Full Text of HB3512 097th General Assembly
HB3512 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB3512 Introduced 2/24/2011, by Rep. Marlow H. Colvin SYNOPSIS AS INTRODUCED: |
| 35 ILCS 105/3-6 | | 35 ILCS 105/3-10 | | 35 ILCS 110/3-6 new | | 35 ILCS 110/3-10 | from Ch. 120, par. 439.33-10 | 35 ILCS 110/9 | from Ch. 120, par. 439.39 | 35 ILCS 115/3-6 new | | 35 ILCS 115/3-10 | from Ch. 120, par. 439.103-10 | 35 ILCS 115/9 | from Ch. 120, par. 439.109 | 35 ILCS 120/2-8 | | 35 ILCS 120/2-10 | |
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Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, during the first Monday in September in 2011 and each year thereafter, the tax imposed under the Acts on Energy Star products shall be at the rate of 1.25% (instead of 6.25%). 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 Use Tax Act is amended by changing Sections | 5 | | 3-6 and 3-10 as follows: | 6 | | (35 ILCS 105/3-6) | 7 | | Sec. 3-6. Sales tax holiday items. | 8 | | (a) The tangible personal property described in this | 9 | | subsection qualifies for the
1.25% reduced rate of tax for the | 10 | | period set forth in Section 3-10 of this Act (hereinafter
| 11 | | referred to as the Sales Tax Holiday Period). The reduced rate | 12 | | on these items shall be
administered under the provisions of | 13 | | subsection (b) of this Section. The following items are subject | 14 | | to the
reduced rate: | 15 | | (1) Clothing items that each have a retail selling | 16 | | price of less than $100. | 17 | | "Clothing" means, unless otherwise specified in this | 18 | | Section, all human wearing
apparel suitable for general | 19 | | use. "Clothing" does not include clothing
accessories, | 20 | | protective equipment, or sport or recreational equipment.
| 21 | | "Clothing" includes, but is not limited to: household and | 22 | | shop aprons; athletic
supporters; bathing suits and caps; | 23 | | belts and suspenders; boots; coats and
jackets; ear muffs; |
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| 1 | | footlets; gloves and mittens for general use; hats and | 2 | | caps;
hosiery; insoles for shoes; lab coats; neckties; | 3 | | overshoes; pantyhose;
rainwear; rubber pants; sandals; | 4 | | scarves; shoes and shoelaces; slippers;
sneakers; socks | 5 | | and stockings; steel-toed shoes; underwear; and school
| 6 | | uniforms. | 7 | | "Clothing accessories" means, but is not limited to: | 8 | | briefcases; cosmetics; hair
notions, including, but not | 9 | | limited to barrettes, hair bows, and hair nets;
handbags; | 10 | | handkerchiefs; jewelry; non-prescription sunglasses; | 11 | | umbrellas;
wallets; watches; and wigs and hair pieces. | 12 | | "Protective equipment" means, but is not limited to: | 13 | | breathing masks; clean
room apparel and equipment; ear and | 14 | | hearing protectors; face shields; hard
hats; helmets; | 15 | | paint or dust respirators; protective gloves; safety | 16 | | glasses and
goggles; safety belts; tool belts; and welder's | 17 | | gloves and masks. | 18 | | "Sport or recreational equipment" means, but is not | 19 | | limited to: ballet and tap
shoes; cleated or spiked | 20 | | athletic shoes; gloves, including, but not limited to,
| 21 | | baseball, bowling, boxing, hockey, and golf gloves; | 22 | | goggles; hand and elbow guards;
life preservers and vests; | 23 | | mouth guards; roller and ice skates; shin guards;
shoulder | 24 | | pads; ski boots; waders; and wetsuits and fins. | 25 | | (2) School supplies. "School supplies" means, unless | 26 | | otherwise specified in this
Section, items used by a |
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| 1 | | student in a course of study. The purchase of school
| 2 | | supplies for use by persons other than students for use in | 3 | | a course of study are not
eligible for the reduced rate of | 4 | | tax. "School supplies" do not include school art
supplies; | 5 | | school instructional materials; cameras; film and memory | 6 | | cards;
videocameras, tapes, and videotapes; computers; | 7 | | cell phones; Personal Digital
Assistants (PDAs); handheld | 8 | | electronic schedulers; and school computer
supplies. | 9 | | "School supplies" includes, but is not limited to: | 10 | | binders; book bags;
calculators; cellophane tape; | 11 | | blackboard chalk; compasses; composition books;
crayons; | 12 | | erasers; expandable, pocket, plastic, and manila folders; | 13 | | glue, paste,
and paste sticks; highlighters; index cards; | 14 | | index card boxes; legal pads; lunch
boxes; markers; | 15 | | notebooks; paper, including loose leaf ruled notebook | 16 | | paper, copy paper,
graph paper, tracing paper, manila | 17 | | paper, colored paper, poster board, and
construction | 18 | | paper; pencils; pencil leads; pens; ink and ink refills for | 19 | | pens; pencil
boxes and other school supply boxes; pencil | 20 | | sharpeners; protractors; rulers;
scissors; and writing | 21 | | tablets. | 22 | | "School art supply" means an item commonly used by a | 23 | | student in a course of
study for artwork and includes only | 24 | | the following items: clay and glazes; acrylic, tempera, and | 25 | | oil paint; paintbrushes for artwork; sketch and drawing | 26 | | pads; and
watercolors. |
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| 1 | | "School instructional material" means written material | 2 | | commonly used by a
student in a course of study as a | 3 | | reference and to learn the subject being taught
and | 4 | | includes only the following items: reference books; | 5 | | reference maps and
globes; textbooks; and workbooks. | 6 | | "School computer supply" means an item commonly used by | 7 | | a student in a course
of study in which a computer is used | 8 | | and applies only to the following items:
flashdrives and | 9 | | other computer data storage devices; data storage media, | 10 | | such as
diskettes and compact disks; boxes and cases for | 11 | | disk storage; external ports or
drives; computer cases; | 12 | | computer cables; computer printers; and printer
| 13 | | cartridges, toner, and ink. | 14 | | (a-5) During the first Monday in September of each year | 15 | | beginning in 2011, energy efficient products are also subject | 16 | | to the reduced rate. For the purposes of this subsection (a-5), | 17 | | "energy efficient product" means any product that qualifies as | 18 | | an Energy Star product by the United States Environmental | 19 | | Protection Agency. The reduced rate on these items shall be
| 20 | | administered under the provisions of subsection (b) of this | 21 | | Section. | 22 | | (b) Administration. Notwithstanding any other provision of | 23 | | this Act, the reduced rate of
tax under Section 3-10 of this | 24 | | Act for sales tax holiday items described in this Section | 25 | | clothing and school supplies shall be
administered by the | 26 | | Department under the provisions of this subsection (b). |
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| 1 | | (1) Bundled sales. Items that qualify for the reduced | 2 | | rate of tax that are bundled
together with items that do | 3 | | not qualify for the reduced rate of tax and that are sold
| 4 | | for one itemized price will be subject to the reduced rate | 5 | | of tax only if the value of
the items that qualify for the | 6 | | reduced rate of tax exceeds the value of the items
that do | 7 | | not qualify for the reduced rate of tax. | 8 | | (2) Coupons and discounts. An unreimbursed discount by | 9 | | the seller reduces the
sales price of the property so that | 10 | | the discounted sales price determines whether
the sales | 11 | | price is within a sales tax holiday price threshold. A | 12 | | coupon or other
reduction in the sales price is treated as | 13 | | a discount if the seller is not reimbursed
for the coupon | 14 | | or reduction amount by a third party. | 15 | | (3) Splitting of items normally sold together. | 16 | | Articles that are normally sold as a
single unit must | 17 | | continue to be sold in that manner. Such articles cannot be | 18 | | priced
separately and sold as individual items in order to | 19 | | obtain the reduced rate of tax.
For example, a pair of | 20 | | shoes cannot have each shoe sold separately so that the
| 21 | | sales price of each shoe is within a sales tax holiday | 22 | | price threshold. | 23 | | (4) Rain checks. A rain check is a procedure that | 24 | | allows a customer to purchase an
item at a certain price at | 25 | | a later time because the particular item was out of stock.
| 26 | | Eligible property that customers purchase during the Sales |
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| 1 | | Tax Holiday Period
with the use of a rain check will | 2 | | qualify for the reduced rate of tax regardless of
when the | 3 | | rain check was issued. Issuance of a rain check during the | 4 | | Sales Tax
Holiday Period will not qualify eligible property | 5 | | for the reduced rate of tax if the
property is actually | 6 | | purchased after the Sales Tax Holiday Period. | 7 | | (5) Exchanges. The procedure for an exchange in regards | 8 | | to a sales tax holiday is
as follows: | 9 | | (A) If a customer purchases an item of eligible | 10 | | property during the Sales Tax
Holiday Period, but later | 11 | | exchanges the item for a similar eligible item,
even if | 12 | | a different size, different color, or other feature, no | 13 | | additional tax is
due even if the exchange is made | 14 | | after the Sales Tax Holiday Period. | 15 | | (B) If a customer purchases an item of eligible | 16 | | property during the Sales Tax
Holiday Period, but after | 17 | | the Sales Tax Holiday Period has ended, the
customer | 18 | | returns the item and receives credit on the purchase of | 19 | | a different
item, the 6.25% general merchandise sales | 20 | | tax rate is due on the sale of the
newly purchased | 21 | | item. | 22 | | (C) If a customer purchases an item of eligible | 23 | | property before the Sales Tax
Holiday Period, but | 24 | | during the Sales Tax Holiday Period the customer
| 25 | | returns the item and receives credit on the purchase of | 26 | | a different item of
eligible property, the reduced rate |
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| 1 | | of tax is due on the sale of the new item
if the new | 2 | | item is purchased during the Sales Tax Holiday Period. | 3 | | (6) Delivery charges. Delivery charges, including | 4 | | shipping, handling and service
charges, are part of the | 5 | | sales price of eligible property. | 6 | | (7) Order date and back orders. For the purpose of a | 7 | | sales tax holiday, eligible
property qualifies for the | 8 | | reduced rate of tax if: (i) the item is both delivered to | 9 | | and paid for by the customer during the Sales
Tax Holiday | 10 | | Period or (ii) the customer orders and pays for the item | 11 | | and the seller accepts the order
during the Sales Tax | 12 | | Holiday Period for immediate shipment, even if
delivery is | 13 | | made after the Sales Tax Holiday Period. The seller accepts
| 14 | | an order when the seller has taken action to fill the order | 15 | | for immediate
shipment. Actions to fill an order include | 16 | | placement of an "in date" stamp
on an order or assignment | 17 | | of an "order number" to an order within the
Sales Tax | 18 | | Holiday Period. An order is for immediate shipment when the
| 19 | | customer does not request delayed shipment. An order is for | 20 | | immediate
shipment notwithstanding that the shipment may | 21 | | be delayed because of a
backlog of orders or because stock | 22 | | is currently unavailable to, or on back
order by, the | 23 | | seller. | 24 | | (8) Returns. For a 60-day period immediately after the | 25 | | Sales Tax Holiday Period,
if a customer returns an item | 26 | | that would qualify for the reduced rate of tax,
credit for |
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| 1 | | or refund of sales tax shall be given only at the reduced | 2 | | rate unless the
customer provides a receipt or invoice that | 3 | | shows tax was paid at the 6.25%
general merchandise rate, | 4 | | or the seller has sufficient documentation to show that
tax | 5 | | was paid at the 6.25% general merchandise rate on the | 6 | | specific item. This 60-day period is set solely for the | 7 | | purpose of designating a time period during which
the | 8 | | customer must provide documentation that shows that the | 9 | | appropriate sales
tax rate was paid on returned | 10 | | merchandise. The 60-day period is not intended to
change a | 11 | | seller's policy on the time period during which the seller | 12 | | will accept
returns. | 13 | | (c) The Department may implement the provisions of this | 14 | | Section through the use of
emergency rules, along with | 15 | | permanent rules filed concurrently with such
emergency rules, | 16 | | in accordance with the provisions of Section 5-45 of the | 17 | | Illinois
Administrative Procedure Act. For purposes of the | 18 | | Illinois Administrative
Procedure Act, the adoption of rules to | 19 | | implement the provisions of this Section shall
be deemed an | 20 | | emergency and necessary for the public interest, safety, and | 21 | | welfare.
| 22 | | (Source: P.A. 96-1012, eff. 7-7-10.)
