Full Text of SB3596 102nd General Assembly
SB3596sam001 102ND GENERAL ASSEMBLY | Sen. Patrick J. Joyce Filed: 2/7/2022
| | 10200SB3596sam001 | | LRB102 23331 HLH 35807 a |
|
| 1 | | AMENDMENT TO SENATE BILL 3596
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 3596 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Use Tax Act is amended by changing Section | 5 | | 3-10 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 | 14 | | functionally used or consumed is a
by-product or waste product | 15 | | that has been refined, manufactured, or produced
from property | 16 | | purchased at retail, then the tax is imposed on the lower of |
| | | 10200SB3596sam001 | - 2 - | LRB102 23331 HLH 35807 a |
|
| 1 | | the
fair market value, if any, of the specific property so used | 2 | | in this State or on
the selling price of the property purchased | 3 | | at retail. For purposes of this
Section "fair market value" | 4 | | means the price at which property would change
hands between a | 5 | | willing buyer and a willing seller, neither being under any
| 6 | | compulsion to buy or sell and both having reasonable knowledge | 7 | | of the
relevant facts. The fair market value shall be | 8 | | established by Illinois sales by
the taxpayer of the same | 9 | | property as that functionally used or consumed, or if
there | 10 | | are no such sales by the taxpayer, then comparable sales or | 11 | | purchases of
property of like kind and character in Illinois.
| 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 | | Beginning on August 6, 2010 through August 15, 2010, with | 17 | | respect to sales tax holiday items as defined in Section 3-6 of | 18 | | 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 July 1, 2017, and (iii) 100% of the proceeds of sales | 24 | | made
thereafter.
If, at any time, however, the tax under this | 25 | | Act on sales of gasohol is
imposed at the
rate of 1.25%, then | 26 | | the tax imposed by this Act applies to 100% of the proceeds
of |
| | | 10200SB3596sam001 | - 3 - | LRB102 23331 HLH 35807 a |
|
| 1 | | 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 | | 2023 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, 2018
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
June 30, 2023 December 31, | 21 | | 2023 but , except as otherwise provided in this paragraph with | 22 | | respect to 100% biodiesel and biodiesel
blends with more than | 23 | | 19% but no more than 99% biodiesel, applies to 100% of the | 24 | | proceeds of sales made
thereafter. With respect to 100% | 25 | | biodiesel and biodiesel
blends with more than 19% but no more | 26 | | than 99% biodiesel, the
tax imposed by this Act does not apply |
| | | 10200SB3596sam001 | - 4 - | LRB102 23331 HLH 35807 a |
|
| 1 | | to proceeds of sales
made on or after July 1, 2023.
| 2 | | With respect to food for human consumption that is to be | 3 | | consumed off the
premises where it is sold (other than | 4 | | alcoholic beverages, food consisting of or infused with adult | 5 | | use cannabis, soft drinks, and
food that has been prepared for | 6 | | immediate consumption) and prescription and
nonprescription | 7 | | medicines, drugs, medical appliances, products classified as | 8 | | Class III medical devices by the United States Food and Drug | 9 | | Administration that are used for cancer treatment pursuant to | 10 | | a prescription, as well as any accessories and components | 11 | | related to those devices, modifications to a motor
vehicle for | 12 | | the purpose of rendering it usable by a person with a | 13 | | disability, and
insulin, blood sugar testing materials, | 14 | | syringes, and needles used by human diabetics, the tax is | 15 | | imposed at the rate of 1%. For the purposes of this
Section, | 16 | | until September 1, 2009: the term "soft drinks" means any | 17 | | complete, finished, ready-to-use,
non-alcoholic drink, whether | 18 | | carbonated or not, including but not limited to
soda water, | 19 | | cola, fruit juice, vegetable juice, carbonated water, and all | 20 | | other
preparations commonly known as soft drinks of whatever | 21 | | kind or description that
are contained in any closed or sealed | 22 | | bottle, can, carton, or container,
regardless of size; but | 23 | | "soft drinks" does not include coffee, tea, non-carbonated
| 24 | | water, infant formula, milk or milk products as defined in the | 25 | | Grade A
Pasteurized Milk and Milk Products Act, or drinks | 26 | | containing 50% or more
natural fruit or vegetable juice.
