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1 | AN ACT concerning revenue. | |||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||||
3 | represented in the General Assembly: | |||||||||||||||||||||
4 | Section 5. The Retailers' Occupation Tax Act is amended by | |||||||||||||||||||||
5 | changing Section 2-10 as follows: | |||||||||||||||||||||
6 | (35 ILCS 120/2-10) | |||||||||||||||||||||
7 | Sec. 2-10. Rate of tax. Unless otherwise provided in this | |||||||||||||||||||||
8 | Section, the tax imposed by this Act is at the rate of 6.25% of | |||||||||||||||||||||
9 | gross receipts from sales, which, on and after January 1, | |||||||||||||||||||||
10 | 2025, includes leases, of tangible personal property made in | |||||||||||||||||||||
11 | the course of business. | |||||||||||||||||||||
12 | Beginning on July 1, 2000 and through December 31, 2000, | |||||||||||||||||||||
13 | with respect to motor fuel, as defined in Section 1.1 of the | |||||||||||||||||||||
14 | Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of | |||||||||||||||||||||
15 | the Use Tax Act, the tax is imposed at the rate of 1.25%. | |||||||||||||||||||||
16 | Beginning on August 6, 2010 through August 15, 2010, and | |||||||||||||||||||||
17 | beginning again on August 5, 2022 through August 14, 2022, | |||||||||||||||||||||
18 | with respect to sales tax holiday items as defined in Section | |||||||||||||||||||||
19 | 2-8 of this Act, the tax is imposed at the rate of 1.25%. | |||||||||||||||||||||
20 | Within 14 days after July 1, 2000 (the effective date of | |||||||||||||||||||||
21 | Public Act 91-872), each retailer of motor fuel and gasohol | |||||||||||||||||||||
22 | shall cause the following notice to be posted in a prominently | |||||||||||||||||||||
23 | visible place on each retail dispensing device that is used to |
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1 | dispense motor fuel or gasohol in the State of Illinois: "As of | ||||||
2 | July 1, 2000, the State of Illinois has eliminated the State's | ||||||
3 | share of sales tax on motor fuel and gasohol through December | ||||||
4 | 31, 2000. The price on this pump should reflect the | ||||||
5 | elimination of the tax." The notice shall be printed in bold | ||||||
6 | print on a sign that is no smaller than 4 inches by 8 inches. | ||||||
7 | The sign shall be clearly visible to customers. Any retailer | ||||||
8 | who fails to post or maintain a required sign through December | ||||||
9 | 31, 2000 is guilty of a petty offense for which the fine shall | ||||||
10 | be $500 per day per each retail premises where a violation | ||||||
11 | occurs. | ||||||
12 | With respect to gasohol, as defined in the Use Tax Act, the | ||||||
13 | tax imposed by this Act applies to (i) 70% of the proceeds of | ||||||
14 | sales made on or after January 1, 1990, and before July 1, | ||||||
15 | 2003, (ii) 80% of the proceeds of sales made on or after July | ||||||
16 | 1, 2003 and on or before July 1, 2017, (iii) 100% of the | ||||||
17 | proceeds of sales made after July 1, 2017 and prior to January | ||||||
18 | 1, 2024, (iv) 90% of the proceeds of sales made on or after | ||||||
19 | January 1, 2024 and on or before December 31, 2028, and (v) | ||||||
20 | 100% of the proceeds of sales made after December 31, 2028. If, | ||||||
21 | at any time, however, the tax under this Act on sales of | ||||||
22 | gasohol, as defined in the Use Tax Act, is imposed at the rate | ||||||
23 | of 1.25%, then the tax imposed by this Act applies to 100% of | ||||||
24 | the proceeds of sales of gasohol made during that time. | ||||||
25 | With respect to mid-range ethanol blends, as defined in | ||||||
26 | Section 3-44.3 of the Use Tax Act, the tax imposed by this Act |
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1 | applies to (i) 80% of the proceeds of sales made on or after | ||||||
2 | January 1, 2024 and on or before December 31, 2028 and (ii) | ||||||
3 | 100% of the proceeds of sales made after December 31, 2028. If, | ||||||
4 | at any time, however, the tax under this Act on sales of | ||||||
