Illinois General Assembly - Full Text of SB2394
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Full Text of SB2394  102nd General Assembly

SB2394 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2394

 

Introduced 2/26/2021, by Sen. Patrick J. Joyce

 

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 16502 HLH 21895 b

 

 

A BILL FOR

 

SB2394LRB102 16502 HLH 21895 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 implements 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 chairs
2and ranking minority members of the legislative committees and
3divisions with jurisdiction over agriculture policy regarding
4the implementation of the minimum content requirements in
5Section 5-10, including information about the price and supply
6of biodiesel fuel. The report shall include information about
7the impacts of the biodiesel mandate on the development of
8biodiesel production capacity in the State, and on the use of
9feedstock grown or raised in the State for biodiesel
10production.
 
11
ARTICLE 10. USE AND OCCUPATION TAX; BIODIESEL

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

 

 

SB2394- 6 -LRB102 16502 HLH 21895 b

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

 

 

SB2394- 7 -LRB102 16502 HLH 21895 b

1the tax imposed by this Act applies to 100% of the proceeds of
2sales of gasohol made during that time.
3    With respect to majority blended ethanol fuel, the tax
4imposed by this Act does not apply to the proceeds of sales
5made on or after July 1, 2003 and on or before December 31,
62023 but applies to 100% of the proceeds of sales made
7thereafter.
8    With respect to biodiesel blends with no less than 1% and
9no more than 10% biodiesel, the tax imposed by this Act applies
10to (i) 80% of the proceeds of sales made on or after July 1,
112003 and on or before December 31, 2018 and (ii) 100% of the
12proceeds of sales made thereafter. If, at any time, however,
13the tax under this Act on sales of biodiesel blends with no
14less than 1% and no more than 10% biodiesel is imposed at the
15rate of 1.25%, then the tax imposed by this Act applies to 100%
16of the proceeds of sales of biodiesel blends with no less than
171% and no more than 10% biodiesel made during that time.
18    With respect to 100% biodiesel and biodiesel blends with
19more than 10% but no more than 99% biodiesel, the tax imposed
20by this Act does not apply to the proceeds of sales made on or
21after July 1, 2003 and on or before December 31, 2021 December
2231, 2023 but applies to 100% of the proceeds of sales made
23thereafter. With respect to 100% biodiesel and biodiesel
24blends with more than 20% but no more than 99% biodiesel, the
25tax imposed by this Act does not apply to proceeds of sales
26made on or after January 1, 2022 and on or before June 30, 2024

 

 

SB2394- 8 -LRB102 16502 HLH 21895 b

1but applies 100% of the proceeds of sales made thereafter.
2    With respect to food for human consumption that is to be
3consumed off the premises where it is sold (other than
4alcoholic beverages, food consisting of or infused with adult
5use cannabis, soft drinks, and food that has been prepared for
6immediate consumption) and prescription and nonprescription
7medicines, drugs, medical appliances, products classified as
8Class III medical devices by the United States Food and Drug
9Administration that are used for cancer treatment pursuant to
10a prescription, as well as any accessories and components
11related to those devices, modifications to a motor vehicle for
12the purpose of rendering it usable by a person with a
13disability, and insulin, urine testing materials, syringes,
14and needles used by diabetics, for human use, the tax is
15imposed at the rate of 1%. For the purposes of this Section,
16until September 1, 2009: the term "soft drinks" means any
17complete, finished, ready-to-use, non-alcoholic drink, whether
18carbonated or not, including but not limited to soda water,
19cola, fruit juice, vegetable juice, carbonated water, and all
20other preparations commonly known as soft drinks of whatever
21kind or description that are contained in any closed or sealed
22bottle, can, carton, or container, regardless of size; but
23"soft drinks" does not include coffee, tea, non-carbonated
24water, infant formula, milk or milk products as defined in the
25Grade A Pasteurized Milk and Milk Products Act, or drinks
26containing 50% or more natural fruit or vegetable juice.

