Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1673 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 SB1673 Introduced 2/5/2025, by Sen. Christopher Belt SYNOPSIS AS INTRODUCED: 30 ILCS 105/6z-18 from Ch. 127, par. 142z-1830 ILCS 105/6z-20 from Ch. 127, par. 142z-2035 ILCS 105/3-1035 ILCS 120/2-10 Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that, from August 6, 2025 through August 8, 2025, and from August 13, 2025 through August 15, 2025, the tax imposed under the Acts on clothing and school supplies shall be at the rate of 1.25% (instead of 6.25%). Effective immediately. LRB104 08295 HLH 18346 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1673 Introduced 2/5/2025, by Sen. Christopher Belt SYNOPSIS AS INTRODUCED: 30 ILCS 105/6z-18 from Ch. 127, par. 142z-1830 ILCS 105/6z-20 from Ch. 127, par. 142z-2035 ILCS 105/3-1035 ILCS 120/2-10 30 ILCS 105/6z-18 from Ch. 127, par. 142z-18 30 ILCS 105/6z-20 from Ch. 127, par. 142z-20 35 ILCS 105/3-10 35 ILCS 120/2-10 Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that, from August 6, 2025 through August 8, 2025, and from August 13, 2025 through August 15, 2025, the tax imposed under the Acts on clothing and school supplies shall be at the rate of 1.25% (instead of 6.25%). Effective immediately. LRB104 08295 HLH 18346 b LRB104 08295 HLH 18346 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1673 Introduced 2/5/2025, by Sen. Christopher Belt SYNOPSIS AS INTRODUCED:
3	3	30 ILCS 105/6z-18 from Ch. 127, par. 142z-1830 ILCS 105/6z-20 from Ch. 127, par. 142z-2035 ILCS 105/3-1035 ILCS 120/2-10 30 ILCS 105/6z-18 from Ch. 127, par. 142z-18 30 ILCS 105/6z-20 from Ch. 127, par. 142z-20 35 ILCS 105/3-10 35 ILCS 120/2-10
4	4	30 ILCS 105/6z-18 from Ch. 127, par. 142z-18
5	5	30 ILCS 105/6z-20 from Ch. 127, par. 142z-20
6	6	35 ILCS 105/3-10
7	7	35 ILCS 120/2-10
8	8	Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that, from August 6, 2025 through August 8, 2025, and from August 13, 2025 through August 15, 2025, the tax imposed under the Acts on clothing and school supplies shall be at the rate of 1.25% (instead of 6.25%). Effective immediately.
9	9	LRB104 08295 HLH 18346 b LRB104 08295 HLH 18346 b
10	10	LRB104 08295 HLH 18346 b
11	11	A BILL FOR
12	12	SB1673LRB104 08295 HLH 18346 b SB1673 LRB104 08295 HLH 18346 b
13	13	SB1673 LRB104 08295 HLH 18346 b
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 State Finance Act is amended by changing
18	18	5 Sections 6z-18 and 6z-20 as follows:
19	19	6 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
20	20	7 Sec. 6z-18. Local Government Tax Fund. A portion of the
21	21	8 money paid into the Local Government Tax Fund from sales of
22	22	9 tangible personal property taxed at the 1% rate under the
23	23	10 Retailers' Occupation Tax Act and the Service Occupation Tax
24	24	11 Act, which occurred in municipalities, shall be distributed to
25	25	12 each municipality based upon the sales which occurred in that
26	26	13 municipality. The remainder shall be distributed to each
27	27	14 county based upon the sales which occurred in the
28	28	15 unincorporated area of that county.
29	29	16 Moneys transferred from the Grocery Tax Replacement Fund
30	30	17 to the Local Government Tax Fund under Section 6z-130 shall be
31	31	18 treated under this Section in the same manner as if they had
32	32	19 been remitted with the return on which they were reported.
33	33	20 A portion of the money paid into the Local Government Tax
34	34	21 Fund from the 6.25% general use tax rate on the selling price
35	35	22 of tangible personal property which is purchased outside
36	36	23 Illinois at retail from a retailer and which is titled or
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40	40	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1673 Introduced 2/5/2025, by Sen. Christopher Belt SYNOPSIS AS INTRODUCED:
41	41	30 ILCS 105/6z-18 from Ch. 127, par. 142z-1830 ILCS 105/6z-20 from Ch. 127, par. 142z-2035 ILCS 105/3-1035 ILCS 120/2-10 30 ILCS 105/6z-18 from Ch. 127, par. 142z-18 30 ILCS 105/6z-20 from Ch. 127, par. 142z-20 35 ILCS 105/3-10 35 ILCS 120/2-10
42	42	30 ILCS 105/6z-18 from Ch. 127, par. 142z-18
43	43	30 ILCS 105/6z-20 from Ch. 127, par. 142z-20
44	44	35 ILCS 105/3-10
45	45	35 ILCS 120/2-10
46	46	Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that, from August 6, 2025 through August 8, 2025, and from August 13, 2025 through August 15, 2025, the tax imposed under the Acts on clothing and school supplies shall be at the rate of 1.25% (instead of 6.25%). Effective immediately.
47	47	LRB104 08295 HLH 18346 b LRB104 08295 HLH 18346 b
48	48	LRB104 08295 HLH 18346 b
49	49	A BILL FOR
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55	55	30 ILCS 105/6z-18 from Ch. 127, par. 142z-18
56	56	30 ILCS 105/6z-20 from Ch. 127, par. 142z-20
57	57	35 ILCS 105/3-10
58	58	35 ILCS 120/2-10
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77	77	1 registered by any agency of this State's government shall be
78	78	2 distributed to municipalities as provided in this paragraph.
79	79	3 Each municipality shall receive the amount attributable to
80	80	4 sales for which Illinois addresses for titling or registration
81	81	5 purposes are given as being in such municipality. The
82	82	6 remainder of the money paid into the Local Government Tax Fund
83	83	7 from such sales shall be distributed to counties. Each county
84	84	8 shall receive the amount attributable to sales for which
85	85	9 Illinois addresses for titling or registration purposes are
86	86	10 given as being located in the unincorporated area of such
87	87	11 county.
