98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3666

 

Introduced , by Rep. Jack D. Franks

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-10
35 ILCS 110/3-10  from Ch. 120, par. 439.33-10
35 ILCS 115/3-10  from Ch. 120, par. 439.103-10
35 ILCS 120/2-10
35 ILCS 120/2d  from Ch. 120, par. 441d

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that motor fuel is exempt from taxation under the Acts. Effective immediately.


LRB098 13488 HLH 48011 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3666LRB098 13488 HLH 48011 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section
53-10 as follows:
 
6    (35 ILCS 105/3-10)
7    Sec. 3-10. Rate of tax. Unless otherwise provided in this
8Section, the tax imposed by this Act is at the rate of 6.25% of
9either the selling price or the fair market value, if any, of
10the tangible personal property. In all cases where property
11functionally used or consumed is the same as the property that
12was purchased at retail, then the tax is imposed on the selling
13price of the property. In all cases where property functionally
14used or consumed is a by-product or waste product that has been
15refined, manufactured, or produced from property purchased at
16retail, then the tax is imposed on the lower of the fair market
17value, if any, of the specific property so used in this State
18or on the selling price of the property purchased at retail.
19For purposes of this Section "fair market value" means the
20price at which property would change hands between a willing
21buyer and a willing seller, neither being under any compulsion
22to buy or sell and both having reasonable knowledge of the
23relevant facts. The fair market value shall be established by

 

 

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1Illinois sales by the taxpayer of the same property as that
2functionally used or consumed, or if there are no such sales by
3the taxpayer, then comparable sales or purchases of property of
4like kind and character in Illinois.
5    Beginning on July 1, 2000 and through December 31, 2000,
6with respect to motor fuel, as defined in Section 1.1 of the
7Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
8the Use Tax Act, the tax is imposed at the rate of 1.25%.
9    Beginning on August 6, 2010 through August 15, 2010, with
10respect to sales tax holiday items as defined in Section 3-6 of
11this Act, the tax is imposed at the rate of 1.25%.
12    With respect to gasohol, the tax imposed by this Act
13applies to (i) 70% of the proceeds of sales made on or after
14January 1, 1990, and before July 1, 2003 and , (ii) 80% of the
15proceeds of sales made on or after July 1, 2003 and on or
16before June 30, 2014 December 31, 2018, and (iii) 100% of the
17proceeds of sales made thereafter. If, at any time, however,
18the tax under this Act on sales of gasohol is imposed at the
19rate of 1.25%, then the tax imposed by this Act applies to 100%
20of the proceeds of sales of gasohol made during that time.
21    With respect to majority blended ethanol fuel, the tax
22imposed by this Act does not apply to the proceeds of sales
23made on or after July 1, 2003 and on or before December 31,
242018 but applies to 100% of the proceeds of sales made
25thereafter.
26    With respect to biodiesel blends with no less than 1% and

 

 

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1no more than 10% biodiesel, the tax imposed by this Act applies
2to (i) 80% of the proceeds of sales made on or after July 1,
32003 and on or before June 30, 2014 December 31, 2018 and (ii)
4100% of the proceeds of sales made thereafter. If, at any time,
5however, the tax under this Act on sales of biodiesel blends
6with no less than 1% and no more than 10% biodiesel is imposed
7at the rate of 1.25%, then the tax imposed by this Act applies
8to 100% of the proceeds of sales of biodiesel blends with no
9less than 1% and no more than 10% biodiesel made during that
10time.
11    With respect to 100% biodiesel and biodiesel blends with
12more than 10% but no more than 99% biodiesel, the tax imposed
13by this Act does not apply to the proceeds of sales made on or
14after July 1, 2003 and on or before December 31, 2018 but
15applies to 100% of the proceeds of sales made thereafter.
16    Beginning on July 1, 2014, the use of motor fuel, as
17defined in Section 1.1 of the Motor Fuel Tax Act, is exempt
18from the tax imposed by this Act. For the purposes of this
19exemption, "motor fuel" includes, but is not limited to,
20gasohol, majority blended ethanol fuel, biodiesel, and
21biodiesel blends. This paragraph is exempt from the provisions
22of Section 3-90.
23    With respect to food for human consumption that is to be
24consumed off the premises where it is sold (other than
25alcoholic beverages, soft drinks, and food that has been
26prepared for immediate consumption) and prescription and

