Illinois General Assembly - Full Text of SB3616
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Full Text of SB3616  97th General Assembly

SB3616 97TH GENERAL ASSEMBLY

  
  

 


 
97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3616

 

Introduced 2/10/2012, by Sen. John M. Sullivan

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 689/15
20 ILCS 689/20
35 ILCS 105/3-10
35 ILCS 105/3-40  from Ch. 120, par. 439.3-40
35 ILCS 105/3-44
35 ILCS 105/3-44.6 new
35 ILCS 105/3-44.7 new
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, on or after July 1, 2012 and on or before December 31, 2018, the taxes imposed under the Acts apply to (i) 90% of the proceeds of sales of gasohol, (ii) 80% of the proceeds of sales of E20 blended ethanol fuel, and (iii) 60% of the proceeds of sales of E30 blended ethanol fuel. Provides that an exemption for majority blended ethanol fuel applies through December 31, 2018 (instead of December 31, 2013). Amends the Illinois Renewable Fuels Development Program Act. Provides that grants may be awarded for the following programs: a next generation renewable fuels program, a majority blended ethanol and blender pump infrastructure program, and a research and development program for sustainable corn production and corn-based renewable fuel production. Sets forth the maximum aggregate amount of grants that may be awarded under each program. Effective immediately.


LRB097 19794 HLH 65064 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3616LRB097 19794 HLH 65064 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 Illinois Renewable Fuels Development
5Program Act is amended by changing Sections 15 and 20 as
6follows:
 
7    (20 ILCS 689/15)
8    Sec. 15. Illinois Renewable Fuels Development Program.
9    (a) The Department must develop and administer the Illinois
10Renewable Fuels Development Program to assist in the
11construction, modification, alteration, or retrofitting of
12renewable fuel plants in Illinois. The recipient of a grant
13under this Section must:
14        (1) be constructing, modifying, altering, or
15    retrofitting a plant in the State of Illinois;
16        (2) be constructing, modifying, altering, or
17    retrofitting a plant that has annual production capacity of
18    no less than 5,000,000 gallons of renewable fuel per year;
19    and
20        (3) enter into a project labor agreement, whenever
21    practicable, as prescribed by Section 25 of this Act.
22    (b) Grant applications must be made on forms provided by
23and in accordance with procedures established by the

 

 

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1Department.
2    (c) The Department must give preference to applicants that
3use Illinois agricultural products in the production of
4renewable fuel at the plant for which the grant is being
5requested.
6(Source: P.A. 96-140, eff. 1-1-10.)
 
7    (20 ILCS 689/20)
8    Sec. 20. Grants. Subject to appropriation, the Director is
9authorized to award grants to eligible applicants for the
10following programs.
11        (1) Next generation ethanol/renewable fuels. Eligible
12    next generation ethanol/renewable fuel projects include
13    those renewable fuel facilities installing new
14    technologies to reduce water and energy usage as well as
15    technologies to reduce greenhouse gas emissions. Projects
16    that will result in more efficient processes, new
17    co-products, fuels and chemicals are also eligible for
18    funding. The annual aggregate amount of grants awarded
19    under this item (1) for next generation ethanol/renewable
20    fuel projects shall not exceed $15,000,000.
21        (2) Majority blended ethanol and blender pump
22    infrastructure program. The Department shall establish a
23    grant program to provide funds for the installation of
24    majority blended ethanol and blender pump fueling
25    facilities. The annual aggregate amount of grants awarded

 

 

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1    under this item (2) shall not exceed $5,000,000.
2        (3) Research and development program for sustainable
3    corn production and corn-based renewable fuel production.
4    The Department shall establish a grant program to provide
5    funds for research and development projects to reduce the
6    carbon footprint of corn based renewable fuels through new
7    co-products, new process technologies, and new fuels. The
8    Department shall also establish a grant program to fund
9    research on increasing the sustainability of corn
10    production through better nitrogen utilization, new best
11    management practices for improved soil health, water
12    conservation, and reduced environmental concerns. Eligible
13    projects include those that will increase corn
14    productivity with lower inputs and less risk. The annual
15    aggregate amount of grants awarded under this item (3)
16    shall not exceed $5,000,000.
17The annual aggregate amount of grants awarded shall not exceed
18$20,000,000, except that this amount does not include amounts,
19up to $4,000,000 per grant, that may be awarded to each
20eligible applicant who installs advanced technologies for
21water usage, carbon footprint reduction, and other blending
22improvements designed to optimize processes at the applicant's
23renewable fuels facility.
24(Source: P.A. 96-173, eff. 8-10-09.)
 
25    Section 10. The Use Tax Act is amended by changing Sections

 

 

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13-10, 3-40, and 3-44 and by adding Sections 3-44.6 and 3-44.7
2as follows:
 
3    (35 ILCS 105/3-10)
4    (Text of Section before amendment by P.A. 97-636)
5    Sec. 3-10. Rate of tax. Unless otherwise provided in this
6Section, the tax imposed by this Act is at the rate of 6.25% of
7either the selling price or the fair market value, if any, of
8the tangible personal property. In all cases where property
9functionally used or consumed is the same as the property that
10was purchased at retail, then the tax is imposed on the selling
11price of the property. In all cases where property functionally
12used or consumed is a by-product or waste product that has been
13refined, manufactured, or produced from property purchased at
14retail, then the tax is imposed on the lower of the fair market
15value, if any, of the specific property so used in this State
16or on the selling price of the property purchased at retail.
17For purposes of this Section "fair market value" means the
18price at which property would change hands between a willing
19buyer and a willing seller, neither being under any compulsion
20to buy or sell and both having reasonable knowledge of the
21relevant facts. The fair market value shall be established by
22Illinois sales by the taxpayer of the same property as that
23functionally used or consumed, or if there are no such sales by
24the taxpayer, then comparable sales or purchases of property of
25like kind and character in Illinois.

