Full Text of HB0258 97th General Assembly
HB0258 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB0258 Introduced 01/25/11, by Rep. Jack D. Franks SYNOPSIS AS INTRODUCED: |
|
30 ILCS 105/6z-18 | from Ch. 127, par. 142z-18 |
30 ILCS 105/6z-20 | from Ch. 127, par. 142z-20 |
35 ILCS 105/3-10 | |
35 ILCS 120/2-10 | |
|
Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that the sales tax holiday on school supplies created by Public Act 96-1012 applies from August 6th through August 15th of each year beginning in 2010. Amends the State Finance Act to make conforming changes. Effective immediately.
|
| |
| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
|
| | | HB0258 | | LRB097 06115 HLH 46188 b |
|
| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The State Finance Act is amended by changing | 5 | | Sections 6z-18 and 6z-20 as follows:
| 6 | | (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
| 7 | | Sec. 6z-18.
A portion of the money paid into the Local | 8 | | Government Tax
Fund from sales of food for human consumption | 9 | | which is to be consumed off
the premises where it is sold | 10 | | (other than alcoholic beverages, soft drinks
and food which has | 11 | | been prepared for immediate consumption) and
prescription and | 12 | | nonprescription medicines, drugs, medical appliances and
| 13 | | insulin, urine testing materials, syringes and needles used by | 14 | | diabetics,
which occurred in municipalities, shall be | 15 | | distributed to each municipality
based upon the sales which | 16 | | occurred in that municipality. The remainder
shall be | 17 | | distributed to each county based upon the sales which occurred | 18 | | in
the unincorporated area of that county.
| 19 | | A portion of the money paid into the Local Government Tax | 20 | | Fund from the
6.25% general use tax rate on the selling price | 21 | | of tangible personal
property which is purchased outside | 22 | | Illinois at retail from a retailer and
which is titled or | 23 | | registered by any agency of this State's government
shall be |
| | | HB0258 | - 2 - | LRB097 06115 HLH 46188 b |
|
| 1 | | distributed to municipalities as provided in this paragraph. | 2 | | Each
municipality shall receive the amount attributable to | 3 | | sales for which
Illinois addresses for titling or registration | 4 | | purposes are given as being
in such municipality. The remainder | 5 | | of the money paid into the Local
Government Tax Fund from such | 6 | | sales shall be distributed to counties. Each
county shall | 7 | | receive the amount attributable to sales for which Illinois
| 8 | | addresses for titling or registration purposes are given as | 9 | | being located
in the unincorporated area of such county.
| 10 | | A portion of the money paid into the Local Government Tax | 11 | | Fund from the
6.25% general rate (and, beginning July 1, 2000 | 12 | | and through December 31,
2000, the 1.25% rate on motor fuel and | 13 | | gasohol, and from August 6th through August 15th of each year | 14 | | beginning in 2010 beginning on August 6, 2010 through August | 15 | | 15, 2010 , the 1.25% rate on sales tax holiday items) on sales
| 16 | | subject to taxation under the Retailers'
Occupation Tax Act and | 17 | | the Service Occupation Tax Act, which occurred in
| 18 | | municipalities, shall be distributed to each municipality, | 19 | | based upon the
sales which occurred in that municipality. The | 20 | | remainder shall be
distributed to each county, based upon the | 21 | | sales which occurred in the
unincorporated area of such county.
| 22 | | For the purpose of determining allocation to the local | 23 | | government unit, a
retail sale by a producer of coal or other | 24 | | mineral mined in Illinois is a sale
at retail at the place | 25 | | where the coal or other mineral mined in Illinois is
extracted | 26 | | from the earth. This paragraph does not apply to coal or other
|
| | | HB0258 | - 3 - | LRB097 06115 HLH 46188 b |
|
| 1 | | mineral when it is delivered or shipped by the seller to the | 2 | | purchaser at a
point outside Illinois so that the sale is | 3 | | exempt under the United States
Constitution as a sale in | 4 | | interstate or foreign commerce.
