Full Text of HB3619 101st General Assembly
HB3619 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB3619 Introduced , by Rep. Jerry Costello, II SYNOPSIS AS INTRODUCED: |
| 35 ILCS 105/3-10 | | 35 ILCS 105/3-40 | from Ch. 120, par. 439.3-40 | 35 ILCS 105/3-44 | | 35 ILCS 105/3-44.3 new | | 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 | |
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Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the tax imposed on mid-range ethanol blends applies to (i) 80%
of the proceeds of sales made on or after July 1, 2019 and on or before December 31, 2023 and (ii) 100% of the proceeds of sales made
thereafter. Provides that the term "mid-range ethanol blend" means a blend of gasoline and denatured ethanol that contains not less than 20% but less than 51% denatured ethanol. Makes changes to the definitions of "gasohol" and "majority blended ethanol fuel" to adjust the required percentage of ethanol. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 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 10. The Use Tax Act is amended by changing Sections | 5 | | 3-10, 3-40, and 3-44 and by adding Section 3-44.3 as follows:
| 6 | | (35 ILCS 105/3-10)
| 7 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this | 8 | | Section, the tax
imposed by this Act is at the rate of 6.25% of | 9 | | either the selling price or the
fair market value, if any, of | 10 | | the tangible personal property. In all cases
where property | 11 | | functionally used or consumed is the same as the property that
| 12 | | was purchased at retail, then the tax is imposed on the selling | 13 | | price of the
property. In all cases where property functionally | 14 | | used or consumed is a
by-product or waste product that has been | 15 | | refined, manufactured, or produced
from property purchased at | 16 | | retail, then the tax is imposed on the lower of the
fair market | 17 | | value, if any, of the specific property so used in this State | 18 | | or on
the selling price of the property purchased at retail. | 19 | | For purposes of this
Section "fair market value" means the | 20 | | price at which property would change
hands between a willing | 21 | | buyer and a willing seller, neither being under any
compulsion | 22 | | to buy or sell and both having reasonable knowledge of the
| 23 | | relevant facts. The fair market value shall be established by |
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| 1 | | Illinois sales by
the taxpayer of the same property as that | 2 | | functionally used or consumed, or if
there are no such sales by | 3 | | the taxpayer, then comparable sales or purchases of
property of | 4 | | like kind and character in Illinois.
| 5 | | Beginning on July 1, 2000 and through December 31, 2000, | 6 | | with respect to
motor fuel, as defined in Section 1.1 of the | 7 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 8 | | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| 9 | | Beginning on August 6, 2010 through August 15, 2010, with | 10 | | respect to sales tax holiday items as defined in Section 3-6 of | 11 | | this Act, the
tax is imposed at the rate of 1.25%. | 12 | | With respect to gasohol, the tax imposed by this Act | 13 | | applies to (i) 70%
of the proceeds of sales made on or after | 14 | | January 1, 1990, and before
July 1, 2003, (ii) 80% of the | 15 | | proceeds of sales made
on or after July 1, 2003 and on or | 16 | | before July 1, 2017, and (iii) 100% of the proceeds of sales | 17 | | made
thereafter.
If, at any time, however, the tax under this | 18 | | Act on sales of gasohol is
imposed at the
rate of 1.25%, then | 19 | | the tax imposed by this Act applies to 100% of the proceeds
of | 20 | | sales of gasohol made during that time.
| 21 | | With respect to mid-range ethanol blends, the tax imposed | 22 | | by this Act applies to (i) 80%
of the proceeds of sales made on | 23 | | or after July 1, 2019 and on or before December 31, 2023 and | 24 | | (ii) 100% of the proceeds of sales made
thereafter. If, at any | 25 | | time, however, the tax under this Act on sales of mid-range | 26 | | ethanol blends is
imposed at the
rate of 1.25%, then the tax |
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| 1 | | imposed by this Act applies to 100% of the proceeds
of sales of | 2 | | mid-range ethanol blends made during that time. | 3 | | With respect to majority blended ethanol fuel, the tax | 4 | | imposed by this Act
does
not apply
to the proceeds of sales | 5 | | made on or after July 1, 2003 and on or before
December 31, | 6 | | 2023 but applies to 100% of the proceeds of sales made | 7 | | thereafter.
| 8 | | With respect to biodiesel blends with no less than 1% and | 9 | | no more than 10%
biodiesel, the tax imposed by this Act applies | 10 | | to (i) 80% of the
proceeds of sales made on or after July 1, | 11 | | 2003 and on or before December 31, 2018
and (ii) 100% of the | 12 | | proceeds of sales made
thereafter.
