SB1146eng 102ND GENERAL ASSEMBLY

  
  
  

 


 
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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Sections
53-10 and 3-41 and by adding Sections 3-5.1 and 3-42.5 as
6follows:
 
7    (35 ILCS 105/3-5.1 new)
8    Sec. 3-5.1. Biodiesel, renewable diesel, and biodiesel
9blends.
10    (a) From January 1, 2024 through March 31, 2024, the taxes
11imposed by this Act, the Service Use Tax Act, the Service
12Occupation Tax Act, or the Retailers' Occupation Tax Act do
13not apply to the proceeds of sales of the following items: (i)
14biodiesel; (ii) renewable diesel; or (iii) biodiesel blends
15with more than 10% but no more than 99% biodiesel.
16    (b) From April 1, 2024 through November 30, 2024, the
17taxes imposed by this Act, the Service Use Tax Act, the Service
18Occupation Tax Act, or the Retailers' Occupation Tax Act do
19not apply to the proceeds of sales of the following items: (i)
20biodiesel; (ii) renewable diesel; or (iii) biodiesel blends
21with more than 13% but no more than 99% biodiesel.
22    (c) From December 1, 2024 through March 31, 2025, the
23taxes imposed by this Act, the Service Use Tax Act, the Service

 

 

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1Occupation Tax Act, or the Retailers' Occupation Tax Act do
2not apply to the proceeds of sales of the following items: (i)
3biodiesel; (ii) renewable diesel; or (iii) biodiesel blends
4with more than 10% but no more than 99% biodiesel.
5    (d) From April 1, 2025 through November 30, 2025, the
6taxes imposed by this Act, the Service Use Tax Act, the Service
7Occupation Tax Act, or the Retailers' Occupation Tax Act do
8not apply to the proceeds of sales of the following items: (i)
9biodiesel; (ii) renewable diesel; or (iii) biodiesel blends
10with more than 16% but no more than 99% biodiesel.
11    (e) From December 1, 2025 through March 31, 2026, the
12taxes imposed by this Act, the Service Use Tax Act, the Service
13Occupation Tax Act, or the Retailers' Occupation Tax Act do
14not apply to the proceeds of sales of the following items: (i)
15biodiesel; (ii) renewable diesel; or (iii) biodiesel blends
16with more than 10% but no more than 99% biodiesel.
17    (f) On and after April 1, 2026, the taxes imposed by this
18Act, the Service Use Tax Act, the Service Occupation Tax Act,
19or the Retailers' Occupation Tax Act do not apply to the
20proceeds of sales of the following items: (i) biodiesel; (ii)
21renewable diesel; or (iii) biodiesel blends with more than 19%
22but no more than 99% biodiesel; provided that, from December 1
23of any calendar year through March 31 of the following
24calendar year, the taxes imposed by this Act, the Service Use
25Tax Act, the Service Occupation Tax Act, or the Retailers'
26Occupation Tax Act do not apply to the proceeds of sales of the

 

 

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1following items: (i) biodiesel; (ii) renewable diesel; or
2(iii) biodiesel blends with more than 10% but no more than 99%
3biodiesel.
4    (g) This Section is exempt from the provisions of Section
53-90 of this Act, Section 3-75 of the Service Use Tax Act,
6Section 3-55 of the Service Occupation Tax Act, and Section
72-70 of the Retailers' Occupation Tax Act.
 
8    (35 ILCS 105/3-10)
9    Sec. 3-10. Rate of tax. Unless otherwise provided in this
10Section, the tax imposed by this Act is at the rate of 6.25% of
11either the selling price or the fair market value, if any, of
12the tangible personal property. In all cases where property
13functionally used or consumed is the same as the property that
14was purchased at retail, then the tax is imposed on the selling
15price of the property. In all cases where property
16functionally used or consumed is a by-product or waste product
17that has been refined, manufactured, or produced from property
18purchased at retail, then the tax is imposed on the lower of
19the fair market value, if any, of the specific property so used
20in this State or on the selling price of the property purchased
21at retail. For purposes of this Section "fair market value"
22means the price at which property would change hands between a
23willing buyer and a willing seller, neither being under any
24compulsion to buy or sell and both having reasonable knowledge
25of the relevant facts. The fair market value shall be

 

 

