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| [ Introduced ] | [ Senate Amendment 001 ] |
92_SB0209eng SB209 Engrossed LRB9204110SMdvA 1 AN ACT in relation to taxes. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The State Finance Act is amended by changing 5 Sections 6z-18 and 6z-20 as follows: 6 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18) 7 Sec. 6z-18. A portion of the money paid into the Local 8 Government Tax Fund from sales of food for human consumption 9 which is to be consumed off the premises where it is sold 10 (other than alcoholic beverages, soft drinks and food which 11 has been prepared for immediate consumption) and prescription 12 and nonprescription medicines, drugs, medical appliances and 13 insulin, urine testing materials, syringes and needles used 14 by diabetics, which occurred in municipalities, shall be 15 distributed to each municipality based upon the sales which 16 occurred in that municipality. The remainder shall be 17 distributed to each county based upon the sales which 18 occurred in the unincorporated area of that county. 19 A portion of the money paid into the Local Government Tax 20 Fund from the 6.25% general use tax rate on the selling price 21 of tangible personal property which is purchased outside 22 Illinois at retail from a retailer and which is titled or 23 registered by any agency of this State's government shall be 24 distributed to municipalities as provided in this paragraph. 25 Each municipality shall receive the amount attributable to 26 sales for which Illinois addresses for titling or 27 registration purposes are given as being in such 28 municipality. The remainder of the money paid into the Local 29 Government Tax Fund from such sales shall be distributed to 30 counties. Each county shall receive the amount attributable 31 to sales for which Illinois addresses for titling or SB209 Engrossed -2- LRB9204110SMdvA 1 registration purposes are given as being located in the 2 unincorporated area of such county. 3 A portion of the money paid into the Local Government Tax 4 Fund from the 6.25% general rate (and, beginning July 1, 2000 5 and through December 31, 2000, and, beginning again on July 6 1, 2002, the 1.25% rate on motor fuel and gasohol) on sales 7 subject to taxation under the Retailers' Occupation Tax Act 8 and the Service Occupation Tax Act, which occurred in 9 municipalities, shall be distributed to each municipality, 10 based upon the sales which occurred in that municipality. The 11 remainder shall be distributed to each county, based upon the 12 sales which occurred in the unincorporated area of such 13 county. 14 For the purpose of determining allocation to the local 15 government unit, a retail sale by a producer of coal or other 16 mineral mined in Illinois is a sale at retail at the place 17 where the coal or other mineral mined in Illinois is 18 extracted from the earth. This paragraph does not apply to 19 coal or other mineral when it is delivered or shipped by the 20 seller to the purchaser at a point outside Illinois so that 21 the sale is exempt under the United States Constitution as a 22 sale in interstate or foreign commerce. 23 Whenever the Department determines that a refund of money 24 paid into the Local Government Tax Fund should be made to a 25 claimant instead of issuing a credit memorandum, the 26 Department shall notify the State Comptroller, who shall 27 cause the order to be drawn for the amount specified, and to 28 the person named, in such notification from the Department. 29 Such refund shall be paid by the State Treasurer out of the 30 Local Government Tax Fund. 31 On or before the 25th day of each calendar month, the 32 Department shall prepare and certify to the Comptroller the 33 disbursement of stated sums of money to named municipalities 34 and counties, the municipalities and counties to be those SB209 Engrossed -3- LRB9204110SMdvA 1 entitled to distribution of taxes or penalties paid to the 2 Department during the second preceding calendar month. The 3 amount to be paid to each municipality or county shall be the 4 amount (not including credit memoranda) collected during the 5 second preceding calendar month by the Department and paid 6 into the Local Government Tax Fund, plus an amount the 