Illinois 2023-2024 Regular Session

Illinois House Bill HB4307 Compare Versions

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

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4307 Introduced , by Rep. Paul Jacobs SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-1035 ILCS 110/3-10 from Ch. 120, par. 439.33-1035 ILCS 115/3-10 from Ch. 120, par. 439.103-1035 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%). Makes various formatting changes. LRB103 35634 HLH 65709 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4307 Introduced , by Rep. Paul Jacobs SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-1035 ILCS 110/3-10 from Ch. 120, par. 439.33-1035 ILCS 115/3-10 from Ch. 120, par. 439.103-1035 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%). Makes various formatting changes. LRB103 35634 HLH 65709 b LRB103 35634 HLH 65709 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4307 Introduced , by Rep. Paul Jacobs SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 105/3-1035 ILCS 110/3-10 from Ch. 120, par. 439.33-1035 ILCS 115/3-10 from Ch. 120, par. 439.103-1035 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%). Makes various formatting changes.
9	9	LRB103 35634 HLH 65709 b LRB103 35634 HLH 65709 b
10	10	LRB103 35634 HLH 65709 b
11	11	A BILL FOR
12	12	HB4307LRB103 35634 HLH 65709 b HB4307 LRB103 35634 HLH 65709 b
13	13	HB4307 LRB103 35634 HLH 65709 b
14	14	1 AN ACT concerning revenue.
15	15	2 Be it enacted by the People of the State of Illinois,
16	16	3 represented in the General Assembly:
17	17	4 Section 5. The Use Tax Act is amended by changing Section
18	18	5 3-10 as follows:
19	19	6 (35 ILCS 105/3-10)
20	20	7 Sec. 3-10. Rate of tax. Unless otherwise provided in this
21	21	8 Section, the tax imposed by this Act is at the rate of 6.25% of
22	22	9 either the selling price or the fair market value, if any, of
23	23	10 the tangible personal property. In all cases where property
24	24	11 functionally used or consumed is the same as the property that
25	25	12 was purchased at retail, then the tax is imposed on the selling
26	26	13 price of the property. In all cases where property
27	27	14 functionally used or consumed is a by-product or waste product
28	28	15 that has been refined, manufactured, or produced from property
29	29	16 purchased at retail, then the tax is imposed on the lower of
30	30	17 the fair market value, if any, of the specific property so used
31	31	18 in this State or on the selling price of the property purchased
32	32	19 at retail. For purposes of this Section "fair market value"
33	33	20 means the price at which property would change hands between a
34	34	21 willing buyer and a willing seller, neither being under any
35	35	22 compulsion to buy or sell and both having reasonable knowledge
36	36	23 of the relevant facts. The fair market value shall be
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40	40	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4307 Introduced , by Rep. Paul Jacobs SYNOPSIS AS INTRODUCED:
41	41	35 ILCS 105/3-1035 ILCS 110/3-10 from Ch. 120, par. 439.33-1035 ILCS 115/3-10 from Ch. 120, par. 439.103-1035 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%). Makes various formatting changes.
47	47	LRB103 35634 HLH 65709 b LRB103 35634 HLH 65709 b
48	48	LRB103 35634 HLH 65709 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, (iii) 100% of the proceeds of sales made
94	94	18 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
95	95	19 the proceeds of sales made on or after January 1, 2024 and on
96	96	20 or before December 31, 2028, and (v) 100% of the proceeds of
97	97	21 sales made after December 31, 2028. If, at any time, however,
98	98	22 the tax under this Act on sales of gasohol is imposed at the
99	99	23 rate of 1.25%, then the tax imposed by this Act applies to 100%
100	100	24 of the proceeds of sales of gasohol made during that time.
101	101	25 With respect to mid-range ethanol blends, the tax imposed
102	102	26 by this Act applies to (i) 80% of the proceeds of sales made on
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113	113	1 or after January 1, 2024 and on or before December 31, 2028 and
114	114	2 (ii) 100% of the proceeds of sales made thereafter. If, at any
115	115	3 time, however, the tax under this Act on sales of mid-range
116	116	4 ethanol blends is imposed at the rate of 1.25%, then the tax
117	117	5 imposed by this Act applies to 100% of the proceeds of sales of
118	118	6 mid-range ethanol blends made during that time.
119	119	7 With respect to majority blended ethanol fuel, the tax
120	120	8 imposed by this Act does not apply to the proceeds of sales
121	121	9 made on or after July 1, 2003 and on or before December 31,
122	122	10 2028 but applies to 100% of the proceeds of sales made
123	123	11 thereafter.
124	124	12 With respect to biodiesel blends with no less than 1% and
125	125	13 no more than 10% biodiesel, the tax imposed by this Act applies
126	126	14 to (i) 80% of the proceeds of sales made on or after July 1,
127	127	15 2003 and on or before December 31, 2018 and (ii) 100% of the
128	128	16 proceeds of sales made after December 31, 2018 and before
129	129	17 January 1, 2024. On and after January 1, 2024 and on or before
130	130	18 December 31, 2030, the taxation of biodiesel, renewable
131	131	19 diesel, and biodiesel blends shall be as provided in Section
132	132	20 3-5.1. If, at any time, however, the tax under this Act on
133	133	21 sales of biodiesel blends with no less than 1% and no more than
134	134	22 10% biodiesel is imposed at the rate of 1.25%, then the tax
135	135	23 imposed by this Act applies to 100% of the proceeds of sales of
136	136	24 biodiesel blends with no less than 1% and no more than 10%
137	137	25 biodiesel made during that time.
138	138	26 With respect to biodiesel and biodiesel blends with more
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149	149	1 than 10% but no more than 99% biodiesel, the tax imposed by
150	150	2 this Act does not apply to the proceeds of sales made on or
151	151	3 after July 1, 2003 and on or before December 31, 2023. On and
152	152	4 after January 1, 2024 and on or before December 31, 2030, the
153	153	5 taxation of biodiesel, renewable diesel, and biodiesel blends
154	154	6 shall be as provided in Section 3-5.1.
155	155	7 Until July 1, 2022 and beginning again on July 1, 2023,
156	156	8 with respect to food for human consumption that is to be
157	157	9 consumed off the premises where it is sold (other than
158	158	10 alcoholic beverages, food consisting of or infused with adult
159	159	11 use cannabis, soft drinks, and food that has been prepared for
160	160	12 immediate consumption), the tax is imposed at the rate of 1%.
161	161	13 Beginning on July 1, 2022 and until July 1, 2023, with respect
162	162	14 to food for human consumption that is to be consumed off the
163	163	15 premises where it is sold (other than alcoholic beverages,
164	164	16 food consisting of or infused with adult use cannabis, soft
165	165	17 drinks, and food that has been prepared for immediate
166	166	18 consumption), the tax is imposed at the rate of 0%.
167	167	19 With respect to prescription and nonprescription
168	168	20 medicines, drugs, medical appliances, products classified as
169	169	21 Class III medical devices by the United States Food and Drug
170	170	22 Administration that are used for cancer treatment pursuant to
171	171	23 a prescription, as well as any accessories and components
172	172	24 related to those devices, modifications to a motor vehicle for
173	173	25 the purpose of rendering it usable by a person with a
174	174	26 disability, and insulin, blood sugar testing materials,
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185	185	1 syringes, and needles used by human diabetics, the tax is
186	186	2 imposed at the rate of 1%.