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1established by Illinois sales by the taxpayer of the same
2property as that functionally used or consumed, or if there
3are no such sales by the taxpayer, then comparable sales or
4purchases of property of like kind and character in Illinois.
5    Beginning on July 1, 2000 and through December 31, 2000,
6with respect to motor fuel, as defined in Section 1.1 of the
7Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
8the Use Tax Act, the tax is imposed at the rate of 1.25%.
9    Beginning on August 6, 2010 through August 15, 2010, with
10respect to sales tax holiday items as defined in Section 3-6 of
11this Act, the tax is imposed at the rate of 1.25%.
12    With respect to gasohol, the tax imposed by this Act
13applies to (i) 70% of the proceeds of sales made on or after
14January 1, 1990, and before July 1, 2003, (ii) 80% of the
15proceeds of sales made on or after July 1, 2003 and on or
16before July 1, 2017, and (iii) 100% of the proceeds of sales
17made thereafter. If, at any time, however, the tax under this
18Act on sales of gasohol is imposed at the rate of 1.25%, then
19the tax imposed by this Act applies to 100% of the proceeds of
20sales of gasohol made during that time.
21    With respect to majority blended ethanol fuel, the tax
22imposed by this Act does not apply to the proceeds of sales
23made on or after July 1, 2003 and on or before December 31,
242023 but applies to 100% of the proceeds of sales made
25thereafter.
26    With respect to biodiesel blends with no less than 1% and

 

 

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1no more than 10% biodiesel, the tax imposed by this Act applies
2to (i) 80% of the proceeds of sales made on or after July 1,
32003 and on or before December 31, 2018 and (ii) 100% of the
4proceeds of sales made after December 31, 2018 and before
5January 1, 2024. On and after January 1, 2024, the taxation of
6biodiesel, renewable diesel, and biodiesel blends shall be as
7provided in Section 3-5.1 thereafter. If, at any time,
8however, the tax under this Act on sales of biodiesel blends
9with no less than 1% and no more than 10% biodiesel is imposed
10at the rate of 1.25%, then the tax imposed by this Act applies
11to 100% of the proceeds of sales of biodiesel blends with no
12less than 1% and no more than 10% biodiesel made during that
13time.
14    With respect to 100% biodiesel and biodiesel blends with
15more than 10% but no more than 99% biodiesel, the tax imposed
16by this Act does not apply to the proceeds of sales made on or
17after July 1, 2003 and on or before December 31, 2023 but
18applies to 100% of the proceeds of sales made thereafter. On
19and after January 1, 2024, the taxation of biodiesel,
20renewable diesel, and biodiesel blends shall be as provided in
21Section 3-5.1.
22    With respect to food for human consumption that is to be
23consumed off the premises where it is sold (other than
24alcoholic beverages, food consisting of or infused with adult
25use cannabis, soft drinks, and food that has been prepared for
26immediate consumption) and prescription and nonprescription

 

 

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

 

 

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

 

 

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1shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
2lotions and screens, unless those products are available by
3prescription only, regardless of whether the products meet the
4definition of "over-the-counter-drugs". For the purposes of
5this paragraph, "over-the-counter-drug" means a drug for human
6use that contains a label that identifies the product as a drug
7as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
8label includes:
9        (A) A "Drug Facts" panel; or
10        (B) A statement of the "active ingredient(s)" with a
11    list of those ingredients contained in the compound,
12    substance or preparation.
13    Beginning on the effective date of this amendatory Act of
14the 98th General Assembly, "prescription and nonprescription
15medicines and drugs" includes medical cannabis purchased from
16a registered dispensing organization under the Compassionate
17Use of Medical Cannabis Program Act.
18    As used in this Section, "adult use cannabis" means
19cannabis subject to tax under the Cannabis Cultivation
20Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
21and does not include cannabis subject to tax under the
22Compassionate Use of Medical Cannabis Program Act.
23    If the property that is purchased at retail from a
24retailer is acquired outside Illinois and used outside
25Illinois before being brought to Illinois for use here and is
26taxable under this Act, the "selling price" on which the tax is

 

 

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1computed shall be reduced by an amount that represents a
2reasonable allowance for depreciation for the period of prior
3out-of-state use.
4(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
5102-4, eff. 4-27-21.)
 
6    (35 ILCS 105/3-41)
7    Sec. 3-41. Biodiesel. "Biodiesel" means a renewable diesel
8fuel substitute derived from biomass that is intended for use
9in diesel engines.
10(Source: P.A. 93-17, eff. 6-11-03.)
 
11    (35 ILCS 105/3-42.5 new)
12    Sec. 3-42.5. Renewable diesel. "Renewable diesel" means a
13hydrocarbon fuel derived from biomass meeting the requirements
14of the latest version of ASTM standards D975 or D396. Fuels
15that have been co-processed are not considered renewable
16diesel.
 