5 | mid-range ethanol blends is imposed at the rate of 1.25%, then | ||||||
6 | the tax imposed by this Act applies to 100% of the proceeds of | ||||||
7 | sales of mid-range ethanol blends made during that time. | ||||||
8 | With respect to majority blended ethanol fuel, as defined | ||||||
9 | in the Use Tax Act, the tax imposed by this Act does not apply | ||||||
10 | to the proceeds of sales made on or after July 1, 2003 and on | ||||||
11 | or before December 31, 2028 but applies to 100% of the proceeds | ||||||
12 | of sales made thereafter. | ||||||
13 | With respect to biodiesel blends, as defined in the Use | ||||||
14 | Tax Act, with no less than 1% and no more than 10% biodiesel, | ||||||
15 | the tax imposed by this Act applies to (i) 80% of the proceeds | ||||||
16 | of sales made on or after July 1, 2003 and on or before | ||||||
17 | December 31, 2018 and (ii) 100% of the proceeds of sales made | ||||||
18 | after December 31, 2018 and before January 1, 2024. On and | ||||||
19 | after January 1, 2024 and on or before December 31, 2030, the | ||||||
20 | taxation of biodiesel, renewable diesel, and biodiesel blends | ||||||
21 | shall be as provided in Section 3-5.1 of the Use Tax Act. If, | ||||||
22 | at any time, however, the tax under this Act on sales of | ||||||
23 | biodiesel blends, as defined in the Use Tax Act, with no less | ||||||
24 | than 1% and no more than 10% biodiesel is imposed at the rate | ||||||
25 | of 1.25%, then the tax imposed by this Act applies to 100% of | ||||||
26 | the proceeds of sales of biodiesel blends with no less than 1% |
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1 | and no more than 10% biodiesel made during that time. | ||||||
2 | With respect to biodiesel, as defined in the Use Tax Act, | ||||||
3 | and biodiesel blends, as defined in the Use Tax Act, with more | ||||||
4 | than 10% but no more than 99% biodiesel, the tax imposed by | ||||||
5 | this Act does not apply to the proceeds of sales made on or | ||||||
6 | after July 1, 2003 and on or before December 31, 2023. On and | ||||||
7 | after January 1, 2024 and on or before December 31, 2030, the | ||||||
8 | taxation of biodiesel, renewable diesel, and biodiesel blends | ||||||
9 | shall be as provided in Section 3-5.1 of the Use Tax Act. | ||||||
10 | Until July 1, 2022 and from July 1, 2023 through December | ||||||
11 | 31, 2025, with respect to food for human consumption that is to | ||||||
12 | be consumed off the premises where it is sold (other than | ||||||
13 | alcoholic beverages, food consisting of or infused with adult | ||||||
14 | use cannabis, soft drinks, and food that has been prepared for | ||||||
15 | immediate consumption), the tax is imposed at the rate of 1%. | ||||||
16 | Beginning July 1, 2022 and until July 1, 2023, with respect to | ||||||
17 | food for human consumption that is to be consumed off the | ||||||
18 | premises where it is sold (other than alcoholic beverages, | ||||||
19 | food consisting of or infused with adult use cannabis, soft | ||||||
20 | drinks, and food that has been prepared for immediate | ||||||
21 | consumption), the tax is imposed at the rate of 0%. On and | ||||||
22 | after January 1, 2026, food for human consumption that is to be | ||||||
23 | consumed off the premises where it is sold (other than | ||||||
24 | alcoholic beverages, food consisting of or infused with adult | ||||||
25 | use cannabis, soft drinks, candy, and food that has been | ||||||
26 | prepared for immediate consumption) is exempt from the tax |
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1 | imposed by this Act. | ||||||
2 | With respect to prescription and nonprescription | ||||||
3 | medicines, drugs, medical appliances, products classified as | ||||||
4 | Class III medical devices by the United States Food and Drug | ||||||
5 | Administration that are used for cancer treatment pursuant to | ||||||
6 | a prescription, as well as any accessories and components | ||||||
7 | related to those devices, modifications to a motor vehicle for | ||||||
8 | the purpose of rendering it usable by a person with a | ||||||