187	187	3 With respect to the following items, the tax is imposed at
188	188	4 the rate of 1%:
189	189	5 (1) food for human consumption that is to be consumed
190	190	6 off the premises where it is sold (other than alcoholic
191	191	7 beverages, food consisting of or infused with adult use
192	192	8 cannabis, soft drinks, and food that has been prepared for
193	193	9 immediate consumption);
194	194	10 (2) prescription and nonprescription medicines, drugs,
195	195	11 and medical appliances;
196	196	12 (3) products classified as Class III medical devices
197	197	13 by the United States Food and Drug Administration that are
198	198	14 used for cancer treatment pursuant to a prescription, as
199	199	15 well as any accessories and components related to those
200	200	16 devices;
201	201	17 (4) modifications to a motor vehicle for the purpose
202	202	18 of rendering it usable by a person with a disability;
203	203	19 (5) insulin, blood sugar testing materials, syringes,
204	204	20 and needles used by human diabetics; and
205	205	21 (6) diapers and baby wipes.
206	206	22 For the purposes of this Section, until September 1, 2009:
207	207	23 the term "soft drinks" means any complete, finished,
208	208	24 ready-to-use, non-alcoholic drink, whether carbonated or not,
209	209	25 including, but not limited to, soda water, cola, fruit juice,
210	210	26 vegetable juice, carbonated water, and all other preparations
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221	221	1 commonly known as soft drinks of whatever kind or description
222	222	2 that are contained in any closed or sealed bottle, can,
223	223	3 carton, or container, regardless of size; but "soft drinks"
224	224	4 does not include coffee, tea, non-carbonated water, infant
225	225	5 formula, milk or milk products as defined in the Grade A
226	226	6 Pasteurized Milk and Milk Products Act, or drinks containing
227	227	7 50% or more natural fruit or vegetable juice.
228	228	8 Notwithstanding any other provisions of this Act,
229	229	9 beginning September 1, 2009, "soft drinks" means non-alcoholic
230	230	10 beverages that contain natural or artificial sweeteners. "Soft
231	231	11 drinks" does not include beverages that contain milk or milk
232	232	12 products, soy, rice or similar milk substitutes, or greater
233	233	13 than 50% of vegetable or fruit juice by volume.
234	234	14 Until August 1, 2009, and notwithstanding any other
235	235	15 provisions of this Act, "food for human consumption that is to
236	236	16 be consumed off the premises where it is sold" includes all
237	237	17 food sold through a vending machine, except soft drinks and
238	238	18 food products that are dispensed hot from a vending machine,
239	239	19 regardless of the location of the vending machine. Beginning
240	240	20 August 1, 2009, and notwithstanding any other provisions of
241	241	21 this Act, "food for human consumption that is to be consumed
242	242	22 off the premises where it is sold" includes all food sold
243	243	23 through a vending machine, except soft drinks, candy, and food
244	244	24 products that are dispensed hot from a vending machine,
245	245	25 regardless of the location of the vending machine.
246	246	26 Notwithstanding any other provisions of this Act,
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257	257	1 beginning September 1, 2009, "food for human consumption that
258	258	2 is to be consumed off the premises where it is sold" does not
259	259	3 include candy. For purposes of this Section, "candy" means a
260	260	4 preparation of sugar, honey, or other natural or artificial
261	261	5 sweeteners in combination with chocolate, fruits, nuts or
262	262	6 other ingredients or flavorings in the form of bars, drops, or
263	263	7 pieces. "Candy" does not include any preparation that contains
264	264	8 flour or requires refrigeration.
265	265	9 Notwithstanding any other provisions of this Act,
266	266	10 beginning September 1, 2009, "nonprescription medicines and
267	267	11 drugs" does not include grooming and hygiene products. For
268	268	12 purposes of this Section, "grooming and hygiene products"
269	269	13 includes, but is not limited to, soaps and cleaning solutions,
270	270	14 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
271	271	15 lotions and screens, unless those products are available by
272	272	16 prescription only, regardless of whether the products meet the
273	273	17 definition of "over-the-counter-drugs". For the purposes of
274	274	18 this paragraph, "over-the-counter-drug" means a drug for human
275	275	19 use that contains a label that identifies the product as a drug
276	276	20 as required by 21 CFR 201.66. The "over-the-counter-drug"
277	277	21 label includes:
278	278	22 (A) a "Drug Facts" panel; or
279	279	23 (B) a statement of the "active ingredient(s)" with a
280	280	24 list of those ingredients contained in the compound,
281	281	25 substance or preparation.
282	282	26 Beginning on January 1, 2014 (the effective date of Public
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293	293	1 Act 98-122), "prescription and nonprescription medicines and
294	294	2 drugs" includes medical cannabis purchased from a registered
295	295	3 dispensing organization under the Compassionate Use of Medical
296	296	4 Cannabis Program Act.
297	297	5 As used in this Section, "adult use cannabis" means
298	298	6 cannabis subject to tax under the Cannabis Cultivation
299	299	7 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
300	300	8 and does not include cannabis subject to tax under the
301	301	9 Compassionate Use of Medical Cannabis Program Act.
302	302	10 If the property that is purchased at retail from a
303	303	11 retailer is acquired outside Illinois and used outside
304	304	12 Illinois before being brought to Illinois for use here and is
305	305	13 taxable under this Act, the "selling price" on which the tax is
306	306	14 computed shall be reduced by an amount that represents a
307	307	15 reasonable allowance for depreciation for the period of prior
308	308	16 out-of-state use.
309	309	17 (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
310	310	18 Section 20-5, eff. 4-19-22; 102-700, Article 60, Section
311	311	19 60-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff.
312	312	20 4-19-22; 103-9, eff. 6-7-23; 103-154 eff. 6-30-23.)
313	313	21 Section 10. The Service Use Tax Act is amended by changing
314	314	22 Section 3-10 as follows:
315	315	23 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
316	316	24 Sec. 3-10. Rate of tax. Unless otherwise provided in this
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327	327	1 Section, the tax imposed by this Act is at the rate of 6.25% of
328	328	2 the selling price of tangible personal property transferred as
329	329	3 an incident to the sale of service, but, for the purpose of
330	330	4 computing this tax, in no event shall the selling price be less
331	331	5 than the cost price of the property to the serviceman.
332	332	6 Beginning on July 1, 2000 and through December 31, 2000,
333	333	7 with respect to motor fuel, as defined in Section 1.1 of the
334	334	8 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
335	335	9 the Use Tax Act, the tax is imposed at the rate of 1.25%.
336	336	10 With respect to gasohol, as defined in the Use Tax Act, the
337	337	11 tax imposed by this Act applies to (i) 70% of the selling price
338	338	12 of property transferred as an incident to the sale of service
339	339	13 on or after January 1, 1990, and before July 1, 2003, (ii) 80%
340	340	14 of the selling price of property transferred as an incident to
341	341	15 the sale of service on or after July 1, 2003 and on or before
342	342	16 July 1, 2017, (iii) 100% of the selling price of property
343	343	17 transferred as an incident to the sale of service after July 1,
344	344	18 2017 and before January 1, 2024, (iv) 90% of the selling price
345	345	19 of property transferred as an incident to the sale of service
346	346	20 on or after January 1, 2024 and on or before December 31, 2028,
347	347	21 and (v) 100% of the selling price of property transferred as an
348	348	22 incident to the sale of service after December 31, 2028. If, at
349	349	23 any time, however, the tax under this Act on sales of gasohol,
350	350	24 as defined in the Use Tax Act, is imposed at the rate of 1.25%,
351	351	25 then the tax imposed by this Act applies to 100% of the
352	352	26 proceeds of sales of gasohol made during that time.