 

 

SB2394- 9 -LRB102 16502 HLH 21895 b

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

 

 

SB2394- 10 -LRB102 16502 HLH 21895 b

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

 

 

SB2394- 11 -LRB102 16502 HLH 21895 b

1and does not include cannabis subject to tax under the
2Compassionate Use of Medical Cannabis Program Act.
3    If the property that is purchased at retail from a
4retailer is acquired outside Illinois and used outside
5Illinois before being brought to Illinois for use here and is
6taxable under this Act, the "selling price" on which the tax is
7computed shall be reduced by an amount that represents a
8reasonable allowance for depreciation for the period of prior
9out-of-state use.
10(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
11101-593, eff. 12-4-19.)
 
12    Section 10-10. The Service Use Tax Act is amended by
13changing Section 3-10 as follows:
 
14    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
15    Sec. 3-10. Rate of tax. Unless otherwise provided in this
16Section, the tax imposed by this Act is at the rate of 6.25% of
17the selling price of tangible personal property transferred as
18an incident to the sale of service, but, for the purpose of
19computing this tax, in no event shall the selling price be less
20than the cost price of the property to the serviceman.
21    Beginning on July 1, 2000 and through December 31, 2000,
22with respect to motor fuel, as defined in Section 1.1 of the
23Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
24the Use Tax Act, the tax is imposed at the rate of 1.25%.

 

 

SB2394- 12 -LRB102 16502 HLH 21895 b

1    With respect to gasohol, as defined in the Use Tax Act, the
2tax imposed by this Act applies to (i) 70% of the selling price
3of property transferred as an incident to the sale of service
4on or after January 1, 1990, and before July 1, 2003, (ii) 80%
5of the selling price of property transferred as an incident to
6the sale of service on or after July 1, 2003 and on or before
7July 1, 2017, and (iii) 100% of the selling price thereafter.
8If, at any time, however, the tax under this Act on sales of
9gasohol, as defined in the Use Tax Act, is imposed at the rate
10of 1.25%, then the tax imposed by this Act applies to 100% of
11the proceeds of sales of gasohol made during that time.
12    With respect to majority blended ethanol fuel, as defined
13in the Use Tax Act, the tax imposed by this Act does not apply
14to the selling price of property transferred as an incident to
15the sale of service on or after July 1, 2003 and on or before
16December 31, 2023 but applies to 100% of the selling price
17thereafter.
18    With respect to biodiesel blends, as defined in the Use
19Tax Act, with no less than 1% and no more than 10% biodiesel,
20the tax imposed by this Act applies to (i) 80% of the selling
21price of property transferred as an incident to the sale of
22service on or after July 1, 2003 and on or before December 31,
232018 and (ii) 100% of the proceeds of the selling price
24thereafter. If, at any time, however, the tax under this Act on
25sales of biodiesel blends, as defined in the Use Tax Act, with
26no less than 1% and no more than 10% biodiesel is imposed at

 

 

SB2394- 13 -LRB102 16502 HLH 21895 b

1the rate of 1.25%, then the tax imposed by this Act applies to
2100% of the proceeds of sales of biodiesel blends with no less
3than 1% and no more than 10% biodiesel made during that 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, the tax imposed
7by this Act does not apply to the proceeds of the selling price
8of property transferred as an incident to the sale of service
9on or after July 1, 2003 and on or before December 31, 2021
10December 31, 2023 but applies to 100% of the selling price
11thereafter. With respect to 100% biodiesel, as defined in the
12Use Tax Act, and biodiesel blends, as defined in the Use Tax
13Act, with more than 20% but no more than 99% biodiesel, the tax
14imposed by this Act does not apply to proceeds of sales made on
15or after January 1, 2022 and on or before June 30, 2024 but
16applies 100% of the proceeds of sales made thereafter.
17    At the election of any registered serviceman made for each
18fiscal year, sales of service in which the aggregate annual
19cost price of tangible personal property transferred as an
20incident to the sales of service is less than 35%, or 75% in
21the case of servicemen transferring prescription drugs or
22servicemen engaged in graphic arts production, of the
23aggregate annual total gross receipts from all sales of
24service, the tax imposed by this Act shall be based on the
25serviceman's cost price of the tangible personal property
26transferred as an incident to the sale of those services.