If, at any time, however, | 13 | | the tax under this Act on sales of biodiesel blends
with no | 14 | | less than 1% and no more than 10% biodiesel
is imposed at the | 15 | | rate of
1.25%, then the
tax imposed by this Act applies to 100% | 16 | | of the proceeds of sales of biodiesel
blends with no less than | 17 | | 1% and no more than 10% biodiesel
made
during that time.
| 18 | | With respect to 100% biodiesel and biodiesel blends with | 19 | | more than 10%
but no more than 99% biodiesel, the tax imposed | 20 | | by this Act does not apply to
the
proceeds of sales made on or | 21 | | after July 1, 2003 and on or before
December 31, 2023 but | 22 | | applies to 100% of the proceeds of sales made
thereafter.
| 23 | | With respect to food for human consumption that is to be | 24 | | consumed off the
premises where it is sold (other than | 25 | | alcoholic beverages, soft drinks, and
food that has been | 26 | | prepared for immediate consumption) and prescription and
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| 1 | | nonprescription medicines, drugs, medical appliances, products | 2 | | classified as Class III medical devices by the United States | 3 | | Food and Drug Administration that are used for cancer treatment | 4 | | pursuant to a prescription, as well as any accessories and | 5 | | components related to those devices, modifications to a motor
| 6 | | vehicle for the purpose of rendering it usable by a person with | 7 | | a disability, and
insulin, urine testing materials, syringes, | 8 | | and needles used by diabetics, for
human use, the tax is | 9 | | imposed at the rate of 1%. For the purposes of this
Section, | 10 | | until September 1, 2009: the term "soft drinks" means any | 11 | | complete, 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 sealed | 16 | | bottle, can, carton, or container,
regardless of size; but | 17 | | "soft drinks" does not include coffee, tea, non-carbonated
| 18 | | water, infant formula, milk or milk products as defined in the | 19 | | 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, | 22 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 23 | | beverages that contain natural or artificial sweeteners. "Soft | 24 | | drinks" do not include beverages that contain milk or milk | 25 | | products, soy, rice or similar milk substitutes, or greater | 26 | | than 50% of vegetable or fruit juice by volume. |
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| 1 | | Until August 1, 2009, and notwithstanding any other | 2 | | provisions of this
Act, "food for human consumption that is to | 3 | | be consumed off the premises where
it is sold" includes all | 4 | | food sold through a vending machine, except soft
drinks and | 5 | | food products that are dispensed hot from a vending machine,
| 6 | | regardless of the location of the vending machine. Beginning | 7 | | August 1, 2009, and notwithstanding any other provisions of | 8 | | this Act, "food for human consumption that is to be consumed | 9 | | off the premises where it is sold" includes all food sold | 10 | | through a vending machine, except soft drinks, candy, and food | 11 | | products that are dispensed hot from a vending machine, | 12 | | regardless of the location of the vending machine.
| 13 | | Notwithstanding any other provisions of this
Act, | 14 | | beginning September 1, 2009, "food for human consumption that | 15 | | is to be consumed off the premises where
it is sold" does not | 16 | | include candy. For purposes of this Section, "candy" means a | 17 | | preparation of sugar, honey, or other natural or artificial | 18 | | sweeteners in combination with chocolate, fruits, nuts or other | 19 | | ingredients or flavorings in the form of bars, drops, or | 20 | | pieces. "Candy" does not include any preparation that contains | 21 | | flour or requires refrigeration. | 22 | | Notwithstanding any other provisions of this
Act, | 23 | | beginning September 1, 2009, "nonprescription medicines and | 24 | | drugs" does not include grooming and hygiene products. For | 25 | | purposes of this Section, "grooming and hygiene products" | 26 | | includes, but is not limited to, soaps and cleaning solutions, |
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| 1 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 2 | | lotions and screens, unless those products are available by | 3 | | prescription only, regardless of whether the products meet the | 4 | | definition of "over-the-counter-drugs". For the purposes of | 5 | | this paragraph, "over-the-counter-drug" means a drug for human | 6 | | use that contains a label that identifies the product as a drug | 7 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 8 | | label 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 | 14 | | the 98th General Assembly, "prescription and nonprescription | 15 | | medicines and drugs" includes medical cannabis purchased from a | 16 | | registered dispensing organization under the Compassionate Use | 17 | | of Medical Cannabis Pilot Program Act. | 18 | | If the property that is purchased at retail from a retailer | 19 | | is acquired
outside Illinois and used outside Illinois before | 20 | | being brought to Illinois
for use here and is taxable under | 21 | | this Act, the "selling price" on which
the tax is computed | 22 | | shall be reduced by an amount that represents a
reasonable | 23 | | allowance for depreciation for the period of prior out-of-state | 24 | | use.
| 25 | | (Source: P.A. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16; | 26 | | 100-22, eff. 7-6-17.)
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| 1 | | (35 ILCS 105/3-40) (from Ch. 120, par. 439.3-40)
| 2 | | Sec. 3-40. Gasohol. As used in this Act, "gasohol" means | 3 | | motor
fuel that is
a denatured ethanol and gasoline blend of
| 4 | | denatured ethanol and gasoline that contains (i) no more than | 5 | | 1.25% water by weight and (ii) the maximum proportion of | 6 | | ethanol authorized by the United States Environmental | 7 | | Protection Agency under Section 211 of the Clean Air Act .
