Illinois 2023-2024 Regular Session

Illinois Senate Bill SB0271 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 SB0271 Introduced 1/31/2023, by Sen. Craig Wilcox 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 120/2d from Ch. 120, par. 441d Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning 30 days after the effective date of the amendatory Act, the cents per gallon rate established by the Department of Revenue for the prepayment of tax by motor fuel retailers may not exceed $0.18 per gallon for motor fuel and 80% of that amount for gasohol and biodiesel blends. Provides that the rate of tax imposed under the Acts for motor fuel, gasohol, majority blended ethanol fuel, and biodiesel and biodiesel blends may not exceed that prepayment amount set by the Department of Revenue. Effective immediately. LRB103 25698 HLH 52047 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0271 Introduced 1/31/2023, by Sen. Craig Wilcox 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 120/2d from Ch. 120, par. 441d 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 120/2d from Ch. 120, par. 441d Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning 30 days after the effective date of the amendatory Act, the cents per gallon rate established by the Department of Revenue for the prepayment of tax by motor fuel retailers may not exceed $0.18 per gallon for motor fuel and 80% of that amount for gasohol and biodiesel blends. Provides that the rate of tax imposed under the Acts for motor fuel, gasohol, majority blended ethanol fuel, and biodiesel and biodiesel blends may not exceed that prepayment amount set by the Department of Revenue. Effective immediately. LRB103 25698 HLH 52047 b LRB103 25698 HLH 52047 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0271 Introduced 1/31/2023, by Sen. Craig Wilcox 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 120/2d from Ch. 120, par. 441d 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 120/2d from Ch. 120, par. 441d
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	35 ILCS 120/2d from Ch. 120, par. 441d
9	9	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning 30 days after the effective date of the amendatory Act, the cents per gallon rate established by the Department of Revenue for the prepayment of tax by motor fuel retailers may not exceed $0.18 per gallon for motor fuel and 80% of that amount for gasohol and biodiesel blends. Provides that the rate of tax imposed under the Acts for motor fuel, gasohol, majority blended ethanol fuel, and biodiesel and biodiesel blends may not exceed that prepayment amount set by the Department of Revenue. Effective immediately.
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12	12	A BILL FOR
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15	15	1 AN ACT concerning revenue.
16	16	2 Be it enacted by the People of the State of Illinois,
17	17	3 represented in the General Assembly:
18	18	4 Section 5. The Use Tax Act is amended by changing Section
19	19	5 3-10 as follows:
20	20	6 (35 ILCS 105/3-10)
21	21	7 Sec. 3-10. Rate of tax. Unless otherwise provided in this
22	22	8 Section, the tax imposed by this Act is at the rate of 6.25% of
23	23	9 either the selling price or the fair market value, if any, of
24	24	10 the tangible personal property. In all cases where property
25	25	11 functionally used or consumed is the same as the property that
26	26	12 was purchased at retail, then the tax is imposed on the selling
27	27	13 price of the property. In all cases where property
28	28	14 functionally used or consumed is a by-product or waste product
29	29	15 that has been refined, manufactured, or produced from property
30	30	16 purchased at retail, then the tax is imposed on the lower of
31	31	17 the fair market value, if any, of the specific property so used
32	32	18 in this State or on the selling price of the property purchased
33	33	19 at retail. For purposes of this Section "fair market value"
34	34	20 means the price at which property would change hands between a
35	35	21 willing buyer and a willing seller, neither being under any
36	36	22 compulsion to buy or sell and both having reasonable knowledge
37	37	23 of the relevant facts. The fair market value shall be
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41	41	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0271 Introduced 1/31/2023, by Sen. Craig Wilcox SYNOPSIS AS INTRODUCED:
42	42	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 120/2d from Ch. 120, par. 441d 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 120/2d from Ch. 120, par. 441d
43	43	35 ILCS 105/3-10
44	44	35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
45	45	35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
46	46	35 ILCS 120/2-10
47	47	35 ILCS 120/2d from Ch. 120, par. 441d
48	48	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning 30 days after the effective date of the amendatory Act, the cents per gallon rate established by the Department of Revenue for the prepayment of tax by motor fuel retailers may not exceed $0.18 per gallon for motor fuel and 80% of that amount for gasohol and biodiesel blends. Provides that the rate of tax imposed under the Acts for motor fuel, gasohol, majority blended ethanol fuel, and biodiesel and biodiesel blends may not exceed that prepayment amount set by the Department of Revenue. Effective immediately.
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50	50	LRB103 25698 HLH 52047 b
51	51	A BILL FOR
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57	57	35 ILCS 105/3-10
58	58	35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
59	59	35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
60	60	35 ILCS 120/2-10
61	61	35 ILCS 120/2d from Ch. 120, par. 441d
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80	80	1 established by Illinois sales by the taxpayer of the same
81	81	2 property as that functionally used or consumed, or if there
82	82	3 are no such sales by the taxpayer, then comparable sales or
83	83	4 purchases of property of like kind and character in Illinois.
84	84	5 Beginning on July 1, 2000 and through December 31, 2000,
85	85	6 with respect to motor fuel, as defined in Section 1.1 of the
86	86	7 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
87	87	8 the Use Tax Act, the tax is imposed at the rate of 1.25%.
88	88	9 Beginning 30 days after the effective date of this
89	89	10 amendatory Act of the 103rd General Assembly, the tax imposed
90	90	11 under this Act on the following items may not exceed the cents
91	91	12 per gallon rate established by the Department under subsection
92	92	13 (e) of Section 2d of the Retailers' Occupation Tax Act: motor
93	93	14 fuel, as defined in Section 1.1 of the Motor Fuel Tax Law;
94	94	15 gasohol, as defined in Section 3-40 of this Act; majority
95	95	16 blended ethanol fuel; and biodiesel and biodiesel blends. With
96	96	17 respect to the tax imposed on biodiesel blends and gasohol,
97	97	18 the maximum cents per gallon rate shall include the reduction
98	98	19 allowed in subsection (e) of Section 2d of the Retailers'
99	99	20 Occupation Tax Act.
100	100	21 Beginning on August 6, 2010 through August 15, 2010, and
101	101	22 beginning again on August 5, 2022 through August 14, 2022,
102	102	23 with respect to sales tax holiday items as defined in Section
103	103	24 3-6 of this Act, the tax is imposed at the rate of 1.25%.
104	104	25 With respect to gasohol, the tax imposed by this Act
105	105	26 applies to (i) 70% of the proceeds of sales made on or after
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116	116	1 January 1, 1990, and before July 1, 2003, (ii) 80% of the
117	117	2 proceeds of sales made on or after July 1, 2003 and on or
118	118	3 before July 1, 2017, and (iii) 100% of the proceeds of sales
119	119	4 made thereafter. If, at any time, however, the tax under this
120	120	5 Act on sales of gasohol is imposed at the rate of 1.25%, then
121	121	6 the tax imposed by this Act applies to 100% of the proceeds of
122	122	7 sales of gasohol made during that time.
123	123	8 With respect to majority blended ethanol fuel, the tax
124	124	9 imposed by this Act does not apply to the proceeds of sales
125	125	10 made on or after July 1, 2003 and on or before December 31,
126	126	11 2023 but applies to 100% of the proceeds of sales made
127	127	12 thereafter.
128	128	13 With respect to biodiesel blends with no less than 1% and
129	129	14 no more than 10% biodiesel, the tax imposed by this Act applies
130	130	15 to (i) 80% of the proceeds of sales made on or after July 1,
131	131	16 2003 and on or before December 31, 2018 and (ii) 100% of the
132	132	17 proceeds of sales made after December 31, 2018 and before
133	133	18 January 1, 2024. On and after January 1, 2024 and on or before
134	134	19 December 31, 2030, the taxation of biodiesel, renewable
135	135	20 diesel, and biodiesel blends shall be as provided in Section
136	136	21 3-5.1. If, at any time, however, the tax under this Act on
137	137	22 sales of biodiesel blends with no less than 1% and no more than
138	138	23 10% biodiesel is imposed at the rate of 1.25%, then the tax
139	139	24 imposed by this Act applies to 100% of the proceeds of sales of
140	140	25 biodiesel blends with no less than 1% and no more than 10%
141	141	26 biodiesel made during that time.
