Illinois General Assembly - Full Text of HB0229
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Full Text of HB0229  102nd General Assembly

HB0229 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0229

 

Introduced 1/29/2021, by Rep. Charles Meier - Sonya M. Harper - Daniel Swanson

 

SYNOPSIS AS INTRODUCED:
 
New Act
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

    Creates the Illinois Renewable Fuel Standards Act. Provides that diesel fuel must contain at least a stated percentage of biodiesel fuel oil by volume on and after a specified date. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Makes changes concerning incentives for biodiesel to provide that the current exemptions for 100% biodiesel and biodiesel blends with more than 10% but no more than 99% biodiesel sunset on December 31, 2021. Provides that, with respect to 100% biodiesel and biodiesel blends with more than 20% but no more than 99% biodiesel, the taxes do not apply to proceeds of sales made on or after January 1, 2022 and on or before June 30, 2024 but apply 100% of the proceeds of sales made thereafter. Effective immediately, except that provisions creating the Illinois Renewable Fuel Standards Act take effect on July 1, 2021.


LRB102 10358 HLH 15685 b

 

 

A BILL FOR

 

HB0229LRB102 10358 HLH 15685 b

1    AN ACT concerning biodiesel.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4
ARTICLE 5. ILLINOIS RENEWABLE FUEL STANDARDS ACT

 
5    Section 5-1. Short title. This Act may be cited as the
6Illinois Renewable Fuel Standards Act. References in this
7Article to "this Act" mean this Article.
 
8    Section 5-5. Definitions.
9    "Biodiesel" means a renewable diesel fuel derived from
10biomass that is intended for use in diesel engines.
11    "Biodiesel blend" means a blend of biodiesel with
12petroleum-based diesel fuel in which the resultant product
13contains no less than 1% and no more than 99% biodiesel.
14    "Department" means the Department of Agriculture.
15    "Director" means the Director of Agriculture.
 
16    Section 5-10. Minimum content.
17    (a) Except as otherwise provided in this Section, all
18diesel fuel sold or offered for sale in Illinois for use in
19internal combustion engines must contain at least the stated
20percentage of biodiesel fuel oil by volume on and after the
21following dates:

 

 

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1        (1) on and after July 1, 2021 and prior to July 1,
2    2024: 5%; and
3        (2) on and after July 1, 2024: 20%.
4    (b) The minimum content levels in paragraph (2) of
5subsection (a) become effective on the date specified only if
6the Director adopts administrative rules at least 270 days
7prior to the date of the scheduled increase, that all of the
8following conditions have been met, and the State is prepared
9to move to the scheduled minimum content level:
10        (1) an American Society for Testing and Materials
11    specification or equivalent federal standard exists for
12    the next minimum diesel-biodiesel blend;
13        (2) a sufficient supply of biodiesel is available, and
14    the amount of biodiesel produced in this State from
15    feedstock with at least 75% that is produced in the United
16    States is equal to at least 50% of anticipated demand at
17    the next minimum content level; and
18        (3) adequate blending infrastructure and regulatory
19    protocol are in place in order to promote biodiesel
20    quality and avoid any potential economic disruption.
21    (c) During a period of biodiesel fuel shortage or a
22problem with biodiesel quality that negatively affects the
23availability of biodiesel fuel, the Director may temporarily
24suspend the minimum content requirement in subsection (a)
25until there is sufficient biodiesel fuel available to fulfill
26the minimum content requirement.

 

 

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1    (d) The Department shall adopt rules regarding the
2regulation of the fuel standards contained in this Section.
3The Department shall also adopt rules that will provide for
4sufficient resources to assist and direct retailers and
5consumers in complying with the standards contained in this
6Section. In adopting these rules, the Department shall seek
7input from all interested parties, including, but not limited
8to, statewide trade associations.
 
9    Section 5-15. Exempt equipment.
10    (a) The minimum content requirements of Section 5-10 do
11not apply to fuel used in the following equipment:
12        (1) motors located at an electric generating plant
13    regulated by the Nuclear Regulatory Commission;
14        (2) railroad locomotives;
15        (3) vessels of the United States Coast Guard and
16    vessels subject to inspection under United States Code,
17    Title 46, Section 3301, subsection (1), (9), (10), (13),
18    or (15); and
19        (4) generators tested and validated by an entity that
20    designs and manufactures the generators for use in
21    jurisdictions where biodiesel use is not required.
22    (b) Except as provided in Section 5-20, the minimum
23content requirement of Section 5-10 shall apply to all diesel
24sold in the State of Illinois with no exemptions for equipment
25type or usage.
 