The | 8 | | blend must contain 90% gasoline and 10% denatured ethanol. A | 9 | | maximum of one percent error factor in the amount of denatured | 10 | | ethanol used in the blend is allowable to compensate for | 11 | | blending equipment variations. Any person who knowingly
sells | 12 | | or represents as gasohol any fuel that does not qualify as | 13 | | gasohol
under this Act is guilty of a business offense and | 14 | | shall be fined not more
than $100 for each day that the sale or | 15 | | representation takes place after
notification from the | 16 | | Department of Agriculture that the fuel in question
does not | 17 | | qualify as gasohol.
| 18 | | (Source: P.A. 93-724, eff. 7-13-04.)
| 19 | | (35 ILCS 105/3-44)
| 20 | | Sec. 3-44. Majority blended ethanol fuel. "Majority | 21 | | blended ethanol fuel"
means motor fuel that
(i) contains not | 22 | | less than 51% and no more than 83% by volume ethanol, as | 23 | | specified in ASTM Standard DS798-11 and (ii) is capable of | 24 | | being used in the operation of flexible fuel vehicles. 70% and |
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| 1 | | no more than 90% denatured ethanol and no less
than 10% and no | 2 | | more than 30% gasoline.
| 3 | | (Source: P.A. 93-17, eff. 6-11-03.)
| 4 | | (35 ILCS 105/3-44.3 new) | 5 | | Sec. 3-44.3. Mid-range ethanol blend. "Mid-range ethanol | 6 | | blend" means a blend of gasoline and denatured ethanol that | 7 | | contains not less than 20% but less than 51% denatured ethanol. | 8 | | Section 15. The Service Use Tax Act is amended by changing | 9 | | Section 3-10 as follows:
| 10 | | (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
| 11 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this | 12 | | Section,
the tax imposed by this Act is at the rate of 6.25% of | 13 | | the selling
price of tangible personal property transferred as | 14 | | an incident to the sale
of service, but, for the purpose of | 15 | | computing this tax, in no event shall
the selling price be less | 16 | | than the cost price of the property to the
serviceman.
| 17 | | Beginning on July 1, 2000 and through December 31, 2000, | 18 | | with respect to
motor fuel, as defined in Section 1.1 of the | 19 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 20 | | the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
| 21 | | With respect to gasohol, as defined in the Use Tax Act, the | 22 | | tax imposed
by this Act applies to (i) 70% of the selling price | 23 | | of property transferred
as an incident to the sale of service |
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| 1 | | on or after January 1, 1990,
and before July 1, 2003, (ii) 80% | 2 | | of the selling price of
property transferred as an incident to | 3 | | the sale of service on or after July
1, 2003 and on or before | 4 | | July 1, 2017, and (iii)
100% of the selling price thereafter.
| 5 | | If, at any time, however, the tax under this Act on sales of | 6 | | gasohol, as
defined in
the Use Tax Act, is imposed at the rate | 7 | | of 1.25%, then the
tax imposed by this Act applies to 100% of | 8 | | the proceeds of sales of gasohol
made during that time.
| 9 | | With respect to mid-range ethanol blends, as defined in the | 10 | | Use Tax Act, the tax imposed by this Act applies to (i) 80%
of | 11 | | the selling price of property transferred
as an incident to the | 12 | | sale of service on or after July 1, 2019 and on or before | 13 | | December 31, 2023 and (ii) 100% of the selling price
| 14 | | thereafter. If, at any time, however, the tax under this Act on | 15 | | sales of mid-range ethanol blends is
imposed at the
rate of | 16 | | 1.25%, then the tax imposed by this Act applies to 100% of the | 17 | | proceeds
of sales of mid-range ethanol blends made during that | 18 | | time. | 19 | | With respect to majority blended ethanol fuel, as defined | 20 | | in the Use Tax Act,
the
tax
imposed by this Act does not apply | 21 | | to the selling price of property transferred
as an incident to | 22 | | the sale of service on or after July 1, 2003 and on or before
| 23 | | December 31, 2023 but applies to 100% of the selling price | 24 | | thereafter.
| 25 | | With respect to biodiesel blends, as defined in the Use Tax | 26 | | Act, with no less
than 1% and no
more than 10% biodiesel, the |
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| 1 | | tax imposed by this Act
applies to (i) 80% of the selling price | 2 | | of property transferred as an incident
to the sale of service | 3 | | on or after July 1, 2003 and on or before December 31, 2018
and | 4 | | (ii) 100% of the proceeds of the selling price
thereafter.
