Full Text of HB5583 103rd General Assembly
HB5583 103RD GENERAL ASSEMBLY | | | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB5583 Introduced 2/9/2024, by Rep. Hoan Huynh SYNOPSIS AS INTRODUCED: | | 35 ILCS 105/3-10 | | 35 ILCS 110/3-10 | from Ch. 120, par. 439.33-10 | 35 ILCS 115/3-10 | from Ch. 120, par. 439.103-10 | 35 ILCS 120/2-10 | |
| Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on January 1, 2025 | | | , with respect to firearms, the taxes under those Acts are imposed at the rate of 11%. Effective immediately. |
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| | 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 Section | 5 | | 3-10 as follows: | 6 | | (35 ILCS 105/3-10) | 7 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this | 8 | | Section, the tax imposed by this Act is at the rate of 6.25% of | 9 | | either the selling price or the fair market value, if any, of | 10 | | the tangible personal property. In all cases where property | 11 | | functionally used or consumed is the same as the property that | 12 | | was purchased at retail, then the tax is imposed on the selling | 13 | | price of the property. In all cases where property | 14 | | functionally used or consumed is a by-product or waste product | 15 | | that has been refined, manufactured, or produced from property | 16 | | purchased at retail, then the tax is imposed on the lower of | 17 | | the fair market value, if any, of the specific property so used | 18 | | in this State or on the selling price of the property purchased | 19 | | at retail. For purposes of this Section "fair market value" | 20 | | means the price at which property would change hands between a | 21 | | willing buyer and a willing seller, neither being under any | 22 | | compulsion to buy or sell and both having reasonable knowledge | 23 | | of the relevant facts. The fair market value shall be |
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| 1 | | established by Illinois sales by the taxpayer of the same | 2 | | property as that functionally used or consumed, or if there | 3 | | are no such sales by the taxpayer, then comparable sales or | 4 | | purchases of property of like kind and character in Illinois. | 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 | | Beginning on August 6, 2010 through August 15, 2010, and | 10 | | beginning again on August 5, 2022 through August 14, 2022, | 11 | | with respect to sales tax holiday items as defined in Section | 12 | | 3-6 of this Act, the tax is imposed at the rate of 1.25%. | 13 | | With respect to gasohol, the tax imposed by this Act | 14 | | applies to (i) 70% of the proceeds of sales made on or after | 15 | | January 1, 1990, and before July 1, 2003, (ii) 80% of the | 16 | | proceeds of sales made on or after July 1, 2003 and on or | 17 | | before July 1, 2017, (iii) 100% of the proceeds of sales made | 18 | | after July 1, 2017 and prior to January 1, 2024, (iv) 90% of | 19 | | the proceeds of sales made on or after January 1, 2024 and on | 20 | | or before December 31, 2028, and (v) 100% of the proceeds of | 21 | | sales made after December 31, 2028. If, at any time, however, | 22 | | the tax under this Act on sales of gasohol is imposed at the | 23 | | rate of 1.25%, then the tax imposed by this Act applies to 100% | 24 | | of the proceeds of sales of gasohol made during that time. | 25 | | With respect to mid-range ethanol blends, the tax imposed | 26 | | by this Act applies to (i) 80% of the proceeds of sales made on |
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| 1 | | or after January 1, 2024 and on or before December 31, 2028 and | 2 | | (ii) 100% of the proceeds of sales made thereafter. If, at any | 3 | | time, however, the tax under this Act on sales of mid-range | 4 | | ethanol blends is imposed at the rate of 1.25%, then the tax | 5 | | imposed by this Act applies to 100% of the proceeds of sales of | 6 | | mid-range ethanol blends made during that time. | 7 | | With respect to majority blended ethanol fuel, the tax | 8 | | imposed by this Act does not apply to the proceeds of sales | 9 | | made on or after July 1, 2003 and on or before December 31, | 10 | | 2028 but applies to 100% of the proceeds of sales made | 11 | | thereafter. | 12 | | With respect to biodiesel blends with no less than 1% and | 13 | | no more than 10% biodiesel, the tax imposed by this Act applies | 14 | | to (i) 80% of the proceeds of sales made on or after July 1, | 15 | | 2003 and on or before December 31, 2018 and (ii) 100% of the | 16 | | proceeds of sales made after December 31, 2018 and before | 17 | | January 1, 2024. On and after January 1, 2024 and on or before | 18 | | December 31, 2030, the taxation of biodiesel, renewable | 19 | | diesel, and biodiesel blends shall be as provided in Section | 20 | | 3-5.1. If, at any time, however, the tax under this Act on | 21 | | sales of biodiesel blends with no less than 1% and no more than | 22 | | 10% biodiesel is imposed at the rate of 1.25%, then the tax | 23 | | imposed by this Act applies to 100% of the proceeds of sales of | 24 | | biodiesel blends with no less than 1% and no more than 10% | 25 | | biodiesel made during that time. | 26 | | With respect to biodiesel and biodiesel blends with more |
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| 1 | | than 10% but no more than 99% biodiesel, the tax imposed by | 2 | | this Act does not apply to the proceeds of sales made on or | 3 | | after July 1, 2003 and on or before December 31, 2023. On and | 4 | | after January 1, 2024 and on or before December 31, 2030, the | 5 | | taxation of biodiesel, renewable diesel, and biodiesel blends | 6 | | shall be as provided in Section 3-5.1. | 7 | | Until July 1, 2022 and beginning again on July 1, 2023, | 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, food consisting of or infused with adult | 11 | | use cannabis, soft drinks, and food that has been prepared for | 12 | | immediate consumption), the tax is imposed at the rate of 1%. | 13 | | Beginning on July 1, 2022 and until July 1, 2023, with respect | 14 | | to food for human consumption that is to be consumed off the | 15 | | premises where it is sold (other than alcoholic beverages, | 16 | | food consisting of or infused with adult use cannabis, soft | 17 | | drinks, and food that has been prepared for immediate | 18 | | consumption), the tax is imposed at the rate of 0%. | 19 | | With respect to prescription and nonprescription | 20 | | medicines, drugs, medical appliances, products classified as | 21 | | Class III medical devices by the United States Food and Drug | 22 | | Administration that are used for cancer treatment pursuant to | 23 | | a prescription, as well as any accessories and components | 24 | | related to those devices, modifications to a motor vehicle for | 25 | | the purpose of rendering it usable by a person with a | 26 | | disability, and insulin, blood sugar testing materials, |
