Illinois 2023-2024 Regular Session

Illinois House Bill HB2565 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2565 Introduced , by Rep. Katie Stuart 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 Retailers' Occupation Tax Act. Provides that internal (also known as female) and male condoms, incontinence products, diapers, and baby wipes shall be taxed by the State at a rate of 1% (currently, 6.25%). Provides that the net revenue from the 1% tax collected from the sale of those products shall be deposited into the State and Local Sales Tax Reform Fund. Amends the Use Tax, Service Occupation Tax, and Service Occupation Use Tax Acts to make conforming changes. LRB103 28109 HLH 54488 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2565 Introduced , by Rep. Katie Stuart 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 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 Retailers' Occupation Tax Act. Provides that internal (also known as female) and male condoms, incontinence products, diapers, and baby wipes shall be taxed by the State at a rate of 1% (currently, 6.25%). Provides that the net revenue from the 1% tax collected from the sale of those products shall be deposited into the State and Local Sales Tax Reform Fund. Amends the Use Tax, Service Occupation Tax, and Service Occupation Use Tax Acts to make conforming changes. LRB103 28109 HLH 54488 b LRB103 28109 HLH 54488 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2565 Introduced , by Rep. Katie Stuart SYNOPSIS AS INTRODUCED:
3	3	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 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
4	4	35 ILCS 105/3-10
5	5	35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
6	6	35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
7	7	35 ILCS 120/2-10
8	8	Amends the Retailers' Occupation Tax Act. Provides that internal (also known as female) and male condoms, incontinence products, diapers, and baby wipes shall be taxed by the State at a rate of 1% (currently, 6.25%). Provides that the net revenue from the 1% tax collected from the sale of those products shall be deposited into the State and Local Sales Tax Reform Fund. Amends the Use Tax, Service Occupation Tax, and Service Occupation Use Tax Acts to make conforming changes.
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11	11	A BILL FOR
12	12	HB2565LRB103 28109 HLH 54488 b HB2565 LRB103 28109 HLH 54488 b
13	13	HB2565 LRB103 28109 HLH 54488 b
14	14	1 AN ACT concerning revenue.
15	15	2 Be it enacted by the People of the State of Illinois,
16	16	3 represented in the General Assembly:
17	17	4 Section 5. The Use Tax Act is amended by changing Section
18	18	5 3-10 as follows:
19	19	6 (35 ILCS 105/3-10)
20	20	7 Sec. 3-10. Rate of tax. Unless otherwise provided in this
21	21	8 Section, the tax imposed by this Act is at the rate of 6.25% of
22	22	9 either the selling price or the fair market value, if any, of
23	23	10 the tangible personal property. In all cases where property
24	24	11 functionally used or consumed is the same as the property that
25	25	12 was purchased at retail, then the tax is imposed on the selling
26	26	13 price of the property. In all cases where property
27	27	14 functionally used or consumed is a by-product or waste product
28	28	15 that has been refined, manufactured, or produced from property
29	29	16 purchased at retail, then the tax is imposed on the lower of
30	30	17 the fair market value, if any, of the specific property so used
31	31	18 in this State or on the selling price of the property purchased
32	32	19 at retail. For purposes of this Section "fair market value"
33	33	20 means the price at which property would change hands between a
34	34	21 willing buyer and a willing seller, neither being under any
35	35	22 compulsion to buy or sell and both having reasonable knowledge
36	36	23 of the relevant facts. The fair market value shall be
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40	40	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2565 Introduced , by Rep. Katie Stuart SYNOPSIS AS INTRODUCED:
41	41	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 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
42	42	35 ILCS 105/3-10
43	43	35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
44	44	35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
45	45	35 ILCS 120/2-10
46	46	Amends the Retailers' Occupation Tax Act. Provides that internal (also known as female) and male condoms, incontinence products, diapers, and baby wipes shall be taxed by the State at a rate of 1% (currently, 6.25%). Provides that the net revenue from the 1% tax collected from the sale of those products shall be deposited into the State and Local Sales Tax Reform Fund. Amends the Use Tax, Service Occupation Tax, and Service Occupation Use Tax Acts to make conforming changes.
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48	48	LRB103 28109 HLH 54488 b
49	49	A BILL FOR
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56	56	35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
57	57	35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
58	58	35 ILCS 120/2-10
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77	77	1 established by Illinois sales by the taxpayer of the same
78	78	2 property as that functionally used or consumed, or if there
79	79	3 are no such sales by the taxpayer, then comparable sales or
80	80	4 purchases of property of like kind and character in Illinois.
81	81	5 Beginning on July 1, 2000 and through December 31, 2000,
82	82	6 with respect to motor fuel, as defined in Section 1.1 of the
83	83	7 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
84	84	8 the Use Tax Act, the tax is imposed at the rate of 1.25%.
85	85	9 Beginning on August 6, 2010 through August 15, 2010, and
86	86	10 beginning again on August 5, 2022 through August 14, 2022,
87	87	11 with respect to sales tax holiday items as defined in Section
88	88	12 3-6 of this Act, the tax is imposed at the rate of 1.25%.
89	89	13 With respect to gasohol, the tax imposed by this Act
90	90	14 applies to (i) 70% of the proceeds of sales made on or after
91	91	15 January 1, 1990, and before July 1, 2003, (ii) 80% of the
92	92	16 proceeds of sales made on or after July 1, 2003 and on or
93	93	17 before July 1, 2017, and (iii) 100% of the proceeds of sales
94	94	18 made thereafter. If, at any time, however, the tax under this
95	95	19 Act on sales of gasohol is imposed at the rate of 1.25%, then
96	96	20 the tax imposed by this Act applies to 100% of the proceeds of
97	97	21 sales of gasohol made during that time.
98	98	22 With respect to majority blended ethanol fuel, the tax
99	99	23 imposed by this Act does not apply to the proceeds of sales
100	100	24 made on or after July 1, 2003 and on or before December 31,
101	101	25 2023 but applies to 100% of the proceeds of sales made
102	102	26 thereafter.
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113	113	1 With respect to biodiesel blends with no less than 1% and
114	114	2 no more than 10% biodiesel, the tax imposed by this Act applies
115	115	3 to (i) 80% of the proceeds of sales made on or after July 1,
116	116	4 2003 and on or before December 31, 2018 and (ii) 100% of the
117	117	5 proceeds of sales made after December 31, 2018 and before
118	118	6 January 1, 2024. On and after January 1, 2024 and on or before
119	119	7 December 31, 2030, the taxation of biodiesel, renewable
120	120	8 diesel, and biodiesel blends shall be as provided in Section
121	121	9 3-5.1. If, at any time, however, the tax under this Act on
122	122	10 sales of biodiesel blends with no less than 1% and no more than
123	123	11 10% biodiesel is imposed at the rate of 1.25%, then the tax
124	124	12 imposed by this Act applies to 100% of the proceeds of sales of
125	125	13 biodiesel blends with no less than 1% and no more than 10%
126	126	14 biodiesel made during that time.