If, | 5 | | at any time, however, the tax under this Act on sales of | 6 | | biodiesel blends,
as
defined in the Use Tax Act, with no less | 7 | | than 1% and no more than 10% biodiesel
is imposed at the rate | 8 | | of 1.25%, then the
tax imposed by this Act applies to 100% of | 9 | | the proceeds of sales of biodiesel
blends with no less than 1% | 10 | | and no more than 10% biodiesel
made
during that time.
| 11 | | With respect to 100% biodiesel, as defined in the Use Tax | 12 | | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| 13 | | more than 10% but no more than 99% biodiesel, the tax imposed | 14 | | by this Act
does not apply to the proceeds of the selling price | 15 | | of property transferred
as an incident to the sale of service | 16 | | on or after July 1, 2003 and on or before
December 31, 2023 but | 17 | | applies to 100% of the selling price thereafter.
| 18 | | At the election of any registered serviceman made for each | 19 | | fiscal year,
sales of service in which the aggregate annual | 20 | | cost price of tangible
personal property transferred as an | 21 | | incident to the sales of service is
less than 35%, or 75% in | 22 | | the case of servicemen transferring prescription
drugs or | 23 | | servicemen engaged in graphic arts production, of the aggregate
| 24 | | annual total gross receipts from all sales of service, the tax | 25 | | imposed by
this Act shall be based on the serviceman's cost | 26 | | price of the tangible
personal property transferred as an |
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| 1 | | incident to the sale of those services.
| 2 | | The tax shall be imposed at the rate of 1% on food prepared | 3 | | for
immediate consumption and transferred incident to a sale of | 4 | | service subject
to this Act or the Service Occupation Tax Act | 5 | | by an entity licensed under
the Hospital Licensing Act, the | 6 | | Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD | 7 | | Act, the Specialized Mental Health Rehabilitation Act of 2013, | 8 | | or the
Child Care
Act of 1969. The tax shall
also be imposed at | 9 | | the rate of 1% on food for human consumption that is to be
| 10 | | consumed off the premises where it is sold (other than | 11 | | alcoholic beverages,
soft drinks, and food that has been | 12 | | prepared for immediate consumption and is
not otherwise | 13 | | included in this paragraph) and prescription and | 14 | | nonprescription
medicines, drugs, medical appliances, products | 15 | | classified as Class III medical devices by the United States | 16 | | Food and Drug Administration that are used for cancer treatment | 17 | | pursuant to a prescription, as well as any accessories and | 18 | | components related to those devices, modifications to a motor | 19 | | vehicle for the
purpose of rendering it usable by a person with | 20 | | a disability, and insulin, urine testing
materials,
syringes, | 21 | | and needles used by diabetics, for
human use. For the purposes | 22 | | of this Section, until September 1, 2009: the term "soft | 23 | | drinks" means any
complete, finished, ready-to-use, | 24 | | non-alcoholic drink, whether carbonated or
not, including but | 25 | | not limited to soda water, cola, fruit juice, vegetable
juice, | 26 | | carbonated water, and all other preparations commonly known as |
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| 1 | | soft
drinks of whatever kind or description that are contained | 2 | | in any closed or
sealed bottle, can, carton, or container, | 3 | | regardless of size; but "soft drinks"
does not include coffee, | 4 | | tea, non-carbonated water, infant formula, milk or
milk | 5 | | products as defined in the Grade A Pasteurized Milk and Milk | 6 | | Products Act,
or drinks containing 50% or more natural fruit or | 7 | | vegetable juice.
| 8 | | Notwithstanding any other provisions of this
Act, | 9 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 10 | | beverages that contain natural or artificial sweeteners. "Soft | 11 | | drinks" do not include beverages that contain milk or milk | 12 | | products, soy, rice or similar milk substitutes, or greater | 13 | | than 50% of vegetable or fruit juice by volume. | 14 | | Until August 1, 2009, and notwithstanding any other | 15 | | provisions of this Act, "food for human
consumption that is to | 16 | | be consumed off the premises where it is sold" includes
all | 17 | | food sold through a vending machine, except soft drinks and | 18 | | food products
that are dispensed hot from a vending machine, | 19 | | regardless of the location of
the vending machine. Beginning | 20 | | August 1, 2009, and notwithstanding any other provisions of | 21 | | this Act, "food for human consumption that is to be consumed | 22 | | off the premises where it is sold" includes all food sold | 23 | | through a vending machine, except soft drinks, candy, and food | 24 | | products that are dispensed hot from a vending machine, | 25 | | regardless of the location of the vending machine.
| 26 | | Notwithstanding any other provisions of this
Act, |
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| 1 | | beginning September 1, 2009, "food for human consumption that | 2 | | is to be consumed off the premises where
it is sold" does not | 3 | | include candy. For purposes of this Section, "candy" means a | 4 | | preparation of sugar, honey, or other natural or artificial | 5 | | sweeteners in combination with chocolate, fruits, nuts or other | 6 | | ingredients or flavorings in the form of bars, drops, or | 7 | | pieces. "Candy" does not include any preparation that contains | 8 | | flour or requires refrigeration. | 9 | | Notwithstanding any other provisions of this
Act, | 10 | | beginning September 1, 2009, "nonprescription medicines and | 11 | | drugs" does not include grooming and hygiene products. For | 12 | | purposes of this Section, "grooming and hygiene products" | 13 | | includes, but is not limited to, soaps and cleaning solutions, | 14 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 15 | | lotions and screens, unless those products are available by | 16 | | prescription only, regardless of whether the products meet the | 17 | | definition of "over-the-counter-drugs". For the purposes of | 18 | | this paragraph, "over-the-counter-drug" means a drug for human | 19 | | use that contains a label that identifies the product as a drug | 20 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 21 | | label 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 |
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| 1 | | Act 98-122), "prescription and nonprescription medicines and | 2 | | drugs" includes medical cannabis purchased from a registered | 3 | | dispensing organization under the Compassionate Use of Medical | 4 | | Cannabis Pilot Program Act. | 5 | | If the property that is acquired from a serviceman is | 6 | | acquired outside
Illinois and used outside Illinois before | 7 | | being brought to Illinois for use
here and is taxable under | 8 | | this Act, the "selling price" on which the tax
is computed | 9 | | shall be reduced by an amount that represents a reasonable
| 10 | | allowance for depreciation for the period of prior out-of-state | 11 | | use.
