101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2526

 

Introduced , by Rep. Tom Demmer

 

SYNOPSIS AS INTRODUCED:
 
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

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that adult diapers sold as incontinence products are taxed at the rate of 1% (currently, 6.25%).


LRB101 05235 HLH 50248 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2526LRB101 05235 HLH 50248 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section
53-10 as follows:
 
6    (35 ILCS 105/3-10)
7    Sec. 3-10. Rate of tax. Unless otherwise provided in this
8Section, the tax imposed by this Act is at the rate of 6.25% of
9either the selling price or the fair market value, if any, of
10the tangible personal property. In all cases where property
11functionally used or consumed is the same as the property that
12was purchased at retail, then the tax is imposed on the selling
13price of the property. In all cases where property functionally
14used or consumed is a by-product or waste product that has been
15refined, manufactured, or produced from property purchased at
16retail, then the tax is imposed on the lower of the fair market
17value, if any, of the specific property so used in this State
18or on the selling price of the property purchased at retail.
19For purposes of this Section "fair market value" means the
20price at which property would change hands between a willing
21buyer and a willing seller, neither being under any compulsion
22to buy or sell and both having reasonable knowledge of the
23relevant facts. The fair market value shall be established by

 

 

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1Illinois sales by the taxpayer of the same property as that
2functionally used or consumed, or if there are no such sales by
3the taxpayer, then comparable sales or purchases of property of
4like kind and character in Illinois.
5    Beginning on July 1, 2000 and through December 31, 2000,
6with respect to motor fuel, as defined in Section 1.1 of the
7Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
8the Use Tax Act, the tax is imposed at the rate of 1.25%.
9    Beginning on August 6, 2010 through August 15, 2010, with
10respect to sales tax holiday items as defined in Section 3-6 of
11this Act, the tax is imposed at the rate of 1.25%.
12    With respect to gasohol, the tax imposed by this Act
13applies to (i) 70% of the proceeds of sales made on or after
14January 1, 1990, and before July 1, 2003, (ii) 80% of the
15proceeds of sales made on or after July 1, 2003 and on or
16before July 1, 2017, and (iii) 100% of the proceeds of sales
17made thereafter. If, at any time, however, the tax under this
18Act on sales of gasohol is imposed at the rate of 1.25%, then
19the tax imposed by this Act applies to 100% of the proceeds of
20sales of gasohol made during that time.
21    With respect to majority blended ethanol fuel, the tax
22imposed by this Act does not apply to the proceeds of sales
23made on or after July 1, 2003 and on or before December 31,
242023 but applies to 100% of the proceeds of sales made
25thereafter.
26    With respect to biodiesel blends with no less than 1% and

 

 

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1no more than 10% biodiesel, the tax imposed by this Act applies
2to (i) 80% of the proceeds of sales made on or after July 1,
32003 and on or before December 31, 2018 and (ii) 100% of the
4proceeds of sales made thereafter. If, at any time, however,
5the tax under this Act on sales of biodiesel blends with no
6less than 1% and no more than 10% biodiesel is imposed at the
7rate of 1.25%, then the tax imposed by this Act applies to 100%
8of the proceeds of sales of biodiesel blends with no less than
91% and no more than 10% biodiesel made during that time.
10    With respect to 100% biodiesel and biodiesel blends with
11more than 10% but no more than 99% biodiesel, the tax imposed
12by this Act does not apply to the proceeds of sales made on or
13after July 1, 2003 and on or before December 31, 2023 but
14applies to 100% of the proceeds of sales made thereafter.
15    With respect to food for human consumption that is to be
16consumed off the premises where it is sold (other than
17alcoholic beverages, soft drinks, and food that has been
18prepared for immediate consumption) and prescription and
19nonprescription medicines, drugs, medical appliances, adult
20diapers sold as incontinence products, products classified as
21Class III medical devices by the United States Food and Drug
22Administration that are used for cancer treatment pursuant to a
23prescription, as well as any accessories and components related
24to those devices, modifications to a motor vehicle for the
25purpose of rendering it usable by a person with a disability,
26and insulin, urine testing materials, syringes, and needles