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152	152	1 With respect to biodiesel and biodiesel blends with more
153	153	2 than 10% but no more than 99% biodiesel, the tax imposed by
154	154	3 this Act does not apply to the proceeds of sales made on or
155	155	4 after July 1, 2003 and on or before December 31, 2023. On and
156	156	5 after January 1, 2024 and on or before December 31, 2030, the
157	157	6 taxation of biodiesel, renewable diesel, and biodiesel blends
158	158	7 shall be as provided in Section 3-5.1.
159	159	8 Until July 1, 2022 and beginning again on July 1, 2023,
160	160	9 with respect to food for human consumption that is to be
161	161	10 consumed off the premises where it is sold (other than
162	162	11 alcoholic beverages, food consisting of or infused with adult
163	163	12 use cannabis, soft drinks, and food that has been prepared for
164	164	13 immediate consumption), the tax is imposed at the rate of 1%.
165	165	14 Beginning on July 1, 2022 and until July 1, 2023, with respect
166	166	15 to food for human consumption that is to be consumed off the
167	167	16 premises where it is sold (other than alcoholic beverages,
168	168	17 food consisting of or infused with adult use cannabis, soft
169	169	18 drinks, and food that has been prepared for immediate
170	170	19 consumption), the tax is imposed at the rate of 0%.
171	171	20 With respect to prescription and nonprescription
172	172	21 medicines, drugs, medical appliances, products classified as
173	173	22 Class III medical devices by the United States Food and Drug
174	174	23 Administration that are used for cancer treatment pursuant to
175	175	24 a prescription, as well as any accessories and components
176	176	25 related to those devices, modifications to a motor vehicle for
177	177	26 the purpose of rendering it usable by a person with a
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188	188	1 disability, and insulin, blood sugar testing materials,
189	189	2 syringes, and needles used by human diabetics, the tax is
190	190	3 imposed at the rate of 1%. For the purposes of this Section,
191	191	4 until September 1, 2009: the term "soft drinks" means any
192	192	5 complete, finished, ready-to-use, non-alcoholic drink, whether
193	193	6 carbonated or not, including, but not limited to, soda water,
194	194	7 cola, fruit juice, vegetable juice, carbonated water, and all
195	195	8 other preparations commonly known as soft drinks of whatever
196	196	9 kind or description that are contained in any closed or sealed
197	197	10 bottle, can, carton, or container, regardless of size; but
198	198	11 "soft drinks" does not include coffee, tea, non-carbonated
199	199	12 water, infant formula, milk or milk products as defined in the
200	200	13 Grade A Pasteurized Milk and Milk Products Act, or drinks
201	201	14 containing 50% or more natural fruit or vegetable juice.
202	202	15 Notwithstanding any other provisions of this Act,
203	203	16 beginning September 1, 2009, "soft drinks" means non-alcoholic
204	204	17 beverages that contain natural or artificial sweeteners. "Soft
205	205	18 drinks" does do not include beverages that contain milk or
206	206	19 milk products, soy, rice or similar milk substitutes, or
207	207	20 greater than 50% of vegetable or fruit juice by volume.
208	208	21 Until August 1, 2009, and notwithstanding any other
209	209	22 provisions of this Act, "food for human consumption that is to
210	210	23 be consumed off the premises where it is sold" includes all
211	211	24 food sold through a vending machine, except soft drinks and
212	212	25 food products that are dispensed hot from a vending machine,
213	213	26 regardless of the location of the vending machine. Beginning
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224	224	1 August 1, 2009, and notwithstanding any other provisions of
225	225	2 this Act, "food for human consumption that is to be consumed
226	226	3 off the premises where it is sold" includes all food sold
227	227	4 through a vending machine, except soft drinks, candy, and food
228	228	5 products that are dispensed hot from a vending machine,
229	229	6 regardless of the location of the vending machine.
230	230	7 Notwithstanding any other provisions of this Act,
231	231	8 beginning September 1, 2009, "food for human consumption that
232	232	9 is to be consumed off the premises where it is sold" does not
233	233	10 include candy. For purposes of this Section, "candy" means a
234	234	11 preparation of sugar, honey, or other natural or artificial
235	235	12 sweeteners in combination with chocolate, fruits, nuts or
236	236	13 other ingredients or flavorings in the form of bars, drops, or
237	237	14 pieces. "Candy" does not include any preparation that contains
238	238	15 flour or requires refrigeration.
239	239	16 Notwithstanding any other provisions of this Act,
240	240	17 beginning September 1, 2009, "nonprescription medicines and
241	241	18 drugs" does not include grooming and hygiene products. For
242	242	19 purposes of this Section, "grooming and hygiene products"
243	243	20 includes, but is not limited to, soaps and cleaning solutions,
244	244	21 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
245	245	22 lotions and screens, unless those products are available by
246	246	23 prescription only, regardless of whether the products meet the
247	247	24 definition of "over-the-counter-drugs". For the purposes of
248	248	25 this paragraph, "over-the-counter-drug" means a drug for human
249	249	26 use that contains a label that identifies the product as a drug
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260	260	1 as required by 21 CFR C.F.R. 201.66. The
261	261	2 "over-the-counter-drug" label includes:
262	262	3 (A) a A "Drug Facts" panel; or
263	263	4 (B) a A statement of the "active ingredient(s)" with a
264	264	5 list of those ingredients contained in the compound,
265	265	6 substance or preparation.
266	266	7 Beginning on January 1, 2014 (the effective date of Public
267	267	8 Act 98-122) this amendatory Act of the 98th General Assembly,
268	268	9 "prescription and nonprescription medicines and drugs"
269	269	10 includes medical cannabis purchased from a registered
270	270	11 dispensing organization under the Compassionate Use of Medical
271	271	12 Cannabis Program Act.
272	272	13 As used in this Section, "adult use cannabis" means
273	273	14 cannabis subject to tax under the Cannabis Cultivation
274	274	15 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
275	275	16 and does not include cannabis subject to tax under the
276	276	17 Compassionate Use of Medical Cannabis Program Act.
277	277	18 If the property that is purchased at retail from a
278	278	19 retailer is acquired outside Illinois and used outside
279	279	20 Illinois before being brought to Illinois for use here and is
280	280	21 taxable under this Act, the "selling price" on which the tax is
281	281	22 computed shall be reduced by an amount that represents a
282	282	23 reasonable allowance for depreciation for the period of prior
283	283	24 out-of-state use.
284	284	25 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
285	285	26 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.
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296	296	1 4-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;
297	297	2 102-700, Article 65, Section 65-5, eff. 4-19-22; revised
298	298	3 5-27-22.)
299	299	4 Section 10. The Service Use Tax Act is amended by changing
300	300	5 Section 3-10 as follows:
301	301	6 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
302	302	7 Sec. 3-10. Rate of tax. Unless otherwise provided in this
303	303	8 Section, the tax imposed by this Act is at the rate of 6.25% of
304	304	9 the selling price of tangible personal property transferred as
305	305	10 an incident to the sale of service, but, for the purpose of
306	306	11 computing this tax, in no event shall the selling price be less
307	307	12 than the cost price of the property to the serviceman.
308	308	13 Beginning on July 1, 2000 and through December 31, 2000,
309	309	14 with respect to motor fuel, as defined in Section 1.1 of the
310	310	15 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
311	311	16 the Use Tax Act, the tax is imposed at the rate of 1.25%.
312	312	17 Beginning 30 days after the effective date of this
313	313	18 amendatory Act of the 103rd General Assembly, the tax imposed
314	314	19 under this Act on the following items may not exceed the cents
315	315	20 per gallon rate established by the Department under subsection
316	316	21 (e) of Section 2d of the Retailers' Occupation Tax Act: motor
317	317	22 fuel, as defined in Section 1.1 of the Motor Fuel Tax Law;
318	318	23 gasohol, as defined in Section 3-40 of the Use Tax Act;
319	319	24 majority blended ethanol fuel; and biodiesel and biodiesel
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330	330	1 blends. With respect to the tax imposed on biodiesel blends
331	331	2 and gasohol, the maximum cents per gallon rate shall include
332	332	3 the reduction allowed in subsection (e) of Section 2d of the
333	333	4 Retailers' Occupation Tax Act.
