SB0271 103RD GENERAL ASSEMBLY

  
  

 


 
103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB0271

 

Introduced 1/31/2023, by Sen. Craig Wilcox

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-10
35 ILCS 110/3-10  from Ch. 120, par. 439.33-10
35 ILCS 115/3-10  from Ch. 120, par. 439.103-10
35 ILCS 120/2-10
35 ILCS 120/2d  from Ch. 120, par. 441d

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning 30 days after the effective date of the amendatory Act, the cents per gallon rate established by the Department of Revenue for the prepayment of tax by motor fuel retailers may not exceed $0.18 per gallon for motor fuel and 80% of that amount for gasohol and biodiesel blends. Provides that the rate of tax imposed under the Acts for motor fuel, gasohol, majority blended ethanol fuel, and biodiesel and biodiesel blends may not exceed that prepayment amount set by the Department of Revenue. Effective immediately.


LRB103 25698 HLH 52047 b

 

 

A BILL FOR

 

SB0271LRB103 25698 HLH 52047 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section
53-10 as follows:
 
6    (35 ILCS 105/3-10)
7    Sec. 3-10. Rate of tax. Unless otherwise provided in this
8Section, the tax imposed by this Act is at the rate of 6.25% of
9either the selling price or the fair market value, if any, of
10the tangible personal property. In all cases where property
11functionally used or consumed is the same as the property that
12was purchased at retail, then the tax is imposed on the selling
13price of the property. In all cases where property
14functionally used or consumed is a by-product or waste product
15that has been refined, manufactured, or produced from property
16purchased at retail, then the tax is imposed on the lower of
17the fair market value, if any, of the specific property so used
18in this State or on the selling price of the property purchased
19at retail. For purposes of this Section "fair market value"
20means the price at which property would change hands between a
21willing buyer and a willing seller, neither being under any
22compulsion to buy or sell and both having reasonable knowledge
23of 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 30 days after the effective date of this
10amendatory Act of the 103rd General Assembly, the tax imposed
11under this Act on the following items may not exceed the cents
12per gallon rate established by the Department under subsection
13(e) of Section 2d of the Retailers' Occupation Tax Act: motor
14fuel, as defined in Section 1.1 of the Motor Fuel Tax Law;
15gasohol, as defined in Section 3-40 of this Act; majority
16blended ethanol fuel; and biodiesel and biodiesel blends. With
17respect to the tax imposed on biodiesel blends and gasohol,
18the maximum cents per gallon rate shall include the reduction
19allowed in subsection (e) of Section 2d of the Retailers'
20Occupation Tax Act.
21    Beginning on August 6, 2010 through August 15, 2010, and
22beginning again on August 5, 2022 through August 14, 2022,
23with respect to sales tax holiday items as defined in Section
243-6 of this Act, the tax is imposed at the rate of 1.25%.
25    With respect to gasohol, the tax imposed by this Act
26applies to (i) 70% of the proceeds of sales made on or after

 

 

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1January 1, 1990, and before July 1, 2003, (ii) 80% of the
2proceeds of sales made on or after July 1, 2003 and on or
3before July 1, 2017, and (iii) 100% of the proceeds of sales
4made thereafter. If, at any time, however, the tax under this
5Act on sales of gasohol is imposed at the rate of 1.25%, then
6the tax imposed by this Act applies to 100% of the proceeds of
7sales of gasohol made during that time.
8    With respect to majority blended ethanol fuel, the tax
9imposed by this Act does not apply to the proceeds of sales
10made on or after July 1, 2003 and on or before December 31,
112023 but applies to 100% of the proceeds of sales made
12thereafter.
13    With respect to biodiesel blends with no less than 1% and
14no more than 10% biodiesel, the tax imposed by this Act applies
15to (i) 80% of the proceeds of sales made on or after July 1,
162003 and on or before December 31, 2018 and (ii) 100% of the
17proceeds of sales made after December 31, 2018 and before
18January 1, 2024. On and after January 1, 2024 and on or before
19December 31, 2030, the taxation of biodiesel, renewable
20diesel, and biodiesel blends shall be as provided in Section
213-5.1. If, at any time, however, the tax under this Act on
22sales of biodiesel blends with no less than 1% and no more than
2310% biodiesel is imposed at the rate of 1.25%, then the tax
24imposed by 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.

