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
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
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.
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A BILL FOR
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HB2565 LRB103 28109 HLH 54488 b
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
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
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.
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LRB103 28109 HLH 54488 b
A BILL FOR
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
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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, and (iii) 100% of the proceeds of sales
18 made thereafter. If, at any time, however, the tax under this
19 Act on sales of gasohol is imposed at the rate of 1.25%, then
20 the tax imposed by this Act applies to 100% of the proceeds of
21 sales of gasohol made during that time.
22 With respect to majority blended ethanol fuel, the tax
23 imposed by this Act does not apply to the proceeds of sales
24 made on or after July 1, 2003 and on or before December 31,
25 2023 but applies to 100% of the proceeds of sales made
26 thereafter.
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1 With respect to biodiesel blends with no less than 1% and
2 no more than 10% biodiesel, the tax imposed by this Act applies
3 to (i) 80% of the proceeds of sales made on or after July 1,
4 2003 and on or before December 31, 2018 and (ii) 100% of the
5 proceeds of sales made after December 31, 2018 and before
6 January 1, 2024. On and after January 1, 2024 and on or before
7 December 31, 2030, the taxation of biodiesel, renewable
8 diesel, and biodiesel blends shall be as provided in Section
9 3-5.1. If, at any time, however, the tax under this Act on
10 sales of biodiesel blends with no less than 1% and no more than
11 10% biodiesel is imposed at the rate of 1.25%, then the tax
12 imposed by this Act applies to 100% of the proceeds of sales of
13 biodiesel blends with no less than 1% and no more than 10%
14 biodiesel made during that time.
15 With respect to biodiesel and biodiesel blends with more
16 than 10% but no more than 99% biodiesel, the tax imposed by
17 this Act does not apply to the proceeds of sales made on or
18 after July 1, 2003 and on or before December 31, 2023. On and
19 after January 1, 2024 and on or before December 31, 2030, the
20 taxation of biodiesel, renewable diesel, and biodiesel blends
21 shall be as provided in Section 3-5.1.
22 Until July 1, 2022 and beginning again on July 1, 2023,
23 with respect to food for human consumption that is to be
24 consumed off the premises where it is sold (other than
25 alcoholic beverages, food consisting of or infused with adult
26 use cannabis, soft drinks, and food that has been prepared for
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1 immediate consumption), the tax is imposed at the rate of 1%.
2 Beginning on July 1, 2022 and until July 1, 2023, with respect
3 to food for human consumption that is to be consumed off the
4 premises where it is sold (other than alcoholic beverages,
5 food consisting of or infused with adult use cannabis, soft
6 drinks, and food that has been prepared for immediate
7 consumption), the tax is imposed at the rate of 0%.
8 With respect to prescription and nonprescription
9 medicines, drugs, medical appliances, internal (also known as
10 female) and male condoms, incontinence products, diapers, baby
11 wipes, products classified as Class III medical devices by the
12 United States Food and Drug Administration that are used for
13 cancer treatment pursuant to a prescription, as well as any
14 accessories and components related to those devices,
15 modifications to a motor vehicle for the purpose of rendering
16 it usable by a person with a disability, and insulin, blood
17 sugar testing materials, syringes, and needles used by human
18 diabetics, the tax is imposed at the rate of 1%. For the
19 purposes of this Section, until September 1, 2009: the term
20 "soft drinks" means any complete, finished, ready-to-use,
21 non-alcoholic drink, whether carbonated or not, including, but
22 not limited to, soda water, cola, fruit juice, vegetable
23 juice, carbonated water, and all other preparations commonly
24 known as soft drinks of whatever kind or description that are
25 contained in any closed or sealed bottle, can, carton, or
26 container, regardless of size; but "soft drinks" does not
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1 include coffee, tea, non-carbonated water, infant formula,
2 milk or milk products as defined in the Grade A Pasteurized
3 Milk and Milk Products Act, or drinks containing 50% or more
4 natural fruit or vegetable juice.
5 Notwithstanding any other provisions of this Act,
6 beginning September 1, 2009, "soft drinks" means non-alcoholic
7 beverages that contain natural or artificial sweeteners. "Soft
8 drinks" does do not include beverages that contain milk or
9 milk products, soy, rice or similar milk substitutes, or
10 greater than 50% of vegetable or fruit juice by volume.
