99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB0230

 

Introduced , by Rep. Jack D. Franks

 

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

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that motor fuel is exempt from taxation under the Acts. Effective immediately.


LRB099 04105 HLH 24124 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0230LRB099 04105 HLH 24124 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 functionally
14used or consumed is a by-product or waste product that has been
15refined, manufactured, or produced from property purchased at
16retail, then the tax is imposed on the lower of the fair market
17value, if any, of the specific property so used in this State
18or on the selling price of the property purchased at retail.
19For purposes of this Section "fair market value" means the
20price at which property would change hands between a willing
21buyer and a willing seller, neither being under any compulsion
22to buy or sell and both having reasonable knowledge of the
23relevant facts. The fair market value shall be established by

 

 

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1Illinois sales by the taxpayer of the same property as that
2functionally used or consumed, or if there are no such sales by
3the taxpayer, then comparable sales or purchases of property of
4like 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 and , (ii) 80% of the
15proceeds of sales made on or after July 1, 2003 and on or
16before June 30, 2015 December 31, 2018, and (iii) 100% of the
17proceeds of sales made thereafter. If, at any time, however,
18the tax under this Act on sales of gasohol is imposed at the
19rate of 1.25%, then the tax imposed by this Act applies to 100%
20of the proceeds of sales 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,
242018 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 June 30, 2015 December 31, 2018 and (ii)
4100% of the proceeds of sales made thereafter. If, at any time,
5however, the tax under this Act on sales of biodiesel blends
6with no less than 1% and no more than 10% biodiesel is imposed
7at the rate of 1.25%, then the tax imposed by this Act applies
8to 100% of the proceeds of sales of biodiesel blends with no
9less than 1% and no more than 10% biodiesel made during that
10time.
11    With respect to 100% biodiesel and biodiesel blends with
12more than 10% but no more than 99% biodiesel, the tax imposed
13by this Act does not apply to the proceeds of sales made on or
14after July 1, 2003 and on or before December 31, 2018 but
15applies to 100% of the proceeds of sales made thereafter.
16    Beginning on July 1, 2015, the use of motor fuel, as
17defined in Section 1.1 of the Motor Fuel Tax Act, is exempt
18from the tax imposed by this Act. For the purposes of this
19exemption, "motor fuel" includes, but is not limited to,
20gasohol, majority blended ethanol fuel, biodiesel, and
21biodiesel blends. This paragraph is exempt from the provisions
22of Section 3-90.
23    With respect to food for human consumption that is to be
24consumed off the premises where it is sold (other than
25alcoholic beverages, soft drinks, and food that has been
26prepared for immediate consumption) and prescription and

 

 

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

 

 

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

 

 

HB0230- 6 -LRB099 04105 HLH 24124 b

1definition of "over-the-counter-drugs". For the purposes of
2this paragraph, "over-the-counter-drug" means a drug for human
3use that contains a label that identifies the product as a drug
4as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
5label includes:
6        (A) A "Drug Facts" panel; or
7        (B) A statement of the "active ingredient(s)" with a
8    list of those ingredients contained in the compound,
9    substance or preparation.
10    Beginning on the effective date of this amendatory Act of
11the 98th General Assembly, "prescription and nonprescription
12medicines and drugs" includes medical cannabis purchased from a
13registered dispensing organization under the Compassionate Use
14of Medical Cannabis Pilot Program Act.
15    If the property that is purchased at retail from a retailer
16is acquired outside Illinois and used outside Illinois before
17being brought to Illinois for use here and is taxable under
18this Act, the "selling price" on which the tax is computed
19shall be reduced by an amount that represents a reasonable
20allowance for depreciation for the period of prior out-of-state
21use.
22(Source: P.A. 97-636, eff. 6-1-12; 98-122, eff. 1-1-14.)
 