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363	363	1 With respect to mid-range ethanol blends, as defined in
364	364	2 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
365	365	3 applies to (i) 80% of the selling price of property
366	366	4 transferred as an incident to the sale of service on or after
367	367	5 January 1, 2024 and on or before December 31, 2028 and (ii)
368	368	6 100% of the selling price of property transferred as an
369	369	7 incident to the sale of service after December 31, 2028. If, at
370	370	8 any time, however, the tax under this Act on sales of mid-range
371	371	9 ethanol blends is imposed at the rate of 1.25%, then the tax
372	372	10 imposed by this Act applies to 100% of the selling price of
373	373	11 mid-range ethanol blends transferred as an incident to the
374	374	12 sale of service during that time.
375	375	13 With respect to majority blended ethanol fuel, as defined
376	376	14 in the Use Tax Act, the tax imposed by this Act does not apply
377	377	15 to the selling price of property transferred as an incident to
378	378	16 the sale of service on or after July 1, 2003 and on or before
379	379	17 December 31, 2028 but applies to 100% of the selling price
380	380	18 thereafter.
381	381	19 With respect to biodiesel blends, as defined in the Use
382	382	20 Tax Act, with no less than 1% and no more than 10% biodiesel,
383	383	21 the tax imposed by this Act applies to (i) 80% of the selling
384	384	22 price of property transferred as an incident to the sale of
385	385	23 service on or after July 1, 2003 and on or before December 31,
386	386	24 2018 and (ii) 100% of the proceeds of the selling price after
387	387	25 December 31, 2018 and before January 1, 2024. On and after
388	388	26 January 1, 2024 and on or before December 31, 2030, the
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399	399	1 taxation of biodiesel, renewable diesel, and biodiesel blends
400	400	2 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
401	401	3 at any time, however, the tax under this Act on sales of
402	402	4 biodiesel blends, as defined in the Use Tax Act, with no less
403	403	5 than 1% and no more than 10% biodiesel is imposed at the rate
404	404	6 of 1.25%, then the tax imposed by this Act applies to 100% of
405	405	7 the proceeds of sales of biodiesel blends with no less than 1%
406	406	8 and no more than 10% biodiesel made during that time.
407	407	9 With respect to biodiesel, as defined in the Use Tax Act,
408	408	10 and biodiesel blends, as defined in the Use Tax Act, with more
409	409	11 than 10% but no more than 99% biodiesel, the tax imposed by
410	410	12 this Act does not apply to the proceeds of the selling price of
411	411	13 property transferred as an incident to the sale of service on
412	412	14 or after July 1, 2003 and on or before December 31, 2023. On
413	413	15 and after January 1, 2024 and on or before December 31, 2030,
414	414	16 the taxation of biodiesel, renewable diesel, and biodiesel
415	415	17 blends shall be as provided in Section 3-5.1 of the Use Tax
416	416	18 Act.
417	417	19 At the election of any registered serviceman made for each
418	418	20 fiscal year, sales of service in which the aggregate annual
419	419	21 cost price of tangible personal property transferred as an
420	420	22 incident to the sales of service is less than 35%, or 75% in
421	421	23 the case of servicemen transferring prescription drugs or
422	422	24 servicemen engaged in graphic arts production, of the
423	423	25 aggregate annual total gross receipts from all sales of
424	424	26 service, the tax imposed by this Act shall be based on the
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430	430	HB4307 - 11 - LRB103 35634 HLH 65709 b
431	431
432	432
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434	434	HB4307 - 12 - LRB103 35634 HLH 65709 b
435	435	1 serviceman's cost price of the tangible personal property
436	436	2 transferred as an incident to the sale of those services.
437	437	3 Until July 1, 2022 and beginning again on July 1, 2023, the
438	438	4 tax shall be imposed at the rate of 1% on food prepared for
439	439	5 immediate consumption and transferred incident to a sale of
440	440	6 service subject to this Act or the Service Occupation Tax Act
441	441	7 by an entity licensed under the Hospital Licensing Act, the
442	442	8 Nursing Home Care Act, the Assisted Living and Shared Housing
443	443	9 Act, the ID/DD Community Care Act, the MC/DD Act, the
444	444	10 Specialized Mental Health Rehabilitation Act of 2013, or the
445	445	11 Child Care Act of 1969, or an entity that holds a permit issued
446	446	12 pursuant to the Life Care Facilities Act. Until July 1, 2022
447	447	13 and beginning again on July 1, 2023, the tax shall also be
448	448	14 imposed at the rate of 1% on food for human consumption that is
449	449	15 to be consumed off the premises where it is sold (other than
450	450	16 alcoholic beverages, food consisting of or infused with adult
451	451	17 use cannabis, soft drinks, and food that has been prepared for
452	452	18 immediate consumption and is not otherwise included in this
453	453	19 paragraph).
454	454	20 Beginning on July 1, 2022 and until July 1, 2023, the tax
455	455	21 shall be imposed at the rate of 0% on food prepared for
456	456	22 immediate consumption and transferred incident to a sale of
457	457	23 service subject to this Act or the Service Occupation Tax Act
458	458	24 by an entity licensed under the Hospital Licensing Act, the
459	459	25 Nursing Home Care Act, the Assisted Living and Shared Housing
460	460	26 Act, the ID/DD Community Care Act, the MC/DD Act, the
461	461
462	462
463	463
464	464
465	465
466	466	HB4307 - 12 - LRB103 35634 HLH 65709 b
467	467
468	468
469	469	HB4307- 13 -LRB103 35634 HLH 65709 b HB4307 - 13 - LRB103 35634 HLH 65709 b
470	470	HB4307 - 13 - LRB103 35634 HLH 65709 b
471	471	1 Specialized Mental Health Rehabilitation Act of 2013, or the
472	472	2 Child Care Act of 1969, or an entity that holds a permit issued
473	473	3 pursuant to the Life Care Facilities Act. Beginning on July 1,
474	474	4 2022 and until July 1, 2023, the tax shall also be imposed at
475	475	5 the rate of 0% on food for human consumption that is to be
476	476	6 consumed off the premises where it is sold (other than
477	477	7 alcoholic beverages, food consisting of or infused with adult
478	478	8 use cannabis, soft drinks, and food that has been prepared for
479	479	9 immediate consumption and is not otherwise included in this
480	480	10 paragraph).
481	481	11 The tax shall also be imposed at the rate of 1% on
482	482	12 prescription and nonprescription medicines, drugs, medical
483	483	13 appliances, products classified as Class III medical devices
484	484	14 by the United States Food and Drug Administration that are
485	485	15 used for cancer treatment pursuant to a prescription, as well
486	486	16 as any accessories and components related to those devices,
487	487	17 modifications to a motor vehicle for the purpose of rendering
488	488	18 it usable by a person with a disability, and insulin, blood
489	489	19 sugar testing materials, syringes, and needles used by human
490	490	20 diabetics.
491	491	21 With respect to the following items, the tax is imposed at
492	492	22 the rate of 1%:
493	493	23 (1) food prepared for immediate consumption and
494	494	24 transferred incident to a sale of service subject to this
495	495	25 Act or the Service Occupation Tax Act by an entity
496	496	26 licensed under the Hospital Licensing Act, the Nursing
497	497
498	498
499	499
500	500
501	501
502	502	HB4307 - 13 - LRB103 35634 HLH 65709 b
503	503
504	504
505	505	HB4307- 14 -LRB103 35634 HLH 65709 b HB4307 - 14 - LRB103 35634 HLH 65709 b
506	506	HB4307 - 14 - LRB103 35634 HLH 65709 b
507	507	1 Home Care Act, the Assisted Living and Shared Housing Act,
508	508	2 the ID/DD Community Care Act, the MC/DD Act, the
509	509	3 Specialized Mental Health Rehabilitation Act of 2013, or
510	510	4 the Child Care Act of 1969, or an entity that holds a
511	511	5 permit issued pursuant to the Life Care Facilities Act;
512	512	6 (2) food for human consumption that is to be consumed
513	513	7 off the premises where it is sold (other than alcoholic
514	514	8 beverages, food consisting of or infused with adult use
515	515	9 cannabis, soft drinks, and food that has been prepared for
516	516	10 immediate consumption);
517	517	11 (3) prescription and nonprescription medicines, drugs,
518	518	12 and medical appliances;
519	519	13 (4) products classified as Class III medical devices
520	520	14 by the United States Food and Drug Administration that are
521	521	15 used for cancer treatment pursuant to a prescription, as
522	522	16 well as any accessories and components related to those
523	523	17 devices;
524	524	18 (5) modifications to a motor vehicle for the purpose
525	525	19 of rendering it usable by a person with a disability;
526	526	20 (6) insulin, blood sugar testing materials, syringes,
527	527	21 and needles used by human diabetics; and
528	528	22 (7) diapers and baby wipes.
