Illinois 2023-2024 Regular Session

Illinois House Bill HB3670 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 HB3670 Introduced , by Rep. Joyce Mason SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-10 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-10 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, with respect to diapers and infant formula, the tax is imposed under these Acts at the rate of 1%. LRB103 27090 HLH 53458 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3670 Introduced , by Rep. Joyce Mason 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. Provides that, with respect to diapers and infant formula, the tax is imposed under these Acts at the rate of 1%. LRB103 27090 HLH 53458 b LRB103 27090 HLH 53458 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3670 Introduced , by Rep. Joyce Mason 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. Provides that, with respect to diapers and infant formula, the tax is imposed under these Acts at the rate of 1%.
9	9	LRB103 27090 HLH 53458 b LRB103 27090 HLH 53458 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 Section
18	18	5 3-10 as follows:
19	19	6 (35 ILCS 105/3-10)
20	20	7 Sec. 3-10. Rate of tax. Unless otherwise provided in this
21	21	8 Section, the tax imposed by this Act is at the rate of 6.25% of
22	22	9 either the selling price or the fair market value, if any, of
23	23	10 the tangible personal property. In all cases where property
24	24	11 functionally used or consumed is the same as the property that
25	25	12 was purchased at retail, then the tax is imposed on the selling
26	26	13 price of the property. In all cases where property
27	27	14 functionally used or consumed is a by-product or waste product
28	28	15 that has been refined, manufactured, or produced from property
29	29	16 purchased at retail, then the tax is imposed on the lower of
30	30	17 the fair market value, if any, of the specific property so used
31	31	18 in this State or on the selling price of the property purchased
32	32	19 at retail. For purposes of this Section "fair market value"
33	33	20 means the price at which property would change hands between a
34	34	21 willing buyer and a willing seller, neither being under any
35	35	22 compulsion to buy or sell and both having reasonable knowledge
36	36	23 of the relevant facts. The fair market value shall be
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40	40	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3670 Introduced , by Rep. Joyce Mason 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. Provides that, with respect to diapers and infant formula, the tax is imposed under these Acts at the rate of 1%.
47	47	LRB103 27090 HLH 53458 b LRB103 27090 HLH 53458 b
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49	49	A BILL FOR
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55	55	35 ILCS 105/3-10
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, and insulin, blood sugar testing materials,
164	164	16 syringes, and needles used by human diabetics, the tax is
165	165	17 imposed at the rate of 1%. For the purposes of this Section,
166	166	18 until September 1, 2009: the term "soft drinks" means any
167	167	19 complete, finished, ready-to-use, non-alcoholic drink, whether
168	168	20 carbonated or not, including, but not limited to, soda water,
169	169	21 cola, fruit juice, vegetable juice, carbonated water, and all
170	170	22 other preparations commonly known as soft drinks of whatever
171	171	23 kind or description that are contained in any closed or sealed
172	172	24 bottle, can, carton, or container, regardless of size; but
173	173	25 "soft drinks" does not include coffee, tea, non-carbonated
174	174	26 water, infant formula, milk or milk products as defined in the
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185	185	1 Grade A Pasteurized Milk and Milk Products Act, or drinks
186	186	2 containing 50% or more natural fruit or vegetable juice.
187	187	3 Notwithstanding any other provisions of this Act,
188	188	4 beginning September 1, 2009, "soft drinks" means non-alcoholic
189	189	5 beverages that contain natural or artificial sweeteners. "Soft
190	190	6 drinks" does do not include beverages that contain milk or
191	191	7 milk products, soy, rice or similar milk substitutes, or
192	192	8 greater than 50% of vegetable or fruit juice by volume.
193	193	9 Until August 1, 2009, and notwithstanding any other
194	194	10 provisions of this Act, "food for human consumption that is to
195	195	11 be consumed off the premises where it is sold" includes all
196	196	12 food sold through a vending machine, except soft drinks and
197	197	13 food products that are dispensed hot from a vending machine,
198	198	14 regardless of the location of the vending machine. Beginning
199	199	15 August 1, 2009, and notwithstanding any other provisions of
200	200	16 this Act, "food for human consumption that is to be consumed
201	201	17 off the premises where it is sold" includes all food sold
202	202	18 through a vending machine, except soft drinks, candy, and food
203	203	19 products that are dispensed hot from a vending machine,
204	204	20 regardless of the location of the vending machine.
205	205	21 Notwithstanding any other provisions of this Act,
206	206	22 beginning September 1, 2009, "food for human consumption that
207	207	23 is to be consumed off the premises where it is sold" does not
208	208	24 include candy. For purposes of this Section, "candy" means a
209	209	25 preparation of sugar, honey, or other natural or artificial
210	210	26 sweeteners in combination with chocolate, fruits, nuts or
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221	221	1 other ingredients or flavorings in the form of bars, drops, or
222	222	2 pieces. "Candy" does not include any preparation that contains
223	223	3 flour or requires refrigeration.
224	224	4 Notwithstanding any other provisions of this Act,
225	225	5 beginning September 1, 2009, "nonprescription medicines and
226	226	6 drugs" does not include grooming and hygiene products. For
227	227	7 purposes of this Section, "grooming and hygiene products"
228	228	8 includes, but is not limited to, soaps and cleaning solutions,
229	229	9 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
230	230	10 lotions and screens, unless those products are available by
231	231	11 prescription only, regardless of whether the products meet the
232	232	12 definition of "over-the-counter-drugs". For the purposes of
233	233	13 this paragraph, "over-the-counter-drug" means a drug for human
234	234	14 use that contains a label that identifies the product as a drug
235	235	15 as required by 21 CFR C.F.R. 201.66. The
236	236	16 "over-the-counter-drug" label includes:
237	237	17 (A) a A "Drug Facts" panel; or
238	238	18 (B) a A statement of the "active ingredient(s)" with a
239	239	19 list of those ingredients contained in the compound,
240	240	20 substance or preparation.
