Illinois General Assembly - Full Text of SB1146
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Full Text of SB1146  102nd General Assembly

SB1146sam001 102ND GENERAL ASSEMBLY

Sen. Patrick J. Joyce

Filed: 3/22/2022

 

 


 

 


 
10200SB1146sam001LRB102 04948 HLH 37693 a

1
AMENDMENT TO SENATE BILL 1146

2    AMENDMENT NO. ______. Amend Senate Bill 1146 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Use Tax Act is amended by changing
5Sections 3-10 and 3-41 and by adding Sections 3-5.1 and 3-42.5
6as follows:
 
7    (35 ILCS 105/3-5.1 new)
8    Sec. 3-5.1. Biodiesel, renewable diesel, and biodiesel
9blends.
10    (a) From January 1, 2024 through March 31, 2024, the taxes
11imposed by this Act, the Service Use Tax Act, the Service
12Occupation Tax Act, or the Retailers' Occupation Tax Act do
13not apply to the proceeds of sales of the following items: (i)
14biodiesel; (ii) renewable diesel; or (iii) biodiesel blends
15with more than 10% but no more than 99% biodiesel.
16    (b) From April 1, 2024 through November 30, 2024, the

 

 

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1taxes imposed by this Act, the Service Use Tax Act, the Service
2Occupation Tax Act, or the Retailers' Occupation Tax Act do
3not apply to the proceeds of sales of the following items: (i)
4biodiesel; (ii) renewable diesel; or (iii) biodiesel blends
5with more than 13% but no more than 99% biodiesel.
6    (c) From December 1, 2024 through March 31, 2025, the
7taxes imposed by this Act, the Service Use Tax Act, the Service
8Occupation Tax Act, or the Retailers' Occupation Tax Act do
9not apply to the proceeds of sales of the following items: (i)
10biodiesel; (ii) renewable diesel; or (iii) biodiesel blends
11with more than 10% but no more than 99% biodiesel.
12    (d) From April 1, 2025 through November 30, 2025, the
13taxes imposed by this Act, the Service Use Tax Act, the Service
14Occupation Tax Act, or the Retailers' Occupation Tax Act do
15not apply to the proceeds of sales of the following items: (i)
16biodiesel; (ii) renewable diesel; or (iii) biodiesel blends
17with more than 16% but no more than 99% biodiesel.
18    (e) From December 1, 2025 through March 31, 2026, the
19taxes imposed by this Act, the Service Use Tax Act, the Service
20Occupation Tax Act, or the Retailers' Occupation Tax Act do
21not apply to the proceeds of sales of the following items: (i)
22biodiesel; (ii) renewable diesel; or (iii) biodiesel blends
23with more than 10% but no more than 99% biodiesel.
24    (f) On and after April 1, 2026, the taxes imposed by this
25Act, the Service Use Tax Act, the Service Occupation Tax Act,
26or the Retailers' Occupation Tax Act do not apply to the

 

 

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1proceeds of sales of the following items: (i) biodiesel; (ii)
2renewable diesel; or (iii) biodiesel blends with more than 19%
3but no more than 99% biodiesel; provided that, from December 1
4of any calendar year through March 31 of the following
5calendar year, the taxes imposed by this Act, the Service Use
6Tax Act, the Service Occupation Tax Act, or the Retailers'
7Occupation Tax Act do not apply to the proceeds of sales of the
8following items: (i) biodiesel; (ii) renewable diesel; or
9(iii) biodiesel blends with more than 10% but no more than 99%
10biodiesel.
11    (g) This Section is exempt from the provisions of Section
123-90 of this Act, Section 3-75 of the Service Use Tax Act,
13Section 3-55 of the Service Occupation Tax Act, and Section
142-70 of the Retailers' Occupation Tax Act.
 