| 12 | | (Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15; | 13 | | 99-642, eff. 7-28-16; 99-858, eff. 8-19-16; 100-22, eff. | 14 | | 7-6-17.) | 15 | | Section 20. The Service Occupation Tax Act is amended by | 16 | | changing Section 3-10 as follows:
| 17 | | (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
| 18 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this | 19 | | Section,
the tax imposed by this Act is at the rate of 6.25% of | 20 | | the "selling price",
as defined in Section 2 of the Service Use | 21 | | Tax Act, of the tangible
personal property. For the purpose of | 22 | | computing this tax, in no event
shall the "selling price" be | 23 | | less than the cost price to the serviceman of
the tangible | 24 | | personal property transferred. The selling price of each item
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| 1 | | of tangible personal property transferred as an incident of a | 2 | | sale of
service may be shown as a distinct and separate item on | 3 | | the serviceman's
billing to the service customer. If the | 4 | | selling price is not so shown, the
selling price of the | 5 | | tangible personal property is deemed to be 50% of the
| 6 | | serviceman's entire billing to the service customer. When, | 7 | | however, a
serviceman contracts to design, develop, and produce | 8 | | special order machinery or
equipment, the tax imposed by this | 9 | | Act shall be based on the serviceman's
cost price of the | 10 | | tangible personal property transferred incident to the
| 11 | | completion of the contract.
| 12 | | Beginning on July 1, 2000 and through December 31, 2000, | 13 | | with respect to
motor fuel, as defined in Section 1.1 of the | 14 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 15 | | the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
| 16 | | With respect to gasohol, as defined in the Use Tax Act, the | 17 | | tax imposed
by this Act shall apply to (i) 70% of the cost | 18 | | price of property
transferred as
an incident to the sale of | 19 | | service on or after January 1, 1990, and before
July 1, 2003, | 20 | | (ii) 80% of the selling price of property transferred as an
| 21 | | incident to the sale of service on or after July
1, 2003 and on | 22 | | or before July 1, 2017, and (iii) 100%
of
the cost price
| 23 | | thereafter.
If, at any time, however, the tax under this Act on | 24 | | sales of gasohol, as
defined in
the Use Tax Act, is imposed at | 25 | | the rate of 1.25%, then the
tax imposed by this Act applies to | 26 | | 100% of the proceeds of sales of gasohol
made during that time.
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| 1 | | With respect to mid-range ethanol blends, as defined in the | 2 | | Use Tax Act, the tax imposed by this Act applies to (i) 80%
of | 3 | | the selling price of property transferred
as an incident to the | 4 | | sale of service on or after July 1, 2019 and on or before | 5 | | December 31, 2023 and (ii) 100% of the selling price
| 6 | | thereafter. If, at any time, however, the tax under this Act on | 7 | | sales of mid-range ethanol blends is
imposed at the
rate of | 8 | | 1.25%, then the tax imposed by this Act applies to 100% of the | 9 | | proceeds
of sales of mid-range ethanol blends made during that | 10 | | 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 apply | 13 | | to the selling price of property transferred
as an incident to | 14 | | the sale of service on or after July 1, 2003 and on or before
| 15 | | December 31, 2023 but applies to 100% of the selling price | 16 | | thereafter.
| 17 | | With respect to biodiesel blends, as defined in the Use Tax | 18 | | Act, with no less
than 1% and no
more than 10% biodiesel, the | 19 | | tax imposed by this Act
applies to (i) 80% of the selling price | 20 | | of property transferred as an incident
to the sale of service | 21 | | on or after July 1, 2003 and on or before December 31, 2018
and | 22 | | (ii) 100% of the proceeds of the selling price
thereafter.