241	241	21 Beginning on January 1, 2014 (the effective date of Public
242	242	22 Act 98-122) this amendatory Act of the 98th General Assembly,
243	243	23 "prescription and nonprescription medicines and drugs"
244	244	24 includes medical cannabis purchased from a registered
245	245	25 dispensing organization under the Compassionate Use of Medical
246	246	26 Cannabis Program Act.
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257	257	1 As used in this Section, "adult use cannabis" means
258	258	2 cannabis subject to tax under the Cannabis Cultivation
259	259	3 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
260	260	4 and does not include cannabis subject to tax under the
261	261	5 Compassionate Use of Medical Cannabis Program Act.
262	262	6 Beginning on the effective date of this amendatory Act of
263	263	7 the 103rd General Assembly, with respect to diapers and infant
264	264	8 formula, the tax is imposed at the rate of 1%. As used in this
265	265	9 Section, "infant formula" means a food which purports to be or
266	266	10 is represented for special dietary use solely as a food for
267	267	11 infants by reason of its simulation of human milk or its
268	268	12 suitability as a complete or partial substitute for human
269	269	13 milk.
270	270	14 If the property that is purchased at retail from a
271	271	15 retailer is acquired outside Illinois and used outside
272	272	16 Illinois before being brought to Illinois for use here and is
273	273	17 taxable under this Act, the "selling price" on which the tax is
274	274	18 computed shall be reduced by an amount that represents a
275	275	19 reasonable allowance for depreciation for the period of prior
276	276	20 out-of-state use.
277	277	21 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
278	278	22 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.
279	279	23 4-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;
280	280	24 102-700, Article 65, Section 65-5, eff. 4-19-22; revised
281	281	25 5-27-22.)
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292	292	1 Section 10. The Service Use Tax Act is amended by changing
293	293	2 Section 3-10 as follows:
294	294	3 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
295	295	4 Sec. 3-10. Rate of tax. Unless otherwise provided in this
296	296	5 Section, the tax imposed by this Act is at the rate of 6.25% of
297	297	6 the selling price of tangible personal property transferred as
298	298	7 an incident to the sale of service, but, for the purpose of
299	299	8 computing this tax, in no event shall the selling price be less
300	300	9 than the cost price of the property to the serviceman.
301	301	10 Beginning on July 1, 2000 and through December 31, 2000,
302	302	11 with respect to motor fuel, as defined in Section 1.1 of the
303	303	12 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
304	304	13 the Use Tax Act, the tax is imposed at the rate of 1.25%.
305	305	14 With respect to gasohol, as defined in the Use Tax Act, the
306	306	15 tax imposed by this Act applies to (i) 70% of the selling price
307	307	16 of property transferred as an incident to the sale of service
308	308	17 on or after January 1, 1990, and before July 1, 2003, (ii) 80%
309	309	18 of the selling price of property transferred as an incident to
310	310	19 the sale of service on or after July 1, 2003 and on or before
311	311	20 July 1, 2017, and (iii) 100% of the selling price thereafter.
312	312	21 If, at any time, however, the tax under this Act on sales of
313	313	22 gasohol, as defined in the Use Tax Act, is imposed at the rate
314	314	23 of 1.25%, then the tax imposed by this Act applies to 100% of
315	315	24 the proceeds of sales of gasohol made during that time.
316	316	25 With respect to majority blended ethanol fuel, as defined
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327	327	1 in the Use Tax Act, the tax imposed by this Act does not apply
328	328	2 to the selling price of property transferred as an incident to
329	329	3 the sale of service on or after July 1, 2003 and on or before
330	330	4 December 31, 2023 but applies to 100% of the selling price
331	331	5 thereafter.
332	332	6 With respect to biodiesel blends, as defined in the Use
333	333	7 Tax Act, with no less than 1% and no more than 10% biodiesel,
334	334	8 the tax imposed by this Act applies to (i) 80% of the selling
335	335	9 price of property transferred as an incident to the sale of
336	336	10 service on or after July 1, 2003 and on or before December 31,
337	337	11 2018 and (ii) 100% of the proceeds of the selling price after
338	338	12 December 31, 2018 and before January 1, 2024. On and after
339	339	13 January 1, 2024 and on or before December 31, 2030, the
340	340	14 taxation of biodiesel, renewable diesel, and biodiesel blends
341	341	15 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
342	342	16 at any time, however, the tax under this Act on sales of
343	343	17 biodiesel blends, as defined in the Use Tax Act, with no less
344	344	18 than 1% and no more than 10% biodiesel is imposed at the rate
345	345	19 of 1.25%, then the tax imposed by this Act applies to 100% of
346	346	20 the proceeds of sales of biodiesel blends with no less than 1%
347	347	21 and no more than 10% biodiesel made during that time.
348	348	22 With respect to biodiesel, as defined in the Use Tax Act,
349	349	23 and biodiesel blends, as defined in the Use Tax Act, with more
350	350	24 than 10% but no more than 99% biodiesel, the tax imposed by
351	351	25 this Act does not apply to the proceeds of the selling price of
352	352	26 property transferred as an incident to the sale of service on
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363	363	1 or after July 1, 2003 and on or before December 31, 2023. On
364	364	2 and after January 1, 2024 and on or before December 31, 2030,
365	365	3 the taxation of biodiesel, renewable diesel, and biodiesel
366	366	4 blends shall be as provided in Section 3-5.1 of the Use Tax
367	367	5 Act.
368	368	6 At the election of any registered serviceman made for each
369	369	7 fiscal year, sales of service in which the aggregate annual
370	370	8 cost price of tangible personal property transferred as an
371	371	9 incident to the sales of service is less than 35%, or 75% in
372	372	10 the case of servicemen transferring prescription drugs or
373	373	11 servicemen engaged in graphic arts production, of the
374	374	12 aggregate annual total gross receipts from all sales of
375	375	13 service, the tax imposed by this Act shall be based on the
376	376	14 serviceman's cost price of the tangible personal property
377	377	15 transferred as an incident to the sale of those services.