15    (35 ILCS 105/3-10)
16    Sec. 3-10. Rate of tax. Unless otherwise provided in this
17Section, the tax imposed by this Act is at the rate of 6.25% of
18either the selling price or the fair market value, if any, of
19the tangible personal property. In all cases where property
20functionally used or consumed is the same as the property that
21was purchased at retail, then the tax is imposed on the selling
22price of the property. In all cases where property
23functionally used or consumed is a by-product or waste product
24that has been refined, manufactured, or produced from property
25purchased at retail, then the tax is imposed on the lower of

 

 

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

 

 

10200SB1146sam001- 5 -LRB102 04948 HLH 37693 a

1sales of gasohol made during that time.
2    With respect to majority blended ethanol fuel, the tax
3imposed by this Act does not apply to the proceeds of sales
4made on or after July 1, 2003 and on or before December 31,
52023 but applies to 100% of the proceeds of sales made
6thereafter.
7    With respect to biodiesel blends with no less than 1% and
8no more than 10% biodiesel, the tax imposed by this Act applies
9to (i) 80% of the proceeds of sales made on or after July 1,
102003 and on or before December 31, 2018 and (ii) 100% of the
11proceeds of sales made after December 31, 2018 and before
12January 1, 2024. On and after January 1, 2024, the taxation of
13biodiesel, renewable diesel, and biodiesel blends shall be as
14provided in Section 3-5.1 thereafter. If, at any time,
15however, the tax under this Act on sales of biodiesel blends
16with no less than 1% and no more than 10% biodiesel is imposed
17at the rate of 1.25%, then the tax imposed by this Act applies
18to 100% of the proceeds of sales of biodiesel blends with no
19less than 1% and no more than 10% biodiesel made during that
20time.
21    With respect to 100% biodiesel and biodiesel blends with
22more than 10% but no more than 99% biodiesel, the tax imposed
23by this Act does not apply to the proceeds of sales made on or
24after July 1, 2003 and on or before December 31, 2023 but
25applies to 100% of the proceeds of sales made thereafter. On
26and after January 1, 2024, the taxation of biodiesel,

 

 

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1renewable diesel, and biodiesel blends shall be as provided in
2Section 3-5.1.
3    With respect to food for human consumption that is to be
4consumed off the premises where it is sold (other than
5alcoholic beverages, food consisting of or infused with adult
6use cannabis, soft drinks, and food that has been prepared for
7immediate consumption) and prescription and nonprescription
8medicines, drugs, medical appliances, products classified as
9Class III medical 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, the tax is
16imposed at the rate of 1%. For the purposes of this Section,
17until September 1, 2009: the term "soft drinks" means any
18complete, finished, ready-to-use, non-alcoholic drink, whether
19carbonated or not, including but not limited to soda water,
20cola, fruit juice, vegetable juice, carbonated water, and all
21other preparations commonly known as soft drinks of whatever
22kind or description that are contained in any closed or sealed
23bottle, can, carton, or container, regardless of size; but
24"soft drinks" does not include coffee, tea, non-carbonated
25water, infant formula, milk or milk products as defined in the
26Grade A Pasteurized Milk and Milk Products Act, or drinks

 

 

10200SB1146sam001- 7 -LRB102 04948 HLH 37693 a

1containing 50% or more natural fruit or vegetable juice.
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 the effective date of this amendatory Act of
21the 98th General Assembly, "prescription and nonprescription
22medicines and drugs" includes medical cannabis purchased from
23a registered dispensing organization under the Compassionate
24Use of Medical Cannabis Program Act.
25    As used in this Section, "adult use cannabis" means
26cannabis subject to tax under the Cannabis Cultivation

 

 

10200SB1146sam001- 9 -LRB102 04948 HLH 37693 a

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    If the property that is purchased at retail from a
5retailer is acquired outside Illinois and used outside
6Illinois before being brought to Illinois for use here and is
7taxable under this Act, the "selling price" on which the tax is
8computed shall be reduced by an amount that represents a
9reasonable allowance for depreciation for the period of prior
10out-of-state use.
11(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
12102-4, eff. 4-27-21.)
 
13    (35 ILCS 105/3-41)
14    Sec. 3-41. Biodiesel. "Biodiesel" means a renewable diesel
15fuel substitute derived from biomass that is intended for use
16in diesel engines.
17(Source: P.A. 93-17, eff. 6-11-03.)
 
