101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB3510

Introduced , by Rep. Karina Villa

SYNOPSIS AS INTRODUCED:

`30 ILCS 105/5.891 new`
`30 ILCS 105/6z-107 new`
`35 ILCS 105/3-10`
`35 ILCS 105/9`	`from Ch. 120, par. 439.9`
`35 ILCS 110/3-10`	`from Ch. 120, par. 439.33-10`
`35 ILCS 110/9`	`from Ch. 120, par. 439.39`
`35 ILCS 115/3-10`	`from Ch. 120, par. 439.103-10`
`35 ILCS 115/9`	`from Ch. 120, par. 439.109`
`35 ILCS 120/2-10`
`35 ILCS 120/3`	`from Ch. 120, par. 442`

Amends the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act. Imposes a 7% surcharge on firearms and firearm component parts. Amends the State Finance Act. Creates the Student Mental Health Services Fund. Provides that the proceeds from the surcharge shall be deposited into the Fund. Provides that moneys in the Fund shall be used by the State Board of Education to provide mental health services at any public, non-public, or parochial school in the State. Effective immediately.

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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 State Finance Act is amended by adding

5 Sections 5.891 and 6z-107 as follows:

6 (30 ILCS 105/5.891 new)

7 Sec. 5.891. The Student Mental Health Services Fund.

8 (30 ILCS 105/6z-107 new)

9 Sec. 6z-107. Student Mental Health Services Fund;

10 creation.

11 (a) The Student Mental Health Services Fund is hereby

12 created as a special fund in the State treasury. Moneys in the

13 Fund may be used by the State Board of Education to provide

14 mental health services at any public, non-public, or parochial

15 school in the State.

16 Section 10. The Use Tax Act is amended by changing Sections

17 3-10 and 9 as follows:

18 (35 ILCS 105/3-10)

19 Sec. 3-10. Rate of tax. Unless otherwise provided in this

20 Section, the tax imposed by this Act is at the rate of 6.25% of

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1 either the selling price or the fair market value, if any, of

2 the tangible personal property. In all cases where property

3 functionally used or consumed is the same as the property that

4 was purchased at retail, then the tax is imposed on the selling

5 price of the property. In all cases where property functionally

6 used or consumed is a by-product or waste product that has been

7 refined, manufactured, or produced from property purchased at

8 retail, then the tax is imposed on the lower of the fair market

9 value, if any, of the specific property so used in this State

10 or on the selling price of the property purchased at retail.

11 For purposes of this Section "fair market value" means the

12 price at which property would change hands between a willing

13 buyer and a willing seller, neither being under any compulsion

14 to buy or sell and both having reasonable knowledge of the

15 relevant facts. The fair market value shall be established by

16 Illinois sales by the taxpayer of the same property as that

17 functionally used or consumed, or if there are no such sales by

18 the taxpayer, then comparable sales or purchases of property of

19 like kind and character in Illinois.

20 Beginning on July 1, 2000 and through December 31, 2000,

21 with respect to motor fuel, as defined in Section 1.1 of the

22 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

23 the Use Tax Act, the tax is imposed at the rate of 1.25%.

24 Beginning on August 6, 2010 through August 15, 2010, with

25 respect to sales tax holiday items as defined in Section 3-6 of

26 this Act, the tax is imposed at the rate of 1.25%.

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1 With respect to gasohol, the tax imposed by this Act

2 applies to (i) 70% of the proceeds of sales made on or after

3 January 1, 1990, and before July 1, 2003, (ii) 80% of the

4 proceeds of sales made on or after July 1, 2003 and on or

5 before July 1, 2017, and (iii) 100% of the proceeds of sales

6 made thereafter. If, at any time, however, the tax under this

7 Act on sales of gasohol is imposed at the rate of 1.25%, then

8 the tax imposed by this Act applies to 100% of the proceeds of

9 sales of gasohol made during that time.

10 With respect to majority blended ethanol fuel, the tax

11 imposed by this Act does not apply to the proceeds of sales

12 made on or after July 1, 2003 and on or before December 31,

13 2023 but applies to 100% of the proceeds of sales made

14 thereafter.

15 With respect to biodiesel blends with no less than 1% and

16 no more than 10% biodiesel, the tax imposed by this Act applies

17 to (i) 80% of the proceeds of sales made on or after July 1,

18 2003 and on or before December 31, 2018 and (ii) 100% of the

19 proceeds of sales made thereafter. If, at any time, however,

20 the tax under this Act on sales of biodiesel blends with no

21 less than 1% and no more than 10% biodiesel is imposed at the

22 rate of 1.25%, then the tax imposed by this Act applies to 100%

23 of the proceeds of sales of biodiesel blends with no less than

24 1% and no more than 10% biodiesel made during that time.

25 With respect to 100% biodiesel and biodiesel blends with

26 more than 10% but no more than 99% biodiesel, the tax imposed

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1 by this Act does not apply to the proceeds of sales made on or

2 after July 1, 2003 and on or before December 31, 2023 but

3 applies to 100% of the proceeds of sales made thereafter.

4 With respect to food for human consumption that is to be

5 consumed off the premises where it is sold (other than

6 alcoholic beverages, soft drinks, and food that has been

7 prepared for immediate consumption) and prescription and

8 nonprescription medicines, drugs, medical appliances, products

9 classified as Class III medical devices by the United States

10 Food and Drug Administration that are used for cancer treatment

11 pursuant to a prescription, as well as any accessories and

12 components related to those devices, modifications to a motor

13 vehicle for the purpose of rendering it usable by a person with

14 a disability, and insulin, urine testing materials, syringes,

15 and needles used by diabetics, for human use, the tax is

16 imposed at the rate of 1%. For the purposes of this Section,

17 until September 1, 2009: the term "soft drinks" means any

18 complete, finished, ready-to-use, non-alcoholic drink, whether

19 carbonated or not, including but not limited to soda water,

20 cola, fruit juice, vegetable juice, carbonated water, and all

21 other preparations commonly known as soft drinks of whatever

22 kind or description that are contained in any closed or sealed

23 bottle, can, carton, or container, regardless of size; but

24 "soft drinks" does not include coffee, tea, non-carbonated

25 water, infant formula, milk or milk products as defined in the

26 Grade A Pasteurized Milk and Milk Products Act, or drinks

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1 containing 50% or more natural fruit or vegetable juice.

2 Notwithstanding any other provisions of this Act,

3 beginning September 1, 2009, "soft drinks" means non-alcoholic

4 beverages that contain natural or artificial sweeteners. "Soft

5 drinks" do not include beverages that contain milk or milk

6 products, soy, rice or similar milk substitutes, or greater

7 than 50% of vegetable or fruit juice by volume.

8 Until August 1, 2009, and notwithstanding any other

9 provisions of this Act, "food for human consumption that is to

10 be consumed off the premises where it is sold" includes all

11 food sold through a vending machine, except soft drinks and

12 food products that are dispensed hot from a vending machine,

13 regardless of the location of the vending machine. Beginning

14 August 1, 2009, and notwithstanding any other provisions of

15 this Act, "food for human consumption that is to be consumed

16 off the premises where it is sold" includes all food sold

17 through a vending machine, except soft drinks, candy, and food

18 products that are dispensed hot from a vending machine,

19 regardless of the location of the vending machine.

