093_SB0046ham001

 










                                     LRB093 02617 SJM 16550 a

 1                     AMENDMENT TO SENATE BILL 46

 2        AMENDMENT NO.     .  Amend Senate Bill  46  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.   If  and  only if both Senate Bill 1212 and
 5    House Bill 46 of the 93rd General Assembly become  law,  then
 6    the  Use  Tax  Act is amended by changing Section 3-10 and by
 7    adding  Sections  3-41,  3-42,  3-43,  3-44,  and  3-44.5  as
 8    follows:

 9        (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
10        Sec. 3-10.  Rate of tax.  Unless  otherwise  provided  in
11    this  Section,  the tax imposed by this Act is at the rate of
12    6.25% of either the selling price or the fair  market  value,
13    if  any,  of  the  tangible  personal property.  In all cases
14    where property functionally used or consumed is the  same  as
15    the  property  that  was purchased at retail, then the tax is
16    imposed on the selling price of the property.  In  all  cases
17    where  property functionally used or consumed is a by-product
18    or waste product that  has  been  refined,  manufactured,  or
19    produced  from  property purchased at retail, then the tax is
20    imposed on the lower of the fair market value, if any, of the
21    specific property so used in this State  or  on  the  selling
22    price  of  the  property purchased at retail. For purposes of
 
                            -2-      LRB093 02617 SJM 16550 a
 1    this Section "fair market value" means  the  price  at  which
 2    property  would  change  hands  between a willing buyer and a
 3    willing seller, neither being under any compulsion to buy  or
 4    sell  and  both  having  reasonable knowledge of the relevant
 5    facts. The fair market value shall be established by Illinois
 6    sales  by  the  taxpayer  of  the  same  property   as   that
 7    functionally  used or consumed, or if there are no such sales
 8    by the  taxpayer,  then  comparable  sales  or  purchases  of
 9    property of like kind and character in Illinois.
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        With respect to gasohol, the  tax  imposed  by  this  Act
15    applies  to (i) 70% of the proceeds of sales made on or after
16    January 1, 1990, and before July 1, 2003,  (ii)  80%  of  the
17    proceeds  of  sales  made  on or after July 1, 2003 and on or
18    before December 31, 2013, and (iii) to 100% of  the  proceeds
19    of  sales  made thereafter. If, at any time, however, the tax
20    under this Act on sales of gasohol is imposed at the rate  of
21    1.25%,  then  the  tax imposed by this Act applies to 100% of
22    the proceeds of sales of gasohol made during that time.
23        With respect to majority blended ethanol  fuel,  the  tax
24    imposed  by  this Act does not apply to the proceeds of sales
25    made on or after July 1, 2003 and on or before  December  31,
26    2013  but  applies  to  100%  of  the  proceeds of sales made
27    thereafter.
28        With respect to biodiesel blends with no less than 1% and
29    no more than 10% biodiesel,  the  tax  imposed  by  this  Act
30    applies  to (i) 80% of the proceeds of sales made on or after
31    July 1, 2003 and on or before December 31, 2013 and (ii) 100%
32    of the proceeds of sales made thereafter. If,  at  any  time,
33    however,  the tax under this Act on sales of biodiesel blends
34    with no less than 1%  and  no  more  than  10%  biodiesel  is
 
                            -3-      LRB093 02617 SJM 16550 a
 1    imposed  at  the  rate of 1.25%, then the tax imposed by this
 2    Act applies to 100% of the proceeds  of  sales  of  biodiesel
 3    blends  with  no  less than 1% and no more than 10% biodiesel
 4    made during that time.
 5        With respect to 100% biodiesel and biodiesel blends  with
 6    more than 10% but no more than 99% biodiesel, the tax imposed
 7    by  this  Act does not apply to the proceeds of sales made on
 8    or after July 1, 2003 and on or before December 31, 2013  but
 9    applies to 100% of the proceeds of sales made thereafter.
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
 
                            -4-      LRB093 02617 SJM 16550 a
 1    location of the vending machine.
 2        If the property  that  is  purchased  at  retail  from  a
 3    retailer  is  acquired  outside  Illinois  and  used  outside
 4    Illinois before being brought to Illinois for use here and is
 5    taxable  under this Act, the "selling price" on which the tax
 6    is computed shall be reduced by an amount that  represents  a
 7    reasonable allowance for depreciation for the period of prior
 8    out-of-state use.
 9    (Source:  P.A.  90-605,  eff.  6-30-98; 90-606, eff. 6-30-98;
10    91-51, eff. 6-30-99; 91-872, eff. 7-1-00.)

