Full Text of SB2432 102nd General Assembly
SB2432eng 102ND GENERAL ASSEMBLY |
| | SB2432 Engrossed | | LRB102 16457 HLH 21849 b |
|
| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Service Use Tax Act is amended by changing | 5 | | Section 3-10 as follows:
| 6 | | (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
| 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 | | the selling
price of tangible personal property transferred as | 10 | | an incident to the sale
of service, but, for the purpose of | 11 | | computing this tax, in no event shall
the selling price be less | 12 | | than the cost price of the property to the
serviceman.
| 13 | | Beginning on July 1, 2000 and through December 31, 2000, | 14 | | with respect to
motor fuel, as defined in Section 1.1 of the | 15 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 16 | | the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
| 17 | | With respect to gasohol, as defined in the Use Tax Act, the | 18 | | tax imposed
by this Act applies to (i) 70% of the selling price | 19 | | of property transferred
as an incident to the sale of service | 20 | | on or after January 1, 1990,
and before July 1, 2003, (ii) 80% | 21 | | of 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 | | July 1, 2017, and (iii)
100% of the selling price thereafter.
|
| | | SB2432 Engrossed | - 2 - | LRB102 16457 HLH 21849 b |
|
| 1 | | If, at any time, however, the tax under this Act on sales of | 2 | | gasohol, as
defined in
the Use Tax Act, is imposed at the rate | 3 | | of 1.25%, then the
tax imposed by this Act applies to 100% of | 4 | | the proceeds of sales of gasohol
made during that time.
| 5 | | With respect to majority blended ethanol fuel, as defined | 6 | | in the Use Tax Act,
the
tax
imposed by this Act does not apply | 7 | | to the selling price of property transferred
as an incident to | 8 | | the 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 | | With respect to biodiesel blends, as defined in the Use | 12 | | Tax Act, with no less
than 1% and no
more than 10% biodiesel, | 13 | | the tax imposed by this Act
applies to (i) 80% of the selling | 14 | | price of property transferred as an incident
to the sale of | 15 | | service on or after July 1, 2003 and on or before December 31, | 16 | | 2018
and (ii) 100% of the proceeds of the selling price
| 17 | | thereafter.
If, at any time, however, the tax under this Act on | 18 | | sales of biodiesel blends,
as
defined in the Use Tax Act, with | 19 | | no less than 1% and no more than 10% biodiesel
is imposed at | 20 | | the rate of 1.25%, then the
tax imposed by this Act applies to | 21 | | 100% of the proceeds of sales of biodiesel
blends with no less | 22 | | than 1% and no more than 10% biodiesel
made
during that time.
| 23 | | With respect to 100% biodiesel, as defined in the Use Tax | 24 | | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| 25 | | more than 10% but no more than 99% biodiesel, the tax imposed | 26 | | by this Act
does not apply to the proceeds of the selling price |
| | | SB2432 Engrossed | - 3 - | LRB102 16457 HLH 21849 b |
|
| 1 | | of property transferred
as an incident to the sale of service | 2 | | on or after July 1, 2003 and on or before
December 31, 2023 but | 3 | | applies to 100% of the selling price thereafter.
| 4 | | At the election of any registered serviceman made for each | 5 | | fiscal year,
sales of service in which the aggregate annual | 6 | | cost price of tangible
personal property transferred as an | 7 | | incident to the sales of service is
less than 35%, or 75% in | 8 | | the case of servicemen transferring prescription
drugs or | 9 | | servicemen engaged in graphic arts production, of the | 10 | | aggregate
annual total gross receipts from all sales of | 11 | | service, the tax imposed by
this Act shall be based on the | 12 | | serviceman's cost price of the tangible
personal property | 13 | | transferred as an incident to the sale of those services.