| 5 | | Whenever the Department determines that a refund of money | 6 | | paid into
the Local Government Tax Fund should be made to a | 7 | | claimant instead of
issuing a credit memorandum, the Department | 8 | | shall notify the State
Comptroller, who shall cause the order | 9 | | to be drawn for the amount
specified, and to the person named, | 10 | | in such notification from the
Department. Such refund shall be | 11 | | paid by the State Treasurer out of the
Local Government Tax | 12 | | Fund.
| 13 | | As soon as possible after the first day of each month, | 14 | | beginning January 1, 2011, upon certification of the Department | 15 | | of Revenue, the Comptroller shall order transferred, and the | 16 | | Treasurer shall transfer, to the STAR Bonds Revenue Fund the | 17 | | local sales tax increment, as defined in the Innovation | 18 | | Development and Economy Act, collected during the second | 19 | | preceding calendar month for sales within a STAR bond district | 20 | | and deposited into the Local Government Tax Fund, less 3% of | 21 | | that amount, which shall be transferred into the Tax Compliance | 22 | | and Administration Fund and shall be used by the Department, | 23 | | subject to appropriation, to cover the costs of the Department | 24 | | in administering the Innovation Development and Economy Act. | 25 | | After the monthly transfer to the STAR Bonds Revenue Fund, | 26 | | on or before the 25th day of each calendar month, the |
| | | HB0258 | - 4 - | LRB097 06115 HLH 46188 b |
|
| 1 | | Department shall
prepare and certify to the Comptroller the | 2 | | disbursement of stated sums of
money to named municipalities | 3 | | and counties, the municipalities and counties
to be those | 4 | | entitled to distribution of taxes or penalties paid to the
| 5 | | Department during the second preceding calendar month. The | 6 | | amount to be
paid to each municipality or county shall be the | 7 | | amount (not including
credit memoranda) collected during the | 8 | | second preceding calendar month by
the Department and paid into | 9 | | the Local Government Tax Fund, plus an amount
the Department | 10 | | determines is necessary to offset any amounts which were
| 11 | | erroneously paid to a different taxing body, and not including | 12 | | an amount
equal to the amount of refunds made during the second | 13 | | preceding calendar
month by the Department, and not including | 14 | | any amount which the Department
determines is necessary to | 15 | | offset any amounts which are payable to a
different taxing body | 16 | | but were erroneously paid to the municipality or
county, and | 17 | | not including any amounts that are transferred to the STAR | 18 | | Bonds Revenue Fund. Within 10 days after receipt, by the | 19 | | Comptroller, of the
disbursement certification to the | 20 | | municipalities and counties, provided for
in this Section to be | 21 | | given to the Comptroller by the Department, the
Comptroller | 22 | | shall cause the orders to be drawn for the respective amounts
| 23 | | in accordance with the directions contained in such | 24 | | certification.
| 25 | | When certifying the amount of monthly disbursement to a | 26 | | municipality or
county under this Section, the Department shall |
| | | HB0258 | - 5 - | LRB097 06115 HLH 46188 b |
|
| 1 | | increase or decrease that
amount by an amount necessary to | 2 | | offset any misallocation of previous
disbursements. The offset | 3 | | amount shall be the amount erroneously disbursed
within the 6 | 4 | | months preceding the time a misallocation is discovered.
| 5 | | The provisions directing the distributions from the | 6 | | special fund in
the State Treasury provided for in this Section | 7 | | shall constitute an
irrevocable and continuing appropriation | 8 | | of all amounts as provided herein.
The State Treasurer and | 9 | | State Comptroller are hereby authorized to make
distributions | 10 | | as provided in this Section.
| 11 | | In construing any development, redevelopment, annexation, | 12 | | preannexation
or other lawful agreement in effect prior to | 13 | | September 1, 1990, which
describes or refers to receipts from a | 14 | | county or municipal retailers'
occupation tax, use tax or | 15 | | service occupation tax which now cannot be
imposed, such | 16 | | description or reference shall be deemed to include the
| 17 | | replacement revenue for such abolished taxes, distributed from | 18 | | the Local
Government Tax Fund.
| 19 | | (Source: P.A. 96-939, eff. 6-24-10; 96-1012, eff. 7-7-10; | 20 | | revised 7-22-10.)
| 21 | | (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
| 22 | | Sec. 6z-20.
