Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3364 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 SB3364 Introduced 2/7/2024, by Sen. Craig Wilcox SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-1035 ILCS 110/3-10 from Ch. 120, par. 439.33-1035 ILCS 115/3-10 from Ch. 120, par. 439.103-1035 ILCS 120/2-1035 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 37906 HLH 68038 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3364 Introduced 2/7/2024, by Sen. Craig Wilcox SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-1035 ILCS 110/3-10 from Ch. 120, par. 439.33-1035 ILCS 115/3-10 from Ch. 120, par. 439.103-1035 ILCS 120/2-1035 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 37906 HLH 68038 b LRB103 37906 HLH 68038 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3364 Introduced 2/7/2024, by Sen. Craig Wilcox SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 105/3-1035 ILCS 110/3-10 from Ch. 120, par. 439.33-1035 ILCS 115/3-10 from Ch. 120, par. 439.103-1035 ILCS 120/2-1035 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.
10	10	LRB103 37906 HLH 68038 b LRB103 37906 HLH 68038 b
11	11	LRB103 37906 HLH 68038 b
12	12	A BILL FOR
13	13	SB3364LRB103 37906 HLH 68038 b SB3364 LRB103 37906 HLH 68038 b
14	14	SB3364 LRB103 37906 HLH 68038 b
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
38	38
39	39
40	40
41	41	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3364 Introduced 2/7/2024, by Sen. Craig Wilcox SYNOPSIS AS INTRODUCED:
42	42	35 ILCS 105/3-1035 ILCS 110/3-10 from Ch. 120, par. 439.33-1035 ILCS 115/3-10 from Ch. 120, par. 439.103-1035 ILCS 120/2-1035 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.
49	49	LRB103 37906 HLH 68038 b LRB103 37906 HLH 68038 b
50	50	LRB103 37906 HLH 68038 b
51	51	A BILL FOR
52	52
53	53
54	54
55	55
56	56
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
62	62
63	63
64	64
65	65	LRB103 37906 HLH 68038 b
66	66
67	67
68	68
69	69
70	70
71	71
72	72
73	73
74	74
75	75	SB3364 LRB103 37906 HLH 68038 b
76	76
77	77
78	78	SB3364- 2 -LRB103 37906 HLH 68038 b SB3364 - 2 - LRB103 37906 HLH 68038 b
79	79	SB3364 - 2 - LRB103 37906 HLH 68038 b
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
106	106
107	107
108	108
109	109
110	110
111	111	SB3364 - 2 - LRB103 37906 HLH 68038 b
112	112
113	113
114	114	SB3364- 3 -LRB103 37906 HLH 68038 b SB3364 - 3 - LRB103 37906 HLH 68038 b
115	115	SB3364 - 3 - LRB103 37906 HLH 68038 b
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, (iii) 100% of the proceeds of sales made
119	119	4 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
120	120	5 the proceeds of sales made on or after January 1, 2024 and on
121	121	6 or before December 31, 2028, and (v) 100% of the proceeds of
122	122	7 sales made after December 31, 2028. If, at any time, however,
123	123	8 the tax under this Act on sales of gasohol is imposed at the
124	124	9 rate of 1.25%, then the tax imposed by this Act applies to 100%
125	125	10 of the proceeds of sales of gasohol made during that time.
126	126	11 With respect to mid-range ethanol blends, the tax imposed
127	127	12 by this Act applies to (i) 80% of the proceeds of sales made on
128	128	13 or after January 1, 2024 and on or before December 31, 2028 and
129	129	14 (ii) 100% of the proceeds of sales made thereafter. If, at any
130	130	15 time, however, the tax under this Act on sales of mid-range
131	131	16 ethanol blends is imposed at the rate of 1.25%, then the tax
132	132	17 imposed by this Act applies to 100% of the proceeds of sales of
133	133	18 mid-range ethanol blends made during that time.
134	134	19 With respect to majority blended ethanol fuel, the tax
135	135	20 imposed by this Act does not apply to the proceeds of sales
136	136	21 made on or after July 1, 2003 and on or before December 31,
137	137	22 2028 but applies to 100% of the proceeds of sales made
138	138	23 thereafter.
139	139	24 With respect to biodiesel blends with no less than 1% and
140	140	25 no more than 10% biodiesel, the tax imposed by this Act applies
141	141	26 to (i) 80% of the proceeds of sales made on or after July 1,
142	142
143	143
144	144
145	145
146	146
147	147	SB3364 - 3 - LRB103 37906 HLH 68038 b
148	148
149	149
150	150	SB3364- 4 -LRB103 37906 HLH 68038 b SB3364 - 4 - LRB103 37906 HLH 68038 b
151	151	SB3364 - 4 - LRB103 37906 HLH 68038 b
152	152	1 2003 and on or before December 31, 2018 and (ii) 100% of the
153	153	2 proceeds of sales made after December 31, 2018 and before
154	154	3 January 1, 2024. On and after January 1, 2024 and on or before
155	155	4 December 31, 2030, the taxation of biodiesel, renewable
156	156	5 diesel, and biodiesel blends shall be as provided in Section
157	157	6 3-5.1. If, at any time, however, the tax under this Act on
158	158	7 sales of biodiesel blends with no less than 1% and no more than
159	159	8 10% biodiesel is imposed at the rate of 1.25%, then the tax
160	160	9 imposed by this Act applies to 100% of the proceeds of sales of
161	161	10 biodiesel blends with no less than 1% and no more than 10%
162	162	11 biodiesel made during that time.
163	163	12 With respect to biodiesel and biodiesel blends with more
164	164	13 than 10% but no more than 99% biodiesel, the tax imposed by
165	165	14 this Act does not apply to the proceeds of sales made on or
166	166	15 after July 1, 2003 and on or before December 31, 2023. On and
167	167	16 after January 1, 2024 and on or before December 31, 2030, the
168	168	17 taxation of biodiesel, renewable diesel, and biodiesel blends
169	169	18 shall be as provided in Section 3-5.1.
170	170	19 Until July 1, 2022 and beginning again on July 1, 2023,
171	171	20 with respect to food for human consumption that is to be
172	172	21 consumed off the premises where it is sold (other than
173	173	22 alcoholic beverages, food consisting of or infused with adult
174	174	23 use cannabis, soft drinks, and food that has been prepared for
175	175	24 immediate consumption), the tax is imposed at the rate of 1%.
176	176	25 Beginning on July 1, 2022 and until July 1, 2023, with respect
177	177	26 to food for human consumption that is to be consumed off the
178	178
179	179
180	180
181	181
182	182
183	183	SB3364 - 4 - LRB103 37906 HLH 68038 b
184	184
185	185
186	186	SB3364- 5 -LRB103 37906 HLH 68038 b SB3364 - 5 - LRB103 37906 HLH 68038 b
187	187	SB3364 - 5 - LRB103 37906 HLH 68038 b
188	188	1 premises where it is sold (other than alcoholic beverages,
189	189	2 food consisting of or infused with adult use cannabis, soft
190	190	3 drinks, and food that has been prepared for immediate
191	191	4 consumption), the tax is imposed at the rate of 0%.
192	192	5 With respect to prescription and nonprescription
193	193	6 medicines, drugs, medical appliances, products classified as
194	194	7 Class III medical devices by the United States Food and Drug
195	195	8 Administration that are used for cancer treatment pursuant to
196	196	9 a prescription, as well as any accessories and components
197	197	10 related to those devices, modifications to a motor vehicle for
198	198	11 the purpose of rendering it usable by a person with a
199	199	12 disability, and insulin, blood sugar testing materials,
200	200	13 syringes, and needles used by human diabetics, the tax is
201	201	14 imposed at the rate of 1%. For the purposes of this Section,
202	202	15 until September 1, 2009: the term "soft drinks" means any
203	203	16 complete, finished, ready-to-use, non-alcoholic drink, whether
204	204	17 carbonated or not, including, but not limited to, soda water,
205	205	18 cola, fruit juice, vegetable juice, carbonated water, and all
206	206	19 other preparations commonly known as soft drinks of whatever
207	207	20 kind or description that are contained in any closed or sealed
208	208	21 bottle, can, carton, or container, regardless of size; but
209	209	22 "soft drinks" does not include coffee, tea, non-carbonated
210	210	23 water, infant formula, milk or milk products as defined in the
211	211	24 Grade A Pasteurized Milk and Milk Products Act, or drinks
212	212	25 containing 50% or more natural fruit or vegetable juice.
