consumed off the premises where it is sold" includes all
21food sold through a vending machine, except soft drinks and
22food products that are dispensed hot from a vending machine,
23regardless of the location of the vending machine. Beginning
24August 1, 2009, and notwithstanding any other provisions of
25this Act, "food for human consumption that is to be consumed
26off the premises where it is sold" includes all food sold

 

 

HB6147- 22 -LRB097 20978 HLH 68226 b

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

 

 

HB6147- 23 -LRB097 20978 HLH 68226 b

1        (B) A statement of the "active ingredient(s)" with a
2    list of those ingredients contained in the compound,
3    substance or preparation.
4    If the property that is acquired from a serviceman is
5acquired outside Illinois and used outside Illinois before
6being brought to Illinois for use here and is taxable under
7this Act, the "selling price" on which the tax is computed
8shall be reduced by an amount that represents a reasonable
9allowance for depreciation for the period of prior out-of-state
10use.
11(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
12eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38,
13eff. 6-28-11; 97-227, eff. 1-1-12; 97-636, eff. 6-1-12.)
 
14    Section 15. The Service Occupation Tax Act is amended by
15changing Section 3-10 as follows:
 
16    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
17    (Text of Section before amendment by P.A. 97-636)
18    Sec. 3-10. Rate of tax. Unless otherwise provided in this
19Section, the tax imposed by this Act is at the rate of 6.25% of
20the "selling price", as defined in Section 2 of the Service Use
21Tax Act, of the tangible personal property. For the purpose of
22computing this tax, in no event shall the "selling price" be
23less than the cost price to the serviceman of the tangible
24personal property transferred. The selling price of each item

 

 

HB6147- 24 -LRB097 20978 HLH 68226 b

1of tangible personal property transferred as an incident of a
2sale of service may be shown as a distinct and separate item on
3the serviceman's billing to the service customer. If the
4selling price is not so shown, the selling price of the
5tangible personal property is deemed to be 50% of the
6serviceman's entire billing to the service customer. When,
7however, a serviceman contracts to design, develop, and produce
8special order machinery or equipment, the tax imposed by this
9Act shall be based on the serviceman's cost price of the
10tangible personal property transferred incident to the
11completion of the contract.
12    Beginning on July 1, 2000 and through December 31, 2000,
13with respect to motor fuel, as defined in Section 1.1 of the
14Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
15the Use Tax Act, the tax is imposed at the rate of 1.25%.
16    Beginning on July 1, 2012, with respect to 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, the tax is
19imposed at the rate of 6.25% upon all sales of motor fuel and
20gasohol at a retail price of up to $2.50 per gallon, and is
21imposed at the rate of 1.25% upon any portion of the retail
22price of motor fuel or gasohol that exceeds $2.50 per gallon.
23    With respect to gasohol, as defined in the Use Tax Act, the
24tax imposed by this Act shall apply to (i) 70% of the cost
25price of property transferred as an incident to the sale of
26service on or after January 1, 1990, and before July 1, 2003,

 

 

HB6147- 25 -LRB097 20978 HLH 68226 b

1(ii) 80% of the selling price of property transferred as an
2incident to the sale of service on or after July 1, 2003 and on
3or before December 31, 2013, and (iii) 100% of the cost price
4thereafter. If, at any time, however, the tax under this Act on
5sales of gasohol, as defined in the Use Tax Act, is imposed at
6the rate of 1.25%, then the tax imposed by this Act applies to
7100% of the proceeds of sales of gasohol 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 selling price of property transferred as an incident to
11the sale 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    With respect to biodiesel blends, as defined in the Use Tax
15Act, with no less than 1% and no more than 10% biodiesel, the
16tax imposed by this Act applies to (i) 80% of the selling price
17of property transferred as an incident to the sale of service
18on or after July 1, 2003 and on or before December 31, 2013 and
19(ii) 100% of the proceeds of the selling price thereafter. If,
20at any time, however, the tax under this Act on sales of
21biodiesel blends, as defined in the Use Tax Act, with no less
22than 1% and no more than 10% biodiesel is imposed at the rate
23of 1.25%, then the tax imposed by this Act applies to 100% of
24the proceeds of sales of biodiesel blends with no less than 1%
25and no more than 10% biodiesel made during that time.
26    With respect to 100% biodiesel, as defined in the Use Tax

 

 

