102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB1517

 

Introduced 2/17/2021, by Rep. Emanuel Chris Welch

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 120/2-10

    Amends the Retailers' Occupation Tax Act. Makes a technical change in a Section concerning the rate of tax.


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A BILL FOR

 

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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 Retailers' Occupation Tax Act is amended by
5changing Section 2-10 as follows:
 
6    (35 ILCS 120/2-10)
7    Sec. 2-10. Rate of tax. Unless otherwise provided in this
8Section, the the tax imposed by this Act is at the rate of
96.25% of gross receipts from sales of tangible personal
10property made in the course of business.
11    Beginning on July 1, 2000 and through December 31, 2000,
12with respect to motor fuel, as defined in Section 1.1 of the
13Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
14the Use Tax Act, the tax is imposed at the rate of 1.25%.
15    Beginning on August 6, 2010 through August 15, 2010, with
16respect to sales tax holiday items as defined in Section 2-8 of
17this Act, the tax is imposed at the rate of 1.25%.
18    Within 14 days after the effective date of this amendatory
19Act of the 91st General Assembly, each retailer of motor fuel
20and gasohol shall cause the following notice to be posted in a
21prominently visible place on each retail dispensing device
22that is used to dispense motor fuel or gasohol in the State of
23Illinois: "As of July 1, 2000, the State of Illinois has

 

 

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1eliminated the State's share of sales tax on motor fuel and
2gasohol through December 31, 2000. The price on this pump
3should reflect the elimination of the tax." The notice shall
4be printed in bold print on a sign that is no smaller than 4
5inches by 8 inches. The sign shall be clearly visible to
6customers. Any retailer who fails to post or maintain a
7required sign through December 31, 2000 is guilty of a petty
8offense for which the fine shall be $500 per day per each
9retail premises where a violation occurs.
10    With respect to gasohol, as defined in the Use Tax Act, the
11tax imposed by this Act applies to (i) 70% of the proceeds of
12sales made on or after January 1, 1990, and before July 1,
132003, (ii) 80% of the proceeds of sales made on or after July
141, 2003 and on or before July 1, 2017, and (iii) 100% of the
15proceeds of sales made thereafter. If, at any time, however,
16the tax under this Act on sales of gasohol, as defined in the
17Use Tax Act, is imposed at the rate of 1.25%, then the tax
18imposed by this Act applies to 100% of the proceeds of sales of
19gasohol made during that time.
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 proceeds of sales made on or after July 1, 2003 and on
23or before December 31, 2023 but applies to 100% of the proceeds
24of sales made thereafter.
25    With respect to biodiesel blends, as defined in the Use
26Tax Act, with no less than 1% and no more than 10% biodiesel,

 

 

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1the tax imposed by this Act applies to (i) 80% of the proceeds
2of sales made on or after July 1, 2003 and on or before
3December 31, 2018 and (ii) 100% of the proceeds of sales made
4thereafter. If, at any time, however, the tax under this Act on
5sales of biodiesel blends, as defined in the Use Tax Act, with
6no less than 1% and no more than 10% biodiesel is imposed at
7the rate of 1.25%, then the tax imposed by this Act applies to
8100% of the proceeds of sales of biodiesel blends with no less
9than 1% and no more than 10% biodiesel made during that time.
10    With respect to 100% biodiesel, as defined in the Use Tax
11Act, and biodiesel blends, as defined in the Use Tax Act, 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, 2023 but
15applies to 100% of the proceeds of sales made thereafter.
16    With respect to food for human consumption that is to be
17consumed off the premises where it is sold (other than
18alcoholic beverages, food consisting of or infused with adult
19use cannabis, soft drinks, and food that has been prepared for
20immediate consumption) and prescription and nonprescription
21medicines, drugs, medical appliances, products classified as
22Class III medical devices by the United States Food and Drug
23Administration that are used for cancer treatment pursuant to
24a prescription, as well as any accessories and components
25related to those devices, modifications to a motor vehicle for
26the purpose of rendering it usable by a person with a

 

 

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

 

 

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

 

 

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1as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
2label includes:
3        (A) A "Drug Facts" panel; or
4        (B) A statement of the "active ingredient(s)" with a
5    list of those ingredients contained in the compound,
6    substance or preparation.
7    Beginning on the effective date of this amendatory Act of
8the 98th General Assembly, "prescription and nonprescription
9medicines and drugs" includes medical cannabis purchased from
10a registered dispensing organization under the Compassionate
11Use of Medical Cannabis Program Act.
12    As used in this Section, "adult use cannabis" means
13cannabis subject to tax under the Cannabis Cultivation
14Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
15and does not include cannabis subject to tax under the
16Compassionate Use of Medical Cannabis Program Act.
17(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
18101-593, eff. 12-4-19.)