 

 

HB2526- 4 -LRB101 05235 HLH 50248 b

1used by diabetics, for human use, the tax is imposed at the
2rate of 1%. For the purposes of this Section, until September
31, 2009: the term "soft drinks" means any complete, finished,
4ready-to-use, non-alcoholic drink, whether carbonated or not,
5including but not limited to soda water, cola, fruit juice,
6vegetable juice, carbonated water, and all other preparations
7commonly known as soft drinks of whatever kind or description
8that are contained in any closed or sealed bottle, can, carton,
9or container, regardless of size; but "soft drinks" does not
10include coffee, tea, non-carbonated water, infant formula,
11milk or milk products as defined in the Grade A Pasteurized
12Milk and Milk Products Act, or drinks containing 50% or more
13natural fruit or vegetable juice.
14    Notwithstanding any other provisions of this Act,
15beginning September 1, 2009, "soft drinks" means non-alcoholic
16beverages that contain natural or artificial sweeteners. "Soft
17drinks" do not include beverages that contain milk or milk
18products, soy, rice or similar milk substitutes, or greater
19than 50% of vegetable or fruit juice by volume.
20    Until August 1, 2009, and notwithstanding any other
21provisions of this Act, "food for human consumption that is to
22be consumed off the premises where it is sold" includes all
23food sold through a vending machine, except soft drinks and
24food products that are dispensed hot from a vending machine,
25regardless of the location of the vending machine. Beginning
26August 1, 2009, and notwithstanding any other provisions of

 

 

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1this Act, "food for human consumption that is to be consumed
2off the premises where it is sold" includes all food sold
3through a vending machine, except soft drinks, candy, and food
4products that are dispensed hot from a vending machine,
5regardless of the location of the vending machine.
6    Notwithstanding any other provisions of this Act,
7beginning September 1, 2009, "food for human consumption that
8is to be consumed off the premises where it is sold" does not
9include candy. For purposes of this Section, "candy" means a
10preparation of sugar, honey, or other natural or artificial
11sweeteners in combination with chocolate, fruits, nuts or other
12ingredients or flavorings in the form of bars, drops, or
13pieces. "Candy" does not include any preparation that contains
14flour or requires refrigeration.
15    Notwithstanding any other provisions of this Act,
16beginning September 1, 2009, "nonprescription medicines and
17drugs" does not include grooming and hygiene products. For
18purposes of this Section, "grooming and hygiene products"
19includes, but is not limited to, soaps and cleaning solutions,
20shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
21lotions and screens, unless those products are available by
22prescription only, regardless of whether the products meet the
23definition of "over-the-counter-drugs". For the purposes of
24this paragraph, "over-the-counter-drug" means a drug for human
25use that contains a label that identifies the product as a drug
26as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"

 

 

HB2526- 6 -LRB101 05235 HLH 50248 b

1label includes:
2        (A) A "Drug Facts" panel; or
3        (B) A statement of the "active ingredient(s)" with a
4    list of those ingredients contained in the compound,
5    substance or preparation.
6    Beginning on the effective date of this amendatory Act of
7the 98th General Assembly, "prescription and nonprescription
8medicines and drugs" includes medical cannabis purchased from a
9registered dispensing organization under the Compassionate Use
10of Medical Cannabis Pilot Program Act.
11    If the property that is purchased at retail from a retailer
12is acquired outside Illinois and used outside Illinois before
13being brought to Illinois for use here and is taxable under
14this Act, the "selling price" on which the tax is computed
15shall be reduced by an amount that represents a reasonable
16allowance for depreciation for the period of prior out-of-state
17use.
18(Source: P.A. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16;
19100-22, eff. 7-6-17.)
 