18    (35 ILCS 105/3-42.5 new)
19    Sec. 3-42.5. Renewable diesel. "Renewable diesel" means a
20hydrocarbon fuel derived from biomass meeting the requirements
21of the latest version of ASTM standards D975 or D396. Fuels
22that have been co-processed are not considered renewable
23diesel.
 

 

 

10200SB1146sam001- 10 -LRB102 04948 HLH 37693 a

1    Section 10. The Service Use Tax Act is amended by changing
2Section 3-10 as follows:
 
3    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
4    Sec. 3-10. Rate of tax. Unless otherwise provided in this
5Section, the tax imposed by this Act is at the rate of 6.25% of
6the selling price of tangible personal property transferred as
7an incident to the sale of service, but, for the purpose of
8computing this tax, in no event shall the selling price be less
9than the cost price of the property to the serviceman.
10    Beginning on July 1, 2000 and through December 31, 2000,
11with respect to motor fuel, as defined in Section 1.1 of the
12Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
13the Use Tax Act, the tax is imposed at the rate of 1.25%.
14    With respect to gasohol, as defined in the Use Tax Act, the
15tax imposed by this Act applies to (i) 70% of the selling price
16of property transferred as an incident to the sale of service
17on or after January 1, 1990, and before July 1, 2003, (ii) 80%
18of the selling price of property transferred as an incident to
19the sale of service on or after July 1, 2003 and on or before
20July 1, 2017, and (iii) 100% of the selling price thereafter.
21If, at any time, however, the tax under this Act on sales of
22gasohol, as defined in the Use Tax Act, is imposed at the rate
23of 1.25%, then the tax imposed by this Act applies to 100% of
24the proceeds of sales of gasohol made during that time.
25    With respect to majority blended ethanol fuel, as defined

 

 

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1in the Use Tax Act, the tax imposed by this Act does not apply
2to the selling price of property transferred as an incident to
3the sale of service on or after July 1, 2003 and on or before
4December 31, 2023 but applies to 100% of the selling price
5thereafter.
6    With respect to biodiesel blends, as defined in the Use
7Tax Act, with no less than 1% and no more than 10% biodiesel,
8the tax imposed by this Act applies to (i) 80% of the selling
9price of property transferred as an incident to the sale of
10service on or after July 1, 2003 and on or before December 31,
112018 and (ii) 100% of the proceeds of the selling price after
12December 31, 2018 and before January 1, 2024. On and after
13January 1, 2024, the taxation of biodiesel, renewable diesel,
14and biodiesel blends shall be as provided in Section 3-5.1 of
15the Use Tax Act thereafter. If, at any time, however, the tax
16under this Act on sales of biodiesel blends, as defined in the
17Use Tax Act, with no less than 1% and no more than 10%
18biodiesel is imposed at the rate of 1.25%, then the tax imposed
19by this Act applies to 100% of the proceeds of sales of
20biodiesel blends with no less than 1% and no more than 10%
21biodiesel made during that time.
22    With respect to 100% biodiesel, as defined in the Use Tax
23Act, and biodiesel blends, as defined in the Use Tax Act, with
24more than 10% but no more than 99% biodiesel, the tax imposed
25by this Act does not apply to the proceeds of the selling price
26of property transferred as an incident to the sale of service

 

 

10200SB1146sam001- 12 -LRB102 04948 HLH 37693 a

1on or after July 1, 2003 and on or before December 31, 2023 but
2applies to 100% of the selling price thereafter. On and after
3January 1, 2024, the taxation of biodiesel, renewable diesel,
4and biodiesel blends shall be as provided in Section 3-5.1 of
5the Use Tax Act.
6    At the election of any registered serviceman made for each
7fiscal year, sales of service in which the aggregate annual
8cost price of tangible personal property transferred as an
9incident to the sales of service is less than 35%, or 75% in
10the case of servicemen transferring prescription drugs or
11servicemen engaged in graphic arts production, of the
12aggregate annual total gross receipts from all sales of
13service, the tax imposed by this Act shall be based on the
14serviceman's cost price of the tangible personal property
15transferred as an incident to the sale of those services.
16    The tax shall be imposed at the rate of 1% on food prepared
17for immediate consumption and transferred incident to a sale
18of service subject to this Act or the Service Occupation Tax
19Act by an entity licensed under the Hospital Licensing Act,
20the Nursing Home Care Act, the Assisted Living and Shared
21Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
22Specialized Mental Health Rehabilitation Act of 2013, or the
23Child Care Act of 1969, or an entity that holds a permit issued
24pursuant to the Life Care Facilities Act. The tax shall also be
25imposed at the rate of 1% on food for human consumption that is
26to be consumed off the premises where it is sold (other than

