Illinois 2023-2024 Regular Session

Illinois House Bill HB3475 Compare Versions

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

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3475 Introduced , by Rep. Abdelnasser Rashid SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-10 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-10 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Reduces the rate of tax on diapers and baby wipes to 1% (currently, 6.25%). LRB103 26897 HLH 53261 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3475 Introduced , by Rep. Abdelnasser Rashid 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 Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Reduces the rate of tax on diapers and baby wipes to 1% (currently, 6.25%). LRB103 26897 HLH 53261 b LRB103 26897 HLH 53261 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3475 Introduced , by Rep. Abdelnasser Rashid 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 Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Reduces the rate of tax on diapers and baby wipes to 1% (currently, 6.25%).
9	9	LRB103 26897 HLH 53261 b LRB103 26897 HLH 53261 b
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11	11	A BILL FOR
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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 Sections
18	18	5 3-10 and 9 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 HB3475 Introduced , by Rep. Abdelnasser Rashid 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 Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Reduces the rate of tax on diapers and baby wipes to 1% (currently, 6.25%).
47	47	LRB103 26897 HLH 53261 b LRB103 26897 HLH 53261 b
48	48	LRB103 26897 HLH 53261 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, products classified as
158	158	10 Class III medical devices by the United States Food and Drug
159	159	11 Administration that are used for cancer treatment pursuant to
160	160	12 a prescription, as well as any accessories and components
161	161	13 related to those devices, modifications to a motor vehicle for
162	162	14 the purpose of rendering it usable by a person with a
163	163	15 disability, diapers, baby wipes, and insulin, blood sugar
164	164	16 testing materials, syringes, and needles used by human
165	165	17 diabetics, the tax is imposed at the rate of 1%. For the
166	166	18 purposes of this Section, until September 1, 2009: the term
167	167	19 "soft drinks" means any complete, finished, ready-to-use,
168	168	20 non-alcoholic drink, whether carbonated or not, including, but
169	169	21 not limited to, soda water, cola, fruit juice, vegetable
170	170	22 juice, carbonated water, and all other preparations commonly
171	171	23 known as soft drinks of whatever kind or description that are
172	172	24 contained in any closed or sealed bottle, can, carton, or
173	173	25 container, regardless of size; but "soft drinks" does not
174	174	26 include coffee, tea, non-carbonated water, infant formula,
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185	185	1 milk or milk products as defined in the Grade A Pasteurized
186	186	2 Milk and Milk Products Act, or drinks containing 50% or more
187	187	3 natural fruit or vegetable juice.
188	188	4 Notwithstanding any other provisions of this Act,
189	189	5 beginning September 1, 2009, "soft drinks" means non-alcoholic
190	190	6 beverages that contain natural or artificial sweeteners. "Soft
191	191	7 drinks" does do not include beverages that contain milk or
192	192	8 milk products, soy, rice or similar milk substitutes, or
193	193	9 greater than 50% of vegetable or fruit juice by volume.
194	194	10 Until August 1, 2009, and notwithstanding any other
195	195	11 provisions of this Act, "food for human consumption that is to
196	196	12 be consumed off the premises where it is sold" includes all
197	197	13 food sold through a vending machine, except soft drinks and
198	198	14 food products that are dispensed hot from a vending machine,
199	199	15 regardless of the location of the vending machine. Beginning
200	200	16 August 1, 2009, and notwithstanding any other provisions of
201	201	17 this Act, "food for human consumption that is to be consumed
202	202	18 off the premises where it is sold" includes all food sold
203	203	19 through a vending machine, except soft drinks, candy, and food
204	204	20 products that are dispensed hot from a vending machine,
205	205	21 regardless of the location of the vending machine.
206	206	22 Notwithstanding any other provisions of this Act,
207	207	23 beginning September 1, 2009, "food for human consumption that
208	208	24 is to be consumed off the premises where it is sold" does not
209	209	25 include candy. For purposes of this Section, "candy" means a
210	210	26 preparation of sugar, honey, or other natural or artificial
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221	221	1 sweeteners in combination with chocolate, fruits, nuts or
222	222	2 other ingredients or flavorings in the form of bars, drops, or
223	223	3 pieces. "Candy" does not include any preparation that contains
224	224	4 flour or requires refrigeration.
225	225	5 Notwithstanding any other provisions of this Act,
226	226	6 beginning September 1, 2009, "nonprescription medicines and
227	227	7 drugs" does not include grooming and hygiene products. For
228	228	8 purposes of this Section, "grooming and hygiene products"
229	229	9 includes, but is not limited to, soaps and cleaning solutions,
230	230	10 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
231	231	11 lotions and screens, unless those products are available by
232	232	12 prescription only, regardless of whether the products meet the
233	233	13 definition of "over-the-counter-drugs". For the purposes of
234	234	14 this paragraph, "over-the-counter-drug" means a drug for human
235	235	15 use that contains a label that identifies the product as a drug
236	236	16 as required by 21 CFR C.F.R. 201.66. The
237	237	17 "over-the-counter-drug" label includes:
238	238	18 (A) a A "Drug Facts" panel; or
239	239	19 (B) a A statement of the "active ingredient(s)" with a
240	240	20 list of those ingredients contained in the compound,
241	241	21 substance or preparation.
242	242	22 Beginning on January 1, 2014 (the effective date of Public
243	243	23 Act 98-122) this amendatory Act of the 98th General Assembly,
244	244	24 "prescription and nonprescription medicines and drugs"
245	245	25 includes medical cannabis purchased from a registered
246	246	26 dispensing organization under the Compassionate Use of Medical
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257	257	1 Cannabis Program Act.
