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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Use Tax Act is amended by changing Section | ||||||||||||||||||||||||||||||
5 | 3-10 and by adding Section 3-6 as follows: | ||||||||||||||||||||||||||||||
6 | (35 ILCS 105/3-6 new) | ||||||||||||||||||||||||||||||
7 | Sec. 3-6. Sales tax holiday items. | ||||||||||||||||||||||||||||||
8 | (a) The tangible personal property described in this | ||||||||||||||||||||||||||||||
9 | subsection qualifies for the
1.25% reduced rate of tax for the | ||||||||||||||||||||||||||||||
10 | period set forth in Section 3-10 of this Act (hereinafter
| ||||||||||||||||||||||||||||||
11 | referred to as the Sales Tax Holiday Period). The reduced rate | ||||||||||||||||||||||||||||||
12 | on these items shall be
administered under the provisions of | ||||||||||||||||||||||||||||||
13 | subsection (b) of this Section. The following items are subject | ||||||||||||||||||||||||||||||
14 | to the
reduced rate: | ||||||||||||||||||||||||||||||
15 | (1) Clothing items that each have a retail selling | ||||||||||||||||||||||||||||||
16 | price of less than $100. | ||||||||||||||||||||||||||||||
17 | "Clothing" means, unless otherwise specified in this | ||||||||||||||||||||||||||||||
18 | Section, all human wearing
apparel suitable for general | ||||||||||||||||||||||||||||||
19 | use. "Clothing" does not include clothing
accessories, | ||||||||||||||||||||||||||||||
20 | protective equipment, or sport or recreational equipment.
| ||||||||||||||||||||||||||||||
21 | "Clothing" includes, but is not limited to: household and | ||||||||||||||||||||||||||||||
22 | shop aprons; athletic
supporters; bathing suits and caps; | ||||||||||||||||||||||||||||||
23 | belts and suspenders; boots; coats and
jackets; ear muffs; |
| |||||||
| |||||||
1 | footlets; gloves and mittens for general use; hats and | ||||||
2 | caps;
hosiery; insoles for shoes; lab coats; neckties; | ||||||
3 | overshoes; pantyhose;
rainwear; rubber pants; sandals; | ||||||
4 | scarves; shoes and shoelaces; slippers;
sneakers; socks | ||||||
5 | and stockings; steel-toed shoes; underwear; and school
| ||||||
6 | uniforms. | ||||||
7 | "Clothing accessories" means, but is not limited to: | ||||||
8 | briefcases; cosmetics; hair
notions, including, but not | ||||||
9 | limited to barrettes, hair bows, and hair nets;
handbags; | ||||||
10 | handkerchiefs; jewelry; non-prescription sunglasses; | ||||||
11 | umbrellas;
wallets; watches; and wigs and hair pieces. | ||||||
12 | "Protective equipment" means, but is not limited to: | ||||||
13 | breathing masks; clean
room apparel and equipment; ear and | ||||||
14 | hearing protectors; face shields; hard
hats; helmets; | ||||||
15 | paint or dust respirators; protective gloves; safety | ||||||
16 | glasses and
goggles; safety belts; tool belts; and welder's | ||||||
17 | gloves and masks. | ||||||
18 | "Sport or recreational equipment" means, but is not | ||||||
19 | limited to: ballet and tap
shoes; cleated or spiked | ||||||
20 | athletic shoes; gloves, including, but not limited to,
| ||||||
21 | baseball, bowling, boxing, hockey, and golf gloves; | ||||||
22 | goggles; hand and elbow guards;
life preservers and vests; | ||||||
23 | mouth guards; roller and ice skates; shin guards;
shoulder | ||||||
24 | pads; ski boots; waders; and wetsuits and fins. | ||||||
25 | (2) School supplies. "School supplies" means, unless | ||||||
26 | otherwise specified in this
Section, items used by a |
| |||||||
| |||||||
1 | student in a course of study. The purchase of school
| ||||||
2 | supplies for use by persons other than students for use in | ||||||
3 | a course of study are not
eligible for the reduced rate of | ||||||
4 | tax. "School supplies" do not include school art
supplies; | ||||||
5 | school instructional materials; cameras; film and memory | ||||||
6 | cards;
videocameras, tapes, and videotapes; computers; | ||||||
7 | cell phones; Personal Digital
Assistants (PDAs); handheld | ||||||
8 | electronic schedulers; and school computer
supplies. | ||||||
9 | "School supplies" includes, but is not limited to: | ||||||
10 | binders; book bags;
calculators; cellophane tape; | ||||||
11 | blackboard chalk; compasses; composition books;
crayons; | ||||||
12 | erasers; expandable, pocket, plastic, and manila folders; | ||||||
13 | glue, paste,
and paste sticks; highlighters; index cards; | ||||||
14 | index card boxes; legal pads; lunch
boxes; markers; | ||||||
15 | notebooks; paper, including loose leaf ruled notebook | ||||||
16 | paper, copy paper,
graph paper, tracing paper, manila | ||||||
17 | paper, colored paper, poster board, and
construction | ||||||
18 | paper; pencils; pencil leads; pens; ink and ink refills for | ||||||
19 | pens; pencil
boxes and other school supply boxes; pencil | ||||||
20 | sharpeners; protractors; rulers;
scissors; and | ||||||
21 | writing-tablets. | ||||||
22 | "School art supply" means an item commonly used by a | ||||||
23 | student in a course of
study for artwork and includes only | ||||||
24 | the following items: clay and glazes; acrylic, tempera, and | ||||||
25 | oil paint; paintbrushes for artwork; sketch and drawing | ||||||
26 | pads; and
watercolors. |
| |||||||
| |||||||
1 | "School instructional material" means written material | ||||||
2 | commonly used by a
student in a course of study as a | ||||||
3 | reference and to learn the subject being taught
and | ||||||
4 | includes only the following items: reference books; | ||||||
5 | reference maps and
globes; textbooks; and workbooks. | ||||||
