SB2236 Engrossed LRB094 18473 RSP 53794 b

1     AN ACT concerning renewable fuels.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Renewable Fuels Development
5 Program Act is amended by changing Sections 10, 15, and 20 and
6 by adding Sections 15-a, 15-b, 15-c, 15-d, 15-e, 20-a, and 35
7 as follows:
 
8     (20 ILCS 689/10)
9     Sec. 10. Definitions. As used in this Act:
10     "Biodiesel" means a renewable diesel fuel derived from
11 biomass that is intended for use in diesel engines.
12     "Biodiesel blend" means a blend of biodiesel with
13 petroleum-based diesel fuel in which the resultant product
14 contains no less than 1% and no more than 99% biodiesel.
15     "Biomass" means non-fossil organic materials that have an
16 intrinsic chemical energy content. "Biomass" includes, but is
17 not limited to, soybean oil, other vegetable oils, and ethanol.
18     "Department" means the Department of Commerce and Economic
19 Opportunity Community Affairs.
20     "Denatured ethanol" means an agriculturally derived ethyl
21 alcohol for blending with gasolines for use as automotive
22 spark-ignition engine fuel.
23     "Diesel fuel" means any product intended for use or offered
24 for sale as a fuel for engines in which the fuel is injected
25 into the combustion chamber and ignited by pressure without
26 electric spark.
27     "Director" means the Director of Commerce and Economic
28 Opportunity Community Affairs.
29     "Ethanol" means a product produced from agricultural
30 commodities or by-products used as a fuel or to be blended with
31 other fuels for use in motor vehicles.
32     "Fuel" means fuel as defined in Section 1.19 of the Motor

 

 

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1 Fuel Tax Law.
2     "Gasohol" means motor fuel that is no more than 90%
3 gasoline and at least 10% denatured ethanol that contains no
4 more than 1.25% water by weight.
5     "Gasoline" means all products commonly or commercially
6 known or sold as gasoline (including casing head and absorption
7 or natural gasoline).
8     "Illinois agricultural product" means any agricultural
9 commodity grown in Illinois that is used by a production
10 facility to produce renewable fuel in Illinois, including, but
11 not limited to, corn, barley, and soy beans.
12     "Labor Organization" means any organization defined as a
13 "labor organization" under Section 2 of the National Labor
14 Relations Act (29 U.S.C. 152).
15     "Majority blended ethanol fuel" means motor fuel that
16 contains no less than 70% and no more than 90% denatured
17 ethanol and no less than 10% and no more than 30% gasoline.
18     "Motor vehicles" means motor vehicles as defined in the
19 Illinois Vehicle Code and watercraft propelled by an internal
20 combustion engine.
21     "Owner" means any individual, sole proprietorship, limited
22 partnership, co-partnership, joint venture, corporation,
23 cooperative, or other legal entity, including its agents, that
24 operates or will operate a plant located within the State of
25 Illinois.
26     "Plant" means a production facility that produces a
27 renewable fuel. "Plant" includes land, any building or other
28 improvement on or to land, and any personal properties deemed
29 necessary or suitable for use, whether or not now in existence,
30 in the processing of fuel from agricultural commodities or
31 by-products.
32     "Renewable fuel" means ethanol, gasohol, majority blended
33 ethanol fuel, biodiesel blend fuel, and biodiesel.
34 (Source: P.A. 93-15, eff. 6-11-03; 93-618, eff. 12-11-03;
35 revised 12-6-03.)
 

 

 

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1     (20 ILCS 689/15)
2     Sec. 15. Illinois Renewable Fuels Development Program.
3     (a) The Department must develop and administer the Illinois
4 Renewable Fuels Development Program to assist in the
5 construction, modification, alteration, or retrofitting of
6 renewable fuel plants in Illinois. The recipient of a grant
7 under this Section must:
8         (1) be constructing, modifying, altering, or
9     retrofitting a plant in the State of Illinois;
10         (2) be constructing, modifying, altering, or
11     retrofitting (i) an ethanol a plant that has annual
12     production capacity of no less than 30,000,000 gallons of
13     renewable fuel per year or (ii) a biodiesel plant; and
14         (3) enter into a project labor agreement as prescribed
15     by Section 25 of this Act.
16     (b) Grant applications must be made on forms provided by
17 and in accordance with procedures established by the
18 Department.
19     (c) The Department must give preference to applicants that
20 use Illinois agricultural products in the production of
21 renewable fuel at the plant for which the grant is being
22 requested.
23 (Source: P.A. 93-15, eff. 6-11-03.)
 
24     (20 ILCS 689/15-a new)
25     Sec. 15-a. Illinois Renewable Fuels Majority Blended
26 Ethanol Program. The Department shall establish and administer
27 the Illinois Renewable Fuels Majority Blended Ethanol Program
28 to encourage the construction, installation, and marketing of
29 majority blended ethanol fuel.
 
