093_SB0046eng

 
SB46 Engrossed                       LRB093 02617 SJM 02627 b

 1        AN ACT concerning taxes.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The  Use  Tax  Act  is  amended  by  changing
 5    Section 3-10 and by adding Sections 3-41 and 3-42 as follows:

 6        (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
 7        Sec.  3-10.   Rate  of tax.  Unless otherwise provided in
 8    this Section, the tax imposed by this Act is at the  rate  of
 9    6.25%  of  either the selling price or the fair market value,
10    if any, of the tangible  personal  property.   In  all  cases
11    where  property  functionally used or consumed is the same as
12    the property that was purchased at retail, then  the  tax  is
13    imposed  on  the selling price of the property.  In all cases
14    where property functionally used or consumed is a  by-product
15    or  waste  product  that  has  been refined, manufactured, or
16    produced from property purchased at retail, then the  tax  is
17    imposed on the lower of the fair market value, if any, of the
18    specific  property  so  used  in this State or on the selling
19    price of the property purchased at retail.  For  purposes  of
20    this  Section  "fair  market  value" means the price at which
21    property would change hands between a  willing  buyer  and  a
22    willing  seller, neither being under any compulsion to buy or
23    sell and both having reasonable  knowledge  of  the  relevant
24    facts. The fair market value shall be established by Illinois
25    sales   by   the  taxpayer  of  the  same  property  as  that
26    functionally used or consumed, or if there are no such  sales
27    by  the  taxpayer,  then  comparable  sales  or  purchases of
28    property of like kind and character in Illinois.
29        Beginning on July 1, 2000 and through December 31,  2000,
30    with  respect to motor fuel, as defined in Section 1.1 of the
31    Motor Fuel Tax Law, and gasohol, as defined in  Section  3-40
 
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 1    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
 2        With  respect  to  gasohol,  the  tax imposed by this Act
 3    applies to (i) 70% of the proceeds of sales made on or  after
 4    January  1,  1990,  and  before July 1, 2003, (ii) 75% of the
 5    proceeds of sales made on or after July 1, 2003  and  through
 6    December 31, 2007, (iii) 80% of the proceeds of sales made on
 7    or  after  January 1, 2008 and through December 31, 2013, and
 8    (iv) to 100% of the proceeds of sales made thereafter. If, at
 9    any time, however, the tax under this Act on sales of gasohol
10    is imposed at the rate of 1.25%, then the tax imposed by this
11    Act applies to 100% of the proceeds of sales of gasohol  made
12    during that time.
13        With  respect  to E85 blend fuel, the tax imposed by this
14    Act does not apply to the proceeds of sales made on or  after
15    July  1,  2003  and  through December 31, 2013 but applies to
16    100% of the proceeds of sales made  thereafter.  If,  at  any
17    time,  however,  the tax under this Act on sales of E85 blend
18    fuel is imposed at the rate of 1.25%, then the tax imposed by
19    this Act applies to 100% of the  proceeds  of  sales  of  E85
20    blend fuel made during that time.
21        With  respect  to bio-diesel blend fuel with no more than
22    10% fuel made from biomass material, the tax imposed by  this
23    Act  applies  to  (i) 75% of the proceeds of sales made on or
24    after July 1, 2003 and through December 31, 2007, (ii) 80% of
25    the proceeds of sales made on or after January  1,  2008  and
26    through  December 31, 2013, and (iii) 100% of the proceeds of
27    sales made thereafter. If, at  any  time,  however,  the  tax
28    under this Act on sales of bio-diesel blend fuel with no more
29    than  10%  fuel  made from biomass material is imposed at the
30    rate of 1.25%, then the tax imposed by this  Act  applies  to
31    100%  of  the proceeds of sales of bio-diesel blend fuel with
32    no more than 10% fuel made from biomass material made  during
33    that time.
34        With  respect to bio-diesel blend fuel with more than 10%
 