213	213	26 Notwithstanding any other provisions of this Act,
214	214
215	215
216	216
217	217
218	218
219	219	SB3364 - 5 - LRB103 37906 HLH 68038 b
220	220
221	221
222	222	SB3364- 6 -LRB103 37906 HLH 68038 b SB3364 - 6 - LRB103 37906 HLH 68038 b
223	223	SB3364 - 6 - LRB103 37906 HLH 68038 b
224	224	1 beginning September 1, 2009, "soft drinks" means non-alcoholic
225	225	2 beverages that contain natural or artificial sweeteners. "Soft
226	226	3 drinks" does not include beverages that contain milk or milk
227	227	4 products, soy, rice or similar milk substitutes, or greater
228	228	5 than 50% of vegetable or fruit juice by volume.
229	229	6 Until August 1, 2009, and notwithstanding any other
230	230	7 provisions of this Act, "food for human consumption that is to
231	231	8 be consumed off the premises where it is sold" includes all
232	232	9 food sold through a vending machine, except soft drinks and
233	233	10 food products that are dispensed hot from a vending machine,
234	234	11 regardless of the location of the vending machine. Beginning
235	235	12 August 1, 2009, and notwithstanding any other provisions of
236	236	13 this Act, "food for human consumption that is to be consumed
237	237	14 off the premises where it is sold" includes all food sold
238	238	15 through a vending machine, except soft drinks, candy, and food
239	239	16 products that are dispensed hot from a vending machine,
240	240	17 regardless of the location of the vending machine.
241	241	18 Notwithstanding any other provisions of this Act,
242	242	19 beginning September 1, 2009, "food for human consumption that
243	243	20 is to be consumed off the premises where it is sold" does not
244	244	21 include candy. For purposes of this Section, "candy" means a
245	245	22 preparation of sugar, honey, or other natural or artificial
246	246	23 sweeteners in combination with chocolate, fruits, nuts or
247	247	24 other ingredients or flavorings in the form of bars, drops, or
248	248	25 pieces. "Candy" does not include any preparation that contains
249	249	26 flour or requires refrigeration.
250	250
251	251
252	252
253	253
254	254
255	255	SB3364 - 6 - LRB103 37906 HLH 68038 b
256	256
257	257
258	258	SB3364- 7 -LRB103 37906 HLH 68038 b SB3364 - 7 - LRB103 37906 HLH 68038 b
259	259	SB3364 - 7 - LRB103 37906 HLH 68038 b
260	260	1 Notwithstanding any other provisions of this Act,
261	261	2 beginning September 1, 2009, "nonprescription medicines and
262	262	3 drugs" does not include grooming and hygiene products. For
263	263	4 purposes of this Section, "grooming and hygiene products"
264	264	5 includes, but is not limited to, soaps and cleaning solutions,
265	265	6 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
266	266	7 lotions and screens, unless those products are available by
267	267	8 prescription only, regardless of whether the products meet the
268	268	9 definition of "over-the-counter-drugs". For the purposes of
269	269	10 this paragraph, "over-the-counter-drug" means a drug for human
270	270	11 use that contains a label that identifies the product as a drug
271	271	12 as required by 21 CFR 201.66. The "over-the-counter-drug"
272	272	13 label includes:
273	273	14 (A) a "Drug Facts" panel; or
274	274	15 (B) a statement of the "active ingredient(s)" with a
275	275	16 list of those ingredients contained in the compound,
276	276	17 substance or preparation.
277	277	18 Beginning on January 1, 2014 (the effective date of Public
278	278	19 Act 98-122), "prescription and nonprescription medicines and
279	279	20 drugs" includes medical cannabis purchased from a registered
280	280	21 dispensing organization under the Compassionate Use of Medical
281	281	22 Cannabis Program Act.
282	282	23 As used in this Section, "adult use cannabis" means
283	283	24 cannabis subject to tax under the Cannabis Cultivation
284	284	25 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
285	285	26 and does not include cannabis subject to tax under the
286	286
287	287
288	288
289	289
290	290
291	291	SB3364 - 7 - LRB103 37906 HLH 68038 b
292	292
293	293
294	294	SB3364- 8 -LRB103 37906 HLH 68038 b SB3364 - 8 - LRB103 37906 HLH 68038 b
295	295	SB3364 - 8 - LRB103 37906 HLH 68038 b
296	296	1 Compassionate Use of Medical Cannabis Program Act.
297	297	2 If the property that is purchased at retail from a
298	298	3 retailer is acquired outside Illinois and used outside
299	299	4 Illinois before being brought to Illinois for use here and is
300	300	5 taxable under this Act, the "selling price" on which the tax is
301	301	6 computed shall be reduced by an amount that represents a
302	302	7 reasonable allowance for depreciation for the period of prior
303	303	8 out-of-state use.
304	304	9 (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
305	305	10 Section 20-5, eff. 4-19-22; 102-700, Article 60, Section
306	306	11 60-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff.
307	307	12 4-19-22; 103-9, eff. 6-7-23; 103-154 eff. 6-30-23.)
308	308	13 Section 10. The Service Use Tax Act is amended by changing
309	309	14 Section 3-10 as follows:
310	310	15 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
311	311	16 Sec. 3-10. Rate of tax. Unless otherwise provided in this
312	312	17 Section, the tax imposed by this Act is at the rate of 6.25% of
313	313	18 the selling price of tangible personal property transferred as
314	314	19 an incident to the sale of service, but, for the purpose of
315	315	20 computing this tax, in no event shall the selling price be less
316	316	21 than the cost price of the property to the serviceman.
317	317	22 Beginning on July 1, 2000 and through December 31, 2000,
318	318	23 with respect to motor fuel, as defined in Section 1.1 of the
319	319	24 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
320	320
321	321
322	322
323	323
324	324
325	325	SB3364 - 8 - LRB103 37906 HLH 68038 b
326	326
327	327
328	328	SB3364- 9 -LRB103 37906 HLH 68038 b SB3364 - 9 - LRB103 37906 HLH 68038 b
329	329	SB3364 - 9 - LRB103 37906 HLH 68038 b
330	330	1 the Use Tax Act, the tax is imposed at the rate of 1.25%.
331	331	2 Beginning 30 days after the effective date of this
332	332	3 amendatory Act of the 103rd General Assembly, the tax imposed
333	333	4 under this Act on the following items may not exceed the cents
334	334	5 per gallon rate established by the Department under subsection
335	335	6 (e) of Section 2d of the Retailers' Occupation Tax Act: motor
336	336	7 fuel, as defined in Section 1.1 of the Motor Fuel Tax Law;
337	337	8 gasohol, as defined in Section 3-40 of the Use Tax Act;
338	338	9 majority blended ethanol fuel; and biodiesel and biodiesel
339	339	10 blends. With respect to the tax imposed on biodiesel blends
340	340	11 and gasohol, the maximum cents per gallon rate shall include
341	341	12 the reduction allowed in subsection (e) of Section 2d of the
342	342	13 Retailers' Occupation Tax Act.
343	343	14 With respect to gasohol, as defined in the Use Tax Act, the
344	344	15 tax imposed by this Act applies to (i) 70% of the selling price
345	345	16 of property transferred as an incident to the sale of service
346	346	17 on or after January 1, 1990, and before July 1, 2003, (ii) 80%
347	347	18 of 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 July 1, 2017, (iii) 100% of the selling price of property
350	350	21 transferred as an incident to the sale of service after July 1,
351	351	22 2017 and before January 1, 2024, (iv) 90% of the selling price
352	352	23 of property transferred as an incident to the sale of service
353	353	24 on or after January 1, 2024 and on or before December 31, 2028,
354	354	25 and (v) 100% of the selling price of property transferred as an
355	355	26 incident to the sale of service after December 31, 2028. If, at
356	356
357	357
358	358
359	359
360	360
361	361	SB3364 - 9 - LRB103 37906 HLH 68038 b
362	362
363	363
364	364	SB3364- 10 -LRB103 37906 HLH 68038 b SB3364 - 10 - LRB103 37906 HLH 68038 b
365	365	SB3364 - 10 - LRB103 37906 HLH 68038 b
366	366	1 any time, however, the tax under this Act on sales of gasohol,
367	367	2 as defined in the Use Tax Act, is imposed at the rate of 1.25%,
368	368	3 then the tax imposed by this Act applies to 100% of the
369	369	4 proceeds of sales of gasohol made during that time.
370	370	5 With respect to mid-range ethanol blends, as defined in
371	371	6 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
372	372	7 applies to (i) 80% of the selling price of property
373	373	8 transferred as an incident to the sale of service on or after
374	374	9 January 1, 2024 and on or before December 31, 2028 and (ii)
375	375	10 100% of the selling price of property transferred as an
376	376	11 incident to the sale of service after December 31, 2028. If, at
377	377	12 any time, however, the tax under this Act on sales of mid-range
378	378	13 ethanol blends is imposed at the rate of 1.25%, then the tax
379	379	14 imposed by this Act applies to 100% of the selling price of
380	380	15 mid-range ethanol blends transferred as an incident to the
381	381	16 sale of service during that time.