11        (35 ILCS 105/3-41 new)
12        Sec.  3-41.  Biodiesel.  "Biodiesel"  means  a  renewable
13    diesel fuel derived from biomass that is intended for use  in
14    diesel engines.

15        (35 ILCS 105/3-42 new)
16        Sec.  3-42.  Biodiesel  blend.  "Biodiesel blend" means a
17    blend of biodiesel with petroleum-based diesel fuel in  which
18    the  resultant  product  contains no less than 1% and no more
19    than 99% biodiesel.

20        (35 ILCS 105/3-43 new)
21        Sec. 3-43 Biomass.  "Biomass"  means  non-fossil  organic
22    materials  that  have  an  intrinsic chemical energy content.
23    "Biomass" includes, but is not limited to, soybean oil, other
24    vegetable oils, and ethanol.

25        (35 ILCS 105/3-44 new)
26        Sec. 3-44.  Majority  blended  ethanol  fuel.   "Majority
27    blended ethanol fuel" means motor fuel that contains not less
28    than  70%  and no more than 90% denatured ethanol and no less
29    than 10% and no more than 30% gasoline.
 
                            -5-      LRB093 02617 SJM 16550 a
 1        (35 ILCS 105/3-44.5 new)
 2        Sec. 3-44.5 Diesel fuel.  "Diesel fuel" means any product
 3    intended for use or offered for sale as a fuel for engines in
 4    which the fuel is injected into the  combustion  chamber  and
 5    ignited by pressure without electric spark.

 6        Section  10.   If  and  only if both Senate Bill 1212 and
 7    House Bill 46 of the 93rd General Assembly become  law,  then
 8    the  Service  Use Tax Act is amended by changing Section 3-10
 9    as follows:

10        (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
11        Sec. 3-10.  Rate of tax.  Unless  otherwise  provided  in
12    this  Section,  the tax imposed by this Act is at the rate of
13    6.25% of the selling  price  of  tangible  personal  property
14    transferred  as  an incident to the sale of service, but, for
15    the purpose of computing this tax,  in  no  event  shall  the
16    selling  price be less than the cost price of the property to
17    the serviceman.
18        Beginning on July 1, 2000 and through December 31,  2000,
19    with  respect to motor fuel, as defined in Section 1.1 of the
20    Motor Fuel Tax Law, and gasohol, as defined in  Section  3-40
21    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
22        With  respect  to gasohol, as defined in the Use Tax Act,
23    the tax imposed by this Act applies to (i) 70% of the selling
24    price of property transferred as an incident to the  sale  of
25    service on or after January 1, 1990, and before July 1, 2003,
26    (ii)  80%  of the selling price of property transferred as an
27    incident to the sale of service on or after July 1, 2003  and
28    on  or  before  December  31,  2013, and (iii) to 100% of the
29    selling price thereafter. If, at any time, however,  the  tax
30    under this Act on sales of gasohol, as defined in the Use Tax
31    Act, is imposed at the rate of 1.25%, then the tax imposed by
32    this  Act applies to 100% of the proceeds of sales of gasohol
 
