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
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
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.
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A BILL FOR
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1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by changing Section
5 3-10 as follows:
6 (35 ILCS 105/3-10) from Ch. 120, par. 439.33-10
7 Sec. 3-10. Rate of tax. Unless otherwise provided in this
8 Section, the tax imposed by this Act is at the rate of 6.25% of
9 either the selling price or the fair market value, if any, of
10 the tangible personal property, which, on and after January 1,
11 2025, includes leases of tangible personal property. In all
12 cases where property functionally used or consumed is the same
13 as the property that was purchased at retail, then the tax is
14 imposed on the selling price of the property. In all cases
15 where property functionally used or consumed is a by-product
16 or waste product that has been refined, manufactured, or
17 produced from property purchased at retail, then the tax is
18 imposed on the lower of the fair market value, if any, of the
19 specific property so used in this State or on the selling price
20 of the property purchased at retail. For purposes of this
21 Section "fair market value" means the price at which property
22 would change hands between a willing buyer and a willing
23 seller, neither being under any compulsion to buy or sell and
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
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
LRB104 10134 HLH 20206 b
A BILL FOR
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
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1 both having reasonable knowledge of the relevant facts. The
2 fair market value shall be established by Illinois sales by
3 the taxpayer of the same property as that functionally used or
4 consumed, or if there are no such sales by the taxpayer, then
5 comparable sales or purchases of property of like kind and
6 character in Illinois.
7 Beginning on July 1, 2000 and through December 31, 2000,
8 with respect to motor fuel, as defined in Section 1.1 of the
9 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
10 the Use Tax Act, the tax is imposed at the rate of 1.25%.
11 Beginning on August 6, 2010 through August 15, 2010, and
12 beginning again on August 5, 2022 through August 14, 2022,
13 with respect to sales tax holiday items as defined in Section
14 3-6 of this Act, the tax is imposed at the rate of 1.25%.
15 With respect to gasohol, the tax imposed by this Act
16 applies to (i) 70% of the proceeds of sales made on or after
17 January 1, 1990, and before July 1, 2003, (ii) 80% of the
18 proceeds of sales made on or after July 1, 2003 and on or
19 before July 1, 2017, (iii) 100% of the proceeds of sales made
20 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
21 the proceeds of sales made on or after January 1, 2024 and on
22 or before December 31, 2028, and (v) 100% of the proceeds of
23 sales made after December 31, 2028. If, at any time, however,
24 the tax under this Act on sales of gasohol is imposed at the
25 rate of 1.25%, then the tax imposed by this Act applies to 100%
26 of the proceeds of sales of gasohol made during that time.
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1 With respect to mid-range ethanol blends, the tax imposed
2 by this Act applies to (i) 80% of the proceeds of sales made on
3 or after January 1, 2024 and on or before December 31, 2028 and
4 (ii) 100% of the proceeds of sales made thereafter. If, at any
5 time, however, the tax under this Act on sales of mid-range
6 ethanol blends is imposed at the rate of 1.25%, then the tax
7 imposed by this Act applies to 100% of the proceeds of sales of
8 mid-range ethanol blends made during that time.
9 With respect to majority blended ethanol fuel, the tax
10 imposed by this Act does not apply to the proceeds of sales
11 made on or after July 1, 2003 and on or before December 31,
12 2028 but applies to 100% of the proceeds of sales made
13 thereafter.
14 With respect to biodiesel blends with no less than 1% and
15 no more than 10% biodiesel, the tax imposed by this Act applies
16 to (i) 80% of the proceeds of sales made on or after July 1,
17 2003 and on or before December 31, 2018 and (ii) 100% of the
18 proceeds of sales made after December 31, 2018 and before
19 January 1, 2024. On and after January 1, 2024 and on or before
20 December 31, 2030, the taxation of biodiesel, renewable
21 diesel, and biodiesel blends shall be as provided in Section
22 3-5.1. If, at any time, however, the tax under this Act on
23 sales of biodiesel blends with no less than 1% and no more than
24 10% biodiesel is imposed at the rate of 1.25%, then the tax
25 imposed by this Act applies to 100% of the proceeds of sales of
26 biodiesel blends with no less than 1% and no more than 10%
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1 biodiesel made during that time.
2 With respect to biodiesel and biodiesel blends with more
3 than 10% but no more than 99% biodiesel, the tax imposed by
4 this Act does not apply to the proceeds of sales made on or
5 after July 1, 2003 and on or before December 31, 2023. On and
6 after January 1, 2024 and on or before December 31, 2030, the
7 taxation of biodiesel, renewable diesel, and biodiesel blends
8 shall be as provided in Section 3-5.1.
9 With respect to the following items, the tax is imposed at
10 the rate of 1%:
11 (1) food for human consumption that is to be consumed
12 off the premises where it is sold (other than alcoholic
13 beverages, food consisting of or infused with adult use
14 cannabis, soft drinks, and food that has been prepared for
15 immediate consumption);
16 (2) prescription and nonprescription medicines, drugs,
17 and medical appliances;
18 (3) products classified as Class III medical devices
19 by the United States Food and Drug Administration that are
20 used for cancer treatment pursuant to a prescription, as
21 well as any accessories and components related to those
22 devices;
23 (4) modifications to a motor vehicle for the purpose
24 of rendering it usable by a person with a disability;
25 (5) insulin, blood sugar testing materials, syringes,
26 and needles used by human diabetics; and
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1 (6) diapers and baby wipes.
2 Until July 1, 2022 and from July 1, 2023 through December
3 31, 2025, with respect to food for human consumption that is to
4 be consumed off the premises where it is sold (other than
5 alcoholic beverages, food consisting of or infused with adult
6 use cannabis, soft drinks, and food that has been prepared for
7 immediate consumption), the tax is imposed at the rate of 1%.