9 | disability, and insulin, blood sugar testing materials, | ||||||
10 | syringes, and needles used by human diabetics, the tax is | ||||||
11 | imposed at the rate of 1%. For the purposes of this Section, | ||||||
12 | until September 1, 2009: the term "soft drinks" means any | ||||||
13 | complete, finished, ready-to-use, non-alcoholic drink, whether | ||||||
14 | carbonated or not, including, but not limited to, soda water, | ||||||
15 | cola, fruit juice, vegetable juice, carbonated water, and all | ||||||
16 | other preparations commonly known as soft drinks of whatever | ||||||
17 | kind or description that are contained in any closed or sealed | ||||||
18 | bottle, can, carton, or container, regardless of size; but | ||||||
19 | "soft drinks" does not include coffee, tea, non-carbonated | ||||||
20 | water, infant formula, milk or milk products as defined in the | ||||||
21 | Grade A Pasteurized Milk and Milk Products Act, or drinks | ||||||
22 | containing 50% or more natural fruit or vegetable juice. | ||||||
23 | Notwithstanding any other provisions of this Act, | ||||||
24 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
25 | beverages that contain natural or artificial sweeteners. "Soft | ||||||
26 | drinks" does not include beverages that contain milk or milk |
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1 | products, soy, rice or similar milk substitutes, or greater | ||||||
2 | than 50% of vegetable or fruit juice by volume. | ||||||
3 | Until August 1, 2009, and notwithstanding any other | ||||||
4 | provisions of this Act, "food for human consumption that is to | ||||||
5 | be consumed off the premises where it is sold" includes all | ||||||
6 | food sold through a vending machine, except soft drinks and | ||||||
7 | food products that are dispensed hot from a vending machine, | ||||||
8 | regardless of the location of the vending machine. Beginning | ||||||
9 | August 1, 2009, and notwithstanding any other provisions of | ||||||
10 | this Act, "food for human consumption that is to be consumed | ||||||
11 | off the premises where it is sold" includes all food sold | ||||||
12 | through a vending machine, except soft drinks, candy, and food | ||||||
13 | products that are dispensed hot from a vending machine, | ||||||
14 | regardless of the location of the vending machine. | ||||||
15 | Notwithstanding any other provisions of this Act, | ||||||
16 | beginning September 1, 2009, "food for human consumption that | ||||||
17 | is to be consumed off the premises where it is sold" does not | ||||||
18 | include candy. For purposes of this Section, "candy" means a | ||||||
19 | preparation of sugar, honey, or other natural or artificial | ||||||
20 | sweeteners in combination with chocolate, fruits, nuts or | ||||||
21 | other ingredients or flavorings in the form of bars, drops, or | ||||||
22 | pieces. "Candy" does not include any preparation that contains | ||||||
23 | flour or requires refrigeration. | ||||||
24 | Notwithstanding any other provisions of this Act, | ||||||
25 | beginning September 1, 2009, "nonprescription medicines and | ||||||
26 | drugs" does not include grooming and hygiene products. For |
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1 | purposes of this Section, "grooming and hygiene products" | ||||||
2 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
3 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | ||||||
4 | lotions and screens, unless those products are available by | ||||||
5 | prescription only, regardless of whether the products meet the | ||||||
6 | definition of "over-the-counter-drugs". For the purposes of | ||||||
7 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
8 | use that contains a label that identifies the product as a drug | ||||||
9 | as required by 21 CFR 201.66. The "over-the-counter-drug" | ||||||
10 | label 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 January 1, 2014 (the effective date of Public | ||||||
16 | Act 98-122), "prescription and nonprescription medicines and | ||||||
17 | drugs" includes medical cannabis purchased from a registered | ||||||