 

 

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1    With respect to biodiesel and biodiesel blends with more
2than 10% but no more than 99% biodiesel, the tax imposed by
3this Act does not apply to the proceeds of sales made on or
4after July 1, 2003 and on or before December 31, 2023. On and
5after January 1, 2024 and on or before December 31, 2030, the
6taxation of biodiesel, renewable diesel, and biodiesel blends
7shall be as provided in Section 3-5.1.
8    Until July 1, 2022 and beginning again on July 1, 2023,
9with respect to food for human consumption that is to be
10consumed off the premises where it is sold (other than
11alcoholic beverages, food consisting of or infused with adult
12use cannabis, soft drinks, and food that has been prepared for
13immediate consumption), the tax is imposed at the rate of 1%.
14Beginning on July 1, 2022 and until July 1, 2023, with respect
15to food for human consumption that is to be consumed off the
16premises where it is sold (other than alcoholic beverages,
17food consisting of or infused with adult use cannabis, soft
18drinks, and food that has been prepared for immediate
19consumption), the tax is imposed at the rate of 0%.
20    With respect to prescription and nonprescription
21medicines, drugs, medical appliances, products classified as
22Class III medical devices by the United States Food and Drug
23Administration that are used for cancer treatment pursuant to
24a prescription, as well as any accessories and components
25related to those devices, modifications to a motor vehicle for
26the purpose of rendering it usable by a person with a

 

 

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

 

 

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

 

 

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1as required by 21 CFR C.F.R. 201.66. The
2"over-the-counter-drug" label includes:
3        (A) a A "Drug Facts" panel; or
4        (B) a A statement of the "active ingredient(s)" with a
5    list of those ingredients contained in the compound,
6    substance or preparation.
7    Beginning on January 1, 2014 (the effective date of Public
8Act 98-122) this amendatory Act of the 98th General Assembly,
9"prescription and nonprescription medicines and drugs"
10includes medical cannabis purchased from a registered
11dispensing organization under the Compassionate Use of Medical
12Cannabis Program Act.
13    As used in this Section, "adult use cannabis" means
14cannabis subject to tax under the Cannabis Cultivation
15Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
16and does not include cannabis subject to tax under the
17Compassionate Use of Medical Cannabis Program Act.
18    If the property that is purchased at retail from a
19retailer is acquired outside Illinois and used outside
20Illinois before being brought to Illinois for use here and is
21taxable under this Act, the "selling price" on which the tax is
22computed shall be reduced by an amount that represents a
23reasonable allowance for depreciation for the period of prior
24out-of-state use.
25(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
26102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.

 

 

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14-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;
2102-700, Article 65, Section 65-5, eff. 4-19-22; revised
35-27-22.)
 
4    Section 10. The Service Use Tax Act is amended by changing
5Section 3-10 as follows:
 
6    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
7    Sec. 3-10. Rate of tax. Unless otherwise provided in this
8Section, the tax imposed by this Act is at the rate of 6.25% of
9the selling price of tangible personal property transferred as
10an incident to the sale of service, but, for the purpose of
11computing this tax, in no event shall the selling price be less
12than the cost price of the property to the serviceman.
13    Beginning on July 1, 2000 and through December 31, 2000,
14with respect to motor fuel, as defined in Section 1.1 of the
15Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
16the Use Tax Act, the tax is imposed at the rate of 1.25%.
17    Beginning 30 days after the effective date of this
18amendatory Act of the 103rd General Assembly, the tax imposed
19under this Act on the following items may not exceed the cents
20per gallon rate established by the Department under subsection
21(e) of Section 2d of the Retailers' Occupation Tax Act: motor
22fuel, as defined in Section 1.1 of the Motor Fuel Tax Law;
23gasohol, as defined in Section 3-40 of the Use Tax Act;
24majority blended ethanol fuel; and biodiesel and biodiesel

 

 