30     (20 ILCS 689/15-b new)
31     Sec. 15-b. Illinois Corn Grain to Fuel Research Consortium
32 Assistance Program. The Department shall develop and
33 administer a grant program to assist members of the Illinois
34 Corn Grain to Fuel Research Consortium in research and support

 

 

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1 efforts on behalf of corn kernel to fuel alcohol and value
2 added co-products. The Department shall solicit proposals for
3 funding if they provide for research in the Consortium member's
4 own laboratories, for research collaborations among Consortium
5 members, or for members outside the Consortium conducting pilot
6 testing at the National Corn-to-Ethanol Research Center.
7 Preference will be given to projects in partnership with
8 industry or for project pilot scale demonstration that advance
9 Illinois leadership in the development of a bio-based economy.
 
10     (20 ILCS 689/15-c new)
11     Sec. 15-c. Illinois Renewable Fuels Corn-to-Hydrogen Fuel
12 Cell Research Program. The Department shall establish and
13 administer the Illinois Renewable Fuels Corn-to-Hydrogen Fuel
14 Cell Research Program to encourage the development and
15 implementation of methods to convert corn into hydrogen for
16 hydrogen fuel cells.
 
17     (20 ILCS 689/15-d new)
18     Sec. 15-d. Illinois Renewable Fuels Biodiesel
19 Infrastructure Grant Program. The Department shall establish
20 and administer the Illinois Renewable Fuels Biodiesel
21 Infrastructure Grant Program to provide assistance to fuel
22 distribution facilities in Illinois to construct, expand, and
23 maintain the necessary infrastructure to provide biodiesel to
24 the consumer market.
 
25     (20 ILCS 689/15-e new)
26     Sec. 15-e. Illinois Renewable Fuels Ethanol Development
27 Intergovernmental Assistance Program. The Department shall
28 establish and administer the Illinois Renewable Fuels Ethanol
29 Development Intergovernmental Assistance Program to provide
30 grant assistance to the Illinois Environmental Protection
31 Agency for each ethanol facility that applies for a permit
32 under Section 9.6 of the Environmental Protection Act. The
33 grant shall be limited to $100,000 for each ethanol facility

 

 

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1 permit processed annually.
 
2     (20 ILCS 689/20)
3     Sec. 20. Grants. Subject to appropriation from the Build
4 Illinois Bond Fund, the Director is authorized to award
5 Renewable Fuels Development Program Fund grants to eligible
6 applicants. The annual aggregate amount of grants for:
7     (a) the Illinois Renewable Fuels Program awarded shall not
8 exceed $25,000,000 in each of Fiscal Years 2007 and 2008 and
9 $15,000,000 thereafter. For the purposes of this subsection
10 (a): in Fiscal Year 2007 and 2008 70% of annual grant funds
11 shall be used for ethanol facilities and 30% shall be used for
12 for biodiesel facilities, and in Fiscal Year 2009 and
13 thereafter, no more than $5,000,000 annually shall be used for
14 biodiesel facilities. If in any one year the Department
15 determines that there are not sufficient proposed facilities
16 for ethanol or biodiesel facilities to use the maximum grant
17 funds available as specified above for the category of
18 facility, the Department shall be able to use the appropriated
19 grant funds for the other category of facility.
20     (b) the Illinois Renewable Fuels Majority Blended Ethanol
21 Program shall not exceed $3,000,000 annually;
22     (c) the Illinois Corn Grain to Fuel Research Consortium
23 Assistance Program shall not exceed $3,000,000 annually;
24     (d) the Illinois Renewable Fuels Corn-to-Hydrogen Fuel
25 Cell Research Program shall not exceed $1,000,000 annually;
26     (e) the Illinois Renewable Fuels Biodiesel Infrastructure
27 Grant Program shall not exceed $500,000 annually;
28     (f) the Illinois Renewable Fuels Ethanol Development
29 Intergovernmental Assistance Program shall not exceed $500,000
30 annually;
31     (g) research conducted at the National Corn-to-Ethanol
32 Research Facility at Southern Illinois University -
33 Edwardsville shall not exceed $1,000,000 annually; and
34     (h) a one-time grant in FY 2007 not to exceed $3,000,000
35 for construction, remodeling, and expansion of the National

 

 

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1 Corn-to-Ethanol Research Facility at Southern Illinois
2 University - Edwardsville.
3 (Source: P.A. 93-15, eff. 6-11-03; 93-618, eff. 12-11-03.)
 
4     (20 ILCS 689/20-a new)
5     Sec. 20-a. Normal operating and execution of renewable
6 fuels programs in existence on January 1, 2006 within the
7 Department from the Renewable Fuels Development Program Fund
8 shall not exceed $5,000,000 annually.
 
