101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3016

 

Introduced , by Rep. Joyce Mason

 

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

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on January 1, 2020, the tax on gun safes and locks designed to secure firearms is imposed at the rate of 1%. Effective immediately.


LRB101 08894 HLH 53984 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3016LRB101 08894 HLH 53984 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, (ii) 80% of the
15proceeds of sales made on or after July 1, 2003 and on or
16before July 1, 2017, and (iii) 100% of the proceeds of sales
17made thereafter. If, at any time, however, the tax under this
18Act on sales of gasohol is imposed at the rate of 1.25%, then
19the tax imposed by this Act applies to 100% of the proceeds of
20sales of gasohol made during that time.
21    With respect to majority blended ethanol fuel, the tax
22imposed by this Act does not apply to the proceeds of sales
23made on or after July 1, 2003 and on or before December 31,
242023 but applies to 100% of the proceeds of sales made
25thereafter.
26    With respect to biodiesel blends with no less than 1% and

 

 

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1no more than 10% biodiesel, the tax imposed by this Act applies
2to (i) 80% of the proceeds of sales made on or after July 1,
32003 and on or before December 31, 2018 and (ii) 100% of the
4proceeds of sales made thereafter. If, at any time, however,
5the tax under this Act on sales of biodiesel blends with no
6less than 1% and no more than 10% biodiesel is imposed at the
7rate of 1.25%, then the tax imposed by this Act applies to 100%
8of the proceeds of sales of biodiesel blends with no less than
91% and no more than 10% biodiesel made during that time.
10    With respect to 100% biodiesel and biodiesel blends with
11more than 10% but no more than 99% biodiesel, the tax imposed
12by this Act does not apply to the proceeds of sales made on or
13after July 1, 2003 and on or before December 31, 2023 but
14applies to 100% of the proceeds of sales made thereafter.
15    With respect to gun safes and locks designed to secure
16firearms, beginning on January 1, 2020, the tax is imposed at
17the rate of 1%.
18    With respect to food for human consumption that is to be
19consumed off the premises where it is sold (other than
20alcoholic beverages, soft drinks, and food that has been
21prepared for immediate consumption) and prescription and
22nonprescription medicines, drugs, medical appliances, products
23classified as Class III medical devices by the United States
24Food and Drug Administration that are used for cancer treatment
25pursuant to a prescription, as well as any accessories and
26components related to those devices, modifications to a motor

 

 

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1vehicle for the purpose of rendering it usable by a person with
2a disability, and insulin, urine testing materials, syringes,
3and needles used by diabetics, for human use, the tax is
4imposed at the rate of 1%. 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,

 

 

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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

 

 

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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 the effective date of this amendatory Act of
9the 98th General Assembly, "prescription and nonprescription
10medicines and drugs" includes medical cannabis purchased from a
11registered dispensing organization under the Compassionate Use
12of Medical Cannabis Pilot Program Act.
13    If the property that is purchased at retail from a retailer
14is acquired 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. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16;
21100-22, eff. 7-6-17.)
 
22    Section 10. The Service Use Tax Act is amended by changing
23Section 3-10 as follows:
 
24    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)

 

 

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1    Sec. 3-10. Rate of tax. Unless otherwise provided in this
2Section, the tax imposed by this Act is at the rate of 6.25% of
3the selling price of tangible personal property transferred as
4an incident to the sale of service, but, for the purpose of
5computing this tax, in no event shall the selling price be less
6than the cost price of the property to the serviceman.
7    Beginning on July 1, 2000 and through December 31, 2000,
8with respect to motor fuel, as defined in Section 1.1 of the
9Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
10the Use Tax Act, the tax is imposed at the rate of 1.25%.
11    With respect to gasohol, as defined in the Use Tax Act, the
12tax imposed by this Act applies to (i) 70% of the selling price
13of property transferred as an incident to the sale of service
14on or after January 1, 1990, and before July 1, 2003, (ii) 80%
15of the selling price of property transferred as an incident to
16the sale of service on or after July 1, 2003 and on or before
17July 1, 2017, and (iii) 100% of the selling price thereafter.
18If, at any time, however, the tax under this Act on sales of
19gasohol, as defined in the Use Tax Act, is imposed at the rate
20of 1.25%, then the tax imposed by this Act applies to 100% of
21the proceeds of sales of gasohol made during that time.
22    With respect to majority blended ethanol fuel, as defined
23in the Use Tax Act, the tax imposed by this Act does not apply
24to the selling price of property transferred as an incident to
25the sale of service on or after July 1, 2003 and on or before
26December 31, 2023 but applies to 100% of the selling price

 

 

