Illinois 2023-2024 Regular Session

Illinois House Bill HB4465 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 HB4465 Introduced , by Rep. Sonya M. Harper SYNOPSIS AS INTRODUCED: 35 ILCS 120/2-10410 ILCS 705/65-10 Amends the Retailers' Occupation Tax Act. In a provision concerning the rate of tax, provides that the definition "prescription and nonprescription medicine and drugs" includes cannabis or cannabis-infused products purchased from a dispensing organization under the Cannabis Regulation and Tax Act by a cardholder under the Compassionate Use of Medical Cannabis Act. Amends the Cannabis Regulation and Tax Act. Provides that the tax imposed under the provisions is not imposed on cannabis-infused product that is subject to tax under the Compassionate Use of Medical Cannabis Program Act or cannabis or cannabis-infused product sold to a cardholder under the Compassionate Use of Medical Cannabis Program Act. Effective January 1, 2026. LRB103 36082 CES 66171 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4465 Introduced , by Rep. Sonya M. Harper SYNOPSIS AS INTRODUCED: 35 ILCS 120/2-10410 ILCS 705/65-10 35 ILCS 120/2-10 410 ILCS 705/65-10 Amends the Retailers' Occupation Tax Act. In a provision concerning the rate of tax, provides that the definition "prescription and nonprescription medicine and drugs" includes cannabis or cannabis-infused products purchased from a dispensing organization under the Cannabis Regulation and Tax Act by a cardholder under the Compassionate Use of Medical Cannabis Act. Amends the Cannabis Regulation and Tax Act. Provides that the tax imposed under the provisions is not imposed on cannabis-infused product that is subject to tax under the Compassionate Use of Medical Cannabis Program Act or cannabis or cannabis-infused product sold to a cardholder under the Compassionate Use of Medical Cannabis Program Act. Effective January 1, 2026. LRB103 36082 CES 66171 b LRB103 36082 CES 66171 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4465 Introduced , by Rep. Sonya M. Harper SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 120/2-10410 ILCS 705/65-10 35 ILCS 120/2-10 410 ILCS 705/65-10
4	4	35 ILCS 120/2-10
5	5	410 ILCS 705/65-10
6	6	Amends the Retailers' Occupation Tax Act. In a provision concerning the rate of tax, provides that the definition "prescription and nonprescription medicine and drugs" includes cannabis or cannabis-infused products purchased from a dispensing organization under the Cannabis Regulation and Tax Act by a cardholder under the Compassionate Use of Medical Cannabis Act. Amends the Cannabis Regulation and Tax Act. Provides that the tax imposed under the provisions is not imposed on cannabis-infused product that is subject to tax under the Compassionate Use of Medical Cannabis Program Act or cannabis or cannabis-infused product sold to a cardholder under the Compassionate Use of Medical Cannabis Program Act. Effective January 1, 2026.
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12	12	1 AN ACT concerning revenue.
13	13	2 Be it enacted by the People of the State of Illinois,
14	14	3 represented in the General Assembly:
15	15	4 Section 5. The Retailers' Occupation Tax Act is amended by
16	16	5 changing Section 2-10 as follows:
17	17	6 (35 ILCS 120/2-10)
18	18	7 Sec. 2-10. Rate of tax. Unless otherwise provided in this
19	19	8 Section, the tax imposed by this Act is at the rate of 6.25% of
20	20	9 gross receipts from sales of tangible personal property made
21	21	10 in the course of business.
22	22	11 Beginning on July 1, 2000 and through December 31, 2000,
23	23	12 with respect to motor fuel, as defined in Section 1.1 of the
24	24	13 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
25	25	14 the Use Tax Act, the tax is imposed at the rate of 1.25%.
26	26	15 Beginning on August 6, 2010 through August 15, 2010, and
27	27	16 beginning again on August 5, 2022 through August 14, 2022,
28	28	17 with respect to sales tax holiday items as defined in Section
29	29	18 2-8 of this Act, the tax is imposed at the rate of 1.25%.
