102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4945

 

Introduced 1/27/2022, by Rep. Dave Vella

 

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

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, with respect to toilet paper, tissues, and towelettes, the tax is imposed at the rate of 1%. Effective immediately.


LRB102 25340 HLH 34617 b

 

 

A BILL FOR

 

HB4945LRB102 25340 HLH 34617 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

 

 

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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

 

 

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1no more than 10% biodiesel, the tax imposed by this Act applies
2to (i) 80% of the proceeds of sales made on or after July 1,
32003 and on or before December 31, 2018 and (ii) 100% of the
4proceeds of sales made thereafter. If, at any time, however,
5the tax under this Act on sales of biodiesel blends with no
6less than 1% and no more than 10% biodiesel is imposed at the
7rate of 1.25%, then the tax imposed by this Act applies to 100%
8of the proceeds of sales of biodiesel blends with no less than
91% and no more than 10% biodiesel made during that time.
10    With respect to 100% biodiesel and biodiesel blends with
11more than 10% but no more than 99% biodiesel, the tax imposed
12by this Act does not apply to the proceeds of sales made on or
13after July 1, 2003 and on or before December 31, 2023 but
14applies to 100% of the proceeds of sales made thereafter.
15    With respect to 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, products classified as
21Class III medical devices by the United States Food and Drug
22Administration that are used for cancer treatment pursuant to
23a prescription, as well as any accessories and components
24related to those devices, modifications to a motor vehicle for
25the purpose of rendering it usable by a person with a
26disability, and insulin, blood sugar testing materials,

 

 

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

 

 

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

 

 

HB4945- 6 -LRB102 25340 HLH 34617 b

1label includes:
2        (A) A "Drug Facts" panel; or
3        (B) A statement of the "active ingredient(s)" with a
4    list of those ingredients contained in the compound,
5    substance or preparation.
6    Beginning on the effective date of this amendatory Act of
7the 98th General Assembly, "prescription and nonprescription
8medicines and drugs" includes medical cannabis purchased from
9a registered dispensing organization under the Compassionate
10Use of Medical Cannabis Program Act.
11    As used in this Section, "adult use cannabis" means
12cannabis subject to tax under the Cannabis Cultivation
13Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
14and does not include cannabis subject to tax under the
15Compassionate Use of Medical Cannabis Program Act.
16    Beginning on July 1, 2022, with respect to toilet paper,
17tissues, and towelettes, the tax is imposed at the rate of 1%.
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. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
26102-4, eff. 4-27-21.)
 

 

 

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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.

 

 

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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

 

 

HB4945- 9 -LRB102 25340 HLH 34617 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 Assisted Living and Shared
15Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
16Specialized Mental Health Rehabilitation Act of 2013, or the
17Child Care Act of 1969, or an entity that holds a permit issued
18pursuant to the Life Care Facilities Act. The tax shall also be
19imposed at the rate of 1% on food for human consumption that is
20to be consumed 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 is not otherwise included in this
24paragraph) and prescription and nonprescription medicines,
25drugs, medical appliances, products classified as Class III
26medical devices by the United States Food and Drug

 

 

HB4945- 10 -LRB102 25340 HLH 34617 b

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

 

 

HB4945- 11 -LRB102 25340 HLH 34617 b

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

 

 

HB4945- 12 -LRB102 25340 HLH 34617 b

1prescription only, regardless of whether the products meet the
2definition of "over-the-counter-drugs". For the purposes of
3this paragraph, "over-the-counter-drug" means a drug for human
4use that contains a label that identifies the product as a drug
5as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
6label includes:
7        (A) A "Drug Facts" panel; or
8        (B) A statement of the "active ingredient(s)" with a
9    list of those ingredients contained in the compound,
10    substance or preparation.
11    Beginning on January 1, 2014 (the effective date of Public
12Act 98-122), "prescription and nonprescription medicines and
13drugs" includes medical cannabis purchased from a registered
14dispensing organization under the Compassionate Use of Medical
15Cannabis Program Act.
16    As used in this Section, "adult use cannabis" means
17cannabis subject to tax under the Cannabis Cultivation
18Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
19and does not include cannabis subject to tax under the
20Compassionate Use of Medical Cannabis Program Act.
21    Beginning on July 1, 2022, with respect to toilet paper,
22tissues, and towelettes, the tax is imposed at the rate of 1%.
23    If the property that is acquired from a serviceman is
24acquired outside Illinois and used outside Illinois before
25being brought to Illinois for use here and is taxable under
26this Act, the "selling price" on which the tax is computed