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 1    fuel made from biomass material, the tax imposed by this  Act
 2    does not apply to the proceeds of sales made on or after July
 3    1,  2003 and through December 31, 2013 but applies to 100% of
 4    the proceeds of sales  made  thereafter.  If,  at  any  time,
 5    however,  the tax under this Act on sales of bio-diesel blend
 6    fuel with more than 10% fuel made from  biomass  material  is
 7    imposed  at  the  rate of 1.25%, then the tax imposed by this
 8    Act applies to 100% of the proceeds of  sales  of  bio-diesel
 9    blend fuel with more than 10% fuel made from biomass material
10    made during that time.
11        With  respect to food for human consumption that is to be
12    consumed off the  premises  where  it  is  sold  (other  than
13    alcoholic  beverages,  soft  drinks,  and  food that has been
14    prepared for  immediate  consumption)  and  prescription  and
15    nonprescription   medicines,   drugs,   medical   appliances,
16    modifications to a motor vehicle for the purpose of rendering
17    it  usable  by  a disabled person, and insulin, urine testing
18    materials, syringes, and needles used by diabetics, for human
19    use, the tax is imposed at the rate of 1%. For  the  purposes
20    of  this  Section, the term "soft drinks" means any complete,
21    finished,   ready-to-use,   non-alcoholic   drink,    whether
22    carbonated  or  not, including but not limited to soda water,
23    cola, fruit juice, vegetable juice, carbonated water, and all
24    other preparations commonly known as soft drinks of  whatever
25    kind  or  description  that  are  contained  in any closed or
26    sealed bottle, can, carton, or container, regardless of size.
27    "Soft drinks" does not include  coffee,  tea,  non-carbonated
28    water,  infant  formula,  milk or milk products as defined in
29    the Grade A Pasteurized Milk and Milk Products Act, or drinks
30    containing 50% or more natural fruit or vegetable juice.
31        Notwithstanding any other provisions of this  Act,  "food
32    for human consumption that is to be consumed off the premises
33    where  it  is  sold" includes all food sold through a vending
34    machine, except  soft  drinks  and  food  products  that  are
 
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 1    dispensed  hot  from  a  vending  machine,  regardless of the
 2    location of the vending machine.
 3        If the property  that  is  purchased  at  retail  from  a
 4    retailer  is  acquired  outside  Illinois  and  used  outside
 5    Illinois before being brought to Illinois for use here and is
 6    taxable  under this Act, the "selling price" on which the tax
 7    is computed shall be reduced by an amount that  represents  a
 8    reasonable allowance for depreciation for the period of prior
 9    out-of-state use.
10    (Source:  P.A.  90-605,  eff.  6-30-98; 90-606, eff. 6-30-98;
11    91-51, eff. 6-30-99; 91-872, eff. 7-1-00.)

12        (35 ILCS 105/3-41 new)
13        Sec. 3-41.  Bio-diesel blend.  "Bio-diesel  blend"  means
14    diesel  fuel  blended with no less than 0.5% and no more than
15    20% fuel made from biomass material.  "Diesel fuel" means any
16    petroleum product intended for use or offered for sale  as  a
17    fuel  for  engines  in  which  the  fuel is injected into the
18    combustion chamber and ignited by pressure  without  electric
19    spark.   "Biomass  material" includes, but is not limited to,
20    soybean oil, other vegetable oils, and denatured ethanol.

21        (35 ILCS 105/3-42 new)
22        Sec. 3-42.  E85 blend  fuel.   "E85   blend  fuel"  means
23    motor  fuel  that contains at least 70% denatured ethanol and
24    no more than 30% gasoline.   "Gasoline"  means  all  products
25    commonly or commercially known or sold as gasoline (including
26    casing head and absorption or natural gasoline).

27        Section  10.   The  Service  Use  Tax  Act  is amended by
28    changing Section 3-10 as follows:

29        (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
30        Sec. 3-10.  Rate of tax.  Unless  otherwise  provided  in
 