20 Notwithstanding any other provisions of this Act,

21 beginning September 1, 2009, "food for human consumption that

22 is to be consumed off the premises where it is sold" does not

23 include candy. For purposes of this Section, "candy" means a

24 preparation of sugar, honey, or other natural or artificial

25 sweeteners in combination with chocolate, fruits, nuts or other

26 ingredients or flavorings in the form of bars, drops, or

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1 pieces. "Candy" does not include any preparation that contains

2 flour or requires refrigeration.

3 Notwithstanding any other provisions of this Act,

4 beginning September 1, 2009, "nonprescription medicines and

5 drugs" does not include grooming and hygiene products. For

6 purposes of this Section, "grooming and hygiene products"

7 includes, but is not limited to, soaps and cleaning solutions,

8 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan

9 lotions and screens, unless those products are available by

10 prescription only, regardless of whether the products meet the

11 definition of "over-the-counter-drugs". For the purposes of

12 this paragraph, "over-the-counter-drug" means a drug for human

13 use that contains a label that identifies the product as a drug

14 as required by 21 C.F.R. � 201.66. The "over-the-counter-drug"

15 label includes:

16 (A) A "Drug Facts" panel; or

17 (B) A statement of the "active ingredient(s)" with a

18 list of those ingredients contained in the compound,

19 substance or preparation.

20 Beginning on the effective date of this amendatory Act of

21 the 98th General Assembly, "prescription and nonprescription

22 medicines and drugs" includes medical cannabis purchased from a

23 registered dispensing organization under the Compassionate Use

24 of Medical Cannabis Pilot Program Act.

25 Beginning January 1, 2020, in addition to all other rates

26 of tax imposed under this Act, a surcharge of 7% is imposed on

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1 the selling price of (1) each firearm purchased in the State

2 and (2) each firearm component part that is purchased in the

3 State and sold separately from the firearm. "Firearm" has the

4 meaning ascribed to that term in Section 1.1 of the Firearm

5 Owners Identification Card Act.

6 If the property that is purchased at retail from a retailer

7 is acquired outside Illinois and used outside Illinois before

8 being brought to Illinois for use here and is taxable under

9 this Act, the "selling price" on which the tax is computed

10 shall be reduced by an amount that represents a reasonable

11 allowance for depreciation for the period of prior out-of-state

12 use.

13 (Source: P.A. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16;

14 100-22, eff. 7-6-17.)

15 (35 ILCS 105/9) (from Ch. 120, par. 439.9)

16 Sec. 9. Except as to motor vehicles, watercraft, aircraft,

17 and trailers that are required to be registered with an agency

18 of this State, each retailer required or authorized to collect

19 the tax imposed by this Act shall pay to the Department the

20 amount of such tax (except as otherwise provided) at the time

21 when he is required to file his return for the period during

22 which such tax was collected, less a discount of 2.1% prior to

23 January 1, 1990, and 1.75% on and after January 1, 1990, or $5

24 per calendar year, whichever is greater, which is allowed to

25 reimburse the retailer for expenses incurred in collecting the

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1 tax, keeping records, preparing and filing returns, remitting

2 the tax and supplying data to the Department on request. In the

3 case of retailers who report and pay the tax on a transaction

4 by transaction basis, as provided in this Section, such

5 discount shall be taken with each such tax remittance instead

6 of when such retailer files his periodic return. The discount

7 allowed under this Section is allowed only for returns that are

8 filed in the manner required by this Act. The Department may

9 disallow the discount for retailers whose certificate of

10 registration is revoked at the time the return is filed, but

11 only if the Department's decision to revoke the certificate of

12 registration has become final. A retailer need not remit that

13 part of any tax collected by him to the extent that he is

14 required to remit and does remit the tax imposed by the

15 Retailers' Occupation Tax Act, with respect to the sale of the

16 same property.

17 Where such tangible personal property is sold under a

18 conditional sales contract, or under any other form of sale

19 wherein the payment of the principal sum, or a part thereof, is

20 extended beyond the close of the period for which the return is

21 filed, the retailer, in collecting the tax (except as to motor

22 vehicles, watercraft, aircraft, and trailers that are required

23 to be registered with an agency of this State), may collect for

24 each tax return period, only the tax applicable to that part of

25 the selling price actually received during such tax return

26 period.

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1 Except as provided in this Section, on or before the

2 twentieth day of each calendar month, such retailer shall file

3 a return for the preceding calendar month. Such return shall be

4 filed on forms prescribed by the Department and shall furnish

5 such information as the Department may reasonably require. On

6 and after January 1, 2018, except for returns for motor

7 vehicles, watercraft, aircraft, and trailers that are required

8 to be registered with an agency of this State, with respect to

9 retailers whose annual gross receipts average $20,000 or more,

10 all returns required to be filed pursuant to this Act shall be

11 filed electronically. Retailers who demonstrate that they do

12 not have access to the Internet or demonstrate hardship in

13 filing electronically may petition the Department to waive the

14 electronic filing requirement.

15 The Department may require returns to be filed on a

16 quarterly basis. If so required, a return for each calendar

17 quarter shall be filed on or before the twentieth day of the

18 calendar month following the end of such calendar quarter. The

19 taxpayer shall also file a return with the Department for each

20 of the first two months of each calendar quarter, on or before

21 the twentieth day of the following calendar month, stating:

22 1. The name of the seller;

23 2. The address of the principal place of business from

24 which he engages in the business of selling tangible

25 personal property at retail in this State;

26 3. The total amount of taxable receipts received by him

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1 during the preceding calendar month from sales of tangible

2 personal property by him during such preceding calendar

3 month, including receipts from charge and time sales, but

4 less all deductions allowed by law;

5 4. The amount of credit provided in Section 2d of this

6 Act;

7 5. The amount of tax due;

8 5-5. The signature of the taxpayer; and

9 6. Such other reasonable information as the Department

10 may require.

11 If a taxpayer fails to sign a return within 30 days after

12 the proper notice and demand for signature by the Department,

13 the return shall be considered valid and any amount shown to be

14 due on the return shall be deemed assessed.

15 Beginning October 1, 1993, a taxpayer who has an average

16 monthly tax liability of $150,000 or more shall make all

17 payments required by rules of the Department by electronic

18 funds transfer. Beginning October 1, 1994, a taxpayer who has

19 an average monthly tax liability of $100,000 or more shall make

20 all payments required by rules of the Department by electronic

21 funds transfer. Beginning October 1, 1995, a taxpayer who has

22 an average monthly tax liability of $50,000 or more shall make

23 all payments required by rules of the Department by electronic

24 funds transfer. Beginning October 1, 2000, a taxpayer who has

25 an annual tax liability of $200,000 or more shall make all

26 payments required by rules of the Department by electronic

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1 funds transfer. The term "annual tax liability" shall be the

2 sum of the taxpayer's liabilities under this Act, and under all

3 other State and local occupation and use tax laws administered

4 by the Department, for the immediately preceding calendar year.

