Illinois 2025-2026 Regular Session

Illinois House Bill HB3179 Compare Versions

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

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3179 Introduced , by Rep. Ryan Spain SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-10 from Ch. 120, par. 439.33-1035 ILCS 110/3-10 from Ch. 120, par. 439.33-1035 ILCS 115/3-10 from Ch. 120, par. 439.103-1035 ILCS 120/2-10 from Ch. 120, par. 441-10 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Reduces the rate of tax on diapers and baby wipes to 1% (currently, 6.25%). Makes various formatting changes. LRB104 10134 HLH 20206 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3179 Introduced , by Rep. Ryan Spain SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-10 from Ch. 120, par. 439.33-1035 ILCS 110/3-10 from Ch. 120, par. 439.33-1035 ILCS 115/3-10 from Ch. 120, par. 439.103-1035 ILCS 120/2-10 from Ch. 120, par. 441-10 35 ILCS 105/3-10 from Ch. 120, par. 439.33-10 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 from Ch. 120, par. 441-10 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Reduces the rate of tax on diapers and baby wipes to 1% (currently, 6.25%). Makes various formatting changes. LRB104 10134 HLH 20206 b LRB104 10134 HLH 20206 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3179 Introduced , by Rep. Ryan Spain SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 105/3-10 from Ch. 120, par. 439.33-1035 ILCS 110/3-10 from Ch. 120, par. 439.33-1035 ILCS 115/3-10 from Ch. 120, par. 439.103-1035 ILCS 120/2-10 from Ch. 120, par. 441-10 35 ILCS 105/3-10 from Ch. 120, par. 439.33-10 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 from Ch. 120, par. 441-10
4	4	35 ILCS 105/3-10 from Ch. 120, par. 439.33-10
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 from Ch. 120, par. 441-10
8	8	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Reduces the rate of tax on diapers and baby wipes to 1% (currently, 6.25%). Makes various formatting changes.
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11	11	A BILL FOR
12	12	HB3179LRB104 10134 HLH 20206 b HB3179 LRB104 10134 HLH 20206 b
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14	14	1 AN ACT concerning revenue.
15	15	2 Be it enacted by the People of the State of Illinois,
16	16	3 represented in the General Assembly:
17	17	4 Section 5. The Use Tax Act is amended by changing Section
18	18	5 3-10 as follows:
19	19	6 (35 ILCS 105/3-10) from Ch. 120, par. 439.33-10
20	20	7 Sec. 3-10. Rate of tax. Unless otherwise provided in this
21	21	8 Section, the tax imposed by this Act is at the rate of 6.25% of
22	22	9 either the selling price or the fair market value, if any, of
23	23	10 the tangible personal property, which, on and after January 1,
24	24	11 2025, includes leases of tangible personal property. In all
25	25	12 cases where property functionally used or consumed is the same
26	26	13 as the property that was purchased at retail, then the tax is
27	27	14 imposed on the selling price of the property. In all cases
28	28	15 where property functionally used or consumed is a by-product
29	29	16 or waste product that has been refined, manufactured, or
30	30	17 produced from property purchased at retail, then the tax is
31	31	18 imposed on the lower of the fair market value, if any, of the
32	32	19 specific property so used in this State or on the selling price
33	33	20 of the property purchased at retail. For purposes of this
34	34	21 Section "fair market value" means the price at which property
35	35	22 would change hands between a willing buyer and a willing
36	36	23 seller, neither being under any compulsion to buy or sell and
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40	40	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3179 Introduced , by Rep. Ryan Spain SYNOPSIS AS INTRODUCED:
41	41	35 ILCS 105/3-10 from Ch. 120, par. 439.33-1035 ILCS 110/3-10 from Ch. 120, par. 439.33-1035 ILCS 115/3-10 from Ch. 120, par. 439.103-1035 ILCS 120/2-10 from Ch. 120, par. 441-10 35 ILCS 105/3-10 from Ch. 120, par. 439.33-10 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 from Ch. 120, par. 441-10
42	42	35 ILCS 105/3-10 from Ch. 120, par. 439.33-10
43	43	35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
44	44	35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
45	45	35 ILCS 120/2-10 from Ch. 120, par. 441-10
46	46	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Reduces the rate of tax on diapers and baby wipes to 1% (currently, 6.25%). Makes various formatting changes.
47	47	LRB104 10134 HLH 20206 b LRB104 10134 HLH 20206 b
48	48	LRB104 10134 HLH 20206 b
49	49	A BILL FOR
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55	55	35 ILCS 105/3-10 from Ch. 120, par. 439.33-10
56	56	35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
57	57	35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
58	58	35 ILCS 120/2-10 from Ch. 120, par. 441-10
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77	77	1 both having reasonable knowledge of the relevant facts. The
78	78	2 fair market value shall be established by Illinois sales by
79	79	3 the taxpayer of the same property as that functionally used or
80	80	4 consumed, or if there are no such sales by the taxpayer, then
81	81	5 comparable sales or purchases of property of like kind and
82	82	6 character in Illinois.
83	83	7 Beginning on July 1, 2000 and through December 31, 2000,
84	84	8 with respect to motor fuel, as defined in Section 1.1 of the
85	85	9 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
86	86	10 the Use Tax Act, the tax is imposed at the rate of 1.25%.
87	87	11 Beginning on August 6, 2010 through August 15, 2010, and
88	88	12 beginning again on August 5, 2022 through August 14, 2022,
89	89	13 with respect to sales tax holiday items as defined in Section
90	90	14 3-6 of this Act, the tax is imposed at the rate of 1.25%.
91	91	15 With respect to gasohol, the tax imposed by this Act
92	92	16 applies to (i) 70% of the proceeds of sales made on or after
93	93	17 January 1, 1990, and before July 1, 2003, (ii) 80% of the
94	94	18 proceeds of sales made on or after July 1, 2003 and on or
95	95	19 before July 1, 2017, (iii) 100% of the proceeds of sales made
96	96	20 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
97	97	21 the proceeds of sales made on or after January 1, 2024 and on
98	98	22 or before December 31, 2028, and (v) 100% of the proceeds of
99	99	23 sales made after December 31, 2028. If, at any time, however,
100	100	24 the tax under this Act on sales of gasohol is imposed at the
101	101	25 rate of 1.25%, then the tax imposed by this Act applies to 100%
102	102	26 of the proceeds of sales of gasohol made during that time.
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113	113	1 With respect to mid-range ethanol blends, the tax imposed
114	114	2 by this Act applies to (i) 80% of the proceeds of sales made on
115	115	3 or after January 1, 2024 and on or before December 31, 2028 and
116	116	4 (ii) 100% of the proceeds of sales made thereafter. If, at any
117	117	5 time, however, the tax under this Act on sales of mid-range
118	118	6 ethanol blends is imposed at the rate of 1.25%, then the tax
119	119	7 imposed by this Act applies to 100% of the proceeds of sales of
120	120	8 mid-range ethanol blends made during that time.
121	121	9 With respect to majority blended ethanol fuel, the tax
122	122	10 imposed by this Act does not apply to the proceeds of sales
123	123	11 made on or after July 1, 2003 and on or before December 31,
124	124	12 2028 but applies to 100% of the proceeds of sales made
125	125	13 thereafter.
126	126	14 With respect to biodiesel blends with no less than 1% and
127	127	15 no more than 10% biodiesel, the tax imposed by this Act applies
128	128	16 to (i) 80% of the proceeds of sales made on or after July 1,
129	129	17 2003 and on or before December 31, 2018 and (ii) 100% of the
130	130	18 proceeds of sales made after December 31, 2018 and before
131	131	19 January 1, 2024. On and after January 1, 2024 and on or before
132	132	20 December 31, 2030, the taxation of biodiesel, renewable
133	133	21 diesel, and biodiesel blends shall be as provided in Section
134	134	22 3-5.1. If, at any time, however, the tax under this Act on
135	135	23 sales of biodiesel blends with no less than 1% and no more than
136	136	24 10% biodiesel is imposed at the rate of 1.25%, then the tax
137	137	25 imposed by this Act applies to 100% of the proceeds of sales of
138	138	26 biodiesel blends with no less than 1% and no more than 10%
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149	149	1 biodiesel made during that time.
150	150	2 With respect to biodiesel and biodiesel blends with more
151	151	3 than 10% but no more than 99% biodiesel, the tax imposed by
152	152	4 this Act does not apply to the proceeds of sales made on or
153	153	5 after July 1, 2003 and on or before December 31, 2023. On and
154	154	6 after January 1, 2024 and on or before December 31, 2030, the
155	155	7 taxation of biodiesel, renewable diesel, and biodiesel blends
156	156	8 shall be as provided in Section 3-5.1.
