Full Text of HB2669 98th General Assembly
HB2669 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB2669 Introduced 2/21/2013, by Rep. Kenneth Dunkin SYNOPSIS AS INTRODUCED: |
| 30 ILCS 105/6z-18 | from Ch. 127, par. 142z-18 | 30 ILCS 105/6z-20 | from Ch. 127, par. 142z-20 | 35 ILCS 105/3-10 | | 35 ILCS 120/2-10 | |
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Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that the sales tax holiday on school supplies created by Public Act 96-1012 applies during the third weekend in August of 2013 and each year thereafter. Amends the State Finance Act to make conforming changes. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The State Finance Act is amended by changing | 5 | | Sections 6z-18 and 6z-20 as follows:
| 6 | | (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
| 7 | | Sec. 6z-18.
A portion of the money paid into the Local | 8 | | Government Tax
Fund from sales of food for human consumption | 9 | | which is to be consumed off
the premises where it is sold | 10 | | (other than alcoholic beverages, soft drinks
and food which has | 11 | | been prepared for immediate consumption) and
prescription and | 12 | | nonprescription medicines, drugs, medical appliances and
| 13 | | insulin, urine testing materials, syringes and needles used by | 14 | | diabetics,
which occurred in municipalities, shall be | 15 | | distributed to each municipality
based upon the sales which | 16 | | occurred in that municipality. The remainder
shall be | 17 | | distributed to each county based upon the sales which occurred | 18 | | in
the unincorporated area of that county.
| 19 | | A portion of the money paid into the Local Government Tax | 20 | | Fund from the
6.25% general use tax rate on the selling price | 21 | | of tangible personal
property which is purchased outside | 22 | | Illinois at retail from a retailer and
which is titled or | 23 | | registered by any agency of this State's government
shall be |
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| 1 | | distributed to municipalities as provided in this paragraph. | 2 | | Each
municipality shall receive the amount attributable to | 3 | | sales for which
Illinois addresses for titling or registration | 4 | | purposes are given as being
in such municipality. The remainder | 5 | | of the money paid into the Local
Government Tax Fund from such | 6 | | sales shall be distributed to counties. Each
county shall | 7 | | receive the amount attributable to sales for which Illinois
| 8 | | addresses for titling or registration purposes are given as | 9 | | being located
in the unincorporated area of such county.
| 10 | | A portion of the money paid into the Local Government Tax | 11 | | Fund from the
6.25% general rate (and, beginning July 1, 2000 | 12 | | and through December 31,
2000, the 1.25% rate on motor fuel and | 13 | | gasohol, and during the sales tax holiday period set forth in | 14 | | Section 3-10 of the Use Tax Act and Section 2-8 of the | 15 | | Retailers' Occupation Tax Act beginning on August 6, 2010 | 16 | | through August 15, 2010 , the 1.25% rate on sales tax holiday | 17 | | items) on sales
subject to taxation under the Retailers'
| 18 | | Occupation Tax Act and the Service Occupation Tax Act, which | 19 | | occurred in
municipalities, shall be distributed to each | 20 | | municipality, based upon the
sales which occurred in that | 21 | | municipality. The remainder shall be
distributed to each | 22 | | county, based upon the sales which occurred in the
| 23 | | unincorporated area of such county.
| 24 | | For the purpose of determining allocation to the local | 25 | | government unit, a
retail sale by a producer of coal or other | 26 | | mineral mined in Illinois is a sale
at retail at the place |
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| 1 | | where the coal or other mineral mined in Illinois is
extracted | 2 | | from the earth. This paragraph does not apply to coal or other
| 3 | | mineral when it is delivered or shipped by the seller to the | 4 | | purchaser at a
point outside Illinois so that the sale is | 5 | | exempt under the United States
Constitution as a sale in | 6 | | interstate or foreign commerce.