 

 

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1    Beginning on July 1, 2000 and through December 31, 2000,
2with respect to motor fuel, as defined in Section 1.1 of the
3Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
4the Use Tax Act, the tax is imposed at the rate of 1.25%.
5    Beginning on August 6, 2010 through August 15, 2010, with
6respect to sales tax holiday items as defined in Section 3-6 of
7this Act, the tax is imposed at the rate of 1.25%.
8    With respect to gasohol, the tax imposed by this Act
9applies to (i) 70% of the proceeds of sales made on or after
10January 1, 1990, and before July 1, 2003, (ii) 80% of the
11proceeds of sales made on or after July 1, 2003 and on or
12before June 30, 2012 December 31, 2013, (iii) 90% of the
13proceeds of sales made on or after July 1, 2012 and on or
14before December 31, 2018, and (iv) (iii) 100% of the proceeds
15of sales made thereafter. If, at any time, however, the tax
16under this Act on sales of gasohol is imposed at the rate of
171.25%, then the tax imposed by this Act applies to 100% of the
18proceeds of sales of gasohol made during that time.
19    With respect to E20 blended ethanol fuel, the tax imposed
20by this Act applies to (i) 80% of the proceeds of sales made on
21or after July 1, 2012 and on or before December 31, 2018 and
22(ii) 100% of the proceeds of sales made thereafter. If, at any
23time, however, the tax under this Act on sales of E20 blended
24ethanol fuel is imposed at the rate of 1.25%, then the tax
25imposed by this Act applies to 100% of the proceeds of sales of
26E20 blended ethanol fuel made during that time.

 

 

SB3616- 6 -LRB097 19794 HLH 65064 b

1    With respect to E30 blended ethanol fuel, the tax imposed
2by this Act applies to (i) 60% of the proceeds of sales made on
3or after July 1, 2012 and on or before December 31, 2018 and
4(ii) 100% of the proceeds of sales made thereafter. If, at any
5time, however, the tax under this Act on sales of E30 blended
6ethanol fuel is imposed at the rate of 1.25%, then the tax
7imposed by this Act applies to 100% of the proceeds of sales of
8E30 blended ethanol fuel made during that time.
9    With respect to majority blended ethanol fuel, the tax
10imposed by this Act does not apply to the proceeds of sales
11made on or after July 1, 2003 and on or before December 31,
122018 December 31, 2013 but applies to 100% of the proceeds of
13sales made thereafter.
14    With respect to biodiesel blends with no less than 1% and
15no more than 10% biodiesel, the tax imposed by this Act applies
16to (i) 80% of the proceeds of sales made on or after July 1,
172003 and on or before December 31, 2013 and (ii) 100% of the
18proceeds of sales made thereafter. If, at any time, however,
19the tax under this Act on sales of biodiesel blends with no
20less than 1% and no more than 10% biodiesel is imposed at the
21rate of 1.25%, then the tax imposed by this Act applies to 100%
22of the proceeds of sales of biodiesel blends with no less than
231% and no more than 10% biodiesel made during that time.
24    With respect to 100% biodiesel and biodiesel blends 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

 

 

SB3616- 7 -LRB097 19794 HLH 65064 b

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

 

 

SB3616- 9 -LRB097 19794 HLH 65064 b

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    If the property that is purchased at retail from a retailer
17is acquired outside Illinois and used outside Illinois before
18being brought to Illinois for use here and is taxable under
19this Act, the "selling price" on which the tax is computed
20shall be reduced by an amount that represents a reasonable
21allowance for depreciation for the period of prior out-of-state
22use.
23(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
24eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10.)
 
25    (Text of Section after amendment by P.A. 97-636)

 

 

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1    Sec. 3-10. Rate of tax. Unless otherwise provided in this
2Section, the tax imposed by this Act is at the rate of 6.25% of
3either the selling price or the fair market value, if any, of
4the tangible personal property. In all cases where property
5functionally used or consumed is the same as the property that
6was purchased at retail, then the tax is imposed on the selling
7price of the property. In all cases where property functionally
8used or consumed is a by-product or waste product that has been
9refined, manufactured, or produced from property purchased at
10retail, then the tax is imposed on the lower of the fair market
11value, if any, of the specific property so used in this State
12or on the selling price of the property purchased at retail.
13For purposes of this Section "fair market value" means the
14price at which property would change hands between a willing
15buyer and a willing seller, neither being under any compulsion
16to buy or sell and both having reasonable knowledge of the
17relevant facts. The fair market value shall be established by
18Illinois sales by the taxpayer of the same property as that
19functionally used or consumed, or if there are no such sales by
20the taxpayer, then comparable sales or purchases of property of
21like kind and character in Illinois.
22    Beginning on July 1, 2000 and through December 31, 2000,
23with respect to motor fuel, as defined in Section 1.1 of the
24Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
25the Use Tax Act, the tax is imposed at the rate of 1.25%.
26    Beginning on August 6, 2010 through August 15, 2010, with

 

 

SB3616- 11 -LRB097 19794 HLH 65064 b

1respect to sales tax holiday items as defined in Section 3-6 of
2this Act, the tax is imposed at the rate of 1.25%.
3    With respect to gasohol, the tax imposed by this Act
4applies to (i) 70% of the proceeds of sales made on or after
5January 1, 1990, and before July 1, 2003, (ii) 80% of the
6proceeds of sales made on or after July 1, 2003 and on or
7before June 30, 2012 December 31, 2018, (iii) 90% of the
8proceeds of sales made on or after July 1, 2012 and on or
9before December 31, 2018, and (iv) (iii) 100% of the proceeds
10of sales made thereafter. If, at any time, however, the tax
11under this Act on sales of gasohol is imposed at the rate of
121.25%, then the tax imposed by this Act applies to 100% of the
13proceeds of sales of gasohol made during that time.
14    With respect to E20 blended ethanol fuel, the tax imposed
15by this Act applies to (i) 80% of the proceeds of sales made on
16or after July 1, 2012 and on or before December 31, 2018 and
17(ii) 100% of the proceeds of sales made thereafter. If, at any
18time, however, the tax under this Act on sales of E20 blended
19ethanol fuel is imposed at the rate of 1.25%, then the tax
20imposed by this Act applies to 100% of the proceeds of sales of
21E20 blended ethanol fuel made during that time.
22    With respect to E30 blended ethanol fuel, the tax imposed
23by this Act applies to (i) 60% of the proceeds of sales made on
24or after July 1, 2012 and on or before December 31, 2018 and
25(ii) 100% of the proceeds of sales made thereafter. If, at any
26time, however, the tax under this Act on sales of E30 blended

 

 