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| 1 | | syringes, and needles used by human diabetics, the tax is | 2 | | imposed at the rate of 1%. For the purposes of this Section, | 3 | | until September 1, 2009: the term "soft drinks" means any | 4 | | complete, finished, ready-to-use, non-alcoholic drink, whether | 5 | | carbonated or not, including, but not limited to, soda water, | 6 | | cola, fruit juice, vegetable juice, carbonated water, and all | 7 | | other preparations commonly known as soft drinks of whatever | 8 | | kind or description that are contained in any closed or sealed | 9 | | bottle, can, carton, or container, regardless of size; but | 10 | | "soft drinks" does not include coffee, tea, non-carbonated | 11 | | water, infant formula, milk or milk products as defined in the | 12 | | Grade A Pasteurized Milk and Milk Products Act, or drinks | 13 | | containing 50% or more natural fruit or vegetable juice. | 14 | | Notwithstanding any other provisions of this Act, | 15 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 16 | | beverages that contain natural or artificial sweeteners. "Soft | 17 | | drinks" does not include beverages that contain milk or milk | 18 | | products, soy, rice or similar milk substitutes, or greater | 19 | | than 50% of vegetable or fruit juice by volume. | 20 | | Until August 1, 2009, and notwithstanding any other | 21 | | provisions of this Act, "food for human consumption that is to | 22 | | be consumed off the premises where it is sold" includes all | 23 | | food sold through a vending machine, except soft drinks and | 24 | | food products that are dispensed hot from a vending machine, | 25 | | regardless of the location of the vending machine. Beginning | 26 | | August 1, 2009, and notwithstanding any other provisions of |
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| 1 | | this Act, "food for human consumption that is to be consumed | 2 | | off the premises where it is sold" includes all food sold | 3 | | through a vending machine, except soft drinks, candy, and food | 4 | | products that are dispensed hot from a vending machine, | 5 | | regardless of the location of the vending machine. | 6 | | Notwithstanding any other provisions of this Act, | 7 | | beginning September 1, 2009, "food for human consumption that | 8 | | is to be consumed off the premises where it is sold" does not | 9 | | include candy. For purposes of this Section, "candy" means a | 10 | | preparation of sugar, honey, or other natural or artificial | 11 | | sweeteners in combination with chocolate, fruits, nuts or | 12 | | other ingredients or flavorings in the form of bars, drops, or | 13 | | pieces. "Candy" does not include any preparation that contains | 14 | | flour or requires refrigeration. | 15 | | Notwithstanding any other provisions of this Act, | 16 | | beginning September 1, 2009, "nonprescription medicines and | 17 | | drugs" does not include grooming and hygiene products. For | 18 | | purposes of this Section, "grooming and hygiene products" | 19 | | includes, but is not limited to, soaps and cleaning solutions, | 20 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 21 | | lotions and screens, unless those products are available by | 22 | | prescription only, regardless of whether the products meet the | 23 | | definition of "over-the-counter-drugs". For the purposes of | 24 | | this paragraph, "over-the-counter-drug" means a drug for human | 25 | | use that contains a label that identifies the product as a drug | 26 | | as required by 21 CFR 201.66. The "over-the-counter-drug" |
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| 1 | | label includes: | 2 | | (A) a "Drug Facts" panel; or | 3 | | (B) a statement of the "active ingredient(s)" with a | 4 | | list of those ingredients contained in the compound, | 5 | | substance or preparation. | 6 | | Beginning on January 1, 2014 (the effective date of Public | 7 | | Act 98-122), "prescription and nonprescription medicines and | 8 | | drugs" includes medical cannabis purchased from a registered | 9 | | dispensing organization under the Compassionate Use of Medical | 10 | | Cannabis Program Act. | 11 | | As used in this Section, "adult use cannabis" means | 12 | | cannabis subject to tax under the Cannabis Cultivation | 13 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law | 14 | | and does not include cannabis subject to tax under the | 15 | | Compassionate Use of Medical Cannabis Program Act. | 16 | | If the property that is purchased at retail from a | 17 | | retailer is acquired outside Illinois and used outside | 18 | | Illinois before being brought to Illinois for use here and is | 19 | | taxable under this Act, the "selling price" on which the tax is | 20 | | computed shall be reduced by an amount that represents a | 21 | | reasonable allowance for depreciation for the period of prior | 22 | | out-of-state use. | 23 | | Beginning on January 1, 2025, with respect to firearms, | 24 | | the tax is imposed at the rate of 11%. | 25 | | (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20, | 26 | | Section 20-5, eff. 4-19-22; 102-700, Article 60, Section |
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| 1 | | 60-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff. | 2 | | 4-19-22; 103-9, eff. 6-7-23; 103-154 eff. 6-30-23.) | 3 | | Section 10. The Service Use Tax Act is amended by changing | 4 | | Section 3-10 as follows: | 5 | | (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10) | 6 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this | 7 | | Section, the tax imposed by this Act is at the rate of 6.25% of | 8 | | the selling price of tangible personal property transferred as | 9 | | an incident to the sale of service, but, for the purpose of | 10 | | computing this tax, in no event shall the selling price be less | 11 | | than the cost price of the property to the serviceman. | 12 | | Beginning on July 1, 2000 and through December 31, 2000, | 13 | | with respect to motor fuel, as defined in Section 1.1 of the | 14 | | Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of | 15 | | the Use Tax Act, the tax is imposed at the rate of 1.25%. | 16 | | With respect to gasohol, as defined in the Use Tax Act, the | 17 | | tax imposed by this Act applies to (i) 70% of the selling price | 18 | | of property transferred as an incident to the sale of service | 19 | | on or after January 1, 1990, and before July 1, 2003, (ii) 80% | 20 | | of the selling price of property transferred as an incident to | 21 | | the sale of service on or after July 1, 2003 and on or before | 22 | | July 1, 2017, (iii) 100% of the selling price of property | 23 | | transferred as an incident to the sale of service after July 1, | 24 | | 2017 and before January 1, 2024, (iv) 90% of the selling price |