258	258	2 As used in this Section, "adult use cannabis" means
259	259	3 cannabis subject to tax under the Cannabis Cultivation
260	260	4 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
261	261	5 and does not include cannabis subject to tax under the
262	262	6 Compassionate Use of Medical Cannabis Program Act.
263	263	7 If the property that is purchased at retail from a
264	264	8 retailer is acquired outside Illinois and used outside
265	265	9 Illinois before being brought to Illinois for use here and is
266	266	10 taxable under this Act, the "selling price" on which the tax is
267	267	11 computed shall be reduced by an amount that represents a
268	268	12 reasonable allowance for depreciation for the period of prior
269	269	13 out-of-state use.
270	270	14 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
271	271	15 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.
272	272	16 4-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;
273	273	17 102-700, Article 65, Section 65-5, eff. 4-19-22; revised
274	274	18 5-27-22.)
275	275	19 Section 10. The Service Use Tax Act is amended by changing
276	276	20 Sections 3-10 and 9 as follows:
277	277	21 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
278	278	22 Sec. 3-10. Rate of tax. Unless otherwise provided in this
279	279	23 Section, the tax imposed by this Act is at the rate of 6.25% of
280	280	24 the selling price of tangible personal property transferred as
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291	291	1 an incident to the sale of service, but, for the purpose of
292	292	2 computing this tax, in no event shall the selling price be less
293	293	3 than the cost price of the property to the serviceman.
294	294	4 Beginning on July 1, 2000 and through December 31, 2000,
295	295	5 with respect to motor fuel, as defined in Section 1.1 of the
296	296	6 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
297	297	7 the Use Tax Act, the tax is imposed at the rate of 1.25%.
298	298	8 With respect to gasohol, as defined in the Use Tax Act, the
299	299	9 tax imposed by this Act applies to (i) 70% of the selling price
300	300	10 of property transferred as an incident to the sale of service
301	301	11 on or after January 1, 1990, and before July 1, 2003, (ii) 80%
302	302	12 of the selling price of property transferred as an incident to
303	303	13 the sale of service on or after July 1, 2003 and on or before
304	304	14 July 1, 2017, and (iii) 100% of the selling price thereafter.
305	305	15 If, at any time, however, the tax under this Act on sales of
306	306	16 gasohol, as defined in the Use Tax Act, is imposed at the rate
307	307	17 of 1.25%, then the tax imposed by this Act applies to 100% of
308	308	18 the proceeds of sales of gasohol made during that time.
309	309	19 With respect to majority blended ethanol fuel, as defined
310	310	20 in the Use Tax Act, the tax imposed by this Act does not apply
311	311	21 to the selling price of property transferred as an incident to
312	312	22 the sale of service on or after July 1, 2003 and on or before
313	313	23 December 31, 2023 but applies to 100% of the selling price
314	314	24 thereafter.
315	315	25 With respect to biodiesel blends, as defined in the Use
316	316	26 Tax Act, with no less than 1% and no more than 10% biodiesel,
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327	327	1 the tax imposed by this Act applies to (i) 80% of the selling
328	328	2 price of property transferred as an incident to the sale of
329	329	3 service on or after July 1, 2003 and on or before December 31,
330	330	4 2018 and (ii) 100% of the proceeds of the selling price after
331	331	5 December 31, 2018 and before January 1, 2024. On and after
332	332	6 January 1, 2024 and on or before December 31, 2030, the
333	333	7 taxation of biodiesel, renewable diesel, and biodiesel blends
334	334	8 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
335	335	9 at any time, however, the tax under this Act on sales of
336	336	10 biodiesel blends, as defined in the Use Tax Act, with no less
337	337	11 than 1% and no more than 10% biodiesel is imposed at the rate
338	338	12 of 1.25%, then the tax imposed by this Act applies to 100% of
339	339	13 the proceeds of sales of biodiesel blends with no less than 1%
340	340	14 and no more than 10% biodiesel made during that time.
341	341	15 With respect to biodiesel, as defined in the Use Tax Act,
342	342	16 and biodiesel blends, as defined in the Use Tax Act, with more
343	343	17 than 10% but no more than 99% biodiesel, the tax imposed by
344	344	18 this Act does not apply to the proceeds of the selling price of
345	345	19 property transferred as an incident to the sale of service on
346	346	20 or after July 1, 2003 and on or before December 31, 2023. On
347	347	21 and after January 1, 2024 and on or before December 31, 2030,
348	348	22 the taxation of biodiesel, renewable diesel, and biodiesel
349	349	23 blends shall be as provided in Section 3-5.1 of the Use Tax
350	350	24 Act.
351	351	25 At the election of any registered serviceman made for each
352	352	26 fiscal year, sales of service in which the aggregate annual
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363	363	1 cost price of tangible personal property transferred as an
364	364	2 incident to the sales of service is less than 35%, or 75% in
365	365	3 the case of servicemen transferring prescription drugs or
366	366	4 servicemen engaged in graphic arts production, of the
367	367	5 aggregate annual total gross receipts from all sales of
368	368	6 service, the tax imposed by this Act shall be based on the
369	369	7 serviceman's cost price of the tangible personal property
370	370	8 transferred as an incident to the sale of those services.
