102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0316

 

Introduced 1/29/2021, by Rep. Joyce Mason

 

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

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on January 1, 2022, the tax on gun safes and locks designed to secure firearms is imposed at the rate of 1%. Effective immediately.


LRB102 03906 HLH 13921 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0316LRB102 03906 HLH 13921 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 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 thereafter. If, at any time, however,
5the tax under this Act on sales of biodiesel blends with no
6less than 1% and no more than 10% biodiesel is imposed at the
7rate of 1.25%, then the tax imposed by this Act applies to 100%
8of the proceeds of sales of biodiesel blends with no less than
91% and no more than 10% biodiesel made during that time.
10    With respect to 100% biodiesel and biodiesel blends with
11more than 10% but no more than 99% biodiesel, the tax imposed
12by this Act does not apply to the proceeds of sales made on or
13after July 1, 2003 and on or before December 31, 2023 but
14applies to 100% of the proceeds of sales made thereafter.
15    With respect to gun safes and locks designed to secure
16firearms, beginning on January 1, 2022, the tax is imposed at
17the rate of 1%.
18    With respect to food for human consumption that is to be
19consumed 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 prescription and nonprescription
23medicines, drugs, medical appliances, products classified as
24Class III medical devices by the United States Food and Drug
25Administration that are used for cancer treatment pursuant to
26a prescription, as well as any accessories and components

 

 

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

 

 

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

 

 

HB0316- 6 -LRB102 03906 HLH 13921 b

1this paragraph, "over-the-counter-drug" means a drug for human
2use that contains a label that identifies the product as a drug
3as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
4label includes:
5        (A) A "Drug Facts" panel; or
6        (B) A statement of the "active ingredient(s)" with a
7    list of those ingredients contained in the compound,
8    substance or preparation.
9    Beginning on the effective date of this amendatory Act of
10the 98th General Assembly, "prescription and nonprescription
11medicines and drugs" includes medical cannabis purchased from
12a registered dispensing organization under the Compassionate
13Use of Medical Cannabis Program Act.
14    As used in this Section, "adult use cannabis" means
15cannabis subject to tax under the Cannabis Cultivation
16Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
17and does not include cannabis subject to tax under the
18Compassionate Use of Medical Cannabis Program Act.
19    If the property that is purchased at retail from a
20retailer is acquired outside Illinois and used outside
21Illinois before being brought to Illinois for use here and is
22taxable under this Act, the "selling price" on which the tax is
23computed shall be reduced by an amount that represents a
24reasonable allowance for depreciation for the period of prior
25out-of-state use.
26(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;

 

 

HB0316- 7 -LRB102 03906 HLH 13921 b

1101-593, eff. 12-4-19.)
 
2    Section 10. The Service Use Tax Act is amended by changing
3Section 3-10 as follows:
 
4    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
5    Sec. 3-10. Rate of tax. Unless otherwise provided in this
6Section, the tax imposed by this Act is at the rate of 6.25% of
7the selling price of tangible personal property transferred as
8an incident to the sale of service, but, for the purpose of
9computing this tax, in no event shall the selling price be less
10than the cost price of the property to the serviceman.
11    Beginning on July 1, 2000 and through December 31, 2000,
12with respect to motor fuel, as defined in Section 1.1 of the
13Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
14the Use Tax Act, the tax is imposed at the rate of 1.25%.
15    With respect to gasohol, as defined in the Use Tax Act, the
16tax imposed by this Act applies to (i) 70% of the selling price
17of property transferred as an incident to the sale of service
18on or after January 1, 1990, and before July 1, 2003, (ii) 80%
19of the selling price of property transferred as an incident to
20the sale of service on or after July 1, 2003 and on or before
21July 1, 2017, and (iii) 100% of the selling price thereafter.
22If, at any time, however, the tax under this Act on sales of
23gasohol, as defined in the Use Tax Act, is imposed at the rate
24of 1.25%, then the tax imposed by this Act applies to 100% of

 

 