17    Section 10. The Service Use Tax Act is amended by changing
18Section 3-10 as follows:
 
19    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
20    Sec. 3-10. Rate of tax. Unless otherwise provided in this
21Section, the tax imposed by this Act is at the rate of 6.25% of
22the selling price of tangible personal property transferred as

 

 

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

 

 

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1the tax imposed by this Act applies to (i) 80% of the selling
2price of property transferred as an incident to the sale of
3service on or after July 1, 2003 and on or before December 31,
42018 and (ii) 100% of the proceeds of the selling price after
5December 31, 2018 and before January 1, 2024. On and after
6January 1, 2024, the taxation of biodiesel, renewable diesel,
7and biodiesel blends shall be as provided in Section 3-5.1 of
8the Use Tax Act thereafter. If, at any time, however, the tax
9under this Act on sales of biodiesel blends, as defined in the
10Use Tax Act, with no less than 1% and no more than 10%
11biodiesel is imposed at the rate of 1.25%, then the tax imposed
12by this Act applies to 100% of the proceeds of sales of
13biodiesel blends with no less than 1% and no more than 10%
14biodiesel made during that time.
15    With respect to 100% biodiesel, as defined in the Use Tax
16Act, and biodiesel blends, as defined in the Use Tax Act, with
17more than 10% but no more than 99% biodiesel, the tax imposed
18by this Act does not apply to the proceeds of the selling price
19of property transferred as an incident to the sale of service
20on or after July 1, 2003 and on or before December 31, 2023 but
21applies to 100% of the selling price thereafter. On and after
22January 1, 2024, the taxation of biodiesel, renewable diesel,
23and biodiesel blends shall be as provided in Section 3-5.1 of
24the Use Tax Act.
25    At the election of any registered serviceman made for each
26fiscal year, sales of service in which the aggregate annual

 

 

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

 

 

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

 

 

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1food sold through a vending machine, except soft drinks and
2food products that are dispensed hot from a vending machine,
3regardless of the location of the vending machine. Beginning
4August 1, 2009, and notwithstanding any other provisions of
5this Act, "food for human consumption that is to be consumed
6off the premises where it is sold" includes all food sold
7through a vending machine, except soft drinks, candy, and food
8products that are dispensed hot from a vending machine,
9regardless of the location of the vending machine.
10    Notwithstanding any other provisions of this Act,
11beginning September 1, 2009, "food for human consumption that
12is to be consumed off the premises where it is sold" does not
13include candy. For purposes of this Section, "candy" means a
14preparation of sugar, honey, or other natural or artificial
15sweeteners in combination with chocolate, fruits, nuts or
16other ingredients 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

 

 

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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    Beginning on January 1, 2014 (the effective date of Public
11Act 98-122), "prescription and nonprescription medicines and
12drugs" includes medical cannabis purchased from a registered
13dispensing organization under the Compassionate Use of Medical
14Cannabis Program Act.
15    As used in this Section, "adult use cannabis" means
16cannabis subject to tax under the Cannabis Cultivation
17Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
18and does not include cannabis subject to tax under the
19Compassionate Use of Medical Cannabis Program Act.
20    If the property that is acquired from a serviceman is
21acquired outside Illinois and used outside Illinois before
22being brought to Illinois for use here and is taxable under
23this Act, the "selling price" on which the tax is computed
24shall be reduced by an amount that represents a reasonable
25allowance for depreciation for the period of prior
26out-of-state use.

 

 

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1(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
2102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
3    Section 15. The Service Occupation Tax Act is amended by
4changing Section 3-10 as follows:
 
5    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
6    Sec. 3-10. Rate of tax. Unless otherwise provided in this
7Section, the tax imposed by this Act is at the rate of 6.25% of
8the "selling price", as defined in Section 2 of the Service Use
9Tax Act, of the tangible personal property. For the purpose of
10computing this tax, in no event shall the "selling price" be
11less than the cost price to the serviceman of the tangible
12personal property transferred. The selling price of each item
13of tangible personal property transferred as an incident of a
14sale of service may be shown as a distinct and separate item on
15the serviceman's billing to the service customer. If the
16selling price is not so shown, the selling price of the
17tangible personal property is deemed to be 50% of the
18serviceman's entire billing to the service customer. When,
19however, a serviceman contracts to design, develop, and
20produce special order machinery or equipment, the tax imposed
21by this Act shall be based on the serviceman's cost price of
22the tangible personal property transferred incident to the
23completion of the contract.
24    Beginning on July 1, 2000 and through December 31, 2000,