                            -6-      LRB093 02617 SJM 16550 a
 1    made during that time.
 2        With respect to majority blended ethanol fuel, as defined
 3    in the Use Tax Act, the tax imposed  by  this  Act  does  not
 4    apply  to  the  selling  price  of property transferred as an
 5    incident to the sale of service on or after July 1, 2003  and
 6    on  or  before  December  31, 2013 but applies to 100% of the
 7    selling price thereafter.
 8        With respect to biodiesel blends, as defined in  the  Use
 9    Tax Act, with no less than 1% and no more than 10% biodiesel,
10    the tax imposed by this Act applies to (i) 80% of the selling
11    price  of  property transferred as an incident to the sale of
12    service on or after July 1, 2003 and on  or  before  December
13    31,  2013  and (ii) 100% of the proceeds of the selling price
14    thereafter. If, at any time, however, the tax under this  Act
15    on  sales of biodiesel blends, as defined in the Use Tax Act,
16    with no less than 1%  and  no  more  than  10%  biodiesel  is
17    imposed  at  the  rate of 1.25%, then the tax imposed by this
18    Act applies to 100% of the proceeds  of  sales  of  biodiesel
19    blends  with  no  less than 1% and no more than 10% biodiesel
20    made during that time.
21        With respect to 100% biodiesel, as defined in the Use Tax
22    Act, and biodiesel blends, as defined in  the  Use  Tax  Act,
23    with  more  than  10% but no more than 99% biodiesel, the tax
24    imposed by this Act does not apply to  the  proceeds  of  the
25    selling  price  of property transferred as an incident to the
26    sale of service on or after July 1, 2003  and  on  or  before
27    December  31,  2013  but applies to 100% of the selling price
28    thereafter.
29        At the election of any  registered  serviceman  made  for
30    each  fiscal  year,  sales  of service in which the aggregate
31    annual cost price of tangible personal  property  transferred
32    as  an  incident to the sales of service is less than 35%, or
33    75% in the case of servicemen transferring prescription drugs
34    or servicemen engaged in  graphic  arts  production,  of  the
 
                            -7-      LRB093 02617 SJM 16550 a
 1    aggregate  annual  total  gross  receipts  from  all sales of
 2    service, the tax imposed by this Act shall be  based  on  the
 3    serviceman's  cost  price  of  the tangible personal property
 4    transferred as an incident to the sale of those services.
 5        The tax shall be imposed  at  the  rate  of  1%  on  food
 6    prepared  for  immediate consumption and transferred incident
 7    to a sale of service subject  to  this  Act  or  the  Service
 8    Occupation  Tax  Act by an entity licensed under the Hospital
 9    Licensing Act, the Nursing Home Care Act, or the  Child  Care
10    Act of 1969.  The tax shall also be imposed at the rate of 1%
11    on  food for human consumption that is to be consumed off the
12    premises where it is sold (other  than  alcoholic  beverages,
13    soft  drinks,  and  food that has been prepared for immediate
14    consumption and is not otherwise included in this  paragraph)
15    and   prescription   and  nonprescription  medicines,  drugs,
16    medical appliances, modifications to a motor vehicle for  the
17    purpose  of  rendering  it  usable  by a disabled person, and
18    insulin, urine testing materials, syringes, and needles  used
19    by  diabetics,  for  human  use.  For  the  purposes  of this
20    Section, the term "soft drinks" means any complete, finished,
21    ready-to-use, non-alcoholic drink, whether carbonated or not,
22    including but not limited to soda water, cola,  fruit  juice,
23    vegetable juice, carbonated water, and all other preparations
24    commonly known as soft drinks of whatever kind or description
25    that  are  contained  in  any  closed  or sealed bottle, can,
26    carton, or container, regardless of size.  "Soft drinks" does
27    not  include  coffee,  tea,  non-carbonated   water,   infant
28    formula,  milk  or  milk  products  as defined in the Grade A
29    Pasteurized Milk and Milk Products Act, or drinks  containing
30    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
 
                            -8-      LRB093 02617 SJM 16550 a
 1    dispensed hot from  a  vending  machine,  regardless  of  the
 2    location of the vending machine.
 3        If  the  property  that  is acquired from a serviceman is
 4    acquired outside Illinois and used  outside  Illinois  before
 5    being  brought  to Illinois for use here and is taxable under
 6    this Act, the "selling price" on which the  tax  is  computed
 7    shall  be  reduced  by an amount that represents a reasonable
 8    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;  91-541,  eff.  8-13-99;  91-872,  eff.
12    7-1-00.)