9     (20 ILCS 689/35 new)
10     Sec. 35. Renewable Fuels Standard.
11     (a) Illinois has a long-standing policy of promoting the
12 research, development, and usage of alternative transportation
13 fuels. This policy shall encourage alternative fuel
14 development through a combination of market-based loans,
15 incentives, and promotions. The success of these programs is
16 indicated by Illinois becoming and remaining the leader in the
17 usage of alternative fuels.
18     (b) Beginning January 1, 2008, and notwithstanding any
19 other provision of law, denatured ethanol used as a blending
20 agent to produce gasohol or majority blended ethanol in
21 Illinois for the current fiscal year must equate to a minimum
22 of 10% of all taxable gasoline sold in Illinois during the
23 previous fiscal year.
24     (c) Beginning January 1, 2012, it shall be the goal of the
25 State of Illinois that denatured ethanol used as a blending
26 agent to produce gasohol or majority blended ethanol in
27 Illinois for the current fiscal year shall equate to a minimum
28 of 15% of all taxable gasoline sold in Illinois during the
29 previous fiscal year.
 
30     Section 10. The State Finance Act is amended by changing
31 Section 8h and by adding Sections 5.663 and 6z-70 as follows:
 
32     (30 ILCS 105/5.663 new)

 

 

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1     Sec. 5.663. The Renewable Fuels Development Program Fund.
 
2     (30 ILCS 105/6z-70 new)
3     Sec. 6z-70. Renewable Fuels Development Program Fund. The
4 Renewable Fuels Development Program Fund is created as a
5 special fund in the State treasury. Moneys in the Fund may be
6 used by the Department of Commerce and Economic Opportunity,
7 subject to appropriation, for the Illinois Renewable Fuels
8 Program, the Illinois Renewable Fuels Majority Blended Ethanol
9 Program, the Illinois Corn Grain to Fuel Research Consortium
10 Assistance Program, the Illinois Renewable Fuels
11 Corn-to-Hydrogen Fuel Cell Research Program, the Illinois
12 Renewable Fuels Biodiesel Infrastructure Grant Program, the
13 Illinois Renewable Fuels Ethanol Development Intergovernmental
14 Assistance Program, the National Corn-to-Ethanol Research
15 Facility at Southern Illinois University - Edwardsville, and
16 other renewable fuel programs as contained in Section 20 of the
17 Illinois Renewable Fuels Development Program Act.
18     Moneys received for the purpose of this Section, including,
19 without limitation, fund transfers, gifts, grants, and awards
20 from any public or private entity, must be deposited into the
21 Fund. Any interest earned on moneys in the Fund must be
22 deposited into the Fund.
23     The State Comptroller and State Treasurer shall
24 automatically transfer on the last day of each month, beginning
25 on July 30, 2006, from the General Revenue Fund to the
26 Renewable Fuels Development Program Fund, an amount equal to
27 1/12 of the amount set forth below in each of the specified
28 fiscal years:
29Fiscal YearAmount
302007$42,000,000
312008$39,000,000
322009 through 2016$29,000,000
33     There shall be deposited into the Renewable Fuels
34 Development Program Fund such bond proceeds and other moneys as
35 may, from time to time, be provided by law.
 

 

 

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1     (30 ILCS 105/8h)
2     Sec. 8h. Transfers to General Revenue Fund.
3     (a) Except as provided in subsection (b), notwithstanding
4 any other State law to the contrary, the Governor may, through
5 June 30, 2007, from time to time direct the State Treasurer and
6 Comptroller to transfer a specified sum from any fund held by
7 the State Treasurer to the General Revenue Fund in order to
8 help defray the State's operating costs for the fiscal year.
9 The total transfer under this Section from any fund in any
10 fiscal year shall not exceed the lesser of (i) 8% of the
11 revenues to be deposited into the fund during that fiscal year
12 or (ii) an amount that leaves a remaining fund balance of 25%
13 of the July 1 fund balance of that fiscal year. In fiscal year
14 2005 only, prior to calculating the July 1, 2004 final
15 balances, the Governor may calculate and direct the State
16 Treasurer with the Comptroller to transfer additional amounts
17 determined by applying the formula authorized in Public Act
18 93-839 to the funds balances on July 1, 2003. No transfer may
19 be made from a fund under this Section that would have the
20 effect of reducing the available balance in the fund to an
21 amount less than the amount remaining unexpended and unreserved
22 from the total appropriation from that fund estimated to be
23 expended for that fiscal year. This Section does not apply to
24 any funds that are restricted by federal law to a specific use,
25 to any funds in the Motor Fuel Tax Fund, the Intercity
26 Passenger Rail Fund, the Hospital Provider Fund, the Medicaid
27 Provider Relief Fund, the Teacher Health Insurance Security
28 Fund, the Reviewing Court Alternative Dispute Resolution Fund,
29 or the Voters' Guide Fund, the Foreign Language Interpreter
30 Fund, the Lawyers' Assistance Program Fund, the Supreme Court
31 Federal Projects Fund, the Supreme Court Special State Projects
32 Fund, or the Low-Level Radioactive Waste Facility Development
33 and Operation Fund, or the Hospital Basic Services Preservation
34 Fund, or to any funds to which subsection (f) of Section 20-40
35 of the Nursing and Advanced Practice Nursing Act applies. No