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| 1 | | of property transferred as an incident to the sale of service | 2 | | on or after January 1, 2024 and on or before December 31, 2028, | 3 | | and (v) 100% of the selling price of property transferred as an | 4 | | incident to the sale of service after December 31, 2028. If, at | 5 | | any time, however, the tax under this Act on sales of gasohol, | 6 | | as defined in the Use Tax Act, is imposed at the rate of 1.25%, | 7 | | then the tax imposed by this Act applies to 100% of the | 8 | | proceeds of sales of gasohol made during that time. | 9 | | With respect to mid-range ethanol blends, as defined in | 10 | | Section 3-44.3 of the Use Tax Act, the tax imposed by this Act | 11 | | applies to (i) 80% of the selling price of property | 12 | | transferred as an incident to the sale of service on or after | 13 | | January 1, 2024 and on or before December 31, 2028 and (ii) | 14 | | 100% of the selling price of property transferred as an | 15 | | incident to the sale of service after December 31, 2028. If, at | 16 | | any time, however, the tax under this Act on sales of mid-range | 17 | | ethanol blends is imposed at the rate of 1.25%, then the tax | 18 | | imposed by this Act applies to 100% of the selling price of | 19 | | mid-range ethanol blends transferred as an incident to the | 20 | | sale of service during that time. | 21 | | With respect to majority blended ethanol fuel, as defined | 22 | | in the Use Tax Act, the tax imposed by this Act does not apply | 23 | | to the selling price of property transferred as an incident to | 24 | | the sale of service on or after July 1, 2003 and on or before | 25 | | December 31, 2028 but applies to 100% of the selling price | 26 | | thereafter. |
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| 1 | | With respect to biodiesel blends, as defined in the Use | 2 | | Tax Act, with no less than 1% and no more than 10% biodiesel, | 3 | | the tax imposed by this Act applies to (i) 80% of the selling | 4 | | price of property transferred as an incident to the sale of | 5 | | service on or after July 1, 2003 and on or before December 31, | 6 | | 2018 and (ii) 100% of the proceeds of the selling price after | 7 | | December 31, 2018 and before January 1, 2024. On and after | 8 | | January 1, 2024 and on or before December 31, 2030, the | 9 | | taxation of biodiesel, renewable diesel, and biodiesel blends | 10 | | shall be as provided in Section 3-5.1 of the Use Tax Act. If, | 11 | | at any time, however, the tax under this Act on sales of | 12 | | biodiesel blends, as defined in the Use Tax Act, with no less | 13 | | than 1% and no more than 10% biodiesel is imposed at the rate | 14 | | of 1.25%, then the tax imposed by this Act applies to 100% of | 15 | | the proceeds of sales of biodiesel blends with no less than 1% | 16 | | and no more than 10% biodiesel made during that time. | 17 | | With respect to biodiesel, as defined in the Use Tax Act, | 18 | | and biodiesel blends, as defined in the Use Tax Act, with more | 19 | | than 10% but no more than 99% biodiesel, the tax imposed by | 20 | | this Act does not apply to the proceeds of the selling price of | 21 | | property transferred as an incident to the sale of service on | 22 | | or after July 1, 2003 and on or before December 31, 2023. On | 23 | | and after January 1, 2024 and on or before December 31, 2030, | 24 | | the taxation of biodiesel, renewable diesel, and biodiesel | 25 | | blends shall be as provided in Section 3-5.1 of the Use Tax | 26 | | Act. |
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| 1 | | At the election of any registered serviceman made for each | 2 | | fiscal year, sales of service in which the aggregate annual | 3 | | cost price of tangible personal property transferred as an | 4 | | incident to the sales of service is less than 35%, or 75% in | 5 | | the case of servicemen transferring prescription drugs or | 6 | | servicemen engaged in graphic arts production, of the | 7 | | aggregate annual total gross receipts from all sales of | 8 | | service, the tax imposed by this Act shall be based on the | 9 | | serviceman's cost price of the tangible personal property | 10 | | transferred as an incident to the sale of those services. | 11 | | Until July 1, 2022 and beginning again on July 1, 2023, the | 12 | | tax shall be imposed at the rate of 1% on food prepared for | 13 | | immediate consumption and transferred incident to a sale of | 14 | | service subject to this Act or the Service Occupation Tax Act | 15 | | by an entity licensed under the Hospital Licensing Act, the | 16 | | Nursing Home Care Act, the Assisted Living and Shared Housing | 17 | | Act, the ID/DD Community Care Act, the MC/DD Act, the | 18 | | Specialized Mental Health Rehabilitation Act of 2013, or the | 19 | | Child Care Act of 1969, or an entity that holds a permit issued | 20 | | pursuant to the Life Care Facilities Act. Until July 1, 2022 | 21 | | and beginning again on July 1, 2023, the tax shall also be | 22 | | imposed at the rate of 1% on food for human consumption that is | 23 | | to be consumed off the premises where it is sold (other than | 24 | | alcoholic beverages, food consisting of or infused with adult | 25 | | use cannabis, 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). | 2 | | Beginning on July 1, 2022 and until July 1, 2023, the tax | 3 | | shall be imposed at the rate of 0% on food prepared for | 4 | | immediate consumption and transferred incident to a sale of | 5 | | service subject to this Act or the Service Occupation Tax Act | 6 | | by an entity licensed under the Hospital Licensing Act, the | 7 | | Nursing Home Care Act, the Assisted Living and Shared Housing | 8 | | Act, the ID/DD Community Care Act, the MC/DD Act, the | 9 | | Specialized Mental Health Rehabilitation Act of 2013, or the | 10 | | Child Care Act of 1969, or an entity that holds a permit issued | 11 | | pursuant to the Life Care Facilities Act. Beginning on July 1, | 12 | | 2022 and until July 1, 2023, the tax shall also be imposed at | 13 | | the rate of 0% on food for human consumption that is to be | 14 | | consumed off the premises where it is sold (other than | 15 | | alcoholic beverages, food consisting of or infused with adult | 16 | | use cannabis, soft drinks, and food that has been prepared for | 17 | | immediate consumption and is not otherwise included in this | 18 | | paragraph). | 19 | | The tax shall also be imposed at the rate of 1% on | 20 | | prescription and nonprescription medicines, drugs, medical | 21 | | appliances, products classified as Class III medical devices | 22 | | by the United States Food and Drug Administration that are | 23 | | used for cancer treatment pursuant to a prescription, as well | 24 | | as any accessories and components related to those devices, | 25 | | modifications to a motor vehicle for the purpose of rendering | 26 | | it usable by a person with a disability, and insulin, blood |
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| 1 | | sugar testing materials, syringes, and needles used by human | 2 | | diabetics. For the purposes of this Section, until September | 3 | | 1, 2009: the term "soft drinks" means any complete, finished, | 4 | | ready-to-use, non-alcoholic drink, whether carbonated or not, | 5 | | including, but not limited to, soda water, cola, fruit juice, | 6 | | vegetable juice, carbonated water, and all other preparations | 7 | | commonly known as soft drinks of whatever kind or description | 8 | | that are contained in any closed or sealed bottle, can, | 9 | | carton, or container, regardless of size; but "soft drinks" | 10 | | does not include coffee, tea, non-carbonated water, infant | 11 | | formula, milk or milk products as defined in the Grade A | 12 | | Pasteurized Milk and Milk Products Act, or drinks containing | 13 | | 50% or more natural fruit or vegetable juice. | 14 | | Notwithstanding any other provisions of this Act, | 15 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 16 | | beverages that contain natural or artificial sweeteners. "Soft | 17 | | drinks" does not include beverages that contain milk or milk | 18 | | products, soy, rice or similar milk substitutes, or greater | 19 | | than 50% of vegetable or fruit juice by volume. | 20 | | Until August 1, 2009, and notwithstanding any other | 21 | | provisions of this Act, "food for human consumption that is to | 22 | | be consumed off the premises where it is sold" includes all | 23 | | food sold through a vending machine, except soft drinks and | 24 | | food products that are dispensed hot from a vending machine, | 25 | | regardless of the location of the vending machine. Beginning | 26 | | August 1, 2009, and notwithstanding any other provisions of |
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| 1 | | this Act, "food for human consumption that is to be consumed | 2 | | off the premises where it is sold" includes all food sold | 3 | | through a vending machine, except soft drinks, candy, and food | 4 | | products that are dispensed hot from a vending machine, | 5 | | regardless of the location of the vending machine. | 6 | | Notwithstanding any other provisions of this Act, | 7 | | beginning September 1, 2009, "food for human consumption that | 8 | | is to be consumed off the premises where it is sold" does not | 9 | | include candy. For purposes of this Section, "candy" means a | 10 | | preparation of sugar, honey, or other natural or artificial | 11 | | sweeteners in combination with chocolate, fruits, nuts or | 12 | | other ingredients or flavorings in the form of bars, drops, or | 13 | | pieces. "Candy" does not include any preparation that contains | 14 | | flour or requires refrigeration. | 15 | | Notwithstanding any other provisions of this Act, | 16 | | beginning September 1, 2009, "nonprescription medicines and | 17 | | drugs" does not include grooming and hygiene products. For | 18 | | purposes of this Section, "grooming and hygiene products" | 19 | | includes, but is not limited to, soaps and cleaning solutions, | 20 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 21 | | lotions and screens, unless those products are available by | 22 | | prescription only, regardless of whether the products meet the | 23 | | definition of "over-the-counter-drugs". For the purposes of | 24 | | this paragraph, "over-the-counter-drug" means a drug for human | 25 | | use that contains a label that identifies the product as a drug | 26 | | as required by 21 CFR 201.66. The "over-the-counter-drug" |
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| 1 | | label includes: | 2 | | (A) a "Drug Facts" panel; or | 3 | | (B) a statement of the "active ingredient(s)" with a | 4 | | list of those ingredients contained in the compound, | 5 | | substance or preparation. | 6 | | Beginning on January 1, 2014 (the effective date of Public | 7 | | Act 98-122), "prescription and nonprescription medicines and | 8 | | drugs" includes medical cannabis purchased from a registered | 9 | | dispensing organization under the Compassionate Use of Medical | 10 | | Cannabis Program Act. | 11 | | As used in this Section, "adult use cannabis" means | 12 | | cannabis subject to tax under the Cannabis Cultivation | 13 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law | 14 | | and does not include cannabis subject to tax under the | 15 | | Compassionate Use of Medical Cannabis Program Act. | 16 | | Beginning on January 1, 2025, with respect to firearms, | 17 | | the tax is imposed at the rate of 11%. | 18 | | If the property that is acquired from a serviceman is | 19 | | acquired outside Illinois and used outside Illinois before | 20 | | being brought to Illinois for use here and is taxable under | 21 | | this Act, the "selling price" on which the tax is computed | 22 | | shall be reduced by an amount that represents a reasonable | 23 | | allowance for depreciation for the period of prior | 24 | | out-of-state use. | 25 | | (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; | 26 | | 102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700, |