Of the money received from the 6.25% general | 23 | | rate (and,
beginning July 1, 2000 and through December 31, | 24 | | 2000, the
1.25% rate on motor fuel and gasohol, and from August | 25 | | 6th through August 15th of each year beginning in 2010 |
| | | HB0258 | - 6 - | LRB097 06115 HLH 46188 b |
|
| 1 | | beginning on August 6, 2010 through August 15, 2010 , the 1.25% | 2 | | rate on sales tax holiday items) on sales
subject to taxation | 3 | | under the Retailers' Occupation Tax Act and Service
Occupation | 4 | | Tax Act and paid into the County and Mass Transit District | 5 | | Fund,
distribution to the Regional Transportation Authority | 6 | | tax fund, created
pursuant to Section 4.03 of the Regional | 7 | | Transportation Authority Act, for
deposit therein shall be made | 8 | | based upon the retail sales occurring in a
county having more | 9 | | than 3,000,000 inhabitants. The remainder shall be
distributed | 10 | | to each county having 3,000,000 or fewer inhabitants based upon
| 11 | | the retail sales occurring in each such county.
| 12 | | For the purpose of determining allocation to the local | 13 | | government unit, a
retail sale by a producer of coal or other | 14 | | mineral mined in Illinois is a sale
at retail at the place | 15 | | where the coal or other mineral mined in Illinois is
extracted | 16 | | from the earth. This paragraph does not apply to coal or other
| 17 | | mineral when it is delivered or shipped by the seller to the | 18 | | purchaser at a
point outside Illinois so that the sale is | 19 | | exempt under the United States
Constitution as a sale in | 20 | | interstate or foreign commerce.
| 21 | | Of the money received from the 6.25% general use tax rate | 22 | | on tangible
personal property which is purchased outside | 23 | | Illinois at retail from a
retailer and which is titled or | 24 | | registered by any agency of this State's
government and paid | 25 | | into the County and Mass Transit District Fund, the
amount for | 26 | | which Illinois addresses for titling or registration purposes
|
| | | HB0258 | - 7 - | LRB097 06115 HLH 46188 b |
|
| 1 | | are given as being in each county having more than 3,000,000 | 2 | | inhabitants
shall be distributed into the Regional | 3 | | Transportation Authority tax fund,
created pursuant to Section | 4 | | 4.03 of the Regional Transportation Authority
Act. The | 5 | | remainder of the money paid from such sales shall be | 6 | | distributed
to each county based on sales for which Illinois | 7 | | addresses for titling or
registration purposes are given as | 8 | | being located in the county. Any money
paid into the Regional | 9 | | Transportation Authority Occupation and Use Tax
Replacement | 10 | | Fund from the County and Mass Transit District Fund prior to
| 11 | | January 14, 1991, which has not been paid to the Authority | 12 | | prior to that
date, shall be transferred to the Regional | 13 | | Transportation Authority tax fund.
| 14 | | Whenever the Department determines that a refund of money | 15 | | paid into
the County and Mass Transit District Fund should be | 16 | | made to a claimant
instead of issuing a credit memorandum, the | 17 | | Department shall notify the
State Comptroller, who shall cause | 18 | | the order to be drawn for the amount
specified, and to the | 19 | | person named, in such notification from the
Department. Such | 20 | | refund shall be paid by the State Treasurer out of the
County | 21 | | and Mass Transit District Fund.