6 | "School computer supply" means an item commonly used by | ||||||
7 | a student in a course
of study in which a computer is used | ||||||
8 | and applies only to the following items:
flashdrives and | ||||||
9 | other computer data storage devices; data storage media, | ||||||
10 | such as
diskettes and compact disks; boxes and cases for | ||||||
11 | disk storage; external ports or
drives; computer cases; | ||||||
12 | computer cables; computer printers; and printer
| ||||||
13 | cartridges, toner, and ink. | ||||||
14 | (b) Administration. Notwithstanding any other provision of | ||||||
15 | this Act, the reduced rate of
tax under Section 3-10 of this | ||||||
16 | Act for clothing and school supplies shall be
administered by | ||||||
17 | the Department under the provisions of this subsection (b). | ||||||
18 | (1) Bundled sales. Items that qualify for the reduced | ||||||
19 | rate of tax that are bundled
together with items that do | ||||||
20 | not qualify for the reduced rate of tax and that are sold
| ||||||
21 | for one itemized price will be subject to the reduced rate | ||||||
22 | of tax only if the value of
the items that qualify for the | ||||||
23 | reduced rate of tax exceeds the value of the items
that do | ||||||
24 | not qualify for the reduced rate of tax. | ||||||
25 | (2) Coupons and discounts. An unreimbursed discount by | ||||||
26 | the seller reduces the
sales price of the property so that |
| |||||||
| |||||||
1 | the discounted sales price determines whether
the sales | ||||||
2 | price is within a sales tax holiday price threshold. A | ||||||
3 | coupon or other
reduction in the sales price is treated as | ||||||
4 | a discount if the seller is not reimbursed
for the coupon | ||||||
5 | or reduction amount by a third-party. | ||||||
6 | (3) Splitting of items normally sold together. | ||||||
7 | Articles that are normally sold as a
single unit must | ||||||
8 | continue to be sold in that manner. Such articles cannot be | ||||||
9 | priced
separately and sold as individual items in order to | ||||||
10 | obtain the reduced rate of tax.
For example, a pair of | ||||||
11 | shoes cannot have each shoe sold separately so that the
| ||||||
12 | sales price of each shoe is within a sales tax holiday | ||||||
13 | price threshold. | ||||||
14 | (4) Rain checks. A rain check is a procedure that | ||||||
15 | allows a customer to purchase an
item at a certain price at | ||||||
16 | a later time because the particular item was out of stock.
| ||||||
17 | Eligible property that customers purchase during the Sales | ||||||
18 | Tax Holiday Period
with the use of a rain check will | ||||||
19 | qualify for the reduced rate of tax regardless of
when the | ||||||
20 | rain check was issued. Issuance of a rain check during the | ||||||
21 | Sales Tax
Holiday Period will not qualify eligible property | ||||||
22 | for the reduced rate of tax if the
property is actually | ||||||
23 | purchased after the Sales Tax Holiday Period. | ||||||
24 | (5) Exchanges. The procedure for an exchange in regards | ||||||
25 | to a sales tax holiday is
as follows: | ||||||
26 | (A) If a customer purchases an item of eligible |
| |||||||
| |||||||
1 | property during the Sales Tax
Holiday Period, but later | ||||||
2 | exchanges the item for a similar eligible item,
even if | ||||||
3 | a different size, different color, or other feature, no | ||||||
4 | additional tax is
due even if the exchange is made | ||||||
5 | after the Sales Tax Holiday Period. | ||||||
6 | (B) If a customer purchases an item of eligible | ||||||
7 | property during the Sales Tax
Holiday Period, but after | ||||||
8 | the Sales Tax Holiday Period has ended, the
customer | ||||||
9 | returns the item and receives credit on the purchase of | ||||||
10 | a different
item, the 6.25% general merchandise sales | ||||||
11 | tax rate is due on the sale of the
newly purchased | ||||||
12 | item. | ||||||
13 | (C) If a customer purchases an item of eligible | ||||||
14 | property before the Sales Tax
Holiday Period, but | ||||||
15 | during the Sales Tax Holiday Period the customer
| ||||||
16 | returns the item and receives credit on the purchase of | ||||||
17 | a different item of
eligible property, the reduced rate | ||||||
18 | of tax is due on the sale of the new item
if the new | ||||||
19 | item is purchased during the Sales Tax Holiday Period. | ||||||
20 | (6) Delivery charges. Delivery charges, including | ||||||
21 | shipping, handling and service
charges, are part of the | ||||||
22 | sales price of eligible property. | ||||||
23 | (7) Order date and back orders. For the purpose of a | ||||||
24 | sales tax holiday, eligible
property qualifies for the | ||||||
25 | reduced rate of tax if: (i) the item is both delivered to | ||||||
26 | and paid for by the customer during the Sales
Tax Holiday |
| |||||||
| |||||||
1 | Period or (ii) the customer orders and pays for the item | ||||||
2 | and the seller accepts the order
during the Sales Tax | ||||||
3 | Holiday Period for immediate shipment, even if
delivery is | ||||||
4 | made after the Sales Tax Holiday Period. The seller accepts
| ||||||
5 | an order when the seller has taken action to fill the order | ||||||
6 | for immediate
shipment. Actions to fill an order include | ||||||
7 | placement of an "in date" stamp
on an order or assignment | ||||||
8 | of an "order number" to an order within the
Sales Tax | ||||||
9 | Holiday Period. An order is for immediate shipment when the
| ||||||
10 | customer does not request delayed shipment. An order is for | ||||||