7 Department determines is necessary to offset any amounts 8 which were erroneously paid to a different taxing body, and 9 not including an amount equal to the amount of refunds made 10 during the second preceding calendar month by the Department, 11 and not including any amount which the Department determines 12 is necessary to offset any amounts which are payable to a 13 different taxing body but were erroneously paid to the 14 municipality or county. Within 10 days after receipt, by the 15 Comptroller, of the disbursement certification to the 16 municipalities and counties, provided for in this Section to 17 be given to the Comptroller by the Department, the 18 Comptroller shall cause the orders to be drawn for the 19 respective amounts in accordance with the directions 20 contained in such certification. 21 When certifying the amount of monthly disbursement to a 22 municipality or county under this Section, the Department 23 shall increase or decrease that amount by an amount necessary 24 to offset any misallocation of previous disbursements. The 25 offset amount shall be the amount erroneously disbursed 26 within the 6 months preceding the time a misallocation is 27 discovered. 28 The provisions directing the distributions from the 29 special fund in the State Treasury provided for in this 30 Section shall constitute an irrevocable and continuing 31 appropriation of all amounts as provided herein. The State 32 Treasurer and State Comptroller are hereby authorized to make 33 distributions as provided in this Section. 34 In construing any development, redevelopment, annexation, SB209 Engrossed -4- LRB9204110SMdvA 1 preannexation or other lawful agreement in effect prior to 2 September 1, 1990, which describes or refers to receipts from 3 a county or municipal retailers' occupation tax, use tax or 4 service occupation tax which now cannot be imposed, such 5 description or reference shall be deemed to include the 6 replacement revenue for such abolished taxes, distributed 7 from the Local Government Tax Fund. 8 (Source: P.A. 90-491, eff. 1-1-98; 91-51, eff. 6-30-99; 9 91-872, eff. 7-1-00.) 10 (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20) 11 Sec. 6z-20. Of the money received from the 6.25% general 12 rate (and, beginning July 1, 2000 and through December 31, 13 2000, and, beginning again on July 1, 2002, the 1.25% rate on 14 motor fuel and gasohol) on sales subject to taxation under 15 the Retailers' Occupation Tax Act and Service Occupation Tax 16 Act and paid into the County and Mass Transit District Fund, 17 distribution to the Regional Transportation Authority tax 18 fund, created pursuant to Section 4.03 of the Regional 19 Transportation Authority Act, for deposit therein shall be 20 made based upon the retail sales occurring in a county having 21 more than 3,000,000 inhabitants. The remainder shall be 22 distributed to each county having 3,000,000 or fewer 23 inhabitants based upon the retail sales occurring in each 24 such county. 25 For the purpose of determining allocation to the local 26 government unit, a retail sale by a producer of coal or other 27 mineral mined in Illinois is a sale at retail at the place 28 where the coal or other mineral mined in Illinois is 29 extracted from the earth. This paragraph does not apply to 30 coal or other mineral when it is delivered or shipped by the 31 seller to the purchaser at a point outside Illinois so that 32 the sale is exempt under the United States Constitution as a 33 sale in interstate or foreign commerce. SB209 Engrossed -5- LRB9204110SMdvA 1 Of the money received from the 6.25% general use tax rate 2 on tangible personal property which is purchased outside 3 Illinois at retail from a retailer and which is titled or 4 registered by any agency of this State's government and paid 5 into the County and Mass Transit District Fund, the amount 6 for which Illinois addresses for titling or registration 7 purposes are given as being in each county having more than 8 3,000,000 inhabitants shall be distributed into the Regional 9 Transportation Authority tax fund, created pursuant to 10 Section 4.03 of the Regional Transportation Authority Act. 11 The remainder of the money paid from such sales shall be 12 distributed to each county based on sales