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 1    this  Section,  the tax imposed by this Act is at the rate of
 2    6.25% of the selling  price  of  tangible  personal  property
 3    transferred  as  an incident to the sale of service, but, for
 4    the purpose of computing this tax,  in  no  event  shall  the
 5    selling  price be less than the cost price of the property to
 6    the serviceman.
 7        Beginning on July 1, 2000 and through December 31,  2000,
 8    with  respect to motor fuel, as defined in Section 1.1 of the
 9    Motor Fuel Tax Law, and gasohol, as defined in  Section  3-40
10    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
11        With  respect  to gasohol, as defined in the Use Tax Act,
12    the tax imposed by this Act applies to (i) 70% of the selling
13    price of property transferred as an incident to the  sale  of
14    service on or after January 1, 1990, and before July 1, 2003,
15    (ii)  75%  of the selling price of property transferred as an
16    incident to the sale of service on or after July 1, 2003  and
17    through  December 31, 2007, (iii) 80% of the selling price of
18    property transferred as an incident to the sale of service on
19    or after January 1, 2008 and through December 31,  2013,  and
20    (iv)  to  100%  of  the  selling price thereafter. If, at any
21    time, however, the tax under this Act on sales of gasohol, as
22    defined in the Use Tax Act, is imposed at the rate of  1.25%,
23    then  the  tax  imposed  by  this  Act applies to 100% of the
24    proceeds of sales of gasohol made during that time.
25        With respect to E85 blend fuel, as defined in the Use Tax
26    Act, the tax imposed by  this  Act  does  not  apply  to  the
27    selling  price  of property transferred as an incident to the
28    sale of service on or after July 1, 2003 and through December
29    31, 2013 but applies to 100% of the selling price thereafter.
30    If, at any time, however, the tax under this Act on sales  of
31    E85  blend fuel, as defined in the Use Tax Act, is imposed at
32    the rate of 1.25%, then the tax imposed by this  Act  applies
33    to  100%  of  the  proceeds  of  sales of E85 blend fuel made
34    during that time.
 
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 1        With respect to bio-diesel blend fuel, as defined in  the
 2    Use  Tax  Act,  with  no more than 10% fuel made from biomass
 3    material, the tax imposed by this Act applies to (i)  75%  of
 4    the  selling  price of property transferred as an incident to
 5    the sale of service on or after  July  1,  2003  and  through
 6    December  31,  2007,  (ii) 80% of the proceeds of the selling
 7    price of property transferred as an incident to the  sale  of
 8    service  on or after January 1, 2008 and through December 31,
 9    2013, and (iii) 100% of the proceeds  of  the  selling  price
10    thereafter.  If, at any time, however, the tax under this Act
11    on sales of bio-diesel blend fuel, as defined in the Use  Tax
12    Act, with no more than 10% fuel made from biomass material is
13    imposed  at  the  rate of 1.25%, then the tax imposed by this
14    Act applies to 100% of the proceeds of  sales  of  bio-diesel
15    blend  fuel  with  no  more  than  10% fuel made from biomass
16    material made during that time.
17        With respect to bio-diesel blend fuel, as defined in  the
18    Use  Tax  Act,  with  more  than  10%  fuel made from biomass
19    material, the tax imposed by this Act does not apply  to  the
20    proceeds  of  the selling price of property transferred as an
21    incident to the sale of service on or after July 1, 2003  and
22    through  December 31, 2013 but applies to 100% of the selling
23    price thereafter. If, at any time,  however,  the  tax  under
24    this Act on sales of bio-diesel blend fuel, as defined in the
25    Use  Tax  Act,  with  more  than  10%  fuel made from biomass
26    material is imposed at  the  rate  of  1.25%,  then  the  tax
27    imposed  by this Act applies to 100% of the proceeds of sales
28    of bio-diesel blend fuel with more than 10%  fuel  made  from
29    biomass material made during that time.
30        At  the  election  of  any registered serviceman made for
31    each fiscal year, sales of service  in  which  the  aggregate
32    annual  cost  price of tangible personal property transferred
33    as an incident to the sales of service is less than  35%,  or
34    75% in the case of servicemen transferring prescription drugs
 