23    Section 10. The Service Use Tax Act is amended by changing
24Section 3-10 as follows:
 

 

 

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1    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
2    Sec. 3-10. Rate of tax. Unless otherwise provided in this
3Section, the tax imposed by this Act is at the rate of 6.25% of
4the selling price of tangible personal property transferred as
5an incident to the sale of service, but, for the purpose of
6computing this tax, in no event shall the selling price be less
7than the cost price of the property to the serviceman.
8    Beginning on July 1, 2000 and through December 31, 2000,
9with respect to motor fuel, as defined in Section 1.1 of the
10Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
11the Use Tax Act, the tax is imposed at the rate of 1.25%.
12    With respect to gasohol, as defined in the Use Tax Act, the
13tax imposed by this Act applies to (i) 70% of the selling price
14of property transferred as an incident to the sale of service
15on or after January 1, 1990, and before July 1, 2003 and , (ii)
1680% of the selling price of property transferred as an incident
17to the sale of service on or after July 1, 2003 and on or before
18June 30, 2015 December 31, 2018, and (iii) 100% of the selling
19price thereafter. If, at any time, however, the tax under this
20Act on sales of gasohol, as defined in the Use Tax Act, is
21imposed at the rate of 1.25%, then the tax imposed by this Act
22applies to 100% of the proceeds of sales of gasohol made during
23that time.
24    With respect to majority blended ethanol fuel, as defined
25in the Use Tax Act, the tax imposed by this Act does not apply
26to the selling price of property transferred as an incident to

 

 

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1the sale of service on or after July 1, 2003 and on or before
2December 31, 2018 but applies to 100% of the selling price
3thereafter.
4    With respect to biodiesel blends, as defined in the Use Tax
5Act, with no less than 1% and no more than 10% biodiesel, the
6tax imposed by this Act applies to (i) 80% of the selling price
7of property transferred as an incident to the sale of service
8on or after July 1, 2003 and on or before June 30, 2015
9December 31, 2018 and (ii) 100% of the proceeds of the selling
10price thereafter. If, at any time, however, the tax under this
11Act on sales of biodiesel blends, as defined in the Use Tax
12Act, with no less than 1% and no more than 10% biodiesel is
13imposed at the rate of 1.25%, then the tax imposed by this Act
14applies to 100% of the proceeds of sales of biodiesel blends
15with no less than 1% and no more than 10% biodiesel made during
16that time.
17    With respect to 100% biodiesel, as defined in the Use Tax
18Act, and biodiesel blends, as defined in the Use Tax Act, with
19more than 10% but no more than 99% biodiesel, the tax imposed
20by this Act does not apply to the proceeds of the selling price
21of property transferred as an incident to the sale of service
22on or after July 1, 2003 and on or before December 31, 2018 but
23applies to 100% of the selling price thereafter.
24    Beginning on July 1, 2015, the use of motor fuel, as
25defined in Section 1.1 of the Motor Fuel Tax Act, is exempt
26from the tax imposed by this Act. For the purposes of this

 

 

HB0230- 9 -LRB099 04105 HLH 24124 b

1exemption, "motor fuel" includes, but is not limited to,
2gasohol, majority blended ethanol fuel, biodiesel, and
3biodiesel blends. This paragraph is exempt from the provisions
4of Section 3-75.
5    At the election of any registered serviceman made for each
6fiscal year, sales of service in which the aggregate annual
7cost price of tangible personal property transferred as an
8incident to the sales of service is less than 35%, or 75% in
9the case of servicemen transferring prescription drugs or
10servicemen engaged in graphic arts production, of the aggregate
11annual total gross receipts from all sales of service, the tax
12imposed by this Act shall be based on the serviceman's cost
13price of the tangible personal property transferred as an
14incident to the sale of those services.
15    The tax shall be imposed at the rate of 1% on food prepared
16for immediate consumption and transferred incident to a sale of
17service subject to this Act or the Service Occupation Tax Act
18by an entity licensed under the Hospital Licensing Act, the
19Nursing Home Care Act, the ID/DD Community Care Act, the
20Specialized Mental Health Rehabilitation Act of 2013, or the
21Child Care Act of 1969. The tax shall also be imposed at the
22rate of 1% on food for human consumption that is to be consumed
23off the premises where it is sold (other than alcoholic
24beverages, soft drinks, and food that has been prepared for
25immediate consumption and is not otherwise included in this
26paragraph) and prescription and nonprescription medicines,