11 | immediate
shipment notwithstanding that the shipment may | ||||||
12 | be delayed because of a
backlog of orders or because stock | ||||||
13 | is currently unavailable to, or on back
order by, the | ||||||
14 | seller. | ||||||
15 | (8) Returns. For a 60-day period immediately after the | ||||||
16 | Sales Tax Holiday Period,
if a customer returns an item | ||||||
17 | that would qualify for the reduced rate of tax,
credit for | ||||||
18 | or refund of sales tax shall be given only at the reduced | ||||||
19 | rate unless the
customer provides a receipt or invoice that | ||||||
20 | shows tax was paid at the 6.25%
general merchandise rate, | ||||||
21 | or the seller has sufficient documentation to show that
tax | ||||||
22 | was paid at the 6.25% general merchandise rate on the | ||||||
23 | specific item. This 60-day period is set solely for the | ||||||
24 | purpose of designating a time period during which
the | ||||||
25 | customer must provide documentation that shows that the | ||||||
26 | appropriate sales
tax rate was paid on returned |
| |||||||
| |||||||
1 | merchandise. The 60-day period is not intended to
change a | ||||||
2 | seller's policy on the time period during which the seller | ||||||
3 | will accept
returns. | ||||||
4 | (c) The Department may implement the provisions of this | ||||||
5 | Section through the use of
emergency rules, along with | ||||||
6 | permanent rules filed concurrently with such
emergency rules, | ||||||
7 | in accordance with the provisions of Section 5-45 of the | ||||||
8 | Illinois
Administrative Procedure Act. For purposes of the | ||||||
9 | Illinois Administrative
Procedure Act, the adoption of rules to | ||||||
10 | implement the provisions of this Section shall
be deemed an | ||||||
11 | emergency and necessary for the public interest, safety, and | ||||||
12 | welfare.
| ||||||
13 | (35 ILCS 105/3-10)
| ||||||
14 | Sec. 3-10. Rate of tax. Unless otherwise provided in this | ||||||
15 | Section, the tax
imposed by this Act is at the rate of 6.25% of | ||||||
16 | either the selling price or the
fair market value, if any, of | ||||||
17 | the tangible personal property. In all cases
where property | ||||||
18 | functionally used or consumed is the same as the property that
| ||||||
19 | was purchased at retail, then the tax is imposed on the selling | ||||||
20 | price of the
property. In all cases where property functionally | ||||||
21 | used or consumed is a
by-product or waste product that has been | ||||||
22 | refined, manufactured, or produced
from property purchased at | ||||||
23 | retail, then the tax is imposed on the lower of the
fair market | ||||||
24 | value, if any, of the specific property so used in this State | ||||||
25 | or on
the selling price of the property purchased at retail. |
| |||||||
| |||||||
1 | For purposes of this
Section "fair market value" means the | ||||||
2 | price at which property would change
hands between a willing | ||||||
3 | buyer and a willing seller, neither being under any
compulsion | ||||||
4 | to buy or sell and both having reasonable knowledge of the
| ||||||
5 | relevant facts. The fair market value shall be established by | ||||||
6 | Illinois sales by
the taxpayer of the same property as that | ||||||
7 | functionally used or consumed, or if
there are no such sales by | ||||||
8 | the taxpayer, then comparable sales or purchases of
property of | ||||||
9 | like kind and character in Illinois.
| ||||||
10 | Beginning on July 1, 2000 and through December 31, 2000, | ||||||
11 | with respect to
motor fuel, as defined in Section 1.1 of the | ||||||
12 | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | ||||||
13 | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| ||||||
14 | Beginning on August 6, 2010 through August 15, 2010, and | ||||||
15 | each year
thereafter beginning on the first Friday in August | ||||||
16 | and ending on the Sunday occurring 9 days
thereafter, with | ||||||
17 | respect to sales tax holiday items as defined in Section 3-6 of | ||||||
18 | this Act, the
tax is imposed at the rate of 1.25%. The reduced | ||||||
19 | rate of tax for sales tax holiday items as
defined in Section | ||||||
20 | 3-6 of this Act shall not be authorized for periods after | ||||||
21 | August 16,
2013. | ||||||
22 | With respect to gasohol, the tax imposed by this Act | ||||||
23 | applies to (i) 70%
of the proceeds of sales made on or after | ||||||
24 | January 1, 1990, and before
July 1, 2003, (ii) 80% of the | ||||||
25 | proceeds of sales made
on or after July 1, 2003 and on or | ||||||
26 | before December 31, 2013, and (iii) 100% of the proceeds of |
| |||||||
| |||||||
1 | sales made
thereafter.
If, at any time, however, the tax under | ||||||
2 | this Act on sales of gasohol is
imposed at the
rate of 1.25%, | ||||||
3 | then the tax imposed by this Act applies to 100% of the | ||||||
4 | proceeds
of sales of gasohol made during that time.
| ||||||
5 | With respect to majority blended ethanol fuel, the tax | ||||||
6 | imposed by this Act
does
not apply
to the proceeds of sales | ||||||
7 | made on or after July 1, 2003 and on or before
December
31, | ||||||
8 | 2013 but applies to 100% of the proceeds of sales made | ||||||
9 | thereafter.
| ||||||
10 | With respect to biodiesel blends with no less than 1% and | ||||||
11 | no more than 10%
biodiesel, the tax imposed by this Act applies | ||||||
12 | to (i) 80% of the
proceeds of sales made on or after July 1, | ||||||
13 | 2003 and on or before December 31,
2013 and (ii) 100% of the | ||||||
14 | proceeds of sales made
thereafter.
