Illinois General Assembly - Full Text of HB4782
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Full Text of HB4782  102nd General Assembly

HB4782 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4782

 

Introduced 1/27/2022, by Rep. Eva Dina Delgado

 

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 incentive for 100% biodiesel and biodiesel blends with more than 10% but no more than 99% biodiesel applies through June 30, 2024 (currently, December 31, 2023). Provides that, with respect to 100% biodiesel and biodiesel blends with more than 19% but no more than 99% biodiesel, the tax does not apply to proceeds of sales made on or after July 1, 2024. Effective immediately, except that provisions creating the Illinois Renewable Fuel Standards Act take effect on July 1, 2022.


LRB102 23332 HLH 32498 b

 

 

A BILL FOR

 

HB4782LRB102 23332 HLH 32498 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.
 
7    Section 5-5. Definitions.
8    "Biodiesel" means a renewable diesel fuel derived from
9biomass that is intended for use in diesel engines.
10    "Biodiesel blend" means a blend of biodiesel with
11petroleum-based diesel fuel in which the resultant product
12contains no less than 1% and no more than 99% biodiesel.
13    "Department" means the Department of Agriculture.
14    "Director" means the Director of Agriculture.
 
15    Section 5-10. Minimum content.
16    (a) Except as otherwise provided in this Section, all
17diesel fuel sold or offered for sale in Illinois for use in
18internal combustion engines must contain at least the stated
19percentage of biodiesel fuel oil by volume on and after the
20following dates:
21        (1) on and after July 1, 2021 and prior to July 1,

 

 

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

 

 

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

 

 

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1Assembly and to the chairs and minority spokespersons of the
2committees of the House of Representatives and the Senate with
3jurisdiction over agriculture policy regarding the
4implementation of the minimum content requirements in Section
55-10, including information about the price and supply of
6biodiesel fuel. The report shall include information about the
7impacts 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

 

 

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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

 

 

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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 June 30, 2024 December 31,
222023 but applies to 100% of the proceeds of sales made
23thereafter. With respect to 100% biodiesel and biodiesel
24blends with more than 19% but no more than 99% biodiesel, the
25tax imposed by this Act does not apply to proceeds of sales
26made on or after July 1, 2024.

 

 

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

 

 

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

 

 

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

 

 

HB4782- 11 -LRB102 23332 HLH 32498 b

1Compassionate Use of Medical Cannabis Program Act.
2    If the property that is purchased at retail from a
3retailer is acquired outside Illinois and used outside
4Illinois before being brought to Illinois for use here and is
5taxable under this Act, the "selling price" on which the tax is
6computed shall be reduced by an amount that represents a
7reasonable allowance for depreciation for the period of prior
8out-of-state use.
9(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
10102-4, eff. 4-27-21.)
 
11    Section 10-10. The Service Use Tax Act is amended by
12changing Section 3-10 as follows:
 
13    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
14    Sec. 3-10. Rate of tax. Unless otherwise provided in this
15Section, the tax imposed by this Act is at the rate of 6.25% of
16the selling price of tangible personal property transferred as
17an incident to the sale of service, but, for the purpose of
18computing this tax, in no event shall the selling price be less
19than the cost price of the property to the serviceman.
20    Beginning on July 1, 2000 and through December 31, 2000,
21with respect to motor fuel, as defined in Section 1.1 of the
22Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
23the Use Tax Act, the tax is imposed at the rate of 1.25%.
24    With respect to gasohol, as defined in the Use Tax Act, the

 

 

HB4782- 12 -LRB102 23332 HLH 32498 b

1tax imposed by this Act applies to (i) 70% of the selling price
2of property transferred as an incident to the sale of service
3on or after January 1, 1990, and before July 1, 2003, (ii) 80%
4of the selling price of property transferred as an incident to
5the sale of service on or after July 1, 2003 and on or before
6July 1, 2017, and (iii) 100% of the selling price thereafter.
7If, at any time, however, the tax under this Act on sales of
8gasohol, as defined in the Use Tax Act, is imposed at the rate
9of 1.25%, then the tax imposed by this Act applies to 100% of
10the proceeds of sales of gasohol made during that time.
11    With respect to majority blended ethanol fuel, as defined
12in the Use Tax Act, the tax imposed by this Act does not apply
13to the selling price of property transferred as an incident to
14the sale of service on or after July 1, 2003 and on or before
15December 31, 2023 but applies to 100% of the selling price
16thereafter.
17    With respect to biodiesel blends, as defined in the Use
18Tax Act, with no less than 1% and no more than 10% biodiesel,
19the tax imposed by this Act applies to (i) 80% of the selling
20price of property transferred as an incident to the sale of
21service on or after July 1, 2003 and on or before December 31,
222018 and (ii) 100% of the proceeds of the selling price
23thereafter. If, at any time, however, the tax under this Act on
24sales of biodiesel blends, as defined in the Use Tax Act, with
25no less than 1% and no more than 10% biodiesel is imposed at
26the rate of 1.25%, then the tax imposed by this Act applies to

 

 