HB0316- 8 -LRB102 03906 HLH 13921 b

1the proceeds of sales of gasohol made during that time.
2    With respect to majority blended ethanol fuel, as defined
3in the Use Tax Act, the tax imposed by this Act does not apply
4to the selling price of property transferred as an incident to
5the sale of service on or after July 1, 2003 and on or before
6December 31, 2023 but applies to 100% of the selling price
7thereafter.
8    With respect to biodiesel blends, as defined in the Use
9Tax Act, with no less than 1% and no more than 10% biodiesel,
10the tax imposed by this Act applies to (i) 80% of the selling
11price of property transferred as an incident to the sale of
12service on or after July 1, 2003 and on or before December 31,
132018 and (ii) 100% of the proceeds of the selling price
14thereafter. If, at any time, however, the tax under this Act on
15sales of biodiesel blends, as defined in the Use Tax Act, with
16no less than 1% and no more than 10% biodiesel is imposed at
17the rate of 1.25%, then the tax imposed by this Act applies to
18100% of the proceeds of sales of biodiesel blends with no less
19than 1% and no more than 10% biodiesel made during that time.
20    With respect to 100% biodiesel, as defined in the Use Tax
21Act, and biodiesel blends, as defined in the Use Tax Act, with
22more than 10% but no more than 99% biodiesel, the tax imposed
23by this Act does not apply to the proceeds of the selling price
24of property transferred as an incident to the sale of service
25on or after July 1, 2003 and on or before December 31, 2023 but
26applies to 100% of the selling price thereafter.

 

 

HB0316- 9 -LRB102 03906 HLH 13921 b

1    At the election of any registered serviceman made for each
2fiscal year, sales of service in which the aggregate annual
3cost price of tangible personal property transferred as an
4incident to the sales of service is less than 35%, or 75% in
5the case of servicemen transferring prescription drugs or
6servicemen engaged in graphic arts production, of the
7aggregate annual total gross receipts from all sales of
8service, the tax imposed by this Act shall be based on the
9serviceman's cost price of the tangible personal property
10transferred as an incident to the sale of those services.
11    With respect to gun safes and locks designed to secure
12firearms, beginning on January 1, 2022, the tax is imposed at
13the rate of 1%.
14    The tax shall be imposed at the rate of 1% on food prepared
15for immediate consumption and transferred incident to a sale
16of service subject to this Act or the Service Occupation Tax
17Act by an entity licensed under the Hospital Licensing Act,
18the Nursing Home Care Act, the ID/DD Community Care Act, the
19MC/DD Act, the Specialized Mental Health Rehabilitation Act of
202013, or the Child Care Act of 1969. The tax shall also be
21imposed at the rate of 1% on food for human consumption that is
22to be consumed 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) and prescription and nonprescription medicines,

 

 

HB0316- 10 -LRB102 03906 HLH 13921 b

1drugs, medical appliances, products classified as Class III
2medical 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, urine testing materials, syringes,
8and needles used by diabetics, for human use. For the purposes
9of this Section, until September 1, 2009: the term "soft
10drinks" means any complete, finished, ready-to-use,
11non-alcoholic drink, whether carbonated or not, including but
12not limited to soda water, cola, fruit juice, vegetable juice,
13carbonated water, and all other preparations commonly known as
14soft drinks of whatever kind or description that are contained
15in any closed or sealed bottle, can, carton, or container,
16regardless of size; but "soft drinks" does not include coffee,
17tea, non-carbonated water, infant formula, milk or milk
18products as defined in the Grade A Pasteurized Milk and Milk
19Products Act, or drinks containing 50% or more natural fruit
20or 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.

 

 

HB0316- 11 -LRB102 03906 HLH 13921 b

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,

 

 

HB0316- 12 -LRB102 03906 HLH 13921 b

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 January 1, 2014 (the effective date of Public
14Act 98-122), "prescription and nonprescription medicines and
15drugs" includes medical cannabis purchased from a registered
16dispensing organization under the Compassionate Use of Medical
17Cannabis 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 acquired from a serviceman is
24acquired outside Illinois and used outside Illinois before
25being brought to Illinois for use here and is taxable under
26this Act, the "selling price" on which the tax is computed

 

 

HB0316- 13 -LRB102 03906 HLH 13921 b

1shall be reduced by an amount that represents a reasonable
2allowance for depreciation for the period of prior
3out-of-state use.
4(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
5101-593, eff. 12-4-19.)
 
6    Section 15. The Service Occupation Tax Act is amended by
7changing Section 3-10 as follows:
 
8    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
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
11the "selling price", as defined in Section 2 of the Service Use
12Tax Act, of the tangible personal property. For the purpose of
13computing this tax, in no event shall the "selling price" be
14less than the cost price to the serviceman of the tangible
15personal property transferred. The selling price of each item
16of tangible personal property transferred as an incident of a
17sale of service may be shown as a distinct and separate item on
18the serviceman's billing to the service customer. If the
19selling price is not so shown, the selling price of the
20tangible personal property is deemed to be 50% of the
21serviceman's entire billing to the service customer. When,
22however, a serviceman contracts to design, develop, and
23produce special order machinery or equipment, the tax imposed
24by this Act shall be based on the serviceman's cost price of

 

 

