Illinois 2023-2024 Regular Session

Illinois Senate Bill SB1869 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 SB1869 Introduced 2/9/2023, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-10 35 ILCS 105/3-40 from Ch. 120, par. 439.3-40 35 ILCS 105/3-44 35 ILCS 105/3-44.3 new35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-10 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the tax imposed on mid-range ethanol blends applies to (i) 80% of the proceeds of sales made on or after July 1, 2023 and on or before December 31, 2030 and (ii) 100% of the proceeds of sales made thereafter. Provides that the term "mid-range ethanol blend" means a blend of gasoline and denatured ethanol that contains at least 20% but less than 51% denatured ethanol. Makes changes to the definitions of "gasohol" and "majority blended ethanol fuel" to adjusts the percentages of ethanol that must be included in those motor fuels. Provides that, on and after July 1, 2023 and prior to December 31, 2030, the tax shall be imposed on 90% of the proceeds of sales of gasohol. Effective immediately. LRB103 27518 HLH 53893 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1869 Introduced 2/9/2023, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-10 35 ILCS 105/3-40 from Ch. 120, par. 439.3-40 35 ILCS 105/3-44 35 ILCS 105/3-44.3 new35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-10 35 ILCS 105/3-10 35 ILCS 105/3-40 from Ch. 120, par. 439.3-40 35 ILCS 105/3-44 35 ILCS 105/3-44.3 new 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-10 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the tax imposed on mid-range ethanol blends applies to (i) 80% of the proceeds of sales made on or after July 1, 2023 and on or before December 31, 2030 and (ii) 100% of the proceeds of sales made thereafter. Provides that the term "mid-range ethanol blend" means a blend of gasoline and denatured ethanol that contains at least 20% but less than 51% denatured ethanol. Makes changes to the definitions of "gasohol" and "majority blended ethanol fuel" to adjusts the percentages of ethanol that must be included in those motor fuels. Provides that, on and after July 1, 2023 and prior to December 31, 2030, the tax shall be imposed on 90% of the proceeds of sales of gasohol. Effective immediately. LRB103 27518 HLH 53893 b LRB103 27518 HLH 53893 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1869 Introduced 2/9/2023, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 105/3-10 35 ILCS 105/3-40 from Ch. 120, par. 439.3-40 35 ILCS 105/3-44 35 ILCS 105/3-44.3 new35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-10 35 ILCS 105/3-10 35 ILCS 105/3-40 from Ch. 120, par. 439.3-40 35 ILCS 105/3-44 35 ILCS 105/3-44.3 new 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 105/3-40 from Ch. 120, par. 439.3-40
6	6	35 ILCS 105/3-44
7	7	35 ILCS 105/3-44.3 new
8	8	35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
9	9	35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
10	10	35 ILCS 120/2-10
11	11	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the tax imposed on mid-range ethanol blends applies to (i) 80% of the proceeds of sales made on or after July 1, 2023 and on or before December 31, 2030 and (ii) 100% of the proceeds of sales made thereafter. Provides that the term "mid-range ethanol blend" means a blend of gasoline and denatured ethanol that contains at least 20% but less than 51% denatured ethanol. Makes changes to the definitions of "gasohol" and "majority blended ethanol fuel" to adjusts the percentages of ethanol that must be included in those motor fuels. Provides that, on and after July 1, 2023 and prior to December 31, 2030, the tax shall be imposed on 90% of the proceeds of sales of gasohol. Effective immediately.
12	12	LRB103 27518 HLH 53893 b LRB103 27518 HLH 53893 b
13	13	LRB103 27518 HLH 53893 b
14	14	A BILL FOR
15	15	SB1869LRB103 27518 HLH 53893 b SB1869 LRB103 27518 HLH 53893 b
16	16	SB1869 LRB103 27518 HLH 53893 b
17	17	1 AN ACT concerning revenue.
18	18	2 Be it enacted by the People of the State of Illinois,
19	19	3 represented in the General Assembly:
20	20	4 Section 5. The Use Tax Act is amended by changing Sections
21	21	5 3-10, 3-40, and 3-44 and by adding Section 3-44.3 as follows:
22	22	6 (35 ILCS 105/3-10)
23	23	7 Sec. 3-10. Rate of tax. Unless otherwise provided in this
24	24	8 Section, the tax imposed by this Act is at the rate of 6.25% of
25	25	9 either the selling price or the fair market value, if any, of
26	26	10 the tangible personal property. In all cases where property
27	27	11 functionally used or consumed is the same as the property that
28	28	12 was purchased at retail, then the tax is imposed on the selling
29	29	13 price of the property. In all cases where property
30	30	14 functionally used or consumed is a by-product or waste product
31	31	15 that has been refined, manufactured, or produced from property
32	32	16 purchased at retail, then the tax is imposed on the lower of
33	33	17 the fair market value, if any, of the specific property so used
34	34	18 in this State or on the selling price of the property purchased
35	35	19 at retail. For purposes of this Section "fair market value"
36	36	20 means the price at which property would change hands between a
37	37	21 willing buyer and a willing seller, neither being under any
38	38	22 compulsion to buy or sell and both having reasonable knowledge
39	39	23 of the relevant facts. The fair market value shall be
40	40
41	41
42	42
43	43	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1869 Introduced 2/9/2023, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED:
44	44	35 ILCS 105/3-10 35 ILCS 105/3-40 from Ch. 120, par. 439.3-40 35 ILCS 105/3-44 35 ILCS 105/3-44.3 new35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-10 35 ILCS 105/3-10 35 ILCS 105/3-40 from Ch. 120, par. 439.3-40 35 ILCS 105/3-44 35 ILCS 105/3-44.3 new 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
45	45	35 ILCS 105/3-10
46	46	35 ILCS 105/3-40 from Ch. 120, par. 439.3-40
47	47	35 ILCS 105/3-44
48	48	35 ILCS 105/3-44.3 new
49	49	35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
50	50	35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
51	51	35 ILCS 120/2-10
52	52	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the tax imposed on mid-range ethanol blends applies to (i) 80% of the proceeds of sales made on or after July 1, 2023 and on or before December 31, 2030 and (ii) 100% of the proceeds of sales made thereafter. Provides that the term "mid-range ethanol blend" means a blend of gasoline and denatured ethanol that contains at least 20% but less than 51% denatured ethanol. Makes changes to the definitions of "gasohol" and "majority blended ethanol fuel" to adjusts the percentages of ethanol that must be included in those motor fuels. Provides that, on and after July 1, 2023 and prior to December 31, 2030, the tax shall be imposed on 90% of the proceeds of sales of gasohol. Effective immediately.
53	53	LRB103 27518 HLH 53893 b LRB103 27518 HLH 53893 b
54	54	LRB103 27518 HLH 53893 b
55	55	A BILL FOR
56	56
57	57
58	58
59	59
60	60
61	61	35 ILCS 105/3-10
62	62	35 ILCS 105/3-40 from Ch. 120, par. 439.3-40
63	63	35 ILCS 105/3-44
64	64	35 ILCS 105/3-44.3 new
65	65	35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
66	66	35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
67	67	35 ILCS 120/2-10
68	68
69	69
70	70
71	71	LRB103 27518 HLH 53893 b
72	72
73	73
74	74
75	75
76	76
77	77
78	78
79	79
80	80
81	81	SB1869 LRB103 27518 HLH 53893 b
82	82
83	83
84	84	SB1869- 2 -LRB103 27518 HLH 53893 b SB1869 - 2 - LRB103 27518 HLH 53893 b
85	85	SB1869 - 2 - LRB103 27518 HLH 53893 b
86	86	1 established by Illinois sales by the taxpayer of the same
87	87	2 property as that functionally used or consumed, or if there
88	88	3 are no such sales by the taxpayer, then comparable sales or
89	89	4 purchases of property of like kind and character in Illinois.
90	90	5 Beginning on July 1, 2000 and through December 31, 2000,
91	91	6 with respect to motor fuel, as defined in Section 1.1 of the
92	92	7 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
93	93	8 the Use Tax Act, the tax is imposed at the rate of 1.25%.
94	94	9 Beginning on August 6, 2010 through August 15, 2010, and
95	95	10 beginning again on August 5, 2022 through August 14, 2022,
96	96	11 with respect to sales tax holiday items as defined in Section
97	97	12 3-6 of this Act, the tax is imposed at the rate of 1.25%.