 

 

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

 

 

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

 

 

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1definition of "over-the-counter-drugs". For the purposes of
2this paragraph, "over-the-counter-drug" means a drug for human
3use that contains a label that identifies the product as a drug
4as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
5label includes:
6        (A) A "Drug Facts" panel; or
7        (B) A statement of the "active ingredient(s)" with a
8    list of those ingredients contained in the compound,
9    substance or preparation.
10    Beginning on the effective date of this amendatory Act of
11the 98th General Assembly, "prescription and nonprescription
12medicines and drugs" includes medical cannabis purchased from a
13registered dispensing organization under the Compassionate Use
14of Medical Cannabis Pilot Program Act.
15    If the property that is purchased at retail from a retailer
16is acquired outside Illinois and used outside Illinois before
17being brought to Illinois for use here and is taxable under
18this Act, the "selling price" on which the tax is computed
19shall be reduced by an amount that represents a reasonable
20allowance for depreciation for the period of prior out-of-state
21use.
22(Source: P.A. 97-636, eff. 6-1-12; 98-122, eff. 1-1-14.)
 
23    Section 10. The Service Use Tax Act is amended by changing
24Section 3-10 as follows:
 

 

 

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1    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
2    Sec. 3-10. Rate of tax. Unless otherwise provided in this
3Section, the tax imposed by this Act is at the rate of 6.25% of
4the selling price of tangible personal property transferred as
5an incident to the sale of service, but, for the purpose of
6computing this tax, in no event shall the selling price be less
7than the cost price of the property to the serviceman.
8    Beginning on July 1, 2000 and through December 31, 2000,
9with respect to motor fuel, as defined in Section 1.1 of the
10Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
11the 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
13tax imposed by this Act applies to (i) 70% of the selling price
14of property transferred as an incident to the sale of service
15on or after January 1, 1990, and before July 1, 2003 and , (ii)
1680% of the selling price of property transferred as an incident
17to the sale of service on or after July 1, 2003 and on or before
18June 30, 2014 December 31, 2018, and (iii) 100% of the selling
19price thereafter. If, at any time, however, the tax under this
20Act on sales of gasohol, as defined in the Use Tax Act, is
21imposed at the rate of 1.25%, then the tax imposed by this Act
22applies to 100% of the proceeds of sales of gasohol made during
23that time.
24    With respect to majority blended ethanol fuel, as defined
25in the Use Tax Act, the tax imposed by this Act does not apply
26to the selling price of property transferred as an incident to

 

 

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1the sale of service on or after July 1, 2003 and on or before
2December 31, 2018 but applies to 100% of the selling price
3thereafter.
4    With respect to biodiesel blends, as defined in the Use Tax
5Act, with no less than 1% and no more than 10% biodiesel, the
6tax imposed by this Act applies to (i) 80% of the selling price
7of property transferred as an incident to the sale of service
8on or after July 1, 2003 and on or before June 30, 2014
9December 31, 2018 and (ii) 100% of the proceeds of the selling
10price thereafter. If, at any time, however, the tax under this
11Act on sales of biodiesel blends, as defined in the Use Tax
12Act, with no less than 1% and no more than 10% biodiesel is
13imposed at the rate of 1.25%, then the tax imposed by this Act
14applies to 100% of the proceeds of sales of biodiesel blends
15with no less than 1% and no more than 10% biodiesel made during
16that time.
17    With respect to 100% biodiesel, as defined in the Use Tax
18Act, and biodiesel blends, as defined in the Use Tax Act, with
19more than 10% but no more than 99% biodiesel, the tax imposed
20by this Act does not apply to the proceeds of the selling price
21of property transferred as an incident to the sale of service
22on or after July 1, 2003 and on or before December 31, 2018 but
23applies to 100% of the selling price thereafter.
24    Beginning on July 1, 2014, the use of motor fuel, as
25defined in Section 1.1 of the Motor Fuel Tax Act, is exempt
26from the tax imposed by this Act. For the purposes of this