8 Beginning on July 1, 2022 and until July 1, 2023, with respect
9 to food for human consumption that is to be consumed off the
10 premises where it is sold (other than alcoholic beverages,
11 food consisting of or infused with adult use cannabis, soft
12 drinks, and food that has been prepared for immediate
13 consumption), the tax is imposed at the rate of 0%. On and
14 after January 1, 2026, food for human consumption that is to be
15 consumed off the premises where it is sold (other than
16 alcoholic beverages, food consisting of or infused with adult
17 use cannabis, soft drinks, candy, and food that has been
18 prepared for immediate consumption) is exempt from the tax
19 imposed by this Act.
20 With respect to prescription and nonprescription
21 medicines, drugs, medical appliances, products classified as
22 Class III medical devices by the United States Food and Drug
23 Administration that are used for cancer treatment pursuant to
24 a prescription, as well as any accessories and components
25 related to those devices, modifications to a motor vehicle for
26 the purpose of rendering it usable by a person with a
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1 disability, and insulin, blood sugar testing materials,
2 syringes, and needles used by human diabetics, the tax is
3 imposed at the rate of 1%. For the purposes of this Section,
4 until September 1, 2009: the term "soft drinks" means any
5 complete, finished, ready-to-use, non-alcoholic drink, whether
6 carbonated or not, including, but not limited to, soda water,
7 cola, fruit juice, vegetable juice, carbonated water, and all
8 other preparations commonly known as soft drinks of whatever
9 kind or description that are contained in any closed or sealed
10 bottle, can, carton, or container, regardless of size; but
11 "soft drinks" does not include coffee, tea, non-carbonated
12 water, infant formula, milk or milk products as defined in the
13 Grade A Pasteurized Milk and Milk Products Act, or drinks
14 containing 50% or more natural fruit or vegetable juice.
15 Notwithstanding any other provisions of this Act,
16 beginning September 1, 2009, "soft drinks" means non-alcoholic
17 beverages that contain natural or artificial sweeteners. "Soft
18 drinks" does not include beverages that contain milk or milk
19 products, soy, rice or similar milk substitutes, or greater
20 than 50% of vegetable or fruit juice by volume.
21 Until August 1, 2009, and notwithstanding any other
22 provisions of this Act, "food for human consumption that is to
23 be consumed off the premises where it is sold" includes all
24 food sold through a vending machine, except soft drinks and
25 food products that are dispensed hot from a vending machine,
26 regardless of the location of the vending machine. Beginning
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1 August 1, 2009, and notwithstanding any other provisions of
2 this Act, "food for human consumption that is to be consumed
3 off the premises where it is sold" includes all food sold
4 through a vending machine, except soft drinks, candy, and food
5 products that are dispensed hot from a vending machine,
6 regardless of the location of the vending machine.
7 Notwithstanding any other provisions of this Act,
8 beginning September 1, 2009, "food for human consumption that
9 is to be consumed off the premises where it is sold" does not
10 include candy. For purposes of this Section, "candy" means a
11 preparation of sugar, honey, or other natural or artificial
12 sweeteners in combination with chocolate, fruits, nuts or
13 other ingredients or flavorings in the form of bars, drops, or
14 pieces. "Candy" does not include any preparation that contains
15 flour or requires refrigeration.
16 Notwithstanding any other provisions of this Act,
17 beginning September 1, 2009, "nonprescription medicines and
18 drugs" does not include grooming and hygiene products. For
19 purposes of this Section, "grooming and hygiene products"
20 includes, but is not limited to, soaps and cleaning solutions,
21 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
22 lotions and screens, unless those products are available by
23 prescription only, regardless of whether the products meet the
24 definition of "over-the-counter-drugs". For the purposes of
25 this paragraph, "over-the-counter-drug" means a drug for human
26 use that contains a label that identifies the product as a drug
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1 as required by 21 CFR 201.66. The "over-the-counter-drug"
2 label includes:
3 (A) a "Drug Facts" panel; or
4 (B) a statement of the "active ingredient(s)" with a
5 list of those ingredients contained in the compound,
6 substance or preparation.
7 Beginning on January 1, 2014 (the effective date of Public
8 Act 98-122), "prescription and nonprescription medicines and
9 drugs" includes medical cannabis purchased from a registered
10 dispensing organization under the Compassionate Use of Medical
11 Cannabis Program Act.
12 As used in this Section, "adult use cannabis" means
13 cannabis subject to tax under the Cannabis Cultivation
14 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
15 and does not include cannabis subject to tax under the
16 Compassionate Use of Medical Cannabis Program Act.
17 If the property that is purchased at retail from a
18 retailer is acquired outside Illinois and used outside
19 Illinois before being brought to Illinois for use here and is
20 taxable under this Act, the "selling price" on which the tax is
21 computed shall be reduced by an amount that represents a
22 reasonable allowance for depreciation for the period of prior
23 out-of-state use. No depreciation is allowed in cases where
24 the tax under this Act is imposed on lease receipts.
25 (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
26 Section 20-5, eff. 4-19-22; 102-700, Article 60, Section
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1 60-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff.
2 4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-592,
3 eff. 1-1-25; 103-781, eff. 8-5-24; revised 11-26-24.)
4 Section 10. The Service Use Tax Act is amended by changing
5 Section 3-10 as follows:
6 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
7 Sec. 3-10. Rate of tax. Unless otherwise provided in this
8 Section, the tax imposed by this Act is at the rate of 6.25% of
9 the selling price of tangible personal property transferred,
10 including, on and after January 1, 2025, transferred by lease,
11 as an incident to the sale of service, but, for the purpose of
12 computing this tax, in no event shall the selling price be less
13 than the cost price of the property to the serviceman.
14 Beginning on July 1, 2000 and through December 31, 2000,
15 with respect to motor fuel, as defined in Section 1.1 of the
16 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
17 the Use Tax Act, the tax is imposed at the rate of 1.25%.