| 7 | | Whenever the Department determines that a refund of money | 8 | | paid into
the Local Government Tax Fund should be made to a | 9 | | claimant instead of
issuing a credit memorandum, the Department | 10 | | shall notify the State
Comptroller, who shall cause the order | 11 | | to be drawn for the amount
specified, and to the person named, | 12 | | in such notification from the
Department. Such refund shall be | 13 | | paid by the State Treasurer out of the
Local Government Tax | 14 | | Fund.
| 15 | | As soon as possible after the first day of each month, | 16 | | beginning January 1, 2011, upon certification of the Department | 17 | | of Revenue, the Comptroller shall order transferred, and the | 18 | | Treasurer shall transfer, to the STAR Bonds Revenue Fund the | 19 | | local sales tax increment, as defined in the Innovation | 20 | | Development and Economy Act, collected during the second | 21 | | preceding calendar month for sales within a STAR bond district | 22 | | and deposited into the Local Government Tax Fund, less 3% of | 23 | | that amount, which shall be transferred into the Tax Compliance | 24 | | and Administration Fund and shall be used by the Department, | 25 | | subject to appropriation, to cover the costs of the Department | 26 | | in administering the Innovation Development and Economy Act. |
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| 1 | | After the monthly transfer to the STAR Bonds Revenue Fund, | 2 | | on or before the 25th day of each calendar month, the | 3 | | Department shall
prepare and certify to the Comptroller the | 4 | | disbursement of stated sums of
money to named municipalities | 5 | | and counties, the municipalities and counties
to be those | 6 | | entitled to distribution of taxes or penalties paid to the
| 7 | | Department during the second preceding calendar month. The | 8 | | amount to be
paid to each municipality or county shall be the | 9 | | amount (not including
credit memoranda) collected during the | 10 | | second preceding calendar month by
the Department and paid into | 11 | | the Local Government Tax Fund, plus an amount
the Department | 12 | | determines is necessary to offset any amounts which were
| 13 | | erroneously paid to a different taxing body, and not including | 14 | | an amount
equal to the amount of refunds made during the second | 15 | | preceding calendar
month by the Department, and not including | 16 | | any amount which the Department
determines is necessary to | 17 | | offset any amounts which are payable to a
different taxing body | 18 | | but were erroneously paid to the municipality or
county, and | 19 | | not including any amounts that are transferred to the STAR | 20 | | Bonds Revenue Fund. Within 10 days after receipt, by the | 21 | | Comptroller, of the
disbursement certification to the | 22 | | municipalities and counties, provided for
in this Section to be | 23 | | given to the Comptroller by the Department, the
Comptroller | 24 | | shall cause the orders to be drawn for the respective amounts
| 25 | | in accordance with the directions contained in such | 26 | | certification.
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| 1 | | When certifying the amount of monthly disbursement to a | 2 | | municipality or
county under this Section, the Department shall | 3 | | increase or decrease that
amount by an amount necessary to | 4 | | offset any misallocation of previous
disbursements. The offset | 5 | | amount shall be the amount erroneously disbursed
within the 6 | 6 | | months preceding the time a misallocation is discovered.
| 7 | | The provisions directing the distributions from the | 8 | | special fund in
the State Treasury provided for in this Section | 9 | | shall constitute an
irrevocable and continuing appropriation | 10 | | of all amounts as provided herein.
The State Treasurer and | 11 | | State Comptroller are hereby authorized to make
distributions | 12 | | as provided in this Section.
| 13 | | In construing any development, redevelopment, annexation, | 14 | | preannexation
or other lawful agreement in effect prior to | 15 | | September 1, 1990, which
describes or refers to receipts from a | 16 | | county or municipal retailers'
occupation tax, use tax or | 17 | | service occupation tax which now cannot be
imposed, such | 18 | | description or reference shall be deemed to include the
| 19 | | replacement revenue for such abolished taxes, distributed from | 20 | | the Local
Government Tax Fund.
| 21 | | (Source: P.A. 96-939, eff. 6-24-10; 96-1012, eff. 7-7-10; | 22 | | 97-333, eff. 8-12-11.)
| 23 | | (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
| 24 | | Sec. 6z-20.