371	371	9 Until July 1, 2022 and beginning again on July 1, 2023, the
372	372	10 tax shall be imposed at the rate of 1% on food prepared for
373	373	11 immediate consumption and transferred incident to a sale of
374	374	12 service subject to this Act or the Service Occupation Tax Act
375	375	13 by an entity licensed under the Hospital Licensing Act, the
376	376	14 Nursing Home Care Act, the Assisted Living and Shared Housing
377	377	15 Act, the ID/DD Community Care Act, the MC/DD Act, the
378	378	16 Specialized Mental Health Rehabilitation Act of 2013, or the
379	379	17 Child Care Act of 1969, or an entity that holds a permit issued
380	380	18 pursuant to the Life Care Facilities Act. Until July 1, 2022
381	381	19 and beginning again on July 1, 2023, the tax shall also be
382	382	20 imposed at the rate of 1% on food for human consumption that is
383	383	21 to be consumed off the premises where it is sold (other than
384	384	22 alcoholic beverages, food consisting of or infused with adult
385	385	23 use cannabis, soft drinks, and food that has been prepared for
386	386	24 immediate consumption and is not otherwise included in this
387	387	25 paragraph).
388	388	26 Beginning on July 1, 2022 and until July 1, 2023, the tax
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399	399	1 shall be imposed at the rate of 0% on food prepared for
400	400	2 immediate consumption and transferred incident to a sale of
401	401	3 service subject to this Act or the Service Occupation Tax Act
402	402	4 by an entity licensed under the Hospital Licensing Act, the
403	403	5 Nursing Home Care Act, the Assisted Living and Shared Housing
404	404	6 Act, the ID/DD Community Care Act, the MC/DD Act, the
405	405	7 Specialized Mental Health Rehabilitation Act of 2013, or the
406	406	8 Child Care Act of 1969, or an entity that holds a permit issued
407	407	9 pursuant to the Life Care Facilities Act. Beginning on July 1,
408	408	10 2022 and until July 1, 2023, the tax shall also be imposed at
409	409	11 the rate of 0% on food for human consumption that is to be
410	410	12 consumed off the premises where it is sold (other than
411	411	13 alcoholic beverages, food consisting of or infused with adult
412	412	14 use cannabis, soft drinks, and food that has been prepared for
413	413	15 immediate consumption and is not otherwise included in this
414	414	16 paragraph).
415	415	17 The tax shall also be imposed at the rate of 1% on
416	416	18 prescription and nonprescription medicines, drugs, medical
417	417	19 appliances, products classified as Class III medical devices
418	418	20 by the United States Food and Drug Administration that are
419	419	21 used for cancer treatment pursuant to a prescription, as well
420	420	22 as any accessories and components related to those devices,
421	421	23 modifications to a motor vehicle for the purpose of rendering
422	422	24 it usable by a person with a disability, diapers, baby wipes,
423	423	25 and insulin, blood sugar testing materials, syringes, and
424	424	26 needles used by human diabetics. For the purposes of this
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431	431
432	432
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435	435	1 Section, until September 1, 2009: the term "soft drinks" means
436	436	2 any complete, finished, ready-to-use, non-alcoholic drink,
437	437	3 whether carbonated or not, including, but not limited to, soda
438	438	4 water, cola, fruit juice, vegetable juice, carbonated water,
439	439	5 and all other preparations commonly known as soft drinks of
440	440	6 whatever kind or description that are contained in any closed
441	441	7 or sealed bottle, can, carton, or container, regardless of
442	442	8 size; but "soft drinks" does not include coffee, tea,
443	443	9 non-carbonated water, infant formula, milk or milk products as
444	444	10 defined in the Grade A Pasteurized Milk and Milk Products Act,
445	445	11 or drinks containing 50% or more natural fruit or vegetable
446	446	12 juice.
447	447	13 Notwithstanding any other provisions of this Act,
448	448	14 beginning September 1, 2009, "soft drinks" means non-alcoholic
449	449	15 beverages that contain natural or artificial sweeteners. "Soft
450	450	16 drinks" does do not include beverages that contain milk or
451	451	17 milk products, soy, rice or similar milk substitutes, or
452	452	18 greater than 50% of vegetable or fruit juice by volume.
453	453	19 Until August 1, 2009, and notwithstanding any other
454	454	20 provisions of this Act, "food for human consumption that is to
455	455	21 be consumed off the premises where it is sold" includes all
456	456	22 food sold through a vending machine, except soft drinks and
457	457	23 food products that are dispensed hot from a vending machine,
458	458	24 regardless of the location of the vending machine. Beginning
459	459	25 August 1, 2009, and notwithstanding any other provisions of
460	460	26 this Act, "food for human consumption that is to be consumed
461	461
462	462
463	463
464	464
465	465
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467	467
468	468
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470	470	HB3475 - 13 - LRB103 26897 HLH 53261 b
471	471	1 off the premises where it is sold" includes all food sold
472	472	2 through a vending machine, except soft drinks, candy, and food
473	473	3 products that are dispensed hot from a vending machine,
474	474	4 regardless of the location of the vending machine.
475	475	5 Notwithstanding any other provisions of this Act,
476	476	6 beginning September 1, 2009, "food for human consumption that
477	477	7 is to be consumed off the premises where it is sold" does not
478	478	8 include candy. For purposes of this Section, "candy" means a
479	479	9 preparation of sugar, honey, or other natural or artificial
480	480	10 sweeteners in combination with chocolate, fruits, nuts or
481	481	11 other ingredients or flavorings in the form of bars, drops, or
482	482	12 pieces. "Candy" does not include any preparation that contains
483	483	13 flour or requires refrigeration.