18 With respect to gasohol, as defined in the Use Tax Act, the
19 tax imposed by this Act applies to (i) 70% of the selling price
20 of property transferred as an incident to the sale of service
21 on or after January 1, 1990, and before July 1, 2003, (ii) 80%
22 of the selling price of property transferred as an incident to
23 the sale of service on or after July 1, 2003 and on or before
24 July 1, 2017, (iii) 100% of the selling price of property
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1 transferred as an incident to the sale of service after July 1,
2 2017 and before January 1, 2024, (iv) 90% of the selling price
3 of property transferred as an incident to the sale of service
4 on or after January 1, 2024 and on or before December 31, 2028,
5 and (v) 100% of the selling price of property transferred as an
6 incident to the sale of service after December 31, 2028. If, at
7 any time, however, the tax under this Act on sales of gasohol,
8 as defined in the Use Tax Act, is imposed at the rate of 1.25%,
9 then the tax imposed by this Act applies to 100% of the
10 proceeds of sales of gasohol made during that time.
11 With respect to mid-range ethanol blends, as defined in
12 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
13 applies to (i) 80% of the selling price of property
14 transferred as an incident to the sale of service on or after
15 January 1, 2024 and on or before December 31, 2028 and (ii)
16 100% of the selling price of property transferred as an
17 incident to the sale of service after December 31, 2028. If, at
18 any time, however, the tax under this Act on sales of mid-range
19 ethanol blends is imposed at the rate of 1.25%, then the tax
20 imposed by this Act applies to 100% of the selling price of
21 mid-range ethanol blends transferred as an incident to the
22 sale of service during that time.
23 With respect to majority blended ethanol fuel, as defined
24 in the Use Tax Act, the tax imposed by this Act does not apply
25 to the selling price of property transferred as an incident to
26 the sale of service on or after July 1, 2003 and on or before
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1 December 31, 2028 but applies to 100% of the selling price
2 thereafter.
3 With respect to biodiesel blends, as defined in the Use
4 Tax Act, with no less than 1% and no more than 10% biodiesel,
5 the tax imposed by this Act applies to (i) 80% of the selling
6 price of property transferred as an incident to the sale of
7 service on or after July 1, 2003 and on or before December 31,
8 2018 and (ii) 100% of the proceeds of the selling price after
9 December 31, 2018 and before January 1, 2024. On and after
10 January 1, 2024 and on or before December 31, 2030, the
11 taxation of biodiesel, renewable diesel, and biodiesel blends
12 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
13 at any time, however, the tax under this Act on sales of
14 biodiesel blends, as defined in the Use Tax Act, with no less
15 than 1% and no more than 10% biodiesel is imposed at the rate
16 of 1.25%, then the tax imposed by this Act applies to 100% of
17 the proceeds of sales of biodiesel blends with no less than 1%
18 and no more than 10% biodiesel made during that time.
19 With respect to biodiesel, as defined in the Use Tax Act,
20 and biodiesel blends, as defined in the Use Tax Act, with more
21 than 10% but no more than 99% biodiesel, the tax imposed by
22 this Act does not apply to the proceeds of the selling price of
23 property transferred as an incident to the sale of service on
24 or after July 1, 2003 and on or before December 31, 2023. On
25 and after January 1, 2024 and on or before December 31, 2030,
26 the taxation of biodiesel, renewable diesel, and biodiesel
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1 blends shall be as provided in Section 3-5.1 of the Use Tax
2 Act.
3 At the election of any registered serviceman made for each
4 fiscal year, sales of service in which the aggregate annual
5 cost price of tangible personal property transferred as an
6 incident to the sales of service is less than 35%, or 75% in
7 the case of servicemen transferring prescription drugs or
8 servicemen engaged in graphic arts production, of the
9 aggregate annual total gross receipts from all sales of
10 service, the tax imposed by this Act shall be based on the
11 serviceman's cost price of the tangible personal property
12 transferred as an incident to the sale of those services.
13 Until July 1, 2022 and from July 1, 2023 through December
14 31, 2025, the tax shall be imposed at the rate of 1% on food
15 prepared for immediate consumption and transferred incident to
16 a sale of service subject to this Act or the Service Occupation
17 Tax Act by an entity licensed under the Hospital Licensing
18 Act, the Nursing Home Care Act, the Assisted Living and Shared
19 Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
20 Specialized Mental Health Rehabilitation Act of 2013, or the
21 Child Care Act of 1969, or an entity that holds a permit issued
22 pursuant to the Life Care Facilities Act. Until July 1, 2022
23 and from July 1, 2023 through December 31, 2025, the tax shall
24 also be imposed at the rate of 1% on food for human consumption
25 that is to be consumed off the premises where it is sold (other
26 than alcoholic beverages, food consisting of or infused with
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1 adult use cannabis, soft drinks, and food that has been
2 prepared for immediate consumption and is not otherwise
3 included in this paragraph).
4 Beginning on July 1, 2022 and until July 1, 2023, the tax
5 shall be imposed at the rate of 0% on food prepared for
6 immediate consumption and transferred incident to a sale of
7 service subject to this Act or the Service Occupation Tax Act
8 by an entity licensed under the Hospital Licensing Act, the
9 Nursing Home Care Act, the Assisted Living and Shared Housing
10 Act, the ID/DD Community Care Act, the MC/DD Act, the
11 Specialized Mental Health Rehabilitation Act of 2013, or the
12 Child Care Act of 1969, or an entity that holds a permit issued
13 pursuant to the Life Care Facilities Act. Beginning on July 1,
14 2022 and until July 1, 2023, the tax shall also be imposed at
15 the rate of 0% on food for human consumption that is to be
16 consumed off the premises where it is sold (other than
17 alcoholic beverages, food consisting of or infused with adult
18 use cannabis, soft drinks, and food that has been prepared for
19 immediate consumption and is not otherwise included in this
20 paragraph).
21 On and an after January 1, 2026, food prepared for
22 immediate consumption and transferred incident to a sale of
23 service subject to this Act or the Service Occupation Tax Act
24 by an entity licensed under the Hospital Licensing Act, the
25 Nursing Home Care Act, the Assisted Living and Shared Housing
26 Act, the ID/DD Community Care Act, the MC/DD Act, the
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1 Specialized Mental Health Rehabilitation Act of 2013, or the
2 Child Care Act of 1969, or by an entity that holds a permit
3 issued pursuant to the Life Care Facilities Act is exempt from
4 the tax under this Act. On and after January 1, 2026, food for
5 human consumption that is to be consumed off the premises
6 where it is sold (other than alcoholic beverages, food
7 consisting of or infused with adult use cannabis, soft drinks,
8 candy, and food that has been prepared for immediate
9 consumption and is not otherwise included in this paragraph)
10 is exempt from the tax under this Act.