 

 

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1 transfers may be made under this Section from the Pet
2 Population Control Fund. Notwithstanding any other provision
3 of this Section, for fiscal year 2004, the total transfer under
4 this Section from the Road Fund or the State Construction
5 Account Fund shall not exceed the lesser of (i) 5% of the
6 revenues to be deposited into the fund during that fiscal year
7 or (ii) 25% of the beginning balance in the fund. For fiscal
8 year 2005 through fiscal year 2007, no amounts may be
9 transferred under this Section from the Road Fund, the State
10 Construction Account Fund, the Criminal Justice Information
11 Systems Trust Fund, the Wireless Service Emergency Fund, or the
12 Mandatory Arbitration Fund.
13     In determining the available balance in a fund, the
14 Governor may include receipts, transfers into the fund, and
15 other resources anticipated to be available in the fund in that
16 fiscal year.
17     The State Treasurer and Comptroller shall transfer the
18 amounts designated under this Section as soon as may be
19 practicable after receiving the direction to transfer from the
20 Governor.
21     (b) This Section does not apply to: (i) the Ticket For The
22 Cure Fund; (ii) or to any fund established under the Community
23 Senior Services and Resources Act; or (iii) (ii) on or after
24 January 1, 2006 (the effective date of Public Act 94-511) this
25 amendatory Act of the 94th General Assembly, the Child Labor
26 and Day and Temporary Labor Enforcement Fund.
27     (c) This Section does not apply to the Demutualization
28 Trust Fund established under the Uniform Disposition of
29 Unclaimed Property Act.
30     (d) This Section does not apply to the Renewable Fuels
31 Development Program Fund.
32 (Source: P.A. 93-32, eff. 6-20-03; 93-659, eff. 2-3-04; 93-674,
33 eff. 6-10-04; 93-714, eff. 7-12-04; 93-801, eff. 7-22-04;
34 93-839, eff. 7-30-04; 93-1054, eff. 11-18-04; 93-1067, eff.
35 1-15-05; 94-91, eff. 7-1-05; 94-120, eff. 7-6-05; 94-511, eff.
36 1-1-06; 94-535, eff. 8-10-05; 94-639, eff. 8-22-05; 94-645,

 

 

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1 eff. 8-22-05; 94-648, eff. 1-1-06; 94-686, eff. 11-2-05;
2 94-691, eff. 11-2-05; revised 11-15-05.)
 
3     Section 15. The Use Tax Act is amended by changing Section
4 3-10 as follows:
 
5     (35 ILCS 105/3-10)  (from Ch. 120, par. 439.3-10)
6     Sec. 3-10. Rate of tax. Unless otherwise provided in this
7 Section, the tax imposed by this Act is at the rate of 6.25% of
8 either the selling price or the fair market value, if any, of
9 the tangible personal property. In all cases where property
10 functionally used or consumed is the same as the property that
11 was purchased at retail, then the tax is imposed on the selling
12 price of the property. In all cases where property functionally
13 used or consumed is a by-product or waste product that has been
14 refined, manufactured, or produced from property purchased at
15 retail, then the tax is imposed on the lower of the fair market
16 value, if any, of the specific property so used in this State
17 or on the selling price of the property purchased at retail.
18 For purposes of this Section "fair market value" means the
19 price at which property would change hands between a willing
20 buyer and a willing seller, neither being under any compulsion
21 to buy or sell and both having reasonable knowledge of the
22 relevant facts. The fair market value shall be established by
23 Illinois sales by the taxpayer of the same property as that
24 functionally used or consumed, or if there are no such sales by
25 the taxpayer, then comparable sales or purchases of property of
26 like kind and character in Illinois.
27     Beginning on July 1, 2000 and through December 31, 2000,
28 with respect to motor fuel, as defined in Section 1.1 of the
29 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
30 the Use Tax Act, the tax is imposed at the rate of 1.25%.
31     With respect to gasohol, the tax imposed by this Act
32 applies to (i) 70% of the proceeds of sales made on or after
33 January 1, 1990, and before July 1, 2003, (ii) 80% of the
34 proceeds of sales made on or after July 1, 2003 and on or

 

 