| 14 | | The tax shall be imposed at the rate of 1% on food prepared | 15 | | for
immediate consumption and transferred incident to a sale | 16 | | of service subject
to this Act or the Service Occupation Tax | 17 | | Act by an entity licensed under
the Hospital Licensing Act, | 18 | | the Nursing Home Care Act, the Assisted Living and Shared | 19 | | Housing Act, the ID/DD Community Care Act, the MC/DD Act, the | 20 | | Specialized Mental Health Rehabilitation Act of 2013, or the
| 21 | | Child Care
Act of 1969 , or an entity that holds a permit issued | 22 | | pursuant to the Life Care Facilities Act . The tax shall
also be | 23 | | imposed at the rate of 1% on food for human consumption that is | 24 | | to be
consumed off the premises where it is sold (other than | 25 | | alcoholic beverages, food consisting of or infused with adult | 26 | | use cannabis,
soft drinks, and food that has been prepared for |
| | | SB2432 Engrossed | - 4 - | LRB102 16457 HLH 21849 b |
|
| 1 | | immediate consumption and is
not otherwise included in this | 2 | | paragraph) and prescription and nonprescription
medicines, | 3 | | drugs, medical appliances, products classified as Class III | 4 | | medical devices by the United States Food and Drug | 5 | | Administration that are used for cancer treatment pursuant to | 6 | | a prescription, as well as any accessories and components | 7 | | related to those devices, modifications to a motor vehicle for | 8 | | the
purpose of rendering it usable by a person with a | 9 | | disability, and insulin, urine testing
materials,
syringes, | 10 | | and needles used by diabetics, for
human use. For the purposes | 11 | | of this Section, until September 1, 2009: the term "soft | 12 | | drinks" means any
complete, finished, ready-to-use, | 13 | | non-alcoholic drink, whether carbonated or
not, including but | 14 | | not limited to soda water, cola, fruit juice, vegetable
juice, | 15 | | carbonated water, and all other preparations commonly known as | 16 | | soft
drinks of whatever kind or description that are contained | 17 | | in any closed or
sealed bottle, can, carton, or container, | 18 | | regardless of size; but "soft drinks"
does not include coffee, | 19 | | tea, non-carbonated water, infant formula, milk or
milk | 20 | | products as defined in the Grade A Pasteurized Milk and Milk | 21 | | Products Act,
or drinks containing 50% or more natural fruit | 22 | | or vegetable juice.
| 23 | | Notwithstanding any other provisions of this
Act, | 24 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 25 | | beverages that contain natural or artificial sweeteners. "Soft | 26 | | drinks" do not include beverages that contain milk or milk |
| | | SB2432 Engrossed | - 5 - | LRB102 16457 HLH 21849 b |
|
| 1 | | products, soy, rice or similar milk substitutes, or greater | 2 | | than 50% of vegetable or fruit juice by volume. | 3 | | Until August 1, 2009, and notwithstanding any other | 4 | | provisions of this Act, "food for human
consumption that is to | 5 | | be consumed off the premises where it is sold" includes
all | 6 | | food sold through a vending machine, except soft drinks and | 7 | | food products
that are dispensed hot from a vending machine, | 8 | | regardless of the location of
the vending machine. Beginning | 9 | | August 1, 2009, and notwithstanding any other provisions of | 10 | | this Act, "food for human consumption that is to be consumed | 11 | | off the premises where it is sold" includes all food sold | 12 | | through a vending machine, except soft drinks, candy, and food | 13 | | products that are dispensed hot from a vending machine, | 14 | | regardless of the location of the vending machine.