378	378	16 Until July 1, 2022 and beginning again on July 1, 2023, the
379	379	17 tax shall be imposed at the rate of 1% on food prepared for
380	380	18 immediate consumption and transferred incident to a sale of
381	381	19 service subject to this Act or the Service Occupation Tax Act
382	382	20 by an entity licensed under the Hospital Licensing Act, the
383	383	21 Nursing Home Care Act, the Assisted Living and Shared Housing
384	384	22 Act, the ID/DD Community Care Act, the MC/DD Act, the
385	385	23 Specialized Mental Health Rehabilitation Act of 2013, or the
386	386	24 Child Care Act of 1969, or an entity that holds a permit issued
387	387	25 pursuant to the Life Care Facilities Act. Until July 1, 2022
388	388	26 and beginning again on July 1, 2023, the tax shall also be
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399	399	1 imposed at the rate of 1% on food for human consumption that is
400	400	2 to be consumed off the premises where it is sold (other than
401	401	3 alcoholic beverages, food consisting of or infused with adult
402	402	4 use cannabis, soft drinks, and food that has been prepared for
403	403	5 immediate consumption and is not otherwise included in this
404	404	6 paragraph).
405	405	7 Beginning on July 1, 2022 and until July 1, 2023, the tax
406	406	8 shall be imposed at the rate of 0% on food prepared for
407	407	9 immediate consumption and transferred incident to a sale of
408	408	10 service subject to this Act or the Service Occupation Tax Act
409	409	11 by an entity licensed under the Hospital Licensing Act, the
410	410	12 Nursing Home Care Act, the Assisted Living and Shared Housing
411	411	13 Act, the ID/DD Community Care Act, the MC/DD Act, the
412	412	14 Specialized Mental Health Rehabilitation Act of 2013, or the
413	413	15 Child Care Act of 1969, or an entity that holds a permit issued
414	414	16 pursuant to the Life Care Facilities Act. Beginning on July 1,
415	415	17 2022 and until July 1, 2023, the tax shall also be imposed at
416	416	18 the rate of 0% on food for human consumption that is to be
417	417	19 consumed off the premises where it is sold (other than
418	418	20 alcoholic beverages, food consisting of or infused with adult
419	419	21 use cannabis, soft drinks, and food that has been prepared for
420	420	22 immediate consumption and is not otherwise included in this
421	421	23 paragraph).
422	422	24 The tax shall also be imposed at the rate of 1% on
423	423	25 prescription and nonprescription medicines, drugs, medical
424	424	26 appliances, products classified as Class III medical devices
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434	434	HB3670 - 12 - LRB103 27090 HLH 53458 b
435	435	1 by the United States Food and Drug Administration that are
436	436	2 used for cancer treatment pursuant to a prescription, as well
437	437	3 as any accessories and components related to those devices,
438	438	4 modifications to a motor vehicle for the purpose of rendering
439	439	5 it usable by a person with a disability, and insulin, blood
440	440	6 sugar testing materials, syringes, and needles used by human
441	441	7 diabetics. For the purposes of this Section, until September
442	442	8 1, 2009: the term "soft drinks" means any complete, finished,
443	443	9 ready-to-use, non-alcoholic drink, whether carbonated or not,
444	444	10 including, but not limited to, soda water, cola, fruit juice,
445	445	11 vegetable juice, carbonated water, and all other preparations
446	446	12 commonly known as soft drinks of whatever kind or description
447	447	13 that are contained in any closed or sealed bottle, can,
448	448	14 carton, or container, regardless of size; but "soft drinks"
449	449	15 does not include coffee, tea, non-carbonated water, infant
450	450	16 formula, milk or milk products as defined in the Grade A
451	451	17 Pasteurized Milk and Milk Products Act, or drinks containing
452	452	18 50% or more natural fruit or vegetable juice.
453	453	19 Notwithstanding any other provisions of this Act,
454	454	20 beginning September 1, 2009, "soft drinks" means non-alcoholic
455	455	21 beverages that contain natural or artificial sweeteners. "Soft
456	456	22 drinks" does do not include beverages that contain milk or
457	457	23 milk products, soy, rice or similar milk substitutes, or
458	458	24 greater than 50% of vegetable or fruit juice by volume.
459	459	25 Until August 1, 2009, and notwithstanding any other
460	460	26 provisions of this Act, "food for human consumption that is to
461	461
462	462
463	463
464	464
465	465
466	466	HB3670 - 12 - LRB103 27090 HLH 53458 b
467	467
468	468
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470	470	HB3670 - 13 - LRB103 27090 HLH 53458 b
471	471	1 be consumed off the premises where it is sold" includes all
472	472	2 food sold through a vending machine, except soft drinks and
473	473	3 food products that are dispensed hot from a vending machine,
474	474	4 regardless of the location of the vending machine. Beginning
475	475	5 August 1, 2009, and notwithstanding any other provisions of
476	476	6 this Act, "food for human consumption that is to be consumed
477	477	7 off the premises where it is sold" includes all food sold
478	478	8 through a vending machine, except soft drinks, candy, and food
479	479	9 products that are dispensed hot from a vending machine,
480	480	10 regardless of the location of the vending machine.
481	481	11 Notwithstanding any other provisions of this Act,
482	482	12 beginning September 1, 2009, "food for human consumption that
483	483	13 is to be consumed off the premises where it is sold" does not
484	484	14 include candy. For purposes of this Section, "candy" means a
485	485	15 preparation of sugar, honey, or other natural or artificial
486	486	16 sweeteners in combination with chocolate, fruits, nuts or
487	487	17 other ingredients or flavorings in the form of bars, drops, or
488	488	18 pieces. "Candy" does not include any preparation that contains
489	489	19 flour or requires refrigeration.
