99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB1948

 

Introduced 2/20/2015, by Sen. Andy Manar

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 689/15
20 ILCS 689/20
35 ILCS 105/3-10
35 ILCS 105/3-40  from Ch. 120, par. 439.3-40
35 ILCS 105/3-44
35 ILCS 105/3-44.3 new
35 ILCS 110/3-10  from Ch. 120, par. 439.33-10
35 ILCS 115/3-10  from Ch. 120, par. 439.103-10
35 ILCS 120/2-10

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, on or after July 1, 2015 and on or before December 31, 2018, the taxes imposed under the Acts apply to 90% of the proceeds of sales of gasohol and 80% of the proceeds of sales of mid-range ethanol blends. Amends the Illinois Renewable Fuels Development Program Act. Provides that grants may be awarded for the following programs: a next generation renewable fuels program, a majority blended ethanol and blender pump infrastructure program, and a research and development program for sustainable corn production and corn-based renewable fuel production. Sets forth the maximum aggregate amount of grants that may be awarded under each program. Effective immediately.


LRB099 08471 HLH 28627 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1948LRB099 08471 HLH 28627 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 Illinois Renewable Fuels Development
5Program Act is amended by changing Sections 15 and 20 as
6follows:
 
7    (20 ILCS 689/15)
8    Sec. 15. Illinois Renewable Fuels Development Program.
9    (a) The Department must develop and administer the Illinois
10Renewable Fuels Development Program to assist in the
11construction, modification, alteration, or retrofitting of
12renewable fuel plants in Illinois. The recipient of a grant
13under this Section must:
14        (1) be constructing, modifying, altering, or
15    retrofitting a plant in the State of Illinois;
16        (2) be constructing, modifying, altering, or
17    retrofitting a plant that has annual production capacity of
18    no less than 5,000,000 gallons of renewable fuel per year;
19    and
20        (3) enter into a project labor agreement, whenever
21    practicable, as prescribed by Section 25 of this Act.
22    (b) Grant applications must be made on forms provided by
23and in accordance with procedures established by the

 

 

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1Department.
2    (c) The Department must give preference to applicants that
3use Illinois agricultural products in the production of
4renewable fuel at the plant for which the grant is being
5requested.
6(Source: P.A. 96-140, eff. 1-1-10.)
 
7    (20 ILCS 689/20)
8    Sec. 20. Grants. Subject to appropriation, the Director is
9authorized to award grants to eligible applicants for the
10following programs.
11        (1) Next generation ethanol/renewable fuels. Eligible
12    next generation ethanol/renewable fuel projects include
13    those renewable fuel facilities installing new
14    technologies to reduce water and energy usage as well as
15    technologies to reduce greenhouse gas emissions. Projects
16    that will result in more efficient processes, new
17    co-products, fuels and chemicals are also eligible for
18    funding. The annual aggregate amount of grants awarded
19    under this item (1) for next generation ethanol/renewable
20    fuel projects shall not exceed: $5,000,000 in Fiscal Year
21    2016, $10,000,000 in Fiscal Year 2017, and $10,000,000 in
22    Fiscal Year 2018.
23        (2) Majority blended ethanol and blender pump
24    infrastructure program. The Department shall establish a
25    grant program to provide funds for the installation of

 

 

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1    majority blended ethanol and blender pump fueling
2    facilities. The annual aggregate amount of grants awarded
3    under this item (2) shall not exceed: $15,000,000 in Fiscal
4    Year 2016, $10,000,000 in Fiscal Year 2017, and $10,000,000
5    in Fiscal Year 2018.
6        (3) Research and development program for sustainable
7    corn production and corn-based renewable fuel production.
8    The Department shall establish a grant program to provide
9    funds for research and development projects to reduce the
10    carbon footprint of corn based renewable fuels through new
11    co-products, new process technologies, and new fuels. The
12    Department shall also establish a grant program to fund
13    research on increasing the sustainability of corn
14    production through better nitrogen utilization, new best
15    management practices for improved soil health, water
16    conservation, and reduced environmental concerns. Eligible
17    projects include those that will increase corn
18    productivity with lower inputs and less risk. The annual
19    aggregate amount of grants awarded under this item (3)
20    shall not exceed: $5,000,000 in Fiscal Year 2016,
21    $5,000,000 in Fiscal Year 2017, and $5,000,000 in Fiscal
22    Year 2018.
23The annual aggregate amount of grants awarded shall not exceed
24$20,000,000, except that this amount does not include amounts,
25up to $4,000,000 per grant, that may be awarded to each
26eligible applicant who installs advanced technologies for