| 22 | | As soon as possible after the first day of each month, | 23 | | beginning January 1, 2011, upon certification of the Department | 24 | | of Revenue, the Comptroller shall order transferred, and the | 25 | | Treasurer shall transfer, to the STAR Bonds Revenue Fund the | 26 | | local sales tax increment, as defined in the Innovation |
| | | HB0258 | - 8 - | LRB097 06115 HLH 46188 b |
|
| 1 | | Development and Economy Act, collected during the second | 2 | | preceding calendar month for sales within a STAR bond district | 3 | | and deposited into the County and Mass Transit District Fund, | 4 | | less 3% of that amount, which shall be transferred into the Tax | 5 | | Compliance and Administration Fund and shall be used by the | 6 | | Department, subject to appropriation, to cover the costs of the | 7 | | Department in administering the Innovation Development and | 8 | | Economy Act. | 9 | | After the monthly transfer to the STAR Bonds Revenue Fund, | 10 | | on or before the 25th day of each calendar month, the | 11 | | Department shall
prepare and certify to the Comptroller the | 12 | | disbursement of stated sums of
money to the Regional | 13 | | Transportation Authority and to named counties, the
counties to | 14 | | be those entitled to distribution, as hereinabove provided, of
| 15 | | taxes or penalties paid to the Department during the second | 16 | | preceding
calendar month. The amount to be paid to the Regional | 17 | | Transportation
Authority and each county having 3,000,000 or | 18 | | fewer inhabitants shall be
the amount (not including credit | 19 | | memoranda) collected during the second
preceding calendar | 20 | | month by the Department and paid into the County and
Mass | 21 | | Transit District Fund, plus an amount the Department determines | 22 | | is
necessary to offset any amounts which were erroneously paid | 23 | | to a different
taxing body, and not including an amount equal | 24 | | to the amount of refunds
made during the second preceding | 25 | | calendar month by the Department, and not
including any amount | 26 | | which the Department determines is necessary to offset
any |
| | | HB0258 | - 9 - | LRB097 06115 HLH 46188 b |
|
| 1 | | amounts which were payable to a different taxing body but were
| 2 | | erroneously paid to the Regional Transportation Authority or | 3 | | county, and not including any amounts that are transferred to | 4 | | the STAR Bonds Revenue Fund.
Within 10 days after receipt, by | 5 | | the Comptroller, of the disbursement
certification to the | 6 | | Regional Transportation Authority and counties,
provided for | 7 | | in this Section to be given to the Comptroller by the
| 8 | | Department, the Comptroller shall cause the orders to be drawn | 9 | | for the
respective amounts in accordance with the directions | 10 | | contained in such
certification.
| 11 | | When certifying the amount of a monthly disbursement to the | 12 | | Regional
Transportation Authority or to a county under this | 13 | | Section, the Department
shall increase or decrease that amount | 14 | | by an amount necessary to offset any
misallocation of previous | 15 | | disbursements. The offset amount shall be the
amount | 16 | | erroneously disbursed within the 6 months preceding the time a
| 17 | | misallocation is discovered.
| 18 | | The provisions directing the distributions from the | 19 | | special fund in
the State Treasury provided for in this Section | 20 | | and from the Regional
Transportation Authority tax fund created | 21 | | by Section 4.03 of the Regional
Transportation Authority Act | 22 | | shall constitute an irrevocable and continuing
appropriation | 23 | | of all amounts as provided herein. The State Treasurer and
| 24 | | State Comptroller are hereby authorized to make distributions | 25 | | as provided
in this Section.
| 26 | | In construing any development, redevelopment, annexation, |
| | | HB0258 | - 10 - | LRB097 06115 HLH 46188 b |
|
| 1 | | preannexation
or other lawful agreement in effect prior to | 2 | | September 1, 1990, which
describes or refers to receipts from a | 3 | | county or municipal retailers'
occupation tax, use tax or | 4 | | service occupation tax which now cannot be
imposed, such | 5 | | description or reference shall be deemed to include the
| 6 | | replacement revenue for such abolished taxes, distributed from | 7 | | the County
and Mass Transit District Fund or Local Government | 8 | | Distributive Fund, as
the case may be.
| 9 | | (Source: P.A. 96-939, eff. 6-24-10; 96-1012, eff. 7-7-10; | 10 | | revised 7-22-10.)