20    Section 10. The Service Use Tax Act is amended by changing
21Section 3-10 as follows:
 
22    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
23    Sec. 3-10. Rate of tax. Unless otherwise provided in this
24Section, the tax imposed by this Act is at the rate of 6.25% of

 

 

HB2526- 7 -LRB101 05235 HLH 50248 b

1the selling price of tangible personal property transferred as
2an incident to the sale of service, but, for the purpose of
3computing this tax, in no event shall the selling price be less
4than the cost price of the property to the serviceman.
5    Beginning on July 1, 2000 and through December 31, 2000,
6with respect to motor fuel, as defined in Section 1.1 of the
7Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
8the Use Tax Act, the tax is imposed at the rate of 1.25%.
9    With respect to gasohol, as defined in the Use Tax Act, the
10tax imposed by this Act applies to (i) 70% of the selling price
11of property transferred as an incident to the sale of service
12on or after January 1, 1990, and before July 1, 2003, (ii) 80%
13of the selling price of property transferred as an incident to
14the sale of service on or after July 1, 2003 and on or before
15July 1, 2017, and (iii) 100% of the selling price thereafter.
16If, at any time, however, the tax under this Act on sales of
17gasohol, as defined in the Use Tax Act, is imposed at the rate
18of 1.25%, then the tax imposed by this Act applies to 100% of
19the proceeds of sales of gasohol made during that time.
20    With respect to majority blended ethanol fuel, as defined
21in the Use Tax Act, the tax imposed by this Act does not apply
22to the selling price of property transferred as an incident to
23the sale of service on or after July 1, 2003 and on or before
24December 31, 2023 but applies to 100% of the selling price
25thereafter.
26    With respect to biodiesel blends, as defined in the Use Tax

 

 

HB2526- 8 -LRB101 05235 HLH 50248 b

1Act, with no less than 1% and no more than 10% biodiesel, the
2tax imposed by this Act applies to (i) 80% of the selling price
3of property transferred as an incident to the sale of service
4on or after July 1, 2003 and on or before December 31, 2018 and
5(ii) 100% of the proceeds of the selling price thereafter. If,
6at any time, however, the tax under this Act on sales of
7biodiesel blends, as defined in the Use Tax Act, with no less
8than 1% and no more than 10% biodiesel is imposed at the rate
9of 1.25%, then the tax imposed by this Act applies to 100% of
10the proceeds of sales of biodiesel blends with no less than 1%
11and no more than 10% biodiesel made during that time.
12    With respect to 100% biodiesel, as defined in the Use Tax
13Act, and biodiesel blends, as defined in the Use Tax Act, with
14more than 10% but no more than 99% biodiesel, the tax imposed
15by this Act does not apply to the proceeds of the selling price
16of property transferred as an incident to the sale of service
17on or after July 1, 2003 and on or before December 31, 2023 but
18applies to 100% of the selling price thereafter.
19    At the election of any registered serviceman made for each
20fiscal year, sales of service in which the aggregate annual
21cost price of tangible personal property transferred as an
22incident to the sales of service is less than 35%, or 75% in
23the case of servicemen transferring prescription drugs or
24servicemen engaged in graphic arts production, of the aggregate
25annual total gross receipts from all sales of service, the tax
26imposed by this Act shall be based on the serviceman's cost

 

 