157	157	9 With respect to the following items, the tax is imposed at
158	158	10 the rate of 1%:
159	159	11 (1) food for human consumption that is to be consumed
160	160	12 off the premises where it is sold (other than alcoholic
161	161	13 beverages, food consisting of or infused with adult use
162	162	14 cannabis, soft drinks, and food that has been prepared for
163	163	15 immediate consumption);
164	164	16 (2) prescription and nonprescription medicines, drugs,
165	165	17 and medical appliances;
166	166	18 (3) products classified as Class III medical devices
167	167	19 by the United States Food and Drug Administration that are
168	168	20 used for cancer treatment pursuant to a prescription, as
169	169	21 well as any accessories and components related to those
170	170	22 devices;
171	171	23 (4) modifications to a motor vehicle for the purpose
172	172	24 of rendering it usable by a person with a disability;
173	173	25 (5) insulin, blood sugar testing materials, syringes,
174	174	26 and needles used by human diabetics; and
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185	185	1 (6) diapers and baby wipes.
186	186	2 Until July 1, 2022 and from July 1, 2023 through December
187	187	3 31, 2025, with respect to food for human consumption that is to
188	188	4 be consumed off the premises where it is sold (other than
189	189	5 alcoholic beverages, food consisting of or infused with adult
190	190	6 use cannabis, soft drinks, and food that has been prepared for
191	191	7 immediate consumption), the tax is imposed at the rate of 1%.
192	192	8 Beginning on July 1, 2022 and until July 1, 2023, with respect
193	193	9 to food for human consumption that is to be consumed off the
194	194	10 premises where it is sold (other than alcoholic beverages,
195	195	11 food consisting of or infused with adult use cannabis, soft
196	196	12 drinks, and food that has been prepared for immediate
197	197	13 consumption), the tax is imposed at the rate of 0%. On and
198	198	14 after January 1, 2026, food for human consumption that is to be
199	199	15 consumed off the premises where it is sold (other than
200	200	16 alcoholic beverages, food consisting of or infused with adult
201	201	17 use cannabis, soft drinks, candy, and food that has been
202	202	18 prepared for immediate consumption) is exempt from the tax
203	203	19 imposed by this Act.
204	204	20 With respect to prescription and nonprescription
205	205	21 medicines, drugs, medical appliances, products classified as
206	206	22 Class III medical devices by the United States Food and Drug
207	207	23 Administration that are used for cancer treatment pursuant to
208	208	24 a prescription, as well as any accessories and components
209	209	25 related to those devices, modifications to a motor vehicle for
210	210	26 the purpose of rendering it usable by a person with a
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221	221	1 disability, and insulin, blood sugar testing materials,
222	222	2 syringes, and needles used by human diabetics, the tax is
223	223	3 imposed at the rate of 1%. For the purposes of this Section,
224	224	4 until September 1, 2009: the term "soft drinks" means any
225	225	5 complete, finished, ready-to-use, non-alcoholic drink, whether
226	226	6 carbonated or not, including, but not limited to, soda water,
227	227	7 cola, fruit juice, vegetable juice, carbonated water, and all
228	228	8 other preparations commonly known as soft drinks of whatever
229	229	9 kind or description that are contained in any closed or sealed
230	230	10 bottle, can, carton, or container, regardless of size; but
231	231	11 "soft drinks" does not include coffee, tea, non-carbonated
232	232	12 water, infant formula, milk or milk products as defined in the
233	233	13 Grade A Pasteurized Milk and Milk Products Act, or drinks
234	234	14 containing 50% or more natural fruit or vegetable juice.
235	235	15 Notwithstanding any other provisions of this Act,
236	236	16 beginning September 1, 2009, "soft drinks" means non-alcoholic
237	237	17 beverages that contain natural or artificial sweeteners. "Soft
238	238	18 drinks" does not include beverages that contain milk or milk
239	239	19 products, soy, rice or similar milk substitutes, or greater
240	240	20 than 50% of vegetable or fruit juice by volume.
241	241	21 Until August 1, 2009, and notwithstanding any other
242	242	22 provisions of this Act, "food for human consumption that is to
243	243	23 be consumed off the premises where it is sold" includes all
244	244	24 food sold through a vending machine, except soft drinks and
245	245	25 food products that are dispensed hot from a vending machine,
246	246	26 regardless of the location of the vending machine. Beginning
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257	257	1 August 1, 2009, and notwithstanding any other provisions of
258	258	2 this Act, "food for human consumption that is to be consumed
259	259	3 off the premises where it is sold" includes all food sold
260	260	4 through a vending machine, except soft drinks, candy, and food
261	261	5 products that are dispensed hot from a vending machine,
262	262	6 regardless of the location of the vending machine.
263	263	7 Notwithstanding any other provisions of this Act,
264	264	8 beginning September 1, 2009, "food for human consumption that
265	265	9 is to be consumed off the premises where it is sold" does not
266	266	10 include candy. For purposes of this Section, "candy" means a
267	267	11 preparation of sugar, honey, or other natural or artificial
268	268	12 sweeteners in combination with chocolate, fruits, nuts or
269	269	13 other ingredients or flavorings in the form of bars, drops, or
270	270	14 pieces. "Candy" does not include any preparation that contains
271	271	15 flour or requires refrigeration.
272	272	16 Notwithstanding any other provisions of this Act,
273	273	17 beginning September 1, 2009, "nonprescription medicines and
274	274	18 drugs" does not include grooming and hygiene products. For
275	275	19 purposes of this Section, "grooming and hygiene products"
276	276	20 includes, but is not limited to, soaps and cleaning solutions,
277	277	21 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
278	278	22 lotions and screens, unless those products are available by
279	279	23 prescription only, regardless of whether the products meet the
280	280	24 definition of "over-the-counter-drugs". For the purposes of
281	281	25 this paragraph, "over-the-counter-drug" means a drug for human
282	282	26 use that contains a label that identifies the product as a drug
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293	293	1 as required by 21 CFR 201.66. The "over-the-counter-drug"
294	294	2 label includes:
295	295	3 (A) a "Drug Facts" panel; or
296	296	4 (B) a statement of the "active ingredient(s)" with a
297	297	5 list of those ingredients contained in the compound,
298	298	6 substance or preparation.
299	299	7 Beginning on January 1, 2014 (the effective date of Public
300	300	8 Act 98-122), "prescription and nonprescription medicines and
301	301	9 drugs" includes medical cannabis purchased from a registered
302	302	10 dispensing organization under the Compassionate Use of Medical
303	303	11 Cannabis Program Act.
304	304	12 As used in this Section, "adult use cannabis" means
305	305	13 cannabis subject to tax under the Cannabis Cultivation
306	306	14 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
307	307	15 and does not include cannabis subject to tax under the
308	308	16 Compassionate Use of Medical Cannabis Program Act.
309	309	17 If the property that is purchased at retail from a
310	310	18 retailer is acquired outside Illinois and used outside
311	311	19 Illinois before being brought to Illinois for use here and is
312	312	20 taxable under this Act, the "selling price" on which the tax is
313	313	21 computed shall be reduced by an amount that represents a
314	314	22 reasonable allowance for depreciation for the period of prior
315	315	23 out-of-state use. No depreciation is allowed in cases where
316	316	24 the tax under this Act is imposed on lease receipts.
317	317	25 (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
318	318	26 Section 20-5, eff. 4-19-22; 102-700, Article 60, Section
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329	329	1 60-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff.
330	330	2 4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-592,
331	331	3 eff. 1-1-25; 103-781, eff. 8-5-24; revised 11-26-24.)
332	332	4 Section 10. The Service Use Tax Act is amended by changing
333	333	5 Section 3-10 as follows:
334	334	6 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
335	335	7 Sec. 3-10. Rate of tax. Unless otherwise provided in this
336	336	8 Section, the tax imposed by this Act is at the rate of 6.25% of
337	337	9 the selling price of tangible personal property transferred,
338	338	10 including, on and after January 1, 2025, transferred by lease,
339	339	11 as an incident to the sale of service, but, for the purpose of
340	340	12 computing this tax, in no event shall the selling price be less
341	341	13 than the cost price of the property to the serviceman.
342	342	14 Beginning on July 1, 2000 and through December 31, 2000,
343	343	15 with respect to motor fuel, as defined in Section 1.1 of the
344	344	16 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
345	345	17 the Use Tax Act, the tax is imposed at the rate of 1.25%.