for which Illinois 13 addresses for titling or registration purposes are given as 14 being located in the county. Any money paid into the 15 Regional Transportation Authority Occupation and Use Tax 16 Replacement Fund from the County and Mass Transit District 17 Fund prior to January 14, 1991, which has not been paid to 18 the Authority prior to that date, shall be transferred to the 19 Regional Transportation Authority tax fund. 20 Whenever the Department determines that a refund of money 21 paid into the County and Mass Transit District Fund should be 22 made to a claimant instead of issuing a credit memorandum, 23 the Department shall notify the State Comptroller, who shall 24 cause the order to be drawn for the amount specified, and to 25 the person named, in such notification from the Department. 26 Such refund shall be paid by the State Treasurer out of the 27 County and Mass Transit District Fund. 28 On or before the 25th day of each calendar month, the 29 Department shall prepare and certify to the Comptroller the 30 disbursement of stated sums of money to the Regional 31 Transportation Authority and to named counties, the counties 32 to be those entitled to distribution, as hereinabove 33 provided, of taxes or penalties paid to the Department during 34 the second preceding calendar month. The amount to be paid SB209 Engrossed -6- LRB9204110SMdvA 1 to the Regional Transportation Authority and each county 2 having 3,000,000 or fewer inhabitants shall be the amount 3 (not including credit memoranda) collected during the second 4 preceding calendar month by the Department and paid into the 5 County and Mass Transit District Fund, plus an amount the 6 Department determines is necessary to offset any amounts 7 which were erroneously paid to a different taxing body, and 8 not including an amount equal to the amount of refunds made 9 during the second preceding calendar month by the Department, 10 and not including any amount which the Department determines 11 is necessary to offset any amounts which were payable to a 12 different taxing body but were erroneously paid to the 13 Regional Transportation Authority or county. Within 10 days 14 after receipt, by the Comptroller, of the disbursement 15 certification to the Regional Transportation Authority and 16 counties, provided for in this Section to be given to the 17 Comptroller by the Department, the Comptroller shall cause 18 the orders to be drawn for the respective amounts in 19 accordance with the directions contained in such 20 certification. 21 When certifying the amount of a monthly disbursement to 22 the Regional Transportation Authority or to a county under 23 this Section, the Department shall increase or decrease that 24 amount by an amount necessary to offset any misallocation of 25 previous disbursements. The offset amount shall be the 26 amount erroneously disbursed within the 6 months preceding 27 the time a misallocation is discovered. 28 The provisions directing the distributions from the 29 special fund in the State Treasury provided for in this 30 Section and from the Regional Transportation Authority tax 31 fund created by Section 4.03 of the Regional Transportation 32 Authority Act shall constitute an irrevocable and continuing 33 appropriation of all amounts as provided herein. The State 34 Treasurer and State Comptroller are hereby authorized to make SB209 Engrossed -7- LRB9204110SMdvA 1 distributions as provided in this Section. 2 In construing any development, redevelopment, annexation, 3 preannexation or other lawful agreement in effect prior to 4 September 1, 1990, which describes or refers to receipts from 5 a county or municipal retailers' occupation tax, use tax or 6 service occupation tax which now cannot be imposed, such 7 description or reference shall be deemed to include the 8 replacement revenue for such abolished taxes, distributed 9 from the County and Mass Transit District Fund or Local 10 Government Distributive Fund, as the case may be. 11 (Source: P.A. 90-491, eff. 1-1-98; 91-872, eff. 7-1-00.) 