If, | 23 | | at any time, however, the tax under this Act on sales of | 24 | | biodiesel blends,
as
defined in the Use Tax Act, with no less | 25 | | than 1% and no more than 10% biodiesel
is imposed at the rate | 26 | | of 1.25%, then the
tax imposed by this Act applies to 100% of |
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| 1 | | the proceeds of sales of biodiesel
blends with no less than 1% | 2 | | and no more than 10% biodiesel
made
during that time.
| 3 | | With respect to 100% biodiesel, as defined in the Use Tax | 4 | | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| 5 | | more than 10% but no more than 99% biodiesel material, the tax | 6 | | imposed by this
Act
does not apply to the proceeds of the | 7 | | selling price of property transferred
as an incident to the | 8 | | sale of service on or after July 1, 2003 and on or before
| 9 | | December 31, 2023 but applies to 100% of the selling price | 10 | | thereafter.
| 11 | | At the election of any registered serviceman made for each | 12 | | fiscal year,
sales of service in which the aggregate annual | 13 | | cost price of tangible
personal property transferred as an | 14 | | incident to the sales of service is
less than 35%, or 75% in | 15 | | the case of servicemen transferring prescription
drugs or | 16 | | servicemen engaged in graphic arts production, of the aggregate
| 17 | | annual total gross receipts from all sales of service, the tax | 18 | | imposed by
this Act shall be based on the serviceman's cost | 19 | | price of the tangible
personal property transferred incident to | 20 | | the sale of those services.
| 21 | | The tax shall be imposed at the rate of 1% on food prepared | 22 | | for
immediate consumption and transferred incident to a sale of | 23 | | service subject
to this Act or the Service Occupation Tax Act | 24 | | by an entity licensed under
the Hospital Licensing Act, the | 25 | | Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD | 26 | | Act, the Specialized Mental Health Rehabilitation Act of 2013, |
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| 1 | | or the
Child Care Act of 1969. The tax shall
also be imposed at | 2 | | the rate of 1% on food for human consumption that is
to be | 3 | | consumed off the
premises where it is sold (other than | 4 | | alcoholic beverages, soft drinks, and
food that has been | 5 | | prepared for immediate consumption and is not
otherwise | 6 | | included in this paragraph) and prescription and
| 7 | | nonprescription medicines, drugs, medical appliances, products | 8 | | classified as Class III medical devices by the United States | 9 | | Food and Drug Administration that are used for cancer treatment | 10 | | pursuant to a prescription, as well as any accessories and | 11 | | components related to those devices, modifications to a motor
| 12 | | vehicle for the purpose of rendering it usable by a person with | 13 | | a disability, and
insulin, urine testing materials, syringes, | 14 | | and needles used by diabetics, for
human use. For the purposes | 15 | | of this Section, until September 1, 2009: the term "soft | 16 | | drinks" means any
complete, finished, ready-to-use, | 17 | | non-alcoholic drink, whether carbonated or
not, including but | 18 | | not limited to soda water, cola, fruit juice, vegetable
juice, | 19 | | carbonated water, and all other preparations commonly known as | 20 | | soft
drinks of whatever kind or description that are contained | 21 | | in any closed or
sealed can, carton, or container, regardless | 22 | | of size; but "soft drinks" does not
include coffee, tea, | 23 | | non-carbonated water, infant formula, milk or milk
products as | 24 | | defined in the Grade A Pasteurized Milk and Milk Products Act, | 25 | | or
drinks containing 50% or more natural fruit or vegetable | 26 | | juice.
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| 1 | | Notwithstanding any other provisions of this
Act, | 2 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 3 | | beverages that contain natural or artificial sweeteners. "Soft | 4 | | drinks" do not include beverages that contain milk or milk | 5 | | products, soy, rice or similar milk substitutes, or greater | 6 | | than 50% of vegetable or fruit juice by volume. | 7 | | Until August 1, 2009, and notwithstanding any other | 8 | | provisions of this Act, "food for human consumption
that is to | 9 | | be consumed off the premises where it is sold" includes all | 10 | | food
sold through a vending machine, except soft drinks and | 11 | | food products that are
dispensed hot from a vending machine, | 12 | | regardless of the location of the vending
machine. Beginning | 13 | | August 1, 2009, and notwithstanding any other provisions of | 14 | | this Act, "food for human consumption that is to be consumed | 15 | | off the premises where it is sold" includes all food sold | 16 | | through a vending machine, except soft drinks, candy, and food | 17 | | products that are dispensed hot from a vending machine, | 18 | | regardless of the location of the vending machine.