346	346	18 With respect to gasohol, as defined in the Use Tax Act, the
347	347	19 tax imposed by this Act applies to (i) 70% of the selling price
348	348	20 of property transferred as an incident to the sale of service
349	349	21 on or after January 1, 1990, and before July 1, 2003, (ii) 80%
350	350	22 of the selling price of property transferred as an incident to
351	351	23 the sale of service on or after July 1, 2003 and on or before
352	352	24 July 1, 2017, (iii) 100% of the selling price of property
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363	363	1 transferred as an incident to the sale of service after July 1,
364	364	2 2017 and before January 1, 2024, (iv) 90% of the selling price
365	365	3 of property transferred as an incident to the sale of service
366	366	4 on or after January 1, 2024 and on or before December 31, 2028,
367	367	5 and (v) 100% of the selling price of property transferred as an
368	368	6 incident to the sale of service after December 31, 2028. If, at
369	369	7 any time, however, the tax under this Act on sales of gasohol,
370	370	8 as defined in the Use Tax Act, is imposed at the rate of 1.25%,
371	371	9 then the tax imposed by this Act applies to 100% of the
372	372	10 proceeds of sales of gasohol made during that time.
373	373	11 With respect to mid-range ethanol blends, as defined in
374	374	12 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
375	375	13 applies to (i) 80% of the selling price of property
376	376	14 transferred as an incident to the sale of service on or after
377	377	15 January 1, 2024 and on or before December 31, 2028 and (ii)
378	378	16 100% of the selling price of property transferred as an
379	379	17 incident to the sale of service after December 31, 2028. If, at
380	380	18 any time, however, the tax under this Act on sales of mid-range
381	381	19 ethanol blends is imposed at the rate of 1.25%, then the tax
382	382	20 imposed by this Act applies to 100% of the selling price of
383	383	21 mid-range ethanol blends transferred as an incident to the
384	384	22 sale of service during that time.
385	385	23 With respect to majority blended ethanol fuel, as defined
386	386	24 in the Use Tax Act, the tax imposed by this Act does not apply
387	387	25 to the selling price of property transferred as an incident to
388	388	26 the sale of service on or after July 1, 2003 and on or before
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399	399	1 December 31, 2028 but applies to 100% of the selling price
400	400	2 thereafter.
401	401	3 With respect to biodiesel blends, as defined in the Use
402	402	4 Tax Act, with no less than 1% and no more than 10% biodiesel,
403	403	5 the tax imposed by this Act applies to (i) 80% of the selling
404	404	6 price of property transferred as an incident to the sale of
405	405	7 service on or after July 1, 2003 and on or before December 31,
406	406	8 2018 and (ii) 100% of the proceeds of the selling price after
407	407	9 December 31, 2018 and before January 1, 2024. On and after
408	408	10 January 1, 2024 and on or before December 31, 2030, the
409	409	11 taxation of biodiesel, renewable diesel, and biodiesel blends
410	410	12 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
411	411	13 at any time, however, the tax under this Act on sales of
412	412	14 biodiesel blends, as defined in the Use Tax Act, with no less
413	413	15 than 1% and no more than 10% biodiesel is imposed at the rate
414	414	16 of 1.25%, then the tax imposed by this Act applies to 100% of
415	415	17 the proceeds of sales of biodiesel blends with no less than 1%
416	416	18 and no more than 10% biodiesel made during that time.
417	417	19 With respect to biodiesel, as defined in the Use Tax Act,
418	418	20 and biodiesel blends, as defined in the Use Tax Act, with more
419	419	21 than 10% but no more than 99% biodiesel, the tax imposed by
420	420	22 this Act does not apply to the proceeds of the selling price of
421	421	23 property transferred as an incident to the sale of service on
422	422	24 or after July 1, 2003 and on or before December 31, 2023. On
423	423	25 and after January 1, 2024 and on or before December 31, 2030,
424	424	26 the taxation of biodiesel, renewable diesel, and biodiesel
425	425
426	426
427	427
428	428
429	429
430	430	HB3179 - 11 - LRB104 10134 HLH 20206 b
431	431
432	432
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434	434	HB3179 - 12 - LRB104 10134 HLH 20206 b
435	435	1 blends shall be as provided in Section 3-5.1 of the Use Tax
436	436	2 Act.
437	437	3 At the election of any registered serviceman made for each
438	438	4 fiscal year, sales of service in which the aggregate annual
439	439	5 cost price of tangible personal property transferred as an
440	440	6 incident to the sales of service is less than 35%, or 75% in
441	441	7 the case of servicemen transferring prescription drugs or
442	442	8 servicemen engaged in graphic arts production, of the
443	443	9 aggregate annual total gross receipts from all sales of
444	444	10 service, the tax imposed by this Act shall be based on the
445	445	11 serviceman's cost price of the tangible personal property
446	446	12 transferred as an incident to the sale of those services.
447	447	13 Until July 1, 2022 and from July 1, 2023 through December
448	448	14 31, 2025, the tax shall be imposed at the rate of 1% on food
449	449	15 prepared for immediate consumption and transferred incident to
450	450	16 a sale of service subject to this Act or the Service Occupation
451	451	17 Tax Act by an entity licensed under the Hospital Licensing
452	452	18 Act, the Nursing Home Care Act, the Assisted Living and Shared
453	453	19 Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
454	454	20 Specialized Mental Health Rehabilitation Act of 2013, or the
455	455	21 Child Care Act of 1969, or an entity that holds a permit issued
456	456	22 pursuant to the Life Care Facilities Act. Until July 1, 2022
457	457	23 and from July 1, 2023 through December 31, 2025, the tax shall
458	458	24 also be imposed at the rate of 1% on food for human consumption
459	459	25 that is to be consumed off the premises where it is sold (other
460	460	26 than alcoholic beverages, food consisting of or infused with
461	461
462	462
463	463
464	464
465	465
466	466	HB3179 - 12 - LRB104 10134 HLH 20206 b
467	467
468	468
469	469	HB3179- 13 -LRB104 10134 HLH 20206 b HB3179 - 13 - LRB104 10134 HLH 20206 b
470	470	HB3179 - 13 - LRB104 10134 HLH 20206 b
471	471	1 adult use cannabis, soft drinks, and food that has been
472	472	2 prepared for immediate consumption and is not otherwise
473	473	3 included in this paragraph).
474	474	4 Beginning on July 1, 2022 and until July 1, 2023, the tax
475	475	5 shall be imposed at the rate of 0% on food prepared for
476	476	6 immediate consumption and transferred incident to a sale of
477	477	7 service subject to this Act or the Service Occupation Tax Act
478	478	8 by an entity licensed under the Hospital Licensing Act, the
479	479	9 Nursing Home Care Act, the Assisted Living and Shared Housing
480	480	10 Act, the ID/DD Community Care Act, the MC/DD Act, the
481	481	11 Specialized Mental Health Rehabilitation Act of 2013, or the
482	482	12 Child Care Act of 1969, or an entity that holds a permit issued
483	483	13 pursuant to the Life Care Facilities Act. Beginning on July 1,
484	484	14 2022 and until July 1, 2023, the tax shall also be imposed at
485	485	15 the rate of 0% on food for human consumption that is to be
486	486	16 consumed off the premises where it is sold (other than
487	487	17 alcoholic beverages, food consisting of or infused with adult
488	488	18 use cannabis, soft drinks, and food that has been prepared for
489	489	19 immediate consumption and is not otherwise included in this
490	490	20 paragraph).
491	491	21 On and an after January 1, 2026, food prepared for
492	492	22 immediate consumption and transferred incident to a sale of
493	493	23 service subject to this Act or the Service Occupation Tax Act
494	494	24 by an entity licensed under the Hospital Licensing Act, the
495	495	25 Nursing Home Care Act, the Assisted Living and Shared Housing
496	496	26 Act, the ID/DD Community Care Act, the MC/DD Act, the
497	497
498	498
499	499
500	500
501	501
502	502	HB3179 - 13 - LRB104 10134 HLH 20206 b
503	503
504	504
505	505	HB3179- 14 -LRB104 10134 HLH 20206 b HB3179 - 14 - LRB104 10134 HLH 20206 b
506	506	HB3179 - 14 - LRB104 10134 HLH 20206 b
507	507	1 Specialized Mental Health Rehabilitation Act of 2013, or the
508	508	2 Child Care Act of 1969, or by an entity that holds a permit
509	509	3 issued pursuant to the Life Care Facilities Act is exempt from
510	510	4 the tax under this Act. On and after January 1, 2026, food for
511	511	5 human consumption that is to be consumed off the premises
512	512	6 where it is sold (other than alcoholic beverages, food
513	513	7 consisting of or infused with adult use cannabis, soft drinks,
514	514	8 candy, and food that has been prepared for immediate
515	515	9 consumption and is not otherwise included in this paragraph)
516	516	10 is exempt from the tax under this Act.