|
| | | 10200SB3596sam001 | - 5 - | LRB102 23331 HLH 35807 a |
|
| 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 | 25 | | other ingredients or flavorings in the form of bars, drops, or | 26 | | pieces. "Candy" does not include any preparation that contains |
| | | 10200SB3596sam001 | - 6 - | LRB102 23331 HLH 35807 a |
|
| 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 the effective date of this amendatory Act of | 20 | | the 98th General Assembly, "prescription and nonprescription | 21 | | medicines and drugs" includes medical cannabis purchased from | 22 | | a registered dispensing organization under the Compassionate | 23 | | Use of Medical Cannabis Program Act. | 24 | | As used in this Section, "adult use cannabis" means | 25 | | cannabis subject to tax under the Cannabis Cultivation | 26 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law |
| | | 10200SB3596sam001 | - 7 - | LRB102 23331 HLH 35807 a |
|
| 1 | | and does not include cannabis subject to tax under the | 2 | | Compassionate Use of Medical Cannabis Program Act. | 3 | | If the property that is purchased at retail from a | 4 | | retailer is acquired
outside Illinois and used outside | 5 | | Illinois before being brought to Illinois
for use here and is | 6 | | taxable under this Act, the "selling price" on which
the tax is | 7 | | computed shall be reduced by an amount that represents a
| 8 | | reasonable allowance for depreciation for the period of prior | 9 | | out-of-state use.
| 10 | | (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19; | 11 | | 102-4, eff. 4-27-21.)
| 12 | | Section 10. The Service Use Tax Act is amended by changing | 13 | | Section 3-10 as follows:
| 14 | | (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
| 15 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this | 16 | | Section,
the tax imposed by this Act is at the rate of 6.25% of | 17 | | the selling
price of tangible personal property transferred as | 18 | | an incident to the sale
of service, but, for the purpose of | 19 | | computing this tax, in no event shall
the selling price be less | 20 | | than the cost price of the property to the
serviceman.
| 21 | | Beginning on July 1, 2000 and through December 31, 2000, | 22 | | with respect to
motor fuel, as defined in Section 1.1 of the | 23 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 24 | | the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
|
| | | 10200SB3596sam001 | - 8 - | LRB102 23331 HLH 35807 a |
|
| 1 | | With respect to gasohol, as defined in the Use Tax Act, the | 2 | | tax imposed
by this Act applies to (i) 70% of the selling price | 3 | | of property transferred
as an incident to the sale of service | 4 | | on or after January 1, 1990,
and before July 1, 2003, (ii) 80% | 5 | | of the selling price of
property transferred as an incident to | 6 | | the sale of service on or after July
1, 2003 and on or before | 7 | | July 1, 2017, and (iii)
100% of the selling price thereafter.
| 8 | | If, at any time, however, the tax under this Act on sales of | 9 | | gasohol, as
defined in
the Use Tax Act, is imposed at the rate | 10 | | of 1.25%, then the
tax imposed by this Act applies to 100% of | 11 | | the proceeds of sales of gasohol
made during that time.
| 12 | | With respect to majority blended ethanol fuel, as defined | 13 | | in the Use Tax Act,
the
tax
imposed by this Act does not apply | 14 | | to the selling price of property transferred
as an incident to | 15 | | the sale of service on or after July 1, 2003 and on or before
| 16 | | December 31, 2023 but applies to 100% of the selling price | 17 | | thereafter.
| 18 | | With respect to biodiesel blends, as defined in the Use | 19 | | Tax Act, with no less
than 1% and no
more than 10% biodiesel, | 20 | | the tax imposed by this Act
applies to (i) 80% of the selling | 21 | | price of property transferred as an incident
to the sale of | 22 | | service on or after July 1, 2003 and on or before December 31, | 23 | | 2018
and (ii) 100% of the proceeds of the selling price
| 24 | | thereafter.
If, at any time, however, the tax under this Act on | 25 | | sales of biodiesel blends,
as
defined in the Use Tax Act, with | 26 | | no less than 1% and no more than 10% biodiesel
is imposed at |
| | | 10200SB3596sam001 | - 9 - | LRB102 23331 HLH 35807 a |
|
| 1 | | the rate of 1.25%, then the
tax imposed by this Act applies to | 2 | | 100% of the proceeds of sales of biodiesel
blends with no less | 3 | | than 1% and no more than 10% biodiesel
made
during that time.
| 4 | | With respect to 100% biodiesel, as defined in the Use Tax | 5 | | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| 6 | | more than 10% but no more than 99% biodiesel, the tax imposed | 7 | | by this Act
does not apply to the proceeds of the selling price | 8 | | of property transferred
as an incident to the sale of service | 9 | | on or after July 1, 2003 and on or before
June 30, 2023 | 10 | | December 31, 2023 but , except as otherwise provided in this | 11 | | paragraph with respect to 100% biodiesel and biodiesel
blends | 12 | | with more than 19% but no more than 99% biodiesel, applies to | 13 | | 100% of the selling price thereafter. With respect to 100% | 14 | | biodiesel, as defined in the
Use Tax Act, and biodiesel | 15 | | blends, as defined in the Use Tax
Act, with more than 19% but | 16 | | no more than 99% biodiesel, the tax
imposed by this Act does | 17 | | not apply to proceeds of sales made on
or after July 1, 2023.