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 1    or  servicemen  engaged  in  graphic  arts production, of the
 2    aggregate annual total  gross  receipts  from  all  sales  of
 3    service,  the  tax  imposed by this Act shall be based on the
 4    serviceman's cost price of  the  tangible  personal  property
 5    transferred as an incident to the sale of those services.
 6        The  tax  shall  be  imposed  at  the  rate of 1% on food
 7    prepared for immediate consumption and  transferred  incident
 8    to  a  sale  of  service  subject  to this Act or the Service
 9    Occupation Tax Act by an entity licensed under  the  Hospital
10    Licensing  Act,  the Nursing Home Care Act, or the Child Care
11    Act of 1969.  The tax shall also be imposed at the rate of 1%
12    on food for human consumption that is to be consumed off  the
13    premises  where  it  is sold (other than alcoholic beverages,
14    soft drinks, and food that has been  prepared  for  immediate
15    consumption  and is not otherwise included in this paragraph)
16    and  prescription  and  nonprescription   medicines,   drugs,
17    medical  appliances, modifications to a motor vehicle for the
18    purpose of rendering it usable  by  a  disabled  person,  and
19    insulin,  urine testing materials, syringes, and needles used
20    by diabetics,  for  human  use.  For  the  purposes  of  this
21    Section, the term "soft drinks" means any complete, finished,
22    ready-to-use, non-alcoholic drink, whether carbonated or not,
23    including  but  not limited to soda water, cola, fruit juice,
24    vegetable juice, carbonated water, and all other preparations
25    commonly known as soft drinks of whatever kind or description
26    that are contained in  any  closed  or  sealed  bottle,  can,
27    carton, or container, regardless of size.  "Soft drinks" does
28    not   include   coffee,  tea,  non-carbonated  water,  infant
29    formula, milk or milk products as  defined  in  the  Grade  A
30    Pasteurized  Milk and Milk Products Act, or drinks containing
31    50% or more natural fruit or vegetable juice.
32        Notwithstanding any other provisions of this  Act,  "food
33    for human consumption that is to be consumed off the premises
34    where  it  is  sold" includes all food sold through a vending
 
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 1    machine, except  soft  drinks  and  food  products  that  are
 2    dispensed  hot  from  a  vending  machine,  regardless of the
 3    location of the vending machine.
 4        If the property that is acquired  from  a  serviceman  is
 5    acquired  outside  Illinois  and used outside Illinois before
 6    being brought to Illinois for use here and is  taxable  under
 7    this  Act,  the  "selling price" on which the tax is computed
 8    shall be reduced by an amount that  represents  a  reasonable
 9    allowance   for   depreciation   for   the  period  of  prior
10    out-of-state use.
11    (Source: P.A. 90-605, eff.  6-30-98;  90-606,  eff.  6-30-98;
12    91-51,  eff.  6-30-99;  91-541,  eff.  8-13-99;  91-872, eff.
13    7-1-00.)

14        Section 15.  The Service Occupation Tax Act is amended by
15    changing Section 3-10 as follows:

16        (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
17        Sec. 3-10. Rate of tax.   Unless  otherwise  provided  in
18    this  Section,  the tax imposed by this Act is at the rate of
19    6.25% of the "selling price", as defined in Section 2 of  the
20    Service  Use Tax Act, of the tangible personal property.  For
21    the purpose of computing this tax,  in  no  event  shall  the
22    "selling price" be less than the cost price to the serviceman
23    of  the  tangible personal property transferred.  The selling
24    price of each item of tangible personal property  transferred
25    as  an  incident  of  a  sale  of  service  may be shown as a
26    distinct and separate item on the serviceman's billing to the
27    service customer. If the selling price is not so  shown,  the
28    selling  price of the tangible personal property is deemed to
29    be 50% of the serviceman's  entire  billing  to  the  service
30    customer.   When,  however, a serviceman contracts to design,
31    develop, and produce special order  machinery  or  equipment,
32    the   tax   imposed  by  this  Act  shall  be  based  on  the
 