529	529	23 For the purposes of this Section, until September 1, 2009:
530	530	24 the term "soft drinks" means any complete, finished,
531	531	25 ready-to-use, non-alcoholic drink, whether carbonated or not,
532	532	26 including, but not limited to, soda water, cola, fruit juice,
533	533
534	534
535	535
536	536
537	537
538	538	HB4307 - 14 - LRB103 35634 HLH 65709 b
539	539
540	540
541	541	HB4307- 15 -LRB103 35634 HLH 65709 b HB4307 - 15 - LRB103 35634 HLH 65709 b
542	542	HB4307 - 15 - LRB103 35634 HLH 65709 b
543	543	1 vegetable juice, carbonated water, and all other preparations
544	544	2 commonly known as soft drinks of whatever kind or description
545	545	3 that are contained in any closed or sealed bottle, can,
546	546	4 carton, or container, regardless of size; but "soft drinks"
547	547	5 does not include coffee, tea, non-carbonated water, infant
548	548	6 formula, milk or milk products as defined in the Grade A
549	549	7 Pasteurized Milk and Milk Products Act, or drinks containing
550	550	8 50% or more natural fruit or vegetable juice.
551	551	9 Notwithstanding any other provisions of this Act,
552	552	10 beginning September 1, 2009, "soft drinks" means non-alcoholic
553	553	11 beverages that contain natural or artificial sweeteners. "Soft
554	554	12 drinks" does not include beverages that contain milk or milk
555	555	13 products, soy, rice or similar milk substitutes, or greater
556	556	14 than 50% of vegetable or fruit juice by volume.
557	557	15 Until August 1, 2009, and notwithstanding any other
558	558	16 provisions of this Act, "food for human consumption that is to
559	559	17 be consumed off the premises where it is sold" includes all
560	560	18 food sold through a vending machine, except soft drinks and
561	561	19 food products that are dispensed hot from a vending machine,
562	562	20 regardless of the location of the vending machine. Beginning
563	563	21 August 1, 2009, and notwithstanding any other provisions of
564	564	22 this Act, "food for human consumption that is to be consumed
565	565	23 off the premises where it is sold" includes all food sold
566	566	24 through a vending machine, except soft drinks, candy, and food
567	567	25 products that are dispensed hot from a vending machine,
568	568	26 regardless of the location of the vending machine.
569	569
570	570
571	571
572	572
573	573
574	574	HB4307 - 15 - LRB103 35634 HLH 65709 b
575	575
576	576
577	577	HB4307- 16 -LRB103 35634 HLH 65709 b HB4307 - 16 - LRB103 35634 HLH 65709 b
578	578	HB4307 - 16 - LRB103 35634 HLH 65709 b
579	579	1 Notwithstanding any other provisions of this Act,
580	580	2 beginning September 1, 2009, "food for human consumption that
581	581	3 is to be consumed off the premises where it is sold" does not
582	582	4 include candy. For purposes of this Section, "candy" means a
583	583	5 preparation of sugar, honey, or other natural or artificial
584	584	6 sweeteners in combination with chocolate, fruits, nuts or
585	585	7 other ingredients or flavorings in the form of bars, drops, or
586	586	8 pieces. "Candy" does not include any preparation that contains
587	587	9 flour or requires refrigeration.
588	588	10 Notwithstanding any other provisions of this Act,
589	589	11 beginning September 1, 2009, "nonprescription medicines and
590	590	12 drugs" does not include grooming and hygiene products. For
591	591	13 purposes of this Section, "grooming and hygiene products"
592	592	14 includes, but is not limited to, soaps and cleaning solutions,
593	593	15 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
594	594	16 lotions and screens, unless those products are available by
595	595	17 prescription only, regardless of whether the products meet the
596	596	18 definition of "over-the-counter-drugs". For the purposes of
597	597	19 this paragraph, "over-the-counter-drug" means a drug for human
598	598	20 use that contains a label that identifies the product as a drug
599	599	21 as required by 21 CFR 201.66. The "over-the-counter-drug"
600	600	22 label includes:
601	601	23 (A) a "Drug Facts" panel; or
602	602	24 (B) a statement of the "active ingredient(s)" with a
603	603	25 list of those ingredients contained in the compound,
604	604	26 substance or preparation.
605	605
606	606
607	607
608	608
609	609
610	610	HB4307 - 16 - LRB103 35634 HLH 65709 b
611	611
612	612
613	613	HB4307- 17 -LRB103 35634 HLH 65709 b HB4307 - 17 - LRB103 35634 HLH 65709 b
614	614	HB4307 - 17 - LRB103 35634 HLH 65709 b
615	615	1 Beginning on January 1, 2014 (the effective date of Public
616	616	2 Act 98-122), "prescription and nonprescription medicines and
617	617	3 drugs" includes medical cannabis purchased from a registered
618	618	4 dispensing organization under the Compassionate Use of Medical
619	619	5 Cannabis Program Act.
620	620	6 As used in this Section, "adult use cannabis" means
621	621	7 cannabis subject to tax under the Cannabis Cultivation
622	622	8 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
623	623	9 and does not include cannabis subject to tax under the
624	624	10 Compassionate Use of Medical Cannabis Program Act.
625	625	11 If the property that is acquired from a serviceman is
626	626	12 acquired outside Illinois and used outside Illinois before
627	627	13 being brought to Illinois for use here and is taxable under
628	628	14 this Act, the "selling price" on which the tax is computed
629	629	15 shall be reduced by an amount that represents a reasonable
630	630	16 allowance for depreciation for the period of prior
631	631	17 out-of-state use.
632	632	18 (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
633	633	19 102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700,
634	634	20 Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23;
635	635	21 103-154, eff. 6-30-23.)
636	636	22 Section 15. The Service Occupation Tax Act is amended by
637	637	23 changing Section 3-10 as follows:
638	638	24 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
639	639
640	640
641	641
642	642
643	643
644	644	HB4307 - 17 - LRB103 35634 HLH 65709 b
645	645
646	646
647	647	HB4307- 18 -LRB103 35634 HLH 65709 b HB4307 - 18 - LRB103 35634 HLH 65709 b
648	648	HB4307 - 18 - LRB103 35634 HLH 65709 b
649	649	1 Sec. 3-10. Rate of tax. Unless otherwise provided in this
650	650	2 Section, the tax imposed by this Act is at the rate of 6.25% of
651	651	3 the "selling price", as defined in Section 2 of the Service Use
652	652	4 Tax Act, of the tangible personal property. For the purpose of
653	653	5 computing this tax, in no event shall the "selling price" be
654	654	6 less than the cost price to the serviceman of the tangible
655	655	7 personal property transferred. The selling price of each item
656	656	8 of tangible personal property transferred as an incident of a
657	657	9 sale of service may be shown as a distinct and separate item on
658	658	10 the serviceman's billing to the service customer. If the
659	659	11 selling price is not so shown, the selling price of the
660	660	12 tangible personal property is deemed to be 50% of the
661	661	13 serviceman's entire billing to the service customer. When,
662	662	14 however, a serviceman contracts to design, develop, and
663	663	15 produce special order machinery or equipment, the tax imposed
664	664	16 by this Act shall be based on the serviceman's cost price of
665	665	17 the tangible personal property transferred incident to the
666	666	18 completion of the contract.