98	98	13 With respect to gasohol, the tax imposed by this Act
99	99	14 applies to (i) 70% of the proceeds of sales made on or after
100	100	15 January 1, 1990, and before July 1, 2003, (ii) 80% of the
101	101	16 proceeds of sales made on or after July 1, 2003 and on or
102	102	17 before July 1, 2017, and (iii) 100% of the proceeds of sales
103	103	18 made after July 1, 2017 and prior to July 1, 2023, (iv) 90% of
104	104	19 the proceeds of sales made on or after July 1, 2023 and on or
105	105	20 before December 31, 2030, and (v) 100% of the proceeds of sales
106	106	21 made after December 31, 2030 thereafter. If, at any time,
107	107	22 however, the tax under this Act on sales of gasohol is imposed
108	108	23 at the rate of 1.25%, then the tax imposed by this Act applies
109	109	24 to 100% of the proceeds of sales of gasohol made during that
110	110	25 time.
111	111	26 With respect to mid-range ethanol blends, the tax imposed
112	112
113	113
114	114
115	115
116	116
117	117	SB1869 - 2 - LRB103 27518 HLH 53893 b
118	118
119	119
120	120	SB1869- 3 -LRB103 27518 HLH 53893 b SB1869 - 3 - LRB103 27518 HLH 53893 b
121	121	SB1869 - 3 - LRB103 27518 HLH 53893 b
122	122	1 by this Act applies to (i) 80% of the proceeds of sales made on
123	123	2 or after July 1, 2023 and on or before December 31, 2030 and
124	124	3 (ii) 100% of the proceeds of sales made thereafter. If, at any
125	125	4 time, however, the tax under this Act on sales of mid-range
126	126	5 ethanol blends is imposed at the rate of 1.25%, then the tax
127	127	6 imposed by this Act applies to 100% of the proceeds of sales of
128	128	7 mid-range ethanol blends made during that time.
129	129	8 With respect to majority blended ethanol fuel, the tax
130	130	9 imposed by this Act does not apply to the proceeds of sales
131	131	10 made on or after July 1, 2003 and on or before December 31,
132	132	11 2030 December 31, 2023 but applies to 100% of the proceeds of
133	133	12 sales made thereafter.
134	134	13 With respect to biodiesel blends with no less than 1% and
135	135	14 no more than 10% biodiesel, the tax imposed by this Act applies
136	136	15 to (i) 80% of the proceeds of sales made on or after July 1,
137	137	16 2003 and on or before December 31, 2018 and (ii) 100% of the
138	138	17 proceeds of sales made after December 31, 2018 and before
139	139	18 January 1, 2024. On and after January 1, 2024 and on or before
140	140	19 December 31, 2030, the taxation of biodiesel, renewable
141	141	20 diesel, and biodiesel blends shall be as provided in Section
142	142	21 3-5.1. If, at any time, however, the tax under this Act on
143	143	22 sales of biodiesel blends with no less than 1% and no more than
144	144	23 10% biodiesel is imposed at the rate of 1.25%, then the tax
145	145	24 imposed by this Act applies to 100% of the proceeds of sales of
146	146	25 biodiesel blends with no less than 1% and no more than 10%
147	147	26 biodiesel made during that time.
148	148
149	149
150	150
151	151
152	152
153	153	SB1869 - 3 - LRB103 27518 HLH 53893 b
154	154
155	155
156	156	SB1869- 4 -LRB103 27518 HLH 53893 b SB1869 - 4 - LRB103 27518 HLH 53893 b
157	157	SB1869 - 4 - LRB103 27518 HLH 53893 b
158	158	1 With respect to biodiesel and biodiesel blends with more
159	159	2 than 10% but no more than 99% biodiesel, the tax imposed by
160	160	3 this Act does not apply to the proceeds of sales made on or
161	161	4 after July 1, 2003 and on or before December 31, 2023. On and
162	162	5 after January 1, 2024 and on or before December 31, 2030, the
163	163	6 taxation of biodiesel, renewable diesel, and biodiesel blends
164	164	7 shall be as provided in Section 3-5.1.
165	165	8 Until July 1, 2022 and beginning again on July 1, 2023,
166	166	9 with respect to food for human consumption that is to be
167	167	10 consumed off the premises where it is sold (other than
168	168	11 alcoholic beverages, food consisting of or infused with adult
169	169	12 use cannabis, soft drinks, and food that has been prepared for
170	170	13 immediate consumption), the tax is imposed at the rate of 1%.
171	171	14 Beginning on July 1, 2022 and until July 1, 2023, with respect
172	172	15 to food for human consumption that is to be consumed off the
173	173	16 premises where it is sold (other than alcoholic beverages,
174	174	17 food consisting of or infused with adult use cannabis, soft
175	175	18 drinks, and food that has been prepared for immediate
176	176	19 consumption), the tax is imposed at the rate of 0%.
177	177	20 With respect to prescription and nonprescription
178	178	21 medicines, drugs, medical appliances, products classified as
179	179	22 Class III medical devices by the United States Food and Drug
180	180	23 Administration that are used for cancer treatment pursuant to
181	181	24 a prescription, as well as any accessories and components
182	182	25 related to those devices, modifications to a motor vehicle for
183	183	26 the purpose of rendering it usable by a person with a
184	184
185	185
186	186
187	187
188	188
189	189	SB1869 - 4 - LRB103 27518 HLH 53893 b
190	190
191	191
192	192	SB1869- 5 -LRB103 27518 HLH 53893 b SB1869 - 5 - LRB103 27518 HLH 53893 b
193	193	SB1869 - 5 - LRB103 27518 HLH 53893 b
194	194	1 disability, and insulin, blood sugar testing materials,
195	195	2 syringes, and needles used by human diabetics, the tax is
196	196	3 imposed at the rate of 1%. For the purposes of this Section,
197	197	4 until September 1, 2009: the term "soft drinks" means any
198	198	5 complete, finished, ready-to-use, non-alcoholic drink, whether
199	199	6 carbonated or not, including, but not limited to, soda water,
200	200	7 cola, fruit juice, vegetable juice, carbonated water, and all
201	201	8 other preparations commonly known as soft drinks of whatever
202	202	9 kind or description that are contained in any closed or sealed
203	203	10 bottle, can, carton, or container, regardless of size; but
204	204	11 "soft drinks" does not include coffee, tea, non-carbonated
205	205	12 water, infant formula, milk or milk products as defined in the
206	206	13 Grade A Pasteurized Milk and Milk Products Act, or drinks
207	207	14 containing 50% or more natural fruit or vegetable juice.
208	208	15 Notwithstanding any other provisions of this Act,
209	209	16 beginning September 1, 2009, "soft drinks" means non-alcoholic
210	210	17 beverages that contain natural or artificial sweeteners. "Soft
211	211	18 drinks" does do not include beverages that contain milk or
212	212	19 milk products, soy, rice or similar milk substitutes, or
213	213	20 greater than 50% of vegetable or fruit juice by volume.
214	214	21 Until August 1, 2009, and notwithstanding any other
215	215	22 provisions of this Act, "food for human consumption that is to
216	216	23 be consumed off the premises where it is sold" includes all
217	217	24 food sold through a vending machine, except soft drinks and
218	218	25 food products that are dispensed hot from a vending machine,
219	219	26 regardless of the location of the vending machine. Beginning
220	220
221	221
222	222
223	223
224	224
225	225	SB1869 - 5 - LRB103 27518 HLH 53893 b
226	226
227	227
228	228	SB1869- 6 -LRB103 27518 HLH 53893 b SB1869 - 6 - LRB103 27518 HLH 53893 b
229	229	SB1869 - 6 - LRB103 27518 HLH 53893 b
230	230	1 August 1, 2009, and notwithstanding any other provisions of
231	231	2 this Act, "food for human consumption that is to be consumed
232	232	3 off the premises where it is sold" includes all food sold
233	233	4 through a vending machine, except soft drinks, candy, and food
234	234	5 products that are dispensed hot from a vending machine,
235	235	6 regardless of the location of the vending machine.
236	236	7 Notwithstanding any other provisions of this Act,
237	237	8 beginning September 1, 2009, "food for human consumption that
238	238	9 is to be consumed off the premises where it is sold" does not
239	239	10 include candy. For purposes of this Section, "candy" means a
240	240	11 preparation of sugar, honey, or other natural or artificial
241	241	12 sweeteners in combination with chocolate, fruits, nuts or
242	242	13 other ingredients or flavorings in the form of bars, drops, or
243	243	14 pieces. "Candy" does not include any preparation that contains
244	244	15 flour or requires refrigeration.