127	127	15 With respect to biodiesel and biodiesel blends with more
128	128	16 than 10% but no more than 99% biodiesel, the tax imposed by
129	129	17 this Act does not apply to the proceeds of sales made on or
130	130	18 after July 1, 2003 and on or before December 31, 2023. On and
131	131	19 after January 1, 2024 and on or before December 31, 2030, the
132	132	20 taxation of biodiesel, renewable diesel, and biodiesel blends
133	133	21 shall be as provided in Section 3-5.1.
134	134	22 Until July 1, 2022 and beginning again on July 1, 2023,
135	135	23 with respect to food for human consumption that is to be
136	136	24 consumed off the premises where it is sold (other than
137	137	25 alcoholic beverages, food consisting of or infused with adult
138	138	26 use cannabis, soft drinks, and food that has been prepared for
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149	149	1 immediate consumption), the tax is imposed at the rate of 1%.
150	150	2 Beginning on July 1, 2022 and until July 1, 2023, with respect
151	151	3 to food for human consumption that is to be consumed off the
152	152	4 premises where it is sold (other than alcoholic beverages,
153	153	5 food consisting of or infused with adult use cannabis, soft
154	154	6 drinks, and food that has been prepared for immediate
155	155	7 consumption), the tax is imposed at the rate of 0%.
156	156	8 With respect to prescription and nonprescription
157	157	9 medicines, drugs, medical appliances, internal (also known as
158	158	10 female) and male condoms, incontinence products, diapers, baby
159	159	11 wipes, products classified as Class III medical devices by the
160	160	12 United States Food and Drug Administration that are used for
161	161	13 cancer treatment pursuant to a prescription, as well as any
162	162	14 accessories and components related to those devices,
163	163	15 modifications to a motor vehicle for the purpose of rendering
164	164	16 it usable by a person with a disability, and insulin, blood
165	165	17 sugar testing materials, syringes, and needles used by human
166	166	18 diabetics, the tax is imposed at the rate of 1%. For the
167	167	19 purposes of this Section, until September 1, 2009: the term
168	168	20 "soft drinks" means any complete, finished, ready-to-use,
169	169	21 non-alcoholic drink, whether carbonated or not, including, but
170	170	22 not limited to, soda water, cola, fruit juice, vegetable
171	171	23 juice, carbonated water, and all other preparations commonly
172	172	24 known as soft drinks of whatever kind or description that are
173	173	25 contained in any closed or sealed bottle, can, carton, or
174	174	26 container, regardless of size; but "soft drinks" does not
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185	185	1 include coffee, tea, non-carbonated water, infant formula,
186	186	2 milk or milk products as defined in the Grade A Pasteurized
187	187	3 Milk and Milk Products Act, or drinks containing 50% or more
188	188	4 natural fruit or vegetable juice.
189	189	5 Notwithstanding any other provisions of this Act,
190	190	6 beginning September 1, 2009, "soft drinks" means non-alcoholic
191	191	7 beverages that contain natural or artificial sweeteners. "Soft
192	192	8 drinks" does do not include beverages that contain milk or
193	193	9 milk products, soy, rice or similar milk substitutes, or
194	194	10 greater than 50% of vegetable or fruit juice by volume.
195	195	11 Until August 1, 2009, and notwithstanding any other
196	196	12 provisions of this Act, "food for human consumption that is to
197	197	13 be consumed off the premises where it is sold" includes all
198	198	14 food sold through a vending machine, except soft drinks and
199	199	15 food products that are dispensed hot from a vending machine,
200	200	16 regardless of the location of the vending machine. Beginning
201	201	17 August 1, 2009, and notwithstanding any other provisions of
202	202	18 this Act, "food for human consumption that is to be consumed
203	203	19 off the premises where it is sold" includes all food sold
204	204	20 through a vending machine, except soft drinks, candy, and food
205	205	21 products that are dispensed hot from a vending machine,
206	206	22 regardless of the location of the vending machine.
207	207	23 Notwithstanding any other provisions of this Act,
208	208	24 beginning September 1, 2009, "food for human consumption that
209	209	25 is to be consumed off the premises where it is sold" does not
210	210	26 include candy. For purposes of this Section, "candy" means a
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221	221	1 preparation of sugar, honey, or other natural or artificial
222	222	2 sweeteners in combination with chocolate, fruits, nuts or
223	223	3 other ingredients or flavorings in the form of bars, drops, or
224	224	4 pieces. "Candy" does not include any preparation that contains
225	225	5 flour or requires refrigeration.
226	226	6 Notwithstanding any other provisions of this Act,
227	227	7 beginning September 1, 2009, "nonprescription medicines and
228	228	8 drugs" does not include grooming and hygiene products. For
229	229	9 purposes of this Section, "grooming and hygiene products"
230	230	10 includes, but is not limited to, soaps and cleaning solutions,
231	231	11 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
232	232	12 lotions and screens, unless those products are available by
233	233	13 prescription only, regardless of whether the products meet the
234	234	14 definition of "over-the-counter-drugs". For the purposes of
235	235	15 this paragraph, "over-the-counter-drug" means a drug for human
236	236	16 use that contains a label that identifies the product as a drug
237	237	17 as required by 21 CFR C.F.R. 201.66. The
238	238	18 "over-the-counter-drug" label includes:
239	239	19 (A) a A "Drug Facts" panel; or
240	240	20 (B) a A statement of the "active ingredient(s)" with a
241	241	21 list of those ingredients contained in the compound,
242	242	22 substance or preparation.
243	243	23 Beginning on January 1, 2014 (the effective date of Public
244	244	24 Act 98-122) this amendatory Act of the 98th General Assembly,
245	245	25 "prescription and nonprescription medicines and drugs"
246	246	26 includes medical cannabis purchased from a registered
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257	257	1 dispensing organization under the Compassionate Use of Medical
258	258	2 Cannabis Program Act.
259	259	3 As used in this Section, "adult use cannabis" means
260	260	4 cannabis subject to tax under the Cannabis Cultivation
261	261	5 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
262	262	6 and does not include cannabis subject to tax under the
263	263	7 Compassionate Use of Medical Cannabis Program Act.