HB6147- 26 -LRB097 20978 HLH 68226 b

1Act, and biodiesel blends, as defined in the Use Tax Act, with
2more than 10% but no more than 99% biodiesel material, the tax
3imposed by this Act does not apply to the proceeds of the
4selling price of property transferred as an incident to the
5sale of service on or after July 1, 2003 and on or before
6December 31, 2013 but applies to 100% of the selling price
7thereafter.
8    At the election of any registered serviceman made for each
9fiscal year, sales of service in which the aggregate annual
10cost price of tangible personal property transferred as an
11incident to the sales of service is less than 35%, or 75% in
12the case of servicemen transferring prescription drugs or
13servicemen engaged in graphic arts production, of the aggregate
14annual total gross receipts from all sales of service, the tax
15imposed by this Act shall be based on the serviceman's cost
16price of the tangible personal property transferred incident to
17the sale of those services.
18    The tax shall be imposed at the rate of 1% on food prepared
19for immediate consumption and transferred incident to a sale of
20service subject to this Act or the Service Occupation Tax Act
21by an entity licensed under the Hospital Licensing Act, the
22Nursing Home Care Act, the ID/DD Community Care Act, the
23Specialized Mental Health Rehabilitation Act, or the Child Care
24Act of 1969. The tax shall also be imposed at the rate of 1% on
25food for human consumption that is to be consumed off the
26premises where it is sold (other than alcoholic beverages, soft

 

 

HB6147- 27 -LRB097 20978 HLH 68226 b

1drinks, and food that has been prepared for immediate
2consumption and is not otherwise included in this paragraph)
3and prescription and nonprescription medicines, drugs, medical
4appliances, modifications to a motor vehicle for the purpose of
5rendering it usable by a disabled person, and insulin, urine
6testing materials, syringes, and needles used by diabetics, for
7human use. For the purposes of this Section, until September 1,
82009: the term "soft drinks" means any complete, finished,
9ready-to-use, non-alcoholic drink, whether carbonated or not,
10including but not limited to soda water, cola, fruit juice,
11vegetable juice, carbonated water, and all other preparations
12commonly known as soft drinks of whatever kind or description
13that are contained in any closed or sealed can, carton, or
14container, regardless of size; but "soft drinks" does not
15include coffee, tea, non-carbonated water, infant formula,
16milk or milk products as defined in the Grade A Pasteurized
17Milk and Milk Products Act, or drinks containing 50% or more
18natural fruit or vegetable juice.
19    Notwithstanding any other provisions of this Act,
20beginning September 1, 2009, "soft drinks" means non-alcoholic
21beverages that contain natural or artificial sweeteners. "Soft
22drinks" do not include beverages that contain milk or milk
23products, soy, rice or similar milk substitutes, or greater
24than 50% of vegetable or fruit juice by volume.
25    Until August 1, 2009, and notwithstanding any other
26provisions of this Act, "food for human consumption that is to

 

 

HB6147- 28 -LRB097 20978 HLH 68226 b

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

 

 

HB6147- 29 -LRB097 20978 HLH 68226 b

1prescription only, regardless of whether the products meet the
2definition of "over-the-counter-drugs". For the purposes of
3this paragraph, "over-the-counter-drug" means a drug for human
4use that contains a label that identifies the product as a drug
5as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
6label includes:
7        (A) A "Drug Facts" panel; or
8        (B) A statement of the "active ingredient(s)" with a
9    list of those ingredients contained in the compound,
10    substance or preparation.
11(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
12eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38,
13eff. 6-28-11; 97-227, eff. 1-1-12; revised 9-12-11.)
 
14    (Text of Section after amendment by P.A. 97-636)
15    Sec. 3-10. Rate of tax. Unless otherwise provided in this
16Section, the tax imposed by this Act is at the rate of 6.25% of
17the "selling price", as defined in Section 2 of the Service Use
18Tax Act, of the tangible personal property. For the purpose of
19computing this tax, in no event shall the "selling price" be
20less than the cost price to the serviceman of the tangible
21personal property transferred. The selling price of each item
22of tangible personal property transferred as an incident of a
23sale of service may be shown as a distinct and separate item on
24the serviceman's billing to the service customer. If the
25selling price is not so shown, the selling price of the

 

 