334	334	5 With respect to gasohol, as defined in the Use Tax Act, the
335	335	6 tax imposed by this Act applies to (i) 70% of the selling price
336	336	7 of property transferred as an incident to the sale of service
337	337	8 on or after January 1, 1990, and before July 1, 2003, (ii) 80%
338	338	9 of the selling price of property transferred as an incident to
339	339	10 the sale of service on or after July 1, 2003 and on or before
340	340	11 July 1, 2017, and (iii) 100% of the selling price thereafter.
341	341	12 If, at any time, however, the tax under this Act on sales of
342	342	13 gasohol, as defined in the Use Tax Act, is imposed at the rate
343	343	14 of 1.25%, then the tax imposed by this Act applies to 100% of
344	344	15 the proceeds of sales of gasohol made during that time.
345	345	16 With respect to majority blended ethanol fuel, as defined
346	346	17 in the Use Tax Act, the tax imposed by this Act does not apply
347	347	18 to the selling price of property transferred as an incident to
348	348	19 the sale of service on or after July 1, 2003 and on or before
349	349	20 December 31, 2023 but applies to 100% of the selling price
350	350	21 thereafter.
351	351	22 With respect to biodiesel blends, as defined in the Use
352	352	23 Tax Act, with no less than 1% and no more than 10% biodiesel,
353	353	24 the tax imposed by this Act applies to (i) 80% of the selling
354	354	25 price of property transferred as an incident to the sale of
355	355	26 service on or after July 1, 2003 and on or before December 31,
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366	366	1 2018 and (ii) 100% of the proceeds of the selling price after
367	367	2 December 31, 2018 and before January 1, 2024. On and after
368	368	3 January 1, 2024 and on or before December 31, 2030, the
369	369	4 taxation of biodiesel, renewable diesel, and biodiesel blends
370	370	5 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
371	371	6 at any time, however, the tax under this Act on sales of
372	372	7 biodiesel blends, as defined in the Use Tax Act, with no less
373	373	8 than 1% and no more than 10% biodiesel is imposed at the rate
374	374	9 of 1.25%, then the tax imposed by this Act applies to 100% of
375	375	10 the proceeds of sales of biodiesel blends with no less than 1%
376	376	11 and no more than 10% biodiesel made during that time.
377	377	12 With respect to biodiesel, as defined in the Use Tax Act,
378	378	13 and biodiesel blends, as defined in the Use Tax Act, with more
379	379	14 than 10% but no more than 99% biodiesel, the tax imposed by
380	380	15 this Act does not apply to the proceeds of the selling price of
381	381	16 property transferred as an incident to the sale of service on
382	382	17 or after July 1, 2003 and on or before December 31, 2023. On
383	383	18 and after January 1, 2024 and on or before December 31, 2030,
384	384	19 the taxation of biodiesel, renewable diesel, and biodiesel
385	385	20 blends shall be as provided in Section 3-5.1 of the Use Tax
386	386	21 Act.
387	387	22 At the election of any registered serviceman made for each
388	388	23 fiscal year, sales of service in which the aggregate annual
389	389	24 cost price of tangible personal property transferred as an
390	390	25 incident to the sales of service is less than 35%, or 75% in
391	391	26 the case of servicemen transferring prescription drugs or
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400	400	SB0271- 11 -LRB103 25698 HLH 52047 b SB0271 - 11 - LRB103 25698 HLH 52047 b
401	401	SB0271 - 11 - LRB103 25698 HLH 52047 b
402	402	1 servicemen engaged in graphic arts production, of the
403	403	2 aggregate annual total gross receipts from all sales of
404	404	3 service, the tax imposed by this Act shall be based on the
405	405	4 serviceman's cost price of the tangible personal property
406	406	5 transferred as an incident to the sale of those services.
407	407	6 Until July 1, 2022 and beginning again on July 1, 2023, the
408	408	7 tax shall be imposed at the rate of 1% on food prepared for
409	409	8 immediate consumption and transferred incident to a sale of
410	410	9 service subject to this Act or the Service Occupation Tax Act
411	411	10 by an entity licensed under the Hospital Licensing Act, the
412	412	11 Nursing Home Care Act, the Assisted Living and Shared Housing
413	413	12 Act, the ID/DD Community Care Act, the MC/DD Act, the
414	414	13 Specialized Mental Health Rehabilitation Act of 2013, or the
415	415	14 Child Care Act of 1969, or an entity that holds a permit issued
416	416	15 pursuant to the Life Care Facilities Act. Until July 1, 2022
417	417	16 and beginning again on July 1, 2023, the tax shall also be
418	418	17 imposed at the rate of 1% on food for human consumption that is
419	419	18 to be consumed off the premises where it is sold (other than
420	420	19 alcoholic beverages, food consisting of or infused with adult
421	421	20 use cannabis, soft drinks, and food that has been prepared for
422	422	21 immediate consumption and is not otherwise included in this
423	423	22 paragraph).
424	424	23 Beginning on July 1, 2022 and until July 1, 2023, the tax
425	425	24 shall be imposed at the rate of 0% on food prepared for
426	426	25 immediate consumption and transferred incident to a sale of
427	427	26 service subject to this Act or the Service Occupation Tax Act
428	428
429	429
430	430
431	431
432	432
433	433	SB0271 - 11 - LRB103 25698 HLH 52047 b
434	434
435	435
436	436	SB0271- 12 -LRB103 25698 HLH 52047 b SB0271 - 12 - LRB103 25698 HLH 52047 b
437	437	SB0271 - 12 - LRB103 25698 HLH 52047 b
438	438	1 by an entity licensed under the Hospital Licensing Act, the
439	439	2 Nursing Home Care Act, the Assisted Living and Shared Housing
440	440	3 Act, the ID/DD Community Care Act, the MC/DD Act, the
441	441	4 Specialized Mental Health Rehabilitation Act of 2013, or the
442	442	5 Child Care Act of 1969, or an entity that holds a permit issued
443	443	6 pursuant to the Life Care Facilities Act. Beginning on July 1,
444	444	7 2022 and until July 1, 2023, the tax shall also be imposed at
445	445	8 the rate of 0% on food for human consumption that is to be
446	446	9 consumed off the premises where it is sold (other than
447	447	10 alcoholic beverages, food consisting of or infused with adult
448	448	11 use cannabis, soft drinks, and food that has been prepared for
449	449	12 immediate consumption and is not otherwise included in this
450	450	13 paragraph).
451	451	14 The tax shall also be imposed at the rate of 1% on
452	452	15 prescription and nonprescription medicines, drugs, medical
453	453	16 appliances, products classified as Class III medical devices
454	454	17 by the United States Food and Drug Administration that are
455	455	18 used for cancer treatment pursuant to a prescription, as well
456	456	19 as any accessories and components related to those devices,
457	457	20 modifications to a motor vehicle for the purpose of rendering
458	458	21 it usable by a person with a disability, and insulin, blood
459	459	22 sugar testing materials, syringes, and needles used by human
460	460	23 diabetics. For the purposes of this Section, until September
461	461	24 1, 2009: the term "soft drinks" means any complete, finished,
462	462	25 ready-to-use, non-alcoholic drink, whether carbonated or not,
463	463	26 including, but not limited to, soda water, cola, fruit juice,
464	464
465	465
466	466
467	467
468	468
469	469	SB0271 - 12 - LRB103 25698 HLH 52047 b
470	470
471	471
472	472	SB0271- 13 -LRB103 25698 HLH 52047 b SB0271 - 13 - LRB103 25698 HLH 52047 b
473	473	SB0271 - 13 - LRB103 25698 HLH 52047 b
474	474	1 vegetable juice, carbonated water, and all other preparations
475	475	2 commonly known as soft drinks of whatever kind or description
476	476	3 that are contained in any closed or sealed bottle, can,
477	477	4 carton, or container, regardless of size; but "soft drinks"
478	478	5 does not include coffee, tea, non-carbonated water, infant
479	479	6 formula, milk or milk products as defined in the Grade A
480	480	7 Pasteurized Milk and Milk Products Act, or drinks containing
481	481	8 50% or more natural fruit or vegetable juice.