517	517	11 With respect to the following items, the tax is imposed at
518	518	12 the rate of 1%:
519	519	13 (1) food prepared for immediate consumption and
520	520	14 transferred incident to a sale of service subject to this
521	521	15 Act or the Service Occupation Tax Act by an entity
522	522	16 licensed under the Hospital Licensing Act, the Nursing
523	523	17 Home Care Act, the Assisted Living and Shared Housing Act,
524	524	18 the ID/DD Community Care Act, the MC/DD Act, the
525	525	19 Specialized Mental Health Rehabilitation Act of 2013, or
526	526	20 the Child Care Act of 1969, or an entity that holds a
527	527	21 permit issued pursuant to the Life Care Facilities Act;
528	528	22 (2) food for human consumption that is to be consumed
529	529	23 off the premises where it is sold (other than alcoholic
530	530	24 beverages, food consisting of or infused with adult use
531	531	25 cannabis, soft drinks, and food that has been prepared for
532	532	26 immediate consumption);
533	533
534	534
535	535
536	536
537	537
538	538	HB3179 - 14 - LRB104 10134 HLH 20206 b
539	539
540	540
541	541	HB3179- 15 -LRB104 10134 HLH 20206 b HB3179 - 15 - LRB104 10134 HLH 20206 b
542	542	HB3179 - 15 - LRB104 10134 HLH 20206 b
543	543	1 (3) prescription and nonprescription medicines, drugs,
544	544	2 and medical appliances;
545	545	3 (4) products classified as Class III medical devices
546	546	4 by the United States Food and Drug Administration that are
547	547	5 used for cancer treatment pursuant to a prescription, as
548	548	6 well as any accessories and components related to those
549	549	7 devices;
550	550	8 (5) modifications to a motor vehicle for the purpose
551	551	9 of rendering it usable by a person with a disability;
552	552	10 (6) insulin, blood sugar testing materials, syringes,
553	553	11 and needles used by human diabetics; and
554	554	12 (7) diapers and baby wipes.
555	555	13 The tax shall be imposed at the rate of 1% on prescription
556	556	14 and nonprescription medicines, drugs, medical appliances,
557	557	15 products classified as Class III medical devices by the United
558	558	16 States Food and Drug Administration that are used for cancer
559	559	17 treatment pursuant to a prescription, as well as any
560	560	18 accessories and components related to those devices,
561	561	19 modifications to a motor vehicle for the purpose of rendering
562	562	20 it usable by a person with a disability, and insulin, blood
563	563	21 sugar testing materials, syringes, and needles used by human
564	564	22 diabetics. For the purposes of this Section, until September
565	565	23 1, 2009: the term "soft drinks" means any complete, finished,
566	566	24 ready-to-use, non-alcoholic drink, whether carbonated or not,
567	567	25 including, but not limited to, soda water, cola, fruit juice,
568	568	26 vegetable juice, carbonated water, and all other preparations
569	569
570	570
571	571
572	572
573	573
574	574	HB3179 - 15 - LRB104 10134 HLH 20206 b
575	575
576	576
577	577	HB3179- 16 -LRB104 10134 HLH 20206 b HB3179 - 16 - LRB104 10134 HLH 20206 b
578	578	HB3179 - 16 - LRB104 10134 HLH 20206 b
579	579	1 commonly known as soft drinks of whatever kind or description
580	580	2 that are contained in any closed or sealed bottle, can,
581	581	3 carton, or container, regardless of size; but "soft drinks"
582	582	4 does not include coffee, tea, non-carbonated water, infant
583	583	5 formula, milk or milk products as defined in the Grade A
584	584	6 Pasteurized Milk and Milk Products Act, or drinks containing
585	585	7 50% or more natural fruit or vegetable juice.
586	586	8 Notwithstanding any other provisions of this Act,
587	587	9 beginning September 1, 2009, "soft drinks" means non-alcoholic
588	588	10 beverages that contain natural or artificial sweeteners. "Soft
589	589	11 drinks" does not include beverages that contain milk or milk
590	590	12 products, soy, rice or similar milk substitutes, or greater
591	591	13 than 50% of vegetable or fruit juice by volume.
592	592	14 Until August 1, 2009, and notwithstanding any other
593	593	15 provisions of this Act, "food for human consumption that is to
594	594	16 be consumed off the premises where it is sold" includes all
595	595	17 food sold through a vending machine, except soft drinks and
596	596	18 food products that are dispensed hot from a vending machine,
597	597	19 regardless of the location of the vending machine. Beginning
598	598	20 August 1, 2009, and notwithstanding any other provisions of
599	599	21 this Act, "food for human consumption that is to be consumed
600	600	22 off the premises where it is sold" includes all food sold
601	601	23 through a vending machine, except soft drinks, candy, and food
602	602	24 products that are dispensed hot from a vending machine,
603	603	25 regardless of the location of the vending machine.
604	604	26 Notwithstanding any other provisions of this Act,
605	605
606	606
607	607
608	608
609	609
610	610	HB3179 - 16 - LRB104 10134 HLH 20206 b
611	611
612	612
613	613	HB3179- 17 -LRB104 10134 HLH 20206 b HB3179 - 17 - LRB104 10134 HLH 20206 b
614	614	HB3179 - 17 - LRB104 10134 HLH 20206 b
615	615	1 beginning September 1, 2009, "food for human consumption that
616	616	2 is to be consumed off the premises where it is sold" does not
617	617	3 include candy. For purposes of this Section, "candy" means a
618	618	4 preparation of sugar, honey, or other natural or artificial
619	619	5 sweeteners in combination with chocolate, fruits, nuts or
620	620	6 other ingredients or flavorings in the form of bars, drops, or
621	621	7 pieces. "Candy" does not include any preparation that contains
622	622	8 flour or requires refrigeration.
623	623	9 Notwithstanding any other provisions of this Act,
624	624	10 beginning September 1, 2009, "nonprescription medicines and
625	625	11 drugs" does not include grooming and hygiene products. For
626	626	12 purposes of this Section, "grooming and hygiene products"
627	627	13 includes, but is not limited to, soaps and cleaning solutions,
628	628	14 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
629	629	15 lotions and screens, unless those products are available by
630	630	16 prescription only, regardless of whether the products meet the
631	631	17 definition of "over-the-counter-drugs". For the purposes of
632	632	18 this paragraph, "over-the-counter-drug" means a drug for human
633	633	19 use that contains a label that identifies the product as a drug
634	634	20 as required by 21 CFR 201.66. The "over-the-counter-drug"
635	635	21 label includes:
636	636	22 (A) a "Drug Facts" panel; or
637	637	23 (B) a statement of the "active ingredient(s)" with a
638	638	24 list of those ingredients contained in the compound,
639	639	25 substance or preparation.
640	640	26 Beginning on January 1, 2014 (the effective date of Public
641	641
642	642
643	643
644	644
645	645
646	646	HB3179 - 17 - LRB104 10134 HLH 20206 b
647	647
648	648
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650	650	HB3179 - 18 - LRB104 10134 HLH 20206 b
651	651	1 Act 98-122), "prescription and nonprescription medicines and
652	652	2 drugs" includes medical cannabis purchased from a registered
653	653	3 dispensing organization under the Compassionate Use of Medical
654	654	4 Cannabis Program Act.
655	655	5 As used in this Section, "adult use cannabis" means
656	656	6 cannabis subject to tax under the Cannabis Cultivation
657	657	7 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
658	658	8 and does not include cannabis subject to tax under the
659	659	9 Compassionate Use of Medical Cannabis Program Act.
660	660	10 If the property that is acquired from a serviceman is
661	661	11 acquired outside Illinois and used outside Illinois before
662	662	12 being brought to Illinois for use here and is taxable under
663	663	13 this Act, the "selling price" on which the tax is computed
664	664	14 shall be reduced by an amount that represents a reasonable
665	665	15 allowance for depreciation for the period of prior
666	666	16 out-of-state use. No depreciation is allowed in cases where
667	667	17 the tax under this Act is imposed on lease receipts.
668	668	18 (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
669	669	19 102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700,
670	670	20 Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23;
671	671	21 103-154, eff. 6-30-23; 103-592, eff. 1-1-25; 103-781, eff.
672	672	22 8-5-24; revised 11-26-24.)
673	673	23 Section 15. The Service Occupation Tax Act is amended by
674	674	24 changing Section 3-10 as follows:
675	675
676	676
677	677
678	678
679	679
680	680	HB3179 - 18 - LRB104 10134 HLH 20206 b
681	681
682	682
683	683	HB3179- 19 -LRB104 10134 HLH 20206 b HB3179 - 19 - LRB104 10134 HLH 20206 b
684	684	HB3179 - 19 - LRB104 10134 HLH 20206 b
685	685	1 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
686	686	2 Sec. 3-10. Rate of tax. Unless otherwise provided in this
687	687	3 Section, the tax imposed by this Act is at the rate of 6.25% of
688	688	4 the "selling price", as defined in Section 2 of the Service Use
689	689	5 Tax Act, of the tangible personal property, including, on and
690	690	6 after January 1, 2025, tangible personal property transferred
691	691	7 by lease. For the purpose of computing this tax, in no event
692	692	8 shall the "selling price" be less than the cost price to the
693	693	9 serviceman of the tangible personal property transferred. The
694	694	10 selling price of each item of tangible personal property
695	695	11 transferred as an incident of a sale of service may be shown as
696	696	12 a distinct and separate item on the serviceman's billing to
697	697	13 the service customer. If the selling price is not so shown, the
698	698	14 selling price of the tangible personal property is deemed to
699	699	15 be 50% of the serviceman's entire billing to the service
700	700	16 customer. When, however, a serviceman contracts to design,
701	701	17 develop, and produce special order machinery or equipment, the
702	702	18 tax imposed by this Act shall be based on the serviceman's cost
703	703	19 price of the tangible personal property transferred incident
704	704	20 to the completion of the contract.