11 Until August 1, 2009, and notwithstanding any other
12 provisions of this Act, "food for human consumption that is to
13 be consumed off the premises where it is sold" includes all
14 food sold through a vending machine, except soft drinks and
15 food products that are dispensed hot from a vending machine,
16 regardless of the location of the vending machine. Beginning
17 August 1, 2009, and notwithstanding any other provisions of
18 this Act, "food for human consumption that is to be consumed
19 off the premises where it is sold" includes all food sold
20 through a vending machine, except soft drinks, candy, and food
21 products that are dispensed hot from a vending machine,
22 regardless of the location of the vending machine.
23 Notwithstanding any other provisions of this Act,
24 beginning September 1, 2009, "food for human consumption that
25 is to be consumed off the premises where it is sold" does not
26 include candy. For purposes of this Section, "candy" means a
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1 preparation of sugar, honey, or other natural or artificial
2 sweeteners in combination with chocolate, fruits, nuts or
3 other ingredients or flavorings in the form of bars, drops, or
4 pieces. "Candy" does not include any preparation that contains
5 flour or requires refrigeration.
6 Notwithstanding any other provisions of this Act,
7 beginning September 1, 2009, "nonprescription medicines and
8 drugs" does not include grooming and hygiene products. For
9 purposes of this Section, "grooming and hygiene products"
10 includes, but is not limited to, soaps and cleaning solutions,
11 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
12 lotions and screens, unless those products are available by
13 prescription only, regardless of whether the products meet the
14 definition of "over-the-counter-drugs". For the purposes of
15 this paragraph, "over-the-counter-drug" means a drug for human
16 use that contains a label that identifies the product as a drug
17 as required by 21 CFR C.F.R. 201.66. The
18 "over-the-counter-drug" label includes:
19 (A) a A "Drug Facts" panel; or
20 (B) a A statement of the "active ingredient(s)" with a
21 list of those ingredients contained in the compound,
22 substance or preparation.
23 Beginning on January 1, 2014 (the effective date of Public
24 Act 98-122) this amendatory Act of the 98th General Assembly,
25 "prescription and nonprescription medicines and drugs"
26 includes medical cannabis purchased from a registered
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1 dispensing organization under the Compassionate Use of Medical
2 Cannabis Program Act.
3 As used in this Section, "adult use cannabis" means
4 cannabis subject to tax under the Cannabis Cultivation
5 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
6 and does not include cannabis subject to tax under the
7 Compassionate Use of Medical Cannabis Program Act.
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 is
12 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. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
16 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.
17 4-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;
18 102-700, Article 65, Section 65-5, eff. 4-19-22; revised
19 5-27-22.)
20 Section 10. The Service Use Tax Act is amended by changing
21 Section 3-10 as follows:
22 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
23 Sec. 3-10. Rate of tax. Unless otherwise provided in this
24 Section, the tax imposed by this Act is at the rate of 6.25% of
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1 the selling price of tangible personal property transferred as
2 an incident to the sale of service, but, for the purpose of
3 computing this tax, in no event shall the selling price be less
4 than the cost price of the property to the serviceman.
5 Beginning on July 1, 2000 and through December 31, 2000,
6 with respect to motor fuel, as defined in Section 1.1 of the
7 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
8 the Use Tax Act, the tax is imposed at the rate of 1.25%.
9 With respect to gasohol, as defined in the Use Tax Act, the
10 tax imposed by this Act applies to (i) 70% of the selling price
11 of property transferred as an incident to the sale of service
12 on or after January 1, 1990, and before July 1, 2003, (ii) 80%
13 of the selling price of property transferred as an incident to
14 the sale of service on or after July 1, 2003 and on or before
15 July 1, 2017, and (iii) 100% of the selling price thereafter.
16 If, at any time, however, the tax under this Act on sales of
17 gasohol, as defined in the Use Tax Act, is imposed at the rate
18 of 1.25%, then the tax imposed by this Act applies to 100% of
19 the proceeds of sales of gasohol made during that time.
20 With respect to majority blended ethanol fuel, as defined
21 in the Use Tax Act, the tax imposed by this Act does not apply
22 to the selling price of property transferred as an incident to
23 the sale of service on or after July 1, 2003 and on or before
24 December 31, 2023 but applies to 100% of the selling price
25 thereafter.