88	88	12 A portion of the money paid into the Local Government Tax
89	89	13 Fund from the 6.25% general rate (and, beginning July 1, 2000
90	90	14 and through December 31, 2000, the 1.25% rate on motor fuel and
91	91	15 gasohol, and beginning on August 6, 2010 through August 15,
92	92	16 2010, and beginning again on August 5, 2022 through August 14,
93	93	17 2022, and beginning again from August 6, 2025 through August
94	94	18 11, 2025, and from August 13, 2025 through August 15, 2025, the
95	95	19 1.25% rate on sales tax holiday items) on sales subject to
96	96	20 taxation under the Retailers' Occupation Tax Act and the
97	97	21 Service Occupation Tax Act, which occurred in municipalities,
98	98	22 shall be distributed to each municipality, based upon the
99	99	23 sales which occurred in that municipality. The remainder shall
100	100	24 be distributed to each county, based upon the sales which
101	101	25 occurred in the unincorporated area of such county.
102	102	26 For the purpose of determining allocation to the local
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113	113	1 government unit, a retail sale by a producer of coal or other
114	114	2 mineral mined in Illinois is a sale at retail at the place
115	115	3 where the coal or other mineral mined in Illinois is extracted
116	116	4 from the earth. This paragraph does not apply to coal or other
117	117	5 mineral when it is delivered or shipped by the seller to the
118	118	6 purchaser at a point outside Illinois so that the sale is
119	119	7 exempt under the United States Constitution as a sale in
120	120	8 interstate or foreign commerce.
121	121	9 Whenever the Department determines that a refund of money
122	122	10 paid into the Local Government Tax Fund should be made to a
123	123	11 claimant instead of issuing a credit memorandum, the
124	124	12 Department shall notify the State Comptroller, who shall cause
125	125	13 the order to be drawn for the amount specified, and to the
126	126	14 person named, in such notification from the Department. Such
127	127	15 refund shall be paid by the State Treasurer out of the Local
128	128	16 Government Tax Fund.
129	129	17 As soon as possible after the first day of each month,
130	130	18 beginning January 1, 2011, upon certification of the
131	131	19 Department of Revenue, the Comptroller shall order
132	132	20 transferred, and the Treasurer shall transfer, to the STAR
133	133	21 Bonds Revenue Fund the local sales tax increment, as defined
134	134	22 in the Innovation Development and Economy Act, collected
135	135	23 during the second preceding calendar month for sales within a
136	136	24 STAR bond district and deposited into the Local Government Tax
137	137	25 Fund, less 3% of that amount, which shall be transferred into
138	138	26 the Tax Compliance and Administration Fund and shall be used
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149	149	1 by the Department, subject to appropriation, to cover the
150	150	2 costs of the Department in administering the Innovation
151	151	3 Development and Economy Act.
152	152	4 After the monthly transfer to the STAR Bonds Revenue Fund,
153	153	5 on or before the 25th day of each calendar month, the
154	154	6 Department shall prepare and certify to the Comptroller the
155	155	7 disbursement of stated sums of money to named municipalities
156	156	8 and counties, the municipalities and counties to be those
157	157	9 entitled to distribution of taxes or penalties paid to the
158	158	10 Department during the second preceding calendar month. The
159	159	11 amount to be paid to each municipality or county shall be the
160	160	12 amount (not including credit memoranda) collected during the
161	161	13 second preceding calendar month by the Department and paid
162	162	14 into the Local Government Tax Fund, plus an amount the
163	163	15 Department determines is necessary to offset any amounts which
164	164	16 were erroneously paid to a different taxing body, and not
165	165	17 including an amount equal to the amount of refunds made during
166	166	18 the second preceding calendar month by the Department, and not
167	167	19 including any amount which the Department determines is
168	168	20 necessary to offset any amounts which are payable to a
169	169	21 different taxing body but were erroneously paid to the
170	170	22 municipality or county, and not including any amounts that are
171	171	23 transferred to the STAR Bonds Revenue Fund. Within 10 days
172	172	24 after receipt, by the Comptroller, of the disbursement
173	173	25 certification to the municipalities and counties, provided for
174	174	26 in this Section to be given to the Comptroller by the
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185	185	1 Department, the Comptroller shall cause the orders to be drawn
186	186	2 for the respective amounts in accordance with the directions
187	187	3 contained in such certification.
188	188	4 When certifying the amount of monthly disbursement to a
189	189	5 municipality or county under this Section, the Department
190	190	6 shall increase or decrease that amount by an amount necessary
191	191	7 to offset any misallocation of previous disbursements. The
192	192	8 offset amount shall be the amount erroneously disbursed within
193	193	9 the 6 months preceding the time a misallocation is discovered.
194	194	10 The provisions directing the distributions from the
195	195	11 special fund in the State treasury provided for in this
196	196	12 Section shall constitute an irrevocable and continuing
197	197	13 appropriation of all amounts as provided herein. The State
198	198	14 Treasurer and State Comptroller are hereby authorized to make
199	199	15 distributions as provided in this Section.
200	200	16 In construing any development, redevelopment, annexation,
201	201	17 preannexation, or other lawful agreement in effect prior to
202	202	18 September 1, 1990, which describes or refers to receipts from
203	203	19 a county or municipal retailers' occupation tax, use tax or
204	204	20 service occupation tax which now cannot be imposed, such
205	205	21 description or reference shall be deemed to include the
206	206	22 replacement revenue for such abolished taxes, distributed from
207	207	23 the Local Government Tax Fund.
208	208	24 As soon as possible after March 8, 2013 (the effective
209	209	25 date of Public Act 98-3), the State Comptroller shall order
210	210	26 and the State Treasurer shall transfer $6,600,000 from the
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221	221	1 Local Government Tax Fund to the Illinois State Medical
222	222	2 Disciplinary Fund.
223	223	3 (Source: P.A. 102-700, Article 60, Section 60-10, eff.
224	224	4 4-19-22; 102-700, Article 65, Section 65-15, eff. 4-19-22;
225	225	5 103-154, eff. 6-30-23.)