12 Section 10. The Use Tax Act is amended by changing 13 Section 3-10 as follows: 14 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10) 15 Sec. 3-10. Rate of tax. Unless otherwise provided in 16 this Section, the tax imposed by this Act is at the rate of 17 6.25% of either the selling price or the fair market value, 18 if any, of the tangible personal property. In all cases 19 where property functionally used or consumed is the same as 20 the property that was purchased at retail, then the tax is 21 imposed on the selling price of the property. In all cases 22 where property functionally used or consumed is a by-product 23 or waste product that has been refined, manufactured, or 24 produced from property purchased at retail, then the tax is 25 imposed on the lower of the fair market value, if any, of the 26 specific property so used in this State or on the selling 27 price of the property purchased at retail. For purposes of 28 this Section "fair market value" means the price at which 29 property would change hands between a willing buyer and a 30 willing seller, neither being under any compulsion to buy or 31 sell and both having reasonable knowledge of the relevant 32 facts. The fair market value shall be established by Illinois SB209 Engrossed -8- LRB9204110SMdvA 1 sales by the taxpayer of the same property as that 2 functionally used or consumed, or if there are no such sales 3 by the taxpayer, then comparable sales or purchases of 4 property of like kind and character in Illinois. 5 Beginning on July 1, 2000 and through December 31, 2000, 6 and, beginning again on July 1, 2002, with respect to motor 7 fuel, as defined in Section 1.1 of the Motor Fuel Tax Law, 8 and gasohol, as defined in Section 3-40 of the Use Tax Act, 9 the tax is imposed at the rate of 1.25%. The changes made by 10 this amendatory Act of the 92nd General Assembly are exempt 11 from the provisions of Section 3-90. 12 With respect to gasohol, the tax imposed by this Act 13 applies to 70% of the proceeds of sales made on or after 14 January 1, 1990, and before July 1, 2003, and to 100% of the 15 proceeds of sales made thereafter. 16 With respect to food for human consumption that is to be 17 consumed off the premises where it is sold (other than 18 alcoholic beverages, soft drinks, and food that has been 19 prepared for immediate consumption) and prescription and 20 nonprescription medicines, drugs, medical appliances, 21 modifications to a motor vehicle for the purpose of rendering 22 it usable by a disabled person, and insulin, urine testing 23 materials, syringes, and needles used by diabetics, for human 24 use, the tax is imposed at the rate of 1%. For the purposes 25 of this Section, the term "soft drinks" means any complete, 26 finished, ready-to-use, non-alcoholic drink, whether 27 carbonated or not, including but not limited to soda water, 28 cola, fruit juice, vegetable juice, carbonated water, and all 29 other preparations commonly known as soft drinks of whatever 30 kind or description that are contained in any closed or 31 sealed bottle, can, carton, or container, regardless of size. 32 "Soft drinks" does not include coffee, tea, non-carbonated 33 water, infant formula, milk or milk products as defined in 34 the Grade A Pasteurized Milk and Milk Products Act, or drinks SB209 Engrossed -9- LRB9204110SMdvA 1 containing 50% or more natural fruit or vegetable juice. 2 Notwithstanding any other provisions of this Act, "food 3 for human consumption that is to be consumed off the premises 4 where it is sold" includes all food sold through a vending 5 machine, except soft drinks and food products that are 6 dispensed hot from a vending machine, regardless of the 7 location of the vending machine. 8 If the property that is purchased at retail from a 9 retailer is acquired outside Illinois and used outside 10 Illinois before being brought to Illinois for use here and is 11 taxable under this Act, the "selling price" on which the tax 12 is computed shall be reduced by an amount that represents a 13 reasonable allowance for depreciation for the period of prior 14 out-of-state use. 15 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 16 91-51, eff. 6-30-99; 91-872, eff. 7-1-00.) 17 Section 15. The Service Use Tax Act is amended by 18 changing Section 3-10 as follows: 19 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10) 20 Sec. 3-10. Rate of tax. Unless otherwise provided in 21 this Section, the tax imposed by this Act is at the rate of 22 6.25% of the selling price of tangible personal property 23 transferred as an incident to the sale of service, but, for 24 the purpose of computing this tax, in no event shall the 25 selling price be less than the cost price of the property to 26 the serviceman. 