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90_HB2950eng
35 ILCS 125/2 from Ch. 5, par. 1752
Amends the Gasohol Fuels Tax Abatement Act. Makes a
technical change in the definition Section.
LRB9008806KDcd
HB2950 Engrossed LRB9008806KDcd
1 AN ACT in relation to taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by changing
5 Section 3-10 as follows:
6 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
7 Sec. 3-10. Rate of tax. Unless otherwise provided in
8 this Section, the tax imposed by this Act is at the rate of
9 6.25% of either the selling price or the fair market value,
10 if any, of the tangible personal property. In all cases
11 where property functionally used or consumed is the same as
12 the property that was purchased at retail, then the tax is
13 imposed on the selling price of the property. In all cases
14 where property functionally used or consumed is a by-product
15 or waste product that has been refined, manufactured, or
16 produced from property purchased at retail, then the tax is
17 imposed on the lower of the fair market value, if any, of the
18 specific property so used in this State or on the selling
19 price of the property purchased at retail. For purposes of
20 this Section "fair market value" means the price at which
21 property would change hands between a willing buyer and a
22 willing seller, neither being under any compulsion to buy or
23 sell and both having reasonable knowledge of the relevant
24 facts. The fair market value shall be established by Illinois
25 sales by the taxpayer of the same property as that
26 functionally used or consumed, or if there are no such sales
27 by the taxpayer, then comparable sales or purchases of
28 property of like kind and character in Illinois.
29 With respect to gasohol, the tax imposed by this Act
30 applies to 70% of the proceeds of sales made on or after
31 January 1, 1990, and before July 1, 2003 1999, and to 100% of
HB2950 Engrossed -2- LRB9008806KDcd
1 the proceeds of sales made thereafter, except that from July
2 1, 1997 to July 1, 1999, the rate shall be 85% for gasohol
3 sold in this State during the 12 months beginning July 1
4 following any calendar year for which the Department has
5 determined that the percentages in Section 10 of the Gasohol
6 Fuels Tax Abatement Act have not been met.
7 With respect to food for human consumption that is to be
8 consumed off the premises where it is sold (other than
9 alcoholic beverages, soft drinks, and food that has been
10 prepared for immediate consumption) and prescription and
11 nonprescription medicines, drugs, medical appliances,
12 modifications to a motor vehicle for the purpose of rendering
13 it usable by a disabled person, and insulin, urine testing
14 materials, syringes, and needles used by diabetics, for human
15 use, the tax is imposed at the rate of 1%. For the purposes
16 of this Section, the term "soft drinks" means any complete,
17 finished, ready-to-use, non-alcoholic drink, whether
18 carbonated or not, including but not limited to soda water,
19 cola, fruit juice, vegetable juice, carbonated water, and all
20 other preparations commonly known as soft drinks of whatever
21 kind or description that are contained in any closed or
22 sealed bottle, can, carton, or container, regardless of size.
23 "Soft drinks" does not include coffee, tea, non-carbonated
24 water, infant formula, milk or milk products as defined in
25 the Grade A Pasteurized Milk and Milk Products Act, or drinks
26 containing 50% or more natural fruit or vegetable juice.
27 Notwithstanding any other provisions of this Act, "food
28 for human consumption that is to be consumed off the premises
29 where it is sold" includes all food sold through a vending
30 machine, except soft drinks and food products that are
31 dispensed hot from a vending machine, regardless of the
32 location of the vending machine.
33 If the property that is purchased at retail from a
34 retailer is acquired outside Illinois and used outside
HB2950 Engrossed -3- LRB9008806KDcd
1 Illinois before being brought to Illinois for use here and is
2 taxable under this Act, the "selling price" on which the tax
3 is computed shall be reduced by an amount that represents a
4 reasonable allowance for depreciation for the period of prior
5 out-of-state use.
6 (Source: P.A. 88-45; 89-359, eff. 8-17-95; 89-420, eff.
7 6-1-96; 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
8 Section 10. The Service Use Tax Act is amended by
9 changing Section 3-10 as follows:
10 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
11 Sec. 3-10. Rate of tax. Unless otherwise provided in
12 this Section, the tax imposed by this Act is at the rate of
13 6.25% of the selling price of tangible personal property
14 transferred as an incident to the sale of service, but, for
15 the purpose of computing this tax, in no event shall the
16 selling price be less than the cost price of the property to
17 the serviceman.
