Illinois General Assembly - Full Text of SB2396
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Full Text of SB2396  102nd General Assembly

SB2396 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2396

 

Introduced 2/26/2021, by Sen. Rachelle Crowe

 

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 120/2-10

    Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that, from August 6, 2021 through August 8, 2021, and from August 13, 2021 through August 15, 2021, the tax imposed under the Acts on clothing and school supplies shall be at the rate of 1.25% (instead of 6.25%). Effective immediately.


LRB102 17269 HLH 22741 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2396LRB102 17269 HLH 22741 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. Local Government Tax Fund. A portion of the
8money paid into the Local Government Tax Fund from sales of
9tangible personal property taxed at the 1% rate under the
10Retailers' Occupation Tax Act and the Service Occupation Tax
11Act, which occurred in municipalities, shall be distributed to
12each municipality based upon the sales which occurred in that
13municipality. The remainder shall be distributed to each
14county based upon the sales which occurred in the
15unincorporated area of that county.
16    A portion of the money paid into the Local Government Tax
17Fund from the 6.25% general use tax rate on the selling price
18of tangible personal property which is purchased outside
19Illinois at retail from a retailer and which is titled or
20registered by any agency of this State's government shall be
21distributed to municipalities as provided in this paragraph.
22Each municipality shall receive the amount attributable to
23sales for which Illinois addresses for titling or registration

 

 

SB2396- 2 -LRB102 17269 HLH 22741 b

1purposes are given as being in such municipality. The
2remainder of the money paid into the Local Government Tax Fund
3from such sales shall be distributed to counties. Each county
4shall receive the amount attributable to sales for which
5Illinois addresses for titling or registration purposes are
6given as being located in the unincorporated area of such
7county.
8    A portion of the money paid into the Local Government Tax
9Fund from the 6.25% general rate (and, beginning July 1, 2000
10and through December 31, 2000, the 1.25% rate on motor fuel and
11gasohol, and beginning on August 6, 2010 through August 15,
122010, and beginning again from August 6, 2021 through August
1311, 2021, and from August 13, 2021 through August 15, 2021, the
141.25% rate on sales tax holiday items) on sales subject to
15taxation under the Retailers' Occupation Tax Act and the
16Service Occupation Tax Act, which occurred in municipalities,
17shall be distributed to each municipality, based upon the
18sales which occurred in that municipality. The remainder shall
19be distributed to each county, based upon the sales which
20occurred in the unincorporated area of such county.
21    For the purpose of determining allocation to the local
22government unit, a retail sale by a producer of coal or other
23mineral mined in Illinois is a sale at retail at the place
24where the coal or other mineral mined in Illinois is extracted
25from the earth. This paragraph does not apply to coal or other
26mineral when it is delivered or shipped by the seller to the

 

 

SB2396- 3 -LRB102 17269 HLH 22741 b

1purchaser at a point outside Illinois so that the sale is
2exempt under the United States Constitution as a sale in
3interstate or foreign commerce.
4    Whenever the Department determines that a refund of money
5paid into the Local Government Tax Fund should be made to a
6claimant instead of issuing a credit memorandum, the
7Department shall notify the State Comptroller, who shall cause
8the order to be drawn for the amount specified, and to the
9person named, in such notification from the Department. Such
10refund shall be paid by the State Treasurer out of the Local
11Government Tax Fund.
12    As soon as possible after the first day of each month,
13beginning January 1, 2011, upon certification of the
14Department of Revenue, the Comptroller shall order
15transferred, and the Treasurer shall transfer, to the STAR
16Bonds Revenue Fund the local sales tax increment, as defined
17in the Innovation Development and Economy Act, collected
18during the second preceding calendar month for sales within a
19STAR bond district and deposited into the Local Government Tax
20Fund, less 3% of that amount, which shall be transferred into
21the Tax Compliance and Administration Fund and shall be used
22by the Department, subject to appropriation, to cover the
23costs of the Department in administering the Innovation
24Development and Economy Act.
25    After the monthly transfer to the STAR Bonds Revenue Fund,
26on or before the 25th day of each calendar month, the

 

 

SB2396- 4 -LRB102 17269 HLH 22741 b

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

 

 