667	667	19 Beginning on July 1, 2000 and through December 31, 2000,
668	668	20 with respect to motor fuel, as defined in Section 1.1 of the
669	669	21 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
670	670	22 the Use Tax Act, the tax is imposed at the rate of 1.25%.
671	671	23 With respect to gasohol, as defined in the Use Tax Act, the
672	672	24 tax imposed by this Act shall apply to (i) 70% of the cost
673	673	25 price of property transferred as an incident to the sale of
674	674	26 service on or after January 1, 1990, and before July 1, 2003,
675	675
676	676
677	677
678	678
679	679
680	680	HB4307 - 18 - LRB103 35634 HLH 65709 b
681	681
682	682
683	683	HB4307- 19 -LRB103 35634 HLH 65709 b HB4307 - 19 - LRB103 35634 HLH 65709 b
684	684	HB4307 - 19 - LRB103 35634 HLH 65709 b
685	685	1 (ii) 80% of the selling price of property transferred as an
686	686	2 incident to the sale of service on or after July 1, 2003 and on
687	687	3 or before July 1, 2017, (iii) 100% of the selling price of
688	688	4 property transferred as an incident to the sale of service
689	689	5 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
690	690	6 the selling price of property transferred as an incident to
691	691	7 the sale of service on or after January 1, 2024 and on or
692	692	8 before December 31, 2028, and (v) 100% of the selling price of
693	693	9 property transferred as an incident to the sale of service
694	694	10 after December 31, 2028. If, at any time, however, the tax
695	695	11 under this Act on sales of gasohol, as defined in the Use Tax
696	696	12 Act, is imposed at the rate of 1.25%, then the tax imposed by
697	697	13 this Act applies to 100% of the proceeds of sales of gasohol
698	698	14 made during that time.
699	699	15 With respect to mid-range ethanol blends, as defined in
700	700	16 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
701	701	17 applies to (i) 80% of the selling price of property
702	702	18 transferred as an incident to the sale of service on or after
703	703	19 January 1, 2024 and on or before December 31, 2028 and (ii)
704	704	20 100% of the selling price of property transferred as an
705	705	21 incident to the sale of service after December 31, 2028. If, at
706	706	22 any time, however, the tax under this Act on sales of mid-range
707	707	23 ethanol blends is imposed at the rate of 1.25%, then the tax
708	708	24 imposed by this Act applies to 100% of the selling price of
709	709	25 mid-range ethanol blends transferred as an incident to the
710	710	26 sale of service during that time.
711	711
712	712
713	713
714	714
715	715
716	716	HB4307 - 19 - LRB103 35634 HLH 65709 b
717	717
718	718
719	719	HB4307- 20 -LRB103 35634 HLH 65709 b HB4307 - 20 - LRB103 35634 HLH 65709 b
720	720	HB4307 - 20 - LRB103 35634 HLH 65709 b
721	721	1 With respect to majority blended ethanol fuel, as defined
722	722	2 in the Use Tax Act, the tax imposed by this Act does not apply
723	723	3 to the selling price of property transferred as an incident to
724	724	4 the sale of service on or after July 1, 2003 and on or before
725	725	5 December 31, 2028 but applies to 100% of the selling price
726	726	6 thereafter.
727	727	7 With respect to biodiesel blends, as defined in the Use
728	728	8 Tax Act, with no less than 1% and no more than 10% biodiesel,
729	729	9 the tax imposed by this Act applies to (i) 80% of the selling
730	730	10 price of property transferred as an incident to the sale of
731	731	11 service on or after July 1, 2003 and on or before December 31,
732	732	12 2018 and (ii) 100% of the proceeds of the selling price after
733	733	13 December 31, 2018 and before January 1, 2024. On and after
734	734	14 January 1, 2024 and on or before December 31, 2030, the
735	735	15 taxation of biodiesel, renewable diesel, and biodiesel blends
736	736	16 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
737	737	17 at any time, however, the tax under this Act on sales of
738	738	18 biodiesel blends, as defined in the Use Tax Act, with no less
739	739	19 than 1% and no more than 10% biodiesel is imposed at the rate
740	740	20 of 1.25%, then the tax imposed by this Act applies to 100% of
741	741	21 the proceeds of sales of biodiesel blends with no less than 1%
742	742	22 and no more than 10% biodiesel made during that time.
743	743	23 With respect to biodiesel, as defined in the Use Tax Act,
744	744	24 and biodiesel blends, as defined in the Use Tax Act, with more
745	745	25 than 10% but no more than 99% biodiesel material, the tax
746	746	26 imposed by this Act does not apply to the proceeds of the
747	747
748	748
749	749
750	750
751	751
752	752	HB4307 - 20 - LRB103 35634 HLH 65709 b
753	753
754	754
755	755	HB4307- 21 -LRB103 35634 HLH 65709 b HB4307 - 21 - LRB103 35634 HLH 65709 b
756	756	HB4307 - 21 - LRB103 35634 HLH 65709 b
757	757	1 selling price of property transferred as an incident to the
758	758	2 sale of service on or after July 1, 2003 and on or before
759	759	3 December 31, 2023. On and after January 1, 2024 and on or
760	760	4 before December 31, 2030, the taxation of biodiesel, renewable
761	761	5 diesel, and biodiesel blends shall be as provided in Section
762	762	6 3-5.1 of the Use Tax Act.
763	763	7 At the election of any registered serviceman made for each
764	764	8 fiscal year, sales of service in which the aggregate annual
765	765	9 cost price of tangible personal property transferred as an
766	766	10 incident to the sales of service is less than 35%, or 75% in
767	767	11 the case of servicemen transferring prescription drugs or
768	768	12 servicemen engaged in graphic arts production, of the
769	769	13 aggregate annual total gross receipts from all sales of
770	770	14 service, the tax imposed by this Act shall be based on the
771	771	15 serviceman's cost price of the tangible personal property
772	772	16 transferred incident to the sale of those services.
773	773	17 Until July 1, 2022 and beginning again on July 1, 2023, the
774	774	18 tax shall be imposed at the rate of 1% on food prepared for
775	775	19 immediate consumption and transferred incident to a sale of
776	776	20 service subject to this Act or the Service Use Tax Act by an
777	777	21 entity licensed under the Hospital Licensing Act, the Nursing
778	778	22 Home Care Act, the Assisted Living and Shared Housing Act, the
779	779	23 ID/DD Community Care Act, the MC/DD Act, the Specialized
780	780	24 Mental Health Rehabilitation Act of 2013, or the Child Care
781	781	25 Act of 1969, or an entity that holds a permit issued pursuant
782	782	26 to the Life Care Facilities Act. Until July 1, 2022 and
783	783
784	784
785	785
786	786
787	787
788	788	HB4307 - 21 - LRB103 35634 HLH 65709 b
789	789
790	790
791	791	HB4307- 22 -LRB103 35634 HLH 65709 b HB4307 - 22 - LRB103 35634 HLH 65709 b
792	792	HB4307 - 22 - LRB103 35634 HLH 65709 b
793	793	1 beginning again on July 1, 2023, the tax shall also be imposed
794	794	2 at the rate of 1% on food for human consumption that is to be
795	795	3 consumed off the premises where it is sold (other than
796	796	4 alcoholic beverages, food consisting of or infused with adult
797	797	5 use cannabis, soft drinks, and food that has been prepared for
798	798	6 immediate consumption and is not otherwise included in this
799	799	7 paragraph).