382	382	17 With respect to majority blended ethanol fuel, as defined
383	383	18 in the Use Tax Act, the tax imposed by this Act does not apply
384	384	19 to the selling price of property transferred as an incident to
385	385	20 the sale of service on or after July 1, 2003 and on or before
386	386	21 December 31, 2028 but applies to 100% of the selling price
387	387	22 thereafter.
388	388	23 With respect to biodiesel blends, as defined in the Use
389	389	24 Tax Act, with no less than 1% and no more than 10% biodiesel,
390	390	25 the tax imposed by this Act applies to (i) 80% of the selling
391	391	26 price of property transferred as an incident to the sale of
392	392
393	393
394	394
395	395
396	396
397	397	SB3364 - 10 - LRB103 37906 HLH 68038 b
398	398
399	399
400	400	SB3364- 11 -LRB103 37906 HLH 68038 b SB3364 - 11 - LRB103 37906 HLH 68038 b
401	401	SB3364 - 11 - LRB103 37906 HLH 68038 b
402	402	1 service on or after July 1, 2003 and on or before December 31,
403	403	2 2018 and (ii) 100% of the proceeds of the selling price after
404	404	3 December 31, 2018 and before January 1, 2024. On and after
405	405	4 January 1, 2024 and on or before December 31, 2030, the
406	406	5 taxation of biodiesel, renewable diesel, and biodiesel blends
407	407	6 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
408	408	7 at any time, however, the tax under this Act on sales of
409	409	8 biodiesel blends, as defined in the Use Tax Act, with no less
410	410	9 than 1% and no more than 10% biodiesel is imposed at the rate
411	411	10 of 1.25%, then the tax imposed by this Act applies to 100% of
412	412	11 the proceeds of sales of biodiesel blends with no less than 1%
413	413	12 and no more than 10% biodiesel made during that time.
414	414	13 With respect to biodiesel, as defined in the Use Tax Act,
415	415	14 and biodiesel blends, as defined in the Use Tax Act, with more
416	416	15 than 10% but no more than 99% biodiesel, the tax imposed by
417	417	16 this Act does not apply to the proceeds of the selling price of
418	418	17 property transferred as an incident to the sale of service on
419	419	18 or after July 1, 2003 and on or before December 31, 2023. On
420	420	19 and after January 1, 2024 and on or before December 31, 2030,
421	421	20 the taxation of biodiesel, renewable diesel, and biodiesel
422	422	21 blends shall be as provided in Section 3-5.1 of the Use Tax
423	423	22 Act.
424	424	23 At the election of any registered serviceman made for each
425	425	24 fiscal year, sales of service in which the aggregate annual
426	426	25 cost price of tangible personal property transferred as an
427	427	26 incident to the sales of service is less than 35%, or 75% in
428	428
429	429
430	430
431	431
432	432
433	433	SB3364 - 11 - LRB103 37906 HLH 68038 b
434	434
435	435
436	436	SB3364- 12 -LRB103 37906 HLH 68038 b SB3364 - 12 - LRB103 37906 HLH 68038 b
437	437	SB3364 - 12 - LRB103 37906 HLH 68038 b
438	438	1 the case of servicemen transferring prescription drugs or
439	439	2 servicemen engaged in graphic arts production, of the
440	440	3 aggregate annual total gross receipts from all sales of
441	441	4 service, the tax imposed by this Act shall be based on the
442	442	5 serviceman's cost price of the tangible personal property
443	443	6 transferred as an incident to the sale of those services.
444	444	7 Until July 1, 2022 and beginning again on July 1, 2023, the
445	445	8 tax shall be imposed at the rate of 1% on food prepared for
446	446	9 immediate consumption and transferred incident to a sale of
447	447	10 service subject to this Act or the Service Occupation Tax Act
448	448	11 by an entity licensed under the Hospital Licensing Act, the
449	449	12 Nursing Home Care Act, the Assisted Living and Shared Housing
450	450	13 Act, the ID/DD Community Care Act, the MC/DD Act, the
451	451	14 Specialized Mental Health Rehabilitation Act of 2013, or the
452	452	15 Child Care Act of 1969, or an entity that holds a permit issued
453	453	16 pursuant to the Life Care Facilities Act. Until July 1, 2022
454	454	17 and beginning again on July 1, 2023, the tax shall also be
455	455	18 imposed at the rate of 1% on food for human consumption that is
456	456	19 to be consumed off the premises where it is sold (other than
457	457	20 alcoholic beverages, food consisting of or infused with adult
458	458	21 use cannabis, soft drinks, and food that has been prepared for
459	459	22 immediate consumption and is not otherwise included in this
460	460	23 paragraph).
461	461	24 Beginning on July 1, 2022 and until July 1, 2023, the tax
462	462	25 shall be imposed at the rate of 0% on food prepared for
463	463	26 immediate consumption and transferred incident to a sale of
464	464
465	465
466	466
467	467
468	468
469	469	SB3364 - 12 - LRB103 37906 HLH 68038 b
470	470
471	471
472	472	SB3364- 13 -LRB103 37906 HLH 68038 b SB3364 - 13 - LRB103 37906 HLH 68038 b
473	473	SB3364 - 13 - LRB103 37906 HLH 68038 b
474	474	1 service subject to this Act or the Service Occupation Tax Act
475	475	2 by an entity licensed under the Hospital Licensing Act, the
476	476	3 Nursing Home Care Act, the Assisted Living and Shared Housing
477	477	4 Act, the ID/DD Community Care Act, the MC/DD Act, the
478	478	5 Specialized Mental Health Rehabilitation Act of 2013, or the
479	479	6 Child Care Act of 1969, or an entity that holds a permit issued
480	480	7 pursuant to the Life Care Facilities Act. Beginning on July 1,
481	481	8 2022 and until July 1, 2023, the tax shall also be imposed at
482	482	9 the rate of 0% on food for human consumption that is to be
483	483	10 consumed off the premises where it is sold (other than
484	484	11 alcoholic beverages, food consisting of or infused with adult
485	485	12 use cannabis, soft drinks, and food that has been prepared for
486	486	13 immediate consumption and is not otherwise included in this
487	487	14 paragraph).
488	488	15 The tax shall also be imposed at the rate of 1% on
489	489	16 prescription and nonprescription medicines, drugs, medical
490	490	17 appliances, products classified as Class III medical devices
491	491	18 by the United States Food and Drug Administration that are
492	492	19 used for cancer treatment pursuant to a prescription, as well
493	493	20 as any accessories and components related to those devices,
494	494	21 modifications to a motor vehicle for the purpose of rendering
495	495	22 it usable by a person with a disability, and insulin, blood
496	496	23 sugar testing materials, syringes, and needles used by human
497	497	24 diabetics. For the purposes of this Section, until September
498	498	25 1, 2009: the term "soft drinks" means any complete, finished,
499	499	26 ready-to-use, non-alcoholic drink, whether carbonated or not,
500	500
501	501
502	502
503	503
504	504
505	505	SB3364 - 13 - LRB103 37906 HLH 68038 b
506	506
507	507
508	508	SB3364- 14 -LRB103 37906 HLH 68038 b SB3364 - 14 - LRB103 37906 HLH 68038 b
509	509	SB3364 - 14 - LRB103 37906 HLH 68038 b
510	510	1 including, but not limited to, soda water, cola, fruit juice,
511	511	2 vegetable juice, carbonated water, and all other preparations
512	512	3 commonly known as soft drinks of whatever kind or description
513	513	4 that are contained in any closed or sealed bottle, can,
514	514	5 carton, or container, regardless of size; but "soft drinks"
515	515	6 does not include coffee, tea, non-carbonated water, infant
516	516	7 formula, milk or milk products as defined in the Grade A
517	517	8 Pasteurized Milk and Milk Products Act, or drinks containing
518	518	9 50% or more natural fruit or vegetable juice.
519	519	10 Notwithstanding any other provisions of this Act,
520	520	11 beginning September 1, 2009, "soft drinks" means non-alcoholic
521	521	12 beverages that contain natural or artificial sweeteners. "Soft
522	522	13 drinks" does not include beverages that contain milk or milk
523	523	14 products, soy, rice or similar milk substitutes, or greater
524	524	15 than 50% of vegetable or fruit juice by volume.