484	484	14 Notwithstanding any other provisions of this Act,
485	485	15 beginning September 1, 2009, "nonprescription medicines and
486	486	16 drugs" does not include grooming and hygiene products. For
487	487	17 purposes of this Section, "grooming and hygiene products"
488	488	18 includes, but is not limited to, soaps and cleaning solutions,
489	489	19 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
490	490	20 lotions and screens, unless those products are available by
491	491	21 prescription only, regardless of whether the products meet the
492	492	22 definition of "over-the-counter-drugs". For the purposes of
493	493	23 this paragraph, "over-the-counter-drug" means a drug for human
494	494	24 use that contains a label that identifies the product as a drug
495	495	25 as required by 21 CFR C.F.R. 201.66. The
496	496	26 "over-the-counter-drug" label includes:
497	497
498	498
499	499
500	500
501	501
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503	503
504	504
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506	506	HB3475 - 14 - LRB103 26897 HLH 53261 b
507	507	1 (A) a A "Drug Facts" panel; or
508	508	2 (B) a A statement of the "active ingredient(s)" with a
509	509	3 list of those ingredients contained in the compound,
510	510	4 substance or preparation.
511	511	5 Beginning on January 1, 2014 (the effective date of Public
512	512	6 Act 98-122), "prescription and nonprescription medicines and
513	513	7 drugs" includes medical cannabis purchased from a registered
514	514	8 dispensing organization under the Compassionate Use of Medical
515	515	9 Cannabis Program Act.
516	516	10 As used in this Section, "adult use cannabis" means
517	517	11 cannabis subject to tax under the Cannabis Cultivation
518	518	12 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
519	519	13 and does not include cannabis subject to tax under the
520	520	14 Compassionate Use of Medical Cannabis Program Act.
521	521	15 If the property that is acquired from a serviceman is
522	522	16 acquired outside Illinois and used outside Illinois before
523	523	17 being brought to Illinois for use here and is taxable under
524	524	18 this Act, the "selling price" on which the tax is computed
525	525	19 shall be reduced by an amount that represents a reasonable
526	526	20 allowance for depreciation for the period of prior
527	527	21 out-of-state use.
528	528	22 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
529	529	23 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
530	530	24 20, Section 20-10, eff. 4-19-22; 102-700, Article 60, Section
531	531	25 60-20, eff. 4-19-22; revised 6-1-22.)
532	532
533	533
534	534
535	535
536	536
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538	538
539	539
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541	541	HB3475 - 15 - LRB103 26897 HLH 53261 b
542	542	1 Section 15. The Service Occupation Tax Act is amended by
543	543	2 changing Sections 3-10 and 9 as follows:
544	544	3 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
545	545	4 Sec. 3-10. Rate of tax. Unless otherwise provided in this
546	546	5 Section, the tax imposed by this Act is at the rate of 6.25% of
547	547	6 the "selling price", as defined in Section 2 of the Service Use
548	548	7 Tax Act, of the tangible personal property. For the purpose of
549	549	8 computing this tax, in no event shall the "selling price" be
550	550	9 less than the cost price to the serviceman of the tangible
551	551	10 personal property transferred. The selling price of each item
552	552	11 of tangible personal property transferred as an incident of a
553	553	12 sale of service may be shown as a distinct and separate item on
554	554	13 the serviceman's billing to the service customer. If the
555	555	14 selling price is not so shown, the selling price of the
556	556	15 tangible personal property is deemed to be 50% of the
557	557	16 serviceman's entire billing to the service customer. When,
558	558	17 however, a serviceman contracts to design, develop, and
559	559	18 produce special order machinery or equipment, the tax imposed
560	560	19 by this Act shall be based on the serviceman's cost price of
561	561	20 the tangible personal property transferred incident to the
562	562	21 completion of the contract.
563	563	22 Beginning on July 1, 2000 and through December 31, 2000,
564	564	23 with respect to motor fuel, as defined in Section 1.1 of the
565	565	24 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
566	566	25 the Use Tax Act, the tax is imposed at the rate of 1.25%.
567	567
568	568
569	569
570	570
571	571
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573	573
574	574
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577	577	1 With respect to gasohol, as defined in the Use Tax Act, the
578	578	2 tax imposed by this Act shall apply to (i) 70% of the cost
579	579	3 price of property transferred as an incident to the sale of
580	580	4 service on or after January 1, 1990, and before July 1, 2003,
581	581	5 (ii) 80% of the selling price of property transferred as an
582	582	6 incident to the sale of service on or after July 1, 2003 and on
583	583	7 or before July 1, 2017, and (iii) 100% of the cost price
584	584	8 thereafter. If, at any time, however, the tax under this Act on
585	585	9 sales of gasohol, as defined in the Use Tax Act, is imposed at
586	586	10 the rate of 1.25%, then the tax imposed by this Act applies to
587	587	11 100% of the proceeds of sales of gasohol made during that time.
588	588	12 With respect to majority blended ethanol fuel, as defined
589	589	13 in the Use Tax Act, the tax imposed by this Act does not apply
590	590	14 to the selling price of property transferred as an incident to
591	591	15 the sale of service on or after July 1, 2003 and on or before
592	592	16 December 31, 2023 but applies to 100% of the selling price
593	593	17 thereafter.
