102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3211

 

Introduced 2/19/2021, by Rep. Martin J. Moylan

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/6z-18  from Ch. 127, par. 142z-18
30 ILCS 105/6z-20  from Ch. 127, par. 142z-20
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, during the week of Veterans Day each year, food for human consumption that is to be consumed off the premises where it is sold as well as prescription and nonprescription medications and certain medical appliances are exempt from the tax imposed under the Acts if the item is purchased by a veteran. Provides that the tax imposed on other merchandise is imposed at the rate of 5% during the same period if the item is purchased by a veteran. Effective immediately.


LRB102 03943 HLH 13959 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3211LRB102 03943 HLH 13959 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 State Finance Act is amended by changing
5Sections 6z-18 and 6z-20 as follows:
 
6    (30 ILCS 105/6z-18)  (from Ch. 127, par. 142z-18)
7    Sec. 6z-18. Local Government Tax Fund. A portion of the
8money paid into the Local Government Tax Fund from sales of
9tangible personal property taxed at the 1% rate under the
10Retailers' Occupation Tax Act and the Service Occupation Tax
11Act, which occurred in municipalities, shall be distributed to
12each municipality based upon the sales which occurred in that
13municipality. The remainder shall be distributed to each
14county based upon the sales which occurred in the
15unincorporated area of that county.
16    A portion of the money paid into the Local Government Tax
17Fund from the 6.25% general use tax rate on the selling price
18of tangible personal property which is purchased outside
19Illinois at retail from a retailer and which is titled or
20registered by any agency of this State's government shall be
21distributed to municipalities as provided in this paragraph.
22Each municipality shall receive the amount attributable to
23sales for which Illinois addresses for titling or registration

 

 

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1purposes are given as being in such municipality. The
2remainder of the money paid into the Local Government Tax Fund
3from such sales shall be distributed to counties. Each county
4shall receive the amount attributable to sales for which
5Illinois addresses for titling or registration purposes are
6given as being located in the unincorporated area of such
7county.
8    A portion of the money paid into the Local Government Tax
9Fund from the 6.25% general rate (and, beginning July 1, 2000
10and through December 31, 2000, the 1.25% rate on motor fuel and
11gasohol, and beginning on August 6, 2010 through August 15,
122010, the 1.25% rate on sales tax holiday items, and during the
13week of Veterans Day each year, the 5% rate on items sold to
14veterans) on sales subject to taxation under the Retailers'
15Occupation Tax Act and the Service Occupation Tax Act, which
16occurred in municipalities, shall be distributed to each
17municipality, based upon the sales which occurred in that
18municipality. The remainder shall be distributed to each
19county, based upon the sales which occurred in the
20unincorporated area of such county.
21    For the purpose of determining allocation to the local
22government unit, a retail sale by a producer of coal or other
23mineral mined in Illinois is a sale at retail at the place
24where the coal or other mineral mined in Illinois is extracted
25from the earth. This paragraph does not apply to coal or other
26mineral when it is delivered or shipped by the seller to the

 

 

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1purchaser at a point outside Illinois so that the sale is
2exempt under the United States Constitution as a sale in
3interstate or foreign commerce.
4    Whenever the Department determines that a refund of money
5paid into the Local Government Tax Fund should be made to a
6claimant instead of issuing a credit memorandum, the
7Department shall notify the State Comptroller, who shall cause
8the order to be drawn for the amount specified, and to the
9person named, in such notification from the Department. Such
10refund shall be paid by the State Treasurer out of the Local
11Government Tax Fund.
12    As soon as possible after the first day of each month,
13beginning January 1, 2011, upon certification of the
14Department of Revenue, the Comptroller shall order
15transferred, and the Treasurer shall transfer, to the STAR
16Bonds Revenue Fund the local sales tax increment, as defined
17in the Innovation Development and Economy Act, collected
18during the second preceding calendar month for sales within a
19STAR bond district and deposited into the Local Government Tax
20Fund, less 3% of that amount, which shall be transferred into
21the Tax Compliance and Administration Fund and shall be used
22by the Department, subject to appropriation, to cover the
23costs of the Department in administering the Innovation
24Development and Economy Act.
25    After the monthly transfer to the STAR Bonds Revenue Fund,
26on or before the 25th day of each calendar month, the

 

 