 

 

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

 

 

HB0230- 11 -LRB099 04105 HLH 24124 b

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

 

 

HB0230- 12 -LRB099 04105 HLH 24124 b

1use that contains a label that identifies the product as a drug
2as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
3label includes:
4        (A) A "Drug Facts" panel; or
5        (B) A statement of the "active ingredient(s)" with a
6    list of those ingredients contained in the compound,
7    substance or preparation.
8    Beginning on January 1, 2014 (the effective date of Public
9Act 98-122), "prescription and nonprescription medicines and
10drugs" includes medical cannabis purchased from a registered
11dispensing organization under the Compassionate Use of Medical
12Cannabis Pilot Program Act.
13    If the property that is acquired from a serviceman is
14acquired outside Illinois and used outside Illinois before
15being brought to Illinois for use here and is taxable under
16this Act, the "selling price" on which the tax is computed
17shall be reduced by an amount that represents a reasonable
18allowance for depreciation for the period of prior out-of-state
19use.
20(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-636,
21eff. 6-1-12; 98-104, eff. 7-22-13; 98-122, eff. 1-1-14; 98-756,
22eff. 7-16-14.)
 
23    Section 15. The Service Occupation Tax Act is amended by
24changing Section 3-10 as follows:
 

 

 

HB0230- 13 -LRB099 04105 HLH 24124 b

1    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
2    Sec. 3-10. Rate of tax. Unless otherwise provided in this
3Section, the tax imposed by this Act is at the rate of 6.25% of
4the "selling price", as defined in Section 2 of the Service Use
5Tax Act, of the tangible personal property. For the purpose of
6computing this tax, in no event shall the "selling price" be
7less than the cost price to the serviceman of the tangible
8personal property transferred. The selling price of each item
9of tangible personal property transferred as an incident of a
10sale of service may be shown as a distinct and separate item on
11the serviceman's billing to the service customer. If the
12selling price is not so shown, the selling price of the
13tangible personal property is deemed to be 50% of the
14serviceman's entire billing to the service customer. When,
15however, a serviceman contracts to design, develop, and produce
16special order machinery or equipment, the tax imposed by this
17Act shall be based on the serviceman's cost price of the
18tangible personal property transferred incident to the
19completion of the contract.
20    Beginning on July 1, 2000 and through December 31, 2000,
21with respect to motor fuel, as defined in Section 1.1 of the
22Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
23the Use Tax Act, the tax is imposed at the rate of 1.25%.
24    With respect to gasohol, as defined in the Use Tax Act, the
25tax imposed by this Act shall apply to (i) 70% of the cost
26price of property transferred as an incident to the sale of

 

 

HB0230- 14 -LRB099 04105 HLH 24124 b

1service on or after January 1, 1990, and before July 1, 2003
2and , (ii) 80% of the selling price of property transferred as
3an incident to the sale of service on or after July 1, 2003 and
4on or before June 30, 2015 December 31, 2018, and (iii) 100% of
5the cost price thereafter. If, at any time, however, the tax
6under this Act on sales of gasohol, as defined in the Use Tax
7Act, is imposed at the rate of 1.25%, then the tax imposed by
8this Act applies to 100% of the proceeds of sales of gasohol
9made during that time.
10    With respect to majority blended ethanol fuel, as defined
11in the Use Tax Act, the tax imposed by this Act does not apply
12to the selling price of property transferred as an incident to
13the sale of service on or after July 1, 2003 and on or before
14December 31, 2018 but applies to 100% of the selling price
15thereafter.
16    With respect to biodiesel blends, as defined in the Use Tax
17Act, with no less than 1% and no more than 10% biodiesel, the
18tax imposed by this Act applies to (i) 80% of the selling price
19of property transferred as an incident to the sale of service
20on or after July 1, 2003 and on or before June 30, 2015
21December 31, 2018 and (ii) 100% of the proceeds of the selling
22price thereafter. If, at any time, however, the tax under this
23Act on sales of biodiesel blends, as defined in the Use Tax
24Act, with no less than 1% and no more than 10% biodiesel is
25imposed at the rate of 1.25%, then the tax imposed by this Act
26applies to 100% of the proceeds of sales of biodiesel blends