 

 

HB4945- 13 -LRB102 25340 HLH 34617 b

1shall be reduced by an amount that represents a reasonable
2allowance for depreciation for the period of prior
3out-of-state use.
4(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
5102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
6    Section 15. The Service Occupation Tax Act is amended by
7changing Section 3-10 as follows:
 
8    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
9    Sec. 3-10. Rate of tax. Unless otherwise provided in this
10Section, the tax imposed by this Act is at the rate of 6.25% of
11the "selling price", as defined in Section 2 of the Service Use
12Tax Act, of the tangible personal property. For the purpose of
13computing this tax, in no event shall the "selling price" be
14less than the cost price to the serviceman of the tangible
15personal property transferred. The selling price of each item
16of tangible personal property transferred as an incident of a
17sale of service may be shown as a distinct and separate item on
18the serviceman's billing to the service customer. If the
19selling price is not so shown, the selling price of the
20tangible personal property is deemed to be 50% of the
21serviceman's entire billing to the service customer. When,
22however, a serviceman contracts to design, develop, and
23produce special order machinery or equipment, the tax imposed
24by this Act shall be based on the serviceman's cost price of

 

 

HB4945- 14 -LRB102 25340 HLH 34617 b

1the tangible personal property transferred incident to the
2completion of the contract.
3    Beginning on July 1, 2000 and through December 31, 2000,
4with respect to motor fuel, as defined in Section 1.1 of the
5Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
6the Use Tax Act, the tax is imposed at the rate of 1.25%.
7    With respect to gasohol, as defined in the Use Tax Act, the
8tax imposed by this Act shall apply to (i) 70% of the cost
9price of property transferred as an incident to the sale of
10service on or after January 1, 1990, and before July 1, 2003,
11(ii) 80% of the selling price of property transferred as an
12incident to the sale of service on or after July 1, 2003 and on
13or before July 1, 2017, and (iii) 100% of the cost price
14thereafter. If, at any time, however, the tax under this Act on
15sales of gasohol, as defined in the Use Tax Act, is imposed at
16the rate of 1.25%, then the tax imposed by this Act applies to
17100% of the proceeds of sales of gasohol made during that time.
18    With respect to majority blended ethanol fuel, as defined
19in the Use Tax Act, the tax imposed by this Act does not apply
20to the selling price of property transferred as an incident to
21the sale of service on or after July 1, 2003 and on or before
22December 31, 2023 but applies to 100% of the selling price
23thereafter.
24    With respect to biodiesel blends, as defined in the Use
25Tax Act, with no less than 1% and no more than 10% biodiesel,
26the tax imposed by this Act applies to (i) 80% of the selling

 

 