26 With respect to biodiesel blends, as defined in the Use
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1 Tax Act, with no less than 1% and no more than 10% biodiesel,
2 the tax imposed by this Act applies to (i) 80% of the selling
3 price of property transferred as an incident to the sale of
4 service on or after July 1, 2003 and on or before December 31,
5 2018 and (ii) 100% of the proceeds of the selling price after
6 December 31, 2018 and before January 1, 2024. On and after
7 January 1, 2024 and on or before December 31, 2030, the
8 taxation of biodiesel, renewable diesel, and biodiesel blends
9 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
10 at any time, however, the tax under this Act on sales of
11 biodiesel blends, as defined in the Use Tax Act, with no less
12 than 1% and no more than 10% biodiesel is imposed at the rate
13 of 1.25%, then the tax imposed by this Act applies to 100% of
14 the proceeds of sales of biodiesel blends with no less than 1%
15 and no more than 10% biodiesel made during that time.
16 With respect to biodiesel, as defined in the Use Tax Act,
17 and biodiesel blends, as defined in the Use Tax Act, with more
18 than 10% but no more than 99% biodiesel, the tax imposed by
19 this Act does not apply to the proceeds of the selling price of
20 property transferred as an incident to the sale of service on
21 or after July 1, 2003 and on or before December 31, 2023. On
22 and after January 1, 2024 and on or before December 31, 2030,
23 the taxation of biodiesel, renewable diesel, and biodiesel
24 blends shall be as provided in Section 3-5.1 of the Use Tax
25 Act.
26 At the election of any registered serviceman made for each
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1 fiscal year, sales of service in which the aggregate annual
2 cost price of tangible personal property transferred as an
3 incident to the sales of service is less than 35%, or 75% in
4 the case of servicemen transferring prescription drugs or
5 servicemen engaged in graphic arts production, of the
6 aggregate annual total gross receipts from all sales of
7 service, the tax imposed by this Act shall be based on the
8 serviceman's cost price of the tangible personal property
9 transferred as an incident to the sale of those services.
10 Until July 1, 2022 and beginning again on July 1, 2023, the
11 tax shall be imposed at the rate of 1% on food prepared for
12 immediate consumption and transferred incident to a sale of
13 service subject to this Act or the Service Occupation Tax Act
14 by an entity licensed under the Hospital Licensing Act, the
15 Nursing Home Care Act, the Assisted Living and Shared Housing
16 Act, the ID/DD Community Care Act, the MC/DD Act, the
17 Specialized Mental Health Rehabilitation Act of 2013, or the
18 Child Care Act of 1969, or an entity that holds a permit issued
19 pursuant to the Life Care Facilities Act. Until July 1, 2022
20 and beginning again on July 1, 2023, the tax shall also be
21 imposed at the rate of 1% on food for human consumption that is
22 to be consumed off the premises where it is sold (other than
23 alcoholic beverages, food consisting of or infused with adult
24 use cannabis, soft drinks, and food that has been prepared for
25 immediate consumption and is not otherwise included in this
26 paragraph).
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1 Beginning on July 1, 2022 and until July 1, 2023, the tax
2 shall be imposed at the rate of 0% on food prepared for
3 immediate consumption and transferred incident to a sale of
4 service subject to this Act or the Service Occupation Tax Act
5 by an entity licensed under the Hospital Licensing Act, the
6 Nursing Home Care Act, the Assisted Living and Shared Housing
7 Act, the ID/DD Community Care Act, the MC/DD Act, the
8 Specialized Mental Health Rehabilitation Act of 2013, or the
9 Child Care Act of 1969, or an entity that holds a permit issued
10 pursuant to the Life Care Facilities Act. Beginning on July 1,
11 2022 and until July 1, 2023, the tax shall also be imposed at
12 the rate of 0% on food for human consumption that is to be
13 consumed off the premises where it is sold (other than
14 alcoholic beverages, food consisting of or infused with adult
15 use cannabis, soft drinks, and food that has been prepared for
16 immediate consumption and is not otherwise included in this
17 paragraph).
18 The tax shall also be imposed at the rate of 1% on
19 prescription and nonprescription medicines, drugs, medical
20 appliances, internal (also known as female) and male condoms,
21 incontinence products, diapers, baby wipes, products
22 classified as Class III medical devices by the United States
23 Food and Drug Administration that are used for cancer
24 treatment pursuant to a prescription, as well as any
25 accessories and components related to those devices,
26 modifications to a motor vehicle for the purpose of rendering
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1 it usable by a person with a disability, and insulin, blood
2 sugar testing materials, syringes, and needles used by human
3 diabetics. For the purposes of this Section, until September
4 1, 2009: the term "soft drinks" means any complete, finished,
5 ready-to-use, non-alcoholic drink, whether carbonated or not,
6 including, but not limited to, soda water, cola, fruit juice,
7 vegetable juice, carbonated water, and all other preparations
8 commonly known as soft drinks of whatever kind or description
9 that are contained in any closed or sealed bottle, can,
10 carton, or container, regardless of size; but "soft drinks"
11 does not include coffee, tea, non-carbonated water, infant
12 formula, milk or milk products as defined in the Grade A
13 Pasteurized Milk and Milk Products Act, or drinks containing
14 50% or more natural fruit or vegetable juice.