HB2526- 9 -LRB101 05235 HLH 50248 b

1price of the tangible personal property transferred as an
2incident to the sale of those services.
3    The tax shall be imposed at the rate of 1% on food prepared
4for immediate consumption and transferred incident to a sale of
5service subject to this Act or the Service Occupation Tax Act
6by an entity licensed under the Hospital Licensing Act, the
7Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
8Act, the Specialized Mental Health Rehabilitation Act of 2013,
9or the Child Care Act of 1969. The tax shall also be imposed at
10the rate of 1% on food for human consumption that is to be
11consumed off the premises where it is sold (other than
12alcoholic beverages, soft drinks, and food that has been
13prepared for immediate consumption and is not otherwise
14included in this paragraph) and prescription and
15nonprescription medicines, drugs, medical appliances, adult
16diapers sold as incontinence products, products classified as
17Class III medical devices by the United States Food and Drug
18Administration that are used for cancer treatment pursuant to a
19prescription, as well as any accessories and components related
20to those devices, modifications to a motor vehicle for the
21purpose of rendering it usable by a person with a disability,
22and insulin, urine testing materials, syringes, and needles
23used by diabetics, for human use. For the purposes of this
24Section, until September 1, 2009: the term "soft drinks" means
25any complete, finished, ready-to-use, non-alcoholic drink,
26whether carbonated or not, including but not limited to soda

 

 

HB2526- 10 -LRB101 05235 HLH 50248 b

1water, cola, fruit juice, vegetable juice, carbonated water,
2and all other preparations commonly known as soft drinks of
3whatever kind or description that are contained in any closed
4or sealed bottle, can, carton, or container, regardless of
5size; but "soft drinks" does not include coffee, tea,
6non-carbonated water, infant formula, milk or milk products as
7defined in the Grade A Pasteurized Milk and Milk Products Act,
8or drinks containing 50% or more natural fruit or vegetable
9juice.
10    Notwithstanding any other provisions of this Act,
11beginning September 1, 2009, "soft drinks" means non-alcoholic
12beverages that contain natural or artificial sweeteners. "Soft
13drinks" do not include beverages that contain milk or milk
14products, soy, rice or similar milk substitutes, or greater
15than 50% of vegetable or fruit juice by volume.
16    Until August 1, 2009, and notwithstanding any other
17provisions of this Act, "food for human consumption that is to
18be consumed off the premises where it is sold" includes all
19food sold through a vending machine, except soft drinks and
20food products that are dispensed hot from a vending machine,
21regardless of the location of the vending machine. Beginning
22August 1, 2009, and notwithstanding any other provisions of
23this Act, "food for human consumption that is to be consumed
24off the premises where it is sold" includes all food sold
25through a vending machine, except soft drinks, candy, and food
26products that are dispensed hot from a vending machine,

 

 

HB2526- 11 -LRB101 05235 HLH 50248 b

1regardless of the location of the vending machine.
2    Notwithstanding any other provisions of this Act,
3beginning September 1, 2009, "food for human consumption that
4is to be consumed off the premises where it is sold" does not
5include candy. For purposes of this Section, "candy" means a
6preparation of sugar, honey, or other natural or artificial
7sweeteners in combination with chocolate, fruits, nuts or other
8ingredients or flavorings in the form of bars, drops, or
9pieces. "Candy" does not include any preparation that contains
10flour or requires refrigeration.
11    Notwithstanding any other provisions of this Act,
12beginning September 1, 2009, "nonprescription medicines and
13drugs" does not include grooming and hygiene products. For
14purposes of this Section, "grooming and hygiene products"
15includes, but is not limited to, soaps and cleaning solutions,
16shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
17lotions and screens, unless those products are available by
18prescription only, regardless of whether the products meet the
19definition of "over-the-counter-drugs". For the purposes of
20this paragraph, "over-the-counter-drug" means a drug for human
21use that contains a label that identifies the product as a drug
22as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
23label includes:
24        (A) A "Drug Facts" panel; or
25        (B) A statement of the "active ingredient(s)" with a
26    list of those ingredients contained in the compound,

 

 

HB2526- 12 -LRB101 05235 HLH 50248 b

1    substance or preparation.
2    Beginning on January 1, 2014 (the effective date of Public
3Act 98-122), "prescription and nonprescription medicines and
4drugs" includes medical cannabis purchased from a registered
5dispensing organization under the Compassionate Use of Medical
6Cannabis Pilot Program Act.
7    If the property that is acquired from a serviceman is
8acquired outside Illinois and used outside Illinois before
9being brought to Illinois for use here and is taxable under
10this Act, the "selling price" on which the tax is computed
11shall be reduced by an amount that represents a reasonable
12allowance for depreciation for the period of prior out-of-state
13use.
14(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
1599-642, eff. 7-28-16; 99-858, eff. 8-19-16; 100-22, eff.
167-6-17.)
 