27 Beginning on July 1, 2000 and through December 31, 2000, 28 and, beginning again on July 1, 2002, with respect to motor 29 fuel, as defined in Section 1.1 of the Motor Fuel Tax Law, 30 and gasohol, as defined in Section 3-40 of the Use Tax Act, 31 the tax is imposed at the rate of 1.25%. The changes made by 32 this amendatory Act of the 92nd General Assembly are exempt SB209 Engrossed -10- LRB9204110SMdvA 1 from the provisions of Section 3-75. 2 With respect to gasohol, as defined in the Use Tax Act, 3 the tax imposed by this Act applies to 70% of the selling 4 price of property transferred as an incident to the sale of 5 service on or after January 1, 1990, and before July 1, 2003, 6 and to 100% of the selling price thereafter. 7 At the election of any registered serviceman made for 8 each fiscal year, sales of service in which the aggregate 9 annual cost price of tangible personal property transferred 10 as an incident to the sales of service is less than 35%, or 11 75% in the case of servicemen transferring prescription drugs 12 or servicemen engaged in graphic arts production, of the 13 aggregate annual total gross receipts from all sales of 14 service, the tax imposed by this Act shall be based on the 15 serviceman's cost price of the tangible personal property 16 transferred as an incident to the sale of those services. 17 The tax shall be imposed at the rate of 1% on food 18 prepared for immediate consumption and transferred incident 19 to a sale of service subject to this Act or the Service 20 Occupation Tax Act by an entity licensed under the Hospital 21 Licensing Act, the Nursing Home Care Act, or the Child Care 22 Act of 1969. The tax shall also be imposed at the rate of 1% 23 on food for human consumption that is to be consumed off the 24 premises where it is sold (other than alcoholic beverages, 25 soft drinks, and food that has been prepared for immediate 26 consumption and is not otherwise included in this paragraph) 27 and prescription and nonprescription medicines, drugs, 28 medical appliances, modifications to a motor vehicle for the 29 purpose of rendering it usable by a disabled person, and 30 insulin, urine testing materials, syringes, and needles used 31 by diabetics, for human use. For the purposes of this 32 Section, the term "soft drinks" means any complete, finished, 33 ready-to-use, non-alcoholic drink, whether carbonated or not, 34 including but not limited to soda water, cola, fruit juice, SB209 Engrossed -11- LRB9204110SMdvA 1 vegetable juice, carbonated water, and all other preparations 2 commonly known as soft drinks of whatever kind or description 3 that are contained in any closed or sealed bottle, can, 4 carton, or container, regardless of size. "Soft drinks" does 5 not include coffee, tea, non-carbonated water, infant 6 formula, milk or milk products as defined in the Grade A 7 Pasteurized Milk and Milk Products Act, or drinks containing 8 50% or more natural fruit or vegetable juice. 9 Notwithstanding any other provisions of this Act, "food 10 for human consumption that is to be consumed off the premises 11 where it is sold" includes all food sold through a vending 12 machine, except soft drinks and food products that are 13 dispensed hot from a vending machine, regardless of the 14 location of the vending machine. 15 If the property that is acquired from a serviceman is 16 acquired outside Illinois and used outside Illinois before 17 being brought to Illinois for use here and is taxable under 18 this Act, the "selling price" on which the tax is computed 19 shall be reduced by an amount that represents a reasonable 20 allowance for depreciation for the period of prior 21 out-of-state use. 22 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 23 91-51, eff. 6-30-99; 91-541, eff. 8-13-99; 91-872, eff. 24 7-1-00.) 