If, at any time, however, | ||||||
15 | the tax under this Act on sales of biodiesel blends
with no | ||||||
16 | less than 1% and no more than 10% biodiesel
is imposed at the | ||||||
17 | rate of
1.25%, then the
tax imposed by this Act applies to 100% | ||||||
18 | of the proceeds of sales of biodiesel
blends with no less than | ||||||
19 | 1% and no more than 10% biodiesel
made
during that time.
| ||||||
20 | With respect to 100% biodiesel and biodiesel blends with | ||||||
21 | more than 10%
but no more than 99% biodiesel, the tax imposed | ||||||
22 | by this Act does not apply to
the
proceeds of sales made on or | ||||||
23 | after July 1, 2003 and on or before
December 31, 2013 but | ||||||
24 | applies to 100% of the proceeds of sales made
thereafter.
| ||||||
25 | With respect to food for human consumption that is to be | ||||||
26 | consumed off the
premises where it is sold (other than |
| |||||||
| |||||||
1 | alcoholic beverages, soft drinks, and
food that has been | ||||||
2 | prepared for immediate consumption) and prescription and
| ||||||
3 | nonprescription medicines, drugs, medical appliances, | ||||||
4 | modifications to a motor
vehicle for the purpose of rendering | ||||||
5 | it usable by a disabled person, and
insulin, urine testing | ||||||
6 | materials, syringes, and needles used by diabetics, for
human | ||||||
7 | use, the tax is imposed at the rate of 1%. For the purposes of | ||||||
8 | this
Section, until September 1, 2009: the term "soft drinks" | ||||||
9 | means any complete, finished, ready-to-use,
non-alcoholic | ||||||
10 | drink, whether carbonated or not, including but not limited to
| ||||||
11 | soda water, cola, fruit juice, vegetable juice, carbonated | ||||||
12 | water, and all other
preparations commonly known as soft drinks | ||||||
13 | of whatever kind or description that
are contained in any | ||||||
14 | closed or sealed bottle, can, carton, or container,
regardless | ||||||
15 | of size; but "soft drinks" does not include coffee, tea, | ||||||
16 | non-carbonated
water, infant formula, milk or milk products as | ||||||
17 | defined in the Grade A
Pasteurized Milk and Milk Products Act, | ||||||
18 | or drinks containing 50% or more
natural fruit or vegetable | ||||||
19 | juice.
| ||||||
20 | Notwithstanding any other provisions of this
Act, | ||||||
21 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
22 | beverages that contain natural or artificial sweeteners. "Soft | ||||||
23 | drinks" do not include beverages that contain milk or milk | ||||||
24 | products, soy, rice or similar milk substitutes, or greater | ||||||
25 | than 50% of vegetable or fruit juice by volume. | ||||||
26 | Until August 1, 2009, and notwithstanding any other |
| |||||||
| |||||||
1 | provisions of this
Act, "food for human consumption that is to | ||||||
2 | be consumed off the premises where
it is sold" includes all | ||||||
3 | food sold through a vending machine, except soft
drinks , and | ||||||
4 | food products that are dispensed hot from a vending machine,
| ||||||
5 | regardless of the location of the vending machine. Beginning | ||||||
6 | August 1, 2009, and notwithstanding any other provisions of | ||||||
7 | this Act, "food for human consumption that is to be consumed | ||||||
8 | off the premises where it is sold" includes all food sold | ||||||
9 | through a vending machine, except soft drinks, candy, and food | ||||||
10 | products that are dispensed hot from a vending machine, | ||||||
11 | regardless of the location of the vending machine.
| ||||||
12 | Notwithstanding any other provisions of this
Act, | ||||||
13 | beginning September 1, 2009, "food for human consumption that | ||||||
14 | is to be consumed off the premises where
it is sold" does not | ||||||
15 | include candy. For purposes of this Section, "candy" means a | ||||||
16 | preparation of sugar, honey, or other natural or artificial | ||||||
17 | sweeteners in combination with chocolate, fruits, nuts or other | ||||||
18 | ingredients or flavorings in the form of bars, drops, or | ||||||
19 | pieces. "Candy" does not include any preparation that contains | ||||||
20 | flour or requires refrigeration. | ||||||
21 | Notwithstanding any other provisions of this
Act, | ||||||
22 | beginning September 1, 2009, "nonprescription medicines and | ||||||
23 | drugs" does not include grooming and hygiene products. For | ||||||
24 | purposes of this Section, "grooming and hygiene products" | ||||||
25 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
26 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan |
| |||||||
| |||||||
1 | lotions and screens, unless those products are available by | ||||||
2 | prescription only, regardless of whether the products meet the | ||||||
3 | definition of "over-the-counter-drugs". For the purposes of | ||||||
4 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
5 | use that contains a label that identifies the product as a drug | ||||||
6 | as required by 21 C.F.R. ยง 201.66. The "over-the-counter-drug" | ||||||
7 | label includes: | ||||||
8 | (A) A "Drug Facts" panel; or | ||||||
9 | (B) A statement of the "active ingredient(s)" with a | ||||||
10 | list of those ingredients contained in the compound, | ||||||
11 | substance or preparation. | ||||||
12 | If the property that is purchased at retail from a retailer | ||||||
13 | is acquired
outside Illinois and used outside Illinois before | ||||||
14 | being brought to Illinois
for use here and is taxable under | ||||||
15 | this Act, the "selling price" on which
the tax is computed | ||||||
16 | shall be reduced by an amount that represents a
reasonable | ||||||
17 | allowance for depreciation for the period of prior out-of-state | ||||||
18 | use.