525	525	16 Until August 1, 2009, and notwithstanding any other
526	526	17 provisions of this Act, "food for human consumption that is to
527	527	18 be consumed off the premises where it is sold" includes all
528	528	19 food sold through a vending machine, except soft drinks and
529	529	20 food products that are dispensed hot from a vending machine,
530	530	21 regardless of the location of the vending machine. Beginning
531	531	22 August 1, 2009, and notwithstanding any other provisions of
532	532	23 this Act, "food for human consumption that is to be consumed
533	533	24 off the premises where it is sold" includes all food sold
534	534	25 through a vending machine, except soft drinks, candy, and food
535	535	26 products that are dispensed hot from a vending machine,
536	536
537	537
538	538
539	539
540	540
541	541	SB3364 - 14 - LRB103 37906 HLH 68038 b
542	542
543	543
544	544	SB3364- 15 -LRB103 37906 HLH 68038 b SB3364 - 15 - LRB103 37906 HLH 68038 b
545	545	SB3364 - 15 - LRB103 37906 HLH 68038 b
546	546	1 regardless of the location of the vending machine.
547	547	2 Notwithstanding any other provisions of this Act,
548	548	3 beginning September 1, 2009, "food for human consumption that
549	549	4 is to be consumed off the premises where it is sold" does not
550	550	5 include candy. For purposes of this Section, "candy" means a
551	551	6 preparation of sugar, honey, or other natural or artificial
552	552	7 sweeteners in combination with chocolate, fruits, nuts or
553	553	8 other ingredients or flavorings in the form of bars, drops, or
554	554	9 pieces. "Candy" does not include any preparation that contains
555	555	10 flour or requires refrigeration.
556	556	11 Notwithstanding any other provisions of this Act,
557	557	12 beginning September 1, 2009, "nonprescription medicines and
558	558	13 drugs" does not include grooming and hygiene products. For
559	559	14 purposes of this Section, "grooming and hygiene products"
560	560	15 includes, but is not limited to, soaps and cleaning solutions,
561	561	16 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
562	562	17 lotions and screens, unless those products are available by
563	563	18 prescription only, regardless of whether the products meet the
564	564	19 definition of "over-the-counter-drugs". For the purposes of
565	565	20 this paragraph, "over-the-counter-drug" means a drug for human
566	566	21 use that contains a label that identifies the product as a drug
567	567	22 as required by 21 CFR 201.66. The "over-the-counter-drug"
568	568	23 label includes:
569	569	24 (A) a "Drug Facts" panel; or
570	570	25 (B) a statement of the "active ingredient(s)" with a
571	571	26 list of those ingredients contained in the compound,
572	572
573	573
574	574
575	575
576	576
577	577	SB3364 - 15 - LRB103 37906 HLH 68038 b
578	578
579	579
580	580	SB3364- 16 -LRB103 37906 HLH 68038 b SB3364 - 16 - LRB103 37906 HLH 68038 b
581	581	SB3364 - 16 - LRB103 37906 HLH 68038 b
582	582	1 substance or preparation.
583	583	2 Beginning on January 1, 2014 (the effective date of Public
584	584	3 Act 98-122), "prescription and nonprescription medicines and
585	585	4 drugs" includes medical cannabis purchased from a registered
586	586	5 dispensing organization under the Compassionate Use of Medical
587	587	6 Cannabis Program Act.
588	588	7 As used in this Section, "adult use cannabis" means
589	589	8 cannabis subject to tax under the Cannabis Cultivation
590	590	9 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
591	591	10 and does not include cannabis subject to tax under the
592	592	11 Compassionate Use of Medical Cannabis Program Act.
593	593	12 If the property that is acquired from a serviceman is
594	594	13 acquired outside Illinois and used outside Illinois before
595	595	14 being brought to Illinois for use here and is taxable under
596	596	15 this Act, the "selling price" on which the tax is computed
597	597	16 shall be reduced by an amount that represents a reasonable
598	598	17 allowance for depreciation for the period of prior
599	599	18 out-of-state use.
600	600	19 (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
601	601	20 102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700,
602	602	21 Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23;
603	603	22 103-154, eff. 6-30-23.)
604	604	23 Section 15. The Service Occupation Tax Act is amended by
605	605	24 changing Section 3-10 as follows:
606	606
607	607
608	608
609	609
610	610
611	611	SB3364 - 16 - LRB103 37906 HLH 68038 b
612	612
613	613
614	614	SB3364- 17 -LRB103 37906 HLH 68038 b SB3364 - 17 - LRB103 37906 HLH 68038 b
615	615	SB3364 - 17 - LRB103 37906 HLH 68038 b
616	616	1 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
617	617	2 Sec. 3-10. Rate of tax. Unless otherwise provided in this
618	618	3 Section, the tax imposed by this Act is at the rate of 6.25% of
619	619	4 the "selling price", as defined in Section 2 of the Service Use
620	620	5 Tax Act, of the tangible personal property. For the purpose of
621	621	6 computing this tax, in no event shall the "selling price" be
622	622	7 less than the cost price to the serviceman of the tangible
623	623	8 personal property transferred. The selling price of each item
624	624	9 of tangible personal property transferred as an incident of a
625	625	10 sale of service may be shown as a distinct and separate item on
626	626	11 the serviceman's billing to the service customer. If the
627	627	12 selling price is not so shown, the selling price of the
628	628	13 tangible personal property is deemed to be 50% of the
629	629	14 serviceman's entire billing to the service customer. When,
630	630	15 however, a serviceman contracts to design, develop, and
631	631	16 produce special order machinery or equipment, the tax imposed
632	632	17 by this Act shall be based on the serviceman's cost price of
633	633	18 the tangible personal property transferred incident to the
634	634	19 completion of the contract.
635	635	20 Beginning on July 1, 2000 and through December 31, 2000,
636	636	21 with respect to motor fuel, as defined in Section 1.1 of the
637	637	22 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
638	638	23 the Use Tax Act, the tax is imposed at the rate of 1.25%.
639	639	24 Beginning 30 days after the effective date of this
640	640	25 amendatory Act of the 103rd General Assembly, the tax imposed
641	641	26 under this Act on the following items may not exceed the cents
642	642
643	643
644	644
645	645
646	646
647	647	SB3364 - 17 - LRB103 37906 HLH 68038 b
648	648
649	649
650	650	SB3364- 18 -LRB103 37906 HLH 68038 b SB3364 - 18 - LRB103 37906 HLH 68038 b
651	651	SB3364 - 18 - LRB103 37906 HLH 68038 b
652	652	1 per gallon rate established by the Department under subsection
653	653	2 (e) of Section 2d of the Retailers' Occupation Tax Act: motor
654	654	3 fuel, as defined in Section 1.1 of the Motor Fuel Tax Law;
655	655	4 gasohol, as defined in Section 3-40 of the Use Tax Act;
656	656	5 majority blended ethanol fuel; and biodiesel and biodiesel
657	657	6 blends. With respect to the tax imposed on biodiesel blends
658	658	7 and gasohol, the maximum cents per gallon rate shall include
659	659	8 the reduction allowed in subsection (e) of Section 2d of the
660	660	9 Retailers' Occupation Tax Act.
661	661	10 With respect to gasohol, as defined in the Use Tax Act, the
662	662	11 tax imposed by this Act shall apply to (i) 70% of the cost
663	663	12 price of property transferred as an incident to the sale of
664	664	13 service on or after January 1, 1990, and before July 1, 2003,
665	665	14 (ii) 80% of the selling price of property transferred as an
666	666	15 incident to the sale of service on or after July 1, 2003 and on
667	667	16 or before July 1, 2017, (iii) 100% of the selling price of
668	668	17 property transferred as an incident to the sale of service
669	669	18 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
670	670	19 the selling price of property transferred as an incident to
671	671	20 the sale of service on or after January 1, 2024 and on or
672	672	21 before December 31, 2028, and (v) 100% of the selling price of
673	673	22 property transferred as an incident to the sale of service
674	674	23 after December 31, 2028. If, at any time, however, the tax
675	675	24 under this Act on sales of gasohol, as defined in the Use Tax
676	676	25 Act, is imposed at the rate of 1.25%, then the tax imposed by
677	677	26 this Act applies to 100% of the proceeds of sales of gasohol
678	678
679	679
680	680
681	681
682	682
683	683	SB3364 - 18 - LRB103 37906 HLH 68038 b
684	684
685	685
686	686	SB3364- 19 -LRB103 37906 HLH 68038 b SB3364 - 19 - LRB103 37906 HLH 68038 b
687	687	SB3364 - 19 - LRB103 37906 HLH 68038 b
688	688	1 made during that time.