 

 

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1water usage, carbon footprint reduction, and other blending
2improvements designed to optimize processes at the applicant's
3renewable fuels facility.
4(Source: P.A. 96-173, eff. 8-10-09.)
 
5    Section 10. The Use Tax Act is amended by changing Sections
63-10, 3-40, and 3-44 and by adding Section 3-44.3 as follows:
 
7    (35 ILCS 105/3-10)
8    Sec. 3-10. Rate of tax. Unless otherwise provided in this
9Section, the tax imposed by this Act is at the rate of 6.25% of
10either the selling price or the fair market value, if any, of
11the tangible personal property. In all cases where property
12functionally used or consumed is the same as the property that
13was purchased at retail, then the tax is imposed on the selling
14price of the property. In all cases where property functionally
15used or consumed is a by-product or waste product that has been
16refined, manufactured, or produced from property purchased at
17retail, then the tax is imposed on the lower of the fair market
18value, if any, of the specific property so used in this State
19or on the selling price of the property purchased at retail.
20For purposes of this Section "fair market value" means the
21price at which property would change hands between a willing
22buyer and a willing seller, neither being under any compulsion
23to buy or sell and both having reasonable knowledge of the
24relevant 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, (ii) 80% of the
15proceeds of sales made on or after July 1, 2003 and on or
16before June 30, 2015, (iii) 90% of the proceeds of sales made
17on or after July 1, 2015 and on or before December 31, 2018,
18and (iv) (iii) 100% of the proceeds of sales made thereafter.
19If, at any time, however, the tax under this Act on sales of
20gasohol is imposed at the rate of 1.25%, then the tax imposed
21by this Act applies to 100% of the proceeds of sales of gasohol
22made during that time.
23    With respect to mid-range ethanol blends, the tax imposed
24by this Act applies to (i) 80% of the proceeds of sales made on
25or after July 1, 2015 and on or before December 31, 2018 and
26(ii) 100% of the proceeds of sales made thereafter. If, at any

 

 

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1time, however, the tax under this Act on sales of mid-range
2ethanol blends is imposed at the rate of 1.25%, then the tax
3imposed by this Act applies to 100% of the proceeds of sales of
4mid-range ethanol blends made during that time.
5    With respect to majority blended ethanol fuel, the tax
6imposed by this Act does not apply to the proceeds of sales
7made on or after July 1, 2003 and on or before December 31,
82018 but applies to 100% of the proceeds of sales made
9thereafter.
10    With respect to biodiesel blends with no less than 1% and
11no more than 10% biodiesel, the tax imposed by this Act applies
12to (i) 80% of the proceeds of sales made on or after July 1,
132003 and on or before December 31, 2018 and (ii) 100% of the
14proceeds of sales made thereafter. If, at any time, however,
15the tax under this Act on sales of biodiesel blends with no
16less than 1% and no more than 10% biodiesel is imposed at the
17rate of 1.25%, then the tax imposed by this Act applies to 100%
18of the proceeds of sales of biodiesel blends with no less than
191% and no more than 10% biodiesel made during that time.
20    With respect to 100% biodiesel and biodiesel blends with
21more than 10% but no more than 99% biodiesel, the tax imposed
22by this Act does not apply to the proceeds of sales made on or
23after July 1, 2003 and on or before December 31, 2018 but
24applies to 100% of the proceeds of sales made thereafter.
25    With respect to food for human consumption that is to be
26consumed off the premises where it is sold (other than

 

 

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

 

 

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

 

 