17    Section 15. The Service Occupation Tax Act is amended by
18changing Section 3-10 as follows:
 
19    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
20    Sec. 3-10. Rate of tax. Unless otherwise provided in this
21Section, the tax imposed by this Act is at the rate of 6.25% of
22the "selling price", as defined in Section 2 of the Service Use
23Tax Act, of the tangible personal property. For the purpose of
24computing this tax, in no event shall the "selling price" be

 

 

HB2526- 13 -LRB101 05235 HLH 50248 b

1less than the cost price to the serviceman of the tangible
2personal property transferred. The selling price of each item
3of tangible personal property transferred as an incident of a
4sale of service may be shown as a distinct and separate item on
5the serviceman's billing to the service customer. If the
6selling price is not so shown, the selling price of the
7tangible personal property is deemed to be 50% of the
8serviceman's entire billing to the service customer. When,
9however, a serviceman contracts to design, develop, and produce
10special order machinery or equipment, the tax imposed by this
11Act shall be based on the serviceman's cost price of the
12tangible personal property transferred incident to the
13completion of the contract.
14    Beginning on July 1, 2000 and through December 31, 2000,
15with respect to motor fuel, as defined in Section 1.1 of the
16Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
17the Use Tax Act, the tax is imposed at the rate of 1.25%.
18    With respect to gasohol, as defined in the Use Tax Act, the
19tax imposed by this Act shall apply to (i) 70% of the cost
20price of property transferred as an incident to the sale of
21service on or after January 1, 1990, and before July 1, 2003,
22(ii) 80% of the selling price of property transferred as an
23incident to the sale of service on or after July 1, 2003 and on
24or before July 1, 2017, and (iii) 100% of the cost price
25thereafter. If, at any time, however, the tax under this Act on
26sales of gasohol, as defined in the Use Tax Act, is imposed at

 

 

HB2526- 14 -LRB101 05235 HLH 50248 b

1the rate of 1.25%, then the tax imposed by this Act applies to
2100% of the proceeds of sales of gasohol made during that time.
3    With respect to majority blended ethanol fuel, as defined
4in the Use Tax Act, the tax imposed by this Act does not apply
5to the selling price of property transferred as an incident to
6the sale of service on or after July 1, 2003 and on or before
7December 31, 2023 but applies to 100% of the selling price
8thereafter.
9    With respect to biodiesel blends, as defined in the Use Tax
10Act, with no less than 1% and no more than 10% biodiesel, the
11tax imposed by this Act applies to (i) 80% of the selling price
12of property transferred as an incident to the sale of service
13on or after July 1, 2003 and on or before December 31, 2018 and
14(ii) 100% of the proceeds of the selling price thereafter. If,
15at any time, however, the tax under this Act on sales of
16biodiesel blends, as defined in the Use Tax Act, with no less
17than 1% and no more than 10% biodiesel is imposed at the rate
18of 1.25%, then the tax imposed by this Act applies to 100% of
19the proceeds of sales of biodiesel blends with no less than 1%
20and no more than 10% biodiesel made during that time.
21    With respect to 100% biodiesel, as defined in the Use Tax
22Act, and biodiesel blends, as defined in the Use Tax Act, with
23more than 10% but no more than 99% biodiesel material, the tax
24imposed by this Act does not apply to the proceeds of the
25selling price of property transferred as an incident to the
26sale of service on or after July 1, 2003 and on or before

 

 