11 With respect to the following items, the tax is imposed at
12 the rate of 1%:
13 (1) food prepared for immediate consumption and
14 transferred incident to a sale of service subject to this
15 Act or the Service Occupation Tax Act by an entity
16 licensed under the Hospital Licensing Act, the Nursing
17 Home Care Act, the Assisted Living and Shared Housing Act,
18 the ID/DD Community Care Act, the MC/DD Act, the
19 Specialized Mental Health Rehabilitation Act of 2013, or
20 the Child Care Act of 1969, or an entity that holds a
21 permit issued pursuant to the Life Care Facilities Act;
22 (2) food for human consumption that is to be consumed
23 off the premises where it is sold (other than alcoholic
24 beverages, food consisting of or infused with adult use
25 cannabis, soft drinks, and food that has been prepared for
26 immediate consumption);
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1 (3) prescription and nonprescription medicines, drugs,
2 and medical appliances;
3 (4) products classified as Class III medical devices
4 by the United States Food and Drug Administration that are
5 used for cancer treatment pursuant to a prescription, as
6 well as any accessories and components related to those
7 devices;
8 (5) modifications to a motor vehicle for the purpose
9 of rendering it usable by a person with a disability;
10 (6) insulin, blood sugar testing materials, syringes,
11 and needles used by human diabetics; and
12 (7) diapers and baby wipes.
13 The tax shall be imposed at the rate of 1% on prescription
14 and nonprescription medicines, drugs, medical appliances,
15 products classified as Class III medical devices by the United
16 States Food and Drug Administration that are used for cancer
17 treatment pursuant to a prescription, as well as any
18 accessories and components related to those devices,
19 modifications to a motor vehicle for the purpose of rendering
20 it usable by a person with a disability, and insulin, blood
21 sugar testing materials, syringes, and needles used by human
22 diabetics. For the purposes of this Section, until September
23 1, 2009: the term "soft drinks" means any complete, finished,
24 ready-to-use, non-alcoholic drink, whether carbonated or not,
25 including, but not limited to, soda water, cola, fruit juice,
26 vegetable juice, carbonated water, and all other preparations
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1 commonly known as soft drinks of whatever kind or description
2 that are contained in any closed or sealed bottle, can,
3 carton, or container, regardless of size; but "soft drinks"
4 does not include coffee, tea, non-carbonated water, infant
5 formula, milk or milk products as defined in the Grade A
6 Pasteurized Milk and Milk Products Act, or drinks containing
7 50% or more natural fruit or vegetable juice.
8 Notwithstanding any other provisions of this Act,
9 beginning September 1, 2009, "soft drinks" means non-alcoholic
10 beverages that contain natural or artificial sweeteners. "Soft
11 drinks" does not include beverages that contain milk or milk
12 products, soy, rice or similar milk substitutes, or greater
13 than 50% of vegetable or fruit juice by volume.
14 Until August 1, 2009, and notwithstanding any other
15 provisions of this Act, "food for human consumption that is to
16 be consumed off the premises where it is sold" includes all
17 food sold through a vending machine, except soft drinks and
18 food products that are dispensed hot from a vending machine,
19 regardless of the location of the vending machine. Beginning
20 August 1, 2009, and notwithstanding any other provisions of
21 this Act, "food for human consumption that is to be consumed
22 off the premises where it is sold" includes all food sold
23 through a vending machine, except soft drinks, candy, and food
24 products that are dispensed hot from a vending machine,
25 regardless of the location of the vending machine.
26 Notwithstanding any other provisions of this Act,
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1 beginning September 1, 2009, "food for human consumption that
2 is to be consumed off the premises where it is sold" does not
3 include candy. For purposes of this Section, "candy" means a
4 preparation of sugar, honey, or other natural or artificial
5 sweeteners in combination with chocolate, fruits, nuts or
6 other ingredients or flavorings in the form of bars, drops, or
7 pieces. "Candy" does not include any preparation that contains
8 flour or requires refrigeration.
9 Notwithstanding any other provisions of this Act,
10 beginning September 1, 2009, "nonprescription medicines and
11 drugs" does not include grooming and hygiene products. For
12 purposes of this Section, "grooming and hygiene products"
13 includes, but is not limited to, soaps and cleaning solutions,
14 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
15 lotions and screens, unless those products are available by
16 prescription only, regardless of whether the products meet the
17 definition of "over-the-counter-drugs". For the purposes of
18 this paragraph, "over-the-counter-drug" means a drug for human
19 use that contains a label that identifies the product as a drug
20 as required by 21 CFR 201.66. The "over-the-counter-drug"
21 label includes:
22 (A) a "Drug Facts" panel; or
23 (B) a statement of the "active ingredient(s)" with a
24 list of those ingredients contained in the compound,
25 substance or preparation.
26 Beginning on January 1, 2014 (the effective date of Public
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1 Act 98-122), "prescription and nonprescription medicines and
2 drugs" includes medical cannabis purchased from a registered
3 dispensing organization under the Compassionate Use of Medical
4 Cannabis Program Act.
5 As used in this Section, "adult use cannabis" means
6 cannabis subject to tax under the Cannabis Cultivation
7 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
8 and does not include cannabis subject to tax under the
9 Compassionate Use of Medical Cannabis Program Act.
10 If the property that is acquired from a serviceman is
11 acquired outside Illinois and used outside Illinois before
12 being brought to Illinois for use here and is taxable under
13 this Act, the "selling price" on which the tax is computed
14 shall be reduced by an amount that represents a reasonable
15 allowance for depreciation for the period of prior
16 out-of-state use. No depreciation is allowed in cases where
17 the tax under this Act is imposed on lease receipts.