 

 

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

 

 

10200SB1146sam001- 14 -LRB102 04948 HLH 37693 a

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

 

 

10200SB1146sam001- 15 -LRB102 04948 HLH 37693 a

1beginning September 1, 2009, "nonprescription medicines and
2drugs" does not include grooming and hygiene products. For
3purposes of this Section, "grooming and hygiene products"
4includes, but is not limited to, soaps and cleaning solutions,
5shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
6lotions and screens, unless those products are available by
7prescription only, regardless of whether the products meet the
8definition of "over-the-counter-drugs". For the purposes of
9this paragraph, "over-the-counter-drug" means a drug for human
10use that contains a label that identifies the product as a drug
11as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
12label 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    Beginning on January 1, 2014 (the effective date of Public
18Act 98-122), "prescription and nonprescription medicines and
19drugs" includes medical cannabis purchased from a registered
20dispensing organization under the Compassionate Use of Medical
21Cannabis Program Act.
22    As used in this Section, "adult use cannabis" means
23cannabis subject to tax under the Cannabis Cultivation
24Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
25and does not include cannabis subject to tax under the
26Compassionate Use of Medical Cannabis Program Act.

 

 

10200SB1146sam001- 16 -LRB102 04948 HLH 37693 a

1    If the property that is acquired from a serviceman is
2acquired outside Illinois and used outside Illinois before
3being brought to Illinois for use here and is taxable under
4this Act, the "selling price" on which the tax is computed
5shall be reduced by an amount that represents a reasonable
6allowance for depreciation for the period of prior
7out-of-state use.
8(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
9102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
10    Section 15. The Service Occupation Tax Act is amended by
11changing Section 3-10 as follows:
 
12    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
13    Sec. 3-10. Rate of tax. Unless otherwise provided in this
14Section, the tax imposed by this Act is at the rate of 6.25% of
15the "selling price", as defined in Section 2 of the Service Use
16Tax Act, of the tangible personal property. For the purpose of
17computing this tax, in no event shall the "selling price" be
18less than the cost price to the serviceman of the tangible
19personal property transferred. The selling price of each item
20of tangible personal property transferred as an incident of a
21sale of service may be shown as a distinct and separate item on
22the serviceman's billing to the service customer. If the
23selling price is not so shown, the selling price of the
24tangible personal property is deemed to be 50% of the

 

 

10200SB1146sam001- 17 -LRB102 04948 HLH 37693 a

1serviceman's entire billing to the service customer. When,
2however, a serviceman contracts to design, develop, and
3produce special order machinery or equipment, the tax imposed
4by this Act shall be based on the serviceman's cost price of
5the tangible personal property transferred incident to the
6completion of the contract.
7    Beginning on July 1, 2000 and through December 31, 2000,
8with respect to motor fuel, as defined in Section 1.1 of the
9Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
10the Use Tax Act, the tax is imposed at the rate of 1.25%.
11    With respect to gasohol, as defined in the Use Tax Act, the
12tax imposed by this Act shall apply to (i) 70% of the cost
13price of property transferred as an incident to the sale of
14service on or after January 1, 1990, and before July 1, 2003,
15(ii) 80% of the selling price of property transferred as an
16incident to the sale of service on or after July 1, 2003 and on
17or before July 1, 2017, and (iii) 100% of the cost price
18thereafter. If, at any time, however, the tax under this Act on
19sales of gasohol, as defined in the Use Tax Act, is imposed at
20the rate of 1.25%, then the tax imposed by this Act applies to
21100% of the proceeds of sales of gasohol made during that time.
22    With respect to majority blended ethanol fuel, as defined
23in the Use Tax Act, the tax imposed by this Act does not apply
24to the selling price of property transferred as an incident to
25the sale of service on or after July 1, 2003 and on or before
26December 31, 2023 but applies to 100% of the selling price