 

 

SB2394- 14 -LRB102 16502 HLH 21895 b

1    The tax shall be imposed at the rate of 1% on food prepared
2for immediate consumption and transferred incident to a sale
3of service subject to this Act or the Service Occupation Tax
4Act by an entity licensed under the Hospital Licensing Act,
5the Nursing Home Care Act, the ID/DD Community Care Act, the
6MC/DD Act, the Specialized Mental Health Rehabilitation Act of
72013, or the Child Care Act of 1969. The tax shall also be
8imposed at the rate of 1% on food for human consumption that is
9to be consumed off the premises where it is sold (other than
10alcoholic beverages, food consisting of or infused with adult
11use cannabis, soft drinks, and food that has been prepared for
12immediate consumption and is not otherwise included in this
13paragraph) and prescription and nonprescription medicines,
14drugs, medical appliances, products classified as Class III
15medical devices by the United States Food and Drug
16Administration that are used for cancer treatment pursuant to
17a prescription, as well as any accessories and components
18related to those devices, modifications to a motor vehicle for
19the purpose of rendering it usable by a person with a
20disability, and insulin, urine testing materials, syringes,
21and needles used by diabetics, for human use. For the purposes
22of this Section, until September 1, 2009: the term "soft
23drinks" means any complete, finished, ready-to-use,
24non-alcoholic drink, whether carbonated or not, including but
25not limited to soda water, cola, fruit juice, vegetable juice,
26carbonated water, and all other preparations commonly known as

 

 

SB2394- 15 -LRB102 16502 HLH 21895 b

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

 

 

SB2394- 16 -LRB102 16502 HLH 21895 b

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

 

 

SB2394- 17 -LRB102 16502 HLH 21895 b

1Act 98-122), "prescription and nonprescription medicines and
2drugs" includes medical cannabis purchased from a registered
3dispensing organization under the Compassionate Use of Medical
4Cannabis Program Act.
5    As used in this Section, "adult use cannabis" means
6cannabis subject to tax under the Cannabis Cultivation
7Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
8and does not include cannabis subject to tax under the
9Compassionate Use of Medical Cannabis Program Act.
10    If the property that is acquired from a serviceman is
11acquired outside Illinois and used outside Illinois before
12being brought to Illinois for use here and is taxable under
13this Act, the "selling price" on which the tax is computed
14shall be reduced by an amount that represents a reasonable
15allowance for depreciation for the period of prior
16out-of-state use.
17(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
18101-593, eff. 12-4-19.)
 
19    Section 10-15. The Service Occupation Tax Act is amended
20by changing Section 3-10 as follows:
 
21    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
22    Sec. 3-10. Rate of tax. Unless otherwise provided in this
23Section, the tax imposed by this Act is at the rate of 6.25% of
24the "selling price", as defined in Section 2 of the Service Use

 

 

SB2394- 18 -LRB102 16502 HLH 21895 b

1Tax Act, of the tangible personal property. For the purpose of
2computing this tax, in no event shall the "selling price" be
3less than the cost price to the serviceman of the tangible
4personal property transferred. The selling price of each item
5of tangible personal property transferred as an incident of a
6sale of service may be shown as a distinct and separate item on
7the serviceman's billing to the service customer. If the
8selling price is not so shown, the selling price of the
9tangible personal property is deemed to be 50% of the
10serviceman's entire billing to the service customer. When,
11however, a serviceman contracts to design, develop, and
12produce special order machinery or equipment, the tax imposed
13by this Act shall be based on the serviceman's cost price of
14the tangible personal property transferred incident to the
15completion of the contract.
16    Beginning on July 1, 2000 and through December 31, 2000,
17with respect to motor fuel, as defined in Section 1.1 of the
18Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
19the Use Tax Act, the tax is imposed at the rate of 1.25%.
20    With respect to gasohol, as defined in the Use Tax Act, the
21tax imposed by this Act shall apply to (i) 70% of the cost
22price of property transferred as an incident to the sale of
23service on or after January 1, 1990, and before July 1, 2003,
24(ii) 80% of the selling price of property transferred as an
25incident to the sale of service on or after July 1, 2003 and on
26or before July 1, 2017, and (iii) 100% of the cost price