800	800	8 Beginning on July 1, 2022 and until July 1, 2023, the tax
801	801	9 shall be imposed at the rate of 0% on food prepared for
802	802	10 immediate consumption and transferred incident to a sale of
803	803	11 service subject to this Act or the Service Use Tax Act by an
804	804	12 entity licensed under the Hospital Licensing Act, the Nursing
805	805	13 Home Care Act, the Assisted Living and Shared Housing Act, the
806	806	14 ID/DD Community Care Act, the MC/DD Act, the Specialized
807	807	15 Mental Health Rehabilitation Act of 2013, or the Child Care
808	808	16 Act of 1969, or an entity that holds a permit issued pursuant
809	809	17 to the Life Care Facilities Act. Beginning July 1, 2022 and
810	810	18 until July 1, 2023, the tax shall also be imposed at the rate
811	811	19 of 0% on food for human consumption that is to be consumed off
812	812	20 the premises where it is sold (other than alcoholic beverages,
813	813	21 food consisting of or infused with adult use cannabis, soft
814	814	22 drinks, and food that has been prepared for immediate
815	815	23 consumption and is not otherwise included in this paragraph).
816	816	24 The tax shall also be imposed at the rate of 1% on
817	817	25 prescription and nonprescription medicines, drugs, medical
818	818	26 appliances, products classified as Class III medical devices
819	819
820	820
821	821
822	822
823	823
824	824	HB4307 - 22 - LRB103 35634 HLH 65709 b
825	825
826	826
827	827	HB4307- 23 -LRB103 35634 HLH 65709 b HB4307 - 23 - LRB103 35634 HLH 65709 b
828	828	HB4307 - 23 - LRB103 35634 HLH 65709 b
829	829	1 by the United States Food and Drug Administration that are
830	830	2 used for cancer treatment pursuant to a prescription, as well
831	831	3 as any accessories and components related to those devices,
832	832	4 modifications to a motor vehicle for the purpose of rendering
833	833	5 it usable by a person with a disability, and insulin, blood
834	834	6 sugar testing materials, syringes, and needles used by human
835	835	7 diabetics.
836	836	8 With respect to the following items, the tax is imposed at
837	837	9 the rate of 1%:
838	838	10 (1) food prepared for immediate consumption and
839	839	11 transferred incident to a sale of service subject to this
840	840	12 Act or the Service Occupation Tax Act by an entity
841	841	13 licensed under the Hospital Licensing Act, the Nursing
842	842	14 Home Care Act, the Assisted Living and Shared Housing Act,
843	843	15 the ID/DD Community Care Act, the MC/DD Act, the
844	844	16 Specialized Mental Health Rehabilitation Act of 2013, or
845	845	17 the Child Care Act of 1969, or an entity that holds a
846	846	18 permit issued pursuant to the Life Care Facilities Act;
847	847	19 (2) food for human consumption that is to be consumed
848	848	20 off the premises where it is sold (other than alcoholic
849	849	21 beverages, food consisting of or infused with adult use
850	850	22 cannabis, soft drinks, and food that has been prepared for
851	851	23 immediate consumption);
852	852	24 (3) prescription and nonprescription medicines, drugs,
853	853	25 and medical appliances;
854	854	26 (4) products classified as Class III medical devices
855	855
856	856
857	857
858	858
859	859
860	860	HB4307 - 23 - LRB103 35634 HLH 65709 b
861	861
862	862
863	863	HB4307- 24 -LRB103 35634 HLH 65709 b HB4307 - 24 - LRB103 35634 HLH 65709 b
864	864	HB4307 - 24 - LRB103 35634 HLH 65709 b
865	865	1 by the United States Food and Drug Administration that are
866	866	2 used for cancer treatment pursuant to a prescription, as
867	867	3 well as any accessories and components related to those
868	868	4 devices;
869	869	5 (5) modifications to a motor vehicle for the purpose
870	870	6 of rendering it usable by a person with a disability;
871	871	7 (6) insulin, blood sugar testing materials, syringes,
872	872	8 and needles used by human diabetics; and
873	873	9 (7) diapers and baby wipes.
874	874	10 For the purposes of this Section, until September 1, 2009:
875	875	11 the term "soft drinks" means any complete, finished,
876	876	12 ready-to-use, non-alcoholic drink, whether carbonated or not,
877	877	13 including, but not limited to, soda water, cola, fruit juice,
878	878	14 vegetable juice, carbonated water, and all other preparations
879	879	15 commonly known as soft drinks of whatever kind or description
880	880	16 that are contained in any closed or sealed can, carton, or
881	881	17 container, regardless of size; but "soft drinks" does not
882	882	18 include coffee, tea, non-carbonated water, infant formula,
883	883	19 milk or milk products as defined in the Grade A Pasteurized
884	884	20 Milk and Milk Products Act, or drinks containing 50% or more
885	885	21 natural fruit or vegetable juice.
886	886	22 Notwithstanding any other provisions of this Act,
887	887	23 beginning September 1, 2009, "soft drinks" means non-alcoholic
888	888	24 beverages that contain natural or artificial sweeteners. "Soft
889	889	25 drinks" does not include beverages that contain milk or milk
890	890	26 products, soy, rice or similar milk substitutes, or greater
891	891
892	892
893	893
894	894
895	895
896	896	HB4307 - 24 - LRB103 35634 HLH 65709 b
897	897
898	898
899	899	HB4307- 25 -LRB103 35634 HLH 65709 b HB4307 - 25 - LRB103 35634 HLH 65709 b
900	900	HB4307 - 25 - LRB103 35634 HLH 65709 b
901	901	1 than 50% of vegetable or fruit juice by volume.
902	902	2 Until August 1, 2009, and notwithstanding any other
903	903	3 provisions of this Act, "food for human consumption that is to
904	904	4 be consumed off the premises where it is sold" includes all
905	905	5 food sold through a vending machine, except soft drinks and
906	906	6 food products that are dispensed hot from a vending machine,
907	907	7 regardless of the location of the vending machine. Beginning
908	908	8 August 1, 2009, and notwithstanding any other provisions of
909	909	9 this Act, "food for human consumption that is to be consumed
910	910	10 off the premises where it is sold" includes all food sold
911	911	11 through a vending machine, except soft drinks, candy, and food
912	912	12 products that are dispensed hot from a vending machine,
913	913	13 regardless of the location of the vending machine.
914	914	14 Notwithstanding any other provisions of this Act,
915	915	15 beginning September 1, 2009, "food for human consumption that
916	916	16 is to be consumed off the premises where it is sold" does not
917	917	17 include candy. For purposes of this Section, "candy" means a
918	918	18 preparation of sugar, honey, or other natural or artificial
919	919	19 sweeteners in combination with chocolate, fruits, nuts or
920	920	20 other ingredients or flavorings in the form of bars, drops, or
921	921	21 pieces. "Candy" does not include any preparation that contains
922	922	22 flour or requires refrigeration.