482	482	9 Notwithstanding any other provisions of this Act,
483	483	10 beginning September 1, 2009, "soft drinks" means non-alcoholic
484	484	11 beverages that contain natural or artificial sweeteners. "Soft
485	485	12 drinks" does do not include beverages that contain milk or
486	486	13 milk products, soy, rice or similar milk substitutes, or
487	487	14 greater than 50% of vegetable or fruit juice by volume.
488	488	15 Until August 1, 2009, and notwithstanding any other
489	489	16 provisions of this Act, "food for human consumption that is to
490	490	17 be consumed off the premises where it is sold" includes all
491	491	18 food sold through a vending machine, except soft drinks and
492	492	19 food products that are dispensed hot from a vending machine,
493	493	20 regardless of the location of the vending machine. Beginning
494	494	21 August 1, 2009, and notwithstanding any other provisions of
495	495	22 this Act, "food for human consumption that is to be consumed
496	496	23 off the premises where it is sold" includes all food sold
497	497	24 through a vending machine, except soft drinks, candy, and food
498	498	25 products that are dispensed hot from a vending machine,
499	499	26 regardless of the location of the vending machine.
500	500
501	501
502	502
503	503
504	504
505	505	SB0271 - 13 - LRB103 25698 HLH 52047 b
506	506
507	507
508	508	SB0271- 14 -LRB103 25698 HLH 52047 b SB0271 - 14 - LRB103 25698 HLH 52047 b
509	509	SB0271 - 14 - LRB103 25698 HLH 52047 b
510	510	1 Notwithstanding any other provisions of this Act,
511	511	2 beginning September 1, 2009, "food for human consumption that
512	512	3 is to be consumed off the premises where it is sold" does not
513	513	4 include candy. For purposes of this Section, "candy" means a
514	514	5 preparation of sugar, honey, or other natural or artificial
515	515	6 sweeteners in combination with chocolate, fruits, nuts or
516	516	7 other ingredients or flavorings in the form of bars, drops, or
517	517	8 pieces. "Candy" does not include any preparation that contains
518	518	9 flour or requires refrigeration.
519	519	10 Notwithstanding any other provisions of this Act,
520	520	11 beginning September 1, 2009, "nonprescription medicines and
521	521	12 drugs" does not include grooming and hygiene products. For
522	522	13 purposes of this Section, "grooming and hygiene products"
523	523	14 includes, but is not limited to, soaps and cleaning solutions,
524	524	15 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
525	525	16 lotions and screens, unless those products are available by
526	526	17 prescription only, regardless of whether the products meet the
527	527	18 definition of "over-the-counter-drugs". For the purposes of
528	528	19 this paragraph, "over-the-counter-drug" means a drug for human
529	529	20 use that contains a label that identifies the product as a drug
530	530	21 as required by 21 CFR C.F.R. 201.66. The
531	531	22 "over-the-counter-drug" label includes:
532	532	23 (A) a A "Drug Facts" panel; or
533	533	24 (B) a A statement of the "active ingredient(s)" with a
534	534	25 list of those ingredients contained in the compound,
535	535	26 substance or preparation.
536	536
537	537
538	538
539	539
540	540
541	541	SB0271 - 14 - LRB103 25698 HLH 52047 b
542	542
543	543
544	544	SB0271- 15 -LRB103 25698 HLH 52047 b SB0271 - 15 - LRB103 25698 HLH 52047 b
545	545	SB0271 - 15 - LRB103 25698 HLH 52047 b
546	546	1 Beginning on January 1, 2014 (the effective date of Public
547	547	2 Act 98-122), "prescription and nonprescription medicines and
548	548	3 drugs" includes medical cannabis purchased from a registered
549	549	4 dispensing organization under the Compassionate Use of Medical
550	550	5 Cannabis Program Act.
551	551	6 As used in this Section, "adult use cannabis" means
552	552	7 cannabis subject to tax under the Cannabis Cultivation
553	553	8 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
554	554	9 and does not include cannabis subject to tax under the
555	555	10 Compassionate Use of Medical Cannabis Program Act.
556	556	11 If the property that is acquired from a serviceman is
557	557	12 acquired outside Illinois and used outside Illinois before
558	558	13 being brought to Illinois for use here and is taxable under
559	559	14 this Act, the "selling price" on which the tax is computed
560	560	15 shall be reduced by an amount that represents a reasonable
561	561	16 allowance for depreciation for the period of prior
562	562	17 out-of-state use.
563	563	18 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
564	564	19 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
565	565	20 20, Section 20-10, eff. 4-19-22; 102-700, Article 60, Section
566	566	21 60-20, eff. 4-19-22; revised 6-1-22.)
567	567	22 Section 15. The Service Occupation Tax Act is amended by
568	568	23 changing Section 3-10 as follows:
569	569	24 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
570	570
571	571
572	572
573	573
574	574
575	575	SB0271 - 15 - LRB103 25698 HLH 52047 b
576	576
577	577
578	578	SB0271- 16 -LRB103 25698 HLH 52047 b SB0271 - 16 - LRB103 25698 HLH 52047 b
579	579	SB0271 - 16 - LRB103 25698 HLH 52047 b
580	580	1 Sec. 3-10. Rate of tax. Unless otherwise provided in this
581	581	2 Section, the tax imposed by this Act is at the rate of 6.25% of
582	582	3 the "selling price", as defined in Section 2 of the Service Use
583	583	4 Tax Act, of the tangible personal property. For the purpose of
584	584	5 computing this tax, in no event shall the "selling price" be
585	585	6 less than the cost price to the serviceman of the tangible
586	586	7 personal property transferred. The selling price of each item
587	587	8 of tangible personal property transferred as an incident of a
588	588	9 sale of service may be shown as a distinct and separate item on
589	589	10 the serviceman's billing to the service customer. If the
590	590	11 selling price is not so shown, the selling price of the
591	591	12 tangible personal property is deemed to be 50% of the
592	592	13 serviceman's entire billing to the service customer. When,
593	593	14 however, a serviceman contracts to design, develop, and
594	594	15 produce special order machinery or equipment, the tax imposed
595	595	16 by this Act shall be based on the serviceman's cost price of
596	596	17 the tangible personal property transferred incident to the
597	597	18 completion of the contract.
598	598	19 Beginning on July 1, 2000 and through December 31, 2000,
599	599	20 with respect to motor fuel, as defined in Section 1.1 of the
600	600	21 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
601	601	22 the Use Tax Act, the tax is imposed at the rate of 1.25%.
602	602	23 Beginning 30 days after the effective date of this
603	603	24 amendatory Act of the 103rd General Assembly, the tax imposed
604	604	25 under this Act on the following items may not exceed the cents
605	605	26 per gallon rate established by the Department under subsection
606	606
607	607
608	608
609	609
610	610
611	611	SB0271 - 16 - LRB103 25698 HLH 52047 b
612	612
613	613
614	614	SB0271- 17 -LRB103 25698 HLH 52047 b SB0271 - 17 - LRB103 25698 HLH 52047 b
615	615	SB0271 - 17 - LRB103 25698 HLH 52047 b
616	616	1 (e) of Section 2d of the Retailers' Occupation Tax Act: motor
617	617	2 fuel, as defined in Section 1.1 of the Motor Fuel Tax Law;
618	618	3 gasohol, as defined in Section 3-40 of the Use Tax Act;
619	619	4 majority blended ethanol fuel; and biodiesel and biodiesel
620	620	5 blends. With respect to the tax imposed on biodiesel blends
621	621	6 and gasohol, the maximum cents per gallon rate shall include
622	622	7 the reduction allowed in subsection (e) of Section 2d of the
623	623	8 Retailers' Occupation Tax Act.