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1Department shall prepare and certify to the Comptroller the
2disbursement of stated sums of money to named municipalities
3and counties, the municipalities and counties to be those
4entitled to distribution of taxes or penalties paid to the
5Department during the second preceding calendar month. The
6amount to be paid to each municipality or county shall be the
7amount (not including credit memoranda) collected during the
8second preceding calendar month by the Department and paid
9into the Local Government Tax Fund, plus an amount the
10Department determines is necessary to offset any amounts which
11were erroneously paid to a different taxing body, and not
12including an amount equal to the amount of refunds made during
13the second preceding calendar month by the Department, and not
14including any amount which the Department determines is
15necessary to offset any amounts which are payable to a
16different taxing body but were erroneously paid to the
17municipality or county, and not including any amounts that are
18transferred to the STAR Bonds Revenue Fund. Within 10 days
19after receipt, by the Comptroller, of the disbursement
20certification to the municipalities and counties, provided for
21in this Section to be given to the Comptroller by the
22Department, the Comptroller shall cause the orders to be drawn
23for the respective amounts in accordance with the directions
24contained in such certification.
25    When certifying the amount of monthly disbursement to a
26municipality or county under this Section, the Department

 

 

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1shall increase or decrease that amount by an amount necessary
2to offset any misallocation of previous disbursements. The
3offset amount shall be the amount erroneously disbursed within
4the 6 months preceding the time a misallocation is discovered.
5    The provisions directing the distributions from the
6special fund in the State Treasury provided for in this
7Section shall constitute an irrevocable and continuing
8appropriation of all amounts as provided herein. The State
9Treasurer and State Comptroller are hereby authorized to make
10distributions as provided in this Section.
11    In construing any development, redevelopment, annexation,
12preannexation or other lawful agreement in effect prior to
13September 1, 1990, which describes or refers to receipts from
14a county or municipal retailers' occupation tax, use tax or
15service occupation tax which now cannot be imposed, such
16description or reference shall be deemed to include the
17replacement revenue for such abolished taxes, distributed from
18the Local Government Tax Fund.
19    As soon as possible after the effective date of this
20amendatory Act of the 98th General Assembly, the State
21Comptroller shall order and the State Treasurer shall transfer
22$6,600,000 from the Local Government Tax Fund to the Illinois
23State Medical Disciplinary Fund.
24(Source: P.A. 100-1171, eff. 1-4-19.)
 
25    (30 ILCS 105/6z-20)  (from Ch. 127, par. 142z-20)

 

 

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1    Sec. 6z-20. County and Mass Transit District Fund. Of the
2money received from the 6.25% general rate (and, beginning
3July 1, 2000 and through December 31, 2000, the 1.25% rate on
4motor fuel and gasohol, and beginning on August 6, 2010
5through August 15, 2010, the 1.25% rate on sales tax holiday
6items, and during the week of Veterans Day each year, the 5%
7rate on items sold to veterans) on sales subject to taxation
8under the Retailers' Occupation Tax Act and Service Occupation
9Tax Act and paid into the County and Mass Transit District
10Fund, distribution to the Regional Transportation Authority
11tax fund, created pursuant to Section 4.03 of the Regional
12Transportation Authority Act, for deposit therein shall be
13made based upon the retail sales occurring in a county having
14more than 3,000,000 inhabitants. The remainder shall be
15distributed to each county having 3,000,000 or fewer
16inhabitants based upon the retail sales occurring in each such
17county.
18    For the purpose of determining allocation to the local
19government unit, a retail sale by a producer of coal or other
20mineral mined in Illinois is a sale at retail at the place
21where the coal or other mineral mined in Illinois is extracted
22from the earth. This paragraph does not apply to coal or other
23mineral when it is delivered or shipped by the seller to the
24purchaser at a point outside Illinois so that the sale is
25exempt under the United States Constitution as a sale in
26interstate or foreign commerce.

 

 

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1    Of the money received from the 6.25% general use tax rate
2on tangible personal property which is purchased outside
3Illinois at retail from a retailer and which is titled or
4registered by any agency of this State's government and paid
5into the County and Mass Transit District Fund, the amount for
6which Illinois addresses for titling or registration purposes
7are given as being in each county having more than 3,000,000
8inhabitants shall be distributed into the Regional
9Transportation Authority tax fund, created pursuant to Section
104.03 of the Regional Transportation Authority Act. The
11remainder of the money paid from such sales shall be
12distributed to each county based on sales for which Illinois
13addresses for titling or registration purposes are given as
14being located in the county. Any money paid into the Regional
15Transportation Authority Occupation and Use Tax Replacement
16Fund from the County and Mass Transit District Fund prior to
17January 14, 1991, which has not been paid to the Authority
18prior to that date, shall be transferred to the Regional
19Transportation Authority tax fund.
20    Whenever the Department determines that a refund of money
21paid into the County and Mass Transit District Fund should be
22made to a claimant instead of issuing a credit memorandum, the
23Department shall notify the State Comptroller, who shall cause
24the order to be drawn for the amount specified, and to the
25person named, in such notification from the Department. Such
26refund shall be paid by the State Treasurer out of the County

 

 