| 23 | | (35 ILCS 105/3-10)
| 24 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this | 25 | | Section, the tax
imposed by this Act is at the rate of 6.25% of |
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| 1 | | either the selling price or the
fair market value, if any, of | 2 | | the tangible personal property. In all cases
where property | 3 | | functionally used or consumed is the same as the property that
| 4 | | was purchased at retail, then the tax is imposed on the selling | 5 | | price of the
property. In all cases where property functionally | 6 | | used or consumed is a
by-product or waste product that has been | 7 | | refined, manufactured, or produced
from property purchased at | 8 | | retail, then the tax is imposed on the lower of the
fair market | 9 | | value, if any, of the specific property so used in this State | 10 | | or on
the selling price of the property purchased at retail. | 11 | | For purposes of this
Section "fair market value" means the | 12 | | price at which property would change
hands between a willing | 13 | | buyer and a willing seller, neither being under any
compulsion | 14 | | to buy or sell and both having reasonable knowledge of the
| 15 | | relevant facts. The fair market value shall be established by | 16 | | Illinois sales by
the taxpayer of the same property as that | 17 | | functionally used or consumed, or if
there are no such sales by | 18 | | the taxpayer, then comparable sales or purchases of
property of | 19 | | like kind and character in Illinois.
| 20 | | Beginning on July 1, 2000 and through December 31, 2000, | 21 | | with respect to
motor fuel, as defined in Section 1.1 of the | 22 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 23 | | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| 24 | | Beginning on August 6, 2010 through August 15, 2010, with | 25 | | respect to sales tax holiday items as defined in subsection (a) | 26 | | of Section 3-6 of this Act, the
tax is imposed at the rate of |
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| 1 | | 1.25%. During the first Monday in September of each year | 2 | | beginning in 2011, with respect to sales tax holiday items as | 3 | | defined in subsection (a-5) of Section 3-6 of this Act, the
tax | 4 | | is imposed at the rate of 1.25%. | 5 | | With respect to gasohol, the tax imposed by this Act | 6 | | applies to (i) 70%
of the proceeds of sales made on or after | 7 | | January 1, 1990, and before
July 1, 2003, (ii) 80% of the | 8 | | proceeds of sales made
on or after July 1, 2003 and on or | 9 | | before December 31, 2013, and (iii) 100% of the proceeds of | 10 | | sales made
thereafter.
If, at any time, however, the tax under | 11 | | this Act on sales of gasohol is
imposed at the
rate of 1.25%, | 12 | | then the tax imposed by this Act applies to 100% of the | 13 | | proceeds
of sales of gasohol made during that time.
| 14 | | With respect to majority blended ethanol fuel, the tax | 15 | | imposed by this Act
does
not apply
to the proceeds of sales | 16 | | made on or after July 1, 2003 and on or before
December
31, | 17 | | 2013 but applies to 100% of the proceeds of sales made | 18 | | thereafter.
| 19 | | With respect to biodiesel blends with no less than 1% and | 20 | | no more than 10%
biodiesel, the tax imposed by this Act applies | 21 | | to (i) 80% of the
proceeds of sales made on or after July 1, | 22 | | 2003 and on or before December 31,
2013 and (ii) 100% of the | 23 | | proceeds of sales made
thereafter.
If, at any time, however, | 24 | | the tax under this Act on sales of biodiesel blends
with no | 25 | | less than 1% and no more than 10% biodiesel
is imposed at the | 26 | | rate of
1.25%, then the
tax imposed by this Act applies to 100% |
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| 1 | | of the proceeds of sales of biodiesel
blends with no less than | 2 | | 1% and no more than 10% biodiesel
made
during that time.
| 3 | | With respect to 100% biodiesel and biodiesel blends with | 4 | | more than 10%
but no more than 99% biodiesel, the tax imposed | 5 | | by this Act does not apply to
the
proceeds of sales made on or | 6 | | after July 1, 2003 and on or before
December 31, 2013 but | 7 | | applies to 100% of the proceeds of sales made
thereafter.
| 8 | | With respect to food for human consumption that is to be | 9 | | consumed off the
premises where it is sold (other than | 10 | | alcoholic beverages, soft drinks, and
food that has been | 11 | | prepared for immediate consumption) and prescription and
| 12 | | nonprescription medicines, drugs, medical appliances, | 13 | | modifications to a motor
vehicle for the purpose of rendering | 14 | | it usable by a disabled person, and
insulin, urine testing | 15 | | materials, syringes, and needles used by diabetics, for
human | 16 | | use, the tax is imposed at the rate of 1%. For the purposes of | 17 | | this
Section, until September 1, 2009: the term "soft drinks" | 18 | | means any complete, finished, ready-to-use,
non-alcoholic | 19 | | drink, whether carbonated or not, including but not limited to
| 20 | | soda water, cola, fruit juice, vegetable juice, carbonated | 21 | | water, and all other
preparations commonly known as soft drinks | 22 | | of whatever kind or description that
are contained in any | 23 | | closed or sealed bottle, can, carton, or container,
regardless | 24 | | of size; but "soft drinks" does not include coffee, tea, | 25 | | non-carbonated
water, infant formula, milk or milk products as | 26 | | defined in the Grade A
Pasteurized Milk and Milk Products Act, |
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| 1 | | or drinks containing 50% or more
natural fruit or vegetable | 2 | | juice.
| 3 | | Notwithstanding any other provisions of this
Act, | 4 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 5 | | beverages that contain natural or artificial sweeteners. "Soft | 6 | | drinks" do not include beverages that contain milk or milk | 7 | | products, soy, rice or similar milk substitutes, or greater | 8 | | than 50% of vegetable or fruit juice by volume. | 9 | | Until August 1, 2009, and notwithstanding any other | 10 | | provisions of this
Act, "food for human consumption that is to | 11 | | be consumed off the premises where
it is sold" includes all | 12 | | food sold through a vending machine, except soft
drinks and | 13 | | food products that are dispensed hot from a vending machine,
| 14 | | regardless of the location of the vending machine. Beginning | 15 | | August 1, 2009, and notwithstanding any other provisions of | 16 | | this Act, "food for human consumption that is to be consumed | 17 | | off the premises where it is sold" includes all food sold | 18 | | through a vending machine, except soft drinks, candy, and food | 19 | | products that are dispensed hot from a vending machine, | 20 | | regardless of the location of the vending machine.
| 21 | | Notwithstanding any other provisions of this
Act, | 22 | | beginning September 1, 2009, "food for human consumption that | 23 | | is to be consumed off the premises where
it is sold" does not | 24 | | include candy. For purposes of this Section, "candy" means a | 25 | | preparation of sugar, honey, or other natural or artificial | 26 | | sweeteners in combination with chocolate, fruits, nuts or other |
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| 1 | | ingredients or flavorings in the form of bars, drops, or | 2 | | pieces. "Candy" does not include any preparation that contains | 3 | | flour or requires refrigeration. | 4 | | Notwithstanding any other provisions of this
Act, | 5 | | beginning September 1, 2009, "nonprescription medicines and | 6 | | drugs" does not include grooming and hygiene products. For | 7 | | purposes of this Section, "grooming and hygiene products" | 8 | | includes, but is not limited to, soaps and cleaning solutions, | 9 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 10 | | lotions and screens, unless those products are available by | 11 | | prescription only, regardless of whether the products meet the | 12 | | definition of "over-the-counter-drugs". For the purposes of | 13 | | this paragraph, "over-the-counter-drug" means a drug for human | 14 | | use that contains a label that identifies the product as a drug | 15 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 16 | | label includes: | 17 | | (A) A "Drug Facts" panel; or | 18 | | (B) A statement of the "active ingredient(s)" with a | 19 | | list of those ingredients contained in the compound, | 20 | | substance or preparation. | 21 | | If the property that is purchased at retail from a retailer | 22 | | is acquired
outside Illinois and used outside Illinois before | 23 | | being brought to Illinois
for use here and is taxable under | 24 | | this Act, the "selling price" on which
the tax is computed | 25 | | shall be reduced by an amount that represents a
reasonable | 26 | | allowance for depreciation for the period of prior out-of-state |
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| 1 | | use.
| 2 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | 3 | | eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10.)
| 4 | | Section 10. The Service Use Tax Act is amended by changing | 5 | | Sections 3-10 and 9 and by adding Section 3-6 as follows: | 6 | | (35 ILCS 110/3-6 new) | 7 | | Sec. 3-6. Sales tax holiday items. | 8 | | (a) During the first Monday in September of each year | 9 | | beginning in 2011, energy efficient products qualify for a
| 10 | | 1.25% reduced rate of tax as set forth in Section 3-10 of this | 11 | | Act. For the purposes of this subsection (a), "energy efficient | 12 | | product" means any product that qualifies as an Energy Star | 13 | | product by the United States Environmental Protection Agency. | 14 | | The reduced rate on these items shall be
administered under the | 15 | | provisions of subsection (b) of this Section. | 16 | | (b) Notwithstanding any other provision of this Act, the | 17 | | reduced rate of
tax under Section 3-10 of this Act for sales | 18 | | tax holiday items described in subsection (a) of this Section | 19 | | shall be administered by the Department in the same manner as | 20 | | provided in subsection (b) of Section 3-6 of the Use Tax Act.
| 21 | | (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
| 22 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this | 23 | | Section,
the tax imposed by this Act is at the rate of 6.25% of |
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| 1 | | the selling
price of tangible personal property transferred as | 2 | | an incident to the sale
of service, but, for the purpose of | 3 | | computing this tax, in no event shall
the selling price be less | 4 | | than the cost price of the property to the
serviceman.
| 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 applies to (i) 70% of the selling price | 11 | | of property transferred
as an incident to the sale of service | 12 | | on or after January 1, 1990,
and before July 1, 2003, (ii) 80% | 13 | | of the selling price of
property transferred as an incident to | 14 | | the sale of service on or after July
1, 2003 and on or before | 15 | | December 31, 2013, and (iii)
100% of the selling 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, 2013 but applies to 100% of the selling price | 25 | | thereafter.
| 26 | | With respect to biodiesel blends, as defined in the Use Tax |
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| 1 | | Act, with no less
than 1% and no
more than 10% biodiesel, the | 2 | | tax imposed by this Act
applies to (i) 80% of the selling price | 3 | | of property transferred as an incident
to the sale of service | 4 | | on or after July 1, 2003 and on or before December 31,
2013 and | 5 | | (ii) 100% of the proceeds of the selling price
thereafter.
If, | 6 | | at any time, however, the tax under this Act on sales of | 7 | | biodiesel blends,
as
defined in the Use Tax Act, with no less | 8 | | than 1% and no more than 10% biodiesel
is imposed at the rate | 9 | | of 1.25%, then the
tax imposed by this Act applies to 100% of | 10 | | the proceeds of sales of biodiesel
blends with no less than 1% | 11 | | 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, the tax imposed | 15 | | by this Act
does not apply to the proceeds of the selling price | 16 | | of property transferred
as an incident to the sale of service | 17 | | on or after July 1, 2003 and on or before
December 31, 2013 but | 18 | | applies to 100% of the selling price thereafter.
| 19 | | During the first Monday in September of each year beginning | 20 | | in 2011, with
respect to sales tax holiday items as defined in | 21 | | Section 3-6 of
this Act, the tax is imposed at the rate of | 22 | | 1.25%. | 23 | | At the election of any registered serviceman made for each | 24 | | fiscal year,
sales of service in which the aggregate annual | 25 | | cost price of tangible
personal property transferred as an | 26 | | incident to the sales of service is
less than 35%, or 75% in |
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| 1 | | the case of servicemen transferring prescription
drugs or | 2 | | servicemen engaged in graphic arts production, of the aggregate
| 3 | | annual total gross receipts from all sales of service, the tax | 4 | | imposed by
this Act shall be based on the serviceman's cost | 5 | | price of the tangible
personal property transferred as an | 6 | | incident to the sale of those services.
| 7 | | The tax shall be imposed at the rate of 1% on food prepared | 8 | | for
immediate consumption and transferred incident to a sale of | 9 | | service subject
to this Act or the Service Occupation Tax Act | 10 | | by an entity licensed under
the Hospital Licensing Act, the | 11 | | Nursing Home Care Act, the MR/DD Community Care Act, or the
| 12 | | Child Care
Act of 1969. The tax shall
also be imposed at the | 13 | | rate of 1% on food for human consumption that is to be
consumed | 14 | | off the premises where it is sold (other than alcoholic | 15 | | beverages,
soft drinks, and food that has been prepared for | 16 | | immediate consumption and is
not otherwise included in this | 17 | | paragraph) and prescription and nonprescription
medicines, | 18 | | drugs, medical appliances, modifications to a motor vehicle for | 19 | | the
purpose of rendering it usable by a disabled person, and | 20 | | insulin, urine testing
materials,
syringes, and needles used by | 21 | | diabetics, for
human use. For the purposes of this Section, | 22 | | until September 1, 2009: the term "soft drinks" means any
| 23 | | complete, finished, ready-to-use, non-alcoholic drink, whether | 24 | | carbonated or
not, including but not limited to soda water, | 25 | | cola, fruit juice, vegetable
juice, carbonated water, and all | 26 | | other preparations commonly known as soft
drinks of whatever |
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| 1 | | kind or description that are contained in any closed or
sealed | 2 | | bottle, can, carton, or container, regardless of size; but | 3 | | "soft drinks"
does not include coffee, tea, non-carbonated | 4 | | water, infant formula, milk or
milk products as defined in the | 5 | | Grade A Pasteurized Milk and Milk Products Act,
or drinks | 6 | | containing 50% or more natural fruit or vegetable 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 |
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| 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 other | 5 | | 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 | | If the property that is acquired from a serviceman is | 26 | | acquired outside
Illinois and used outside Illinois before |
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| 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 out-of-state | 5 | | use.