245	245	16 Notwithstanding any other provisions of this Act,
246	246	17 beginning September 1, 2009, "nonprescription medicines and
247	247	18 drugs" does not include grooming and hygiene products. For
248	248	19 purposes of this Section, "grooming and hygiene products"
249	249	20 includes, but is not limited to, soaps and cleaning solutions,
250	250	21 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
251	251	22 lotions and screens, unless those products are available by
252	252	23 prescription only, regardless of whether the products meet the
253	253	24 definition of "over-the-counter-drugs". For the purposes of
254	254	25 this paragraph, "over-the-counter-drug" means a drug for human
255	255	26 use that contains a label that identifies the product as a drug
256	256
257	257
258	258
259	259
260	260
261	261	SB1869 - 6 - LRB103 27518 HLH 53893 b
262	262
263	263
264	264	SB1869- 7 -LRB103 27518 HLH 53893 b SB1869 - 7 - LRB103 27518 HLH 53893 b
265	265	SB1869 - 7 - LRB103 27518 HLH 53893 b
266	266	1 as required by 21 CFR C.F.R. 201.66. The
267	267	2 "over-the-counter-drug" label includes:
268	268	3 (A) a A "Drug Facts" panel; or
269	269	4 (B) a A statement of the "active ingredient(s)" with a
270	270	5 list of those ingredients contained in the compound,
271	271	6 substance or preparation.
272	272	7 Beginning on January 1, 2014 (the effective date of Public
273	273	8 Act 98-122) this amendatory Act of the 98th General Assembly,
274	274	9 "prescription and nonprescription medicines and drugs"
275	275	10 includes medical cannabis purchased from a registered
276	276	11 dispensing organization under the Compassionate Use of Medical
277	277	12 Cannabis Program Act.
278	278	13 As used in this Section, "adult use cannabis" means
279	279	14 cannabis subject to tax under the Cannabis Cultivation
280	280	15 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
281	281	16 and does not include cannabis subject to tax under the
282	282	17 Compassionate Use of Medical Cannabis Program Act.
283	283	18 If the property that is purchased at retail from a
284	284	19 retailer is acquired outside Illinois and used outside
285	285	20 Illinois before being brought to Illinois for use here and is
286	286	21 taxable under this Act, the "selling price" on which the tax is
287	287	22 computed shall be reduced by an amount that represents a
288	288	23 reasonable allowance for depreciation for the period of prior
289	289	24 out-of-state use.
290	290	25 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
291	291	26 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.
292	292
293	293
294	294
295	295
296	296
297	297	SB1869 - 7 - LRB103 27518 HLH 53893 b
298	298
299	299
300	300	SB1869- 8 -LRB103 27518 HLH 53893 b SB1869 - 8 - LRB103 27518 HLH 53893 b
301	301	SB1869 - 8 - LRB103 27518 HLH 53893 b
302	302	1 4-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;
303	303	2 102-700, Article 65, Section 65-5, eff. 4-19-22; revised
304	304	3 5-27-22.)
305	305	4 (35 ILCS 105/3-40) (from Ch. 120, par. 439.3-40)
306	306	5 Sec. 3-40. Gasohol. As used in this Act, "gasohol" means
307	307	6 motor fuel that is a blend of denatured ethanol and gasoline
308	308	7 that contains (i) no more than 1.25% water by weight and (ii)
309	309	8 the maximum proportion of ethanol authorized by the United
310	310	9 States Environmental Protection Agency under Section 211 of
311	311	10 the Clean Air Act. The blend must contain 90% gasoline and 10%
312	312	11 denatured ethanol. A maximum of one percent error factor in
313	313	12 the amount of denatured ethanol used in the blend is allowable
314	314	13 to compensate for blending equipment variations. Any person
315	315	14 who knowingly sells or represents as gasohol any fuel that
316	316	15 does not qualify as gasohol under this Act is guilty of a
317	317	16 business offense and shall be fined not more than $100 for each
318	318	17 day that the sale or representation takes place after
319	319	18 notification from the Department of Agriculture that the fuel
320	320	19 in question does not qualify as gasohol.
321	321	20 (Source: P.A. 93-724, eff. 7-13-04.)
322	322	21 (35 ILCS 105/3-44)
323	323	22 Sec. 3-44. Majority blended ethanol fuel. "Majority
324	324	23 blended ethanol fuel" means motor fuel that contains at least
325	325	24 51% and not more than 83% ethanol, by volume, as specified in
326	326
327	327
328	328
329	329
330	330
331	331	SB1869 - 8 - LRB103 27518 HLH 53893 b
332	332
333	333
334	334	SB1869- 9 -LRB103 27518 HLH 53893 b SB1869 - 9 - LRB103 27518 HLH 53893 b
335	335	SB1869 - 9 - LRB103 27518 HLH 53893 b
336	336	1 ASTM Standard DS798-11, and that is capable of being used in
337	337	2 the operation of flexible fuel vehicles not less than 70% and
338	338	3 no more than 90% denatured ethanol and no less than 10% and no
339	339	4 more than 30% gasoline.
340	340	5 (Source: P.A. 93-17, eff. 6-11-03.)
341	341	6 (35 ILCS 105/3-44.3 new)
342	342	7 Sec. 3-44.3. Mid-range ethanol blend. "Mid-range ethanol
343	343	8 blend" means a blend of gasoline and denatured ethanol that
344	344	9 contains at least 20% but less than 51% denatured ethanol.
345	345	10 Section 10. The Service Use Tax Act is amended by changing
346	346	11 Section 3-10 as follows:
347	347	12 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
348	348	13 Sec. 3-10. Rate of tax. Unless otherwise provided in this
349	349	14 Section, the tax imposed by this Act is at the rate of 6.25% of
350	350	15 the selling price of tangible personal property transferred as
351	351	16 an incident to the sale of service, but, for the purpose of
352	352	17 computing this tax, in no event shall the selling price be less
353	353	18 than the cost price of the property to the serviceman.
354	354	19 Beginning on July 1, 2000 and through December 31, 2000,
355	355	20 with respect to motor fuel, as defined in Section 1.1 of the
356	356	21 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
357	357	22 the Use Tax Act, the tax is imposed at the rate of 1.25%.
358	358	23 With respect to gasohol, as defined in the Use Tax Act, the
359	359
360	360
361	361
362	362
363	363
364	364	SB1869 - 9 - LRB103 27518 HLH 53893 b
365	365
366	366
367	367	SB1869- 10 -LRB103 27518 HLH 53893 b SB1869 - 10 - LRB103 27518 HLH 53893 b
368	368	SB1869 - 10 - LRB103 27518 HLH 53893 b
369	369	1 tax imposed by this Act applies to (i) 70% of the selling price
370	370	2 of property transferred as an incident to the sale of service
371	371	3 on or after January 1, 1990, and before July 1, 2003, (ii) 80%
372	372	4 of the selling price of property transferred as an incident to
373	373	5 the sale of service on or after July 1, 2003 and on or before
374	374	6 July 1, 2017, and (iii) 100% of the selling price of property
375	375	7 transferred as an incident to the sale of service after July 1,
376	376	8 2017 and before July 1, 2023, (iv) 90% of the selling price of
377	377	9 property transferred as an incident to the sale of service on
378	378	10 or after July 1, 2023 and on or before December 31, 2030, and
379	379	11 (v) 100% of the selling price of property transferred as an
380	380	12 incident to the sale of service after December 31, 2030
381	381	13 thereafter. If, at any time, however, the tax under this Act on
382	382	14 sales of gasohol, as defined in the Use Tax Act, is imposed at
383	383	15 the rate of 1.25%, then the tax imposed by this Act applies to
384	384	16 100% of the proceeds of sales of gasohol made during that time.
385	385	17 With respect to mid-range ethanol blends, as defined in
386	386	18 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
387	387	19 applies to (i) 80% of the proceeds of sales made on or after
388	388	20 July 1, 2023 and on or before December 31, 2030 and (ii) 100%
389	389	21 of the proceeds of sales made after December 31, 2030. If, at
390	390	22 any time, however, the tax under this Act on sales of mid-range
391	391	23 ethanol blends is imposed at the rate of 1.25%, then the tax
392	392	24 imposed by this Act applies to 100% of the proceeds of sales of
393	393	25 mid-range ethanol blends made during that time.
394	394	26 With respect to majority blended ethanol fuel, as defined
395	395
396	396
397	397
398	398
399	399
400	400	SB1869 - 10 - LRB103 27518 HLH 53893 b
401	401
402	402
403	403	SB1869- 11 -LRB103 27518 HLH 53893 b SB1869 - 11 - LRB103 27518 HLH 53893 b
404	404	SB1869 - 11 - LRB103 27518 HLH 53893 b
405	405	1 in the Use Tax Act, the tax imposed by this Act does not apply
406	406	2 to the selling price of property transferred as an incident to
407	407	3 the sale of service on or after July 1, 2003 and on or before
408	408	4 December 31, 2030 December 31, 2023 but applies to 100% of the
409	409	5 selling price thereafter.