| 15 | | Notwithstanding any other provisions of this
Act, | 16 | | beginning September 1, 2009, "food for human consumption that | 17 | | is to be consumed off the premises where
it is sold" does not | 18 | | include candy. For purposes of this Section, "candy" means a | 19 | | preparation of sugar, honey, or other natural or artificial | 20 | | sweeteners in combination with chocolate, fruits, nuts or | 21 | | other ingredients or flavorings in the form of bars, drops, or | 22 | | pieces. "Candy" does not include any preparation that contains | 23 | | flour or requires refrigeration. | 24 | | Notwithstanding any other provisions of this
Act, | 25 | | beginning September 1, 2009, "nonprescription medicines and | 26 | | drugs" does not include grooming and hygiene products. For |
| | | SB2432 Engrossed | - 6 - | LRB102 16457 HLH 21849 b |
|
| 1 | | purposes of this Section, "grooming and hygiene products" | 2 | | includes, but is not limited to, soaps and cleaning solutions, | 3 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 4 | | lotions and screens, unless those products are available by | 5 | | prescription only, regardless of whether the products meet the | 6 | | definition of "over-the-counter-drugs". For the purposes of | 7 | | this paragraph, "over-the-counter-drug" means a drug for human | 8 | | use that contains a label that identifies the product as a drug | 9 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 10 | | label includes: | 11 | | (A) A "Drug Facts" panel; or | 12 | | (B) A statement of the "active ingredient(s)" with a | 13 | | list of those ingredients contained in the compound, | 14 | | substance or preparation. | 15 | | Beginning on January 1, 2014 (the effective date of Public | 16 | | Act 98-122), "prescription and nonprescription medicines and | 17 | | drugs" includes medical cannabis purchased from a registered | 18 | | dispensing organization under the Compassionate Use of Medical | 19 | | Cannabis Program Act. | 20 | | As used in this Section, "adult use cannabis" means | 21 | | cannabis subject to tax under the Cannabis Cultivation | 22 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law | 23 | | and does not include cannabis subject to tax under the | 24 | | Compassionate Use of Medical Cannabis Program Act. | 25 | | If the property that is acquired from a serviceman is | 26 | | acquired outside
Illinois and used outside Illinois before |
| | | SB2432 Engrossed | - 7 - | LRB102 16457 HLH 21849 b |
|
| 1 | | being brought to Illinois for use
here and is taxable under | 2 | | this Act, the "selling price" on which the tax
is computed | 3 | | shall be reduced by an amount that represents a reasonable
| 4 | | allowance for depreciation for the period of prior | 5 | | out-of-state use.
| 6 | | (Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19; | 7 | | 101-593, eff. 12-4-19.) | 8 | | Section 10. The Service Occupation Tax Act is amended by | 9 | | changing Section 3-10 as follows:
| 10 | | (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
| 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",
as defined in Section 2 of the Service Use | 14 | | Tax Act, of the tangible
personal property. For the purpose of | 15 | | computing this tax, in no event
shall the "selling price" be | 16 | | less than the cost price to the serviceman of
the tangible | 17 | | personal property transferred. The selling price of each item
| 18 | | of tangible personal property transferred as an incident of a | 19 | | sale of
service may be shown as a distinct and separate item on | 20 | | the serviceman's
billing to the service customer. If the | 21 | | selling price is not so shown, the
selling price of the | 22 | | tangible personal property is deemed to be 50% of the
| 23 | | serviceman's entire billing to the service customer. When, | 24 | | however, a
serviceman contracts to design, develop, and |
| | | SB2432 Engrossed | - 8 - | LRB102 16457 HLH 21849 b |
|
| 1 | | produce special order machinery or
equipment, the tax imposed | 2 | | by this Act shall be based on the serviceman's
cost price of | 3 | | the tangible personal property transferred incident to the
| 4 | | completion of the contract.
| 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 | | With respect to gasohol, as defined in the Use Tax Act, the | 10 | | tax imposed
by this Act shall apply to (i) 70% of the cost | 11 | | price of property
transferred as
an incident to the sale of | 12 | | service on or after January 1, 1990, and before
July 1, 2003, | 13 | | (ii) 80% of the selling price of property transferred as an
| 14 | | incident to the sale of service on or after July
1, 2003 and on | 15 | | or before July 1, 2017, and (iii) 100%
of
the cost price
| 16 | | thereafter.