15 Notwithstanding any other provisions of this Act,
16 beginning September 1, 2009, "soft drinks" means non-alcoholic
17 beverages that contain natural or artificial sweeteners. "Soft
18 drinks" does do not include beverages that contain milk or
19 milk products, soy, rice or similar milk substitutes, or
20 greater than 50% of vegetable or fruit juice by volume.
21 Until August 1, 2009, and notwithstanding any other
22 provisions of this Act, "food for human consumption that is to
23 be consumed off the premises where it is sold" includes all
24 food sold through a vending machine, except soft drinks and
25 food products that are dispensed hot from a vending machine,
26 regardless of the location of the vending machine. Beginning
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1 August 1, 2009, and notwithstanding any other provisions of
2 this Act, "food for human consumption that is to be consumed
3 off the premises where it is sold" includes all food sold
4 through a vending machine, except soft drinks, candy, and food
5 products that are dispensed hot from a vending machine,
6 regardless of the location of the vending machine.
7 Notwithstanding any other provisions of this Act,
8 beginning September 1, 2009, "food for human consumption that
9 is to be consumed off the premises where it is sold" does not
10 include candy. For purposes of this Section, "candy" means a
11 preparation of sugar, honey, or other natural or artificial
12 sweeteners in combination with chocolate, fruits, nuts or
13 other ingredients or flavorings in the form of bars, drops, or
14 pieces. "Candy" does not include any preparation that contains
15 flour or requires refrigeration.
16 Notwithstanding any other provisions of this Act,
17 beginning September 1, 2009, "nonprescription medicines and
18 drugs" does not include grooming and hygiene products. For
19 purposes of this Section, "grooming and hygiene products"
20 includes, but is not limited to, soaps and cleaning solutions,
21 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
22 lotions and screens, unless those products are available by
23 prescription only, regardless of whether the products meet the
24 definition of "over-the-counter-drugs". For the purposes of
25 this paragraph, "over-the-counter-drug" means a drug for human
26 use that contains a label that identifies the product as a drug
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1 as required by 21 CFR C.F.R. 201.66. The
2 "over-the-counter-drug" label includes:
3 (A) a A "Drug Facts" panel; or
4 (B) a A statement of the "active ingredient(s)" with a
5 list of those ingredients contained in the compound,
6 substance or preparation.
7 Beginning on January 1, 2014 (the effective date of Public
8 Act 98-122), "prescription and nonprescription medicines and
9 drugs" includes medical cannabis purchased from a registered
10 dispensing organization under the Compassionate Use of Medical
11 Cannabis Program Act.
12 As used in this Section, "adult use cannabis" means
13 cannabis subject to tax under the Cannabis Cultivation
14 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
15 and does not include cannabis subject to tax under the
16 Compassionate Use of Medical Cannabis Program Act.
17 If the property that is acquired from a serviceman is
18 acquired outside Illinois and used outside Illinois before
19 being brought to Illinois for use here and is taxable under
20 this Act, the "selling price" on which the tax is computed
21 shall be reduced by an amount that represents a reasonable
22 allowance for depreciation for the period of prior
23 out-of-state use.
24 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
25 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
26 20, Section 20-10, eff. 4-19-22; 102-700, Article 60, Section
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1 60-20, eff. 4-19-22; revised 6-1-22.)
2 Section 15. The Service Occupation Tax Act is amended by
3 changing Section 3-10 as follows:
4 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
5 Sec. 3-10. Rate of tax. Unless otherwise provided in this
6 Section, the tax imposed by this Act is at the rate of 6.25% of
7 the "selling price", as defined in Section 2 of the Service Use
8 Tax Act, of the tangible personal property. For the purpose of
9 computing this tax, in no event shall the "selling price" be
10 less than the cost price to the serviceman of the tangible
11 personal property transferred. The selling price of each item
12 of tangible personal property transferred as an incident of a
13 sale of service may be shown as a distinct and separate item on
14 the serviceman's billing to the service customer. If the
15 selling price is not so shown, the selling price of the
16 tangible personal property is deemed to be 50% of the
17 serviceman's entire billing to the service customer. When,
18 however, a serviceman contracts to design, develop, and
19 produce special order machinery or equipment, the tax imposed
20 by this Act shall be based on the serviceman's cost price of
21 the tangible personal property transferred incident to the
22 completion of the contract.