410	410	6 With respect to biodiesel blends, as defined in the Use
411	411	7 Tax Act, with no less than 1% and no more than 10% biodiesel,
412	412	8 the tax imposed by this Act applies to (i) 80% of the selling
413	413	9 price of property transferred as an incident to the sale of
414	414	10 service on or after July 1, 2003 and on or before December 31,
415	415	11 2018 and (ii) 100% of the proceeds of the selling price after
416	416	12 December 31, 2018 and before January 1, 2024. On and after
417	417	13 January 1, 2024 and on or before December 31, 2030, the
418	418	14 taxation of biodiesel, renewable diesel, and biodiesel blends
419	419	15 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
420	420	16 at any time, however, the tax under this Act on sales of
421	421	17 biodiesel blends, as defined in the Use Tax Act, with no less
422	422	18 than 1% and no more than 10% biodiesel is imposed at the rate
423	423	19 of 1.25%, then the tax imposed by this Act applies to 100% of
424	424	20 the proceeds of sales of biodiesel blends with no less than 1%
425	425	21 and no more than 10% biodiesel made during that time.
426	426	22 With respect to biodiesel, as defined in the Use Tax Act,
427	427	23 and biodiesel blends, as defined in the Use Tax Act, with more
428	428	24 than 10% but no more than 99% biodiesel, the tax imposed by
429	429	25 this Act does not apply to the proceeds of the selling price of
430	430	26 property transferred as an incident to the sale of service on
431	431
432	432
433	433
434	434
435	435
436	436	SB1869 - 11 - LRB103 27518 HLH 53893 b
437	437
438	438
439	439	SB1869- 12 -LRB103 27518 HLH 53893 b SB1869 - 12 - LRB103 27518 HLH 53893 b
440	440	SB1869 - 12 - LRB103 27518 HLH 53893 b
441	441	1 or after July 1, 2003 and on or before December 31, 2023. On
442	442	2 and after January 1, 2024 and on or before December 31, 2030,
443	443	3 the taxation of biodiesel, renewable diesel, and biodiesel
444	444	4 blends shall be as provided in Section 3-5.1 of the Use Tax
445	445	5 Act.
446	446	6 At the election of any registered serviceman made for each
447	447	7 fiscal year, sales of service in which the aggregate annual
448	448	8 cost price of tangible personal property transferred as an
449	449	9 incident to the sales of service is less than 35%, or 75% in
450	450	10 the case of servicemen transferring prescription drugs or
451	451	11 servicemen engaged in graphic arts production, of the
452	452	12 aggregate annual total gross receipts from all sales of
453	453	13 service, the tax imposed by this Act shall be based on the
454	454	14 serviceman's cost price of the tangible personal property
455	455	15 transferred as an incident to the sale of those services.
456	456	16 Until July 1, 2022 and beginning again on July 1, 2023, the
457	457	17 tax shall be imposed at the rate of 1% on food prepared for
458	458	18 immediate consumption and transferred incident to a sale of
459	459	19 service subject to this Act or the Service Occupation Tax Act
460	460	20 by an entity licensed under the Hospital Licensing Act, the
461	461	21 Nursing Home Care Act, the Assisted Living and Shared Housing
462	462	22 Act, the ID/DD Community Care Act, the MC/DD Act, the
463	463	23 Specialized Mental Health Rehabilitation Act of 2013, or the
464	464	24 Child Care Act of 1969, or an entity that holds a permit issued
465	465	25 pursuant to the Life Care Facilities Act. Until July 1, 2022
466	466	26 and beginning again on July 1, 2023, the tax shall also be
467	467
468	468
469	469
470	470
471	471
472	472	SB1869 - 12 - LRB103 27518 HLH 53893 b
473	473
474	474
475	475	SB1869- 13 -LRB103 27518 HLH 53893 b SB1869 - 13 - LRB103 27518 HLH 53893 b
476	476	SB1869 - 13 - LRB103 27518 HLH 53893 b
477	477	1 imposed at the rate of 1% on food for human consumption that is
478	478	2 to be consumed off the premises where it is sold (other than
479	479	3 alcoholic beverages, food consisting of or infused with adult
480	480	4 use cannabis, soft drinks, and food that has been prepared for
481	481	5 immediate consumption and is not otherwise included in this
482	482	6 paragraph).
483	483	7 Beginning on July 1, 2022 and until July 1, 2023, the tax
484	484	8 shall be imposed at the rate of 0% on food prepared for
485	485	9 immediate consumption and transferred incident to a sale of
486	486	10 service subject to this Act or the Service Occupation Tax Act
487	487	11 by an entity licensed under the Hospital Licensing Act, the
488	488	12 Nursing Home Care Act, the Assisted Living and Shared Housing
489	489	13 Act, the ID/DD Community Care Act, the MC/DD Act, the
490	490	14 Specialized Mental Health Rehabilitation Act of 2013, or the
491	491	15 Child Care Act of 1969, or an entity that holds a permit issued
492	492	16 pursuant to the Life Care Facilities Act. Beginning on July 1,
493	493	17 2022 and until July 1, 2023, the tax shall also be imposed at
494	494	18 the rate of 0% on food for human consumption that is to be
495	495	19 consumed off the premises where it is sold (other than
496	496	20 alcoholic beverages, food consisting of or infused with adult
497	497	21 use cannabis, soft drinks, and food that has been prepared for
498	498	22 immediate consumption and is not otherwise included in this
499	499	23 paragraph).
500	500	24 The tax shall also be imposed at the rate of 1% on
501	501	25 prescription and nonprescription medicines, drugs, medical
502	502	26 appliances, products classified as Class III medical devices
503	503
504	504
505	505
506	506
507	507
508	508	SB1869 - 13 - LRB103 27518 HLH 53893 b
509	509
510	510
511	511	SB1869- 14 -LRB103 27518 HLH 53893 b SB1869 - 14 - LRB103 27518 HLH 53893 b
512	512	SB1869 - 14 - LRB103 27518 HLH 53893 b
513	513	1 by the United States Food and Drug Administration that are
514	514	2 used for cancer treatment pursuant to a prescription, as well
515	515	3 as any accessories and components related to those devices,
516	516	4 modifications to a motor vehicle for the purpose of rendering
517	517	5 it usable by a person with a disability, and insulin, blood
518	518	6 sugar testing materials, syringes, and needles used by human
519	519	7 diabetics. For the purposes of this Section, until September
520	520	8 1, 2009: the term "soft drinks" means any complete, finished,
521	521	9 ready-to-use, non-alcoholic drink, whether carbonated or not,
522	522	10 including, but not limited to, soda water, cola, fruit juice,
523	523	11 vegetable juice, carbonated water, and all other preparations
524	524	12 commonly known as soft drinks of whatever kind or description
525	525	13 that are contained in any closed or sealed bottle, can,
526	526	14 carton, or container, regardless of size; but "soft drinks"
527	527	15 does not include coffee, tea, non-carbonated water, infant
528	528	16 formula, milk or milk products as defined in the Grade A
529	529	17 Pasteurized Milk and Milk Products Act, or drinks containing
530	530	18 50% or more natural fruit or vegetable juice.
531	531	19 Notwithstanding any other provisions of this Act,
532	532	20 beginning September 1, 2009, "soft drinks" means non-alcoholic
533	533	21 beverages that contain natural or artificial sweeteners. "Soft
534	534	22 drinks" does do not include beverages that contain milk or
535	535	23 milk products, soy, rice or similar milk substitutes, or
536	536	24 greater than 50% of vegetable or fruit juice by volume.
537	537	25 Until August 1, 2009, and notwithstanding any other
538	538	26 provisions of this Act, "food for human consumption that is to
539	539
540	540
541	541
542	542
543	543
544	544	SB1869 - 14 - LRB103 27518 HLH 53893 b
545	545
546	546
547	547	SB1869- 15 -LRB103 27518 HLH 53893 b SB1869 - 15 - LRB103 27518 HLH 53893 b
548	548	SB1869 - 15 - LRB103 27518 HLH 53893 b
549	549	1 be consumed off the premises where it is sold" includes all
550	550	2 food sold through a vending machine, except soft drinks and
551	551	3 food products that are dispensed hot from a vending machine,
552	552	4 regardless of the location of the vending machine. Beginning
553	553	5 August 1, 2009, and notwithstanding any other provisions of
554	554	6 this Act, "food for human consumption that is to be consumed
555	555	7 off the premises where it is sold" includes all food sold
556	556	8 through a vending machine, except soft drinks, candy, and food
557	557	9 products that are dispensed hot from a vending machine,
558	558	10 regardless of the location of the vending machine.