5 The term "average monthly tax liability" means the sum of the

6 taxpayer's liabilities under this Act, and under all other

7 State and local occupation and use tax laws administered by the

8 Department, for the immediately preceding calendar year

9 divided by 12. Beginning on October 1, 2002, a taxpayer who has

10 a tax liability in the amount set forth in subsection (b) of

11 Section 2505-210 of the Department of Revenue Law shall make

12 all payments required by rules of the Department by electronic

13 funds transfer.

14 Before August 1 of each year beginning in 1993, the

15 Department shall notify all taxpayers required to make payments

16 by electronic funds transfer. All taxpayers required to make

17 payments by electronic funds transfer shall make those payments

18 for a minimum of one year beginning on October 1.

19 Any taxpayer not required to make payments by electronic

20 funds transfer may make payments by electronic funds transfer

21 with the permission of the Department.

22 All taxpayers required to make payment by electronic funds

23 transfer and any taxpayers authorized to voluntarily make

24 payments by electronic funds transfer shall make those payments

25 in the manner authorized by the Department.

26 The Department shall adopt such rules as are necessary to

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1 effectuate a program of electronic funds transfer and the

2 requirements of this Section.

3 Before October 1, 2000, if the taxpayer's average monthly

4 tax liability to the Department under this Act, the Retailers'

5 Occupation Tax Act, the Service Occupation Tax Act, the Service

6 Use Tax Act was $10,000 or more during the preceding 4 complete

7 calendar quarters, he shall file a return with the Department

8 each month by the 20th day of the month next following the

9 month during which such tax liability is incurred and shall

10 make payments to the Department on or before the 7th, 15th,

11 22nd and last day of the month during which such liability is

12 incurred. On and after October 1, 2000, if the taxpayer's

13 average monthly tax liability to the Department under this Act,

14 the Retailers' Occupation Tax Act, the Service Occupation Tax

15 Act, and the Service Use Tax Act was $20,000 or more during the

16 preceding 4 complete calendar quarters, he shall file a return

17 with the Department each month by the 20th day of the month

18 next following the month during which such tax liability is

19 incurred and shall make payment to the Department on or before

20 the 7th, 15th, 22nd and last day of the month during which such

21 liability is incurred. If the month during which such tax

22 liability is incurred began prior to January 1, 1985, each

23 payment shall be in an amount equal to 1/4 of the taxpayer's

24 actual liability for the month or an amount set by the

25 Department not to exceed 1/4 of the average monthly liability

26 of the taxpayer to the Department for the preceding 4 complete

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1 calendar quarters (excluding the month of highest liability and

2 the month of lowest liability in such 4 quarter period). If the

3 month during which such tax liability is incurred begins on or

4 after January 1, 1985, and prior to January 1, 1987, each

5 payment shall be in an amount equal to 22.5% of the taxpayer's

6 actual liability for the month or 27.5% of the taxpayer's

7 liability for the same calendar month of the preceding year. If

8 the month during which such tax liability is incurred begins on

9 or after January 1, 1987, and prior to January 1, 1988, each

10 payment shall be in an amount equal to 22.5% of the taxpayer's

11 actual liability for the month or 26.25% of the taxpayer's

12 liability for the same calendar month of the preceding year. If

13 the month during which such tax liability is incurred begins on

14 or after January 1, 1988, and prior to January 1, 1989, or

15 begins on or after January 1, 1996, each payment shall be in an

16 amount equal to 22.5% of the taxpayer's actual liability for

17 the month or 25% of the taxpayer's liability for the same

18 calendar month of the preceding year. If the month during which

19 such tax liability is incurred begins on or after January 1,

20 1989, and prior to January 1, 1996, each payment shall be in an

21 amount equal to 22.5% of the taxpayer's actual liability for

22 the month or 25% of the taxpayer's liability for the same

23 calendar month of the preceding year or 100% of the taxpayer's

24 actual liability for the quarter monthly reporting period. The

25 amount of such quarter monthly payments shall be credited

26 against the final tax liability of the taxpayer's return for

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1 that month. Before October 1, 2000, once applicable, the

2 requirement of the making of quarter monthly payments to the

3 Department shall continue until such taxpayer's average

4 monthly liability to the Department during the preceding 4

5 complete calendar quarters (excluding the month of highest

6 liability and the month of lowest liability) is less than

7 $9,000, or until such taxpayer's average monthly liability to

8 the Department as computed for each calendar quarter of the 4

9 preceding complete calendar quarter period is less than

10 $10,000. However, if a taxpayer can show the Department that a

11 substantial change in the taxpayer's business has occurred

12 which causes the taxpayer to anticipate that his average

13 monthly tax liability for the reasonably foreseeable future

14 will fall below the $10,000 threshold stated above, then such

15 taxpayer may petition the Department for change in such

16 taxpayer's reporting status. On and after October 1, 2000, once

17 applicable, the requirement of the making of quarter monthly

18 payments to the Department shall continue until such taxpayer's

19 average monthly liability to the Department during the

20 preceding 4 complete calendar quarters (excluding the month of

21 highest liability and the month of lowest liability) is less

22 than $19,000 or until such taxpayer's average monthly liability

23 to the Department as computed for each calendar quarter of the

24 4 preceding complete calendar quarter period is less than

25 $20,000. However, if a taxpayer can show the Department that a

26 substantial change in the taxpayer's business has occurred

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1 which causes the taxpayer to anticipate that his average

2 monthly tax liability for the reasonably foreseeable future

3 will fall below the $20,000 threshold stated above, then such

4 taxpayer may petition the Department for a change in such

5 taxpayer's reporting status. The Department shall change such

6 taxpayer's reporting status unless it finds that such change is

7 seasonal in nature and not likely to be long term. If any such

8 quarter monthly payment is not paid at the time or in the

9 amount required by this Section, then the taxpayer shall be

10 liable for penalties and interest on the difference between the

11 minimum amount due and the amount of such quarter monthly

12 payment actually and timely paid, except insofar as the

13 taxpayer has previously made payments for that month to the

14 Department in excess of the minimum payments previously due as

15 provided in this Section. The Department shall make reasonable

16 rules and regulations to govern the quarter monthly payment

17 amount and quarter monthly payment dates for taxpayers who file

18 on other than a calendar monthly basis.

19 If any such payment provided for in this Section exceeds

20 the taxpayer's liabilities under this Act, the Retailers'

21 Occupation Tax Act, the Service Occupation Tax Act and the

22 Service Use Tax Act, as shown by an original monthly return,

23 the Department shall issue to the taxpayer a credit memorandum

24 no later than 30 days after the date of payment, which

25 memorandum may be submitted by the taxpayer to the Department

26 in payment of tax liability subsequently to be remitted by the

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1 taxpayer to the Department or be assigned by the taxpayer to a

2 similar taxpayer under this Act, the Retailers' Occupation Tax

3 Act, the Service Occupation Tax Act or the Service Use Tax Act,

4 in accordance with reasonable rules and regulations to be

5 prescribed by the Department, except that if such excess

6 payment is shown on an original monthly return and is made

7 after December 31, 1986, no credit memorandum shall be issued,

8 unless requested by the taxpayer. If no such request is made,

9 the taxpayer may credit such excess payment against tax

10 liability subsequently to be remitted by the taxpayer to the

11 Department under this Act, the Retailers' Occupation Tax Act,

12 the Service Occupation Tax Act or the Service Use Tax Act, in

13 accordance with reasonable rules and regulations prescribed by

14 the Department. If the Department subsequently determines that

15 all or any part of the credit taken was not actually due to the

16 taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall

17 be reduced by 2.1% or 1.75% of the difference between the

18 credit taken and that actually due, and the taxpayer shall be

19 liable for penalties and interest on such difference.