25 Section 20. The Service Occupation Tax Act is amended by 26 changing Section 3-10 as follows: 27 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10) 28 Sec. 3-10. Rate of tax. Unless otherwise provided in 29 this Section, the tax imposed by this Act is at the rate of 30 6.25% of the "selling price", as defined in Section 2 of the 31 Service Use Tax Act, of the tangible personal property. For 32 the purpose of computing this tax, in no event shall the SB209 Engrossed -12- LRB9204110SMdvA 1 "selling price" be less than the cost price to the serviceman 2 of the tangible personal property transferred. The selling 3 price of each item of tangible personal property transferred 4 as an incident of a sale of service may be shown as a 5 distinct and separate item on the serviceman's billing to the 6 service customer. If the selling price is not so shown, the 7 selling price of the tangible personal property is deemed to 8 be 50% of the serviceman's entire billing to the service 9 customer. When, however, a serviceman contracts to design, 10 develop, and produce special order machinery or equipment, 11 the tax imposed by this Act shall be based on the 12 serviceman's cost price of the tangible personal property 13 transferred incident to the completion of the contract. 14 Beginning on July 1, 2000 and through December 31, 2000, 15 and, beginning again on July 1, 2002, with respect to motor 16 fuel, as defined in Section 1.1 of the Motor Fuel Tax Law, 17 and gasohol, as defined in Section 3-40 of the Use Tax Act, 18 the tax is imposed at the rate of 1.25%. The changes made by 19 this amendatory Act of the 92nd General Assembly are exempt 20 from the provisions of Section 3-55. 21 With respect to gasohol, as defined in the Use Tax Act, 22 the tax imposed by this Act shall apply to 70% of the cost 23 price of property transferred as an incident to the sale of 24 service on or after January 1, 1990, and before July 1, 2003, 25 and to 100% of the cost price thereafter. 26 At the election of any registered serviceman made for 27 each fiscal year, sales of service in which the aggregate 28 annual cost price of tangible personal property transferred 29 as an incident to the sales of service is less than 35%, or 30 75% in the case of servicemen transferring prescription drugs 31 or servicemen engaged in graphic arts production, of the 32 aggregate annual total gross receipts from all sales of 33 service, the tax imposed by this Act shall be based on the 34 serviceman's cost price of the tangible personal property SB209 Engrossed -13- LRB9204110SMdvA 1 transferred incident to the sale of those services. 2 The tax shall be imposed at the rate of 1% on food 3 prepared for immediate consumption and transferred incident 4 to a sale of service subject to this Act or the Service 5 Occupation Tax Act by an entity licensed under the Hospital 6 Licensing Act, the Nursing Home Care Act, or the Child Care 7 Act of 1969. The tax shall also be imposed at the rate of 1% 8 on food for human consumption that is to be consumed off the 9 premises where it is sold (other than alcoholic beverages, 10 soft drinks, and food that has been prepared for immediate 11 consumption and is not otherwise included in this paragraph) 12 and prescription and nonprescription medicines, drugs, 13 medical appliances, modifications to a motor vehicle for the 14 purpose of rendering it usable by a disabled person, and 15 insulin, urine testing materials, syringes, and needles used 16 by diabetics, for human use. For the purposes of this 17 Section, the term "soft drinks" means any complete, finished, 18 ready-to-use, non-alcoholic drink, whether carbonated or not, 19 including but not limited to soda water, cola, fruit juice, 20 vegetable juice, carbonated water, and all other preparations 21 commonly known as soft drinks of whatever kind or description 22 that are contained in any closed or sealed can, carton, or 23 container, regardless of size. "Soft drinks" does not 24 include coffee, tea, non-carbonated water, infant formula, 25 milk or milk products as defined in the Grade A Pasteurized 26 Milk and Milk Products Act, or drinks containing 50% or more 27 natural fruit or vegetable juice. 28 Notwithstanding any other provisions of this Act, "food 29 for human consumption that is to be consumed off the premises 30 where it is sold" includes all food sold through a vending 31 machine, except soft drinks and food products that are 32 dispensed hot from a vending machine, regardless of the 33 location of the vending machine. 