30	30	19 Within 14 days after July 1, 2000 (the effective date of
31	31	20 Public Act 91-872), each retailer of motor fuel and gasohol
32	32	21 shall cause the following notice to be posted in a prominently
33	33	22 visible place on each retail dispensing device that is used to
34	34	23 dispense motor fuel or gasohol in the State of Illinois: "As of
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38	38	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4465 Introduced , by Rep. Sonya M. Harper SYNOPSIS AS INTRODUCED:
39	39	35 ILCS 120/2-10410 ILCS 705/65-10 35 ILCS 120/2-10 410 ILCS 705/65-10
40	40	35 ILCS 120/2-10
41	41	410 ILCS 705/65-10
42	42	Amends the Retailers' Occupation Tax Act. In a provision concerning the rate of tax, provides that the definition "prescription and nonprescription medicine and drugs" includes cannabis or cannabis-infused products purchased from a dispensing organization under the Cannabis Regulation and Tax Act by a cardholder under the Compassionate Use of Medical Cannabis Act. Amends the Cannabis Regulation and Tax Act. Provides that the tax imposed under the provisions is not imposed on cannabis-infused product that is subject to tax under the Compassionate Use of Medical Cannabis Program Act or cannabis or cannabis-infused product sold to a cardholder under the Compassionate Use of Medical Cannabis Program Act. Effective January 1, 2026.
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45	45	A BILL FOR
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51	51	35 ILCS 120/2-10
52	52	410 ILCS 705/65-10
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71	71	1 July 1, 2000, the State of Illinois has eliminated the State's
72	72	2 share of sales tax on motor fuel and gasohol through December
73	73	3 31, 2000. The price on this pump should reflect the
74	74	4 elimination of the tax." The notice shall be printed in bold
75	75	5 print on a sign that is no smaller than 4 inches by 8 inches.
76	76	6 The sign shall be clearly visible to customers. Any retailer
77	77	7 who fails to post or maintain a required sign through December
78	78	8 31, 2000 is guilty of a petty offense for which the fine shall
79	79	9 be $500 per day per each retail premises where a violation
80	80	10 occurs.
81	81	11 With respect to gasohol, as defined in the Use Tax Act, the
82	82	12 tax imposed by this Act applies to (i) 70% of the proceeds of
83	83	13 sales made on or after January 1, 1990, and before July 1,
84	84	14 2003, (ii) 80% of the proceeds of sales made on or after July
85	85	15 1, 2003 and on or before July 1, 2017, (iii) 100% of the
86	86	16 proceeds of sales made after July 1, 2017 and prior to January
87	87	17 1, 2024, (iv) 90% of the proceeds of sales made on or after
88	88	18 January 1, 2024 and on or before December 31, 2028, and (v)
89	89	19 100% of the proceeds of sales made after December 31, 2028. If,
90	90	20 at any time, however, the tax under this Act on sales of
91	91	21 gasohol, as defined in the Use Tax Act, is imposed at the rate
92	92	22 of 1.25%, then the tax imposed by this Act applies to 100% of
93	93	23 the proceeds of sales of gasohol made during that time.
94	94	24 With respect to mid-range ethanol blends, as defined in
95	95	25 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
96	96	26 applies to (i) 80% of the proceeds of sales made on or after
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107	107	1 January 1, 2024 and on or before December 31, 2028 and (ii)
108	108	2 100% of the proceeds of sales made after December 31, 2028. If,
109	109	3 at any time, however, the tax under this Act on sales of
110	110	4 mid-range ethanol blends is imposed at the rate of 1.25%, then
111	111	5 the tax imposed by this Act applies to 100% of the proceeds of
112	112	6 sales of mid-range ethanol blends made during that time.
113	113	7 With respect to majority blended ethanol fuel, as defined
114	114	8 in the Use Tax Act, the tax imposed by this Act does not apply
115	115	9 to the proceeds of sales made on or after July 1, 2003 and on
116	116	10 or before December 31, 2028 but applies to 100% of the proceeds
117	117	11 of sales made thereafter.
118	118	12 With respect to biodiesel blends, as defined in the Use
119	119	13 Tax Act, with no less than 1% and no more than 10% biodiesel,
120	120	14 the tax imposed by this Act applies to (i) 80% of the proceeds
121	121	15 of sales made on or after July 1, 2003 and on or before
122	122	16 December 31, 2018 and (ii) 100% of the proceeds of sales made
123	123	17 after December 31, 2018 and before January 1, 2024. On and
124	124	18 after January 1, 2024 and on or before December 31, 2030, the
125	125	19 taxation of biodiesel, renewable diesel, and biodiesel blends
126	126	20 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
127	127	21 at any time, however, the tax under this Act on sales of
128	128	22 biodiesel blends, as defined in the Use Tax Act, with no less
129	129	23 than 1% and no more than 10% biodiesel is imposed at the rate
130	130	24 of 1.25%, then the tax imposed by this Act applies to 100% of
131	131	25 the proceeds of sales of biodiesel blends with no less than 1%
132	132	26 and no more than 10% biodiesel made during that time.
