102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3999

 

Introduced 3/4/2021, by Rep. Katie Stuart

 

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 Retailers' Occupation Tax Act. Provides that internal (also known as female) and male condoms, incontinence products, diapers, and baby wipes shall be taxed by the State at a rate of 1% (currently, 6.25%). Provides that the net revenue from the 1% tax collected from the sale of those products shall be deposited into the State and Local Sales Tax Reform Fund. Amends the Use Tax, Service Occupation Tax, and Service Occupation Use Tax Acts to make conforming changes.


LRB102 03858 HLH 13872 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3999LRB102 03858 HLH 13872 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
14functionally used or consumed is a by-product or waste product
15that has been refined, manufactured, or produced from property
16purchased at retail, then the tax is imposed on the lower of
17the fair market value, if any, of the specific property so used
18in this State or on the selling price of the property purchased
19at retail. For purposes of this Section "fair market value"
20means the price at which property would change hands between a
21willing buyer and a willing seller, neither being under any
22compulsion to buy or sell and both having reasonable knowledge
23of the relevant facts. The fair market value shall be

 

 

HB3999- 2 -LRB102 03858 HLH 13872 b

1established by Illinois sales by the taxpayer of the same
2property as that functionally used or consumed, or if there
3are no such sales by the taxpayer, then comparable sales or
4purchases of property of like 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

 

 

HB3999- 3 -LRB102 03858 HLH 13872 b

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 food for human consumption that is to be
16consumed off the premises where it is sold (other than
17alcoholic beverages, food consisting of or infused with adult
18use cannabis, soft drinks, and food that has been prepared for
19immediate consumption) and prescription and nonprescription
20medicines, drugs, medical appliances, internal (also known as
21female) and male condoms, incontinence products, diapers, baby
22wipes, products classified as Class III medical devices by the
23United States Food and Drug Administration that are used for
24cancer treatment pursuant to a prescription, as well as any
25accessories and components related to those devices,
26modifications to a motor vehicle for the purpose of rendering

 

 

HB3999- 4 -LRB102 03858 HLH 13872 b

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

 

 

HB3999- 5 -LRB102 03858 HLH 13872 b

1regardless of the location of the vending machine. Beginning
2August 1, 2009, and notwithstanding any other provisions of
3this Act, "food for human consumption that is to be consumed
4off the premises where it is sold" includes all food sold
5through a vending machine, except soft drinks, candy, and food
6products that are dispensed hot from a vending machine,
7regardless of the location of the vending machine.
8    Notwithstanding any other provisions of this Act,
9beginning September 1, 2009, "food for human consumption that
10is to be consumed off the premises where it is sold" does not
11include candy. For purposes of this Section, "candy" means a
12preparation of sugar, honey, or other natural or artificial
13sweeteners in combination with chocolate, fruits, nuts or
14other ingredients 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

 

 

HB3999- 6 -LRB102 03858 HLH 13872 b

1use that contains a label that identifies the product as a drug
2as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
3label includes:
4        (A) A "Drug Facts" panel; or
5        (B) A statement of the "active ingredient(s)" with a
6    list of those ingredients contained in the compound,
7    substance or preparation.
8    Beginning on the effective date of this amendatory Act of
9the 98th General Assembly, "prescription and nonprescription
10medicines and drugs" includes medical cannabis purchased from
11a registered dispensing organization under the Compassionate
12Use of Medical Cannabis Program Act.
13    As used in this Section, "adult use cannabis" means
14cannabis subject to tax under the Cannabis Cultivation
15Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
16and does not include cannabis subject to tax under the
17Compassionate Use of Medical Cannabis Program Act.
18    If the property that is purchased at retail from a
19retailer is acquired outside Illinois and used outside
20Illinois before being brought to Illinois for use here and is
21taxable under this Act, the "selling price" on which the tax is
22computed shall be reduced by an amount that represents a
23reasonable allowance for depreciation for the period of prior
24out-of-state use.
25(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
26101-593, eff. 12-4-19.)
 

