Illinois General Assembly - Full Text of SB0046
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Full Text of SB0046  93rd General Assembly

SB0046enr 93rd General Assembly


093_SB0046enr

 
SB46 Enrolled                        LRB093 02617 SJM 02627 b

 1        AN ACT concerning taxes.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

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

 9        (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
10        Sec.  3-10.   Rate  of tax.  Unless otherwise provided in
11    this Section, the tax imposed by this Act is at the  rate  of
12    6.25%  of  either the selling price or the fair market value,
13    if any, of the tangible  personal  property.   In  all  cases
14    where  property  functionally used or consumed is the same as
15    the property that was purchased at retail, then  the  tax  is
16    imposed  on  the selling price of the property.  In all cases
17    where property functionally used or consumed is a  by-product
18    or  waste  product  that  has  been refined, manufactured, or
19    produced from property purchased at retail, then the  tax  is
20    imposed on the lower of the fair market value, if any, of the
21    specific  property  so  used  in this State or on the selling
22    price of the property purchased at retail.  For  purposes  of
23    this  Section  "fair  market  value" means the price at which
24    property would change hands between a  willing  buyer  and  a
25    willing  seller, neither being under any compulsion to buy or
26    sell and both having reasonable  knowledge  of  the  relevant
27    facts. The fair market value shall be established by Illinois
28    sales   by   the  taxpayer  of  the  same  property  as  that
29    functionally used or consumed, or if there are no such  sales
30    by  the  taxpayer,  then  comparable  sales  or  purchases of
31    property of like kind and character in Illinois.
 
SB46 Enrolled              -2-       LRB093 02617 SJM 02627 b
 1        Beginning on July 1, 2000 and through December 31,  2000,
 2    with  respect to motor fuel, as defined in Section 1.1 of the
 3    Motor Fuel Tax Law, and gasohol, as defined in  Section  3-40
 4    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
 5        With  respect  to  gasohol,  the  tax imposed by this Act
 6    applies to (i) 70% of the proceeds of sales made on or  after
 7    January  1,  1990,  and  before July 1, 2003, (ii) 80% of the
 8    proceeds of sales made on or after July 1,  2003  and  on  or
 9    before  December  31, 2013, and (iii) to 100% of the proceeds
10    of sales made thereafter. If, at any time, however,  the  tax
11    under  this Act on sales of gasohol is imposed at the rate of
12    1.25%, then the tax imposed by this Act applies  to  100%  of
13    the proceeds of sales of gasohol made during that time.
14        With  respect  to  majority blended ethanol fuel, the tax
15    imposed by this Act does not apply to the proceeds  of  sales
16    made  on  or after July 1, 2003 and on or before December 31,
17    2013 but applies to  100%  of  the  proceeds  of  sales  made
18    thereafter.
19        With respect to biodiesel blends with no less than 1% and
20    no  more  than  10%  biodiesel,  the  tax imposed by this Act
21    applies to (i) 80% of the proceeds of sales made on or  after
22    July 1, 2003 and on or before December 31, 2013 and (ii) 100%
23    of  the  proceeds  of sales made thereafter. If, at any time,
24    however, the tax under this Act on sales of biodiesel  blends
25    with  no  less  than  1%  and  no  more than 10% biodiesel is
26    imposed at the rate of 1.25%, then the tax  imposed  by  this
27    Act  applies  to  100%  of the proceeds of sales of biodiesel
28    blends with no less than 1% and no more  than  10%  biodiesel
29    made during that time.
30        With  respect to 100% biodiesel and biodiesel blends with
31    more than 10% but no more than 99% biodiesel, the tax imposed
32    by this Act does not apply to the proceeds of sales  made  on
33    or  after July 1, 2003 and on or before December 31, 2013 but
34    applies to 100% of the proceeds of sales made thereafter.
 