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143	143	1 With respect to biodiesel, as defined in the Use Tax Act,
144	144	2 and biodiesel blends, as defined in the Use Tax Act, with more
145	145	3 than 10% but no more than 99% biodiesel, the tax imposed by
146	146	4 this Act does not apply to the proceeds of sales made on or
147	147	5 after July 1, 2003 and on or before December 31, 2023. On and
148	148	6 after January 1, 2024 and on or before December 31, 2030, the
149	149	7 taxation of biodiesel, renewable diesel, and biodiesel blends
150	150	8 shall be as provided in Section 3-5.1 of the Use Tax Act.
151	151	9 Until July 1, 2022 and beginning again on July 1, 2023,
152	152	10 with respect to food for human consumption that is to be
153	153	11 consumed off the premises where it is sold (other than
154	154	12 alcoholic beverages, food consisting of or infused with adult
155	155	13 use cannabis, soft drinks, and food that has been prepared for
156	156	14 immediate consumption), the tax is imposed at the rate of 1%.
157	157	15 Beginning July 1, 2022 and until July 1, 2023, with respect to
158	158	16 food for human consumption that is to be consumed off the
159	159	17 premises where it is sold (other than alcoholic beverages,
160	160	18 food consisting of or infused with adult use cannabis, soft
161	161	19 drinks, and food that has been prepared for immediate
162	162	20 consumption), the tax is imposed at the rate of 0%.
163	163	21 With respect to prescription and nonprescription
164	164	22 medicines, drugs, medical appliances, products classified as
165	165	23 Class III medical devices by the United States Food and Drug
166	166	24 Administration that are used for cancer treatment pursuant to
167	167	25 a prescription, as well as any accessories and components
168	168	26 related to those devices, modifications to a motor vehicle for
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179	179	1 the purpose of rendering it usable by a person with a
180	180	2 disability, and insulin, blood sugar testing materials,
181	181	3 syringes, and needles used by human diabetics, the tax is
182	182	4 imposed at the rate of 1%. For the purposes of this Section,
183	183	5 until September 1, 2009: the term "soft drinks" means any
184	184	6 complete, finished, ready-to-use, non-alcoholic drink, whether
185	185	7 carbonated or not, including, but not limited to, soda water,
186	186	8 cola, fruit juice, vegetable juice, carbonated water, and all
187	187	9 other preparations commonly known as soft drinks of whatever
188	188	10 kind or description that are contained in any closed or sealed
189	189	11 bottle, can, carton, or container, regardless of size; but
190	190	12 "soft drinks" does not include coffee, tea, non-carbonated
191	191	13 water, infant formula, milk or milk products as defined in the
192	192	14 Grade A Pasteurized Milk and Milk Products Act, or drinks
193	193	15 containing 50% or more natural fruit or vegetable juice.
194	194	16 Notwithstanding any other provisions of this Act,
195	195	17 beginning September 1, 2009, "soft drinks" means non-alcoholic
196	196	18 beverages that contain natural or artificial sweeteners. "Soft
197	197	19 drinks" does not include beverages that contain milk or milk
198	198	20 products, soy, rice or similar milk substitutes, or greater
199	199	21 than 50% of vegetable or fruit juice by volume.
200	200	22 Until August 1, 2009, and notwithstanding any other
201	201	23 provisions of this Act, "food for human consumption that is to
202	202	24 be consumed off the premises where it is sold" includes all
203	203	25 food sold through a vending machine, except soft drinks and
204	204	26 food products that are dispensed hot from a vending machine,
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215	215	1 regardless of the location of the vending machine. Beginning
216	216	2 August 1, 2009, and notwithstanding any other provisions of
217	217	3 this Act, "food for human consumption that is to be consumed
218	218	4 off the premises where it is sold" includes all food sold
219	219	5 through a vending machine, except soft drinks, candy, and food
220	220	6 products that are dispensed hot from a vending machine,
221	221	7 regardless of the location of the vending machine.
222	222	8 Notwithstanding any other provisions of this Act,
223	223	9 beginning September 1, 2009, "food for human consumption that
224	224	10 is to be consumed off the premises where it is sold" does not
225	225	11 include candy. For purposes of this Section, "candy" means a
226	226	12 preparation of sugar, honey, or other natural or artificial
227	227	13 sweeteners in combination with chocolate, fruits, nuts or
228	228	14 other ingredients or flavorings in the form of bars, drops, or
229	229	15 pieces. "Candy" does not include any preparation that contains
230	230	16 flour or requires refrigeration.