HB4782- 13 -LRB102 23332 HLH 32498 b

1100% of the proceeds of sales of biodiesel blends with no less
2than 1% and no more than 10% biodiesel made during that time.
3    With respect to 100% biodiesel, as defined in the Use Tax
4Act, and biodiesel blends, as defined in the Use Tax Act, with
5more than 10% but no more than 99% biodiesel, the tax imposed
6by this Act does not apply to the proceeds of the selling price
7of property transferred as an incident to the sale of service
8on or after July 1, 2003 and on or before June 30, 2024
9December 31, 2023 but applies to 100% of the selling price
10thereafter. With respect to 100% biodiesel, as defined in the
11Use Tax Act, and biodiesel blends, as defined in the Use Tax
12Act, with more than 19% but no more than 99% biodiesel, the tax
13imposed by this Act does not apply to proceeds of sales made on
14or after July 1, 2024.
15    At the election of any registered serviceman made for each
16fiscal year, sales of service in which the aggregate annual
17cost price of tangible personal property transferred as an
18incident to the sales of service is less than 35%, or 75% in
19the case of servicemen transferring prescription drugs or
20servicemen engaged in graphic arts production, of the
21aggregate annual total gross receipts from all sales of
22service, the tax imposed by this Act shall be based on the
23serviceman's cost price of the tangible personal property
24transferred as an incident to the sale of those services.
25    The tax shall be imposed at the rate of 1% on food prepared
26for immediate consumption and transferred incident to a sale

 

 

HB4782- 14 -LRB102 23332 HLH 32498 b

1of service subject to this Act or the Service Occupation Tax
2Act by an entity licensed under the Hospital Licensing Act,
3the Nursing Home Care Act, the Assisted Living and Shared
4Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
5Specialized Mental Health Rehabilitation Act of 2013, or the
6Child Care Act of 1969, or an entity that holds a permit issued
7pursuant to the Life Care Facilities Act. 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, blood sugar testing materials,
21syringes, and needles used by human diabetics. For the
22purposes of this Section, until September 1, 2009: the term
23"soft drinks" 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

 

 

HB4782- 15 -LRB102 23332 HLH 32498 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,

 

 

HB4782- 16 -LRB102 23332 HLH 32498 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

 

 

HB4782- 17 -LRB102 23332 HLH 32498 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. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
18102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
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

 

 

HB4782- 18 -LRB102 23332 HLH 32498 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 June
330, 2024 December 31, 2023 but applies to 100% of the selling
4price thereafter. With respect to 100% biodiesel, as defined
5in the Use Tax Act, and biodiesel blends, as defined in the Use
6Tax Act, with more than 19% but no more than 99% biodiesel, the
7tax imposed by this Act does not apply to proceeds of sales
8made on or after July 1, 2024.
9    At the election of any registered serviceman made for each
10fiscal year, sales of service in which the aggregate annual
11cost price of tangible personal property transferred as an
12incident to the sales of service is less than 35%, or 75% in
13the case of servicemen transferring prescription drugs or
14servicemen engaged in graphic arts production, of the
15aggregate annual total gross receipts from all sales of
16service, the tax imposed by this Act shall be based on the
17serviceman's cost price of the tangible personal property
18transferred incident to the sale of those services.
19    The tax shall be imposed at the rate of 1% on food prepared
20for immediate consumption and transferred incident to a sale
21of service subject to this Act or the Service Occupation Tax
22Act by an entity licensed under the Hospital Licensing Act,
23the Nursing Home Care Act, the Assisted Living and Shared
24Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
25Specialized Mental Health Rehabilitation Act of 2013, or the
26Child Care Act of 1969, or an entity that holds a permit issued

 

 

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1pursuant to the Life Care Facilities Act. 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, blood sugar testing materials,
15syringes, and needles used by human diabetics. For the
16purposes of this Section, until September 1, 2009: the term
17"soft drinks" 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. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
5102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
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 June 30, 2024 December 31,
162023 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 19% but no more than 99% biodiesel, the tax
20imposed by this Act does not apply to proceeds of sales made on
21or after July 1, 2024.
22    With respect to food for human consumption that is to be
23consumed off the premises where it is sold (other than
24alcoholic beverages, food consisting of or infused with adult
25use cannabis, soft drinks, and food that has been prepared for
26immediate consumption) and prescription and nonprescription

 

 

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

 

 

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

 

 

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1shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
2lotions and screens, unless those products are available by
3prescription only, regardless of whether the products meet the
4definition of "over-the-counter-drugs". For the purposes of
5this paragraph, "over-the-counter-drug" means a drug for human
6use that contains a label that identifies the product as a drug
7as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
8label includes:
9        (A) A "Drug Facts" panel; or
10        (B) A statement of the "active ingredient(s)" with a
11    list of those ingredients contained in the compound,
12    substance or preparation.
13    Beginning on the effective date of this amendatory Act of
14the 98th General Assembly, "prescription and nonprescription
15medicines and drugs" includes medical cannabis purchased from
16a registered dispensing organization under the Compassionate
17Use of Medical Cannabis Program Act.
18    As used in this Section, "adult use cannabis" means
19cannabis subject to tax under the Cannabis Cultivation
20Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
21and does not include cannabis subject to tax under the
22Compassionate Use of Medical Cannabis Program Act.
23(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
24102-4, eff. 4-27-21.)
 
25
ARTICLE 99. EFFECTIVE DATE

 

 

 

HB4782- 30 -LRB102 23332 HLH 32498 b

1    Section 99-99. Effective date. Article 5 of this Act takes
2effect July 1, 2022. This Article and Article 10 of this Act
3take effect upon becoming law.