 

 

10200SB1146sam001- 18 -LRB102 04948 HLH 37693 a

1thereafter.
2    With respect to biodiesel blends, as defined in the Use
3Tax Act, with no less than 1% and no more than 10% biodiesel,
4the tax imposed by this Act applies to (i) 80% of the selling
5price of property transferred as an incident to the sale of
6service on or after July 1, 2003 and on or before December 31,
72018 and (ii) 100% of the proceeds of the selling price after
8December 31, 2018 and before January 1, 2024. On and after
9January 1, 2024, the taxation of biodiesel, renewable diesel,
10and biodiesel blends shall be as provided in Section 3-5.1 of
11the Use Tax Act thereafter. If, at any time, however, the tax
12under this Act on sales of biodiesel blends, as defined in the
13Use Tax Act, with no less than 1% and no more than 10%
14biodiesel is imposed at the rate of 1.25%, then the tax imposed
15by this Act applies to 100% of the proceeds of sales of
16biodiesel blends with no less than 1% and no more than 10%
17biodiesel made during that time.
18    With respect to 100% biodiesel, as defined in the Use Tax
19Act, and biodiesel blends, as defined in the Use Tax Act, with
20more than 10% but no more than 99% biodiesel material, the tax
21imposed by this Act does not apply to the proceeds of the
22selling price of property transferred as an incident to the
23sale of service on or after July 1, 2003 and on or before
24December 31, 2023 but applies to 100% of the selling price
25thereafter. On and after January 1, 2024, the taxation of
26biodiesel, renewable diesel, and biodiesel blends shall be as

 

 

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1provided in Section 3-5.1 of the Use Tax Act.
2    At the election of any registered serviceman made for each
3fiscal year, sales of service in which the aggregate annual
4cost price of tangible personal property transferred as an
5incident to the sales of service is less than 35%, or 75% in
6the case of servicemen transferring prescription drugs or
7servicemen engaged in graphic arts production, of the
8aggregate annual total gross receipts from all sales of
9service, the tax imposed by this Act shall be based on the
10serviceman's cost price of the tangible personal property
11transferred incident to the sale of those services.
12    The tax shall be imposed at the rate of 1% on food prepared
13for immediate consumption and transferred incident to a sale
14of service subject to this Act or the Service Occupation Tax
15Act by an entity licensed under the Hospital Licensing Act,
16the Nursing Home Care Act, the Assisted Living and Shared
17Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
18Specialized Mental Health Rehabilitation Act of 2013, or the
19Child Care Act of 1969, or an entity that holds a permit issued
20pursuant to the Life Care Facilities Act. The tax shall also be
21imposed at the rate of 1% on food for human consumption that is
22to be consumed off the premises where it is sold (other than
23alcoholic beverages, food consisting of or infused with adult
24use cannabis, soft drinks, and food that has been prepared for
25immediate consumption and is not otherwise included in this
26paragraph) and prescription and nonprescription medicines,

 

 

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1drugs, medical appliances, products classified as Class III
2medical 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. For the
9purposes of this Section, until September 1, 2009: the term
10"soft drinks" means any complete, finished, ready-to-use,
11non-alcoholic drink, whether carbonated or not, including but
12not limited to soda water, cola, fruit juice, vegetable juice,
13carbonated water, and all other preparations commonly known as
14soft drinks of whatever kind or description that are contained
15in any closed or sealed can, carton, or container, regardless
16of size; but "soft drinks" does not include coffee, tea,
17non-carbonated water, infant formula, milk or milk products as
18defined in the Grade A Pasteurized Milk and Milk Products Act,
19or drinks containing 50% or more natural fruit or vegetable
20juice.
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.

 

 

10200SB1146sam001- 21 -LRB102 04948 HLH 37693 a

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,

 

 

10200SB1146sam001- 22 -LRB102 04948 HLH 37693 a

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 January 1, 2014 (the effective date of Public
14Act 98-122), "prescription and nonprescription medicines and
15drugs" includes medical cannabis purchased from a registered
16dispensing organization under the Compassionate Use of Medical
17Cannabis 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; 102-16, eff. 6-17-21.)
 