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1blends. With respect to the tax imposed on biodiesel blends
2and gasohol, the maximum cents per gallon rate shall include
3the reduction allowed in subsection (e) of Section 2d of the
4Retailers' Occupation Tax Act.
5    With respect to gasohol, as defined in the Use Tax Act, the
6tax imposed by this Act applies to (i) 70% of the selling price
7of property transferred as an incident to the sale of service
8on or after January 1, 1990, and before July 1, 2003, (ii) 80%
9of the selling price of property transferred as an incident to
10the sale of service on or after July 1, 2003 and on or before
11July 1, 2017, and (iii) 100% of the selling price thereafter.
12If, at any time, however, the tax under this Act on sales of
13gasohol, as defined in the Use Tax Act, is imposed at the rate
14of 1.25%, then the tax imposed by this Act applies to 100% of
15the proceeds of sales of gasohol made during that time.
16    With respect to majority blended ethanol fuel, as defined
17in the Use Tax Act, the tax imposed by this Act does not apply
18to the selling price of property transferred as an incident to
19the sale of service on or after July 1, 2003 and on or before
20December 31, 2023 but applies to 100% of the selling price
21thereafter.
22    With respect to biodiesel blends, as defined in the Use
23Tax Act, with no less than 1% and no more than 10% biodiesel,
24the tax imposed by this Act applies to (i) 80% of the selling
25price of property transferred as an incident to the sale of
26service on or after July 1, 2003 and on or before December 31,

 

 

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12018 and (ii) 100% of the proceeds of the selling price after
2December 31, 2018 and before January 1, 2024. On and after
3January 1, 2024 and on or before December 31, 2030, the
4taxation of biodiesel, renewable diesel, and biodiesel blends
5shall be as provided in Section 3-5.1 of the Use Tax Act. 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 biodiesel, as defined in the Use Tax Act,
13and biodiesel blends, as defined in the Use Tax Act, with more
14than 10% but no more than 99% biodiesel, the tax imposed by
15this Act does not apply to the proceeds of the selling price of
16property transferred as an incident to the sale of service on
17or after July 1, 2003 and on or before December 31, 2023. On
18and after January 1, 2024 and on or before December 31, 2030,
19the taxation of biodiesel, renewable diesel, and biodiesel
20blends shall be as provided in Section 3-5.1 of the Use Tax
21Act.
22    At the election of any registered serviceman made for each
23fiscal year, sales of service in which the aggregate annual
24cost price of tangible personal property transferred as an
25incident to the sales of service is less than 35%, or 75% in
26the case of servicemen transferring prescription drugs or

 

 

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1servicemen engaged in graphic arts production, of the
2aggregate annual total gross receipts from all sales of
3service, the tax imposed by this Act shall be based on the
4serviceman's cost price of the tangible personal property
5transferred as an incident to the sale of those services.
6    Until July 1, 2022 and beginning again on July 1, 2023, the
7tax shall be imposed at the rate of 1% on food prepared for
8immediate consumption and transferred incident to a sale of
9service subject to this Act or the Service Occupation Tax Act
10by an entity licensed under the Hospital Licensing Act, the
11Nursing Home Care Act, the Assisted Living and Shared Housing
12Act, the ID/DD Community Care Act, the MC/DD Act, the
13Specialized Mental Health Rehabilitation Act of 2013, or the
14Child Care Act of 1969, or an entity that holds a permit issued
15pursuant to the Life Care Facilities Act. Until July 1, 2022
16and beginning again on July 1, 2023, the tax shall also be
17imposed at the rate of 1% on food for human consumption that is
18to be consumed off the premises where it is sold (other than
19alcoholic beverages, food consisting of or infused with adult
20use cannabis, soft drinks, and food that has been prepared for
21immediate consumption and is not otherwise included in this
22paragraph).
23    Beginning on July 1, 2022 and until July 1, 2023, the tax
24shall be imposed at the rate of 0% on food prepared for
25immediate consumption and transferred incident to a sale of
26service subject to this Act or the Service Occupation Tax Act

 

 

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1by an entity licensed under the Hospital Licensing Act, the
2Nursing Home Care Act, the Assisted Living and Shared Housing
3Act, the ID/DD Community Care Act, the MC/DD Act, the
4Specialized Mental Health Rehabilitation Act of 2013, or the
5Child Care Act of 1969, or an entity that holds a permit issued
6pursuant to the Life Care Facilities Act. Beginning on July 1,
72022 and until July 1, 2023, the tax shall also be imposed at
8the rate of 0% on food for human consumption that is to be
9consumed off the premises where it is sold (other than
10alcoholic beverages, food consisting of or infused with adult
11use cannabis, soft drinks, and food that has been prepared for
12immediate consumption and is not otherwise included in this
13paragraph).
14    The tax shall also be imposed at the rate of 1% on
15prescription and nonprescription medicines, drugs, medical
16appliances, products classified as Class III medical devices
17by the United States Food and Drug Administration that are
18used for cancer treatment pursuant to a prescription, as well
19as any accessories and components related to those devices,
20modifications to a motor vehicle for the purpose of rendering
21it usable by a person with a disability, and insulin, blood
22sugar testing materials, syringes, and needles used by human
23diabetics. For the purposes of this Section, until September
241, 2009: the term "soft drinks" means any complete, finished,
25ready-to-use, non-alcoholic drink, whether carbonated or not,
26including, but not limited to, soda water, cola, fruit juice,