20 If the retailer is otherwise required to file a monthly

21 return and if the retailer's average monthly tax liability to

22 the Department does not exceed $200, the Department may

23 authorize his returns to be filed on a quarter annual basis,

24 with the return for January, February, and March of a given

25 year being due by April 20 of such year; with the return for

26 April, May and June of a given year being due by July 20 of such

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1 year; with the return for July, August and September of a given

2 year being due by October 20 of such year, and with the return

3 for October, November and December of a given year being due by

4 January 20 of the following year.

5 If the retailer is otherwise required to file a monthly or

6 quarterly return and if the retailer's average monthly tax

7 liability to the Department does not exceed $50, the Department

8 may authorize his returns to be filed on an annual basis, with

9 the return for a given year being due by January 20 of the

10 following year.

11 Such quarter annual and annual returns, as to form and

12 substance, shall be subject to the same requirements as monthly

13 returns.

14 Notwithstanding any other provision in this Act concerning

15 the time within which a retailer may file his return, in the

16 case of any retailer who ceases to engage in a kind of business

17 which makes him responsible for filing returns under this Act,

18 such retailer shall file a final return under this Act with the

19 Department not more than one month after discontinuing such

20 business.

21 In addition, with respect to motor vehicles, watercraft,

22 aircraft, and trailers that are required to be registered with

23 an agency of this State, except as otherwise provided in this

24 Section, every retailer selling this kind of tangible personal

25 property shall file, with the Department, upon a form to be

26 prescribed and supplied by the Department, a separate return

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1 for each such item of tangible personal property which the

2 retailer sells, except that if, in the same transaction, (i) a

3 retailer of aircraft, watercraft, motor vehicles or trailers

4 transfers more than one aircraft, watercraft, motor vehicle or

5 trailer to another aircraft, watercraft, motor vehicle or

6 trailer retailer for the purpose of resale or (ii) a retailer

7 of aircraft, watercraft, motor vehicles, or trailers transfers

8 more than one aircraft, watercraft, motor vehicle, or trailer

9 to a purchaser for use as a qualifying rolling stock as

10 provided in Section 3-55 of this Act, then that seller may

11 report the transfer of all the aircraft, watercraft, motor

12 vehicles or trailers involved in that transaction to the

13 Department on the same uniform invoice-transaction reporting

14 return form. For purposes of this Section, "watercraft" means a

15 Class 2, Class 3, or Class 4 watercraft as defined in Section

16 3-2 of the Boat Registration and Safety Act, a personal

17 watercraft, or any boat equipped with an inboard motor.

18 In addition, with respect to motor vehicles, watercraft,

19 aircraft, and trailers that are required to be registered with

20 an agency of this State, every person who is engaged in the

21 business of leasing or renting such items and who, in

22 connection with such business, sells any such item to a

23 retailer for the purpose of resale is, notwithstanding any

24 other provision of this Section to the contrary, authorized to

25 meet the return-filing requirement of this Act by reporting the

26 transfer of all the aircraft, watercraft, motor vehicles, or

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1 trailers transferred for resale during a month to the

2 Department on the same uniform invoice-transaction reporting

3 return form on or before the 20th of the month following the

4 month in which the transfer takes place. Notwithstanding any

5 other provision of this Act to the contrary, all returns filed

6 under this paragraph must be filed by electronic means in the

7 manner and form as required by the Department.

8 The transaction reporting return in the case of motor

9 vehicles or trailers that are required to be registered with an

10 agency of this State, shall be the same document as the Uniform

11 Invoice referred to in Section 5-402 of the Illinois Vehicle

12 Code and must show the name and address of the seller; the name

13 and address of the purchaser; the amount of the selling price

14 including the amount allowed by the retailer for traded-in

15 property, if any; the amount allowed by the retailer for the

16 traded-in tangible personal property, if any, to the extent to

17 which Section 2 of this Act allows an exemption for the value

18 of traded-in property; the balance payable after deducting such

19 trade-in allowance from the total selling price; the amount of

20 tax due from the retailer with respect to such transaction; the

21 amount of tax collected from the purchaser by the retailer on

22 such transaction (or satisfactory evidence that such tax is not

23 due in that particular instance, if that is claimed to be the

24 fact); the place and date of the sale; a sufficient

25 identification of the property sold; such other information as

26 is required in Section 5-402 of the Illinois Vehicle Code, and

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1 such other information as the Department may reasonably

2 require.

3 The transaction reporting return in the case of watercraft

4 and aircraft must show the name and address of the seller; the

5 name and address of the purchaser; the amount of the selling

6 price including the amount allowed by the retailer for

7 traded-in property, if any; the amount allowed by the retailer

8 for the traded-in tangible personal property, if any, to the

9 extent to which Section 2 of this Act allows an exemption for

10 the value of traded-in property; the balance payable after

11 deducting such trade-in allowance from the total selling price;

12 the amount of tax due from the retailer with respect to such

13 transaction; the amount of tax collected from the purchaser by

14 the retailer on such transaction (or satisfactory evidence that

15 such tax is not due in that particular instance, if that is

16 claimed to be the fact); the place and date of the sale, a

17 sufficient identification of the property sold, and such other

18 information as the Department may reasonably require.

19 Such transaction reporting return shall be filed not later

20 than 20 days after the date of delivery of the item that is

21 being sold, but may be filed by the retailer at any time sooner

22 than that if he chooses to do so. The transaction reporting

23 return and tax remittance or proof of exemption from the tax

24 that is imposed by this Act may be transmitted to the

25 Department by way of the State agency with which, or State

26 officer with whom, the tangible personal property must be

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1 titled or registered (if titling or registration is required)

2 if the Department and such agency or State officer determine

3 that this procedure will expedite the processing of

4 applications for title or registration.

5 With each such transaction reporting return, the retailer

6 shall remit the proper amount of tax due (or shall submit

7 satisfactory evidence that the sale is not taxable if that is

8 the case), to the Department or its agents, whereupon the

9 Department shall issue, in the purchaser's name, a tax receipt

10 (or a certificate of exemption if the Department is satisfied

11 that the particular sale is tax exempt) which such purchaser

12 may submit to the agency with which, or State officer with

13 whom, he must title or register the tangible personal property

14 that is involved (if titling or registration is required) in

15 support of such purchaser's application for an Illinois

16 certificate or other evidence of title or registration to such

17 tangible personal property.