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1and Mass Transit District Fund.
2    As soon as possible after the first day of each month,
3beginning January 1, 2011, upon certification of the
4Department of Revenue, the Comptroller shall order
5transferred, and the Treasurer shall transfer, to the STAR
6Bonds Revenue Fund the local sales tax increment, as defined
7in the Innovation Development and Economy Act, collected
8during the second preceding calendar month for sales within a
9STAR bond district and deposited into the County and Mass
10Transit District Fund, less 3% of that amount, which shall be
11transferred into the Tax Compliance and Administration Fund
12and shall be used by the Department, subject to appropriation,
13to cover the costs of the Department in administering the
14Innovation Development and Economy Act.
15    After the monthly transfer to the STAR Bonds Revenue Fund,
16on or before the 25th day of each calendar month, the
17Department shall prepare and certify to the Comptroller the
18disbursement of stated sums of money to the Regional
19Transportation Authority and to named counties, the counties
20to be those entitled to distribution, as hereinabove provided,
21of taxes or penalties paid to the Department during the second
22preceding calendar month. The amount to be paid to the
23Regional Transportation Authority and each county having
243,000,000 or fewer inhabitants shall be the amount (not
25including credit memoranda) collected during the second
26preceding calendar month by the Department and paid into the

 

 

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1County and Mass Transit District Fund, plus an amount the
2Department determines is necessary to offset any amounts which
3were erroneously paid to a different taxing body, and not
4including an amount equal to the amount of refunds made during
5the second preceding calendar month by the Department, and not
6including any amount which the Department determines is
7necessary to offset any amounts which were payable to a
8different taxing body but were erroneously paid to the
9Regional Transportation Authority or county, and not including
10any amounts that are transferred to the STAR Bonds Revenue
11Fund, less 1.5% of the amount to be paid to the Regional
12Transportation Authority, which shall be transferred into the
13Tax Compliance and Administration Fund. The Department, at the
14time of each monthly disbursement to the Regional
15Transportation Authority, shall prepare and certify to the
16State Comptroller the amount to be transferred into the Tax
17Compliance and Administration Fund under this Section. Within
1810 days after receipt, by the Comptroller, of the disbursement
19certification to the Regional Transportation Authority,
20counties, and the Tax Compliance and Administration Fund
21provided for in this Section to be given to the Comptroller by
22the Department, the Comptroller shall cause the orders to be
23drawn for the respective amounts in accordance with the
24directions contained in such certification.
25    When certifying the amount of a monthly disbursement to
26the Regional Transportation Authority or to a county under

 

 

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1this Section, the Department shall increase or decrease that
2amount by an amount necessary to offset any misallocation of
3previous disbursements. The offset amount shall be the amount
4erroneously disbursed within the 6 months preceding the time a
5misallocation is discovered.
6    The provisions directing the distributions from the
7special fund in the State Treasury provided for in this
8Section and from the Regional Transportation Authority tax
9fund created by Section 4.03 of the Regional Transportation
10Authority Act shall constitute an irrevocable and continuing
11appropriation of all amounts as provided herein. The State
12Treasurer and State Comptroller are hereby authorized to make
13distributions as provided in this Section.
14    In construing any development, redevelopment, annexation,
15preannexation or other lawful agreement in effect prior to
16September 1, 1990, which describes or refers to receipts from
17a county or municipal retailers' occupation tax, use tax or
18service occupation tax which now cannot be imposed, such
19description or reference shall be deemed to include the
20replacement revenue for such abolished taxes, distributed from
21the County and Mass Transit District Fund or Local Government
22Distributive Fund, as the case may be.
23(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
 
24    Section 10. The Use Tax Act is amended by changing Section
253-10 as follows:
 

 

 

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1    (35 ILCS 105/3-10)
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
4either the selling price or the fair market value, if any, of
5the tangible personal property. In all cases where property
6functionally used or consumed is the same as the property that
7was purchased at retail, then the tax is imposed on the selling
8price of the property. In all cases where property
9functionally used or consumed is a by-product or waste product
10that has been refined, manufactured, or produced from property
11purchased at retail, then the tax is imposed on the lower of
12the fair market value, if any, of the specific property so used
13in this State or on the selling price of the property purchased
14at retail. For purposes of this Section "fair market value"
15means the price at which property would change hands between a
16willing buyer and a willing seller, neither being under any
17compulsion to buy or sell and both having reasonable knowledge
18of the relevant facts. The fair market value shall be
19established by Illinois sales by the taxpayer of the same
20property as that functionally used or consumed, or if there
21are no such sales by the taxpayer, then comparable sales or
22purchases of property of like kind and character in Illinois.
23    Beginning on July 1, 2000 and through December 31, 2000,
24with respect to motor fuel, as defined in Section 1.1 of the
25Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

 

 