559	559	11 Notwithstanding any other provisions of this Act,
560	560	12 beginning September 1, 2009, "food for human consumption that
561	561	13 is to be consumed off the premises where it is sold" does not
562	562	14 include candy. For purposes of this Section, "candy" means a
563	563	15 preparation of sugar, honey, or other natural or artificial
564	564	16 sweeteners in combination with chocolate, fruits, nuts or
565	565	17 other ingredients or flavorings in the form of bars, drops, or
566	566	18 pieces. "Candy" does not include any preparation that contains
567	567	19 flour or requires refrigeration.
568	568	20 Notwithstanding any other provisions of this Act,
569	569	21 beginning September 1, 2009, "nonprescription medicines and
570	570	22 drugs" does not include grooming and hygiene products. For
571	571	23 purposes of this Section, "grooming and hygiene products"
572	572	24 includes, but is not limited to, soaps and cleaning solutions,
573	573	25 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
574	574	26 lotions and screens, unless those products are available by
575	575
576	576
577	577
578	578
579	579
580	580	SB1869 - 15 - LRB103 27518 HLH 53893 b
581	581
582	582
583	583	SB1869- 16 -LRB103 27518 HLH 53893 b SB1869 - 16 - LRB103 27518 HLH 53893 b
584	584	SB1869 - 16 - LRB103 27518 HLH 53893 b
585	585	1 prescription only, regardless of whether the products meet the
586	586	2 definition of "over-the-counter-drugs". For the purposes of
587	587	3 this paragraph, "over-the-counter-drug" means a drug for human
588	588	4 use that contains a label that identifies the product as a drug
589	589	5 as required by 21 CFR C.F.R. 201.66. The
590	590	6 "over-the-counter-drug" label includes:
591	591	7 (A) a A "Drug Facts" panel; or
592	592	8 (B) a A statement of the "active ingredient(s)" with a
593	593	9 list of those ingredients contained in the compound,
594	594	10 substance or preparation.
595	595	11 Beginning on January 1, 2014 (the effective date of Public
596	596	12 Act 98-122), "prescription and nonprescription medicines and
597	597	13 drugs" includes medical cannabis purchased from a registered
598	598	14 dispensing organization under the Compassionate Use of Medical
599	599	15 Cannabis Program Act.
600	600	16 As used in this Section, "adult use cannabis" means
601	601	17 cannabis subject to tax under the Cannabis Cultivation
602	602	18 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
603	603	19 and does not include cannabis subject to tax under the
604	604	20 Compassionate Use of Medical Cannabis Program Act.
605	605	21 If the property that is acquired from a serviceman is
606	606	22 acquired outside Illinois and used outside Illinois before
607	607	23 being brought to Illinois for use here and is taxable under
608	608	24 this Act, the "selling price" on which the tax is computed
609	609	25 shall be reduced by an amount that represents a reasonable
610	610	26 allowance for depreciation for the period of prior
611	611
612	612
613	613
614	614
615	615
616	616	SB1869 - 16 - LRB103 27518 HLH 53893 b
617	617
618	618
619	619	SB1869- 17 -LRB103 27518 HLH 53893 b SB1869 - 17 - LRB103 27518 HLH 53893 b
620	620	SB1869 - 17 - LRB103 27518 HLH 53893 b
621	621	1 out-of-state use.
622	622	2 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
623	623	3 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
624	624	4 20, Section 20-10, eff. 4-19-22; 102-700, Article 60, Section
625	625	5 60-20, eff. 4-19-22; revised 6-1-22.)
626	626	6 Section 15. The Service Occupation Tax Act is amended by
627	627	7 changing Section 3-10 as follows:
628	628	8 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
629	629	9 Sec. 3-10. Rate of tax. Unless otherwise provided in this
630	630	10 Section, the tax imposed by this Act is at the rate of 6.25% of
631	631	11 the "selling price", as defined in Section 2 of the Service Use
632	632	12 Tax Act, of the tangible personal property. For the purpose of
633	633	13 computing this tax, in no event shall the "selling price" be
634	634	14 less than the cost price to the serviceman of the tangible
635	635	15 personal property transferred. The selling price of each item
636	636	16 of tangible personal property transferred as an incident of a
637	637	17 sale of service may be shown as a distinct and separate item on
638	638	18 the serviceman's billing to the service customer. If the
639	639	19 selling price is not so shown, the selling price of the
640	640	20 tangible personal property is deemed to be 50% of the
641	641	21 serviceman's entire billing to the service customer. When,
642	642	22 however, a serviceman contracts to design, develop, and
643	643	23 produce special order machinery or equipment, the tax imposed
644	644	24 by this Act shall be based on the serviceman's cost price of
645	645
646	646
647	647
648	648
649	649
650	650	SB1869 - 17 - LRB103 27518 HLH 53893 b
651	651
652	652
653	653	SB1869- 18 -LRB103 27518 HLH 53893 b SB1869 - 18 - LRB103 27518 HLH 53893 b
654	654	SB1869 - 18 - LRB103 27518 HLH 53893 b
655	655	1 the tangible personal property transferred incident to the
656	656	2 completion of the contract.
657	657	3 Beginning on July 1, 2000 and through December 31, 2000,
658	658	4 with respect to motor fuel, as defined in Section 1.1 of the
659	659	5 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
660	660	6 the Use Tax Act, the tax is imposed at the rate of 1.25%.
661	661	7 With respect to gasohol, as defined in the Use Tax Act, the
662	662	8 tax imposed by this Act shall apply to (i) 70% of the cost
663	663	9 price of property transferred as an incident to the sale of
664	664	10 service on or after January 1, 1990, and before July 1, 2003,
665	665	11 (ii) 80% of the selling price of property transferred as an
666	666	12 incident to the sale of service on or after July 1, 2003 and on
667	667	13 or before July 1, 2017, and (iii) 100% of the cost price of
668	668	14 property transferred as an incident to the sale of service
669	669	15 after July 1, 2017 and prior to July 1, 2023, (iv) 90% of the
670	670	16 cost price of property transferred as an incident to the sale
671	671	17 of service on or after July 1, 2023 and on or before December
672	672	18 31, 2030, and (v) 100% of the cost price of property
673	673	19 transferred as an incident to the sale of service after
674	674	20 December 31, 2030 thereafter. If, at any time, however, the
675	675	21 tax under this Act on sales of gasohol, as defined in the Use
676	676	22 Tax Act, is imposed at the rate of 1.25%, then the tax imposed
677	677	23 by this Act applies to 100% of the proceeds of sales of gasohol
678	678	24 made during that time.
679	679	25 With respect to mid-range ethanol blends, as defined in
680	680	26 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
681	681
682	682
683	683
684	684
685	685
686	686	SB1869 - 18 - LRB103 27518 HLH 53893 b
687	687
688	688
689	689	SB1869- 19 -LRB103 27518 HLH 53893 b SB1869 - 19 - LRB103 27518 HLH 53893 b
690	690	SB1869 - 19 - LRB103 27518 HLH 53893 b
691	691	1 applies to (i) 80% of the selling price of property
692	692	2 transferred as an incident to the sale of service on or after
693	693	3 July 1, 2023 and on or before December 31, 2030 and (ii) 100%
694	694	4 of the selling price after December 31, 2030. If, at any time,
695	695	5 however, the tax under this Act on sales of mid-range ethanol
696	696	6 blends is imposed at the rate of 1.25%, then the tax imposed by
697	697	7 this Act applies to 100% of the proceeds of sales of mid-range
698	698	8 ethanol blends made during that time.
699	699	9 With respect to majority blended ethanol fuel, as defined
700	700	10 in the Use Tax Act, the tax imposed by this Act does not apply
701	701	11 to the selling price of property transferred as an incident to
702	702	12 the sale of service on or after July 1, 2003 and on or before
703	703	13 December 31, 2030 December 31, 2023 but applies to 100% of the
704	704	14 selling price thereafter.