23 Beginning on July 1, 2000 and through December 31, 2000,
24 with respect to motor fuel, as defined in Section 1.1 of the
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1 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
2 the Use Tax Act, the tax is imposed at the rate of 1.25%.
3 With respect to gasohol, as defined in the Use Tax Act, the
4 tax imposed by this Act shall apply to (i) 70% of the cost
5 price of property transferred as an incident to the sale of
6 service on or after January 1, 1990, and before July 1, 2003,
7 (ii) 80% of the selling price of property transferred as an
8 incident to the sale of service on or after July 1, 2003 and on
9 or before July 1, 2017, and (iii) 100% of the cost price
10 thereafter. If, at any time, however, the tax under this Act on
11 sales of gasohol, as defined in the Use Tax Act, is imposed at
12 the rate of 1.25%, then the tax imposed by this Act applies to
13 100% of the proceeds of sales of gasohol made during that time.
14 With respect to majority blended ethanol fuel, as defined
15 in the Use Tax Act, the tax imposed by this Act does not apply
16 to the selling price of property transferred as an incident to
17 the sale of service on or after July 1, 2003 and on or before
18 December 31, 2023 but applies to 100% of the selling price
19 thereafter.
20 With respect to biodiesel blends, as defined in the Use
21 Tax Act, with no less than 1% and no more than 10% biodiesel,
22 the tax imposed by this Act applies to (i) 80% of the selling
23 price of property transferred as an incident to the sale of
24 service on or after July 1, 2003 and on or before December 31,
25 2018 and (ii) 100% of the proceeds of the selling price after
26 December 31, 2018 and before January 1, 2024. On and after
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1 January 1, 2024 and on or before December 31, 2030, the
2 taxation of biodiesel, renewable diesel, and biodiesel blends
3 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
4 at any time, however, the tax under this Act on sales of
5 biodiesel blends, as defined in the Use Tax Act, with no less
6 than 1% and no more than 10% biodiesel is imposed at the rate
7 of 1.25%, then the tax imposed by this Act applies to 100% of
8 the proceeds of sales of biodiesel blends with no less than 1%
9 and no more than 10% biodiesel made during that time.
10 With respect to biodiesel, as defined in the Use Tax Act,
11 and biodiesel blends, as defined in the Use Tax Act, with more
12 than 10% but no more than 99% biodiesel material, the tax
13 imposed by this Act does not apply to the proceeds of the
14 selling price of property transferred as an incident to the
15 sale of service on or after July 1, 2003 and on or before
16 December 31, 2023. On and after January 1, 2024 and on or
17 before December 31, 2030, the taxation of biodiesel, renewable
18 diesel, and biodiesel blends shall be as provided in Section
19 3-5.1 of the Use Tax Act.
20 At the election of any registered serviceman made for each
21 fiscal year, sales of service in which the aggregate annual
22 cost price of tangible personal property transferred as an
23 incident to the sales of service is less than 35%, or 75% in
24 the case of servicemen transferring prescription drugs or
25 servicemen engaged in graphic arts production, of the
26 aggregate annual total gross receipts from all sales of
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1 service, the tax imposed by this Act shall be based on the
2 serviceman's cost price of the tangible personal property
3 transferred incident to the sale of those services.
4 Until July 1, 2022 and beginning again on July 1, 2023, the
5 tax shall be imposed at the rate of 1% on food prepared for
6 immediate consumption and transferred incident to a sale of
7 service subject to this Act or the Service Use Tax Act by an
8 entity licensed under the Hospital Licensing Act, the Nursing
9 Home Care Act, the Assisted Living and Shared Housing Act, the
10 ID/DD Community Care Act, the MC/DD Act, the Specialized
11 Mental Health Rehabilitation Act of 2013, or the Child Care
12 Act of 1969, or an entity that holds a permit issued pursuant
13 to the Life Care Facilities Act. Until July 1, 2022 and
14 beginning again on July 1, 2023, the tax shall also be imposed
15 at the rate of 1% on food for human consumption that is to be
16 consumed off the premises where it is sold (other than
17 alcoholic beverages, food consisting of or infused with adult
18 use cannabis, soft drinks, and food that has been prepared for
19 immediate consumption and is not otherwise included in this
20 paragraph).