| 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 | 24 | | aggregate
annual total gross receipts from all sales of | 25 | | service, the tax imposed by
this Act shall be based on the | 26 | | serviceman's cost price of the tangible
personal property |
| | | 10200SB3596sam001 | - 10 - | LRB102 23331 HLH 35807 a |
|
| 1 | | transferred as an 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 | 4 | | of service subject
to this Act or the Service Occupation Tax | 5 | | Act by an entity licensed under
the Hospital Licensing Act, | 6 | | the Nursing Home Care Act, the Assisted Living and Shared | 7 | | Housing Act, the ID/DD Community Care Act, the MC/DD Act, the | 8 | | Specialized Mental Health Rehabilitation Act of 2013, or the
| 9 | | Child Care
Act of 1969, or an entity that holds a permit issued | 10 | | pursuant to the Life Care Facilities Act. The tax shall
also be | 11 | | imposed at the rate of 1% on food for human consumption that is | 12 | | to be
consumed off the premises where it is sold (other than | 13 | | alcoholic beverages, food consisting of or infused with adult | 14 | | use cannabis,
soft drinks, and food that has been prepared for | 15 | | immediate consumption and is
not otherwise included in this | 16 | | paragraph) and prescription and nonprescription
medicines, | 17 | | drugs, medical appliances, products classified as Class III | 18 | | medical devices by the United States Food and Drug | 19 | | Administration that are used for cancer treatment pursuant to | 20 | | a prescription, as well as any accessories and components | 21 | | related to those devices, modifications to a motor vehicle for | 22 | | the
purpose of rendering it usable by a person with a | 23 | | disability, and insulin, blood sugar testing
materials,
| 24 | | syringes, and needles used by human diabetics. For the | 25 | | purposes of this Section, until September 1, 2009: the term | 26 | | "soft drinks" means any
complete, finished, ready-to-use, |
| | | 10200SB3596sam001 | - 11 - | LRB102 23331 HLH 35807 a |
|
| 1 | | non-alcoholic drink, whether carbonated or
not, including but | 2 | | not limited to soda water, cola, fruit juice, vegetable
juice, | 3 | | carbonated water, and all other preparations commonly known as | 4 | | soft
drinks of whatever kind or description that are contained | 5 | | in any closed or
sealed bottle, can, carton, or container, | 6 | | regardless of size; but "soft drinks"
does not include coffee, | 7 | | tea, non-carbonated water, infant formula, milk or
milk | 8 | | products as defined in the Grade A Pasteurized Milk and Milk | 9 | | Products Act,
or drinks containing 50% or more natural fruit | 10 | | or vegetable juice.
| 11 | | Notwithstanding any other provisions of this
Act, | 12 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 13 | | beverages that contain natural or artificial sweeteners. "Soft | 14 | | drinks" do not include beverages that contain milk or milk | 15 | | products, soy, rice or similar milk substitutes, or greater | 16 | | than 50% of vegetable or fruit juice by volume. | 17 | | Until August 1, 2009, and notwithstanding any other | 18 | | provisions of this Act, "food for human
consumption that is to | 19 | | be consumed off the premises where it is sold" includes
all | 20 | | food sold through a vending machine, except soft drinks and | 21 | | food products
that are dispensed hot from a vending machine, | 22 | | regardless of the location of
the vending machine. Beginning | 23 | | August 1, 2009, and notwithstanding any other provisions of | 24 | | this Act, "food for human consumption that is to be consumed | 25 | | off the premises where it is sold" includes all food sold | 26 | | through a vending machine, except soft drinks, candy, and food |
| | | 10200SB3596sam001 | - 12 - | LRB102 23331 HLH 35807 a |
|
| 1 | | products that are dispensed hot from a vending machine, | 2 | | regardless of the location of the vending machine.