490	490	20 Notwithstanding any other provisions of this Act,
491	491	21 beginning September 1, 2009, "nonprescription medicines and
492	492	22 drugs" does not include grooming and hygiene products. For
493	493	23 purposes of this Section, "grooming and hygiene products"
494	494	24 includes, but is not limited to, soaps and cleaning solutions,
495	495	25 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
496	496	26 lotions and screens, unless those products are available by
497	497
498	498
499	499
500	500
501	501
502	502	HB3670 - 13 - LRB103 27090 HLH 53458 b
503	503
504	504
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506	506	HB3670 - 14 - LRB103 27090 HLH 53458 b
507	507	1 prescription only, regardless of whether the products meet the
508	508	2 definition of "over-the-counter-drugs". For the purposes of
509	509	3 this paragraph, "over-the-counter-drug" means a drug for human
510	510	4 use that contains a label that identifies the product as a drug
511	511	5 as required by 21 CFR C.F.R. 201.66. The
512	512	6 "over-the-counter-drug" label includes:
513	513	7 (A) a A "Drug Facts" panel; or
514	514	8 (B) a A statement of the "active ingredient(s)" with a
515	515	9 list of those ingredients contained in the compound,
516	516	10 substance or preparation.
517	517	11 Beginning on January 1, 2014 (the effective date of Public
518	518	12 Act 98-122), "prescription and nonprescription medicines and
519	519	13 drugs" includes medical cannabis purchased from a registered
520	520	14 dispensing organization under the Compassionate Use of Medical
521	521	15 Cannabis Program Act.
522	522	16 As used in this Section, "adult use cannabis" means
523	523	17 cannabis subject to tax under the Cannabis Cultivation
524	524	18 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
525	525	19 and does not include cannabis subject to tax under the
526	526	20 Compassionate Use of Medical Cannabis Program Act.
527	527	21 Beginning on the effective date of this amendatory Act of
528	528	22 the 103rd General Assembly, with respect to diapers and infant
529	529	23 formula, the tax is imposed at the rate of 1%. As used in this
530	530	24 Section, "infant formula" means a food which purports to be or
531	531	25 is represented for special dietary use solely as a food for
532	532	26 infants by reason of its simulation of human milk or its
533	533
534	534
535	535
536	536
537	537
538	538	HB3670 - 14 - LRB103 27090 HLH 53458 b
539	539
540	540
541	541	HB3670- 15 -LRB103 27090 HLH 53458 b HB3670 - 15 - LRB103 27090 HLH 53458 b
542	542	HB3670 - 15 - LRB103 27090 HLH 53458 b
543	543	1 suitability as a complete or partial substitute for human
544	544	2 milk.
545	545	3 If the property that is acquired from a serviceman is
546	546	4 acquired outside Illinois and used outside Illinois before
547	547	5 being brought to Illinois for use here and is taxable under
548	548	6 this Act, the "selling price" on which the tax is computed
549	549	7 shall be reduced by an amount that represents a reasonable
550	550	8 allowance for depreciation for the period of prior
551	551	9 out-of-state use.
552	552	10 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
553	553	11 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
554	554	12 20, Section 20-10, eff. 4-19-22; 102-700, Article 60, Section
555	555	13 60-20, eff. 4-19-22; revised 6-1-22.)
556	556	14 Section 15. The Service Occupation Tax Act is amended by
557	557	15 changing Section 3-10 as follows:
558	558	16 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
559	559	17 Sec. 3-10. Rate of tax. Unless otherwise provided in this
560	560	18 Section, the tax imposed by this Act is at the rate of 6.25% of
561	561	19 the "selling price", as defined in Section 2 of the Service Use
562	562	20 Tax Act, of the tangible personal property. For the purpose of
563	563	21 computing this tax, in no event shall the "selling price" be
564	564	22 less than the cost price to the serviceman of the tangible
565	565	23 personal property transferred. The selling price of each item
566	566	24 of tangible personal property transferred as an incident of a
567	567
568	568
569	569
570	570
571	571
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573	573
574	574
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576	576	HB3670 - 16 - LRB103 27090 HLH 53458 b
577	577	1 sale of service may be shown as a distinct and separate item on
578	578	2 the serviceman's billing to the service customer. If the
579	579	3 selling price is not so shown, the selling price of the
580	580	4 tangible personal property is deemed to be 50% of the
581	581	5 serviceman's entire billing to the service customer. When,
582	582	6 however, a serviceman contracts to design, develop, and
583	583	7 produce special order machinery or equipment, the tax imposed
584	584	8 by this Act shall be based on the serviceman's cost price of
585	585	9 the tangible personal property transferred incident to the
586	586	10 completion of the contract.
587	587	11 Beginning on July 1, 2000 and through December 31, 2000,
588	588	12 with respect to motor fuel, as defined in Section 1.1 of the
589	589	13 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
590	590	14 the Use Tax Act, the tax is imposed at the rate of 1.25%.
591	591	15 With respect to gasohol, as defined in the Use Tax Act, the
592	592	16 tax imposed by this Act shall apply to (i) 70% of the cost
593	593	17 price of property transferred as an incident to the sale of
594	594	18 service on or after January 1, 1990, and before July 1, 2003,
595	595	19 (ii) 80% of the selling price of property transferred as an
596	596	20 incident to the sale of service on or after July 1, 2003 and on
597	597	21 or before July 1, 2017, and (iii) 100% of the cost price
598	598	22 thereafter. If, at any time, however, the tax under this Act on
599	599	23 sales of gasohol, as defined in the Use Tax Act, is imposed at
600	600	24 the rate of 1.25%, then the tax imposed by this Act applies to
601	601	25 100% of the proceeds of sales of gasohol made during that time.
602	602	26 With respect to majority blended ethanol fuel, as defined
603	603
604	604
605	605
606	606
607	607
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609	609
610	610
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612	612	HB3670 - 17 - LRB103 27090 HLH 53458 b
613	613	1 in the Use Tax Act, the tax imposed by this Act does not apply
614	614	2 to the selling price of property transferred as an incident to
615	615	3 the sale of service on or after July 1, 2003 and on or before
616	616	4 December 31, 2023 but applies to 100% of the selling price
617	617	5 thereafter.