 

 

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1exemption, "motor fuel" includes, but is not limited to,
2gasohol, majority blended ethanol fuel, biodiesel, and
3biodiesel blends. This paragraph is exempt from the provisions
4of Section 3-75.
5    At the election of any registered serviceman made for each
6fiscal year, sales of service in which the aggregate annual
7cost price of tangible personal property transferred as an
8incident to the sales of service is less than 35%, or 75% in
9the case of servicemen transferring prescription drugs or
10servicemen engaged in graphic arts production, of the aggregate
11annual total gross receipts from all sales of service, the tax
12imposed by this Act shall be based on the serviceman's cost
13price of the tangible personal property transferred as an
14incident to the sale of those services.
15    The tax shall be imposed at the rate of 1% on food prepared
16for immediate consumption and transferred incident to a sale of
17service subject to this Act or the Service Occupation Tax Act
18by an entity licensed under the Hospital Licensing Act, the
19Nursing Home Care Act, the ID/DD Community Care Act, the
20Specialized Mental Health Rehabilitation Act of 2013, or the
21Child Care Act of 1969. The tax shall also be imposed at the
22rate of 1% on food for human consumption that is to be consumed
23off the premises where it is sold (other than alcoholic
24beverages, soft drinks, and food that has been prepared for
25immediate consumption and is not otherwise included in this
26paragraph) and prescription and nonprescription medicines,

 

 

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

 

 

HB3666- 11 -LRB098 13488 HLH 48011 b

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

 

 

HB3666- 12 -LRB098 13488 HLH 48011 b

1use that contains a label that identifies the product as a drug
2as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
3label includes:
4        (A) A "Drug Facts" panel; or
5        (B) A statement of the "active ingredient(s)" with a
6    list of those ingredients contained in the compound,
7    substance or preparation.
8    Beginning on January 1, 2014 (the effective date of Public
9Act 98-122) this amendatory Act of the 98th General Assembly,
10"prescription and nonprescription medicines and drugs"
11includes medical cannabis purchased from a registered
12dispensing organization under the Compassionate Use of Medical
13Cannabis Pilot Program Act.
14    If the property that is acquired from a serviceman is
15acquired outside Illinois and used outside Illinois before
16being brought to Illinois for use here and is taxable under
17this Act, the "selling price" on which the tax is computed
18shall be reduced by an amount that represents a reasonable
19allowance for depreciation for the period of prior out-of-state
20use.
21(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-636,
22eff. 6-1-12; 98-104, eff. 7-22-13; 98-122, eff. 1-1-14; revised
238-9-13.)
 
24    Section 15. The Service Occupation Tax Act is amended by
25changing Section 3-10 as follows:
 

 

 

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1    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
2    Sec. 3-10. Rate of tax. Unless otherwise provided in this
3Section, the tax imposed by this Act is at the rate of 6.25% of
4the "selling price", as defined in Section 2 of the Service Use
5Tax Act, of the tangible personal property. For the purpose of
6computing this tax, in no event shall the "selling price" be
7less than the cost price to the serviceman of the tangible
8personal property transferred. The selling price of each item
9of tangible personal property transferred as an incident of a
10sale of service may be shown as a distinct and separate item on
11the serviceman's billing to the service customer. If the
12selling price is not so shown, the selling price of the
13tangible personal property is deemed to be 50% of the
14serviceman's entire billing to the service customer. When,
15however, a serviceman contracts to design, develop, and produce
16special order machinery or equipment, the tax imposed by this
17Act shall be based on the serviceman's cost price of the
18tangible personal property transferred incident to the
19completion of the contract.
20    Beginning on July 1, 2000 and through December 31, 2000,
21with respect to motor fuel, as defined in Section 1.1 of the
22Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
23the Use Tax Act, the tax is imposed at the rate of 1.25%.
24    With respect to gasohol, as defined in the Use Tax Act, the
25tax imposed by this Act shall apply to (i) 70% of the cost

 

 