| 19 | | Notwithstanding any other provisions of this
Act, | 20 | | beginning September 1, 2009, "food for human consumption that | 21 | | is to be consumed off the premises where
it is sold" does not | 22 | | include candy. For purposes of this Section, "candy" means a | 23 | | preparation of sugar, honey, or other natural or artificial | 24 | | sweeteners in combination with chocolate, fruits, nuts or other | 25 | | ingredients or flavorings in the form of bars, drops, or | 26 | | pieces. "Candy" does not include any preparation that contains |
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| 1 | | flour or requires refrigeration. | 2 | | Notwithstanding any other provisions of this
Act, | 3 | | beginning September 1, 2009, "nonprescription medicines and | 4 | | drugs" does not include grooming and hygiene products. For | 5 | | purposes of this Section, "grooming and hygiene products" | 6 | | includes, but is not limited to, soaps and cleaning solutions, | 7 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 8 | | lotions and screens, unless those products are available by | 9 | | prescription only, regardless of whether the products meet the | 10 | | definition of "over-the-counter-drugs". For the purposes of | 11 | | this paragraph, "over-the-counter-drug" means a drug for human | 12 | | use that contains a label that identifies the product as a drug | 13 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 14 | | label includes: | 15 | | (A) A "Drug Facts" panel; or | 16 | | (B) A statement of the "active ingredient(s)" with a | 17 | | list of those ingredients contained in the compound, | 18 | | substance or preparation. | 19 | | Beginning on January 1, 2014 (the effective date of Public | 20 | | Act 98-122), "prescription and nonprescription medicines and | 21 | | drugs" includes medical cannabis purchased from a registered | 22 | | dispensing organization under the Compassionate Use of Medical | 23 | | Cannabis Pilot Program Act. | 24 | | (Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15; | 25 | | 99-642, eff. 7-28-16; 99-858, eff. 8-19-16; 100-22, eff. | 26 | | 7-6-17.) |
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| 1 | | Section 25. The Retailers' Occupation Tax Act is amended by | 2 | | changing Section 2-10 as follows:
| 3 | | (35 ILCS 120/2-10)
| 4 | | Sec. 2-10. Rate of tax. Unless otherwise provided in this | 5 | | Section,
the tax imposed by this Act is at the rate of 6.25% of | 6 | | gross receipts
from sales of tangible personal property made in | 7 | | the course of business.
| 8 | | Beginning on July 1, 2000 and through December 31, 2000, | 9 | | with respect to
motor fuel, as defined in Section 1.1 of the | 10 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 11 | | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| 12 | | Beginning on August 6, 2010 through August 15, 2010, with | 13 | | respect to sales tax holiday items as defined in Section 2-8 of | 14 | | this Act, the
tax is imposed at the rate of 1.25%. | 15 | | Within 14 days after the effective date of this amendatory | 16 | | Act of the 91st
General Assembly, each retailer of motor fuel | 17 | | and gasohol shall cause the
following notice to be posted in a | 18 | | prominently visible place on each retail
dispensing device that | 19 | | is used to dispense motor
fuel or gasohol in the State of | 20 | | Illinois: "As of July 1, 2000, the State of
Illinois has | 21 | | eliminated the State's share of sales tax on motor fuel and
| 22 | | gasohol through December 31, 2000. The price on this pump | 23 | | should reflect the
elimination of the tax." The notice shall be | 24 | | printed in bold print on a sign
that is no smaller than 4 |
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| 1 | | inches by 8 inches. The sign shall be clearly
visible to | 2 | | customers. Any retailer who fails to post or maintain a | 3 | | required
sign through December 31, 2000 is guilty of a petty | 4 | | offense for which the fine
shall be $500 per day per each | 5 | | retail premises where a violation occurs.
| 6 | | With respect to gasohol, as defined in the Use Tax Act, the | 7 | | tax imposed
by this Act applies to (i) 70% of the proceeds of | 8 | | sales made on or after
January 1, 1990, and before July 1, | 9 | | 2003, (ii) 80% of the proceeds of
sales made on or after July | 10 | | 1, 2003 and on or before July 1, 2017, and (iii) 100% of the | 11 | | proceeds of sales
made thereafter.
If, at any time, however, | 12 | | the tax under this Act on sales of gasohol, as
defined in
the | 13 | | Use Tax Act, is imposed at the rate of 1.25%, then the
tax | 14 | | imposed by this Act applies to 100% of the proceeds of sales of | 15 | | gasohol
made during that time.
| 16 | | With respect to mid-range ethanol blends, as defined in the | 17 | | Use Tax Act, the tax imposed by this Act applies to (i) 80%
of | 18 | | the proceeds of sales made on or after July 1, 2019 and on or | 19 | | before December 31, 2023 and (ii) 100% of the proceeds of sales | 20 | | made
thereafter. If, at any time, however, the tax under this | 21 | | Act on sales of mid-range ethanol blends is
imposed at the
rate | 22 | | of 1.25%, then the tax imposed by this Act applies to 100% of | 23 | | the proceeds
of sales of mid-range ethanol blends made during | 24 | | that time. | 25 | | With respect to majority blended ethanol fuel, as defined | 26 | | in the Use Tax Act,
the
tax
imposed by this Act does not apply |
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| 1 | | to the proceeds of sales made on or after
July 1, 2003 and on or | 2 | | before December 31, 2023 but applies to 100% of the
proceeds of | 3 | | sales made thereafter.
| 4 | | With respect to biodiesel blends, as defined in the Use Tax | 5 | | Act, with no less
than 1% and no
more than 10% biodiesel, the | 6 | | tax imposed by this Act
applies to (i) 80% of the proceeds of | 7 | | sales made on or after July 1, 2003
and on or before December | 8 | | 31, 2018 and (ii) 100% of the
proceeds of sales made | 9 | | thereafter.