HB0316- 14 -LRB102 03906 HLH 13921 b

1the tangible personal property transferred incident to the
2completion of the contract.
3    Beginning on July 1, 2000 and through December 31, 2000,
4with respect to motor fuel, as defined in Section 1.1 of the
5Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
6the Use Tax Act, the tax is imposed at the rate of 1.25%.
7    With respect to gasohol, as defined in the Use Tax Act, the
8tax imposed by this Act shall apply to (i) 70% of the cost
9price of property transferred as an incident to the sale of
10service on or after January 1, 1990, and before July 1, 2003,
11(ii) 80% of the selling price of property transferred as an
12incident to the sale of service on or after July 1, 2003 and on
13or before July 1, 2017, and (iii) 100% of the cost price
14thereafter. If, at any time, however, the tax under this Act on
15sales of gasohol, as defined in the Use Tax Act, is imposed at
16the rate of 1.25%, then the tax imposed by this Act applies to
17100% of the proceeds of sales of gasohol made during that time.
18    With respect to majority blended ethanol fuel, as defined
19in the Use Tax Act, the tax imposed by this Act does not apply
20to the selling price of property transferred as an incident to
21the sale of service on or after July 1, 2003 and on or before
22December 31, 2023 but applies to 100% of the selling price
23thereafter.
24    With respect to gun safes and locks designed to secure
25firearms, beginning on January 1, 2022, the tax is imposed at
26the rate of 1%.

 

 

HB0316- 15 -LRB102 03906 HLH 13921 b

1    With respect to biodiesel blends, as defined in the Use
2Tax Act, with no less than 1% and no more than 10% biodiesel,
3the tax imposed by this Act applies to (i) 80% of the selling
4price of property transferred as an incident to the sale of
5service on or after July 1, 2003 and on or before December 31,
62018 and (ii) 100% of the proceeds of the selling price
7thereafter. If, at any time, however, the tax under this Act on
8sales of biodiesel blends, as defined in the Use Tax Act, with
9no less than 1% and no more than 10% biodiesel is imposed at
10the rate of 1.25%, then the tax imposed by this Act applies to
11100% of the proceeds of sales of biodiesel blends with no less
12than 1% and no more than 10% biodiesel made during that time.
13    With respect to 100% biodiesel, as defined in the Use Tax
14Act, and biodiesel blends, as defined in the Use Tax Act, with
15more than 10% but no more than 99% biodiesel material, the tax
16imposed by this Act does not apply to the proceeds of the
17selling price of property transferred as an incident to the
18sale 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    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

 

 

HB0316- 16 -LRB102 03906 HLH 13921 b

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 ID/DD Community Care Act, the
10MC/DD Act, the Specialized Mental Health Rehabilitation Act of
112013, or the Child Care Act of 1969. The tax shall also be
12imposed at the rate of 1% on food for human consumption that is
13to be consumed off the premises where it is sold (other than
14alcoholic beverages, food consisting of or infused with adult
15use cannabis, soft drinks, and food that has been prepared for
16immediate consumption and is not otherwise included in this
17paragraph) and prescription and nonprescription medicines,
18drugs, medical appliances, products classified as Class III
19medical devices by the United States Food and Drug
20Administration that are used for cancer treatment pursuant to
21a prescription, as well as any accessories and components
22related to those devices, modifications to a motor vehicle for
23the purpose of rendering it usable by a person with a
24disability, and insulin, urine testing materials, syringes,
25and needles used by diabetics, for human use. For the purposes
26of this Section, until September 1, 2009: the term "soft

 

 

HB0316- 17 -LRB102 03906 HLH 13921 b

1drinks" means any complete, finished, ready-to-use,
2non-alcoholic drink, whether carbonated or not, including but
3not limited to soda water, cola, fruit juice, vegetable juice,
4carbonated water, and all other preparations commonly known as
5soft drinks of whatever kind or description that are contained
6in any closed or sealed can, carton, or container, regardless
7of size; but "soft drinks" does not include coffee, tea,
8non-carbonated water, infant formula, milk or milk products as
9defined in the Grade A Pasteurized Milk and Milk Products Act,
10or drinks containing 50% or more natural fruit or vegetable
11juice.
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" do not include beverages that contain milk or milk
16products, soy, rice or similar milk substitutes, or greater
17than 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

 

 

HB0316- 18 -LRB102 03906 HLH 13921 b

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 C.F.R. § 201.66. The "over-the-counter-drug"
25label includes:
26        (A) A "Drug Facts" panel; or

 

 

HB0316- 19 -LRB102 03906 HLH 13921 b

1        (B) 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. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
15101-593, eff. 12-4-19.)
 