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1 before June 30, 2006 December 31, 2013, (iii) 90% of the
2 proceeds of sales made on or after July 1, 2006 and on or
3 before June 30, 2016 and (iv) (iii) 100% of the proceeds of
4 sales made thereafter. If, at any time, however, the tax under
5 this Act on sales of gasohol is imposed at the rate of 1.25%,
6 then the tax imposed by this Act applies to 100% of the
7 proceeds of sales of gasohol made during that time.
8     With respect to majority blended ethanol fuel, the tax
9 imposed by this Act does not apply to the proceeds of sales
10 made on or after July 1, 2003 and on or before December 31,
11 2013 but applies to 100% of the proceeds of sales made
12 thereafter.
13     With respect to biodiesel blends with no less than 1% and
14 no more than 10% biodiesel, the tax imposed by this Act applies
15 to (i) 80% of the proceeds of sales made on or after July 1,
16 2003 and on or before December 31, 2013 and (ii) 100% of the
17 proceeds of sales made thereafter. If, at any time, however,
18 the tax under this Act on sales of biodiesel blends with no
19 less than 1% and no more than 10% biodiesel is imposed at the
20 rate of 1.25%, then the tax imposed by this Act applies to 100%
21 of the proceeds of sales of biodiesel blends with no less than
22 1% and no more than 10% biodiesel made during that time.
23     With respect to 100% biodiesel and biodiesel blends with
24 more than 10% but no more than 99% biodiesel, the tax imposed
25 by this Act does not apply to the proceeds of sales made on or
26 after July 1, 2003 and on or before December 31, 2013 but
27 applies to 100% of the proceeds of sales made thereafter.
28     With respect to food for human consumption that is to be
29 consumed off the premises where it is sold (other than
30 alcoholic beverages, soft drinks, and food that has been
31 prepared for immediate consumption) and prescription and
32 nonprescription medicines, drugs, medical appliances,
33 modifications to a motor vehicle for the purpose of rendering
34 it usable by a disabled person, and insulin, urine testing
35 materials, syringes, and needles used by diabetics, for human
36 use, the tax is imposed at the rate of 1%. For the purposes of

 

 

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1 this Section, the term "soft drinks" means any complete,
2 finished, ready-to-use, non-alcoholic drink, whether
3 carbonated or not, including but not limited to soda water,
4 cola, fruit juice, vegetable juice, carbonated water, and all
5 other preparations commonly known as soft drinks of whatever
6 kind or description that are contained in any closed or sealed
7 bottle, can, carton, or container, regardless of size. "Soft
8 drinks" does not include coffee, tea, non-carbonated water,
9 infant formula, milk or milk products as defined in the Grade A
10 Pasteurized Milk and Milk Products Act, or drinks containing
11 50% or more natural fruit or vegetable juice.
12     Notwithstanding any other provisions of this Act, "food for
13 human consumption that is to be consumed off the premises where
14 it is sold" includes all food sold through a vending machine,
15 except soft drinks and food products that are dispensed hot
16 from a vending machine, regardless of the location of the
17 vending machine.
18     If the property that is purchased at retail from a retailer
19 is acquired outside Illinois and used outside Illinois before
20 being brought to Illinois for use here and is taxable under
21 this Act, the "selling price" on which the tax is computed
22 shall be reduced by an amount that represents a reasonable
23 allowance for depreciation for the period of prior out-of-state
24 use.
25 (Source: P.A. 93-17, eff. 6-11-03.)
 
26     Section 20. The Service Use Tax Act is amended by changing
27 Section 3-10 as follows:
 
28     (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
29     Sec. 3-10. Rate of tax. Unless otherwise provided in this
30 Section, the tax imposed by this Act is at the rate of 6.25% of
31 the selling price of tangible personal property transferred as
32 an incident to the sale of service, but, for the purpose of
33 computing this tax, in no event shall the selling price be less
34 than the cost price of the property to the serviceman.

 

 

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1     Beginning on July 1, 2000 and through December 31, 2000,
2 with respect to motor fuel, as defined in Section 1.1 of the
3 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
4 the Use Tax Act, the tax is imposed at the rate of 1.25%.
5     With respect to gasohol, as defined in the Use Tax Act, the
6 tax imposed by this Act applies to (i) 70% of the selling price
7 of property transferred as an incident to the sale of service
8 on or after January 1, 1990, and before July 1, 2003, (ii) 80%
9 of 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 June 30, 2006 December 31, 2013, (iii) 90% of the proceeds of
12 sales made on or after July 1, 2006 and on or before June 30,
13 2016 and (iv) (iii) 100% of the selling price thereafter. If,
14 at any time, however, the tax under this Act on sales of
15 gasohol, as defined in the Use Tax Act, is imposed at the rate
16 of 1.25%, then the tax imposed by this Act applies to 100% of
17 the proceeds of sales of gasohol made during that time.
18     With respect to majority blended ethanol fuel, as defined
19 in the Use Tax Act, the tax imposed by this Act does not apply
20 to the selling price of property transferred as an incident to
21 the sale of service on or after July 1, 2003 and on or before
22 December 31, 2013 but applies to 100% of the selling price
23 thereafter.
24     With respect to biodiesel blends, as defined in the Use Tax
25 Act, with no less than 1% and no more than 10% biodiesel, the
26 tax imposed by this Act applies to (i) 80% of the selling price
27 of property transferred as an incident to the sale of service
28 on or after July 1, 2003 and on or before December 31, 2013 and
29 (ii) 100% of the proceeds of the selling price thereafter. If,
30 at any time, however, the tax under this Act on sales of
31 biodiesel blends, as defined in the Use Tax Act, with no less
32 than 1% and no more than 10% biodiesel is imposed at the rate
33 of 1.25%, then the tax imposed by this Act applies to 100% of
34 the proceeds of sales of biodiesel blends with no less than 1%
35 and no more than 10% biodiesel made during that time.
36     With respect to 100% biodiesel, as defined in the Use Tax