Of the money received from the 6.25% general | 25 | | rate (and,
beginning July 1, 2000 and through December 31, |
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| 1 | | 2000, the
1.25% rate on motor fuel and gasohol, and during the | 2 | | sales tax holiday period set forth in Section 3-10 of the Use | 3 | | Tax Act and Section 2-8 of the Retailers' Occupation Tax Act | 4 | | beginning on August 6, 2010 through August 15, 2010 , the 1.25% | 5 | | rate on sales tax holiday items) on sales
subject to taxation | 6 | | under the Retailers' Occupation Tax Act and Service
Occupation | 7 | | Tax Act and paid into the County and Mass Transit District | 8 | | Fund,
distribution to the Regional Transportation Authority | 9 | | tax fund, created
pursuant to Section 4.03 of the Regional | 10 | | Transportation Authority Act, for
deposit therein shall be made | 11 | | based upon the retail sales occurring in a
county having more | 12 | | than 3,000,000 inhabitants. The remainder shall be
distributed | 13 | | to each county having 3,000,000 or fewer inhabitants based upon
| 14 | | the retail sales occurring in each such county.
| 15 | | For the purpose of determining allocation to the local | 16 | | government unit, a
retail sale by a producer of coal or other | 17 | | mineral mined in Illinois is a sale
at retail at the place | 18 | | where the coal or other mineral mined in Illinois is
extracted | 19 | | from the earth. This paragraph does not apply to coal or other
| 20 | | mineral when it is delivered or shipped by the seller to the | 21 | | purchaser at a
point outside Illinois so that the sale is | 22 | | exempt under the United States
Constitution as a sale in | 23 | | interstate or foreign commerce.
| 24 | | Of the money received from the 6.25% general use tax rate | 25 | | on tangible
personal property which is purchased outside | 26 | | Illinois at retail from a
retailer and which is titled or |
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| 1 | | registered by any agency of this State's
government and paid | 2 | | into the County and Mass Transit District Fund, the
amount for | 3 | | which Illinois addresses for titling or registration purposes
| 4 | | are given as being in each county having more than 3,000,000 | 5 | | inhabitants
shall be distributed into the Regional | 6 | | Transportation Authority tax fund,
created pursuant to Section | 7 | | 4.03 of the Regional Transportation Authority
Act. The | 8 | | remainder of the money paid from such sales shall be | 9 | | distributed
to each county based on sales for which Illinois | 10 | | addresses for titling or
registration purposes are given as | 11 | | being located in the county. Any money
paid into the Regional | 12 | | Transportation Authority Occupation and Use Tax
Replacement | 13 | | Fund from the County and Mass Transit District Fund prior to
| 14 | | January 14, 1991, which has not been paid to the Authority | 15 | | prior to that
date, shall be transferred to the Regional | 16 | | Transportation Authority tax fund.
| 17 | | Whenever the Department determines that a refund of money | 18 | | paid into
the County and Mass Transit District Fund should be | 19 | | made to a claimant
instead of issuing a credit memorandum, the | 20 | | Department shall notify the
State Comptroller, who shall cause | 21 | | the order to be drawn for the amount
specified, and to the | 22 | | person named, in such notification from the
Department. Such | 23 | | refund shall be paid by the State Treasurer out of the
County | 24 | | and Mass Transit District Fund.