 

 

HB0230- 15 -LRB099 04105 HLH 24124 b

1with no less than 1% and no more than 10% biodiesel made during
2that time.
3    With respect to 100% biodiesel, as defined in the Use Tax
4Act, and biodiesel blends, as defined in the Use Tax Act, with
5more than 10% but no more than 99% biodiesel material, the tax
6imposed by this Act does not apply to the proceeds of the
7selling price of property transferred as an incident to the
8sale of service on or after July 1, 2003 and on or before
9December 31, 2018 but applies to 100% of the selling price
10thereafter.
11    Beginning on July 1, 2015, gross receipts from the sale of
12motor fuel, as defined in Section 1.1 of the Motor Fuel Tax
13Act, are exempt from the tax imposed by this Act. For the
14purposes of this exemption, "motor fuel" includes, but is not
15limited to, gasohol, majority blended ethanol fuel, biodiesel,
16and biodiesel blends. This paragraph is exempt from the
17provisions of Section 3-55.
18    At the election of any registered serviceman made for each
19fiscal year, sales of service in which the aggregate annual
20cost price of tangible personal property transferred as an
21incident to the sales of service is less than 35%, or 75% in
22the case of servicemen transferring prescription drugs or
23servicemen engaged in graphic arts production, of the aggregate
24annual total gross receipts from all sales of service, the tax
25imposed by this Act shall be based on the serviceman's cost
26price of the tangible personal property transferred incident to

 

 

HB0230- 16 -LRB099 04105 HLH 24124 b

1the sale of those services.
2    The tax shall be imposed at the rate of 1% on food prepared
3for immediate consumption and transferred incident to a sale of
4service subject to this Act or the Service Occupation Tax Act
5by an entity licensed under the Hospital Licensing Act, the
6Nursing Home Care Act, the ID/DD Community Care Act, the
7Specialized Mental Health Rehabilitation Act of 2013, or the
8Child Care Act of 1969. The tax shall also be imposed at the
9rate of 1% on food for human consumption that is to be consumed
10off the premises where it is sold (other than alcoholic
11beverages, soft drinks, and food that has been prepared for
12immediate consumption and is not otherwise included in this
13paragraph) and prescription and nonprescription medicines,
14drugs, medical appliances, modifications to a motor vehicle for
15the purpose of rendering it usable by a disabled person, and
16insulin, urine testing materials, syringes, and needles used by
17diabetics, for human use. 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
24can, carton, or container, regardless of size; but "soft
25drinks" does not include coffee, tea, non-carbonated water,
26infant formula, milk or milk products as defined in the Grade A

 

 

HB0230- 17 -LRB099 04105 HLH 24124 b

1Pasteurized Milk and Milk Products Act, or drinks containing
250% 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 other

 

 

HB0230- 18 -LRB099 04105 HLH 24124 b

1ingredients 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 January 1, 2014 (the effective date of Public
22Act 98-122), "prescription and nonprescription medicines and
23drugs" includes medical cannabis purchased from a registered
24dispensing organization under the Compassionate Use of Medical
25Cannabis Pilot Program Act.
26(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-636,

 

 

HB0230- 19 -LRB099 04105 HLH 24124 b

1eff. 6-1-12; 98-104, eff. 7-22-13; 98-122, eff. 1-1-14; 98-756,
2eff. 7-16-14.)
 