HB6147- 30 -LRB097 20978 HLH 68226 b

1tangible personal property is deemed to be 50% of the
2serviceman's entire billing to the service customer. When,
3however, a serviceman contracts to design, develop, and produce
4special order machinery or equipment, the tax imposed by this
5Act shall be based on the serviceman's cost price of the
6tangible personal property transferred incident to the
7completion of the contract.
8    Beginning on July 1, 2000 and through December 31, 2000,
9with respect to motor fuel, as defined in Section 1.1 of the
10Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
11the Use Tax Act, the tax is imposed at the rate of 1.25%.
12    Beginning on July 1, 2012, with respect to motor fuel, as
13defined in Section 1.1 of the Motor Fuel Tax Law, and gasohol,
14as defined in Section 3-40 of the Use Tax Act, the tax is
15imposed at the rate of 6.25% upon all sales of motor fuel and
16gasohol at a retail price of up to $2.50 per gallon, and is
17imposed at the rate of 1.25% upon any portion of the retail
18price of motor fuel or gasohol that exceeds $2.50 per gallon.
19    With respect to gasohol, as defined in the Use Tax Act, the
20tax imposed by this Act shall apply to (i) 70% of the cost
21price of property transferred as an incident to the sale of
22service on or after January 1, 1990, and before July 1, 2003,
23(ii) 80% of the selling price of property transferred as an
24incident to the sale of service on or after July 1, 2003 and on
25or before December 31, 2018, and (iii) 100% of the cost price
26thereafter. If, at any time, however, the tax under this Act on

 

 

HB6147- 31 -LRB097 20978 HLH 68226 b

1sales of gasohol, as defined in the Use Tax Act, is imposed at
2the rate of 1.25%, then the tax imposed by this Act applies to
3100% of the proceeds of sales of gasohol made during that time.
4    With respect to majority blended ethanol fuel, as defined
5in the Use Tax Act, the tax imposed by this Act does not apply
6to the selling price of property transferred as an incident to
7the sale of service on or after July 1, 2003 and on or before
8December 31, 2018 but applies to 100% of the selling price
9thereafter.
10    With respect to biodiesel blends, as defined in the Use Tax
11Act, with no less than 1% and no more than 10% biodiesel, the
12tax imposed by this Act applies to (i) 80% of the selling price
13of property transferred as an incident to the sale of service
14on or after July 1, 2003 and on or before December 31, 2018 and
15(ii) 100% of the proceeds of the selling price thereafter. If,
16at any time, however, the tax under this Act on sales of
17biodiesel blends, as defined in the Use Tax Act, with no less
18than 1% and no more than 10% biodiesel is imposed at the rate
19of 1.25%, then the tax imposed by this Act applies to 100% of
20the proceeds of sales of biodiesel blends with no less than 1%
21and no more than 10% biodiesel made during that time.
22    With respect to 100% biodiesel, as defined in the Use Tax
23Act, and biodiesel blends, as defined in the Use Tax Act, with
24more than 10% but no more than 99% biodiesel material, the tax
25imposed by this Act does not apply to the proceeds of the
26selling price of property transferred as an incident to the

 

 

HB6147- 32 -LRB097 20978 HLH 68226 b

1sale of service on or after July 1, 2003 and on or before
2December 31, 2018 but applies to 100% of the selling price
3thereafter.
4    At the election of any registered serviceman made for each
5fiscal year, sales of service in which the aggregate annual
6cost price of tangible personal property transferred as an
7incident to the sales of service is less than 35%, or 75% in
8the case of servicemen transferring prescription drugs or
9servicemen engaged in graphic arts production, of the aggregate
10annual total gross receipts from all sales of service, the tax
11imposed by this Act shall be based on the serviceman's cost
12price of the tangible personal property transferred incident to
13the sale of those services.
14    The tax shall be imposed at the rate of 1% on food prepared
15for immediate consumption and transferred incident to a sale of
16service subject to this Act or the Service Occupation Tax Act
17by an entity licensed under the Hospital Licensing Act, the
18Nursing Home Care Act, the ID/DD Community Care Act, the
19Specialized Mental Health Rehabilitation Act, or the Child Care
20Act of 1969. The tax shall also be imposed at the rate of 1% on
21food for human consumption that is to be consumed off the
22premises where it is sold (other than alcoholic beverages, soft
23drinks, and food that has been prepared for immediate
24consumption and is not otherwise included in this paragraph)
25and prescription and nonprescription medicines, drugs, medical
26appliances, modifications to a motor vehicle for the purpose of

 

 