 

 

HB3999- 7 -LRB102 03858 HLH 13872 b

1    Section 10. The Service Use Tax Act is amended by changing
2Section 3-10 as follows:
 
3    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
4    Sec. 3-10. Rate of tax. Unless otherwise provided in this
5Section, the tax imposed by this Act is at the rate of 6.25% of
6the selling price of tangible personal property transferred as
7an incident to the sale of service, but, for the purpose of
8computing this tax, in no event shall the selling price be less
9than the cost price of the property to the serviceman.
10    Beginning on July 1, 2000 and through December 31, 2000,
11with respect to motor fuel, as defined in Section 1.1 of the
12Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
13the Use Tax Act, the tax is imposed at the rate of 1.25%.
14    With respect to gasohol, as defined in the Use Tax Act, the
15tax imposed by this Act applies to (i) 70% of the selling price
16of property transferred as an incident to the sale of service
17on or after January 1, 1990, and before July 1, 2003, (ii) 80%
18of the selling price of property transferred as an incident to
19the sale of service on or after July 1, 2003 and on or before
20July 1, 2017, and (iii) 100% of the selling price thereafter.
21If, at any time, however, the tax under this Act on sales of
22gasohol, as defined in the Use Tax Act, is imposed at the rate
23of 1.25%, then the tax imposed by this Act applies to 100% of
24the proceeds of sales of gasohol made during that time.

 

 

HB3999- 8 -LRB102 03858 HLH 13872 b

1    With respect to majority blended ethanol fuel, as defined
2in the Use Tax Act, the tax imposed by this Act does not apply
3to the selling price of property transferred as an incident to
4the sale of service on or after July 1, 2003 and on or before
5December 31, 2023 but applies to 100% of the selling price
6thereafter.
7    With respect to biodiesel blends, as defined in the Use
8Tax Act, with no less than 1% and no more than 10% biodiesel,
9the tax imposed by this Act applies to (i) 80% of the selling
10price of property transferred as an incident to the sale of
11service on or after July 1, 2003 and on or before December 31,
122018 and (ii) 100% of the proceeds of the selling price
13thereafter. If, at any time, however, the tax under this Act on
14sales of biodiesel blends, as defined in the Use Tax Act, with
15no less than 1% and no more than 10% biodiesel is imposed at
16the rate of 1.25%, then the tax imposed by this Act applies to
17100% of the proceeds of sales of biodiesel blends with no less
18than 1% and no more than 10% biodiesel made during that time.
19    With respect to 100% biodiesel, as defined in the Use Tax
20Act, and biodiesel blends, as defined in the Use Tax Act, with
21more than 10% but no more than 99% biodiesel, the tax imposed
22by this Act does not apply to the proceeds of the selling price
23of property transferred as an incident to the sale of service
24on or after July 1, 2003 and on or before December 31, 2023 but
25applies to 100% of the selling price thereafter.
26    At the election of any registered serviceman made for each

 

 

HB3999- 9 -LRB102 03858 HLH 13872 b

1fiscal year, sales of service in which the aggregate annual
2cost price of tangible personal property transferred as an
3incident to the sales of service is less than 35%, or 75% in
4the case of servicemen transferring prescription drugs or
5servicemen engaged in graphic arts production, of the
6aggregate annual total gross receipts from all sales of
7service, the tax imposed by this Act shall be based on the
8serviceman's cost price of the tangible personal property
9transferred as an incident to the sale of those services.
10    The tax shall be imposed at the rate of 1% on food prepared
11for immediate consumption and transferred incident to a sale
12of service subject to this Act or the Service Occupation Tax
13Act by an entity licensed under the Hospital Licensing Act,
14the Nursing Home Care Act, the ID/DD Community Care Act, the
15MC/DD Act, the Specialized Mental Health Rehabilitation Act of
162013, or the Child Care Act of 1969. The tax shall also be
17imposed at the rate of 1% on food for human consumption that is
18to be consumed off the premises where it is sold (other than
19alcoholic beverages, food consisting of or infused with adult
20use cannabis, soft drinks, and food that has been prepared for
21immediate consumption and is not otherwise included in this
22paragraph) and prescription and nonprescription medicines,
23drugs, medical appliances, internal (also known as female) and
24male condoms, incontinence products, diapers, baby wipes,
25products classified as Class III medical devices by the United
26States Food and Drug Administration that are used for cancer