18 No retailer's failure or refusal to remit tax under this

19 Act precludes a user, who has paid the proper tax to the

20 retailer, from obtaining his certificate of title or other

21 evidence of title or registration (if titling or registration

22 is required) upon satisfying the Department that such user has

23 paid the proper tax (if tax is due) to the retailer. The

24 Department shall adopt appropriate rules to carry out the

25 mandate of this paragraph.

26 If the user who would otherwise pay tax to the retailer

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1 wants the transaction reporting return filed and the payment of

2 tax or proof of exemption made to the Department before the

3 retailer is willing to take these actions and such user has not

4 paid the tax to the retailer, such user may certify to the fact

5 of such delay by the retailer, and may (upon the Department

6 being satisfied of the truth of such certification) transmit

7 the information required by the transaction reporting return

8 and the remittance for tax or proof of exemption directly to

9 the Department and obtain his tax receipt or exemption

10 determination, in which event the transaction reporting return

11 and tax remittance (if a tax payment was required) shall be

12 credited by the Department to the proper retailer's account

13 with the Department, but without the 2.1% or 1.75% discount

14 provided for in this Section being allowed. When the user pays

15 the tax directly to the Department, he shall pay the tax in the

16 same amount and in the same form in which it would be remitted

17 if the tax had been remitted to the Department by the retailer.

18 Where a retailer collects the tax with respect to the

19 selling price of tangible personal property which he sells and

20 the purchaser thereafter returns such tangible personal

21 property and the retailer refunds the selling price thereof to

22 the purchaser, such retailer shall also refund, to the

23 purchaser, the tax so collected from the purchaser. When filing

24 his return for the period in which he refunds such tax to the

25 purchaser, the retailer may deduct the amount of the tax so

26 refunded by him to the purchaser from any other use tax which

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1 such retailer may be required to pay or remit to the

2 Department, as shown by such return, if the amount of the tax

3 to be deducted was previously remitted to the Department by

4 such retailer. If the retailer has not previously remitted the

5 amount of such tax to the Department, he is entitled to no

6 deduction under this Act upon refunding such tax to the

7 purchaser.

8 Any retailer filing a return under this Section shall also

9 include (for the purpose of paying tax thereon) the total tax

10 covered by such return upon the selling price of tangible

11 personal property purchased by him at retail from a retailer,

12 but as to which the tax imposed by this Act was not collected

13 from the retailer filing such return, and such retailer shall

14 remit the amount of such tax to the Department when filing such

15 return.

16 If experience indicates such action to be practicable, the

17 Department may prescribe and furnish a combination or joint

18 return which will enable retailers, who are required to file

19 returns hereunder and also under the Retailers' Occupation Tax

20 Act, to furnish all the return information required by both

21 Acts on the one form.

22 Where the retailer has more than one business registered

23 with the Department under separate registration under this Act,

24 such retailer may not file each return that is due as a single

25 return covering all such registered businesses, but shall file

26 separate returns for each such registered business.

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1 Beginning January 1, 1990, each month the Department shall

2 pay into the State and Local Sales Tax Reform Fund, a special

3 fund in the State Treasury which is hereby created, the net

4 revenue realized for the preceding month from the 1% tax

5 imposed under this Act.

6 Beginning January 1, 1990, each month the Department shall

7 pay into the County and Mass Transit District Fund 4% of the

8 net revenue realized for the preceding month from the 6.25%

9 general rate on the selling price of tangible personal property

10 which is purchased outside Illinois at retail from a retailer

11 and which is titled or registered by an agency of this State's

12 government.

13 Beginning January 1, 1990, each month the Department shall

14 pay into the State and Local Sales Tax Reform Fund, a special

15 fund in the State Treasury, 20% of the net revenue realized for

16 the preceding month from the 6.25% general rate on the selling

17 price of tangible personal property, other than tangible

18 personal property which is purchased outside Illinois at retail

19 from a retailer and which is titled or registered by an agency

20 of this State's government.

21 Beginning August 1, 2000, each month the Department shall

22 pay into the State and Local Sales Tax Reform Fund 100% of the

23 net revenue realized for the preceding month from the 1.25%

24 rate on the selling price of motor fuel and gasohol. Beginning

25 September 1, 2010, each month the Department shall pay into the

26 State and Local Sales Tax Reform Fund 100% of the net revenue

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1 realized for the preceding month from the 1.25% rate on the

2 selling price of sales tax holiday items.

3 Beginning January 1, 1990, each month the Department shall

4 pay into the Local Government Tax Fund 16% of the net revenue

5 realized for the preceding month from the 6.25% general rate on

6 the selling price of tangible personal property which is

7 purchased outside Illinois at retail from a retailer and which

8 is titled or registered by an agency of this State's

9 government.

10 Beginning October 1, 2009, each month the Department shall

11 pay into the Capital Projects Fund an amount that is equal to

12 an amount estimated by the Department to represent 80% of the

13 net revenue realized for the preceding month from the sale of

14 candy, grooming and hygiene products, and soft drinks that had

15 been taxed at a rate of 1% prior to September 1, 2009 but that

16 are now taxed at 6.25%.

17 Beginning July 1, 2011, each month the Department shall pay

18 into the Clean Air Act Permit Fund 80% of the net revenue

19 realized for the preceding month from the 6.25% general rate on

20 the selling price of sorbents used in Illinois in the process

21 of sorbent injection as used to comply with the Environmental

22 Protection Act or the federal Clean Air Act, but the total

23 payment into the Clean Air Act Permit Fund under this Act and

24 the Retailers' Occupation Tax Act shall not exceed $2,000,000

25 in any fiscal year.

26 Beginning July 1, 2013, each month the Department shall pay

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1 into the Underground Storage Tank Fund from the proceeds

2 collected under this Act, the Service Use Tax Act, the Service

3 Occupation Tax Act, and the Retailers' Occupation Tax Act an

4 amount equal to the average monthly deficit in the Underground

5 Storage Tank Fund during the prior year, as certified annually

6 by the Illinois Environmental Protection Agency, but the total

7 payment into the Underground Storage Tank Fund under this Act,

8 the Service Use Tax Act, the Service Occupation Tax Act, and

9 the Retailers' Occupation Tax Act shall not exceed $18,000,000

10 in any State fiscal year. As used in this paragraph, the

11 "average monthly deficit" shall be equal to the difference

12 between the average monthly claims for payment by the fund and

13 the average monthly revenues deposited into the fund, excluding

14 payments made pursuant to this paragraph.

15 Beginning July 1, 2015, of the remainder of the moneys

16 received by the Department under this Act, the Service Use Tax

17 Act, the Service Occupation Tax Act, and the Retailers'

18 Occupation Tax Act, each month the Department shall deposit

19 $500,000 into the State Crime Laboratory Fund.

20 Beginning January 1, 2020, the Department shall pay into

21 the Student Mental Health Services Fund 100% of the net revenue

22 realized for the preceding month from the 7% surcharge on the

23 selling price of firearms and firearm component parts.