HB3666- 14 -LRB098 13488 HLH 48011 b

1price of property transferred as an incident to the sale of
2service on or after January 1, 1990, and before July 1, 2003
3and , (ii) 80% of the selling price of property transferred as
4an incident to the sale of service on or after July 1, 2003 and
5on or before June 30, 2014 December 31, 2018, and (iii) 100% of
6the cost price thereafter. If, at any time, however, the tax
7under this Act on sales of gasohol, as defined in the Use Tax
8Act, is imposed at the rate of 1.25%, then the tax imposed by
9this Act applies to 100% of the proceeds of sales of gasohol
10made during that time.
11    With respect to majority blended ethanol fuel, as defined
12in the Use Tax Act, the tax imposed by this Act does not apply
13to the selling price of property transferred as an incident to
14the sale of service on or after July 1, 2003 and on or before
15December 31, 2018 but applies to 100% of the selling price
16thereafter.
17    With respect to biodiesel blends, as defined in the Use Tax
18Act, with no less than 1% and no more than 10% biodiesel, the
19tax imposed by this Act applies to (i) 80% of the selling price
20of property transferred as an incident to the sale of service
21on or after July 1, 2003 and on or before June 30, 2014
22December 31, 2018 and (ii) 100% of the proceeds of the selling
23price thereafter. If, at any time, however, the tax under this
24Act on sales of biodiesel blends, as defined in the Use Tax
25Act, with no less than 1% and no more than 10% biodiesel is
26imposed at the rate of 1.25%, then the tax imposed by this Act

 

 

HB3666- 15 -LRB098 13488 HLH 48011 b

1applies to 100% of the proceeds of sales of biodiesel blends
2with no less than 1% and no more than 10% biodiesel made during
3that time.
4    With respect to 100% biodiesel, as defined in the Use Tax
5Act, and biodiesel blends, as defined in the Use Tax Act, with
6more than 10% but no more than 99% biodiesel material, the tax
7imposed by this Act does not apply to the proceeds of the
8selling price of property transferred as an incident to the
9sale of service on or after July 1, 2003 and on or before
10December 31, 2018 but applies to 100% of the selling price
11thereafter.
12    Beginning on July 1, 2014, gross receipts from the sale of
13motor fuel, as defined in Section 1.1 of the Motor Fuel Tax
14Act, are exempt from the tax imposed by this Act. For the
15purposes of this exemption, "motor fuel" includes, but is not
16limited to, gasohol, majority blended ethanol fuel, biodiesel,
17and biodiesel blends. This paragraph is exempt from the
18provisions of Section 3-55.
19    At the election of any registered serviceman made for each
20fiscal year, sales of service in which the aggregate annual
21cost price of tangible personal property transferred as an
22incident to the sales of service is less than 35%, or 75% in
23the case of servicemen transferring prescription drugs or
24servicemen engaged in graphic arts production, of the aggregate
25annual total gross receipts from all sales of service, the tax
26imposed by this Act shall be based on the serviceman's cost

 

 

HB3666- 16 -LRB098 13488 HLH 48011 b

1price of the tangible personal property transferred incident to
2the sale of those services.
3    The tax shall be imposed at the rate of 1% on food prepared
4for immediate consumption and transferred incident to a sale of
5service subject to this Act or the Service Occupation Tax Act
6by an entity licensed under the Hospital Licensing Act, the
7Nursing Home Care Act, the ID/DD Community Care Act, the
8Specialized Mental Health Rehabilitation Act of 2013, or the
9Child Care Act of 1969. The tax shall also be imposed at the
10rate of 1% on food for human consumption that is to be consumed
11off the premises where it is sold (other than alcoholic
12beverages, soft drinks, and food that has been prepared for
13immediate consumption and is not otherwise included in this
14paragraph) and prescription and nonprescription medicines,
15drugs, medical appliances, modifications to a motor vehicle for
16the purpose of rendering it usable by a disabled person, and
17insulin, urine testing materials, syringes, and needles used by
18diabetics, for human use. For the purposes of this Section,
19until September 1, 2009: the term "soft drinks" means any
20complete, finished, ready-to-use, non-alcoholic drink, whether
21carbonated or not, including but not limited to soda water,
22cola, fruit juice, vegetable juice, carbonated water, and all
23other preparations commonly known as soft drinks of whatever
24kind or description that are contained in any closed or sealed
25can, carton, or container, regardless of size; but "soft
26drinks" does not include coffee, tea, non-carbonated water,