3    Section 20. The Retailers' Occupation Tax Act is amended by
4changing Sections 2-10 and 2d as follows:
 
5    (35 ILCS 120/2-10)
6    Sec. 2-10. Rate of tax. Unless otherwise provided in this
7Section, the tax imposed by this Act is at the rate of 6.25% of
8gross receipts from sales of tangible personal property made in
9the course of business.
10    Beginning on July 1, 2000 and through December 31, 2000,
11with respect to motor fuel, as defined in Section 1.1 of the
12Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
13the Use Tax Act, the tax is imposed at the rate of 1.25%.
14    Beginning on August 6, 2010 through August 15, 2010, with
15respect to sales tax holiday items as defined in Section 2-8 of
16this Act, the tax is imposed at the rate of 1.25%.
17    Within 14 days after the effective date of this amendatory
18Act of the 91st General Assembly, each retailer of motor fuel
19and gasohol shall cause the following notice to be posted in a
20prominently visible place on each retail dispensing device that
21is used to dispense motor fuel or gasohol in the State of
22Illinois: "As of July 1, 2000, the State of Illinois has
23eliminated the State's share of sales tax on motor fuel and
24gasohol through December 31, 2000. The price on this pump

 

 

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1should reflect the elimination of the tax." The notice shall be
2printed in bold print on a sign that is no smaller than 4
3inches by 8 inches. The sign shall be clearly visible to
4customers. Any retailer who fails to post or maintain a
5required sign through December 31, 2000 is guilty of a petty
6offense for which the fine shall be $500 per day per each
7retail premises where a violation occurs.
8    With respect to gasohol, as defined in the Use Tax Act, the
9tax imposed by this Act applies to (i) 70% of the proceeds of
10sales made on or after January 1, 1990, and before July 1, 2003
11and , (ii) 80% of the proceeds of sales made on or after July 1,
122003 and on or before June 30, 2015 December 31, 2018, and
13(iii) 100% of the proceeds of sales made thereafter. If, at any
14time, however, the tax under this Act on sales of gasohol, as
15defined in the Use Tax Act, is imposed at the rate of 1.25%,
16then the tax imposed by this Act applies to 100% of the
17proceeds 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 proceeds of sales made on or after July 1, 2003 and on or
21before December 31, 2018 but applies to 100% of the proceeds of
22sales made thereafter.
23    With respect to biodiesel blends, as defined in the Use Tax
24Act, with no less than 1% and no more than 10% biodiesel, the
25tax imposed by this Act applies to (i) 80% of the proceeds of
26sales made on or after July 1, 2003 and on or before June 30,

 

 

HB0230- 21 -LRB099 04105 HLH 24124 b

12015 December 31, 2018 and (ii) 100% of the proceeds of sales
2made thereafter. If, at any time, however, the tax under this
3Act on sales of biodiesel blends, as defined in the Use Tax
4Act, with no less than 1% and no more than 10% biodiesel is
5imposed at the rate of 1.25%, then the tax imposed by this Act
6applies to 100% of the proceeds of sales of biodiesel blends
7with no less than 1% and no more than 10% biodiesel made during
8that time.
9    With respect to 100% biodiesel, as defined in the Use Tax
10Act, and biodiesel blends, as defined in the Use Tax Act, 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, 2018 but
14applies to 100% of the proceeds of sales made thereafter.
15    Beginning on July 1, 2015, gross receipts from the sale of
16motor fuel, as defined in Section 1.1 of the Motor Fuel Tax
17Act, are exempt from the tax imposed by this Act. For the
18purposes of this exemption, "motor fuel" includes, but is not
19limited to, gasohol, majority blended ethanol fuel, biodiesel,
20and biodiesel blends. This paragraph is exempt from the
21provisions of Section 2-70.
22    With respect to food for human consumption that is to be
23consumed off the premises where it is sold (other than
24alcoholic beverages, soft drinks, and food that has been
25prepared for immediate consumption) and prescription and
26nonprescription medicines, drugs, medical appliances,

 

 

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1modifications to a motor vehicle for the purpose of rendering
2it usable by a disabled person, and insulin, urine testing
3materials, syringes, and needles used by diabetics, for human
4use, the tax is imposed at the rate of 1%. For the purposes of
5this Section, until September 1, 2009: the term "soft drinks"
6means any complete, finished, ready-to-use, non-alcoholic
7drink, whether carbonated or not, including but not limited to
8soda water, cola, fruit juice, vegetable juice, carbonated
9water, and all other preparations commonly known as soft drinks
10of whatever kind or description that are contained in any
11closed or sealed bottle, can, carton, or container, regardless
12of size; but "soft drinks" does not include coffee, tea,
13non-carbonated water, infant formula, milk or milk products as
14defined in the Grade A Pasteurized Milk and Milk Products Act,
15or drinks containing 50% or more natural fruit or vegetable
16juice.
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 other
15ingredients 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

 

 

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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 a
12registered dispensing organization under the Compassionate Use
13of Medical Cannabis Pilot Program Act.
14(Source: P.A. 97-636, eff. 6-1-12; 98-122, eff. 1-1-14.)
 