| ||||||
19 | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | ||||||
20 | eff. 7-13-09; revised 8-20-09.)
| ||||||
21 | Section 10. The Retailers' Occupation Tax Act is amended by | ||||||
22 | changing Section 2-10 and by adding Section 2-8 as follows: | ||||||
23 | (35 ILCS 120/2-8 new) | ||||||
24 | Sec. 2-8. Sales tax holiday items. |
| |||||||
| |||||||
1 | (a) The tangible personal property described in this | ||||||
2 | subsection qualifies for the
1.25% reduced rate of tax for the | ||||||
3 | period set forth in Section 2-10 of this Act (hereinafter
| ||||||
4 | referred to as the Sales Tax Holiday Period). The reduced rate | ||||||
5 | on these items shall be
administered under the provisions of | ||||||
6 | subsection (b) of this Section. The following items are subject | ||||||
7 | to the
reduced rate: | ||||||
8 | (1) Clothing items that each have a retail selling | ||||||
9 | price of less than $100. | ||||||
10 | "Clothing" means, unless otherwise specified in this | ||||||
11 | Section, all human wearing
apparel suitable for general | ||||||
12 | use. "Clothing" does not include clothing
accessories, | ||||||
13 | protective equipment, or sport or recreational equipment.
| ||||||
14 | "Clothing" includes, but is not limited to: household and | ||||||
15 | shop aprons; athletic
supporters; bathing suits and caps; | ||||||
16 | belts and suspenders; boots; coats and
jackets; ear muffs; | ||||||
17 | footlets; gloves and mittens for general use; hats and | ||||||
18 | caps;
hosiery; insoles for shoes; lab coats; neckties; | ||||||
19 | overshoes; pantyhose;
rainwear; rubber pants; sandals; | ||||||
20 | scarves; shoes and shoelaces; slippers;
sneakers; socks | ||||||
21 | and stockings; steel-toed shoes; underwear; and school
| ||||||
22 | uniforms. | ||||||
23 | "Clothing accessories" means, but is not limited to: | ||||||
24 | briefcases; cosmetics; hair
notions, including, but not | ||||||
25 | limited to barrettes, hair bows, and hair nets;
handbags; | ||||||
26 | handkerchiefs; jewelry; non-prescription sunglasses; |
| |||||||
| |||||||
1 | umbrellas;
wallets; watches; and wigs and hair pieces. | ||||||
2 | "Protective equipment" means, but is not limited to: | ||||||
3 | breathing masks; clean
room apparel and equipment; ear and | ||||||
4 | hearing protectors; face shields; hard
hats; helmets; | ||||||
5 | paint or dust respirators; protective gloves; safety | ||||||
6 | glasses and
goggles; safety belts; tool belts; and welder's | ||||||
7 | gloves and masks. | ||||||
8 | "Sport or recreational equipment" means, but is not | ||||||
9 | limited to: ballet and tap
shoes; cleated or spiked | ||||||
10 | athletic shoes; gloves, including, but not limited to,
| ||||||
11 | baseball, bowling, boxing, hockey, and golf gloves; | ||||||
12 | goggles; hand and elbow guards;
life preservers and vests; | ||||||
13 | mouth guards; roller and ice skates; shin guards;
shoulder | ||||||
14 | pads; ski boots; waders; and wetsuits and fins. | ||||||
15 | (2) School supplies. "School supplies" means, unless | ||||||
16 | otherwise specified in this
Section, items used by a | ||||||
17 | student in a course of study. The purchase of school
| ||||||
18 | supplies for use by persons other than students for use in | ||||||
19 | a course of study are not
eligible for the reduced rate of | ||||||
20 | tax. "School supplies" do not include school art
supplies; | ||||||
21 | school instructional materials; cameras; film and memory | ||||||
22 | cards;
videocameras, tapes, and videotapes; computers; | ||||||
23 | cell phones; Personal Digital
Assistants (PDAs); handheld | ||||||
24 | electronic schedulers; and school computer
supplies. | ||||||
25 | "School supplies" includes, but is not limited to: | ||||||
26 | binders; book bags;
calculators; cellophane tape; |
| |||||||
| |||||||
1 | blackboard chalk; compasses; composition books;
crayons; | ||||||
2 | erasers; expandable, pocket, plastic, and manila folders; | ||||||
3 | glue, paste,
and paste sticks; highlighters; index cards; | ||||||
4 | index card boxes; legal pads; lunch
boxes; markers; | ||||||
5 | notebooks; paper, including loose leaf ruled notebook | ||||||
6 | paper, copy paper,
graph paper, tracing paper, manila | ||||||
7 | paper, colored paper, poster board, and
construction | ||||||
8 | paper; pencils; pencil leads; pens; ink and ink refills for | ||||||
9 | pens; pencil
boxes and other school supply boxes; pencil | ||||||
10 | sharpeners; protractors; rulers;
scissors; and | ||||||
11 | writing-tablets. | ||||||
12 | "School art supply" means an item commonly used by a | ||||||
13 | student in a course of
study for artwork and includes only | ||||||
14 | the following items: clay and glazes; acrylic, tempera, and | ||||||
15 | oil paint; paintbrushes for artwork; sketch and drawing | ||||||
16 | pads; and
watercolors. | ||||||
17 | "School instructional material" means written material | ||||||
18 | commonly used by a
student in a course of study as a | ||||||
19 | reference and to learn the subject being taught
and | ||||||
20 | includes only the following items: reference books; | ||||||
21 | reference maps and
globes; textbooks; and workbooks. | ||||||
22 | "School computer supply" means an item commonly used by | ||||||
23 | a student in a course
of study in which a computer is used | ||||||
24 | and applies only to the following items:
flashdrives and | ||||||