594	594	18 With respect to biodiesel blends, as defined in the Use
595	595	19 Tax Act, with no less than 1% and no more than 10% biodiesel,
596	596	20 the tax imposed by this Act applies to (i) 80% of the selling
597	597	21 price of property transferred as an incident to the sale of
598	598	22 service on or after July 1, 2003 and on or before December 31,
599	599	23 2018 and (ii) 100% of the proceeds of the selling price after
600	600	24 December 31, 2018 and before January 1, 2024. On and after
601	601	25 January 1, 2024 and on or before December 31, 2030, the
602	602	26 taxation of biodiesel, renewable diesel, and biodiesel blends
603	603
604	604
605	605
606	606
607	607
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609	609
610	610
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612	612	HB3475 - 17 - LRB103 26897 HLH 53261 b
613	613	1 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
614	614	2 at any time, however, the tax under this Act on sales of
615	615	3 biodiesel blends, as defined in the Use Tax Act, with no less
616	616	4 than 1% and no more than 10% biodiesel is imposed at the rate
617	617	5 of 1.25%, then the tax imposed by this Act applies to 100% of
618	618	6 the proceeds of sales of biodiesel blends with no less than 1%
619	619	7 and no more than 10% biodiesel made during that time.
620	620	8 With respect to biodiesel, as defined in the Use Tax Act,
621	621	9 and biodiesel blends, as defined in the Use Tax Act, with more
622	622	10 than 10% but no more than 99% biodiesel material, the tax
623	623	11 imposed by this Act does not apply to the proceeds of the
624	624	12 selling price of property transferred as an incident to the
625	625	13 sale of service on or after July 1, 2003 and on or before
626	626	14 December 31, 2023. On and after January 1, 2024 and on or
627	627	15 before December 31, 2030, the taxation of biodiesel, renewable
628	628	16 diesel, and biodiesel blends shall be as provided in Section
629	629	17 3-5.1 of the Use Tax Act.
630	630	18 At the election of any registered serviceman made for each
631	631	19 fiscal year, sales of service in which the aggregate annual
632	632	20 cost price of tangible personal property transferred as an
633	633	21 incident to the sales of service is less than 35%, or 75% in
634	634	22 the case of servicemen transferring prescription drugs or
635	635	23 servicemen engaged in graphic arts production, of the
636	636	24 aggregate annual total gross receipts from all sales of
637	637	25 service, the tax imposed by this Act shall be based on the
638	638	26 serviceman's cost price of the tangible personal property
639	639
640	640
641	641
642	642
643	643
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645	645
646	646
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648	648	HB3475 - 18 - LRB103 26897 HLH 53261 b
649	649	1 transferred incident to the sale of those services.
650	650	2 Until July 1, 2022 and beginning again on July 1, 2023, the
651	651	3 tax shall be imposed at the rate of 1% on food prepared for
652	652	4 immediate consumption and transferred incident to a sale of
653	653	5 service subject to this Act or the Service Use Tax Act by an
654	654	6 entity licensed under the Hospital Licensing Act, the Nursing
655	655	7 Home Care Act, the Assisted Living and Shared Housing Act, the
656	656	8 ID/DD Community Care Act, the MC/DD Act, the Specialized
657	657	9 Mental Health Rehabilitation Act of 2013, or the Child Care
658	658	10 Act of 1969, or an entity that holds a permit issued pursuant
659	659	11 to the Life Care Facilities Act. Until July 1, 2022 and
660	660	12 beginning again on July 1, 2023, the tax shall also be imposed
661	661	13 at the rate of 1% on food for human consumption that is to be
662	662	14 consumed off the premises where it is sold (other than
663	663	15 alcoholic beverages, food consisting of or infused with adult
664	664	16 use cannabis, soft drinks, and food that has been prepared for
665	665	17 immediate consumption and is not otherwise included in this
666	666	18 paragraph).
667	667	19 Beginning on July 1, 2022 and until July 1, 2023, the tax
668	668	20 shall be imposed at the rate of 0% on food prepared for
669	669	21 immediate consumption and transferred incident to a sale of
670	670	22 service subject to this Act or the Service Use Tax Act by an
671	671	23 entity licensed under the Hospital Licensing Act, the Nursing
672	672	24 Home Care Act, the Assisted Living and Shared Housing Act, the
673	673	25 ID/DD Community Care Act, the MC/DD Act, the Specialized
674	674	26 Mental Health Rehabilitation Act of 2013, or the Child Care
675	675
676	676
677	677
678	678
679	679
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681	681
682	682
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684	684	HB3475 - 19 - LRB103 26897 HLH 53261 b
685	685	1 Act of 1969, or an entity that holds a permit issued pursuant
686	686	2 to the Life Care Facilities Act. Beginning July 1, 2022 and
687	687	3 until July 1, 2023, the tax shall also be imposed at the rate
688	688	4 of 0% on food for human consumption that is to be consumed off
689	689	5 the premises where it is sold (other than alcoholic beverages,
690	690	6 food consisting of or infused with adult use cannabis, soft
691	691	7 drinks, and food that has been prepared for immediate
692	692	8 consumption and is not otherwise included in this paragraph).