231	231	17 Notwithstanding any other provisions of this Act,
232	232	18 beginning September 1, 2009, "nonprescription medicines and
233	233	19 drugs" does not include grooming and hygiene products. For
234	234	20 purposes of this Section, "grooming and hygiene products"
235	235	21 includes, but is not limited to, soaps and cleaning solutions,
236	236	22 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
237	237	23 lotions and screens, unless those products are available by
238	238	24 prescription only, regardless of whether the products meet the
239	239	25 definition of "over-the-counter-drugs". For the purposes of
240	240	26 this paragraph, "over-the-counter-drug" means a drug for human
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251	251	1 use that contains a label that identifies the product as a drug
252	252	2 as required by 21 CFR 201.66. The "over-the-counter-drug"
253	253	3 label includes:
254	254	4 (A) a "Drug Facts" panel; or
255	255	5 (B) a statement of the "active ingredient(s)" with a
256	256	6 list of those ingredients contained in the compound,
257	257	7 substance or preparation.
258	258	8 Beginning on January 1, 2014 (the effective date of Public
259	259	9 Act 98-122), "prescription and nonprescription medicines and
260	260	10 drugs" includes medical cannabis purchased from a registered
261	261	11 dispensing organization under the Compassionate Use of Medical
262	262	12 Cannabis Program Act.
263	263	13 Beginning on January 1, 2026, "prescription and
264	264	14 nonprescription medicine and drugs" includes cannabis or
265	265	15 cannabis-infused products purchased from a dispensing
266	266	16 organization under the Cannabis Regulation and Tax Act by a
267	267	17 cardholder, as defined under Section 10 of the Compassionate
268	268	18 Use of Medical Cannabis Act.
269	269	19 As used in this Section, "adult use cannabis" means
270	270	20 cannabis subject to tax under the Cannabis Cultivation
271	271	21 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
272	272	22 and does not include cannabis or cannabis-infused product sold
273	273	23 to a cardholder, as defined under Section 10 of the
274	274	24 Compassionate Use of Medical Cannabis Act subject to tax under
275	275	25 the Compassionate Use of Medical Cannabis Program Act.
276	276	26 (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
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287	287	1 Section 20-20, eff. 4-19-22; 102-700, Article 60, Section
288	288	2 60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff.
289	289	3 4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.)
290	290	4 Section 10. The Cannabis Regulation and Tax Act is amended
291	291	5 by changing Section 65-10 as follows:
292	292	6 (410 ILCS 705/65-10)
293	293	7 Sec. 65-10. Tax imposed.
294	294	8 (a) Beginning January 1, 2020, a tax is imposed upon
295	295	9 purchasers for the privilege of using cannabis at the
296	296	10 following rates:
297	297	11 (1) Any cannabis, other than a cannabis-infused
298	298	12 product, with an adjusted delta-9-tetrahydrocannabinol
299	299	13 level at or below 35% shall be taxed at a rate of 10% of
300	300	14 the purchase price;
301	301	15 (2) Any cannabis, other than a cannabis-infused
302	302	16 product, with an adjusted delta-9-tetrahydrocannabinol
303	303	17 level above 35% shall be taxed at a rate of 25% of the
304	304	18 purchase price; and
305	305	19 (3) A cannabis-infused product shall be taxed at a
306	306	20 rate of 20% of the purchase price.
307	307	21 (b) The purchase of any product that contains any amount
308	308	22 of cannabis or any derivative thereof is subject to the tax
309	309	23 under subsection (a) of this Section on the full purchase
310	310	24 price of the product.
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321	321	1 (c) The tax imposed under this Section is not imposed on
322	322	2 cannabis or cannabis-infused product that is subject to tax
323	323	3 under the Compassionate Use of Medical Cannabis Program Act or
324	324	4 on cannabis or cannabis-infused product sold to a cardholder,
325	325	5 as defined under Section 10 of the Compassionate Use of
326	326	6 Medical Cannabis Program Act. The tax imposed by this Section
327	327	7 is not imposed with respect to any transaction in interstate
328	328	8 commerce, to the extent the transaction may not, under the
329	329	9 Constitution and statutes of the United States, be made the
330	330	10 subject of taxation by this State.
331	331	11 (d) The tax imposed under this Article shall be in
332	332	12 addition to all other occupation, privilege, or excise taxes
333	333	13 imposed by the State of Illinois or by any municipal
334	334	14 corporation or political subdivision thereof.
335	335	15 (e) The tax imposed under this Article shall not be
336	336	16 imposed on any purchase by a purchaser if the cannabis
337	337	17 retailer is prohibited by federal or State Constitution,
338	338	18 treaty, convention, statute, or court decision from collecting
339	339	19 the tax from the purchaser.
340	340	20 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
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