 

 

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1vegetable juice, carbonated water, and all other preparations
2commonly known as soft drinks of whatever kind or description
3that are contained in any closed or sealed bottle, can,
4carton, or container, regardless of size; but "soft drinks"
5does not include coffee, tea, non-carbonated water, infant
6formula, milk or milk products as defined in the Grade A
7Pasteurized Milk and Milk Products Act, or drinks containing
850% 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" does do not include beverages that contain milk or
13milk products, soy, rice or similar milk substitutes, or
14greater than 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.

 

 

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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 CFR C.F.R. 201.66. The
22"over-the-counter-drug" label includes:
23        (A) a A "Drug Facts" panel; or
24        (B) a A statement of the "active ingredient(s)" with a
25    list of those ingredients contained in the compound,
26    substance or preparation.

 

 

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1    Beginning on January 1, 2014 (the effective date of Public
2Act 98-122), "prescription and nonprescription medicines and
3drugs" includes medical cannabis purchased from a registered
4dispensing organization under the Compassionate Use of Medical
5Cannabis Program Act.
6    As used in this Section, "adult use cannabis" means
7cannabis subject to tax under the Cannabis Cultivation
8Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
9and does not include cannabis subject to tax under the
10Compassionate Use of Medical Cannabis Program Act.
11    If the property that is acquired from a serviceman is
12acquired 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
17out-of-state use.
18(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
19102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
2020, Section 20-10, eff. 4-19-22; 102-700, Article 60, Section
2160-20, eff. 4-19-22; revised 6-1-22.)
 
22    Section 15. The Service Occupation Tax Act is amended by
23changing Section 3-10 as follows:
 
24    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)

 

 

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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
3the "selling price", as defined in Section 2 of the Service Use
4Tax Act, of the tangible personal property. For the purpose of
5computing this tax, in no event shall the "selling price" be
6less than the cost price to the serviceman of the tangible
7personal property transferred. The selling price of each item
8of tangible personal property transferred as an incident of a
9sale of service may be shown as a distinct and separate item on
10the serviceman's billing to the service customer. If the
11selling price is not so shown, the selling price of the
12tangible personal property is deemed to be 50% of the
13serviceman's entire billing to the service customer. When,
14however, a serviceman contracts to design, develop, and
15produce special order machinery or equipment, the tax imposed
16by this Act shall be based on the serviceman's cost price of
17the tangible personal property transferred incident to the
18completion of the contract.
19    Beginning on July 1, 2000 and through December 31, 2000,
20with respect to motor fuel, as defined in Section 1.1 of the
21Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
22the Use Tax Act, the tax is imposed at the rate of 1.25%.
23    Beginning 30 days after the effective date of this
24amendatory Act of the 103rd General Assembly, the tax imposed
25under this Act on the following items may not exceed the cents
26per gallon rate established by the Department under subsection

 

 

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1(e) of Section 2d of the Retailers' Occupation Tax Act: motor
2fuel, as defined in Section 1.1 of the Motor Fuel Tax Law;
3gasohol, as defined in Section 3-40 of the Use Tax Act;
4majority blended ethanol fuel; and biodiesel and biodiesel
5blends. With respect to the tax imposed on biodiesel blends
6and gasohol, the maximum cents per gallon rate shall include
7the reduction allowed in subsection (e) of Section 2d of the
8Retailers' Occupation Tax Act.
9    With respect to gasohol, as defined in the Use Tax Act, the
10tax imposed by this Act shall apply to (i) 70% of the cost
11price of property transferred as an incident to the sale of
12service on or after January 1, 1990, and before July 1, 2003,
13(ii) 80% of the selling price of property transferred as an
14incident to the sale of service on or after July 1, 2003 and on
15or before July 1, 2017, and (iii) 100% of the cost price
16thereafter. If, at any time, however, the tax under this Act on
17sales of gasohol, as defined in the Use Tax Act, is imposed at
18the rate of 1.25%, then the tax imposed by this Act applies to
19100% of the proceeds of sales of gasohol made during that time.
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, 2023 but applies to 100% of the selling price
25thereafter.
26    With respect to biodiesel blends, as defined in the Use