705	705	21 Beginning on July 1, 2000 and through December 31, 2000,
706	706	22 with respect to motor fuel, as defined in Section 1.1 of the
707	707	23 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
708	708	24 the Use Tax Act, the tax is imposed at the rate of 1.25%.
709	709	25 With respect to gasohol, as defined in the Use Tax Act, the
710	710	26 tax imposed by this Act shall apply to (i) 70% of the cost
711	711
712	712
713	713
714	714
715	715
716	716	HB3179 - 19 - LRB104 10134 HLH 20206 b
717	717
718	718
719	719	HB3179- 20 -LRB104 10134 HLH 20206 b HB3179 - 20 - LRB104 10134 HLH 20206 b
720	720	HB3179 - 20 - LRB104 10134 HLH 20206 b
721	721	1 price of property transferred as an incident to the sale of
722	722	2 service on or after January 1, 1990, and before July 1, 2003,
723	723	3 (ii) 80% of the selling price of property transferred as an
724	724	4 incident to the sale of service on or after July 1, 2003 and on
725	725	5 or before July 1, 2017, (iii) 100% of the selling price of
726	726	6 property transferred as an incident to the sale of service
727	727	7 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
728	728	8 the selling price of property transferred as an incident to
729	729	9 the sale of service on or after January 1, 2024 and on or
730	730	10 before December 31, 2028, and (v) 100% of the selling price of
731	731	11 property transferred as an incident to the sale of service
732	732	12 after December 31, 2028. If, at any time, however, the tax
733	733	13 under this Act on sales of gasohol, as defined in the Use Tax
734	734	14 Act, is imposed at the rate of 1.25%, then the tax imposed by
735	735	15 this Act applies to 100% of the proceeds of sales of gasohol
736	736	16 made during that time.
737	737	17 With respect to mid-range ethanol blends, as defined in
738	738	18 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
739	739	19 applies to (i) 80% of the selling price of property
740	740	20 transferred as an incident to the sale of service on or after
741	741	21 January 1, 2024 and on or before December 31, 2028 and (ii)
742	742	22 100% of the selling price of property transferred as an
743	743	23 incident to the sale of service after December 31, 2028. If, at
744	744	24 any time, however, the tax under this Act on sales of mid-range
745	745	25 ethanol blends is imposed at the rate of 1.25%, then the tax
746	746	26 imposed by this Act applies to 100% of the selling price of
747	747
748	748
749	749
750	750
751	751
752	752	HB3179 - 20 - LRB104 10134 HLH 20206 b
753	753
754	754
755	755	HB3179- 21 -LRB104 10134 HLH 20206 b HB3179 - 21 - LRB104 10134 HLH 20206 b
756	756	HB3179 - 21 - LRB104 10134 HLH 20206 b
757	757	1 mid-range ethanol blends transferred as an incident to the
758	758	2 sale of service during that time.
759	759	3 With respect to majority blended ethanol fuel, as defined
760	760	4 in the Use Tax Act, the tax imposed by this Act does not apply
761	761	5 to the selling price of property transferred as an incident to
762	762	6 the sale of service on or after July 1, 2003 and on or before
763	763	7 December 31, 2028 but applies to 100% of the selling price
764	764	8 thereafter.
765	765	9 With respect to biodiesel blends, as defined in the Use
766	766	10 Tax Act, with no less than 1% and no more than 10% biodiesel,
767	767	11 the tax imposed by this Act applies to (i) 80% of the selling
768	768	12 price of property transferred as an incident to the sale of
769	769	13 service on or after July 1, 2003 and on or before December 31,
770	770	14 2018 and (ii) 100% of the proceeds of the selling price after
771	771	15 December 31, 2018 and before January 1, 2024. On and after
772	772	16 January 1, 2024 and on or before December 31, 2030, the
773	773	17 taxation of biodiesel, renewable diesel, and biodiesel blends
774	774	18 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
775	775	19 at any time, however, the tax under this Act on sales of
776	776	20 biodiesel blends, as defined in the Use Tax Act, with no less
777	777	21 than 1% and no more than 10% biodiesel is imposed at the rate
778	778	22 of 1.25%, then the tax imposed by this Act applies to 100% of
779	779	23 the proceeds of sales of biodiesel blends with no less than 1%
780	780	24 and no more than 10% biodiesel made during that time.
781	781	25 With respect to biodiesel, as defined in the Use Tax Act,
782	782	26 and biodiesel blends, as defined in the Use Tax Act, with more
783	783
784	784
785	785
786	786
787	787
788	788	HB3179 - 21 - LRB104 10134 HLH 20206 b
789	789
790	790
791	791	HB3179- 22 -LRB104 10134 HLH 20206 b HB3179 - 22 - LRB104 10134 HLH 20206 b
792	792	HB3179 - 22 - LRB104 10134 HLH 20206 b
793	793	1 than 10% but no more than 99% biodiesel material, the tax
794	794	2 imposed by this Act does not apply to the proceeds of the
795	795	3 selling price of property transferred as an incident to the
796	796	4 sale of service on or after July 1, 2003 and on or before
797	797	5 December 31, 2023. On and after January 1, 2024 and on or
798	798	6 before December 31, 2030, the taxation of biodiesel, renewable
799	799	7 diesel, and biodiesel blends shall be as provided in Section
800	800	8 3-5.1 of the Use Tax Act.
801	801	9 At the election of any registered serviceman made for each
802	802	10 fiscal year, sales of service in which the aggregate annual
803	803	11 cost price of tangible personal property transferred as an
804	804	12 incident to the sales of service is less than 35%, or 75% in
805	805	13 the case of servicemen transferring prescription drugs or
806	806	14 servicemen engaged in graphic arts production, of the
807	807	15 aggregate annual total gross receipts from all sales of
808	808	16 service, the tax imposed by this Act shall be based on the
809	809	17 serviceman's cost price of the tangible personal property
810	810	18 transferred incident to the sale of those services.
811	811	19 Until July 1, 2022 and from July 1, 2023 through December
812	812	20 31, 2025, the tax shall be imposed at the rate of 1% on food
813	813	21 prepared for immediate consumption and transferred incident to
814	814	22 a sale of service subject to this Act or the Service Use Tax
815	815	23 Act by an entity licensed under the Hospital Licensing Act,
816	816	24 the Nursing Home Care Act, the Assisted Living and Shared
817	817	25 Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
818	818	26 Specialized Mental Health Rehabilitation Act of 2013, or the
819	819
820	820
821	821
822	822
823	823
824	824	HB3179 - 22 - LRB104 10134 HLH 20206 b
825	825
826	826
827	827	HB3179- 23 -LRB104 10134 HLH 20206 b HB3179 - 23 - LRB104 10134 HLH 20206 b
828	828	HB3179 - 23 - LRB104 10134 HLH 20206 b
829	829	1 Child Care Act of 1969, or an entity that holds a permit issued
830	830	2 pursuant to the Life Care Facilities Act. Until July 1, 2022
831	831	3 and from July 1, 2023 through December 31, 2025, the tax shall
832	832	4 also be imposed at the rate of 1% on food for human consumption
833	833	5 that is to be consumed off the premises where it is sold (other
834	834	6 than alcoholic beverages, food consisting of or infused with
835	835	7 adult use cannabis, soft drinks, and food that has been
836	836	8 prepared for immediate consumption and is not otherwise
837	837	9 included in this paragraph).
838	838	10 Beginning on July 1, 2022 and until July 1, 2023, the tax
839	839	11 shall be imposed at the rate of 0% on food prepared for
840	840	12 immediate consumption and transferred incident to a sale of
841	841	13 service subject to this Act or the Service Use Tax Act by an
842	842	14 entity licensed under the Hospital Licensing Act, the Nursing
843	843	15 Home Care Act, the Assisted Living and Shared Housing Act, the
844	844	16 ID/DD Community Care Act, the MC/DD Act, the Specialized
845	845	17 Mental Health Rehabilitation Act of 2013, or the Child Care
846	846	18 Act of 1969, or an entity that holds a permit issued pursuant
847	847	19 to the Life Care Facilities Act. Beginning July 1, 2022 and
848	848	20 until July 1, 2023, the tax shall also be imposed at the rate
849	849	21 of 0% on food for human consumption that is to be consumed off
850	850	22 the premises where it is sold (other than alcoholic beverages,
851	851	23 food consisting of or infused with adult use cannabis, soft
852	852	24 drinks, and food that has been prepared for immediate
853	853	25 consumption and is not otherwise included in this paragraph).