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1the Use Tax Act, the tax is imposed at the rate of 1.25%.
2    Beginning on August 6, 2010 through August 15, 2010, with
3respect to sales tax holiday items as defined in Section 3-6 of
4this Act, the tax is imposed at the rate of 1.25%.
5    With respect to gasohol, the tax imposed by this Act
6applies to (i) 70% of the proceeds of sales made on or after
7January 1, 1990, and before July 1, 2003, (ii) 80% of the
8proceeds of sales made on or after July 1, 2003 and on or
9before July 1, 2017, and (iii) 100% of the proceeds of sales
10made thereafter. If, at any time, however, the tax under this
11Act on sales of gasohol is imposed at the rate of 1.25%, then
12the tax imposed by this Act applies to 100% of the proceeds of
13sales of gasohol made during that time.
14    With respect to majority blended ethanol fuel, the tax
15imposed by this Act does not apply to the proceeds of sales
16made on or after July 1, 2003 and on or before December 31,
172023 but applies to 100% of the proceeds of sales made
18thereafter.
19    With respect to biodiesel blends with no less than 1% and
20no more than 10% biodiesel, the tax imposed by this Act applies
21to (i) 80% of the proceeds of sales made on or after July 1,
222003 and on or before December 31, 2018 and (ii) 100% of the
23proceeds of sales made thereafter. If, at any time, however,
24the tax under this Act on sales of biodiesel blends with no
25less than 1% and no more than 10% biodiesel is imposed at the
26rate of 1.25%, then the tax imposed by this Act applies to 100%

 

 

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1of the proceeds of sales of biodiesel blends with no less than
21% and no more than 10% biodiesel made during that time.
3    With respect to 100% biodiesel and biodiesel blends with
4more than 10% but no more than 99% biodiesel, the tax imposed
5by this Act does not apply to the proceeds of sales made on or
6after July 1, 2003 and on or before December 31, 2023 but
7applies to 100% of the proceeds of sales made thereafter.
8    With respect to food for human consumption that is to be
9consumed off the premises where it is sold (other than
10alcoholic beverages, food consisting of or infused with adult
11use cannabis, soft drinks, and food that has been prepared for
12immediate consumption) and prescription and nonprescription
13medicines, drugs, medical appliances, products classified as
14Class III medical devices by the United States Food and Drug
15Administration that are used for cancer treatment pursuant to
16a prescription, as well as any accessories and components
17related to those devices, modifications to a motor vehicle for
18the purpose of rendering it usable by a person with a
19disability, and insulin, urine testing materials, syringes,
20and needles used by diabetics, for human use, the tax is
21imposed at the rate of 1%. For the purposes of this Section,
22until September 1, 2009: the term "soft drinks" means any
23complete, finished, ready-to-use, non-alcoholic drink, whether
24carbonated or not, including but not limited to soda water,
25cola, fruit juice, vegetable juice, carbonated water, and all
26other preparations commonly known as soft drinks of whatever

 

 

HB3211- 14 -LRB102 03943 HLH 13959 b

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

 

 

HB3211- 15 -LRB102 03943 HLH 13959 b

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

 

 

HB3211- 16 -LRB102 03943 HLH 13959 b

1medicines and drugs" includes medical cannabis purchased from
2a registered dispensing organization under the Compassionate
3Use of Medical Cannabis Program Act.
4    As used in this Section, "adult use cannabis" means
5cannabis subject to tax under the Cannabis Cultivation
6Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
7and does not include cannabis subject to tax under the
8Compassionate Use of Medical Cannabis Program Act.
9    Notwithstanding any other provision of law, during the
10week of Veterans Day each year, the following items are exempt
11from the tax imposed under this Act if the item is purchased by
12a veteran of the United States Armed Forces: food for human
13consumption that is to be consumed off the premises where it is
14sold (other than alcoholic beverages, soft drinks, and food
15that has been prepared for immediate consumption) and
16prescription and nonprescription medicines, drugs, medical
17appliances, products classified as Class III medical devices
18by the United States Food and Drug Administration that are
19used for cancer treatment pursuant to a prescription, as well
20as any accessories and components related to those devices,
21modifications to a motor vehicle for the purpose of rendering
22it usable by a person with a disability, and insulin, urine
23testing materials, syringes, and needles used by diabetics,
24for human use. During the week of Veterans Day each year, the
25tax on general merchandise shall be imposed at the rate of 5%
26if the merchandise is purchased by a veteran of the United

 

 

HB3211- 17 -LRB102 03943 HLH 13959 b

1States Armed Forces. The exemption and reduction under this
2paragraph is exempt from the provisions of Section 3-90.
3    If the property that is purchased at retail from a
4retailer is acquired outside Illinois and used outside
5Illinois before being brought to Illinois for use here and is
6taxable under this Act, the "selling price" on which the tax is
7computed shall be reduced by an amount that represents a
8reasonable allowance for depreciation for the period of prior
9out-of-state use.
10(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
11101-593, eff. 12-4-19.)
 