HB6147- 33 -LRB097 20978 HLH 68226 b

1rendering it usable by a disabled person, and insulin, urine
2testing materials, syringes, and needles used by diabetics, for
3human use. For the purposes of this Section, until September 1,
42009: the term "soft drinks" means any complete, finished,
5ready-to-use, non-alcoholic drink, whether carbonated or not,
6including but not limited to soda water, cola, fruit juice,
7vegetable juice, carbonated water, and all other preparations
8commonly known as soft drinks of whatever kind or description
9that are contained in any closed or sealed can, carton, or
10container, regardless of size; but "soft drinks" does not
11include coffee, tea, non-carbonated water, infant formula,
12milk or milk products as defined in the Grade A Pasteurized
13Milk and Milk Products Act, or drinks containing 50% or more
14natural fruit or vegetable juice.
15    Notwithstanding any other provisions of this Act,
16beginning September 1, 2009, "soft drinks" means non-alcoholic
17beverages that contain natural or artificial sweeteners. "Soft
18drinks" do not include beverages that contain milk or milk
19products, soy, rice or similar milk substitutes, or greater
20than 50% of vegetable or fruit juice by volume.
21    Until August 1, 2009, and notwithstanding any other
22provisions of this Act, "food for human consumption that is to
23be consumed off the premises where it is sold" includes all
24food sold through a vending machine, except soft drinks and
25food products that are dispensed hot from a vending machine,
26regardless of the location of the vending machine. Beginning

 

 

HB6147- 34 -LRB097 20978 HLH 68226 b

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

 

 

HB6147- 35 -LRB097 20978 HLH 68226 b

1as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
2label includes:
3        (A) A "Drug Facts" panel; or
4        (B) A statement of the "active ingredient(s)" with a
5    list of those ingredients contained in the compound,
6    substance or preparation.
7(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
8eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38,
9eff. 6-28-11; 97-227, eff. 1-1-12; 97-636, eff. 6-1-12.)
 
10    Section 20. The Retailers' Occupation Tax Act is amended by
11changing Section 2-10 as follows:
 
12    (35 ILCS 120/2-10)
13    (Text of Section before amendment by P.A. 97-636)
14    Sec. 2-10. Rate of tax. Unless otherwise provided in this
15Section, the tax imposed by this Act is at the rate of 6.25% of
16gross receipts from sales of tangible personal property made in
17the course of business.
18    Beginning on July 1, 2000 and through December 31, 2000,
19with respect to motor fuel, as defined in Section 1.1 of the
20Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
21the Use Tax Act, the tax is imposed at the rate of 1.25%.
22    Beginning on August 6, 2010 through August 15, 2010, with
23respect to sales tax holiday items as defined in Section 2-8 of
24this Act, the tax is imposed at the rate of 1.25%.

 

 

HB6147- 36 -LRB097 20978 HLH 68226 b

1    Within 14 days after the effective date of this amendatory
2Act of the 91st General Assembly, each retailer of motor fuel
3and gasohol shall cause the following notice to be posted in a
4prominently visible place on each retail dispensing device that
5is used to dispense motor fuel or gasohol in the State of
6Illinois: "As of July 1, 2000, the State of Illinois has
7eliminated the State's share of sales tax on motor fuel and
8gasohol through December 31, 2000. The price on this pump
9should reflect the elimination of the tax." The notice shall be
10printed in bold print on a sign that is no smaller than 4
11inches by 8 inches. The sign shall be clearly visible to
12customers. Any retailer who fails to post or maintain a
13required sign through December 31, 2000 is guilty of a petty
14offense for which the fine shall be $500 per day per each
15retail premises where a violation occurs.
16    With respect to gasohol, as defined in the Use Tax Act, the
17tax imposed by this Act applies to (i) 70% of the proceeds of
18sales made on or after January 1, 1990, and before July 1,
192003, (ii) 80% of the proceeds of sales made on or after July
201, 2003 and on or before December 31, 2013, and (iii) 100% of
21the proceeds of sales made thereafter. If, at any time,
22however, the tax under this Act on sales of gasohol, as defined
23in the Use Tax Act, is imposed at the rate of 1.25%, then the
24tax imposed by this Act applies to 100% of the proceeds of
25sales of gasohol made during that time.
26    Beginning on July 1, 2012, with respect to motor fuel, as

 

 

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1defined in Section 1.1 of the Motor Fuel Tax Law, and gasohol,
2as defined in Section 3-40 of the Use Tax Act, the tax is
3imposed at the rate of 6.25% upon all sales of motor fuel and
4gasohol at a retail price of up to $2.50 per gallon, and is
5imposed at the rate of 1.25% upon any portion of the retail
6price of motor fuel or gasohol that exceeds $2.50 per gallon.
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