16    Section 20. The Retailers' Occupation Tax Act is amended
17by changing Section 2-10 as follows:
 
18    (35 ILCS 120/2-10)
19    Sec. 2-10. Rate of tax. Unless otherwise provided in this
20Section, the tax imposed by this Act is at the rate of 6.25% of
21gross receipts from sales of tangible personal property made
22in the course of business.
23    Beginning on July 1, 2000 and through December 31, 2000,
24with respect to motor fuel, as defined in Section 1.1 of the

 

 

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1Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
2the Use Tax Act, the tax is imposed at the rate of 1.25%.
3    Beginning on August 6, 2010 through August 15, 2010, with
4respect to sales tax holiday items as defined in Section 2-8 of
5this Act, the tax is imposed at the rate of 1.25%.
6    Within 14 days after the effective date of this amendatory
7Act of the 91st General Assembly, each retailer of motor fuel
8and gasohol shall cause the following notice to be posted in a
9prominently visible place on each retail dispensing device
10that is used to dispense motor fuel or gasohol in the State of
11Illinois: "As of July 1, 2000, the State of Illinois has
12eliminated the State's share of sales tax on motor fuel and
13gasohol through December 31, 2000. The price on this pump
14should reflect the elimination of the tax." The notice shall
15be printed in bold print on a sign that is no smaller than 4
16inches by 8 inches. The sign shall be clearly visible to
17customers. Any retailer who fails to post or maintain a
18required sign through December 31, 2000 is guilty of a petty
19offense for which the fine shall be $500 per day per each
20retail premises where a violation occurs.
21    With respect to gasohol, as defined in the Use Tax Act, the
22tax imposed by this Act applies to (i) 70% of the proceeds of
23sales made on or after January 1, 1990, and before July 1,
242003, (ii) 80% of the proceeds of sales made on or after July
251, 2003 and on or before July 1, 2017, and (iii) 100% of the
26proceeds of sales made thereafter. If, at any time, however,

 

 

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1the tax under this Act on sales of gasohol, as defined in the
2Use Tax Act, is imposed at the rate of 1.25%, then the tax
3imposed by this Act applies to 100% of the proceeds of sales of
4gasohol made during that time.
5    With respect to majority blended ethanol fuel, as defined
6in the Use Tax Act, the tax imposed by this Act does not apply
7to the proceeds of sales made on or after July 1, 2003 and on
8or before December 31, 2023 but applies to 100% of the proceeds
9of sales made thereafter.
10    With respect to biodiesel blends, as defined in the Use
11Tax Act, with no less than 1% and no more than 10% biodiesel,
12the tax imposed by this Act applies to (i) 80% of the proceeds
13of sales made on or after July 1, 2003 and on or before
14December 31, 2018 and (ii) 100% of the proceeds of sales made
15thereafter. If, at any time, however, the tax under this Act on
16sales of biodiesel blends, as defined in the Use Tax Act, with
17no less than 1% and no more than 10% biodiesel is imposed at
18the rate of 1.25%, then the tax imposed by this Act applies to
19100% of the proceeds of sales of biodiesel blends with no less
20than 1% and no more than 10% biodiesel made during that time.
21    With respect to 100% biodiesel, as defined in the Use Tax
22Act, and biodiesel blends, as defined in the Use Tax Act, with
23more than 10% but no more than 99% biodiesel, the tax imposed
24by this Act does not apply to the proceeds of sales made on or
25after July 1, 2003 and on or before December 31, 2023 but
26applies to 100% of the proceeds of sales made thereafter.

 

 

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1    With respect to gun safes and locks designed to secure
2firearms, beginning on January 1, 2022, the tax is imposed at
3the rate of 1%.
4    With respect to food for human consumption that is to be
5consumed off the premises where it is sold (other than
6alcoholic beverages, food consisting of or infused with adult
7use cannabis, soft drinks, and food that has been prepared for
8immediate consumption) and 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, urine testing materials, syringes,
16and needles used by diabetics, for human use, 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

 

 

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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" do not include beverages that contain milk or milk
7products, soy, rice or similar milk substitutes, or greater
8than 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

 

 

HB0316- 24 -LRB102 03906 HLH 13921 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 C.F.R. § 201.66. The "over-the-counter-drug"
16label includes:
17        (A) A "Drug Facts" panel; or
18        (B) 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 the effective date of this amendatory Act of
22the 98th General Assembly, "prescription and nonprescription
23medicines and drugs" includes medical cannabis purchased from
24a registered dispensing organization under the Compassionate
25Use of Medical Cannabis Program Act.
26    As used in this Section, "adult use cannabis" means

 

 

HB0316- 25 -LRB102 03906 HLH 13921 b

1cannabis subject to tax under the Cannabis Cultivation
2Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
3and does not include cannabis subject to tax under the
4Compassionate Use of Medical Cannabis Program Act.
5(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
6101-593, eff. 12-4-19.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.