| 25 | | As soon as possible after the first day of each month, | 26 | | beginning January 1, 2011, upon certification of the Department |
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| 1 | | of Revenue, the Comptroller shall order transferred, and the | 2 | | Treasurer shall transfer, to the STAR Bonds Revenue Fund the | 3 | | local sales tax increment, as defined in the Innovation | 4 | | Development and Economy Act, collected during the second | 5 | | preceding calendar month for sales within a STAR bond district | 6 | | and deposited into the County and Mass Transit District Fund, | 7 | | less 3% of that amount, which shall be transferred into the Tax | 8 | | Compliance and Administration Fund and shall be used by the | 9 | | Department, subject to appropriation, to cover the costs of the | 10 | | Department in administering the Innovation Development and | 11 | | Economy Act. | 12 | | After the monthly transfer to the STAR Bonds Revenue Fund, | 13 | | on or before the 25th day of each calendar month, the | 14 | | Department shall
prepare and certify to the Comptroller the | 15 | | disbursement of stated sums of
money to the Regional | 16 | | Transportation Authority and to named counties, the
counties to | 17 | | be those entitled to distribution, as hereinabove provided, of
| 18 | | taxes or penalties paid to the Department during the second | 19 | | preceding
calendar month. The amount to be paid to the Regional | 20 | | Transportation
Authority and each county having 3,000,000 or | 21 | | fewer inhabitants shall be
the amount (not including credit | 22 | | memoranda) collected during the second
preceding calendar | 23 | | month by the Department and paid into the County and
Mass | 24 | | Transit District Fund, plus an amount the Department determines | 25 | | is
necessary to offset any amounts which were erroneously paid | 26 | | to a different
taxing body, and not including an amount equal |
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| 1 | | to the amount of refunds
made during the second preceding | 2 | | calendar month by the Department, and not
including any amount | 3 | | which the Department determines is necessary to offset
any | 4 | | amounts which were payable to a different taxing body but were
| 5 | | erroneously paid to the Regional Transportation Authority or | 6 | | county, and not including any amounts that are transferred to | 7 | | the STAR Bonds Revenue Fund.
Within 10 days after receipt, by | 8 | | the Comptroller, of the disbursement
certification to the | 9 | | Regional Transportation Authority and counties,
provided for | 10 | | in this Section to be given to the Comptroller by the
| 11 | | Department, the Comptroller shall cause the orders to be drawn | 12 | | for the
respective amounts in accordance with the directions | 13 | | contained in such
certification.
| 14 | | When certifying the amount of a monthly disbursement to the | 15 | | Regional
Transportation Authority or to a county under this | 16 | | Section, the Department
shall increase or decrease that amount | 17 | | by an amount necessary to offset any
misallocation of previous | 18 | | disbursements. The offset amount shall be the
amount | 19 | | erroneously disbursed within the 6 months preceding the time a
| 20 | | misallocation is discovered.
| 21 | | The provisions directing the distributions from the | 22 | | special fund in
the State Treasury provided for in this Section | 23 | | and from the Regional
Transportation Authority tax fund created | 24 | | by Section 4.03 of the Regional
Transportation Authority Act | 25 | | shall constitute an irrevocable and continuing
appropriation | 26 | | of all amounts as provided herein. The State Treasurer and
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| 1 | | State Comptroller are hereby authorized to make distributions | 2 | | as provided
in this Section.
| 3 | | In construing any development, redevelopment, annexation, | 4 | | preannexation
or other lawful agreement in effect prior to | 5 | | September 1, 1990, which
describes or refers to receipts from a | 6 | | county or municipal retailers'
occupation tax, use tax or | 7 | | service occupation tax which now cannot be
imposed, such | 8 | | description or reference shall be deemed to include the
| 9 | | replacement revenue for such abolished taxes, distributed from | 10 | | the County
and Mass Transit District Fund or Local Government | 11 | | Distributive Fund, as
the case may be.
| 12 | | (Source: P.A. 96-939, eff. 6-24-10; 96-1012, eff. 7-7-10; | 13 | | 97-333, eff. 8-12-11.)