HB4945- 15 -LRB102 25340 HLH 34617 b

1price of property transferred as an incident to the sale of
2service on or after July 1, 2003 and on or before December 31,
32018 and (ii) 100% of the proceeds of the selling price
4thereafter. If, at any time, however, the tax under this Act on
5sales of biodiesel blends, as defined in the Use Tax Act, with
6no less than 1% and no more than 10% biodiesel is imposed at
7the rate of 1.25%, then the tax imposed by this Act applies to
8100% of the proceeds of sales of biodiesel blends with no less
9than 1% and no more than 10% biodiesel made during that time.
10    With respect to 100% biodiesel, as defined in the Use Tax
11Act, and biodiesel blends, as defined in the Use Tax Act, with
12more than 10% but no more than 99% biodiesel material, the tax
13imposed by this Act does not apply to the proceeds of the
14selling price of property transferred as an incident to the
15sale 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    At the election of any registered serviceman made for each
19fiscal year, sales of service in which the aggregate annual
20cost price of tangible personal property transferred as an
21incident to the sales of service is less than 35%, or 75% in
22the case of servicemen transferring prescription drugs or
23servicemen engaged in graphic arts production, of the
24aggregate annual total gross receipts from all sales of
25service, the tax imposed by this Act shall be based on the
26serviceman's cost price of the tangible personal property

 

 

HB4945- 16 -LRB102 25340 HLH 34617 b

1transferred incident to the sale of those services.
2    The tax shall be imposed at the rate of 1% on food prepared
3for immediate consumption and transferred incident to a sale
4of service subject to this Act or the Service Occupation Tax
5Act by an entity licensed under the Hospital Licensing Act,
6the Nursing Home Care Act, the Assisted Living and Shared
7Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
8Specialized Mental Health Rehabilitation Act of 2013, or the
9Child Care Act of 1969, or an entity that holds a permit issued
10pursuant to the Life Care Facilities Act. The tax shall also be
11imposed at the rate of 1% on food for human consumption that is
12to be consumed off the premises where it is sold (other than
13alcoholic beverages, food consisting of or infused with adult
14use cannabis, soft drinks, and food that has been prepared for
15immediate consumption and is not otherwise included in this
16paragraph) and prescription and nonprescription medicines,
17drugs, medical appliances, products classified as Class III
18medical devices by the United States Food and Drug
19Administration that are used for cancer treatment pursuant to
20a prescription, as well as any accessories and components
21related to those devices, modifications to a motor vehicle for
22the purpose of rendering it usable by a person with a
23disability, and insulin, blood sugar testing materials,
24syringes, and needles used by human diabetics. For the
25purposes of this Section, until September 1, 2009: the term
26"soft drinks" means any complete, finished, ready-to-use,

 

 

HB4945- 17 -LRB102 25340 HLH 34617 b

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

 

 

HB4945- 18 -LRB102 25340 HLH 34617 b

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

 

 

HB4945- 19 -LRB102 25340 HLH 34617 b

1    list of those ingredients contained in the compound,
2    substance or preparation.
3    Beginning on January 1, 2014 (the effective date of Public
4Act 98-122), "prescription and nonprescription medicines and
5drugs" includes medical cannabis purchased from a registered
6dispensing organization under the Compassionate Use of Medical
7Cannabis Program Act.
8    As used in this Section, "adult use cannabis" means
9cannabis subject to tax under the Cannabis Cultivation
10Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
11and does not include cannabis subject to tax under the
12Compassionate Use of Medical Cannabis Program Act.
13    Beginning on July 1, 2022, with respect to toilet paper,
14tissues, and towelettes, the tax is imposed at the rate of 1%.
15(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
16102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
17    Section 20. The Retailers' Occupation Tax Act is amended
18by changing Section 2-10 as follows:
 
19    (35 ILCS 120/2-10)
20    Sec. 2-10. Rate of tax. Unless otherwise provided in this
21Section, the tax imposed by this Act is at the rate of 6.25% of
22gross receipts from sales of tangible personal property made
23in the course of business.
24    Beginning on July 1, 2000 and through December 31, 2000,

 

 