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1lotions and screens, unless those products are available by
2prescription only, regardless of whether the products meet the
3definition of "over-the-counter-drugs". For the purposes of
4this paragraph, "over-the-counter-drug" means a drug for human
5use that contains a label that identifies the product as a drug
6as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
7label 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    Beginning on the effective date of this amendatory Act of
13the 98th General Assembly, "prescription and nonprescription
14medicines and drugs" includes medical cannabis purchased from a
15registered dispensing organization under the Compassionate Use
16of Medical Cannabis Pilot Program Act.
17    If the property that is purchased at retail from a retailer
18is acquired outside Illinois and used outside Illinois before
19being brought to Illinois for use here and is taxable under
20this Act, the "selling price" on which the tax is computed
21shall be reduced by an amount that represents a reasonable
22allowance for depreciation for the period of prior out-of-state
23use.
24(Source: P.A. 97-636, eff. 6-1-12; 98-122, eff. 1-1-14.)
 
25    (35 ILCS 105/3-40)  (from Ch. 120, par. 439.3-40)

 

 

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1    Sec. 3-40. Gasohol. As used in this Act, "gasohol" means
2motor fuel that is a denatured ethanol and gasoline blend of
3denatured ethanol and gasoline that contains (i) no more than
41.25% water by weight and (ii) the maximum proportion of
5ethanol authorized by the United States Environmental
6Protection Agency under Section 211 of the Clean Air Act. The
7blend must contain 90% gasoline and 10% denatured ethanol. A
8maximum of one percent error factor in the amount of denatured
9ethanol used in the blend is allowable to compensate for
10blending equipment variations. Any person who knowingly sells
11or represents as gasohol any fuel that does not qualify as
12gasohol under this Act is guilty of a business offense and
13shall be fined not more than $100 for each day that the sale or
14representation takes place after notification from the
15Department of Agriculture that the fuel in question does not
16qualify as gasohol.
17(Source: P.A. 93-724, eff. 7-13-04.)
 
18    (35 ILCS 105/3-44)
19    Sec. 3-44. Majority blended ethanol fuel. "Majority
20blended ethanol fuel" means motor fuel that (i) contains not
21less than 51% and no more than 83% by volume ethanol, as
22specified in ASTM Standard DS798-11 and (ii) is capable of
23being used in the operation of flexible fuel vehicles. 70% and
24no more than 90% denatured ethanol and no less than 10% and no
25more than 30% gasoline.

 

 

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1(Source: P.A. 93-17, eff. 6-11-03.)
 
2    (35 ILCS 105/3-44.3 new)
3    Sec. 3-44.3. Mid-range ethanol blend. "Mid-range ethanol
4blend" means a blend of gasoline and denatured ethanol that
5contains not less than 20% but less than 51% denatured ethanol.
 
6    Section 15. The Service Use Tax Act is amended by changing
7Section 3-10 as follows:
 
8    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
9    Sec. 3-10. Rate of tax. Unless otherwise provided in this
10Section, the tax imposed by this Act is at the rate of 6.25% of
11the selling price of tangible personal property transferred as
12an incident to the sale of service, but, for the purpose of
13computing this tax, in no event shall the selling price be less
14than the cost price of the property to the serviceman.
15    Beginning on July 1, 2000 and through December 31, 2000,
16with respect to motor fuel, as defined in Section 1.1 of the
17Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
18the Use Tax Act, the tax is imposed at the rate of 1.25%.
19    With respect to gasohol, as defined in the Use Tax Act, the
20tax imposed by this Act applies to (i) 70% of the selling price
21of property transferred as an incident to the sale of service
22on or after January 1, 1990, and before July 1, 2003, (ii) 80%
23of 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
2June 30, 2015, (iii) 90% of the selling price of property
3transferred as an incident to the sale of service on or after
4July 1, 2015, and on or before December 31, 2018, and (iv)
5(iii) 100% of the selling price thereafter. If, at any time,
6however, the tax under this Act on sales of gasohol, as defined
7in the Use Tax Act, is imposed at the rate of 1.25%, then the
8tax imposed by this Act applies to 100% of the proceeds of
9sales of gasohol made during that time.
10    With respect to mid-range ethanol blends, as defined in the
11Use Tax Act, the tax imposed by this Act applies to (i) 80% of
12the selling price of property transferred as an incident to the
13sale of service on or after July 1, 2015 and on or before
14December 31, 2018 and (ii) 100% of the selling price
15thereafter. If, at any time, however, the tax under this Act on
16sales of mid-range ethanol blends is imposed at the rate of
171.25%, then the tax imposed by this Act applies to 100% of the
18proceeds of sales of mid-range ethanol blends made during that
19time.
20    With respect to majority blended ethanol fuel, as defined
21in the Use Tax Act, the tax imposed by this Act does not apply
22to the selling price of property transferred as an incident to
23the sale of service on or after July 1, 2003 and on or before
24December 31, 2018 but applies to 100% of the selling price
25thereafter.
26    With respect to biodiesel blends, as defined in the Use Tax