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| 1 | | Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23; | 2 | | 103-154, eff. 6-30-23.) | 3 | | Section 15. The Service Occupation Tax Act is amended by | 4 | | changing Section 3-10 as follows: | 5 | | (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10) | 6 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this | 7 | | Section, the tax imposed by this Act is at the rate of 6.25% of | 8 | | the "selling price", as defined in Section 2 of the Service Use | 9 | | Tax Act, of the tangible personal property. For the purpose of | 10 | | computing this tax, in no event shall the "selling price" be | 11 | | less than the cost price to the serviceman of the tangible | 12 | | personal property transferred. The selling price of each item | 13 | | of tangible personal property transferred as an incident of a | 14 | | sale of service may be shown as a distinct and separate item on | 15 | | the serviceman's billing to the service customer. If the | 16 | | selling price is not so shown, the selling price of the | 17 | | tangible personal property is deemed to be 50% of the | 18 | | serviceman's entire billing to the service customer. When, | 19 | | however, a serviceman contracts to design, develop, and | 20 | | produce special order machinery or equipment, the tax imposed | 21 | | by this Act shall be based on the serviceman's cost price of | 22 | | the tangible personal property transferred incident to the | 23 | | completion of the contract. | 24 | | Beginning on July 1, 2000 and through December 31, 2000, |
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| 1 | | with respect to motor fuel, as defined in Section 1.1 of the | 2 | | Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of | 3 | | the Use Tax Act, the tax is imposed at the rate of 1.25%. | 4 | | With respect to gasohol, as defined in the Use Tax Act, the | 5 | | tax imposed by this Act shall apply to (i) 70% of the cost | 6 | | price of property transferred as an incident to the sale of | 7 | | service on or after January 1, 1990, and before July 1, 2003, | 8 | | (ii) 80% of the selling price of property transferred as an | 9 | | incident to the sale of service on or after July 1, 2003 and on | 10 | | or before July 1, 2017, (iii) 100% of the selling price of | 11 | | property transferred as an incident to the sale of service | 12 | | after July 1, 2017 and prior to January 1, 2024, (iv) 90% of | 13 | | the selling price of property transferred as an incident to | 14 | | the sale of service on or after January 1, 2024 and on or | 15 | | before December 31, 2028, and (v) 100% of the selling price of | 16 | | property transferred as an incident to the sale of service | 17 | | after December 31, 2028. If, at any time, however, the tax | 18 | | under this Act on sales of gasohol, as defined in the Use Tax | 19 | | Act, is imposed at the rate of 1.25%, then the tax imposed by | 20 | | this Act applies to 100% of the proceeds of sales of gasohol | 21 | | made during that time. | 22 | | With respect to mid-range ethanol blends, as defined in | 23 | | Section 3-44.3 of the Use Tax Act, the tax imposed by this Act | 24 | | applies to (i) 80% of the selling price of property | 25 | | transferred as an incident to the sale of service on or after | 26 | | January 1, 2024 and on or before December 31, 2028 and (ii) |
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| 1 | | 100% of the selling price of property transferred as an | 2 | | incident to the sale of service after December 31, 2028. If, at | 3 | | any time, however, the tax under this Act on sales of mid-range | 4 | | ethanol blends is imposed at the rate of 1.25%, then the tax | 5 | | imposed by this Act applies to 100% of the selling price of | 6 | | mid-range ethanol blends transferred as an incident to the | 7 | | sale of service during that time. | 8 | | With respect to majority blended ethanol fuel, as defined | 9 | | in the Use Tax Act, the tax imposed by this Act does not apply | 10 | | to the selling price of property transferred as an incident to | 11 | | the sale of service on or after July 1, 2003 and on or before | 12 | | December 31, 2028 but applies to 100% of the selling price | 13 | | thereafter. | 14 | | With respect to biodiesel blends, as defined in the Use | 15 | | Tax Act, with no less than 1% and no more than 10% biodiesel, | 16 | | the tax imposed by this Act applies to (i) 80% of the selling | 17 | | price of property transferred as an incident to the sale of | 18 | | service on or after July 1, 2003 and on or before December 31, | 19 | | 2018 and (ii) 100% of the proceeds of the selling price after | 20 | | December 31, 2018 and before January 1, 2024. On and after | 21 | | January 1, 2024 and on or before December 31, 2030, the | 22 | | taxation of biodiesel, renewable diesel, and biodiesel blends | 23 | | shall be as provided in Section 3-5.1 of the Use Tax Act. If, | 24 | | at any time, however, the tax under this Act on sales of | 25 | | biodiesel blends, as defined in the Use Tax Act, with no less | 26 | | than 1% and no more than 10% biodiesel is imposed at the rate |
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| 1 | | of 1.25%, then the tax imposed by this Act applies to 100% of | 2 | | the proceeds of sales of biodiesel blends with no less than 1% | 3 | | and no more than 10% biodiesel made during that time. | 4 | | With respect to biodiesel, as defined in the Use Tax Act, | 5 | | and biodiesel blends, as defined in the Use Tax Act, with more | 6 | | than 10% but no more than 99% biodiesel material, the tax | 7 | | imposed by this Act does not apply to the proceeds of the | 8 | | selling price of property transferred as an incident to the | 9 | | sale of service on or after July 1, 2003 and on or before | 10 | | December 31, 2023. On and after January 1, 2024 and on or | 11 | | before December 31, 2030, the taxation of biodiesel, renewable | 12 | | diesel, and biodiesel blends shall be as provided in Section | 13 | | 3-5.1 of the Use Tax Act. | 14 | | At the election of any registered serviceman made for each | 15 | | fiscal year, sales of service in which the aggregate annual | 16 | | cost price of tangible personal property transferred as an | 17 | | incident to the sales of service is less than 35%, or 75% in | 18 | | the case of servicemen transferring prescription drugs or | 19 | | servicemen engaged in graphic arts production, of the | 20 | | aggregate annual total gross receipts from all sales of | 21 | | service, the tax imposed by this Act shall be based on the | 22 | | serviceman's cost price of the tangible personal property | 23 | | transferred incident to the sale of those services. | 24 | | Until July 1, 2022 and beginning again on July 1, 2023, the | 25 | | tax shall be imposed at the rate of 1% on food prepared for | 26 | | immediate consumption and transferred incident to a sale of |