 

 

HB3999- 10 -LRB102 03858 HLH 13872 b

1treatment pursuant to a prescription, as well as any
2accessories and components related to those devices,
3modifications to a motor vehicle for the purpose of rendering
4it usable by a person with a disability, and insulin, urine
5testing materials, syringes, and needles used by diabetics,
6for human use. For the purposes of this Section, until
7September 1, 2009: the term "soft drinks" means any complete,
8finished, 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

 

 

HB3999- 11 -LRB102 03858 HLH 13872 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

 

 

HB3999- 12 -LRB102 03858 HLH 13872 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 January 1, 2014 (the effective date of Public
11Act 98-122), "prescription and nonprescription medicines and
12drugs" includes medical cannabis purchased from a registered
13dispensing organization under the Compassionate Use of Medical
14Cannabis Program Act.
15    As used in this Section, "adult use cannabis" means
16cannabis subject to tax under the Cannabis Cultivation
17Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
18and does not include cannabis subject to tax under the
19Compassionate Use of Medical Cannabis Program Act.
20    If the property that is acquired from a serviceman is
21acquired outside Illinois and used outside Illinois before
22being brought to Illinois for use here and is taxable under
23this Act, the "selling price" on which the tax is computed
24shall be reduced by an amount that represents a reasonable
25allowance for depreciation for the period of prior
26out-of-state use.

 

 

HB3999- 13 -LRB102 03858 HLH 13872 b

1(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
2101-593, eff. 12-4-19.)
 
3    Section 15. The Service Occupation Tax Act is amended by
4changing Section 3-10 as follows:
 
5    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
6    Sec. 3-10. Rate of tax. Unless otherwise provided in this
7Section, the tax imposed by this Act is at the rate of 6.25% of
8the "selling price", as defined in Section 2 of the Service Use
9Tax Act, of the tangible personal property. For the purpose of
10computing this tax, in no event shall the "selling price" be
11less than the cost price to the serviceman of the tangible
12personal property transferred. The selling price of each item
13of tangible personal property transferred as an incident of a
14sale of service may be shown as a distinct and separate item on
15the serviceman's billing to the service customer. If the
16selling price is not so shown, the selling price of the
17tangible personal property is deemed to be 50% of the
18serviceman's entire billing to the service customer. When,
19however, a serviceman contracts to design, develop, and
20produce special order machinery or equipment, the tax imposed
21by this Act shall be based on the serviceman's cost price of
22the tangible personal property transferred incident to the
23completion of the contract.
24    Beginning on July 1, 2000 and through December 31, 2000,

 

 

HB3999- 14 -LRB102 03858 HLH 13872 b

1with respect to motor fuel, as defined in Section 1.1 of the
2Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
3the Use Tax Act, the tax is imposed at the rate of 1.25%.
4    With respect to gasohol, as defined in the Use Tax Act, the
5tax imposed by this Act shall apply to (i) 70% of the cost
6price of property transferred as an incident to the sale of
7service on or after January 1, 1990, and before July 1, 2003,
8(ii) 80% of the selling price of property transferred as an
9incident to the sale of service on or after July 1, 2003 and on
10or before July 1, 2017, and (iii) 100% of the cost price
11thereafter. If, at any time, however, the tax under this Act on
12sales of gasohol, as defined in the Use Tax Act, is imposed at
13the rate of 1.25%, then the tax imposed by this Act applies to
14100% of the proceeds of sales of gasohol 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 selling price of property transferred as an incident to
18the sale of service on or after July 1, 2003 and on or before
19December 31, 2023 but applies to 100% of the selling price
20thereafter.
21    With respect to biodiesel blends, as defined in the Use
22Tax Act, with no less than 1% and no more than 10% biodiesel,
23the tax imposed by this Act applies to (i) 80% of the selling
24price of property transferred as an incident to the sale of
25service on or after July 1, 2003 and on or before December 31,
262018 and (ii) 100% of the proceeds of the selling price

 

 