226	226	6 (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
227	227	7 Sec. 6z-20. County and Mass Transit District Fund. Of the
228	228	8 money received from the 6.25% general rate (and, beginning
229	229	9 July 1, 2000 and through December 31, 2000, the 1.25% rate on
230	230	10 motor fuel and gasohol, and beginning on August 6, 2010
231	231	11 through August 15, 2010, and beginning again on August 5, 2022
232	232	12 through August 14, 2022, and beginning again from August 6,
233	233	13 2025 through August 11, 2025, and from August 13, 2025 through
234	234	14 August 15, 2025, the 1.25% rate on sales tax holiday items) on
235	235	15 sales subject to taxation under the Retailers' Occupation Tax
236	236	16 Act and Service Occupation Tax Act and paid into the County and
237	237	17 Mass Transit District Fund, distribution to the Regional
238	238	18 Transportation Authority tax fund, created pursuant to Section
239	239	19 4.03 of the Regional Transportation Authority Act, for deposit
240	240	20 therein shall be made based upon the retail sales occurring in
241	241	21 a county having more than 3,000,000 inhabitants. The remainder
242	242	22 shall be distributed to each county having 3,000,000 or fewer
243	243	23 inhabitants based upon the retail sales occurring in each such
244	244	24 county.
245	245	25 For the purpose of determining allocation to the local
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256	256	1 government unit, a retail sale by a producer of coal or other
257	257	2 mineral mined in Illinois is a sale at retail at the place
258	258	3 where the coal or other mineral mined in Illinois is extracted
259	259	4 from the earth. This paragraph does not apply to coal or other
260	260	5 mineral when it is delivered or shipped by the seller to the
261	261	6 purchaser at a point outside Illinois so that the sale is
262	262	7 exempt under the United States Constitution as a sale in
263	263	8 interstate or foreign commerce.
264	264	9 Of the money received from the 6.25% general use tax rate
265	265	10 on tangible personal property which is purchased outside
266	266	11 Illinois at retail from a retailer and which is titled or
267	267	12 registered by any agency of this State's government and paid
268	268	13 into the County and Mass Transit District Fund, the amount for
269	269	14 which Illinois addresses for titling or registration purposes
270	270	15 are given as being in each county having more than 3,000,000
271	271	16 inhabitants shall be distributed into the Regional
272	272	17 Transportation Authority tax fund, created pursuant to Section
273	273	18 4.03 of the Regional Transportation Authority Act. The
274	274	19 remainder of the money paid from such sales shall be
275	275	20 distributed to each county based on sales for which Illinois
276	276	21 addresses for titling or registration purposes are given as
277	277	22 being located in the county. Any money paid into the Regional
278	278	23 Transportation Authority Occupation and Use Tax Replacement
279	279	24 Fund from the County and Mass Transit District Fund prior to
280	280	25 January 14, 1991, which has not been paid to the Authority
281	281	26 prior to that date, shall be transferred to the Regional
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292	292	1 Transportation Authority tax fund.
293	293	2 Whenever the Department determines that a refund of money
294	294	3 paid into the County and Mass Transit District Fund should be
295	295	4 made to a claimant instead of issuing a credit memorandum, the
296	296	5 Department shall notify the State Comptroller, who shall cause
297	297	6 the order to be drawn for the amount specified, and to the
298	298	7 person named, in such notification from the Department. Such
299	299	8 refund shall be paid by the State Treasurer out of the County
300	300	9 and Mass Transit District Fund.
301	301	10 As soon as possible after the first day of each month,
302	302	11 beginning January 1, 2011, upon certification of the
303	303	12 Department of Revenue, the Comptroller shall order
304	304	13 transferred, and the Treasurer shall transfer, to the STAR
305	305	14 Bonds Revenue Fund the local sales tax increment, as defined
306	306	15 in the Innovation Development and Economy Act, collected
307	307	16 during the second preceding calendar month for sales within a
308	308	17 STAR bond district and deposited into the County and Mass
309	309	18 Transit District Fund, less 3% of that amount, which shall be
310	310	19 transferred into the Tax Compliance and Administration Fund
311	311	20 and shall be used by the Department, subject to appropriation,
312	312	21 to cover the costs of the Department in administering the
313	313	22 Innovation Development and Economy Act.
314	314	23 After the monthly transfer to the STAR Bonds Revenue Fund,
315	315	24 on or before the 25th day of each calendar month, the
316	316	25 Department shall prepare and certify to the Comptroller the
317	317	26 disbursement of stated sums of money to the Regional
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328	328	1 Transportation Authority and to named counties, the counties
329	329	2 to be those entitled to distribution, as hereinabove provided,
330	330	3 of taxes or penalties paid to the Department during the second
331	331	4 preceding calendar month. The amount to be paid to the
332	332	5 Regional Transportation Authority and each county having
333	333	6 3,000,000 or fewer inhabitants shall be the amount (not
334	334	7 including credit memoranda) collected during the second
335	335	8 preceding calendar month by the Department and paid into the
336	336	9 County and Mass Transit District Fund, plus an amount the
337	337	10 Department determines is necessary to offset any amounts which
338	338	11 were erroneously paid to a different taxing body, and not
339	339	12 including an amount equal to the amount of refunds made during
340	340	13 the second preceding calendar month by the Department, and not
341	341	14 including any amount which the Department determines is
342	342	15 necessary to offset any amounts which were payable to a
343	343	16 different taxing body but were erroneously paid to the
344	344	17 Regional Transportation Authority or county, and not including
345	345	18 any amounts that are transferred to the STAR Bonds Revenue
346	346	19 Fund, less 1.5% of the amount to be paid to the Regional
347	347	20 Transportation Authority, which shall be transferred into the
348	348	21 Tax Compliance and Administration Fund. The Department, at the
349	349	22 time of each monthly disbursement to the Regional
350	350	23 Transportation Authority, shall prepare and certify to the
351	351	24 State Comptroller the amount to be transferred into the Tax
352	352	25 Compliance and Administration Fund under this Section. Within
353	353	26 10 days after receipt, by the Comptroller, of the disbursement
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364	364	1 certification to the Regional Transportation Authority,
365	365	2 counties, and the Tax Compliance and Administration Fund
366	366	3 provided for in this Section to be given to the Comptroller by
367	367	4 the Department, the Comptroller shall cause the orders to be
368	368	5 drawn for the respective amounts in accordance with the
369	369	6 directions contained in such certification.