705	705	15 With respect to biodiesel blends, as defined in the Use
706	706	16 Tax Act, with no less than 1% and no more than 10% biodiesel,
707	707	17 the tax imposed by this Act applies to (i) 80% of the selling
708	708	18 price of property transferred as an incident to the sale of
709	709	19 service on or after July 1, 2003 and on or before December 31,
710	710	20 2018 and (ii) 100% of the proceeds of the selling price after
711	711	21 December 31, 2018 and before January 1, 2024. On and after
712	712	22 January 1, 2024 and on or before December 31, 2030, the
713	713	23 taxation of biodiesel, renewable diesel, and biodiesel blends
714	714	24 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
715	715	25 at any time, however, the tax under this Act on sales of
716	716	26 biodiesel blends, as defined in the Use Tax Act, with no less
717	717
718	718
719	719
720	720
721	721
722	722	SB1869 - 19 - LRB103 27518 HLH 53893 b
723	723
724	724
725	725	SB1869- 20 -LRB103 27518 HLH 53893 b SB1869 - 20 - LRB103 27518 HLH 53893 b
726	726	SB1869 - 20 - LRB103 27518 HLH 53893 b
727	727	1 than 1% and no more than 10% biodiesel is imposed at the rate
728	728	2 of 1.25%, then the tax imposed by this Act applies to 100% of
729	729	3 the proceeds of sales of biodiesel blends with no less than 1%
730	730	4 and no more than 10% biodiesel made during that time.
731	731	5 With respect to biodiesel, as defined in the Use Tax Act,
732	732	6 and biodiesel blends, as defined in the Use Tax Act, with more
733	733	7 than 10% but no more than 99% biodiesel material, the tax
734	734	8 imposed by this Act does not apply to the proceeds of the
735	735	9 selling price of property transferred as an incident to the
736	736	10 sale of service on or after July 1, 2003 and on or before
737	737	11 December 31, 2023. On and after January 1, 2024 and on or
738	738	12 before December 31, 2030, the taxation of biodiesel, renewable
739	739	13 diesel, and biodiesel blends shall be as provided in Section
740	740	14 3-5.1 of the Use Tax Act.
741	741	15 At the election of any registered serviceman made for each
742	742	16 fiscal year, sales of service in which the aggregate annual
743	743	17 cost price of tangible personal property transferred as an
744	744	18 incident to the sales of service is less than 35%, or 75% in
745	745	19 the case of servicemen transferring prescription drugs or
746	746	20 servicemen engaged in graphic arts production, of the
747	747	21 aggregate annual total gross receipts from all sales of
748	748	22 service, the tax imposed by this Act shall be based on the
749	749	23 serviceman's cost price of the tangible personal property
750	750	24 transferred incident to the sale of those services.
751	751	25 Until July 1, 2022 and beginning again on July 1, 2023, the
752	752	26 tax shall be imposed at the rate of 1% on food prepared for
753	753
754	754
755	755
756	756
757	757
758	758	SB1869 - 20 - LRB103 27518 HLH 53893 b
759	759
760	760
761	761	SB1869- 21 -LRB103 27518 HLH 53893 b SB1869 - 21 - LRB103 27518 HLH 53893 b
762	762	SB1869 - 21 - LRB103 27518 HLH 53893 b
763	763	1 immediate consumption and transferred incident to a sale of
764	764	2 service subject to this Act or the Service Use Tax Act by an
765	765	3 entity licensed under the Hospital Licensing Act, the Nursing
766	766	4 Home Care Act, the Assisted Living and Shared Housing Act, the
767	767	5 ID/DD Community Care Act, the MC/DD Act, the Specialized
768	768	6 Mental Health Rehabilitation Act of 2013, or the Child Care
769	769	7 Act of 1969, or an entity that holds a permit issued pursuant
770	770	8 to the Life Care Facilities Act. Until July 1, 2022 and
771	771	9 beginning again on July 1, 2023, the tax shall also be imposed
772	772	10 at the rate of 1% on food for human consumption that is to be
773	773	11 consumed off the premises where it is sold (other than
774	774	12 alcoholic beverages, food consisting of or infused with adult
775	775	13 use cannabis, soft drinks, and food that has been prepared for
776	776	14 immediate consumption and is not otherwise included in this
777	777	15 paragraph).
778	778	16 Beginning on July 1, 2022 and until July 1, 2023, the tax
779	779	17 shall be imposed at the rate of 0% on food prepared for
780	780	18 immediate consumption and transferred incident to a sale of
781	781	19 service subject to this Act or the Service Use Tax Act by an
782	782	20 entity licensed under the Hospital Licensing Act, the Nursing
783	783	21 Home Care Act, the Assisted Living and Shared Housing Act, the
784	784	22 ID/DD Community Care Act, the MC/DD Act, the Specialized
785	785	23 Mental Health Rehabilitation Act of 2013, or the Child Care
786	786	24 Act of 1969, or an entity that holds a permit issued pursuant
787	787	25 to the Life Care Facilities Act. Beginning July 1, 2022 and
788	788	26 until July 1, 2023, the tax shall also be imposed at the rate
789	789
790	790
791	791
792	792
793	793
794	794	SB1869 - 21 - LRB103 27518 HLH 53893 b
795	795
796	796
797	797	SB1869- 22 -LRB103 27518 HLH 53893 b SB1869 - 22 - LRB103 27518 HLH 53893 b
798	798	SB1869 - 22 - LRB103 27518 HLH 53893 b
799	799	1 of 0% on food for human consumption that is to be consumed off
800	800	2 the premises where it is sold (other than alcoholic beverages,
801	801	3 food consisting of or infused with adult use cannabis, soft
802	802	4 drinks, and food that has been prepared for immediate
803	803	5 consumption and is not otherwise included in this paragraph).
804	804	6 The tax shall also be imposed at the rate of 1% on
805	805	7 prescription and nonprescription medicines, drugs, medical
806	806	8 appliances, products classified as Class III medical devices
807	807	9 by the United States Food and Drug Administration that are
808	808	10 used for cancer treatment pursuant to a prescription, as well
809	809	11 as any accessories and components related to those devices,
810	810	12 modifications to a motor vehicle for the purpose of rendering
811	811	13 it usable by a person with a disability, and insulin, blood
812	812	14 sugar testing materials, syringes, and needles used by human
813	813	15 diabetics. For the purposes of this Section, until September
814	814	16 1, 2009: the term "soft drinks" means any complete, finished,
815	815	17 ready-to-use, non-alcoholic drink, whether carbonated or not,
816	816	18 including, but not limited to, soda water, cola, fruit juice,
817	817	19 vegetable juice, carbonated water, and all other preparations
818	818	20 commonly known as soft drinks of whatever kind or description
819	819	21 that are contained in any closed or sealed can, carton, or
820	820	22 container, regardless of size; but "soft drinks" does not
821	821	23 include coffee, tea, non-carbonated water, infant formula,
822	822	24 milk or milk products as defined in the Grade A Pasteurized
823	823	25 Milk and Milk Products Act, or drinks containing 50% or more
824	824	26 natural fruit or vegetable juice.
825	825
826	826
827	827
828	828
829	829
830	830	SB1869 - 22 - LRB103 27518 HLH 53893 b
831	831
832	832
833	833	SB1869- 23 -LRB103 27518 HLH 53893 b SB1869 - 23 - LRB103 27518 HLH 53893 b
834	834	SB1869 - 23 - LRB103 27518 HLH 53893 b
835	835	1 Notwithstanding any other provisions of this Act,
836	836	2 beginning September 1, 2009, "soft drinks" means non-alcoholic
837	837	3 beverages that contain natural or artificial sweeteners. "Soft
838	838	4 drinks" does do not include beverages that contain milk or
839	839	5 milk products, soy, rice or similar milk substitutes, or
840	840	6 greater than 50% of vegetable or fruit juice by volume.
841	841	7 Until August 1, 2009, and notwithstanding any other
842	842	8 provisions of this Act, "food for human consumption that is to
843	843	9 be consumed off the premises where it is sold" includes all
844	844	10 food sold through a vending machine, except soft drinks and
845	845	11 food products that are dispensed hot from a vending machine,
846	846	12 regardless of the location of the vending machine. Beginning
847	847	13 August 1, 2009, and notwithstanding any other provisions of
848	848	14 this Act, "food for human consumption that is to be consumed
849	849	15 off the premises where it is sold" includes all food sold
850	850	16 through a vending machine, except soft drinks, candy, and food
851	851	17 products that are dispensed hot from a vending machine,
852	852	18 regardless of the location of the vending machine.
853	853	19 Notwithstanding any other provisions of this Act,
854	854	20 beginning September 1, 2009, "food for human consumption that
855	855	21 is to be consumed off the premises where it is sold" does not
856	856	22 include candy. For purposes of this Section, "candy" means a
857	857	23 preparation of sugar, honey, or other natural or artificial
858	858	24 sweeteners in combination with chocolate, fruits, nuts or
859	859	25 other ingredients or flavorings in the form of bars, drops, or
860	860	26 pieces. "Candy" does not include any preparation that contains
861	861
862	862
863	863
864	864
865	865
866	866	SB1869 - 23 - LRB103 27518 HLH 53893 b
867	867
868	868
869	869	SB1869- 24 -LRB103 27518 HLH 53893 b SB1869 - 24 - LRB103 27518 HLH 53893 b
870	870	SB1869 - 24 - LRB103 27518 HLH 53893 b
871	871	1 flour or requires refrigeration.