| 11 | | Section 10. The Use Tax Act is amended by changing Section | 12 | | 3-10 as follows:
| 13 | | (35 ILCS 105/3-10)
| 14 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this | 15 | | Section, the tax
imposed by this Act is at the rate of 6.25% of | 16 | | either the selling price or the
fair market value, if any, of | 17 | | the tangible personal property. In all cases
where property | 18 | | functionally used or consumed is the same as the property that
| 19 | | was purchased at retail, then the tax is imposed on the selling | 20 | | price of the
property. In all cases where property functionally | 21 | | used or consumed is a
by-product or waste product that has been | 22 | | refined, manufactured, or produced
from property purchased at | 23 | | retail, then the tax is imposed on the lower of the
fair market | 24 | | value, if any, of the specific property so used in this State |
| | | HB0258 | - 11 - | LRB097 06115 HLH 46188 b |
|
| 1 | | or on
the selling price of the property purchased at retail. | 2 | | For purposes of this
Section "fair market value" means the | 3 | | price at which property would change
hands between a willing | 4 | | buyer and a willing seller, neither being under any
compulsion | 5 | | to buy or sell and both having reasonable knowledge of the
| 6 | | relevant facts. The fair market value shall be established by | 7 | | Illinois sales by
the taxpayer of the same property as that | 8 | | functionally used or consumed, or if
there are no such sales by | 9 | | the taxpayer, then comparable sales or purchases of
property of | 10 | | like kind and character in Illinois.
| 11 | | Beginning on July 1, 2000 and through December 31, 2000, | 12 | | with respect to
motor fuel, as defined in Section 1.1 of the | 13 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 14 | | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| 15 | | Beginning on August 6, 2010 through August 15, 2010, and | 16 | | from August 6th through August 15th of each year thereafter, | 17 | | with respect to sales tax holiday items as defined in Section | 18 | | 3-6 of this Act, the
tax is imposed at the rate of 1.25%. | 19 | | With respect to gasohol, the tax imposed by this Act | 20 | | applies to (i) 70%
of the proceeds of sales made on or after | 21 | | January 1, 1990, and before
July 1, 2003, (ii) 80% of the | 22 | | proceeds of sales made
on or after July 1, 2003 and on or | 23 | | before December 31, 2013, and (iii) 100% of the proceeds of | 24 | | sales made
thereafter.
If, at any time, however, the tax under | 25 | | this Act on sales of gasohol is
imposed at the
rate of 1.25%, | 26 | | then the tax imposed by this Act applies to 100% of the |
| | | HB0258 | - 12 - | LRB097 06115 HLH 46188 b |
|
| 1 | | proceeds
of sales of gasohol made during that time.
| 2 | | With respect to majority blended ethanol fuel, the tax | 3 | | imposed by this Act
does
not apply
to the proceeds of sales | 4 | | made on or after July 1, 2003 and on or before
December
31, | 5 | | 2013 but applies to 100% of the proceeds of sales made | 6 | | thereafter.
| 7 | | With respect to biodiesel blends with no less than 1% and | 8 | | no more than 10%
biodiesel, the tax imposed by this Act applies | 9 | | to (i) 80% of the
proceeds of sales made on or after July 1, | 10 | | 2003 and on or before December 31,
2013 and (ii) 100% of the | 11 | | proceeds of sales made
thereafter.
If, at any time, however, | 12 | | the tax under this Act on sales of biodiesel blends
with no | 13 | | less than 1% and no more than 10% biodiesel
is imposed at the | 14 | | rate of
1.25%, then the
tax imposed by this Act applies to 100% | 15 | | of the proceeds of sales of biodiesel
blends with no less than | 16 | | 1% and no more than 10% biodiesel
made
during that time.
| 17 | | With respect to 100% biodiesel and biodiesel blends with | 18 | | more than 10%
but no more than 99% biodiesel, the tax imposed | 19 | | by this Act does not apply to
the
proceeds of sales made on or | 20 | | after July 1, 2003 and on or before
December 31, 2013 but | 21 | | applies to 100% of the proceeds of sales made
thereafter.