13        Section  15.   If  and  only if both Senate Bill 1212 and
14    House Bill 46 of the 93rd General Assembly become  law,  then
15    the Service Occupation Tax Act is amended by changing Section
16    3-10 as follows:

17        (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
18        Sec.  3-10.  Rate  of  tax.  Unless otherwise provided in
19    this Section, the tax imposed by this Act is at the  rate  of
20    6.25%  of the "selling price", as defined in Section 2 of the
21    Service Use Tax Act, of the tangible personal property.   For
22    the  purpose  of  computing  this  tax, in no event shall the
23    "selling price" be less than the cost price to the serviceman
24    of the tangible personal property transferred.   The  selling
25    price  of each item of tangible personal property transferred
26    as an incident of a  sale  of  service  may  be  shown  as  a
27    distinct and separate item on the serviceman's billing to the
28    service  customer.  If the selling price is not so shown, the
29    selling price of the tangible personal property is deemed  to
30    be  50%  of  the  serviceman's  entire billing to the service
31    customer.  When, however, a serviceman contracts  to  design,
32    develop,  and  produce  special order machinery or equipment,
 
                            -9-      LRB093 02617 SJM 16550 a
 1    the  tax  imposed  by  this  Act  shall  be  based   on   the
 2    serviceman's  cost  price  of  the tangible personal property
 3    transferred incident to the completion of the contract.
 4        Beginning on July 1, 2000 and through December 31,  2000,
 5    with  respect to motor fuel, as defined in Section 1.1 of the
 6    Motor Fuel Tax Law, and gasohol, as defined in  Section  3-40
 7    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
 8        With  respect  to gasohol, as defined in the Use Tax Act,
 9    the tax imposed by this Act shall apply to  (i)  70%  of  the
10    cost price of property transferred as an incident to the sale
11    of  service  on  or after January 1, 1990, and before July 1,
12    2003, (ii) 80% of the selling price of  property  transferred
13    as  an  incident  to  the sale of service on or after July 1,
14    2003 and on or before December 31, 2013, and (iii) to 100% of
15    the cost price thereafter. If, at any time, however, the  tax
16    under this Act on sales of gasohol, as defined in the Use Tax
17    Act, is imposed at the rate of 1.25%, then the tax imposed by
18    this  Act applies to 100% of the proceeds of sales of gasohol
19    made during that time.
20        With respect to majority blended ethanol fuel, as defined
21    in the Use Tax Act, the tax imposed  by  this  Act  does  not
22    apply  to  the  selling  price  of property transferred as an
23    incident to the sale of service on or after July 1, 2003  and
24    on  or  before  December  31, 2013 but applies to 100% of the
25    selling price thereafter.
26        With respect to biodiesel blends, as defined in  the  Use
27    Tax Act, with no less than 1% and no more than 10% biodiesel,
28    the tax imposed by this Act applies to (i) 80% of the selling
29    price  of  property transferred as an incident to the sale of
30    service on or after July 1, 2003 and on  or  before  December
31    31,  2013  and (ii) 100% of the proceeds of the selling price
32    thereafter. If, at any time, however, the tax under this  Act
33    on  sales of biodiesel blends, as defined in the Use Tax Act,
34    with no less than 1%  and  no  more  than  10%  biodiesel  is
 
                            -10-     LRB093 02617 SJM 16550 a
 1    imposed  at  the  rate of 1.25%, then the tax imposed by this
 2    Act applies to 100% of the proceeds  of  sales  of  biodiesel
 3    blends  with  no  less than 1% and no more than 10% biodiesel
 4    made during that time.
 5        With respect to 100% biodiesel, as defined in the Use Tax
 6    Act, and biodiesel blends, as defined in  the  Use  Tax  Act,
 7    with  more  than 10% but no more than 99% biodiesel material,
 8    the tax imposed by this Act does not apply to the proceeds of
 9    the selling price of property transferred as an  incident  to
10    the sale of service on or after July 1, 2003 and on or before
11    December  31,  2013  but applies to 100% of the selling price
12    thereafter.
13        At the election of any  registered  serviceman  made  for
14    each  fiscal  year,  sales  of service in which the aggregate
15    annual cost price of tangible personal  property  transferred
16    as  an  incident to the sales of service is less than 35%, or
17    75% in the case of servicemen transferring prescription drugs
18    or servicemen engaged in  graphic  arts  production,  of  the
19    aggregate  annual  total  gross  receipts  from  all sales of
20    service, the tax imposed by this Act shall be  based  on  the
21    serviceman's  cost  price  of  the tangible personal property
22    transferred incident to the sale of those services.
23        The tax shall be imposed  at  the  rate  of  1%  on  food
24    prepared  for  immediate consumption and transferred incident
25    to a sale of service subject  to  this  Act  or  the  Service
26    Occupation  Tax  Act by an entity licensed under the Hospital
27    Licensing Act, the Nursing Home Care Act, or the  Child  Care
28    Act of 1969.  The tax shall also be imposed at the rate of 1%
29    on  food for human consumption that is to be consumed off the
30    premises where it is sold (other  than  alcoholic  beverages,
31    soft  drinks,  and  food that has been prepared for immediate
32    consumption and is not otherwise included in this  paragraph)
33    and   prescription   and  nonprescription  medicines,  drugs,
34    medical appliances, modifications to a motor vehicle for  the
 