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| 1 | | service subject to this Act or the Service Use Tax Act by an | 2 | | entity licensed under the Hospital Licensing Act, the Nursing | 3 | | Home Care Act, the Assisted Living and Shared Housing Act, the | 4 | | ID/DD Community Care Act, the MC/DD Act, the Specialized | 5 | | Mental Health Rehabilitation Act of 2013, or the Child Care | 6 | | Act of 1969, or an entity that holds a permit issued pursuant | 7 | | to the Life Care Facilities Act. Until July 1, 2022 and | 8 | | beginning again on July 1, 2023, the tax shall also be imposed | 9 | | at the rate of 1% on food for human consumption that is to be | 10 | | consumed off the premises where it is sold (other than | 11 | | alcoholic beverages, food consisting of or infused with adult | 12 | | use cannabis, soft drinks, and food that has been prepared for | 13 | | immediate consumption and is not otherwise included in this | 14 | | paragraph). | 15 | | Beginning on July 1, 2022 and until July 1, 2023, the tax | 16 | | shall be imposed at the rate of 0% on food prepared for | 17 | | immediate consumption and transferred incident to a sale of | 18 | | service subject to this Act or the Service Use Tax Act by an | 19 | | entity licensed under the Hospital Licensing Act, the Nursing | 20 | | Home Care Act, the Assisted Living and Shared Housing Act, the | 21 | | ID/DD Community Care Act, the MC/DD Act, the Specialized | 22 | | Mental Health Rehabilitation Act of 2013, or the Child Care | 23 | | Act of 1969, or an entity that holds a permit issued pursuant | 24 | | to the Life Care Facilities Act. Beginning July 1, 2022 and | 25 | | until July 1, 2023, the tax shall also be imposed at the rate | 26 | | of 0% on food for human consumption that is to be consumed off |
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| 1 | | the premises where it is sold (other than alcoholic beverages, | 2 | | food consisting of or infused with adult use cannabis, soft | 3 | | drinks, and food that has been prepared for immediate | 4 | | consumption and is not otherwise included in this paragraph). | 5 | | The tax shall also be imposed at the rate of 1% on | 6 | | prescription and nonprescription medicines, drugs, medical | 7 | | appliances, products classified as Class III medical devices | 8 | | by the United States Food and Drug Administration that are | 9 | | used for cancer treatment pursuant to a prescription, as well | 10 | | as any accessories and components related to those devices, | 11 | | modifications to a motor vehicle for the purpose of rendering | 12 | | it usable by a person with a disability, and insulin, blood | 13 | | sugar testing materials, syringes, and needles used by human | 14 | | diabetics. For the purposes of this Section, until September | 15 | | 1, 2009: the term "soft drinks" means any complete, finished, | 16 | | ready-to-use, non-alcoholic drink, whether carbonated or not, | 17 | | including, but not limited to, soda water, cola, fruit juice, | 18 | | vegetable juice, carbonated water, and all other preparations | 19 | | commonly known as soft drinks of whatever kind or description | 20 | | that are contained in any closed or sealed can, carton, or | 21 | | container, regardless of size; but "soft drinks" does not | 22 | | include coffee, tea, non-carbonated water, infant formula, | 23 | | milk or milk products as defined in the Grade A Pasteurized | 24 | | Milk and Milk Products Act, or drinks containing 50% or more | 25 | | natural fruit or vegetable juice. | 26 | | Notwithstanding any other provisions of this Act, |
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| 1 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 2 | | beverages that contain natural or artificial sweeteners. "Soft | 3 | | drinks" does not include beverages that contain milk or milk | 4 | | products, soy, rice or similar milk substitutes, or greater | 5 | | than 50% of vegetable or fruit juice by volume. | 6 | | Until August 1, 2009, and notwithstanding any other | 7 | | provisions of this Act, "food for human consumption that is to | 8 | | be consumed off the premises where it is sold" includes all | 9 | | food sold through a vending machine, except soft drinks and | 10 | | food products that are dispensed hot from a vending machine, | 11 | | regardless of the location of the vending machine. Beginning | 12 | | August 1, 2009, and notwithstanding any other provisions of | 13 | | this Act, "food for human consumption that is to be consumed | 14 | | off the premises where it is sold" includes all food sold | 15 | | through a vending machine, except soft drinks, candy, and food | 16 | | products that are dispensed hot from a vending machine, | 17 | | regardless of the location of the vending machine. | 18 | | Notwithstanding any other provisions of this Act, | 19 | | beginning September 1, 2009, "food for human consumption that | 20 | | is to be consumed off the premises where it is sold" does not | 21 | | include candy. For purposes of this Section, "candy" means a | 22 | | preparation of sugar, honey, or other natural or artificial | 23 | | sweeteners in combination with chocolate, fruits, nuts or | 24 | | other ingredients or flavorings in the form of bars, drops, or | 25 | | pieces. "Candy" does not include any preparation that contains | 26 | | flour or requires refrigeration. |
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| 1 | | Notwithstanding any other provisions of this Act, | 2 | | beginning September 1, 2009, "nonprescription medicines and | 3 | | drugs" does not include grooming and hygiene products. For | 4 | | purposes of this Section, "grooming and hygiene products" | 5 | | includes, but is not limited to, soaps and cleaning solutions, | 6 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 7 | | lotions and screens, unless those products are available by | 8 | | prescription only, regardless of whether the products meet the | 9 | | definition of "over-the-counter-drugs". For the purposes of | 10 | | this paragraph, "over-the-counter-drug" means a drug for human | 11 | | use that contains a label that identifies the product as a drug | 12 | | as required by 21 CFR 201.66. The "over-the-counter-drug" | 13 | | label includes: | 14 | | (A) a "Drug Facts" panel; or | 15 | | (B) a statement of the "active ingredient(s)" with a | 16 | | list of those ingredients contained in the compound, | 17 | | substance or preparation. | 18 | | Beginning on January 1, 2014 (the effective date of Public | 19 | | Act 98-122), "prescription and nonprescription medicines and | 20 | | drugs" includes medical cannabis purchased from a registered | 21 | | dispensing organization under the Compassionate Use of Medical | 22 | | Cannabis Program Act. | 23 | | As used in this Section, "adult use cannabis" means | 24 | | cannabis subject to tax under the Cannabis Cultivation | 25 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law | 26 | | and does not include cannabis subject to tax under the |