618	618	6 With respect to biodiesel blends, as defined in the Use
619	619	7 Tax Act, with no less than 1% and no more than 10% biodiesel,
620	620	8 the tax imposed by this Act applies to (i) 80% of the selling
621	621	9 price of property transferred as an incident to the sale of
622	622	10 service on or after July 1, 2003 and on or before December 31,
623	623	11 2018 and (ii) 100% of the proceeds of the selling price after
624	624	12 December 31, 2018 and before January 1, 2024. On and after
625	625	13 January 1, 2024 and on or before December 31, 2030, the
626	626	14 taxation of biodiesel, renewable diesel, and biodiesel blends
627	627	15 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
628	628	16 at any time, however, the tax under this Act on sales of
629	629	17 biodiesel blends, as defined in the Use Tax Act, with no less
630	630	18 than 1% and no more than 10% biodiesel is imposed at the rate
631	631	19 of 1.25%, then the tax imposed by this Act applies to 100% of
632	632	20 the proceeds of sales of biodiesel blends with no less than 1%
633	633	21 and no more than 10% biodiesel made during that time.
634	634	22 With respect to biodiesel, as defined in the Use Tax Act,
635	635	23 and biodiesel blends, as defined in the Use Tax Act, with more
636	636	24 than 10% but no more than 99% biodiesel material, the tax
637	637	25 imposed by this Act does not apply to the proceeds of the
638	638	26 selling price of property transferred as an incident to the
639	639
640	640
641	641
642	642
643	643
644	644	HB3670 - 17 - LRB103 27090 HLH 53458 b
645	645
646	646
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648	648	HB3670 - 18 - LRB103 27090 HLH 53458 b
649	649	1 sale of service on or after July 1, 2003 and on or before
650	650	2 December 31, 2023. On and after January 1, 2024 and on or
651	651	3 before December 31, 2030, the taxation of biodiesel, renewable
652	652	4 diesel, and biodiesel blends shall be as provided in Section
653	653	5 3-5.1 of the Use Tax Act.
654	654	6 At the election of any registered serviceman made for each
655	655	7 fiscal year, sales of service in which the aggregate annual
656	656	8 cost price of tangible personal property transferred as an
657	657	9 incident to the sales of service is less than 35%, or 75% in
658	658	10 the case of servicemen transferring prescription drugs or
659	659	11 servicemen engaged in graphic arts production, of the
660	660	12 aggregate annual total gross receipts from all sales of
661	661	13 service, the tax imposed by this Act shall be based on the
662	662	14 serviceman's cost price of the tangible personal property
663	663	15 transferred incident to the sale of those services.
664	664	16 Until July 1, 2022 and beginning again on July 1, 2023, the
665	665	17 tax shall be imposed at the rate of 1% on food prepared for
666	666	18 immediate consumption and transferred incident to a sale of
667	667	19 service subject to this Act or the Service Use Tax Act by an
668	668	20 entity licensed under the Hospital Licensing Act, the Nursing
669	669	21 Home Care Act, the Assisted Living and Shared Housing Act, the
670	670	22 ID/DD Community Care Act, the MC/DD Act, the Specialized
671	671	23 Mental Health Rehabilitation Act of 2013, or the Child Care
672	672	24 Act of 1969, or an entity that holds a permit issued pursuant
673	673	25 to the Life Care Facilities Act. Until July 1, 2022 and
674	674	26 beginning again on July 1, 2023, the tax shall also be imposed
675	675
676	676
677	677
678	678
679	679
680	680	HB3670 - 18 - LRB103 27090 HLH 53458 b
681	681
682	682
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684	684	HB3670 - 19 - LRB103 27090 HLH 53458 b
685	685	1 at the rate of 1% on food for human consumption that is to be
686	686	2 consumed off the premises where it is sold (other than
687	687	3 alcoholic beverages, food consisting of or infused with adult
688	688	4 use cannabis, soft drinks, and food that has been prepared for
689	689	5 immediate consumption and is not otherwise included in this
690	690	6 paragraph).
691	691	7 Beginning on July 1, 2022 and until July 1, 2023, the tax
692	692	8 shall be imposed at the rate of 0% on food prepared for
693	693	9 immediate consumption and transferred incident to a sale of
694	694	10 service subject to this Act or the Service Use Tax Act by an
695	695	11 entity licensed under the Hospital Licensing Act, the Nursing
696	696	12 Home Care Act, the Assisted Living and Shared Housing Act, the
697	697	13 ID/DD Community Care Act, the MC/DD Act, the Specialized
698	698	14 Mental Health Rehabilitation Act of 2013, or the Child Care
699	699	15 Act of 1969, or an entity that holds a permit issued pursuant
700	700	16 to the Life Care Facilities Act. Beginning July 1, 2022 and
701	701	17 until July 1, 2023, the tax shall also be imposed at the rate
702	702	18 of 0% on food for human consumption that is to be consumed off
703	703	19 the premises where it is sold (other than alcoholic beverages,
704	704	20 food consisting of or infused with adult use cannabis, soft
705	705	21 drinks, and food that has been prepared for immediate
706	706	22 consumption and is not otherwise included in this paragraph).