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1thereafter.
2    With respect to biodiesel blends, as defined in the Use Tax
3Act, with no less than 1% and no more than 10% biodiesel, the
4tax imposed by this Act applies to (i) 80% of the selling price
5of property transferred as an incident to the sale of service
6on or after July 1, 2003 and on or before December 31, 2018 and
7(ii) 100% of the proceeds of the selling price thereafter. If,
8at any time, however, the tax under this Act on sales of
9biodiesel blends, as defined in the Use Tax Act, with no less
10than 1% and no more than 10% biodiesel is imposed at the rate
11of 1.25%, then the tax imposed by this Act applies to 100% of
12the proceeds of sales of biodiesel blends with no less than 1%
13and no more than 10% biodiesel made during that time.
14    With respect to 100% biodiesel, as defined in the Use Tax
15Act, and biodiesel blends, as defined in the Use Tax Act, with
16more than 10% but no more than 99% biodiesel, the tax imposed
17by this Act does not apply to the proceeds of the selling price
18of property transferred as an incident to the sale of service
19on or after July 1, 2003 and on or before December 31, 2023 but
20applies to 100% of the selling price thereafter.
21    At the election of any registered serviceman made for each
22fiscal year, sales of service in which the aggregate annual
23cost price of tangible personal property transferred as an
24incident to the sales of service is less than 35%, or 75% in
25the case of servicemen transferring prescription drugs or
26servicemen engaged in graphic arts production, of the aggregate

 

 

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1annual total gross receipts from all sales of service, the tax
2imposed by this Act shall be based on the serviceman's cost
3price of the tangible personal property transferred as an
4incident to the sale of those services.
5    With respect to gun safes and locks designed to secure
6firearms, beginning on January 1, 2020, the tax is imposed at
7the rate of 1%.
8    The tax shall be imposed at the rate of 1% on food prepared
9for immediate consumption and transferred incident to a sale of
10service subject to this Act or the Service Occupation Tax Act
11by an entity licensed under the Hospital Licensing Act, the
12Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
13Act, the Specialized Mental Health Rehabilitation Act of 2013,
14or the Child Care Act of 1969. The tax shall also be imposed at
15the rate of 1% on food for human consumption that is to be
16consumed off the premises where it is sold (other than
17alcoholic beverages, soft drinks, and food that has been
18prepared for immediate consumption and is not otherwise
19included in this paragraph) and prescription and
20nonprescription medicines, drugs, medical appliances, products
21classified as Class III medical devices by the United States
22Food and Drug Administration that are used for cancer treatment
23pursuant to a prescription, as well as any accessories and
24components related to those devices, modifications to a motor
25vehicle for the purpose of rendering it usable by a person with
26a disability, and insulin, urine testing materials, syringes,

 

 

HB3016- 10 -LRB101 08894 HLH 53984 b

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

 

 

HB3016- 11 -LRB101 08894 HLH 53984 b

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

 

 

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1label includes:
2        (A) A "Drug Facts" panel; or
3        (B) A statement of the "active ingredient(s)" with a
4    list of those ingredients contained in the compound,
5    substance or preparation.
6    Beginning on January 1, 2014 (the effective date of Public
7Act 98-122), "prescription and nonprescription medicines and
8drugs" includes medical cannabis purchased from a registered
9dispensing organization under the Compassionate Use of Medical
10Cannabis Pilot Program Act.
11    If the property that is acquired from a serviceman is
12acquired outside Illinois and used outside Illinois before
13being brought to Illinois for use here and is taxable under
14this Act, the "selling price" on which the tax is computed
15shall be reduced by an amount that represents a reasonable
16allowance for depreciation for the period of prior out-of-state
17use.
18(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
1999-642, eff. 7-28-16; 99-858, eff. 8-19-16; 100-22, eff.
207-6-17.)
 
21    Section 15. The Service Occupation Tax Act is amended by
22changing Section 3-10 as follows:
 
23    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
24    Sec. 3-10. Rate of tax. Unless otherwise provided in this

 

 

HB3016- 13 -LRB101 08894 HLH 53984 b

1Section, the tax imposed by this Act is at the rate of 6.25% of
2the "selling price", as defined in Section 2 of the Service Use
3Tax Act, of the tangible personal property. For the purpose of
4computing this tax, in no event shall the "selling price" be
5less than the cost price to the serviceman of the tangible
6personal property transferred. The selling price of each item
7of tangible personal property transferred as an incident of a
8sale of service may be shown as a distinct and separate item on
9the serviceman's billing to the service customer. If the
10selling price is not so shown, the selling price of the
11tangible personal property is deemed to be 50% of the
12serviceman's entire billing to the service customer. When,
13however, a serviceman contracts to design, develop, and produce
14special order machinery or equipment, the tax imposed by this
15Act shall be based on the serviceman's cost price of the
16tangible personal property transferred incident to the
17completion of the contract.
18    Beginning on July 1, 2000 and through December 31, 2000,
19with respect to motor fuel, as defined in Section 1.1 of the
20Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
21the Use Tax Act, the tax is imposed at the rate of 1.25%.
22    With respect to gasohol, as defined in the Use Tax Act, the
23tax imposed by this Act shall apply to (i) 70% of the cost
24price of property transferred as an incident to the sale of
25service on or after January 1, 1990, and before July 1, 2003,
26(ii) 80% of the selling price of property transferred as an