| 14 | | Section 10. The Use Tax Act is amended by changing Section | 15 | | 3-10 as follows:
| 16 | | (35 ILCS 105/3-10)
| 17 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this | 18 | | Section, the tax
imposed by this Act is at the rate of 6.25% of | 19 | | either the selling price or the
fair market value, if any, of | 20 | | the tangible personal property. In all cases
where property | 21 | | functionally used or consumed is the same as the property that
| 22 | | was purchased at retail, then the tax is imposed on the selling | 23 | | price of the
property. In all cases where property functionally | 24 | | used or consumed is a
by-product or waste product that has been |
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| 1 | | refined, manufactured, or produced
from property purchased at | 2 | | retail, then the tax is imposed on the lower of the
fair market | 3 | | value, if any, of the specific property so used in this State | 4 | | or on
the selling price of the property purchased at retail. | 5 | | For purposes of this
Section "fair market value" means the | 6 | | price at which property would change
hands between a willing | 7 | | buyer and a willing seller, neither being under any
compulsion | 8 | | to buy or sell and both having reasonable knowledge of the
| 9 | | relevant facts. The fair market value shall be established by | 10 | | Illinois sales by
the taxpayer of the same property as that | 11 | | functionally used or consumed, or if
there are no such sales by | 12 | | the taxpayer, then comparable sales or purchases of
property of | 13 | | like kind and character in Illinois.
| 14 | | Beginning on July 1, 2000 and through December 31, 2000, | 15 | | with respect to
motor fuel, as defined in Section 1.1 of the | 16 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 17 | | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| 18 | | Beginning on August 6, 2010 through August 15, 2010, and | 19 | | during the third weekend in August of 2013 and each year | 20 | | thereafter, with respect to sales tax holiday items as defined | 21 | | in Section 3-6 of this Act, the
tax is imposed at the rate of | 22 | | 1.25%. | 23 | | With respect to gasohol, the tax imposed by this Act | 24 | | applies to (i) 70%
of the proceeds of sales made on or after | 25 | | January 1, 1990, and before
July 1, 2003, (ii) 80% of the | 26 | | proceeds of sales made
on or after July 1, 2003 and on or |
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| 1 | | before December 31, 2018, and (iii) 100% of the proceeds of | 2 | | sales made
thereafter.
If, at any time, however, the tax under | 3 | | this Act on sales of gasohol is
imposed at the
rate of 1.25%, | 4 | | then the tax imposed by this Act applies to 100% of the | 5 | | proceeds
of sales of gasohol made during that time.
| 6 | | With respect to majority blended ethanol fuel, the tax | 7 | | imposed by this Act
does
not apply
to the proceeds of sales | 8 | | made on or after July 1, 2003 and on or before
December
31, | 9 | | 2018 but applies to 100% of the proceeds of sales made | 10 | | thereafter.
| 11 | | With respect to biodiesel blends with no less than 1% and | 12 | | no more than 10%
biodiesel, the tax imposed by this Act applies | 13 | | to (i) 80% of the
proceeds of sales made on or after July 1, | 14 | | 2003 and on or before December 31, 2018
and (ii) 100% of the | 15 | | proceeds of sales made
thereafter.
If, at any time, however, | 16 | | the tax under this Act on sales of biodiesel blends
with no | 17 | | less than 1% and no more than 10% biodiesel
is imposed at the | 18 | | rate of
1.25%, then the
tax imposed by this Act applies to 100% | 19 | | of the proceeds of sales of biodiesel
blends with no less than | 20 | | 1% and no more than 10% biodiesel
made
during that time.
| 21 | | With respect to 100% biodiesel and biodiesel blends with | 22 | | more than 10%
but no more than 99% biodiesel, the tax imposed | 23 | | by this Act does not apply to
the
proceeds of sales made on or | 24 | | after July 1, 2003 and on or before
December 31, 2018 but | 25 | | applies to 100% of the proceeds of sales made
thereafter.
