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| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0316 Introduced , by Rep. Joyce Mason SYNOPSIS AS INTRODUCED:
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| 35 ILCS 105/3-10 | | 35 ILCS 110/3-10 | from Ch. 120, par. 439.33-10 | 35 ILCS 115/3-10 | from Ch. 120, par. 439.103-10 | 35 ILCS 120/2-10 | |
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Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on January 1, 2022, the tax on gun safes and locks designed to secure firearms is imposed at the rate of 1%. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| | HB0316 | | LRB102 03906 HLH 13921 b |
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| 1 | | AN ACT concerning revenue.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Use Tax Act is amended by changing Section |
| 5 | | 3-10 as follows:
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| 6 | | (35 ILCS 105/3-10)
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| 7 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this |
| 8 | | Section, the tax
imposed by this Act is at the rate of 6.25% of |
| 9 | | either the selling price or the
fair market value, if any, of |
| 10 | | the tangible personal property. In all cases
where property |
| 11 | | functionally used or consumed is the same as the property that
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| 12 | | was purchased at retail, then the tax is imposed on the selling |
| 13 | | price of the
property. In all cases where property |
| 14 | | functionally used or consumed is a
by-product or waste product |
| 15 | | that has been refined, manufactured, or produced
from property |
| 16 | | purchased at retail, then the tax is imposed on the lower of |
| 17 | | the
fair market value, if any, of the specific property so used |
| 18 | | in this State or on
the selling price of the property purchased |
| 19 | | at retail. For purposes of this
Section "fair market value" |
| 20 | | means the price at which property would change
hands between a |
| 21 | | willing buyer and a willing seller, neither being under any
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| 22 | | compulsion to buy or sell and both having reasonable knowledge |
| 23 | | of the
relevant facts. The fair market value shall be |
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| 1 | | established by Illinois sales by
the taxpayer of the same |
| 2 | | property as that functionally used or consumed, or if
there |
| 3 | | are no such sales by the taxpayer, then comparable sales or |
| 4 | | purchases of
property of like kind and character in Illinois.
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| 5 | | Beginning on July 1, 2000 and through December 31, 2000, |
| 6 | | with respect to
motor fuel, as defined in Section 1.1 of the |
| 7 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of |
| 8 | | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
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| 9 | | Beginning on August 6, 2010 through August 15, 2010, with |
| 10 | | respect to sales tax holiday items as defined in Section 3-6 of |
| 11 | | this Act, the
tax is imposed at the rate of 1.25%. |
| 12 | | With respect to gasohol, the tax imposed by this Act |
| 13 | | applies to (i) 70%
of the proceeds of sales made on or after |
| 14 | | January 1, 1990, and before
July 1, 2003, (ii) 80% of the |
| 15 | | proceeds of sales made
on or after July 1, 2003 and on or |
| 16 | | before July 1, 2017, and (iii) 100% of the proceeds of sales |
| 17 | | made
thereafter.
If, at any time, however, the tax under this |
| 18 | | Act on sales of gasohol is
imposed at the
rate of 1.25%, then |
| 19 | | the tax imposed by this Act applies to 100% of the proceeds
of |
| 20 | | sales of gasohol made during that time.
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| 21 | | With respect to majority blended ethanol fuel, the tax |
| 22 | | imposed by this Act
does
not apply
to the proceeds of sales |
| 23 | | made on or after July 1, 2003 and on or before
December 31, |
| 24 | | 2023 but applies to 100% of the proceeds of sales made |
| 25 | | thereafter.
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| 26 | | With respect to biodiesel blends with no less than 1% and |
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| 1 | | no more than 10%
biodiesel, the tax imposed by this Act applies |
| 2 | | to (i) 80% of the
proceeds of sales made on or after July 1, |
| 3 | | 2003 and on or before December 31, 2018
and (ii) 100% of the |
| 4 | | proceeds of sales made
thereafter.
If, at any time, however, |
| 5 | | the tax under this Act on sales of biodiesel blends
with no |
| 6 | | less than 1% and no more than 10% biodiesel
is imposed at the |
| 7 | | rate of
1.25%, then the
tax imposed by this Act applies to 100% |
| 8 | | of the proceeds of sales of biodiesel
blends with no less than |
| 9 | | 1% and no more than 10% biodiesel
made
during that time.
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| 10 | | With respect to 100% biodiesel and biodiesel blends with |
| 11 | | more than 10%
but no more than 99% biodiesel, the tax imposed |
| 12 | | by this Act does not apply to
the
proceeds of sales made on or |
| 13 | | after July 1, 2003 and on or before
December 31, 2023 but |
| 14 | | applies to 100% of the proceeds of sales made
thereafter.