| 3 | | Notwithstanding any other provisions of this
Act, | 4 | | beginning September 1, 2009, "food for human consumption that | 5 | | is to be consumed off the premises where
it is sold" does not | 6 | | include candy. For purposes of this Section, "candy" means a | 7 | | preparation of sugar, honey, or other natural or artificial | 8 | | sweeteners in combination with chocolate, fruits, nuts or | 9 | | other ingredients or flavorings in the form of bars, drops, or | 10 | | pieces. "Candy" does not include any preparation that contains | 11 | | flour or requires refrigeration. | 12 | | Notwithstanding any other provisions of this
Act, | 13 | | beginning September 1, 2009, "nonprescription medicines and | 14 | | drugs" does not include grooming and hygiene products. For | 15 | | purposes of this Section, "grooming and hygiene products" | 16 | | includes, but is not limited to, soaps and cleaning solutions, | 17 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 18 | | lotions and screens, unless those products are available by | 19 | | prescription only, regardless of whether the products meet the | 20 | | definition of "over-the-counter-drugs". For the purposes of | 21 | | this paragraph, "over-the-counter-drug" means a drug for human | 22 | | use that contains a label that identifies the product as a drug | 23 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 24 | | label includes: | 25 | | (A) A "Drug Facts" panel; or | 26 | | (B) A statement of the "active ingredient(s)" with a |
| | | 10200SB3596sam001 | - 13 - | LRB102 23331 HLH 35807 a |
|
| 1 | | list of those ingredients contained in the compound, | 2 | | substance or preparation. | 3 | | Beginning on January 1, 2014 (the effective date of Public | 4 | | Act 98-122), "prescription and nonprescription medicines and | 5 | | drugs" includes medical cannabis purchased from a registered | 6 | | dispensing organization under the Compassionate Use of Medical | 7 | | Cannabis Program Act. | 8 | | As used in this Section, "adult use cannabis" means | 9 | | cannabis subject to tax under the Cannabis Cultivation | 10 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law | 11 | | and does not include cannabis subject to tax under the | 12 | | Compassionate Use of Medical Cannabis Program Act. | 13 | | If the property that is acquired from a serviceman is | 14 | | acquired outside
Illinois and used outside Illinois before | 15 | | being brought to Illinois for use
here and is taxable under | 16 | | this Act, the "selling price" on which the tax
is computed | 17 | | shall be reduced by an amount that represents a reasonable
| 18 | | allowance for depreciation for the period of prior | 19 | | out-of-state use.
| 20 | | (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19; | 21 | | 102-4, eff. 4-27-21; 102-16, eff. 6-17-21.) | 22 | | Section 15. The Service Occupation Tax Act is amended by | 23 | | changing Section 3-10 as follows:
| 24 | | (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
|
| | | 10200SB3596sam001 | - 14 - | LRB102 23331 HLH 35807 a |
|
| 1 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this | 2 | | Section,
the tax imposed by this Act is at the rate of 6.25% of | 3 | | the "selling price",
as defined in Section 2 of the Service Use | 4 | | Tax Act, of the tangible
personal property. For the purpose of | 5 | | computing this tax, in no event
shall the "selling price" be | 6 | | less than the cost price to the serviceman of
the tangible | 7 | | personal property transferred. The selling price of each item
| 8 | | of tangible personal property transferred as an incident of a | 9 | | sale of
service may be shown as a distinct and separate item on | 10 | | the serviceman's
billing to the service customer. If the | 11 | | selling price is not so shown, the
selling price of the | 12 | | tangible personal property is deemed to be 50% of the
| 13 | | serviceman's entire billing to the service customer. When, | 14 | | however, a
serviceman contracts to design, develop, and | 15 | | produce special order machinery or
equipment, the tax imposed | 16 | | by this Act shall be based on the serviceman's
cost price of | 17 | | the tangible personal property transferred incident to the
| 18 | | completion of the contract.
| 19 | | Beginning on July 1, 2000 and through December 31, 2000, | 20 | | with respect to
motor fuel, as defined in Section 1.1 of the | 21 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 22 | | the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
| 23 | | With respect to gasohol, as defined in the Use Tax Act, the | 24 | | tax imposed
by this Act shall apply to (i) 70% of the cost | 25 | | price of property
transferred as
an incident to the sale of | 26 | | service on or after January 1, 1990, and before
July 1, 2003, |
| | | 10200SB3596sam001 | - 15 - | LRB102 23331 HLH 35807 a |
|
| 1 | | (ii) 80% of the selling price of property transferred as an
| 2 | | incident to the sale of service on or after July
1, 2003 and on | 3 | | or before July 1, 2017, and (iii) 100%
of
the cost price
| 4 | | thereafter.