693	693	9 The tax shall also be imposed at the rate of 1% on
694	694	10 prescription and nonprescription medicines, drugs, medical
695	695	11 appliances, products classified as Class III medical devices
696	696	12 by the United States Food and Drug Administration that are
697	697	13 used for cancer treatment pursuant to a prescription, as well
698	698	14 as any accessories and components related to those devices,
699	699	15 modifications to a motor vehicle for the purpose of rendering
700	700	16 it usable by a person with a disability, diapers, baby wipes,
701	701	17 and insulin, blood sugar testing materials, syringes, and
702	702	18 needles used by human diabetics. For the purposes of this
703	703	19 Section, until September 1, 2009: the term "soft drinks" means
704	704	20 any complete, finished, ready-to-use, non-alcoholic drink,
705	705	21 whether carbonated or not, including, but not limited to, soda
706	706	22 water, cola, fruit juice, vegetable juice, carbonated water,
707	707	23 and all other preparations commonly known as soft drinks of
708	708	24 whatever kind or description that are contained in any closed
709	709	25 or sealed can, carton, or container, regardless of size; but
710	710	26 "soft drinks" does not include coffee, tea, non-carbonated
711	711
712	712
713	713
714	714
715	715
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717	717
718	718
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721	721	1 water, infant formula, milk or milk products as defined in the
722	722	2 Grade A Pasteurized Milk and Milk Products Act, or drinks
723	723	3 containing 50% or more natural fruit or vegetable juice.
724	724	4 Notwithstanding any other provisions of this Act,
725	725	5 beginning September 1, 2009, "soft drinks" means non-alcoholic
726	726	6 beverages that contain natural or artificial sweeteners. "Soft
727	727	7 drinks" does do not include beverages that contain milk or
728	728	8 milk products, soy, rice or similar milk substitutes, or
729	729	9 greater than 50% of vegetable or fruit juice by volume.
730	730	10 Until August 1, 2009, and notwithstanding any other
731	731	11 provisions of this Act, "food for human consumption that is to
732	732	12 be consumed off the premises where it is sold" includes all
733	733	13 food sold through a vending machine, except soft drinks and
734	734	14 food products that are dispensed hot from a vending machine,
735	735	15 regardless of the location of the vending machine. Beginning
736	736	16 August 1, 2009, and notwithstanding any other provisions of
737	737	17 this Act, "food for human consumption that is to be consumed
738	738	18 off the premises where it is sold" includes all food sold
739	739	19 through a vending machine, except soft drinks, candy, and food
740	740	20 products that are dispensed hot from a vending machine,
741	741	21 regardless of the location of the vending machine.
742	742	22 Notwithstanding any other provisions of this Act,
743	743	23 beginning September 1, 2009, "food for human consumption that
744	744	24 is to be consumed off the premises where it is sold" does not
745	745	25 include candy. For purposes of this Section, "candy" means a
746	746	26 preparation of sugar, honey, or other natural or artificial
747	747
748	748
749	749
750	750
751	751
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753	753
754	754
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756	756	HB3475 - 21 - LRB103 26897 HLH 53261 b
757	757	1 sweeteners in combination with chocolate, fruits, nuts or
758	758	2 other ingredients or flavorings in the form of bars, drops, or
759	759	3 pieces. "Candy" does not include any preparation that contains
760	760	4 flour or requires refrigeration.
761	761	5 Notwithstanding any other provisions of this Act,
762	762	6 beginning September 1, 2009, "nonprescription medicines and
763	763	7 drugs" does not include grooming and hygiene products. For
764	764	8 purposes of this Section, "grooming and hygiene products"
765	765	9 includes, but is not limited to, soaps and cleaning solutions,
766	766	10 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
767	767	11 lotions and screens, unless those products are available by
768	768	12 prescription only, regardless of whether the products meet the
769	769	13 definition of "over-the-counter-drugs". For the purposes of
770	770	14 this paragraph, "over-the-counter-drug" means a drug for human
771	771	15 use that contains a label that identifies the product as a drug
772	772	16 as required by 21 CFR C.F.R. 201.66. The
773	773	17 "over-the-counter-drug" label includes:
774	774	18 (A) a A "Drug Facts" panel; or
775	775	19 (B) a A statement of the "active ingredient(s)" with a
776	776	20 list of those ingredients contained in the compound,
777	777	21 substance or preparation.
778	778	22 Beginning on January 1, 2014 (the effective date of Public
779	779	23 Act 98-122), "prescription and nonprescription medicines and
780	780	24 drugs" includes medical cannabis purchased from a registered
781	781	25 dispensing organization under the Compassionate Use of Medical
782	782	26 Cannabis Program Act.
783	783
784	784
785	785
786	786
787	787
788	788	HB3475 - 21 - LRB103 26897 HLH 53261 b
789	789
790	790
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792	792	HB3475 - 22 - LRB103 26897 HLH 53261 b
793	793	1 As used in this Section, "adult use cannabis" means
794	794	2 cannabis subject to tax under the Cannabis Cultivation
795	795	3 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
796	796	4 and does not include cannabis subject to tax under the
797	797	5 Compassionate Use of Medical Cannabis Program Act.
798	798	6 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
799	799	7 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
800	800	8 20, Section 20-15, eff. 4-19-22; 102-700, Article 60, Section
801	801	9 60-25, eff. 4-19-22; revised 6-1-22.)
802	802	10 Section 20. The Retailers' Occupation Tax Act is amended
803	803	11 by changing Sections 2-10 and 3 as follows:
804	804	12 (35 ILCS 120/2-10)
805	805	13 Sec. 2-10. Rate of tax. Unless otherwise provided in this
806	806	14 Section, the tax imposed by this Act is at the rate of 6.25% of
807	807	15 gross receipts from sales of tangible personal property made
808	808	16 in the course of business.