21 Beginning on July 1, 2022 and until July 1, 2023, the tax
22 shall be imposed at the rate of 0% on food prepared for
23 immediate consumption and transferred incident to a sale of
24 service subject to this Act or the Service Use Tax Act by an
25 entity licensed under the Hospital Licensing Act, the Nursing
26 Home Care Act, the Assisted Living and Shared Housing Act, the
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1 ID/DD Community Care Act, the MC/DD Act, the Specialized
2 Mental Health Rehabilitation Act of 2013, or the Child Care
3 Act of 1969, or an entity that holds a permit issued pursuant
4 to the Life Care Facilities Act. Beginning July 1, 2022 and
5 until July 1, 2023, the tax shall also be imposed at the rate
6 of 0% on food for human consumption that is to be consumed off
7 the premises where it is sold (other than alcoholic beverages,
8 food consisting of or infused with adult use cannabis, soft
9 drinks, and food that has been prepared for immediate
10 consumption and is not otherwise included in this paragraph).
11 The tax shall also be imposed at the rate of 1% on
12 prescription and nonprescription medicines, drugs, medical
13 appliances, internal (also known as female) and male condoms,
14 incontinence products, diapers, baby wipes, products
15 classified as Class III medical devices by the United States
16 Food and Drug Administration that are used for cancer
17 treatment pursuant to a prescription, as well as any
18 accessories and components related to those devices,
19 modifications to a motor vehicle for the purpose of rendering
20 it usable by a person with a disability, and insulin, blood
21 sugar testing materials, syringes, and needles used by human
22 diabetics. For the purposes of this Section, until September
23 1, 2009: the term "soft drinks" means any complete, finished,
24 ready-to-use, non-alcoholic drink, whether carbonated or not,
25 including, but not limited to, soda water, cola, fruit juice,
26 vegetable juice, carbonated water, and all other preparations
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1 commonly known as soft drinks of whatever kind or description
2 that are contained in any closed or sealed can, carton, or
3 container, regardless of size; but "soft drinks" does not
4 include coffee, tea, non-carbonated water, infant formula,
5 milk or milk products as defined in the Grade A Pasteurized
6 Milk and Milk Products Act, or drinks containing 50% or more
7 natural fruit or vegetable juice.
8 Notwithstanding any other provisions of this Act,
9 beginning September 1, 2009, "soft drinks" means non-alcoholic
10 beverages that contain natural or artificial sweeteners. "Soft
11 drinks" does do not include beverages that contain milk or
12 milk products, soy, rice or similar milk substitutes, or
13 greater than 50% of vegetable or fruit juice by volume.
14 Until August 1, 2009, and notwithstanding any other
15 provisions of this Act, "food for human consumption that is to
16 be consumed off the premises where it is sold" includes all
17 food sold through a vending machine, except soft drinks and
18 food products that are dispensed hot from a vending machine,
19 regardless of the location of the vending machine. Beginning
20 August 1, 2009, and notwithstanding any other provisions of
21 this Act, "food for human consumption that is to be consumed
22 off the premises where it is sold" includes all food sold
23 through a vending machine, except soft drinks, candy, and food
24 products that are dispensed hot from a vending machine,
25 regardless of the location of the vending machine.
26 Notwithstanding any other provisions of this Act,
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1 beginning September 1, 2009, "food for human consumption that
2 is to be consumed off the premises where it is sold" does not
3 include candy. For purposes of this Section, "candy" means a
4 preparation of sugar, honey, or other natural or artificial
5 sweeteners in combination with chocolate, fruits, nuts or
6 other ingredients or flavorings in the form of bars, drops, or
7 pieces. "Candy" does not include any preparation that contains
8 flour or requires refrigeration.
9 Notwithstanding any other provisions of this Act,
10 beginning September 1, 2009, "nonprescription medicines and
11 drugs" does not include grooming and hygiene products. For
12 purposes of this Section, "grooming and hygiene products"
13 includes, but is not limited to, soaps and cleaning solutions,
14 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
15 lotions and screens, unless those products are available by
16 prescription only, regardless of whether the products meet the
17 definition of "over-the-counter-drugs". For the purposes of
18 this paragraph, "over-the-counter-drug" means a drug for human
19 use that contains a label that identifies the product as a drug
20 as required by 21 CFR C.F.R. 201.66. The
21 "over-the-counter-drug" label includes:
22 (A) a A "Drug Facts" panel; or
23 (B) a A statement of the "active ingredient(s)" with a
24 list of those ingredients contained in the compound,
25 substance or preparation.