 

 

HB3666- 17 -LRB098 13488 HLH 48011 b

1infant formula, milk or milk products as defined in the Grade A
2Pasteurized Milk and Milk Products Act, or drinks containing
350% or more natural fruit or vegetable juice.
4    Notwithstanding any other provisions of this Act,
5beginning September 1, 2009, "soft drinks" means non-alcoholic
6beverages that contain natural or artificial sweeteners. "Soft
7drinks" do not include beverages that contain milk or milk
8products, soy, rice or similar milk substitutes, or greater
9than 50% of vegetable or fruit juice by volume.
10    Until August 1, 2009, and notwithstanding any other
11provisions of this Act, "food for human consumption that is to
12be consumed off the premises where it is sold" includes all
13food sold through a vending machine, except soft drinks and
14food products that are dispensed hot from a vending machine,
15regardless of the location of the vending machine. Beginning
16August 1, 2009, and notwithstanding any other provisions of
17this Act, "food for human consumption that is to be consumed
18off the premises where it is sold" includes all food sold
19through a vending machine, except soft drinks, candy, and food
20products that are dispensed hot from a vending machine,
21regardless of the location of the vending machine.
22    Notwithstanding any other provisions of this Act,
23beginning September 1, 2009, "food for human consumption that
24is to be consumed off the premises where it is sold" does not
25include candy. For purposes of this Section, "candy" means a
26preparation of sugar, honey, or other natural or artificial

 

 

HB3666- 18 -LRB098 13488 HLH 48011 b

1sweeteners in combination with chocolate, fruits, nuts or other
2ingredients or flavorings in the form of bars, drops, or
3pieces. "Candy" does not include any preparation that contains
4flour or requires refrigeration.
5    Notwithstanding any other provisions of this Act,
6beginning September 1, 2009, "nonprescription medicines and
7drugs" does not include grooming and hygiene products. For
8purposes of this Section, "grooming and hygiene products"
9includes, but is not limited to, soaps and cleaning solutions,
10shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
11lotions and screens, unless those products are available by
12prescription only, regardless of whether the products meet the
13definition of "over-the-counter-drugs". For the purposes of
14this paragraph, "over-the-counter-drug" means a drug for human
15use that contains a label that identifies the product as a drug
16as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
17label includes:
18        (A) A "Drug Facts" panel; or
19        (B) A statement of the "active ingredient(s)" with a
20    list of those ingredients contained in the compound,
21    substance or preparation.
22    Beginning on January 1, 2014 (the effective date of Public
23Act 98-122) this amendatory Act of the 98th General Assembly,
24"prescription and nonprescription medicines and drugs"
25includes medical cannabis purchased from a registered
26dispensing organization under the Compassionate Use of Medical

 

 

HB3666- 19 -LRB098 13488 HLH 48011 b

1Cannabis Pilot Program Act.
2(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-636,
3eff. 6-1-12; 98-104, eff. 7-22-13; 98-122, eff. 1-1-14; revised
48-9-13.)
 
5    Section 20. The Retailers' Occupation Tax Act is amended by
6changing Sections 2-10 and 2d as follows:
 
7    (35 ILCS 120/2-10)
8    Sec. 2-10. Rate of tax. Unless otherwise provided in this
9Section, the tax imposed by this Act is at the rate of 6.25% of
10gross receipts from sales of tangible personal property made in
11the course of business.
12    Beginning on July 1, 2000 and through December 31, 2000,
13with respect to motor fuel, as defined in Section 1.1 of the
14Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
15the Use Tax Act, the tax is imposed at the rate of 1.25%.
16    Beginning on August 6, 2010 through August 15, 2010, with
17respect to sales tax holiday items as defined in Section 2-8 of
18this Act, the tax is imposed at the rate of 1.25%.
19    Within 14 days after the effective date of this amendatory
20Act of the 91st General Assembly, each retailer of motor fuel
21and gasohol shall cause the following notice to be posted in a
22prominently visible place on each retail dispensing device that
23is used to dispense motor fuel or gasohol in the State of
24Illinois: "As of July 1, 2000, the State of Illinois has