12    Section 15. The Service Use Tax Act is amended by changing
13Section 3-10 as follows:
 
14    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
15    Sec. 3-10. Rate of tax. Unless otherwise provided in this
16Section, the tax imposed by this Act is at the rate of 6.25% of
17the selling price of tangible personal property transferred as
18an incident to the sale of service, but, for the purpose of
19computing this tax, in no event shall the selling price be less
20than the cost price of the property to the serviceman.
21    Beginning on July 1, 2000 and through December 31, 2000,
22with respect to motor fuel, as defined in Section 1.1 of the
23Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
24the Use Tax Act, the tax is imposed at the rate of 1.25%.

 

 

HB3211- 18 -LRB102 03943 HLH 13959 b

1    With respect to gasohol, as defined in the Use Tax Act, the
2tax imposed by this Act applies to (i) 70% of the selling price
3of property transferred as an incident to the sale of service
4on or after January 1, 1990, and before July 1, 2003, (ii) 80%
5of the selling price of property transferred as an incident to
6the sale of service on or after July 1, 2003 and on or before
7July 1, 2017, and (iii) 100% of the selling price thereafter.
8If, at any time, however, the tax under this Act on sales of
9gasohol, as defined in the Use Tax Act, is imposed at the rate
10of 1.25%, then the tax imposed by this Act applies to 100% of
11the proceeds of sales of gasohol made during that time.
12    With respect to majority blended ethanol fuel, as defined
13in the Use Tax Act, the tax imposed by this Act does not apply
14to the selling price of property transferred as an incident to
15the sale of service on or after July 1, 2003 and on or before
16December 31, 2023 but applies to 100% of the selling price
17thereafter.
18    With respect to biodiesel blends, as defined in the Use
19Tax Act, with no less than 1% and no more than 10% biodiesel,
20the tax imposed by this Act applies to (i) 80% of the selling
21price of property transferred as an incident to the sale of
22service on or after July 1, 2003 and on or before December 31,
232018 and (ii) 100% of the proceeds of the selling price
24thereafter. If, at any time, however, the tax under this Act on
25sales of biodiesel blends, as defined in the Use Tax Act, with
26no less than 1% and no more than 10% biodiesel is imposed at

 

 

HB3211- 19 -LRB102 03943 HLH 13959 b

1the rate of 1.25%, then the tax imposed by this Act applies to
2100% of the proceeds of sales of biodiesel blends with no less
3than 1% and no more than 10% biodiesel made during that time.
4    With respect to 100% biodiesel, as defined in the Use Tax
5Act, and biodiesel blends, as defined in the Use Tax Act, with
6more than 10% but no more than 99% biodiesel, the tax imposed
7by this Act does not apply to the proceeds of the selling price
8of property transferred as an incident to the sale of service
9on or after July 1, 2003 and on or before December 31, 2023 but
10applies to 100% of the selling price thereafter.
11    At the election of any registered serviceman made for each
12fiscal year, sales of service in which the aggregate annual
13cost price of tangible personal property transferred as an
14incident to the sales of service is less than 35%, or 75% in
15the case of servicemen transferring prescription drugs or
16servicemen engaged in graphic arts production, of the
17aggregate annual total gross receipts from all sales of
18service, the tax imposed by this Act shall be based on the
19serviceman's cost price of the tangible personal property
20transferred as an incident to the sale of those services.
21    The tax shall be imposed at the rate of 1% on food prepared
22for immediate consumption and transferred incident to a sale
23of service subject to this Act or the Service Occupation Tax
24Act by an entity licensed under the Hospital Licensing Act,
25the Nursing Home Care Act, the ID/DD Community Care Act, the
26MC/DD Act, the Specialized Mental Health Rehabilitation Act of

 

 

HB3211- 20 -LRB102 03943 HLH 13959 b

12013, or the Child Care Act of 1969. The tax shall also be
2imposed at the rate of 1% on food for human consumption that is
3to be consumed off the premises where it is sold (other than
4alcoholic beverages, food consisting of or infused with adult
5use cannabis, soft drinks, and food that has been prepared for
6immediate consumption and is not otherwise included in this
7paragraph) and prescription and nonprescription medicines,
8drugs, medical appliances, products classified as Class III
9medical devices by the United States Food and Drug
10Administration that are used for cancer treatment pursuant to
11a prescription, as well as any accessories and components
12related to those devices, modifications to a motor vehicle for
13the purpose of rendering it usable by a person with a
14disability, and insulin, urine testing materials, syringes,
15and needles used by diabetics, for human use. For the purposes
16of this Section, until September 1, 2009: the term "soft
17drinks" means any complete, finished, ready-to-use,
18non-alcoholic drink, whether carbonated or not, including but
19not limited to soda water, cola, fruit juice, vegetable juice,
20carbonated water, and all other preparations commonly known as
21soft drinks of whatever kind or description that are contained
22in any closed or sealed bottle, can, carton, or container,
23regardless of size; but "soft drinks" does not include coffee,
24tea, non-carbonated water, infant formula, milk or milk
25products as defined in the Grade A Pasteurized Milk and Milk
26Products Act, or drinks containing 50% or more natural fruit