18 (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
19 102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700,
20 Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23;
21 103-154, eff. 6-30-23; 103-592, eff. 1-1-25; 103-781, eff.
22 8-5-24; revised 11-26-24.)
23 Section 15. The Service Occupation Tax Act is amended by
24 changing Section 3-10 as follows:
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1 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
2 Sec. 3-10. Rate of tax. Unless otherwise provided in this
3 Section, the tax imposed by this Act is at the rate of 6.25% of
4 the "selling price", as defined in Section 2 of the Service Use
5 Tax Act, of the tangible personal property, including, on and
6 after January 1, 2025, tangible personal property transferred
7 by lease. For the purpose of computing this tax, in no event
8 shall the "selling price" be less than the cost price to the
9 serviceman of the tangible personal property transferred. The
10 selling price of each item of tangible personal property
11 transferred as an incident of a sale of service may be shown as
12 a distinct and separate item on the serviceman's billing to
13 the service customer. If the selling price is not so shown, the
14 selling price of the tangible personal property is deemed to
15 be 50% of the serviceman's entire billing to the service
16 customer. When, however, a serviceman contracts to design,
17 develop, and produce special order machinery or equipment, the
18 tax imposed by this Act shall be based on the serviceman's cost
19 price of the tangible personal property transferred incident
20 to the completion of the contract.
21 Beginning on July 1, 2000 and through December 31, 2000,
22 with respect to motor fuel, as defined in Section 1.1 of the
23 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
24 the Use Tax Act, the tax is imposed at the rate of 1.25%.
25 With respect to gasohol, as defined in the Use Tax Act, the
26 tax imposed by this Act shall apply to (i) 70% of the cost
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1 price of property transferred as an incident to the sale of
2 service on or after January 1, 1990, and before July 1, 2003,
3 (ii) 80% of the selling price of property transferred as an
4 incident to the sale of service on or after July 1, 2003 and on
5 or before July 1, 2017, (iii) 100% of the selling price of
6 property transferred as an incident to the sale of service
7 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
8 the selling price of property transferred as an incident to
9 the sale of service on or after January 1, 2024 and on or
10 before December 31, 2028, and (v) 100% of the selling price of
11 property transferred as an incident to the sale of service
12 after December 31, 2028. If, at any time, however, the tax
13 under this Act on sales of gasohol, as defined in the Use Tax
14 Act, is imposed at the rate of 1.25%, then the tax imposed by
15 this Act applies to 100% of the proceeds of sales of gasohol
16 made during that time.
17 With respect to mid-range ethanol blends, as defined in
18 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
19 applies to (i) 80% of the selling price of property
20 transferred as an incident to the sale of service on or after
21 January 1, 2024 and on or before December 31, 2028 and (ii)
22 100% of the selling price of property transferred as an
23 incident to the sale of service after December 31, 2028. If, at
24 any time, however, the tax under this Act on sales of mid-range
25 ethanol blends is imposed at the rate of 1.25%, then the tax
26 imposed by this Act applies to 100% of the selling price of
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1 mid-range ethanol blends transferred as an incident to the
2 sale of service during that time.
3 With respect to majority blended ethanol fuel, as defined
4 in the Use Tax Act, the tax imposed by this Act does not apply
5 to the selling price of property transferred as an incident to
6 the sale of service on or after July 1, 2003 and on or before
7 December 31, 2028 but applies to 100% of the selling price
8 thereafter.
9 With respect to biodiesel blends, as defined in the Use
10 Tax Act, with no less than 1% and no more than 10% biodiesel,
11 the tax imposed by this Act applies to (i) 80% of the selling
12 price of property transferred as an incident to the sale of
13 service on or after July 1, 2003 and on or before December 31,
14 2018 and (ii) 100% of the proceeds of the selling price after
15 December 31, 2018 and before January 1, 2024. On and after
16 January 1, 2024 and on or before December 31, 2030, the
17 taxation of biodiesel, renewable diesel, and biodiesel blends
18 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
19 at any time, however, the tax under this Act on sales of
20 biodiesel blends, as defined in the Use Tax Act, with no less
21 than 1% and no more than 10% biodiesel is imposed at the rate
22 of 1.25%, then the tax imposed by this Act applies to 100% of
23 the proceeds of sales of biodiesel blends with no less than 1%
24 and no more than 10% biodiesel made during that time.
25 With respect to biodiesel, as defined in the Use Tax Act,
26 and biodiesel blends, as defined in the Use Tax Act, with more
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1 than 10% but no more than 99% biodiesel material, the tax
2 imposed by this Act does not apply to the proceeds of the
3 selling price of property transferred as an incident to the
4 sale of service on or after July 1, 2003 and on or before
5 December 31, 2023. On and after January 1, 2024 and on or
6 before December 31, 2030, the taxation of biodiesel, renewable
7 diesel, and biodiesel blends shall be as provided in Section
8 3-5.1 of the Use Tax Act.
9 At the election of any registered serviceman made for each
10 fiscal year, sales of service in which the aggregate annual
11 cost price of tangible personal property transferred as an
12 incident to the sales of service is less than 35%, or 75% in
13 the case of servicemen transferring prescription drugs or
14 servicemen engaged in graphic arts production, of the
15 aggregate annual total gross receipts from all sales of
16 service, the tax imposed by this Act shall be based on the
17 serviceman's cost price of the tangible personal property
18 transferred incident to the sale of those services.
19 Until July 1, 2022 and from July 1, 2023 through December
20 31, 2025, the tax shall be imposed at the rate of 1% on food
21 prepared for immediate consumption and transferred incident to
22 a sale of service subject to this Act or the Service Use Tax
23 Act by an entity licensed under the Hospital Licensing Act,
24 the Nursing Home Care Act, the Assisted Living and Shared
25 Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
26 Specialized Mental Health Rehabilitation Act of 2013, or the
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1 Child Care Act of 1969, or an entity that holds a permit issued
2 pursuant to the Life Care Facilities Act. Until July 1, 2022
3 and from July 1, 2023 through December 31, 2025, the tax shall
4 also be imposed at the rate of 1% on food for human consumption
5 that is to be consumed off the premises where it is sold (other
6 than alcoholic beverages, food consisting of or infused with
7 adult use cannabis, soft drinks, and food that has been
8 prepared for immediate consumption and is not otherwise
9 included in this paragraph).