689	689	2 With respect to mid-range ethanol blends, as defined in
690	690	3 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
691	691	4 applies to (i) 80% of the selling price of property
692	692	5 transferred as an incident to the sale of service on or after
693	693	6 January 1, 2024 and on or before December 31, 2028 and (ii)
694	694	7 100% of the selling price of property transferred as an
695	695	8 incident to the sale of service after December 31, 2028. If, at
696	696	9 any time, however, the tax under this Act on sales of mid-range
697	697	10 ethanol blends is imposed at the rate of 1.25%, then the tax
698	698	11 imposed by this Act applies to 100% of the selling price of
699	699	12 mid-range ethanol blends transferred as an incident to the
700	700	13 sale of service during that time.
701	701	14 With respect to majority blended ethanol fuel, as defined
702	702	15 in the Use Tax Act, the tax imposed by this Act does not apply
703	703	16 to the selling price of property transferred as an incident to
704	704	17 the sale of service on or after July 1, 2003 and on or before
705	705	18 December 31, 2028 but applies to 100% of the selling price
706	706	19 thereafter.
707	707	20 With respect to biodiesel blends, as defined in the Use
708	708	21 Tax Act, with no less than 1% and no more than 10% biodiesel,
709	709	22 the tax imposed by this Act applies to (i) 80% of the selling
710	710	23 price of property transferred as an incident to the sale of
711	711	24 service on or after July 1, 2003 and on or before December 31,
712	712	25 2018 and (ii) 100% of the proceeds of the selling price after
713	713	26 December 31, 2018 and before January 1, 2024. On and after
714	714
715	715
716	716
717	717
718	718
719	719	SB3364 - 19 - LRB103 37906 HLH 68038 b
720	720
721	721
722	722	SB3364- 20 -LRB103 37906 HLH 68038 b SB3364 - 20 - LRB103 37906 HLH 68038 b
723	723	SB3364 - 20 - LRB103 37906 HLH 68038 b
724	724	1 January 1, 2024 and on or before December 31, 2030, the
725	725	2 taxation of biodiesel, renewable diesel, and biodiesel blends
726	726	3 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
727	727	4 at any time, however, the tax under this Act on sales of
728	728	5 biodiesel blends, as defined in the Use Tax Act, with no less
729	729	6 than 1% and no more than 10% biodiesel is imposed at the rate
730	730	7 of 1.25%, then the tax imposed by this Act applies to 100% of
731	731	8 the proceeds of sales of biodiesel blends with no less than 1%
732	732	9 and no more than 10% biodiesel made during that time.
733	733	10 With respect to biodiesel, as defined in the Use Tax Act,
734	734	11 and biodiesel blends, as defined in the Use Tax Act, with more
735	735	12 than 10% but no more than 99% biodiesel material, the tax
736	736	13 imposed by this Act does not apply to the proceeds of the
737	737	14 selling price of property transferred as an incident to the
738	738	15 sale of service on or after July 1, 2003 and on or before
739	739	16 December 31, 2023. On and after January 1, 2024 and on or
740	740	17 before December 31, 2030, the taxation of biodiesel, renewable
741	741	18 diesel, and biodiesel blends shall be as provided in Section
742	742	19 3-5.1 of the Use Tax Act.
743	743	20 At the election of any registered serviceman made for each
744	744	21 fiscal year, sales of service in which the aggregate annual
745	745	22 cost price of tangible personal property transferred as an
746	746	23 incident to the sales of service is less than 35%, or 75% in
747	747	24 the case of servicemen transferring prescription drugs or
748	748	25 servicemen engaged in graphic arts production, of the
749	749	26 aggregate annual total gross receipts from all sales of
750	750
751	751
752	752
753	753
754	754
755	755	SB3364 - 20 - LRB103 37906 HLH 68038 b
756	756
757	757
758	758	SB3364- 21 -LRB103 37906 HLH 68038 b SB3364 - 21 - LRB103 37906 HLH 68038 b
759	759	SB3364 - 21 - LRB103 37906 HLH 68038 b
760	760	1 service, the tax imposed by this Act shall be based on the
761	761	2 serviceman's cost price of the tangible personal property
762	762	3 transferred incident to the sale of those services.
763	763	4 Until July 1, 2022 and beginning again on July 1, 2023, the
764	764	5 tax shall be imposed at the rate of 1% on food prepared for
765	765	6 immediate consumption and transferred incident to a sale of
766	766	7 service subject to this Act or the Service Use Tax Act by an
767	767	8 entity licensed under the Hospital Licensing Act, the Nursing
768	768	9 Home Care Act, the Assisted Living and Shared Housing Act, the
769	769	10 ID/DD Community Care Act, the MC/DD Act, the Specialized
770	770	11 Mental Health Rehabilitation Act of 2013, or the Child Care
771	771	12 Act of 1969, or an entity that holds a permit issued pursuant
772	772	13 to the Life Care Facilities Act. Until July 1, 2022 and
773	773	14 beginning again on July 1, 2023, the tax shall also be imposed
774	774	15 at the rate of 1% on food for human consumption that is to be
775	775	16 consumed off the premises where it is sold (other than
776	776	17 alcoholic beverages, food consisting of or infused with adult
777	777	18 use cannabis, soft drinks, and food that has been prepared for
778	778	19 immediate consumption and is not otherwise included in this
779	779	20 paragraph).
780	780	21 Beginning on July 1, 2022 and until July 1, 2023, the tax
781	781	22 shall be imposed at the rate of 0% on food prepared for
782	782	23 immediate consumption and transferred incident to a sale of
783	783	24 service subject to this Act or the Service Use Tax Act by an
784	784	25 entity licensed under the Hospital Licensing Act, the Nursing
785	785	26 Home Care Act, the Assisted Living and Shared Housing Act, the
786	786
787	787
788	788
789	789
790	790
791	791	SB3364 - 21 - LRB103 37906 HLH 68038 b
792	792
793	793
794	794	SB3364- 22 -LRB103 37906 HLH 68038 b SB3364 - 22 - LRB103 37906 HLH 68038 b
795	795	SB3364 - 22 - LRB103 37906 HLH 68038 b
796	796	1 ID/DD Community Care Act, the MC/DD Act, the Specialized
797	797	2 Mental Health Rehabilitation Act of 2013, or the Child Care
798	798	3 Act of 1969, or an entity that holds a permit issued pursuant
799	799	4 to the Life Care Facilities Act. Beginning July 1, 2022 and
800	800	5 until July 1, 2023, the tax shall also be imposed at the rate
801	801	6 of 0% on food for human consumption that is to be consumed off
802	802	7 the premises where it is sold (other than alcoholic beverages,
803	803	8 food consisting of or infused with adult use cannabis, soft
804	804	9 drinks, and food that has been prepared for immediate
805	805	10 consumption and is not otherwise included in this paragraph).
806	806	11 The tax shall also be imposed at the rate of 1% on
807	807	12 prescription and nonprescription medicines, drugs, medical
808	808	13 appliances, products classified as Class III medical devices
809	809	14 by the United States Food and Drug Administration that are
810	810	15 used for cancer treatment pursuant to a prescription, as well
811	811	16 as any accessories and components related to those devices,
812	812	17 modifications to a motor vehicle for the purpose of rendering
813	813	18 it usable by a person with a disability, and insulin, blood
814	814	19 sugar testing materials, syringes, and needles used by human
815	815	20 diabetics. For the purposes of this Section, until September
816	816	21 1, 2009: the term "soft drinks" means any complete, finished,
817	817	22 ready-to-use, non-alcoholic drink, whether carbonated or not,
818	818	23 including, but not limited to, soda water, cola, fruit juice,
819	819	24 vegetable juice, carbonated water, and all other preparations
820	820	25 commonly known as soft drinks of whatever kind or description
821	821	26 that are contained in any closed or sealed can, carton, or
822	822
823	823
824	824
825	825
826	826
827	827	SB3364 - 22 - LRB103 37906 HLH 68038 b
828	828
829	829
830	830	SB3364- 23 -LRB103 37906 HLH 68038 b SB3364 - 23 - LRB103 37906 HLH 68038 b
831	831	SB3364 - 23 - LRB103 37906 HLH 68038 b
832	832	1 container, regardless of size; but "soft drinks" does not
833	833	2 include coffee, tea, non-carbonated water, infant formula,
834	834	3 milk or milk products as defined in the Grade A Pasteurized
835	835	4 Milk and Milk Products Act, or drinks containing 50% or more
836	836	5 natural fruit or vegetable juice.
837	837	6 Notwithstanding any other provisions of this Act,
838	838	7 beginning September 1, 2009, "soft drinks" means non-alcoholic
839	839	8 beverages that contain natural or artificial sweeteners. "Soft
840	840	9 drinks" does not include beverages that contain milk or milk
841	841	10 products, soy, rice or similar milk substitutes, or greater
842	842	11 than 50% of vegetable or fruit juice by volume.