SB3616- 12 -LRB097 19794 HLH 65064 b

1ethanol fuel is imposed at the rate of 1.25%, then the tax
2imposed by this Act applies to 100% of the proceeds of sales of
3E30 blended ethanol fuel made during that time.
4    With respect to majority blended ethanol fuel, the tax
5imposed by this Act does not apply to the proceeds of sales
6made on or after July 1, 2003 and on or before December 31,
72018 but applies to 100% of the proceeds of sales made
8thereafter.
9    With respect to biodiesel blends with no less than 1% and
10no more than 10% biodiesel, the tax imposed by this Act applies
11to (i) 80% of the proceeds of sales made on or after July 1,
122003 and on or before December 31, 2018 and (ii) 100% of the
13proceeds of sales made thereafter. If, at any time, however,
14the tax under this Act on sales of biodiesel blends with no
15less than 1% and no more than 10% biodiesel is imposed at the
16rate of 1.25%, then the tax imposed by this Act applies to 100%
17of the proceeds of sales of biodiesel blends with no less than
181% and no more than 10% biodiesel made during that time.
19    With respect to 100% biodiesel and biodiesel blends with
20more than 10% but no more than 99% biodiesel, the tax imposed
21by this Act does not apply to the proceeds of sales made on or
22after July 1, 2003 and on or before December 31, 2018 but
23applies to 100% of the proceeds of sales made thereafter.
24    With respect to food for human consumption that is to be
25consumed off the premises where it is sold (other than
26alcoholic beverages, soft drinks, and food that has been

 

 

SB3616- 13 -LRB097 19794 HLH 65064 b

1prepared for immediate consumption) and prescription and
2nonprescription medicines, drugs, medical appliances,
3modifications to a motor vehicle for the purpose of rendering
4it usable by a disabled person, and insulin, urine testing
5materials, syringes, and needles used by diabetics, for human
6use, the tax is imposed at the rate of 1%. For the purposes of
7this Section, until September 1, 2009: the term "soft drinks"
8means any complete, finished, ready-to-use, non-alcoholic
9drink, whether carbonated or not, including but not limited to
10soda water, cola, fruit juice, vegetable juice, carbonated
11water, and all other preparations commonly known as soft drinks
12of whatever kind or description that are contained in any
13closed or sealed bottle, can, carton, or container, regardless
14of size; but "soft drinks" does not include coffee, tea,
15non-carbonated water, infant formula, milk or milk products as
16defined in the Grade A Pasteurized Milk and Milk Products Act,
17or drinks containing 50% or more natural fruit or vegetable
18juice.
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

 

 

SB3616- 14 -LRB097 19794 HLH 65064 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

 

 

SB3616- 15 -LRB097 19794 HLH 65064 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    If the property that is purchased at retail from a retailer
12is acquired outside Illinois and used outside Illinois before
13being brought to Illinois for use here and is taxable under
14this Act, the "selling price" on which the tax is computed
15shall be reduced by an amount that represents a reasonable
16allowance for depreciation for the period of prior out-of-state
17use.
18(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
19eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10;
2097-636, eff. 6-1-12.)
 
21    (35 ILCS 105/3-40)  (from Ch. 120, par. 439.3-40)
22    Sec. 3-40. Gasohol. As used in this Act, "gasohol" means
23motor fuel that is a denatured ethanol and gasoline blend of
24denatured ethanol and gasoline that contains (i) no more than
251.25% water by weight and (ii) the maximum proportion of

 

 

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1ethanol authorized by the United States Environmental
2Protection Agency under Section 211 of the Clean Air Act. The
3blend must contain 90% gasoline and 10% denatured ethanol. A
4maximum of one percent error factor in the amount of denatured
5ethanol used in the blend is allowable to compensate for
6blending equipment variations. Any person who knowingly sells
7or represents as gasohol any fuel that does not qualify as
8gasohol under this Act is guilty of a business offense and
9shall be fined not more than $100 for each day that the sale or
10representation takes place after notification from the
11Department of Agriculture that the fuel in question does not
12qualify as gasohol.
13(Source: P.A. 93-724, eff. 7-13-04.)
 
14    (35 ILCS 105/3-44)
15    Sec. 3-44. Majority blended ethanol fuel. "Majority
16blended ethanol fuel" means motor fuel that (i) contains not
17less than 51% and no more than 83% by volume ethanol, as
18specified in ASTM Standard DS798-11 and (ii) is capable of
19being used in the operation of flexible fuel vehicles. 70% and
20no more than 90% denatured ethanol and no less than 10% and no
21more than 30% gasoline.
22(Source: P.A. 93-17, eff. 6-11-03.)
 
23    (35 ILCS 105/3-44.6 new)
24    Sec. 3-44.6. E20 blended ethanol fuel. "E20 blended ethanol

 

 

SB3616- 17 -LRB097 19794 HLH 65064 b

1fuel" means a blend of 20% denatured ethanol, ASTM Standard D
24806, and 80% gasoline for use in flexible fuel vehicles.
 
3    (35 ILCS 105/3-44.7 new)
4    Sec. 3-44.7. E30 blended ethanol fuel. "E30 blended ethanol
5fuel" means a blend of 30% denatured ethanol, ASTM Standard D
64806, and 70% gasoline for use in flexible fuel vehicles.
 
7    Section 15. The Service Use Tax Act is amended by changing
8Section 3-10 as follows:
 
9    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
10    (Text of Section before amendment by P.A. 97-636)
11    Sec. 3-10. Rate of tax. Unless otherwise provided in this
12Section, the tax imposed by this Act is at the rate of 6.25% of
13the selling price of tangible personal property transferred as
14an incident to the sale of service, but, for the purpose of
15computing this tax, in no event shall the selling price be less
16than the cost price of the property to the serviceman.
17    Beginning on July 1, 2000 and through December 31, 2000,
18with respect to motor fuel, as defined in Section 1.1 of the
19Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
20the Use Tax Act, the tax is imposed at the rate of 1.25%.
21    With respect to gasohol, as defined in the Use Tax Act, the
22tax imposed by this Act applies to (i) 70% of the selling price
23of property transferred as an incident to the sale of service

 

 