| 6 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | 7 | | eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10.) | 8 | | (35 ILCS 110/9) (from Ch. 120, par. 439.39) | 9 | | Sec. 9. Each serviceman required or authorized to collect | 10 | | the tax
herein imposed shall pay to the Department the amount | 11 | | of such tax
(except as otherwise provided) at the time when he | 12 | | is required to file
his return for the period during which such | 13 | | tax was collected, less a
discount of 2.1% prior to January 1, | 14 | | 1990 and 1.75% on and after January 1,
1990, or $5 per calendar | 15 | | year, whichever is greater, which is allowed to
reimburse the | 16 | | serviceman for expenses incurred in collecting the tax,
keeping | 17 | | records, preparing and filing returns, remitting the tax and
| 18 | | supplying data to the Department on request. A serviceman need | 19 | | not remit
that part of any tax collected by him to the extent | 20 | | that he is required to
pay and does pay the tax imposed by the | 21 | | Service Occupation Tax Act with
respect to his sale of service | 22 | | involving the incidental transfer by him of
the same property. | 23 | | Except as provided hereinafter in this Section, on or | 24 | | before the twentieth
day of each calendar month, such | 25 | | serviceman shall file a return for the
preceding calendar month |
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| 1 | | in accordance with reasonable Rules and
Regulations to be | 2 | | promulgated by the Department. Such return shall be
filed on a | 3 | | form prescribed by the Department and shall contain such
| 4 | | information as the Department may reasonably require. | 5 | | The Department may require returns to be filed on a | 6 | | quarterly basis.
If so required, a return for each calendar | 7 | | quarter shall be filed on or
before the twentieth day of the | 8 | | calendar month following the end of such
calendar quarter. The | 9 | | taxpayer shall also file a return with the
Department for each | 10 | | of the first two months of each calendar quarter, on or
before | 11 | | the twentieth day of the following calendar month, stating: | 12 | | 1. The name of the seller; | 13 | | 2. The address of the principal place of business from | 14 | | which he engages
in business as a serviceman in this State; | 15 | | 3. The total amount of taxable receipts received by him | 16 | | during the
preceding calendar month, including receipts | 17 | | from charge and time sales,
but less all deductions allowed | 18 | | by law; | 19 | | 4. The amount of credit provided in Section 2d of this | 20 | | Act; | 21 | | 5. The amount of tax due; | 22 | | 5-5. The signature of the taxpayer; and | 23 | | 6. Such other reasonable information as the Department | 24 | | may
require. | 25 | | If a taxpayer fails to sign a return within 30 days after | 26 | | the proper notice
and demand for signature by the Department, |
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| 1 | | the return shall be considered
valid and any amount shown to be | 2 | | due on the return shall be deemed assessed. | 3 | | Beginning October 1, 1993, a taxpayer who has an average | 4 | | monthly tax
liability of $150,000 or more shall make all | 5 | | payments required by rules of
the Department by electronic | 6 | | funds transfer. Beginning October 1, 1994, a
taxpayer who has | 7 | | an average monthly tax liability of $100,000 or more shall
make | 8 | | all payments required by rules of the Department by electronic | 9 | | funds
transfer. Beginning October 1, 1995, a taxpayer who has | 10 | | an average monthly
tax liability of $50,000 or more shall make | 11 | | all payments required by rules
of the Department by electronic | 12 | | funds transfer.
Beginning October 1, 2000, a taxpayer who has | 13 | | an annual tax liability of
$200,000 or more shall make all | 14 | | payments required by rules of the Department by
electronic | 15 | | funds transfer. The term "annual tax liability" shall be the | 16 | | sum of
the taxpayer's liabilities under this Act, and under all | 17 | | other State and local
occupation and use tax laws administered | 18 | | by the Department, for the immediately
preceding calendar year.
| 19 | | The term "average monthly tax
liability" means the sum of the | 20 | | taxpayer's liabilities under this Act, and
under all other | 21 | | State and local occupation and use tax laws administered by the
| 22 | | Department, for the immediately preceding calendar year | 23 | | divided by 12.
Beginning on October 1, 2002, a taxpayer who has | 24 | | a tax liability in the
amount set forth in subsection (b) of | 25 | | Section 2505-210 of the Department of
Revenue Law shall make | 26 | | all payments required by rules of the Department by
electronic |
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| 1 | | funds transfer. | 2 | | Before August 1 of each year beginning in 1993, the | 3 | | Department shall
notify all taxpayers required to make payments | 4 | | by electronic funds transfer.
All taxpayers required to make | 5 | | payments by electronic funds transfer shall
make those payments | 6 | | for a minimum of one year beginning on October 1. | 7 | | Any taxpayer not required to make payments by electronic | 8 | | funds transfer
may make payments by electronic funds transfer | 9 | | with the permission of the
Department. | 10 | | All taxpayers required to make payment by electronic funds | 11 | | transfer and
any taxpayers authorized to voluntarily make | 12 | | payments by electronic funds
transfer shall make those payments | 13 | | in the manner authorized by the Department. | 14 | | The Department shall adopt such rules as are necessary to | 15 | | effectuate a
program of electronic funds transfer and the | 16 | | requirements of this Section. | 17 | | If the serviceman is otherwise required to file a monthly | 18 | | return and
if the serviceman's average monthly tax liability to | 19 | | the Department
does not exceed $200, the Department may | 20 | | authorize his returns to be
filed on a quarter annual basis, | 21 | | with the return for January, February
and March of a given year | 22 | | being due by April 20 of such year; with the
return for April, | 23 | | May and June of a given year being due by July 20 of
such year; | 24 | | with the return for July, August and September of a given
year | 25 | | being due by October 20 of such year, and with the return for
| 26 | | October, November and December of a given year being due by |
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| 1 | | January 20
of the following year. | 2 | | If the serviceman is otherwise required to file a monthly | 3 | | or quarterly
return and if the serviceman's average monthly tax | 4 | | liability to the Department
does not exceed $50, the Department | 5 | | may authorize his returns to be
filed on an annual basis, with | 6 | | the return for a given year being due by
January 20 of the | 7 | | following year. | 8 | | Such quarter annual and annual returns, as to form and | 9 | | substance,
shall be subject to the same requirements as monthly | 10 | | returns. | 11 | | Notwithstanding any other provision in this Act concerning | 12 | | the time
within which a serviceman may file his return, in the | 13 | | case of any
serviceman who ceases to engage in a kind of | 14 | | business which makes him
responsible for filing returns under | 15 | | this Act, such serviceman shall
file a final return under this | 16 | | Act with the Department not more than 1
month after | 17 | | discontinuing such business. | 18 | | Where a serviceman collects the tax with respect to the | 19 | | selling price of
property which he sells and the purchaser | 20 | | thereafter returns such
property and the serviceman refunds the | 21 | | selling price thereof to the
purchaser, such serviceman shall | 22 | | also refund, to the purchaser, the tax
so collected from the | 23 | | purchaser. When filing his return for the period
in which he | 24 | | refunds such tax to the purchaser, the serviceman may deduct
| 25 | | the amount of the tax so refunded by him to the purchaser from | 26 | | any other
Service Use Tax, Service Occupation Tax, retailers' |
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| 1 | | occupation tax or
use tax which such serviceman may be required | 2 | | to pay or remit to the
Department, as shown by such return, | 3 | | provided that the amount of the tax
to be deducted shall | 4 | | previously have been remitted to the Department by
such | 5 | | serviceman. If the serviceman shall not previously have | 6 | | remitted
the amount of such tax to the Department, he shall be | 7 | | entitled to no
deduction hereunder upon refunding such tax to | 8 | | the purchaser. | 9 | | Any serviceman filing a return hereunder shall also include | 10 | | the total
tax upon the selling price of tangible personal | 11 | | property purchased for use
by him as an incident to a sale of | 12 | | service, and such serviceman shall remit
the amount of such tax | 13 | | to the Department when filing such return. | 14 | | If experience indicates such action to be practicable, the | 15 | | Department
may prescribe and furnish a combination or joint | 16 | | return which will
enable servicemen, who are required to file | 17 | | returns hereunder and also
under the Service Occupation Tax | 18 | | Act, to furnish all the return
information required by both | 19 | | Acts on the one form. | 20 | | Where the serviceman has more than one business registered | 21 | | with the
Department under separate registration hereunder, | 22 | | such serviceman shall
not file each return that is due as a | 23 | | single return covering all such
registered businesses, but | 24 | | shall file separate returns for each such
registered business. | 25 | | Beginning January 1, 1990, each month the Department shall | 26 | | pay into
the State and Local Tax Reform Fund, a special fund in |
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| 1 | | the State Treasury,
the net revenue realized for the preceding | 2 | | month from the 1% tax on sales
of food for human consumption | 3 | | which is to be consumed off the premises
where it is sold | 4 | | (other than alcoholic beverages, soft drinks and food
which has | 5 | | been prepared for immediate consumption) and prescription and
| 6 | | nonprescription medicines, drugs, medical appliances and | 7 | | insulin, urine
testing materials, syringes and needles used by | 8 | | diabetics. | 9 | | Beginning January 1, 1990, each month the Department shall | 10 | | pay into
the State and Local Sales Tax Reform Fund 20% of the | 11 | | net revenue realized
for the preceding month from the 6.25% | 12 | | general rate on transfers of
tangible personal property, other | 13 | | than tangible personal property which is
purchased outside | 14 | | Illinois at retail from a retailer and which is titled or
| 15 | | registered by an agency of this State's government. | 16 | | Beginning August 1, 2000, each
month the Department shall | 17 | | pay into the
State and Local Sales Tax Reform Fund 100% of the | 18 | | net revenue realized for the
preceding
month from the 1.25% | 19 | | rate on the selling price of motor fuel and gasohol. | 20 | | On October 1 of each year beginning in 2011, the Department | 21 | | shall pay into the
State and Local Sales Tax Reform Fund 100% | 22 | | of the net revenue
realized for the preceding month from the | 23 | | 1.25% rate on the
selling price of sales tax holiday items. | 24 | | Beginning October 1, 2009, each month the Department shall | 25 | | pay into the Capital Projects Fund an amount that is equal to | 26 | | an amount estimated by the Department to represent 80% of the |
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| 1 | | net revenue realized for the preceding month from the sale of | 2 | | candy, grooming and hygiene products, and soft drinks that had | 3 | | been taxed at a rate of 1% prior to September 1, 2009 but that | 4 | | is now taxed at 6.25%. | 5 | | Of the remainder of the moneys received by the Department | 6 | | pursuant
to this Act, (a) 1.75% thereof shall be paid into the | 7 | | Build
Illinois Fund and (b) prior to July 1, 1989, 2.2% and on | 8 | | and after July 1,
1989, 3.8% thereof shall be paid into the | 9 | | Build Illinois Fund; provided,
however, that if in any fiscal | 10 | | year the sum of (1) the aggregate of 2.2% or
3.8%, as the case | 11 | | may be, of the moneys received by the Department and
required | 12 | | to be paid into the Build Illinois Fund pursuant to Section 3 | 13 | | of
the Retailers' Occupation Tax Act, Section 9 of the Use Tax | 14 | | Act, Section 9
of the Service Use Tax Act, and Section 9 of the | 15 | | Service Occupation Tax
Act, such Acts being hereinafter called | 16 | | the "Tax Acts" and such aggregate
of 2.2% or 3.8%, as the case | 17 | | may be, of moneys being hereinafter called the
"Tax Act | 18 | | Amount", and (2) the amount transferred to the Build Illinois | 19 | | Fund
from the State and Local Sales Tax Reform Fund shall be | 20 | | less than the
Annual Specified Amount (as defined in Section 3 | 21 | | of the Retailers'