25 | other computer data storage devices; data storage media, | ||||||
26 | such as
diskettes and compact disks; boxes and cases for |
| |||||||
| |||||||
1 | disk storage; external ports or
drives; computer cases; | ||||||
2 | computer cables; computer printers; and printer
| ||||||
3 | cartridges, toner, and ink. | ||||||
4 | (b) Administration. Notwithstanding any other provision of | ||||||
5 | this Act, the reduced rate of
tax under Section 3-10 of this | ||||||
6 | Act for clothing and school supplies shall be
administered by | ||||||
7 | the Department under the provisions of this subsection (b). | ||||||
8 | (1) Bundled sales. Items that qualify for the reduced | ||||||
9 | rate of tax that are bundled
together with items that do | ||||||
10 | not qualify for the reduced rate of tax and that are sold
| ||||||
11 | for one itemized price will be subject to the reduced rate | ||||||
12 | of tax only if the value of
the items that qualify for the | ||||||
13 | reduced rate of tax exceeds the value of the items
that do | ||||||
14 | not qualify for the reduced rate of tax. | ||||||
15 | (2) Coupons and discounts. An unreimbursed discount by | ||||||
16 | the seller reduces the
sales price of the property so that | ||||||
17 | the discounted sales price determines whether
the sales | ||||||
18 | price is within a sales tax holiday price threshold. A | ||||||
19 | coupon or other
reduction in the sales price is treated as | ||||||
20 | a discount if the seller is not reimbursed
for the coupon | ||||||
21 | or reduction amount by a third-party. | ||||||
22 | (3) Splitting of items normally sold together. | ||||||
23 | Articles that are normally sold as a
single unit must | ||||||
24 | continue to be sold in that manner. Such articles cannot be | ||||||
25 | priced
separately and sold as individual items in order to | ||||||
26 | obtain the reduced rate of tax.
For example, a pair of |
| |||||||
| |||||||
1 | shoes cannot have each shoe sold separately so that the
| ||||||
2 | sales price of each shoe is within a sales tax holiday | ||||||
3 | price threshold. | ||||||
4 | (4) Rain checks. A rain check is a procedure that | ||||||
5 | allows a customer to purchase an
item at a certain price at | ||||||
6 | a later time because the particular item was out of stock.
| ||||||
7 | Eligible property that customers purchase during the Sales | ||||||
8 | Tax Holiday Period
with the use of a rain check will | ||||||
9 | qualify for the reduced rate of tax regardless of
when the | ||||||
10 | rain check was issued. Issuance of a rain check during the | ||||||
11 | Sales Tax
Holiday Period will not qualify eligible property | ||||||
12 | for the reduced rate of tax if the
property is actually | ||||||
13 | purchased after the Sales Tax Holiday Period. | ||||||
14 | (5) Exchanges. The procedure for an exchange in regards | ||||||
15 | to a sales tax holiday is
as follows: | ||||||
16 | (A) If a customer purchases an item of eligible | ||||||
17 | property during the Sales Tax
Holiday Period, but later | ||||||
18 | exchanges the item for a similar eligible item,
even if | ||||||
19 | a different size, different color, or other feature, no | ||||||
20 | additional tax is
due even if the exchange is made | ||||||
21 | after the Sales Tax Holiday Period. | ||||||
22 | (B) If a customer purchases an item of eligible | ||||||
23 | property during the Sales Tax
Holiday Period, but after | ||||||
24 | the Sales Tax Holiday Period has ended, the
customer | ||||||
25 | returns the item and receives credit on the purchase of | ||||||
26 | a different
item, the 6.25% general merchandise sales |
| |||||||
| |||||||
1 | tax rate is due on the sale of the
newly purchased | ||||||
2 | item. | ||||||
3 | (C) If a customer purchases an item of eligible | ||||||
4 | property before the Sales Tax
Holiday Period, but | ||||||
5 | during the Sales Tax Holiday Period the customer
| ||||||
6 | returns the item and receives credit on the purchase of | ||||||
7 | a different item of
eligible property, the reduced rate | ||||||
8 | of tax is due on the sale of the new item
if the new | ||||||
9 | item is purchased during the Sales Tax Holiday Period. | ||||||
10 | (6) Delivery charges. Delivery charges, including | ||||||
11 | shipping, handling and service
charges, are part of the | ||||||
12 | sales price of eligible property. | ||||||
13 | (7) Order date and back orders. For the purpose of a | ||||||
14 | sales tax holiday, eligible
property qualifies for the | ||||||
15 | reduced rate of tax if: (i) the item is both delivered to | ||||||
16 | and paid for by the customer during the Sales
Tax Holiday | ||||||
17 | Period or (ii) the customer orders and pays for the item | ||||||
18 | and the seller accepts the order
during the Sales Tax | ||||||
19 | Holiday Period for immediate shipment, even if
delivery is | ||||||
20 | made after the Sales Tax Holiday Period. The seller accepts
| ||||||
21 | an order when the seller has taken action to fill the order | ||||||
22 | for immediate
shipment. Actions to fill an order include | ||||||
23 | placement of an "in date" stamp
on an order or assignment | ||||||
24 | of an "order number" to an order within the
Sales Tax | ||||||
25 | Holiday Period. An order is for immediate shipment when the
| ||||||
26 | customer does not request delayed shipment. An order is for |
| |||||||
| |||||||
1 | immediate
shipment notwithstanding that the shipment may | ||||||
2 | be delayed because of a