If, at any time, however, the tax under this Act on | 17 | | sales of gasohol, as
defined in
the Use Tax Act, is imposed at | 18 | | the rate of 1.25%, then the
tax imposed by this Act applies to | 19 | | 100% of the proceeds of sales of gasohol
made during that time.
| 20 | | With respect to majority blended ethanol fuel, as defined | 21 | | in the Use Tax Act,
the
tax
imposed by this Act does not apply | 22 | | to the selling price of property transferred
as an incident to | 23 | | the sale of service on or after July 1, 2003 and on or before
| 24 | | December 31, 2023 but applies to 100% of the selling price | 25 | | thereafter.
| 26 | | With respect to biodiesel blends, as defined in the Use |
| | | SB2432 Engrossed | - 9 - | LRB102 16457 HLH 21849 b |
|
| 1 | | Tax Act, with no less
than 1% and no
more than 10% biodiesel, | 2 | | the tax imposed by this Act
applies to (i) 80% of the selling | 3 | | price of property transferred as an incident
to the sale of | 4 | | service on or after July 1, 2003 and on or before December 31, | 5 | | 2018
and (ii) 100% of the proceeds of the selling price
| 6 | | thereafter.
If, at any time, however, the tax under this Act on | 7 | | sales of biodiesel blends,
as
defined in the Use Tax Act, with | 8 | | no less than 1% and no more than 10% biodiesel
is imposed at | 9 | | the rate of 1.25%, then the
tax imposed by this Act applies to | 10 | | 100% of the proceeds of sales of biodiesel
blends with no less | 11 | | than 1% and no more than 10% biodiesel
made
during that time.
| 12 | | With respect to 100% biodiesel, as defined in the Use Tax | 13 | | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| 14 | | more than 10% but no more than 99% biodiesel material, the tax | 15 | | imposed by this
Act
does not apply to the proceeds of the | 16 | | selling price of property transferred
as an incident to the | 17 | | sale of service on or after July 1, 2003 and on or before
| 18 | | December 31, 2023 but applies to 100% of the selling price | 19 | | thereafter.
| 20 | | At the election of any registered serviceman made for each | 21 | | fiscal year,
sales of service in which the aggregate annual | 22 | | cost price of tangible
personal property transferred as an | 23 | | incident to the sales of service is
less than 35%, or 75% in | 24 | | the case of servicemen transferring prescription
drugs or | 25 | | servicemen engaged in graphic arts production, of the | 26 | | aggregate
annual total gross receipts from all sales of |
| | | SB2432 Engrossed | - 10 - | LRB102 16457 HLH 21849 b |
|
| 1 | | service, the tax imposed by
this Act shall be based on the | 2 | | serviceman's cost price of the tangible
personal property | 3 | | transferred incident to the sale of those services.
| 4 | | The tax shall be imposed at the rate of 1% on food prepared | 5 | | for
immediate consumption and transferred incident to a sale | 6 | | of service subject
to this Act or the Service Occupation Tax | 7 | | Act by an entity licensed under
the Hospital Licensing Act, | 8 | | the Nursing Home Care Act, the Assisted Living and Shared | 9 | | Housing Act, the ID/DD Community Care Act, the MC/DD Act, the | 10 | | Specialized Mental Health Rehabilitation Act of 2013, or the
| 11 | | Child Care Act of 1969 , or an entity that holds a permit issued | 12 | | pursuant to the Life Care Facilities Act . The tax shall
also be | 13 | | imposed at the rate of 1% on food for human consumption that is
| 14 | | to be consumed off the
premises where it is sold (other than | 15 | | alcoholic beverages, food consisting of or infused with adult | 16 | | use cannabis, soft drinks, and
food that has been prepared for | 17 | | immediate consumption and is not
otherwise included in this | 18 | | paragraph) and prescription and
nonprescription medicines, | 19 | | drugs, medical appliances, products classified as Class III | 20 | | medical devices by the United States Food and Drug | 21 | | Administration that are used for cancer treatment pursuant to | 22 | | a prescription, as well as any accessories and components | 23 | | related to those devices, modifications to a motor
vehicle for | 24 | | the purpose of rendering it usable by a person with a | 25 | | disability, and
insulin, urine testing materials, syringes, | 26 | | and needles used by diabetics, for
human use. For the purposes |
| | | SB2432 Engrossed | - 11 - | LRB102 16457 HLH 21849 b |
|
| 1 | | of this Section, until September 1, 2009: the term "soft | 2 | | drinks" means any
complete, finished, ready-to-use, | 3 | | non-alcoholic drink, whether carbonated or
not, including but | 4 | | not limited to soda water, cola, fruit juice, vegetable
juice, | 5 | | carbonated water, and all other preparations commonly known as | 6 | | soft
drinks of whatever kind or description that are contained | 7 | | in any closed or
sealed can, carton, or container, regardless | 8 | | of size; but "soft drinks" does not
include coffee, tea, | 9 | | non-carbonated water, infant formula, milk or milk
products as | 10 | | defined in the Grade A Pasteurized Milk and Milk Products Act, | 11 | | or
drinks containing 50% or more natural fruit or vegetable | 12 | | juice.