If, at any time, however, the tax under this Act on | 5 | | sales of gasohol, as
defined in
the Use Tax Act, is imposed at | 6 | | the rate of 1.25%, then the
tax imposed by this Act applies to | 7 | | 100% of the proceeds of 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 selling price of property transferred
as an incident to | 11 | | the sale of service on or after July 1, 2003 and on or before
| 12 | | December 31, 2023 but applies to 100% of the selling price | 13 | | thereafter.
| 14 | | With respect to biodiesel blends, as defined in the Use | 15 | | Tax Act, with no less
than 1% and no
more than 10% biodiesel, | 16 | | the tax imposed by this Act
applies to (i) 80% of the selling | 17 | | price of property transferred as an incident
to the sale of | 18 | | service on or after July 1, 2003 and on or before December 31, | 19 | | 2018
and (ii) 100% of the proceeds of the selling price
| 20 | | thereafter.
If, at any time, however, the tax under this Act on | 21 | | sales of biodiesel blends,
as
defined in the Use Tax Act, with | 22 | | no less than 1% and no more than 10% biodiesel
is imposed at | 23 | | the rate of 1.25%, then the
tax imposed by this Act applies to | 24 | | 100% of the proceeds of sales of biodiesel
blends with no less | 25 | | than 1% and no more than 10% biodiesel
made
during that time.
| 26 | | With respect to 100% biodiesel, as defined in the Use Tax |
| | | 10200SB3596sam001 | - 16 - | LRB102 23331 HLH 35807 a |
|
| 1 | | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| 2 | | more than 10% but no more than 99% biodiesel material, the tax | 3 | | imposed by this
Act
does not apply to the proceeds of the | 4 | | selling price of property transferred
as an incident to the | 5 | | sale of service on or after July 1, 2003 and on or before
June | 6 | | 30, 2023 December 31, 2023 but , except as otherwise provided | 7 | | in this paragraph with respect to 100% biodiesel and biodiesel
| 8 | | blends with more than 19% but no more than 99% biodiesel, | 9 | | applies to 100% of the selling price thereafter. With respect | 10 | | to 100% biodiesel, as defined
in the Use Tax Act, and biodiesel | 11 | | blends, as defined in the Use
Tax Act, with more than 19% but | 12 | | no more than 99% biodiesel, the
tax imposed by this Act does | 13 | | not apply to proceeds of sales
made on or after July 1, 2023.
| 14 | | At the election of any registered serviceman made for each | 15 | | fiscal year,
sales of service in which the aggregate annual | 16 | | cost price of tangible
personal property transferred as an | 17 | | incident to the sales of service is
less than 35%, or 75% in | 18 | | the case of servicemen transferring prescription
drugs or | 19 | | servicemen engaged in graphic arts production, of the | 20 | | aggregate
annual total gross receipts from all sales of | 21 | | service, the tax imposed by
this Act shall be based on the | 22 | | serviceman's cost price of the tangible
personal property | 23 | | transferred incident to the sale of those services.
| 24 | | The tax shall be imposed at the rate of 1% on food prepared | 25 | | for
immediate consumption and transferred incident to a sale | 26 | | of service subject
to this Act or the Service Occupation Tax |
| | | 10200SB3596sam001 | - 17 - | LRB102 23331 HLH 35807 a |
|
| 1 | | Act by an entity licensed under
the Hospital Licensing Act, | 2 | | the Nursing Home Care Act, the Assisted Living and Shared | 3 | | Housing Act, the ID/DD Community Care Act, the MC/DD Act, the | 4 | | Specialized Mental Health Rehabilitation Act of 2013, or the
| 5 | | Child Care Act of 1969, or an entity that holds a permit issued | 6 | | pursuant to the Life Care Facilities Act. The tax shall
also be | 7 | | imposed at the rate of 1% on food for human consumption that is
| 8 | | to be consumed off the
premises where it is sold (other than | 9 | | alcoholic beverages, food consisting of or infused with adult | 10 | | use cannabis, soft drinks, and
food that has been prepared for | 11 | | immediate consumption and is not
otherwise included in this | 12 | | paragraph) and prescription and
nonprescription medicines, | 13 | | drugs, medical appliances, products classified as Class III | 14 | | medical devices by the United States Food and Drug | 15 | | Administration that are used for cancer treatment pursuant to | 16 | | a prescription, as well as any accessories and components | 17 | | related to those devices, modifications to a motor
vehicle for | 18 | | the purpose of rendering it usable by a person with a | 19 | | disability, and
insulin, blood sugar testing materials, | 20 | | syringes, and needles used by human diabetics. For the | 21 | | purposes of this Section, until September 1, 2009: the term | 22 | | "soft drinks" means any
complete, finished, ready-to-use, | 23 | | non-alcoholic drink, whether carbonated or
not, including but | 24 | | not limited to soda water, cola, fruit juice, vegetable
juice, | 25 | | carbonated water, and all other preparations commonly known as | 26 | | soft
drinks of whatever kind or description that are contained |
| | | 10200SB3596sam001 | - 18 - | LRB102 23331 HLH 35807 a |
|
| 1 | | in any closed or
sealed can, carton, or container, regardless | 2 | | of size; but "soft drinks" does not
include coffee, tea, | 3 | | non-carbonated water, infant formula, milk or milk
products as | 4 | | defined in the Grade A Pasteurized Milk and Milk Products Act, | 5 | | or
drinks containing 50% or more natural fruit or vegetable | 6 | | juice.