624	624	9 With respect to gasohol, as defined in the Use Tax Act, the
625	625	10 tax imposed by this Act shall apply to (i) 70% of the cost
626	626	11 price of property transferred as an incident to the sale of
627	627	12 service on or after January 1, 1990, and before July 1, 2003,
628	628	13 (ii) 80% of the selling price of property transferred as an
629	629	14 incident to the sale of service on or after July 1, 2003 and on
630	630	15 or before July 1, 2017, and (iii) 100% of the cost price
631	631	16 thereafter. If, at any time, however, the tax under this Act on
632	632	17 sales of gasohol, as defined in the Use Tax Act, is imposed at
633	633	18 the rate of 1.25%, then the tax imposed by this Act applies to
634	634	19 100% of the proceeds of sales of gasohol made during that time.
635	635	20 With respect to majority blended ethanol fuel, as defined
636	636	21 in the Use Tax Act, the tax imposed by this Act does not apply
637	637	22 to the selling price of property transferred as an incident to
638	638	23 the sale of service on or after July 1, 2003 and on or before
639	639	24 December 31, 2023 but applies to 100% of the selling price
640	640	25 thereafter.
641	641	26 With respect to biodiesel blends, as defined in the Use
642	642
643	643
644	644
645	645
646	646
647	647	SB0271 - 17 - LRB103 25698 HLH 52047 b
648	648
649	649
650	650	SB0271- 18 -LRB103 25698 HLH 52047 b SB0271 - 18 - LRB103 25698 HLH 52047 b
651	651	SB0271 - 18 - LRB103 25698 HLH 52047 b
652	652	1 Tax Act, with no less than 1% and no more than 10% biodiesel,
653	653	2 the tax imposed by this Act applies to (i) 80% of the selling
654	654	3 price of property transferred as an incident to the sale of
655	655	4 service on or after July 1, 2003 and on or before December 31,
656	656	5 2018 and (ii) 100% of the proceeds of the selling price after
657	657	6 December 31, 2018 and before January 1, 2024. On and after
658	658	7 January 1, 2024 and on or before December 31, 2030, the
659	659	8 taxation of biodiesel, renewable diesel, and biodiesel blends
660	660	9 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
661	661	10 at any time, however, the tax under this Act on sales of
662	662	11 biodiesel blends, as defined in the Use Tax Act, with no less
663	663	12 than 1% and no more than 10% biodiesel is imposed at the rate
664	664	13 of 1.25%, then the tax imposed by this Act applies to 100% of
665	665	14 the proceeds of sales of biodiesel blends with no less than 1%
666	666	15 and no more than 10% biodiesel made during that time.
667	667	16 With respect to biodiesel, as defined in the Use Tax Act,
668	668	17 and biodiesel blends, as defined in the Use Tax Act, with more
669	669	18 than 10% but no more than 99% biodiesel material, the tax
670	670	19 imposed by this Act does not apply to the proceeds of the
671	671	20 selling price of property transferred as an incident to the
672	672	21 sale of service on or after July 1, 2003 and on or before
673	673	22 December 31, 2023. On and after January 1, 2024 and on or
674	674	23 before December 31, 2030, the taxation of biodiesel, renewable
675	675	24 diesel, and biodiesel blends shall be as provided in Section
676	676	25 3-5.1 of the Use Tax Act.
677	677	26 At the election of any registered serviceman made for each
678	678
679	679
680	680
681	681
682	682
683	683	SB0271 - 18 - LRB103 25698 HLH 52047 b
684	684
685	685
686	686	SB0271- 19 -LRB103 25698 HLH 52047 b SB0271 - 19 - LRB103 25698 HLH 52047 b
687	687	SB0271 - 19 - LRB103 25698 HLH 52047 b
688	688	1 fiscal year, sales of service in which the aggregate annual
689	689	2 cost price of tangible personal property transferred as an
690	690	3 incident to the sales of service is less than 35%, or 75% in
691	691	4 the case of servicemen transferring prescription drugs or
692	692	5 servicemen engaged in graphic arts production, of the
693	693	6 aggregate annual total gross receipts from all sales of
694	694	7 service, the tax imposed by this Act shall be based on the
695	695	8 serviceman's cost price of the tangible personal property
696	696	9 transferred incident to the sale of those services.
697	697	10 Until July 1, 2022 and beginning again on July 1, 2023, the
698	698	11 tax shall be imposed at the rate of 1% on food prepared for
699	699	12 immediate consumption and transferred incident to a sale of
700	700	13 service subject to this Act or the Service Use Tax Act by an
701	701	14 entity licensed under the Hospital Licensing Act, the Nursing
702	702	15 Home Care Act, the Assisted Living and Shared Housing Act, the
703	703	16 ID/DD Community Care Act, the MC/DD Act, the Specialized
704	704	17 Mental Health Rehabilitation Act of 2013, or the Child Care
705	705	18 Act of 1969, or an entity that holds a permit issued pursuant
706	706	19 to the Life Care Facilities Act. Until July 1, 2022 and
707	707	20 beginning again on July 1, 2023, the tax shall also be imposed
708	708	21 at the rate of 1% on food for human consumption that is to be
709	709	22 consumed off the premises where it is sold (other than
710	710	23 alcoholic beverages, food consisting of or infused with adult
711	711	24 use cannabis, soft drinks, and food that has been prepared for
712	712	25 immediate consumption and is not otherwise included in this
713	713	26 paragraph).
714	714
715	715
716	716
717	717
718	718
719	719	SB0271 - 19 - LRB103 25698 HLH 52047 b
720	720
721	721
722	722	SB0271- 20 -LRB103 25698 HLH 52047 b SB0271 - 20 - LRB103 25698 HLH 52047 b
723	723	SB0271 - 20 - LRB103 25698 HLH 52047 b
724	724	1 Beginning on July 1, 2022 and until July 1, 2023, the tax
725	725	2 shall be imposed at the rate of 0% on food prepared for
726	726	3 immediate consumption and transferred incident to a sale of
727	727	4 service subject to this Act or the Service Use Tax Act by an
728	728	5 entity licensed under the Hospital Licensing Act, the Nursing
729	729	6 Home Care Act, the Assisted Living and Shared Housing Act, the
730	730	7 ID/DD Community Care Act, the MC/DD Act, the Specialized
731	731	8 Mental Health Rehabilitation Act of 2013, or the Child Care
732	732	9 Act of 1969, or an entity that holds a permit issued pursuant
733	733	10 to the Life Care Facilities Act. Beginning July 1, 2022 and
734	734	11 until July 1, 2023, the tax shall also be imposed at the rate
735	735	12 of 0% on food for human consumption that is to be consumed off
736	736	13 the premises where it is sold (other than alcoholic beverages,
737	737	14 food consisting of or infused with adult use cannabis, soft
738	738	15 drinks, and food that has been prepared for immediate
739	739	16 consumption and is not otherwise included in this paragraph).
740	740	17 The tax shall also be imposed at the rate of 1% on
741	741	18 prescription and nonprescription medicines, drugs, medical
742	742	19 appliances, products classified as Class III medical devices
743	743	20 by the United States Food and Drug Administration that are
744	744	21 used for cancer treatment pursuant to a prescription, as well
745	745	22 as any accessories and components related to those devices,
746	746	23 modifications to a motor vehicle for the purpose of rendering
747	747	24 it usable by a person with a disability, and insulin, blood
748	748	25 sugar testing materials, syringes, and needles used by human
749	749	26 diabetics. For the purposes of this Section, until September
750	750
751	751
752	752
753	753
754	754
755	755	SB0271 - 20 - LRB103 25698 HLH 52047 b
756	756
757	757
758	758	SB0271- 21 -LRB103 25698 HLH 52047 b SB0271 - 21 - LRB103 25698 HLH 52047 b
759	759	SB0271 - 21 - LRB103 25698 HLH 52047 b
760	760	1 1, 2009: the term "soft drinks" means any complete, finished,
761	761	2 ready-to-use, non-alcoholic drink, whether carbonated or not,
762	762	3 including, but not limited to, soda water, cola, fruit juice,
763	763	4 vegetable juice, carbonated water, and all other preparations
764	764	5 commonly known as soft drinks of whatever kind or description
765	765	6 that are contained in any closed or sealed can, carton, or
766	766	7 container, regardless of size; but "soft drinks" does not
767	767	8 include coffee, tea, non-carbonated water, infant formula,
768	768	9 milk or milk products as defined in the Grade A Pasteurized
769	769	10 Milk and Milk Products Act, or drinks containing 50% or more
770	770	11 natural fruit or vegetable juice.