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 1    serviceman's cost price of  the  tangible  personal  property
 2    transferred incident to the completion of the contract.
 3        Beginning  on July 1, 2000 and through December 31, 2000,
 4    with respect to motor fuel, as defined in Section 1.1 of  the
 5    Motor  Fuel  Tax Law, and gasohol, as defined in Section 3-40
 6    of the 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,
 8    the  tax  imposed  by  this Act shall apply to (i) 70% of the
 9    cost price of property transferred as an incident to the sale
10    of service on or after January 1, 1990, and  before  July  1,
11    2003,  (ii)  75% of the selling price of property transferred
12    as an incident to the sale of service on  or  after  July  1,
13    2003  and through December 31, 2007, (iii) 80% of the selling
14    price of property transferred as an incident to the  sale  of
15    service  on or after January 1, 2008 and through December 31,
16    2013, and (iv) to 100% of the cost price thereafter.  If,  at
17    any  time,  however,  the  tax  under  this  Act  on sales of
18    gasohol, as defined in the Use Tax Act,  is  imposed  at  the
19    rate  of  1.25%,  then the tax imposed by this Act applies to
20    100% of the proceeds of sales of  gasohol  made  during  that
21    time.
22        With respect to E85 blend fuel, as defined in the Use Tax
23    Act,  the  tax  imposed  by  this  Act  does not apply to the
24    selling price of property transferred as an incident  to  the
25    sale of service on or after July 1, 2003 and through December
26    31, 2013 but applies to 100% of the selling price thereafter.
27    If,  at any time, however, the tax under this Act on sales of
28    E85 blend fuel, as defined in the Use Tax Act, is imposed  at
29    the  rate  of 1.25%, then the tax imposed by this Act applies
30    to 100% of the proceeds of  sales  of  E85  blend  fuel  made
31    during that time.
32        With  respect to bio-diesel blend fuel, as defined in the
33    Use Tax Act, with no more than 10%  fuel  made  from  biomass
34    material,  the  tax imposed by this Act applies to (i) 75% of
 
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 1    the selling price of property transferred as an  incident  to
 2    the  sale  of  service  on  or after July 1, 2003 and through
 3    December 31, 2007, (ii) 80% of the proceeds  of  the  selling
 4    price  of  property transferred as an incident to the sale of
 5    service on or after January 1, 2008 and through December  31,
 6    2013,  and  (iii)  100%  of the proceeds of the selling price
 7    thereafter. If, at any time, however, the tax under this  Act
 8    on  sales of bio-diesel blend fuel, as defined in the Use Tax
 9    Act, with no more than 10% fuel made from biomass material is
10    imposed at the rate of 1.25%, then the tax  imposed  by  this
11    Act  applies  to  100% of the proceeds of sales of bio-diesel
12    blend fuel with no more  than  10%  fuel  made  from  biomass
13    material made during that time.
14        With  respect to bio-diesel blend fuel, as defined in the
15    Use Tax Act, with  more  than  10%  fuel  made  from  biomass
16    material,  the  tax imposed by this Act does not apply to the
17    proceeds of the selling price of property transferred  as  an
18    incident  to the sale of service on or after July 1, 2003 and
19    through December 31, 2013 but applies to 100% of the  selling
20    price  thereafter.  If,  at  any time, however, the tax under
21    this Act on sales of bio-diesel blend fuel, as defined in the
22    Use Tax Act, with  more  than  10%  fuel  made  from  biomass
23    material  is  imposed  at  the  rate  of  1.25%, then the tax
24    imposed by this Act applies to 100% of the proceeds of  sales
25    of  bio-diesel  blend  fuel with more than 10% fuel made from
26    biomass material made during that time.
27        At the election of any  registered  serviceman  made  for
28    each  fiscal  year,  sales  of service in which the aggregate
29    annual cost price of tangible personal  property  transferred
30    as  an  incident to the sales of service is less than 35%, or
31    75% in the case of servicemen transferring prescription drugs
32    or servicemen engaged in  graphic  arts  production,  of  the
33    aggregate  annual  total  gross  receipts  from  all sales of
34    service, the tax imposed by this Act shall be  based  on  the
 