 

 

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1Act, with no less than 1% and no more than 10% biodiesel, the
2tax imposed by this Act applies to (i) 80% of the selling price
3of property transferred as an incident to the sale of service
4on or after July 1, 2003 and on or before December 31, 2018 and
5(ii) 100% of the proceeds of the selling price thereafter. If,
6at any time, however, the tax under this Act on sales of
7biodiesel blends, as defined in the Use Tax Act, with no less
8than 1% and no more than 10% biodiesel is imposed at the rate
9of 1.25%, then the tax imposed by this Act applies to 100% of
10the proceeds of sales of biodiesel blends with no less than 1%
11and no more than 10% biodiesel made during that time.
12    With respect to 100% biodiesel, as defined in the Use Tax
13Act, and biodiesel blends, as defined in the Use Tax Act, with
14more than 10% but no more than 99% biodiesel, the tax imposed
15by this Act does not apply to the proceeds of the selling price
16of property transferred as an incident to the sale of service
17on or after July 1, 2003 and on or before December 31, 2018 but
18applies to 100% of the selling price thereafter.
19    At the election of any registered serviceman made for each
20fiscal year, sales of service in which the aggregate annual
21cost price of tangible personal property transferred as an
22incident to the sales of service is less than 35%, or 75% in
23the case of servicemen transferring prescription drugs or
24servicemen engaged in graphic arts production, of the aggregate
25annual total gross receipts from all sales of service, the tax
26imposed by this Act shall be based on the serviceman's cost

 

 

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1price of the tangible personal property transferred as an
2incident to the sale of those services.
3    The tax shall be imposed at the rate of 1% on food prepared
4for immediate consumption and transferred incident to a sale of
5service subject to this Act or the Service Occupation Tax Act
6by an entity licensed under the Hospital Licensing Act, the
7Nursing Home Care Act, the ID/DD Community Care Act, the
8Specialized Mental Health Rehabilitation Act of 2013, or the
9Child Care Act of 1969. The tax shall also be imposed at the
10rate of 1% on food for human consumption that is to be consumed
11off the premises where it is sold (other than alcoholic
12beverages, soft drinks, and food that has been prepared for
13immediate consumption and is not otherwise included in this
14paragraph) and prescription and nonprescription medicines,
15drugs, medical appliances, modifications to a motor vehicle for
16the purpose of rendering it usable by a disabled person, and
17insulin, urine testing materials, syringes, and needles used by
18diabetics, for human use. For the purposes of this Section,
19until September 1, 2009: the term "soft drinks" means any
20complete, finished, ready-to-use, non-alcoholic drink, whether
21carbonated or not, including but not limited to soda water,
22cola, fruit juice, vegetable juice, carbonated water, and all
23other preparations commonly known as soft drinks of whatever
24kind or description that are contained in any closed or sealed
25bottle, can, carton, or container, regardless of size; but
26"soft drinks" does not include coffee, tea, non-carbonated

 

 