 

 

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1Tax Act, with no less than 1% and no more than 10% biodiesel,
2the tax imposed by this Act applies to (i) 80% of the selling
3price of property transferred as an incident to the sale of
4service on or after July 1, 2003 and on or before December 31,
52018 and (ii) 100% of the proceeds of the selling price after
6December 31, 2018 and before January 1, 2024. On and after
7January 1, 2024 and on or before December 31, 2030, the
8taxation of biodiesel, renewable diesel, and biodiesel blends
9shall be as provided in Section 3-5.1 of the Use Tax Act. If,
10at any time, however, the tax under this Act on sales of
11biodiesel blends, as defined in the Use Tax Act, with no less
12than 1% and no more than 10% biodiesel is imposed at the rate
13of 1.25%, then the tax imposed by this Act applies to 100% of
14the proceeds of sales of biodiesel blends with no less than 1%
15and no more than 10% biodiesel made during that time.
16    With respect to biodiesel, as defined in the Use Tax Act,
17and biodiesel blends, as defined in the Use Tax Act, with more
18than 10% but no more than 99% biodiesel material, the tax
19imposed by this Act does not apply to the proceeds of the
20selling price of property transferred as an incident to the
21sale of service on or after July 1, 2003 and on or before
22December 31, 2023. On and after January 1, 2024 and on or
23before December 31, 2030, the taxation of biodiesel, renewable
24diesel, and biodiesel blends shall be as provided in Section
253-5.1 of the Use Tax Act.
26    At the election of any registered serviceman made for each

 

 

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1fiscal year, sales of service in which the aggregate annual
2cost price of tangible personal property transferred as an
3incident to the sales of service is less than 35%, or 75% in
4the case of servicemen transferring prescription drugs or
5servicemen engaged in graphic arts production, of the
6aggregate annual total gross receipts from all sales of
7service, the tax imposed by this Act shall be based on the
8serviceman's cost price of the tangible personal property
9transferred incident to the sale of those services.
10    Until July 1, 2022 and beginning again on July 1, 2023, the
11tax shall be imposed at the rate of 1% on food prepared for
12immediate consumption and transferred incident to a sale of
13service subject to this Act or the Service Use Tax Act by an
14entity licensed under the Hospital Licensing Act, the Nursing
15Home Care Act, the Assisted Living and Shared Housing Act, the
16ID/DD Community Care Act, the MC/DD Act, the Specialized
17Mental Health Rehabilitation Act of 2013, or the Child Care
18Act of 1969, or an entity that holds a permit issued pursuant
19to the Life Care Facilities Act. Until July 1, 2022 and
20beginning again on July 1, 2023, the tax shall also be imposed
21at the rate of 1% on food for human consumption that is to be
22consumed off the premises where it is sold (other than
23alcoholic beverages, food consisting of or infused with adult
24use cannabis, soft drinks, and food that has been prepared for
25immediate consumption and is not otherwise included in this
26paragraph).

 

 

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1    Beginning on July 1, 2022 and until July 1, 2023, the tax
2shall be imposed at the rate of 0% on food prepared for
3immediate consumption and transferred incident to a sale of
4service subject to this Act or the Service Use Tax Act by an
5entity licensed under the Hospital Licensing Act, the Nursing
6Home Care Act, the Assisted Living and Shared Housing Act, the
7ID/DD Community Care Act, the MC/DD Act, the Specialized
8Mental Health Rehabilitation Act of 2013, or the Child Care
9Act of 1969, or an entity that holds a permit issued pursuant
10to the Life Care Facilities Act. Beginning July 1, 2022 and
11until July 1, 2023, the tax shall also be imposed at the rate
12of 0% on food for human consumption that is to be consumed off
13the premises where it is sold (other than alcoholic beverages,
14food consisting of or infused with adult use cannabis, soft
15drinks, and food that has been prepared for immediate
16consumption and is not otherwise included in this paragraph).
17    The tax shall also be imposed at the rate of 1% on
18prescription and nonprescription medicines, drugs, medical
19appliances, products classified as Class III medical devices
20by the United States Food and Drug Administration that are
21used for cancer treatment pursuant to a prescription, as well
22as any accessories and components related to those devices,
23modifications to a motor vehicle for the purpose of rendering
24it usable by a person with a disability, and insulin, blood
25sugar testing materials, syringes, and needles used by human
26diabetics. For the purposes of this Section, until September