SB3616- 18 -LRB097 19794 HLH 65064 b

1on or after January 1, 1990, and before July 1, 2003, (ii) 80%
2of the selling price of property transferred as an incident to
3the sale of service on or after July 1, 2003 and on or before
4June 30, 2012 December 31, 2013, (iii) 90% of the selling price
5of property transferred as an incident to the sale of service
6on or after July 1, 2012, and on or before December 31, 2018,
7and (iv) (iii) 100% of the selling price thereafter. If, at any
8time, however, the tax under this Act on sales of gasohol, as
9defined in the Use Tax Act, is imposed at the rate of 1.25%,
10then the tax imposed by this Act applies to 100% of the
11proceeds of sales of gasohol made during that time.
12    With respect to E20 blended ethanol fuel, as defined in the
13Use Tax Act, the tax imposed by this Act applies to (i) 80% of
14the selling price of property transferred as an incident to the
15sale of service on or after July 1, 2012 and on or before
16December 31, 2018 and (ii) 100% of the selling price
17thereafter. If, at any time, however, the tax under this Act on
18sales of E20 blended ethanol fuel is imposed at the rate of
191.25%, then the tax imposed by this Act applies to 100% of the
20proceeds of sales of E20 blended ethanol fuel made during that
21time.
22    With respect to E30 blended ethanol fuel, as defined in the
23Use Tax Act, the tax imposed by this Act applies to (i) 60% of
24the selling price of property transferred as an incident to the
25sale of service on or after July 1, 2012 and on or before
26December 31, 2018 and (ii) 100% of the selling price

 

 

SB3616- 19 -LRB097 19794 HLH 65064 b

1thereafter. If, at any time, however, the tax under this Act on
2sales of E30 blended ethanol fuel is imposed at the rate of
31.25%, then the tax imposed by this Act applies to 100% of the
4proceeds of sales of E30 blended ethanol fuel made during that
5time.
6    With respect to majority blended ethanol fuel, as defined
7in the Use Tax Act, the tax imposed by this Act does not apply
8to the selling price of property transferred as an incident to
9the sale of service on or after July 1, 2003 and on or before
10December 31, 2018 December 31, 2013 but applies to 100% of the
11selling price 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 selling price
15of property transferred as an incident to the sale of service
16on or after July 1, 2003 and on or before December 31, 2013 and
17(ii) 100% of the proceeds of the selling price thereafter. If,
18at any time, however, the tax under this Act on sales of
19biodiesel blends, as defined in the Use Tax Act, with no less
20than 1% and no more than 10% biodiesel is imposed at the rate
21of 1.25%, then the tax imposed by this Act applies to 100% of
22the proceeds of sales of biodiesel blends with no less than 1%
23and no more than 10% biodiesel made during that time.
24    With respect to 100% biodiesel, as defined in the Use Tax
25Act, and biodiesel blends, as defined in the Use Tax Act, with
26more than 10% but no more than 99% biodiesel, the tax imposed

 

 

SB3616- 20 -LRB097 19794 HLH 65064 b

1by this Act does not apply to the proceeds of the selling price
2of property transferred as an incident to the sale of service
3on or after July 1, 2003 and on or before December 31, 2013 but
4applies to 100% of the selling price thereafter.
5    At the election of any registered serviceman made for each
6fiscal year, sales of service in which the aggregate annual
7cost price of tangible personal property transferred as an
8incident to the sales of service is less than 35%, or 75% in
9the case of servicemen transferring prescription drugs or
10servicemen engaged in graphic arts production, of the aggregate
11annual total gross receipts from all sales of service, the tax
12imposed by this Act shall be based on the serviceman's cost
13price of the tangible personal property transferred as an
14incident to the sale of those services.
15    The tax shall be imposed at the rate of 1% on food prepared
16for immediate consumption and transferred incident to a sale of
17service subject to this Act or the Service Occupation Tax Act
18by an entity licensed under the Hospital Licensing Act, the
19Nursing Home Care Act, the ID/DD Community Care Act, the
20Specialized Mental Health Rehabilitation Act, or the Child Care
21Act of 1969. The tax shall also be imposed at the rate of 1% on
22food for human consumption that is to be consumed off the
23premises where it is sold (other than alcoholic beverages, soft
24drinks, and food that has been prepared for immediate
25consumption and is not otherwise included in this paragraph)
26and prescription and nonprescription medicines, drugs, medical

 

 

SB3616- 21 -LRB097 19794 HLH 65064 b

1appliances, modifications to a motor vehicle for the purpose of
2rendering it usable by a disabled person, and insulin, urine
3testing materials, syringes, and needles used by diabetics, for
4human use. For the purposes of this Section, until September 1,
52009: the term "soft drinks" means any complete, finished,
6ready-to-use, non-alcoholic drink, whether carbonated or not,
7including but not limited to soda water, cola, fruit juice,
8vegetable juice, carbonated water, and all other preparations
9commonly known as soft drinks of whatever kind or description
10that are contained in any closed or sealed bottle, can, carton,
11or container, regardless of size; but "soft drinks" does not
12include coffee, tea, non-carbonated water, infant formula,
13milk or milk products as defined in the Grade A Pasteurized
14Milk and Milk Products Act, or drinks containing 50% or more
15natural fruit or vegetable juice.
16    Notwithstanding any other provisions of this Act,
17beginning September 1, 2009, "soft drinks" means non-alcoholic
18beverages that contain natural or artificial sweeteners. "Soft
19drinks" do not include beverages that contain milk or milk
20products, soy, rice or similar milk substitutes, or greater
21than 50% of vegetable or fruit juice by volume.
22    Until August 1, 2009, and notwithstanding any other
23provisions of this Act, "food for human consumption that is to
24be consumed off the premises where it is sold" includes all
25food sold through a vending machine, except soft drinks and
26food products that are dispensed hot from a vending machine,

 

 

SB3616- 22 -LRB097 19794 HLH 65064 b

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

 

 

SB3616- 23 -LRB097 19794 HLH 65064 b

1use that contains a label that identifies the product as a drug
2as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
3label includes:
4        (A) A "Drug Facts" panel; or
5        (B) A statement of the "active ingredient(s)" with a
6    list of those ingredients contained in the compound,
7    substance or preparation.
8    If the property that is acquired from a serviceman is
9acquired outside Illinois and used outside Illinois before
10being brought to Illinois for use here and is taxable under
11this Act, the "selling price" on which the tax is computed
12shall be reduced by an amount that represents a reasonable
13allowance for depreciation for the period of prior out-of-state
14use.
15(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
16eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38,
17eff. 6-28-11; 97-227, eff. 1-1-12; revised 9-12-11.)
 