 

 

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

 

 

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

 

 

HB3211- 23 -LRB102 03943 HLH 13959 b

1Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
2and does not include cannabis subject to tax under the
3Compassionate Use of Medical Cannabis Program Act.
4    Notwithstanding any other provision of law, during the
5week of Veterans Day each year, the following items are exempt
6from the tax imposed under this Act if the item is purchased by
7a veteran of the United States Armed Forces: food for human
8consumption that is to be consumed off the premises where it is
9sold (other than alcoholic beverages, soft drinks, and food
10that has been prepared for immediate consumption) and
11prescription and nonprescription medicines, drugs, medical
12appliances, products classified as Class III medical devices
13by the United States Food and Drug Administration that are
14used for cancer treatment pursuant to a prescription, as well
15as any accessories and components related to those devices,
16modifications to a motor vehicle for the purpose of rendering
17it usable by a person with a disability, and insulin, urine
18testing materials, syringes, and needles used by diabetics,
19for human use. During the week of Veterans Day each year, the
20tax on general merchandise shall be imposed at the rate of 5%
21if the merchandise is purchased by a veteran of the United
22States Armed Forces. The exemption and reduction under this
23paragraph is exempt from the provisions of Section 3-75.
24    If the property that is acquired from a serviceman is
25acquired outside Illinois and used outside Illinois before
26being brought to Illinois for use here and is taxable under

 

 

HB3211- 24 -LRB102 03943 HLH 13959 b

1this Act, the "selling price" on which the tax is computed
2shall be reduced by an amount that represents a reasonable
3allowance for depreciation for the period of prior
4out-of-state use.
5(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
6101-593, eff. 12-4-19.)
 
7    Section 20. The Service Occupation Tax Act is amended by
8changing Section 3-10 as follows:
 
9    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
10    Sec. 3-10. Rate of tax. Unless otherwise provided in this
11Section, the tax imposed by this Act is at the rate of 6.25% of
12the "selling price", as defined in Section 2 of the Service Use
13Tax Act, of the tangible personal property. For the purpose of
14computing this tax, in no event shall the "selling price" be
15less than the cost price to the serviceman of the tangible
16personal property transferred. The selling price of each item
17of tangible personal property transferred as an incident of a
18sale of service may be shown as a distinct and separate item on
19the serviceman's billing to the service customer. If the
20selling price is not so shown, the selling price of the
21tangible personal property is deemed to be 50% of the
22serviceman's entire billing to the service customer. When,
23however, a serviceman contracts to design, develop, and
24produce special order machinery or equipment, the tax imposed

 

 

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1by this Act shall be based on the serviceman's cost price of
2the tangible personal property transferred incident to the
3completion of the contract.
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    With respect to gasohol, as defined in the Use Tax Act, the
9tax imposed by this Act shall apply to (i) 70% of the cost
10price of property transferred as an incident to the sale of
11service on or after January 1, 1990, and before July 1, 2003,
12(ii) 80% of the selling price of property transferred as an
13incident to the sale of service on or after July 1, 2003 and on
14or before July 1, 2017, and (iii) 100% of the cost price
15thereafter. If, at any time, however, the tax under this Act on
16sales of gasohol, as defined in the Use Tax Act, is imposed at
17the rate of 1.25%, then the tax imposed by this Act applies to
18100% of the proceeds of sales of gasohol made during that time.
19    With respect to majority blended ethanol fuel, as defined
20in the Use Tax Act, the tax imposed by this Act does not apply
21to the selling price of property transferred as an incident to
22the sale of service on or after July 1, 2003 and on or before
23December 31, 2023 but applies to 100% of the selling price
24thereafter.
25    With respect to biodiesel blends, as defined in the Use
26Tax Act, with no less than 1% and no more than 10% biodiesel,

 

 

HB3211- 26 -LRB102 03943 HLH 13959 b

1the tax imposed by this Act applies to (i) 80% of the selling
2price of property transferred as an incident to the sale of
3service on or after July 1, 2003 and on or before December 31,
42018 and (ii) 100% of the proceeds of the selling price
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 material, the tax
14imposed by this Act does not apply to the proceeds of the
15selling price of property transferred as an incident to the
16sale of service on or after July 1, 2003 and on or before
17December 31, 2023 but applies to 100% of the selling price
18thereafter.
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
25aggregate annual total gross receipts from all sales of
26service, the tax imposed by this Act shall be based on the

 

 