 

 

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1    Section 5-20. Number 1 diesel fuel exempt. The minimum
2content requirements of Section 5-10 do not apply to Number 1
3diesel fuel.
 
4    Section 5-25. Disclosure.
5    (a) A refinery or terminal shall provide, at the time
6diesel fuel is sold or transferred from the refinery or
7terminal, a bill of lading or shipping manifest to the person
8who receives the fuel. For biodiesel-blended products, the
9bill of lading or shipping manifest must disclose biodiesel
10content, stating volume percentage, gallons of biodiesel per
11gallons of petroleum diesel base-stock, or an ASTM "Bxx"
12designation where "xx" denotes the volume percent biodiesel
13included in the blended product. This subsection does not
14apply to sales or transfers of biodiesel blend stock between
15refineries, between terminals, or between a refinery and a
16terminal.
17    (b) A delivery ticket required under this Section for a
18biodiesel blend must state the volume percentage of biodiesel
19blended into the diesel fuel delivered through a meter into a
20storage tank used for dispensing into motor vehicles powered
21by an internal combustion engine and not exempt under Section
225-15.
 
23    Section 5-30. Annual report. Beginning in 2026, the

 

 

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1Director must report by January 15 of each year to the General
2Assembly and to the chairs and minority spokespersons of the
3committees of the House of Representatives and the Senate with
4jurisdiction over agriculture policy regarding the
5implementation of the minimum content requirements in Section
65-10, including information about the price and supply of
7biodiesel fuel. The report shall include information about the
8impacts of the biodiesel mandate on the development of
9biodiesel production capacity in the State, and on the use of
10feedstock grown or raised in the State for biodiesel
11production.
 
12
ARTICLE 10. USE AND OCCUPATION TAX; BIODIESEL

 
13    Section 10-5. The Use Tax Act is amended by changing
14Section 3-10 as follows:
 
15    (35 ILCS 105/3-10)
16    Sec. 3-10. Rate of tax. Unless otherwise provided in this
17Section, the tax imposed by this Act is at the rate of 6.25% of
18either the selling price or the fair market value, if any, of
19the tangible personal property. In all cases where property
20functionally used or consumed is the same as the property that
21was purchased at retail, then the tax is imposed on the selling
22price of the property. In all cases where property
23functionally used or consumed is a by-product or waste product

 

 

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1that has been refined, manufactured, or produced from property
2purchased at retail, then the tax is imposed on the lower of
3the fair market value, if any, of the specific property so used
4in this State or on the selling price of the property purchased
5at retail. For purposes of this Section "fair market value"
6means the price at which property would change hands between a
7willing buyer and a willing seller, neither being under any
8compulsion to buy or sell and both having reasonable knowledge
9of the relevant facts. The fair market value shall be
10established by Illinois sales by the taxpayer of the same
11property as that functionally used or consumed, or if there
12are no such sales by the taxpayer, then comparable sales or
13purchases of property of like kind and character in Illinois.
14    Beginning on July 1, 2000 and through December 31, 2000,
15with respect to motor fuel, as defined in Section 1.1 of the
16Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
17the Use Tax Act, the tax is imposed at the rate of 1.25%.
18    Beginning on August 6, 2010 through August 15, 2010, with
19respect to sales tax holiday items as defined in Section 3-6 of
20this Act, the tax is imposed at the rate of 1.25%.
21    With respect to gasohol, the tax imposed by this Act
22applies to (i) 70% of the proceeds of sales made on or after
23January 1, 1990, and before July 1, 2003, (ii) 80% of the
24proceeds of sales made on or after July 1, 2003 and on or
25before July 1, 2017, and (iii) 100% of the proceeds of sales
26made thereafter. If, at any time, however, the tax under this

 

 