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| 15 | | With respect to gun safes and locks designed to secure |
| 16 | | firearms, beginning on January 1, 2022, the tax is imposed at |
| 17 | | the rate of 1%. |
| 18 | | With respect to food for human consumption that is to be |
| 19 | | consumed off the
premises where it is sold (other than |
| 20 | | alcoholic beverages, food consisting of or infused with adult |
| 21 | | use cannabis, soft drinks, and
food that has been prepared for |
| 22 | | immediate consumption) and prescription and
nonprescription |
| 23 | | medicines, drugs, medical appliances, products classified as |
| 24 | | Class III medical devices by the United States Food and Drug |
| 25 | | Administration that are used for cancer treatment pursuant to |
| 26 | | a prescription, as well as any accessories and components |
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| 1 | | related to those devices, modifications to a motor
vehicle for |
| 2 | | the purpose of rendering it usable by a person with a |
| 3 | | disability, and
insulin, urine testing materials, syringes, |
| 4 | | and needles used by diabetics, for
human use, the tax is |
| 5 | | imposed at the rate of 1%. For the purposes of this
Section, |
| 6 | | until September 1, 2009: the term "soft drinks" means any |
| 7 | | complete, finished, ready-to-use,
non-alcoholic drink, whether |
| 8 | | carbonated or not, including but not limited to
soda water, |
| 9 | | cola, fruit juice, vegetable juice, carbonated water, and all |
| 10 | | other
preparations commonly known as soft drinks of whatever |
| 11 | | kind or description that
are contained in any closed or sealed |
| 12 | | bottle, can, carton, or container,
regardless of size; but |
| 13 | | "soft drinks" does not include coffee, tea, non-carbonated
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| 14 | | water, infant formula, milk or milk products as defined in the |
| 15 | | Grade A
Pasteurized Milk and Milk Products Act, or drinks |
| 16 | | containing 50% or more
natural fruit or vegetable juice.
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| 17 | | Notwithstanding any other provisions of this
Act, |
| 18 | | beginning September 1, 2009, "soft drinks" means non-alcoholic |
| 19 | | beverages that contain natural or artificial sweeteners. "Soft |
| 20 | | drinks" do not include beverages that contain milk or milk |
| 21 | | products, soy, rice or similar milk substitutes, or greater |
| 22 | | than 50% of vegetable or fruit juice by volume. |
| 23 | | Until August 1, 2009, and notwithstanding any other |
| 24 | | provisions of this
Act, "food for human consumption that is to |
| 25 | | be consumed off the premises where
it is sold" includes all |
| 26 | | food sold through a vending machine, except soft
drinks and |
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| 1 | | food products that are dispensed hot from a vending machine,
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| 2 | | regardless of the location of the vending machine. Beginning |
| 3 | | August 1, 2009, and notwithstanding any other provisions of |
| 4 | | this Act, "food for human consumption that is to be consumed |
| 5 | | off the premises where it is sold" includes all food sold |
| 6 | | through a vending machine, except soft drinks, candy, and food |
| 7 | | products that are dispensed hot from a vending machine, |
| 8 | | regardless of the location of the vending machine.
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| 9 | | Notwithstanding any other provisions of this
Act, |
| 10 | | beginning September 1, 2009, "food for human consumption that |
| 11 | | is to be consumed off the premises where
it is sold" does not |
| 12 | | include candy. For purposes of this Section, "candy" means a |
| 13 | | preparation of sugar, honey, or other natural or artificial |
| 14 | | sweeteners in combination with chocolate, fruits, nuts or |
| 15 | | other ingredients or flavorings in the form of bars, drops, or |
| 16 | | pieces. "Candy" does not include any preparation that contains |
| 17 | | flour or requires refrigeration. |
| 18 | | Notwithstanding any other provisions of this
Act, |
| 19 | | beginning September 1, 2009, "nonprescription medicines and |
| 20 | | drugs" does not include grooming and hygiene products. For |
| 21 | | purposes of this Section, "grooming and hygiene products" |
| 22 | | includes, but is not limited to, soaps and cleaning solutions, |
| 23 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan |
| 24 | | lotions and screens, unless those products are available by |
| 25 | | prescription only, regardless of whether the products meet the |
| 26 | | definition of "over-the-counter-drugs". For the purposes of |
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| 1 | | this paragraph, "over-the-counter-drug" means a drug for human |
| 2 | | use that contains a label that identifies the product as a drug |
| 3 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" |
| 4 | | label includes: |
| 5 | | (A) A "Drug Facts" panel; or |
| 6 | | (B) A statement of the "active ingredient(s)" with a |
| 7 | | list of those ingredients contained in the compound, |
| 8 | | substance or preparation. |
| 9 | | Beginning on the effective date of this amendatory Act of |
| 10 | | the 98th General Assembly, "prescription and nonprescription |
| 11 | | medicines and drugs" includes medical cannabis purchased from |
| 12 | | a registered dispensing organization under the Compassionate |
| 13 | | Use of Medical Cannabis Program Act. |
| 14 | | As used in this Section, "adult use cannabis" means |
| 15 | | cannabis subject to tax under the Cannabis Cultivation |
| 16 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law |
| 17 | | and does not include cannabis subject to tax under the |
| 18 | | Compassionate Use of Medical Cannabis Program Act. |
| 19 | | If the property that is purchased at retail from a |
| 20 | | retailer is acquired
outside Illinois and used outside |
| 21 | | Illinois before being brought to Illinois
for use here and is |
| 22 | | taxable under this Act, the "selling price" on which
the tax is |
| 23 | | computed shall be reduced by an amount that represents a
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| 24 | | reasonable allowance for depreciation for the period of prior |
| 25 | | out-of-state use.