HB3211- 27 -LRB102 03943 HLH 13959 b

1serviceman's cost price of the tangible personal property
2transferred incident 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
5of service subject to this Act or the Service Occupation Tax
6Act by an entity licensed under the Hospital Licensing Act,
7the Nursing Home Care Act, the ID/DD Community Care Act, the
8MC/DD Act, the Specialized Mental Health Rehabilitation Act of
92013, or the Child Care Act of 1969. The tax shall also be
10imposed at the rate of 1% on food for human consumption that is
11to be consumed off the premises where it is sold (other than
12alcoholic beverages, food consisting of or infused with adult
13use cannabis, soft drinks, and food that has been prepared for
14immediate consumption and is not otherwise included in this
15paragraph) and prescription and nonprescription medicines,
16drugs, medical appliances, products classified as Class III
17medical devices by the United States Food and Drug
18Administration that are used for cancer treatment pursuant to
19a prescription, as well as any accessories and components
20related to those devices, modifications to a motor vehicle for
21the purpose of rendering it usable by a person with a
22disability, and insulin, urine testing materials, syringes,
23and needles used by diabetics, for human use. For the purposes
24of this Section, until September 1, 2009: the term "soft
25drinks" means any complete, finished, ready-to-use,
26non-alcoholic drink, whether carbonated or not, including but

 

 

HB3211- 28 -LRB102 03943 HLH 13959 b

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

 

 

HB3211- 29 -LRB102 03943 HLH 13959 b

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

 

 

HB3211- 30 -LRB102 03943 HLH 13959 b

1    substance or preparation.
2    Beginning on January 1, 2014 (the effective date of Public
3Act 98-122), "prescription and nonprescription medicines and
4drugs" includes medical cannabis purchased from a registered
5dispensing organization under the Compassionate Use of Medical
6Cannabis Program Act.
7    Notwithstanding any other provision of law, during the
8week of Veterans Day each year, the following items are exempt
9from the tax imposed under this Act if the item is purchased by
10a veteran of the United States Armed Forces: food for human
11consumption that is to be consumed off the premises where it is
12sold (other than alcoholic beverages, soft drinks, and food
13that has been prepared for immediate consumption) and
14prescription and nonprescription medicines, drugs, medical
15appliances, products classified as Class III medical devices
16by the United States Food and Drug Administration that are
17used for cancer treatment pursuant to a prescription, as well
18as any accessories and components related to those devices,
19modifications to a motor vehicle for the purpose of rendering
20it usable by a person with a disability, and insulin, urine
21testing materials, syringes, and needles used by diabetics,
22for human use. During the week of Veterans Day each year, the
23tax on general merchandise shall be imposed at the rate of 5%
24if the merchandise is purchased by a veteran of the United
25States Armed Forces. The exemption and reduction under this
26paragraph is exempt from the provisions of Section 3-55.

 

 

HB3211- 31 -LRB102 03943 HLH 13959 b

1    As used in this Section, "adult use cannabis" means
2cannabis subject to tax under the Cannabis Cultivation
3Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
4and does not include cannabis subject to tax under the
5Compassionate Use of Medical Cannabis Program Act.
6(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
7101-593, eff. 12-4-19.)
 
8    Section 25. The Retailers' Occupation Tax Act is amended
9by changing Section 2-10 as follows:
 
10    (35 ILCS 120/2-10)
11    Sec. 2-10. Rate of tax. Unless otherwise provided in this
12Section, the tax imposed by this Act is at the rate of 6.25% of
13gross receipts from sales of tangible personal property made
14in the course of business.
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    Beginning on August 6, 2010 through August 15, 2010, with
20respect to sales tax holiday items as defined in Section 2-8 of
21this Act, the tax is imposed at the rate of 1.25%.
22    Within 14 days after the effective date of this amendatory
23Act of the 91st General Assembly, each retailer of motor fuel
24and gasohol shall cause the following notice to be posted in a

 

 

HB3211- 32 -LRB102 03943 HLH 13959 b

1prominently visible place on each retail dispensing device
2that is used to dispense motor fuel or gasohol in the State of
3Illinois: "As of July 1, 2000, the State of Illinois has
4eliminated the State's share of sales tax on motor fuel and
5gasohol through December 31, 2000. The price on this pump
6should reflect the elimination of the tax." The notice shall
7be printed in bold print on a sign that is no smaller than 4
8inches by 8 inches. The sign shall be clearly visible to
9customers. Any retailer who fails to post or maintain a
10required sign through December 31, 2000 is guilty of a petty
11offense for which the fine shall be $500 per day per each
12retail premises where a violation occurs.
13    With respect to gasohol, as defined in the Use Tax Act, the
14tax imposed by this Act applies to (i) 70% of the proceeds of
15sales made on or after January 1, 1990, and before July 1,
162003, (ii) 80% of the proceeds of sales made on or after July
171, 2003 and on or before July 1, 2017, and (iii) 100% of the
18proceeds of sales made thereafter. If, at any time, however,
19the tax under this Act on sales of gasohol, as defined in the
20Use Tax Act, is imposed at the rate of 1.25%, then the tax
21imposed by this Act applies to 100% of the proceeds of sales of
22gasohol made during that time.
23    With respect to majority blended ethanol fuel, as defined
24in the Use Tax Act, the tax imposed by this Act does not apply
25to the proceeds of sales made on or after July 1, 2003 and on
26or before December 31, 2023 but applies to 100% of the proceeds