10 Beginning on July 1, 2022 and until July 1, 2023, the tax
11 shall be imposed at the rate of 0% on food prepared for
12 immediate consumption and transferred incident to a sale of
13 service subject to this Act or the Service Use Tax Act by an
14 entity licensed under the Hospital Licensing Act, the Nursing
15 Home Care Act, the Assisted Living and Shared Housing Act, the
16 ID/DD Community Care Act, the MC/DD Act, the Specialized
17 Mental Health Rehabilitation Act of 2013, or the Child Care
18 Act of 1969, or an entity that holds a permit issued pursuant
19 to the Life Care Facilities Act. Beginning July 1, 2022 and
20 until July 1, 2023, the tax shall also be imposed at the rate
21 of 0% on food for human consumption that is to be consumed off
22 the premises where it is sold (other than alcoholic beverages,
23 food consisting of or infused with adult use cannabis, soft
24 drinks, and food that has been prepared for immediate
25 consumption and is not otherwise included in this paragraph).
26 On and after January 1, 2026, food prepared for immediate
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1 consumption and transferred incident to a sale of service
2 subject to this Act or the Service Use Tax Act by an entity
3 licensed under the Hospital Licensing Act, the Nursing Home
4 Care Act, the Assisted Living and Shared Housing Act, the
5 ID/DD Community Care Act, the MC/DD Act, the Specialized
6 Mental Health Rehabilitation Act of 2013, or the Child Care
7 Act of 1969, or an entity that holds a permit issued pursuant
8 to the Life Care Facilities Act is exempt from the tax imposed
9 by this Act. On and after January 1, 2026, food for human
10 consumption that is to be consumed off the premises where it is
11 sold (other than alcoholic beverages, food consisting of or
12 infused with adult use cannabis, soft drinks, candy, and food
13 that has been prepared for immediate consumption and is not
14 otherwise included in this paragraph) is exempt from the tax
15 imposed by this Act.
16 With respect to the following items, the tax is imposed at
17 the rate of 1%:
18 (1) food prepared for immediate consumption and
19 transferred incident to a sale of service subject to this
20 Act or the Service Occupation Tax Act by an entity
21 licensed under the Hospital Licensing Act, the Nursing
22 Home Care Act, the Assisted Living and Shared Housing Act,
23 the ID/DD Community Care Act, the MC/DD Act, the
24 Specialized Mental Health Rehabilitation Act of 2013, or
25 the Child Care Act of 1969, or an entity that holds a
26 permit issued pursuant to the Life Care Facilities Act;
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1 (2) food for human consumption that is to be consumed
2 off the premises where it is sold (other than alcoholic
3 beverages, food consisting of or infused with adult use
4 cannabis, soft drinks, and food that has been prepared for
5 immediate consumption);
6 (3) prescription and nonprescription medicines, drugs,
7 and medical appliances;
8 (4) products classified as Class III medical devices
9 by the United States Food and Drug Administration that are
10 used for cancer treatment pursuant to a prescription, as
11 well as any accessories and components related to those
12 devices;
13 (5) modifications to a motor vehicle for the purpose
14 of rendering it usable by a person with a disability;
15 (6) insulin, blood sugar testing materials, syringes,
16 and needles used by human diabetics; and
17 (7) diapers and baby wipes.
18 The tax shall be imposed at the rate of 1% on prescription
19 and nonprescription medicines, drugs, medical appliances,
20 products classified as Class III medical devices by the United
21 States Food and Drug Administration that are used for cancer
22 treatment pursuant to a prescription, as well as any
23 accessories and components related to those devices,
24 modifications to a motor vehicle for the purpose of rendering
25 it usable by a person with a disability, and insulin, blood
26 sugar testing materials, syringes, and needles used by human
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1 diabetics. For the purposes of this Section, until September
2 1, 2009: the term "soft drinks" means any complete, finished,
3 ready-to-use, non-alcoholic drink, whether carbonated or not,
4 including, but not limited to, soda water, cola, fruit juice,
5 vegetable juice, carbonated water, and all other preparations
6 commonly known as soft drinks of whatever kind or description
7 that are contained in any closed or sealed can, carton, or
8 container, regardless of size; but "soft drinks" does not
9 include coffee, tea, non-carbonated water, infant formula,
10 milk or milk products as defined in the Grade A Pasteurized
11 Milk and Milk Products Act, or drinks containing 50% or more
12 natural fruit or vegetable juice.
13 Notwithstanding any other provisions of this Act,
14 beginning September 1, 2009, "soft drinks" means non-alcoholic
15 beverages that contain natural or artificial sweeteners. "Soft
16 drinks" does not include beverages that contain milk or milk
17 products, soy, rice or similar milk substitutes, or greater
18 than 50% of vegetable or fruit juice by volume.
19 Until August 1, 2009, and notwithstanding any other
20 provisions of this Act, "food for human consumption that is to
21 be consumed off the premises where it is sold" includes all
22 food sold through a vending machine, except soft drinks and
23 food products that are dispensed hot from a vending machine,
24 regardless of the location of the vending machine. Beginning
25 August 1, 2009, and notwithstanding any other provisions of
26 this Act, "food for human consumption that is to be consumed
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1 off the premises where it is sold" includes all food sold
2 through a vending machine, except soft drinks, candy, and food
3 products that are dispensed hot from a vending machine,
4 regardless of the location of the vending machine.