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| 26 | | (Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19; |
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| 1 | | 101-593, eff. 12-4-19.)
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| 2 | | Section 10. The Service Use Tax Act is amended by changing |
| 3 | | Section 3-10 as follows:
|
| 4 | | (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
|
| 5 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this |
| 6 | | Section,
the tax imposed by this Act is at the rate of 6.25% of |
| 7 | | the selling
price of tangible personal property transferred as |
| 8 | | an incident to the sale
of service, but, for the purpose of |
| 9 | | computing this tax, in no event shall
the selling price be less |
| 10 | | than the cost price of the property to the
serviceman.
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| 11 | | Beginning on July 1, 2000 and through December 31, 2000, |
| 12 | | with respect to
motor fuel, as defined in Section 1.1 of the |
| 13 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of |
| 14 | | the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
|
| 15 | | With respect to gasohol, as defined in the Use Tax Act, the |
| 16 | | tax imposed
by this Act applies to (i) 70% of the selling price |
| 17 | | of property transferred
as an incident to the sale of service |
| 18 | | on or after January 1, 1990,
and before July 1, 2003, (ii) 80% |
| 19 | | of the selling price of
property transferred as an incident to |
| 20 | | the sale of service on or after July
1, 2003 and on or before |
| 21 | | July 1, 2017, and (iii)
100% of the selling price thereafter.
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| 22 | | If, at any time, however, the tax under this Act on sales of |
| 23 | | gasohol, as
defined in
the Use Tax Act, is imposed at the rate |
| 24 | | of 1.25%, then the
tax imposed by this Act applies to 100% of |
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| 1 | | the proceeds of sales of gasohol
made during that time.
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| 2 | | With respect to majority blended ethanol fuel, as defined |
| 3 | | in the Use Tax Act,
the
tax
imposed by this Act does not apply |
| 4 | | to the selling price of property transferred
as an incident to |
| 5 | | the sale of service on or after July 1, 2003 and on or before
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| 6 | | December 31, 2023 but applies to 100% of the selling price |
| 7 | | thereafter.
|
| 8 | | With respect to biodiesel blends, as defined in the Use |
| 9 | | Tax Act, with no less
than 1% and no
more than 10% biodiesel, |
| 10 | | the tax imposed by this Act
applies to (i) 80% of the selling |
| 11 | | price of property transferred as an incident
to the sale of |
| 12 | | service on or after July 1, 2003 and on or before December 31, |
| 13 | | 2018
and (ii) 100% of the proceeds of the selling price
|
| 14 | | thereafter.
If, at any time, however, the tax under this Act on |
| 15 | | sales of biodiesel blends,
as
defined in the Use Tax Act, with |
| 16 | | no less than 1% and no more than 10% biodiesel
is imposed at |
| 17 | | the rate of 1.25%, then the
tax imposed by this Act applies to |
| 18 | | 100% of the proceeds of sales of biodiesel
blends with no less |
| 19 | | than 1% and no more than 10% biodiesel
made
during that time.
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| 20 | | With respect to 100% biodiesel, as defined in the Use Tax |
| 21 | | Act, and biodiesel
blends, as defined in the Use Tax Act, with
|
| 22 | | more than 10% but no more than 99% biodiesel, the tax imposed |
| 23 | | by this Act
does not apply to the proceeds of the selling price |
| 24 | | of property transferred
as an incident to the sale of service |
| 25 | | on or after July 1, 2003 and on or before
December 31, 2023 but |
| 26 | | applies to 100% of the selling price thereafter.
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| 1 | | At the election of any registered serviceman made for each |
| 2 | | fiscal year,
sales of service in which the aggregate annual |
| 3 | | cost price of tangible
personal property transferred as an |
| 4 | | incident to the sales of service is
less than 35%, or 75% in |
| 5 | | the case of servicemen transferring prescription
drugs or |
| 6 | | servicemen engaged in graphic arts production, of the |
| 7 | | aggregate
annual total gross receipts from all sales of |
| 8 | | service, the tax imposed by
this Act shall be based on the |
| 9 | | serviceman's cost price of the tangible
personal property |
| 10 | | transferred as an incident to the sale of those services.