370	370	7 When certifying the amount of a monthly disbursement to
371	371	8 the Regional Transportation Authority or to a county under
372	372	9 this Section, the Department shall increase or decrease that
373	373	10 amount by an amount necessary to offset any misallocation of
374	374	11 previous disbursements. The offset amount shall be the amount
375	375	12 erroneously disbursed within the 6 months preceding the time a
376	376	13 misallocation is discovered.
377	377	14 The provisions directing the distributions from the
378	378	15 special fund in the State Treasury provided for in this
379	379	16 Section and from the Regional Transportation Authority tax
380	380	17 fund created by Section 4.03 of the Regional Transportation
381	381	18 Authority Act shall constitute an irrevocable and continuing
382	382	19 appropriation of all amounts as provided herein. The State
383	383	20 Treasurer and State Comptroller are hereby authorized to make
384	384	21 distributions as provided in this Section.
385	385	22 In construing any development, redevelopment, annexation,
386	386	23 preannexation or other lawful agreement in effect prior to
387	387	24 September 1, 1990, which describes or refers to receipts from
388	388	25 a county or municipal retailers' occupation tax, use tax or
389	389	26 service occupation tax which now cannot be imposed, such
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400	400	1 description or reference shall be deemed to include the
401	401	2 replacement revenue for such abolished taxes, distributed from
402	402	3 the County and Mass Transit District Fund or Local Government
403	403	4 Distributive Fund, as the case may be.
404	404	5 (Source: P.A. 102-700, eff. 4-19-22.)
405	405	6 Section 10. The Use Tax Act is amended by changing Section
406	406	7 3-10 as follows:
407	407	8 (35 ILCS 105/3-10)
408	408	9 Sec. 3-10. Rate of tax. Unless otherwise provided in this
409	409	10 Section, the tax imposed by this Act is at the rate of 6.25% of
410	410	11 either the selling price or the fair market value, if any, of
411	411	12 the tangible personal property, which, on and after January 1,
412	412	13 2025, includes leases of tangible personal property. In all
413	413	14 cases where property functionally used or consumed is the same
414	414	15 as the property that was purchased at retail, then the tax is
415	415	16 imposed on the selling price of the property. In all cases
416	416	17 where property functionally used or consumed is a by-product
417	417	18 or waste product that has been refined, manufactured, or
418	418	19 produced from property purchased at retail, then the tax is
419	419	20 imposed on the lower of the fair market value, if any, of the
420	420	21 specific property so used in this State or on the selling price
421	421	22 of the property purchased at retail. For purposes of this
422	422	23 Section "fair market value" means the price at which property
423	423	24 would change hands between a willing buyer and a willing
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434	434	1 seller, neither being under any compulsion to buy or sell and
435	435	2 both having reasonable knowledge of the relevant facts. The
436	436	3 fair market value shall be established by Illinois sales by
437	437	4 the taxpayer of the same property as that functionally used or
438	438	5 consumed, or if there are no such sales by the taxpayer, then
439	439	6 comparable sales or purchases of property of like kind and
440	440	7 character in Illinois.
441	441	8 Beginning on July 1, 2000 and through December 31, 2000,
442	442	9 with respect to motor fuel, as defined in Section 1.1 of the
443	443	10 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
444	444	11 the Use Tax Act, the tax is imposed at the rate of 1.25%.
445	445	12 Beginning on August 6, 2010 through August 15, 2010, and
446	446	13 beginning again on August 5, 2022 through August 14, 2022, and
447	447	14 beginning again from August 6, 2025 through August 8, 2025 and
448	448	15 from August 13, 2025 through August 15, 2025, with respect to
449	449	16 sales tax holiday items as defined in Section 3-6 of this Act,
450	450	17 the tax is imposed at the rate of 1.25%.
451	451	18 With respect to gasohol, the tax imposed by this Act
452	452	19 applies to (i) 70% of the proceeds of sales made on or after
453	453	20 January 1, 1990, and before July 1, 2003, (ii) 80% of the
454	454	21 proceeds of sales made on or after July 1, 2003 and on or
455	455	22 before July 1, 2017, (iii) 100% of the proceeds of sales made
456	456	23 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
457	457	24 the proceeds of sales made on or after January 1, 2024 and on
458	458	25 or before December 31, 2028, and (v) 100% of the proceeds of
459	459	26 sales made after December 31, 2028. If, at any time, however,
460	460
461	461
462	462
463	463
464	464
465	465	SB1673 - 12 - LRB104 08295 HLH 18346 b
466	466
467	467
468	468	SB1673- 13 -LRB104 08295 HLH 18346 b SB1673 - 13 - LRB104 08295 HLH 18346 b
469	469	SB1673 - 13 - LRB104 08295 HLH 18346 b
470	470	1 the tax under this Act on sales of gasohol is imposed at the
471	471	2 rate of 1.25%, then the tax imposed by this Act applies to 100%
472	472	3 of the proceeds of sales of gasohol made during that time.
473	473	4 With respect to mid-range ethanol blends, the tax imposed
474	474	5 by this Act applies to (i) 80% of the proceeds of sales made on
475	475	6 or after January 1, 2024 and on or before December 31, 2028 and
476	476	7 (ii) 100% of the proceeds of sales made thereafter. If, at any
477	477	8 time, however, the tax under this Act on sales of mid-range
478	478	9 ethanol blends is imposed at the rate of 1.25%, then the tax
479	479	10 imposed by this Act applies to 100% of the proceeds of sales of
480	480	11 mid-range ethanol blends made during that time.
481	481	12 With respect to majority blended ethanol fuel, the tax
482	482	13 imposed by this Act does not apply to the proceeds of sales
483	483	14 made on or after July 1, 2003 and on or before December 31,
484	484	15 2028 but applies to 100% of the proceeds of sales made
485	485	16 thereafter.