Occupation Tax Act), an amount equal to the | 22 | | difference shall be immediately
paid into the Build Illinois | 23 | | Fund from other moneys received by the
Department pursuant to | 24 | | the Tax Acts; and further provided, that if on the
last | 25 | | business day of any month the sum of (1) the Tax Act Amount | 26 | | required
to be deposited into the Build Illinois Bond Account |
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| 1 | | in the Build Illinois
Fund during such month and (2) the amount | 2 | | transferred during such month to
the Build Illinois Fund from | 3 | | the State and Local Sales Tax Reform Fund
shall have been less | 4 | | than 1/12 of the Annual Specified Amount, an amount
equal to | 5 | | the difference shall be immediately paid into the Build | 6 | | Illinois
Fund from other moneys received by the Department | 7 | | pursuant to the Tax Acts;
and, further provided, that in no | 8 | | event shall the payments required under
the preceding proviso | 9 | | result in aggregate payments into the Build Illinois
Fund | 10 | | pursuant to this clause (b) for any fiscal year in excess of | 11 | | the
greater of (i) the Tax Act Amount or (ii) the Annual | 12 | | Specified Amount for
such fiscal year; and, further provided, | 13 | | that the amounts payable into the
Build Illinois Fund under | 14 | | this clause (b) shall be payable only until such
time as the | 15 | | aggregate amount on deposit under each trust indenture securing
| 16 | | Bonds issued and outstanding pursuant to the Build Illinois | 17 | | Bond Act is
sufficient, taking into account any future | 18 | | investment income, to fully
provide, in accordance with such | 19 | | indenture, for the defeasance of or the
payment of the | 20 | | principal of, premium, if any, and interest on the Bonds
| 21 | | secured by such indenture and on any Bonds expected to be | 22 | | issued thereafter
and all fees and costs payable with respect | 23 | | thereto, all as certified by
the Director of the
Bureau of the | 24 | | Budget (now Governor's Office of Management and Budget). If
on | 25 | | the last business day of
any month in which Bonds are | 26 | | outstanding pursuant to the Build Illinois
Bond Act, the |
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| 1 | | aggregate of the moneys deposited in the Build Illinois Bond
| 2 | | Account in the Build Illinois Fund in such month shall be less | 3 | | than the
amount required to be transferred in such month from | 4 | | the Build Illinois
Bond Account to the Build Illinois Bond | 5 | | Retirement and Interest Fund
pursuant to Section 13 of the | 6 | | Build Illinois Bond Act, an amount equal to
such deficiency | 7 | | shall be immediately paid from other moneys received by the
| 8 | | Department pursuant to the Tax Acts to the Build Illinois Fund; | 9 | | provided,
however, that any amounts paid to the Build Illinois | 10 | | Fund in any fiscal
year pursuant to this sentence shall be | 11 | | deemed to constitute payments
pursuant to clause (b) of the | 12 | | preceding sentence and shall reduce the
amount otherwise | 13 | | payable for such fiscal year pursuant to clause (b) of the
| 14 | | preceding sentence. The moneys received by the Department | 15 | | pursuant to this
Act and required to be deposited into the | 16 | | Build Illinois Fund are subject
to the pledge, claim and charge | 17 | | set forth in Section 12 of the Build Illinois
Bond Act. | 18 | | Subject to payment of amounts into the Build Illinois Fund | 19 | | as provided in
the preceding paragraph or in any amendment | 20 | | thereto hereafter enacted, the
following specified monthly | 21 | | installment of the amount requested in the
certificate of the | 22 | | Chairman of the Metropolitan Pier and Exposition
Authority | 23 | | provided under Section 8.25f of the State Finance Act, but not | 24 | | in
excess of the sums designated as "Total Deposit", shall be | 25 | | deposited in the
aggregate from collections under Section 9 of | 26 | | the Use Tax Act, Section 9 of
the Service Use Tax Act, Section |
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| 1 | | 9 of the Service Occupation Tax Act, and
Section 3 of the | 2 | | Retailers' Occupation Tax Act into the McCormick Place
| 3 | | Expansion Project Fund in the specified fiscal years. | |
4 | | Fiscal Year | | Total Deposit | |
5 | | 1993 | | $0 | |
6 | | 1994 | | 53,000,000 | |
7 | | 1995 | | 58,000,000 | |
8 | | 1996 | | 61,000,000 | |
9 | | 1997 | | 64,000,000 | |
10 | | 1998 | | 68,000,000 | |
11 | | 1999 | | 71,000,000 | |
12 | | 2000 | | 75,000,000 | |
13 | | 2001 | | 80,000,000 | |
14 | | 2002 | | 93,000,000 | |
15 | | 2003 | | 99,000,000 | |
16 | | 2004 | | 103,000,000 | |
17 | | 2005 | | 108,000,000 | |
18 | | 2006 | | 113,000,000 | |
19 | | 2007 | | 119,000,000 | |
20 | | 2008 | | 126,000,000 | |
21 | | 2009 | | 132,000,000 | |
22 | | 2010 | | 139,000,000 | |
23 | | 2011 | | 146,000,000 | |
24 | | 2012 | | 153,000,000 | |
25 | | 2013 | | 161,000,000 | |
|
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| 1 | | 2014 | | 170,000,000 | |
2 | | 2015 | | 179,000,000 | |
3 | | 2016 | | 189,000,000 | |
4 | | 2017 | | 199,000,000 | |
5 | | 2018 | | 210,000,000 | |
6 | | 2019 | | 221,000,000 | |
7 | | 2020 | | 233,000,000 | |
8 | | 2021 | | 246,000,000 | |
9 | | 2022 | | 260,000,000 | |
10 | | 2023 | | 275,000,000 | |
11 | | 2024 | | 275,000,000 | |
12 | | 2025 | | 275,000,000 | |
13 | | 2026 | | 279,000,000 | |
14 | | 2027 | | 292,000,000 | |
15 | | 2028 | | 307,000,000 | |
16 | | 2029 | | 322,000,000 | |
17 | | 2030 | | 338,000,000 | |
18 | | 2031 | | 350,000,000 | |
19 | | 2032 | | 350,000,000 | |
20 | | and | | |
|
21 | | each fiscal year | | |
|
22 | | thereafter that bonds | | |
|
23 | | are outstanding under | | |
|
24 | | Section 13.2 of the | | |
|
25 | | Metropolitan Pier and | | |
|
26 | | Exposition Authority Act, | | |
|
|
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| 1 | | but not after fiscal year 2060. | | |
| 2 | | Beginning July 20, 1993 and in each month of each fiscal | 3 | | year thereafter,
one-eighth of the amount requested in the | 4 | | certificate of the Chairman of
the Metropolitan Pier and | 5 | | Exposition Authority for that fiscal year, less
the amount | 6 | | deposited into the McCormick Place Expansion Project Fund by | 7 | | the
State Treasurer in the respective month under subsection | 8 | | (g) of Section 13
of the Metropolitan Pier and Exposition | 9 | | Authority Act, plus cumulative
deficiencies in the deposits | 10 | | required under this Section for previous
months and years, | 11 | | shall be deposited into the McCormick Place Expansion
Project | 12 | | Fund, until the full amount requested for the fiscal year, but | 13 | | not
in excess of the amount specified above as "Total Deposit", | 14 | | has been deposited. | 15 | | Subject to payment of amounts into the Build Illinois Fund | 16 | | and the
McCormick Place Expansion Project Fund
pursuant to the | 17 | | preceding paragraphs or in any amendments thereto hereafter
| 18 | | enacted, beginning July 1, 1993, the Department shall each | 19 | | month pay into the
Illinois Tax Increment Fund 0.27% of 80% of | 20 | | the net revenue realized for the
preceding month from the 6.25% | 21 | | general rate on the selling price of tangible
personal | 22 | | property. | 23 | | Subject to payment of amounts into the Build Illinois Fund | 24 | | and the
McCormick Place Expansion Project Fund pursuant to the | 25 | | preceding paragraphs or
in any
amendments thereto hereafter | 26 | | enacted, beginning with the receipt of the first
report of |
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| 1 | | taxes paid by an eligible business and continuing for a 25-year
| 2 | | period, the Department shall each month pay into the Energy | 3 | | Infrastructure
Fund 80% of the net revenue realized from the | 4 | | 6.25% general rate on the
selling price of Illinois-mined coal | 5 | | that was sold to an eligible business.
For purposes of this | 6 | | paragraph, the term "eligible business" means a new
electric | 7 | | generating facility certified pursuant to Section 605-332 of | 8 | | the
Department of Commerce and
Economic Opportunity Law of the | 9 | | Civil Administrative
Code of Illinois. | 10 | | All remaining moneys received by the Department pursuant to | 11 | | this
Act shall be paid into the General Revenue Fund of the | 12 | | State Treasury. | 13 | | As soon as possible after the first day of each month, upon | 14 | | certification
of the Department of Revenue, the Comptroller | 15 | | shall order transferred and
the Treasurer shall transfer from | 16 | | the General Revenue Fund to the Motor
Fuel Tax Fund an amount | 17 | | equal to 1.7% of 80% of the net revenue realized
under this Act | 18 | | for the second preceding month.
Beginning April 1, 2000, this | 19 | | transfer is no longer required
and shall not be made. | 20 | | Net revenue realized for a month shall be the revenue | 21 | | collected by the State
pursuant to this Act, less the amount | 22 | | paid out during that month as refunds
to taxpayers for | 23 | | overpayment of liability. | 24 | | (Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898, | 25 | | eff. 5-27-10.) |
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| 1 | | Section 15. The Service Occupation Tax Act is amended by | 2 | | changing Sections 3-10 and 9 and by adding Section 3-6 as | 3 | | follows: | 4 | | (35 ILCS 115/3-6 new) | 5 | | Sec. 3-6. Sales tax holiday items. | 6 | | (a) During the first Monday in September of each year | 7 | | beginning in 2011, energy efficient products qualify for a
| 8 | | 1.25% reduced rate of tax as set forth in Section 3-10 of this | 9 | | Act. For the purposes of this subsection (a), "energy efficient | 10 | | product" means any product that qualifies as an Energy Star | 11 | | product by the United States Environmental Protection Agency. | 12 | | The reduced rate on these items shall be
administered under the | 13 | | provisions of subsection (b) of this Section. | 14 | | (b) Notwithstanding any other provision of this Act, the | 15 | | reduced rate of
tax under Section 3-10 of this Act for sales | 16 | | tax holiday items described in subsection (a) of this Section | 17 | | shall be administered by the Department in the same manner as | 18 | | provided in subsection (b) of Section 3-6 of the Use Tax Act.
| 19 | | (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
| 20 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this | 21 | | Section,
the tax imposed by this Act is at the rate of 6.25% of | 22 | | the "selling price",
as defined in Section 2 of the Service Use | 23 | | Tax Act, of the tangible
personal property. For the purpose of | 24 | | computing this tax, in no event
shall the "selling price" be |
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| 1 | | less than the cost price to the serviceman of
the tangible | 2 | | personal property transferred. The selling price of each item
| 3 | | of tangible personal property transferred as an incident of a | 4 | | sale of
service may be shown as a distinct and separate item on | 5 | | the serviceman's
billing to the service customer. If the | 6 | | selling price is not so shown, the
selling price of the | 7 | | tangible personal property is deemed to be 50% of the
| 8 | | serviceman's entire billing to the service customer. When, | 9 | | however, a
serviceman contracts to design, develop, and produce | 10 | | special order machinery or
equipment, the tax imposed by this | 11 | | Act shall be based on the serviceman's
cost price of the | 12 | | tangible personal property transferred incident to the
| 13 | | completion of the contract.
| 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 | | With respect to gasohol, as defined in the Use Tax Act, the | 19 | | tax imposed
by this Act shall apply to (i) 70% of the cost | 20 | | price of property
transferred as
an incident to the sale of | 21 | | service on or after January 1, 1990, and before
July 1, 2003, | 22 | | (ii) 80% of the selling price of property transferred as an
| 23 | | incident to the sale of service on or after July
1, 2003 and on | 24 | | or before December 31, 2013, and (iii) 100%
of
the cost price
| 25 | | thereafter.
If, at any time, however, the tax under this Act on | 26 | | sales of gasohol, as
defined in
the Use Tax Act, 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 gasohol
made during that time.
| 3 | | With respect to majority blended ethanol fuel, as defined | 4 | | in the Use Tax Act,
the
tax
imposed by this Act does not apply | 5 | | to 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 | | December 31, 2013 but applies to 100% of the selling price | 8 | | thereafter.
| 9 | | With respect to biodiesel blends, as defined in the Use Tax | 10 | | Act, with no less
than 1% and no
more than 10% biodiesel, the | 11 | | tax imposed by this Act
applies to (i) 80% of the selling price | 12 | | of property transferred as an incident
to the sale of service | 13 | | on or after July 1, 2003 and on or before December 31,
2013 and | 14 | | (ii) 100% of the proceeds of the selling price
thereafter.