707	707	23 The tax shall also be imposed at the rate of 1% on
708	708	24 prescription and nonprescription medicines, drugs, medical
709	709	25 appliances, products classified as Class III medical devices
710	710	26 by the United States Food and Drug Administration that are
711	711
712	712
713	713
714	714
715	715
716	716	HB3670 - 19 - LRB103 27090 HLH 53458 b
717	717
718	718
719	719	HB3670- 20 -LRB103 27090 HLH 53458 b HB3670 - 20 - LRB103 27090 HLH 53458 b
720	720	HB3670 - 20 - LRB103 27090 HLH 53458 b
721	721	1 used for cancer treatment pursuant to a prescription, as well
722	722	2 as any accessories and components related to those devices,
723	723	3 modifications to a motor vehicle for the purpose of rendering
724	724	4 it usable by a person with a disability, and insulin, blood
725	725	5 sugar testing materials, syringes, and needles used by human
726	726	6 diabetics. For the purposes of this Section, until September
727	727	7 1, 2009: the term "soft drinks" means any complete, finished,
728	728	8 ready-to-use, non-alcoholic drink, whether carbonated or not,
729	729	9 including, but not limited to, soda water, cola, fruit juice,
730	730	10 vegetable juice, carbonated water, and all other preparations
731	731	11 commonly known as soft drinks of whatever kind or description
732	732	12 that are contained in any closed or sealed can, carton, or
733	733	13 container, regardless of size; but "soft drinks" does not
734	734	14 include coffee, tea, non-carbonated water, infant formula,
735	735	15 milk or milk products as defined in the Grade A Pasteurized
736	736	16 Milk and Milk Products Act, or drinks containing 50% or more
737	737	17 natural fruit or vegetable juice.
738	738	18 Notwithstanding any other provisions of this Act,
739	739	19 beginning September 1, 2009, "soft drinks" means non-alcoholic
740	740	20 beverages that contain natural or artificial sweeteners. "Soft
741	741	21 drinks" does do not include beverages that contain milk or
742	742	22 milk products, soy, rice or similar milk substitutes, or
743	743	23 greater than 50% of vegetable or fruit juice by volume.
744	744	24 Until August 1, 2009, and notwithstanding any other
745	745	25 provisions of this Act, "food for human consumption that is to
746	746	26 be consumed off the premises where it is sold" includes all
747	747
748	748
749	749
750	750
751	751
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753	753
754	754
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756	756	HB3670 - 21 - LRB103 27090 HLH 53458 b
757	757	1 food sold through a vending machine, except soft drinks and
758	758	2 food products that are dispensed hot from a vending machine,
759	759	3 regardless of the location of the vending machine. Beginning
760	760	4 August 1, 2009, and notwithstanding any other provisions of
761	761	5 this Act, "food for human consumption that is to be consumed
762	762	6 off the premises where it is sold" includes all food sold
763	763	7 through a vending machine, except soft drinks, candy, and food
764	764	8 products that are dispensed hot from a vending machine,
765	765	9 regardless of the location of the vending machine.
766	766	10 Notwithstanding any other provisions of this Act,
767	767	11 beginning September 1, 2009, "food for human consumption that
768	768	12 is to be consumed off the premises where it is sold" does not
769	769	13 include candy. For purposes of this Section, "candy" means a
770	770	14 preparation of sugar, honey, or other natural or artificial
771	771	15 sweeteners in combination with chocolate, fruits, nuts or
772	772	16 other ingredients or flavorings in the form of bars, drops, or
773	773	17 pieces. "Candy" does not include any preparation that contains
774	774	18 flour or requires refrigeration.
775	775	19 Notwithstanding any other provisions of this Act,
776	776	20 beginning September 1, 2009, "nonprescription medicines and
777	777	21 drugs" does not include grooming and hygiene products. For
778	778	22 purposes of this Section, "grooming and hygiene products"
779	779	23 includes, but is not limited to, soaps and cleaning solutions,
780	780	24 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
781	781	25 lotions and screens, unless those products are available by
782	782	26 prescription only, regardless of whether the products meet the
783	783
784	784
785	785
786	786
787	787
788	788	HB3670 - 21 - LRB103 27090 HLH 53458 b
789	789
790	790
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792	792	HB3670 - 22 - LRB103 27090 HLH 53458 b
793	793	1 definition of "over-the-counter-drugs". For the purposes of
794	794	2 this paragraph, "over-the-counter-drug" means a drug for human
795	795	3 use that contains a label that identifies the product as a drug
796	796	4 as required by 21 CFR C.F.R. 201.66. The
797	797	5 "over-the-counter-drug" label includes:
798	798	6 (A) a A "Drug Facts" panel; or
799	799	7 (B) a A statement of the "active ingredient(s)" with a
800	800	8 list of those ingredients contained in the compound,
801	801	9 substance or preparation.
802	802	10 Beginning on January 1, 2014 (the effective date of Public
803	803	11 Act 98-122), "prescription and nonprescription medicines and
804	804	12 drugs" includes medical cannabis purchased from a registered
805	805	13 dispensing organization under the Compassionate Use of Medical
806	806	14 Cannabis Program Act.
807	807	15 As used in this Section, "adult use cannabis" means
808	808	16 cannabis subject to tax under the Cannabis Cultivation
809	809	17 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
810	810	18 and does not include cannabis subject to tax under the
811	811	19 Compassionate Use of Medical Cannabis Program Act.
812	812	20 Beginning on the effective date of this amendatory Act of
813	813	21 the 103rd General Assembly, with respect to diapers and infant
814	814	22 formula, the tax is imposed at the rate of 1%. As used in this
815	815	23 Section, "infant formula" means a food which purports to be or
816	816	24 is represented for special dietary use solely as a food for
817	817	25 infants by reason of its simulation of human milk or its
818	818	26 suitability as a complete or partial substitute for human
819	819
820	820
821	821
822	822
823	823
824	824	HB3670 - 22 - LRB103 27090 HLH 53458 b
825	825
826	826
827	827	HB3670- 23 -LRB103 27090 HLH 53458 b HB3670 - 23 - LRB103 27090 HLH 53458 b
828	828	HB3670 - 23 - LRB103 27090 HLH 53458 b
829	829	1 milk.
830	830	2 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
831	831	3 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
832	832	4 20, Section 20-15, eff. 4-19-22; 102-700, Article 60, Section
833	833	5 60-25, eff. 4-19-22; revised 6-1-22.)