771	771	12 Notwithstanding any other provisions of this Act,
772	772	13 beginning September 1, 2009, "soft drinks" means non-alcoholic
773	773	14 beverages that contain natural or artificial sweeteners. "Soft
774	774	15 drinks" does do not include beverages that contain milk or
775	775	16 milk products, soy, rice or similar milk substitutes, or
776	776	17 greater than 50% of vegetable or fruit juice by volume.
777	777	18 Until August 1, 2009, and notwithstanding any other
778	778	19 provisions of this Act, "food for human consumption that is to
779	779	20 be consumed off the premises where it is sold" includes all
780	780	21 food sold through a vending machine, except soft drinks and
781	781	22 food products that are dispensed hot from a vending machine,
782	782	23 regardless of the location of the vending machine. Beginning
783	783	24 August 1, 2009, and notwithstanding any other provisions of
784	784	25 this Act, "food for human consumption that is to be consumed
785	785	26 off the premises where it is sold" includes all food sold
786	786
787	787
788	788
789	789
790	790
791	791	SB0271 - 21 - LRB103 25698 HLH 52047 b
792	792
793	793
794	794	SB0271- 22 -LRB103 25698 HLH 52047 b SB0271 - 22 - LRB103 25698 HLH 52047 b
795	795	SB0271 - 22 - LRB103 25698 HLH 52047 b
796	796	1 through a vending machine, except soft drinks, candy, and food
797	797	2 products that are dispensed hot from a vending machine,
798	798	3 regardless of the location of the vending machine.
799	799	4 Notwithstanding any other provisions of this Act,
800	800	5 beginning September 1, 2009, "food for human consumption that
801	801	6 is to be consumed off the premises where it is sold" does not
802	802	7 include candy. For purposes of this Section, "candy" means a
803	803	8 preparation of sugar, honey, or other natural or artificial
804	804	9 sweeteners in combination with chocolate, fruits, nuts or
805	805	10 other ingredients or flavorings in the form of bars, drops, or
806	806	11 pieces. "Candy" does not include any preparation that contains
807	807	12 flour or requires refrigeration.
808	808	13 Notwithstanding any other provisions of this Act,
809	809	14 beginning September 1, 2009, "nonprescription medicines and
810	810	15 drugs" does not include grooming and hygiene products. For
811	811	16 purposes of this Section, "grooming and hygiene products"
812	812	17 includes, but is not limited to, soaps and cleaning solutions,
813	813	18 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
814	814	19 lotions and screens, unless those products are available by
815	815	20 prescription only, regardless of whether the products meet the
816	816	21 definition of "over-the-counter-drugs". For the purposes of
817	817	22 this paragraph, "over-the-counter-drug" means a drug for human
818	818	23 use that contains a label that identifies the product as a drug
819	819	24 as required by 21 CFR C.F.R. 201.66. The
820	820	25 "over-the-counter-drug" label includes:
821	821	26 (A) a A "Drug Facts" panel; or
822	822
823	823
824	824
825	825
826	826
827	827	SB0271 - 22 - LRB103 25698 HLH 52047 b
828	828
829	829
830	830	SB0271- 23 -LRB103 25698 HLH 52047 b SB0271 - 23 - LRB103 25698 HLH 52047 b
831	831	SB0271 - 23 - LRB103 25698 HLH 52047 b
832	832	1 (B) a A statement of the "active ingredient(s)" with a
833	833	2 list of those ingredients contained in the compound,
834	834	3 substance or preparation.
835	835	4 Beginning on January 1, 2014 (the effective date of Public
836	836	5 Act 98-122), "prescription and nonprescription medicines and
837	837	6 drugs" includes medical cannabis purchased from a registered
838	838	7 dispensing organization under the Compassionate Use of Medical
839	839	8 Cannabis Program Act.
840	840	9 As used in this Section, "adult use cannabis" means
841	841	10 cannabis subject to tax under the Cannabis Cultivation
842	842	11 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
843	843	12 and does not include cannabis subject to tax under the
844	844	13 Compassionate Use of Medical Cannabis Program Act.
845	845	14 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
846	846	15 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
847	847	16 20, Section 20-15, eff. 4-19-22; 102-700, Article 60, Section
848	848	17 60-25, eff. 4-19-22; revised 6-1-22.)
849	849	18 Section 20. The Retailers' Occupation Tax Act is amended
850	850	19 by changing Sections 2-10 and 2d as follows:
851	851	20 (35 ILCS 120/2-10)
852	852	21 Sec. 2-10. Rate of tax. Unless otherwise provided in this
853	853	22 Section, the tax imposed by this Act is at the rate of 6.25% of
854	854	23 gross receipts from sales of tangible personal property made
855	855	24 in the course of business.
856	856
857	857
858	858
859	859
860	860
861	861	SB0271 - 23 - LRB103 25698 HLH 52047 b
862	862
863	863
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865	865	SB0271 - 24 - LRB103 25698 HLH 52047 b
866	866	1 Beginning on July 1, 2000 and through December 31, 2000,
867	867	2 with respect to motor fuel, as defined in Section 1.1 of the
868	868	3 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
869	869	4 the Use Tax Act, the tax is imposed at the rate of 1.25%.
870	870	5 Beginning 30 days after the effective date of this
871	871	6 amendatory Act of the 103rd General Assembly, the tax imposed
872	872	7 under this Act on the following items may not exceed the cents
873	873	8 per gallon rate established by the Department under subsection
874	874	9 (e) of Section 2d of this Act: motor fuel, as defined in
875	875	10 Section 1.1 of the Motor Fuel Tax Law; gasohol, as defined in
876	876	11 Section 3-40 of the Use Tax Act; majority blended ethanol
877	877	12 fuel; and biodiesel and biodiesel blends. With respect to the
878	878	13 tax imposed on biodiesel blends and gasohol, the maximum cents
879	879	14 per gallon rate shall include the reduction allowed in
880	880	15 subsection (e) of Section 2d.
881	881	16 Beginning on August 6, 2010 through August 15, 2010, and
882	882	17 beginning again on August 5, 2022 through August 14, 2022,
883	883	18 with respect to sales tax holiday items as defined in Section
884	884	19 2-8 of this Act, the tax is imposed at the rate of 1.25%.
885	885	20 Within 14 days after July 1, 2000 (the effective date of
886	886	21 Public Act 91-872) this amendatory Act of the 91st General
887	887	22 Assembly, each retailer of motor fuel and gasohol shall cause
888	888	23 the following notice to be posted in a prominently visible
889	889	24 place on each retail dispensing device that is used to
890	890	25 dispense motor fuel or gasohol in the State of Illinois: "As of
891	891	26 July 1, 2000, the State of Illinois has eliminated the State's
892	892
893	893
894	894
895	895
896	896
897	897	SB0271 - 24 - LRB103 25698 HLH 52047 b
898	898
899	899
900	900	SB0271- 25 -LRB103 25698 HLH 52047 b SB0271 - 25 - LRB103 25698 HLH 52047 b
901	901	SB0271 - 25 - LRB103 25698 HLH 52047 b
902	902	1 share of sales tax on motor fuel and gasohol through December
903	903	2 31, 2000. The price on this pump should reflect the
904	904	3 elimination of the tax." The notice shall be printed in bold
905	905	4 print on a sign that is no smaller than 4 inches by 8 inches.
906	906	5 The sign shall be clearly visible to customers. Any retailer
907	907	6 who fails to post or maintain a required sign through December
908	908	7 31, 2000 is guilty of a petty offense for which the fine shall
909	909	8 be $500 per day per each retail premises where a violation
910	910	9 occurs.