5 Notwithstanding any other provisions of this Act,
6 beginning September 1, 2009, "food for human consumption that
7 is to be consumed off the premises where it is sold" does not
8 include candy. For purposes of this Section, "candy" means a
9 preparation of sugar, honey, or other natural or artificial
10 sweeteners in combination with chocolate, fruits, nuts or
11 other ingredients or flavorings in the form of bars, drops, or
12 pieces. "Candy" does not include any preparation that contains
13 flour or requires refrigeration.
14 Notwithstanding any other provisions of this Act,
15 beginning September 1, 2009, "nonprescription medicines and
16 drugs" does not include grooming and hygiene products. For
17 purposes of this Section, "grooming and hygiene products"
18 includes, but is not limited to, soaps and cleaning solutions,
19 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
20 lotions and screens, unless those products are available by
21 prescription only, regardless of whether the products meet the
22 definition of "over-the-counter-drugs". For the purposes of
23 this paragraph, "over-the-counter-drug" means a drug for human
24 use that contains a label that identifies the product as a drug
25 as required by 21 CFR 201.66. The "over-the-counter-drug"
26 label includes:
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1 (A) a "Drug Facts" panel; or
2 (B) a statement of the "active ingredient(s)" with a
3 list of those ingredients contained in the compound,
4 substance or preparation.
5 Beginning on January 1, 2014 (the effective date of Public
6 Act 98-122), "prescription and nonprescription medicines and
7 drugs" includes medical cannabis purchased from a registered
8 dispensing organization under the Compassionate Use of Medical
9 Cannabis Program Act.
10 As used in this Section, "adult use cannabis" means
11 cannabis subject to tax under the Cannabis Cultivation
12 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
13 and does not include cannabis subject to tax under the
14 Compassionate Use of Medical Cannabis Program Act.
15 (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
16 102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700,
17 Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23;
18 103-154, eff. 6-30-23; 103-592, eff. 1-1-25; 103-781, eff.
19 8-5-24; revised 11-26-24.)
20 Section 20. The Retailers' Occupation Tax Act is amended
21 by changing Section 2-10 as follows:
22 (35 ILCS 120/2-10) from Ch. 120, par. 441-10
23 Sec. 2-10. Rate of tax. Unless otherwise provided in this
24 Section, the tax imposed by this Act is at the rate of 6.25% of
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1 gross receipts from sales, which, on and after January 1,
2 2025, includes leases, of tangible personal property made in
3 the course of business.
4 Beginning on July 1, 2000 and through December 31, 2000,
5 with respect to motor fuel, as defined in Section 1.1 of the
6 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
7 the Use Tax Act, the tax is imposed at the rate of 1.25%.
8 Beginning on August 6, 2010 through August 15, 2010, and
9 beginning again on August 5, 2022 through August 14, 2022,
10 with respect to sales tax holiday items as defined in Section
11 2-8 of this Act, the tax is imposed at the rate of 1.25%.
12 Within 14 days after July 1, 2000 (the effective date of
13 Public Act 91-872), each retailer of motor fuel and gasohol
14 shall cause the following notice to be posted in a prominently
15 visible place on each retail dispensing device that is used to
16 dispense motor fuel or gasohol in the State of Illinois: "As of
17 July 1, 2000, the State of Illinois has eliminated the State's
18 share of sales tax on motor fuel and gasohol through December
19 31, 2000. The price on this pump should reflect the
20 elimination of the tax." The notice shall be printed in bold
21 print on a sign that is no smaller than 4 inches by 8 inches.
22 The sign shall be clearly visible to customers. Any retailer
23 who fails to post or maintain a required sign through December
24 31, 2000 is guilty of a petty offense for which the fine shall
25 be $500 per day per each retail premises where a violation
26 occurs.
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1 With respect to gasohol, as defined in the Use Tax Act, the
2 tax imposed by this Act applies to (i) 70% of the proceeds of
3 sales made on or after January 1, 1990, and before July 1,
4 2003, (ii) 80% of the proceeds of sales made on or after July
5 1, 2003 and on or before July 1, 2017, (iii) 100% of the
6 proceeds of sales made after July 1, 2017 and prior to January
7 1, 2024, (iv) 90% of the proceeds of sales made on or after
8 January 1, 2024 and on or before December 31, 2028, and (v)
9 100% of the proceeds of sales made after December 31, 2028. If,
10 at any time, however, the tax under this Act on sales of
11 gasohol, as defined in the Use Tax Act, is imposed at the rate
12 of 1.25%, then the tax imposed by this Act applies to 100% of
13 the proceeds of sales of gasohol made during that time.
14 With respect to mid-range ethanol blends, as defined in
15 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
16 applies to (i) 80% of the proceeds of sales made on or after
17 January 1, 2024 and on or before December 31, 2028 and (ii)
18 100% of the proceeds of sales made after December 31, 2028. If,
19 at any time, however, the tax under this Act on sales of
20 mid-range ethanol blends is imposed at the rate of 1.25%, then
21 the tax imposed by this Act applies to 100% of the proceeds of
22 sales of mid-range ethanol blends made during that time.
23 With respect to majority blended ethanol fuel, as defined
24 in the Use Tax Act, the tax imposed by this Act does not apply
25 to the proceeds of sales made on or after July 1, 2003 and on
26 or before December 31, 2028 but applies to 100% of the proceeds
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1 of sales made thereafter.
2 With respect to biodiesel blends, as defined in the Use
3 Tax Act, with no less than 1% and no more than 10% biodiesel,
4 the tax imposed by this Act applies to (i) 80% of the proceeds
5 of sales made on or after July 1, 2003 and on or before
6 December 31, 2018 and (ii) 100% of the proceeds of sales made
7 after December 31, 2018 and before January 1, 2024. On and
8 after January 1, 2024 and on or before December 31, 2030, the
9 taxation of biodiesel, renewable diesel, and biodiesel blends
10 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
11 at any time, however, the tax under this Act on sales of
12 biodiesel blends, as defined in the Use Tax Act, with no less
13 than 1% and no more than 10% biodiesel is imposed at the rate
14 of 1.25%, then the tax imposed by this Act applies to 100% of
15 the proceeds of sales of biodiesel blends with no less than 1%
16 and no more than 10% biodiesel made during that time.