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1Act on sales of gasohol is imposed at the rate of 1.25%, then
2the tax imposed by this Act applies to 100% of the proceeds of
3sales of gasohol made during that time.
4    With respect to majority blended ethanol fuel, the tax
5imposed by this Act does not apply to the proceeds of sales
6made on or after July 1, 2003 and on or before December 31,
72023 but applies to 100% of the proceeds of sales made
8thereafter.
9    With respect to biodiesel blends with no less than 1% and
10no more than 10% biodiesel, the tax imposed by this Act applies
11to (i) 80% of the proceeds of sales made on or after July 1,
122003 and on or before December 31, 2018 and (ii) 100% of the
13proceeds of sales made thereafter. If, at any time, however,
14the tax under this Act on sales of biodiesel blends with no
15less than 1% and no more than 10% biodiesel is imposed at the
16rate of 1.25%, then the tax imposed by this Act applies to 100%
17of the proceeds of sales of biodiesel blends with no less than
181% and no more than 10% biodiesel made during that time.
19    With respect to 100% biodiesel and biodiesel blends with
20more than 10% but no more than 99% biodiesel, the tax imposed
21by this Act does not apply to the proceeds of sales made on or
22after July 1, 2003 and on or before December 31, 2021 December
2331, 2023 but applies to 100% of the proceeds of sales made
24thereafter. With respect to 100% biodiesel and biodiesel
25blends with more than 20% but no more than 99% biodiesel, the
26tax imposed by this Act does not apply to proceeds of sales

 

 

HB0229- 8 -LRB102 10358 HLH 15685 b

1made on or after January 1, 2022 and on or before June 30, 2024
2but applies 100% of the proceeds of sales made thereafter.
3    With respect to food for human consumption that is to be
4consumed off the premises where it is sold (other than
5alcoholic beverages, food consisting of or infused with adult
6use cannabis, soft drinks, and food that has been prepared for
7immediate consumption) and prescription and nonprescription
8medicines, drugs, medical appliances, products classified as
9Class III medical devices by the United States Food and Drug
10Administration that are used for cancer treatment pursuant to
11a prescription, as well as any accessories and components
12related to those devices, modifications to a motor vehicle for
13the purpose of rendering it usable by a person with a
14disability, and insulin, urine testing materials, syringes,
15and needles used by diabetics, for human use, the tax is
16imposed at the rate of 1%. For the purposes of this Section,
17until September 1, 2009: the term "soft drinks" means any
18complete, finished, ready-to-use, non-alcoholic drink, whether
19carbonated or not, including but not limited to soda water,
20cola, fruit juice, vegetable juice, carbonated water, and all
21other preparations commonly known as soft drinks of whatever
22kind or description that are contained in any closed or sealed
23bottle, can, carton, or container, regardless of size; but
24"soft drinks" does not include coffee, tea, non-carbonated
25water, infant formula, milk or milk products as defined in the
26Grade A Pasteurized Milk and Milk Products Act, or drinks

 

 

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1containing 50% or more natural fruit or vegetable juice.
2    Notwithstanding any other provisions of this Act,
3beginning September 1, 2009, "soft drinks" means non-alcoholic
4beverages that contain natural or artificial sweeteners. "Soft
5drinks" do not include beverages that contain milk or milk
6products, soy, rice or similar milk substitutes, or greater
7than 50% of vegetable or fruit juice by volume.
8    Until August 1, 2009, and notwithstanding any other
9provisions of this Act, "food for human consumption that is to
10be consumed off the premises where it is sold" includes all
11food sold through a vending machine, except soft drinks and
12food products that are dispensed hot from a vending machine,
13regardless of the location of the vending machine. Beginning
14August 1, 2009, and notwithstanding any other provisions of
15this Act, "food for human consumption that is to be consumed
16off the premises where it is sold" includes all food sold
17through a vending machine, except soft drinks, candy, and food
18products that are dispensed hot from a vending machine,
19regardless of the location of the vending machine.
20    Notwithstanding any other provisions of this Act,
21beginning September 1, 2009, "food for human consumption that
22is to be consumed off the premises where it is sold" does not
23include candy. For purposes of this Section, "candy" means a
24preparation of sugar, honey, or other natural or artificial
25sweeteners in combination with chocolate, fruits, nuts or
26other ingredients or flavorings in the form of bars, drops, or

 

 

HB0229- 10 -LRB102 10358 HLH 15685 b

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

 

 

HB0229- 11 -LRB102 10358 HLH 15685 b

1Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
2and does not include cannabis subject to tax under the
3Compassionate Use of Medical Cannabis Program Act.
4    If the property that is purchased at retail from a
5retailer is acquired outside Illinois and used outside
6Illinois before being brought to Illinois for use here and is
7taxable under this Act, the "selling price" on which the tax is
8computed shall be reduced by an amount that represents a
9reasonable allowance for depreciation for the period of prior
10out-of-state use.
11(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
12101-593, eff. 12-4-19.)
 