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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    Beginning on August 6, 2010 through August 15, 2010, with
5respect to sales tax holiday items as defined in Section 2-8 of
6this Act, the tax is imposed at the rate of 1.25%.
7    Within 14 days after the effective date of this amendatory
8Act of the 91st General Assembly, each retailer of motor fuel
9and gasohol shall cause the following notice to be posted in a
10prominently visible place on each retail dispensing device
11that is used to dispense motor fuel or gasohol in the State of
12Illinois: "As of July 1, 2000, the State of Illinois has
13eliminated the State's share of sales tax on motor fuel and
14gasohol through December 31, 2000. The price on this pump
15should reflect the elimination of the tax." The notice shall
16be printed in bold print on a sign that is no smaller than 4
17inches by 8 inches. The sign shall be clearly visible to
18customers. Any retailer who fails to post or maintain a
19required sign through December 31, 2000 is guilty of a petty
20offense for which the fine shall be $500 per day per each
21retail premises where a violation occurs.
22    With respect to gasohol, as defined in the Use Tax Act, the
23tax imposed by this Act applies to (i) 70% of the proceeds of
24sales made on or after January 1, 1990, and before July 1,
252003, (ii) 80% of the proceeds of sales made on or after July
261, 2003 and on or before July 1, 2017, and (iii) 100% of the

 

 

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1proceeds of sales made thereafter. If, at any time, however,
2the tax under this Act on sales of gasohol, as defined in the
3Use Tax Act, is imposed at the rate of 1.25%, then the tax
4imposed by this Act applies to 100% of the proceeds of sales of
5gasohol made during that time.
6    With respect to majority blended ethanol fuel, as defined
7in the Use Tax Act, the tax imposed by this Act does not apply
8to the proceeds of sales made on or after July 1, 2003 and on
9or before December 31, 2023 but applies to 100% of the proceeds
10of sales made thereafter.
11    With respect to biodiesel blends, as defined in the Use
12Tax Act, with no less than 1% and no more than 10% biodiesel,
13the tax imposed by this Act applies to (i) 80% of the proceeds
14of sales made on or after July 1, 2003 and on or before
15December 31, 2018 and (ii) 100% of the proceeds of sales made
16thereafter. If, at any time, however, the tax under this Act on
17sales of biodiesel blends, as defined in the Use Tax Act, with
18no less than 1% and no more than 10% biodiesel is imposed at
19the rate of 1.25%, then the tax imposed by this Act applies to
20100% of the proceeds of sales of biodiesel blends with no less
21than 1% and no more than 10% biodiesel made during that time.
22    With respect to 100% biodiesel, as defined in the Use Tax
23Act, and biodiesel blends, as defined in the Use Tax Act, with
24more than 10% but no more than 99% biodiesel, the tax imposed
25by this Act does not apply to the proceeds of sales made on or
26after July 1, 2003 and on or before December 31, 2023 but

 

 

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1applies to 100% of the proceeds of sales made thereafter.
2    With respect to food for human consumption that is to be
3consumed 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 prescription and nonprescription
7medicines, drugs, medical appliances, products classified as
8Class III medical devices by the United States Food and Drug
9Administration that are used for cancer treatment pursuant to
10a prescription, as well as any accessories and components
11related to those devices, modifications to a motor vehicle for
12the purpose of rendering it usable by a person with a
13disability, and insulin, blood sugar testing materials,
14syringes, and needles used by human diabetics, the tax is
15imposed at the rate of 1%. For the purposes of this Section,
16until September 1, 2009: the term "soft drinks" means any
17complete, finished, ready-to-use, non-alcoholic drink, whether
18carbonated or not, including but not limited to soda water,
19cola, fruit juice, vegetable juice, carbonated water, and all
20other preparations commonly known as soft drinks of whatever
21kind or description that are contained in any closed or sealed
22bottle, can, carton, or container, regardless of size; but
23"soft drinks" does not include coffee, tea, non-carbonated
24water, infant formula, milk or milk products as defined in the
25Grade A Pasteurized Milk and Milk Products Act, or drinks
26containing 50% or more natural fruit or vegetable juice.

 

 

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

 

 

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

 

 

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1and does not include cannabis subject to tax under the
2Compassionate Use of Medical Cannabis Program Act.
3    Beginning on July 1, 2022, with respect to toilet paper,
4tissues, and towelettes, the tax is imposed at the rate of 1%.
5(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
6102-4, eff. 4-27-21.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.