Illinois Compiled Statutes
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235 ILCS 5/8-1
(235 ILCS 5/8-1)
A tax is imposed upon the privilege of engaging in business as a
manufacturer or as an importing distributor of alcoholic liquor other than beer
at the rate of $0.185 per gallon until September 1, 2009 and $0.231 per gallon beginning September 1, 2009 for cider containing not less than
0.5% alcohol by volume nor more than 7% alcohol by volume, $0.73
per gallon until September 1, 2009 and $1.39 per gallon beginning September 1, 2009 for wine other than
cider containing less than 7% alcohol by volume, and $4.50
per gallon until September 1, 2009 and $8.55 per gallon beginning September 1, 2009 on alcohol and spirits manufactured and sold or used by such
manufacturer, or as agent for any other person, or sold or used by such
importing distributor, or as agent for any other person. A tax is imposed
upon the privilege of engaging in business as a manufacturer of beer or as an
importing distributor of beer at the rate of $0.185 per gallon until September 1, 2009 and $0.231 per gallon beginning September 1, 2009 on
all beer, regardless of alcohol by volume, manufactured and sold or used by such manufacturer, or as agent for
any other person, or sold or used by such importing distributor, or as agent
for any other person. Any brewer manufacturing beer in this State shall be
entitled to and given a credit or refund of 75% of the tax imposed on each
gallon of beer up to 4.9 million gallons per year in any given calendar year
for tax paid or payable on beer produced and sold in the State of Illinois.
For purposes of this Section, "beer" means beer, ale, porter, stout, and other similar fermented beverages of any name or description containing one-half of one percent or more of alcohol by volume, brewed or produced from malt, wholly or in part, or from any substitute for malt.
For the purpose of this Section, "cider" means any alcoholic beverage
obtained by the alcohol fermentation of the juice of apples or pears
including, but not limited to, flavored, sparkling, or carbonated cider.
The credit or refund created by this Act shall apply to all beer taxes
in the calendar years 1982 through 1986.
The increases made by this amendatory Act of the 91st General Assembly in
the rates of taxes imposed under this Section shall apply beginning on July
A tax at the rate of 1¢ per gallon on beer and 48¢ per gallon on
alcohol and spirits is also imposed upon the privilege of engaging in
business as a retailer or as a distributor who is not also an importing
distributor with respect to all beer and all alcohol and spirits owned
or possessed by such retailer or distributor when this amendatory Act of
1969 becomes effective, and with respect to which the additional tax
imposed by this amendatory Act upon manufacturers and importing
distributors does not apply. Retailers and distributors who are subject
to the additional tax imposed by this paragraph of this Section shall be
required to inventory such alcoholic liquor and to pay this additional
tax in a manner prescribed by the Department.
The provisions of this Section shall be construed to apply to any
importing distributor engaging in business in this State, whether
licensed or not.
However, such tax is not imposed upon any such business as to any
alcoholic liquor shipped outside Illinois by an Illinois licensed
manufacturer or importing distributor, nor as to any alcoholic liquor
delivered in Illinois by an Illinois licensed manufacturer or importing
distributor to a purchaser for immediate transportation by the purchaser
to another state into which the purchaser has a legal right, under the
laws of such state, to import such alcoholic liquor, nor as to any
alcoholic liquor other than beer sold by one Illinois licensed
manufacturer or importing distributor to another Illinois licensed
manufacturer or importing distributor to the extent to which the sale of
alcoholic liquor other than beer by one Illinois licensed manufacturer
or importing distributor to another Illinois licensed manufacturer or
importing distributor is authorized by the licensing provisions of this
Act, nor to alcoholic liquor whether manufactured in or imported into
this State when sold to a "non-beverage user" licensed by the State for
use in the manufacture of any of the following when they are unfit for
Patent and proprietary medicines and medicinal, antiseptic, culinary
and toilet preparations;
Flavoring extracts and syrups and food products;
Scientific, industrial and chemical products, excepting denatured
Or for scientific, chemical, experimental or mechanical purposes;
Nor is the tax imposed upon the privilege of engaging in any business
in interstate commerce or otherwise, which business may not, under the
Constitution and Statutes of the United States, be made the subject of
taxation by this State.
The tax herein imposed shall be in addition to all other occupation
or privilege taxes imposed by the State of Illinois or political
If any alcoholic liquor manufactured in or imported into this State
is sold to a licensed manufacturer or importing distributor by a
licensed manufacturer or importing distributor to be used solely as an
ingredient in the manufacture of any beverage for human consumption, the
tax imposed upon such purchasing manufacturer or importing distributor
shall be reduced by the amount of the taxes which have been paid by the
selling manufacturer or importing distributor under this Act as to such
alcoholic liquor so used to the Department of Revenue.
If any person received any alcoholic liquors from a manufacturer or
importing distributor, with respect to which alcoholic liquors no tax is
imposed under this Article, and such alcoholic liquor shall thereafter
be disposed of in such manner or under such circumstances as may cause
the same to become the base for the tax imposed by this Article, such
person shall make the same reports and returns, pay the same taxes and
be subject to all other provisions of this Article relating to
manufacturers and importing distributors.
Nothing in this Article shall be construed to require the payment to
the Department of the taxes imposed by this Article more than once with
respect to any quantity of alcoholic liquor sold or used within this
No tax is imposed by this Act on sales of alcoholic liquor by
Illinois licensed foreign importers to Illinois licensed importing
All of the proceeds of the additional tax imposed by Public Act 96-34 shall be deposited by the Department into the Capital Projects Fund. The remainder of the tax imposed by this Act shall be deposited by the Department into the General Revenue Fund.
A manufacturer of beer that imports or transfers beer into this State must comply with the provisions of this Section with regard to the beer imported into this State.
The provisions of this Section 8-1 are severable under Section 1.31 of the Statute on Statutes.
(Source: P.A. 100-885, eff. 8-14-18; 101-16, eff. 6-14-19.)