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1water, infant formula, milk or milk products as defined in the
2Grade A Pasteurized Milk and Milk Products Act, or drinks
3containing 50% or more natural fruit or vegetable juice.
4    Notwithstanding any other provisions of this Act,
5beginning September 1, 2009, "soft drinks" means non-alcoholic
6beverages that contain natural or artificial sweeteners. "Soft
7drinks" do not include beverages that contain milk or milk
8products, soy, rice or similar milk substitutes, or greater
9than 50% of vegetable or fruit juice by volume.
10    Until August 1, 2009, and notwithstanding any other
11provisions of this Act, "food for human consumption that is to
12be consumed off the premises where it is sold" includes all
13food sold through a vending machine, except soft drinks and
14food products that are dispensed hot from a vending machine,
15regardless of the location of the vending machine. Beginning
16August 1, 2009, and notwithstanding any other provisions of
17this Act, "food for human consumption that is to be consumed
18off the premises where it is sold" includes all food sold
19through a vending machine, except soft drinks, candy, and food
20products that are dispensed hot from a vending machine,
21regardless of the location of the vending machine.
22    Notwithstanding any other provisions of this Act,
23beginning September 1, 2009, "food for human consumption that
24is to be consumed off the premises where it is sold" does not
25include candy. For purposes of this Section, "candy" means a
26preparation of sugar, honey, or other natural or artificial

 

 

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1sweeteners in combination with chocolate, fruits, nuts or other
2ingredients or flavorings in the form of bars, drops, or
3pieces. "Candy" does not include any preparation that contains
4flour or requires refrigeration.
5    Notwithstanding any other provisions of this Act,
6beginning September 1, 2009, "nonprescription medicines and
7drugs" does not include grooming and hygiene products. For
8purposes of this Section, "grooming and hygiene products"
9includes, but is not limited to, soaps and cleaning solutions,
10shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
11lotions and screens, unless those products are available by
12prescription only, regardless of whether the products meet the
13definition of "over-the-counter-drugs". For the purposes of
14this paragraph, "over-the-counter-drug" means a drug for human
15use that contains a label that identifies the product as a drug
16as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
17label includes:
18        (A) A "Drug Facts" panel; or
19        (B) A statement of the "active ingredient(s)" with a
20    list of those ingredients contained in the compound,
21    substance or preparation.
22    Beginning on January 1, 2014 (the effective date of Public
23Act 98-122), "prescription and nonprescription medicines and
24drugs" includes medical cannabis purchased from a registered
25dispensing organization under the Compassionate Use of Medical
26Cannabis Pilot Program Act.

 

 

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1    If the property that is acquired from a serviceman is
2acquired outside Illinois and used outside Illinois before
3being brought to Illinois for use here and is taxable under
4this Act, the "selling price" on which the tax is computed
5shall be reduced by an amount that represents a reasonable
6allowance for depreciation for the period of prior out-of-state
7use.
8(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-636,
9eff. 6-1-12; 98-104, eff. 7-22-13; 98-122, eff. 1-1-14; 98-756,
10eff. 7-16-14.)
 
11    Section 20. The Service Occupation Tax Act is amended by
12changing Section 3-10 as follows:
 
13    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
14    Sec. 3-10. Rate of tax. Unless otherwise provided in this
15Section, the tax imposed by this Act is at the rate of 6.25% of
16the "selling price", as defined in Section 2 of the Service Use
17Tax Act, of the tangible personal property. For the purpose of
18computing this tax, in no event shall the "selling price" be
19less than the cost price to the serviceman of the tangible
20personal property transferred. The selling price of each item
21of tangible personal property transferred as an incident of a
22sale of service may be shown as a distinct and separate item on
23the serviceman's billing to the service customer. If the
24selling price is not so shown, the selling price of the

 

 

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1tangible personal property is deemed to be 50% of the
2serviceman's entire billing to the service customer. When,
3however, a serviceman contracts to design, develop, and produce
4special order machinery or equipment, the tax imposed by this
5Act shall be based on the serviceman's cost price of the
6tangible personal property transferred incident to the
7completion of the contract.
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 shall apply to (i) 70% of the cost
14price of property transferred as an incident to the sale of
15service on or after January 1, 1990, and before July 1, 2003,
16(ii) 80% of the selling price of property transferred as an
17incident to the sale of service on or after July 1, 2003 and on
18or before June 30, 2015, (iii) 90% of the selling price of
19property transferred as an incident to the sale of service on
20or after July 1, 2015, and on or before December 31, 2018, and
21(iv) (iii) 100% of the cost price thereafter. If, at any time,
22however, the tax under this Act on sales of gasohol, as defined
23in the Use Tax Act, is imposed at the rate of 1.25%, then the
24tax imposed by this Act applies to 100% of the proceeds of
25sales of gasohol made during that time.
26    With respect to mid-range ethanol blends, as defined in the