SB46 Enrolled              -3-       LRB093 02617 SJM 02627 b
 1        With respect to food for human consumption that is to  be
 2    consumed  off  the  premises  where  it  is  sold (other than
 3    alcoholic beverages, soft drinks,  and  food  that  has  been
 4    prepared  for  immediate  consumption)  and  prescription and
 5    nonprescription   medicines,   drugs,   medical   appliances,
 6    modifications to a motor vehicle for the purpose of rendering
 7    it usable by a disabled person, and  insulin,  urine  testing
 8    materials, syringes, and needles used by diabetics, for human
 9    use,  the  tax is imposed at the rate of 1%. For the purposes
10    of this Section, the term "soft drinks" means  any  complete,
11    finished,    ready-to-use,   non-alcoholic   drink,   whether
12    carbonated or not, including but not limited to  soda  water,
13    cola, fruit juice, vegetable juice, carbonated water, and all
14    other  preparations commonly known as soft drinks of whatever
15    kind or description that  are  contained  in  any  closed  or
16    sealed bottle, can, carton, or container, regardless of size.
17    "Soft  drinks"  does  not include coffee, tea, non-carbonated
18    water, infant formula, milk or milk products  as  defined  in
19    the Grade A Pasteurized Milk and Milk Products Act, or drinks
20    containing 50% or more natural fruit or vegetable juice.
21        Notwithstanding  any  other provisions of this Act, "food
22    for human consumption that is to be consumed off the premises
23    where it is sold" includes all food sold  through  a  vending
24    machine,  except  soft  drinks  and  food  products  that are
25    dispensed hot from  a  vending  machine,  regardless  of  the
26    location of the vending machine.
27        If  the  property  that  is  purchased  at  retail from a
28    retailer  is  acquired  outside  Illinois  and  used  outside
29    Illinois before being brought to Illinois for use here and is
30    taxable under this Act, the "selling price" on which the  tax
31    is  computed  shall be reduced by an amount that represents a
32    reasonable allowance for depreciation for the period of prior
33    out-of-state use.
34    (Source: P.A. 90-605, eff.  6-30-98;  90-606,  eff.  6-30-98;
 
SB46 Enrolled              -4-       LRB093 02617 SJM 02627 b
 1    91-51, eff. 6-30-99; 91-872, eff. 7-1-00.)

 2        (35 ILCS 105/3-41 new)
 3        Sec.  3-41.  Biodiesel.  "Biodiesel"  means  a  renewable
 4    diesel  fuel derived from biomass that is intended for use in
 5    diesel engines.

 6        (35 ILCS 105/3-42 new)
 7        Sec. 3-42.  Biodiesel blend. "Biodiesel  blend"  means  a
 8    blend  of biodiesel with petroleum-based diesel fuel in which
 9    the resultant product contains no less than 1%  and  no  more
10    than 99% biodiesel.

11        (35 ILCS 105/3-43 new)
12        Sec.  3-43.  Biomass.  "Biomass" means non-fossil organic
13    materials that have an  intrinsic  chemical  energy  content.
14    "Biomass" includes, but is not limited to, soybean oil, other
15    vegetable oils, and ethanol.

16        (35 ILCS 105/3-44 new)
17        Sec.  3-44.  Majority  blended  ethanol  fuel.  "Majority
18    blended ethanol fuel" means motor fuel that contains not less
19    than 70% and no more than 90% denatured ethanol and  no  less
20    than 10% and no more than 30% gasoline.

21        (35 ILCS 105/3-44.5 new)
22        Sec.   3-44.5.  Diesel  fuel.  "Diesel  fuel"  means  any
23    product intended for use or offered for sale as  a  fuel  for
24    engines  in  which  the  fuel is injected into the combustion
25    chamber and ignited by pressure without electric spark.

26        Section 10.  If and only if both  Senate  Bill  1212  and
27    House  Bill  46 of the 93rd General Assembly become law, then
28    the Service Use Tax Act is amended by changing  Section  3-10
 
SB46 Enrolled              -5-       LRB093 02617 SJM 02627 b
 1    as follows:

 2        (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
 3        Sec.  3-10.   Rate  of tax.  Unless otherwise provided in
 4    this Section, the tax imposed by this Act is at the  rate  of
 5    6.25%  of  the  selling  price  of tangible personal property
 6    transferred as an incident to the sale of service,  but,  for
 7    the  purpose  of  computing  this  tax, in no event shall the
 8    selling price be less than the cost price of the property  to
 9    the serviceman.
10        Beginning  on July 1, 2000 and through December 31, 2000,
11    with respect to motor fuel, as defined in Section 1.1 of  the
12    Motor  Fuel  Tax Law, and gasohol, as defined in Section 3-40
13    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
14        With respect to gasohol, as defined in the Use  Tax  Act,
15    the tax imposed by this Act applies to (i) 70% of the selling
16    price  of  property transferred as an incident to the sale of
17    service on or after January 1, 1990, and before July 1, 2003,
18    (ii) 80% of the selling price of property transferred  as  an
19    incident  to the sale of service on or after July 1, 2003 and
20    on or before December 31, 2013, and  (iii)  to  100%  of  the
21    selling  price  thereafter. If, at any time, however, the tax
22    under this Act on sales of gasohol, as defined in the Use Tax
23    Act, is imposed at the rate of 1.25%, then the tax imposed by
24    this Act applies to 100% of the proceeds of sales of  gasohol
25    made during that time.
26        With respect to majority blended ethanol fuel, as defined
27    in  the  Use  Tax  Act,  the tax imposed by this Act does not
28    apply to the selling price  of  property  transferred  as  an
29    incident  to the sale of service on or after July 1, 2003 and
30    on or before December 31, 2013 but applies  to  100%  of  the
31    selling price thereafter.
32        With  respect  to biodiesel blends, as defined in the Use
33    Tax Act, with no less than 1% and no more than 10% biodiesel,
 