HB2526- 15 -LRB101 05235 HLH 50248 b

1December 31, 2023 but applies to 100% of the selling price
2thereafter.
3    At the election of any registered serviceman made for each
4fiscal year, sales of service in which the aggregate annual
5cost price of tangible personal property transferred as an
6incident to the sales of service is less than 35%, or 75% in
7the case of servicemen transferring prescription drugs or
8servicemen engaged in graphic arts production, of the aggregate
9annual total gross receipts from all sales of service, the tax
10imposed by this Act shall be based on the serviceman's cost
11price of the tangible personal property transferred incident to
12the sale of those services.
13    The tax shall be imposed at the rate of 1% on food prepared
14for immediate consumption and transferred incident to a sale of
15service subject to this Act or the Service Occupation Tax Act
16by an entity licensed under the Hospital Licensing Act, the
17Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
18Act, the Specialized Mental Health Rehabilitation Act of 2013,
19or the Child Care Act of 1969. The tax shall also be imposed at
20the rate of 1% on food for human consumption that is to be
21consumed off the premises where it is sold (other than
22alcoholic beverages, soft drinks, and food that has been
23prepared for immediate consumption and is not otherwise
24included in this paragraph) and prescription and
25nonprescription medicines, drugs, medical appliances, adult
26diapers sold as incontinence products, products classified as

 

 

HB2526- 16 -LRB101 05235 HLH 50248 b

1Class III medical devices by the United States Food and Drug
2Administration that are used for cancer treatment pursuant to a
3prescription, as well as any accessories and components related
4to those devices, modifications to a motor vehicle for the
5purpose of rendering it usable by a person with a disability,
6and insulin, urine testing materials, syringes, and needles
7used by diabetics, for human use. For the purposes of this
8Section, until September 1, 2009: the term "soft drinks" means
9any complete, finished, ready-to-use, non-alcoholic drink,
10whether carbonated or not, including but not limited to soda
11water, cola, fruit juice, vegetable juice, carbonated water,
12and all other preparations commonly known as soft drinks of
13whatever kind or description that are contained in any closed
14or sealed can, carton, or container, regardless of size; but
15"soft drinks" does not include coffee, tea, non-carbonated
16water, infant formula, milk or milk products as defined in the
17Grade A Pasteurized Milk and Milk Products Act, or drinks
18containing 50% or more natural fruit or vegetable juice.
19    Notwithstanding any other provisions of this Act,
20beginning September 1, 2009, "soft drinks" means non-alcoholic
21beverages that contain natural or artificial sweeteners. "Soft
22drinks" do not include beverages that contain milk or milk
23products, soy, rice or similar milk substitutes, or greater
24than 50% of vegetable or fruit juice by volume.
25    Until August 1, 2009, and notwithstanding any other
26provisions of this Act, "food for human consumption that is to

 

 

HB2526- 17 -LRB101 05235 HLH 50248 b

1be consumed off the premises where it is sold" includes all
2food sold through a vending machine, except soft drinks and
3food products that are dispensed hot from a vending machine,
4regardless of the location of the vending machine. Beginning
5August 1, 2009, and notwithstanding any other provisions of
6this Act, "food for human consumption that is to be consumed
7off the premises where it is sold" includes all food sold
8through a vending machine, except soft drinks, candy, and food
9products that are dispensed hot from a vending machine,
10regardless of the location of the vending machine.
11    Notwithstanding any other provisions of this Act,
12beginning September 1, 2009, "food for human consumption that
13is to be consumed off the premises where it is sold" does not
14include candy. For purposes of this Section, "candy" means a
15preparation of sugar, honey, or other natural or artificial
16sweeteners in combination with chocolate, fruits, nuts or other
17ingredients or flavorings in the form of bars, drops, or
18pieces. "Candy" does not include any preparation that contains
19flour or requires refrigeration.
20    Notwithstanding any other provisions of this Act,
21beginning September 1, 2009, "nonprescription medicines and
22drugs" does not include grooming and hygiene products. For
23purposes of this Section, "grooming and hygiene products"
24includes, but is not limited to, soaps and cleaning solutions,
25shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
26lotions and screens, unless those products are available by