25    Section 20. The Retailers' Occupation Tax Act is amended

 

 

10200SB1146sam001- 23 -LRB102 04948 HLH 37693 a

1by changing Section 2-10 as follows:
 
2    (35 ILCS 120/2-10)
3    Sec. 2-10. Rate of tax. Unless otherwise provided in this
4Section, the tax imposed by this Act is at the rate of 6.25% of
5gross receipts from sales of tangible personal property made
6in the course of business.
7    Beginning on July 1, 2000 and through December 31, 2000,
8with respect to motor fuel, as defined in Section 1.1 of the
9Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
10the Use Tax Act, the tax is imposed at the rate of 1.25%.
11    Beginning on August 6, 2010 through August 15, 2010, with
12respect to sales tax holiday items as defined in Section 2-8 of
13this Act, the tax is imposed at the rate of 1.25%.
14    Within 14 days after the effective date of this amendatory
15Act of the 91st General Assembly, each retailer of motor fuel
16and gasohol shall cause the following notice to be posted in a
17prominently visible place on each retail dispensing device
18that is used to dispense motor fuel or gasohol in the State of
19Illinois: "As of July 1, 2000, the State of Illinois has
20eliminated the State's share of sales tax on motor fuel and
21gasohol through December 31, 2000. The price on this pump
22should reflect the elimination of the tax." The notice shall
23be printed in bold print on a sign that is no smaller than 4
24inches by 8 inches. The sign shall be clearly visible to
25customers. Any retailer who fails to post or maintain a

 

 

10200SB1146sam001- 24 -LRB102 04948 HLH 37693 a

1required sign through December 31, 2000 is guilty of a petty
2offense for which the fine shall be $500 per day per each
3retail premises where a violation occurs.
4    With respect to gasohol, as defined in the Use Tax Act, the
5tax imposed by this Act applies to (i) 70% of the proceeds of
6sales made on or after January 1, 1990, and before July 1,
72003, (ii) 80% of the proceeds of sales made on or after July
81, 2003 and on or before July 1, 2017, and (iii) 100% of the
9proceeds of sales made thereafter. If, at any time, however,
10the tax under this Act on sales of gasohol, as defined in the
11Use Tax Act, is imposed at the rate of 1.25%, then the tax
12imposed by this Act applies to 100% of the proceeds of sales of
13gasohol made during that time.
14    With respect to majority blended ethanol fuel, as defined
15in the Use Tax Act, the tax imposed by this Act does not apply
16to the proceeds of sales made on or after July 1, 2003 and on
17or before December 31, 2023 but applies to 100% of the proceeds
18of sales made thereafter.
19    With respect to biodiesel blends, as defined in the Use
20Tax Act, with no less than 1% and no more than 10% biodiesel,
21the tax imposed by this Act applies to (i) 80% of the proceeds
22of sales made on or after July 1, 2003 and on or before
23December 31, 2018 and (ii) 100% of the proceeds of sales made
24after December 31, 2018 and before January 1, 2024. On and
25after January 1, 2024, the taxation of biodiesel, renewable
26diesel, and biodiesel blends shall be as provided in Section

 

 