SB2396- 5 -LRB102 17269 HLH 22741 b

1shall increase or decrease that amount by an amount necessary
2to offset any misallocation of previous disbursements. The
3offset amount shall be the amount erroneously disbursed within
4the 6 months preceding the time a misallocation is discovered.
5    The provisions directing the distributions from the
6special fund in the State Treasury provided for in this
7Section shall constitute an irrevocable and continuing
8appropriation of all amounts as provided herein. The State
9Treasurer and State Comptroller are hereby authorized to make
10distributions as provided in this Section.
11    In construing any development, redevelopment, annexation,
12preannexation or other lawful agreement in effect prior to
13September 1, 1990, which describes or refers to receipts from
14a county or municipal retailers' occupation tax, use tax or
15service occupation tax which now cannot be imposed, such
16description or reference shall be deemed to include the
17replacement revenue for such abolished taxes, distributed from
18the Local Government Tax Fund.
19    As soon as possible after the effective date of this
20amendatory Act of the 98th General Assembly, the State
21Comptroller shall order and the State Treasurer shall transfer
22$6,600,000 from the Local Government Tax Fund to the Illinois
23State Medical Disciplinary Fund.
24(Source: P.A. 100-1171, eff. 1-4-19.)
 
25    (30 ILCS 105/6z-20)  (from Ch. 127, par. 142z-20)

 

 

SB2396- 6 -LRB102 17269 HLH 22741 b

1    Sec. 6z-20. County and Mass Transit District Fund. Of the
2money received from the 6.25% general rate (and, beginning
3July 1, 2000 and through December 31, 2000, the 1.25% rate on
4motor fuel and gasohol, and beginning on August 6, 2010
5through August 15, 2010, and beginning again from August 6,
62021 through August 11, 2021, and from August 13, 2021 through
7August 15, 2021, the 1.25% rate on sales tax holiday items) on
8sales subject to taxation under the Retailers' Occupation Tax
9Act and Service Occupation Tax Act and paid into the County and
10Mass Transit District Fund, distribution to the Regional
11Transportation Authority tax fund, created pursuant to Section
124.03 of the Regional Transportation Authority Act, for deposit
13therein shall be made based upon the retail sales occurring in
14a county having more than 3,000,000 inhabitants. The remainder
15shall be distributed to each county having 3,000,000 or fewer
16inhabitants based upon the retail sales occurring in each such
17county.
18    For the purpose of determining allocation to the local
19government unit, a retail sale by a producer of coal or other
20mineral mined in Illinois is a sale at retail at the place
21where the coal or other mineral mined in Illinois is extracted
22from the earth. This paragraph does not apply to coal or other
23mineral when it is delivered or shipped by the seller to the
24purchaser at a point outside Illinois so that the sale is
25exempt under the United States Constitution as a sale in
26interstate or foreign commerce.

 

 

SB2396- 7 -LRB102 17269 HLH 22741 b

1    Of the money received from the 6.25% general use tax rate
2on tangible personal property which is purchased outside
3Illinois at retail from a retailer and which is titled or
4registered by any agency of this State's government and paid
5into the County and Mass Transit District Fund, the amount for
6which Illinois addresses for titling or registration purposes
7are given as being in each county having more than 3,000,000
8inhabitants shall be distributed into the Regional
9Transportation Authority tax fund, created pursuant to Section
104.03 of the Regional Transportation Authority Act. The
11remainder of the money paid from such sales shall be
12distributed to each county based on sales for which Illinois
13addresses for titling or registration purposes are given as
14being located in the county. Any money paid into the Regional
15Transportation Authority Occupation and Use Tax Replacement
16Fund from the County and Mass Transit District Fund prior to
17January 14, 1991, which has not been paid to the Authority
18prior to that date, shall be transferred to the Regional
19Transportation Authority tax fund.
20    Whenever the Department determines that a refund of money
21paid into the County and Mass Transit District Fund should be
22made to a claimant instead of issuing a credit memorandum, the
23Department shall notify the State Comptroller, who shall cause
24the order to be drawn for the amount specified, and to the
25person named, in such notification from the Department. Such
26refund shall be paid by the State Treasurer out of the County

 

 