843	843	12 Until August 1, 2009, and notwithstanding any other
844	844	13 provisions of this Act, "food for human consumption that is to
845	845	14 be consumed off the premises where it is sold" includes all
846	846	15 food sold through a vending machine, except soft drinks and
847	847	16 food products that are dispensed hot from a vending machine,
848	848	17 regardless of the location of the vending machine. Beginning
849	849	18 August 1, 2009, and notwithstanding any other provisions of
850	850	19 this Act, "food for human consumption that is to be consumed
851	851	20 off the premises where it is sold" includes all food sold
852	852	21 through a vending machine, except soft drinks, candy, and food
853	853	22 products that are dispensed hot from a vending machine,
854	854	23 regardless of the location of the vending machine.
855	855	24 Notwithstanding any other provisions of this Act,
856	856	25 beginning September 1, 2009, "food for human consumption that
857	857	26 is to be consumed off the premises where it is sold" does not
858	858
859	859
860	860
861	861
862	862
863	863	SB3364 - 23 - LRB103 37906 HLH 68038 b
864	864
865	865
866	866	SB3364- 24 -LRB103 37906 HLH 68038 b SB3364 - 24 - LRB103 37906 HLH 68038 b
867	867	SB3364 - 24 - LRB103 37906 HLH 68038 b
868	868	1 include candy. For purposes of this Section, "candy" means a
869	869	2 preparation of sugar, honey, or other natural or artificial
870	870	3 sweeteners in combination with chocolate, fruits, nuts or
871	871	4 other ingredients or flavorings in the form of bars, drops, or
872	872	5 pieces. "Candy" does not include any preparation that contains
873	873	6 flour or requires refrigeration.
874	874	7 Notwithstanding any other provisions of this Act,
875	875	8 beginning September 1, 2009, "nonprescription medicines and
876	876	9 drugs" does not include grooming and hygiene products. For
877	877	10 purposes of this Section, "grooming and hygiene products"
878	878	11 includes, but is not limited to, soaps and cleaning solutions,
879	879	12 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
880	880	13 lotions and screens, unless those products are available by
881	881	14 prescription only, regardless of whether the products meet the
882	882	15 definition of "over-the-counter-drugs". For the purposes of
883	883	16 this paragraph, "over-the-counter-drug" means a drug for human
884	884	17 use that contains a label that identifies the product as a drug
885	885	18 as required by 21 CFR 201.66. The "over-the-counter-drug"
886	886	19 label includes:
887	887	20 (A) a "Drug Facts" panel; or
888	888	21 (B) a statement of the "active ingredient(s)" with a
889	889	22 list of those ingredients contained in the compound,
890	890	23 substance or preparation.
891	891	24 Beginning on January 1, 2014 (the effective date of Public
892	892	25 Act 98-122), "prescription and nonprescription medicines and
893	893	26 drugs" includes medical cannabis purchased from a registered
894	894
895	895
896	896
897	897
898	898
899	899	SB3364 - 24 - LRB103 37906 HLH 68038 b
900	900
901	901
902	902	SB3364- 25 -LRB103 37906 HLH 68038 b SB3364 - 25 - LRB103 37906 HLH 68038 b
903	903	SB3364 - 25 - LRB103 37906 HLH 68038 b
904	904	1 dispensing organization under the Compassionate Use of Medical
905	905	2 Cannabis Program Act.
906	906	3 As used in this Section, "adult use cannabis" means
907	907	4 cannabis subject to tax under the Cannabis Cultivation
908	908	5 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
909	909	6 and does not include cannabis subject to tax under the
910	910	7 Compassionate Use of Medical Cannabis Program Act.
911	911	8 (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
912	912	9 102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700,
913	913	10 Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23;
914	914	11 103-154, eff. 6-30-23.)
915	915	12 Section 20. The Retailers' Occupation Tax Act is amended
916	916	13 by changing Sections 2-10 and 2d as follows:
917	917	14 (35 ILCS 120/2-10)
918	918	15 Sec. 2-10. Rate of tax. Unless otherwise provided in this
919	919	16 Section, the tax imposed by this Act is at the rate of 6.25% of
920	920	17 gross receipts from sales of tangible personal property made
921	921	18 in the course of business.
922	922	19 Beginning on July 1, 2000 and through December 31, 2000,
923	923	20 with respect to motor fuel, as defined in Section 1.1 of the
924	924	21 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
925	925	22 the Use Tax Act, the tax is imposed at the rate of 1.25%.
926	926	23 Beginning 30 days after the effective date of this
927	927	24 amendatory Act of the 103rd General Assembly, the tax imposed
928	928
929	929
930	930
931	931
932	932
933	933	SB3364 - 25 - LRB103 37906 HLH 68038 b
934	934
935	935
936	936	SB3364- 26 -LRB103 37906 HLH 68038 b SB3364 - 26 - LRB103 37906 HLH 68038 b
937	937	SB3364 - 26 - LRB103 37906 HLH 68038 b
938	938	1 under this Act on the following items may not exceed the cents
939	939	2 per gallon rate established by the Department under subsection
940	940	3 (e) of Section 2d of this Act: motor fuel, as defined in
941	941	4 Section 1.1 of the Motor Fuel Tax Law; gasohol, as defined in
942	942	5 Section 3-40 of the Use Tax Act; majority blended ethanol
943	943	6 fuel; and biodiesel and biodiesel blends. With respect to the
944	944	7 tax imposed on biodiesel blends and gasohol, the maximum cents
945	945	8 per gallon rate shall include the reduction allowed in
946	946	9 subsection (e) of Section 2d.
947	947	10 Beginning on August 6, 2010 through August 15, 2010, and
948	948	11 beginning again on August 5, 2022 through August 14, 2022,
949	949	12 with respect to sales tax holiday items as defined in Section
950	950	13 2-8 of this Act, the tax is imposed at the rate of 1.25%.
951	951	14 Within 14 days after July 1, 2000 (the effective date of
952	952	15 Public Act 91-872), each retailer of motor fuel and gasohol
953	953	16 shall cause the following notice to be posted in a prominently
954	954	17 visible place on each retail dispensing device that is used to
955	955	18 dispense motor fuel or gasohol in the State of Illinois: "As of
956	956	19 July 1, 2000, the State of Illinois has eliminated the State's
957	957	20 share of sales tax on motor fuel and gasohol through December
958	958	21 31, 2000. The price on this pump should reflect the
959	959	22 elimination of the tax." The notice shall be printed in bold
960	960	23 print on a sign that is no smaller than 4 inches by 8 inches.
961	961	24 The sign shall be clearly visible to customers. Any retailer
962	962	25 who fails to post or maintain a required sign through December
963	963	26 31, 2000 is guilty of a petty offense for which the fine shall
964	964
965	965
966	966
967	967
968	968
969	969	SB3364 - 26 - LRB103 37906 HLH 68038 b
970	970
971	971
972	972	SB3364- 27 -LRB103 37906 HLH 68038 b SB3364 - 27 - LRB103 37906 HLH 68038 b
973	973	SB3364 - 27 - LRB103 37906 HLH 68038 b
974	974	1 be $500 per day per each retail premises where a violation
975	975	2 occurs.
976	976	3 With respect to gasohol, as defined in the Use Tax Act, the
977	977	4 tax imposed by this Act applies to (i) 70% of the proceeds of
978	978	5 sales made on or after January 1, 1990, and before July 1,
979	979	6 2003, (ii) 80% of the proceeds of sales made on or after July
980	980	7 1, 2003 and on or before July 1, 2017, (iii) 100% of the
981	981	8 proceeds of sales made after July 1, 2017 and prior to January
982	982	9 1, 2024, (iv) 90% of the proceeds of sales made on or after
983	983	10 January 1, 2024 and on or before December 31, 2028, and (v)
984	984	11 100% of the proceeds of sales made after December 31, 2028. If,
985	985	12 at any time, however, the tax under this Act on sales of
986	986	13 gasohol, as defined in the Use Tax Act, is imposed at the rate
987	987	14 of 1.25%, then the tax imposed by this Act applies to 100% of
988	988	15 the proceeds of sales of gasohol made during that time.
989	989	16 With respect to mid-range ethanol blends, as defined in
990	990	17 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
991	991	18 applies to (i) 80% of the proceeds of sales made on or after
992	992	19 January 1, 2024 and on or before December 31, 2028 and (ii)
993	993	20 100% of the proceeds of sales made after December 31, 2028. If,
994	994	21 at any time, however, the tax under this Act on sales of
995	995	22 mid-range ethanol blends is imposed at the rate of 1.25%, then
996	996	23 the tax imposed by this Act applies to 100% of the proceeds of
997	997	24 sales of mid-range ethanol blends made during that time.