SB46 Enrolled              -6-       LRB093 02617 SJM 02627 b
 1    the tax imposed by this Act applies to (i) 80% of the selling
 2    price of property transferred as an incident to the  sale  of
 3    service  on  or  after July 1, 2003 and on or before December
 4    31, 2013 and (ii) 100% of the proceeds of the  selling  price
 5    thereafter.  If, at any time, however, the tax under this Act
 6    on sales of biodiesel blends, as defined in the Use Tax  Act,
 7    with  no  less  than  1%  and  no  more than 10% biodiesel is
 8    imposed at the rate of 1.25%, then the tax  imposed  by  this
 9    Act  applies  to  100%  of the proceeds of sales of biodiesel
10    blends with no less than 1% and no more  than  10%  biodiesel
11    made during that time.
12        With respect to 100% biodiesel, as defined in the Use Tax
13    Act,  and  biodiesel  blends,  as defined in the Use Tax Act,
14    with more than 10% but no more than 99%  biodiesel,  the  tax
15    imposed  by  this  Act  does not apply to the proceeds of the
16    selling price of property transferred as an incident  to  the
17    sale  of  service  on  or after July 1, 2003 and on or before
18    December 31, 2013 but applies to 100% of  the  selling  price
19    thereafter.
20        At  the  election  of  any registered serviceman made for
21    each fiscal year, sales of service  in  which  the  aggregate
22    annual  cost  price of tangible personal property transferred
23    as an incident to the sales of service is less than  35%,  or
24    75% in the case of servicemen transferring prescription drugs
25    or  servicemen  engaged  in  graphic  arts production, of the
26    aggregate annual total  gross  receipts  from  all  sales  of
27    service,  the  tax  imposed by this Act shall be based on the
28    serviceman's cost price of  the  tangible  personal  property
29    transferred as an incident to the sale of those services.
30        The  tax  shall  be  imposed  at  the  rate of 1% on food
31    prepared for immediate consumption and  transferred  incident
32    to  a  sale  of  service  subject  to this Act or the Service
33    Occupation Tax Act by an entity licensed under  the  Hospital
34    Licensing  Act,  the Nursing Home Care Act, or the Child Care
 
SB46 Enrolled              -7-       LRB093 02617 SJM 02627 b
 1    Act of 1969.  The tax shall also be imposed at the rate of 1%
 2    on food for human consumption that is to be consumed off  the
 3    premises  where  it  is sold (other than alcoholic beverages,
 4    soft drinks, and food that has been  prepared  for  immediate
 5    consumption  and is not otherwise included in this paragraph)
 6    and  prescription  and  nonprescription   medicines,   drugs,
 7    medical  appliances, modifications to a motor vehicle for the
 8    purpose of rendering it usable  by  a  disabled  person,  and
 9    insulin,  urine testing materials, syringes, and needles used
10    by diabetics,  for  human  use.  For  the  purposes  of  this
11    Section, the term "soft drinks" means any complete, finished,
12    ready-to-use, non-alcoholic drink, whether carbonated or not,
13    including  but  not limited to soda water, cola, fruit juice,
14    vegetable juice, carbonated water, and all other preparations
15    commonly known as soft drinks of whatever kind or description
16    that are contained in  any  closed  or  sealed  bottle,  can,
17    carton, or container, regardless of size.  "Soft drinks" does
18    not   include   coffee,  tea,  non-carbonated  water,  infant
19    formula, milk or milk products as  defined  in  the  Grade  A
20    Pasteurized  Milk and Milk Products Act, or drinks containing
21    50% or more natural fruit or vegetable juice.
22        Notwithstanding any other provisions of this  Act,  "food
23    for human consumption that is to be consumed off the premises
24    where  it  is  sold" includes all food sold through a vending
25    machine, except  soft  drinks  and  food  products  that  are
26    dispensed  hot  from  a  vending  machine,  regardless of the
27    location of the vending machine.
28        If the property that is acquired  from  a  serviceman  is
29    acquired  outside  Illinois  and used outside Illinois before
30    being brought to Illinois for use here and is  taxable  under
31    this  Act,  the  "selling price" on which the tax is computed
32    shall be reduced by an amount that  represents  a  reasonable
33    allowance   for   depreciation   for   the  period  of  prior
34    out-of-state use.
 