SB2396- 8 -LRB102 17269 HLH 22741 b

1and Mass Transit District Fund.
2    As soon as possible after the first day of each month,
3beginning January 1, 2011, upon certification of the
4Department of Revenue, the Comptroller shall order
5transferred, and the Treasurer shall transfer, to the STAR
6Bonds Revenue Fund the local sales tax increment, as defined
7in the Innovation Development and Economy Act, collected
8during the second preceding calendar month for sales within a
9STAR bond district and deposited into the County and Mass
10Transit District Fund, less 3% of that amount, which shall be
11transferred into the Tax Compliance and Administration Fund
12and shall be used by the Department, subject to appropriation,
13to cover the costs of the Department in administering the
14Innovation Development and Economy Act.
15    After the monthly transfer to the STAR Bonds Revenue Fund,
16on or before the 25th day of each calendar month, the
17Department shall prepare and certify to the Comptroller the
18disbursement of stated sums of money to the Regional
19Transportation Authority and to named counties, the counties
20to be those entitled to distribution, as hereinabove provided,
21of taxes or penalties paid to the Department during the second
22preceding calendar month. The amount to be paid to the
23Regional Transportation Authority and each county having
243,000,000 or fewer inhabitants shall be the amount (not
25including credit memoranda) collected during the second
26preceding calendar month by the Department and paid into the

 

 

SB2396- 9 -LRB102 17269 HLH 22741 b

1County and Mass Transit District Fund, plus an amount the
2Department determines is necessary to offset any amounts which
3were erroneously paid to a different taxing body, and not
4including an amount equal to the amount of refunds made during
5the second preceding calendar month by the Department, and not
6including any amount which the Department determines is
7necessary to offset any amounts which were payable to a
8different taxing body but were erroneously paid to the
9Regional Transportation Authority or county, and not including
10any amounts that are transferred to the STAR Bonds Revenue
11Fund, less 1.5% of the amount to be paid to the Regional
12Transportation Authority, which shall be transferred into the
13Tax Compliance and Administration Fund. The Department, at the
14time of each monthly disbursement to the Regional
15Transportation Authority, shall prepare and certify to the
16State Comptroller the amount to be transferred into the Tax
17Compliance and Administration Fund under this Section. Within
1810 days after receipt, by the Comptroller, of the disbursement
19certification to the Regional Transportation Authority,
20counties, and the Tax Compliance and Administration Fund
21provided for in this Section to be given to the Comptroller by
22the Department, the Comptroller shall cause the orders to be
23drawn for the respective amounts in accordance with the
24directions contained in such certification.
25    When certifying the amount of a monthly disbursement to
26the Regional Transportation Authority or to a county under

 

 

SB2396- 10 -LRB102 17269 HLH 22741 b

1this Section, the Department shall increase or decrease that
2amount by an amount necessary to offset any misallocation of
3previous disbursements. The offset amount shall be the amount
4erroneously disbursed within the 6 months preceding the time a
5misallocation is discovered.
6    The provisions directing the distributions from the
7special fund in the State Treasury provided for in this
8Section and from the Regional Transportation Authority tax
9fund created by Section 4.03 of the Regional Transportation
10Authority Act shall constitute an irrevocable and continuing
11appropriation of all amounts as provided herein. The State
12Treasurer and State Comptroller are hereby authorized to make
13distributions as provided in this Section.
14    In construing any development, redevelopment, annexation,
15preannexation or other lawful agreement in effect prior to
16September 1, 1990, which describes or refers to receipts from
17a county or municipal retailers' occupation tax, use tax or
18service occupation tax which now cannot be imposed, such
19description or reference shall be deemed to include the
20replacement revenue for such abolished taxes, distributed from
21the County and Mass Transit District Fund or Local Government
22Distributive Fund, as the case may be.
23(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
 
24    Section 10. The Use Tax Act is amended by changing Section
253-10 as follows:
 

 

 

SB2396- 11 -LRB102 17269 HLH 22741 b

1    (35 ILCS 105/3-10)
2    Sec. 3-10. Rate of tax. Unless otherwise provided in this
3Section, the tax imposed by this Act is at the rate of 6.25% of
4either the selling price or the fair market value, if any, of
5the tangible personal property. In all cases where property
6functionally used or consumed is the same as the property that
7was purchased at retail, then the tax is imposed on the selling
8price of the property. In all cases where property
9functionally used or consumed is a by-product or waste product
10that has been refined, manufactured, or produced from property
11purchased at retail, then the tax is imposed on the lower of
12the fair market value, if any, of the specific property so used
13in this State or on the selling price of the property purchased
14at retail. For purposes of this Section "fair market value"
15means the price at which property would change hands between a
16willing buyer and a willing seller, neither being under any
17compulsion to buy or sell and both having reasonable knowledge
18of the relevant facts. The fair market value shall be
19established by Illinois sales by the taxpayer of the same
20property as that functionally used or consumed, or if there
21are no such sales by the taxpayer, then comparable sales or
22purchases of property of like kind and character in Illinois.
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