18 With respect to gasohol, as defined in the Use Tax Act,
19 the tax imposed by this Act applies to 70% of the selling
20 price of property transferred as an incident to the sale of
21 service on or after January 1, 1990, and before July 1, 2003
22 1999, and to 100% of the selling price thereafter, except
23 that from July 1, 1997 to July 1, 1999, the rate shall be 85%
24 for gasohol sold in this State during the 12 months beginning
25 July 1 following any calendar year for which the Department
26 has determined that the percentages in Section 10 of the
27 Gasohol Fuels Tax Abatement Act have not been met.
28 At the election of any registered serviceman made for
29 each fiscal year, sales of service in which the aggregate
30 annual cost price of tangible personal property transferred
31 as an incident to the sales of service is less than 35%, or
32 75% in the case of servicemen transferring prescription drugs
HB2950 Engrossed -4- LRB9008806KDcd
1 or servicemen engaged in graphic arts production, of the
2 aggregate annual total gross receipts from all sales of
3 service, the tax imposed by this Act shall be based on the
4 serviceman's cost price of the tangible personal property
5 transferred as an incident to the sale of those services.
6 The tax shall be imposed at the rate of 1% on food
7 prepared for immediate consumption and transferred incident
8 to a sale of service subject to this Act or the Service
9 Occupation Tax Act by an entity licensed under the Hospital
10 Licensing Act or the Nursing Home Care Act. The tax shall
11 also be imposed at the rate of 1% on food for human
12 consumption that is to be consumed off the premises where it
13 is sold (other than alcoholic beverages, soft drinks, and
14 food that has been prepared for immediate consumption and is
15 not otherwise included in this paragraph) and prescription
16 and nonprescription medicines, drugs, medical appliances,
17 modifications to a motor vehicle for the purpose of rendering
18 it usable by a disabled person, and insulin, urine testing
19 materials, syringes, and needles used by diabetics, for human
20 use. For the purposes of this Section, the term "soft drinks"
21 means any complete, finished, ready-to-use, non-alcoholic
22 drink, whether carbonated or not, including but not limited
23 to soda water, cola, fruit juice, vegetable juice, carbonated
24 water, and all other preparations commonly known as soft
25 drinks of whatever kind or description that are contained in
26 any closed or sealed bottle, can, carton, or container,
27 regardless of size. "Soft drinks" does not include coffee,
28 tea, non-carbonated water, infant formula, milk or milk
29 products as defined in the Grade A Pasteurized Milk and Milk
30 Products Act, or drinks containing 50% or more natural fruit
31 or vegetable juice.
32 Notwithstanding any other provisions of this Act, "food
33 for human consumption that is to be consumed off the premises
34 where it is sold" includes all food sold through a vending
HB2950 Engrossed -5- LRB9008806KDcd
1 machine, except soft drinks and food products that are
2 dispensed hot from a vending machine, regardless of the
3 location of the vending machine.
4 If the property that is acquired from a serviceman is
5 acquired outside Illinois and used outside Illinois before
6 being brought to Illinois for use here and is taxable under
7 this Act, the "selling price" on which the tax is computed
8 shall be reduced by an amount that represents a reasonable
9 allowance for depreciation for the period of prior
10 out-of-state use.
11 (Source: P.A. 88-45; 89-359, eff. 8-17-95; 89-420, eff.
12 6-1-96; 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
13 Section 15. The Service Occupation Tax Act is amended by
14 changing Section 3-10 as follows:
15 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
16 Sec. 3-10. Rate of tax. Unless otherwise provided in
17 this Section, the tax imposed by this Act is at the rate of
18 6.25% of the "selling price", as defined in Section 2 of the
19 Service Use Tax Act, of the tangible personal property. For
20 the purpose of computing this tax, in no event shall the
21 "selling price" be less than the cost price to the serviceman
22 of the tangible personal property transferred. The selling
23 price of each item of tangible personal property transferred
24 as an incident of a sale of service may be shown as a
25 distinct and separate item on the serviceman's billing to the
26 service customer. If the selling price is not so shown, the
27 selling price of the tangible personal property is deemed to
28 be 50% of the serviceman's entire billing to the service
29 customer. When, however, a serviceman contracts to design,
30 develop, and produce special order machinery or equipment,
31 the tax imposed by this Act shall be based on the
32 serviceman's cost price of the tangible personal property
HB2950 Engrossed -6- LRB9008806KDcd
1 transferred incident to the completion of the contract.
2 With respect to gasohol, as defined in the Use Tax Act,
3 the tax imposed by this Act shall apply to 70% of the cost
4 price of property transferred as an incident to the sale of
5 service on or after January 1, 1990, and before July 1, 2003
6 1999, and to 100% of the cost price thereafter, except that
7 from July 1, 1997 to July 1, 1999, the rate shall be 85% for
8 gasohol sold in this State during the 12 months beginning
9 July 1 following any calendar year for which the Department
10 has determined that the percentages in Section 10 of the
11 Gasohol Fuels Tax Abatement Act have not been met.
12 At the election of any registered serviceman made for
13 each fiscal year, sales of service in which the aggregate
14 annual cost price of tangible personal property transferred
15 as an incident to the sales of service is less than 35%, or
16 75% in the case of servicemen transferring prescription drugs
17 or servicemen engaged in graphic arts production, of the
18 aggregate annual total gross receipts from all sales of
19 service, the tax imposed by this Act shall be based on the
20 serviceman's cost price of the tangible personal property
21 transferred incident to the sale of those services.