 

 

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1 Act, and biodiesel blends, as defined in the Use Tax Act, with
2 more than 10% but no more than 99% biodiesel, the tax imposed
3 by this Act does not apply to the proceeds of the selling price
4 of property transferred as an incident to the sale of service
5 on or after July 1, 2003 and on or before December 31, 2013 but
6 applies to 100% of the selling price thereafter.
7     At the election of any registered serviceman made for each
8 fiscal year, sales of service in which the aggregate annual
9 cost price of tangible personal property transferred as an
10 incident to the sales of service is less than 35%, or 75% in
11 the case of servicemen transferring prescription drugs or
12 servicemen engaged in graphic arts production, of the aggregate
13 annual total gross receipts from all sales of service, the tax
14 imposed by this Act shall be based on the serviceman's cost
15 price of the tangible personal property transferred as an
16 incident to the sale of those services.
17     The tax shall be imposed at the rate of 1% on food prepared
18 for immediate consumption and transferred incident to a sale of
19 service subject to this Act or the Service Occupation Tax Act
20 by an entity licensed under the Hospital Licensing Act, the
21 Nursing Home Care Act, or the Child Care Act of 1969. The tax
22 shall also be imposed at the rate of 1% on food for human
23 consumption that is to be consumed off the premises where it is
24 sold (other than alcoholic beverages, soft drinks, and food
25 that has been prepared for immediate consumption and is not
26 otherwise included in this paragraph) and prescription and
27 nonprescription medicines, drugs, medical appliances,
28 modifications to a motor vehicle for the purpose of rendering
29 it usable by a disabled person, and insulin, urine testing
30 materials, syringes, and needles used by diabetics, for human
31 use. For the purposes of this Section, the term "soft drinks"
32 means any complete, finished, ready-to-use, non-alcoholic
33 drink, whether carbonated or not, including but not limited to
34 soda water, cola, fruit juice, vegetable juice, carbonated
35 water, and all other preparations commonly known as soft drinks
36 of whatever kind or description that are contained in any

 

 

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1 closed or sealed bottle, can, carton, or container, regardless
2 of size. "Soft drinks" does not include coffee, tea,
3 non-carbonated water, infant formula, milk or milk products as
4 defined in the Grade A Pasteurized Milk and Milk Products Act,
5 or drinks containing 50% or more natural fruit or vegetable
6 juice.
7     Notwithstanding any other provisions of this Act, "food for
8 human consumption that is to be consumed off the premises where
9 it is sold" includes all food sold through a vending machine,
10 except soft drinks and food products that are dispensed hot
11 from a vending machine, regardless of the location of the
12 vending machine.
13     If the property that is acquired from a serviceman is
14 acquired outside Illinois and used outside Illinois before
15 being brought to Illinois for use here and is taxable under
16 this Act, the "selling price" on which the tax is computed
17 shall be reduced by an amount that represents a reasonable
18 allowance for depreciation for the period of prior out-of-state
19 use.
20 (Source: P.A. 93-17, eff. 6-11-03.)
 
21     Section 25. The Service Occupation Tax Act is amended by
22 changing Section 3-10 as follows:
 
23     (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
24     Sec. 3-10. Rate of tax. Unless otherwise provided in this
25 Section, the tax imposed by this Act is at the rate of 6.25% of
26 the "selling price", as defined in Section 2 of the Service Use
27 Tax Act, of the tangible personal property. For the purpose of
28 computing this tax, in no event shall the "selling price" be
29 less than the cost price to the serviceman of the tangible
30 personal property transferred. The selling price of each item
31 of tangible personal property transferred as an incident of a
32 sale of service may be shown as a distinct and separate item on
33 the serviceman's billing to the service customer. If the
34 selling price is not so shown, the selling price of the

 

 