34 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; SB209 Engrossed -14- LRB9204110SMdvA 1 91-51, 6-30-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00.) 2 Section 25. The Retailers' Occupation Tax Act is amended 3 by changing Sections 2-10 and 2d as follows: 4 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10) 5 Sec. 2-10. Rate of tax. Unless otherwise provided in 6 this Section, the tax imposed by this Act is at the rate of 7 6.25% of gross receipts from sales of tangible personal 8 property made in the course of business. 9 Beginning on July 1, 2000 and through December 31, 2000, 10 and, beginning again on July 1, 2002, with respect to motor 11 fuel, as defined in Section 1.1 of the Motor Fuel Tax Law, 12 and gasohol, as defined in Section 3-40 of the Use Tax Act, 13 the tax is imposed at the rate of 1.25%. The changes made by 14 this amendatory Act of the 92nd General Assembly are exempt 15 from the provisions of Section 2-70. 16 Within 14 days after the effective date of this 17 amendatory Act of the 91st General Assembly, each retailer of 18 motor fuel and gasohol shall cause the following notice to be 19 posted in a prominently visible place on each retail 20 dispensing device that is used to dispense motor fuel or 21 gasohol in the State of Illinois: "As of July 1, 2000, the 22 State of Illinois has eliminated the State's share of sales 23 tax on motor fuel and gasohol through December 31, 2000. The 24 price on this pump should reflect the elimination of the 25 tax." The notice shall be printed in bold print on a sign 26 that is no smaller than 4 inches by 8 inches. The sign shall 27 be clearly visible to customers. Any retailer who fails to 28 post or maintain a required sign through December 31, 2000 is 29 guilty of a petty offense for which the fine shall be $500 30 per day per each retail premises where a violation occurs. 31 With respect to gasohol, as defined in the Use Tax Act, 32 the tax imposed by this Act applies to 70% of the proceeds of SB209 Engrossed -15- LRB9204110SMdvA 1 sales made on or after January 1, 1990, and before July 1, 2 2003, and to 100% of the proceeds of sales made thereafter. 3 With respect to food for human consumption that is to be 4 consumed off the premises where it is sold (other than 5 alcoholic beverages, soft drinks, and food that has been 6 prepared for immediate consumption) and prescription and 7 nonprescription medicines, drugs, medical appliances, 8 modifications to a motor vehicle for the purpose of rendering 9 it usable by a disabled person, and insulin, urine testing 10 materials, syringes, and needles used by diabetics, for human 11 use, the tax is imposed at the rate of 1%. For the purposes 12 of this Section, the term "soft drinks" means any complete, 13 finished, ready-to-use, non-alcoholic drink, whether 14 carbonated or not, including but not limited to soda water, 15 cola, fruit juice, vegetable juice, carbonated water, and all 16 other preparations commonly known as soft drinks of whatever 17 kind or description that are contained in any closed or 18 sealed bottle, can, carton, or container, regardless of size. 19 "Soft drinks" does not include coffee, tea, non-carbonated 20 water, infant formula, milk or milk products as defined in 21 the Grade A Pasteurized Milk and Milk Products Act, or drinks 22 containing 50% or more natural fruit or vegetable juice. 23 Notwithstanding any other provisions of this Act, "food 24 for human consumption that is to be consumed off the premises 25 where it is sold" includes all food sold through a vending 26 machine, except soft drinks and food products that are 27 dispensed hot from a vending machine, regardless of the 28 location of the vending machine. 29 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 30 91-51, eff. 6-30-99; 91-872, eff. 7-1-00.) 