872	872	2 Notwithstanding any other provisions of this Act,
873	873	3 beginning September 1, 2009, "nonprescription medicines and
874	874	4 drugs" does not include grooming and hygiene products. For
875	875	5 purposes of this Section, "grooming and hygiene products"
876	876	6 includes, but is not limited to, soaps and cleaning solutions,
877	877	7 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
878	878	8 lotions and screens, unless those products are available by
879	879	9 prescription only, regardless of whether the products meet the
880	880	10 definition of "over-the-counter-drugs". For the purposes of
881	881	11 this paragraph, "over-the-counter-drug" means a drug for human
882	882	12 use that contains a label that identifies the product as a drug
883	883	13 as required by 21 CFR C.F.R. 201.66. The
884	884	14 "over-the-counter-drug" label includes:
885	885	15 (A) a A "Drug Facts" panel; or
886	886	16 (B) a A statement of the "active ingredient(s)" with a
887	887	17 list of those ingredients contained in the compound,
888	888	18 substance or preparation.
889	889	19 Beginning on January 1, 2014 (the effective date of Public
890	890	20 Act 98-122), "prescription and nonprescription medicines and
891	891	21 drugs" includes medical cannabis purchased from a registered
892	892	22 dispensing organization under the Compassionate Use of Medical
893	893	23 Cannabis Program Act.
894	894	24 As used in this Section, "adult use cannabis" means
895	895	25 cannabis subject to tax under the Cannabis Cultivation
896	896	26 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
897	897
898	898
899	899
900	900
901	901
902	902	SB1869 - 24 - LRB103 27518 HLH 53893 b
903	903
904	904
905	905	SB1869- 25 -LRB103 27518 HLH 53893 b SB1869 - 25 - LRB103 27518 HLH 53893 b
906	906	SB1869 - 25 - LRB103 27518 HLH 53893 b
907	907	1 and does not include cannabis subject to tax under the
908	908	2 Compassionate Use of Medical Cannabis Program Act.
909	909	3 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
910	910	4 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
911	911	5 20, Section 20-15, eff. 4-19-22; 102-700, Article 60, Section
912	912	6 60-25, eff. 4-19-22; revised 6-1-22.)
913	913	7 Section 20. The Retailers' Occupation Tax Act is amended
914	914	8 by changing Section 2-10 as follows:
915	915	9 (35 ILCS 120/2-10)
916	916	10 Sec. 2-10. Rate of tax. Unless otherwise provided in this
917	917	11 Section, the tax imposed by this Act is at the rate of 6.25% of
918	918	12 gross receipts from sales of tangible personal property made
919	919	13 in the course of business.
920	920	14 Beginning on July 1, 2000 and through December 31, 2000,
921	921	15 with respect to motor fuel, as defined in Section 1.1 of the
922	922	16 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
923	923	17 the Use Tax Act, the tax is imposed at the rate of 1.25%.
924	924	18 Beginning on August 6, 2010 through August 15, 2010, and
925	925	19 beginning again on August 5, 2022 through August 14, 2022,
926	926	20 with respect to sales tax holiday items as defined in Section
927	927	21 2-8 of this Act, the tax is imposed at the rate of 1.25%.
928	928	22 Within 14 days after July 1, 2000 (the effective date of
929	929	23 Public Act 91-872) this amendatory Act of the 91st General
930	930	24 Assembly, each retailer of motor fuel and gasohol shall cause
931	931
932	932
933	933
934	934
935	935
936	936	SB1869 - 25 - LRB103 27518 HLH 53893 b
937	937
938	938
939	939	SB1869- 26 -LRB103 27518 HLH 53893 b SB1869 - 26 - LRB103 27518 HLH 53893 b
940	940	SB1869 - 26 - LRB103 27518 HLH 53893 b
941	941	1 the following notice to be posted in a prominently visible
942	942	2 place on each retail dispensing device that is used to
943	943	3 dispense motor fuel or gasohol in the State of Illinois: "As of
944	944	4 July 1, 2000, the State of Illinois has eliminated the State's
945	945	5 share of sales tax on motor fuel and gasohol through December
946	946	6 31, 2000. The price on this pump should reflect the
947	947	7 elimination of the tax." The notice shall be printed in bold
948	948	8 print on a sign that is no smaller than 4 inches by 8 inches.
949	949	9 The sign shall be clearly visible to customers. Any retailer
950	950	10 who fails to post or maintain a required sign through December
951	951	11 31, 2000 is guilty of a petty offense for which the fine shall
952	952	12 be $500 per day per each retail premises where a violation
953	953	13 occurs.
954	954	14 With respect to gasohol, as defined in the Use Tax Act, the
955	955	15 tax imposed by this Act applies to (i) 70% of the proceeds of
956	956	16 sales made on or after January 1, 1990, and before July 1,
957	957	17 2003, (ii) 80% of the proceeds of sales made on or after July
958	958	18 1, 2003 and on or before July 1, 2017, and (iii) 100% of the
959	959	19 proceeds of sales made after July 1, 2017 and prior to July 1,
960	960	20 2023, (iv) 90% of the proceeds of sales made on or after July
961	961	21 1, 2023 and on or before December 31, 2030, and (v) 100% of the
962	962	22 proceeds of sales made after December 31, 2030 thereafter. If,
963	963	23 at any time, however, the tax under this Act on sales of
964	964	24 gasohol, as defined in the Use Tax Act, is imposed at the rate
965	965	25 of 1.25%, then the tax imposed by this Act applies to 100% of
966	966	26 the proceeds of sales of gasohol made during that time.
967	967
968	968
969	969
970	970
971	971
972	972	SB1869 - 26 - LRB103 27518 HLH 53893 b
973	973
974	974
975	975	SB1869- 27 -LRB103 27518 HLH 53893 b SB1869 - 27 - LRB103 27518 HLH 53893 b
976	976	SB1869 - 27 - LRB103 27518 HLH 53893 b
977	977	1 With respect to mid-range ethanol blends, as defined in
978	978	2 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
979	979	3 applies to (i) 80% of the proceeds of sales made on or after
980	980	4 July 1, 2023 and on or before December 31, 2030 and (ii) 100%
981	981	5 of the proceeds of sales made after December 31, 2030. If, at
982	982	6 any time, however, the tax under this Act on sales of mid-range
983	983	7 ethanol blends is imposed at the rate of 1.25%, then the tax
984	984	8 imposed by this Act applies to 100% of the proceeds of sales of
985	985	9 mid-range ethanol blends made during that time.
986	986	10 With respect to majority blended ethanol fuel, as defined
987	987	11 in the Use Tax Act, the tax imposed by this Act does not apply
988	988	12 to the proceeds of sales made on or after July 1, 2003 and on
989	989	13 or before December 31, 2030 December 31, 2023 but applies to
990	990	14 100% of the proceeds of sales made thereafter.
991	991	15 With respect to biodiesel blends, as defined in the Use
992	992	16 Tax Act, with no less than 1% and no more than 10% biodiesel,
993	993	17 the tax imposed by this Act applies to (i) 80% of the proceeds
994	994	18 of sales made on or after July 1, 2003 and on or before
995	995	19 December 31, 2018 and (ii) 100% of the proceeds of sales made
996	996	20 after December 31, 2018 and before January 1, 2024. On and
997	997	21 after January 1, 2024 and on or before December 31, 2030, the
998	998	22 taxation of biodiesel, renewable diesel, and biodiesel blends
999	999	23 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
1000	1000	24 at any time, however, the tax under this Act on sales of
1001	1001	25 biodiesel blends, as defined in the Use Tax Act, with no less
1002	1002	26 than 1% and no more than 10% biodiesel is imposed at the rate
1003	1003
1004	1004
1005	1005
1006	1006
1007	1007
1008	1008	SB1869 - 27 - LRB103 27518 HLH 53893 b
1009	1009
1010	1010
1011	1011	SB1869- 28 -LRB103 27518 HLH 53893 b SB1869 - 28 - LRB103 27518 HLH 53893 b
1012	1012	SB1869 - 28 - LRB103 27518 HLH 53893 b
1013	1013	1 of 1.25%, then the tax imposed by this Act applies to 100% of
1014	1014	2 the proceeds of sales of biodiesel blends with no less than 1%
1015	1015	3 and no more than 10% biodiesel made during that time.