13    Section 10-10. The Service Use Tax Act is amended by
14changing Section 3-10 as follows:
 
15    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
16    Sec. 3-10. Rate of tax. Unless otherwise provided in this
17Section, the tax imposed by this Act is at the rate of 6.25% of
18the selling price of tangible personal property transferred as
19an incident to the sale of service, but, for the purpose of
20computing this tax, in no event shall the selling price be less
21than the cost price of the property to the serviceman.
22    Beginning on July 1, 2000 and through December 31, 2000,
23with respect to motor fuel, as defined in Section 1.1 of the
24Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

 

 

HB0229- 12 -LRB102 10358 HLH 15685 b

1the Use Tax Act, the tax is imposed at the rate of 1.25%.
2    With respect to gasohol, as defined in the Use Tax Act, the
3tax imposed by this Act applies to (i) 70% of the selling price
4of property transferred as an incident to the sale of service
5on or after January 1, 1990, and before July 1, 2003, (ii) 80%
6of the selling price of property transferred as an incident to
7the sale of service on or after July 1, 2003 and on or before
8July 1, 2017, and (iii) 100% of the selling price thereafter.
9If, at any time, however, the tax under this Act on sales of
10gasohol, as defined in the Use Tax Act, is imposed at the rate
11of 1.25%, then the tax imposed by this Act applies to 100% of
12the proceeds of sales of gasohol made during that time.
13    With respect to majority blended ethanol fuel, as defined
14in the Use Tax Act, the tax imposed by this Act does not apply
15to the selling price of property transferred as an incident to
16the sale of service on or after July 1, 2003 and on or before
17December 31, 2023 but applies to 100% of the selling price
18thereafter.
19    With respect to biodiesel blends, as defined in the Use
20Tax Act, with no less than 1% and no more than 10% biodiesel,
21the tax imposed by this Act applies to (i) 80% of the selling
22price of property transferred as an incident to the sale of
23service on or after July 1, 2003 and on or before December 31,
242018 and (ii) 100% of the proceeds of the selling price
25thereafter. If, at any time, however, the tax under this Act on
26sales of biodiesel blends, as defined in the Use Tax Act, with

 

 

HB0229- 13 -LRB102 10358 HLH 15685 b

1no less than 1% and no more than 10% biodiesel is imposed at
2the rate of 1.25%, then the tax imposed by this Act applies to
3100% of the proceeds of sales of biodiesel blends with no less
4than 1% and no more than 10% biodiesel made during that time.
5    With respect to 100% biodiesel, as defined in the Use Tax
6Act, and biodiesel blends, as defined in the Use Tax Act, with
7more than 10% but no more than 99% biodiesel, the tax imposed
8by this Act does not apply to the proceeds of the selling price
9of property transferred as an incident to the sale of service
10on or after July 1, 2003 and on or before December 31, 2021
11December 31, 2023 but applies to 100% of the selling price
12thereafter. With respect to 100% biodiesel, as defined in the
13Use Tax Act, and biodiesel blends, as defined in the Use Tax
14Act, with more than 20% but no more than 99% biodiesel, the tax
15imposed by this Act does not apply to proceeds of sales made on
16or after January 1, 2022 and on or before June 30, 2024 but
17applies 100% of the proceeds of sales made thereafter.
18    At the election of any registered serviceman made for each
19fiscal year, sales of service in which the aggregate annual
20cost price of tangible personal property transferred as an
21incident to the sales of service is less than 35%, or 75% in
22the case of servicemen transferring prescription drugs or
23servicemen engaged in graphic arts production, of the
24aggregate annual total gross receipts from all sales of
25service, the tax imposed by this Act shall be based on the
26serviceman's cost price of the tangible personal property

 

 

HB0229- 14 -LRB102 10358 HLH 15685 b

1transferred as an incident to the sale of those services.
2    The tax shall be imposed at the rate of 1% on food prepared
3for immediate consumption and transferred incident to a sale
4of service subject to this Act or the Service Occupation Tax
5Act by an entity licensed under the Hospital Licensing Act,
6the Nursing Home Care Act, the ID/DD Community Care Act, the
7MC/DD Act, the Specialized Mental Health Rehabilitation Act of
82013, or the Child Care Act of 1969. The tax shall also be
9imposed at the rate of 1% on food for human consumption that is
10to be consumed off the premises where it is sold (other than
11alcoholic beverages, food consisting of or infused with adult
12use cannabis, 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, products classified as Class III
16medical devices by the United States Food and Drug
17Administration that are used for cancer treatment pursuant to
18a prescription, as well as any accessories and components
19related to those devices, modifications to a motor vehicle for
20the purpose of rendering it usable by a person with a
21disability, and insulin, urine testing materials, syringes,
22and needles used by diabetics, for human use. For the purposes
23of this Section, until September 1, 2009: the term "soft
24drinks" means any complete, finished, ready-to-use,
25non-alcoholic drink, whether carbonated or not, including but
26not limited to soda water, cola, fruit juice, vegetable juice,