486	486	17 With respect to biodiesel blends with no less than 1% and
487	487	18 no more than 10% biodiesel, the tax imposed by this Act applies
488	488	19 to (i) 80% of the proceeds of sales made on or after July 1,
489	489	20 2003 and on or before December 31, 2018 and (ii) 100% of the
490	490	21 proceeds of sales made after December 31, 2018 and before
491	491	22 January 1, 2024. On and after January 1, 2024 and on or before
492	492	23 December 31, 2030, the taxation of biodiesel, renewable
493	493	24 diesel, and biodiesel blends shall be as provided in Section
494	494	25 3-5.1. If, at any time, however, the tax under this Act on
495	495	26 sales of biodiesel blends with no less than 1% and no more than
496	496
497	497
498	498
499	499
500	500
501	501	SB1673 - 13 - LRB104 08295 HLH 18346 b
502	502
503	503
504	504	SB1673- 14 -LRB104 08295 HLH 18346 b SB1673 - 14 - LRB104 08295 HLH 18346 b
505	505	SB1673 - 14 - LRB104 08295 HLH 18346 b
506	506	1 10% biodiesel is imposed at the rate of 1.25%, then the tax
507	507	2 imposed by this Act applies to 100% of the proceeds of sales of
508	508	3 biodiesel blends with no less than 1% and no more than 10%
509	509	4 biodiesel made during that time.
510	510	5 With respect to biodiesel and biodiesel blends with more
511	511	6 than 10% but no more than 99% biodiesel, the tax imposed by
512	512	7 this Act does not apply to the proceeds of sales made on or
513	513	8 after July 1, 2003 and on or before December 31, 2023. On and
514	514	9 after January 1, 2024 and on or before December 31, 2030, the
515	515	10 taxation of biodiesel, renewable diesel, and biodiesel blends
516	516	11 shall be as provided in Section 3-5.1.
517	517	12 Until July 1, 2022 and from July 1, 2023 through December
518	518	13 31, 2025, with respect to food for human consumption that is to
519	519	14 be consumed off the premises where it is sold (other than
520	520	15 alcoholic beverages, food consisting of or infused with adult
521	521	16 use cannabis, soft drinks, and food that has been prepared for
522	522	17 immediate consumption), the tax is imposed at the rate of 1%.
523	523	18 Beginning on July 1, 2022 and until July 1, 2023, with respect
524	524	19 to food for human consumption that is to be consumed off the
525	525	20 premises where it is sold (other than alcoholic beverages,
526	526	21 food consisting of or infused with adult use cannabis, soft
527	527	22 drinks, and food that has been prepared for immediate
528	528	23 consumption), the tax is imposed at the rate of 0%. On and
529	529	24 after January 1, 2026, food for human consumption that is to be
530	530	25 consumed off the premises where it is sold (other than
531	531	26 alcoholic beverages, food consisting of or infused with adult
532	532
533	533
534	534
535	535
536	536
537	537	SB1673 - 14 - LRB104 08295 HLH 18346 b
538	538
539	539
540	540	SB1673- 15 -LRB104 08295 HLH 18346 b SB1673 - 15 - LRB104 08295 HLH 18346 b
541	541	SB1673 - 15 - LRB104 08295 HLH 18346 b
542	542	1 use cannabis, soft drinks, candy, and food that has been
543	543	2 prepared for immediate consumption) is exempt from the tax
544	544	3 imposed by this Act.
545	545	4 With respect to prescription and nonprescription
546	546	5 medicines, drugs, medical appliances, products classified as
547	547	6 Class III medical devices by the United States Food and Drug
548	548	7 Administration that are used for cancer treatment pursuant to
549	549	8 a prescription, as well as any accessories and components
550	550	9 related to those devices, modifications to a motor vehicle for
551	551	10 the purpose of rendering it usable by a person with a
552	552	11 disability, and insulin, blood sugar testing materials,
553	553	12 syringes, and needles used by human diabetics, the tax is
554	554	13 imposed at the rate of 1%. For the purposes of this Section,
555	555	14 until September 1, 2009: the term "soft drinks" means any
556	556	15 complete, finished, ready-to-use, non-alcoholic drink, whether
557	557	16 carbonated or not, including, but not limited to, soda water,
558	558	17 cola, fruit juice, vegetable juice, carbonated water, and all
559	559	18 other preparations commonly known as soft drinks of whatever
560	560	19 kind or description that are contained in any closed or sealed
561	561	20 bottle, can, carton, or container, regardless of size; but
562	562	21 "soft drinks" does not include coffee, tea, non-carbonated
563	563	22 water, infant formula, milk or milk products as defined in the
564	564	23 Grade A Pasteurized Milk and Milk Products Act, or drinks
565	565	24 containing 50% or more natural fruit or vegetable juice.
566	566	25 Notwithstanding any other provisions of this Act,
567	567	26 beginning September 1, 2009, "soft drinks" means non-alcoholic
568	568
569	569
570	570
571	571
572	572
573	573	SB1673 - 15 - LRB104 08295 HLH 18346 b
574	574
575	575
576	576	SB1673- 16 -LRB104 08295 HLH 18346 b SB1673 - 16 - LRB104 08295 HLH 18346 b
577	577	SB1673 - 16 - LRB104 08295 HLH 18346 b
578	578	1 beverages that contain natural or artificial sweeteners. "Soft
579	579	2 drinks" does not include beverages that contain milk or milk
580	580	3 products, soy, rice or similar milk substitutes, or greater
581	581	4 than 50% of vegetable or fruit juice by volume.
582	582	5 Until August 1, 2009, and notwithstanding any other
583	583	6 provisions of this Act, "food for human consumption that is to
584	584	7 be consumed off the premises where it is sold" includes all
585	585	8 food sold through a vending machine, except soft drinks and
586	586	9 food products that are dispensed hot from a vending machine,
587	587	10 regardless of the location of the vending machine. Beginning
588	588	11 August 1, 2009, and notwithstanding any other provisions of
589	589	12 this Act, "food for human consumption that is to be consumed
590	590	13 off the premises where it is sold" includes all food sold
591	591	14 through a vending machine, except soft drinks, candy, and food
592	592	15 products that are dispensed hot from a vending machine,
593	593	16 regardless of the location of the vending machine.