If, | 15 | | at any time, however, the tax under this Act on sales of | 16 | | biodiesel blends,
as
defined in the Use Tax Act, with no less | 17 | | than 1% and no more than 10% biodiesel
is imposed at the rate | 18 | | of 1.25%, then the
tax imposed by this Act applies to 100% of | 19 | | the proceeds of sales of biodiesel
blends with no less than 1% | 20 | | and no more than 10% biodiesel
made
during that time.
| 21 | | With respect to 100% biodiesel, as defined in the Use Tax | 22 | | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| 23 | | more than 10% but no more than 99% biodiesel material, the tax | 24 | | imposed by this
Act
does not apply to the proceeds of the | 25 | | selling price of property transferred
as an incident to the | 26 | | sale of service on or after July 1, 2003 and on or before
|
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| 1 | | December 31, 2013 but applies to 100% of the selling price | 2 | | thereafter.
| 3 | | During the first Monday in September of each year beginning | 4 | | in 2011, with
respect to sales tax holiday items as defined in | 5 | | Section 3-6 of
this Act, the tax is imposed at the rate of | 6 | | 1.25%. | 7 | | At the election of any registered serviceman made for each | 8 | | fiscal year,
sales of service in which the aggregate annual | 9 | | cost price of tangible
personal property transferred as an | 10 | | incident to the sales of service is
less than 35%, or 75% in | 11 | | the case of servicemen transferring prescription
drugs or | 12 | | servicemen engaged in graphic arts production, of the aggregate
| 13 | | annual total gross receipts from all sales of service, the tax | 14 | | imposed by
this Act shall be based on the serviceman's cost | 15 | | price of the tangible
personal property transferred incident to | 16 | | the sale of those services.
| 17 | | The tax shall be imposed at the rate of 1% on food prepared | 18 | | for
immediate consumption and transferred incident to a sale of | 19 | | service subject
to this Act or the Service Occupation Tax Act | 20 | | by an entity licensed under
the Hospital Licensing Act, the | 21 | | Nursing Home Care Act, the MR/DD Community Care Act, or the
| 22 | | Child Care Act of 1969. The tax shall
also be imposed at the | 23 | | rate of 1% on food for human consumption that is
to be consumed | 24 | | off the
premises where it is sold (other than alcoholic | 25 | | beverages, soft drinks, and
food that has been prepared for | 26 | | immediate consumption and is not
otherwise included in this |
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| 1 | | paragraph) and prescription and
nonprescription medicines, | 2 | | drugs, medical appliances, modifications to a motor
vehicle for | 3 | | the purpose of rendering it usable by a disabled person, and
| 4 | | insulin, urine testing materials, syringes, and needles used by | 5 | | diabetics, for
human use. For the purposes of this Section, | 6 | | until September 1, 2009: the term "soft drinks" means any
| 7 | | complete, finished, ready-to-use, non-alcoholic drink, whether | 8 | | carbonated or
not, including but not limited to soda water, | 9 | | cola, fruit juice, vegetable
juice, carbonated water, and all | 10 | | other preparations commonly known as soft
drinks of whatever | 11 | | kind or description that are contained in any closed or
sealed | 12 | | can, carton, or container, regardless of size; but "soft | 13 | | drinks" does not
include coffee, tea, non-carbonated water, | 14 | | infant formula, milk or milk
products as defined in the Grade A | 15 | | Pasteurized Milk and Milk Products Act, or
drinks containing | 16 | | 50% or more natural fruit or vegetable juice.
| 17 | | Notwithstanding any other provisions of this
Act, | 18 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 19 | | beverages that contain natural or artificial sweeteners. "Soft | 20 | | drinks" do not include beverages that contain milk or milk | 21 | | products, soy, rice or similar milk substitutes, or greater | 22 | | than 50% of vegetable or fruit juice by volume. | 23 | | Until August 1, 2009, and notwithstanding any other | 24 | | provisions of this Act, "food for human consumption
that is to | 25 | | be consumed off the premises where it is sold" includes all | 26 | | food
sold through a vending machine, except soft drinks and |
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| 1 | | food products that are
dispensed hot from a vending machine, | 2 | | regardless of the location of the vending
machine. Beginning | 3 | | August 1, 2009, and notwithstanding any other provisions of | 4 | | this Act, "food for human consumption that is to be consumed | 5 | | off the premises where it is sold" includes all food sold | 6 | | through a vending machine, except soft drinks, candy, and food | 7 | | products that are dispensed hot from a vending machine, | 8 | | regardless of the location of the vending machine.
| 9 | | Notwithstanding any other provisions of this
Act, | 10 | | beginning September 1, 2009, "food for human consumption that | 11 | | is to be consumed off the premises where
it is sold" does not | 12 | | include candy. For purposes of this Section, "candy" means a | 13 | | preparation of sugar, honey, or other natural or artificial | 14 | | sweeteners in combination with chocolate, fruits, nuts or other | 15 | | ingredients or flavorings in the form of bars, drops, or | 16 | | pieces. "Candy" does not include any preparation that contains | 17 | | flour or requires refrigeration. | 18 | | Notwithstanding any other provisions of this
Act, | 19 | | beginning September 1, 2009, "nonprescription medicines and | 20 | | drugs" does not include grooming and hygiene products. For | 21 | | purposes of this Section, "grooming and hygiene products" | 22 | | includes, but is not limited to, soaps and cleaning solutions, | 23 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 24 | | lotions and screens, unless those products are available by | 25 | | prescription only, regardless of whether the products meet the | 26 | | definition of "over-the-counter-drugs". For the purposes of |
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| 1 | | this paragraph, "over-the-counter-drug" means a drug for human | 2 | | use that contains a label that identifies the product as a drug | 3 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 4 | | label includes: | 5 | | (A) A "Drug Facts" panel; or | 6 | | (B) A statement of the "active ingredient(s)" with a | 7 | | list of those ingredients contained in the compound, | 8 | | substance or preparation. | 9 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | 10 | | eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10.) | 11 | | (35 ILCS 115/9) (from Ch. 120, par. 439.109) | 12 | | Sec. 9. Each serviceman required or authorized to collect | 13 | | the tax
herein imposed shall pay to the Department the amount | 14 | | of such tax at the
time when he is required to file his return | 15 | | for the period during which
such tax was collectible, less a | 16 | | discount of 2.1% prior to
January 1, 1990, and 1.75% on and | 17 | | after January 1, 1990, or
$5 per calendar year, whichever is | 18 | | greater, which is allowed to reimburse
the serviceman for | 19 | | expenses incurred in collecting the tax, keeping
records, | 20 | | preparing and filing returns, remitting the tax and supplying | 21 | | data
to the Department on request. | 22 | | Where such tangible personal property is sold under a | 23 | | conditional
sales contract, or under any other form of sale | 24 | | wherein the payment of
the principal sum, or a part thereof, is | 25 | | extended beyond the close of
the period for which the return is |
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| 1 | | filed, the serviceman, in collecting
the tax may collect, for | 2 | | each tax return period, only the tax applicable
to the part of | 3 | | the selling price actually received during such tax return
| 4 | | period. | 5 | | Except as provided hereinafter in this Section, on or | 6 | | before the twentieth
day of each calendar month, such | 7 | | serviceman shall file a
return for the preceding calendar month | 8 | | in accordance with reasonable
rules and regulations to be | 9 | | promulgated by the Department of Revenue.
Such return shall be | 10 | | filed on a form prescribed by the Department and
shall contain | 11 | | such information as the Department may reasonably require. | 12 | | The Department may require returns to be filed on a | 13 | | quarterly basis.
If so required, a return for each calendar | 14 | | quarter shall be filed on or
before the twentieth day of the | 15 | | calendar month following the end of such
calendar quarter. The | 16 | | taxpayer shall also file a return with the
Department for each | 17 | | of the first two months of each calendar quarter, on or
before | 18 | | the twentieth day of the following calendar month, stating: | 19 | | 1. The name of the seller; | 20 | | 2. The address of the principal place of business from | 21 | | which he engages
in business as a serviceman in this State; | 22 | | 3. The total amount of taxable receipts received by him | 23 | | during the
preceding calendar month, including receipts | 24 | | from charge and time sales,
but less all deductions allowed | 25 | | by law; | 26 | | 4. The amount of credit provided in Section 2d of this |
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| 1 | | Act; | 2 | | 5. The amount of tax due; | 3 | | 5-5. The signature of the taxpayer; and | 4 | | 6. Such other reasonable information as the Department | 5 | | may
require. | 6 | | If a taxpayer fails to sign a return within 30 days after | 7 | | the proper notice
and demand for signature by the Department, | 8 | | the return shall be considered
valid and any amount shown to be | 9 | | due on the return shall be deemed assessed. | 10 | | Prior to October 1, 2003, and on and after September 1, | 11 | | 2004 a serviceman may accept a Manufacturer's
Purchase Credit | 12 | | certification
from a purchaser in satisfaction
of Service Use | 13 | | Tax as provided in Section 3-70 of the
Service Use Tax Act if | 14 | | the purchaser provides
the
appropriate
documentation as | 15 | | required by Section 3-70 of the Service Use Tax Act.
A | 16 | | Manufacturer's Purchase Credit certification, accepted prior | 17 | | to October 1,
2003 or on or after September 1, 2004 by a | 18 | | serviceman as
provided in Section 3-70 of the Service Use Tax | 19 | | Act, may be used by that
serviceman to satisfy Service | 20 | | Occupation Tax liability in the amount claimed in
the | 21 | | certification, not to exceed 6.25% of the receipts subject to | 22 | | tax from a
qualifying purchase. A Manufacturer's Purchase | 23 | | Credit reported on any
original or amended return
filed under
| 24 | | this Act after October 20, 2003 for reporting periods prior to | 25 | | September 1, 2004 shall be disallowed. Manufacturer's Purchase | 26 | | Credit reported on annual returns due on or after January 1, |
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| 1 | | 2005 will be disallowed for periods prior to September 1, 2004.
| 2 | | No Manufacturer's
Purchase Credit may be used after September | 3 | | 30, 2003 through August 31, 2004 to
satisfy any
tax liability | 4 | | imposed under this Act, including any audit liability. | 5 | | If the serviceman's average monthly tax liability to
the | 6 | | Department does not exceed $200, the Department may authorize | 7 | | his
returns to be filed on a quarter annual basis, with the | 8 | | return for
January, February and March of a given year being | 9 | | due by April 20 of
such year; with the return for April, May | 10 | | and June of a given year being
due by July 20 of such year; with | 11 | | the return for July, August and
September of a given year being | 12 | | due by October 20 of such year, and with
the return for | 13 | | October, November and December of a given year being due
by | 14 | | January 20 of the following year. | 15 | | If the serviceman's average monthly tax liability to
the | 16 | | Department does not exceed $50, the Department may authorize | 17 | | his
returns to be filed on an annual basis, with the return for | 18 | | a given year
being due by January 20 of the following year. | 19 | | Such quarter annual and annual returns, as to form and | 20 | | substance,
shall be subject to the same requirements as monthly | 21 | | returns. | 22 | | Notwithstanding any other provision in this Act concerning | 23 | | the time within
which a serviceman may file his return, in the | 24 | | case of any serviceman who
ceases to engage in a kind of | 25 | | business which makes him responsible for filing
returns under | 26 | | this Act, such serviceman shall file a final return under this
|
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| 1 | | Act with the Department not more than 1 month after | 2 | | discontinuing such
business. | 3 | | Beginning October 1, 1993, a taxpayer who has an average | 4 | | monthly tax
liability of $150,000 or more shall make all | 5 | | payments required by rules of the
Department by electronic | 6 | | funds transfer. Beginning October 1, 1994, a taxpayer
who has | 7 | | an average monthly tax liability of $100,000 or more shall make | 8 | | all
payments required by rules of the Department by electronic | 9 | | funds transfer.
Beginning October 1, 1995, a taxpayer who has | 10 | | an average monthly tax liability
of $50,000 or more shall make | 11 | | all payments required by rules of the Department
by electronic | 12 | | funds transfer. Beginning October 1, 2000, a taxpayer who has
| 13 | | an annual tax liability of $200,000 or more shall make all | 14 | | payments required by
rules of the Department by electronic | 15 | | funds transfer. The term "annual tax
liability" shall be the | 16 | | sum of the taxpayer's liabilities under this Act, and
under all | 17 | | other State and local occupation and use tax laws administered | 18 | | by the
Department, for the immediately preceding calendar year. | 19 | | The term "average
monthly tax liability" means
the sum of the | 20 | | taxpayer's liabilities under this Act, and under all other | 21 | | State
and local occupation and use tax laws administered by the | 22 | | Department, for the
immediately preceding calendar year | 23 | | divided by 12.
Beginning on October 1, 2002, a taxpayer who has | 24 | | a tax liability in the
amount set forth in subsection (b) of | 25 | | Section 2505-210 of the Department of
Revenue Law shall make | 26 | | all payments required by rules of the Department by
electronic |
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| 1 | | funds transfer. | 2 | | Before August 1 of each year beginning in 1993, the | 3 | | Department shall
notify all taxpayers required to make payments | 4 | | by electronic funds transfer.