809	809	17 Beginning on July 1, 2000 and through December 31, 2000,
810	810	18 with respect to motor fuel, as defined in Section 1.1 of the
811	811	19 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
812	812	20 the Use Tax Act, the tax is imposed at the rate of 1.25%.
813	813	21 Beginning on August 6, 2010 through August 15, 2010, and
814	814	22 beginning again on August 5, 2022 through August 14, 2022,
815	815	23 with respect to sales tax holiday items as defined in Section
816	816	24 2-8 of this Act, the tax is imposed at the rate of 1.25%.
817	817
818	818
819	819
820	820
821	821
822	822	HB3475 - 22 - LRB103 26897 HLH 53261 b
823	823
824	824
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826	826	HB3475 - 23 - LRB103 26897 HLH 53261 b
827	827	1 Within 14 days after July 1, 2000 (the effective date of
828	828	2 Public Act 91-872) this amendatory Act of the 91st General
829	829	3 Assembly, each retailer of motor fuel and gasohol shall cause
830	830	4 the following notice to be posted in a prominently visible
831	831	5 place on each retail dispensing device that is used to
832	832	6 dispense motor fuel or gasohol in the State of Illinois: "As of
833	833	7 July 1, 2000, the State of Illinois has eliminated the State's
834	834	8 share of sales tax on motor fuel and gasohol through December
835	835	9 31, 2000. The price on this pump should reflect the
836	836	10 elimination of the tax." The notice shall be printed in bold
837	837	11 print on a sign that is no smaller than 4 inches by 8 inches.
838	838	12 The sign shall be clearly visible to customers. Any retailer
839	839	13 who fails to post or maintain a required sign through December
840	840	14 31, 2000 is guilty of a petty offense for which the fine shall
841	841	15 be $500 per day per each retail premises where a violation
842	842	16 occurs.
843	843	17 With respect to gasohol, as defined in the Use Tax Act, the
844	844	18 tax imposed by this Act applies to (i) 70% of the proceeds of
845	845	19 sales made on or after January 1, 1990, and before July 1,
846	846	20 2003, (ii) 80% of the proceeds of sales made on or after July
847	847	21 1, 2003 and on or before July 1, 2017, and (iii) 100% of the
848	848	22 proceeds of sales made thereafter. If, at any time, however,
849	849	23 the tax under this Act on sales of gasohol, as defined in the
850	850	24 Use Tax Act, is imposed at the rate of 1.25%, then the tax
851	851	25 imposed by this Act applies to 100% of the proceeds of sales of
852	852	26 gasohol made during that time.
853	853
854	854
855	855
856	856
857	857
858	858	HB3475 - 23 - LRB103 26897 HLH 53261 b
859	859
860	860
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862	862	HB3475 - 24 - LRB103 26897 HLH 53261 b
863	863	1 With respect to majority blended ethanol fuel, as defined
864	864	2 in the Use Tax Act, the tax imposed by this Act does not apply
865	865	3 to the proceeds of sales made on or after July 1, 2003 and on
866	866	4 or before December 31, 2023 but applies to 100% of the proceeds
867	867	5 of sales made thereafter.
868	868	6 With respect to biodiesel blends, as defined in the Use
869	869	7 Tax Act, with no less than 1% and no more than 10% biodiesel,
870	870	8 the tax imposed by this Act applies to (i) 80% of the proceeds
871	871	9 of sales made on or after July 1, 2003 and on or before
872	872	10 December 31, 2018 and (ii) 100% of the proceeds of sales made
873	873	11 after December 31, 2018 and before January 1, 2024. On and
874	874	12 after January 1, 2024 and on or before December 31, 2030, the
875	875	13 taxation of biodiesel, renewable diesel, and biodiesel blends
876	876	14 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
877	877	15 at any time, however, the tax under this Act on sales of
878	878	16 biodiesel blends, as defined in the Use Tax Act, with no less
879	879	17 than 1% and no more than 10% biodiesel is imposed at the rate
880	880	18 of 1.25%, then the tax imposed by this Act applies to 100% of
881	881	19 the proceeds of sales of biodiesel blends with no less than 1%
882	882	20 and no more than 10% biodiesel made during that time.
883	883	21 With respect to biodiesel, as defined in the Use Tax Act,
884	884	22 and biodiesel blends, as defined in the Use Tax Act, with more
885	885	23 than 10% but no more than 99% biodiesel, the tax imposed by
886	886	24 this Act does not apply to the proceeds of sales made on or
887	887	25 after July 1, 2003 and on or before December 31, 2023. On and
888	888	26 after January 1, 2024 and on or before December 31, 2030, the
889	889
890	890
891	891
892	892
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895	895
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899	899	1 taxation of biodiesel, renewable diesel, and biodiesel blends
900	900	2 shall be as provided in Section 3-5.1 of the Use Tax Act.
901	901	3 Until July 1, 2022 and beginning again on July 1, 2023,
902	902	4 with respect to food for human consumption that is to be
903	903	5 consumed off the premises where it is sold (other than
904	904	6 alcoholic beverages, food consisting of or infused with adult
905	905	7 use cannabis, soft drinks, and food that has been prepared for
906	906	8 immediate consumption), the tax is imposed at the rate of 1%.
907	907	9 Beginning July 1, 2022 and until July 1, 2023, with respect to
908	908	10 food for human consumption that is to be consumed off the
909	909	11 premises where it is sold (other than alcoholic beverages,
910	910	12 food consisting of or infused with adult use cannabis, soft
911	911	13 drinks, and food that has been prepared for immediate
912	912	14 consumption), the tax is imposed at the rate of 0%.