264	264	8 If the property that is purchased at retail from a
265	265	9 retailer is acquired outside Illinois and used outside
266	266	10 Illinois before being brought to Illinois for use here and is
267	267	11 taxable under this Act, the "selling price" on which the tax is
268	268	12 computed shall be reduced by an amount that represents a
269	269	13 reasonable allowance for depreciation for the period of prior
270	270	14 out-of-state use.
271	271	15 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
272	272	16 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.
273	273	17 4-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;
274	274	18 102-700, Article 65, Section 65-5, eff. 4-19-22; revised
275	275	19 5-27-22.)
276	276	20 Section 10. The Service Use Tax Act is amended by changing
277	277	21 Section 3-10 as follows:
278	278	22 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
279	279	23 Sec. 3-10. Rate of tax. Unless otherwise provided in this
280	280	24 Section, the tax imposed by this Act is at the rate of 6.25% of
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291	291	1 the selling price of tangible personal property transferred as
292	292	2 an incident to the sale of service, but, for the purpose of
293	293	3 computing this tax, in no event shall the selling price be less
294	294	4 than the cost price of the property to the serviceman.
295	295	5 Beginning on July 1, 2000 and through December 31, 2000,
296	296	6 with respect to motor fuel, as defined in Section 1.1 of the
297	297	7 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
298	298	8 the Use Tax Act, the tax is imposed at the rate of 1.25%.
299	299	9 With respect to gasohol, as defined in the Use Tax Act, the
300	300	10 tax imposed by this Act applies to (i) 70% of the selling price
301	301	11 of property transferred as an incident to the sale of service
302	302	12 on or after January 1, 1990, and before July 1, 2003, (ii) 80%
303	303	13 of the selling price of property transferred as an incident to
304	304	14 the sale of service on or after July 1, 2003 and on or before
305	305	15 July 1, 2017, and (iii) 100% of the selling price thereafter.
306	306	16 If, at any time, however, the tax under this Act on sales of
307	307	17 gasohol, as defined in the Use Tax Act, is imposed at the rate
308	308	18 of 1.25%, then the tax imposed by this Act applies to 100% of
309	309	19 the proceeds of sales of gasohol made during that time.
310	310	20 With respect to majority blended ethanol fuel, as defined
311	311	21 in the Use Tax Act, the tax imposed by this Act does not apply
312	312	22 to the selling price of property transferred as an incident to
313	313	23 the sale of service on or after July 1, 2003 and on or before
314	314	24 December 31, 2023 but applies to 100% of the selling price
315	315	25 thereafter.
316	316	26 With respect to biodiesel blends, as defined in the Use
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327	327	1 Tax Act, with no less than 1% and no more than 10% biodiesel,
328	328	2 the tax imposed by this Act applies to (i) 80% of the selling
329	329	3 price of property transferred as an incident to the sale of
330	330	4 service on or after July 1, 2003 and on or before December 31,
331	331	5 2018 and (ii) 100% of the proceeds of the selling price after
332	332	6 December 31, 2018 and before January 1, 2024. On and after
333	333	7 January 1, 2024 and on or before December 31, 2030, the
334	334	8 taxation of biodiesel, renewable diesel, and biodiesel blends
335	335	9 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
336	336	10 at any time, however, the tax under this Act on sales of
337	337	11 biodiesel blends, as defined in the Use Tax Act, with no less
338	338	12 than 1% and no more than 10% biodiesel is imposed at the rate
339	339	13 of 1.25%, then the tax imposed by this Act applies to 100% of
340	340	14 the proceeds of sales of biodiesel blends with no less than 1%
341	341	15 and no more than 10% biodiesel made during that time.
342	342	16 With respect to biodiesel, as defined in the Use Tax Act,
343	343	17 and biodiesel blends, as defined in the Use Tax Act, with more
344	344	18 than 10% but no more than 99% biodiesel, the tax imposed by
345	345	19 this Act does not apply to the proceeds of the selling price of
346	346	20 property transferred as an incident to the sale of service on
347	347	21 or after July 1, 2003 and on or before December 31, 2023. On
348	348	22 and after January 1, 2024 and on or before December 31, 2030,
349	349	23 the taxation of biodiesel, renewable diesel, and biodiesel
350	350	24 blends shall be as provided in Section 3-5.1 of the Use Tax
351	351	25 Act.
352	352	26 At the election of any registered serviceman made for each
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363	363	1 fiscal year, sales of service in which the aggregate annual
364	364	2 cost price of tangible personal property transferred as an
365	365	3 incident to the sales of service is less than 35%, or 75% in
366	366	4 the case of servicemen transferring prescription drugs or
367	367	5 servicemen engaged in graphic arts production, of the
368	368	6 aggregate annual total gross receipts from all sales of
369	369	7 service, the tax imposed by this Act shall be based on the
370	370	8 serviceman's cost price of the tangible personal property
371	371	9 transferred as an incident to the sale of those services.
372	372	10 Until July 1, 2022 and beginning again on July 1, 2023, the
373	373	11 tax shall be imposed at the rate of 1% on food prepared for
374	374	12 immediate consumption and transferred incident to a sale of
375	375	13 service subject to this Act or the Service Occupation Tax Act
376	376	14 by an entity licensed under the Hospital Licensing Act, the
377	377	15 Nursing Home Care Act, the Assisted Living and Shared Housing
378	378	16 Act, the ID/DD Community Care Act, the MC/DD Act, the
379	379	17 Specialized Mental Health Rehabilitation Act of 2013, or the
380	380	18 Child Care Act of 1969, or an entity that holds a permit issued
381	381	19 pursuant to the Life Care Facilities Act. Until July 1, 2022
382	382	20 and beginning again on July 1, 2023, the tax shall also be
383	383	21 imposed at the rate of 1% on food for human consumption that is
384	384	22 to be consumed off the premises where it is sold (other than
385	385	23 alcoholic beverages, food consisting of or infused with adult
386	386	24 use cannabis, soft drinks, and food that has been prepared for
387	387	25 immediate consumption and is not otherwise included in this
388	388	26 paragraph).