SB46 Enrolled              -8-       LRB093 02617 SJM 02627 b
 1    (Source: P.A. 90-605, eff.  6-30-98;  90-606,  eff.  6-30-98;
 2    91-51,  eff.  6-30-99;  91-541,  eff.  8-13-99;  91-872, eff.
 3    7-1-00.)

 4        Section 15.  If and only if both  Senate  Bill  1212  and
 5    House  Bill  46 of the 93rd General Assembly become law, then
 6    the Service Occupation Tax Act is amended by changing Section
 7    3-10 as follows:

 8        (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
 9        Sec. 3-10. Rate of tax.   Unless  otherwise  provided  in
10    this  Section,  the tax imposed by this Act is at the rate of
11    6.25% of the "selling price", as defined in Section 2 of  the
12    Service  Use Tax Act, of the tangible personal property.  For
13    the purpose of computing this tax,  in  no  event  shall  the
14    "selling price" be less than the cost price to the serviceman
15    of  the  tangible personal property transferred.  The selling
16    price of each item of tangible personal property  transferred
17    as  an  incident  of  a  sale  of  service  may be shown as a
18    distinct and separate item on the serviceman's billing to the
19    service customer. If the selling price is not so  shown,  the
20    selling  price of the tangible personal property is deemed to
21    be 50% of the serviceman's  entire  billing  to  the  service
22    customer.   When,  however, a serviceman contracts to design,
23    develop, and produce special order  machinery  or  equipment,
24    the   tax   imposed  by  this  Act  shall  be  based  on  the
25    serviceman's cost price of  the  tangible  personal  property
26    transferred incident to the completion of the contract.
27        Beginning  on July 1, 2000 and through December 31, 2000,
28    with respect to motor fuel, as defined in Section 1.1 of  the
29    Motor  Fuel  Tax Law, and gasohol, as defined in Section 3-40
30    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
31        With respect to gasohol, as defined in the Use  Tax  Act,
32    the  tax  imposed  by  this Act shall apply to (i) 70% of the
 
SB46 Enrolled              -9-       LRB093 02617 SJM 02627 b
 1    cost price of property transferred as an incident to the sale
 2    of service on or after January 1, 1990, and  before  July  1,
 3    2003,  (ii)  80% of the selling price of property transferred
 4    as an incident to the sale of service on  or  after  July  1,
 5    2003 and on or before December 31, 2013, and (iii) to 100% of
 6    the  cost price thereafter. If, at any time, however, the tax
 7    under this Act on sales of gasohol, as defined in the Use Tax
 8    Act, is imposed at the rate of 1.25%, then the tax imposed by
 9    this Act applies to 100% of the proceeds of sales of  gasohol
10    made during that time.
11        With respect to majority blended ethanol fuel, as defined
12    in  the  Use  Tax  Act,  the tax imposed by this Act does not
13    apply to the selling price  of  property  transferred  as  an
14    incident  to the sale of service on or after July 1, 2003 and
15    on or before December 31, 2013 but applies  to  100%  of  the
16    selling price thereafter.
17        With  respect  to biodiesel blends, as defined in the Use
18    Tax Act, with no less than 1% and no more than 10% biodiesel,
19    the tax imposed by this Act applies to (i) 80% of the selling
20    price of property transferred as an incident to the  sale  of
21    service  on  or  after July 1, 2003 and on or before December
22    31, 2013 and (ii) 100% of the proceeds of the  selling  price
23    thereafter.  If, at any time, however, the tax under this Act
24    on sales of biodiesel blends, as defined in the Use Tax  Act,
25    with  no  less  than  1%  and  no  more than 10% biodiesel is
26    imposed at the rate of 1.25%, then the tax  imposed  by  this
27    Act  applies  to  100%  of the proceeds of sales of biodiesel
28    blends with no less than 1% and no more  than  10%  biodiesel
29    made during that time.
30        With respect to 100% biodiesel, as defined in the Use Tax
31    Act,  and  biodiesel  blends,  as defined in the Use Tax Act,
32    with more than 10% but no more than 99%  biodiesel  material,
33    the tax imposed by this Act does not apply to the proceeds of
34    the  selling  price of property transferred as an incident to
 