834	834	6 Section 20. The Retailers' Occupation Tax Act is amended
835	835	7 by changing Section 2-10 as follows:
836	836	8 (35 ILCS 120/2-10)
837	837	9 Sec. 2-10. Rate of tax. Unless otherwise provided in this
838	838	10 Section, the tax imposed by this Act is at the rate of 6.25% of
839	839	11 gross receipts from sales of tangible personal property made
840	840	12 in the course of business.
841	841	13 Beginning on July 1, 2000 and through December 31, 2000,
842	842	14 with respect to motor fuel, as defined in Section 1.1 of the
843	843	15 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
844	844	16 the Use Tax Act, the tax is imposed at the rate of 1.25%.
845	845	17 Beginning on August 6, 2010 through August 15, 2010, and
846	846	18 beginning again on August 5, 2022 through August 14, 2022,
847	847	19 with respect to sales tax holiday items as defined in Section
848	848	20 2-8 of this Act, the tax is imposed at the rate of 1.25%.
849	849	21 Within 14 days after July 1, 2000 (the effective date of
850	850	22 Public Act 91-872) this amendatory Act of the 91st General
851	851	23 Assembly, each retailer of motor fuel and gasohol shall cause
852	852	24 the following notice to be posted in a prominently visible
853	853
854	854
855	855
856	856
857	857
858	858	HB3670 - 23 - LRB103 27090 HLH 53458 b
859	859
860	860
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862	862	HB3670 - 24 - LRB103 27090 HLH 53458 b
863	863	1 place on each retail dispensing device that is used to
864	864	2 dispense motor fuel or gasohol in the State of Illinois: "As of
865	865	3 July 1, 2000, the State of Illinois has eliminated the State's
866	866	4 share of sales tax on motor fuel and gasohol through December
867	867	5 31, 2000. The price on this pump should reflect the
868	868	6 elimination of the tax." The notice shall be printed in bold
869	869	7 print on a sign that is no smaller than 4 inches by 8 inches.
870	870	8 The sign shall be clearly visible to customers. Any retailer
871	871	9 who fails to post or maintain a required sign through December
872	872	10 31, 2000 is guilty of a petty offense for which the fine shall
873	873	11 be $500 per day per each retail premises where a violation
874	874	12 occurs.
875	875	13 With respect to gasohol, as defined in the Use Tax Act, the
876	876	14 tax imposed by this Act applies to (i) 70% of the proceeds of
877	877	15 sales made on or after January 1, 1990, and before July 1,
878	878	16 2003, (ii) 80% of the proceeds of sales made on or after July
879	879	17 1, 2003 and on or before July 1, 2017, and (iii) 100% of the
880	880	18 proceeds of sales made thereafter. If, at any time, however,
881	881	19 the tax under this Act on sales of gasohol, as defined in the
882	882	20 Use Tax Act, is imposed at the rate of 1.25%, then the tax
883	883	21 imposed by this Act applies to 100% of the proceeds of sales of
884	884	22 gasohol made during that time.
885	885	23 With respect to majority blended ethanol fuel, as defined
886	886	24 in the Use Tax Act, the tax imposed by this Act does not apply
887	887	25 to the proceeds of sales made on or after July 1, 2003 and on
888	888	26 or before December 31, 2023 but applies to 100% of the proceeds
889	889
890	890
891	891
892	892
893	893
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895	895
896	896
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899	899	1 of sales made thereafter.
900	900	2 With respect to biodiesel blends, as defined in the Use
901	901	3 Tax Act, with no less than 1% and no more than 10% biodiesel,
902	902	4 the tax imposed by this Act applies to (i) 80% of the proceeds
903	903	5 of sales made on or after July 1, 2003 and on or before
904	904	6 December 31, 2018 and (ii) 100% of the proceeds of sales made
905	905	7 after December 31, 2018 and before January 1, 2024. On and
906	906	8 after January 1, 2024 and on or before December 31, 2030, the
907	907	9 taxation of biodiesel, renewable diesel, and biodiesel blends
908	908	10 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
909	909	11 at any time, however, the tax under this Act on sales of
910	910	12 biodiesel blends, as defined in the Use Tax Act, with no less
911	911	13 than 1% and no more than 10% biodiesel is imposed at the rate
912	912	14 of 1.25%, then the tax imposed by this Act applies to 100% of
913	913	15 the proceeds of sales of biodiesel blends with no less than 1%
914	914	16 and no more than 10% biodiesel made during that time.
915	915	17 With respect to biodiesel, as defined in the Use Tax Act,
916	916	18 and biodiesel blends, as defined in the Use Tax Act, with more
917	917	19 than 10% but no more than 99% biodiesel, the tax imposed by
918	918	20 this Act does not apply to the proceeds of sales made on or
919	919	21 after July 1, 2003 and on or before December 31, 2023. On and
920	920	22 after January 1, 2024 and on or before December 31, 2030, the
921	921	23 taxation of biodiesel, renewable diesel, and biodiesel blends
922	922	24 shall be as provided in Section 3-5.1 of the Use Tax Act.
923	923	25 Until July 1, 2022 and beginning again on July 1, 2023,
924	924	26 with respect to food for human consumption that is to be
925	925
926	926
927	927
928	928
929	929
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931	931
932	932
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935	935	1 consumed off the premises where it is sold (other than
936	936	2 alcoholic beverages, food consisting of or infused with adult
937	937	3 use cannabis, soft drinks, and food that has been prepared for
938	938	4 immediate consumption), the tax is imposed at the rate of 1%.
939	939	5 Beginning July 1, 2022 and until July 1, 2023, with respect to
940	940	6 food for human consumption that is to be consumed off the
941	941	7 premises where it is sold (other than alcoholic beverages,
942	942	8 food consisting of or infused with adult use cannabis, soft
943	943	9 drinks, and food that has been prepared for immediate
944	944	10 consumption), the tax is imposed at the rate of 0%.