911	911	10 With respect to gasohol, as defined in the Use Tax Act, the
912	912	11 tax imposed by this Act applies to (i) 70% of the proceeds of
913	913	12 sales made on or after January 1, 1990, and before July 1,
914	914	13 2003, (ii) 80% of the proceeds of sales made on or after July
915	915	14 1, 2003 and on or before July 1, 2017, and (iii) 100% of the
916	916	15 proceeds of sales made thereafter. If, at any time, however,
917	917	16 the tax under this Act on sales of gasohol, as defined in the
918	918	17 Use Tax Act, is imposed at the rate of 1.25%, then the tax
919	919	18 imposed by this Act applies to 100% of the proceeds of sales of
920	920	19 gasohol made during that time.
921	921	20 With respect to majority blended ethanol fuel, as defined
922	922	21 in the Use Tax Act, the tax imposed by this Act does not apply
923	923	22 to the proceeds of sales made on or after July 1, 2003 and on
924	924	23 or before December 31, 2023 but applies to 100% of the proceeds
925	925	24 of sales made thereafter.
926	926	25 With respect to biodiesel blends, as defined in the Use
927	927	26 Tax Act, with no less than 1% and no more than 10% biodiesel,
928	928
929	929
930	930
931	931
932	932
933	933	SB0271 - 25 - LRB103 25698 HLH 52047 b
934	934
935	935
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937	937	SB0271 - 26 - LRB103 25698 HLH 52047 b
938	938	1 the tax imposed by this Act applies to (i) 80% of the proceeds
939	939	2 of sales made on or after July 1, 2003 and on or before
940	940	3 December 31, 2018 and (ii) 100% of the proceeds of sales made
941	941	4 after December 31, 2018 and before January 1, 2024. On and
942	942	5 after January 1, 2024 and on or before December 31, 2030, the
943	943	6 taxation of biodiesel, renewable diesel, and biodiesel blends
944	944	7 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
945	945	8 at any time, however, the tax under this Act on sales of
946	946	9 biodiesel blends, as defined in the Use Tax Act, with no less
947	947	10 than 1% and no more than 10% biodiesel is imposed at the rate
948	948	11 of 1.25%, then the tax imposed by this Act applies to 100% of
949	949	12 the proceeds of sales of biodiesel blends with no less than 1%
950	950	13 and no more than 10% biodiesel made during that time.
951	951	14 With respect to biodiesel, as defined in the Use Tax Act,
952	952	15 and biodiesel blends, as defined in the Use Tax Act, with more
953	953	16 than 10% but no more than 99% biodiesel, the tax imposed by
954	954	17 this Act does not apply to the proceeds of sales made on or
955	955	18 after July 1, 2003 and on or before December 31, 2023. On and
956	956	19 after January 1, 2024 and on or before December 31, 2030, the
957	957	20 taxation of biodiesel, renewable diesel, and biodiesel blends
958	958	21 shall be as provided in Section 3-5.1 of the Use Tax Act.
959	959	22 Until July 1, 2022 and beginning again on July 1, 2023,
960	960	23 with respect to food for human consumption that is to be
961	961	24 consumed off the premises where it is sold (other than
962	962	25 alcoholic beverages, food consisting of or infused with adult
963	963	26 use cannabis, soft drinks, and food that has been prepared for
964	964
965	965
966	966
967	967
968	968
969	969	SB0271 - 26 - LRB103 25698 HLH 52047 b
970	970
971	971
972	972	SB0271- 27 -LRB103 25698 HLH 52047 b SB0271 - 27 - LRB103 25698 HLH 52047 b
973	973	SB0271 - 27 - LRB103 25698 HLH 52047 b
974	974	1 immediate consumption), the tax is imposed at the rate of 1%.
975	975	2 Beginning July 1, 2022 and until July 1, 2023, with respect to
976	976	3 food for human consumption that is to be consumed off the
977	977	4 premises where it is sold (other than alcoholic beverages,
978	978	5 food consisting of or infused with adult use cannabis, soft
979	979	6 drinks, and food that has been prepared for immediate
980	980	7 consumption), the tax is imposed at the rate of 0%.
981	981	8 With respect to prescription and nonprescription
982	982	9 medicines, drugs, medical appliances, products classified as
983	983	10 Class III medical devices by the United States Food and Drug
984	984	11 Administration that are used for cancer treatment pursuant to
985	985	12 a prescription, as well as any accessories and components
986	986	13 related to those devices, modifications to a motor vehicle for
987	987	14 the purpose of rendering it usable by a person with a
988	988	15 disability, and insulin, blood sugar testing materials,
989	989	16 syringes, and needles used by human diabetics, the tax is
990	990	17 imposed at the rate of 1%. For the purposes of this Section,
991	991	18 until September 1, 2009: the term "soft drinks" means any
992	992	19 complete, finished, ready-to-use, non-alcoholic drink, whether
993	993	20 carbonated or not, including, but not limited to, soda water,
994	994	21 cola, fruit juice, vegetable juice, carbonated water, and all
995	995	22 other preparations commonly known as soft drinks of whatever
996	996	23 kind or description that are contained in any closed or sealed
997	997	24 bottle, can, carton, or container, regardless of size; but
998	998	25 "soft drinks" does not include coffee, tea, non-carbonated
999	999	26 water, infant formula, milk or milk products as defined in the
1000	1000
1001	1001
1002	1002
1003	1003
1004	1004
1005	1005	SB0271 - 27 - LRB103 25698 HLH 52047 b
1006	1006
1007	1007
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1009	1009	SB0271 - 28 - LRB103 25698 HLH 52047 b
1010	1010	1 Grade A Pasteurized Milk and Milk Products Act, or drinks
1011	1011	2 containing 50% or more natural fruit or vegetable juice.
1012	1012	3 Notwithstanding any other provisions of this Act,
1013	1013	4 beginning September 1, 2009, "soft drinks" means non-alcoholic
1014	1014	5 beverages that contain natural or artificial sweeteners. "Soft
1015	1015	6 drinks" does do not include beverages that contain milk or
1016	1016	7 milk products, soy, rice or similar milk substitutes, or
1017	1017	8 greater than 50% of vegetable or fruit juice by volume.
1018	1018	9 Until August 1, 2009, and notwithstanding any other
1019	1019	10 provisions of this Act, "food for human consumption that is to
1020	1020	11 be consumed off the premises where it is sold" includes all
1021	1021	12 food sold through a vending machine, except soft drinks and
1022	1022	13 food products that are dispensed hot from a vending machine,
1023	1023	14 regardless of the location of the vending machine. Beginning
1024	1024	15 August 1, 2009, and notwithstanding any other provisions of
1025	1025	16 this Act, "food for human consumption that is to be consumed
1026	1026	17 off the premises where it is sold" includes all food sold
1027	1027	18 through a vending machine, except soft drinks, candy, and food
1028	1028	19 products that are dispensed hot from a vending machine,
1029	1029	20 regardless of the location of the vending machine.
1030	1030	21 Notwithstanding any other provisions of this Act,
1031	1031	22 beginning September 1, 2009, "food for human consumption that
1032	1032	23 is to be consumed off the premises where it is sold" does not
1033	1033	24 include candy. For purposes of this Section, "candy" means a
1034	1034	25 preparation of sugar, honey, or other natural or artificial
1035	1035	26 sweeteners in combination with chocolate, fruits, nuts or
1036	1036
1037	1037
1038	1038
1039	1039
1040	1040
1041	1041	SB0271 - 28 - LRB103 25698 HLH 52047 b
1042	1042
1043	1043
1044	1044	SB0271- 29 -LRB103 25698 HLH 52047 b SB0271 - 29 - LRB103 25698 HLH 52047 b
1045	1045	SB0271 - 29 - LRB103 25698 HLH 52047 b
1046	1046	1 other ingredients or flavorings in the form of bars, drops, or
1047	1047	2 pieces. "Candy" does not include any preparation that contains
1048	1048	3 flour or requires refrigeration.