All taxpayers required to make | 5 | | payments by electronic funds transfer shall make
those payments | 6 | | for a minimum of one year beginning on October 1. | 7 | | Any taxpayer not required to make payments by electronic | 8 | | funds transfer may
make payments by electronic funds transfer | 9 | | with the
permission of the Department. | 10 | | All taxpayers required to make payment by electronic funds | 11 | | transfer and
any taxpayers authorized to voluntarily make | 12 | | payments by electronic funds
transfer shall make those payments | 13 | | in the manner authorized by the Department. | 14 | | The Department shall adopt such rules as are necessary to | 15 | | effectuate a
program of electronic funds transfer and the | 16 | | requirements of this Section. | 17 | | Where a serviceman collects the tax with respect to the | 18 | | selling price of
tangible personal property which he sells and | 19 | | the purchaser thereafter returns
such tangible personal | 20 | | property and the serviceman refunds the
selling price thereof | 21 | | to the purchaser, such serviceman shall also refund,
to the | 22 | | purchaser, the tax so collected from the purchaser. When
filing | 23 | | his return for the period in which he refunds such tax to the
| 24 | | purchaser, the serviceman may deduct the amount of the tax so | 25 | | refunded by
him to the purchaser from any other Service | 26 | | Occupation Tax, Service Use
Tax, Retailers' Occupation Tax or |
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| 1 | | Use Tax which such serviceman may be
required to pay or remit | 2 | | to the Department, as shown by such return,
provided that the | 3 | | amount of the tax to be deducted shall previously have
been | 4 | | remitted to the Department by such serviceman. If the | 5 | | serviceman shall
not previously have remitted the amount of | 6 | | such tax to the Department,
he shall be entitled to no | 7 | | deduction hereunder upon refunding such tax
to the purchaser. | 8 | | If experience indicates such action to be practicable, the | 9 | | Department
may prescribe and furnish a combination or joint | 10 | | return which will
enable servicemen, who are required to file | 11 | | returns
hereunder and also under the Retailers' Occupation Tax | 12 | | Act, the Use
Tax Act or the Service Use Tax Act, to furnish all | 13 | | the return
information required by all said Acts on the one | 14 | | form. | 15 | | Where the serviceman has more than one business
registered | 16 | | with the Department under separate registrations hereunder,
| 17 | | such serviceman shall file separate returns for each
registered | 18 | | business. | 19 | | Beginning January 1, 1990, each month the Department shall | 20 | | pay into
the Local Government Tax Fund the revenue realized for | 21 | | the
preceding month from the 1% tax on sales of food for human | 22 | | consumption
which is to be consumed off the premises where it | 23 | | is sold (other than
alcoholic beverages, soft drinks and food | 24 | | which has been prepared for
immediate consumption) and | 25 | | prescription and nonprescription medicines,
drugs, medical | 26 | | appliances and insulin, urine testing materials, syringes
and |
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| 1 | | needles used by diabetics. | 2 | | Beginning January 1, 1990, each month the Department shall | 3 | | pay into
the County and Mass Transit District Fund 4% of the | 4 | | revenue realized
for the preceding month from the 6.25% general | 5 | | rate. | 6 | | Beginning August 1, 2000, each
month the Department shall | 7 | | pay into the
County and Mass Transit District Fund 20% of the | 8 | | net revenue realized for the
preceding month from the 1.25% | 9 | | rate on the selling price of motor fuel and
gasohol. | 10 | | On October 1 of each year beginning in 2011, the Department | 11 | | shall pay into the
County and Mass Transit District Fund 20% of | 12 | | the net revenue
realized for the preceding month from the 1.25% | 13 | | rate on the
selling price of sales tax holiday items. | 14 | | Beginning January 1, 1990, each month the Department shall | 15 | | pay into
the Local Government Tax Fund 16% of the revenue | 16 | | realized for the
preceding month from the 6.25% general rate on | 17 | | transfers of
tangible personal property. | 18 | | Beginning August 1, 2000, each
month the Department shall | 19 | | pay into the
Local Government Tax Fund 80% of the net revenue | 20 | | realized for the preceding
month from the 1.25% rate on the | 21 | | selling price of motor fuel and gasohol. | 22 | | On October 1 of each year beginning in 2011, the Department | 23 | | shall pay into the
Local Government Tax Fund 80% of the net | 24 | | revenue
realized for the preceding month from the 1.25% rate on | 25 | | the
selling price of sales tax holiday items. | 26 | | Beginning October 1, 2009, each month the Department shall |
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| 1 | | pay into the Capital Projects Fund an amount that is equal to | 2 | | an amount estimated by the Department to represent 80% of the | 3 | | net revenue realized for the preceding month from the sale of | 4 | | candy, grooming and hygiene products, and soft drinks that had | 5 | | been taxed at a rate of 1% prior to September 1, 2009 but that | 6 | | is now taxed at 6.25%. | 7 | | Of the remainder of the moneys received by the Department | 8 | | pursuant to
this Act, (a) 1.75% thereof shall be paid into the | 9 | | Build Illinois Fund and
(b) prior to July 1, 1989, 2.2% and on | 10 | | and after July 1, 1989, 3.8% thereof
shall be paid into the | 11 | | Build Illinois Fund; provided, however, that if in
any fiscal | 12 | | year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
| 13 | | may be, of the moneys received by the Department and required | 14 | | to be paid
into the Build Illinois Fund pursuant to Section 3 | 15 | | of the Retailers'
Occupation Tax Act, Section 9 of the Use Tax | 16 | | Act, Section 9 of the Service
Use Tax Act, and Section 9 of the | 17 | | Service Occupation Tax Act, such Acts
being hereinafter called | 18 | | the "Tax Acts" and such aggregate of 2.2% or 3.8%,
as the case | 19 | | may be, of moneys being hereinafter called the "Tax Act
| 20 | | Amount", and (2) the amount transferred to the Build Illinois | 21 | | Fund from the
State and Local Sales Tax Reform Fund shall be | 22 | | less than the Annual
Specified Amount (as defined in Section 3 | 23 | | of the Retailers' Occupation Tax
Act), an amount equal to the | 24 | | difference shall be immediately paid into the
Build Illinois | 25 | | Fund from other moneys received by the Department pursuant
to | 26 | | the Tax Acts; and further provided, that if on the last |
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| 1 | | business day of
any month the sum of (1) the Tax Act Amount | 2 | | required to be deposited into
the Build Illinois Account in the | 3 | | Build Illinois Fund during such month and
(2) the amount | 4 | | transferred during such month to the Build Illinois Fund
from | 5 | | the State and Local Sales Tax Reform Fund shall have been less | 6 | | than
1/12 of the Annual Specified Amount, an amount equal to | 7 | | the difference
shall be immediately paid into the Build | 8 | | Illinois Fund from other moneys
received by the Department | 9 | | pursuant to the Tax Acts; and, further provided,
that in no | 10 | | event shall the payments required under the preceding proviso
| 11 | | result in aggregate payments into the Build Illinois Fund | 12 | | pursuant to this
clause (b) for any fiscal year in excess of | 13 | | the greater of (i) the Tax Act
Amount or (ii) the Annual | 14 | | Specified Amount for such fiscal year; and,
further provided, | 15 | | that the amounts payable into the Build Illinois Fund
under | 16 | | this clause (b) shall be payable only until such time as the
| 17 | | aggregate amount on deposit under each trust indenture securing | 18 | | Bonds
issued and outstanding pursuant to the Build Illinois | 19 | | Bond Act is
sufficient, taking into account any future | 20 | | investment income, to fully
provide, in accordance with such | 21 | | indenture, for the defeasance of or the
payment of the | 22 | | principal of, premium, if any, and interest on the Bonds
| 23 | | secured by such indenture and on any Bonds expected to be | 24 | | issued thereafter
and all fees and costs payable with respect | 25 | | thereto, all as certified by
the Director of the
Bureau of the | 26 | | Budget (now Governor's Office of Management and Budget). If
on |
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| 1 | | the last business day of
any month in which Bonds are | 2 | | outstanding pursuant to the Build Illinois
Bond Act, the | 3 | | aggregate of the moneys deposited
in the Build Illinois Bond | 4 | | Account in the Build Illinois Fund in such month
shall be less | 5 | | than the amount required to be transferred in such month from
| 6 | | the Build Illinois Bond Account to the Build Illinois Bond | 7 | | Retirement and
Interest Fund pursuant to Section 13 of the | 8 | | Build Illinois Bond Act, an
amount equal to such deficiency | 9 | | shall be immediately paid
from other moneys received by the | 10 | | Department pursuant to the Tax Acts
to the Build Illinois Fund; | 11 | | provided, however, that any amounts paid to the
Build Illinois | 12 | | Fund in any fiscal year pursuant to this sentence shall be
| 13 | | deemed to constitute payments pursuant to clause (b) of the | 14 | | preceding
sentence and shall reduce the amount otherwise | 15 | | payable for such fiscal year
pursuant to clause (b) of the | 16 | | preceding sentence. The moneys received by
the Department | 17 | | pursuant to this Act and required to be deposited into the
| 18 | | Build Illinois Fund are subject to the pledge, claim and charge | 19 | | set forth
in Section 12 of the Build Illinois Bond Act. | 20 | | Subject to payment of amounts into the Build Illinois Fund | 21 | | as provided in
the preceding paragraph or in any amendment | 22 | | thereto hereafter enacted, the
following specified monthly | 23 | | installment of the amount requested in the
certificate of the | 24 | | Chairman of the Metropolitan Pier and Exposition
Authority | 25 | | provided under Section 8.25f of the State Finance Act, but not | 26 | | in
excess of the sums designated as "Total Deposit", shall be |
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| 1 | | deposited in the
aggregate from collections under Section 9 of | 2 | | the Use Tax Act, Section 9 of
the Service Use Tax Act, Section | 3 | | 9 of the Service Occupation Tax Act, and
Section 3 of the | 4 | | Retailers' Occupation Tax Act into the McCormick Place
| 5 | | Expansion Project Fund in the specified fiscal years. | |
6 | | Fiscal Year | | Total Deposit | |
7 | | 1993 | | $0 | |
8 | | 1994 | | 53,000,000 | |
9 | | 1995 | | 58,000,000 | |
10 | | 1996 | | 61,000,000 | |
11 | | 1997 | | 64,000,000 | |
12 | | 1998 | | 68,000,000 | |
13 | | 1999 | | 71,000,000 | |
14 | | 2000 | | 75,000,000 | |
15 | | 2001 | | 80,000,000 | |
16 | | 2002 | | 93,000,000 | |
17 | | 2003 | | 99,000,000 | |
18 | | 2004 | | 103,000,000 | |
19 | | 2005 | | 108,000,000 | |
20 | | 2006 | | 113,000,000 | |
21 | | 2007 | | 119,000,000 | |
22 | | 2008 | | 126,000,000 | |
23 | | 2009 | | 132,000,000 | |
24 | | 2010 | | 139,000,000 | |
25 | | 2011 | | 146,000,000 | |
|
| | | HB3512 | - 52 - | LRB097 10581 HLH 50940 b |
|
| 1 | | 2012 | | 153,000,000 | |
2 | | 2013 | | 161,000,000 | |
3 | | 2014 | | 170,000,000 | |
4 | | 2015 | | 179,000,000 | |
5 | | 2016 | | 189,000,000 | |
6 | | 2017 | | 199,000,000 | |
7 | | 2018 | | 210,000,000 | |
8 | | 2019 | | 221,000,000 | |
9 | | 2020 | | 233,000,000 | |
10 | | 2021 | | 246,000,000 | |
11 | | 2022 | | 260,000,000 | |
12 | | 2023 | | 275,000,000 | |
13 | | 2024 | | 275,000,000 | |
14 | | 2025 | | 275,000,000 | |
15 | | 2026 | | 279,000,000 | |
16 | | 2027 | | 292,000,000 | |
17 | | 2028 | | 307,000,000 | |
18 | | 2029 | | 322,000,000 | |
19 | | 2030 | | 338,000,000 | |
20 | | 2031 | | 350,000,000 | |
21 | | 2032 | | 350,000,000 | |
22 | | and | | |
|
23 | | each fiscal year | | |
|
24 | | thereafter that bonds | | |
|
25 | | are outstanding under | | |
|
26 | | Section 13.2 of the | | |
|
|
| | | HB3512 | - 53 - | LRB097 10581 HLH 50940 b |
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| 1 | | Metropolitan Pier and | | |
|
2 | | Exposition Authority Act, | | |
|
3 | | but not after fiscal year 2060. | | |
| 4 | | Beginning July 20, 1993 and in each month of each fiscal | 5 | | year thereafter,
one-eighth of the amount requested in the | 6 | | certificate of the Chairman of
the Metropolitan Pier and | 7 | | Exposition Authority for that fiscal year, less
the amount | 8 | | deposited into the McCormick Place Expansion Project Fund by | 9 | | the
State Treasurer in the respective month under subsection | 10 | | (g) of Section 13
of the Metropolitan Pier and Exposition | 11 | | Authority Act, plus cumulative
deficiencies in the deposits | 12 | | required under this Section for previous
months and years, | 13 | | shall be deposited into the McCormick Place Expansion
Project | 14 | | Fund, until the full amount requested for the fiscal year, but | 15 | | not
in excess of the amount specified above as "Total Deposit", | 16 | | has been deposited. | 17 | | Subject to payment of amounts into the Build Illinois Fund | 18 | | and the
McCormick
Place Expansion Project Fund
pursuant to the | 19 | | preceding paragraphs or in any amendments thereto hereafter
| 20 | | enacted, beginning July 1, 1993, the Department shall each | 21 | | month pay into the
Illinois Tax Increment Fund 0.27% of 80% of | 22 | | the net revenue realized for the
preceding month from the 6.25% | 23 | | general rate on the selling price of tangible
personal | 24 | | property. | 25 | | Subject to payment of amounts into the Build Illinois Fund | 26 | | and the
McCormick Place Expansion Project Fund pursuant to the |
| | | HB3512 | - 54 - | LRB097 10581 HLH 50940 b |
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| 1 | | preceding paragraphs or in any
amendments thereto hereafter | 2 | | enacted, beginning with the receipt of the first
report of | 3 | | taxes paid by an eligible business and continuing for a 25-year
| 4 | | period, the Department shall each month pay into the Energy | 5 | | Infrastructure
Fund 80% of the net revenue realized from the | 6 | | 6.25% general rate on the
selling price of Illinois-mined coal | 7 | | that was sold to an eligible business.