923	923	23 Notwithstanding any other provisions of this Act,
924	924	24 beginning September 1, 2009, "nonprescription medicines and
925	925	25 drugs" does not include grooming and hygiene products. For
926	926	26 purposes of this Section, "grooming and hygiene products"
927	927
928	928
929	929
930	930
931	931
932	932	HB4307 - 25 - LRB103 35634 HLH 65709 b
933	933
934	934
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936	936	HB4307 - 26 - LRB103 35634 HLH 65709 b
937	937	1 includes, but is not limited to, soaps and cleaning solutions,
938	938	2 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
939	939	3 lotions and screens, unless those products are available by
940	940	4 prescription only, regardless of whether the products meet the
941	941	5 definition of "over-the-counter-drugs". For the purposes of
942	942	6 this paragraph, "over-the-counter-drug" means a drug for human
943	943	7 use that contains a label that identifies the product as a drug
944	944	8 as required by 21 CFR 201.66. The "over-the-counter-drug"
945	945	9 label includes:
946	946	10 (A) a "Drug Facts" panel; or
947	947	11 (B) a statement of the "active ingredient(s)" with a
948	948	12 list of those ingredients contained in the compound,
949	949	13 substance or preparation.
950	950	14 Beginning on January 1, 2014 (the effective date of Public
951	951	15 Act 98-122), "prescription and nonprescription medicines and
952	952	16 drugs" includes medical cannabis purchased from a registered
953	953	17 dispensing organization under the Compassionate Use of Medical
954	954	18 Cannabis Program Act.
955	955	19 As used in this Section, "adult use cannabis" means
956	956	20 cannabis subject to tax under the Cannabis Cultivation
957	957	21 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
958	958	22 and does not include cannabis subject to tax under the
959	959	23 Compassionate Use of Medical Cannabis Program Act.
960	960	24 (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
961	961	25 102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700,
962	962	26 Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23;
963	963
964	964
965	965
966	966
967	967
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969	969
970	970
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972	972	HB4307 - 27 - LRB103 35634 HLH 65709 b
973	973	1 103-154, eff. 6-30-23.)
974	974	2 Section 20. The Retailers' Occupation Tax Act is amended
975	975	3 by changing Section 2-10 as follows:
976	976	4 (35 ILCS 120/2-10)
977	977	5 Sec. 2-10. Rate of tax. Unless otherwise provided in this
978	978	6 Section, the tax imposed by this Act is at the rate of 6.25% of
979	979	7 gross receipts from sales of tangible personal property made
980	980	8 in the course of business.
981	981	9 Beginning on July 1, 2000 and through December 31, 2000,
982	982	10 with respect to motor fuel, as defined in Section 1.1 of the
983	983	11 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
984	984	12 the Use Tax Act, the tax is imposed at the rate of 1.25%.
985	985	13 Beginning on August 6, 2010 through August 15, 2010, and
986	986	14 beginning again on August 5, 2022 through August 14, 2022,
987	987	15 with respect to sales tax holiday items as defined in Section
988	988	16 2-8 of this Act, the tax is imposed at the rate of 1.25%.
989	989	17 Within 14 days after July 1, 2000 (the effective date of
990	990	18 Public Act 91-872), each retailer of motor fuel and gasohol
991	991	19 shall cause the following notice to be posted in a prominently
992	992	20 visible place on each retail dispensing device that is used to
993	993	21 dispense motor fuel or gasohol in the State of Illinois: "As of
994	994	22 July 1, 2000, the State of Illinois has eliminated the State's
995	995	23 share of sales tax on motor fuel and gasohol through December
996	996	24 31, 2000. The price on this pump should reflect the
997	997
998	998
999	999
1000	1000
1001	1001
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1003	1003
1004	1004
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1006	1006	HB4307 - 28 - LRB103 35634 HLH 65709 b
1007	1007	1 elimination of the tax." The notice shall be printed in bold
1008	1008	2 print on a sign that is no smaller than 4 inches by 8 inches.
1009	1009	3 The sign shall be clearly visible to customers. Any retailer
1010	1010	4 who fails to post or maintain a required sign through December
1011	1011	5 31, 2000 is guilty of a petty offense for which the fine shall
1012	1012	6 be $500 per day per each retail premises where a violation
1013	1013	7 occurs.
1014	1014	8 With respect to gasohol, as defined in the Use Tax Act, the
1015	1015	9 tax imposed by this Act applies to (i) 70% of the proceeds of
1016	1016	10 sales made on or after January 1, 1990, and before July 1,
1017	1017	11 2003, (ii) 80% of the proceeds of sales made on or after July
1018	1018	12 1, 2003 and on or before July 1, 2017, (iii) 100% of the
1019	1019	13 proceeds of sales made after July 1, 2017 and prior to January
1020	1020	14 1, 2024, (iv) 90% of the proceeds of sales made on or after
1021	1021	15 January 1, 2024 and on or before December 31, 2028, and (v)
1022	1022	16 100% of the proceeds of sales made after December 31, 2028. If,
1023	1023	17 at any time, however, the tax under this Act on sales of
1024	1024	18 gasohol, as defined in the Use Tax Act, is imposed at the rate
1025	1025	19 of 1.25%, then the tax imposed by this Act applies to 100% of
1026	1026	20 the proceeds of sales of gasohol made during that time.
1027	1027	21 With respect to mid-range ethanol blends, as defined in
1028	1028	22 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
1029	1029	23 applies to (i) 80% of the proceeds of sales made on or after
1030	1030	24 January 1, 2024 and on or before December 31, 2028 and (ii)
1031	1031	25 100% of the proceeds of sales made after December 31, 2028. If,
1032	1032	26 at any time, however, the tax under this Act on sales of
1033	1033
1034	1034
1035	1035
1036	1036
1037	1037
1038	1038	HB4307 - 28 - LRB103 35634 HLH 65709 b
1039	1039
1040	1040
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1042	1042	HB4307 - 29 - LRB103 35634 HLH 65709 b
1043	1043	1 mid-range ethanol blends is imposed at the rate of 1.25%, then
1044	1044	2 the tax imposed by this Act applies to 100% of the proceeds of
1045	1045	3 sales of mid-range ethanol blends made during that time.
1046	1046	4 With respect to majority blended ethanol fuel, as defined
1047	1047	5 in the Use Tax Act, the tax imposed by this Act does not apply
1048	1048	6 to the proceeds of sales made on or after July 1, 2003 and on
1049	1049	7 or before December 31, 2028 but applies to 100% of the proceeds
1050	1050	8 of sales made thereafter.
1051	1051	9 With respect to biodiesel blends, as defined in the Use
1052	1052	10 Tax Act, with no less than 1% and no more than 10% biodiesel,
1053	1053	11 the tax imposed by this Act applies to (i) 80% of the proceeds
1054	1054	12 of sales made on or after July 1, 2003 and on or before
1055	1055	13 December 31, 2018 and (ii) 100% of the proceeds of sales made
1056	1056	14 after December 31, 2018 and before January 1, 2024. On and
1057	1057	15 after January 1, 2024 and on or before December 31, 2030, the
1058	1058	16 taxation of biodiesel, renewable diesel, and biodiesel blends
1059	1059	17 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
1060	1060	18 at any time, however, the tax under this Act on sales of
1061	1061	19 biodiesel blends, as defined in the Use Tax Act, with no less
1062	1062	20 than 1% and no more than 10% biodiesel is imposed at the rate
1063	1063	21 of 1.25%, then the tax imposed by this Act applies to 100% of
1064	1064	22 the proceeds of sales of biodiesel blends with no less than 1%
1065	1065	23 and no more than 10% biodiesel made during that time.