| 26 | | With respect to food for human consumption that is to be |
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| 1 | | consumed off the
premises where it is sold (other than | 2 | | alcoholic beverages, soft drinks, and
food that has been | 3 | | prepared for immediate consumption) and prescription and
| 4 | | nonprescription medicines, drugs, medical appliances, | 5 | | modifications to a motor
vehicle for the purpose of rendering | 6 | | it usable by a disabled person, and
insulin, urine testing | 7 | | materials, syringes, and needles used by diabetics, for
human | 8 | | use, the tax is imposed at the rate of 1%. For the purposes of | 9 | | this
Section, until September 1, 2009: the term "soft drinks" | 10 | | means any complete, finished, ready-to-use,
non-alcoholic | 11 | | drink, whether carbonated or not, including but not limited to
| 12 | | soda water, cola, fruit juice, vegetable juice, carbonated | 13 | | water, and all other
preparations commonly known as soft drinks | 14 | | of whatever kind or description that
are contained in any | 15 | | closed or sealed bottle, can, carton, or container,
regardless | 16 | | of size; but "soft drinks" does not include coffee, tea, | 17 | | non-carbonated
water, infant formula, milk or milk products as | 18 | | defined in the Grade A
Pasteurized Milk and Milk Products Act, | 19 | | or drinks containing 50% or more
natural fruit or vegetable | 20 | | juice.
| 21 | | Notwithstanding any other provisions of this
Act, | 22 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 23 | | beverages that contain natural or artificial sweeteners. "Soft | 24 | | drinks" do not include beverages that contain milk or milk | 25 | | products, soy, rice or similar milk substitutes, or greater | 26 | | than 50% of vegetable or fruit juice by volume. |
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| 1 | | Until August 1, 2009, and notwithstanding any other | 2 | | provisions of this
Act, "food for human consumption that is to | 3 | | be consumed off the premises where
it is sold" includes all | 4 | | food sold through a vending machine, except soft
drinks and | 5 | | food products that are dispensed hot from a vending machine,
| 6 | | regardless of the location of the vending machine. Beginning | 7 | | August 1, 2009, and notwithstanding any other provisions of | 8 | | this Act, "food for human consumption that is to be consumed | 9 | | off the premises where it is sold" includes all food sold | 10 | | through a vending machine, except soft drinks, candy, and food | 11 | | products that are dispensed hot from a vending machine, | 12 | | regardless of the location of the vending machine.
| 13 | | Notwithstanding any other provisions of this
Act, | 14 | | beginning September 1, 2009, "food for human consumption that | 15 | | is to be consumed off the premises where
it is sold" does not | 16 | | include candy. For purposes of this Section, "candy" means a | 17 | | preparation of sugar, honey, or other natural or artificial | 18 | | sweeteners in combination with chocolate, fruits, nuts or other | 19 | | ingredients or flavorings in the form of bars, drops, or | 20 | | pieces. "Candy" does not include any preparation that contains | 21 | | flour or requires refrigeration. | 22 | | Notwithstanding any other provisions of this
Act, | 23 | | beginning September 1, 2009, "nonprescription medicines and | 24 | | drugs" does not include grooming and hygiene products. For | 25 | | purposes of this Section, "grooming and hygiene products" | 26 | | includes, but is not limited to, soaps and cleaning solutions, |
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| 1 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 2 | | lotions and screens, unless those products are available by | 3 | | prescription only, regardless of whether the products meet the | 4 | | definition of "over-the-counter-drugs". For the purposes of | 5 | | this paragraph, "over-the-counter-drug" means a drug for human | 6 | | use that contains a label that identifies the product as a drug | 7 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 8 | | label includes: | 9 | | (A) A "Drug Facts" panel; or | 10 | | (B) A statement of the "active ingredient(s)" with a | 11 | | list of those ingredients contained in the compound, | 12 | | substance or preparation. | 13 | | If the property that is purchased at retail from a retailer | 14 | | is 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 out-of-state | 19 | | use.