 

 

HB0229- 15 -LRB102 10358 HLH 15685 b

1carbonated water, and all other preparations commonly known as
2soft drinks of whatever kind or description that are contained
3in any closed or sealed bottle, can, carton, or container,
4regardless of size; but "soft drinks" does not include coffee,
5tea, non-carbonated water, infant formula, milk or milk
6products as defined in the Grade A Pasteurized Milk and Milk
7Products Act, or drinks containing 50% or more natural fruit
8or vegetable juice.
9    Notwithstanding any other provisions of this Act,
10beginning September 1, 2009, "soft drinks" means non-alcoholic
11beverages that contain natural or artificial sweeteners. "Soft
12drinks" do not include beverages that contain milk or milk
13products, soy, rice or similar milk substitutes, or greater
14than 50% of vegetable or fruit juice by volume.
15    Until August 1, 2009, and notwithstanding any other
16provisions of this Act, "food for human consumption that is to
17be consumed off the premises where it is sold" includes all
18food sold through a vending machine, except soft drinks and
19food products that are dispensed hot from a vending machine,
20regardless of the location of the vending machine. Beginning
21August 1, 2009, and notwithstanding any other provisions of
22this Act, "food for human consumption that is to be consumed
23off the premises where it is sold" includes all food sold
24through a vending machine, except soft drinks, candy, and food
25products that are dispensed hot from a vending machine,
26regardless of the location of the vending machine.

 

 

HB0229- 16 -LRB102 10358 HLH 15685 b

1    Notwithstanding any other provisions of this Act,
2beginning September 1, 2009, "food for human consumption that
3is to be consumed off the premises where it is sold" does not
4include candy. For purposes of this Section, "candy" means a
5preparation of sugar, honey, or other natural or artificial
6sweeteners in combination with chocolate, fruits, nuts or
7other ingredients or flavorings in the form of bars, drops, or
8pieces. "Candy" does not include any preparation that contains
9flour or requires refrigeration.
10    Notwithstanding any other provisions of this Act,
11beginning September 1, 2009, "nonprescription medicines and
12drugs" does not include grooming and hygiene products. For
13purposes of this Section, "grooming and hygiene products"
14includes, but is not limited to, soaps and cleaning solutions,
15shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
16lotions and screens, unless those products are available by
17prescription only, regardless of whether the products meet the
18definition of "over-the-counter-drugs". For the purposes of
19this paragraph, "over-the-counter-drug" means a drug for human
20use that contains a label that identifies the product as a drug
21as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
22label includes:
23        (A) A "Drug Facts" panel; or
24        (B) A statement of the "active ingredient(s)" with a
25    list of those ingredients contained in the compound,
26    substance or preparation.

 

 

HB0229- 17 -LRB102 10358 HLH 15685 b

1    Beginning on January 1, 2014 (the effective date of Public
2Act 98-122), "prescription and nonprescription medicines and
3drugs" includes medical cannabis purchased from a registered
4dispensing organization under the Compassionate Use of Medical
5Cannabis Program Act.
6    As used in this Section, "adult use cannabis" means
7cannabis subject to tax under the Cannabis Cultivation
8Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
9and does not include cannabis subject to tax under the
10Compassionate Use of Medical Cannabis Program Act.
11    If the property that is acquired from a serviceman is
12acquired outside Illinois and used outside Illinois before
13being brought to Illinois for use here and is taxable under
14this Act, the "selling price" on which the tax is computed
15shall be reduced by an amount that represents a reasonable
16allowance for depreciation for the period of prior
17out-of-state use.
18(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
19101-593, eff. 12-4-19.)
 