 

 

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

 

 

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

 

 

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1        (B) a A statement of the "active ingredient(s)" with a
2    list of those ingredients contained in the compound,
3    substance or preparation.
4    Beginning on January 1, 2014 (the effective date of Public
5Act 98-122), "prescription and nonprescription medicines and
6drugs" includes medical cannabis purchased from a registered
7dispensing organization under the Compassionate Use of Medical
8Cannabis Program Act.
9    As used in this Section, "adult use cannabis" means
10cannabis subject to tax under the Cannabis Cultivation
11Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
12and does not include cannabis subject to tax under the
13Compassionate Use of Medical Cannabis Program Act.
14(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
15102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
1620, Section 20-15, eff. 4-19-22; 102-700, Article 60, Section
1760-25, eff. 4-19-22; revised 6-1-22.)
 
18    Section 20. The Retailers' Occupation Tax Act is amended
19by changing Sections 2-10 and 2d 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.

 

 

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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 30 days after the effective date of this
6amendatory Act of the 103rd General Assembly, the tax imposed
7under this Act on the following items may not exceed the cents
8per gallon rate established by the Department under subsection
9(e) of Section 2d of this Act: motor fuel, as defined in
10Section 1.1 of the Motor Fuel Tax Law; gasohol, as defined in
11Section 3-40 of the Use Tax Act; majority blended ethanol
12fuel; and biodiesel and biodiesel blends. With respect to the
13tax imposed on biodiesel blends and gasohol, the maximum cents
14per gallon rate shall include the reduction allowed in
15subsection (e) of Section 2d.
16    Beginning on August 6, 2010 through August 15, 2010, and
17beginning again on August 5, 2022 through August 14, 2022,
18with respect to sales tax holiday items as defined in Section
192-8 of this Act, the tax is imposed at the rate of 1.25%.
20    Within 14 days after July 1, 2000 (the effective date of
21Public Act 91-872) this amendatory Act of the 91st General
22Assembly, each retailer of motor fuel and gasohol shall cause
23the following notice to be posted in a prominently visible
24place on each retail dispensing device that is used to
25dispense motor fuel or gasohol in the State of Illinois: "As of
26July 1, 2000, the State of Illinois has eliminated the State's

 

 

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1share of sales tax on motor fuel and gasohol through December
231, 2000. The price on this pump should reflect the
3elimination of the tax." The notice shall be printed in bold
4print on a sign that is no smaller than 4 inches by 8 inches.
5The sign shall be clearly visible to customers. Any retailer
6who fails to post or maintain a required sign through December
731, 2000 is guilty of a petty offense for which the fine shall
8be $500 per day per each retail premises where a violation
9occurs.
10    With respect to gasohol, as defined in the Use Tax Act, the
11tax imposed by this Act applies to (i) 70% of the proceeds of
12sales made on or after January 1, 1990, and before July 1,
132003, (ii) 80% of the proceeds of sales made on or after July
141, 2003 and on or before July 1, 2017, and (iii) 100% of the
15proceeds of sales made thereafter. If, at any time, however,
16the tax under this Act on sales of gasohol, as defined in the
17Use Tax Act, is imposed at the rate of 1.25%, then the tax
18imposed by this Act applies to 100% of the proceeds of sales of
19gasohol made during that time.
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 proceeds of sales made on or after July 1, 2003 and on
23or before December 31, 2023 but applies to 100% of the proceeds
24of sales made thereafter.
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 proceeds
2of sales made on or after July 1, 2003 and on or before
3December 31, 2018 and (ii) 100% of the proceeds of sales made
4after December 31, 2018 and before January 1, 2024. On and
5after January 1, 2024 and on or before December 31, 2030, the
6taxation of biodiesel, renewable diesel, and biodiesel blends
7shall be as provided in Section 3-5.1 of the Use Tax Act. If,
8at any time, however, the tax under this Act on sales of
9biodiesel blends, as defined in the Use Tax Act, with no less
10than 1% and no more than 10% biodiesel is imposed at the rate
11of 1.25%, then the tax imposed by this Act applies to 100% of
12the proceeds of sales of biodiesel blends with no less than 1%
13and no more than 10% biodiesel made during that time.
14    With respect to biodiesel, as defined in the Use Tax Act,
15and biodiesel blends, as defined in the Use Tax Act, with more
16than 10% but no more than 99% biodiesel, the tax imposed by
17this Act does not apply to the proceeds of sales made on or
18after July 1, 2003 and on or before December 31, 2023. On and
19after January 1, 2024 and on or before December 31, 2030, the
20taxation of biodiesel, renewable diesel, and biodiesel blends
21shall be as provided in Section 3-5.1 of the Use Tax Act.
22    Until July 1, 2022 and beginning again on July 1, 2023,
23with respect to food for human consumption that is to be
24consumed off the premises where it is sold (other than
25alcoholic beverages, food consisting of or infused with adult
26use cannabis, soft drinks, and food that has been prepared for