854	854	26 On and after January 1, 2026, food prepared for immediate
855	855
856	856
857	857
858	858
859	859
860	860	HB3179 - 23 - LRB104 10134 HLH 20206 b
861	861
862	862
863	863	HB3179- 24 -LRB104 10134 HLH 20206 b HB3179 - 24 - LRB104 10134 HLH 20206 b
864	864	HB3179 - 24 - LRB104 10134 HLH 20206 b
865	865	1 consumption and transferred incident to a sale of service
866	866	2 subject to this Act or the Service Use Tax Act by an entity
867	867	3 licensed under the Hospital Licensing Act, the Nursing Home
868	868	4 Care Act, the Assisted Living and Shared Housing Act, the
869	869	5 ID/DD Community Care Act, the MC/DD Act, the Specialized
870	870	6 Mental Health Rehabilitation Act of 2013, or the Child Care
871	871	7 Act of 1969, or an entity that holds a permit issued pursuant
872	872	8 to the Life Care Facilities Act is exempt from the tax imposed
873	873	9 by this Act. On and after January 1, 2026, food for human
874	874	10 consumption that is to be consumed off the premises where it is
875	875	11 sold (other than alcoholic beverages, food consisting of or
876	876	12 infused with adult use cannabis, soft drinks, candy, and food
877	877	13 that has been prepared for immediate consumption and is not
878	878	14 otherwise included in this paragraph) is exempt from the tax
879	879	15 imposed by this Act.
880	880	16 With respect to the following items, the tax is imposed at
881	881	17 the rate of 1%:
882	882	18 (1) food prepared for immediate consumption and
883	883	19 transferred incident to a sale of service subject to this
884	884	20 Act or the Service Occupation Tax Act by an entity
885	885	21 licensed under the Hospital Licensing Act, the Nursing
886	886	22 Home Care Act, the Assisted Living and Shared Housing Act,
887	887	23 the ID/DD Community Care Act, the MC/DD Act, the
888	888	24 Specialized Mental Health Rehabilitation Act of 2013, or
889	889	25 the Child Care Act of 1969, or an entity that holds a
890	890	26 permit issued pursuant to the Life Care Facilities Act;
891	891
892	892
893	893
894	894
895	895
896	896	HB3179 - 24 - LRB104 10134 HLH 20206 b
897	897
898	898
899	899	HB3179- 25 -LRB104 10134 HLH 20206 b HB3179 - 25 - LRB104 10134 HLH 20206 b
900	900	HB3179 - 25 - LRB104 10134 HLH 20206 b
901	901	1 (2) food for human consumption that is to be consumed
902	902	2 off the premises where it is sold (other than alcoholic
903	903	3 beverages, food consisting of or infused with adult use
904	904	4 cannabis, soft drinks, and food that has been prepared for
905	905	5 immediate consumption);
906	906	6 (3) prescription and nonprescription medicines, drugs,
907	907	7 and medical appliances;
908	908	8 (4) products classified as Class III medical devices
909	909	9 by the United States Food and Drug Administration that are
910	910	10 used for cancer treatment pursuant to a prescription, as
911	911	11 well as any accessories and components related to those
912	912	12 devices;
913	913	13 (5) modifications to a motor vehicle for the purpose
914	914	14 of rendering it usable by a person with a disability;
915	915	15 (6) insulin, blood sugar testing materials, syringes,
916	916	16 and needles used by human diabetics; and
917	917	17 (7) diapers and baby wipes.
918	918	18 The tax shall be imposed at the rate of 1% on prescription
919	919	19 and nonprescription medicines, drugs, medical appliances,
920	920	20 products classified as Class III medical devices by the United
921	921	21 States Food and Drug Administration that are used for cancer
922	922	22 treatment pursuant to a prescription, as well as any
923	923	23 accessories and components related to those devices,
924	924	24 modifications to a motor vehicle for the purpose of rendering
925	925	25 it usable by a person with a disability, and insulin, blood
926	926	26 sugar testing materials, syringes, and needles used by human
927	927
928	928
929	929
930	930
931	931
932	932	HB3179 - 25 - LRB104 10134 HLH 20206 b
933	933
934	934
935	935	HB3179- 26 -LRB104 10134 HLH 20206 b HB3179 - 26 - LRB104 10134 HLH 20206 b
936	936	HB3179 - 26 - LRB104 10134 HLH 20206 b
937	937	1 diabetics. For the purposes of this Section, until September
938	938	2 1, 2009: the term "soft drinks" means any complete, finished,
939	939	3 ready-to-use, non-alcoholic drink, whether carbonated or not,
940	940	4 including, but not limited to, soda water, cola, fruit juice,
941	941	5 vegetable juice, carbonated water, and all other preparations
942	942	6 commonly known as soft drinks of whatever kind or description
943	943	7 that are contained in any closed or sealed can, carton, or
944	944	8 container, regardless of size; but "soft drinks" does not
945	945	9 include coffee, tea, non-carbonated water, infant formula,
946	946	10 milk or milk products as defined in the Grade A Pasteurized
947	947	11 Milk and Milk Products Act, or drinks containing 50% or more
948	948	12 natural fruit or vegetable juice.
949	949	13 Notwithstanding any other provisions of this Act,
950	950	14 beginning September 1, 2009, "soft drinks" means non-alcoholic
951	951	15 beverages that contain natural or artificial sweeteners. "Soft
952	952	16 drinks" does not include beverages that contain milk or milk
953	953	17 products, soy, rice or similar milk substitutes, or greater
954	954	18 than 50% of vegetable or fruit juice by volume.
955	955	19 Until August 1, 2009, and notwithstanding any other
956	956	20 provisions of this Act, "food for human consumption that is to
957	957	21 be consumed off the premises where it is sold" includes all
958	958	22 food sold through a vending machine, except soft drinks and
959	959	23 food products that are dispensed hot from a vending machine,
960	960	24 regardless of the location of the vending machine. Beginning
961	961	25 August 1, 2009, and notwithstanding any other provisions of
962	962	26 this Act, "food for human consumption that is to be consumed
963	963
964	964
965	965
966	966
967	967
968	968	HB3179 - 26 - LRB104 10134 HLH 20206 b
969	969
970	970
971	971	HB3179- 27 -LRB104 10134 HLH 20206 b HB3179 - 27 - LRB104 10134 HLH 20206 b
972	972	HB3179 - 27 - LRB104 10134 HLH 20206 b
973	973	1 off the premises where it is sold" includes all food sold
974	974	2 through a vending machine, except soft drinks, candy, and food
975	975	3 products that are dispensed hot from a vending machine,
976	976	4 regardless of the location of the vending machine.
977	977	5 Notwithstanding any other provisions of this Act,
978	978	6 beginning September 1, 2009, "food for human consumption that
979	979	7 is to be consumed off the premises where it is sold" does not
980	980	8 include candy. For purposes of this Section, "candy" means a
981	981	9 preparation of sugar, honey, or other natural or artificial
982	982	10 sweeteners in combination with chocolate, fruits, nuts or
983	983	11 other ingredients or flavorings in the form of bars, drops, or
984	984	12 pieces. "Candy" does not include any preparation that contains
985	985	13 flour or requires refrigeration.
986	986	14 Notwithstanding any other provisions of this Act,
987	987	15 beginning September 1, 2009, "nonprescription medicines and
988	988	16 drugs" does not include grooming and hygiene products. For
989	989	17 purposes of this Section, "grooming and hygiene products"
990	990	18 includes, but is not limited to, soaps and cleaning solutions,
991	991	19 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
992	992	20 lotions and screens, unless those products are available by
993	993	21 prescription only, regardless of whether the products meet the
994	994	22 definition of "over-the-counter-drugs". For the purposes of
995	995	23 this paragraph, "over-the-counter-drug" means a drug for human
996	996	24 use that contains a label that identifies the product as a drug
997	997	25 as required by 21 CFR 201.66. The "over-the-counter-drug"
998	998	26 label includes:
999	999
1000	1000
1001	1001
1002	1002
1003	1003
1004	1004	HB3179 - 27 - LRB104 10134 HLH 20206 b
1005	1005
1006	1006
1007	1007	HB3179- 28 -LRB104 10134 HLH 20206 b HB3179 - 28 - LRB104 10134 HLH 20206 b
1008	1008	HB3179 - 28 - LRB104 10134 HLH 20206 b
1009	1009	1 (A) a "Drug Facts" panel; or
1010	1010	2 (B) a statement of the "active ingredient(s)" with a
1011	1011	3 list of those ingredients contained in the compound,
1012	1012	4 substance or preparation.