| 7 | | Notwithstanding any other provisions of this
Act, | 8 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 9 | | beverages that contain natural or artificial sweeteners. "Soft | 10 | | drinks" do not include beverages that contain milk or milk | 11 | | products, soy, rice or similar milk substitutes, or greater | 12 | | than 50% of vegetable or fruit juice by volume. | 13 | | Until August 1, 2009, and notwithstanding any other | 14 | | provisions of this Act, "food for human consumption
that is to | 15 | | be consumed off the premises where it is sold" includes all | 16 | | food
sold through a vending machine, except soft drinks and | 17 | | food products that are
dispensed hot from a vending machine, | 18 | | regardless of the location of the vending
machine. Beginning | 19 | | August 1, 2009, and notwithstanding any other provisions of | 20 | | this Act, "food for human consumption that is to be consumed | 21 | | off the premises where it is sold" includes all food sold | 22 | | through a vending machine, except soft drinks, candy, and food | 23 | | products that are dispensed hot from a vending machine, | 24 | | regardless of the location of the vending machine.
| 25 | | Notwithstanding any other provisions of this
Act, | 26 | | beginning September 1, 2009, "food for human consumption that |
| | | 10200SB3596sam001 | - 19 - | LRB102 23331 HLH 35807 a |
|
| 1 | | is to be consumed off the premises where
it is sold" does not | 2 | | include candy. For purposes of this Section, "candy" means a | 3 | | preparation of sugar, honey, or other natural or artificial | 4 | | sweeteners in combination with chocolate, fruits, nuts or | 5 | | other ingredients or flavorings in the form of bars, drops, or | 6 | | pieces. "Candy" does not include any preparation that contains | 7 | | flour or requires refrigeration. | 8 | | Notwithstanding any other provisions of this
Act, | 9 | | beginning September 1, 2009, "nonprescription medicines and | 10 | | drugs" does not include grooming and hygiene products. For | 11 | | purposes of this Section, "grooming and hygiene products" | 12 | | includes, but is not limited to, soaps and cleaning solutions, | 13 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 14 | | lotions and screens, unless those products are available by | 15 | | prescription only, regardless of whether the products meet the | 16 | | definition of "over-the-counter-drugs". For the purposes of | 17 | | this paragraph, "over-the-counter-drug" means a drug for human | 18 | | use that contains a label that identifies the product as a drug | 19 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 20 | | label includes: | 21 | | (A) A "Drug Facts" panel; or | 22 | | (B) A statement of the "active ingredient(s)" with a | 23 | | list of those ingredients contained in the compound, | 24 | | substance or preparation. | 25 | | Beginning on January 1, 2014 (the effective date of Public | 26 | | Act 98-122), "prescription and nonprescription medicines and |
| | | 10200SB3596sam001 | - 20 - | LRB102 23331 HLH 35807 a |
|
| 1 | | drugs" includes medical cannabis purchased from a registered | 2 | | dispensing organization under the Compassionate Use of Medical | 3 | | Cannabis Program Act. | 4 | | As used in this Section, "adult use cannabis" means | 5 | | cannabis subject to tax under the Cannabis Cultivation | 6 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law | 7 | | and does not include cannabis subject to tax under the | 8 | | Compassionate Use of Medical Cannabis Program Act. | 9 | | (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19; | 10 | | 102-4, eff. 4-27-21; 102-16, eff. 6-17-21.) | 11 | | Section 20. The Retailers' Occupation Tax Act is amended | 12 | | by changing Section 2-10 as follows:
| 13 | | (35 ILCS 120/2-10)
| 14 | | Sec. 2-10. 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 | | gross receipts
from sales of tangible personal property made | 17 | | in the course of business.