 

 

SB0271- 27 -LRB103 25698 HLH 52047 b

1immediate consumption), the tax is imposed at the rate of 1%.
2Beginning July 1, 2022 and until July 1, 2023, with respect to
3food for human consumption that is to be consumed off the
4premises where it is sold (other than alcoholic beverages,
5food consisting of or infused with adult use cannabis, soft
6drinks, and food that has been prepared for immediate
7consumption), the tax is imposed at the rate of 0%.
8    With respect to prescription and nonprescription
9medicines, drugs, medical appliances, products classified as
10Class III medical devices by the United States Food and Drug
11Administration that are used for cancer treatment pursuant to
12a prescription, as well as any accessories and components
13related to those devices, modifications to a motor vehicle for
14the purpose of rendering it usable by a person with a
15disability, and insulin, blood sugar testing materials,
16syringes, and needles used by human diabetics, the tax is
17imposed at the rate of 1%. For the purposes of this Section,
18until September 1, 2009: the term "soft drinks" means any
19complete, finished, ready-to-use, non-alcoholic drink, whether
20carbonated or not, including, but not limited to, soda water,
21cola, fruit juice, vegetable juice, carbonated water, and all
22other preparations commonly known as soft drinks of whatever
23kind or description that are contained in any closed or sealed
24bottle, can, carton, or container, regardless of size; but
25"soft drinks" does not include coffee, tea, non-carbonated
26water, infant formula, milk or milk products as defined in the

 

 

SB0271- 28 -LRB103 25698 HLH 52047 b

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

 

 

SB0271- 29 -LRB103 25698 HLH 52047 b

1other ingredients or flavorings in the form of bars, drops, or
2pieces. "Candy" does not include any preparation that contains
3flour or requires refrigeration.
4    Notwithstanding any other provisions of this Act,
5beginning September 1, 2009, "nonprescription medicines and
6drugs" does not include grooming and hygiene products. For
7purposes of this Section, "grooming and hygiene products"
8includes, but is not limited to, soaps and cleaning solutions,
9shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
10lotions and screens, unless those products are available by
11prescription only, regardless of whether the products meet the
12definition of "over-the-counter-drugs". For the purposes of
13this paragraph, "over-the-counter-drug" means a drug for human
14use that contains a label that identifies the product as a drug
15as required by 21 CFR C.F.R. 201.66. The
16"over-the-counter-drug" label includes:
17        (A) a A "Drug Facts" panel; or
18        (B) a A statement of the "active ingredient(s)" with a
19    list of those ingredients contained in the compound,
20    substance or preparation.
21    Beginning on January 1, 2014 (the effective date of Public
22Act 98-122) this amendatory Act of the 98th General Assembly,
23"prescription and nonprescription medicines and drugs"
24includes medical cannabis purchased from a registered
25dispensing organization under the Compassionate Use of Medical
26Cannabis Program Act.

 

 

SB0271- 30 -LRB103 25698 HLH 52047 b

1    As used in this Section, "adult use cannabis" means
2cannabis subject to tax under the Cannabis Cultivation
3Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
4and does not include cannabis subject to tax under the
5Compassionate Use of Medical Cannabis Program Act.
6(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
7102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff.
84-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22;
9102-700, Article 65, Section 65-10, eff. 4-19-22; revised
106-1-22.)
 