 

 

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1thereafter. If, at any time, however, the tax under this Act on
2sales of gasohol, as defined in the Use Tax Act, is imposed at
3the rate of 1.25%, then the tax imposed by this Act applies to
4100% of the proceeds of sales of gasohol made during that time.
5    With respect to majority blended ethanol fuel, as defined
6in the Use Tax Act, the tax imposed by this Act does not apply
7to the selling price of property transferred as an incident to
8the sale of service on or after July 1, 2003 and on or before
9December 31, 2023 but applies to 100% of the selling price
10thereafter.
11    With respect to biodiesel blends, as defined in the Use
12Tax Act, with no less than 1% and no more than 10% biodiesel,
13the tax imposed by this Act applies to (i) 80% of the selling
14price of property transferred as an incident to the sale of
15service on or after July 1, 2003 and on or before December 31,
162018 and (ii) 100% of the proceeds of the selling price
17thereafter. If, at any time, however, the tax under this Act on
18sales of biodiesel blends, as defined in the Use Tax Act, with
19no less than 1% and no more than 10% biodiesel is imposed at
20the rate of 1.25%, then the tax imposed by this Act applies to
21100% of the proceeds of sales of biodiesel blends with no less
22than 1% and no more than 10% biodiesel made during that time.
23    With respect to 100% biodiesel, as defined in the Use Tax
24Act, and biodiesel blends, as defined in the Use Tax Act, with
25more than 10% but no more than 99% biodiesel material, the tax
26imposed by this Act does not apply to the proceeds of the

 

 

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

 

 

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12013, or the Child Care Act of 1969. The tax shall also be
2imposed at the rate of 1% on food for human consumption that is
3to be consumed off the premises where it is sold (other than
4alcoholic beverages, food consisting of or infused with adult
5use cannabis, soft drinks, and food that has been prepared for
6immediate consumption and is not otherwise included in this
7paragraph) and prescription and nonprescription medicines,
8drugs, medical appliances, products classified as Class III
9medical 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. For the purposes
16of this Section, until September 1, 2009: the term "soft
17drinks" means any complete, finished, ready-to-use,
18non-alcoholic drink, whether carbonated or not, including but
19not limited to soda water, cola, fruit juice, vegetable juice,
20carbonated water, and all other preparations commonly known as
21soft drinks of whatever kind or description that are contained
22in any closed or sealed can, carton, or container, regardless
23of size; but "soft drinks" does not include coffee, tea,
24non-carbonated water, infant formula, milk or milk products as
25defined in the Grade A Pasteurized Milk and Milk Products Act,
26or drinks containing 50% or more natural fruit or vegetable

 

 

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1juice.
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

 

 

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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 January 1, 2014 (the effective date of Public
21Act 98-122), "prescription and nonprescription medicines and
22drugs" includes medical cannabis purchased from a registered
23dispensing organization under the Compassionate Use of Medical
24Cannabis Program Act.
25    As used in this Section, "adult use cannabis" means
26cannabis subject to tax under the Cannabis Cultivation

 

 

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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(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
5101-593, eff. 12-4-19.)
 
6    Section 10-20. The Retailers' Occupation Tax Act is
7amended by changing Section 2-10 as follows:
 
8    (35 ILCS 120/2-10)
9    Sec. 2-10. Rate of tax. Unless otherwise provided in this
10Section, the tax imposed by this Act is at the rate of 6.25% of
11gross receipts from sales of tangible personal property made
12in the course of business.
13    Beginning on July 1, 2000 and through December 31, 2000,
14with respect to motor fuel, as defined in Section 1.1 of the
15Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
16the Use Tax Act, the tax is imposed at the rate of 1.25%.
17    Beginning on August 6, 2010 through August 15, 2010, with
18respect to sales tax holiday items as defined in Section 2-8 of
19this Act, the tax is imposed at the rate of 1.25%.
20    Within 14 days after the effective date of this amendatory
21Act of the 91st General Assembly, each retailer of motor fuel
22and gasohol shall cause the following notice to be posted in a
23prominently visible place on each retail dispensing device
24that is used to dispense motor fuel or gasohol in the State of

 

 