                            -11-     LRB093 02617 SJM 16550 a
 1    purpose  of  rendering  it  usable  by a disabled person, and
 2    insulin, urine testing materials, syringes, and needles  used
 3    by  diabetics,  for  human  use.   For  the  purposes of this
 4    Section, the term "soft drinks" means any complete, finished,
 5    ready-to-use, non-alcoholic drink, whether carbonated or not,
 6    including but not limited to soda water, cola,  fruit  juice,
 7    vegetable juice, carbonated water, and all other preparations
 8    commonly known as soft drinks of whatever kind or description
 9    that  are  contained  in any closed or sealed can, carton, or
10    container,  regardless  of  size.   "Soft  drinks"  does  not
11    include coffee, tea, non-carbonated  water,  infant  formula,
12    milk  or  milk products as defined in the Grade A Pasteurized
13    Milk and Milk Products Act, or drinks containing 50% or  more
14    natural fruit or vegetable juice.
15        Notwithstanding  any  other provisions of this Act, "food
16    for human consumption that is to be consumed off the premises
17    where it is sold" includes all food sold  through  a  vending
18    machine,  except  soft  drinks  and  food  products  that are
19    dispensed hot from  a  vending  machine,  regardless  of  the
20    location of the vending machine.
21    (Source:  P.A.  90-605,  eff.  6-30-98; 90-606, eff. 6-30-98;
22    91-51, 6-30-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00.)

23        Section 20.  If and only if both  Senate  Bill  1212  and
24    House  Bill  46 of the 93rd General Assembly become law, then
25    the Retailers' Occupation Tax  Act  is  amended  by  changing
26    Section 2-10 as follows:

27        (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
28        Sec.  2-10.  Rate  of  tax.  Unless otherwise provided in
29    this Section, the tax imposed by this Act is at the  rate  of
30    6.25%  of  gross  receipts  from  sales  of tangible personal
31    property made in the course of business.
32        Beginning on July 1, 2000 and through December 31,  2000,
 
                            -12-     LRB093 02617 SJM 16550 a
 1    with  respect to motor fuel, as defined in Section 1.1 of the
 2    Motor Fuel Tax Law, and gasohol, as defined in  Section  3-40
 3    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
 4        Within   14   days  after  the  effective  date  of  this
 5    amendatory Act of the 91st General Assembly, each retailer of
 6    motor fuel and gasohol shall cause the following notice to be
 7    posted  in  a  prominently  visible  place  on  each   retail
 8    dispensing  device  that  is  used  to dispense motor fuel or
 9    gasohol in the State of Illinois:  "As of July 1,  2000,  the
10    State  of  Illinois has eliminated the State's share of sales
11    tax on motor fuel and gasohol through December 31, 2000.  The
12    price  on  this  pump  should  reflect the elimination of the
13    tax."  The notice shall be printed in bold print  on  a  sign
14    that is no smaller than 4 inches by 8 inches.  The sign shall
15    be  clearly  visible to customers.  Any retailer who fails to
16    post or maintain a required sign through December 31, 2000 is
17    guilty of a petty offense for which the fine  shall  be  $500
18    per day per each retail premises where a violation occurs.
19        With  respect  to gasohol, as defined in the Use Tax Act,
20    the tax imposed by  this  Act  applies  to  (i)  70%  of  the
21    proceeds  of  sales  made  on  or  after January 1, 1990, and
22    before July 1, 2003, (ii) 80% of the proceeds of  sales  made
23    on  or after July 1, 2003 and on or before December 31, 2013,
24    and (iii) to 100% of the proceeds of sales  made  thereafter.
25    If,  at any time, however, the tax under this Act on sales of
26    gasohol, as defined in the Use Tax Act,  is  imposed  at  the
27    rate  of  1.25%,  then the tax imposed by this Act applies to
28    100% of the proceeds of sales of  gasohol  made  during  that
29    time.
30        With respect to majority blended ethanol fuel, as defined
31    in  the  Use  Tax  Act,  the tax imposed by this Act does not
32    apply to the proceeds of sales made on or after July 1,  2003
33    and on or before December 31, 2013 but applies to 100% of the
34    proceeds of sales made thereafter.
 