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1 tangible personal property is deemed to be 50% of the
2 serviceman's entire billing to the service customer. When,
3 however, a serviceman contracts to design, develop, and produce
4 special order machinery or equipment, the tax imposed by this
5 Act shall be based on the serviceman's cost price of the
6 tangible personal property transferred incident to the
7 completion of the contract.
8     Beginning on July 1, 2000 and through December 31, 2000,
9 with respect to motor fuel, as defined in Section 1.1 of the
10 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
11 the Use Tax Act, the tax is imposed at the rate of 1.25%.
12     With respect to gasohol, as defined in the Use Tax Act, the
13 tax imposed by this Act shall apply to (i) 70% of the cost
14 price of property transferred as an incident to the sale of
15 service on or after January 1, 1990, and before July 1, 2003,
16 (ii) 80% of the selling price of property transferred as an
17 incident to the sale of service on or after July 1, 2003 and on
18 or before June 30, 2006 December 31, 2013, (iii) 90% of the
19 proceeds of sales made on or after July 1, 2006 and on or
20 before June 30, 2016 and (iv) (iii) 100% of the cost price
21 thereafter. If, at any time, however, the tax under this Act on
22 sales of gasohol, as defined in the Use Tax Act, is imposed at
23 the rate of 1.25%, then the tax imposed by this Act applies to
24 100% of the proceeds of sales of gasohol made during that time.
25     With respect to majority blended ethanol fuel, as defined
26 in the Use Tax Act, the tax imposed by this Act does not apply
27 to the selling price of property transferred as an incident to
28 the sale of service on or after July 1, 2003 and on or before
29 December 31, 2013 but applies to 100% of the selling price
30 thereafter.
31     With respect to biodiesel blends, as defined in the Use Tax
32 Act, with no less than 1% and no more than 10% biodiesel, the
33 tax imposed by this Act applies to (i) 80% of the selling price
34 of property transferred as an incident to the sale of service
35 on or after July 1, 2003 and on or before December 31, 2013 and
36 (ii) 100% of the proceeds of the selling price thereafter. If,

 

 

SB2236 Engrossed - 17 - LRB094 18473 RSP 53794 b

1 at any time, however, the tax under this Act on sales of
2 biodiesel blends, as defined in the Use Tax Act, with no less
3 than 1% and no more than 10% biodiesel is imposed at the rate
4 of 1.25%, then the tax imposed by this Act applies to 100% of
5 the proceeds of sales of biodiesel blends with no less than 1%
6 and no more than 10% biodiesel made during that time.
7     With respect to 100% biodiesel, as defined in the Use Tax
8 Act, and biodiesel blends, as defined in the Use Tax Act, with
9 more than 10% but no more than 99% biodiesel material, the tax
10 imposed by this Act does not apply to the proceeds of the
11 selling price of property transferred as an incident to the
12 sale of service on or after July 1, 2003 and on or before
13 December 31, 2013 but applies to 100% of the selling price
14 thereafter.
15     At the election of any registered serviceman made for each
16 fiscal year, sales of service in which the aggregate annual
17 cost price of tangible personal property transferred as an
18 incident to the sales of service is less than 35%, or 75% in
19 the case of servicemen transferring prescription drugs or
20 servicemen engaged in graphic arts production, of the aggregate
21 annual total gross receipts from all sales of service, the tax
22 imposed by this Act shall be based on the serviceman's cost
23 price of the tangible personal property transferred incident to
24 the sale of those services.
25     The tax shall be imposed at the rate of 1% on food prepared
26 for immediate consumption and transferred incident to a sale of
27 service subject to this Act or the Service Occupation Tax Act
28 by an entity licensed under the Hospital Licensing Act, the
29 Nursing Home Care Act, or the Child Care Act of 1969. The tax
30 shall also be imposed at the rate of 1% on food for human
31 consumption that is to be consumed off the premises where it is
32 sold (other than alcoholic beverages, soft drinks, and food
33 that has been prepared for immediate consumption and is not
34 otherwise included in this paragraph) and prescription and
35 nonprescription medicines, drugs, medical appliances,
36 modifications to a motor vehicle for the purpose of rendering

 

 

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1 it usable by a disabled person, and insulin, urine testing
2 materials, syringes, and needles used by diabetics, for human
3 use. For the purposes of this Section, the term "soft drinks"
4 means any complete, finished, ready-to-use, non-alcoholic
5 drink, whether carbonated or not, including but not limited to
6 soda water, cola, fruit juice, vegetable juice, carbonated
7 water, and all other preparations commonly known as soft drinks
8 of whatever kind or description that are contained in any
9 closed or sealed can, carton, or container, regardless of size.
10 "Soft drinks" does not include coffee, tea, non-carbonated
11 water, infant formula, milk or milk products as defined in the
12 Grade A Pasteurized Milk and Milk Products Act, or drinks
13 containing 50% or more natural fruit or vegetable juice.
14     Notwithstanding any other provisions of this Act, "food for
15 human consumption that is to be consumed off the premises where
16 it is sold" includes all food sold through a vending machine,
17 except soft drinks and food products that are dispensed hot
18 from a vending machine, regardless of the location of the
19 vending machine.
20 (Source: P.A. 93-17, eff. 6-11-03.)
 