913	913	15 With respect to prescription and nonprescription
914	914	16 medicines, drugs, medical appliances, products classified as
915	915	17 Class III medical devices by the United States Food and Drug
916	916	18 Administration that are used for cancer treatment pursuant to
917	917	19 a prescription, as well as any accessories and components
918	918	20 related to those devices, modifications to a motor vehicle for
919	919	21 the purpose of rendering it usable by a person with a
920	920	22 disability, diapers, baby wipes, and insulin, blood sugar
921	921	23 testing materials, syringes, and needles used by human
922	922	24 diabetics, the tax is imposed at the rate of 1%. For the
923	923	25 purposes of this Section, until September 1, 2009: the term
924	924	26 "soft drinks" means any complete, finished, ready-to-use,
925	925
926	926
927	927
928	928
929	929
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935	935	1 non-alcoholic drink, whether carbonated or not, including, but
936	936	2 not limited to, soda water, cola, fruit juice, vegetable
937	937	3 juice, carbonated water, and all other preparations commonly
938	938	4 known as soft drinks of whatever kind or description that are
939	939	5 contained in any closed or sealed bottle, can, carton, or
940	940	6 container, regardless of size; but "soft drinks" does not
941	941	7 include coffee, tea, non-carbonated water, infant formula,
942	942	8 milk or milk products as defined in the Grade A Pasteurized
943	943	9 Milk and Milk Products Act, or drinks containing 50% or more
944	944	10 natural fruit or vegetable juice.
945	945	11 Notwithstanding any other provisions of this Act,
946	946	12 beginning September 1, 2009, "soft drinks" means non-alcoholic
947	947	13 beverages that contain natural or artificial sweeteners. "Soft
948	948	14 drinks" does do not include beverages that contain milk or
949	949	15 milk products, soy, rice or similar milk substitutes, or
950	950	16 greater than 50% of vegetable or fruit juice by volume.
951	951	17 Until August 1, 2009, and notwithstanding any other
952	952	18 provisions of this Act, "food for human consumption that is to
953	953	19 be consumed off the premises where it is sold" includes all
954	954	20 food sold through a vending machine, except soft drinks and
955	955	21 food products that are dispensed hot from a vending machine,
956	956	22 regardless of the location of the vending machine. Beginning
957	957	23 August 1, 2009, and notwithstanding any other provisions of
958	958	24 this Act, "food for human consumption that is to be consumed
959	959	25 off the premises where it is sold" includes all food sold
960	960	26 through a vending machine, except soft drinks, candy, and food
961	961
962	962
963	963
964	964
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967	967
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971	971	1 products that are dispensed hot from a vending machine,
972	972	2 regardless of the location of the vending machine.
973	973	3 Notwithstanding any other provisions of this Act,
974	974	4 beginning September 1, 2009, "food for human consumption that
975	975	5 is to be consumed off the premises where it is sold" does not
976	976	6 include candy. For purposes of this Section, "candy" means a
977	977	7 preparation of sugar, honey, or other natural or artificial
978	978	8 sweeteners in combination with chocolate, fruits, nuts or
979	979	9 other ingredients or flavorings in the form of bars, drops, or
980	980	10 pieces. "Candy" does not include any preparation that contains
981	981	11 flour or requires refrigeration.
982	982	12 Notwithstanding any other provisions of this Act,
983	983	13 beginning September 1, 2009, "nonprescription medicines and
984	984	14 drugs" does not include grooming and hygiene products. For
985	985	15 purposes of this Section, "grooming and hygiene products"
986	986	16 includes, but is not limited to, soaps and cleaning solutions,
987	987	17 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
988	988	18 lotions and screens, unless those products are available by
989	989	19 prescription only, regardless of whether the products meet the
990	990	20 definition of "over-the-counter-drugs". For the purposes of
991	991	21 this paragraph, "over-the-counter-drug" means a drug for human
992	992	22 use that contains a label that identifies the product as a drug
993	993	23 as required by 21 CFR C.F.R. 201.66. The
994	994	24 "over-the-counter-drug" label includes:
995	995	25 (A) a A "Drug Facts" panel; or
996	996	26 (B) a A statement of the "active ingredient(s)" with a
997	997
998	998
999	999
1000	1000
1001	1001
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1003	1003
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1007	1007	1 list of those ingredients contained in the compound,
1008	1008	2 substance or preparation.
1009	1009	3 Beginning on January 1, 2014 (the effective date of Public
1010	1010	4 Act 98-122) this amendatory Act of the 98th General Assembly,
1011	1011	5 "prescription and nonprescription medicines and drugs"
1012	1012	6 includes medical cannabis purchased from a registered
1013	1013	7 dispensing organization under the Compassionate Use of Medical
1014	1014	8 Cannabis Program Act.
1015	1015	9 As used in this Section, "adult use cannabis" means
1016	1016	10 cannabis subject to tax under the Cannabis Cultivation
1017	1017	11 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
1018	1018	12 and does not include cannabis subject to tax under the
1019	1019	13 Compassionate Use of Medical Cannabis Program Act.
1020	1020	14 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
1021	1021	15 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff.
1022	1022	16 4-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22;
1023	1023	17 102-700, Article 65, Section 65-10, eff. 4-19-22; revised
1024	1024	18 6-1-22.)
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