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| 11 | | With respect to gun safes and locks designed to secure |
| 12 | | firearms, beginning on January 1, 2022, the tax is imposed at |
| 13 | | the rate of 1%. |
| 14 | | The tax shall be imposed at the rate of 1% on food prepared |
| 15 | | for
immediate consumption and transferred incident to a sale |
| 16 | | of service subject
to this Act or the Service Occupation Tax |
| 17 | | Act by an entity licensed under
the Hospital Licensing Act, |
| 18 | | the Nursing Home Care Act, the ID/DD Community Care Act, the |
| 19 | | MC/DD Act, the Specialized Mental Health Rehabilitation Act of |
| 20 | | 2013, or the
Child Care
Act of 1969. The tax shall
also be |
| 21 | | imposed at the rate of 1% on food for human consumption that is |
| 22 | | to be
consumed off the premises where it is sold (other than |
| 23 | | alcoholic beverages, food consisting of or infused with adult |
| 24 | | use cannabis,
soft drinks, and food that has been prepared for |
| 25 | | immediate consumption and is
not otherwise included in this |
| 26 | | paragraph) and prescription and nonprescription
medicines, |
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| 1 | | drugs, medical appliances, products classified as Class III |
| 2 | | medical devices by the United States Food and Drug |
| 3 | | Administration that are used for cancer treatment pursuant to |
| 4 | | a prescription, as well as any accessories and components |
| 5 | | related to those devices, modifications to a motor vehicle for |
| 6 | | the
purpose of rendering it usable by a person with a |
| 7 | | disability, and insulin, urine testing
materials,
syringes, |
| 8 | | and needles used by diabetics, for
human use. For the purposes |
| 9 | | of this Section, until September 1, 2009: the term "soft |
| 10 | | drinks" means any
complete, finished, ready-to-use, |
| 11 | | non-alcoholic drink, whether carbonated or
not, including but |
| 12 | | not limited to soda water, cola, fruit juice, vegetable
juice, |
| 13 | | carbonated water, and all other preparations commonly known as |
| 14 | | soft
drinks of whatever kind or description that are contained |
| 15 | | in any closed or
sealed bottle, can, carton, or container, |
| 16 | | regardless of size; but "soft drinks"
does not include coffee, |
| 17 | | tea, non-carbonated water, infant formula, milk or
milk |
| 18 | | products as defined in the Grade A Pasteurized Milk and Milk |
| 19 | | Products Act,
or drinks containing 50% or more natural fruit |
| 20 | | or vegetable juice.
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| 21 | | Notwithstanding any other provisions of this
Act, |
| 22 | | beginning September 1, 2009, "soft drinks" means non-alcoholic |
| 23 | | beverages that contain natural or artificial sweeteners. "Soft |
| 24 | | drinks" do not include beverages that contain milk or milk |
| 25 | | products, soy, rice or similar milk substitutes, or greater |
| 26 | | than 50% of vegetable or fruit juice by volume. |
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| 1 | | Until August 1, 2009, and notwithstanding any other |
| 2 | | provisions of this Act, "food for human
consumption that is to |
| 3 | | be consumed off the premises where it is sold" includes
all |
| 4 | | food sold through a vending machine, except soft drinks and |
| 5 | | food products
that are dispensed hot from a vending machine, |
| 6 | | regardless of the location of
the vending machine. Beginning |
| 7 | | August 1, 2009, and notwithstanding any other provisions of |
| 8 | | this Act, "food for human consumption that is to be consumed |
| 9 | | off the premises where it is sold" includes all food sold |
| 10 | | through a vending machine, except soft drinks, candy, and food |
| 11 | | products that are dispensed hot from a vending machine, |
| 12 | | regardless of the location of the vending machine.
|
| 13 | | Notwithstanding any other provisions of this
Act, |
| 14 | | beginning September 1, 2009, "food for human consumption that |
| 15 | | is to be consumed off the premises where
it is sold" does not |
| 16 | | include candy. For purposes of this Section, "candy" means a |
| 17 | | preparation of sugar, honey, or other natural or artificial |
| 18 | | sweeteners in combination with chocolate, fruits, nuts or |
| 19 | | other ingredients or flavorings in the form of bars, drops, or |
| 20 | | pieces. "Candy" does not include any preparation that contains |
| 21 | | flour or requires refrigeration. |
| 22 | | Notwithstanding any other provisions of this
Act, |
| 23 | | beginning September 1, 2009, "nonprescription medicines and |
| 24 | | drugs" does not include grooming and hygiene products. For |
| 25 | | purposes of this Section, "grooming and hygiene products" |
| 26 | | includes, but is not limited to, soaps and cleaning solutions, |
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| 1 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan |
| 2 | | lotions and screens, unless those products are available by |
| 3 | | prescription only, regardless of whether the products meet the |
| 4 | | definition of "over-the-counter-drugs". For the purposes of |
| 5 | | this paragraph, "over-the-counter-drug" means a drug for human |
| 6 | | use that contains a label that identifies the product as a drug |
| 7 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" |
| 8 | | label includes: |
| 9 | | (A) A "Drug Facts" panel; or |
| 10 | | (B) A statement of the "active ingredient(s)" with a |
| 11 | | list of those ingredients contained in the compound, |
| 12 | | substance or preparation. |
| 13 | | Beginning on January 1, 2014 (the effective date of Public |
| 14 | | Act 98-122), "prescription and nonprescription medicines and |
| 15 | | drugs" includes medical cannabis purchased from a registered |
| 16 | | dispensing organization under the Compassionate Use of Medical |
| 17 | | Cannabis Program Act. |
| 18 | | As used in this Section, "adult use cannabis" means |
| 19 | | cannabis subject to tax under the Cannabis Cultivation |
| 20 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law |
| 21 | | and does not include cannabis subject to tax under the |
| 22 | | Compassionate Use of Medical Cannabis Program 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 |
| 3 | | out-of-state use.