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399	399	1 Beginning on July 1, 2022 and until July 1, 2023, the tax
400	400	2 shall be imposed at the rate of 0% on food prepared for
401	401	3 immediate consumption and transferred incident to a sale of
402	402	4 service subject to this Act or the Service Occupation Tax Act
403	403	5 by an entity licensed under the Hospital Licensing Act, the
404	404	6 Nursing Home Care Act, the Assisted Living and Shared Housing
405	405	7 Act, the ID/DD Community Care Act, the MC/DD Act, the
406	406	8 Specialized Mental Health Rehabilitation Act of 2013, or the
407	407	9 Child Care Act of 1969, or an entity that holds a permit issued
408	408	10 pursuant to the Life Care Facilities Act. Beginning on July 1,
409	409	11 2022 and until July 1, 2023, the tax shall also be imposed at
410	410	12 the rate of 0% on food for human consumption that is to be
411	411	13 consumed off the premises where it is sold (other than
412	412	14 alcoholic beverages, food consisting of or infused with adult
413	413	15 use cannabis, soft drinks, and food that has been prepared for
414	414	16 immediate consumption and is not otherwise included in this
415	415	17 paragraph).
416	416	18 The tax shall also be imposed at the rate of 1% on
417	417	19 prescription and nonprescription medicines, drugs, medical
418	418	20 appliances, internal (also known as female) and male condoms,
419	419	21 incontinence products, diapers, baby wipes, products
420	420	22 classified as Class III medical devices by the United States
421	421	23 Food and Drug Administration that are used for cancer
422	422	24 treatment pursuant to a prescription, as well as any
423	423	25 accessories and components related to those devices,
424	424	26 modifications to a motor vehicle for the purpose of rendering
425	425
426	426
427	427
428	428
429	429
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431	431
432	432
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434	434	HB2565 - 12 - LRB103 28109 HLH 54488 b
435	435	1 it usable by a person with a disability, and insulin, blood
436	436	2 sugar testing materials, syringes, and needles used by human
437	437	3 diabetics. For the purposes of this Section, until September
438	438	4 1, 2009: the term "soft drinks" means any complete, finished,
439	439	5 ready-to-use, non-alcoholic drink, whether carbonated or not,
440	440	6 including, but not limited to, soda water, cola, fruit juice,
441	441	7 vegetable juice, carbonated water, and all other preparations
442	442	8 commonly known as soft drinks of whatever kind or description
443	443	9 that are contained in any closed or sealed bottle, can,
444	444	10 carton, or container, regardless of size; but "soft drinks"
445	445	11 does not include coffee, tea, non-carbonated water, infant
446	446	12 formula, milk or milk products as defined in the Grade A
447	447	13 Pasteurized Milk and Milk Products Act, or drinks containing
448	448	14 50% or more natural fruit or vegetable juice.
449	449	15 Notwithstanding any other provisions of this Act,
450	450	16 beginning September 1, 2009, "soft drinks" means non-alcoholic
451	451	17 beverages that contain natural or artificial sweeteners. "Soft
452	452	18 drinks" does do not include beverages that contain milk or
453	453	19 milk products, soy, rice or similar milk substitutes, or
454	454	20 greater than 50% of vegetable or fruit juice by volume.
455	455	21 Until August 1, 2009, and notwithstanding any other
456	456	22 provisions of this Act, "food for human consumption that is to
457	457	23 be consumed off the premises where it is sold" includes all
458	458	24 food sold through a vending machine, except soft drinks and
459	459	25 food products that are dispensed hot from a vending machine,
460	460	26 regardless of the location of the vending machine. Beginning
461	461
462	462
463	463
464	464
465	465
466	466	HB2565 - 12 - LRB103 28109 HLH 54488 b
467	467
468	468
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470	470	HB2565 - 13 - LRB103 28109 HLH 54488 b
471	471	1 August 1, 2009, and notwithstanding any other provisions of
472	472	2 this Act, "food for human consumption that is to be consumed
473	473	3 off the premises where it is sold" includes all food sold
474	474	4 through a vending machine, except soft drinks, candy, and food
475	475	5 products that are dispensed hot from a vending machine,
476	476	6 regardless of the location of the vending machine.
477	477	7 Notwithstanding any other provisions of this Act,
478	478	8 beginning September 1, 2009, "food for human consumption that
479	479	9 is to be consumed off the premises where it is sold" does not
480	480	10 include candy. For purposes of this Section, "candy" means a
481	481	11 preparation of sugar, honey, or other natural or artificial
482	482	12 sweeteners in combination with chocolate, fruits, nuts or
483	483	13 other ingredients or flavorings in the form of bars, drops, or
484	484	14 pieces. "Candy" does not include any preparation that contains
485	485	15 flour or requires refrigeration.
486	486	16 Notwithstanding any other provisions of this Act,
487	487	17 beginning September 1, 2009, "nonprescription medicines and
488	488	18 drugs" does not include grooming and hygiene products. For
489	489	19 purposes of this Section, "grooming and hygiene products"
490	490	20 includes, but is not limited to, soaps and cleaning solutions,
491	491	21 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
492	492	22 lotions and screens, unless those products are available by
493	493	23 prescription only, regardless of whether the products meet the
494	494	24 definition of "over-the-counter-drugs". For the purposes of
495	495	25 this paragraph, "over-the-counter-drug" means a drug for human
496	496	26 use that contains a label that identifies the product as a drug
497	497
498	498
499	499
500	500
501	501
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503	503
504	504
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506	506	HB2565 - 14 - LRB103 28109 HLH 54488 b
507	507	1 as required by 21 CFR C.F.R. 201.66. The
508	508	2 "over-the-counter-drug" label includes:
509	509	3 (A) a A "Drug Facts" panel; or
510	510	4 (B) a A statement of the "active ingredient(s)" with a
511	511	5 list of those ingredients contained in the compound,
512	512	6 substance or preparation.
513	513	7 Beginning on January 1, 2014 (the effective date of Public
514	514	8 Act 98-122), "prescription and nonprescription medicines and
515	515	9 drugs" includes medical cannabis purchased from a registered
516	516	10 dispensing organization under the Compassionate Use of Medical
517	517	11 Cannabis Program Act.
518	518	12 As used in this Section, "adult use cannabis" means
519	519	13 cannabis subject to tax under the Cannabis Cultivation
520	520	14 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
521	521	15 and does not include cannabis subject to tax under the
522	522	16 Compassionate Use of Medical Cannabis Program Act.
523	523	17 If the property that is acquired from a serviceman is
524	524	18 acquired outside Illinois and used outside Illinois before
525	525	19 being brought to Illinois for use here and is taxable under
526	526	20 this Act, the "selling price" on which the tax is computed
527	527	21 shall be reduced by an amount that represents a reasonable
528	528	22 allowance for depreciation for the period of prior
529	529	23 out-of-state use.