24 Of the remainder of the moneys received by the Department

25 pursuant to this Act, (a) 1.75% thereof shall be paid into the

26 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on

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1 and after July 1, 1989, 3.8% thereof shall be paid into the

2 Build Illinois Fund; provided, however, that if in any fiscal

3 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case

4 may be, of the moneys received by the Department and required

5 to be paid into the Build Illinois Fund pursuant to Section 3

6 of the Retailers' Occupation Tax Act, Section 9 of the Use Tax

7 Act, Section 9 of the Service Use Tax Act, and Section 9 of the

8 Service Occupation Tax Act, such Acts being hereinafter called

9 the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case

10 may be, of moneys being hereinafter called the "Tax Act

11 Amount", and (2) the amount transferred to the Build Illinois

12 Fund from the State and Local Sales Tax Reform Fund shall be

13 less than the Annual Specified Amount (as defined in Section 3

14 of the Retailers' Occupation Tax Act), an amount equal to the

15 difference shall be immediately paid into the Build Illinois

16 Fund from other moneys received by the Department pursuant to

17 the Tax Acts; and further provided, that if on the last

18 business day of any month the sum of (1) the Tax Act Amount

19 required to be deposited into the Build Illinois Bond Account

20 in the Build Illinois Fund during such month and (2) the amount

21 transferred during such month to the Build Illinois Fund from

22 the State and Local Sales Tax Reform Fund shall have been less

23 than 1/12 of the Annual Specified Amount, an amount equal to

24 the difference shall be immediately paid into the Build

25 Illinois Fund from other moneys received by the Department

26 pursuant to the Tax Acts; and, further provided, that in no

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1 event shall the payments required under the preceding proviso

2 result in aggregate payments into the Build Illinois Fund

3 pursuant to this clause (b) for any fiscal year in excess of

4 the greater of (i) the Tax Act Amount or (ii) the Annual

5 Specified Amount for such fiscal year; and, further provided,

6 that the amounts payable into the Build Illinois Fund under

7 this clause (b) shall be payable only until such time as the

8 aggregate amount on deposit under each trust indenture securing

9 Bonds issued and outstanding pursuant to the Build Illinois

10 Bond Act is sufficient, taking into account any future

11 investment income, to fully provide, in accordance with such

12 indenture, for the defeasance of or the payment of the

13 principal of, premium, if any, and interest on the Bonds

14 secured by such indenture and on any Bonds expected to be

15 issued thereafter and all fees and costs payable with respect

16 thereto, all as certified by the Director of the Bureau of the

17 Budget (now Governor's Office of Management and Budget). If on

18 the last business day of any month in which Bonds are

19 outstanding pursuant to the Build Illinois Bond Act, the

20 aggregate of the moneys deposited in the Build Illinois Bond

21 Account in the Build Illinois Fund in such month shall be less

22 than the amount required to be transferred in such month from

23 the Build Illinois Bond Account to the Build Illinois Bond

24 Retirement and Interest Fund pursuant to Section 13 of the

25 Build Illinois Bond Act, an amount equal to such deficiency

26 shall be immediately paid from other moneys received by the

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1 Department pursuant to the Tax Acts to the Build Illinois Fund;

2 provided, however, that any amounts paid to the Build Illinois

3 Fund in any fiscal year pursuant to this sentence shall be

4 deemed to constitute payments pursuant to clause (b) of the

5 preceding sentence and shall reduce the amount otherwise

6 payable for such fiscal year pursuant to clause (b) of the

7 preceding sentence. The moneys received by the Department

8 pursuant to this Act and required to be deposited into the

9 Build Illinois Fund are subject to the pledge, claim and charge

10 set forth in Section 12 of the Build Illinois Bond Act.

11 Subject to payment of amounts into the Build Illinois Fund

12 as provided in the preceding paragraph or in any amendment

13 thereto hereafter enacted, the following specified monthly

14 installment of the amount requested in the certificate of the

15 Chairman of the Metropolitan Pier and Exposition Authority

16 provided under Section 8.25f of the State Finance Act, but not

17 in excess of the sums designated as "Total Deposit", shall be

18 deposited in the aggregate from collections under Section 9 of

19 the Use Tax Act, Section 9 of the Service Use Tax Act, Section

20 9 of the Service Occupation Tax Act, and Section 3 of the

21 Retailers' Occupation Tax Act into the McCormick Place

22 Expansion Project Fund in the specified fiscal years.

23	`Fiscal Year`	`Total Deposit`
24	`1993`	`$0`
25	`1994`	`53,000,000`
26	`1995`	`58,000,000`

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1	`1996`	`61,000,000`
2	`1997`	`64,000,000`
3	`1998`	`68,000,000`
4	`1999`	`71,000,000`
5	`2000`	`75,000,000`
6	`2001`	`80,000,000`
7	`2002`	`93,000,000`
8	`2003`	`99,000,000`
9	`2004`	`103,000,000`
10	`2005`	`108,000,000`
11	`2006`	`113,000,000`
12	`2007`	`119,000,000`
13	`2008`	`126,000,000`
14	`2009`	`132,000,000`
15	`2010`	`139,000,000`
16	`2011`	`146,000,000`
17	`2012`	`153,000,000`
18	`2013`	`161,000,000`
19	`2014`	`170,000,000`
20	`2015`	`179,000,000`
21	`2016`	`189,000,000`
22	`2017`	`199,000,000`
23	`2018`	`210,000,000`
24	`2019`	`221,000,000`
25	`2020`	`233,000,000`
26	`2021`	`246,000,000`

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1	`2022`	`260,000,000`
2	`2023`	`275,000,000`
3	`2024`	`275,000,000`
4	`2025`	`275,000,000`
5	`2026`	`279,000,000`
6	`2027`	`292,000,000`
7	`2028`	`307,000,000`
8	`2029`	`322,000,000`
9	`2030`	`338,000,000`
10	`2031`	`350,000,000`
11	`2032`	`350,000,000`
12	`and`
13	`each fiscal year`
14	`thereafter that bonds`
15	`are outstanding under`
16	`Section 13.2 of the`
17	`Metropolitan Pier and`
18	`Exposition Authority Act,`
19	`but not after fiscal year 2060.`

20 Beginning July 20, 1993 and in each month of each fiscal

21 year thereafter, one-eighth of the amount requested in the

22 certificate of the Chairman of the Metropolitan Pier and

23 Exposition Authority for that fiscal year, less the amount

24 deposited into the McCormick Place Expansion Project Fund by

25 the State Treasurer in the respective month under subsection

26 (g) of Section 13 of the Metropolitan Pier and Exposition

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1 Authority Act, plus cumulative deficiencies in the deposits

2 required under this Section for previous months and years,

3 shall be deposited into the McCormick Place Expansion Project

4 Fund, until the full amount requested for the fiscal year, but

5 not in excess of the amount specified above as "Total Deposit",

6 has been deposited.

7 Subject to payment of amounts into the Build Illinois Fund

8 and the McCormick Place Expansion Project Fund pursuant to the

9 preceding paragraphs or in any amendments thereto hereafter

10 enacted, beginning July 1, 1993 and ending on September 30,

11 2013, the Department shall each month pay into the Illinois Tax

12 Increment Fund 0.27% of 80% of the net revenue realized for the

13 preceding month from the 6.25% general rate on the selling

14 price of tangible personal property.