backlog of orders or because stock | ||||||
3 | is currently unavailable to, or on back
order by, the | ||||||
4 | seller. | ||||||
5 | (8) Returns. For a 60-day period immediately after the | ||||||
6 | Sales Tax Holiday Period,
if a customer returns an item | ||||||
7 | that would qualify for the reduced rate of tax,
credit for | ||||||
8 | or refund of sales tax shall be given only at the reduced | ||||||
9 | rate unless the
customer provides a receipt or invoice that | ||||||
10 | shows tax was paid at the 6.25%
general merchandise rate, | ||||||
11 | or the seller has sufficient documentation to show that
tax | ||||||
12 | was paid at the 6.25% general merchandise rate on the | ||||||
13 | specific item. This 60-day period is set solely for the | ||||||
14 | purpose of designating a time period during which
the | ||||||
15 | customer must provide documentation that shows that the | ||||||
16 | appropriate sales
tax rate was paid on returned | ||||||
17 | merchandise. The 60-day period is not intended to
change a | ||||||
18 | seller's policy on the time period during which the seller | ||||||
19 | will accept
returns. | ||||||
20 | (c) The Department may implement the provisions of this | ||||||
21 | Section through the use of
emergency rules, along with | ||||||
22 | permanent rules filed concurrently with such
emergency rules, | ||||||
23 | in accordance with the provisions of Section 5-45 of the | ||||||
24 | Illinois
Administrative Procedure Act. For purposes of the | ||||||
25 | Illinois Administrative
Procedure Act, the adoption of rules to | ||||||
26 | implement the provisions of this Section shall
be deemed an |
| |||||||
| |||||||
1 | emergency and necessary for the public interest, safety, and | ||||||
2 | welfare.
| ||||||
3 | (35 ILCS 120/2-10)
| ||||||
4 | Sec. 2-10. Rate of tax. Unless otherwise provided in this | ||||||
5 | Section,
the tax imposed by this Act is at the rate of 6.25% of | ||||||
6 | gross receipts
from sales of tangible personal property made in | ||||||
7 | the course of business.
| ||||||
8 | Beginning on July 1, 2000 and through December 31, 2000, | ||||||
9 | with respect to
motor fuel, as defined in Section 1.1 of the | ||||||
10 | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | ||||||
11 | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| ||||||
12 | Beginning on August 6, 2010 through August 15, 2010, and | ||||||
13 | each year
thereafter beginning on the first Friday in August | ||||||
14 | and ending on the Sunday occurring 9 days
thereafter, with | ||||||
15 | respect to sales tax holiday items as defined in Section 2-8 of | ||||||
16 | this Act, the
tax is imposed at the rate of 1.25%. The reduced | ||||||
17 | rate of tax for sales tax holiday items as
defined in Section | ||||||
18 | 2-8 of this Act shall not be authorized for periods after | ||||||
19 | August 16,
2013. | ||||||
20 | Within 14 days after the effective date of this amendatory | ||||||
21 | Act of the 91st
General Assembly, each retailer of motor fuel | ||||||
22 | and gasohol shall cause the
following notice to be posted in a | ||||||
23 | prominently visible place on each retail
dispensing device that | ||||||
24 | is used to dispense motor
fuel or gasohol in the State of | ||||||
25 | Illinois: "As of July 1, 2000, the State of
Illinois has |
| |||||||
| |||||||
1 | eliminated the State's share of sales tax on motor fuel and
| ||||||
2 | gasohol through December 31, 2000. The price on this pump | ||||||
3 | should reflect the
elimination of the tax." The notice shall be | ||||||
4 | printed in bold print on a sign
that is no smaller than 4 | ||||||
5 | inches by 8 inches. The sign shall be clearly
visible to | ||||||
6 | customers. Any retailer who fails to post or maintain a | ||||||
7 | required
sign through December 31, 2000 is guilty of a petty | ||||||
8 | offense for which the fine
shall be $500 per day per each | ||||||
9 | retail premises where a violation occurs.
| ||||||
10 | With respect to gasohol, as defined in the Use Tax Act, the | ||||||
11 | tax imposed
by this Act applies to (i) 70% of the proceeds of | ||||||
12 | sales made on or after
January 1, 1990, and before July 1, | ||||||
13 | 2003, (ii) 80% of the proceeds of
sales made on or after July | ||||||
14 | 1, 2003 and on or before December 31,
2013, and (iii) 100% of | ||||||
15 | the proceeds of sales
made thereafter.
If, at any time, | ||||||
16 | however, the tax under this Act on sales of gasohol, as
defined | ||||||
17 | in
the Use Tax Act, is imposed at the rate of 1.25%, then the
| ||||||
18 | tax imposed by this Act applies to 100% of the proceeds of | ||||||
19 | sales of gasohol
made during that time.
| ||||||
20 | With respect to majority blended ethanol fuel, as defined | ||||||
21 | in the Use Tax Act,
the
tax
imposed by this Act does not apply | ||||||
22 | to the proceeds of sales made on or after
July 1, 2003 and on or | ||||||
23 | before December 31, 2013 but applies to 100% of the
proceeds of | ||||||
24 | sales made thereafter.
| ||||||
25 | With respect to biodiesel blends, as defined in the Use Tax | ||||||
26 | Act, with no less
than 1% and no
more than 10% biodiesel, the |
| |||||||
| |||||||
1 | tax imposed by this Act
applies to (i) 80% of the proceeds of | ||||||
2 | sales made on or after July 1, 2003
and on or before December | ||||||
3 | 31, 2013 and (ii) 100% of the
proceeds of sales made | ||||||
4 | thereafter.