|
| 4 | | (Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19; |
| 5 | | 101-593, eff. 12-4-19.)
|
| 6 | | Section 15. The Service Occupation Tax Act is amended by |
| 7 | | changing Section 3-10 as follows:
|
| 8 | | (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
|
| 9 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this |
| 10 | | Section,
the tax imposed by this Act is at the rate of 6.25% of |
| 11 | | the "selling price",
as defined in Section 2 of the Service Use |
| 12 | | Tax Act, of the tangible
personal property. For the purpose of |
| 13 | | computing this tax, in no event
shall the "selling price" be |
| 14 | | less than the cost price to the serviceman of
the tangible |
| 15 | | personal property transferred. The selling price of each item
|
| 16 | | of tangible personal property transferred as an incident of a |
| 17 | | sale of
service may be shown as a distinct and separate item on |
| 18 | | the serviceman's
billing to the service customer. If the |
| 19 | | selling price is not so shown, the
selling price of the |
| 20 | | tangible personal property is deemed to be 50% of the
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| 21 | | serviceman's entire billing to the service customer. When, |
| 22 | | however, a
serviceman contracts to design, develop, and |
| 23 | | produce special order machinery or
equipment, the tax imposed |
| 24 | | by this Act shall be based on the serviceman's
cost price of |
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| 1 | | the tangible personal property transferred incident to the
|
| 2 | | completion of the contract.
|
| 3 | | Beginning on July 1, 2000 and through December 31, 2000, |
| 4 | | with respect to
motor fuel, as defined in Section 1.1 of the |
| 5 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of |
| 6 | | the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
|
| 7 | | With respect to gasohol, as defined in the Use Tax Act, the |
| 8 | | tax imposed
by this Act shall apply to (i) 70% of the cost |
| 9 | | price of property
transferred as
an incident to the sale of |
| 10 | | service on or after January 1, 1990, and before
July 1, 2003, |
| 11 | | (ii) 80% of the selling price of property transferred as an
|
| 12 | | incident to the sale of service on or after July
1, 2003 and on |
| 13 | | or before July 1, 2017, and (iii) 100%
of
the cost price
|
| 14 | | thereafter.
If, at any time, however, the tax under this Act on |
| 15 | | sales of gasohol, as
defined in
the Use Tax Act, is imposed at |
| 16 | | the rate of 1.25%, then the
tax imposed by this Act applies to |
| 17 | | 100% of the proceeds of sales of gasohol
made during that time.
|
| 18 | | With respect to majority blended ethanol fuel, as defined |
| 19 | | in the Use Tax Act,
the
tax
imposed by this Act does not apply |
| 20 | | to the selling price of property transferred
as an incident to |
| 21 | | the sale of service on or after July 1, 2003 and on or before
|
| 22 | | December 31, 2023 but applies to 100% of the selling price |
| 23 | | thereafter.
|
| 24 | | With respect to gun safes and locks designed to secure |
| 25 | | firearms, beginning on January 1, 2022, the tax is imposed at |
| 26 | | the rate of 1%. |
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| 1 | | With respect to biodiesel blends, as defined in the Use |
| 2 | | Tax Act, with no less
than 1% and no
more than 10% biodiesel, |
| 3 | | the tax imposed by this Act
applies to (i) 80% of the selling |
| 4 | | price of property transferred as an incident
to the sale of |
| 5 | | service on or after July 1, 2003 and on or before December 31, |
| 6 | | 2018
and (ii) 100% of the proceeds of the selling price
|
| 7 | | thereafter.
If, at any time, however, the tax under this Act on |
| 8 | | sales of biodiesel blends,
as
defined in the Use Tax Act, with |
| 9 | | no less than 1% and no more than 10% biodiesel
is imposed at |
| 10 | | the rate of 1.25%, then the
tax imposed by this Act applies to |
| 11 | | 100% of the proceeds of sales of biodiesel
blends with no less |
| 12 | | than 1% and no more than 10% biodiesel
made
during that time.
|
| 13 | | With respect to 100% biodiesel, as defined in the Use Tax |
| 14 | | Act, and biodiesel
blends, as defined in the Use Tax Act, with
|
| 15 | | more than 10% but no more than 99% biodiesel material, the tax |
| 16 | | imposed by this
Act
does not apply to the proceeds of the |
| 17 | | selling price of property transferred
as an incident to the |
| 18 | | sale of service on or after July 1, 2003 and on or before
|
| 19 | | December 31, 2023 but applies to 100% of the selling price |
| 20 | | thereafter.
|
| 21 | | At the election of any registered serviceman made for each |
| 22 | | fiscal year,
sales of service in which the aggregate annual |
| 23 | | cost price of tangible
personal property transferred as an |
| 24 | | incident to the sales of service is
less than 35%, or 75% in |
| 25 | | the case of servicemen transferring prescription
drugs or |
| 26 | | servicemen engaged in graphic arts production, of the |
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| 1 | | aggregate
annual total gross receipts from all sales of |
| 2 | | service, the tax imposed by
this Act shall be based on the |
| 3 | | serviceman's cost price of the tangible
personal property |
| 4 | | transferred incident to the sale of those services.