 

 

SB1948- 19 -LRB099 08471 HLH 28627 b

1Use Tax Act, the tax imposed by this Act applies to (i) 80% of
2the selling price of property transferred as an incident to the
3sale of service on or after July 1, 2015 and on or before
4December 31, 2018 and (ii) 100% of the selling price
5thereafter. If, at any time, however, the tax under this Act on
6sales of mid-range ethanol blends is imposed at the rate of
71.25%, then the tax imposed by this Act applies to 100% of the
8proceeds of sales of mid-range ethanol blends made during that
9time.
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 December 31, 2018 and
21(ii) 100% of the proceeds of the selling price thereafter. If,
22at any time, however, the tax under this Act on sales of
23biodiesel blends, as defined in the Use Tax Act, with no less
24than 1% and no more than 10% biodiesel is imposed at the rate
25of 1.25%, then the tax imposed by this Act applies to 100% of
26the proceeds of sales of biodiesel blends with no less than 1%

 

 

SB1948- 20 -LRB099 08471 HLH 28627 b

1and no more than 10% biodiesel made during that time.
2    With respect to 100% biodiesel, as defined in the Use Tax
3Act, and biodiesel blends, as defined in the Use Tax Act, with
4more than 10% but no more than 99% biodiesel material, the tax
5imposed by this Act does not apply to the proceeds of the
6selling price of property transferred as an incident to the
7sale of service on or after July 1, 2003 and on or before
8December 31, 2018 but applies to 100% of the selling price
9thereafter.
10    At the election of any registered serviceman made for each
11fiscal year, sales of service in which the aggregate annual
12cost price of tangible personal property transferred as an
13incident to the sales of service is less than 35%, or 75% in
14the case of servicemen transferring prescription drugs or
15servicemen engaged in graphic arts production, of the aggregate
16annual total gross receipts from all sales of service, the tax
17imposed by this Act shall be based on the serviceman's cost
18price of the tangible personal property transferred incident to
19the sale of those services.
20    The tax shall be imposed at the rate of 1% on food prepared
21for immediate consumption and transferred incident to a sale of
22service subject to this Act or the Service Occupation Tax Act
23by an entity licensed under the Hospital Licensing Act, the
24Nursing Home Care Act, the ID/DD Community Care Act, the
25Specialized Mental Health Rehabilitation Act of 2013, or the
26Child Care Act of 1969. The tax shall also be imposed at the

 

 

SB1948- 21 -LRB099 08471 HLH 28627 b

1rate of 1% on food for human consumption that is to be consumed
2off the premises where it is sold (other than alcoholic
3beverages, soft drinks, and food that has been prepared for
4immediate consumption and is not otherwise included in this
5paragraph) and prescription and nonprescription medicines,
6drugs, medical appliances, modifications to a motor vehicle for
7the purpose of rendering it usable by a disabled person, and
8insulin, urine testing materials, syringes, and needles used by
9diabetics, for human use. For the purposes of this Section,
10until September 1, 2009: the term "soft drinks" means any
11complete, finished, ready-to-use, non-alcoholic drink, whether
12carbonated or not, including but not limited to soda water,
13cola, fruit juice, vegetable juice, carbonated water, and all
14other preparations commonly known as soft drinks of whatever
15kind or description that are contained in any closed or sealed
16can, carton, or container, regardless of size; but "soft
17drinks" does not include coffee, tea, non-carbonated water,
18infant formula, milk or milk products as defined in the Grade A
19Pasteurized Milk and Milk Products Act, or drinks containing
2050% or more natural fruit or vegetable juice.
21    Notwithstanding any other provisions of this Act,
22beginning September 1, 2009, "soft drinks" means non-alcoholic
23beverages that contain natural or artificial sweeteners. "Soft
24drinks" do not include beverages that contain milk or milk
25products, soy, rice or similar milk substitutes, or greater
26than 50% of vegetable or fruit juice by volume.