22 The tax shall be imposed at the rate of 1% on food
23 prepared for immediate consumption and transferred incident
24 to a sale of service subject to this Act or the Service
25 Occupation Tax Act by an entity licensed under the Hospital
26 Licensing Act or the Nursing Home Care Act. The tax shall
27 also be imposed at the rate of 1% on food for human
28 consumption that is to be consumed off the premises where it
29 is sold (other than alcoholic beverages, soft drinks, and
30 food that has been prepared for immediate consumption and is
31 not otherwise included in this paragraph) and prescription
32 and nonprescription medicines, drugs, medical appliances,
33 modifications to a motor vehicle for the purpose of rendering
34 it usable by a disabled person, and insulin, urine testing
HB2950 Engrossed -7- LRB9008806KDcd
1 materials, syringes, and needles used by diabetics, for human
2 use. For the purposes of this Section, the term "soft
3 drinks" means any complete, finished, ready-to-use,
4 non-alcoholic drink, whether carbonated or not, including but
5 not limited to soda water, cola, fruit juice, vegetable
6 juice, carbonated water, and all other preparations commonly
7 known as soft drinks of whatever kind or description that are
8 contained in any closed or sealed can, carton, or container,
9 regardless of size. "Soft drinks" does not include coffee,
10 tea, non-carbonated water, infant formula, milk or milk
11 products as defined in the Grade A Pasteurized Milk and Milk
12 Products Act, or drinks containing 50% or more natural fruit
13 or vegetable juice.
14 Notwithstanding any other provisions of this Act, "food
15 for human consumption that is to be consumed off the premises
16 where it is sold" includes all food sold through a vending
17 machine, except soft drinks and food products that are
18 dispensed hot from a vending machine, regardless of the
19 location of the vending machine.
20 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
21 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
22 Section 20. The Retailers' Occupation Tax Act is amended
23 by changing Section 2-10 as follows:
24 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
25 Sec. 2-10. Rate of tax. Unless otherwise provided in
26 this Section, the tax imposed by this Act is at the rate of
27 6.25% of gross receipts from sales of tangible personal
28 property made in the course of business.
29 With respect to gasohol, as defined in the Use Tax Act,
30 the tax imposed by this Act applies to 70% of the proceeds of
31 sales made on or after January 1, 1990, and before July 1,
32 2003 1999, and to 100% of the proceeds of sales made
HB2950 Engrossed -8- LRB9008806KDcd
1 thereafter, except that from July 1, 1997 to July 1, 1999,
2 the rate shall be 85% for gasohol sold in this State during
3 the 12 months beginning July 1 following any calendar year
4 for which the Department has determined that the percentages
5 in Section 10 of the Gasohol Fuels Tax Abatement Act have not
6 been met.
7 With respect to food for human consumption that is to be
8 consumed off the premises where it is sold (other than
9 alcoholic beverages, soft drinks, and food that has been
10 prepared for immediate consumption) and prescription and
11 nonprescription medicines, drugs, medical appliances,
12 modifications to a motor vehicle for the purpose of rendering
13 it usable by a disabled person, and insulin, urine testing
14 materials, syringes, and needles used by diabetics, for human
15 use, the tax is imposed at the rate of 1%. For the purposes
16 of this Section, the term "soft drinks" means any complete,
17 finished, ready-to-use, non-alcoholic drink, whether
18 carbonated or not, including but not limited to soda water,
19 cola, fruit juice, vegetable juice, carbonated water, and all
20 other preparations commonly known as soft drinks of whatever
21 kind or description that are contained in any closed or
22 sealed bottle, can, carton, or container, regardless of size.
23 "Soft drinks" does not include coffee, tea, non-carbonated
24 water, infant formula, milk or milk products as defined in
25 the Grade A Pasteurized Milk and Milk Products Act, or drinks
26 containing 50% or more natural fruit or vegetable juice.
27 Notwithstanding any other provisions of this Act, "food
28 for human consumption that is to be consumed off the premises
29 where it is sold" includes all food sold through a vending
30 machine, except soft drinks and food products that are
31 dispensed hot from a vending machine, regardless of the
32 location of the vending machine.
33 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
34 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
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1 (35 ILCS 125/Act rep.)
2 Section 25. The Gasohol Fuels Tax Abatement Act is
3 repealed.
4 Section 99. Effective date. This Act takes effect upon
5 becoming law.