 

 

SB2396- 12 -LRB102 17269 HLH 22741 b

1the Use Tax Act, the tax is imposed at the rate of 1.25%.
2    Beginning on August 6, 2010 through August 15, 2010, and
3beginning again from August 6, 2021 through August 8, 2021 and
4from August 13, 2021 through August 15, 2021, with respect to
5sales tax holiday items as defined in Section 3-6 of this Act,
6the tax is imposed at the rate of 1.25%.
7    With respect to gasohol, the tax imposed by this Act
8applies to (i) 70% of the proceeds of sales made on or after
9January 1, 1990, and before July 1, 2003, (ii) 80% of the
10proceeds of sales made on or after July 1, 2003 and on or
11before July 1, 2017, and (iii) 100% of the proceeds of sales
12made thereafter. If, at any time, however, the tax under this
13Act on sales of gasohol is imposed at the rate of 1.25%, then
14the tax imposed by this Act applies to 100% of the proceeds of
15sales of gasohol made during that time.
16    With respect to majority blended ethanol fuel, the tax
17imposed by this Act does not apply to the proceeds of sales
18made on or after July 1, 2003 and on or before December 31,
192023 but applies to 100% of the proceeds of sales made
20thereafter.
21    With respect to biodiesel blends with no less than 1% and
22no more than 10% biodiesel, the tax imposed by this Act applies
23to (i) 80% of the proceeds of sales made on or after July 1,
242003 and on or before December 31, 2018 and (ii) 100% of the
25proceeds of sales made thereafter. If, at any time, however,
26the tax under this Act on sales of biodiesel blends with no

 

 

SB2396- 13 -LRB102 17269 HLH 22741 b

1less than 1% and no more than 10% biodiesel is imposed at the
2rate of 1.25%, then the tax imposed by this Act applies to 100%
3of the proceeds of sales of biodiesel blends with no less than
41% and no more than 10% biodiesel made during that time.
5    With respect to 100% biodiesel and biodiesel blends with
6more than 10% but no more than 99% biodiesel, the tax imposed
7by this Act does not apply to the proceeds of sales made on or
8after July 1, 2003 and on or before December 31, 2023 but
9applies to 100% of the proceeds of sales made thereafter.
10    With respect to food for human consumption that is to be
11consumed off the premises where it is sold (other than
12alcoholic beverages, food consisting of or infused with adult
13use cannabis, soft drinks, and food that has been prepared for
14immediate consumption) and prescription and nonprescription
15medicines, drugs, medical appliances, products classified as
16Class III medical devices by the United States Food and Drug
17Administration that are used for cancer treatment pursuant to
18a prescription, as well as any accessories and components
19related to those devices, modifications to a motor vehicle for
20the purpose of rendering it usable by a person with a
21disability, and insulin, urine testing materials, syringes,
22and needles used by diabetics, for human use, the tax is
23imposed at the rate of 1%. For the purposes of this Section,
24until September 1, 2009: the term "soft drinks" means any
25complete, finished, ready-to-use, non-alcoholic drink, whether
26carbonated or not, including but not limited to soda water,

 

 

SB2396- 14 -LRB102 17269 HLH 22741 b

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

 

 

SB2396- 15 -LRB102 17269 HLH 22741 b

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

 

 

SB2396- 16 -LRB102 17269 HLH 22741 b

1    Beginning on the effective date of this amendatory Act of
2the 98th General Assembly, "prescription and nonprescription
3medicines and drugs" includes medical cannabis purchased from
4a registered dispensing organization under the Compassionate
5Use of Medical Cannabis Program Act.
6    As used in this Section, "adult use cannabis" means
7cannabis subject to tax under the Cannabis Cultivation
8Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
9and does not include cannabis subject to tax under the
10Compassionate Use of Medical Cannabis Program Act.
11    If the property that is purchased at retail from a
12retailer is acquired outside Illinois and used outside
13Illinois before being brought to Illinois for use here and is
14taxable under this Act, the "selling price" on which the tax is
15computed shall be reduced by an amount that represents a
16reasonable allowance for depreciation for the period of prior
17out-of-state use.
18(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
19101-593, eff. 12-4-19.)
 