20    Section 10-15. The Service Occupation Tax Act is amended
21by changing Section 3-10 as follows:
 
22    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
23    Sec. 3-10. Rate of tax. Unless otherwise provided in this
24Section, the tax imposed by this Act is at the rate of 6.25% of

 

 

HB0229- 18 -LRB102 10358 HLH 15685 b

1the "selling price", as defined in Section 2 of the Service Use
2Tax Act, of the tangible personal property. For the purpose of
3computing this tax, in no event shall the "selling price" be
4less than the cost price to the serviceman of the tangible
5personal property transferred. The selling price of each item
6of tangible personal property transferred as an incident of a
7sale of service may be shown as a distinct and separate item on
8the serviceman's billing to the service customer. If the
9selling price is not so shown, the selling price of the
10tangible personal property is deemed to be 50% of the
11serviceman's entire billing to the service customer. When,
12however, a serviceman contracts to design, develop, and
13produce special order machinery or equipment, the tax imposed
14by this Act shall be based on the serviceman's cost price of
15the tangible personal property transferred incident to the
16completion of the contract.
17    Beginning on July 1, 2000 and through December 31, 2000,
18with respect to motor fuel, as defined in Section 1.1 of the
19Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
20the Use Tax Act, the tax is imposed at the rate of 1.25%.
21    With respect to gasohol, as defined in the Use Tax Act, the
22tax imposed by this Act shall apply to (i) 70% of the cost
23price of property transferred as an incident to the sale of
24service on or after January 1, 1990, and before July 1, 2003,
25(ii) 80% of the selling price of property transferred as an
26incident to the sale of service on or after July 1, 2003 and on

 

 

HB0229- 19 -LRB102 10358 HLH 15685 b

1or before July 1, 2017, and (iii) 100% of the cost price
2thereafter. If, at any time, however, the tax under this Act on
3sales of gasohol, as defined in the Use Tax Act, is imposed at
4the rate of 1.25%, then the tax imposed by this Act applies to
5100% of the proceeds of sales of gasohol made during that time.
6    With respect to majority blended ethanol fuel, as defined
7in the Use Tax Act, the tax imposed by this Act does not apply
8to the selling price of property transferred as an incident to
9the sale of service on or after July 1, 2003 and on or before
10December 31, 2023 but applies to 100% of the selling price
11thereafter.
12    With respect to biodiesel blends, as defined in the Use
13Tax Act, with no less than 1% and no more than 10% biodiesel,
14the tax imposed by this Act applies to (i) 80% of the selling
15price of property transferred as an incident to the sale of
16service on or after July 1, 2003 and on or before December 31,
172018 and (ii) 100% of the proceeds of the selling price
18thereafter. If, at any time, however, the tax under this Act on
19sales of biodiesel blends, as defined in the Use Tax Act, with
20no less than 1% and no more than 10% biodiesel is imposed at
21the rate of 1.25%, then the tax imposed by this Act applies to
22100% of the proceeds of sales of biodiesel blends with no less
23than 1% and no more than 10% biodiesel made during that time.
24    With respect to 100% biodiesel, as defined in the Use Tax
25Act, and biodiesel blends, as defined in the Use Tax Act, with
26more than 10% but no more than 99% biodiesel material, the tax

 

 

HB0229- 20 -LRB102 10358 HLH 15685 b

1imposed by this Act does not apply to the proceeds of the
2selling price of property transferred as an incident to the
3sale of service on or after July 1, 2003 and on or before
4December 31, 2021 December 31, 2023 but applies to 100% of the
5selling price thereafter. With respect to 100% biodiesel, as
6defined in the Use Tax Act, and biodiesel blends, as defined in
7the Use Tax Act, with more than 20% but no more than 99%
8biodiesel, the tax imposed by this Act does not apply to
9proceeds of sales made on or after January 1, 2022 and on or
10before June 30, 2024 but applies 100% of the proceeds of sales
11made thereafter.
12    At the election of any registered serviceman made for each
13fiscal year, sales of service in which the aggregate annual
14cost price of tangible personal property transferred as an
15incident to the sales of service is less than 35%, or 75% in
16the case of servicemen transferring prescription drugs or
17servicemen engaged in graphic arts production, of the
18aggregate annual total gross receipts from all sales of
19service, the tax imposed by this Act shall be based on the
20serviceman's cost price of the tangible personal property
21transferred incident to the sale of those services.
22    The tax shall be imposed at the rate of 1% on food prepared
23for immediate consumption and transferred incident to a sale
24of service subject to this Act or the Service Occupation Tax
25Act by an entity licensed under the Hospital Licensing Act,
26the Nursing Home Care Act, the ID/DD Community Care Act, the

 

 