| 18 | | Beginning on July 1, 2000 and through December 31, 2000, | 19 | | with respect to
motor fuel, as defined in Section 1.1 of the | 20 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 21 | | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| 22 | | Beginning on August 6, 2010 through August 15, 2010, with | 23 | | respect to sales tax holiday items as defined in Section 2-8 of | 24 | | this Act, the
tax is imposed at the rate of 1.25%. |
| | | 10200SB3596sam001 | - 21 - | LRB102 23331 HLH 35807 a |
|
| 1 | | Within 14 days after the effective date of this amendatory | 2 | | Act of the 91st
General Assembly, each retailer of motor fuel | 3 | | and gasohol shall cause the
following notice to be posted in a | 4 | | prominently visible place on each retail
dispensing device | 5 | | that is used to dispense motor
fuel or gasohol in the State of | 6 | | Illinois: "As of July 1, 2000, the State of
Illinois has | 7 | | eliminated the State's share of sales tax on motor fuel and
| 8 | | gasohol through December 31, 2000. The price on this pump | 9 | | should reflect the
elimination of the tax." The notice shall | 10 | | be printed in bold print on a sign
that is no smaller than 4 | 11 | | inches by 8 inches. The sign shall be clearly
visible to | 12 | | customers. Any retailer who fails to post or maintain a | 13 | | required
sign through December 31, 2000 is guilty of a petty | 14 | | offense for which the fine
shall be $500 per day per each | 15 | | retail premises where a violation occurs.
| 16 | | With respect to gasohol, as defined in the Use Tax Act, the | 17 | | tax imposed
by this Act applies to (i) 70% of the proceeds of | 18 | | sales made on or after
January 1, 1990, and before July 1, | 19 | | 2003, (ii) 80% of the proceeds of
sales made on or after July | 20 | | 1, 2003 and on or before July 1, 2017, and (iii) 100% of the | 21 | | proceeds of sales
made thereafter.
If, at any time, however, | 22 | | the tax under this Act on sales of gasohol, as
defined in
the | 23 | | Use Tax Act, is imposed at the rate of 1.25%, then the
tax | 24 | | imposed by this Act applies to 100% of the proceeds of sales of | 25 | | gasohol
made during that time.
| 26 | | With respect to majority blended ethanol fuel, as defined |
| | | 10200SB3596sam001 | - 22 - | LRB102 23331 HLH 35807 a |
|
| 1 | | in the Use Tax Act,
the
tax
imposed by this Act does not apply | 2 | | to the proceeds of sales made on or after
July 1, 2003 and on | 3 | | or before December 31, 2023 but applies to 100% of the
proceeds | 4 | | of sales made thereafter.
| 5 | | With respect to biodiesel blends, as defined in the Use | 6 | | Tax Act, with no less
than 1% and no
more than 10% biodiesel, | 7 | | the tax imposed by this Act
applies to (i) 80% of the proceeds | 8 | | of sales made on or after July 1, 2003
and on or before | 9 | | December 31, 2018 and (ii) 100% of the
proceeds of sales made | 10 | | thereafter.
If, at any time, however, the tax under this Act on | 11 | | sales of biodiesel blends,
as
defined in the Use Tax Act, with | 12 | | no less than 1% and no more than 10% biodiesel
is imposed at | 13 | | the rate of 1.25%, then the
tax imposed by this Act applies to | 14 | | 100% of the proceeds of sales of biodiesel
blends with no less | 15 | | than 1% and no more than 10% biodiesel
made
during that time.
| 16 | | With respect to 100% biodiesel, as defined in the Use Tax | 17 | | Act, and biodiesel
blends, as defined in the Use Tax Act, 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 June 30, 2023 December 31, | 21 | | 2023 but , except as otherwise provided in this paragraph with | 22 | | respect to 100% biodiesel and biodiesel
blends with more than | 23 | | 19% but no more than 99% biodiesel, applies to 100% of the
| 24 | | proceeds of sales made thereafter. With respect to 100% | 25 | | biodiesel, as defined in the
Use Tax Act, and biodiesel | 26 | | blends, as defined in the Use Tax
Act, with more than 19% but |
| | | 10200SB3596sam001 | - 23 - | LRB102 23331 HLH 35807 a |
|
| 1 | | no more than 99% biodiesel, the tax
imposed by this Act does | 2 | | not apply to proceeds of sales made on
or after July 1, 2023.