1066	1066	24 With respect to biodiesel, as defined in the Use Tax Act,
1067	1067	25 and biodiesel blends, as defined in the Use Tax Act, with more
1068	1068	26 than 10% but no more than 99% biodiesel, the tax imposed by
1069	1069
1070	1070
1071	1071
1072	1072
1073	1073
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1075	1075
1076	1076
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1078	1078	HB4307 - 30 - LRB103 35634 HLH 65709 b
1079	1079	1 this Act does not apply to the proceeds of sales made on or
1080	1080	2 after July 1, 2003 and on or before December 31, 2023. On and
1081	1081	3 after January 1, 2024 and on or before December 31, 2030, the
1082	1082	4 taxation of biodiesel, renewable diesel, and biodiesel blends
1083	1083	5 shall be as provided in Section 3-5.1 of the Use Tax Act.
1084	1084	6 Until July 1, 2022 and beginning again on July 1, 2023,
1085	1085	7 with respect to food for human consumption that is to be
1086	1086	8 consumed off the premises where it is sold (other than
1087	1087	9 alcoholic beverages, food consisting of or infused with adult
1088	1088	10 use cannabis, soft drinks, and food that has been prepared for
1089	1089	11 immediate consumption), the tax is imposed at the rate of 1%.
1090	1090	12 Beginning July 1, 2022 and until July 1, 2023, with respect to
1091	1091	13 food for human consumption that is to be consumed off the
1092	1092	14 premises where it is sold (other than alcoholic beverages,
1093	1093	15 food consisting of or infused with adult use cannabis, soft
1094	1094	16 drinks, and food that has been prepared for immediate
1095	1095	17 consumption), the tax is imposed at the rate of 0%.
1096	1096	18 With respect to prescription and nonprescription
1097	1097	19 medicines, drugs, medical appliances, products classified as
1098	1098	20 Class III medical devices by the United States Food and Drug
1099	1099	21 Administration that are used for cancer treatment pursuant to
1100	1100	22 a prescription, as well as any accessories and components
1101	1101	23 related to those devices, modifications to a motor vehicle for
1102	1102	24 the purpose of rendering it usable by a person with a
1103	1103	25 disability, and insulin, blood sugar testing materials,
1104	1104	26 syringes, and needles used by human diabetics, the tax is
1105	1105
1106	1106
1107	1107
1108	1108
1109	1109
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1111	1111
1112	1112
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1114	1114	HB4307 - 31 - LRB103 35634 HLH 65709 b
1115	1115	1 imposed at the rate of 1%.
1116	1116	2 With respect to the following items, the tax is imposed at
1117	1117	3 the rate of 1%:
1118	1118	4 (1) food for human consumption that is to be consumed
1119	1119	5 off the premises where it is sold (other than alcoholic
1120	1120	6 beverages, food consisting of or infused with adult use
1121	1121	7 cannabis, soft drinks, and food that has been prepared for
1122	1122	8 immediate consumption);
1123	1123	9 (2) prescription and nonprescription medicines, drugs,
1124	1124	10 and medical appliances;
1125	1125	11 (3) products classified as Class III medical devices
1126	1126	12 by the United States Food and Drug Administration that are
1127	1127	13 used for cancer treatment pursuant to a prescription, as
1128	1128	14 well as any accessories and components related to those
1129	1129	15 devices;
1130	1130	16 (4) modifications to a motor vehicle for the purpose
1131	1131	17 of rendering it usable by a person with a disability;
1132	1132	18 (5) insulin, blood sugar testing materials, syringes,
1133	1133	19 and needles used by human diabetics; and
1134	1134	20 (6) diapers and baby wipes.
1135	1135	21 For the purposes of this Section, until September 1, 2009:
1136	1136	22 the term "soft drinks" means any complete, finished,
1137	1137	23 ready-to-use, non-alcoholic drink, whether carbonated or not,
1138	1138	24 including, but not limited to, soda water, cola, fruit juice,
1139	1139	25 vegetable juice, carbonated water, and all other preparations
1140	1140	26 commonly known as soft drinks of whatever kind or description
1141	1141
1142	1142
1143	1143
1144	1144
1145	1145
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1147	1147
1148	1148
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1150	1150	HB4307 - 32 - LRB103 35634 HLH 65709 b
1151	1151	1 that are contained in any closed or sealed bottle, can,
1152	1152	2 carton, or container, regardless of size; but "soft drinks"
1153	1153	3 does not include coffee, tea, non-carbonated water, infant
1154	1154	4 formula, milk or milk products as defined in the Grade A
1155	1155	5 Pasteurized Milk and Milk Products Act, or drinks containing
1156	1156	6 50% or more natural fruit or vegetable juice.
1157	1157	7 Notwithstanding any other provisions of this Act,
1158	1158	8 beginning September 1, 2009, "soft drinks" means non-alcoholic
1159	1159	9 beverages that contain natural or artificial sweeteners. "Soft
1160	1160	10 drinks" does not include beverages that contain milk or milk
1161	1161	11 products, soy, rice or similar milk substitutes, or greater
1162	1162	12 than 50% of vegetable or fruit juice by volume.
1163	1163	13 Until August 1, 2009, and notwithstanding any other
1164	1164	14 provisions of this Act, "food for human consumption that is to
1165	1165	15 be consumed off the premises where it is sold" includes all
1166	1166	16 food sold through a vending machine, except soft drinks and
1167	1167	17 food products that are dispensed hot from a vending machine,
1168	1168	18 regardless of the location of the vending machine. Beginning
1169	1169	19 August 1, 2009, and notwithstanding any other provisions of
1170	1170	20 this Act, "food for human consumption that is to be consumed
1171	1171	21 off the premises where it is sold" includes all food sold
1172	1172	22 through a vending machine, except soft drinks, candy, and food
1173	1173	23 products that are dispensed hot from a vending machine,
1174	1174	24 regardless of the location of the vending machine.
1175	1175	25 Notwithstanding any other provisions of this Act,
1176	1176	26 beginning September 1, 2009, "food for human consumption that
1177	1177
1178	1178
1179	1179
1180	1180
1181	1181
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1183	1183
1184	1184
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1186	1186	HB4307 - 33 - LRB103 35634 HLH 65709 b
1187	1187	1 is to be consumed off the premises where it is sold" does not
1188	1188	2 include candy. For purposes of this Section, "candy" means a
1189	1189	3 preparation of sugar, honey, or other natural or artificial
1190	1190	4 sweeteners in combination with chocolate, fruits, nuts or
1191	1191	5 other ingredients or flavorings in the form of bars, drops, or
1192	1192	6 pieces. "Candy" does not include any preparation that contains
1193	1193	7 flour or requires refrigeration.
1194	1194	8 Notwithstanding any other provisions of this Act,
1195	1195	9 beginning September 1, 2009, "nonprescription medicines and
1196	1196	10 drugs" does not include grooming and hygiene products. For
1197	1197	11 purposes of this Section, "grooming and hygiene products"
1198	1198	12 includes, but is not limited to, soaps and cleaning solutions,
1199	1199	13 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
1200	1200	14 lotions and screens, unless those products are available by
1201	1201	15 prescription only, regardless of whether the products meet the
1202	1202	16 definition of "over-the-counter-drugs". For the purposes of
1203	1203	17 this paragraph, "over-the-counter-drug" means a drug for human
1204	1204	18 use that contains a label that identifies the product as a drug
1205	1205	19 as required by 21 CFR 201.66. The "over-the-counter-drug"
1206	1206	20 label includes:
1207	1207	21 (A) a "Drug Facts" panel; or
1208	1208	22 (B) a statement of the "active ingredient(s)" with a
1209	1209	23 list of those ingredients contained in the compound,
1210	1210	24 substance or preparation.
1211	1211	25 Beginning on January 1, 2014 (the effective date of Public
1212	1212	26 Act 98-122), "prescription and nonprescription medicines and
1213	1213
1214	1214
1215	1215
1216	1216
1217	1217
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1219	1219
1220	1220
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1223	1223
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