530	530	24 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
531	531	25 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
532	532	26 20, Section 20-10, eff. 4-19-22; 102-700, Article 60, Section
533	533
534	534
535	535
536	536
537	537
538	538	HB2565 - 14 - LRB103 28109 HLH 54488 b
539	539
540	540
541	541	HB2565- 15 -LRB103 28109 HLH 54488 b HB2565 - 15 - LRB103 28109 HLH 54488 b
542	542	HB2565 - 15 - LRB103 28109 HLH 54488 b
543	543	1 60-20, eff. 4-19-22; revised 6-1-22.)
544	544	2 Section 15. The Service Occupation Tax Act is amended by
545	545	3 changing Section 3-10 as follows:
546	546	4 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
547	547	5 Sec. 3-10. Rate of tax. Unless otherwise provided in this
548	548	6 Section, the tax imposed by this Act is at the rate of 6.25% of
549	549	7 the "selling price", as defined in Section 2 of the Service Use
550	550	8 Tax Act, of the tangible personal property. For the purpose of
551	551	9 computing this tax, in no event shall the "selling price" be
552	552	10 less than the cost price to the serviceman of the tangible
553	553	11 personal property transferred. The selling price of each item
554	554	12 of tangible personal property transferred as an incident of a
555	555	13 sale of service may be shown as a distinct and separate item on
556	556	14 the serviceman's billing to the service customer. If the
557	557	15 selling price is not so shown, the selling price of the
558	558	16 tangible personal property is deemed to be 50% of the
559	559	17 serviceman's entire billing to the service customer. When,
560	560	18 however, a serviceman contracts to design, develop, and
561	561	19 produce special order machinery or equipment, the tax imposed
562	562	20 by this Act shall be based on the serviceman's cost price of
563	563	21 the tangible personal property transferred incident to the
564	564	22 completion of the contract.
565	565	23 Beginning on July 1, 2000 and through December 31, 2000,
566	566	24 with respect to motor fuel, as defined in Section 1.1 of the
567	567
568	568
569	569
570	570
571	571
572	572	HB2565 - 15 - LRB103 28109 HLH 54488 b
573	573
574	574
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576	576	HB2565 - 16 - LRB103 28109 HLH 54488 b
577	577	1 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
578	578	2 the Use Tax Act, the tax is imposed at the rate of 1.25%.
579	579	3 With respect to gasohol, as defined in the Use Tax Act, the
580	580	4 tax imposed by this Act shall apply to (i) 70% of the cost
581	581	5 price of property transferred as an incident to the sale of
582	582	6 service on or after January 1, 1990, and before July 1, 2003,
583	583	7 (ii) 80% of the selling price of property transferred as an
584	584	8 incident to the sale of service on or after July 1, 2003 and on
585	585	9 or before July 1, 2017, and (iii) 100% of the cost price
586	586	10 thereafter. If, at any time, however, the tax under this Act on
587	587	11 sales of gasohol, as defined in the Use Tax Act, is imposed at
588	588	12 the rate of 1.25%, then the tax imposed by this Act applies to
589	589	13 100% of the proceeds of sales of gasohol made during that time.
590	590	14 With respect to majority blended ethanol fuel, as defined
591	591	15 in the Use Tax Act, the tax imposed by this Act does not apply
592	592	16 to the selling price of property transferred as an incident to
593	593	17 the sale of service on or after July 1, 2003 and on or before
594	594	18 December 31, 2023 but applies to 100% of the selling price
595	595	19 thereafter.
596	596	20 With respect to biodiesel blends, as defined in the Use
597	597	21 Tax Act, with no less than 1% and no more than 10% biodiesel,
598	598	22 the tax imposed by this Act applies to (i) 80% of the selling
599	599	23 price of property transferred as an incident to the sale of
600	600	24 service on or after July 1, 2003 and on or before December 31,
601	601	25 2018 and (ii) 100% of the proceeds of the selling price after
602	602	26 December 31, 2018 and before January 1, 2024. On and after
603	603
604	604
605	605
606	606
607	607
608	608	HB2565 - 16 - LRB103 28109 HLH 54488 b
609	609
610	610
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612	612	HB2565 - 17 - LRB103 28109 HLH 54488 b
613	613	1 January 1, 2024 and on or before December 31, 2030, the
614	614	2 taxation of biodiesel, renewable diesel, and biodiesel blends
615	615	3 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
616	616	4 at any time, however, the tax under this Act on sales of
617	617	5 biodiesel blends, as defined in the Use Tax Act, with no less
618	618	6 than 1% and no more than 10% biodiesel is imposed at the rate
619	619	7 of 1.25%, then the tax imposed by this Act applies to 100% of
620	620	8 the proceeds of sales of biodiesel blends with no less than 1%
621	621	9 and no more than 10% biodiesel made during that time.
622	622	10 With respect to biodiesel, as defined in the Use Tax Act,
623	623	11 and biodiesel blends, as defined in the Use Tax Act, with more
624	624	12 than 10% but no more than 99% biodiesel material, the tax
625	625	13 imposed by this Act does not apply to the proceeds of the
626	626	14 selling price of property transferred as an incident to the
627	627	15 sale of service on or after July 1, 2003 and on or before
628	628	16 December 31, 2023. On and after January 1, 2024 and on or
629	629	17 before December 31, 2030, the taxation of biodiesel, renewable
630	630	18 diesel, and biodiesel blends shall be as provided in Section
631	631	19 3-5.1 of the Use Tax Act.
632	632	20 At the election of any registered serviceman made for each
633	633	21 fiscal year, sales of service in which the aggregate annual
634	634	22 cost price of tangible personal property transferred as an
635	635	23 incident to the sales of service is less than 35%, or 75% in
636	636	24 the case of servicemen transferring prescription drugs or
637	637	25 servicemen engaged in graphic arts production, of the
638	638	26 aggregate annual total gross receipts from all sales of
639	639
640	640
641	641
642	642
643	643
644	644	HB2565 - 17 - LRB103 28109 HLH 54488 b
645	645
646	646
647	647	HB2565- 18 -LRB103 28109 HLH 54488 b HB2565 - 18 - LRB103 28109 HLH 54488 b
648	648	HB2565 - 18 - LRB103 28109 HLH 54488 b
649	649	1 service, the tax imposed by this Act shall be based on the
650	650	2 serviceman's cost price of the tangible personal property
651	651	3 transferred incident to the sale of those services.