HB3999- 15 -LRB102 03858 HLH 13872 b

1thereafter. If, at any time, however, the tax under this Act on
2sales of biodiesel blends, as defined in the Use Tax Act, with
3no less than 1% and no more than 10% biodiesel is imposed at
4the rate of 1.25%, then the tax imposed by this Act applies to
5100% of the proceeds of sales of biodiesel blends with no less
6than 1% and no more than 10% biodiesel made during that time.
7    With respect to 100% biodiesel, as defined in the Use Tax
8Act, and biodiesel blends, as defined in the Use Tax Act, with
9more than 10% but no more than 99% biodiesel material, the tax
10imposed by this Act does not apply to the proceeds of the
11selling price of property transferred as an incident to the
12sale of service on or after July 1, 2003 and on or before
13December 31, 2023 but applies to 100% of the selling price
14thereafter.
15    At the election of any registered serviceman made for each
16fiscal year, sales of service in which the aggregate annual
17cost price of tangible personal property transferred as an
18incident to the sales of service is less than 35%, or 75% in
19the case of servicemen transferring prescription drugs or
20servicemen engaged in graphic arts production, of the
21aggregate annual total gross receipts from all sales of
22service, the tax imposed by this Act shall be based on the
23serviceman's cost price of the tangible personal property
24transferred incident to the sale of those services.
25    The tax shall be imposed at the rate of 1% on food prepared
26for immediate consumption and transferred incident to a sale

 

 

HB3999- 16 -LRB102 03858 HLH 13872 b

1of service subject to this Act or the Service Occupation Tax
2Act by an entity licensed under the Hospital Licensing Act,
3the Nursing Home Care Act, the ID/DD Community Care Act, the
4MC/DD Act, the Specialized Mental Health Rehabilitation Act of
52013, or the Child Care Act of 1969. The tax shall also be
6imposed at the rate of 1% on food for human consumption that is
7to be consumed off the premises where it is sold (other than
8alcoholic beverages, food consisting of or infused with adult
9use cannabis, soft drinks, and food that has been prepared for
10immediate consumption and is not otherwise included in this
11paragraph) and prescription and nonprescription medicines,
12drugs, medical appliances, internal (also known as female) and
13male condoms, incontinence products, diapers, baby wipes,
14products classified as Class III medical devices by the United
15States Food and Drug Administration that are used for cancer
16treatment pursuant to a prescription, as well as any
17accessories and components related to those devices,
18modifications to a motor vehicle for the purpose of rendering
19it usable by a person with a disability, and insulin, urine
20testing materials, syringes, and needles used by diabetics,
21for human use. For the purposes of this Section, until
22September 1, 2009: the term "soft drinks" means any complete,
23finished, 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

 

 

HB3999- 17 -LRB102 03858 HLH 13872 b

1kind or description that are contained in any closed or sealed
2can, carton, or container, regardless of size; but "soft
3drinks" does not include coffee, tea, non-carbonated water,
4infant formula, milk or milk products as defined in the Grade A
5Pasteurized Milk and Milk Products Act, or drinks containing
650% 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

 

 

HB3999- 18 -LRB102 03858 HLH 13872 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 January 1, 2014 (the effective date of Public
26Act 98-122), "prescription and nonprescription medicines and

 

 

HB3999- 19 -LRB102 03858 HLH 13872 b

1drugs" includes medical cannabis purchased from a registered
2dispensing organization under the Compassionate Use of Medical
3Cannabis 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(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
10101-593, eff. 12-4-19.)
 
11    Section 20. The Retailers' Occupation Tax Act is amended
12by changing Section 2-10 as follows:
 
13    (35 ILCS 120/2-10)
14    Sec. 2-10. Rate of tax. Unless otherwise provided in this
15Section, the tax imposed by this Act is at the rate of 6.25% of
16gross receipts from sales of tangible personal property made
17in the course of business.
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    Beginning on August 6, 2010 through August 15, 2010, with
23respect to sales tax holiday items as defined in Section 2-8 of
24this Act, the tax is imposed at the rate of 1.25%.