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 1    serviceman's  cost  price  of  the tangible personal property
 2    transferred incident to the sale of those services.
 3        The tax shall be imposed  at  the  rate  of  1%  on  food
 4    prepared  for  immediate consumption and transferred incident
 5    to a sale of service subject  to  this  Act  or  the  Service
 6    Occupation  Tax  Act by an entity licensed under the Hospital
 7    Licensing Act, the Nursing Home Care Act, or the  Child  Care
 8    Act of 1969.  The tax shall also be imposed at the rate of 1%
 9    on  food for human consumption that is to be consumed off the
10    premises where it is sold (other  than  alcoholic  beverages,
11    soft  drinks,  and  food that has been prepared for immediate
12    consumption and is not otherwise included in this  paragraph)
13    and   prescription   and  nonprescription  medicines,  drugs,
14    medical appliances, modifications to a motor vehicle for  the
15    purpose  of  rendering  it  usable  by a disabled person, and
16    insulin, urine testing materials, syringes, and needles  used
17    by  diabetics,  for  human  use.   For  the  purposes of this
18    Section, the term "soft drinks" means any complete, finished,
19    ready-to-use, non-alcoholic drink, whether carbonated or not,
20    including but not limited to soda water, cola,  fruit  juice,
21    vegetable juice, carbonated water, and all other preparations
22    commonly known as soft drinks of whatever kind or description
23    that  are  contained  in any closed or sealed can, carton, or
24    container,  regardless  of  size.   "Soft  drinks"  does  not
25    include coffee, tea, non-carbonated  water,  infant  formula,
26    milk  or  milk products as defined in the Grade A Pasteurized
27    Milk and Milk Products Act, or drinks containing 50% or  more
28    natural fruit or vegetable juice.
29        Notwithstanding  any  other provisions of this Act, "food
30    for human consumption that is to be consumed off the premises
31    where it is sold" includes all food sold  through  a  vending
32    machine,  except  soft  drinks  and  food  products  that are
33    dispensed hot from  a  vending  machine,  regardless  of  the
34    location of the vending machine.
 
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 1    (Source:  P.A.  90-605,  eff.  6-30-98; 90-606, eff. 6-30-98;
 2    91-51, 6-30-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00.)

 3        Section 20.  The Retailers' Occupation Tax Act is amended
 4    by changing Section 2-10 as follows:

 5        (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
 6        Sec. 2-10. Rate of tax.   Unless  otherwise  provided  in
 7    this  Section,  the tax imposed by this Act is at the rate of
 8    6.25% of gross  receipts  from  sales  of  tangible  personal
 9    property made in the course of business.
10        Beginning  on July 1, 2000 and through December 31, 2000,
11    with respect to motor fuel, as defined in Section 1.1 of  the
12    Motor  Fuel  Tax Law, and gasohol, as defined in Section 3-40
13    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
14        Within  14  days  after  the  effective  date   of   this
15    amendatory Act of the 91st General Assembly, each retailer of
16    motor fuel and gasohol shall cause the following notice to be
17    posted   in  a  prominently  visible  place  on  each  retail
18    dispensing device that is used  to  dispense  motor  fuel  or
19    gasohol  in  the State of Illinois:  "As of July 1, 2000, the
20    State of Illinois has eliminated the State's share  of  sales
21    tax  on motor fuel and gasohol through December 31, 2000. The
22    price on this pump should  reflect  the  elimination  of  the
23    tax."   The  notice  shall be printed in bold print on a sign
24    that is no smaller than 4 inches by 8 inches.  The sign shall
25    be clearly visible to customers.  Any retailer who  fails  to
26    post or maintain a required sign through December 31, 2000 is
27    guilty  of  a  petty offense for which the fine shall be $500
28    per day per each retail premises where a violation occurs.
29        With respect to gasohol, as defined in the Use  Tax  Act,
30    the  tax  imposed  by  this  Act  applies  to  (i) 70% of the
31    proceeds of sales made on  or  after  January  1,  1990,  and
32    before  July  1, 2003, (ii) 75% of the proceeds of sales made
 