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1MC/DD Act, the Specialized Mental Health Rehabilitation Act of
22013, or the Child Care Act of 1969. The tax shall also be
3imposed at the rate of 1% on food for human consumption that is
4to be consumed off the premises where it is sold (other than
5alcoholic beverages, food consisting of or infused with adult
6use cannabis, soft drinks, and food that has been prepared for
7immediate consumption and is not otherwise included in this
8paragraph) and prescription and nonprescription medicines,
9drugs, medical appliances, products classified as Class III
10medical devices by the United States Food and Drug
11Administration that are used for cancer treatment pursuant to
12a prescription, as well as any accessories and components
13related to those devices, modifications to a motor vehicle for
14the purpose of rendering it usable by a person with a
15disability, and insulin, urine testing materials, syringes,
16and needles used by diabetics, for human use. For the purposes
17of this Section, until September 1, 2009: the term "soft
18drinks" means any complete, finished, ready-to-use,
19non-alcoholic drink, whether carbonated or not, including but
20not limited to soda water, cola, fruit juice, vegetable juice,
21carbonated water, and all other preparations commonly known as
22soft drinks of whatever kind or description that are contained
23in any closed or sealed can, carton, or container, regardless
24of size; but "soft drinks" does not include coffee, tea,
25non-carbonated water, infant formula, milk or milk products as
26defined in the Grade A Pasteurized Milk and Milk Products Act,

 

 

HB0229- 22 -LRB102 10358 HLH 15685 b

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

 

 

HB0229- 23 -LRB102 10358 HLH 15685 b

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

 

 

HB0229- 24 -LRB102 10358 HLH 15685 b

1cannabis subject to tax under the Cannabis Cultivation
2Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
3and does not include cannabis subject to tax under the
4Compassionate Use of Medical Cannabis Program Act.
5(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
6101-593, eff. 12-4-19.)
 
7    Section 10-20. The Retailers' Occupation Tax Act is
8amended by changing Section 2-10 as follows:
 
9    (35 ILCS 120/2-10)
10    Sec. 2-10. Rate of tax. Unless otherwise provided in this
11Section, the tax imposed by this Act is at the rate of 6.25% of
12gross receipts from sales of tangible personal property made
13in the course of business.
14    Beginning on July 1, 2000 and through December 31, 2000,
15with respect to motor fuel, as defined in Section 1.1 of the
16Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
17the Use Tax Act, the tax is imposed at the rate of 1.25%.
18    Beginning on August 6, 2010 through August 15, 2010, with
19respect to sales tax holiday items as defined in Section 2-8 of
20this Act, the tax is imposed at the rate of 1.25%.
21    Within 14 days after the effective date of this amendatory
22Act of the 91st General Assembly, each retailer of motor fuel
23and gasohol shall cause the following notice to be posted in a
24prominently visible place on each retail dispensing device

 

 

HB0229- 25 -LRB102 10358 HLH 15685 b

1that is used to dispense motor fuel or gasohol in the State of
2Illinois: "As of July 1, 2000, the State of Illinois has
3eliminated the State's share of sales tax on motor fuel and
4gasohol through December 31, 2000. The price on this pump
5should reflect the elimination of the tax." The notice shall
6be printed in bold print on a sign that is no smaller than 4
7inches by 8 inches. The sign shall be clearly visible to
8customers. Any retailer who fails to post or maintain a
9required sign through December 31, 2000 is guilty of a petty
10offense for which the fine shall be $500 per day per each
11retail premises where a violation occurs.
12    With respect to gasohol, as defined in the Use Tax Act, the
13tax imposed by this Act applies to (i) 70% of the proceeds of
14sales made on or after January 1, 1990, and before July 1,
152003, (ii) 80% of the proceeds of sales made on or after July
161, 2003 and on or before July 1, 2017, and (iii) 100% of the
17proceeds of sales made thereafter. If, at any time, however,
18the tax under this Act on sales of gasohol, as defined in the
19Use Tax Act, is imposed at the rate of 1.25%, then the tax
20imposed by this Act applies to 100% of the proceeds of sales of
21gasohol made during that time.
22    With respect to majority blended ethanol fuel, as defined
23in the Use Tax Act, the tax imposed by this Act does not apply
24to the proceeds of sales made on or after July 1, 2003 and on
25or before December 31, 2023 but applies to 100% of the proceeds
26of sales made thereafter.