18 | dispensing organization under the Compassionate Use of Medical | ||||||
19 | Cannabis Program Act. | ||||||
20 | Beginning on January 1, 2027, "prescription and | ||||||
21 | nonprescription medicine and drugs" includes cannabis or | ||||||
22 | cannabis-infused products purchased from a dispensing | ||||||
23 | organization under the Cannabis Regulation and Tax Act by a | ||||||
24 | cardholder, as defined under Section 10 of the Compassionate | ||||||
25 | Use of Medical Cannabis Act. | ||||||
26 | As used in this Section, "adult use cannabis" means |
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1 | cannabis subject to tax under the Cannabis Cultivation | ||||||
2 | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law | ||||||
3 | and does not include cannabis or cannabis-infused product sold | ||||||
4 | to a cardholder, as defined under Section 10 of the | ||||||
5 | Compassionate Use of Medical Cannabis Act subject to tax under | ||||||
6 | the Compassionate Use of Medical Cannabis Program Act . | ||||||
7 | (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20, | ||||||
8 | Section 20-20, eff. 4-19-22; 102-700, Article 60, Section | ||||||
9 | 60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff. | ||||||
10 | 4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-592, | ||||||
11 | eff. 1-1-25; 103-781, eff. 8-5-24; revised 11-26-24.) | ||||||
12 | Section 10. The Cannabis Regulation and Tax Act is amended | ||||||
13 | by changing Section 65-10 as follows: | ||||||
14 | (410 ILCS 705/65-10) | ||||||
15 | Sec. 65-10. Tax imposed. | ||||||
16 | (a) Beginning January 1, 2020, a tax is imposed upon | ||||||
17 | purchasers for the privilege of using cannabis at the | ||||||
18 | following rates: | ||||||
19 | (1) Any cannabis, other than a cannabis-infused | ||||||
20 | product, with an adjusted delta-9-tetrahydrocannabinol | ||||||
21 | level at or below 35% shall be taxed at a rate of 10% of | ||||||
22 | the purchase price; | ||||||
23 | (2) Any cannabis, other than a cannabis-infused | ||||||
24 | product, with an adjusted delta-9-tetrahydrocannabinol |
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1 | level above 35% shall be taxed at a rate of 25% of the | ||||||
2 | purchase price; and | ||||||
3 | (3) A cannabis-infused product shall be taxed at a | ||||||
4 | rate of 20% of the purchase price. | ||||||
5 | (b) The purchase of any product that contains any amount | ||||||
6 | of cannabis or any derivative thereof is subject to the tax | ||||||
7 | under subsection (a) of this Section on the full purchase | ||||||
8 | price of the product. | ||||||
9 | (c) The tax imposed under this Section is not imposed on | ||||||
10 | cannabis or cannabis-infused product that is subject to tax | ||||||
11 | under the Compassionate Use of Medical Cannabis Program Act or | ||||||
12 | on cannabis or cannabis-infused product sold to a cardholder, | ||||||
13 | as defined under Section 10 of the Compassionate Use of | ||||||
14 | Medical Cannabis Program Act . The tax imposed by this Section | ||||||
15 | is not imposed with respect to any transaction in interstate | ||||||
16 | commerce, to the extent the transaction may not, under the | ||||||
17 | Constitution and statutes of the United States, be made the | ||||||
18 | subject of taxation by this State. | ||||||
19 | (d) The tax imposed under this Article shall be in | ||||||
20 | addition to all other occupation, privilege, or excise taxes | ||||||
21 | imposed by the State of Illinois or by any municipal | ||||||
22 | corporation or political subdivision thereof. | ||||||
23 | (e) The tax imposed under this Article shall not be | ||||||
24 | imposed on any purchase by a purchaser if the cannabis | ||||||
25 | retailer is prohibited by federal or State Constitution, | ||||||
26 | treaty, convention, statute, or court decision from collecting |
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1 | the tax from the purchaser. | ||||||
2 | (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.) | ||||||
3 | Section 99. Effective date. This Act takes effect January | ||||||
4 | 1, 2027. |