 

 

HB2526- 18 -LRB101 05235 HLH 50248 b

1prescription only, regardless of whether the products meet the
2definition of "over-the-counter-drugs". For the purposes of
3this paragraph, "over-the-counter-drug" means a drug for human
4use that contains a label that identifies the product as a drug
5as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
6label 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
12Act 98-122), "prescription and nonprescription medicines and
13drugs" includes medical cannabis purchased from a registered
14dispensing organization under the Compassionate Use of Medical
15Cannabis Pilot Program Act.
16(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
1799-642, eff. 7-28-16; 99-858, eff. 8-19-16; 100-22, eff.
187-6-17.)
 
19    Section 20. The Retailers' Occupation Tax Act is amended by
20changing Section 2-10 as follows:
 
21    (35 ILCS 120/2-10)
22    Sec. 2-10. Rate of tax. Unless otherwise provided in this
23Section, the tax imposed by this Act is at the rate of 6.25% of
24gross receipts from sales of tangible personal property made in

 

 

HB2526- 19 -LRB101 05235 HLH 50248 b

1the course of business.
2    Beginning on July 1, 2000 and through December 31, 2000,
3with respect to motor fuel, as defined in Section 1.1 of the
4Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
5the Use Tax Act, the tax is imposed at the rate of 1.25%.
6    Beginning on August 6, 2010 through August 15, 2010, with
7respect to sales tax holiday items as defined in Section 2-8 of
8this Act, the tax is imposed at the rate of 1.25%.
9    Within 14 days after the effective date of this amendatory
10Act of the 91st General Assembly, each retailer of motor fuel
11and gasohol shall cause the following notice to be posted in a
12prominently visible place on each retail dispensing device that
13is used to dispense motor fuel or gasohol in the State of
14Illinois: "As of July 1, 2000, the State of Illinois has
15eliminated the State's share of sales tax on motor fuel and
16gasohol through December 31, 2000. The price on this pump
17should reflect the elimination of the tax." The notice shall be
18printed in bold print on a sign that is no smaller than 4
19inches by 8 inches. The sign shall be clearly visible to
20customers. Any retailer who fails to post or maintain a
21required sign through December 31, 2000 is guilty of a petty
22offense for which the fine shall be $500 per day per each
23retail premises where a violation occurs.
24    With respect to gasohol, as defined in the Use Tax Act, the
25tax imposed by this Act applies to (i) 70% of the proceeds of
26sales made on or after January 1, 1990, and before July 1,

 

 

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12003, (ii) 80% of the proceeds of sales made on or after July
21, 2003 and on or before July 1, 2017, and (iii) 100% of the
3proceeds of sales made thereafter. If, at any time, however,
4the tax under this Act on sales of gasohol, as defined in the
5Use Tax Act, is imposed at the rate of 1.25%, then the tax
6imposed by this Act applies to 100% of the proceeds of sales of
7gasohol made during that time.
8    With respect to majority blended ethanol fuel, as defined
9in the Use Tax Act, the tax imposed by this Act does not apply
10to the proceeds of sales made on or after July 1, 2003 and on or
11before December 31, 2023 but applies to 100% of the proceeds of
12sales made thereafter.
13    With respect to biodiesel blends, as defined in the Use Tax
14Act, with no less than 1% and no more than 10% biodiesel, the
15tax imposed by this Act applies to (i) 80% of the proceeds of
16sales made on or after July 1, 2003 and on or before December
1731, 2018 and (ii) 100% of the proceeds of sales made
18thereafter. If, at any time, however, the tax under this Act on
19sales of biodiesel blends, as defined in the Use Tax Act, with
20no less than 1% and no more than 10% biodiesel is imposed at
21the rate of 1.25%, then the tax imposed by this Act applies to
22100% of the proceeds of sales of biodiesel blends with no less
23than 1% and no more than 10% biodiesel made during that time.
24    With respect to 100% biodiesel, as defined in the Use Tax
25Act, and biodiesel blends, as defined in the Use Tax Act, with
26more than 10% but no more than 99% biodiesel, the tax imposed