| 13 | | Notwithstanding any other provisions of this
Act, | 14 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 15 | | beverages that contain natural or artificial sweeteners. "Soft | 16 | | drinks" do not include beverages that contain milk or milk | 17 | | products, soy, rice or similar milk substitutes, or greater | 18 | | than 50% of vegetable or fruit juice by volume. | 19 | | Until August 1, 2009, and notwithstanding any other | 20 | | provisions of this Act, "food for human consumption
that is to | 21 | | be consumed off the premises where it is sold" includes all | 22 | | food
sold through a vending machine, except soft drinks and | 23 | | food products that are
dispensed hot from a vending machine, | 24 | | regardless of the location of the vending
machine. Beginning | 25 | | August 1, 2009, and notwithstanding any other provisions of | 26 | | this Act, "food for human consumption that is to be consumed |
| | | SB2432 Engrossed | - 12 - | LRB102 16457 HLH 21849 b |
|
| 1 | | off the premises where it is sold" includes all food sold | 2 | | through a vending machine, except soft drinks, candy, and food | 3 | | products that are dispensed hot from a vending machine, | 4 | | regardless of the location of the vending machine.
| 5 | | Notwithstanding any other provisions of this
Act, | 6 | | beginning September 1, 2009, "food for human consumption that | 7 | | is to be consumed off the premises where
it is sold" does not | 8 | | include candy. For purposes of this Section, "candy" means a | 9 | | preparation of sugar, honey, or other natural or artificial | 10 | | sweeteners in combination with chocolate, fruits, nuts or | 11 | | other ingredients or flavorings in the form of bars, drops, or | 12 | | pieces. "Candy" does not include any preparation that contains | 13 | | flour or requires refrigeration. | 14 | | Notwithstanding any other provisions of this
Act, | 15 | | beginning September 1, 2009, "nonprescription medicines and | 16 | | drugs" does not include grooming and hygiene products. For | 17 | | purposes of this Section, "grooming and hygiene products" | 18 | | includes, but is not limited to, soaps and cleaning solutions, | 19 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 20 | | lotions and screens, unless those products are available by | 21 | | prescription only, regardless of whether the products meet the | 22 | | definition of "over-the-counter-drugs". For the purposes of | 23 | | this paragraph, "over-the-counter-drug" means a drug for human | 24 | | use that contains a label that identifies the product as a drug | 25 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 26 | | label includes: |
| | | SB2432 Engrossed | - 13 - | LRB102 16457 HLH 21849 b |
|
| 1 | | (A) A "Drug Facts" panel; or | 2 | | (B) A statement of the "active ingredient(s)" with a | 3 | | list of those ingredients contained in the compound, | 4 | | substance or preparation. | 5 | | Beginning on January 1, 2014 (the effective date of Public | 6 | | Act 98-122), "prescription and nonprescription medicines and | 7 | | drugs" includes medical cannabis purchased from a registered | 8 | | dispensing organization under the Compassionate Use of Medical | 9 | | Cannabis Program Act. | 10 | | As used in this Section, "adult use cannabis" means | 11 | | cannabis subject to tax under the Cannabis Cultivation | 12 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law | 13 | | and does not include cannabis subject to tax under the | 14 | | Compassionate Use of Medical Cannabis Program Act. | 15 | | (Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19; | 16 | | 101-593, eff. 12-4-19.)
|
|