 

 

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1after July 1, 2003 and on or before December 31, 2013 but
2applies to 100% of the proceeds of sales made thereafter.
3    With respect to food for human consumption that is to be
4consumed off the premises where it is sold (other than
5alcoholic beverages, soft drinks, and food that has been
6prepared for immediate consumption) and prescription and
7nonprescription medicines, drugs, medical appliances,
8modifications to a motor vehicle for the purpose of rendering
9it usable by a disabled person, and insulin, urine testing
10materials, syringes, and needles used by diabetics, for human
11use, the tax is imposed at the rate of 1%. For the purposes of
12this Section, until September 1, 2009: the term "soft drinks"
13means any complete, finished, ready-to-use, non-alcoholic
14drink, whether carbonated or not, including but not limited to
15soda water, cola, fruit juice, vegetable juice, carbonated
16water, and all other preparations commonly known as soft drinks
17of whatever kind or description that are contained in any
18closed or sealed bottle, can, carton, or container, regardless
19of size; but "soft drinks" does not include coffee, tea,
20non-carbonated water, infant formula, milk or milk products as
21defined in the Grade A Pasteurized Milk and Milk Products Act,
22or drinks containing 50% or more natural fruit or vegetable
23juice.
24    Notwithstanding any other provisions of this Act,
25beginning September 1, 2009, "soft drinks" means non-alcoholic
26beverages that contain natural or artificial sweeteners. "Soft

 

 

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

 

 

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1drugs" does not include grooming and hygiene products. For
2purposes of this Section, "grooming and hygiene products"
3includes, but is not limited to, soaps and cleaning solutions,
4shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
5lotions and screens, unless those products are available by
6prescription only, regardless of whether the products meet the
7definition of "over-the-counter-drugs". For the purposes of
8this paragraph, "over-the-counter-drug" means a drug for human
9use that contains a label that identifies the product as a drug
10as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
11label includes:
12        (A) A "Drug Facts" panel; or
13        (B) A statement of the "active ingredient(s)" with a
14    list of those ingredients contained in the compound,
15    substance or preparation.
16(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    (Text of Section after amendment by P.A. 97-636)
19    Sec. 2-10. Rate of tax. Unless otherwise provided in this
20Section, the tax imposed by this Act is at the rate of 6.25% of
21gross receipts from sales of tangible personal property made in
22the course of business.
23    Beginning on July 1, 2000 and through December 31, 2000,
24with respect to motor fuel, as defined in Section 1.1 of the
25Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

 

 

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1the Use Tax Act, the tax is imposed at the rate of 1.25%.
2    Beginning on August 6, 2010 through August 15, 2010, with
3respect to sales tax holiday items as defined in Section 2-8 of
4this Act, the tax is imposed at the rate of 1.25%.
5    Within 14 days after the effective date of this amendatory
6Act of the 91st General Assembly, each retailer of motor fuel
7and gasohol shall cause the following notice to be posted in a
8prominently visible place on each retail dispensing device that
9is used to dispense motor fuel or gasohol in the State of
10Illinois: "As of July 1, 2000, the State of Illinois has
11eliminated the State's share of sales tax on motor fuel and
12gasohol through December 31, 2000. The price on this pump
13should reflect the elimination of the tax." The notice shall be
14printed in bold print on a sign that is no smaller than 4
15inches by 8 inches. The sign shall be clearly visible to
16customers. Any retailer who fails to post or maintain a
17required sign through December 31, 2000 is guilty of a petty
18offense for which the fine shall be $500 per day per each
19retail premises where a violation occurs.
20    With respect to gasohol, as defined in the Use Tax Act, the
21tax imposed by this Act applies to (i) 70% of the proceeds of
22sales made on or after January 1, 1990, and before July 1,
232003, (ii) 80% of the proceeds of sales made on or after July
241, 2003 and on or before December 31, 2018, and (iii) 100% of
25the proceeds of sales made thereafter. If, at any time,
26however, the tax under this Act on sales of gasohol, as defined

 

 