15    (35 ILCS 120/2d)  (from Ch. 120, par. 441d)
16    Sec. 2d. Tax prepayment by motor fuel retailer.
17    (a) Until July 1, 2015, any Any person engaged in the
18business of selling motor fuel at retail, as defined in the
19Motor Fuel Tax Law, and who is not a licensed distributor or
20supplier, as defined in the Motor Fuel Tax Law, shall prepay to
21his or her distributor, supplier, or other reseller of motor
22fuel a portion of the tax imposed by this Act if the
23distributor, supplier, or other reseller of motor fuel is
24registered under Section 2a or Section 2c of this Act. The
25prepayment requirement provided for in this Section does not

 

 

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1apply to liquid propane gas.
2    (b) Beginning on July 1, 2000 and through December 31,
32000, the Retailers' Occupation Tax paid to the distributor,
4supplier, or other reseller shall be an amount equal to $0.01
5per gallon of the motor fuel, except gasohol as defined in
6Section 2-10 of this Act which shall be an amount equal to
7$0.01 per gallon, purchased from the distributor, supplier, or
8other reseller.
9    (c) Before July 1, 2000 and then beginning on January 1,
102001 and through June 30, 2003, the Retailers' Occupation Tax
11paid to the distributor, supplier, or other reseller shall be
12an amount equal to $0.04 per gallon of the motor fuel, except
13gasohol as defined in Section 2-10 of this Act which shall be
14an amount equal to $0.03 per gallon, purchased from the
15distributor, supplier, or other reseller.
16    (d) Beginning July 1, 2003 and through December 31, 2010,
17the Retailers' Occupation Tax paid to the distributor,
18supplier, or other reseller shall be an amount equal to $0.06
19per gallon of the motor fuel, except gasohol as defined in
20Section 2-10 of this Act which shall be an amount equal to
21$0.05 per gallon, purchased from the distributor, supplier, or
22other reseller.
23    (e) Beginning on January 1, 2011 and until July 1, 2015
24thereafter, the Retailers' Occupation Tax paid to the
25distributor, supplier, or other reseller shall be at the rate
26established by the Department under this subsection. The rate

 

 

HB0230- 26 -LRB099 04105 HLH 24124 b

1shall be established by the Department on January 1 and July 1
2of each year using the average selling price, as defined in
3Section 1 of this Act, per gallon of motor fuel sold in the
4State during the previous 6 months and multiplying that amount
5by 6.25% to determine the cents per gallon rate. In the case of
6biodiesel blends, as defined in Section 3-42 of the Use Tax
7Act, with no less than 1% and no more than 10% biodiesel, and
8in the case of gasohol, as defined in Section 3-40 of the Use
9Tax Act, the rate shall be 80% of the rate established by the
10Department under this subsection for motor fuel. The Department
11shall provide persons subject to this Section notice of the
12rate established under this subsection at least 20 days prior
13to each January 1 and July 1. Publication of the established
14rate on the Department's internet website shall constitute
15sufficient notice under this Section. The Department may use
16data derived from independent surveys conducted or accumulated
17by third parties to determine the average selling price per
18gallon of motor fuel sold in the State.
19    (f) Any person engaged in the business of selling motor
20fuel at retail shall be entitled to a credit against tax due
21under this Act in an amount equal to the tax paid to the
22distributor, supplier, or other reseller.
23    (g) Every distributor, supplier, or other reseller
24registered as provided in Section 2a or Section 2c of this Act
25shall remit the prepaid tax on all motor fuel that is due from
26any person engaged in the business of selling at retail motor

 

 

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