 

 

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1with respect to motor fuel, as defined in Section 1.1 of the
2Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
3the Use Tax Act, the tax is imposed at the rate of 1.25%.
4    With respect to gasohol, as defined in the Use Tax Act, the
5tax imposed by this Act shall apply to (i) 70% of the cost
6price of property transferred as an incident to the sale of
7service on or after January 1, 1990, and before July 1, 2003,
8(ii) 80% of the selling price of property transferred as an
9incident to the sale of service on or after July 1, 2003 and on
10or before July 1, 2017, and (iii) 100% of the cost price
11thereafter. If, at any time, however, the tax under this Act on
12sales of gasohol, as defined in the Use Tax Act, is imposed at
13the rate of 1.25%, then the tax imposed by this Act applies to
14100% of the proceeds of sales of gasohol made during that time.
15    With respect to majority blended ethanol fuel, as defined
16in the Use Tax Act, the tax imposed by this Act does not apply
17to the selling price of property transferred as an incident to
18the sale of service on or after July 1, 2003 and on or before
19December 31, 2023 but applies to 100% of the selling price
20thereafter.
21    With respect to biodiesel blends, as defined in the Use
22Tax Act, with no less than 1% and no more than 10% biodiesel,
23the tax imposed by this Act applies to (i) 80% of the selling
24price of property transferred as an incident to the sale of
25service on or after July 1, 2003 and on or before December 31,
262018 and (ii) 100% of the proceeds of the selling price after

 

 

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1December 31, 2018 and before January 1, 2024. On and after
2January 1, 2024, the taxation of biodiesel, renewable diesel,
3and biodiesel blends shall be as provided in Section 3-5.1 of
4the Use Tax Act thereafter. If, at any time, however, the tax
5under this Act on sales of biodiesel blends, as defined in the
6Use Tax Act, with no less than 1% and no more than 10%
7biodiesel is imposed at the rate of 1.25%, then the tax imposed
8by this Act applies to 100% of the proceeds of sales of
9biodiesel blends with no less than 1% and no more than 10%
10biodiesel made during that time.
11    With respect to 100% biodiesel, as defined in the Use Tax
12Act, and biodiesel blends, as defined in the Use Tax Act, with
13more than 10% but no more than 99% biodiesel material, the tax
14imposed by this Act does not apply to the proceeds of the
15selling price of property transferred as an incident to the
16sale of service on or after July 1, 2003 and on or before
17December 31, 2023 but applies to 100% of the selling price
18thereafter. On and after January 1, 2024, the taxation of
19biodiesel, renewable diesel, and biodiesel blends shall be as
20provided in Section 3-5.1 of the Use Tax Act.
21    At the election of any registered serviceman made for each
22fiscal year, sales of service in which the aggregate annual
23cost price of tangible personal property transferred as an
24incident to the sales of service is less than 35%, or 75% in
25the case of servicemen transferring prescription drugs or
26servicemen engaged in graphic arts production, of the

 

 

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1aggregate annual total gross receipts from all sales of
2service, the tax imposed by this Act shall be based on the
3serviceman's cost price of the tangible personal property
4transferred incident to the sale of those services.
5    The tax shall be imposed at the rate of 1% on food prepared
6for immediate consumption and transferred incident to a sale
7of service subject to this Act or the Service Occupation Tax
8Act by an entity licensed under the Hospital Licensing Act,
9the Nursing Home Care Act, the Assisted Living and Shared
10Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
11Specialized Mental Health Rehabilitation Act of 2013, or the
12Child Care Act of 1969, or an entity that holds a permit issued
13pursuant to the Life Care Facilities Act. The tax shall also be
14imposed at the rate of 1% on food for human consumption that is
15to be consumed off the premises where it is sold (other than
16alcoholic beverages, food consisting of or infused with adult
17use cannabis, soft drinks, and food that has been prepared for
18immediate consumption and is not otherwise included in this
19paragraph) and prescription and nonprescription medicines,
20drugs, medical appliances, products classified as Class III
21medical devices by the United States Food and Drug
22Administration that are used for cancer treatment pursuant to
23a prescription, as well as any accessories and components
24related to those devices, modifications to a motor vehicle for
25the purpose of rendering it usable by a person with a
26disability, and insulin, blood sugar testing materials,

 

 

SB1146 Engrossed- 20 -LRB102 04948 HLH 14967 b

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

 

 