1013	1013	5 Beginning on January 1, 2014 (the effective date of Public
1014	1014	6 Act 98-122), "prescription and nonprescription medicines and
1015	1015	7 drugs" includes medical cannabis purchased from a registered
1016	1016	8 dispensing organization under the Compassionate Use of Medical
1017	1017	9 Cannabis Program Act.
1018	1018	10 As used in this Section, "adult use cannabis" means
1019	1019	11 cannabis subject to tax under the Cannabis Cultivation
1020	1020	12 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
1021	1021	13 and does not include cannabis subject to tax under the
1022	1022	14 Compassionate Use of Medical Cannabis Program Act.
1023	1023	15 (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
1024	1024	16 102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700,
1025	1025	17 Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23;
1026	1026	18 103-154, eff. 6-30-23; 103-592, eff. 1-1-25; 103-781, eff.
1027	1027	19 8-5-24; revised 11-26-24.)
1028	1028	20 Section 20. The Retailers' Occupation Tax Act is amended
1029	1029	21 by changing Section 2-10 as follows:
1030	1030	22 (35 ILCS 120/2-10) from Ch. 120, par. 441-10
1031	1031	23 Sec. 2-10. Rate of tax. Unless otherwise provided in this
1032	1032	24 Section, the tax imposed by this Act is at the rate of 6.25% of
1033	1033
1034	1034
1035	1035
1036	1036
1037	1037
1038	1038	HB3179 - 28 - LRB104 10134 HLH 20206 b
1039	1039
1040	1040
1041	1041	HB3179- 29 -LRB104 10134 HLH 20206 b HB3179 - 29 - LRB104 10134 HLH 20206 b
1042	1042	HB3179 - 29 - LRB104 10134 HLH 20206 b
1043	1043	1 gross receipts from sales, which, on and after January 1,
1044	1044	2 2025, includes leases, of tangible personal property made in
1045	1045	3 the course of business.
1046	1046	4 Beginning on July 1, 2000 and through December 31, 2000,
1047	1047	5 with respect to motor fuel, as defined in Section 1.1 of the
1048	1048	6 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
1049	1049	7 the Use Tax Act, the tax is imposed at the rate of 1.25%.
1050	1050	8 Beginning on August 6, 2010 through August 15, 2010, and
1051	1051	9 beginning again on August 5, 2022 through August 14, 2022,
1052	1052	10 with respect to sales tax holiday items as defined in Section
1053	1053	11 2-8 of this Act, the tax is imposed at the rate of 1.25%.
1054	1054	12 Within 14 days after July 1, 2000 (the effective date of
1055	1055	13 Public Act 91-872), each retailer of motor fuel and gasohol
1056	1056	14 shall cause the following notice to be posted in a prominently
1057	1057	15 visible place on each retail dispensing device that is used to
1058	1058	16 dispense motor fuel or gasohol in the State of Illinois: "As of
1059	1059	17 July 1, 2000, the State of Illinois has eliminated the State's
1060	1060	18 share of sales tax on motor fuel and gasohol through December
1061	1061	19 31, 2000. The price on this pump should reflect the
1062	1062	20 elimination of the tax." The notice shall be printed in bold
1063	1063	21 print on a sign that is no smaller than 4 inches by 8 inches.
1064	1064	22 The sign shall be clearly visible to customers. Any retailer
1065	1065	23 who fails to post or maintain a required sign through December
1066	1066	24 31, 2000 is guilty of a petty offense for which the fine shall
1067	1067	25 be $500 per day per each retail premises where a violation
1068	1068	26 occurs.
1069	1069
1070	1070
1071	1071
1072	1072
1073	1073
1074	1074	HB3179 - 29 - LRB104 10134 HLH 20206 b
1075	1075
1076	1076
1077	1077	HB3179- 30 -LRB104 10134 HLH 20206 b HB3179 - 30 - LRB104 10134 HLH 20206 b
1078	1078	HB3179 - 30 - LRB104 10134 HLH 20206 b
1079	1079	1 With respect to gasohol, as defined in the Use Tax Act, the
1080	1080	2 tax imposed by this Act applies to (i) 70% of the proceeds of
1081	1081	3 sales made on or after January 1, 1990, and before July 1,
1082	1082	4 2003, (ii) 80% of the proceeds of sales made on or after July
1083	1083	5 1, 2003 and on or before July 1, 2017, (iii) 100% of the
1084	1084	6 proceeds of sales made after July 1, 2017 and prior to January
1085	1085	7 1, 2024, (iv) 90% of the proceeds of sales made on or after
1086	1086	8 January 1, 2024 and on or before December 31, 2028, and (v)
1087	1087	9 100% of the proceeds of sales made after December 31, 2028. If,
1088	1088	10 at any time, however, the tax under this Act on sales of
1089	1089	11 gasohol, as defined in the Use Tax Act, is imposed at the rate
1090	1090	12 of 1.25%, then the tax imposed by this Act applies to 100% of
1091	1091	13 the proceeds of sales of gasohol made during that time.
1092	1092	14 With respect to mid-range ethanol blends, as defined in
1093	1093	15 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
1094	1094	16 applies to (i) 80% of the proceeds of sales made on or after
1095	1095	17 January 1, 2024 and on or before December 31, 2028 and (ii)
1096	1096	18 100% of the proceeds of sales made after December 31, 2028. If,
1097	1097	19 at any time, however, the tax under this Act on sales of
1098	1098	20 mid-range ethanol blends is imposed at the rate of 1.25%, then
1099	1099	21 the tax imposed by this Act applies to 100% of the proceeds of
1100	1100	22 sales of mid-range ethanol blends made during that time.
1101	1101	23 With respect to majority blended ethanol fuel, as defined
1102	1102	24 in the Use Tax Act, the tax imposed by this Act does not apply
1103	1103	25 to the proceeds of sales made on or after July 1, 2003 and on
1104	1104	26 or before December 31, 2028 but applies to 100% of the proceeds
1105	1105
1106	1106
1107	1107
1108	1108
1109	1109
1110	1110	HB3179 - 30 - LRB104 10134 HLH 20206 b
1111	1111
1112	1112
1113	1113	HB3179- 31 -LRB104 10134 HLH 20206 b HB3179 - 31 - LRB104 10134 HLH 20206 b
1114	1114	HB3179 - 31 - LRB104 10134 HLH 20206 b
1115	1115	1 of sales made thereafter.
1116	1116	2 With respect to biodiesel blends, as defined in the Use
1117	1117	3 Tax Act, with no less than 1% and no more than 10% biodiesel,
1118	1118	4 the tax imposed by this Act applies to (i) 80% of the proceeds
1119	1119	5 of sales made on or after July 1, 2003 and on or before
1120	1120	6 December 31, 2018 and (ii) 100% of the proceeds of sales made
1121	1121	7 after December 31, 2018 and before January 1, 2024. On and
1122	1122	8 after January 1, 2024 and on or before December 31, 2030, the
1123	1123	9 taxation of biodiesel, renewable diesel, and biodiesel blends
1124	1124	10 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
1125	1125	11 at any time, however, the tax under this Act on sales of
1126	1126	12 biodiesel blends, as defined in the Use Tax Act, with no less
1127	1127	13 than 1% and no more than 10% biodiesel is imposed at the rate
1128	1128	14 of 1.25%, then the tax imposed by this Act applies to 100% of
1129	1129	15 the proceeds of sales of biodiesel blends with no less than 1%
1130	1130	16 and no more than 10% biodiesel made during that time.
1131	1131	17 With respect to biodiesel, as defined in the Use Tax Act,
1132	1132	18 and biodiesel blends, as defined in the Use Tax Act, with more
1133	1133	19 than 10% but no more than 99% biodiesel, the tax imposed by
1134	1134	20 this Act does not apply to the proceeds of sales made on or
1135	1135	21 after July 1, 2003 and on or before December 31, 2023. On and
1136	1136	22 after January 1, 2024 and on or before December 31, 2030, the
1137	1137	23 taxation of biodiesel, renewable diesel, and biodiesel blends
1138	1138	24 shall be as provided in Section 3-5.1 of the Use Tax Act.