18    (Text of Section after amendment by P.A. 97-636)
19    Sec. 3-10. Rate of tax. Unless otherwise provided in this
20Section, the tax imposed by this Act is at the rate of 6.25% of
21the selling price of tangible personal property transferred as
22an incident to the sale of service, but, for the purpose of
23computing this tax, in no event shall the selling price be less
24than the cost price of the property to the serviceman.
25    Beginning on July 1, 2000 and through December 31, 2000,

 

 

SB3616- 24 -LRB097 19794 HLH 65064 b

1with respect to motor fuel, as defined in Section 1.1 of the
2Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
3the Use Tax Act, the tax is imposed at the rate of 1.25%.
4    With respect to gasohol, as defined in the Use Tax Act, the
5tax imposed by this Act applies to (i) 70% of the selling price
6of property transferred as an incident to the sale of service
7on or after January 1, 1990, and before July 1, 2003, (ii) 80%
8of the selling price of property transferred as an incident to
9the sale of service on or after July 1, 2003 and on or before
10June 30, 2012 December 31, 2018, (iii) 90% of the selling price
11of property transferred as an incident to the sale of service
12on or after July 1, 2012, and on or before December 31, 2018,
13and (iv) (iii) 100% of the selling price thereafter. If, at any
14time, however, the tax under this Act on sales of gasohol, as
15defined in the Use Tax Act, is imposed at the rate of 1.25%,
16then the tax imposed by this Act applies to 100% of the
17proceeds of sales of gasohol made during that time.
18    With respect to E20 blended ethanol fuel, as defined in the
19Use Tax Act, the tax imposed by this Act applies to (i) 80% of
20the selling price of property transferred as an incident to the
21sale of service on or after July 1, 2012 and on or before
22December 31, 2018 and (ii) 100% of the selling price
23thereafter. If, at any time, however, the tax under this Act on
24sales of E20 blended ethanol fuel is imposed at the rate of
251.25%, then the tax imposed by this Act applies to 100% of the
26proceeds of sales of E20 blended ethanol fuel made during that

 

 

SB3616- 25 -LRB097 19794 HLH 65064 b

1time.
2    With respect to E30 blended ethanol fuel, as defined in the
3Use Tax Act, the tax imposed by this Act applies to (i) 60% of
4the selling price of property transferred as an incident to the
5sale of service on or after July 1, 2012 and on or before
6December 31, 2018 and (ii) 100% of the selling price
7thereafter. If, at any time, however, the tax under this Act on
8sales of E30 blended ethanol fuel is imposed at the rate of
91.25%, then the tax imposed by this Act applies to 100% of the
10proceeds of sales of E30 blended ethanol fuel made during that
11time.
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, 2018 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, 2018 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

 

 

SB3616- 26 -LRB097 19794 HLH 65064 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, 2018 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

 

 

SB3616- 27 -LRB097 19794 HLH 65064 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

 

 

SB3616- 28 -LRB097 19794 HLH 65064 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"

 

 

SB3616- 29 -LRB097 19794 HLH 65064 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; 97-636, eff. 6-1-12.)
 
24    Section 20. The Service Occupation Tax Act is amended by
25changing Section 3-10 as follows:
 

 

 

SB3616- 30 -LRB097 19794 HLH 65064 b

1    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
2    (Text of Section before amendment by P.A. 97-636)
3    Sec. 3-10. Rate of tax. Unless otherwise provided in this
4Section, the tax imposed by this Act is at the rate of 6.25% of
5the "selling price", as defined in Section 2 of the Service Use
6Tax Act, of the tangible personal property. For the purpose of
7computing this tax, in no event shall the "selling price" be
8less than the cost price to the serviceman of the tangible
9personal property transferred. The selling price of each item
10of tangible personal property transferred as an incident of a
11sale of service may be shown as a distinct and separate item on
12the serviceman's billing to the service customer. If the
13selling price is not so shown, the selling price of the
14tangible personal property is deemed to be 50% of the
15serviceman's entire billing to the service customer. When,
16however, a serviceman contracts to design, develop, and produce
17special order machinery or equipment, the tax imposed by this
18Act shall be based on the serviceman's cost price of the
19tangible personal property transferred incident to the
20completion of the contract.
21    Beginning on July 1, 2000 and through December 31, 2000,
22with respect to motor fuel, as defined in Section 1.1 of the
23Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
24the Use Tax Act, the tax is imposed at the rate of 1.25%.
25    With respect to gasohol, as defined in the Use Tax Act, the

 

 

SB3616- 31 -LRB097 19794 HLH 65064 b

1tax imposed by this Act shall apply to (i) 70% of the cost
2price of property transferred as an incident to the sale of
3service on or after January 1, 1990, and before July 1, 2003,
4(ii) 80% of the selling price of property transferred as an
5incident to the sale of service on or after July 1, 2003 and on
6or before June 30, 2012 December 31, 2013, (iii) 90% of the
7selling price of property transferred as an incident to the
8sale of service on or after July 1, 2012, and on or before
9December 31, 2018, and (iv) (iii) 100% of the cost price
10thereafter. If, at any time, however, the tax under this Act on
11sales of gasohol, as defined in the Use Tax Act, is imposed at
12the rate of 1.25%, then the tax imposed by this Act applies to
13100% of the proceeds of sales of gasohol made during that time.
14    With respect to E20 blended ethanol fuel, as defined in the
15Use Tax Act, the tax imposed by this Act applies to (i) 80% of
16the selling price of property transferred as an incident to the
17sale of service on or after July 1, 2012 and on or before
18December 31, 2018 and (ii) 100% of the selling price
19thereafter. If, at any time, however, the tax under this Act on
20sales of E20 blended ethanol fuel is imposed at the rate of
211.25%, then the tax imposed by this Act applies to 100% of the
22proceeds of sales of E20 blended ethanol fuel made during that
23time.
24    With respect to E30 blended ethanol fuel, as defined in the
25Use Tax Act, the tax imposed by this Act applies to (i) 60% of
26the selling price of property transferred as an incident to the

 

 

SB3616- 32 -LRB097 19794 HLH 65064 b

1sale of service on or after July 1, 2012 and on or before
2December 31, 2018 and (ii) 100% of the selling price
3thereafter. If, at any time, however, the tax under this Act on
4sales of E30 blended ethanol fuel is imposed at the rate of
51.25%, then the tax imposed by this Act applies to 100% of the
6proceeds of sales of E30 blended ethanol fuel made during that
7time.
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, 2018 December 31, 2013 but applies to 100% of the
13selling price thereafter.
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

 

 

SB3616- 33 -LRB097 19794 HLH 65064 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

 

 