20    Section 15. The Retailers' Occupation Tax Act is amended
21by changing Section 2-10 as follows:
 
22    (35 ILCS 120/2-10)
23    Sec. 2-10. Rate of tax. Unless otherwise provided in this
24Section, the tax imposed by this Act is at the rate of 6.25% of

 

 

SB2396- 17 -LRB102 17269 HLH 22741 b

1gross receipts from sales of tangible personal property made
2in the course of business.
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    Beginning on August 6, 2010 through August 15, 2010, and
8beginning again from August 6, 2021 through August 8, 2021 and
9from August 13, 2021 through August 15, 2021, with respect to
10sales tax holiday items as defined in Section 2-8 of this Act,
11the tax is imposed at the rate of 1.25%.
12    Within 14 days after the effective date of this amendatory
13Act of the 91st General Assembly, each retailer of motor fuel
14and gasohol shall cause the following notice to be posted in a
15prominently visible place on each retail dispensing device
16that is used to dispense motor fuel or gasohol in the State of
17Illinois: "As of July 1, 2000, the State of Illinois has
18eliminated the State's share of sales tax on motor fuel and
19gasohol through December 31, 2000. The price on this pump
20should reflect the elimination of the tax." The notice shall
21be printed in bold print on a sign that is no smaller than 4
22inches by 8 inches. The sign shall be clearly visible to
23customers. Any retailer who fails to post or maintain a
24required sign through December 31, 2000 is guilty of a petty
25offense for which the fine shall be $500 per day per each
26retail premises where a violation occurs.

 

 

SB2396- 18 -LRB102 17269 HLH 22741 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 proceeds of
3sales made on or after January 1, 1990, and before July 1,
42003, (ii) 80% of the proceeds of sales made on or after July
51, 2003 and on or before July 1, 2017, and (iii) 100% of the
6proceeds of sales made thereafter. If, at any time, however,
7the tax under this Act on sales of gasohol, as defined in the
8Use Tax Act, is imposed at the rate of 1.25%, then the tax
9imposed by this Act applies to 100% of the proceeds of sales of
10gasohol made during that time.
11    With respect to majority blended ethanol fuel, as defined
12in the Use Tax Act, the tax imposed by this Act does not apply
13to the proceeds of sales made on or after July 1, 2003 and on
14or before December 31, 2023 but applies to 100% of the proceeds
15of sales made thereafter.
16    With respect to biodiesel blends, as defined in the Use
17Tax Act, with no less than 1% and no more than 10% biodiesel,
18the tax imposed by this Act applies to (i) 80% of the proceeds
19of sales made on or after July 1, 2003 and on or before
20December 31, 2018 and (ii) 100% of the proceeds of sales made
21thereafter. If, at any time, however, the tax under this Act on
22sales of biodiesel blends, as defined in the Use Tax Act, with
23no less than 1% and no more than 10% biodiesel is imposed at
24the rate of 1.25%, then the tax imposed by this Act applies to
25100% of the proceeds of sales of biodiesel blends with no less
26than 1% and no more than 10% biodiesel made during that time.

 

 

SB2396- 19 -LRB102 17269 HLH 22741 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, 2023 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, food consisting of or infused with adult
10use cannabis, soft drinks, and food that has been prepared for
11immediate consumption) and prescription and nonprescription
12medicines, drugs, medical appliances, products classified as
13Class III medical devices by the United States Food and Drug
14Administration that are used for cancer treatment pursuant to
15a prescription, as well as any accessories and components
16related to those devices, modifications to a motor vehicle for
17the purpose of rendering it usable by a person with a
18disability, and insulin, urine testing materials, syringes,
19and needles used by diabetics, for human use, the tax is
20imposed at the rate of 1%. For the purposes of this Section,
21until September 1, 2009: the term "soft drinks" means any
22complete, finished, ready-to-use, non-alcoholic drink, whether
23carbonated or not, including but not limited to soda water,
24cola, fruit juice, vegetable juice, carbonated water, and all
25other preparations commonly known as soft drinks of whatever
26kind or description that are contained in any closed or sealed

 

 

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

 

 

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

 

 

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1a registered dispensing organization under the Compassionate
2Use of Medical Cannabis Program Act.
3    As used in this Section, "adult use cannabis" means
4cannabis subject to tax under the Cannabis Cultivation
5Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
6and does not include cannabis subject to tax under the
7Compassionate Use of Medical Cannabis Program Act.
8(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
9101-593, eff. 12-4-19.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.