| 20 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | 21 | | eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10; | 22 | | 97-636, eff. 6-1-12 .)
| 23 | | Section 15. The Retailers' Occupation Tax Act is amended by | 24 | | changing Section 2-10 as follows:
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| 1 | | (35 ILCS 120/2-10)
| 2 | | Sec. 2-10. Rate of tax. Unless otherwise provided in this | 3 | | Section,
the tax imposed by this Act is at the rate of 6.25% of | 4 | | gross receipts
from sales of tangible personal property made in | 5 | | the course of business.
| 6 | | Beginning on July 1, 2000 and through December 31, 2000, | 7 | | with respect to
motor fuel, as defined in Section 1.1 of the | 8 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 9 | | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| 10 | | Beginning on August 6, 2010 through August 15, 2010, and | 11 | | during the third weekend in August of 2013 and each year | 12 | | thereafter, with respect to sales tax holiday items as defined | 13 | | in Section 2-8 of this Act, the
tax is imposed at the rate of | 14 | | 1.25%. | 15 | | Within 14 days after the effective date of this amendatory | 16 | | Act of the 91st
General Assembly, each retailer of motor fuel | 17 | | and gasohol shall cause the
following notice to be posted in a | 18 | | prominently visible place on each retail
dispensing device that | 19 | | is used to dispense motor
fuel or gasohol in the State of | 20 | | Illinois: "As of July 1, 2000, the State of
Illinois has | 21 | | eliminated the State's share of sales tax on motor fuel and
| 22 | | gasohol through December 31, 2000. The price on this pump | 23 | | should reflect the
elimination of the tax." The notice shall be | 24 | | printed in bold print on a sign
that is no smaller than 4 | 25 | | inches by 8 inches. The sign shall be clearly
visible to | 26 | | customers. Any retailer who fails to post or maintain a |
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| 1 | | required
sign through December 31, 2000 is guilty of a petty | 2 | | offense for which the fine
shall be $500 per day per each | 3 | | retail premises where a violation occurs.
| 4 | | With respect to gasohol, as defined in the Use Tax Act, the | 5 | | tax imposed
by this Act applies to (i) 70% of the proceeds of | 6 | | sales made on or after
January 1, 1990, and before July 1, | 7 | | 2003, (ii) 80% of the proceeds of
sales made on or after July | 8 | | 1, 2003 and on or before December 31,
2018, and (iii) 100% of | 9 | | the proceeds of sales
made thereafter.
If, at any time, | 10 | | however, the tax under this Act on sales of gasohol, as
defined | 11 | | in
the Use Tax Act, is imposed at the rate of 1.25%, then the
| 12 | | tax imposed by this Act applies to 100% of the proceeds of | 13 | | sales of gasohol
made during that time.
| 14 | | With respect to majority blended ethanol fuel, as defined | 15 | | in the Use Tax Act,
the
tax
imposed by this Act does not apply | 16 | | to the proceeds of sales made on or after
July 1, 2003 and on or | 17 | | before December 31, 2018 but applies to 100% of the
proceeds of | 18 | | sales made thereafter.
| 19 | | With respect to biodiesel blends, as defined in the Use Tax | 20 | | Act, with no less
than 1% and no
more than 10% biodiesel, the | 21 | | tax imposed by this Act
applies to (i) 80% of the proceeds of | 22 | | sales made on or after July 1, 2003
and on or before December | 23 | | 31, 2018 and (ii) 100% of the
proceeds of sales made | 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 |
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| 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 sales made on or | 8 | | after July 1, 2003
and on or before December 31, 2018 but | 9 | | applies to 100% of the
proceeds of sales made thereafter.