 

 

HB3016- 14 -LRB101 08894 HLH 53984 b

1incident to the sale of service on or after July 1, 2003 and on
2or before July 1, 2017, and (iii) 100% of the cost price
3thereafter. If, at any time, however, the tax under this Act on
4sales of gasohol, as defined in the Use Tax Act, is imposed at
5the rate of 1.25%, then the tax imposed by this Act applies to
6100% of the proceeds of sales of gasohol made during that time.
7    With respect to majority blended ethanol fuel, as defined
8in the Use Tax Act, the tax imposed by this Act does not apply
9to the selling price of property transferred as an incident to
10the sale of service on or after July 1, 2003 and on or before
11December 31, 2023 but applies to 100% of the selling price
12thereafter.
13    With respect to gun safes and locks designed to secure
14firearms, beginning on January 1, 2020, the tax is imposed at
15the rate of 1%.
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%

 

 

HB3016- 15 -LRB101 08894 HLH 53984 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, 2023 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 MC/DD
25Act, the Specialized Mental Health Rehabilitation Act of 2013,
26or the Child Care Act of 1969. The tax shall also be imposed at

 

 

HB3016- 16 -LRB101 08894 HLH 53984 b

1the rate of 1% on food for human consumption that is to be
2consumed off the premises where it is sold (other than
3alcoholic beverages, soft drinks, and food that has been
4prepared for immediate consumption and is not otherwise
5included in this paragraph) and prescription and
6nonprescription medicines, drugs, medical appliances, products
7classified as Class III medical devices by the United States
8Food and Drug Administration that are used for cancer treatment
9pursuant to a prescription, as well as any accessories and
10components related to those devices, modifications to a motor
11vehicle for the purpose of rendering it usable by a person with
12a disability, and insulin, urine testing materials, syringes,
13and needles used by diabetics, for human use. For the purposes
14of this Section, until September 1, 2009: the term "soft
15drinks" means any complete, finished, ready-to-use,
16non-alcoholic drink, whether carbonated or not, including but
17not limited to soda water, cola, fruit juice, vegetable juice,
18carbonated water, and all other preparations commonly known as
19soft drinks of whatever kind or description that are contained
20in any closed or sealed can, carton, or container, regardless
21of size; but "soft drinks" does not include coffee, tea,
22non-carbonated water, infant formula, milk or milk products as
23defined in the Grade A Pasteurized Milk and Milk Products Act,
24or drinks containing 50% or more natural fruit or vegetable
25juice.
26    Notwithstanding any other provisions of this Act,

 

 

HB3016- 17 -LRB101 08894 HLH 53984 b

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

 

 

HB3016- 18 -LRB101 08894 HLH 53984 b

1    Notwithstanding any other provisions of this Act,
2beginning September 1, 2009, "nonprescription medicines and
3drugs" does not include grooming and hygiene products. For
4purposes of this Section, "grooming and hygiene products"
5includes, but is not limited to, soaps and cleaning solutions,
6shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
7lotions and screens, unless those products are available by
8prescription only, regardless of whether the products meet the
9definition of "over-the-counter-drugs". For the purposes of
10this paragraph, "over-the-counter-drug" means a drug for human
11use that contains a label that identifies the product as a drug
12as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
13label includes:
14        (A) A "Drug Facts" panel; or
15        (B) A statement of the "active ingredient(s)" with a
16    list of those ingredients contained in the compound,
17    substance or preparation.
18    Beginning on January 1, 2014 (the effective date of Public
19Act 98-122), "prescription and nonprescription medicines and
20drugs" includes medical cannabis purchased from a registered
21dispensing organization under the Compassionate Use of Medical
22Cannabis Pilot Program Act.
23(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
2499-642, eff. 7-28-16; 99-858, eff. 8-19-16; 100-22, eff.
257-6-17.)
 