 

 

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1by this Act does not apply to the proceeds of sales made on or
2after July 1, 2003 and on or before December 31, 2023 but
3applies to 100% of the proceeds of sales made thereafter.
4    With respect to food for human consumption that is to be
5consumed off the premises where it is sold (other than
6alcoholic beverages, soft drinks, and food that has been
7prepared for immediate consumption) and prescription and
8nonprescription medicines, drugs, medical appliances, adult
9diapers sold as incontinence products, products classified as
10Class III medical devices by the United States Food and Drug
11Administration that are used for cancer treatment pursuant to a
12prescription, as well as any accessories and components related
13to those devices, modifications to a motor vehicle for the
14purpose of rendering it usable by a person with a disability,
15and insulin, urine testing materials, syringes, and needles
16used by diabetics, for human use, the tax is imposed at the
17rate of 1%. For the purposes of this Section, until September
181, 2009: the term "soft drinks" means any complete, finished,
19ready-to-use, non-alcoholic drink, whether carbonated or not,
20including but not limited to soda water, cola, fruit juice,
21vegetable juice, carbonated water, and all other preparations
22commonly known as soft drinks of whatever kind or description
23that are contained in any closed or sealed bottle, can, carton,
24or container, regardless of size; but "soft drinks" does not
25include coffee, tea, non-carbonated water, infant formula,
26milk or milk products as defined in the Grade A Pasteurized

 

 

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1Milk and Milk Products Act, or drinks containing 50% or more
2natural fruit or vegetable juice.
3    Notwithstanding any other provisions of this Act,
4beginning September 1, 2009, "soft drinks" means non-alcoholic
5beverages that contain natural or artificial sweeteners. "Soft
6drinks" do not include beverages that contain milk or milk
7products, soy, rice or similar milk substitutes, or greater
8than 50% of vegetable or fruit juice by volume.
9    Until August 1, 2009, and notwithstanding any other
10provisions of this Act, "food for human consumption that is to
11be consumed off the premises where it is sold" includes all
12food sold through a vending machine, except soft drinks and
13food products that are dispensed hot from a vending machine,
14regardless of the location of the vending machine. Beginning
15August 1, 2009, and notwithstanding any other provisions of
16this Act, "food for human consumption that is to be consumed
17off the premises where it is sold" includes all food sold
18through a vending machine, except soft drinks, candy, and food
19products that are dispensed hot from a vending machine,
20regardless of the location of the vending machine.
21    Notwithstanding any other provisions of this Act,
22beginning September 1, 2009, "food for human consumption that
23is to be consumed off the premises where it is sold" does not
24include candy. For purposes of this Section, "candy" means a
25preparation of sugar, honey, or other natural or artificial
26sweeteners in combination with chocolate, fruits, nuts or other

 

 

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1ingredients or flavorings in the form of bars, drops, or
2pieces. "Candy" does not include any preparation that contains
3flour or requires refrigeration.
4    Notwithstanding any other provisions of this Act,
5beginning September 1, 2009, "nonprescription medicines and
6drugs" does not include grooming and hygiene products. For
7purposes of this Section, "grooming and hygiene products"
8includes, but is not limited to, soaps and cleaning solutions,
9shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
10lotions and screens, unless those products are available by
11prescription only, regardless of whether the products meet the
12definition of "over-the-counter-drugs". For the purposes of
13this paragraph, "over-the-counter-drug" means a drug for human
14use that contains a label that identifies the product as a drug
15as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
16label 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
22the 98th General Assembly, "prescription and nonprescription
23medicines and drugs" includes medical cannabis purchased from a
24registered dispensing organization under the Compassionate Use
25of Medical Cannabis Pilot Program Act.
26(Source: P.A. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16;

 

 

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1100-22, eff. 7-6-17.)