|
| 5 | | The tax shall be imposed at the rate of 1% on food prepared |
| 6 | | for
immediate consumption and transferred incident to a sale |
| 7 | | of service subject
to this Act or the Service Occupation Tax |
| 8 | | Act by an entity licensed under
the Hospital Licensing Act, |
| 9 | | the Nursing Home Care Act, the ID/DD Community Care Act, the |
| 10 | | MC/DD Act, the Specialized Mental Health Rehabilitation Act of |
| 11 | | 2013, or the
Child Care Act of 1969. The tax shall
also be |
| 12 | | imposed at the rate of 1% on food for human consumption that is
|
| 13 | | to be consumed off the
premises where it is sold (other than |
| 14 | | alcoholic beverages, food consisting of or infused with adult |
| 15 | | use cannabis, soft drinks, and
food that has been prepared for |
| 16 | | immediate consumption and is not
otherwise included in this |
| 17 | | paragraph) and prescription and
nonprescription medicines, |
| 18 | | drugs, medical appliances, products classified as Class III |
| 19 | | medical devices by the United States Food and Drug |
| 20 | | Administration that are used for cancer treatment pursuant to |
| 21 | | a prescription, as well as any accessories and components |
| 22 | | related to those devices, modifications to a motor
vehicle for |
| 23 | | the purpose of rendering it usable by a person with a |
| 24 | | disability, and
insulin, urine testing materials, syringes, |
| 25 | | and needles used by diabetics, for
human use. For the purposes |
| 26 | | of this Section, until September 1, 2009: the term "soft |
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| 1 | | drinks" means any
complete, finished, ready-to-use, |
| 2 | | non-alcoholic drink, whether carbonated or
not, including but |
| 3 | | not limited to soda water, cola, fruit juice, vegetable
juice, |
| 4 | | carbonated water, and all other preparations commonly known as |
| 5 | | soft
drinks of whatever kind or description that are contained |
| 6 | | in any closed or
sealed can, carton, or container, regardless |
| 7 | | of size; but "soft drinks" does not
include coffee, tea, |
| 8 | | non-carbonated water, infant formula, milk or milk
products as |
| 9 | | defined in the Grade A Pasteurized Milk and Milk Products Act, |
| 10 | | or
drinks containing 50% or more natural fruit or vegetable |
| 11 | | juice.
|
| 12 | | Notwithstanding any other provisions of this
Act, |
| 13 | | beginning September 1, 2009, "soft drinks" means non-alcoholic |
| 14 | | beverages that contain natural or artificial sweeteners. "Soft |
| 15 | | drinks" do not include beverages that contain milk or milk |
| 16 | | products, soy, rice or similar milk substitutes, or greater |
| 17 | | than 50% of vegetable or fruit juice by volume. |
| 18 | | Until August 1, 2009, and notwithstanding any other |
| 19 | | provisions of this Act, "food for human consumption
that is to |
| 20 | | be consumed off the premises where it is sold" includes all |
| 21 | | food
sold through a vending machine, except soft drinks and |
| 22 | | food products that are
dispensed hot from a vending machine, |
| 23 | | regardless of the location of the vending
machine. Beginning |
| 24 | | August 1, 2009, and notwithstanding any other provisions of |
| 25 | | this Act, "food for human consumption that is to be consumed |
| 26 | | off the premises where it is sold" includes all food sold |
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| 1 | | through a vending machine, except soft drinks, candy, and food |
| 2 | | products that are dispensed hot from a vending machine, |
| 3 | | regardless of the location of the vending machine.
|
| 4 | | Notwithstanding any other provisions of this
Act, |
| 5 | | beginning September 1, 2009, "food for human consumption that |
| 6 | | is to be consumed off the premises where
it is sold" does not |
| 7 | | include candy. For purposes of this Section, "candy" means a |
| 8 | | preparation of sugar, honey, or other natural or artificial |
| 9 | | sweeteners in combination with chocolate, fruits, nuts or |
| 10 | | other ingredients or flavorings in the form of bars, drops, or |
| 11 | | pieces. "Candy" does not include any preparation that contains |
| 12 | | flour or requires refrigeration. |
| 13 | | Notwithstanding any other provisions of this
Act, |
| 14 | | beginning September 1, 2009, "nonprescription medicines and |
| 15 | | drugs" does not include grooming and hygiene products. For |
| 16 | | purposes of this Section, "grooming and hygiene products" |
| 17 | | includes, but is not limited to, soaps and cleaning solutions, |
| 18 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan |
| 19 | | lotions and screens, unless those products are available by |
| 20 | | prescription only, regardless of whether the products meet the |
| 21 | | definition of "over-the-counter-drugs". For the purposes of |
| 22 | | this paragraph, "over-the-counter-drug" means a drug for human |
| 23 | | use that contains a label that identifies the product as a drug |
| 24 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" |
| 25 | | label includes: |
| 26 | | (A) A "Drug Facts" panel; or |
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| 1 | | (B) A statement of the "active ingredient(s)" with a |
| 2 | | list of those ingredients contained in the compound, |
| 3 | | substance or preparation. |
| 4 | | Beginning on January 1, 2014 (the effective date of Public |
| 5 | | Act 98-122), "prescription and nonprescription medicines and |
| 6 | | drugs" includes medical cannabis purchased from a registered |
| 7 | | dispensing organization under the Compassionate Use of Medical |
| 8 | | Cannabis Program Act. |
| 9 | | As used in this Section, "adult use cannabis" means |
| 10 | | cannabis subject to tax under the Cannabis Cultivation |
| 11 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law |
| 12 | | and does not include cannabis subject to tax under the |
| 13 | | Compassionate Use of Medical Cannabis Program Act. |
| 14 | | (Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19; |
| 15 | | 101-593, eff. 12-4-19.)