652	652	4 Until July 1, 2022 and beginning again on July 1, 2023, the
653	653	5 tax shall be imposed at the rate of 1% on food prepared for
654	654	6 immediate consumption and transferred incident to a sale of
655	655	7 service subject to this Act or the Service Use Tax Act by an
656	656	8 entity licensed under the Hospital Licensing Act, the Nursing
657	657	9 Home Care Act, the Assisted Living and Shared Housing Act, the
658	658	10 ID/DD Community Care Act, the MC/DD Act, the Specialized
659	659	11 Mental Health Rehabilitation Act of 2013, or the Child Care
660	660	12 Act of 1969, or an entity that holds a permit issued pursuant
661	661	13 to the Life Care Facilities Act. Until July 1, 2022 and
662	662	14 beginning again on July 1, 2023, the tax shall also be imposed
663	663	15 at the rate of 1% on food for human consumption that is to be
664	664	16 consumed off the premises where it is sold (other than
665	665	17 alcoholic beverages, food consisting of or infused with adult
666	666	18 use cannabis, soft drinks, and food that has been prepared for
667	667	19 immediate consumption and is not otherwise included in this
668	668	20 paragraph).
669	669	21 Beginning on July 1, 2022 and until July 1, 2023, the tax
670	670	22 shall be imposed at the rate of 0% on food prepared for
671	671	23 immediate consumption and transferred incident to a sale of
672	672	24 service subject to this Act or the Service Use Tax Act by an
673	673	25 entity licensed under the Hospital Licensing Act, the Nursing
674	674	26 Home Care Act, the Assisted Living and Shared Housing Act, the
675	675
676	676
677	677
678	678
679	679
680	680	HB2565 - 18 - LRB103 28109 HLH 54488 b
681	681
682	682
683	683	HB2565- 19 -LRB103 28109 HLH 54488 b HB2565 - 19 - LRB103 28109 HLH 54488 b
684	684	HB2565 - 19 - LRB103 28109 HLH 54488 b
685	685	1 ID/DD Community Care Act, the MC/DD Act, the Specialized
686	686	2 Mental Health Rehabilitation Act of 2013, or the Child Care
687	687	3 Act of 1969, or an entity that holds a permit issued pursuant
688	688	4 to the Life Care Facilities Act. Beginning July 1, 2022 and
689	689	5 until July 1, 2023, the tax shall also be imposed at the rate
690	690	6 of 0% on food for human consumption that is to be consumed off
691	691	7 the premises where it is sold (other than alcoholic beverages,
692	692	8 food consisting of or infused with adult use cannabis, soft
693	693	9 drinks, and food that has been prepared for immediate
694	694	10 consumption and is not otherwise included in this paragraph).
695	695	11 The tax shall also be imposed at the rate of 1% on
696	696	12 prescription and nonprescription medicines, drugs, medical
697	697	13 appliances, internal (also known as female) and male condoms,
698	698	14 incontinence products, diapers, baby wipes, products
699	699	15 classified as Class III medical devices by the United States
700	700	16 Food and Drug Administration that are used for cancer
701	701	17 treatment pursuant to a prescription, as well as any
702	702	18 accessories and components related to those devices,
703	703	19 modifications to a motor vehicle for the purpose of rendering
704	704	20 it usable by a person with a disability, and insulin, blood
705	705	21 sugar testing materials, syringes, and needles used by human
706	706	22 diabetics. For the purposes of this Section, until September
707	707	23 1, 2009: the term "soft drinks" means any complete, finished,
708	708	24 ready-to-use, non-alcoholic drink, whether carbonated or not,
709	709	25 including, but not limited to, soda water, cola, fruit juice,
710	710	26 vegetable juice, carbonated water, and all other preparations
711	711
712	712
713	713
714	714
715	715
716	716	HB2565 - 19 - LRB103 28109 HLH 54488 b
717	717
718	718
719	719	HB2565- 20 -LRB103 28109 HLH 54488 b HB2565 - 20 - LRB103 28109 HLH 54488 b
720	720	HB2565 - 20 - LRB103 28109 HLH 54488 b
721	721	1 commonly known as soft drinks of whatever kind or description
722	722	2 that are contained in any closed or sealed can, carton, or
723	723	3 container, regardless of size; but "soft drinks" does not
724	724	4 include coffee, tea, non-carbonated water, infant formula,
725	725	5 milk or milk products as defined in the Grade A Pasteurized
726	726	6 Milk and Milk Products Act, or drinks containing 50% or more
727	727	7 natural fruit or vegetable juice.
728	728	8 Notwithstanding any other provisions of this Act,
729	729	9 beginning September 1, 2009, "soft drinks" means non-alcoholic
730	730	10 beverages that contain natural or artificial sweeteners. "Soft
731	731	11 drinks" does do not include beverages that contain milk or
732	732	12 milk products, soy, rice or similar milk substitutes, or
733	733	13 greater than 50% of vegetable or fruit juice by volume.
734	734	14 Until August 1, 2009, and notwithstanding any other
735	735	15 provisions of this Act, "food for human consumption that is to
736	736	16 be consumed off the premises where it is sold" includes all
737	737	17 food sold through a vending machine, except soft drinks and
738	738	18 food products that are dispensed hot from a vending machine,
739	739	19 regardless of the location of the vending machine. Beginning
740	740	20 August 1, 2009, and notwithstanding any other provisions of
741	741	21 this Act, "food for human consumption that is to be consumed
742	742	22 off the premises where it is sold" includes all food sold
743	743	23 through a vending machine, except soft drinks, candy, and food
744	744	24 products that are dispensed hot from a vending machine,
745	745	25 regardless of the location of the vending machine.
746	746	26 Notwithstanding any other provisions of this Act,
747	747
748	748
749	749
750	750
751	751
752	752	HB2565 - 20 - LRB103 28109 HLH 54488 b
753	753
754	754
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756	756	HB2565 - 21 - LRB103 28109 HLH 54488 b
757	757	1 beginning September 1, 2009, "food for human consumption that
758	758	2 is to be consumed off the premises where it is sold" does not
759	759	3 include candy. For purposes of this Section, "candy" means a
760	760	4 preparation of sugar, honey, or other natural or artificial
761	761	5 sweeteners in combination with chocolate, fruits, nuts or
762	762	6 other ingredients or flavorings in the form of bars, drops, or
763	763	7 pieces. "Candy" does not include any preparation that contains
764	764	8 flour or requires refrigeration.