 

 

HB3211- 33 -LRB102 03943 HLH 13959 b

1of sales made thereafter.
2    With respect to biodiesel blends, as defined in the Use
3Tax Act, with no less than 1% and no more than 10% biodiesel,
4the tax imposed by this Act applies to (i) 80% of the proceeds
5of sales made on or after July 1, 2003 and on or before
6December 31, 2018 and (ii) 100% of the proceeds of sales made
7thereafter. If, at any time, however, the tax under this Act on
8sales of biodiesel blends, as defined in the Use Tax Act, with
9no less than 1% and no more than 10% biodiesel is imposed at
10the rate of 1.25%, then the tax imposed by this Act applies to
11100% of the proceeds of sales of biodiesel blends with no less
12than 1% and no more than 10% biodiesel made during that time.
13    With respect to 100% biodiesel, as defined in the Use Tax
14Act, and biodiesel blends, as defined in the Use Tax Act, with
15more than 10% but no more than 99% biodiesel, the tax imposed
16by this Act does not apply to the proceeds of sales made on or
17after July 1, 2003 and on or before December 31, 2023 but
18applies to 100% of the proceeds of sales made thereafter.
19    With respect to food for human consumption that is to be
20consumed off the premises where it is sold (other than
21alcoholic beverages, food consisting of or infused with adult
22use cannabis, soft drinks, and food that has been prepared for
23immediate consumption) and prescription and nonprescription
24medicines, drugs, medical appliances, products classified as
25Class III medical devices by the United States Food and Drug
26Administration that are used for cancer treatment pursuant to

 

 

HB3211- 34 -LRB102 03943 HLH 13959 b

1a prescription, as well as any accessories and components
2related to those devices, modifications to a motor vehicle for
3the purpose of rendering it usable by a person with a
4disability, and insulin, urine testing materials, syringes,
5and needles used by diabetics, for human use, the tax is
6imposed at the rate of 1%. For the purposes of this Section,
7until September 1, 2009: the term "soft drinks" means any
8complete, finished, ready-to-use, non-alcoholic drink, whether
9carbonated or not, including but not limited to soda water,
10cola, fruit juice, vegetable juice, carbonated water, and all
11other preparations commonly known as soft drinks of whatever
12kind or description that are contained in any closed or sealed
13bottle, can, carton, or container, regardless of size; but
14"soft drinks" does not include coffee, tea, non-carbonated
15water, infant formula, milk or milk products as defined in the
16Grade A Pasteurized Milk and Milk Products Act, or drinks
17containing 50% or more natural fruit or vegetable juice.
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

 

 

HB3211- 35 -LRB102 03943 HLH 13959 b

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
16other ingredients 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

 

 

HB3211- 36 -LRB102 03943 HLH 13959 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
13a registered dispensing organization under the Compassionate
14Use of Medical Cannabis Program Act.
15    Notwithstanding any other provision of law, during the
16week of Veterans Day each year, the following items are exempt
17from the tax imposed under this Act if the item is purchased by
18a veteran of the United States Armed Forces: food for human
19consumption that is to be consumed off the premises where it is
20sold (other than alcoholic beverages, soft drinks, and food
21that has been prepared for immediate consumption) and
22prescription and nonprescription medicines, drugs, medical
23appliances, products classified as Class III medical devices
24by the United States Food and Drug Administration that are
25used for cancer treatment pursuant to a prescription, as well
26as any accessories and components related to those devices,

 

 

HB3211- 37 -LRB102 03943 HLH 13959 b

1modifications to a motor vehicle for the purpose of rendering
2it usable by a person with a disability, and insulin, urine
3testing materials, syringes, and needles used by diabetics,
4for human use. During the week of Veterans Day each year, the
5tax on general merchandise shall be imposed at the rate of 5%
6if the merchandise is purchased by a veteran of the United
7States Armed Forces. The exemption and reduction under this
8paragraph is exempt from the provisions of Section 2-70.
9    As used in this Section, "adult use cannabis" means
10cannabis subject to tax under the Cannabis Cultivation
11Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
12and does not include cannabis subject to tax under the
13Compassionate Use of Medical Cannabis Program Act.
14(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
15101-593, eff. 12-4-19.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.