1139	1139	25 With respect to the following items, the tax is imposed at
1140	1140	26 the rate of 1%:
1141	1141
1142	1142
1143	1143
1144	1144
1145	1145
1146	1146	HB3179 - 31 - LRB104 10134 HLH 20206 b
1147	1147
1148	1148
1149	1149	HB3179- 32 -LRB104 10134 HLH 20206 b HB3179 - 32 - LRB104 10134 HLH 20206 b
1150	1150	HB3179 - 32 - LRB104 10134 HLH 20206 b
1151	1151	1 (1) food for human consumption that is to be consumed
1152	1152	2 off the premises where it is sold (other than alcoholic
1153	1153	3 beverages, food consisting of or infused with adult use
1154	1154	4 cannabis, soft drinks, and food that has been prepared for
1155	1155	5 immediate consumption);
1156	1156	6 (2) prescription and nonprescription medicines, drugs,
1157	1157	7 and medical appliances;
1158	1158	8 (3) products classified as Class III medical devices
1159	1159	9 by the United States Food and Drug Administration that are
1160	1160	10 used for cancer treatment pursuant to a prescription, as
1161	1161	11 well as any accessories and components related to those
1162	1162	12 devices;
1163	1163	13 (4) modifications to a motor vehicle for the purpose
1164	1164	14 of rendering it usable by a person with a disability;
1165	1165	15 (5) insulin, blood sugar testing materials, syringes,
1166	1166	16 and needles used by human diabetics; and
1167	1167	17 (6) diapers and baby wipes.
1168	1168	18 Until July 1, 2022 and from July 1, 2023 through December
1169	1169	19 31, 2025, with respect to food for human consumption that is to
1170	1170	20 be consumed off the premises where it is sold (other than
1171	1171	21 alcoholic beverages, food consisting of or infused with adult
1172	1172	22 use cannabis, soft drinks, and food that has been prepared for
1173	1173	23 immediate consumption), the tax is imposed at the rate of 1%.
1174	1174	24 Beginning July 1, 2022 and until July 1, 2023, with respect to
1175	1175	25 food for human consumption that is to be consumed off the
1176	1176	26 premises where it is sold (other than alcoholic beverages,
1177	1177
1178	1178
1179	1179
1180	1180
1181	1181
1182	1182	HB3179 - 32 - LRB104 10134 HLH 20206 b
1183	1183
1184	1184
1185	1185	HB3179- 33 -LRB104 10134 HLH 20206 b HB3179 - 33 - LRB104 10134 HLH 20206 b
1186	1186	HB3179 - 33 - LRB104 10134 HLH 20206 b
1187	1187	1 food consisting of or infused with adult use cannabis, soft
1188	1188	2 drinks, and food that has been prepared for immediate
1189	1189	3 consumption), the tax is imposed at the rate of 0%. On and
1190	1190	4 after January 1, 2026, food for human consumption that is to be
1191	1191	5 consumed off the premises where it is sold (other than
1192	1192	6 alcoholic beverages, food consisting of or infused with adult
1193	1193	7 use cannabis, soft drinks, candy, and food that has been
1194	1194	8 prepared for immediate consumption) is exempt from the tax
1195	1195	9 imposed by this Act.
1196	1196	10 With respect to prescription and nonprescription
1197	1197	11 medicines, drugs, medical appliances, products classified as
1198	1198	12 Class III medical devices by the United States Food and Drug
1199	1199	13 Administration that are used for cancer treatment pursuant to
1200	1200	14 a prescription, as well as any accessories and components
1201	1201	15 related to those devices, modifications to a motor vehicle for
1202	1202	16 the purpose of rendering it usable by a person with a
1203	1203	17 disability, and insulin, blood sugar testing materials,
1204	1204	18 syringes, and needles used by human diabetics, the tax is
1205	1205	19 imposed at the rate of 1%. For the purposes of this Section,
1206	1206	20 until September 1, 2009: the term "soft drinks" means any
1207	1207	21 complete, finished, ready-to-use, non-alcoholic drink, whether
1208	1208	22 carbonated or not, including, but not limited to, soda water,
1209	1209	23 cola, fruit juice, vegetable juice, carbonated water, and all
1210	1210	24 other preparations commonly known as soft drinks of whatever
1211	1211	25 kind or description that are contained in any closed or sealed
1212	1212	26 bottle, can, carton, or container, regardless of size; but
1213	1213
1214	1214
1215	1215
1216	1216
1217	1217
1218	1218	HB3179 - 33 - LRB104 10134 HLH 20206 b
1219	1219
1220	1220
1221	1221	HB3179- 34 -LRB104 10134 HLH 20206 b HB3179 - 34 - LRB104 10134 HLH 20206 b
1222	1222	HB3179 - 34 - LRB104 10134 HLH 20206 b
1223	1223	1 "soft drinks" does not include coffee, tea, non-carbonated
1224	1224	2 water, infant formula, milk or milk products as defined in the
1225	1225	3 Grade A Pasteurized Milk and Milk Products Act, or drinks
1226	1226	4 containing 50% or more natural fruit or vegetable juice.
1227	1227	5 Notwithstanding any other provisions of this Act,
1228	1228	6 beginning September 1, 2009, "soft drinks" means non-alcoholic
1229	1229	7 beverages that contain natural or artificial sweeteners. "Soft
1230	1230	8 drinks" does not include beverages that contain milk or milk
1231	1231	9 products, soy, rice or similar milk substitutes, or greater
1232	1232	10 than 50% of vegetable or fruit juice by volume.
1233	1233	11 Until August 1, 2009, and notwithstanding any other
1234	1234	12 provisions of this Act, "food for human consumption that is to
1235	1235	13 be consumed off the premises where it is sold" includes all
1236	1236	14 food sold through a vending machine, except soft drinks and
1237	1237	15 food products that are dispensed hot from a vending machine,
1238	1238	16 regardless of the location of the vending machine. Beginning
1239	1239	17 August 1, 2009, and notwithstanding any other provisions of
1240	1240	18 this Act, "food for human consumption that is to be consumed
1241	1241	19 off the premises where it is sold" includes all food sold
1242	1242	20 through a vending machine, except soft drinks, candy, and food
1243	1243	21 products that are dispensed hot from a vending machine,
1244	1244	22 regardless of the location of the vending machine.
1245	1245	23 Notwithstanding any other provisions of this Act,
1246	1246	24 beginning September 1, 2009, "food for human consumption that
1247	1247	25 is to be consumed off the premises where it is sold" does not
1248	1248	26 include candy. For purposes of this Section, "candy" means a
1249	1249
1250	1250
1251	1251
1252	1252
1253	1253
1254	1254	HB3179 - 34 - LRB104 10134 HLH 20206 b
1255	1255
1256	1256
1257	1257	HB3179- 35 -LRB104 10134 HLH 20206 b HB3179 - 35 - LRB104 10134 HLH 20206 b
1258	1258	HB3179 - 35 - LRB104 10134 HLH 20206 b
1259	1259	1 preparation of sugar, honey, or other natural or artificial
1260	1260	2 sweeteners in combination with chocolate, fruits, nuts or
1261	1261	3 other ingredients or flavorings in the form of bars, drops, or
1262	1262	4 pieces. "Candy" does not include any preparation that contains
1263	1263	5 flour or requires refrigeration.
1264	1264	6 Notwithstanding any other provisions of this Act,
1265	1265	7 beginning September 1, 2009, "nonprescription medicines and
1266	1266	8 drugs" does not include grooming and hygiene products. For
1267	1267	9 purposes of this Section, "grooming and hygiene products"
1268	1268	10 includes, but is not limited to, soaps and cleaning solutions,
1269	1269	11 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
1270	1270	12 lotions and screens, unless those products are available by
1271	1271	13 prescription only, regardless of whether the products meet the
1272	1272	14 definition of "over-the-counter-drugs". For the purposes of
1273	1273	15 this paragraph, "over-the-counter-drug" means a drug for human
1274	1274	16 use that contains a label that identifies the product as a drug
1275	1275	17 as required by 21 CFR 201.66. The "over-the-counter-drug"
1276	1276	18 label includes:
1277	1277	19 (A) a "Drug Facts" panel; or
1278	1278	20 (B) a statement of the "active ingredient(s)" with a
1279	1279	21 list of those ingredients contained in the compound,
1280	1280	22 substance or preparation.
1281	1281	23 Beginning on January 1, 2014 (the effective date of Public
1282	1282	24 Act 98-122), "prescription and nonprescription medicines and
1283	1283	25 drugs" includes medical cannabis purchased from a registered
1284	1284	26 dispensing organization under the Compassionate Use of Medical
1285	1285
1286	1286
1287	1287
1288	1288
1289	1289
1290	1290	HB3179 - 35 - LRB104 10134 HLH 20206 b
1291	1291
1292	1292
1293	1293	HB3179- 36 -LRB104 10134 HLH 20206 b HB3179 - 36 - LRB104 10134 HLH 20206 b
1294	1294	HB3179 - 36 - LRB104 10134 HLH 20206 b
1295	1295
1296	1296
1297	1297
1298	1298
1299	1299
1300	1300	HB3179 - 36 - LRB104 10134 HLH 20206 b