26 Beginning on January 1, 2014 (the effective date of Public
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1 Act 98-122), "prescription and nonprescription medicines and
2 drugs" includes medical cannabis purchased from a registered
3 dispensing organization under the Compassionate Use of Medical
4 Cannabis Program Act.
5 As used in this Section, "adult use cannabis" means
6 cannabis subject to tax under the Cannabis Cultivation
7 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
8 and does not include cannabis subject to tax under the
9 Compassionate Use of Medical Cannabis Program Act.
10 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
11 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
12 20, Section 20-15, eff. 4-19-22; 102-700, Article 60, Section
13 60-25, eff. 4-19-22; revised 6-1-22.)
14 Section 20. The Retailers' Occupation Tax Act is amended
15 by changing Section 2-10 as follows:
16 (35 ILCS 120/2-10)
17 Sec. 2-10. Rate of tax. Unless otherwise provided in this
18 Section, the tax imposed by this Act is at the rate of 6.25% of
19 gross receipts from sales of tangible personal property made
20 in the course of business.
21 Beginning on July 1, 2000 and through December 31, 2000,
22 with respect to motor fuel, as defined in Section 1.1 of the
23 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
24 the Use Tax Act, the tax is imposed at the rate of 1.25%.
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1 Beginning on August 6, 2010 through August 15, 2010, and
2 beginning again on August 5, 2022 through August 14, 2022,
3 with respect to sales tax holiday items as defined in Section
4 2-8 of this Act, the tax is imposed at the rate of 1.25%.
5 Within 14 days after July 1, 2000 (the effective date of
6 Public Act 91-872) this amendatory Act of the 91st General
7 Assembly, each retailer of motor fuel and gasohol shall cause
8 the following notice to be posted in a prominently visible
9 place on each retail dispensing device that is used to
10 dispense motor fuel or gasohol in the State of Illinois: "As of
11 July 1, 2000, the State of Illinois has eliminated the State's
12 share of sales tax on motor fuel and gasohol through December
13 31, 2000. The price on this pump should reflect the
14 elimination of the tax." The notice shall be printed in bold
15 print on a sign that is no smaller than 4 inches by 8 inches.
16 The sign shall be clearly visible to customers. Any retailer
17 who fails to post or maintain a required sign through December
18 31, 2000 is guilty of a petty offense for which the fine shall
19 be $500 per day per each retail premises where a violation
20 occurs.
21 With respect to gasohol, as defined in the Use Tax Act, the
22 tax imposed by this Act applies to (i) 70% of the proceeds of
23 sales made on or after January 1, 1990, and before July 1,
24 2003, (ii) 80% of the proceeds of sales made on or after July
25 1, 2003 and on or before July 1, 2017, and (iii) 100% of the
26 proceeds of sales made thereafter. If, at any time, however,
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1 the tax under this Act on sales of gasohol, as defined in the
2 Use Tax Act, is imposed at the rate of 1.25%, then the tax
3 imposed by this Act applies to 100% of the proceeds of sales of
4 gasohol made during that time.
5 With respect to majority blended ethanol fuel, as defined
6 in the Use Tax Act, the tax imposed by this Act does not apply
7 to the proceeds of sales made on or after July 1, 2003 and on
8 or before December 31, 2023 but applies to 100% of the proceeds
9 of sales made thereafter.
10 With respect to biodiesel blends, as defined in the Use
11 Tax Act, with no less than 1% and no more than 10% biodiesel,
12 the tax imposed by this Act applies to (i) 80% of the proceeds
13 of sales made on or after July 1, 2003 and on or before
14 December 31, 2018 and (ii) 100% of the proceeds of sales made
15 after December 31, 2018 and before January 1, 2024. On and
16 after January 1, 2024 and on or before December 31, 2030, the
17 taxation of biodiesel, renewable diesel, and biodiesel blends
18 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
19 at any time, however, the tax under this Act on sales of
20 biodiesel blends, as defined in the Use Tax Act, with no less
21 than 1% and no more than 10% biodiesel is imposed at the rate
22 of 1.25%, then the tax imposed by this Act applies to 100% of
23 the proceeds of sales of biodiesel blends with no less than 1%
24 and no more than 10% biodiesel made during that time.