SB1146 Engrossed- 21 -LRB102 04948 HLH 14967 b

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

 

 

SB1146 Engrossed- 22 -LRB102 04948 HLH 14967 b

1label includes:
2        (A) A "Drug Facts" panel; or
3        (B) A statement of the "active ingredient(s)" with a
4    list of those ingredients contained in the compound,
5    substance or preparation.
6    Beginning on January 1, 2014 (the effective date of Public
7Act 98-122), "prescription and nonprescription medicines and
8drugs" includes medical cannabis purchased from a registered
9dispensing organization under the Compassionate Use of Medical
10Cannabis Program Act.
11    As used in this Section, "adult use cannabis" means
12cannabis subject to tax under the Cannabis Cultivation
13Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
14and does not include cannabis subject to tax under the
15Compassionate Use of Medical Cannabis Program Act.
16(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
17102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
18    Section 20. The Retailers' Occupation Tax Act is amended
19by changing Section 2-10 as follows:
 
20    (35 ILCS 120/2-10)
21    Sec. 2-10. Rate of tax. Unless otherwise provided in this
22Section, the tax imposed by this Act is at the rate of 6.25% of
23gross receipts from sales of tangible personal property made
24in the course of business.

 

 

SB1146 Engrossed- 23 -LRB102 04948 HLH 14967 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
12that is 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
17be printed 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

 

 

SB1146 Engrossed- 24 -LRB102 04948 HLH 14967 b

11, 2003 and on or before July 1, 2017, and (iii) 100% of the
2proceeds of sales made thereafter. If, at any time, however,
3the tax under this Act on sales of gasohol, as defined in the
4Use Tax Act, is imposed at the rate of 1.25%, then the tax
5imposed by this Act applies to 100% of the proceeds of sales of
6gasohol made during that time.
7    With respect to majority blended ethanol fuel, as defined
8in the Use Tax Act, the tax imposed by this Act does not apply
9to the proceeds of sales made on or after July 1, 2003 and on
10or before December 31, 2023 but applies to 100% of the proceeds
11of sales made thereafter.
12    With respect to biodiesel blends, as defined in the Use
13Tax Act, with no less than 1% and no more than 10% biodiesel,
14the tax imposed by this Act applies to (i) 80% of the proceeds
15of sales made on or after July 1, 2003 and on or before
16December 31, 2018 and (ii) 100% of the proceeds of sales made
17after December 31, 2018 and before January 1, 2024. On and
18after January 1, 2024, the taxation of biodiesel, renewable
19diesel, and biodiesel blends shall be as provided in Section
203-5.1 of the Use Tax Act thereafter. If, at any time, however,
21the tax under this Act on sales of biodiesel blends, as defined
22in the Use Tax Act, with no less than 1% and no more than 10%
23biodiesel is imposed at the rate of 1.25%, then the tax imposed
24by this Act applies to 100% of the proceeds of sales of
25biodiesel blends with no less than 1% and no more than 10%
26biodiesel made during that time.

 

 

SB1146 Engrossed- 25 -LRB102 04948 HLH 14967 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. On
7and after January 1, 2024, the taxation of biodiesel,
8renewable diesel, and biodiesel blends shall be as provided in
9Section 3-5.1 of the Use Tax Act.
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, blood sugar testing materials,
22syringes, and needles used by human diabetics, 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,

 

 

SB1146 Engrossed- 26 -LRB102 04948 HLH 14967 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.

 

 

SB1146 Engrossed- 27 -LRB102 04948 HLH 14967 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.

 

 

SB1146 Engrossed- 28 -LRB102 04948 HLH 14967 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(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
12102-4, eff. 4-27-21.)
 
13    Section 25. The Motor Fuel Tax Law is amended by adding
14Section 3d as follows:
 
15    (35 ILCS 505/3d new)
16    Sec. 3d. Right to blend.
17    (a) A distributor who is properly licensed and permitted
18as a blender pursuant to this Act may blend petroleum-based
19diesel fuel with biodiesel and sell the blended or unblended
20product on any premises owned and operated by the distributor
21for the purpose of supporting or facilitating the retail sale
22of motor fuel.
23    (b) A refiner or supplier of petroleum-based diesel fuel
24or biodiesel shall not refuse to sell or transport to a

 

 

SB1146 Engrossed- 29 -LRB102 04948 HLH 14967 b

1distributor who is properly licensed and permitted as a
2blender pursuant to this Act any petroleum-based diesel fuel
3or biodiesel based on the distributor's or dealer's intent to
4use that product for blending.
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.