| 10 | | With respect to food for human consumption that is to be | 11 | | consumed off the
premises where it is sold (other than | 12 | | alcoholic beverages, soft drinks, and
food that has been | 13 | | prepared for immediate consumption) and prescription and
| 14 | | nonprescription medicines, drugs, medical appliances, | 15 | | modifications to a motor
vehicle for the purpose of rendering | 16 | | it usable by a disabled person, and
insulin, urine testing | 17 | | materials, syringes, and needles used by diabetics, for
human | 18 | | use, the tax is imposed at the rate of 1%. For the purposes of | 19 | | this
Section, until September 1, 2009: the term "soft drinks" | 20 | | means any complete, finished, ready-to-use,
non-alcoholic | 21 | | drink, whether carbonated or not, including but not limited to
| 22 | | soda water, cola, fruit juice, vegetable juice, carbonated | 23 | | water, and all other
preparations commonly known as soft drinks | 24 | | of whatever kind or description that
are contained in any | 25 | | closed or sealed bottle, can, carton, or container,
regardless | 26 | | of size; but "soft drinks" does not include coffee, tea, |
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| 1 | | non-carbonated
water, infant formula, milk or milk products as | 2 | | defined in the Grade A
Pasteurized Milk and Milk Products Act, | 3 | | or drinks containing 50% or more
natural fruit or vegetable | 4 | | juice.
| 5 | | Notwithstanding any other provisions of this
Act, | 6 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 7 | | beverages that contain natural or artificial sweeteners. "Soft | 8 | | drinks" do not include beverages that contain milk or milk | 9 | | products, soy, rice or similar milk substitutes, or greater | 10 | | than 50% of vegetable or fruit juice by volume. | 11 | | Until August 1, 2009, and notwithstanding any other | 12 | | provisions of this
Act, "food for human consumption that is to | 13 | | be consumed off the premises where
it is sold" includes all | 14 | | food sold through a vending machine, except soft
drinks and | 15 | | food products that are dispensed hot from a vending machine,
| 16 | | regardless of the location of the vending machine. Beginning | 17 | | August 1, 2009, and notwithstanding any other provisions of | 18 | | this Act, "food for human consumption that is to be consumed | 19 | | off the premises where it is sold" includes all food sold | 20 | | through a vending machine, except soft drinks, candy, and food | 21 | | products that are dispensed hot from a vending machine, | 22 | | regardless of the location of the vending machine.
| 23 | | Notwithstanding any other provisions of this
Act, | 24 | | beginning September 1, 2009, "food for human consumption that | 25 | | is to be consumed off the premises where
it is sold" does not | 26 | | include candy. For purposes of this Section, "candy" means a |
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| 1 | | preparation of sugar, honey, or other natural or artificial | 2 | | sweeteners in combination with chocolate, fruits, nuts or other | 3 | | ingredients or flavorings in the form of bars, drops, or | 4 | | pieces. "Candy" does not include any preparation that contains | 5 | | flour or requires refrigeration. | 6 | | Notwithstanding any other provisions of this
Act, | 7 | | beginning September 1, 2009, "nonprescription medicines and | 8 | | drugs" does not include grooming and hygiene products. For | 9 | | purposes of this Section, "grooming and hygiene products" | 10 | | includes, but is not limited to, soaps and cleaning solutions, | 11 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 12 | | lotions and screens, unless those products are available by | 13 | | prescription only, regardless of whether the products meet the | 14 | | definition of "over-the-counter-drugs". For the purposes of | 15 | | this paragraph, "over-the-counter-drug" means a drug for human | 16 | | use that contains a label that identifies the product as a drug | 17 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 18 | | label includes: | 19 | | (A) A "Drug Facts" panel; or | 20 | | (B) A statement of the "active ingredient(s)" with a | 21 | | list of those ingredients contained in the compound, | 22 | | substance or preparation.
| 23 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | 24 | | eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10; | 25 | | 97-636, eff. 6-1-12 .)
| 26 | | Section 99. Effective date. This Act takes effect upon |
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| 1 | | becoming law.
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