For purposes of this | 8 | | paragraph, the term "eligible business" means a new
electric | 9 | | generating facility certified pursuant to Section 605-332 of | 10 | | the
Department of Commerce and
Economic Opportunity Law of the | 11 | | Civil Administrative
Code of Illinois. | 12 | | Remaining moneys received by the Department pursuant to | 13 | | this
Act shall be paid into the General Revenue Fund of the | 14 | | State Treasury. | 15 | | The Department may, upon separate written notice to a | 16 | | taxpayer,
require the taxpayer to prepare and file with the | 17 | | Department on a form
prescribed by the Department within not | 18 | | less than 60 days after receipt
of the notice an annual | 19 | | information return for the tax year specified in
the notice. | 20 | | Such annual return to the Department shall include a
statement | 21 | | of gross receipts as shown by the taxpayer's last Federal | 22 | | income
tax return. If the total receipts of the business as | 23 | | reported in the
Federal income tax return do not agree with the | 24 | | gross receipts reported to
the Department of Revenue for the | 25 | | same period, the taxpayer shall attach
to his annual return a | 26 | | schedule showing a reconciliation of the 2
amounts and the |
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| 1 | | reasons for the difference. The taxpayer's annual
return to the | 2 | | Department shall also disclose the cost of goods sold by
the | 3 | | taxpayer during the year covered by such return, opening and | 4 | | closing
inventories of such goods for such year, cost of goods | 5 | | used from stock
or taken from stock and given away by the | 6 | | taxpayer during such year, pay
roll information of the | 7 | | taxpayer's business during such year and any
additional | 8 | | reasonable information which the Department deems would be
| 9 | | helpful in determining the accuracy of the monthly, quarterly | 10 | | or annual
returns filed by such taxpayer as hereinbefore | 11 | | provided for in this
Section. | 12 | | If the annual information return required by this Section | 13 | | is not
filed when and as required, the taxpayer shall be liable | 14 | | as follows: | 15 | | (i) Until January 1, 1994, the taxpayer shall be liable
| 16 | | for a penalty equal to 1/6 of 1% of the tax due from such | 17 | | taxpayer
under this Act during the period to be covered by | 18 | | the annual return
for each month or fraction of a month | 19 | | until such return is filed as
required, the penalty to be | 20 | | assessed and collected in the same manner
as any other | 21 | | penalty provided for in this Act. | 22 | | (ii) On and after January 1, 1994, the taxpayer shall | 23 | | be liable for a
penalty as described in Section 3-4 of the | 24 | | Uniform Penalty and Interest Act. | 25 | | The chief executive officer, proprietor, owner or highest | 26 | | ranking
manager shall sign the annual return to certify the |
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| 1 | | accuracy of the
information contained therein. Any person who | 2 | | willfully signs the
annual return containing false or | 3 | | inaccurate information shall be guilty
of perjury and punished | 4 | | accordingly. The annual return form prescribed
by the | 5 | | Department shall include a warning that the person signing the
| 6 | | return may be liable for perjury. | 7 | | The foregoing portion of this Section concerning the filing | 8 | | of an
annual information return shall not apply to a serviceman | 9 | | who is not
required to file an income tax return with the | 10 | | United States Government. | 11 | | As soon as possible after the first day of each month, upon | 12 | | certification
of the Department of Revenue, the Comptroller | 13 | | shall order transferred and
the Treasurer shall transfer from | 14 | | the General Revenue Fund to the Motor
Fuel Tax Fund an amount | 15 | | equal to 1.7% of 80% of the net revenue realized
under this Act | 16 | | for the second preceding month.
Beginning April 1, 2000, this | 17 | | transfer is no longer required
and shall not be made. | 18 | | Net revenue realized for a month shall be the revenue | 19 | | collected by the State
pursuant to this Act, less the amount | 20 | | paid out during that month as
refunds to taxpayers for | 21 | | overpayment of liability. | 22 | | For greater simplicity of administration, it shall be | 23 | | permissible for
manufacturers, importers and wholesalers whose | 24 | | products are sold by numerous
servicemen in Illinois, and who | 25 | | wish to do so, to
assume the responsibility for accounting and | 26 | | paying to the Department
all tax accruing under this Act with |
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| 1 | | respect to such sales, if the
servicemen who are affected do | 2 | | not make written objection to the
Department to this | 3 | | arrangement. | 4 | | (Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898, | 5 | | eff. 5-27-10.) | 6 | | Section 20. The Retailers' Occupation Tax Act is amended by | 7 | | changing Sections 2-8 and 2-10 as follows: | 8 | | (35 ILCS 120/2-8) | 9 | | Sec. 2-8. Sales tax holiday items. | 10 | | (a) The tangible personal property described in this | 11 | | subsection qualifies for the
1.25% reduced rate of tax for the | 12 | | period set forth in Section 2-10 of this Act (hereinafter
| 13 | | referred to as the Sales Tax Holiday Period). The reduced rate | 14 | | on these items shall be
administered under the provisions of | 15 | | subsection (b) of this Section. The following items are subject | 16 | | to the
reduced rate: | 17 | | (1) Clothing items that each have a retail selling | 18 | | price of less than $100. | 19 | | "Clothing" means, unless otherwise specified in this | 20 | | Section, all human wearing
apparel suitable for general | 21 | | use. "Clothing" does not include clothing
accessories, | 22 | | protective equipment, or sport or recreational equipment.
| 23 | | "Clothing" includes, but is not limited to: household and | 24 | | shop aprons; athletic
supporters; bathing suits and caps; |
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| 1 | | belts and suspenders; boots; coats and
jackets; ear muffs; | 2 | | footlets; gloves and mittens for general use; hats and | 3 | | caps;
hosiery; insoles for shoes; lab coats; neckties; | 4 | | overshoes; pantyhose;
rainwear; rubber pants; sandals; | 5 | | scarves; shoes and shoelaces; slippers;
sneakers; socks | 6 | | and stockings; steel-toed shoes; underwear; and school
| 7 | | uniforms. | 8 | | "Clothing accessories" means, but is not limited to: | 9 | | briefcases; cosmetics; hair
notions, including, but not | 10 | | limited to barrettes, hair bows, and hair nets;
handbags; | 11 | | handkerchiefs; jewelry; non-prescription sunglasses; | 12 | | umbrellas;
wallets; watches; and wigs and hair pieces. | 13 | | "Protective equipment" means, but is not limited to: | 14 | | breathing masks; clean
room apparel and equipment; ear and | 15 | | hearing protectors; face shields; hard
hats; helmets; | 16 | | paint or dust respirators; protective gloves; safety | 17 | | glasses and
goggles; safety belts; tool belts; and welder's | 18 | | gloves and masks. | 19 | | "Sport or recreational equipment" means, but is not | 20 | | limited to: ballet and tap
shoes; cleated or spiked | 21 | | athletic shoes; gloves, including, but not limited to,
| 22 | | baseball, bowling, boxing, hockey, and golf gloves; | 23 | | goggles; hand and elbow guards;
life preservers and vests; | 24 | | mouth guards; roller and ice skates; shin guards;
shoulder | 25 | | pads; ski boots; waders; and wetsuits and fins. | 26 | | (2) School supplies. "School supplies" means, unless |
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| 1 | | otherwise specified in this
Section, items used by a | 2 | | student in a course of study. The purchase of school
| 3 | | supplies for use by persons other than students for use in | 4 | | a course of study are not
eligible for the reduced rate of | 5 | | tax. "School supplies" do not include school art
supplies; | 6 | | school instructional materials; cameras; film and memory | 7 | | cards;
videocameras, tapes, and videotapes; computers; | 8 | | cell phones; Personal Digital
Assistants (PDAs); handheld | 9 | | electronic schedulers; and school computer
supplies. | 10 | | "School supplies" includes, but is not limited to: | 11 | | binders; book bags;
calculators; cellophane tape; | 12 | | blackboard chalk; compasses; composition books;
crayons; | 13 | | erasers; expandable, pocket, plastic, and manila folders; | 14 | | glue, paste,
and paste sticks; highlighters; index cards; | 15 | | index card boxes; legal pads; lunch
boxes; markers; | 16 | | notebooks; paper, including loose leaf ruled notebook | 17 | | paper, copy paper,
graph paper, tracing paper, manila | 18 | | paper, colored paper, poster board, and
construction | 19 | | paper; pencils; pencil leads; pens; ink and ink refills for | 20 | | pens; pencil
boxes and other school supply boxes; pencil | 21 | | sharpeners; protractors; rulers;
scissors; and writing | 22 | | tablets. | 23 | | "School art supply" means an item commonly used by a | 24 | | student in a course of
study for artwork and includes only | 25 | | the following items: clay and glazes; acrylic, tempera, and | 26 | | oil paint; paintbrushes for artwork; sketch and drawing |
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| 1 | | pads; and
watercolors. | 2 | | "School instructional material" means written material | 3 | | commonly used by a
student in a course of study as a | 4 | | reference and to learn the subject being taught
and | 5 | | includes only the following items: reference books; | 6 | | reference maps and
globes; textbooks; and workbooks. | 7 | | "School computer supply" means an item commonly used by | 8 | | a student in a course
of study in which a computer is used | 9 | | and applies only to the following items:
flashdrives and | 10 | | other computer data storage devices; data storage media, | 11 | | such as
diskettes and compact disks; boxes and cases for | 12 | | disk storage; external ports or
drives; computer cases; | 13 | | computer cables; computer printers; and printer
| 14 | | cartridges, toner, and ink. | 15 | | (a-5) During the first Monday in September of each year | 16 | | beginning in 2011, energy efficient products are also subject | 17 | | to the reduced rate. For the purposes of this subsection (a-5), | 18 | | "energy efficient product" means any product that qualifies as | 19 | | an Energy Star product by the United States Environmental | 20 | | Protection Agency. | 21 | | (b) Administration. Notwithstanding any other provision of | 22 | | this Act, the reduced rate of
tax under Section 3-10 of this | 23 | | Act for sales tax holiday items described in this Section | 24 | | clothing and school supplies shall be
administered by the | 25 | | Department under the provisions of this subsection (b). | 26 | | (1) Bundled sales. Items that qualify for the reduced |
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| 1 | | rate of tax that are bundled
together with items that do | 2 | | not qualify for the reduced rate of tax and that are sold
| 3 | | for one itemized price will be subject to the reduced rate | 4 | | of tax only if the value of
the items that qualify for the | 5 | | reduced rate of tax exceeds the value of the items
that do | 6 | | not qualify for the reduced rate of tax. | 7 | | (2) Coupons and discounts. An unreimbursed discount by | 8 | | the seller reduces the
sales price of the property so that | 9 | | the discounted sales price determines whether
the sales | 10 | | price is within a sales tax holiday price threshold. A | 11 | | coupon or other
reduction in the sales price is treated as | 12 | | a discount if the seller is not reimbursed
for the coupon | 13 | | or reduction amount by a third party. | 14 | | (3) Splitting of items normally sold together. | 15 | | Articles that are normally sold as a
single unit must | 16 | | continue to be sold in that manner. Such articles cannot be | 17 | | priced
separately and sold as individual items in order to | 18 | | obtain the reduced rate of tax.