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| 1 | | Compassionate Use of Medical Cannabis Program Act. | 2 | | Beginning on January 1, 2025, with respect to firearms, | 3 | | the tax is imposed at the rate of 11%. | 4 | | (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; | 5 | | 102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700, | 6 | | Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23; | 7 | | 103-154, eff. 6-30-23.) | 8 | | Section 20. The Retailers' Occupation Tax Act is amended | 9 | | by changing Section 2-10 as follows: | 10 | | (35 ILCS 120/2-10) | 11 | | Sec. 2-10. Rate of tax. Unless otherwise provided in this | 12 | | Section, the tax imposed by this Act is at the rate of 6.25% of | 13 | | gross receipts from sales of tangible personal property made | 14 | | in the course of business. | 15 | | Beginning on July 1, 2000 and through December 31, 2000, | 16 | | with respect to motor fuel, as defined in Section 1.1 of the | 17 | | Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of | 18 | | the Use Tax Act, the tax is imposed at the rate of 1.25%. | 19 | | Beginning on August 6, 2010 through August 15, 2010, and | 20 | | beginning again on August 5, 2022 through August 14, 2022, | 21 | | with respect to sales tax holiday items as defined in Section | 22 | | 2-8 of this Act, the tax is imposed at the rate of 1.25%. | 23 | | Within 14 days after July 1, 2000 (the effective date of | 24 | | Public Act 91-872), each retailer of motor fuel and gasohol |
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| 1 | | shall cause the following notice to be posted in a prominently | 2 | | visible place on each retail dispensing device that is used to | 3 | | dispense motor fuel or gasohol in the State of Illinois: "As of | 4 | | July 1, 2000, the State of Illinois has eliminated the State's | 5 | | share of sales tax on motor fuel and gasohol through December | 6 | | 31, 2000. The price on this pump should reflect the | 7 | | elimination of the tax." The notice shall be printed in bold | 8 | | print on a sign that is no smaller than 4 inches by 8 inches. | 9 | | The sign shall be clearly visible to customers. Any retailer | 10 | | who fails to post or maintain a required sign through December | 11 | | 31, 2000 is guilty of a petty offense for which the fine shall | 12 | | be $500 per day per each retail premises where a violation | 13 | | occurs. | 14 | | With respect to gasohol, as defined in the Use Tax Act, the | 15 | | tax imposed by this Act applies to (i) 70% of the proceeds of | 16 | | sales made on or after January 1, 1990, and before July 1, | 17 | | 2003, (ii) 80% of the proceeds of sales made on or after July | 18 | | 1, 2003 and on or before July 1, 2017, (iii) 100% of the | 19 | | proceeds of sales made after July 1, 2017 and prior to January | 20 | | 1, 2024, (iv) 90% of the proceeds of sales made on or after | 21 | | January 1, 2024 and on or before December 31, 2028, and (v) | 22 | | 100% of the proceeds of sales made after December 31, 2028. If, | 23 | | at any time, however, the tax under this Act on sales of | 24 | | gasohol, as defined in the Use Tax Act, is imposed at the rate | 25 | | of 1.25%, then the tax imposed by this Act applies to 100% of | 26 | | the proceeds of sales of gasohol made during that time. |
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| 1 | | With respect to mid-range ethanol blends, as defined in | 2 | | Section 3-44.3 of the Use Tax Act, the tax imposed by this Act | 3 | | applies to (i) 80% of the proceeds of sales made on or after | 4 | | January 1, 2024 and on or before December 31, 2028 and (ii) | 5 | | 100% of the proceeds of sales made after December 31, 2028. If, | 6 | | at any time, however, the tax under this Act on sales of | 7 | | mid-range ethanol blends is imposed at the rate of 1.25%, then | 8 | | the tax imposed by this Act applies to 100% of the proceeds of | 9 | | sales of mid-range ethanol blends made during that time. | 10 | | With respect to majority blended ethanol fuel, as defined | 11 | | in the Use Tax Act, the tax imposed by this Act does not apply | 12 | | to the proceeds of sales made on or after July 1, 2003 and on | 13 | | or before December 31, 2028 but applies to 100% of the proceeds | 14 | | of sales made thereafter. | 15 | | With respect to biodiesel blends, as defined in the Use | 16 | | Tax Act, with no less than 1% and no more than 10% biodiesel, | 17 | | the tax imposed by this Act applies to (i) 80% of the proceeds | 18 | | of sales made on or after July 1, 2003 and on or before | 19 | | December 31, 2018 and (ii) 100% of the proceeds of sales made | 20 | | after December 31, 2018 and before January 1, 2024. On and | 21 | | after January 1, 2024 and on or before December 31, 2030, the | 22 | | taxation of biodiesel, renewable diesel, and biodiesel blends | 23 | | shall be as provided in Section 3-5.1 of the Use Tax Act. If, | 24 | | at any time, however, the tax under this Act on sales of | 25 | | biodiesel blends, as defined in the Use Tax Act, with no less | 26 | | than 1% and no more than 10% biodiesel is imposed at the rate |