15 Subject to payment of amounts into the Build Illinois Fund

16 and the McCormick Place Expansion Project Fund pursuant to the

17 preceding paragraphs or in any amendments thereto hereafter

18 enacted, beginning with the receipt of the first report of

19 taxes paid by an eligible business and continuing for a 25-year

20 period, the Department shall each month pay into the Energy

21 Infrastructure Fund 80% of the net revenue realized from the

22 6.25% general rate on the selling price of Illinois-mined coal

23 that was sold to an eligible business. For purposes of this

24 paragraph, the term "eligible business" means a new electric

25 generating facility certified pursuant to Section 605-332 of

26 the Department of Commerce and Economic Opportunity Law of the

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1 Civil Administrative Code of Illinois.

2 Subject to payment of amounts into the Build Illinois Fund,

3 the McCormick Place Expansion Project Fund, the Illinois Tax

4 Increment Fund, and the Energy Infrastructure Fund pursuant to

5 the preceding paragraphs or in any amendments to this Section

6 hereafter enacted, beginning on the first day of the first

7 calendar month to occur on or after August 26, 2014 (the

8 effective date of Public Act 98-1098), each month, from the

9 collections made under Section 9 of the Use Tax Act, Section 9

10 of the Service Use Tax Act, Section 9 of the Service Occupation

11 Tax Act, and Section 3 of the Retailers' Occupation Tax Act,

12 the Department shall pay into the Tax Compliance and

13 Administration Fund, to be used, subject to appropriation, to

14 fund additional auditors and compliance personnel at the

15 Department of Revenue, an amount equal to 1/12 of 5% of 80% of

16 the cash receipts collected during the preceding fiscal year by

17 the Audit Bureau of the Department under the Use Tax Act, the

18 Service Use Tax Act, the Service Occupation Tax Act, the

19 Retailers' Occupation Tax Act, and associated local occupation

20 and use taxes administered by the Department.

21 Subject to payments of amounts into the Build Illinois

22 Fund, the McCormick Place Expansion Project Fund, the Illinois

23 Tax Increment Fund, the Energy Infrastructure Fund, and the Tax

24 Compliance and Administration Fund as provided in this Section,

25 beginning on July 1, 2018 the Department shall pay each month

26 into the Downstate Public Transportation Fund the moneys

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1 required to be so paid under Section 2-3 of the Downstate

2 Public Transportation Act.

3 Of the remainder of the moneys received by the Department

4 pursuant to this Act, 75% thereof shall be paid into the State

5 Treasury and 25% shall be reserved in a special account and

6 used only for the transfer to the Common School Fund as part of

7 the monthly transfer from the General Revenue Fund in

8 accordance with Section 8a of the State Finance Act.

9 As soon as possible after the first day of each month, upon

10 certification of the Department of Revenue, the Comptroller

11 shall order transferred and the Treasurer shall transfer from

12 the General Revenue Fund to the Motor Fuel Tax Fund an amount

13 equal to 1.7% of 80% of the net revenue realized under this Act

14 for the second preceding month. Beginning April 1, 2000, this

15 transfer is no longer required and shall not be made.

16 Net revenue realized for a month shall be the revenue

17 collected by the State pursuant to this Act, less the amount

18 paid out during that month as refunds to taxpayers for

19 overpayment of liability.

20 For greater simplicity of administration, manufacturers,

21 importers and wholesalers whose products are sold at retail in

22 Illinois by numerous retailers, and who wish to do so, may

23 assume the responsibility for accounting and paying to the

24 Department all tax accruing under this Act with respect to such

25 sales, if the retailers who are affected do not make written

26 objection to the Department to this arrangement.

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1 (Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;

2 99-933, eff. 1-27-17; 100-303, eff. 8-24-17; 100-363, eff.

3 7-1-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19.)

4 Section 15. The Service Use Tax Act is amended by changing

5 Sections 3-10 and 9 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 as

10 an incident to the sale of service, but, for the purpose of

11 computing this tax, in no event shall the selling price be less

12 than the cost price of the property to the serviceman.

13 Beginning on July 1, 2000 and through December 31, 2000,

14 with respect to motor fuel, as defined in Section 1.1 of the

15 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

16 the Use Tax Act, the tax is imposed at the rate of 1.25%.

17 With respect to gasohol, as defined in the Use Tax Act, the

18 tax imposed by this Act applies to (i) 70% of the selling price

19 of property transferred as an incident to the sale of service

20 on or after January 1, 1990, and before July 1, 2003, (ii) 80%

21 of the selling price of property transferred as an incident to

22 the sale of service on or after July 1, 2003 and on or before

23 July 1, 2017, and (iii) 100% of the selling price thereafter.

24 If, at any time, however, the tax under this Act on sales of

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1 gasohol, as defined in the Use Tax Act, is imposed at the rate

2 of 1.25%, then the tax imposed by this Act applies to 100% of

3 the proceeds of sales of gasohol made during that time.

4 With respect to majority blended ethanol fuel, as defined

5 in the Use Tax Act, the tax imposed by this Act does not apply

6 to the selling price of property transferred as an incident to

7 the sale of service on or after July 1, 2003 and on or before

8 December 31, 2023 but applies to 100% of the selling price

9 thereafter.

10 With respect to biodiesel blends, as defined in the Use Tax

11 Act, with no less than 1% and no more than 10% biodiesel, the

12 tax imposed by this Act applies to (i) 80% of the selling price

13 of property transferred as an incident to the sale of service

14 on or after July 1, 2003 and on or before December 31, 2018 and

15 (ii) 100% of the proceeds of the selling price thereafter. If,

16 at any time, however, the tax under this Act on sales of

17 biodiesel blends, as defined in the Use Tax Act, with no less

18 than 1% and no more than 10% biodiesel is imposed at the rate

19 of 1.25%, then the tax imposed by this Act applies to 100% of

20 the proceeds of sales of biodiesel blends with no less than 1%

21 and no more than 10% biodiesel made during that time.

22 With respect to 100% biodiesel, as defined in the Use Tax

23 Act, and biodiesel blends, as defined in the Use Tax Act, with

24 more than 10% but no more than 99% biodiesel, the tax imposed

25 by this Act does not apply to the proceeds of the selling price

26 of property transferred as an incident to the sale of service

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1 on or after July 1, 2003 and on or before December 31, 2023 but

2 applies to 100% of the selling price thereafter.

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 aggregate

9 annual total gross receipts from all sales of service, the tax

10 imposed by this Act shall be based on the serviceman's cost

11 price of the tangible personal property transferred as an

12 incident to the sale of those services.