SB46 Engrossed              -13-     LRB093 02617 SJM 02627 b
 1    on or after July 1, 2003 and through December 31, 2007, (iii)
 2    80% of the proceeds of sales made on or after January 1, 2008
 3    and through December 31,  2013,  and  (iv)  to  100%  of  the
 4    proceeds  of sales made thereafter. If, at any time, however,
 5    the tax under this Act on sales of gasohol, as defined in the
 6    Use Tax Act, is imposed at the rate of 1.25%,  then  the  tax
 7    imposed  by this Act applies to 100% of the proceeds of sales
 8    of gasohol made during that time.
 9        With respect to E85 blend fuel, as defined in the Use Tax
10    Act, the tax imposed by  this  Act  does  not  apply  to  the
11    proceeds  of  sales made on or after July 1, 2003 and through
12    December 31, 2013 but applies to  100%  of  the  proceeds  of
13    sales  made  thereafter.  If,  at  any time, however, the tax
14    under this Act on sales of E85 blend fuel, as defined in  the
15    Use  Tax  Act,  is imposed at the rate of 1.25%, then the tax
16    imposed by this Act applies to 100% of the proceeds of  sales
17    of E85 blend fuel made during that time.
18        With  respect to bio-diesel blend fuel, as defined in the
19    Use Tax Act, with no more than 10%  fuel  made  from  biomass
20    material,  the  tax imposed by this Act applies to (i) 75% of
21    the proceeds of sales made on  or  after  July  1,  2003  and
22    through  December 31, 2007, (ii) 80% of the proceeds of sales
23    made on or after January 1, 2008  and  through  December  31,
24    2013,   and   (iii)  100%  of  the  proceeds  of  sales  made
25    thereafter. If, at any time, however, the tax under this  Act
26    on  sales of bio-diesel blend fuel, as defined in the Use Tax
27    Act, with no more than 10% fuel made from biomass material is
28    imposed at the rate of 1.25%, then the tax  imposed  by  this
29    Act  applies  to  100% of the proceeds of sales of bio-diesel
30    blend fuel with no more  than  10%  fuel  made  from  biomass
31    material made during that time.
32        With  respect to bio-diesel blend fuel, as defined in the
33    Use Tax Act, with  more  than  10%  fuel  made  from  biomass
34    material,  the  tax imposed by this Act does not apply to the
 
SB46 Engrossed              -14-     LRB093 02617 SJM 02627 b
 1    proceeds of sales made on or after July 1, 2003  and  through
 2    December  31,  2013  but  applies  to 100% of the proceeds of
 3    sales made thereafter. If, at  any  time,  however,  the  tax
 4    under  this Act on sales of bio-diesel blend fuel, as defined
 5    in the Use Tax Act, with more than 10% fuel made from biomass
 6    material is imposed at  the  rate  of  1.25%,  then  the  tax
 7    imposed  by this Act applies to 100% of the proceeds of sales
 8    of bio-diesel blend fuel with more than 10%  fuel  made  from
 9    biomass material made during that time.
10        With  respect to food for human consumption that is to be
11    consumed off the  premises  where  it  is  sold  (other  than
12    alcoholic  beverages,  soft  drinks,  and  food that has been
13    prepared for  immediate  consumption)  and  prescription  and
14    nonprescription   medicines,   drugs,   medical   appliances,
15    modifications to a motor vehicle for the purpose of rendering
16    it  usable  by  a disabled person, and insulin, urine testing
17    materials, syringes, and needles used by diabetics, for human
18    use, the tax is imposed at the rate of 1%. For  the  purposes
19    of  this  Section, the term "soft drinks" means any complete,
20    finished,   ready-to-use,   non-alcoholic   drink,    whether
21    carbonated  or  not, including but not limited to soda water,
22    cola, fruit juice, vegetable juice, carbonated water, and all
23    other preparations commonly known as soft drinks of  whatever
24    kind  or  description  that  are  contained  in any closed or
25    sealed bottle, can, carton, or container, regardless of size.
26    "Soft drinks" does not include  coffee,  tea,  non-carbonated
27    water,  infant  formula,  milk or milk products as defined in
28    the Grade A Pasteurized Milk and Milk Products Act, or drinks
29    containing 50% or more natural fruit or vegetable juice.
30        Notwithstanding any other provisions of this  Act,  "food
31    for human consumption that is to be consumed off the premises
32    where  it  is  sold" includes all food sold through a vending
33    machine, except  soft  drinks  and  food  products  that  are
34    dispensed  hot  from  a  vending  machine,  regardless of the
 
SB46 Engrossed              -15-     LRB093 02617 SJM 02627 b
 1    location of the vending machine.
 2    (Source: P.A. 90-605, eff.  6-30-98;  90-606,  eff.  6-30-98;
 3    91-51, eff. 6-30-99; 91-872, eff. 7-1-00.)

 4        Section  99.  Effective date.  This Act takes effect upon
 5    becoming law.