765	765	9 Notwithstanding any other provisions of this Act,
766	766	10 beginning September 1, 2009, "nonprescription medicines and
767	767	11 drugs" does not include grooming and hygiene products. For
768	768	12 purposes of this Section, "grooming and hygiene products"
769	769	13 includes, but is not limited to, soaps and cleaning solutions,
770	770	14 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
771	771	15 lotions and screens, unless those products are available by
772	772	16 prescription only, regardless of whether the products meet the
773	773	17 definition of "over-the-counter-drugs". For the purposes of
774	774	18 this paragraph, "over-the-counter-drug" means a drug for human
775	775	19 use that contains a label that identifies the product as a drug
776	776	20 as required by 21 CFR C.F.R. 201.66. The
777	777	21 "over-the-counter-drug" label includes:
778	778	22 (A) a A "Drug Facts" panel; or
779	779	23 (B) a A statement of the "active ingredient(s)" with a
780	780	24 list of those ingredients contained in the compound,
781	781	25 substance or preparation.
782	782	26 Beginning on January 1, 2014 (the effective date of Public
783	783
784	784
785	785
786	786
787	787
788	788	HB2565 - 21 - LRB103 28109 HLH 54488 b
789	789
790	790
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792	792	HB2565 - 22 - LRB103 28109 HLH 54488 b
793	793	1 Act 98-122), "prescription and nonprescription medicines and
794	794	2 drugs" includes medical cannabis purchased from a registered
795	795	3 dispensing organization under the Compassionate Use of Medical
796	796	4 Cannabis Program Act.
797	797	5 As used in this Section, "adult use cannabis" means
798	798	6 cannabis subject to tax under the Cannabis Cultivation
799	799	7 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
800	800	8 and does not include cannabis subject to tax under the
801	801	9 Compassionate Use of Medical Cannabis Program Act.
802	802	10 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
803	803	11 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
804	804	12 20, Section 20-15, eff. 4-19-22; 102-700, Article 60, Section
805	805	13 60-25, eff. 4-19-22; revised 6-1-22.)
806	806	14 Section 20. The Retailers' Occupation Tax Act is amended
807	807	15 by changing Section 2-10 as follows:
808	808	16 (35 ILCS 120/2-10)
809	809	17 Sec. 2-10. Rate of tax. Unless otherwise provided in this
810	810	18 Section, the tax imposed by this Act is at the rate of 6.25% of
811	811	19 gross receipts from sales of tangible personal property made
812	812	20 in the course of business.
813	813	21 Beginning on July 1, 2000 and through December 31, 2000,
814	814	22 with respect to motor fuel, as defined in Section 1.1 of the
815	815	23 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
816	816	24 the Use Tax Act, the tax is imposed at the rate of 1.25%.
817	817
818	818
819	819
820	820
821	821
822	822	HB2565 - 22 - LRB103 28109 HLH 54488 b
823	823
824	824
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826	826	HB2565 - 23 - LRB103 28109 HLH 54488 b
827	827	1 Beginning on August 6, 2010 through August 15, 2010, and
828	828	2 beginning again on August 5, 2022 through August 14, 2022,
829	829	3 with respect to sales tax holiday items as defined in Section
830	830	4 2-8 of this Act, the tax is imposed at the rate of 1.25%.
831	831	5 Within 14 days after July 1, 2000 (the effective date of
832	832	6 Public Act 91-872) this amendatory Act of the 91st General
833	833	7 Assembly, each retailer of motor fuel and gasohol shall cause
834	834	8 the following notice to be posted in a prominently visible
835	835	9 place on each retail dispensing device that is used to
836	836	10 dispense motor fuel or gasohol in the State of Illinois: "As of
837	837	11 July 1, 2000, the State of Illinois has eliminated the State's
838	838	12 share of sales tax on motor fuel and gasohol through December
839	839	13 31, 2000. The price on this pump should reflect the
840	840	14 elimination of the tax." The notice shall be printed in bold
841	841	15 print on a sign that is no smaller than 4 inches by 8 inches.
842	842	16 The sign shall be clearly visible to customers. Any retailer
843	843	17 who fails to post or maintain a required sign through December
844	844	18 31, 2000 is guilty of a petty offense for which the fine shall
845	845	19 be $500 per day per each retail premises where a violation
846	846	20 occurs.
847	847	21 With respect to gasohol, as defined in the Use Tax Act, the
848	848	22 tax imposed by this Act applies to (i) 70% of the proceeds of
849	849	23 sales made on or after January 1, 1990, and before July 1,
850	850	24 2003, (ii) 80% of the proceeds of sales made on or after July
851	851	25 1, 2003 and on or before July 1, 2017, and (iii) 100% of the
852	852	26 proceeds of sales made thereafter. If, at any time, however,
853	853
854	854
855	855
856	856
857	857
858	858	HB2565 - 23 - LRB103 28109 HLH 54488 b
859	859
860	860
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862	862	HB2565 - 24 - LRB103 28109 HLH 54488 b
863	863	1 the tax under this Act on sales of gasohol, as defined in the
864	864	2 Use Tax Act, is imposed at the rate of 1.25%, then the tax
865	865	3 imposed by this Act applies to 100% of the proceeds of sales of
866	866	4 gasohol made during that time.
867	867	5 With respect to majority blended ethanol fuel, as defined
868	868	6 in the Use Tax Act, the tax imposed by this Act does not apply
869	869	7 to the proceeds of sales made on or after July 1, 2003 and on
870	870	8 or before December 31, 2023 but applies to 100% of the proceeds
871	871	9 of sales made thereafter.
872	872	10 With respect to biodiesel blends, as defined in the Use
873	873	11 Tax Act, with no less than 1% and no more than 10% biodiesel,
874	874	12 the tax imposed by this Act applies to (i) 80% of the proceeds
875	875	13 of sales made on or after July 1, 2003 and on or before
876	876	14 December 31, 2018 and (ii) 100% of the proceeds of sales made
877	877	15 after December 31, 2018 and before January 1, 2024. On and
878	878	16 after January 1, 2024 and on or before December 31, 2030, the
879	879	17 taxation of biodiesel, renewable diesel, and biodiesel blends
880	880	18 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
881	881	19 at any time, however, the tax under this Act on sales of
882	882	20 biodiesel blends, as defined in the Use Tax Act, with no less
883	883	21 than 1% and no more than 10% biodiesel is imposed at the rate
884	884	22 of 1.25%, then the tax imposed by this Act applies to 100% of
885	885	23 the proceeds of sales of biodiesel blends with no less than 1%
886	886	24 and no more than 10% biodiesel made during that time.
887	887	25 With respect to biodiesel, as defined in the Use Tax Act,
888	888	26 and biodiesel blends, as defined in the Use Tax Act, with more
889	889
890	890
891	891
892	892
893	893
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895	895
896	896
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899	899	1 than 10% but no more than 99% biodiesel, the tax imposed by
900	900	2 this Act does not apply to the proceeds of sales made on or
901	901	3 after July 1, 2003 and on or before December 31, 2023. On and
902	902	4 after January 1, 2024 and on or before December 31, 2030, the
903	903	5 taxation of biodiesel, renewable diesel, and biodiesel blends
904	904	6 shall be as provided in Section 3-5.1 of the Use Tax Act.