1016	1016	4 With respect to biodiesel, as defined in the Use Tax Act,
1017	1017	5 and biodiesel blends, as defined in the Use Tax Act, with more
1018	1018	6 than 10% but no more than 99% biodiesel, the tax imposed by
1019	1019	7 this Act does not apply to the proceeds of sales made on or
1020	1020	8 after July 1, 2003 and on or before December 31, 2023. On and
1021	1021	9 after January 1, 2024 and on or before December 31, 2030, the
1022	1022	10 taxation of biodiesel, renewable diesel, and biodiesel blends
1023	1023	11 shall be as provided in Section 3-5.1 of the Use Tax Act.
1024	1024	12 Until July 1, 2022 and beginning again on July 1, 2023,
1025	1025	13 with respect to food for human consumption that is to be
1026	1026	14 consumed off the premises where it is sold (other than
1027	1027	15 alcoholic beverages, food consisting of or infused with adult
1028	1028	16 use cannabis, soft drinks, and food that has been prepared for
1029	1029	17 immediate consumption), the tax is imposed at the rate of 1%.
1030	1030	18 Beginning July 1, 2022 and until July 1, 2023, with respect to
1031	1031	19 food for human consumption that is to be consumed off the
1032	1032	20 premises where it is sold (other than alcoholic beverages,
1033	1033	21 food consisting of or infused with adult use cannabis, soft
1034	1034	22 drinks, and food that has been prepared for immediate
1035	1035	23 consumption), the tax is imposed at the rate of 0%.
1036	1036	24 With respect to prescription and nonprescription
1037	1037	25 medicines, drugs, medical appliances, products classified as
1038	1038	26 Class III medical devices by the United States Food and Drug
1039	1039
1040	1040
1041	1041
1042	1042
1043	1043
1044	1044	SB1869 - 28 - LRB103 27518 HLH 53893 b
1045	1045
1046	1046
1047	1047	SB1869- 29 -LRB103 27518 HLH 53893 b SB1869 - 29 - LRB103 27518 HLH 53893 b
1048	1048	SB1869 - 29 - LRB103 27518 HLH 53893 b
1049	1049	1 Administration that are used for cancer treatment pursuant to
1050	1050	2 a prescription, as well as any accessories and components
1051	1051	3 related to those devices, modifications to a motor vehicle for
1052	1052	4 the purpose of rendering it usable by a person with a
1053	1053	5 disability, and insulin, blood sugar testing materials,
1054	1054	6 syringes, and needles used by human diabetics, the tax is
1055	1055	7 imposed at the rate of 1%. For the purposes of this Section,
1056	1056	8 until September 1, 2009: the term "soft drinks" means any
1057	1057	9 complete, finished, ready-to-use, non-alcoholic drink, whether
1058	1058	10 carbonated or not, including, but not limited to, soda water,
1059	1059	11 cola, fruit juice, vegetable juice, carbonated water, and all
1060	1060	12 other preparations commonly known as soft drinks of whatever
1061	1061	13 kind or description that are contained in any closed or sealed
1062	1062	14 bottle, can, carton, or container, regardless of size; but
1063	1063	15 "soft drinks" does not include coffee, tea, non-carbonated
1064	1064	16 water, infant formula, milk or milk products as defined in the
1065	1065	17 Grade A Pasteurized Milk and Milk Products Act, or drinks
1066	1066	18 containing 50% or more natural fruit or vegetable juice.
1067	1067	19 Notwithstanding any other provisions of this Act,
1068	1068	20 beginning September 1, 2009, "soft drinks" means non-alcoholic
1069	1069	21 beverages that contain natural or artificial sweeteners. "Soft
1070	1070	22 drinks" does do not include beverages that contain milk or
1071	1071	23 milk products, soy, rice or similar milk substitutes, or
1072	1072	24 greater than 50% of vegetable or fruit juice by volume.
1073	1073	25 Until August 1, 2009, and notwithstanding any other
1074	1074	26 provisions of this Act, "food for human consumption that is to
1075	1075
1076	1076
1077	1077
1078	1078
1079	1079
1080	1080	SB1869 - 29 - LRB103 27518 HLH 53893 b
1081	1081
1082	1082
1083	1083	SB1869- 30 -LRB103 27518 HLH 53893 b SB1869 - 30 - LRB103 27518 HLH 53893 b
1084	1084	SB1869 - 30 - LRB103 27518 HLH 53893 b
1085	1085	1 be consumed off the premises where it is sold" includes all
1086	1086	2 food sold through a vending machine, except soft drinks and
1087	1087	3 food products that are dispensed hot from a vending machine,
1088	1088	4 regardless of the location of the vending machine. Beginning
1089	1089	5 August 1, 2009, and notwithstanding any other provisions of
1090	1090	6 this Act, "food for human consumption that is to be consumed
1091	1091	7 off the premises where it is sold" includes all food sold
1092	1092	8 through a vending machine, except soft drinks, candy, and food
1093	1093	9 products that are dispensed hot from a vending machine,
1094	1094	10 regardless of the location of the vending machine.
1095	1095	11 Notwithstanding any other provisions of this Act,
1096	1096	12 beginning September 1, 2009, "food for human consumption that
1097	1097	13 is to be consumed off the premises where it is sold" does not
1098	1098	14 include candy. For purposes of this Section, "candy" means a
1099	1099	15 preparation of sugar, honey, or other natural or artificial
1100	1100	16 sweeteners in combination with chocolate, fruits, nuts or
1101	1101	17 other ingredients or flavorings in the form of bars, drops, or
1102	1102	18 pieces. "Candy" does not include any preparation that contains
1103	1103	19 flour or requires refrigeration.
1104	1104	20 Notwithstanding any other provisions of this Act,
1105	1105	21 beginning September 1, 2009, "nonprescription medicines and
1106	1106	22 drugs" does not include grooming and hygiene products. For
1107	1107	23 purposes of this Section, "grooming and hygiene products"
1108	1108	24 includes, but is not limited to, soaps and cleaning solutions,
1109	1109	25 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
1110	1110	26 lotions and screens, unless those products are available by
1111	1111
1112	1112
1113	1113
1114	1114
1115	1115
1116	1116	SB1869 - 30 - LRB103 27518 HLH 53893 b
1117	1117
1118	1118
1119	1119	SB1869- 31 -LRB103 27518 HLH 53893 b SB1869 - 31 - LRB103 27518 HLH 53893 b
1120	1120	SB1869 - 31 - LRB103 27518 HLH 53893 b
1121	1121	1 prescription only, regardless of whether the products meet the
1122	1122	2 definition of "over-the-counter-drugs". For the purposes of
1123	1123	3 this paragraph, "over-the-counter-drug" means a drug for human
1124	1124	4 use that contains a label that identifies the product as a drug
1125	1125	5 as required by 21 CFR C.F.R. 201.66. The
1126	1126	6 "over-the-counter-drug" label includes:
1127	1127	7 (A) a A "Drug Facts" panel; or
1128	1128	8 (B) a A statement of the "active ingredient(s)" with a
1129	1129	9 list of those ingredients contained in the compound,
1130	1130	10 substance or preparation.
1131	1131	11 Beginning on January 1, 2014 (the effective date of Public
1132	1132	12 Act 98-122) this amendatory Act of the 98th General Assembly,
1133	1133	13 "prescription and nonprescription medicines and drugs"
1134	1134	14 includes medical cannabis purchased from a registered
1135	1135	15 dispensing organization under the Compassionate Use of Medical
1136	1136	16 Cannabis Program Act.
1137	1137	17 As used in this Section, "adult use cannabis" means
1138	1138	18 cannabis subject to tax under the Cannabis Cultivation
1139	1139	19 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
1140	1140	20 and does not include cannabis subject to tax under the
1141	1141	21 Compassionate Use of Medical Cannabis Program Act.
1142	1142	22 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
1143	1143	23 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff.
1144	1144	24 4-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22;
1145	1145	25 102-700, Article 65, Section 65-10, eff. 4-19-22; revised
1146	1146	26 6-1-22.)
1147	1147
1148	1148
1149	1149
1150	1150
1151	1151
1152	1152	SB1869 - 31 - LRB103 27518 HLH 53893 b
1153	1153
1154	1154
1155	1155	SB1869- 32 -LRB103 27518 HLH 53893 b SB1869 - 32 - LRB103 27518 HLH 53893 b
1156	1156	SB1869 - 32 - LRB103 27518 HLH 53893 b
1157	1157	1 Section 99. Effective date. This Act takes effect upon
1158	1158	2 becoming law.
1159	1159
1160	1160
1161	1161
1162	1162
1163	1163
1164	1164	SB1869 - 32 - LRB103 27518 HLH 53893 b