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| 1 | | of 1.25%, then the tax imposed by this Act applies to 100% of | 2 | | the proceeds of sales of biodiesel blends with no less than 1% | 3 | | and no more than 10% biodiesel made during that time. | 4 | | With respect to biodiesel, as defined in the Use Tax Act, | 5 | | and biodiesel blends, as defined in the Use Tax Act, with more | 6 | | than 10% but no more than 99% biodiesel, the tax imposed by | 7 | | this Act does not apply to the proceeds of sales made on or | 8 | | after July 1, 2003 and on or before December 31, 2023. On and | 9 | | after January 1, 2024 and on or before December 31, 2030, the | 10 | | taxation of biodiesel, renewable diesel, and biodiesel blends | 11 | | shall be as provided in Section 3-5.1 of the Use Tax Act. | 12 | | Until July 1, 2022 and beginning again on July 1, 2023, | 13 | | with respect to food for human consumption that is to be | 14 | | consumed off the premises where it is sold (other than | 15 | | alcoholic beverages, food consisting of or infused with adult | 16 | | use cannabis, soft drinks, and food that has been prepared for | 17 | | immediate consumption), the tax is imposed at the rate of 1%. | 18 | | Beginning July 1, 2022 and until July 1, 2023, with respect to | 19 | | food for human consumption that is to be consumed off the | 20 | | premises where it is sold (other than alcoholic beverages, | 21 | | food consisting of or infused with adult use cannabis, soft | 22 | | drinks, and food that has been prepared for immediate | 23 | | consumption), the tax is imposed at the rate of 0%. | 24 | | With respect to prescription and nonprescription | 25 | | medicines, drugs, medical appliances, products classified as | 26 | | Class III medical devices by the United States Food and Drug |
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| 1 | | Administration that are used for cancer treatment pursuant to | 2 | | a prescription, as well as any accessories and components | 3 | | related to those devices, modifications to a motor vehicle for | 4 | | the purpose of rendering it usable by a person with a | 5 | | disability, and insulin, blood sugar testing materials, | 6 | | syringes, and needles used by human diabetics, the tax is | 7 | | imposed at the rate of 1%. For the purposes of this Section, | 8 | | until September 1, 2009: the term "soft drinks" means any | 9 | | complete, finished, ready-to-use, non-alcoholic drink, whether | 10 | | carbonated or not, including, but not limited to, soda water, | 11 | | cola, fruit juice, vegetable juice, carbonated water, and all | 12 | | other preparations commonly known as soft drinks of whatever | 13 | | kind or description that are contained in any closed or sealed | 14 | | bottle, can, carton, or container, regardless of size; but | 15 | | "soft drinks" does not include coffee, tea, non-carbonated | 16 | | water, infant formula, milk or milk products as defined in the | 17 | | Grade A Pasteurized Milk and Milk Products Act, or drinks | 18 | | containing 50% or more natural fruit or vegetable juice. | 19 | | Notwithstanding any other provisions of this Act, | 20 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 21 | | beverages that contain natural or artificial sweeteners. "Soft | 22 | | drinks" does not include beverages that contain milk or milk | 23 | | products, soy, rice or similar milk substitutes, or greater | 24 | | than 50% of vegetable or fruit juice by volume. | 25 | | Until August 1, 2009, and notwithstanding any other | 26 | | provisions of this Act, "food for human consumption that is to |
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| 1 | | be consumed off the premises where it is sold" includes all | 2 | | food sold through a vending machine, except soft drinks and | 3 | | food products that are dispensed hot from a vending machine, | 4 | | regardless of the location of the vending machine. Beginning | 5 | | August 1, 2009, and notwithstanding any other provisions of | 6 | | this Act, "food for human consumption that is to be consumed | 7 | | off the premises where it is sold" includes all food sold | 8 | | through a vending machine, except soft drinks, candy, and food | 9 | | products that are dispensed hot from a vending machine, | 10 | | regardless of the location of the vending machine. | 11 | | Notwithstanding any other provisions of this Act, | 12 | | beginning September 1, 2009, "food for human consumption that | 13 | | is to be consumed off the premises where it is sold" does not | 14 | | include candy. For purposes of this Section, "candy" means a | 15 | | preparation of sugar, honey, or other natural or artificial | 16 | | sweeteners in combination with chocolate, fruits, nuts or | 17 | | other ingredients or flavorings in the form of bars, drops, or | 18 | | pieces. "Candy" does not include any preparation that contains | 19 | | flour or requires refrigeration. | 20 | | Notwithstanding any other provisions of this Act, | 21 | | beginning September 1, 2009, "nonprescription medicines and | 22 | | drugs" does not include grooming and hygiene products. For | 23 | | purposes of this Section, "grooming and hygiene products" | 24 | | includes, but is not limited to, soaps and cleaning solutions, | 25 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 26 | | lotions and screens, unless those products are available by |
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| 1 | | prescription only, regardless of whether the products meet the | 2 | | definition of "over-the-counter-drugs". For the purposes of | 3 | | this paragraph, "over-the-counter-drug" means a drug for human | 4 | | use that contains a label that identifies the product as a drug | 5 | | as required by 21 CFR 201.66. The "over-the-counter-drug" | 6 | | label includes: | 7 | | (A) a "Drug Facts" panel; or | 8 | | (B) a statement of the "active ingredient(s)" with a | 9 | | list of those ingredients contained in the compound, | 10 | | substance or preparation. | 11 | | Beginning on January 1, 2014 (the effective date of Public | 12 | | Act 98-122), "prescription and nonprescription medicines and | 13 | | drugs" includes medical cannabis purchased from a registered | 14 | | dispensing organization under the Compassionate Use of Medical | 15 | | Cannabis Program Act. | 16 | | As used in this Section, "adult use cannabis" means | 17 | | cannabis subject to tax under the Cannabis Cultivation | 18 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law | 19 | | and does not include cannabis subject to tax under the | 20 | | Compassionate Use of Medical Cannabis Program Act. | 21 | | Beginning on January 1, 2025, with respect to firearms, | 22 | | the tax is imposed at the rate of 11%. | 23 | | (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20, | 24 | | Section 20-20, eff. 4-19-22; 102-700, Article 60, Section | 25 | | 60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff. | 26 | | 4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.) |
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| 1 | | Section 99. Effective date. This Act takes effect upon | 2 | | becoming law. |
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