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1Illinois: "As of July 1, 2000, the State of Illinois has
2eliminated the State's share of sales tax on motor fuel and
3gasohol through December 31, 2000. The price on this pump
4should reflect the elimination of the tax." The notice shall
5be printed in bold print on a sign that is no smaller than 4
6inches by 8 inches. The sign shall be clearly visible to
7customers. Any retailer who fails to post or maintain a
8required sign through December 31, 2000 is guilty of a petty
9offense for which the fine shall be $500 per day per each
10retail premises where a violation occurs.
11    With respect to gasohol, as defined in the Use Tax Act, the
12tax imposed by this Act applies to (i) 70% of the proceeds of
13sales made on or after January 1, 1990, and before July 1,
142003, (ii) 80% of the proceeds of sales made on or after July
151, 2003 and on or before July 1, 2017, and (iii) 100% of the
16proceeds of sales made thereafter. If, at any time, however,
17the tax under this Act on sales of gasohol, as defined in the
18Use Tax Act, is imposed at the rate of 1.25%, then the tax
19imposed by this Act applies to 100% of the proceeds of sales of
20gasohol made during that time.
21    With respect to majority blended ethanol fuel, as defined
22in the Use Tax Act, the tax imposed by this Act does not apply
23to the proceeds of sales made on or after July 1, 2003 and on
24or before December 31, 2023 but applies to 100% of the proceeds
25of sales made thereafter.
26    With respect to biodiesel blends, as defined in the Use

 

 

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1Tax Act, with no less than 1% and no more than 10% biodiesel,
2the tax imposed by this Act applies to (i) 80% of the proceeds
3of sales made on or after July 1, 2003 and on or before
4December 31, 2018 and (ii) 100% of the proceeds of sales made
5thereafter. If, at any time, however, the tax under this Act on
6sales of biodiesel blends, as defined in the Use Tax Act, with
7no less than 1% and no more than 10% biodiesel is imposed at
8the rate of 1.25%, then the tax imposed by this Act applies to
9100% of the proceeds of sales of biodiesel blends with no less
10than 1% and no more than 10% biodiesel made during that 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, 2021 December
1631, 2023 but applies to 100% of the proceeds of sales made
17thereafter. With respect to 100% biodiesel, as defined in the
18Use Tax Act, and biodiesel blends, as defined in the Use Tax
19Act, with more than 20% but no more than 99% biodiesel, the tax
20imposed by this Act does not apply to proceeds of sales made on
21or after January 1, 2022 and on or before June 30, 2024 but
22applies 100% of the proceeds of sales made thereafter.
23    With respect to food for human consumption that is to be
24consumed off the premises where it is sold (other than
25alcoholic beverages, food consisting of or infused with adult
26use cannabis, soft drinks, and food that has been prepared for

 

 

SB2394- 27 -LRB102 16502 HLH 21895 b

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

 

 

SB2394- 28 -LRB102 16502 HLH 21895 b

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

 

 

SB2394- 29 -LRB102 16502 HLH 21895 b

1includes, but is not limited to, soaps and cleaning solutions,
2shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
3lotions and screens, unless those products are available by
4prescription only, regardless of whether the products meet the
5definition of "over-the-counter-drugs". For the purposes of
6this paragraph, "over-the-counter-drug" means a drug for human
7use that contains a label that identifies the product as a drug
8as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
9label includes:
10        (A) A "Drug Facts" panel; or
11        (B) A statement of the "active ingredient(s)" with a
12    list of those ingredients contained in the compound,
13    substance or preparation.
14    Beginning on the effective date of this amendatory Act of
15the 98th General Assembly, "prescription and nonprescription
16medicines and drugs" includes medical cannabis purchased from
17a registered dispensing organization under the Compassionate
18Use of Medical Cannabis Program Act.
19    As used in this Section, "adult use cannabis" means
20cannabis subject to tax under the Cannabis Cultivation
21Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
22and does not include cannabis subject to tax under the
23Compassionate Use of Medical Cannabis Program Act.
24(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
25101-593, eff. 12-4-19.)
 

 

 

SB2394- 30 -LRB102 16502 HLH 21895 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.