17 With respect to biodiesel, as defined in the Use Tax Act,
18 and biodiesel blends, as defined in the Use Tax Act, with more
19 than 10% but no more than 99% biodiesel, the tax imposed by
20 this Act does not apply to the proceeds of sales made on or
21 after July 1, 2003 and on or before December 31, 2023. On and
22 after January 1, 2024 and on or before December 31, 2030, the
23 taxation of biodiesel, renewable diesel, and biodiesel blends
24 shall be as provided in Section 3-5.1 of the Use Tax Act.
25 With respect to the following items, the tax is imposed at
26 the rate of 1%:
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1 (1) food for human consumption that is to be consumed
2 off the premises where it is sold (other than alcoholic
3 beverages, food consisting of or infused with adult use
4 cannabis, soft drinks, and food that has been prepared for
5 immediate consumption);
6 (2) prescription and nonprescription medicines, drugs,
7 and medical appliances;
8 (3) products classified as Class III medical devices
9 by the United States Food and Drug Administration that are
10 used for cancer treatment pursuant to a prescription, as
11 well as any accessories and components related to those
12 devices;
13 (4) modifications to a motor vehicle for the purpose
14 of rendering it usable by a person with a disability;
15 (5) insulin, blood sugar testing materials, syringes,
16 and needles used by human diabetics; and
17 (6) diapers and baby wipes.
18 Until July 1, 2022 and from July 1, 2023 through December
19 31, 2025, with respect to food for human consumption that is to
20 be consumed off the premises where it is sold (other than
21 alcoholic beverages, food consisting of or infused with adult
22 use cannabis, soft drinks, and food that has been prepared for
23 immediate consumption), the tax is imposed at the rate of 1%.
24 Beginning July 1, 2022 and until July 1, 2023, with respect to
25 food for human consumption that is to be consumed off the
26 premises where it is sold (other than alcoholic beverages,
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1 food consisting of or infused with adult use cannabis, soft
2 drinks, and food that has been prepared for immediate
3 consumption), the tax is imposed at the rate of 0%. On and
4 after January 1, 2026, food for human consumption that is to be
5 consumed off the premises where it is sold (other than
6 alcoholic beverages, food consisting of or infused with adult
7 use cannabis, soft drinks, candy, and food that has been
8 prepared for immediate consumption) is exempt from the tax
9 imposed by this Act.
10 With respect to prescription and nonprescription
11 medicines, drugs, medical appliances, products classified as
12 Class III medical devices by the United States Food and Drug
13 Administration that are used for cancer treatment pursuant to
14 a prescription, as well as any accessories and components
15 related to those devices, modifications to a motor vehicle for
16 the purpose of rendering it usable by a person with a
17 disability, and insulin, blood sugar testing materials,
18 syringes, and needles used by human diabetics, the tax is
19 imposed at the rate of 1%. For the purposes of this Section,
20 until September 1, 2009: the term "soft drinks" means any
21 complete, finished, ready-to-use, non-alcoholic drink, whether
22 carbonated or not, including, but not limited to, soda water,
23 cola, fruit juice, vegetable juice, carbonated water, and all
24 other preparations commonly known as soft drinks of whatever
25 kind or description that are contained in any closed or sealed
26 bottle, can, carton, or container, regardless of size; but
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1 "soft drinks" does not include coffee, tea, non-carbonated
2 water, infant formula, milk or milk products as defined in the
3 Grade A Pasteurized Milk and Milk Products Act, or drinks
4 containing 50% or more natural fruit or vegetable juice.
5 Notwithstanding any other provisions of this Act,
6 beginning September 1, 2009, "soft drinks" means non-alcoholic
7 beverages that contain natural or artificial sweeteners. "Soft
8 drinks" does not include beverages that contain milk or milk
9 products, soy, rice or similar milk substitutes, or greater
10 than 50% of vegetable or fruit juice by volume.
11 Until August 1, 2009, and notwithstanding any other
12 provisions of this Act, "food for human consumption that is to
13 be consumed off the premises where it is sold" includes all
14 food sold through a vending machine, except soft drinks and
15 food products that are dispensed hot from a vending machine,
16 regardless of the location of the vending machine. Beginning
17 August 1, 2009, and notwithstanding any other provisions of
18 this Act, "food for human consumption that is to be consumed
19 off the premises where it is sold" includes all food sold
20 through a vending machine, except soft drinks, candy, and food
21 products that are dispensed hot from a vending machine,
22 regardless of the location of the vending machine.
23 Notwithstanding any other provisions of this Act,
24 beginning September 1, 2009, "food for human consumption that
25 is to be consumed off the premises where it is sold" does not
26 include candy. For purposes of this Section, "candy" means a
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1 preparation of sugar, honey, or other natural or artificial
2 sweeteners in combination with chocolate, fruits, nuts or
3 other ingredients or flavorings in the form of bars, drops, or
4 pieces. "Candy" does not include any preparation that contains
5 flour or requires refrigeration.
6 Notwithstanding any other provisions of this Act,
7 beginning September 1, 2009, "nonprescription medicines and
8 drugs" does not include grooming and hygiene products. For
9 purposes of this Section, "grooming and hygiene products"
10 includes, but is not limited to, soaps and cleaning solutions,
11 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
12 lotions and screens, unless those products are available by
13 prescription only, regardless of whether the products meet the
14 definition of "over-the-counter-drugs". For the purposes of
15 this paragraph, "over-the-counter-drug" means a drug for human
16 use that contains a label that identifies the product as a drug
17 as required by 21 CFR 201.66. The "over-the-counter-drug"
18 label includes:
19 (A) a "Drug Facts" panel; or
20 (B) a statement of the "active ingredient(s)" with a
21 list of those ingredients contained in the compound,
22 substance or preparation.
23 Beginning on January 1, 2014 (the effective date of Public
24 Act 98-122), "prescription and nonprescription medicines and
25 drugs" includes medical cannabis purchased from a registered
26 dispensing organization under the Compassionate Use of Medical
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