25 With respect to biodiesel, as defined in the Use Tax Act,
26 and biodiesel blends, as defined in the Use Tax Act, 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 of the Use Tax Act.
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 July 1, 2022 and until July 1, 2023, with respect to
14 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, internal (also known as
21 female) and male condoms, incontinence products, diapers, baby
22 wipes, products classified as Class III medical devices by the
23 United States Food and Drug Administration that are used for
24 cancer treatment pursuant to a prescription, as well as any
25 accessories and components related to those devices,
26 modifications to a motor vehicle for the purpose of rendering
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1 it usable by a person with a disability, and insulin, blood
2 sugar testing materials, syringes, and needles used by human
3 diabetics, the tax is imposed at the rate of 1%. For the
4 purposes of this Section, until September 1, 2009: the term
5 "soft drinks" means any complete, finished, ready-to-use,
6 non-alcoholic drink, whether carbonated or not, including, but
7 not limited to, soda water, cola, fruit juice, vegetable
8 juice, carbonated water, and all other preparations commonly
9 known as soft drinks of whatever kind or description that are
10 contained in any closed or sealed bottle, can, carton, or
11 container, regardless of size; but "soft drinks" does not
12 include coffee, tea, non-carbonated water, infant formula,
13 milk or milk products as defined in the Grade A Pasteurized
14 Milk and Milk Products Act, or drinks containing 50% or more
15 natural fruit or vegetable juice.
16 Notwithstanding any other provisions of this Act,
17 beginning September 1, 2009, "soft drinks" means non-alcoholic
18 beverages that contain natural or artificial sweeteners. "Soft
19 drinks" does do not include beverages that contain milk or
20 milk products, soy, rice or similar milk substitutes, or
21 greater than 50% of vegetable or fruit juice by volume.
22 Until August 1, 2009, and notwithstanding any other
23 provisions of this Act, "food for human consumption that is to
24 be consumed off the premises where it is sold" includes all
25 food sold through a vending machine, except soft drinks and
26 food products that are dispensed hot from a vending machine,
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1 regardless of the location of the vending machine. Beginning
2 August 1, 2009, and notwithstanding any other provisions of
3 this Act, "food for human consumption that is to be consumed
4 off the premises where it is sold" includes all food sold
5 through a vending machine, except soft drinks, candy, and food
6 products that are dispensed hot from a vending machine,
7 regardless of the location of the vending machine.
8 Notwithstanding any other provisions of this Act,
9 beginning September 1, 2009, "food for human consumption that
10 is to be consumed off the premises where it is sold" does not
11 include candy. For purposes of this Section, "candy" means a
12 preparation of sugar, honey, or other natural or artificial
13 sweeteners in combination with chocolate, fruits, nuts or
14 other ingredients or flavorings in the form of bars, drops, or
15 pieces. "Candy" does not include any preparation that contains
16 flour or requires refrigeration.
17 Notwithstanding any other provisions of this Act,
18 beginning September 1, 2009, "nonprescription medicines and
19 drugs" does not include grooming and hygiene products. For
20 purposes of this Section, "grooming and hygiene products"
21 includes, but is not limited to, soaps and cleaning solutions,
22 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
23 lotions and screens, unless those products are available by
24 prescription only, regardless of whether the products meet the
25 definition of "over-the-counter-drugs". For the purposes of
26 this paragraph, "over-the-counter-drug" means a drug for human
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1 use that contains a label that identifies the product as a drug
2 as required by 21 CFR C.F.R. 201.66. The
3 "over-the-counter-drug" label includes:
4 (A) a A "Drug Facts" panel; or
5 (B) a A statement of the "active ingredient(s)" with a
6 list of those ingredients contained in the compound,
7 substance or preparation.
8 Beginning on January 1, 2014 (the effective date of Public
9 Act 98-122) this amendatory Act of the 98th General Assembly,
10 "prescription and nonprescription medicines and drugs"
11 includes medical cannabis purchased from a registered
12 dispensing organization under the Compassionate Use of Medical
13 Cannabis Program Act.
14 As used in this Section, "adult use cannabis" means
15 cannabis subject to tax under the Cannabis Cultivation
16 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
17 and does not include cannabis subject to tax under the
18 Compassionate Use of Medical Cannabis Program Act.
19 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
20 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff.
21 4-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22;
22 102-700, Article 65, Section 65-10, eff. 4-19-22; revised
23 6-1-22.)
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