If, at any time, however, the tax under this Act on | 10 | | sales of biodiesel blends,
as
defined in the Use Tax Act, with | 11 | | no less than 1% and no more than 10% biodiesel
is imposed at | 12 | | the rate of 1.25%, then the
tax imposed by this Act applies to | 13 | | 100% of the proceeds of sales of biodiesel
blends with no less | 14 | | than 1% and no more than 10% biodiesel
made
during that time.
| 15 | | With respect to 100% biodiesel, as defined in the Use Tax | 16 | | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| 17 | | more than 10% but no more than 99% biodiesel, the tax imposed | 18 | | by this Act
does not apply to the proceeds of sales made on or | 19 | | after July 1, 2003
and on or before December 31, 2023 but | 20 | | applies to 100% of the
proceeds of sales made thereafter.
| 21 | | With respect to food for human consumption that is to be | 22 | | consumed off the
premises where it is sold (other than | 23 | | alcoholic beverages, soft drinks, and
food that has been | 24 | | prepared for immediate consumption) and prescription and
| 25 | | nonprescription medicines, drugs, medical appliances, products | 26 | | classified as Class III medical devices by the United States |
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| 1 | | Food and Drug Administration that are used for cancer treatment | 2 | | pursuant to a prescription, as well as any accessories and | 3 | | components related to those devices, modifications to a motor
| 4 | | vehicle for the purpose of rendering it usable by a person with | 5 | | a disability, and
insulin, urine testing materials, syringes, | 6 | | and needles used by diabetics, for
human use, the tax is | 7 | | imposed at the rate of 1%. For the purposes of this
Section, | 8 | | until September 1, 2009: the term "soft drinks" means any | 9 | | complete, finished, ready-to-use,
non-alcoholic drink, whether | 10 | | carbonated or not, including but not limited to
soda water, | 11 | | cola, fruit juice, vegetable juice, carbonated water, and all | 12 | | other
preparations commonly known as soft drinks of whatever | 13 | | kind or description that
are contained in any closed or sealed | 14 | | bottle, can, carton, or container,
regardless of size; but | 15 | | "soft drinks" does not include coffee, tea, non-carbonated
| 16 | | water, infant formula, milk or milk products as defined in the | 17 | | Grade A
Pasteurized Milk and Milk Products Act, or drinks | 18 | | containing 50% or more
natural fruit or vegetable juice.
| 19 | | Notwithstanding any other provisions of this
Act, | 20 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 21 | | beverages that contain natural or artificial sweeteners. "Soft | 22 | | drinks" do not include beverages that contain milk or milk | 23 | | products, soy, rice or similar milk substitutes, or greater | 24 | | than 50% of vegetable or fruit juice by volume. | 25 | | Until August 1, 2009, and notwithstanding any other | 26 | | provisions of this
Act, "food for human consumption that is to |
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| 1 | | be consumed off the premises where
it is sold" includes all | 2 | | food sold through a vending machine, except soft
drinks and | 3 | | food products that are dispensed hot from a vending machine,
| 4 | | regardless of the location of the vending machine. Beginning | 5 | | August 1, 2009, and notwithstanding any other provisions of | 6 | | this Act, "food for human consumption that is to be consumed | 7 | | off the premises where it is sold" includes all food sold | 8 | | through a vending machine, except soft drinks, candy, and food | 9 | | products that are dispensed hot from a vending machine, | 10 | | regardless of the location of the vending machine.
| 11 | | Notwithstanding any other provisions of this
Act, | 12 | | beginning September 1, 2009, "food for human consumption that | 13 | | is to be consumed off the premises where
it is sold" does not | 14 | | include candy. For purposes of this Section, "candy" means a | 15 | | preparation of sugar, honey, or other natural or artificial | 16 | | sweeteners in combination with chocolate, fruits, nuts or other | 17 | | ingredients or flavorings in the form of bars, drops, or | 18 | | pieces. "Candy" does not include any preparation that contains | 19 | | flour or requires refrigeration. | 20 | | Notwithstanding any other provisions of this
Act, | 21 | | beginning September 1, 2009, "nonprescription medicines and | 22 | | drugs" does not include grooming and hygiene products. For | 23 | | purposes of this Section, "grooming and hygiene products" | 24 | | includes, but is not limited to, soaps and cleaning solutions, | 25 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 26 | | lotions and screens, unless those products are available by |
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| 1 | | prescription only, regardless of whether the products meet the | 2 | | definition of "over-the-counter-drugs". For the purposes of | 3 | | this paragraph, "over-the-counter-drug" means a drug for human | 4 | | use that contains a label that identifies the product as a drug | 5 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 6 | | label includes: | 7 | | (A) A "Drug Facts" panel; or | 8 | | (B) A statement of the "active ingredient(s)" with a | 9 | | list of those ingredients contained in the compound, | 10 | | substance or preparation.
| 11 | | Beginning on the effective date of this amendatory Act of | 12 | | the 98th General Assembly, "prescription and nonprescription | 13 | | medicines and drugs" includes medical cannabis purchased from a | 14 | | registered dispensing organization under the Compassionate Use | 15 | | of Medical Cannabis Pilot Program Act. | 16 | | (Source: P.A. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16; | 17 | | 100-22, eff. 7-6-17.)
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law.
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