 

 

HB0229- 26 -LRB102 10358 HLH 15685 b

1    With respect to biodiesel blends, as defined in the Use
2Tax Act, with no less than 1% and no more than 10% biodiesel,
3the tax imposed by this Act applies to (i) 80% of the proceeds
4of sales made on or after July 1, 2003 and on or before
5December 31, 2018 and (ii) 100% of the proceeds of sales made
6thereafter. If, at any time, however, the tax under this Act on
7sales of biodiesel blends, as defined in the Use Tax Act, with
8no less than 1% and no more than 10% biodiesel is imposed at
9the rate of 1.25%, then the tax imposed by this Act applies to
10100% of the proceeds of sales of biodiesel blends with no less
11than 1% and no more than 10% biodiesel made during that time.
12    With respect to 100% biodiesel, as defined in the Use Tax
13Act, and biodiesel blends, as defined in the Use Tax Act, with
14more than 10% but no more than 99% biodiesel, the tax imposed
15by this Act does not apply to the proceeds of sales made on or
16after July 1, 2003 and on or before December 31, 2021 December
1731, 2023 but applies to 100% of the proceeds of sales made
18thereafter. With respect to 100% biodiesel, as defined in the
19Use Tax Act, and biodiesel blends, as defined in the Use Tax
20Act, with more than 20% but no more than 99% biodiesel, the tax
21imposed by this Act does not apply to proceeds of sales made on
22or after January 1, 2022 and on or before June 30, 2024 but
23applies 100% of the proceeds of sales made thereafter.
24    With respect to food for human consumption that is to be
25consumed off the premises where it is sold (other than
26alcoholic beverages, food consisting of or infused with adult

 

 

HB0229- 27 -LRB102 10358 HLH 15685 b

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

 

 

HB0229- 28 -LRB102 10358 HLH 15685 b

1products, soy, rice or similar milk substitutes, or greater
2than 50% of vegetable or fruit juice by volume.
3    Until August 1, 2009, and notwithstanding any other
4provisions of this Act, "food for human consumption that is to
5be consumed off the premises where it is sold" includes all
6food sold through a vending machine, except soft drinks and
7food products that are dispensed hot from a vending machine,
8regardless of the location of the vending machine. Beginning
9August 1, 2009, and notwithstanding any other provisions of
10this Act, "food for human consumption that is to be consumed
11off the premises where it is sold" includes all food sold
12through a vending machine, except soft drinks, candy, and food
13products that are dispensed hot from a vending machine,
14regardless of the location of the vending machine.
15    Notwithstanding any other provisions of this Act,
16beginning September 1, 2009, "food for human consumption that
17is to be consumed off the premises where it is sold" does not
18include candy. For purposes of this Section, "candy" means a
19preparation of sugar, honey, or other natural or artificial
20sweeteners in combination with chocolate, fruits, nuts or
21other ingredients or flavorings in the form of bars, drops, or
22pieces. "Candy" does not include any preparation that contains
23flour or requires refrigeration.
24    Notwithstanding any other provisions of this Act,
25beginning September 1, 2009, "nonprescription medicines and
26drugs" does not include grooming and hygiene products. For

 

 

HB0229- 29 -LRB102 10358 HLH 15685 b

1purposes of this Section, "grooming and hygiene products"
2includes, but is not limited to, soaps and cleaning solutions,
3shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
4lotions and screens, unless those products are available by
5prescription only, regardless of whether the products meet the
6definition of "over-the-counter-drugs". For the purposes of
7this paragraph, "over-the-counter-drug" means a drug for human
8use that contains a label that identifies the product as a drug
9as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
10label includes:
11        (A) A "Drug Facts" panel; or
12        (B) A statement of the "active ingredient(s)" with a
13    list of those ingredients contained in the compound,
14    substance or preparation.
15    Beginning on the effective date of this amendatory Act of
16the 98th General Assembly, "prescription and nonprescription
17medicines and drugs" includes medical cannabis purchased from
18a registered dispensing organization under the Compassionate
19Use of Medical Cannabis Program Act.
20    As used in this Section, "adult use cannabis" means
21cannabis subject to tax under the Cannabis Cultivation
22Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
23and does not include cannabis subject to tax under the
24Compassionate Use of Medical Cannabis Program Act.
25(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
26101-593, eff. 12-4-19.)
 

 

 

HB0229- 30 -LRB102 10358 HLH 15685 b

1
ARTICLE 99. EFFECTIVE DATE

 
2    Section 99-99. Effective date. Article 5 of this Act takes
3effect July 1, 2021. This Article and Article 10 of this Act
4take effect upon becoming law.