|
| 16 | | Section 20. The Retailers' Occupation Tax Act is amended |
| 17 | | by changing Section 2-10 as follows:
|
| 18 | | (35 ILCS 120/2-10)
|
| 19 | | Sec. 2-10. Rate of tax. Unless otherwise provided in this |
| 20 | | Section,
the tax imposed by this Act is at the rate of 6.25% of |
| 21 | | gross receipts
from sales of tangible personal property made |
| 22 | | in the course of business.
|
| 23 | | Beginning on July 1, 2000 and through December 31, 2000, |
| 24 | | with respect to
motor fuel, as defined in Section 1.1 of the |
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| 1 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of |
| 2 | | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
|
| 3 | | Beginning on August 6, 2010 through August 15, 2010, with |
| 4 | | respect to sales tax holiday items as defined in Section 2-8 of |
| 5 | | this Act, the
tax is imposed at the rate of 1.25%. |
| 6 | | Within 14 days after the effective date of this amendatory |
| 7 | | Act of the 91st
General Assembly, each retailer of motor fuel |
| 8 | | and gasohol shall cause the
following notice to be posted in a |
| 9 | | prominently visible place on each retail
dispensing device |
| 10 | | that is used to dispense motor
fuel or gasohol in the State of |
| 11 | | Illinois: "As of July 1, 2000, the State of
Illinois has |
| 12 | | eliminated the State's share of sales tax on motor fuel and
|
| 13 | | gasohol through December 31, 2000. The price on this pump |
| 14 | | should reflect the
elimination of the tax." The notice shall |
| 15 | | be printed in bold print on a sign
that is no smaller than 4 |
| 16 | | inches by 8 inches. The sign shall be clearly
visible to |
| 17 | | customers. Any retailer who fails to post or maintain a |
| 18 | | required
sign through December 31, 2000 is guilty of a petty |
| 19 | | offense for which the fine
shall be $500 per day per each |
| 20 | | retail premises where a violation occurs.
|
| 21 | | With respect to gasohol, as defined in the Use Tax Act, the |
| 22 | | tax imposed
by this Act applies to (i) 70% of the proceeds of |
| 23 | | sales made on or after
January 1, 1990, and before July 1, |
| 24 | | 2003, (ii) 80% of the proceeds of
sales made on or after July |
| 25 | | 1, 2003 and on or before July 1, 2017, and (iii) 100% of the |
| 26 | | proceeds of sales
made thereafter.
If, at any time, however, |
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| 1 | | the tax under this Act on sales of gasohol, as
defined in
the |
| 2 | | Use Tax Act, is imposed at the rate of 1.25%, then the
tax |
| 3 | | imposed by this Act applies to 100% of the proceeds of sales of |
| 4 | | gasohol
made during that time.
|
| 5 | | With respect to majority blended ethanol fuel, as defined |
| 6 | | in the Use Tax Act,
the
tax
imposed by this Act does not apply |
| 7 | | to the proceeds of sales made on or after
July 1, 2003 and on |
| 8 | | or before December 31, 2023 but applies to 100% of the
proceeds |
| 9 | | of sales made thereafter.
|
| 10 | | With respect to biodiesel blends, as defined in the Use |
| 11 | | Tax Act, with no less
than 1% and no
more than 10% biodiesel, |
| 12 | | the tax imposed by this Act
applies to (i) 80% of the proceeds |
| 13 | | of sales made on or after July 1, 2003
and on or before |
| 14 | | December 31, 2018 and (ii) 100% of the
proceeds of sales made |
| 15 | | thereafter.
If, at any time, however, the tax under this Act on |
| 16 | | sales of biodiesel blends,
as
defined in the Use Tax Act, with |
| 17 | | no less than 1% and no more than 10% biodiesel
is imposed at |
| 18 | | the rate of 1.25%, then the
tax imposed by this Act applies to |
| 19 | | 100% of the proceeds of sales of biodiesel
blends with no less |
| 20 | | than 1% and no more than 10% biodiesel
made
during that time.
|
| 21 | | With respect to 100% biodiesel, as defined in the Use Tax |
| 22 | | Act, and biodiesel
blends, as defined in the Use Tax Act, with
|
| 23 | | more than 10% but no more than 99% biodiesel, the tax imposed |
| 24 | | by this Act
does not apply to the proceeds of sales made on or |
| 25 | | after July 1, 2003
and on or before December 31, 2023 but |
| 26 | | applies to 100% of the
proceeds of sales made thereafter.