| 3 | | With respect to food for human consumption that is to be | 4 | | consumed off the
premises where it is sold (other than | 5 | | alcoholic beverages, food consisting of or infused with adult | 6 | | use cannabis, soft drinks, and
food that has been prepared for | 7 | | immediate consumption) and prescription and
nonprescription | 8 | | medicines, drugs, medical appliances, products classified as | 9 | | Class III medical devices by the United States Food and Drug | 10 | | Administration that are used for cancer treatment pursuant to | 11 | | a prescription, as well as any accessories and components | 12 | | related to those devices, modifications to a motor
vehicle for | 13 | | the purpose of rendering it usable by a person with a | 14 | | disability, and
insulin, blood sugar testing materials, | 15 | | syringes, and needles used by human diabetics, the tax is | 16 | | imposed at the rate of 1%. For the purposes of this
Section, | 17 | | until September 1, 2009: the term "soft drinks" means any | 18 | | complete, finished, ready-to-use,
non-alcoholic drink, whether | 19 | | carbonated or not, including but not limited to
soda water, | 20 | | cola, fruit juice, vegetable juice, carbonated water, and all | 21 | | other
preparations commonly known as soft drinks of whatever | 22 | | kind or description that
are contained in any closed or sealed | 23 | | bottle, can, carton, or container,
regardless of size; but | 24 | | "soft drinks" does not include coffee, tea, non-carbonated
| 25 | | water, infant formula, milk or milk products as defined in the | 26 | | Grade A
Pasteurized Milk and Milk Products Act, or drinks |
| | | 10200SB3596sam001 | - 24 - | LRB102 23331 HLH 35807 a |
|
| 1 | | containing 50% or more
natural fruit or vegetable juice.
| 2 | | Notwithstanding any other provisions of this
Act, | 3 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 4 | | beverages that contain natural or artificial sweeteners. "Soft | 5 | | drinks" do not include beverages that contain milk or milk | 6 | | products, soy, rice or similar milk substitutes, or greater | 7 | | than 50% of vegetable or fruit juice by volume. | 8 | | Until August 1, 2009, and notwithstanding any other | 9 | | provisions of this
Act, "food for human consumption that is to | 10 | | be consumed off the premises where
it is sold" includes all | 11 | | food sold through a vending machine, except soft
drinks and | 12 | | food products that are dispensed hot from a vending machine,
| 13 | | regardless of the location of the vending machine. Beginning | 14 | | August 1, 2009, and notwithstanding any other provisions of | 15 | | this Act, "food for human consumption that is to be consumed | 16 | | off the premises where it is sold" includes all food sold | 17 | | through a vending machine, except soft drinks, candy, and food | 18 | | products that are dispensed hot from a vending machine, | 19 | | regardless of the location of the vending machine.
| 20 | | Notwithstanding any other provisions of this
Act, | 21 | | beginning September 1, 2009, "food for human consumption that | 22 | | is to be consumed off the premises where
it is sold" does not | 23 | | include candy. For purposes of this Section, "candy" means a | 24 | | preparation of sugar, honey, or other natural or artificial | 25 | | sweeteners in combination with chocolate, fruits, nuts or | 26 | | other ingredients or flavorings in the form of bars, drops, or |
| | | 10200SB3596sam001 | - 25 - | LRB102 23331 HLH 35807 a |
|
| 1 | | pieces. "Candy" does not include any preparation that contains | 2 | | flour or requires refrigeration. | 3 | | Notwithstanding any other provisions of this
Act, | 4 | | beginning September 1, 2009, "nonprescription medicines and | 5 | | drugs" does not include grooming and hygiene products. For | 6 | | purposes of this Section, "grooming and hygiene products" | 7 | | includes, but is not limited to, soaps and cleaning solutions, | 8 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 9 | | lotions and screens, unless those products are available by | 10 | | prescription only, regardless of whether the products meet the | 11 | | definition of "over-the-counter-drugs". For the purposes of | 12 | | this paragraph, "over-the-counter-drug" means a drug for human | 13 | | use that contains a label that identifies the product as a drug | 14 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 15 | | label 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 | 21 | | the 98th General Assembly, "prescription and nonprescription | 22 | | medicines and drugs" includes medical cannabis purchased from | 23 | | a registered dispensing organization under the Compassionate | 24 | | Use of Medical Cannabis Program Act. | 25 | | As used in this Section, "adult use cannabis" means | 26 | | cannabis subject to tax under the Cannabis Cultivation |
| | | 10200SB3596sam001 | - 26 - | LRB102 23331 HLH 35807 a |
|
| 1 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law | 2 | | and does not include cannabis subject to tax under the | 3 | | Compassionate Use of Medical Cannabis Program Act. | 4 | | (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19; | 5 | | 102-4, eff. 4-27-21.)
| 6 | | Section 99. Effective date. This Act takes effect upon | 7 | | becoming law.".
|
|