If, at any time, however, the tax under this Act on | ||||||
5 | sales of biodiesel blends,
as
defined in the Use Tax Act, with | ||||||
6 | no less than 1% and no more than 10% biodiesel
is imposed at | ||||||
7 | the rate of 1.25%, then the
tax imposed by this Act applies to | ||||||
8 | 100% of the proceeds of sales of biodiesel
blends with no less | ||||||
9 | than 1% and no more than 10% biodiesel
made
during that time.
| ||||||
10 | With respect to 100% biodiesel, as defined in the Use Tax | ||||||
11 | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| ||||||
12 | more than 10% but no more than 99% biodiesel, the tax imposed | ||||||
13 | by this Act
does not apply to the proceeds of sales made on or | ||||||
14 | after July 1, 2003
and on or before December 31, 2013 but | ||||||
15 | applies to 100% of the
proceeds of sales made thereafter.
| ||||||
16 | With respect to food for human consumption that is to be | ||||||
17 | consumed off the
premises where it is sold (other than | ||||||
18 | alcoholic beverages, soft drinks, and
food that has been | ||||||
19 | prepared for immediate consumption) and prescription and
| ||||||
20 | nonprescription medicines, drugs, medical appliances, | ||||||
21 | modifications to a motor
vehicle for the purpose of rendering | ||||||
22 | it usable by a disabled person, and
insulin, urine testing | ||||||
23 | materials, syringes, and needles used by diabetics, for
human | ||||||
24 | use, the tax is imposed at the rate of 1%. For the purposes of | ||||||
25 | this
Section, until September 1, 2009: the term "soft drinks" | ||||||
26 | means any complete, finished, ready-to-use,
non-alcoholic |
| |||||||
| |||||||
1 | drink, whether carbonated or not, including but not limited to
| ||||||
2 | soda water, cola, fruit juice, vegetable juice, carbonated | ||||||
3 | water, and all other
preparations commonly known as soft drinks | ||||||
4 | of whatever kind or description that
are contained in any | ||||||
5 | closed or sealed bottle, can, carton, or container,
regardless | ||||||
6 | of size; but "soft drinks" does not include coffee, tea, | ||||||
7 | non-carbonated
water, infant formula, milk or milk products as | ||||||
8 | defined in the Grade A
Pasteurized Milk and Milk Products Act, | ||||||
9 | or drinks containing 50% or more
natural fruit or vegetable | ||||||
10 | juice.
| ||||||
11 | Notwithstanding any other provisions of this
Act, | ||||||
12 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
13 | beverages that contain natural or artificial sweeteners. "Soft | ||||||
14 | drinks" do not include beverages that contain milk or milk | ||||||
15 | products, soy, rice or similar milk substitutes, or greater | ||||||
16 | than 50% of vegetable or fruit juice by volume. | ||||||
17 | Until August 1, 2009, and notwithstanding any other | ||||||
18 | provisions of this
Act, "food for human consumption that is to | ||||||
19 | be consumed off the premises where
it is sold" includes all | ||||||
20 | food sold through a vending machine, except soft
drinks , and | ||||||
21 | food products that are dispensed hot from a vending machine,
| ||||||
22 | regardless of the location of the vending machine. Beginning | ||||||
23 | August 1, 2009, and notwithstanding any other provisions of | ||||||
24 | this Act, "food for human consumption that is to be consumed | ||||||
25 | off the premises where it is sold" includes all food sold | ||||||
26 | through a vending machine, except soft drinks, candy, and food |
| |||||||
| |||||||
1 | products that are dispensed hot from a vending machine, | ||||||
2 | regardless of the location of the vending machine.
| ||||||
3 | Notwithstanding any other provisions of this
Act, | ||||||
4 | beginning September 1, 2009, "food for human consumption that | ||||||
5 | is to be consumed off the premises where
it is sold" does not | ||||||
6 | include candy. For purposes of this Section, "candy" means a | ||||||
7 | preparation of sugar, honey, or other natural or artificial | ||||||
8 | sweeteners in combination with chocolate, fruits, nuts or other | ||||||
9 | ingredients or flavorings in the form of bars, drops, or | ||||||
10 | pieces. "Candy" does not include any preparation that contains | ||||||
11 | flour or requires refrigeration. | ||||||
12 | Notwithstanding any other provisions of this
Act, | ||||||
13 | beginning September 1, 2009, "nonprescription medicines and | ||||||
14 | drugs" does not include grooming and hygiene products. For | ||||||
15 | purposes of this Section, "grooming and hygiene products" | ||||||
16 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
17 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | ||||||
18 | lotions and screens, unless those products are available by | ||||||
19 | prescription only, regardless of whether the products meet the | ||||||
20 | definition of "over-the-counter-drugs". For the purposes of | ||||||
21 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
22 | use that contains a label that identifies the product as a drug | ||||||
23 | as required by 21 C.F.R. ยง 201.66. The "over-the-counter-drug" | ||||||
24 | label includes: | ||||||
25 | (A) A "Drug Facts" panel; or | ||||||
26 | (B) A statement of the "active ingredient(s)" with a |
| |||||||
| |||||||
1 | list of those ingredients contained in the compound, | ||||||
2 | substance or preparation.
| ||||||
3 | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | ||||||
4 | eff. 7-13-09; revised 8-20-09.)
| ||||||
5 | Section 99. Effective date. This Act takes effect upon | ||||||
6 | becoming law.
|