 

 

SB1948- 22 -LRB099 08471 HLH 28627 b

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

 

 

SB1948- 23 -LRB099 08471 HLH 28627 b

1shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
2lotions and screens, unless those products are available by
3prescription only, regardless of whether the products meet the
4definition of "over-the-counter-drugs". For the purposes of
5this paragraph, "over-the-counter-drug" means a drug for human
6use that contains a label that identifies the product as a drug
7as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
8label includes:
9        (A) A "Drug Facts" panel; or
10        (B) A statement of the "active ingredient(s)" with a
11    list of those ingredients contained in the compound,
12    substance or preparation.
13    Beginning on January 1, 2014 (the effective date of Public
14Act 98-122), "prescription and nonprescription medicines and
15drugs" includes medical cannabis purchased from a registered
16dispensing organization under the Compassionate Use of Medical
17Cannabis Pilot Program Act.
18(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-636,
19eff. 6-1-12; 98-104, eff. 7-22-13; 98-122, eff. 1-1-14; 98-756,
20eff. 7-16-14.)
 
21    Section 25. The Retailers' Occupation Tax Act is amended by
22changing Section 2-10 as follows:
 
23    (35 ILCS 120/2-10)
24    Sec. 2-10. Rate of tax. Unless otherwise provided in this

 

 

SB1948- 24 -LRB099 08471 HLH 28627 b

1Section, the tax imposed by this Act is at the rate of 6.25% of
2gross receipts from sales of tangible personal property made in
3the course of business.
4    Beginning on July 1, 2000 and through December 31, 2000,
5with respect to motor fuel, as defined in Section 1.1 of the
6Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
7the Use Tax Act, the tax is imposed at the rate of 1.25%.
8    Beginning on August 6, 2010 through August 15, 2010, with
9respect to sales tax holiday items as defined in Section 2-8 of
10this Act, the tax is imposed at the rate of 1.25%.
11    Within 14 days after the effective date of this amendatory
12Act of the 91st General Assembly, each retailer of motor fuel
13and gasohol shall cause the following notice to be posted in a
14prominently visible place on each retail dispensing device that
15is used to dispense motor fuel or gasohol in the State of
16Illinois: "As of July 1, 2000, the State of Illinois has
17eliminated the State's share of sales tax on motor fuel and
18gasohol through December 31, 2000. The price on this pump
19should reflect the elimination of the tax." The notice shall be
20printed in bold print on a sign that is no smaller than 4
21inches by 8 inches. The sign shall be clearly visible to
22customers. Any retailer who fails to post or maintain a
23required sign through December 31, 2000 is guilty of a petty
24offense for which the fine shall be $500 per day per each
25retail premises where a violation occurs.
26    With respect to gasohol, as defined in the Use Tax Act, the

 

 

SB1948- 25 -LRB099 08471 HLH 28627 b

1tax imposed by this Act applies to (i) 70% of the proceeds of
2sales made on or after January 1, 1990, and before July 1,
32003, (ii) 80% of the proceeds of sales made on or after July
41, 2003 and on or before June 30, 2015, (iii) 90% of the
5proceeds of sales made on or after July 1, 2015 and on or
6before December 31, 2018, and (iv) (iii) 100% of the proceeds
7of sales made thereafter. If, at any time, however, the tax
8under this Act on sales of gasohol, as defined in the Use Tax
9Act, is imposed at the rate of 1.25%, then the tax imposed by
10this Act applies to 100% of the proceeds of sales of gasohol
11made during that time.
12    With respect to mid-range ethanol blends, as defined in the
13Use Tax Act, the tax imposed by this Act applies to (i) 80% of
14the proceeds of sales made on or after July 1, 2015 and on or
15before December 31, 2018 and (ii) 100% of the proceeds of sales
16made thereafter. If, at any time, however, the tax under this
17Act on sales of mid-range ethanol blends is imposed at the rate
18of 1.25%, then the tax imposed by this Act applies to 100% of
19the proceeds of sales of mid-range ethanol blends made during
20that time.
21    With respect to majority blended ethanol fuel, as defined
22in the Use Tax Act, the tax imposed by this Act does not apply
23to the proceeds of sales made on or after July 1, 2003 and on or
24before December 31, 2018 but applies to 100% of the proceeds of
25sales made thereafter.
26    With respect to biodiesel blends, as defined in the Use Tax