| 22 | | With respect to food for human consumption that is to be | 23 | | consumed off the
premises where it is sold (other than | 24 | | alcoholic beverages, soft drinks, and
food that has been | 25 | | prepared for immediate consumption) and prescription and
| 26 | | nonprescription medicines, drugs, medical appliances, |
| | | HB0258 | - 13 - | LRB097 06115 HLH 46188 b |
|
| 1 | | modifications to a motor
vehicle for the purpose of rendering | 2 | | it usable by a disabled person, and
insulin, urine testing | 3 | | materials, syringes, and needles used by diabetics, for
human | 4 | | use, the tax is imposed at the rate of 1%. For the purposes of | 5 | | this
Section, until September 1, 2009: the term "soft drinks" | 6 | | means any complete, finished, ready-to-use,
non-alcoholic | 7 | | drink, whether carbonated or not, including but not limited to
| 8 | | soda water, cola, fruit juice, vegetable juice, carbonated | 9 | | water, and all other
preparations commonly known as soft drinks | 10 | | of whatever kind or description that
are contained in any | 11 | | closed or sealed bottle, can, carton, or container,
regardless | 12 | | of size; but "soft drinks" does not include coffee, tea, | 13 | | non-carbonated
water, infant formula, milk or milk products as | 14 | | defined in the Grade A
Pasteurized Milk and Milk Products Act, | 15 | | or drinks containing 50% or more
natural fruit or vegetable | 16 | | juice.
| 17 | | Notwithstanding any other provisions of this
Act, | 18 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 19 | | beverages that contain natural or artificial sweeteners. "Soft | 20 | | drinks" do not include beverages that contain milk or milk | 21 | | products, soy, rice or similar milk substitutes, or greater | 22 | | than 50% of vegetable or fruit juice by volume. | 23 | | Until August 1, 2009, and notwithstanding any other | 24 | | provisions of this
Act, "food for human consumption that is to | 25 | | be consumed off the premises where
it is sold" includes all | 26 | | food sold through a vending machine, except soft
drinks and |
| | | HB0258 | - 14 - | LRB097 06115 HLH 46188 b |
|
| 1 | | food products that are dispensed hot from a vending machine,
| 2 | | regardless of the location of the vending machine. Beginning | 3 | | August 1, 2009, and notwithstanding any other provisions of | 4 | | this Act, "food for human consumption that is to be consumed | 5 | | off the premises where it is sold" includes all food sold | 6 | | through a vending machine, except soft drinks, candy, and food | 7 | | products that are dispensed hot from a vending machine, | 8 | | regardless of the location of the vending machine.
| 9 | | Notwithstanding any other provisions of this
Act, | 10 | | beginning September 1, 2009, "food for human consumption that | 11 | | is to be consumed off the premises where
it is sold" does not | 12 | | include candy. For purposes of this Section, "candy" means a | 13 | | preparation of sugar, honey, or other natural or artificial | 14 | | sweeteners in combination with chocolate, fruits, nuts or other | 15 | | ingredients or flavorings in the form of bars, drops, or | 16 | | pieces. "Candy" does not include any preparation that contains | 17 | | flour or requires refrigeration. | 18 | | Notwithstanding any other provisions of this
Act, | 19 | | beginning September 1, 2009, "nonprescription medicines and | 20 | | drugs" does not include grooming and hygiene products. For | 21 | | purposes of this Section, "grooming and hygiene products" | 22 | | includes, but is not limited to, soaps and cleaning solutions, | 23 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 24 | | lotions and screens, unless those products are available by | 25 | | prescription only, regardless of whether the products meet the | 26 | | definition of "over-the-counter-drugs". For the purposes of |
| | | HB0258 | - 15 - | LRB097 06115 HLH 46188 b |
|
| 1 | | this paragraph, "over-the-counter-drug" means a drug for human | 2 | | use that contains a label that identifies the product as a drug | 3 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 4 | | label includes: | 5 | | (A) A "Drug Facts" panel; or | 6 | | (B) A statement of the "active ingredient(s)" with a | 7 | | list of those ingredients contained in the compound, | 8 | | substance or preparation. | 9 | | If the property that is purchased at retail from a retailer | 10 | | is acquired
outside Illinois and used outside Illinois before | 11 | | being brought to Illinois
for use here and is taxable under | 12 | | this Act, the "selling price" on which
the tax is computed | 13 | | shall be reduced by an amount that represents a
reasonable | 14 | | allowance for depreciation for the period of prior out-of-state | 15 | | use.
| 16 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | 17 | | eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10.)
| 18 | | Section 15. The Retailers' Occupation Tax Act is amended by | 19 | | changing Section 2-10 as follows:
| 20 | | (35 ILCS 120/2-10)
| 21 | | Sec. 2-10. Rate of tax. Unless otherwise provided in this | 22 | | Section,
the tax imposed by this Act is at the rate of 6.25% of | 23 | | gross receipts
from sales of tangible personal property made in | 24 | | the course of business.