                            -13-     LRB093 02617 SJM 16550 a
 1        With  respect  to biodiesel blends, as defined in the Use
 2    Tax Act, with no less than 1% and no more than 10% biodiesel,
 3    the tax imposed by  this  Act  applies  to  (i)  80%  of  the
 4    proceeds  of  sales  made  on or after July 1, 2003 and on or
 5    before December 31, 2013 and (ii) 100%  of  the  proceeds  of
 6    sales  made  thereafter.  If,  at  any time, however, the tax
 7    under this Act on sales of biodiesel blends,  as  defined  in
 8    the  Use  Tax  Act, with no less than 1% and no more than 10%
 9    biodiesel is imposed at the  rate  of  1.25%,  then  the  tax
10    imposed  by this Act applies to 100% of the proceeds of sales
11    of biodiesel blends with no less than 1% and no more than 10%
12    biodiesel  made during that time.
13        With respect to 100% biodiesel, as defined in the Use Tax
14    Act, and biodiesel blends, as defined in  the  Use  Tax  Act,
15    with  more  than  10% but no more than 99% biodiesel, the tax
16    imposed by this Act does not apply to the proceeds  of  sales
17    made  on  or after July 1, 2003 and on or before December 31,
18    2013 but applies to  100%  of  the  proceeds  of  sales  made
19    thereafter.
20        With  respect to food for human consumption that is to be
21    consumed off the  premises  where  it  is  sold  (other  than
22    alcoholic  beverages,  soft  drinks,  and  food that has been
23    prepared for  immediate  consumption)  and  prescription  and
24    nonprescription   medicines,   drugs,   medical   appliances,
25    modifications to a motor vehicle for the purpose of rendering
26    it  usable  by  a disabled person, and insulin, urine testing
27    materials, syringes, and needles used by diabetics, for human
28    use, the tax is imposed at the rate of 1%. For  the  purposes
29    of  this  Section, the term "soft drinks" means any complete,
30    finished,   ready-to-use,   non-alcoholic   drink,    whether
31    carbonated  or  not, including but not limited to soda water,
32    cola, fruit juice, vegetable juice, carbonated water, and all
33    other preparations commonly known as soft drinks of  whatever
34    kind  or  description  that  are  contained  in any closed or
 
                            -14-     LRB093 02617 SJM 16550 a
 1    sealed bottle, can, carton, or container, regardless of size.
 2    "Soft drinks" does not include  coffee,  tea,  non-carbonated
 3    water,  infant  formula,  milk or milk products as defined in
 4    the Grade A Pasteurized Milk and Milk Products Act, or drinks
 5    containing 50% or more natural fruit or vegetable juice.
 6        Notwithstanding any other provisions of this  Act,  "food
 7    for human consumption that is to be consumed off the premises
 8    where  it  is  sold" includes all food sold through a vending
 9    machine, except  soft  drinks  and  food  products  that  are
10    dispensed  hot  from  a  vending  machine,  regardless of the
11    location of the vending machine.
12    (Source: P.A. 90-605, eff.  6-30-98;  90-606,  eff.  6-30-98;
13    91-51, eff. 6-30-99; 91-872, eff. 7-1-00.)