 

 

SB1948- 26 -LRB099 08471 HLH 28627 b

1Act, with no less than 1% and no more than 10% biodiesel, the
2tax imposed by this Act applies to (i) 80% of the proceeds of
3sales made on or after July 1, 2003 and on or before December
431, 2018 and (ii) 100% of the proceeds of sales made
5thereafter. If, at any time, however, the tax under this Act on
6sales of biodiesel blends, as defined in the Use Tax Act, with
7no less than 1% and no more than 10% biodiesel is imposed at
8the rate of 1.25%, then the tax imposed by this Act applies to
9100% of the proceeds of sales of biodiesel blends with no less
10than 1% and no more than 10% biodiesel made during that time.
11    With respect to 100% biodiesel, as defined in the Use Tax
12Act, and biodiesel blends, as defined in the Use Tax Act, with
13more than 10% but no more than 99% biodiesel, the tax imposed
14by this Act does not apply to the proceeds of sales made on or
15after July 1, 2003 and on or before December 31, 2018 but
16applies to 100% of the proceeds of sales made thereafter.
17    With respect to food for human consumption that is to be
18consumed off the premises where it is sold (other than
19alcoholic beverages, soft drinks, and food that has been
20prepared for immediate consumption) and prescription and
21nonprescription medicines, drugs, medical appliances,
22modifications to a motor vehicle for the purpose of rendering
23it usable by a disabled person, and insulin, urine testing
24materials, syringes, and needles used by diabetics, for human
25use, the tax is imposed at the rate of 1%. For the purposes of
26this Section, until September 1, 2009: the term "soft drinks"

 

 

SB1948- 27 -LRB099 08471 HLH 28627 b

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

 

 

SB1948- 28 -LRB099 08471 HLH 28627 b

1through a vending machine, except soft drinks, candy, and food
2products that are dispensed hot from a vending machine,
3regardless of the location of the vending machine.
4    Notwithstanding any other provisions of this Act,
5beginning September 1, 2009, "food for human consumption that
6is to be consumed off the premises where it is sold" does not
7include candy. For purposes of this Section, "candy" means a
8preparation of sugar, honey, or other natural or artificial
9sweeteners in combination with chocolate, fruits, nuts or other
10ingredients or flavorings in the form of bars, drops, or
11pieces. "Candy" does not include any preparation that contains
12flour or requires refrigeration.
13    Notwithstanding any other provisions of this Act,
14beginning September 1, 2009, "nonprescription medicines and
15drugs" does not include grooming and hygiene products. For
16purposes of this Section, "grooming and hygiene products"
17includes, but is not limited to, soaps and cleaning solutions,
18shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
19lotions and screens, unless those products are available by
20prescription only, regardless of whether the products meet the
21definition of "over-the-counter-drugs". For the purposes of
22this paragraph, "over-the-counter-drug" means a drug for human
23use that contains a label that identifies the product as a drug
24as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
25label includes:
26        (A) A "Drug Facts" panel; or

 

 

SB1948- 29 -LRB099 08471 HLH 28627 b

1        (B) A statement of the "active ingredient(s)" with a
2    list of those ingredients contained in the compound,
3    substance or preparation.
4    Beginning on the effective date of this amendatory Act of
5the 98th General Assembly, "prescription and nonprescription
6medicines and drugs" includes medical cannabis purchased from a
7registered dispensing organization under the Compassionate Use
8of Medical Cannabis Pilot Program Act.
9(Source: P.A. 97-636, eff. 6-1-12; 98-122, eff. 1-1-14.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.