594	594	17 Notwithstanding any other provisions of this Act,
595	595	18 beginning September 1, 2009, "food for human consumption that
596	596	19 is to be consumed off the premises where it is sold" does not
597	597	20 include candy. For purposes of this Section, "candy" means a
598	598	21 preparation of sugar, honey, or other natural or artificial
599	599	22 sweeteners in combination with chocolate, fruits, nuts or
600	600	23 other ingredients or flavorings in the form of bars, drops, or
601	601	24 pieces. "Candy" does not include any preparation that contains
602	602	25 flour or requires refrigeration.
603	603	26 Notwithstanding any other provisions of this Act,
604	604
605	605
606	606
607	607
608	608
609	609	SB1673 - 16 - LRB104 08295 HLH 18346 b
610	610
611	611
612	612	SB1673- 17 -LRB104 08295 HLH 18346 b SB1673 - 17 - LRB104 08295 HLH 18346 b
613	613	SB1673 - 17 - LRB104 08295 HLH 18346 b
614	614	1 beginning September 1, 2009, "nonprescription medicines and
615	615	2 drugs" does not include grooming and hygiene products. For
616	616	3 purposes of this Section, "grooming and hygiene products"
617	617	4 includes, but is not limited to, soaps and cleaning solutions,
618	618	5 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
619	619	6 lotions and screens, unless those products are available by
620	620	7 prescription only, regardless of whether the products meet the
621	621	8 definition of "over-the-counter-drugs". For the purposes of
622	622	9 this paragraph, "over-the-counter-drug" means a drug for human
623	623	10 use that contains a label that identifies the product as a drug
624	624	11 as required by 21 CFR 201.66. The "over-the-counter-drug"
625	625	12 label includes:
626	626	13 (A) a "Drug Facts" panel; or
627	627	14 (B) a statement of the "active ingredient(s)" with a
628	628	15 list of those ingredients contained in the compound,
629	629	16 substance or preparation.
630	630	17 Beginning on January 1, 2014 (the effective date of Public
631	631	18 Act 98-122), "prescription and nonprescription medicines and
632	632	19 drugs" includes medical cannabis purchased from a registered
633	633	20 dispensing organization under the Compassionate Use of Medical
634	634	21 Cannabis Program Act.
635	635	22 As used in this Section, "adult use cannabis" means
636	636	23 cannabis subject to tax under the Cannabis Cultivation
637	637	24 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
638	638	25 and does not include cannabis subject to tax under the
639	639	26 Compassionate Use of Medical Cannabis Program Act.
640	640
641	641
642	642
643	643
644	644
645	645	SB1673 - 17 - LRB104 08295 HLH 18346 b
646	646
647	647
648	648	SB1673- 18 -LRB104 08295 HLH 18346 b SB1673 - 18 - LRB104 08295 HLH 18346 b
649	649	SB1673 - 18 - LRB104 08295 HLH 18346 b
650	650	1 If the property that is purchased at retail from a
651	651	2 retailer is acquired outside Illinois and used outside
652	652	3 Illinois before being brought to Illinois for use here and is
653	653	4 taxable under this Act, the "selling price" on which the tax is
654	654	5 computed shall be reduced by an amount that represents a
655	655	6 reasonable allowance for depreciation for the period of prior
656	656	7 out-of-state use. No depreciation is allowed in cases where
657	657	8 the tax under this Act is imposed on lease receipts.
658	658	9 (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
659	659	10 Section 20-5, eff. 4-19-22; 102-700, Article 60, Section
660	660	11 60-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff.
661	661	12 4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-592,
662	662	13 eff. 1-1-25; 103-781, eff. 8-5-24; revised 11-26-24.)
663	663	14 Section 15. The Retailers' Occupation Tax Act is amended
664	664	15 by changing Section 2-10 as follows:
665	665	16 (35 ILCS 120/2-10)
666	666	17 Sec. 2-10. Rate of tax. Unless otherwise provided in this
667	667	18 Section, the tax imposed by this Act is at the rate of 6.25% of
668	668	19 gross receipts from sales, which, on and after January 1,
669	669	20 2025, includes leases, of tangible personal property made in
670	670	21 the course of business.
671	671	22 Beginning on July 1, 2000 and through December 31, 2000,
672	672	23 with respect to motor fuel, as defined in Section 1.1 of the
673	673	24 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
674	674
675	675
676	676
677	677
678	678
679	679	SB1673 - 18 - LRB104 08295 HLH 18346 b
680	680
681	681
682	682	SB1673- 19 -LRB104 08295 HLH 18346 b SB1673 - 19 - LRB104 08295 HLH 18346 b
683	683	SB1673 - 19 - LRB104 08295 HLH 18346 b
684	684	1 the Use Tax Act, the tax is imposed at the rate of 1.25%.
685	685	2 Beginning on August 6, 2010 through August 15, 2010, and
686	686	3 beginning again on August 5, 2022 through August 14, 2022, and
687	687	4 beginning again from August 6, 2025 through August 8, 2025 and
688	688	5 from August 13, 2025 through August 15, 2025, with respect to
689	689	6 sales tax holiday items as defined in Section 2-8 of this Act,
690	690	7 the tax is imposed at the rate of 1.25%.
691	691	8 Within 14 days after July 1, 2000 (the effective date of
692	692	9 Public Act 91-872), each retailer of motor fuel and gasohol
693	693	10 shall cause the following notice to be posted in a prominently
694	694	11 visible place on each retail dispensing device that is used to
695	695	12 dispense motor fuel or gasohol in the State of Illinois: "As of
696	696	13 July 1, 2000, the State of Illinois has eliminated the State's
697	697	14 share of sales tax on motor fuel and gasohol through December
698	698	15 31, 2000. The price on this pump should reflect the
699	699	16 elimination of the tax." The notice shall be printed in bold
700	700	17 print on a sign that is no smaller than 4 inches by 8 inches.