31 (35 ILCS 120/2d) (from Ch. 120, par. 441d) 32 Sec. 2d. Tax prepayment by motor fuel retailer. Any 33 person engaged in the business of selling motor fuel at SB209 Engrossed -16- LRB9204110SMdvA 1 retail, as defined in the Motor Fuel Tax Law, and who is not 2 a licensed distributor or supplier, as defined in the Motor 3 Fuel Tax Law, shall prepay to his or her distributor, 4 supplier, or other reseller of motor fuel a portion of the 5 tax imposed by this Act if the distributor, supplier, or 6 other reseller of motor fuel is registered under Section 2a 7 or Section 2c of this Act. The prepayment requirement 8 provided for in this Section does not apply to liquid propane 9 gas. 10 Beginning on July 1, 2000 and through December 31, 2000, 11 the Retailers' Occupation Tax paid to the distributor, 12 supplier, or other reseller shall be an amount equal to $0.01 13 per gallon of the motor fuel, except gasohol as defined in 14 Section 2-10 of this Act which shall be an amount equal to 15 $0.01 per gallon, purchased from the distributor, supplier, 16 or other reseller. 17 Before July 1, 2000 and then beginning on January 1, 2001 18 and through June 30, 2002thereafter, the Retailers' 19 Occupation Tax paid to the distributor, supplier, or other 20 reseller shall be an amount equal to $0.04 per gallon of the 21 motor fuel, except gasohol as defined in Section 2-10 of this 22 Act which shall be an amount equal to $0.03 per gallon, 23 purchased from the distributor, supplier, or other reseller. 24 Beginning on July 1, 2002, the Retailers' Occupation Tax 25 paid to the distributor, supplier, or other reseller shall be 26 an amount equal to $0.01 per gallon of the motor fuel 27 purchased from the distributor, supplier, or other reseller. 28 Any person engaged in the business of selling motor fuel 29 at retail shall be entitled to a credit against tax due under 30 this Act in an amount equal to the tax paid to the 31 distributor, supplier, or other reseller. 32 Every distributor, supplier, or other reseller registered 33 as provided in Section 2a or Section 2c of this Act shall 34 remit the prepaid tax on all motor fuel that is due from any SB209 Engrossed -17- LRB9204110SMdvA 1 person engaged in the business of selling at retail motor 2 fuel with the returns filed under Section 2f or Section 3 of 3 this Act, but the vendors discount provided in Section 3 4 shall not apply to the amount of prepaid tax that is 5 remitted. Any distributor or supplier who fails to properly 6 collect and remit the tax shall be liable for the tax. For 7 purposes of this Section, the prepaid tax is due on invoiced 8 gallons sold during a month by the 20th day of the following 9 month. 10 (Source: P.A. 91-872, eff. 7-1-00.) 11 Section 30. The Motor Fuel Tax Law is amended by 12 changing Section 13a as follows: 13 (35 ILCS 505/13a) (from Ch. 120, par. 429a) 14 Sec. 13a. (1) A tax is hereby imposed upon the use of 15 motor fuel upon highways of this State by commercial motor 16 vehicles. The tax shall be comprised of 2 parts. Part (a) 17 shall be at the rate established by Section 2 of this Act, as 18 heretofore or hereafter amended. Part (b) shall be at the 19 rate established by subsection (2) of this Section as now or 20 hereafter amended. 21 (2) A rate shall be established by the Department as of 22 January 1 of each year through the year 2002 using the 23 average "selling price", as defined in the Retailers' 24 Occupation Tax Act, per gallon of motor fuel sold in this 25 State during the previous 12 months and multiplying it by 6 26 1/4% to determine the cents per gallon rate. For the period 27 beginning on July 1, 2000 and through December 31, 2000, the 28 Department shall establish a rate using the average "selling 29 price", as defined in the Retailers' Occupation Tax Act, per 30 gallon of motor fuel sold in this State during calendar year 31 1999 and multiplying it by 1.25% to determine the cents per 32 gallon rate. For the period beginning on July 1, 2002 and SB209 Engrossed -18- LRB9204110SMdvA 1 through December 31, 2002, the Department shall establish a 2 rate using the average selling price per gallon of motor fuel 3 sold in this State during calendar year 2001 and multiplying 4 it by 1.25% to determine the cents per gallon rate. 5 Beginning in 2003, a rate shall be established by the 6 Department as of January 1 of each year using the average 7 selling price per gallon of motor fuel sold in this State 8 during the previous 12 months and multiplying it by 1.25% to 9 determine the cents per gallon rate. 10 (Source: P.A. 91-872, eff. 7-1-00.) 11 Section 99. Effective date. This Act takes effect upon 12 becoming law.