998	998	25 With respect to majority blended ethanol fuel, as defined
999	999	26 in the Use Tax Act, the tax imposed by this Act does not apply
1000	1000
1001	1001
1002	1002
1003	1003
1004	1004
1005	1005	SB3364 - 27 - LRB103 37906 HLH 68038 b
1006	1006
1007	1007
1008	1008	SB3364- 28 -LRB103 37906 HLH 68038 b SB3364 - 28 - LRB103 37906 HLH 68038 b
1009	1009	SB3364 - 28 - LRB103 37906 HLH 68038 b
1010	1010	1 to the proceeds of sales made on or after July 1, 2003 and on
1011	1011	2 or before December 31, 2028 but applies to 100% of the proceeds
1012	1012	3 of sales made thereafter.
1013	1013	4 With respect to biodiesel blends, as defined in the Use
1014	1014	5 Tax Act, with no less than 1% and no more than 10% biodiesel,
1015	1015	6 the tax imposed by this Act applies to (i) 80% of the proceeds
1016	1016	7 of sales made on or after July 1, 2003 and on or before
1017	1017	8 December 31, 2018 and (ii) 100% of the proceeds of sales made
1018	1018	9 after December 31, 2018 and before January 1, 2024. On and
1019	1019	10 after January 1, 2024 and on or before December 31, 2030, the
1020	1020	11 taxation of biodiesel, renewable diesel, and biodiesel blends
1021	1021	12 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
1022	1022	13 at any time, however, the tax under this Act on sales of
1023	1023	14 biodiesel blends, as defined in the Use Tax Act, with no less
1024	1024	15 than 1% and no more than 10% biodiesel is imposed at the rate
1025	1025	16 of 1.25%, then the tax imposed by this Act applies to 100% of
1026	1026	17 the proceeds of sales of biodiesel blends with no less than 1%
1027	1027	18 and no more than 10% biodiesel made during that time.
1028	1028	19 With respect to biodiesel, as defined in the Use Tax Act,
1029	1029	20 and biodiesel blends, as defined in the Use Tax Act, with more
1030	1030	21 than 10% but no more than 99% biodiesel, the tax imposed by
1031	1031	22 this Act does not apply to the proceeds of sales made on or
1032	1032	23 after July 1, 2003 and on or before December 31, 2023. On and
1033	1033	24 after January 1, 2024 and on or before December 31, 2030, the
1034	1034	25 taxation of biodiesel, renewable diesel, and biodiesel blends
1035	1035	26 shall be as provided in Section 3-5.1 of the Use Tax Act.
1036	1036
1037	1037
1038	1038
1039	1039
1040	1040
1041	1041	SB3364 - 28 - LRB103 37906 HLH 68038 b
1042	1042
1043	1043
1044	1044	SB3364- 29 -LRB103 37906 HLH 68038 b SB3364 - 29 - LRB103 37906 HLH 68038 b
1045	1045	SB3364 - 29 - LRB103 37906 HLH 68038 b
1046	1046	1 Until July 1, 2022 and beginning again on July 1, 2023,
1047	1047	2 with respect to food for human consumption that is to be
1048	1048	3 consumed off the premises where it is sold (other than
1049	1049	4 alcoholic beverages, food consisting of or infused with adult
1050	1050	5 use cannabis, soft drinks, and food that has been prepared for
1051	1051	6 immediate consumption), the tax is imposed at the rate of 1%.
1052	1052	7 Beginning July 1, 2022 and until July 1, 2023, with respect to
1053	1053	8 food for human consumption that is to be consumed off the
1054	1054	9 premises where it is sold (other than alcoholic beverages,
1055	1055	10 food consisting of or infused with adult use cannabis, soft
1056	1056	11 drinks, and food that has been prepared for immediate
1057	1057	12 consumption), the tax is imposed at the rate of 0%.
1058	1058	13 With respect to prescription and nonprescription
1059	1059	14 medicines, drugs, medical appliances, products classified as
1060	1060	15 Class III medical devices by the United States Food and Drug
1061	1061	16 Administration that are used for cancer treatment pursuant to
1062	1062	17 a prescription, as well as any accessories and components
1063	1063	18 related to those devices, modifications to a motor vehicle for
1064	1064	19 the purpose of rendering it usable by a person with a
1065	1065	20 disability, and insulin, blood sugar testing materials,
1066	1066	21 syringes, and needles used by human diabetics, the tax is
1067	1067	22 imposed at the rate of 1%. For the purposes of this Section,
1068	1068	23 until September 1, 2009: the term "soft drinks" means any
1069	1069	24 complete, finished, ready-to-use, non-alcoholic drink, whether
1070	1070	25 carbonated or not, including, but not limited to, soda water,
1071	1071	26 cola, fruit juice, vegetable juice, carbonated water, and all
1072	1072
1073	1073
1074	1074
1075	1075
1076	1076
1077	1077	SB3364 - 29 - LRB103 37906 HLH 68038 b
1078	1078
1079	1079
1080	1080	SB3364- 30 -LRB103 37906 HLH 68038 b SB3364 - 30 - LRB103 37906 HLH 68038 b
1081	1081	SB3364 - 30 - LRB103 37906 HLH 68038 b
1082	1082	1 other preparations commonly known as soft drinks of whatever
1083	1083	2 kind or description that are contained in any closed or sealed
1084	1084	3 bottle, can, carton, or container, regardless of size; but
1085	1085	4 "soft drinks" does not include coffee, tea, non-carbonated
1086	1086	5 water, infant formula, milk or milk products as defined in the
1087	1087	6 Grade A Pasteurized Milk and Milk Products Act, or drinks
1088	1088	7 containing 50% or more natural fruit or vegetable juice.
1089	1089	8 Notwithstanding any other provisions of this Act,
1090	1090	9 beginning September 1, 2009, "soft drinks" means non-alcoholic
1091	1091	10 beverages that contain natural or artificial sweeteners. "Soft
1092	1092	11 drinks" does not include beverages that contain milk or milk
1093	1093	12 products, soy, rice or similar milk substitutes, or greater
1094	1094	13 than 50% of vegetable or fruit juice by volume.
1095	1095	14 Until August 1, 2009, and notwithstanding any other
1096	1096	15 provisions of this Act, "food for human consumption that is to
1097	1097	16 be consumed off the premises where it is sold" includes all
1098	1098	17 food sold through a vending machine, except soft drinks and
1099	1099	18 food products that are dispensed hot from a vending machine,
1100	1100	19 regardless of the location of the vending machine. Beginning
1101	1101	20 August 1, 2009, and notwithstanding any other provisions of
1102	1102	21 this Act, "food for human consumption that is to be consumed
1103	1103	22 off the premises where it is sold" includes all food sold
1104	1104	23 through a vending machine, except soft drinks, candy, and food
1105	1105	24 products that are dispensed hot from a vending machine,
1106	1106	25 regardless of the location of the vending machine.
1107	1107	26 Notwithstanding any other provisions of this Act,
1108	1108
1109	1109
1110	1110
1111	1111
1112	1112
1113	1113	SB3364 - 30 - LRB103 37906 HLH 68038 b
1114	1114
1115	1115
1116	1116	SB3364- 31 -LRB103 37906 HLH 68038 b SB3364 - 31 - LRB103 37906 HLH 68038 b
1117	1117	SB3364 - 31 - LRB103 37906 HLH 68038 b
1118	1118	1 beginning September 1, 2009, "food for human consumption that
1119	1119	2 is to be consumed off the premises where it is sold" does not
1120	1120	3 include candy. For purposes of this Section, "candy" means a
1121	1121	4 preparation of sugar, honey, or other natural or artificial
1122	1122	5 sweeteners in combination with chocolate, fruits, nuts or
1123	1123	6 other ingredients or flavorings in the form of bars, drops, or
1124	1124	7 pieces. "Candy" does not include any preparation that contains
1125	1125	8 flour or requires refrigeration.
1126	1126	9 Notwithstanding any other provisions of this Act,
1127	1127	10 beginning September 1, 2009, "nonprescription medicines and
1128	1128	11 drugs" does not include grooming and hygiene products. For
1129	1129	12 purposes of this Section, "grooming and hygiene products"
1130	1130	13 includes, but is not limited to, soaps and cleaning solutions,
1131	1131	14 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
1132	1132	15 lotions and screens, unless those products are available by
1133	1133	16 prescription only, regardless of whether the products meet the
1134	1134	17 definition of "over-the-counter-drugs". For the purposes of
1135	1135	18 this paragraph, "over-the-counter-drug" means a drug for human
1136	1136	19 use that contains a label that identifies the product as a drug
1137	1137	20 as required by 21 CFR 201.66. The "over-the-counter-drug"
1138	1138	21 label includes:
1139	1139	22 (A) a "Drug Facts" panel; or
1140	1140	23 (B) a statement of the "active ingredient(s)" with a
1141	1141	24 list of those ingredients contained in the compound,
1142	1142	25 substance or preparation.