701	701	18 The sign shall be clearly visible to customers. Any retailer
702	702	19 who fails to post or maintain a required sign through December
703	703	20 31, 2000 is guilty of a petty offense for which the fine shall
704	704	21 be $500 per day per each retail premises where a violation
705	705	22 occurs.
706	706	23 With respect to gasohol, as defined in the Use Tax Act, the
707	707	24 tax imposed by this Act applies to (i) 70% of the proceeds of
708	708	25 sales made on or after January 1, 1990, and before July 1,
709	709	26 2003, (ii) 80% of the proceeds of sales made on or after July
710	710
711	711
712	712
713	713
714	714
715	715	SB1673 - 19 - LRB104 08295 HLH 18346 b
716	716
717	717
718	718	SB1673- 20 -LRB104 08295 HLH 18346 b SB1673 - 20 - LRB104 08295 HLH 18346 b
719	719	SB1673 - 20 - LRB104 08295 HLH 18346 b
720	720	1 1, 2003 and on or before July 1, 2017, (iii) 100% of the
721	721	2 proceeds of sales made after July 1, 2017 and prior to January
722	722	3 1, 2024, (iv) 90% of the proceeds of sales made on or after
723	723	4 January 1, 2024 and on or before December 31, 2028, and (v)
724	724	5 100% of the proceeds of sales made after December 31, 2028. If,
725	725	6 at any time, however, the tax under this Act on sales of
726	726	7 gasohol, as defined in the Use Tax Act, is imposed at the rate
727	727	8 of 1.25%, then the tax imposed by this Act applies to 100% of
728	728	9 the proceeds of sales of gasohol made during that time.
729	729	10 With respect to mid-range ethanol blends, as defined in
730	730	11 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
731	731	12 applies to (i) 80% of the proceeds of sales made on or after
732	732	13 January 1, 2024 and on or before December 31, 2028 and (ii)
733	733	14 100% of the proceeds of sales made after December 31, 2028. If,
734	734	15 at any time, however, the tax under this Act on sales of
735	735	16 mid-range ethanol blends is imposed at the rate of 1.25%, then
736	736	17 the tax imposed by this Act applies to 100% of the proceeds of
737	737	18 sales of mid-range ethanol blends made during that time.
738	738	19 With respect to majority blended ethanol fuel, as defined
739	739	20 in the Use Tax Act, the tax imposed by this Act does not apply
740	740	21 to the proceeds of sales made on or after July 1, 2003 and on
741	741	22 or before December 31, 2028 but applies to 100% of the proceeds
742	742	23 of sales made thereafter.
743	743	24 With respect to biodiesel blends, as defined in the Use
744	744	25 Tax Act, with no less than 1% and no more than 10% biodiesel,
745	745	26 the tax imposed by this Act applies to (i) 80% of the proceeds
746	746
747	747
748	748
749	749
750	750
751	751	SB1673 - 20 - LRB104 08295 HLH 18346 b
752	752
753	753
754	754	SB1673- 21 -LRB104 08295 HLH 18346 b SB1673 - 21 - LRB104 08295 HLH 18346 b
755	755	SB1673 - 21 - LRB104 08295 HLH 18346 b
756	756	1 of sales made on or after July 1, 2003 and on or before
757	757	2 December 31, 2018 and (ii) 100% of the proceeds of sales made
758	758	3 after December 31, 2018 and before January 1, 2024. On and
759	759	4 after January 1, 2024 and on or before December 31, 2030, the
760	760	5 taxation of biodiesel, renewable diesel, and biodiesel blends
761	761	6 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
762	762	7 at any time, however, the tax under this Act on sales of
763	763	8 biodiesel blends, as defined in the Use Tax Act, with no less
764	764	9 than 1% and no more than 10% biodiesel is imposed at the rate
765	765	10 of 1.25%, then the tax imposed by this Act applies to 100% of
766	766	11 the proceeds of sales of biodiesel blends with no less than 1%
767	767	12 and no more than 10% biodiesel made during that time.
768	768	13 With respect to biodiesel, as defined in the Use Tax Act,
769	769	14 and biodiesel blends, as defined in the Use Tax Act, with more
770	770	15 than 10% but no more than 99% biodiesel, the tax imposed by
771	771	16 this Act does not apply to the proceeds of sales made on or
772	772	17 after July 1, 2003 and on or before December 31, 2023. On and
773	773	18 after January 1, 2024 and on or before December 31, 2030, the
774	774	19 taxation of biodiesel, renewable diesel, and biodiesel blends
775	775	20 shall be as provided in Section 3-5.1 of the Use Tax Act.
776	776	21 Until July 1, 2022 and from July 1, 2023 through December
777	777	22 31, 2025, with respect to food for human consumption that is to
778	778	23 be consumed off the premises where it is sold (other than
779	779	24 alcoholic beverages, food consisting of or infused with adult
780	780	25 use cannabis, soft drinks, and food that has been prepared for
781	781	26 immediate consumption), the tax is imposed at the rate of 1%.
782	782
783	783
784	784
785	785
786	786
787	787	SB1673 - 21 - LRB104 08295 HLH 18346 b
788	788
789	789
790	790	SB1673- 22 -LRB104 08295 HLH 18346 b SB1673 - 22 - LRB104 08295 HLH 18346 b
791	791	SB1673 - 22 - LRB104 08295 HLH 18346 b
792	792	1 Beginning July 1, 2022 and until July 1, 2023, with respect to
793	793	2 food for human consumption that is to be consumed off the
794	794	3 premises where it is sold (other than alcoholic beverages,
795	795	4 food consisting of or infused with adult use cannabis, soft
796	796	5 drinks, and food that has been prepared for immediate
797	797	6 consumption), the tax is imposed at the rate of 0%. On and
798	798	7 after January 1, 2026, food for human consumption that is to be
799	799	8 consumed off the premises where it is sold (other than
800	800	9 alcoholic beverages, food consisting of or infused with adult
801	801	10 use cannabis, soft drinks, candy, and food that has been
802	802	11 prepared for immediate consumption) is exempt from the tax
803	803	12 imposed by this Act.