|
| | | HB0258 | - 16 - | LRB097 06115 HLH 46188 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 of | 4 | | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| 5 | | Beginning on August 6, 2010 through August 15, 2010, with | 6 | | respect to sales tax holiday items as defined in Section 2-8 of | 7 | | this Act, and from August 6th through August 15th of each year | 8 | | thereafter, the
tax is imposed at the rate of 1.25%. | 9 | | Within 14 days after the effective date of this amendatory | 10 | | Act of the 91st
General Assembly, each retailer of motor fuel | 11 | | and gasohol shall cause the
following notice to be posted in a | 12 | | prominently visible place on each retail
dispensing device that | 13 | | is used to dispense motor
fuel or gasohol in the State of | 14 | | Illinois: "As of July 1, 2000, the State of
Illinois has | 15 | | eliminated the State's share of sales tax on motor fuel and
| 16 | | gasohol through December 31, 2000. The price on this pump | 17 | | should reflect the
elimination of the tax." The notice shall be | 18 | | printed in bold print on a sign
that is no smaller than 4 | 19 | | inches by 8 inches. The sign shall be clearly
visible to | 20 | | customers. Any retailer who fails to post or maintain a | 21 | | required
sign through December 31, 2000 is guilty of a petty | 22 | | offense for which the fine
shall be $500 per day per each | 23 | | retail premises where a violation occurs.
| 24 | | With respect to gasohol, as defined in the Use Tax Act, the | 25 | | tax imposed
by this Act applies to (i) 70% of the proceeds of | 26 | | sales made on or after
January 1, 1990, and before July 1, |
| | | HB0258 | - 17 - | LRB097 06115 HLH 46188 b |
|
| 1 | | 2003, (ii) 80% of the proceeds of
sales made on or after July | 2 | | 1, 2003 and on or before December 31,
2013, and (iii) 100% of | 3 | | the proceeds of sales
made thereafter.
If, at any time, | 4 | | however, the tax under this Act on sales of gasohol, as
defined | 5 | | in
the Use Tax Act, is imposed at the rate of 1.25%, then the
| 6 | | tax imposed by this Act applies to 100% of the proceeds of | 7 | | sales of gasohol
made during that time.
| 8 | | With respect to majority blended ethanol fuel, as defined | 9 | | in the Use Tax Act,
the
tax
imposed by this Act does not apply | 10 | | to the proceeds of sales made on or after
July 1, 2003 and on or | 11 | | before December 31, 2013 but applies to 100% of the
proceeds of | 12 | | sales made thereafter.
| 13 | | With respect to biodiesel blends, as defined in the Use Tax | 14 | | Act, with no less
than 1% and no
more than 10% biodiesel, the | 15 | | tax imposed by this Act
applies to (i) 80% of the proceeds of | 16 | | sales made on or after July 1, 2003
and on or before December | 17 | | 31, 2013 and (ii) 100% of the
proceeds of sales made | 18 | | thereafter.
If, at any time, however, the tax under this Act on | 19 | | sales of biodiesel blends,
as
defined in the Use Tax Act, with | 20 | | no less than 1% and no more than 10% biodiesel
is imposed at | 21 | | the rate of 1.25%, then the
tax imposed by this Act applies to | 22 | | 100% of the proceeds of sales of biodiesel
blends with no less | 23 | | than 1% and no more than 10% biodiesel
made
during that time.
| 24 | | With respect to 100% biodiesel, as defined in the Use Tax | 25 | | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| 26 | | more than 10% but no more than 99% biodiesel, the tax imposed |
| | | HB0258 | - 18 - | LRB097 06115 HLH 46188 b |
|
| 1 | | by this Act
does not apply to the proceeds of sales made on or | 2 | | after July 1, 2003
and on or before December 31, 2013 but | 3 | | applies to 100% of the
proceeds of sales made thereafter.