14        Section  25.  If  and  only  if both Senate Bill 1212 and
15    House Bill 46 of the 93rd General Assembly become  law,  then
16    the  Motor  Fuel  Tax Law is amended by changing Section 2 as
17    follows:

18        (35 ILCS 505/2) (from Ch. 120, par. 418)
19        Sec. 2.  A tax is imposed on the privilege  of  operating
20    motor vehicles upon the public highways and recreational-type
21    watercraft upon the waters of this State.
22        (a)  Prior  to  August 1, 1989, the tax is imposed at the
23    rate of 13 cents per gallon on all motor fuel used  in  motor
24    vehicles  operating  on  the public highways and recreational
25    type watercraft operating upon  the  waters  of  this  State.
26    Beginning  on  August  1, 1989 and until January 1, 1990, the
27    rate of the tax imposed in this paragraph shall be  16  cents
28    per  gallon.   Beginning  January  1,  1990,  the rate of tax
29    imposed in this paragraph shall be 19 cents per gallon.
30        (b)  The tax on the privilege of operating motor vehicles
31    which  use  diesel  fuel  shall  be  the  rate  according  to
32    paragraph (a) plus an  additional  2 1/2  cents  per  gallon.
 
                            -15-     LRB093 02617 SJM 16550 a
 1    "Diesel  fuel"  is  defined as any petroleum product intended
 2    for use or offered for sale as a fuel for  engines  in  which
 3    the  fuel is injected into the combustion chamber and ignited
 4    by pressure without electric spark.
 5        (c)  A tax is imposed upon the privilege of  engaging  in
 6    the  business of selling motor fuel as a retailer or reseller
 7    on all motor fuel used in motor  vehicles  operating  on  the
 8    public  highways  and  recreational type watercraft operating
 9    upon the waters of this State: (1) at the rate of 3 cents per
10    gallon on motor fuel owned or possessed by such  retailer  or
11    reseller at 12:01 a.m. on August 1, 1989; and (2) at the rate
12    of  3  cents  per  gallon on motor fuel owned or possessed by
13    such retailer or reseller at 12:01 A.M. on January 1, 1990.
14        Retailers  and  resellers  who  are   subject   to   this
15    additional tax shall be required to inventory such motor fuel
16    and  pay  this  additional  tax in a manner prescribed by the
17    Department of Revenue.
18        The tax  imposed  in  this  paragraph  (c)  shall  be  in
19    addition  to all other taxes imposed by the State of Illinois
20    or any unit of local government in this State.
21        (d)  Except as provided in Section 2a, the collection  of
22    a  tax based on gallonage of gasoline used for the propulsion
23    of any aircraft is prohibited on and after October 1, 1979.
24        (e)  The collection of a tax, based on gallonage  of  all
25    products  commonly  or  commercially  known  or  sold  as 1-K
26    kerosene,  regardless  of  its  classification  or  uses,  is
27    prohibited (i) on and after July 1, 1992 until  December  31,
28    1999,  except  when the 1-K kerosene is either: (1) delivered
29    into bulk storage facilities of a bulk user, or (2) delivered
30    directly into the fuel supply tanks  of  motor  vehicles  and
31    (ii)  on  and after January 1, 2000.  Beginning on January 1,
32    2000, the collection of a tax,  based  on  gallonage  of  all
33    products  commonly  or  commercially  known  or  sold  as 1-K
34    kerosene,  regardless  of  its  classification  or  uses,  is
 
                            -16-     LRB093 02617 SJM 16550 a
 1    prohibited except when the 1-K kerosene is delivered directly
 2    into a storage tank that is located at a  facility  that  has
 3    withdrawal  facilities that are readily accessible to and are
 4    capable of dispensing 1-K kerosene into the fuel supply tanks
 5    of motor vehicles.
 6        Any person who sells or uses  1-K  kerosene  for  use  in
 7    motor vehicles upon which the tax imposed by this Law has not
 8    been paid shall be liable for any tax due on the sales or use
 9    of 1-K kerosene.
10    (Source: P.A. 91-173, eff. 1-1-00.)

11        Section  99.  Effective date.  This Act takes effect upon
12    becoming law.".