 

 

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1eliminated the State's share of sales tax on motor fuel and
2gasohol through December 31, 2000. The price on this pump
3should reflect the elimination of the tax." The notice shall be
4printed in bold print on a sign that is no smaller than 4
5inches by 8 inches. The sign shall be clearly visible to
6customers. Any retailer who fails to post or maintain a
7required sign through December 31, 2000 is guilty of a petty
8offense for which the fine shall be $500 per day per each
9retail premises where a violation occurs.
10    With respect to gasohol, as defined in the Use Tax Act, the
11tax imposed by this Act applies to (i) 70% of the proceeds of
12sales made on or after January 1, 1990, and before July 1, 2003
13and , (ii) 80% of the proceeds of sales made on or after July 1,
142003 and on or before June 30, 2014 December 31, 2018, and
15(iii) 100% of the proceeds of sales made thereafter. If, at any
16time, however, the tax under this Act on sales of gasohol, as
17defined in the Use Tax Act, is imposed at the rate of 1.25%,
18then the tax imposed by this Act applies to 100% of the
19proceeds of sales of gasohol made during that time.
20    With respect to majority blended ethanol fuel, as defined
21in the Use Tax Act, the tax imposed by this Act does not apply
22to the proceeds of sales made on or after July 1, 2003 and on or
23before December 31, 2018 but applies to 100% of the proceeds of
24sales made thereafter.
25    With respect to biodiesel blends, as defined in the Use Tax
26Act, with no less than 1% and no more than 10% biodiesel, the

 

 

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1tax imposed by this Act applies to (i) 80% of the proceeds of
2sales made on or after July 1, 2003 and on or before June 30,
32014 December 31, 2018 and (ii) 100% of the proceeds of sales
4made thereafter. If, at any time, however, the tax under this
5Act on sales of biodiesel blends, as defined in the Use Tax
6Act, with no less than 1% and no more than 10% biodiesel is
7imposed at the rate of 1.25%, then the tax imposed by this Act
8applies to 100% of the proceeds of sales of biodiesel blends
9with no less than 1% and no more than 10% biodiesel made during
10that time.
11    With respect to 100% biodiesel, as defined in the Use Tax
12Act, and biodiesel blends, as defined in the Use Tax Act, with
13more than 10% but no more than 99% biodiesel, the tax imposed
14by this Act does not apply to the proceeds of sales made on or
15after July 1, 2003 and on or before December 31, 2018 but
16applies to 100% of the proceeds of sales made thereafter.
17    Beginning on July 1, 2014, gross receipts from the sale of
18motor fuel, as defined in Section 1.1 of the Motor Fuel Tax
19Act, are exempt from the tax imposed by this Act. For the
20purposes of this exemption, "motor fuel" includes, but is not
21limited to, gasohol, majority blended ethanol fuel, biodiesel,
22and biodiesel blends. This paragraph is exempt from the
23provisions of Section 2-70.
24    With respect to food for human consumption that is to be
25consumed off the premises where it is sold (other than
26alcoholic beverages, soft drinks, and food that has been

 

 

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

 

 

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

 

 

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1prescription only, regardless of whether the products meet the
2definition of "over-the-counter-drugs". For the purposes of
3this paragraph, "over-the-counter-drug" means a drug for human
4use that contains a label that identifies the product as a drug
5as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
6label includes:
7        (A) A "Drug Facts" panel; or
8        (B) A statement of the "active ingredient(s)" with a
9    list of those ingredients contained in the compound,
10    substance or preparation.
11    Beginning on the effective date of this amendatory Act of
12the 98th General Assembly, "prescription and nonprescription
13medicines and drugs" includes medical cannabis purchased from a
14registered dispensing organization under the Compassionate Use
15of Medical Cannabis Pilot Program Act.
16(Source: P.A. 97-636, eff. 6-1-12; 98-122, eff. 1-1-14.)
 