For example, a pair of | 19 | | shoes cannot have each shoe sold separately so that the
| 20 | | sales price of each shoe is within a sales tax holiday | 21 | | price threshold. | 22 | | (4) Rain checks. A rain check is a procedure that | 23 | | allows a customer to purchase an
item at a certain price at | 24 | | a later time because the particular item was out of stock.
| 25 | | Eligible property that customers purchase during the Sales | 26 | | Tax Holiday Period
with the use of a rain check will |
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| 1 | | qualify for the reduced rate of tax regardless of
when the | 2 | | rain check was issued. Issuance of a rain check during the | 3 | | Sales Tax
Holiday Period will not qualify eligible property | 4 | | for the reduced rate of tax if the
property is actually | 5 | | purchased after the Sales Tax Holiday Period. | 6 | | (5) Exchanges. The procedure for an exchange in regards | 7 | | to a sales tax holiday is
as follows: | 8 | | (A) If a customer purchases an item of eligible | 9 | | property during the Sales Tax
Holiday Period, but later | 10 | | exchanges the item for a similar eligible item,
even if | 11 | | a different size, different color, or other feature, no | 12 | | additional tax is
due even if the exchange is made | 13 | | after the Sales Tax Holiday Period. | 14 | | (B) If a customer purchases an item of eligible | 15 | | property during the Sales Tax
Holiday Period, but after | 16 | | the Sales Tax Holiday Period has ended, the
customer | 17 | | returns the item and receives credit on the purchase of | 18 | | a different
item, the 6.25% general merchandise sales | 19 | | tax rate is due on the sale of the
newly purchased | 20 | | item. | 21 | | (C) If a customer purchases an item of eligible | 22 | | property before the Sales Tax
Holiday Period, but | 23 | | during the Sales Tax Holiday Period the customer
| 24 | | returns the item and receives credit on the purchase of | 25 | | a different item of
eligible property, the reduced rate | 26 | | of tax is due on the sale of the new item
if the new |
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| 1 | | item is purchased during the Sales Tax Holiday Period. | 2 | | (6) Delivery charges. Delivery charges, including | 3 | | shipping, handling and service
charges, are part of the | 4 | | sales price of eligible property. | 5 | | (7) Order date and back orders. For the purpose of a | 6 | | sales tax holiday, eligible
property qualifies for the | 7 | | reduced rate of tax if: (i) the item is both delivered to | 8 | | and paid for by the customer during the Sales
Tax Holiday | 9 | | Period or (ii) the customer orders and pays for the item | 10 | | and the seller accepts the order
during the Sales Tax | 11 | | Holiday Period for immediate shipment, even if
delivery is | 12 | | made after the Sales Tax Holiday Period. The seller accepts
| 13 | | an order when the seller has taken action to fill the order | 14 | | for immediate
shipment. Actions to fill an order include | 15 | | placement of an "in date" stamp
on an order or assignment | 16 | | of an "order number" to an order within the
Sales Tax | 17 | | Holiday Period. An order is for immediate shipment when the
| 18 | | customer does not request delayed shipment. An order is for | 19 | | immediate
shipment notwithstanding that the shipment may | 20 | | be delayed because of a
backlog of orders or because stock | 21 | | is currently unavailable to, or on back
order by, the | 22 | | seller. | 23 | | (8) Returns. For a 60-day period immediately after the | 24 | | Sales Tax Holiday Period,
if a customer returns an item | 25 | | that would qualify for the reduced rate of tax,
credit for | 26 | | or refund of sales tax shall be given only at the reduced |
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| 1 | | rate unless the
customer provides a receipt or invoice that | 2 | | shows tax was paid at the 6.25%
general merchandise rate, | 3 | | or the seller has sufficient documentation to show that
tax | 4 | | was paid at the 6.25% general merchandise rate on the | 5 | | specific item. This 60-day period is set solely for the | 6 | | purpose of designating a time period during which
the | 7 | | customer must provide documentation that shows that the | 8 | | appropriate sales
tax rate was paid on returned | 9 | | merchandise. The 60-day period is not intended to
change a | 10 | | seller's policy on the time period during which the seller | 11 | | will accept
returns. | 12 | | (c) The Department may implement the provisions of this | 13 | | Section through the use of
emergency rules, along with | 14 | | permanent rules filed concurrently with such
emergency rules, | 15 | | in accordance with the provisions of Section 5-45 of the | 16 | | Illinois
Administrative Procedure Act. For purposes of the | 17 | | Illinois Administrative
Procedure Act, the adoption of rules to | 18 | | implement the provisions of this Section shall
be deemed an | 19 | | emergency and necessary for the public interest, safety, and | 20 | | welfare.
| 21 | | (Source: P.A. 96-1012, eff. 7-7-10.)
| 22 | | (35 ILCS 120/2-10)
| 23 | | Sec. 2-10. Rate of tax. Unless otherwise provided in this | 24 | | Section,
the tax imposed by this Act is at the rate of 6.25% of | 25 | | gross receipts
from sales of tangible personal property made in |
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| 1 | | the course of business.
| 2 | | Beginning on July 1, 2000 and through December 31, 2000, | 3 | | with respect to
motor fuel, as defined in Section 1.1 of the | 4 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 5 | | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| 6 | | Beginning on August 6, 2010 through August 15, 2010, with | 7 | | respect to sales tax holiday items as defined in subsection (a) | 8 | | of Section 2-8 of this Act, the
tax is imposed at the rate of | 9 | | 1.25%. During the first Monday in September of each year | 10 | | beginning in 2011, with respect to sales tax holiday items as | 11 | | defined in subsection (a-5) of Section 3-6 of this Act, the
tax | 12 | | is imposed at the rate of 1.25%. | 13 | | Within 14 days after the effective date of this amendatory | 14 | | Act of the 91st
General Assembly, each retailer of motor fuel | 15 | | and gasohol shall cause the
following notice to be posted in a | 16 | | prominently visible place on each retail
dispensing device that | 17 | | is used to dispense motor
fuel or gasohol in the State of | 18 | | Illinois: "As of July 1, 2000, the State of
Illinois has | 19 | | eliminated the State's share of sales tax on motor fuel and
| 20 | | gasohol through December 31, 2000. The price on this pump | 21 | | should reflect the
elimination of the tax." The notice shall be | 22 | | printed in bold print on a sign
that is no smaller than 4 | 23 | | inches by 8 inches. The sign shall be clearly
visible to | 24 | | customers. Any retailer who fails to post or maintain a | 25 | | required
sign through December 31, 2000 is guilty of a petty | 26 | | offense for which the fine
shall be $500 per day per each |
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| 1 | | retail premises where a violation occurs.
| 2 | | With respect to gasohol, as defined in the Use Tax Act, the | 3 | | tax imposed
by this Act applies to (i) 70% of the proceeds of | 4 | | sales made on or after
January 1, 1990, and before July 1, | 5 | | 2003, (ii) 80% of the proceeds of
sales made on or after July | 6 | | 1, 2003 and on or before December 31,
2013, and (iii) 100% of | 7 | | the proceeds of sales
made thereafter.
If, at any time, | 8 | | however, the tax under this Act on sales of gasohol, as
defined | 9 | | in
the Use Tax Act, is imposed at the rate of 1.25%, then the
| 10 | | tax imposed by this Act applies to 100% of the proceeds of | 11 | | 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 proceeds of sales made on or after
July 1, 2003 and on or | 15 | | before December 31, 2013 but applies to 100% of the
proceeds of | 16 | | sales made thereafter.
| 17 | | With respect to biodiesel blends, as defined in the Use Tax | 18 | | Act, with no less
than 1% and no
more than 10% biodiesel, the | 19 | | tax imposed by this Act
applies to (i) 80% of the proceeds of | 20 | | sales made on or after July 1, 2003
and on or before December | 21 | | 31, 2013 and (ii) 100% of the
proceeds of sales made | 22 | | thereafter.
If, at any time, however, the tax under this Act on | 23 | | sales of biodiesel blends,
as
defined in the Use Tax Act, with | 24 | | no less than 1% and no more than 10% biodiesel
is imposed at | 25 | | the rate of 1.25%, then the
tax imposed by this Act applies to | 26 | | 100% of the proceeds of sales of biodiesel
blends with no less |
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| 1 | | than 1% and no more than 10% biodiesel
made
during that time.
| 2 | | With respect to 100% biodiesel, as defined in the Use Tax | 3 | | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| 4 | | more than 10% but no more than 99% biodiesel, the tax imposed | 5 | | by this Act
does not apply to the proceeds of sales made on or | 6 | | after July 1, 2003
and on or before December 31, 2013 but | 7 | | applies to 100% of the
proceeds of sales made thereafter.
| 8 | | With respect to food for human consumption that is to be | 9 | | consumed off the
premises where it is sold (other than | 10 | | alcoholic beverages, soft drinks, and
food that has been | 11 | | prepared for immediate consumption) and prescription and
| 12 | | nonprescription medicines, drugs, medical appliances, | 13 | | modifications to a motor
vehicle for the purpose of rendering | 14 | | it usable by a disabled person, and
insulin, urine testing | 15 | | materials, syringes, and needles used by diabetics, for
human | 16 | | use, the tax is imposed at the rate of 1%. For the purposes of | 17 | | this
Section, until September 1, 2009: the term "soft drinks" | 18 | | means any complete, finished, ready-to-use,
non-alcoholic | 19 | | drink, whether carbonated or not, including but not limited to
| 20 | | soda water, cola, fruit juice, vegetable juice, carbonated | 21 | | water, and all other
preparations commonly known as soft drinks | 22 | | of whatever kind or description that
are contained in any | 23 | | closed or sealed bottle, can, carton, or container,
regardless | 24 | | of size; but "soft drinks" does not include coffee, tea, | 25 | | non-carbonated
water, infant formula, milk or milk products as | 26 | | defined in the Grade A
Pasteurized Milk and Milk Products Act, |
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| 1 | | or drinks containing 50% or more
natural fruit or vegetable | 2 | | juice.
| 3 | | Notwithstanding any other provisions of this
Act, | 4 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 5 | | beverages that contain natural or artificial sweeteners. "Soft | 6 | | drinks" do not include beverages that contain milk or milk | 7 | | products, soy, rice or similar milk substitutes, or greater | 8 | | than 50% of vegetable or fruit juice by volume. | 9 | | Until August 1, 2009, and notwithstanding any other | 10 | | provisions of this
Act, "food for human consumption that is to | 11 | | be consumed off the premises where
it is sold" includes all | 12 | | food sold through a vending machine, except soft
drinks and | 13 | | food products that are dispensed hot from a vending machine,
| 14 | | regardless of the location of the vending machine. Beginning | 15 | | August 1, 2009, and notwithstanding any other provisions of | 16 | | this Act, "food for human consumption that is to be consumed | 17 | | off the premises where it is sold" includes all food sold | 18 | | through a vending machine, except soft drinks, candy, and food | 19 | | products that are dispensed hot from a vending machine, | 20 | | regardless of the location of the vending machine.
| 21 | | Notwithstanding any other provisions of this
Act, | 22 | | beginning September 1, 2009, "food for human consumption that | 23 | | is to be consumed off the premises where
it is sold" does not | 24 | | include candy. For purposes of this Section, "candy" means a | 25 | | preparation of sugar, honey, or other natural or artificial | 26 | | sweeteners in combination with chocolate, fruits, nuts or other |
| | | HB3512 | - 69 - | LRB097 10581 HLH 50940 b |
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| 1 | | ingredients or flavorings in the form of bars, drops, or | 2 | | pieces. "Candy" does not include any preparation that contains | 3 | | flour or requires refrigeration. | 4 | | Notwithstanding any other provisions of this
Act, | 5 | | beginning September 1, 2009, "nonprescription medicines and | 6 | | drugs" does not include grooming and hygiene products. For | 7 | | purposes of this Section, "grooming and hygiene products" | 8 | | includes, but is not limited to, soaps and cleaning solutions, | 9 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 10 | | lotions and screens, unless those products are available by | 11 | | prescription only, regardless of whether the products meet the | 12 | | definition of "over-the-counter-drugs". For the purposes of | 13 | | this paragraph, "over-the-counter-drug" means a drug for human | 14 | | use that contains a label that identifies the product as a drug | 15 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 16 | | label includes: | 17 | | (A) A "Drug Facts" panel; or | 18 | | (B) A statement of the "active ingredient(s)" with a | 19 | | list of those ingredients contained in the compound, | 20 | | substance or preparation.
| 21 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | 22 | | eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10.)
| 23 | | Section 99. Effective date. This Act takes effect upon | 24 | | becoming law.
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