SB3616- 34 -LRB097 19794 HLH 65064 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

 

 

SB3616- 35 -LRB097 19794 HLH 65064 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

 

 

SB3616- 36 -LRB097 19794 HLH 65064 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

 

 

SB3616- 37 -LRB097 19794 HLH 65064 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    With respect to gasohol, as defined in the Use Tax Act, the
13tax imposed by this Act shall apply to (i) 70% of the cost
14price of property transferred as an incident to the sale of
15service on or after January 1, 1990, and before July 1, 2003,
16(ii) 80% of the selling price of property transferred as an
17incident to the sale of service on or after July 1, 2003 and on
18or before June 30, 2012 December 31, 2018, (iii) 90% of the
19selling price of property transferred as an incident to the
20sale of service on or after July 1, 2012, and on or before
21December 31, 2018, and (iv) (iii) 100% of the cost price
22thereafter. If, at any time, however, the tax under this Act on
23sales of gasohol, as defined in the Use Tax Act, is imposed at
24the rate of 1.25%, then the tax imposed by this Act applies to
25100% of the proceeds of sales of gasohol made during that time.
26    With respect to E20 blended ethanol fuel, as defined in the

 

 

SB3616- 38 -LRB097 19794 HLH 65064 b

1Use Tax Act, the tax imposed by this Act applies to (i) 80% of
2the selling price of property transferred as an incident to the
3sale of service on or after July 1, 2012 and on or before
4December 31, 2018 and (ii) 100% of the selling price
5thereafter. If, at any time, however, the tax under this Act on
6sales of E20 blended ethanol fuel is imposed at the rate of
71.25%, then the tax imposed by this Act applies to 100% of the
8proceeds of sales of E20 blended ethanol fuel made during that
9time.
10    With respect to E30 blended ethanol fuel, as defined in the
11Use Tax Act, the tax imposed by this Act applies to (i) 60% of
12the selling price of property transferred as an incident to the
13sale of service on or after July 1, 2012 and on or before
14December 31, 2018 and (ii) 100% of the selling price
15thereafter. If, at any time, however, the tax under this Act on
16sales of E30 blended ethanol fuel is imposed at the rate of
171.25%, then the tax imposed by this Act applies to 100% of the
18proceeds of sales of E30 blended ethanol fuel made during that
19time.
20    With respect to majority blended ethanol fuel, as defined
21in the Use Tax Act, the tax imposed by this Act does not apply
22to the selling price of property transferred as an incident to
23the sale of service on or after July 1, 2003 and on or before
24December 31, 2018 but applies to 100% of the selling price
25thereafter.
26    With respect to biodiesel blends, as defined in the Use Tax

 

 

SB3616- 39 -LRB097 19794 HLH 65064 b

1Act, with no less than 1% and no more than 10% biodiesel, the
2tax imposed by this Act applies to (i) 80% of the selling price
3of property transferred as an incident to the sale of service
4on or after July 1, 2003 and on or before December 31, 2018 and
5(ii) 100% of the proceeds of the selling price thereafter. If,
6at any time, however, the tax under this Act on sales of
7biodiesel blends, as defined in the Use Tax Act, with no less
8than 1% and no more than 10% biodiesel is imposed at the rate
9of 1.25%, then the tax imposed by this Act applies to 100% of
10the proceeds of sales of biodiesel blends with no less than 1%
11and no more than 10% biodiesel made during that time.
12    With respect to 100% biodiesel, as defined in the Use Tax
13Act, and biodiesel blends, as defined in the Use Tax Act, with
14more than 10% but no more than 99% biodiesel material, the tax
15imposed by this Act does not apply to the proceeds of the
16selling price of property transferred as an incident to the
17sale of service on or after July 1, 2003 and on or before
18December 31, 2018 but applies to 100% of the selling price
19thereafter.
20    At the election of any registered serviceman made for each
21fiscal year, sales of service in which the aggregate annual
22cost price of tangible personal property transferred as an
23incident to the sales of service is less than 35%, or 75% in
24the case of servicemen transferring prescription drugs or
25servicemen engaged in graphic arts production, of the aggregate
26annual total gross receipts from all sales of service, the tax

 

 

SB3616- 40 -LRB097 19794 HLH 65064 b

1imposed by this Act shall be based on the serviceman's cost
2price of the tangible personal property transferred incident to
3the sale of those services.
4    The tax shall be imposed at the rate of 1% on food prepared
5for immediate consumption and transferred incident to a sale of
6service subject to this Act or the Service Occupation Tax Act
7by an entity licensed under the Hospital Licensing Act, the
8Nursing Home Care Act, the ID/DD Community Care Act, the
9Specialized Mental Health Rehabilitation Act, or the Child Care
10Act of 1969. The tax shall also be imposed at the rate of 1% on
11food for human consumption that is to be consumed off the
12premises where it is sold (other than alcoholic beverages, soft
13drinks, and food that has been prepared for immediate
14consumption and is not otherwise included in this paragraph)
15and prescription and nonprescription medicines, drugs, medical
16appliances, modifications to a motor vehicle for the purpose of
17rendering it usable by a disabled person, and insulin, urine
18testing materials, syringes, and needles used by diabetics, for
19human use. For the purposes of this Section, until September 1,
202009: the term "soft drinks" means any complete, finished,
21ready-to-use, non-alcoholic drink, whether carbonated or not,
22including but not limited to soda water, cola, fruit juice,
23vegetable juice, carbonated water, and all other preparations
24commonly known as soft drinks of whatever kind or description
25that are contained in any closed or sealed can, carton, or
26container, regardless of size; but "soft drinks" does not

 

 

SB3616- 41 -LRB097 19794 HLH 65064 b

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

 

 

SB3616- 42 -LRB097 19794 HLH 65064 b

1preparation of sugar, honey, or other natural or artificial
2sweeteners in combination with chocolate, fruits, nuts or other
3ingredients or flavorings in the form of bars, drops, or
4pieces. "Candy" does not include any preparation that contains
5flour or requires refrigeration.
6    Notwithstanding any other provisions of this Act,
7beginning September 1, 2009, "nonprescription medicines and
8drugs" does not include grooming and hygiene products. For
9purposes of this Section, "grooming and hygiene products"
10includes, but is not limited to, soaps and cleaning solutions,
11shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
12lotions and screens, unless those products are available by
13prescription only, regardless of whether the products meet the
14definition of "over-the-counter-drugs". For the purposes of
15this paragraph, "over-the-counter-drug" means a drug for human
16use that contains a label that identifies the product as a drug
17as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
18label includes:
19        (A) A "Drug Facts" panel; or
20        (B) A statement of the "active ingredient(s)" with a
21    list of those ingredients contained in the compound,
22    substance or preparation.
23(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
24eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38,
25eff. 6-28-11; 97-227, eff. 1-1-12; 97-636, eff. 6-1-12.)
 