21     Section 30. The Retailers' Occupation Tax Act is amended by
22 changing Section 2-10 as follows:
 
23     (35 ILCS 120/2-10)  (from Ch. 120, par. 441-10)
24     Sec. 2-10. Rate of tax. Unless otherwise provided in this
25 Section, the tax imposed by this Act is at the rate of 6.25% of
26 gross receipts from sales of tangible personal property made in
27 the course of business.
28     Beginning on July 1, 2000 and through December 31, 2000,
29 with respect to motor fuel, as defined in Section 1.1 of the
30 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
31 the Use Tax Act, the tax is imposed at the rate of 1.25%.
32     Within 14 days after the effective date of this amendatory
33 Act of the 91st General Assembly, each retailer of motor fuel
34 and gasohol shall cause the following notice to be posted in a

 

 

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1 prominently visible place on each retail dispensing device that
2 is used to dispense motor fuel or gasohol in the State of
3 Illinois: "As of July 1, 2000, the State of Illinois has
4 eliminated the State's share of sales tax on motor fuel and
5 gasohol through December 31, 2000. The price on this pump
6 should reflect the elimination of the tax." The notice shall be
7 printed in bold print on a sign that is no smaller than 4
8 inches by 8 inches. The sign shall be clearly visible to
9 customers. Any retailer who fails to post or maintain a
10 required sign through December 31, 2000 is guilty of a petty
11 offense for which the fine shall be $500 per day per each
12 retail premises where a violation occurs.
13     With respect to gasohol, as defined in the Use Tax Act, the
14 tax imposed by this Act applies to (i) 70% of the proceeds of
15 sales made on or after January 1, 1990, and before July 1,
16 2003, (ii) 80% of the proceeds of sales made on or after July
17 1, 2003 and on or before June 30, 2006 December 31, 2013, (iii)
18 90% of the proceeds of sales made on or after July 1, 2006 and
19 on or before June 30, 2016 and (iv) (iii) 100% of the proceeds
20 of sales made thereafter. If, at any time, however, the tax
21 under this Act on sales of gasohol, as defined in the Use Tax
22 Act, is imposed at the rate of 1.25%, then the tax imposed by
23 this Act applies to 100% of the proceeds of sales of gasohol
24 made during that time.
25     With respect to majority blended ethanol fuel, as defined
26 in the Use Tax Act, the tax imposed by this Act does not apply
27 to the proceeds of sales made on or after July 1, 2003 and on or
28 before December 31, 2013 but applies to 100% of the proceeds of
29 sales made thereafter.
30     With respect to biodiesel blends, as defined in the Use Tax
31 Act, with no less than 1% and no more than 10% biodiesel, the
32 tax imposed by this Act applies to (i) 80% of the proceeds of
33 sales made on or after July 1, 2003 and on or before December
34 31, 2013 and (ii) 100% of the proceeds of sales made
35 thereafter. If, at any time, however, the tax under this Act on
36 sales of biodiesel blends, as defined in the Use Tax Act, with

 

 

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1 no less than 1% and no more than 10% biodiesel is imposed at
2 the rate of 1.25%, then the tax imposed by this Act applies to
3 100% of the proceeds of sales of biodiesel blends with no less
4 than 1% and no more than 10% biodiesel 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, with
7 more than 10% but no more than 99% biodiesel, the tax imposed
8 by this Act does not apply to the proceeds of sales made on or
9 after July 1, 2003 and on or before December 31, 2013 but
10 applies to 100% of the proceeds of sales made thereafter.
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 of
20 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 sealed
26 bottle, can, carton, or container, regardless of size. "Soft
27 drinks" does not include coffee, tea, non-carbonated water,
28 infant 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 for
32 human consumption that is to be consumed off the premises where
33 it is sold" includes all food sold through a vending machine,
34 except soft drinks and food products that are dispensed hot
35 from a vending machine, regardless of the location of the
36 vending machine.

 

 

SB2236 Engrossed - 21 - LRB094 18473 RSP 53794 b

1 (Source: P.A. 93-17, eff. 6-11-03.)
 
2     Section 99. Effective date. This Act takes effect July 1,
3 2006.

 

 

SB2236 Engrossed - 22 - LRB094 18473 RSP 53794 b

1 INDEX
2 Statutes amended in order of appearance
3     20 ILCS 689/10
4     20 ILCS 689/15
5     20 ILCS 689/15-a new
6     20 ILCS 689/15-b new
7     20 ILCS 689/15-c new
8     20 ILCS 689/15-d new
9     20 ILCS 689/15-e new
10     20 ILCS 689/20
11     20 ILCS 689/20-a new
12     30 ILCS 105/5.663 new
13     30 ILCS 105/6z-70 new
14     30 ILCS 105/8h
15     35 ILCS 105/3-10 from Ch. 120, par. 439.3-10
16     35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
17     35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
18     35 ILCS 120/2-10 from Ch. 120, par. 441-10
19     815 ILCS 370/4.5 new