 

 

HB3999- 20 -LRB102 03858 HLH 13872 b

1    Within 14 days after the effective date of this amendatory
2Act of the 91st General Assembly, each retailer of motor fuel
3and gasohol shall cause the following notice to be posted in a
4prominently visible place on each retail dispensing device
5that is used to dispense motor fuel or gasohol in the State of
6Illinois: "As of July 1, 2000, the State of Illinois has
7eliminated the State's share of sales tax on motor fuel and
8gasohol through December 31, 2000. The price on this pump
9should reflect the elimination of the tax." The notice shall
10be printed in bold print on a sign that is no smaller than 4
11inches by 8 inches. The sign shall be clearly visible to
12customers. Any retailer who fails to post or maintain a
13required sign through December 31, 2000 is guilty of a petty
14offense for which the fine shall be $500 per day per each
15retail premises where a violation occurs.
16    With respect to gasohol, as defined in the Use Tax Act, the
17tax imposed by this Act applies to (i) 70% of the proceeds of
18sales made on or after January 1, 1990, and before July 1,
192003, (ii) 80% of the proceeds of sales made on or after July
201, 2003 and on or before July 1, 2017, and (iii) 100% of the
21proceeds of sales made thereafter. If, at any time, however,
22the tax under this Act on sales of gasohol, as defined in the
23Use Tax Act, is imposed at the rate of 1.25%, then the tax
24imposed by this Act applies to 100% of the proceeds of sales of
25gasohol made during that time.
26    With respect to majority blended ethanol fuel, as defined

 

 

HB3999- 21 -LRB102 03858 HLH 13872 b

1in the Use Tax Act, the tax imposed by this Act does not apply
2to the proceeds of sales made on or after July 1, 2003 and on
3or before December 31, 2023 but applies to 100% of the proceeds
4of sales made thereafter.
5    With respect to biodiesel blends, as defined in the Use
6Tax Act, with no less than 1% and no more than 10% biodiesel,
7the tax imposed by this Act applies to (i) 80% of the proceeds
8of sales made on or after July 1, 2003 and on or before
9December 31, 2018 and (ii) 100% of the proceeds of sales made
10thereafter. If, at any time, however, the tax under this Act on
11sales of biodiesel blends, as defined in the Use Tax Act, with
12no less than 1% and no more than 10% biodiesel is imposed at
13the rate of 1.25%, then the tax imposed by this Act applies to
14100% of the proceeds of sales of biodiesel blends with no less
15than 1% and no more than 10% biodiesel made during that time.
16    With respect to 100% biodiesel, as defined in the Use Tax
17Act, and biodiesel blends, as defined in the Use Tax Act, with
18more than 10% but no more than 99% biodiesel, the tax imposed
19by this Act does not apply to the proceeds of sales made on or
20after July 1, 2003 and on or before December 31, 2023 but
21applies to 100% of the proceeds of sales made thereafter.
22    With respect to food for human consumption that is to be
23consumed off the premises where it is sold (other than
24alcoholic beverages, food consisting of or infused with adult
25use cannabis, soft drinks, and food that has been prepared for
26immediate consumption) and prescription and nonprescription

 

 

HB3999- 22 -LRB102 03858 HLH 13872 b

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

 

 

HB3999- 23 -LRB102 03858 HLH 13872 b

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

 

 

HB3999- 24 -LRB102 03858 HLH 13872 b

1purposes of this Section, "grooming and hygiene products"
2includes, but is not limited to, soaps and cleaning solutions,
3shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
4lotions and screens, unless those products are available by
5prescription only, regardless of whether the products meet the
6definition of "over-the-counter-drugs". For the purposes of
7this paragraph, "over-the-counter-drug" means a drug for human
8use that contains a label that identifies the product as a drug
9as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
10label includes:
11        (A) A "Drug Facts" panel; or
12        (B) A statement of the "active ingredient(s)" with a
13    list of those ingredients contained in the compound,
14    substance or preparation.
15    Beginning on the effective date of this amendatory Act of
16the 98th General Assembly, "prescription and nonprescription
17medicines and drugs" includes medical cannabis purchased from
18a registered dispensing organization under the Compassionate
19Use of Medical Cannabis Program Act.
20    As used in this Section, "adult use cannabis" means
21cannabis subject to tax under the Cannabis Cultivation
22Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
23and does not include cannabis subject to tax under the
24Compassionate Use of Medical Cannabis Program Act.
25(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
26101-593, eff. 12-4-19.)