 

 

SB3616- 43 -LRB097 19794 HLH 65064 b

1    Section 25. The Retailers' Occupation Tax Act is amended by
2changing Section 2-10 as follows:
 
3    (35 ILCS 120/2-10)
4    (Text of Section before amendment by P.A. 97-636)
5    Sec. 2-10. Rate of tax. Unless otherwise provided in this
6Section, the tax imposed by this Act is at the rate of 6.25% of
7gross receipts from sales of tangible personal property made in
8the course of business.
9    Beginning on July 1, 2000 and through December 31, 2000,
10with respect to motor fuel, as defined in Section 1.1 of the
11Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
12the Use Tax Act, the tax is imposed at the rate of 1.25%.
13    Beginning on August 6, 2010 through August 15, 2010, with
14respect to sales tax holiday items as defined in Section 2-8 of
15this Act, the tax is imposed at the rate of 1.25%.
16    Within 14 days after the effective date of this amendatory
17Act of the 91st General Assembly, each retailer of motor fuel
18and gasohol shall cause the following notice to be posted in a
19prominently visible place on each retail dispensing device that
20is used to dispense motor fuel or gasohol in the State of
21Illinois: "As of July 1, 2000, the State of Illinois has
22eliminated the State's share of sales tax on motor fuel and
23gasohol through December 31, 2000. The price on this pump
24should reflect the elimination of the tax." The notice shall be
25printed in bold print on a sign that is no smaller than 4

 

 

SB3616- 44 -LRB097 19794 HLH 65064 b

1inches by 8 inches. The sign shall be clearly visible to
2customers. Any retailer who fails to post or maintain a
3required sign through December 31, 2000 is guilty of a petty
4offense for which the fine shall be $500 per day per each
5retail premises where a violation occurs.
6    With respect to gasohol, as defined in the Use Tax Act, the
7tax imposed by this Act applies to (i) 70% of the proceeds of
8sales made on or after January 1, 1990, and before July 1,
92003, (ii) 80% of the proceeds of sales made on or after July
101, 2003 and on or before June 30, 2012 December 31, 2013, (iii)
1190% of the proceeds of sales made on or after July 1, 2012 and
12on or before December 31, 2018, and (iv) (iii) 100% of the
13proceeds of sales made thereafter. If, at any time, however,
14the tax under this Act on sales of gasohol, as defined in the
15Use Tax Act, is imposed at the rate of 1.25%, then the tax
16imposed by this Act applies to 100% of the proceeds of sales of
17gasohol made during that time.
18    With respect to E20 blended ethanol fuel, as defined in the
19Use Tax Act, the tax imposed by this Act applies to (i) 80% of
20the proceeds of sales made on or after July 1, 2012 and on or
21before December 31, 2018 and (ii) 100% of the proceeds of sales
22made thereafter. If, at any time, however, the tax under this
23Act on sales of E20 blended ethanol fuel is imposed at the rate
24of 1.25%, then the tax imposed by this Act applies to 100% of
25the proceeds of sales of E20 blended ethanol fuel made during
26that time.

 

 

SB3616- 45 -LRB097 19794 HLH 65064 b

1    With respect to E30 blended ethanol fuel, as defined in the
2Use Tax Act, the tax imposed by this Act applies to (i) 60% of
3the proceeds of sales made on or after July 1, 2012 and on or
4before December 31, 2018 and (ii) 100% of the proceeds of sales
5made thereafter. If, at any time, however, the tax under this
6Act on sales of E30 blended ethanol fuel is imposed at the rate
7of 1.25%, then the tax imposed by this Act applies to 100% of
8the proceeds of sales of E30 blended ethanol fuel made during
9that time.
10    With respect to majority blended ethanol fuel, as defined
11in the Use Tax Act, the tax imposed by this Act does not apply
12to the proceeds of sales made on or after July 1, 2003 and on or
13before December 31, 2018 December 31, 2013 but applies to 100%
14of the proceeds of sales made thereafter.
15    With respect to biodiesel blends, as defined in the Use Tax
16Act, with no less than 1% and no more than 10% biodiesel, the
17tax imposed by this Act applies to (i) 80% of the proceeds of
18sales made on or after July 1, 2003 and on or before December
1931, 2013 and (ii) 100% of the proceeds of sales made
20thereafter. If, at any time, however, the tax under this Act on
21sales of biodiesel blends, as defined in the Use Tax Act, with
22no less than 1% and no more than 10% biodiesel is imposed at
23the rate of 1.25%, then the tax imposed by this Act applies to
24100% of the proceeds of sales of biodiesel blends with no less
25than 1% and no more than 10% biodiesel made during that time.
26    With respect to 100% biodiesel, as defined in the Use Tax

 

 

SB3616- 46 -LRB097 19794 HLH 65064 b

1Act, and biodiesel blends, as defined in the Use Tax Act, with
2more than 10% but no more than 99% biodiesel, the tax imposed
3by this Act does not apply to the proceeds of sales made on or
4after July 1, 2003 and on or before December 31, 2013 but
5applies to 100% of the proceeds of sales made thereafter.
6    With respect to food for human consumption that is to be
7consumed off the premises where it is sold (other than
8alcoholic beverages, soft drinks, and food that has been
9prepared for immediate consumption) and prescription and
10nonprescription medicines, drugs, medical appliances,
11modifications to a motor vehicle for the purpose of rendering
12it usable by a disabled person, and insulin, urine testing
13materials, syringes, and needles used by diabetics, for human
14use, the tax is imposed at the rate of 1%. For the purposes of
15this Section, until September 1, 2009: the term "soft drinks"
16means any complete, finished, ready-to-use, non-alcoholic
17drink, whether carbonated or not, including but not limited to
18soda water, cola, fruit juice, vegetable juice, carbonated
19water, and all other preparations commonly known as soft drinks
20of whatever kind or description that are contained in any
21closed or sealed bottle, can, carton, or container, regardless
22of size; but "soft drinks" does not include coffee, tea,
23non-carbonated water, infant formula, milk or milk products as
24defined in the Grade A Pasteurized Milk and Milk Products Act,
25or drinks containing 50% or more natural fruit or vegetable
26juice.