1143	1143	26 Beginning on January 1, 2014 (the effective date of Public
1144	1144
1145	1145
1146	1146
1147	1147
1148	1148
1149	1149	SB3364 - 31 - LRB103 37906 HLH 68038 b
1150	1150
1151	1151
1152	1152	SB3364- 32 -LRB103 37906 HLH 68038 b SB3364 - 32 - LRB103 37906 HLH 68038 b
1153	1153	SB3364 - 32 - LRB103 37906 HLH 68038 b
1154	1154	1 Act 98-122), "prescription and nonprescription medicines and
1155	1155	2 drugs" includes medical cannabis purchased from a registered
1156	1156	3 dispensing organization under the Compassionate Use of Medical
1157	1157	4 Cannabis Program Act.
1158	1158	5 As used in this Section, "adult use cannabis" means
1159	1159	6 cannabis subject to tax under the Cannabis Cultivation
1160	1160	7 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
1161	1161	8 and does not include cannabis subject to tax under the
1162	1162	9 Compassionate Use of Medical Cannabis Program Act.
1163	1163	10 (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
1164	1164	11 Section 20-20, eff. 4-19-22; 102-700, Article 60, Section
1165	1165	12 60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff.
1166	1166	13 4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.)
1167	1167	14 (35 ILCS 120/2d) (from Ch. 120, par. 441d)
1168	1168	15 Sec. 2d. Tax prepayment by motor fuel retailer.
1169	1169	16 (a) Any person engaged in the business of selling motor
1170	1170	17 fuel at retail, as defined in the Motor Fuel Tax Law, and who
1171	1171	18 is not a licensed distributor or supplier, as defined in the
1172	1172	19 Motor Fuel Tax Law, shall prepay to his or her distributor,
1173	1173	20 supplier, or other reseller of motor fuel a portion of the tax
1174	1174	21 imposed by this Act if the distributor, supplier, or other
1175	1175	22 reseller of motor fuel is registered under Section 2a or
1176	1176	23 Section 2c of this Act. The prepayment requirement provided
1177	1177	24 for in this Section does not apply to liquid propane gas.
1178	1178	25 (b) Beginning on July 1, 2000 and through December 31,
1179	1179
1180	1180
1181	1181
1182	1182
1183	1183
1184	1184	SB3364 - 32 - LRB103 37906 HLH 68038 b
1185	1185
1186	1186
1187	1187	SB3364- 33 -LRB103 37906 HLH 68038 b SB3364 - 33 - LRB103 37906 HLH 68038 b
1188	1188	SB3364 - 33 - LRB103 37906 HLH 68038 b
1189	1189	1 2000, the Retailers' Occupation Tax paid to the distributor,
1190	1190	2 supplier, or other reseller shall be an amount equal to $0.01
1191	1191	3 per gallon of the motor fuel, except gasohol as defined in
1192	1192	4 Section 2-10 of this Act which shall be an amount equal to
1193	1193	5 $0.01 per gallon, purchased from the distributor, supplier, or
1194	1194	6 other reseller.
1195	1195	7 (c) Before July 1, 2000 and then beginning on January 1,
1196	1196	8 2001 and through June 30, 2003, the Retailers' Occupation Tax
1197	1197	9 paid to the distributor, supplier, or other reseller shall be
1198	1198	10 an amount equal to $0.04 per gallon of the motor fuel, except
1199	1199	11 gasohol as defined in Section 2-10 of this Act which shall be
1200	1200	12 an amount equal to $0.03 per gallon, purchased from the
1201	1201	13 distributor, supplier, or other reseller.
1202	1202	14 (d) Beginning July 1, 2003 and through December 31, 2010,
1203	1203	15 the Retailers' Occupation Tax paid to the distributor,
1204	1204	16 supplier, or other reseller shall be an amount equal to $0.06
1205	1205	17 per gallon of the motor fuel, except gasohol as defined in
1206	1206	18 Section 2-10 of this Act which shall be an amount equal to
1207	1207	19 $0.05 per gallon, purchased from the distributor, supplier, or
1208	1208	20 other reseller.
1209	1209	21 (e) Beginning on January 1, 2011 and thereafter, the
1210	1210	22 Retailers' Occupation Tax paid to the distributor, supplier,
1211	1211	23 or other reseller shall be at the rate established by the
1212	1212	24 Department under this subsection. The rate shall be
1213	1213	25 established by the Department on January 1 and July 1 of each
1214	1214	26 year using the average selling price, as defined in Section 1
1215	1215
1216	1216
1217	1217
1218	1218
1219	1219
1220	1220	SB3364 - 33 - LRB103 37906 HLH 68038 b
1221	1221
1222	1222
1223	1223	SB3364- 34 -LRB103 37906 HLH 68038 b SB3364 - 34 - LRB103 37906 HLH 68038 b
1224	1224	SB3364 - 34 - LRB103 37906 HLH 68038 b
1225	1225	1 of this Act, per gallon of motor fuel sold in the State during
1226	1226	2 the previous 6 months and multiplying that amount by 6.25% to
1227	1227	3 determine the cents per gallon rate. Beginning 30 days after
1228	1228	4 the effective date of this amendatory Act of the 103rd General
1229	1229	5 Assembly, the cents per gallon rate established by the
1230	1230	6 Department for motor fuel under this subsection may not exceed
1231	1231	7 $0.18 per gallon. Beginning on January 1, 2024 and through
1232	1232	8 December 31, 2028, in the case of gasohol, as defined in
1233	1233	9 Section 3-40 of the Use Tax Act, the rate shall be 90% of the
1234	1234	10 rate established by the Department under this subsection for
1235	1235	11 motor fuel. Beginning on January 1, 2024 and through December
1236	1236	12 31, 2028, in the case of mid-range ethanol blends, as defined
1237	1237	13 in Section 3-44.3 of the Use Tax Act, the rate shall be 80% of
1238	1238	14 the rate established by the Department under this subsection
1239	1239	15 for motor fuel. The Department shall provide persons subject
1240	1240	16 to this Section notice of the rate established under this
1241	1241	17 subsection at least 20 days prior to each January 1 and July 1.
1242	1242	18 The Department shall provide persons subject to this Section
1243	1243	19 notice of the rate change required by this amendatory Act of
1244	1244	20 the 103rd General Assembly at least 20 days prior to the date
1245	1245	21 on which that change takes effect. Publication of the
1246	1246	22 established rate on the Department's internet website shall
1247	1247	23 constitute sufficient notice under this Section. The
1248	1248	24 Department may use data derived from independent surveys
1249	1249	25 conducted or accumulated by third parties to determine the
1250	1250	26 average selling price per gallon of motor fuel sold in the
1251	1251
1252	1252
1253	1253
1254	1254
1255	1255
1256	1256	SB3364 - 34 - LRB103 37906 HLH 68038 b
1257	1257
1258	1258
1259	1259	SB3364- 35 -LRB103 37906 HLH 68038 b SB3364 - 35 - LRB103 37906 HLH 68038 b
1260	1260	SB3364 - 35 - LRB103 37906 HLH 68038 b
1261	1261	1 State.
1262	1262	2 (f) Any person engaged in the business of selling motor
1263	1263	3 fuel at retail shall be entitled to a credit against tax due
1264	1264	4 under this Act in an amount equal to the tax paid to the
1265	1265	5 distributor, supplier, or other reseller.
1266	1266	6 (g) Every distributor, supplier, or other reseller
1267	1267	7 registered as provided in Section 2a or Section 2c of this Act
1268	1268	8 shall remit the prepaid tax on all motor fuel that is due from
1269	1269	9 any person engaged in the business of selling at retail motor
1270	1270	10 fuel with the returns filed under Section 2f or Section 3 of
1271	1271	11 this Act, but the vendors discount provided in Section 3 shall
1272	1272	12 not apply to the amount of prepaid tax that is remitted. Any
1273	1273	13 distributor or supplier who fails to properly collect and
1274	1274	14 remit the tax shall be liable for the tax. For purposes of this
1275	1275	15 Section, the prepaid tax is due on invoiced gallons sold
1276	1276	16 during a month by the 20th day of the following month.
1277	1277	17 (Source: P.A. 103-9, eff. 6-7-23.)
1278	1278
1279	1279
1280	1280
1281	1281
1282	1282
1283	1283	SB3364 - 35 - LRB103 37906 HLH 68038 b