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1in the Use Tax Act, is imposed at the rate of 1.25%, then the
2tax imposed by this Act applies to 100% of the proceeds of
3sales of gasohol made during that time.
4    With respect to majority blended ethanol fuel, as defined
5in the Use Tax Act, the tax imposed by this Act does not apply
6to the proceeds of sales made on or after July 1, 2003 and on or
7before December 31, 2018 but applies to 100% of the proceeds of
8sales made thereafter.
9    With respect to biodiesel blends, as defined in the Use Tax
10Act, with no less than 1% and no more than 10% biodiesel, the
11tax imposed by this Act applies to (i) 80% of the proceeds of
12sales made on or after July 1, 2003 and on or before December
1331, 2018 and (ii) 100% of the proceeds of sales made
14thereafter. If, at any time, however, the tax under this Act on
15sales of biodiesel blends, as defined in the Use Tax Act, with
16no less than 1% and no more than 10% biodiesel is imposed at
17the rate of 1.25%, then the tax imposed by this Act applies to
18100% of the proceeds of sales of biodiesel blends with no less
19than 1% and no more than 10% biodiesel made during that time.
20    Beginning on July 1, 2012, with respect to motor fuel, as
21defined in Section 1.1 of the Motor Fuel Tax Law, and gasohol,
22as defined in Section 3-40 of the Use Tax Act, the tax is
23imposed at the rate of 6.25% upon all sales of motor fuel and
24gasohol at a retail price of up to $2.50 per gallon, and is
25imposed at the rate of 1.25% upon any portion of the retail
26price of motor fuel or gasohol that exceeds $2.50 per gallon.

 

 

HB6147- 43 -LRB097 20978 HLH 68226 b

1    With respect to 100% biodiesel, as defined in the Use Tax
2Act, and biodiesel blends, as defined in the Use Tax Act, with
3more than 10% but no more than 99% biodiesel, the tax imposed
4by this Act does not apply to the proceeds of sales made on or
5after July 1, 2003 and on or before December 31, 2018 but
6applies to 100% of the proceeds of sales made thereafter.
7    With respect to food for human consumption that is to be
8consumed off the premises where it is sold (other than
9alcoholic beverages, soft drinks, and food that has been
10prepared for immediate consumption) and prescription and
11nonprescription medicines, drugs, medical appliances,
12modifications to a motor vehicle for the purpose of rendering
13it usable by a disabled person, and insulin, urine testing
14materials, syringes, and needles used by diabetics, for human
15use, the tax is imposed at the rate of 1%. For the purposes of
16this Section, until September 1, 2009: the term "soft drinks"
17means any complete, finished, ready-to-use, non-alcoholic
18drink, whether carbonated or not, including but not limited to
19soda water, cola, fruit juice, vegetable juice, carbonated
20water, and all other preparations commonly known as soft drinks
21of whatever kind or description that are contained in any
22closed or sealed bottle, can, carton, or container, regardless
23of size; but "soft drinks" does not include coffee, tea,
24non-carbonated water, infant formula, milk or milk products as
25defined in the Grade A Pasteurized Milk and Milk Products Act,
26or drinks containing 50% or more natural fruit or vegetable

 

 

HB6147- 44 -LRB097 20978 HLH 68226 b

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

 

 

HB6147- 45 -LRB097 20978 HLH 68226 b

1pieces. "Candy" does not include any preparation that contains
2flour or requires refrigeration.
3    Notwithstanding any other provisions of this Act,
4beginning September 1, 2009, "nonprescription medicines and
5drugs" does not include grooming and hygiene products. For
6purposes of this Section, "grooming and hygiene products"
7includes, but is not limited to, soaps and cleaning solutions,
8shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
9lotions and screens, unless those products are available by
10prescription only, regardless of whether the products meet the
11definition of "over-the-counter-drugs". For the purposes of
12this paragraph, "over-the-counter-drug" means a drug for human
13use that contains a label that identifies the product as a drug
14as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
15label includes:
16        (A) A "Drug Facts" panel; or
17        (B) A statement of the "active ingredient(s)" with a
18    list of those ingredients contained in the compound,
19    substance or preparation.
20(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
21eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10;
2297-636, eff. 6-1-12.)
 
23    Section 95. No acceleration or delay. Where this Act makes
24changes in a statute that is represented in this Act by text
25that is not yet or no longer in effect (for example, a Section

 

 

HB6147- 46 -LRB097 20978 HLH 68226 b

1represented by multiple versions), the use of that text does
2not accelerate or delay the taking effect of (i) the changes
3made by this Act or (ii) provisions derived from any other
4Public Act.
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.