 

 

SB3616- 47 -LRB097 19794 HLH 65064 b

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

 

 

SB3616- 48 -LRB097 19794 HLH 65064 b

1flour or requires refrigeration.
2    Notwithstanding any other provisions of this Act,
3beginning September 1, 2009, "nonprescription medicines and
4drugs" does not include grooming and hygiene products. For
5purposes of this Section, "grooming and hygiene products"
6includes, but is not limited to, soaps and cleaning solutions,
7shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
8lotions and screens, unless those products are available by
9prescription only, regardless of whether the products meet the
10definition of "over-the-counter-drugs". For the purposes of
11this paragraph, "over-the-counter-drug" means a drug for human
12use that contains a label that identifies the product as a drug
13as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
14label includes:
15        (A) A "Drug Facts" panel; or
16        (B) A statement of the "active ingredient(s)" with a
17    list of those ingredients contained in the compound,
18    substance or preparation.
19(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
20eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10.)
 
21    (Text of Section after amendment by P.A. 97-636)
22    Sec. 2-10. Rate of tax. Unless otherwise provided in this
23Section, the tax imposed by this Act is at the rate of 6.25% of
24gross receipts from sales of tangible personal property made in
25the course of business.

 

 

SB3616- 49 -LRB097 19794 HLH 65064 b

1    Beginning on July 1, 2000 and through December 31, 2000,
2with respect to motor fuel, as defined in Section 1.1 of the
3Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
4the Use Tax Act, the tax is imposed at the rate of 1.25%.
5    Beginning on August 6, 2010 through August 15, 2010, with
6respect to sales tax holiday items as defined in Section 2-8 of
7this Act, the tax is imposed at the rate of 1.25%.
8    Within 14 days after the effective date of this amendatory
9Act of the 91st General Assembly, each retailer of motor fuel
10and gasohol shall cause the following notice to be posted in a
11prominently visible place on each retail dispensing device that
12is used to dispense motor fuel or gasohol in the State of
13Illinois: "As of July 1, 2000, the State of Illinois has
14eliminated the State's share of sales tax on motor fuel and
15gasohol through December 31, 2000. The price on this pump
16should reflect the elimination of the tax." The notice shall be
17printed in bold print on a sign that is no smaller than 4
18inches by 8 inches. The sign shall be clearly visible to
19customers. Any retailer who fails to post or maintain a
20required sign through December 31, 2000 is guilty of a petty
21offense for which the fine shall be $500 per day per each
22retail premises where a violation occurs.
23    With respect to gasohol, as defined in the Use Tax Act, the
24tax imposed by this Act applies to (i) 70% of the proceeds of
25sales made on or after January 1, 1990, and before July 1,
262003, (ii) 80% of the proceeds of sales made on or after July

 

 

SB3616- 50 -LRB097 19794 HLH 65064 b

11, 2003 and on or before June 30, 2012 December 31, 2018, (iii)
290% of the proceeds of sales made on or after July 1, 2012 and
3on or before December 31, 2018, and (iv) (iii) 100% of the
4proceeds of sales made thereafter. If, at any time, however,
5the tax under this Act on sales of gasohol, as defined in the
6Use Tax Act, is imposed at the rate of 1.25%, then the tax
7imposed by this Act applies to 100% of the proceeds of sales of
8gasohol made during that time.
9    With respect to E20 blended ethanol fuel, as defined in the
10Use Tax Act, the tax imposed by this Act applies to (i) 80% of
11the proceeds of sales made on or after July 1, 2012 and on or
12before December 31, 2018 and (ii) 100% of the proceeds of sales
13made thereafter. If, at any time, however, the tax under this
14Act on sales of E20 blended ethanol fuel is imposed at the rate
15of 1.25%, then the tax imposed by this Act applies to 100% of
16the proceeds of sales of E20 blended ethanol fuel made during
17that time.
18    With respect to E30 blended ethanol fuel, as defined in the
19Use Tax Act, the tax imposed by this Act applies to (i) 60% of
20the proceeds of sales made on or after July 1, 2012 and on or
21before December 31, 2018 and (ii) 100% of the proceeds of sales
22made thereafter. If, at any time, however, the tax under this
23Act on sales of E30 blended ethanol fuel is imposed at the rate
24of 1.25%, then the tax imposed by this Act applies to 100% of
25the proceeds of sales of E30 blended ethanol fuel made during
26that time.

 

 

SB3616- 51 -LRB097 19794 HLH 65064 b

1    With respect to majority blended ethanol fuel, as defined
2in the Use Tax Act, the tax imposed by this Act does not apply
3to the proceeds of sales made on or after July 1, 2003 and on or
4before December 31, 2018 but applies to 100% of the proceeds of
5sales made thereafter.
6    With respect to biodiesel blends, as defined in the Use Tax
7Act, with no less than 1% and no more than 10% biodiesel, the
8tax imposed by this Act applies to (i) 80% of the proceeds of
9sales made on or after July 1, 2003 and on or before December
1031, 2018 and (ii) 100% of the proceeds of sales made
11thereafter. If, at any time, however, the tax under this Act on
12sales of biodiesel blends, as defined in the Use Tax Act, with
13no less than 1% and no more than 10% biodiesel is imposed at
14the rate of 1.25%, then the tax imposed by this Act applies to
15100% of the proceeds of sales of biodiesel blends with no less
16than 1% and no more than 10% biodiesel made during that time.
17    With respect to 100% biodiesel, as defined in the Use Tax
18Act, and biodiesel blends, as defined in the Use Tax Act, 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, 2018 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

 

 

SB3616- 52 -LRB097 19794 HLH 65064 b

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

 

 

SB3616- 53 -LRB097 19794 HLH 65064 b

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

 

 

SB3616- 54 -LRB097 19794 HLH 65064 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(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
11eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10;
1297-636, eff. 6-1-12.)
 
13    Section 95. No acceleration or delay. Where this Act makes
14changes in a statute that is represented in this Act by text
15that is not yet or no longer in effect (for example, a Section
16represented by multiple versions), the use of that text does
17not accelerate or delay the taking effect of (i) the changes
18made by this Act or (ii) provisions derived from any other
19Public Act.
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.