|
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| 1 | | With respect to gun safes and locks designed to secure |
| 2 | | firearms, beginning on January 1, 2022, the tax is imposed at |
| 3 | | the rate of 1%. |
| 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, food consisting of or infused with adult |
| 7 | | use cannabis, soft drinks, and
food that has been prepared for |
| 8 | | immediate consumption) and prescription and
nonprescription |
| 9 | | medicines, drugs, medical appliances, products classified as |
| 10 | | Class III medical devices by the United States Food and Drug |
| 11 | | Administration that are used for cancer treatment pursuant to |
| 12 | | a prescription, as well as any accessories and components |
| 13 | | related to those devices, modifications to a motor
vehicle for |
| 14 | | the purpose of rendering it usable by a person with a |
| 15 | | disability, and
insulin, urine testing materials, syringes, |
| 16 | | and needles used by diabetics, for
human use, the tax is |
| 17 | | imposed at the rate of 1%. For the purposes of this
Section, |
| 18 | | until September 1, 2009: the term "soft drinks" means any |
| 19 | | complete, finished, ready-to-use,
non-alcoholic drink, whether |
| 20 | | carbonated or not, including but not limited to
soda water, |
| 21 | | cola, fruit juice, vegetable juice, carbonated water, and all |
| 22 | | other
preparations commonly known as soft drinks of whatever |
| 23 | | kind or description that
are contained in any closed or sealed |
| 24 | | bottle, can, carton, or container,
regardless of size; but |
| 25 | | "soft drinks" does not include coffee, tea, non-carbonated
|
| 26 | | water, infant formula, milk or milk products as defined in the |
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| 1 | | Grade A
Pasteurized Milk and Milk Products Act, or drinks |
| 2 | | containing 50% or more
natural fruit or vegetable juice.
|
| 3 | | Notwithstanding any other provisions of this
Act, |
| 4 | | beginning September 1, 2009, "soft drinks" means non-alcoholic |
| 5 | | beverages that contain natural or artificial sweeteners. "Soft |
| 6 | | drinks" do not include beverages that contain milk or milk |
| 7 | | products, soy, rice or similar milk substitutes, or greater |
| 8 | | than 50% of vegetable or fruit juice by volume. |
| 9 | | Until August 1, 2009, and notwithstanding any other |
| 10 | | provisions of this
Act, "food for human consumption that is to |
| 11 | | be consumed off the premises where
it is sold" includes all |
| 12 | | food sold through a vending machine, except soft
drinks and |
| 13 | | food products that are dispensed hot from a vending machine,
|
| 14 | | regardless of the location of the vending machine. Beginning |
| 15 | | August 1, 2009, and notwithstanding any other provisions of |
| 16 | | this Act, "food for human consumption that is to be consumed |
| 17 | | off the premises where it is sold" includes all food sold |
| 18 | | through a vending machine, except soft drinks, candy, and food |
| 19 | | products that are dispensed hot from a vending machine, |
| 20 | | regardless of the location of the vending machine.
|
| 21 | | Notwithstanding any other provisions of this
Act, |
| 22 | | beginning September 1, 2009, "food for human consumption that |
| 23 | | is to be consumed off the premises where
it is sold" does not |
| 24 | | include candy. For purposes of this Section, "candy" means a |
| 25 | | preparation of sugar, honey, or other natural or artificial |
| 26 | | sweeteners in combination with chocolate, fruits, nuts or |
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| 1 | | other ingredients or flavorings in the form of bars, drops, or |
| 2 | | pieces. "Candy" does not include any preparation that contains |
| 3 | | flour or requires refrigeration. |
| 4 | | Notwithstanding any other provisions of this
Act, |
| 5 | | beginning September 1, 2009, "nonprescription medicines and |
| 6 | | drugs" does not include grooming and hygiene products. For |
| 7 | | purposes of this Section, "grooming and hygiene products" |
| 8 | | includes, but is not limited to, soaps and cleaning solutions, |
| 9 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan |
| 10 | | lotions and screens, unless those products are available by |
| 11 | | prescription only, regardless of whether the products meet the |
| 12 | | definition of "over-the-counter-drugs". For the purposes of |
| 13 | | this paragraph, "over-the-counter-drug" means a drug for human |
| 14 | | use that contains a label that identifies the product as a drug |
| 15 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" |
| 16 | | label includes: |
| 17 | | (A) A "Drug Facts" panel; or |
| 18 | | (B) A statement of the "active ingredient(s)" with a |
| 19 | | list of those ingredients contained in the compound, |
| 20 | | substance or preparation.
|
| 21 | | Beginning on the effective date of this amendatory Act of |
| 22 | | the 98th General Assembly, "prescription and nonprescription |
| 23 | | medicines and drugs" includes medical cannabis purchased from |
| 24 | | a registered dispensing organization under the Compassionate |
| 25 | | Use of Medical Cannabis Program Act. |
| 26 | | As used in this Section, "adult use cannabis" means |