10200SB1146sam001- 25 -LRB102 04948 HLH 37693 a

13-5.1 of the Use Tax Act thereafter. If, at any time, however,
2the tax under this Act on sales of biodiesel blends, as defined
3in the Use Tax Act, with no less than 1% and no more than 10%
4biodiesel is imposed at the rate of 1.25%, then the tax imposed
5by this Act applies to 100% of the proceeds of sales of
6biodiesel blends with no less than 1% and no more than 10%
7biodiesel made during that time.
8    With respect to 100% biodiesel, as defined in the Use Tax
9Act, and biodiesel blends, as defined in the Use Tax Act, with
10more than 10% but no more than 99% biodiesel, the tax imposed
11by this Act does not apply to the proceeds of sales made on or
12after July 1, 2003 and on or before December 31, 2023 but
13applies to 100% of the proceeds of sales made thereafter. On
14and after January 1, 2024, the taxation of biodiesel,
15renewable diesel, and biodiesel blends shall be as provided in
16Section 3-5.1 of the Use Tax Act.
17    With respect to food for human consumption that is to be
18consumed off the premises where it is sold (other than
19alcoholic beverages, food consisting of or infused with adult
20use cannabis, soft drinks, and food that has been prepared for
21immediate consumption) and prescription and nonprescription
22medicines, drugs, medical appliances, products classified as
23Class III medical devices by the United States Food and Drug
24Administration that are used for cancer treatment pursuant to
25a prescription, as well as any accessories and components
26related to those devices, modifications to a motor vehicle for

 

 

10200SB1146sam001- 26 -LRB102 04948 HLH 37693 a

1the purpose of rendering it usable by a person with a
2disability, and insulin, blood sugar testing materials,
3syringes, and needles used by human diabetics, the tax is
4imposed at the rate of 1%. For the purposes of this Section,
5until September 1, 2009: the term "soft drinks" means any
6complete, finished, ready-to-use, non-alcoholic drink, whether
7carbonated or not, including but not limited to soda water,
8cola, fruit juice, vegetable juice, carbonated water, and all
9other preparations commonly known as soft drinks of whatever
10kind or description that are contained in any closed or sealed
11bottle, can, carton, or container, regardless of size; but
12"soft drinks" does not include coffee, tea, non-carbonated
13water, infant formula, milk or milk products as defined in the
14Grade A Pasteurized Milk and Milk Products Act, or drinks
15containing 50% or more natural fruit or vegetable juice.
16    Notwithstanding any other provisions of this Act,
17beginning September 1, 2009, "soft drinks" means non-alcoholic
18beverages that contain natural or artificial sweeteners. "Soft
19drinks" do not include beverages that contain milk or milk
20products, soy, rice or similar milk substitutes, or greater
21than 50% of vegetable or fruit juice by volume.
22    Until August 1, 2009, and notwithstanding any other
23provisions of this Act, "food for human consumption that is to
24be consumed off the premises where it is sold" includes all
25food sold through a vending machine, except soft drinks and
26food products that are dispensed hot from a vending machine,

 

 

10200SB1146sam001- 27 -LRB102 04948 HLH 37693 a

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

 

 

10200SB1146sam001- 28 -LRB102 04948 HLH 37693 a

1use that contains a label that identifies the product as a drug
2as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
3label includes:
4        (A) A "Drug Facts" panel; or
5        (B) A statement of the "active ingredient(s)" with a
6    list of those ingredients contained in the compound,
7    substance or preparation.
8    Beginning on the effective date of this amendatory Act of
9the 98th General Assembly, "prescription and nonprescription
10medicines and drugs" includes medical cannabis purchased from
11a registered dispensing organization under the Compassionate
12Use of Medical Cannabis Program Act.
13    As used in this Section, "adult use cannabis" means
14cannabis subject to tax under the Cannabis Cultivation
15Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
16and does not include cannabis subject to tax under the
17Compassionate Use of Medical Cannabis Program Act.
18(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
19102-4, eff. 4-27-21.)
 
20    Section 25. The Motor Fuel Tax Law is amended by adding
21Section 3d as follows:
 
22    (35 ILCS 505/3d new)
23    Sec. 3d. Right to blend.
24    (a) A distributor who is properly licensed and permitted

 

 

10200SB1146sam001- 29 -LRB102 04948 HLH 37693 a

1as a blender pursuant to this Act may blend petroleum-based
2diesel fuel with biodiesel and sell the blended or unblended
3product on any premises owned and operated by the distributor
4for the purpose of supporting or facilitating the retail sale
5of motor fuel.
6    (b) A refiner or supplier of petroleum-based diesel fuel
7or biodiesel shall not refuse to sell or transport to a
8distributor who is properly licensed and permitted as a
9blender pursuant to this Act any petroleum-based diesel fuel
10or biodiesel based on the distributor's or dealer's intent to
11use that product for blending.
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.".