13 The tax shall be imposed at the rate of 1% on food prepared

14 for immediate consumption and transferred incident to a sale of

15 service subject to this Act or the Service Occupation Tax Act

16 by an entity licensed under the Hospital Licensing Act, the

17 Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD

18 Act, the Specialized Mental Health Rehabilitation Act of 2013,

19 or the Child Care Act of 1969. The tax shall also be imposed at

20 the rate of 1% on food for human consumption that is to be

21 consumed off the premises where it is sold (other than

22 alcoholic beverages, soft drinks, and food that has been

23 prepared for immediate consumption and is not otherwise

24 included in this paragraph) and prescription and

25 nonprescription medicines, drugs, medical appliances, products

26 classified as Class III medical devices by the United States

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1 Food and Drug Administration that are used for cancer treatment

2 pursuant to a prescription, as well as any accessories and

3 components related to those devices, modifications to a motor

4 vehicle for the purpose of rendering it usable by a person with

5 a disability, and insulin, urine testing materials, syringes,

6 and needles used by diabetics, for human use. For the purposes

7 of this Section, until September 1, 2009: the term "soft

8 drinks" means any complete, finished, ready-to-use,

9 non-alcoholic drink, whether carbonated or not, including but

10 not limited to soda water, cola, fruit juice, vegetable juice,

11 carbonated water, and all other preparations commonly known as

12 soft drinks of whatever kind or description that are contained

13 in any closed or sealed bottle, can, carton, or container,

14 regardless of size; but "soft drinks" does not include coffee,

15 tea, non-carbonated water, infant formula, milk or milk

16 products as defined in the Grade A Pasteurized Milk and Milk

17 Products Act, or drinks containing 50% or more natural fruit or

18 vegetable juice.

19 Notwithstanding any other provisions of this Act,

20 beginning September 1, 2009, "soft drinks" means non-alcoholic

21 beverages that contain natural or artificial sweeteners. "Soft

22 drinks" do not include beverages that contain milk or milk

23 products, soy, rice or similar milk substitutes, or greater

24 than 50% of vegetable or fruit juice by volume.

25 Until August 1, 2009, and notwithstanding any other

26 provisions of this Act, "food for human consumption that is to

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1 be consumed off the premises where it is sold" includes all

2 food sold through a vending machine, except soft drinks and

3 food products that are dispensed hot from a vending machine,

4 regardless of the location of the vending machine. Beginning

5 August 1, 2009, and notwithstanding any other provisions of

6 this Act, "food for human consumption that is to be consumed

7 off the premises where it is sold" includes all food sold

8 through a vending machine, except soft drinks, candy, and food

9 products that are dispensed hot from a vending machine,

10 regardless of the location of the vending machine.

11 Notwithstanding any other provisions of this Act,

12 beginning September 1, 2009, "food for human consumption that

13 is to be consumed off the premises where it is sold" does not

14 include candy. For purposes of this Section, "candy" means a

15 preparation of sugar, honey, or other natural or artificial

16 sweeteners in combination with chocolate, fruits, nuts or other

17 ingredients or flavorings in the form of bars, drops, or

18 pieces. "Candy" does not include any preparation that contains

19 flour or requires refrigeration.

20 Notwithstanding any other provisions of this Act,

21 beginning September 1, 2009, "nonprescription medicines and

22 drugs" does not include grooming and hygiene products. For

23 purposes of this Section, "grooming and hygiene products"

24 includes, but is not limited to, soaps and cleaning solutions,

25 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan

26 lotions and screens, unless those products are available by

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1 prescription only, regardless of whether the products meet the

2 definition of "over-the-counter-drugs". For the purposes of

3 this paragraph, "over-the-counter-drug" means a drug for human

4 use that contains a label that identifies the product as a drug

5 as required by 21 C.F.R. � 201.66. The "over-the-counter-drug"

6 label includes:

7 (A) A "Drug Facts" panel; or

8 (B) A statement of the "active ingredient(s)" with a

9 list of those ingredients contained in the compound,

10 substance or preparation.

11 Beginning on January 1, 2014 (the effective date of Public

12 Act 98-122), "prescription and nonprescription medicines and

13 drugs" includes medical cannabis purchased from a registered

14 dispensing organization under the Compassionate Use of Medical

15 Cannabis Pilot Program Act.

16 Beginning January 1, 2020, in addition to all other rates

17 of tax imposed under this Act, a surcharge of 7% is imposed on

18 the selling price of (1) each firearm purchased in the State

19 and (2) each firearm component part that is purchased in the

20 State and sold separately from the firearm. "Firearm" has the

21 meaning ascribed to that term in Section 1.1 of the Firearm

22 Owners Identification Card Act.

23 If the property that is acquired from a serviceman is

24 acquired outside Illinois and used outside Illinois before

25 being brought to Illinois for use here and is taxable under

26 this Act, the "selling price" on which the tax is computed

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1 shall be reduced by an amount that represents a reasonable

2 allowance for depreciation for the period of prior out-of-state

3 use.

4 (Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;

5 99-642, eff. 7-28-16; 99-858, eff. 8-19-16; 100-22, eff.

6 7-6-17.)

7 (35 ILCS 110/9) (from Ch. 120, par. 439.39)

8 Sec. 9. Each serviceman required or authorized to collect

9 the tax herein imposed shall pay to the Department the amount

10 of such tax (except as otherwise provided) at the time when he

11 is required to file his return for the period during which such

12 tax was collected, less a discount of 2.1% prior to January 1,

13 1990 and 1.75% on and after January 1, 1990, or $5 per calendar

14 year, whichever is greater, which is allowed to reimburse the

15 serviceman for expenses incurred in collecting the tax, keeping

16 records, preparing and filing returns, remitting the tax and

17 supplying data to the Department on request. The discount

18 allowed under this Section is allowed only for returns that are

19 filed in the manner required by this Act. The Department may

20 disallow the discount for servicemen whose certificate of

21 registration is revoked at the time the return is filed, but

22 only if the Department's decision to revoke the certificate of

23 registration has become final. A serviceman need not remit that

24 part of any tax collected by him to the extent that he is

25 required to pay and does pay the tax imposed by the Service

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1 Occupation Tax Act with respect to his sale of service

2 involving the incidental transfer by him of the same property.

3 Except as provided hereinafter in this Section, on or

4 before the twentieth day of each calendar month, such

5 serviceman shall file a return for the preceding calendar month

6 in accordance with reasonable Rules and Regulations to be

7 promulgated by the Department. Such return shall be filed on a

8 form prescribed by the Department and shall contain such

9 information as the Department may reasonably require. On and

10 after January 1, 2018, with respect to servicemen whose annual

11 gross receipts average $20,000 or more, all returns required to

12 be filed pursuant to this Act shall be filed electronically.

13 Servicemen who demonstrate that they do not have access to the

14 Internet or demonstrate hardship in filing electronically may

15 petition the Department to waive the electronic filing

16 requirement.

17 The Department may require returns to be filed on a

18 quarterly basis. If so required, a return for each calendar

19 quarter shall be filed on or before the twentieth day of the

20 calendar month following the end of such calendar quarter. The

21 taxpayer shall also file a return with the Department for each

22 of the first two months of each calendar quarter, on or before

23 the twentieth day of the following calendar month, stating:

24 1. The name of the seller;

25 2. The address of the principal place of business from

26 which he engages in business as a serviceman in this State;

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1 3. The total amount of taxable receipts received by him

2 during the preceding calendar month, including receipts

3 from charge and time sales, but less all deductions allowed

4 by law;