945	945	11 With respect to prescription and nonprescription
946	946	12 medicines, drugs, medical appliances, products classified as
947	947	13 Class III medical devices by the United States Food and Drug
948	948	14 Administration that are used for cancer treatment pursuant to
949	949	15 a prescription, as well as any accessories and components
950	950	16 related to those devices, modifications to a motor vehicle for
951	951	17 the purpose of rendering it usable by a person with a
952	952	18 disability, and insulin, blood sugar testing materials,
953	953	19 syringes, and needles used by human diabetics, the tax is
954	954	20 imposed at the rate of 1%. For the purposes of this Section,
955	955	21 until September 1, 2009: the term "soft drinks" means any
956	956	22 complete, finished, ready-to-use, non-alcoholic drink, whether
957	957	23 carbonated or not, including, but not limited to, soda water,
958	958	24 cola, fruit juice, vegetable juice, carbonated water, and all
959	959	25 other preparations commonly known as soft drinks of whatever
960	960	26 kind or description that are contained in any closed or sealed
961	961
962	962
963	963
964	964
965	965
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967	967
968	968
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971	971	1 bottle, can, carton, or container, regardless of size; but
972	972	2 "soft drinks" does not include coffee, tea, non-carbonated
973	973	3 water, infant formula, milk or milk products as defined in the
974	974	4 Grade A Pasteurized Milk and Milk Products Act, or drinks
975	975	5 containing 50% or more natural fruit or vegetable juice.
976	976	6 Notwithstanding any other provisions of this Act,
977	977	7 beginning September 1, 2009, "soft drinks" means non-alcoholic
978	978	8 beverages that contain natural or artificial sweeteners. "Soft
979	979	9 drinks" does do not include beverages that contain milk or
980	980	10 milk products, soy, rice or similar milk substitutes, or
981	981	11 greater than 50% of vegetable or fruit juice by volume.
982	982	12 Until August 1, 2009, and notwithstanding any other
983	983	13 provisions of this Act, "food for human consumption that is to
984	984	14 be consumed off the premises where it is sold" includes all
985	985	15 food sold through a vending machine, except soft drinks and
986	986	16 food products that are dispensed hot from a vending machine,
987	987	17 regardless of the location of the vending machine. Beginning
988	988	18 August 1, 2009, and notwithstanding any other provisions of
989	989	19 this Act, "food for human consumption that is to be consumed
990	990	20 off the premises where it is sold" includes all food sold
991	991	21 through a vending machine, except soft drinks, candy, and food
992	992	22 products that are dispensed hot from a vending machine,
993	993	23 regardless of the location of the vending machine.
994	994	24 Notwithstanding any other provisions of this Act,
995	995	25 beginning September 1, 2009, "food for human consumption that
996	996	26 is to be consumed off the premises where it is sold" does not
997	997
998	998
999	999
1000	1000
1001	1001
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1003	1003
1004	1004
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1007	1007	1 include candy. For purposes of this Section, "candy" means a
1008	1008	2 preparation of sugar, honey, or other natural or artificial
1009	1009	3 sweeteners in combination with chocolate, fruits, nuts or
1010	1010	4 other ingredients or flavorings in the form of bars, drops, or
1011	1011	5 pieces. "Candy" does not include any preparation that contains
1012	1012	6 flour or requires refrigeration.
1013	1013	7 Notwithstanding any other provisions of this Act,
1014	1014	8 beginning September 1, 2009, "nonprescription medicines and
1015	1015	9 drugs" does not include grooming and hygiene products. For
1016	1016	10 purposes of this Section, "grooming and hygiene products"
1017	1017	11 includes, but is not limited to, soaps and cleaning solutions,
1018	1018	12 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
1019	1019	13 lotions and screens, unless those products are available by
1020	1020	14 prescription only, regardless of whether the products meet the
1021	1021	15 definition of "over-the-counter-drugs". For the purposes of
1022	1022	16 this paragraph, "over-the-counter-drug" means a drug for human
1023	1023	17 use that contains a label that identifies the product as a drug
1024	1024	18 as required by 21 CFR C.F.R. 201.66. The
1025	1025	19 "over-the-counter-drug" label includes:
1026	1026	20 (A) a A "Drug Facts" panel; or
1027	1027	21 (B) a A statement of the "active ingredient(s)" with a
1028	1028	22 list of those ingredients contained in the compound,
1029	1029	23 substance or preparation.
1030	1030	24 Beginning on January 1, 2014 (the effective date of Public
1031	1031	25 Act 98-122) this amendatory Act of the 98th General Assembly,
1032	1032	26 "prescription and nonprescription medicines and drugs"
1033	1033
1034	1034
1035	1035
1036	1036
1037	1037
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1039	1039
1040	1040
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1043	1043	1 includes medical cannabis purchased from a registered
1044	1044	2 dispensing organization under the Compassionate Use of Medical
1045	1045	3 Cannabis Program Act.
1046	1046	4 As used in this Section, "adult use cannabis" means
1047	1047	5 cannabis subject to tax under the Cannabis Cultivation
1048	1048	6 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
1049	1049	7 and does not include cannabis subject to tax under the
1050	1050	8 Compassionate Use of Medical Cannabis Program Act.
1051	1051	9 Beginning on the effective date of this amendatory Act of
1052	1052	10 the 103rd General Assembly, with respect to diapers and infant
1053	1053	11 formula, the tax is imposed at the rate of 1%. As used in this
1054	1054	12 Section, "infant formula" means a food which purports to be or
1055	1055	13 is represented for special dietary use solely as a food for
1056	1056	14 infants by reason of its simulation of human milk or its
1057	1057	15 suitability as a complete or partial substitute for human
1058	1058	16 milk.
1059	1059	17 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
1060	1060	18 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff.
1061	1061	19 4-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22;
1062	1062	20 102-700, Article 65, Section 65-10, eff. 4-19-22; revised
1063	1063	21 6-1-22.)
1064	1064
1065	1065
1066	1066
1067	1067
1068	1068
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