| 4 | | With respect to food for human consumption that is to be | 5 | | consumed off the
premises where it is sold (other than | 6 | | alcoholic beverages, soft drinks, and
food that has been | 7 | | prepared for immediate consumption) and prescription and
| 8 | | nonprescription medicines, drugs, medical appliances, | 9 | | modifications to a motor
vehicle for the purpose of rendering | 10 | | it usable by a disabled person, and
insulin, urine testing | 11 | | materials, syringes, and needles used by diabetics, for
human | 12 | | use, the tax is imposed at the rate of 1%. For the purposes of | 13 | | this
Section, until September 1, 2009: the term "soft drinks" | 14 | | means any complete, finished, ready-to-use,
non-alcoholic | 15 | | drink, whether carbonated or not, including but not limited to
| 16 | | soda water, cola, fruit juice, vegetable juice, carbonated | 17 | | water, and all other
preparations commonly known as soft drinks | 18 | | of whatever kind or description that
are contained in any | 19 | | closed or sealed bottle, can, carton, or container,
regardless | 20 | | of size; but "soft drinks" does not include coffee, tea, | 21 | | non-carbonated
water, infant formula, milk or milk products as | 22 | | defined in the Grade A
Pasteurized Milk and Milk Products Act, | 23 | | or drinks containing 50% or more
natural fruit or vegetable | 24 | | juice.
| 25 | | Notwithstanding any other provisions of this
Act, | 26 | | beginning September 1, 2009, "soft drinks" means non-alcoholic |
| | | HB0258 | - 19 - | LRB097 06115 HLH 46188 b |
|
| 1 | | beverages that contain natural or artificial sweeteners. "Soft | 2 | | drinks" do not include beverages that contain milk or milk | 3 | | products, soy, rice or similar milk substitutes, or greater | 4 | | than 50% of vegetable or fruit juice by volume. | 5 | | Until August 1, 2009, and notwithstanding any other | 6 | | provisions of this
Act, "food for human consumption that is to | 7 | | be consumed off the premises where
it is sold" includes all | 8 | | food sold through a vending machine, except soft
drinks and | 9 | | food products that are dispensed hot from a vending machine,
| 10 | | regardless of the location of the vending machine. Beginning | 11 | | August 1, 2009, and notwithstanding any other provisions of | 12 | | this Act, "food for human consumption that is to be consumed | 13 | | off the premises where it is sold" includes all food sold | 14 | | through a vending machine, except soft drinks, candy, and food | 15 | | products that are dispensed hot from a vending machine, | 16 | | regardless of the location of the vending machine.
| 17 | | Notwithstanding any other provisions of this
Act, | 18 | | beginning September 1, 2009, "food for human consumption that | 19 | | is to be consumed off the premises where
it is sold" does not | 20 | | include candy. For purposes of this Section, "candy" means a | 21 | | preparation of sugar, honey, or other natural or artificial | 22 | | sweeteners in combination with chocolate, fruits, nuts or other | 23 | | ingredients or flavorings in the form of bars, drops, or | 24 | | pieces. "Candy" does not include any preparation that contains | 25 | | flour or requires refrigeration. | 26 | | Notwithstanding any other provisions of this
Act, |
| | | HB0258 | - 20 - | LRB097 06115 HLH 46188 b |
|
| 1 | | beginning September 1, 2009, "nonprescription medicines and | 2 | | drugs" does not include grooming and hygiene products. For | 3 | | purposes of this Section, "grooming and hygiene products" | 4 | | includes, but is not limited to, soaps and cleaning solutions, | 5 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 6 | | lotions and screens, unless those products are available by | 7 | | prescription only, regardless of whether the products meet the | 8 | | definition of "over-the-counter-drugs". For the purposes of | 9 | | this paragraph, "over-the-counter-drug" means a drug for human | 10 | | use that contains a label that identifies the product as a drug | 11 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 12 | | label includes: | 13 | | (A) A "Drug Facts" panel; or | 14 | | (B) A statement of the "active ingredient(s)" with a | 15 | | list of those ingredients contained in the compound, | 16 | | substance or preparation.
| 17 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | 18 | | eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10.)
| 19 | | Section 99. Effective date. This Act takes effect upon | 20 | | becoming law.
|
|