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 1    the sale of service on or after July 1, 2003 and on or before
 2    December 31, 2013 but applies to 100% of  the  selling  price
 3    thereafter.
 4        At  the  election  of  any registered serviceman made for
 5    each fiscal year, sales of service  in  which  the  aggregate
 6    annual  cost  price of tangible personal property transferred
 7    as an incident to the sales of service is less than  35%,  or
 8    75% in the case of servicemen transferring prescription drugs
 9    or  servicemen  engaged  in  graphic  arts production, of the
10    aggregate annual total  gross  receipts  from  all  sales  of
11    service,  the  tax  imposed by this Act shall be based on the
12    serviceman's cost price of  the  tangible  personal  property
13    transferred incident to the sale of those services.
14        The  tax  shall  be  imposed  at  the  rate of 1% on food
15    prepared for immediate consumption and  transferred  incident
16    to  a  sale  of  service  subject  to this Act or the Service
17    Occupation Tax Act by an entity licensed under  the  Hospital
18    Licensing  Act,  the Nursing Home Care Act, or the Child Care
19    Act of 1969.  The tax shall also be imposed at the rate of 1%
20    on food for human consumption that is to be consumed off  the
21    premises  where  it  is sold (other than alcoholic beverages,
22    soft drinks, and food that has been  prepared  for  immediate
23    consumption  and is not otherwise included in this paragraph)
24    and  prescription  and  nonprescription   medicines,   drugs,
25    medical  appliances, modifications to a motor vehicle for the
26    purpose of rendering it usable  by  a  disabled  person,  and
27    insulin,  urine testing materials, syringes, and needles used
28    by diabetics, for  human  use.   For  the  purposes  of  this
29    Section, the term "soft drinks" means any complete, finished,
30    ready-to-use, non-alcoholic drink, whether carbonated or not,
31    including  but  not limited to soda water, cola, fruit juice,
32    vegetable juice, carbonated water, and all other preparations
33    commonly known as soft drinks of whatever kind or description
34    that are contained in any closed or sealed  can,  carton,  or
 
SB46 Enrolled              -11-      LRB093 02617 SJM 02627 b
 1    container,  regardless  of  size.   "Soft  drinks"  does  not
 2    include  coffee,  tea,  non-carbonated water, infant formula,
 3    milk or milk products as defined in the Grade  A  Pasteurized
 4    Milk  and Milk Products Act, or drinks containing 50% or more
 5    natural fruit or vegetable juice.
 6        Notwithstanding any other provisions of this  Act,  "food
 7    for human consumption that is to be consumed off the premises
 8    where  it  is  sold" includes all food sold through a vending
 9    machine, except  soft  drinks  and  food  products  that  are
10    dispensed  hot  from  a  vending  machine,  regardless of the
11    location of the vending machine.
12    (Source: P.A. 90-605, eff.  6-30-98;  90-606,  eff.  6-30-98;
13    91-51, 6-30-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00.)

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

18        (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
19        Sec. 2-10. Rate of tax.   Unless  otherwise  provided  in
20    this  Section,  the tax imposed by this Act is at the rate of
21    6.25% of gross  receipts  from  sales  of  tangible  personal
22    property made in the course of business.
23        Beginning  on July 1, 2000 and through December 31, 2000,
24    with respect to motor fuel, as defined in Section 1.1 of  the
25    Motor  Fuel  Tax Law, and gasohol, as defined in Section 3-40
26    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
27        Within  14  days  after  the  effective  date   of   this
28    amendatory Act of the 91st General Assembly, each retailer of
29    motor fuel and gasohol shall cause the following notice to be
30    posted   in  a  prominently  visible  place  on  each  retail
31    dispensing device that is used  to  dispense  motor  fuel  or
32    gasohol  in  the State of Illinois:  "As of July 1, 2000, the
 