11    (35 ILCS 120/2d)  (from Ch. 120, par. 441d)
12    Sec. 2d. Tax prepayment by motor fuel retailer.
13    (a) Any person engaged in the business of selling motor
14fuel at retail, as defined in the Motor Fuel Tax Law, and who
15is not a licensed distributor or supplier, as defined in the
16Motor Fuel Tax Law, shall prepay to his or her distributor,
17supplier, or other reseller of motor fuel a portion of the tax
18imposed by this Act if the distributor, supplier, or other
19reseller of motor fuel is registered under Section 2a or
20Section 2c of this Act. The prepayment requirement provided
21for in this Section does not apply to liquid propane gas.
22    (b) Beginning on July 1, 2000 and through December 31,
232000, the Retailers' Occupation Tax paid to the distributor,
24supplier, or other reseller shall be an amount equal to $0.01
25per gallon of the motor fuel, except gasohol as defined in

 

 

SB0271- 31 -LRB103 25698 HLH 52047 b

1Section 2-10 of this Act which shall be an amount equal to
2$0.01 per gallon, purchased from the distributor, supplier, or
3other reseller.
4    (c) Before July 1, 2000 and then beginning on January 1,
52001 and through June 30, 2003, the Retailers' Occupation Tax
6paid to the distributor, supplier, or other reseller shall be
7an amount equal to $0.04 per gallon of the motor fuel, except
8gasohol as defined in Section 2-10 of this Act which shall be
9an amount equal to $0.03 per gallon, purchased from the
10distributor, supplier, or other reseller.
11    (d) Beginning July 1, 2003 and through December 31, 2010,
12the Retailers' Occupation Tax paid to the distributor,
13supplier, or other reseller shall be an amount equal to $0.06
14per gallon of the motor fuel, except gasohol as defined in
15Section 2-10 of this Act which shall be an amount equal to
16$0.05 per gallon, purchased from the distributor, supplier, or
17other reseller.
18    (e) Beginning on January 1, 2011 and thereafter, the
19Retailers' Occupation Tax paid to the distributor, supplier,
20or other reseller shall be at the rate established by the
21Department under this subsection. The rate shall be
22established by the Department on January 1 and July 1 of each
23year using the average selling price, as defined in Section 1
24of this Act, per gallon of motor fuel sold in the State during
25the previous 6 months and multiplying that amount by 6.25% to
26determine the cents per gallon rate. Beginning 30 days after

 

 

SB0271- 32 -LRB103 25698 HLH 52047 b

1the effective date of this amendatory Act of the 103rd General
2Assembly, the cents per gallon rate established by the
3Department for motor fuel under this subsection may not exceed
4$0.18 per gallon. In the case of biodiesel blends, as defined
5in Section 3-42 of the Use Tax Act, with no less than 1% and no
6more than 10% biodiesel, and in the case of gasohol, as defined
7in Section 3-40 of the Use Tax Act, the rate shall be 80% of
8the rate established by the Department under this subsection
9for motor fuel. The Department shall provide persons subject
10to this Section notice of the rate established under this
11subsection at least 20 days prior to each January 1 and July 1.
12The Department shall provide persons subject to this Section
13notice of the rate change required by this amendatory Act of
14the 103rd General Assembly at least 20 days prior to the date
15on which that change takes effect. Publication of the
16established rate on the Department's internet website shall
17constitute sufficient notice under this Section. The
18Department may use data derived from independent surveys
19conducted or accumulated by third parties to determine the
20average selling price per gallon of motor fuel sold in the
21State.
22    (f) Any person engaged in the business of selling motor
23fuel at retail shall be entitled to a credit against tax due
24under this Act in an amount equal to the tax paid to the
25distributor, supplier, or other reseller.
26    (g) Every distributor, supplier, or other reseller

 

 

SB0271- 33 -LRB103 25698 HLH 52047 b

1registered as provided in Section 2a or Section 2c of this Act
2shall remit the prepaid tax on all motor fuel that is due from
3any person engaged in the business of selling at retail motor
4fuel with the returns filed under Section 2f or Section 3 of
5this Act, but the vendors discount provided in Section 3 shall
6not apply to the amount of prepaid tax that is remitted. Any
7distributor or supplier who fails to properly collect and
8remit the tax shall be liable for the tax. For purposes of this
9Section, the prepaid tax is due on invoiced gallons sold
10during a month by the 20th day of the following month.
11(Source: P.A. 96-1384, eff. 7-29-10.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.