 

 

HB3016- 19 -LRB101 08894 HLH 53984 b

1    Section 20. The Retailers' Occupation Tax Act is amended by
2changing Section 2-10 as follows:
 
3    (35 ILCS 120/2-10)
4    Sec. 2-10. Rate of tax. Unless otherwise provided in this
5Section, the tax imposed by this Act is at the rate of 6.25% of
6gross receipts from sales of tangible personal property made in
7the course of business.
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    Beginning on August 6, 2010 through August 15, 2010, with
13respect to sales tax holiday items as defined in Section 2-8 of
14this Act, the tax is imposed at the rate of 1.25%.
15    Within 14 days after the effective date of this amendatory
16Act of the 91st General Assembly, each retailer of motor fuel
17and gasohol shall cause the following notice to be posted in a
18prominently visible place on each retail dispensing device that
19is used to dispense motor fuel or gasohol in the State of
20Illinois: "As of July 1, 2000, the State of Illinois has
21eliminated the State's share of sales tax on motor fuel and
22gasohol through December 31, 2000. The price on this pump
23should reflect the elimination of the tax." The notice shall be
24printed in bold print on a sign that is no smaller than 4
25inches by 8 inches. The sign shall be clearly visible to

 

 

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1customers. Any retailer who fails to post or maintain a
2required sign through December 31, 2000 is guilty of a petty
3offense for which the fine shall be $500 per day per each
4retail premises where a violation occurs.
5    With respect to gasohol, as defined in the Use Tax Act, the
6tax imposed by this Act applies to (i) 70% of the proceeds of
7sales made on or after January 1, 1990, and before July 1,
82003, (ii) 80% of the proceeds of sales made on or after July
91, 2003 and on or before July 1, 2017, and (iii) 100% of the
10proceeds of sales made thereafter. If, at any time, however,
11the tax under this Act on sales of gasohol, as defined in the
12Use Tax Act, is imposed at the rate of 1.25%, then the tax
13imposed by this Act applies to 100% of the proceeds of sales of
14gasohol made during that time.
15    With respect to majority blended ethanol fuel, as defined
16in the Use Tax Act, the tax imposed by this Act does not apply
17to the proceeds of sales made on or after July 1, 2003 and on or
18before December 31, 2023 but applies to 100% of the proceeds of
19sales made thereafter.
20    With respect to biodiesel blends, as defined in the Use Tax
21Act, with no less than 1% and no more than 10% biodiesel, the
22tax imposed by this Act applies to (i) 80% of the proceeds of
23sales made on or after July 1, 2003 and on or before December
2431, 2018 and (ii) 100% of the proceeds of sales made
25thereafter. If, at any time, however, the tax under this Act on
26sales of biodiesel blends, as defined in the Use Tax Act, with

 

 

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1no less than 1% and no more than 10% biodiesel is imposed at
2the rate of 1.25%, then the tax imposed by this Act applies to
3100% of the proceeds of sales of biodiesel blends with no less
4than 1% and no more than 10% biodiesel made during that time.
5    With respect to 100% biodiesel, as defined in the Use Tax
6Act, and biodiesel blends, as defined in the Use Tax Act, with
7more than 10% but no more than 99% biodiesel, the tax imposed
8by this Act does not apply to the proceeds of sales made on or
9after July 1, 2003 and on or before December 31, 2023 but
10applies to 100% of the proceeds of sales made thereafter.
11    With respect to gun safes and locks designed to secure
12firearms, beginning on January 1, 2020, the tax is imposed at
13the rate of 1%.
14    With respect to food for human consumption that is to be
15consumed off the premises where it is sold (other than
16alcoholic beverages, soft drinks, and food that has been
17prepared for immediate consumption) and prescription and
18nonprescription medicines, drugs, medical appliances, products
19classified as Class III medical devices by the United States
20Food and Drug Administration that are used for cancer treatment
21pursuant to a prescription, as well as any accessories and
22components related to those devices, modifications to a motor
23vehicle for the purpose of rendering it usable by a person with
24a disability, and insulin, urine testing materials, syringes,
25and needles used by diabetics, for human use, the tax is
26imposed at the rate of 1%. For the purposes of this Section,

 

 

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1until September 1, 2009: the term "soft drinks" means any
2complete, finished, ready-to-use, non-alcoholic drink, whether
3carbonated or not, including but not limited to soda water,
4cola, fruit juice, vegetable juice, carbonated water, and all
5other preparations commonly known as soft drinks of whatever
6kind or description that are contained in any closed or sealed
7bottle, can, carton, or container, regardless of size; but
8"soft drinks" does not include coffee, tea, non-carbonated
9water, infant formula, milk or milk products as defined in the
10Grade A Pasteurized Milk and Milk Products Act, or drinks
11containing 50% or more natural fruit or vegetable juice.
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

 

 

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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

 

 

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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. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16;
10100-22, eff. 7-6-17.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.