SB46 Enrolled              -12-      LRB093 02617 SJM 02627 b
 1    State of Illinois has eliminated the State's share  of  sales
 2    tax  on motor fuel and gasohol through December 31, 2000. The
 3    price on this pump should  reflect  the  elimination  of  the
 4    tax."   The  notice  shall be printed in bold print on a sign
 5    that is no smaller than 4 inches by 8 inches.  The sign shall
 6    be clearly visible to customers.  Any retailer who  fails  to
 7    post or maintain a required sign through December 31, 2000 is
 8    guilty  of  a  petty offense for which the fine shall be $500
 9    per day per each retail premises where a violation occurs.
10        With respect to gasohol, as defined in the Use  Tax  Act,
11    the  tax  imposed  by  this  Act  applies  to  (i) 70% of the
12    proceeds of sales made on  or  after  January  1,  1990,  and
13    before  July  1, 2003, (ii) 80% of the proceeds of sales made
14    on or after July 1, 2003 and on or before December 31,  2013,
15    and  (iii)  to 100% of the proceeds of sales made thereafter.
16    If, at any time, however, the tax under this Act on sales  of
17    gasohol,  as  defined  in  the Use Tax Act, is imposed at the
18    rate of 1.25%, then the tax imposed by this  Act  applies  to
19    100%  of  the  proceeds  of sales of gasohol made during that
20    time.
21        With respect to majority blended ethanol fuel, as defined
22    in the Use Tax Act, the tax imposed  by  this  Act  does  not
23    apply  to the proceeds of sales made on or after July 1, 2003
24    and on or before December 31, 2013 but applies to 100% of the
25    proceeds of sales made thereafter.
26        With respect to biodiesel blends, as defined in  the  Use
27    Tax Act, with no less than 1% and no more than 10% biodiesel,
28    the  tax  imposed  by  this  Act  applies  to  (i) 80% of the
29    proceeds of sales made on or after July 1,  2003  and  on  or
30    before  December  31,  2013  and (ii) 100% of the proceeds of
31    sales made thereafter. If, at  any  time,  however,  the  tax
32    under  this  Act  on sales of biodiesel blends, as defined in
33    the Use Tax Act, with no less than 1% and no  more  than  10%
34    biodiesel  is  imposed  at  the  rate  of 1.25%, then the tax
 
SB46 Enrolled              -13-      LRB093 02617 SJM 02627 b
 1    imposed by this Act applies to 100% of the proceeds of  sales
 2    of biodiesel blends with no less than 1% and no more than 10%
 3    biodiesel  made during that time.
 4        With respect to 100% biodiesel, as defined in the Use Tax
 5    Act,  and  biodiesel  blends,  as defined in the Use Tax Act,
 6    with more than 10% but no more than 99%  biodiesel,  the  tax
 7    imposed  by  this Act does not apply to the proceeds of sales
 8    made on or after July 1, 2003 and on or before  December  31,
 9    2013  but  applies  to  100%  of  the  proceeds of sales made
10    thereafter.
11        With respect to food for human consumption that is to  be
12    consumed  off  the  premises  where  it  is  sold (other than
13    alcoholic beverages, soft drinks,  and  food  that  has  been
14    prepared  for  immediate  consumption)  and  prescription and
15    nonprescription   medicines,   drugs,   medical   appliances,
16    modifications to a motor vehicle for the purpose of rendering
17    it usable by a disabled person, and  insulin,  urine  testing
18    materials, syringes, and needles used by diabetics, for human
19    use,  the  tax is imposed at the rate of 1%. For the purposes
20    of this Section, the term "soft drinks" means  any  complete,
21    finished,    ready-to-use,   non-alcoholic   drink,   whether
22    carbonated or not, including but not limited to  soda  water,
23    cola, fruit juice, vegetable juice, carbonated water, and all
24    other  preparations commonly known as soft drinks of whatever
25    kind or description that  are  contained  in  any  closed  or
26    sealed bottle, can, carton, or container, regardless of size.
27    "Soft  drinks"  does  not include coffee, tea, non-carbonated
28    water, infant formula, milk or milk products  as  defined  in
29    the Grade A Pasteurized Milk and Milk Products Act, or drinks
30    containing 50% or more natural fruit or vegetable juice.
31        Notwithstanding  any  other provisions of this Act, "food
32    for human consumption that is to be consumed off the premises
33    where it is sold" includes all food sold  through  a  vending
34    machine,  except  soft  drinks  and  food  products  that are
 
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 1    dispensed hot from  a  vending  machine,  regardless  of  the
 2    location of the vending machine.
 3    (Source:  P.A.  90-605,  eff.  6-30-98; 90-606, eff. 6-30-98;
 4    91-51, eff. 6-30-99; 91-872, eff. 7-1-00.)

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

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

 2        Section 99.  Effective date.  This Act takes effect  upon
 3    becoming law.