905	905	7 Until July 1, 2022 and beginning again on July 1, 2023,
906	906	8 with respect to food for human consumption that is to be
907	907	9 consumed off the premises where it is sold (other than
908	908	10 alcoholic beverages, food consisting of or infused with adult
909	909	11 use cannabis, soft drinks, and food that has been prepared for
910	910	12 immediate consumption), the tax is imposed at the rate of 1%.
911	911	13 Beginning July 1, 2022 and until July 1, 2023, with respect to
912	912	14 food for human consumption that is to be consumed off the
913	913	15 premises where it is sold (other than alcoholic beverages,
914	914	16 food consisting of or infused with adult use cannabis, soft
915	915	17 drinks, and food that has been prepared for immediate
916	916	18 consumption), the tax is imposed at the rate of 0%.
917	917	19 With respect to prescription and nonprescription
918	918	20 medicines, drugs, medical appliances, internal (also known as
919	919	21 female) and male condoms, incontinence products, diapers, baby
920	920	22 wipes, products classified as Class III medical devices by the
921	921	23 United States Food and Drug Administration that are used for
922	922	24 cancer treatment pursuant to a prescription, as well as any
923	923	25 accessories and components related to those devices,
924	924	26 modifications to a motor vehicle for the purpose of rendering
925	925
926	926
927	927
928	928
929	929
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931	931
932	932
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935	935	1 it usable by a person with a disability, and insulin, blood
936	936	2 sugar testing materials, syringes, and needles used by human
937	937	3 diabetics, the tax is imposed at the rate of 1%. For the
938	938	4 purposes of this Section, until September 1, 2009: the term
939	939	5 "soft drinks" means any complete, finished, ready-to-use,
940	940	6 non-alcoholic drink, whether carbonated or not, including, but
941	941	7 not limited to, soda water, cola, fruit juice, vegetable
942	942	8 juice, carbonated water, and all other preparations commonly
943	943	9 known as soft drinks of whatever kind or description that are
944	944	10 contained in any closed or sealed bottle, can, carton, or
945	945	11 container, regardless of size; but "soft drinks" does not
946	946	12 include coffee, tea, non-carbonated water, infant formula,
947	947	13 milk or milk products as defined in the Grade A Pasteurized
948	948	14 Milk and Milk Products Act, or drinks containing 50% or more
949	949	15 natural fruit or vegetable juice.
950	950	16 Notwithstanding any other provisions of this Act,
951	951	17 beginning September 1, 2009, "soft drinks" means non-alcoholic
952	952	18 beverages that contain natural or artificial sweeteners. "Soft
953	953	19 drinks" does do not include beverages that contain milk or
954	954	20 milk products, soy, rice or similar milk substitutes, or
955	955	21 greater than 50% of vegetable or fruit juice by volume.
956	956	22 Until August 1, 2009, and notwithstanding any other
957	957	23 provisions of this Act, "food for human consumption that is to
958	958	24 be consumed off the premises where it is sold" includes all
959	959	25 food sold through a vending machine, except soft drinks and
960	960	26 food products that are dispensed hot from a vending machine,
961	961
962	962
963	963
964	964
965	965
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967	967
968	968
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971	971	1 regardless of the location of the vending machine. Beginning
972	972	2 August 1, 2009, and notwithstanding any other provisions of
973	973	3 this Act, "food for human consumption that is to be consumed
974	974	4 off the premises where it is sold" includes all food sold
975	975	5 through a vending machine, except soft drinks, candy, and food
976	976	6 products that are dispensed hot from a vending machine,
977	977	7 regardless of the location of the vending machine.
978	978	8 Notwithstanding any other provisions of this Act,
979	979	9 beginning September 1, 2009, "food for human consumption that
980	980	10 is to be consumed off the premises where it is sold" does not
981	981	11 include candy. For purposes of this Section, "candy" means a
982	982	12 preparation of sugar, honey, or other natural or artificial
983	983	13 sweeteners in combination with chocolate, fruits, nuts or
984	984	14 other ingredients or flavorings in the form of bars, drops, or
985	985	15 pieces. "Candy" does not include any preparation that contains
986	986	16 flour or requires refrigeration.
987	987	17 Notwithstanding any other provisions of this Act,
988	988	18 beginning September 1, 2009, "nonprescription medicines and
989	989	19 drugs" does not include grooming and hygiene products. For
990	990	20 purposes of this Section, "grooming and hygiene products"
991	991	21 includes, but is not limited to, soaps and cleaning solutions,
992	992	22 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
993	993	23 lotions and screens, unless those products are available by
994	994	24 prescription only, regardless of whether the products meet the
995	995	25 definition of "over-the-counter-drugs". For the purposes of
996	996	26 this paragraph, "over-the-counter-drug" means a drug for human
997	997
998	998
999	999
1000	1000
1001	1001
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1003	1003
1004	1004
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1007	1007	1 use that contains a label that identifies the product as a drug
1008	1008	2 as required by 21 CFR C.F.R. 201.66. The
1009	1009	3 "over-the-counter-drug" label includes:
1010	1010	4 (A) a A "Drug Facts" panel; or
1011	1011	5 (B) a A statement of the "active ingredient(s)" with a
1012	1012	6 list of those ingredients contained in the compound,
1013	1013	7 substance or preparation.
1014	1014	8 Beginning on January 1, 2014 (the effective date of Public
1015	1015	9 Act 98-122) this amendatory Act of the 98th General Assembly,
1016	1016	10 "prescription and nonprescription medicines and drugs"
1017	1017	11 includes medical cannabis purchased from a registered
1018	1018	12 dispensing organization under the Compassionate Use of Medical
1019	1019	13 Cannabis Program Act.
1020	1020	14 As used in this Section, "adult use cannabis" means
1021	1021	15 cannabis subject to tax under the Cannabis Cultivation
1022	1022	16 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
1023	1023	17 and does not include cannabis subject to tax under the
1024	1024	18 Compassionate Use of Medical Cannabis Program Act.
1025	1025	19 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
1026	1026	20 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff.
1027	1027	21 4-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22;
1028	1028	22 102-700, Article 65, Section 65-10, eff. 4-19-22; revised
1029	1029	23 6-1-22.)
1030	1030
1031	1031
1032	1032
1033	1033
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