1049	1049	4 Notwithstanding any other provisions of this Act,
1050	1050	5 beginning September 1, 2009, "nonprescription medicines and
1051	1051	6 drugs" does not include grooming and hygiene products. For
1052	1052	7 purposes of this Section, "grooming and hygiene products"
1053	1053	8 includes, but is not limited to, soaps and cleaning solutions,
1054	1054	9 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
1055	1055	10 lotions and screens, unless those products are available by
1056	1056	11 prescription only, regardless of whether the products meet the
1057	1057	12 definition of "over-the-counter-drugs". For the purposes of
1058	1058	13 this paragraph, "over-the-counter-drug" means a drug for human
1059	1059	14 use that contains a label that identifies the product as a drug
1060	1060	15 as required by 21 CFR C.F.R. 201.66. The
1061	1061	16 "over-the-counter-drug" label includes:
1062	1062	17 (A) a A "Drug Facts" panel; or
1063	1063	18 (B) a A statement of the "active ingredient(s)" with a
1064	1064	19 list of those ingredients contained in the compound,
1065	1065	20 substance or preparation.
1066	1066	21 Beginning on January 1, 2014 (the effective date of Public
1067	1067	22 Act 98-122) this amendatory Act of the 98th General Assembly,
1068	1068	23 "prescription and nonprescription medicines and drugs"
1069	1069	24 includes medical cannabis purchased from a registered
1070	1070	25 dispensing organization under the Compassionate Use of Medical
1071	1071	26 Cannabis Program Act.
1072	1072
1073	1073
1074	1074
1075	1075
1076	1076
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1078	1078
1079	1079
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1081	1081	SB0271 - 30 - LRB103 25698 HLH 52047 b
1082	1082	1 As used in this Section, "adult use cannabis" means
1083	1083	2 cannabis subject to tax under the Cannabis Cultivation
1084	1084	3 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
1085	1085	4 and does not include cannabis subject to tax under the
1086	1086	5 Compassionate Use of Medical Cannabis Program Act.
1087	1087	6 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
1088	1088	7 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff.
1089	1089	8 4-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22;
1090	1090	9 102-700, Article 65, Section 65-10, eff. 4-19-22; revised
1091	1091	10 6-1-22.)
1092	1092	11 (35 ILCS 120/2d) (from Ch. 120, par. 441d)
1093	1093	12 Sec. 2d. Tax prepayment by motor fuel retailer.
1094	1094	13 (a) Any person engaged in the business of selling motor
1095	1095	14 fuel at retail, as defined in the Motor Fuel Tax Law, and who
1096	1096	15 is not a licensed distributor or supplier, as defined in the
1097	1097	16 Motor Fuel Tax Law, shall prepay to his or her distributor,
1098	1098	17 supplier, or other reseller of motor fuel a portion of the tax
1099	1099	18 imposed by this Act if the distributor, supplier, or other
1100	1100	19 reseller of motor fuel is registered under Section 2a or
1101	1101	20 Section 2c of this Act. The prepayment requirement provided
1102	1102	21 for in this Section does not apply to liquid propane gas.
1103	1103	22 (b) Beginning on July 1, 2000 and through December 31,
1104	1104	23 2000, the Retailers' Occupation Tax paid to the distributor,
1105	1105	24 supplier, or other reseller shall be an amount equal to $0.01
1106	1106	25 per gallon of the motor fuel, except gasohol as defined in
1107	1107
1108	1108
1109	1109
1110	1110
1111	1111
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1113	1113
1114	1114
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1116	1116	SB0271 - 31 - LRB103 25698 HLH 52047 b
1117	1117	1 Section 2-10 of this Act which shall be an amount equal to
1118	1118	2 $0.01 per gallon, purchased from the distributor, supplier, or
1119	1119	3 other reseller.
1120	1120	4 (c) Before July 1, 2000 and then beginning on January 1,
1121	1121	5 2001 and through June 30, 2003, the Retailers' Occupation Tax
1122	1122	6 paid to the distributor, supplier, or other reseller shall be
1123	1123	7 an amount equal to $0.04 per gallon of the motor fuel, except
1124	1124	8 gasohol as defined in Section 2-10 of this Act which shall be
1125	1125	9 an amount equal to $0.03 per gallon, purchased from the
1126	1126	10 distributor, supplier, or other reseller.
1127	1127	11 (d) Beginning July 1, 2003 and through December 31, 2010,
1128	1128	12 the Retailers' Occupation Tax paid to the distributor,
1129	1129	13 supplier, or other reseller shall be an amount equal to $0.06
1130	1130	14 per gallon of the motor fuel, except gasohol as defined in
1131	1131	15 Section 2-10 of this Act which shall be an amount equal to
1132	1132	16 $0.05 per gallon, purchased from the distributor, supplier, or
1133	1133	17 other reseller.
1134	1134	18 (e) Beginning on January 1, 2011 and thereafter, the
1135	1135	19 Retailers' Occupation Tax paid to the distributor, supplier,
1136	1136	20 or other reseller shall be at the rate established by the
1137	1137	21 Department under this subsection. The rate shall be
1138	1138	22 established by the Department on January 1 and July 1 of each
1139	1139	23 year using the average selling price, as defined in Section 1
1140	1140	24 of this Act, per gallon of motor fuel sold in the State during
1141	1141	25 the previous 6 months and multiplying that amount by 6.25% to
1142	1142	26 determine the cents per gallon rate. Beginning 30 days after
1143	1143
1144	1144
1145	1145
1146	1146
1147	1147
1148	1148	SB0271 - 31 - LRB103 25698 HLH 52047 b
1149	1149
1150	1150
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1153	1153	1 the effective date of this amendatory Act of the 103rd General
1154	1154	2 Assembly, the cents per gallon rate established by the
1155	1155	3 Department for motor fuel under this subsection may not exceed
1156	1156	4 $0.18 per gallon. In the case of biodiesel blends, as defined
1157	1157	5 in Section 3-42 of the Use Tax Act, with no less than 1% and no
1158	1158	6 more than 10% biodiesel, and in the case of gasohol, as defined
1159	1159	7 in Section 3-40 of the Use Tax Act, the rate shall be 80% of
1160	1160	8 the rate established by the Department under this subsection
1161	1161	9 for motor fuel. The Department shall provide persons subject
1162	1162	10 to this Section notice of the rate established under this
1163	1163	11 subsection at least 20 days prior to each January 1 and July 1.
1164	1164	12 The Department shall provide persons subject to this Section
1165	1165	13 notice of the rate change required by this amendatory Act of
1166	1166	14 the 103rd General Assembly at least 20 days prior to the date
1167	1167	15 on which that change takes effect. Publication of the
1168	1168	16 established rate on the Department's internet website shall
1169	1169	17 constitute sufficient notice under this Section. The
1170	1170	18 Department may use data derived from independent surveys
1171	1171	19 conducted or accumulated by third parties to determine the
1172	1172	20 average selling price per gallon of motor fuel sold in the
1173	1173	21 State.
1174	1174	22 (f) Any person engaged in the business of selling motor
1175	1175	23 fuel at retail shall be entitled to a credit against tax due
1176	1176	24 under this Act in an amount equal to the tax paid to the
1177	1177	25 distributor, supplier, or other reseller.
1178	1178	26 (g) Every distributor, supplier, or other reseller
1179	1179
1180	1180
1181	1181
1182	1182
1183	1183
1184	1184	SB0271 - 32 - LRB103 25698 HLH 52047 b
1185	1185
1186	1186
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1188	1188	SB0271 - 33 - LRB103 25698 HLH 52047 b
1189	1189	1 registered as provided in Section 2a or Section 2c of this Act
1190	1190	2 shall remit the prepaid tax on all motor fuel that is due from
1191	1191	3 any person engaged in the business of selling at retail motor
1192	1192	4 fuel with the returns filed under Section 2f or Section 3 of
1193	1193	5 this Act, but the vendors discount provided in Section 3 shall
1194	1194	6 not apply to the amount of prepaid tax that is remitted. Any
1195	1195	7 distributor or supplier who fails to properly collect and
1196	1196	8 remit the tax shall be liable for the tax. For purposes of this
1197	1197	9 Section, the prepaid tax is due on invoiced gallons sold
1198	1198	10 during a month by the 20th day of the following month.
1199	1199	11 (Source: P.A. 96-1384, eff. 7-29-10.)
1200	1200	12 Section 99. Effective date. This Act takes effect upon
1201	1201	13 becoming law.
1202	1202
1203	1203
1204	1204
1205	1205
1206	1206
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