17    (35 ILCS 120/2d)  (from Ch. 120, par. 441d)
18    Sec. 2d. Tax prepayment by motor fuel retailer.
19    (a) Until July 1, 2014, any Any person engaged in the
20business of selling motor fuel at retail, as defined in the
21Motor Fuel Tax Law, and who is not a licensed distributor or
22supplier, as defined in the Motor Fuel Tax Law, shall prepay to
23his or her distributor, supplier, or other reseller of motor
24fuel a portion of the tax imposed by this Act if the
25distributor, supplier, or other reseller of motor fuel is

 

 

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1registered under Section 2a or Section 2c of this Act. The
2prepayment requirement provided for in this Section does not
3apply to liquid propane gas.
4    (b) Beginning on July 1, 2000 and through December 31,
52000, the Retailers' Occupation Tax paid to the distributor,
6supplier, or other reseller shall be an amount equal to $0.01
7per gallon of the motor fuel, except gasohol as defined in
8Section 2-10 of this Act which shall be an amount equal to
9$0.01 per gallon, purchased from the distributor, supplier, or
10other reseller.
11    (c) Before July 1, 2000 and then beginning on January 1,
122001 and through June 30, 2003, the Retailers' Occupation Tax
13paid to the distributor, supplier, or other reseller shall be
14an amount equal to $0.04 per gallon of the motor fuel, except
15gasohol as defined in Section 2-10 of this Act which shall be
16an amount equal to $0.03 per gallon, purchased from the
17distributor, supplier, or other reseller.
18    (d) Beginning July 1, 2003 and through December 31, 2010,
19the Retailers' Occupation Tax paid to the distributor,
20supplier, or other reseller shall be an amount equal to $0.06
21per gallon of the motor fuel, except gasohol as defined in
22Section 2-10 of this Act which shall be an amount equal to
23$0.05 per gallon, purchased from the distributor, supplier, or
24other reseller.
25    (e) Beginning on January 1, 2011 and until July 1, 2014
26thereafter, the Retailers' Occupation Tax paid to the

 

 

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1distributor, supplier, or other reseller shall be at the rate
2established by the Department under this subsection. The rate
3shall be established by the Department on January 1 and July 1
4of each year using the average selling price, as defined in
5Section 1 of this Act, per gallon of motor fuel sold in the
6State during the previous 6 months and multiplying that amount
7by 6.25% to determine the cents per gallon rate. In the case of
8biodiesel blends, as defined in Section 3-42 of the Use Tax
9Act, with no less than 1% and no more than 10% biodiesel, and
10in the case of gasohol, as defined in Section 3-40 of the Use
11Tax Act, the rate shall be 80% of the rate established by the
12Department under this subsection for motor fuel. The Department
13shall provide persons subject to this Section notice of the
14rate established under this subsection at least 20 days prior
15to each January 1 and July 1. Publication of the established
16rate on the Department's internet website shall constitute
17sufficient notice under this Section. The Department may use
18data derived from independent surveys conducted or accumulated
19by third parties to determine the average selling price per
20gallon of motor fuel sold in the State.
21    (f) Any person engaged in the business of selling motor
22fuel at retail shall be entitled to a credit against tax due
23under this Act in an amount equal to the tax paid to the
24distributor, supplier, or other reseller.
25    (g) Every distributor, supplier, or other reseller
26registered as provided in Section 2a or Section 2c of this Act

 

 

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1shall remit the prepaid tax on all motor fuel that is due from
2any person engaged in the business of selling at retail motor
3fuel with the returns filed under Section 2f or Section 3 of
4this Act, but the vendors discount provided in Section 3 shall
5not apply to the amount of prepaid tax that is remitted. Any
6distributor or supplier who fails to properly collect and remit
7the tax shall be liable for the tax. For purposes of this
8Section, the prepaid tax is due on invoiced gallons sold during
9a month by the 20th day of the following month.
10(Source: P.A. 96-1384, eff. 7-29-10.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.