804	804	13 With respect to prescription and nonprescription
805	805	14 medicines, drugs, medical appliances, products classified as
806	806	15 Class III medical devices by the United States Food and Drug
807	807	16 Administration that are used for cancer treatment pursuant to
808	808	17 a prescription, as well as any accessories and components
809	809	18 related to those devices, modifications to a motor vehicle for
810	810	19 the purpose of rendering it usable by a person with a
811	811	20 disability, and insulin, blood sugar testing materials,
812	812	21 syringes, and needles used by human diabetics, the tax is
813	813	22 imposed at the rate of 1%. For the purposes of this Section,
814	814	23 until September 1, 2009: the term "soft drinks" means any
815	815	24 complete, finished, ready-to-use, non-alcoholic drink, whether
816	816	25 carbonated or not, including, but not limited to, soda water,
817	817	26 cola, fruit juice, vegetable juice, carbonated water, and all
818	818
819	819
820	820
821	821
822	822
823	823	SB1673 - 22 - LRB104 08295 HLH 18346 b
824	824
825	825
826	826	SB1673- 23 -LRB104 08295 HLH 18346 b SB1673 - 23 - LRB104 08295 HLH 18346 b
827	827	SB1673 - 23 - LRB104 08295 HLH 18346 b
828	828	1 other preparations commonly known as soft drinks of whatever
829	829	2 kind or description that are contained in any closed or sealed
830	830	3 bottle, can, carton, or container, regardless of size; but
831	831	4 "soft drinks" does not include coffee, tea, non-carbonated
832	832	5 water, infant formula, milk or milk products as defined in the
833	833	6 Grade A Pasteurized Milk and Milk Products Act, or drinks
834	834	7 containing 50% or more natural fruit or vegetable juice.
835	835	8 Notwithstanding any other provisions of this Act,
836	836	9 beginning September 1, 2009, "soft drinks" means non-alcoholic
837	837	10 beverages that contain natural or artificial sweeteners. "Soft
838	838	11 drinks" does not include beverages that contain milk or milk
839	839	12 products, soy, rice or similar milk substitutes, or greater
840	840	13 than 50% of vegetable or fruit juice by volume.
841	841	14 Until August 1, 2009, and notwithstanding any other
842	842	15 provisions of this Act, "food for human consumption that is to
843	843	16 be consumed off the premises where it is sold" includes all
844	844	17 food sold through a vending machine, except soft drinks and
845	845	18 food products that are dispensed hot from a vending machine,
846	846	19 regardless of the location of the vending machine. Beginning
847	847	20 August 1, 2009, and notwithstanding any other provisions of
848	848	21 this Act, "food for human consumption that is to be consumed
849	849	22 off the premises where it is sold" includes all food sold
850	850	23 through a vending machine, except soft drinks, candy, and food
851	851	24 products that are dispensed hot from a vending machine,
852	852	25 regardless of the location of the vending machine.
853	853	26 Notwithstanding any other provisions of this Act,
854	854
855	855
856	856
857	857
858	858
859	859	SB1673 - 23 - LRB104 08295 HLH 18346 b
860	860
861	861
862	862	SB1673- 24 -LRB104 08295 HLH 18346 b SB1673 - 24 - LRB104 08295 HLH 18346 b
863	863	SB1673 - 24 - LRB104 08295 HLH 18346 b
864	864	1 beginning September 1, 2009, "food for human consumption that
865	865	2 is to be consumed off the premises where it is sold" does not
866	866	3 include candy. For purposes of this Section, "candy" means a
867	867	4 preparation of sugar, honey, or other natural or artificial
868	868	5 sweeteners in combination with chocolate, fruits, nuts or
869	869	6 other ingredients or flavorings in the form of bars, drops, or
870	870	7 pieces. "Candy" does not include any preparation that contains
871	871	8 flour or requires refrigeration.
872	872	9 Notwithstanding any other provisions of this Act,
873	873	10 beginning September 1, 2009, "nonprescription medicines and
874	874	11 drugs" does not include grooming and hygiene products. For
875	875	12 purposes of this Section, "grooming and hygiene products"
876	876	13 includes, but is not limited to, soaps and cleaning solutions,
877	877	14 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
878	878	15 lotions and screens, unless those products are available by
879	879	16 prescription only, regardless of whether the products meet the
880	880	17 definition of "over-the-counter-drugs". For the purposes of
881	881	18 this paragraph, "over-the-counter-drug" means a drug for human
882	882	19 use that contains a label that identifies the product as a drug
883	883	20 as required by 21 CFR 201.66. The "over-the-counter-drug"
884	884	21 label includes:
885	885	22 (A) a "Drug Facts" panel; or
886	886	23 (B) a statement of the "active ingredient(s)" with a
887	887	24 list of those ingredients contained in the compound,
888	888	25 substance or preparation.
889	889	26 Beginning on January 1, 2014 (the effective date of Public
890	890
891	891
892	892
893	893
894	894
895	895	SB1673 - 24 - LRB104 08295 HLH 18346 b
896	896
897	897
898	898	SB1673- 25 -LRB104 08295 HLH 18346 b SB1673 - 25 - LRB104 08295 HLH 18346 b
899	899	SB1673 - 25 - LRB104 08295 HLH 18346 b
900	900	1 Act 98-122), "prescription and nonprescription medicines and
901	901	2 drugs" includes medical cannabis purchased from a registered
902	902	3 dispensing organization under the Compassionate Use of Medical
903	903	4 Cannabis Program Act.
904	904	5 As used in this Section, "adult use cannabis" means
905	905	6 cannabis subject to tax under the Cannabis Cultivation
906	906	7 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
907	907	8 and does not include cannabis subject to tax under the
908	908	9 Compassionate Use of Medical Cannabis Program Act.
909	909	10 (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
910	910	11 Section 20-20, eff. 4-19-22; 102-700, Article 60, Section
911	911	12 60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff.
912	912	13 4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-592,
913	913	14 eff. 1-1-25; 103-781, eff. 8-5-24; revised 11-26-24.)
914	914
915	915
916	916
917	917
918	918
919	919	SB1673 - 25 - LRB104 08295 HLH 18346 b