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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,
| ||||||||||||||||||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The State Finance Act is amended by changing | ||||||||||||||||||||||||||||||||||
5 | Sections 6z-18 and 6z-20 as follows:
| ||||||||||||||||||||||||||||||||||
6 | (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
| ||||||||||||||||||||||||||||||||||
7 | Sec. 6z-18. A portion of the money paid into the Local | ||||||||||||||||||||||||||||||||||
8 | Government Tax
Fund from sales of food for human consumption | ||||||||||||||||||||||||||||||||||
9 | which is to be consumed off
the premises where it is sold | ||||||||||||||||||||||||||||||||||
10 | (other than alcoholic beverages, soft drinks
and food which has | ||||||||||||||||||||||||||||||||||
11 | been prepared for immediate consumption) and
prescription and | ||||||||||||||||||||||||||||||||||
12 | nonprescription medicines, drugs, medical appliances and
| ||||||||||||||||||||||||||||||||||
13 | insulin, urine testing materials, syringes and needles used by | ||||||||||||||||||||||||||||||||||
14 | diabetics,
which occurred in municipalities, shall be | ||||||||||||||||||||||||||||||||||
15 | distributed to each municipality
based upon the sales which | ||||||||||||||||||||||||||||||||||
16 | occurred in that municipality. The remainder
shall be | ||||||||||||||||||||||||||||||||||
17 | distributed to each county based upon the sales which occurred | ||||||||||||||||||||||||||||||||||
18 | in
the unincorporated area of that county.
| ||||||||||||||||||||||||||||||||||
19 | A portion of the money paid into the Local Government Tax | ||||||||||||||||||||||||||||||||||
20 | Fund from the
6.25% general use tax rate on the selling price | ||||||||||||||||||||||||||||||||||
21 | of tangible personal
property which is purchased outside | ||||||||||||||||||||||||||||||||||
22 | Illinois at retail from a retailer and
which is titled or | ||||||||||||||||||||||||||||||||||
23 | registered by any agency of this State's government
shall be |
| |||||||
| |||||||
1 | distributed to municipalities as provided in this paragraph. | ||||||
2 | Each
municipality shall receive the amount attributable to | ||||||
3 | sales for which
Illinois addresses for titling or registration | ||||||
4 | purposes are given as being
in such municipality. The remainder | ||||||
5 | of the money paid into the Local
Government Tax Fund from such | ||||||
6 | sales shall be distributed to counties. Each
county shall | ||||||
7 | receive the amount attributable to sales for which Illinois
| ||||||
8 | addresses for titling or registration purposes are given as | ||||||
9 | being located
in the unincorporated area of such county.
| ||||||
10 | A portion of the money paid into the Local Government Tax | ||||||
11 | Fund from the
6.25% general rate (and, beginning July 1, 2000 | ||||||
12 | and through December 31,
2000 and beginning again on July 1, | ||||||
13 | 2007 , the 1.25% rate on motor fuel and gasohol) on sales
| ||||||
14 | subject to taxation under the Retailers'
Occupation Tax Act and | ||||||
15 | the Service Occupation Tax Act, which occurred in
| ||||||
16 | municipalities, shall be distributed to each municipality, | ||||||
17 | based upon the
sales which occurred in that municipality. The | ||||||
18 | remainder shall be
distributed to each county, based upon the | ||||||
19 | sales which occurred in the
unincorporated area of such county.
| ||||||
20 | For the purpose of determining allocation to the local | ||||||
21 | government unit, a
retail sale by a producer of coal or other | ||||||
22 | mineral mined in Illinois is a sale
at retail at the place | ||||||
23 | where the coal or other mineral mined in Illinois is
extracted | ||||||
24 | from the earth. This paragraph does not apply to coal or other
| ||||||
25 | mineral when it is delivered or shipped by the seller to the | ||||||
26 | purchaser at a
point outside Illinois so that the sale is |
| |||||||
| |||||||
1 | exempt under the United States
Constitution as a sale in | ||||||
2 | interstate or foreign commerce.
| ||||||
3 | Whenever the Department determines that a refund of money | ||||||
4 | paid into
the Local Government Tax Fund should be made to a | ||||||
5 | claimant instead of
issuing a credit memorandum, the Department | ||||||
6 | shall notify the State
Comptroller, who shall cause the order | ||||||
7 | to be drawn for the amount
specified, and to the person named, | ||||||
8 | in such notification from the
Department. Such refund shall be | ||||||
9 | paid by the State Treasurer out of the
Local Government Tax | ||||||
10 | Fund.
| ||||||
11 | On or before the 25th day of each calendar month, the | ||||||
12 | Department shall
prepare and certify to the Comptroller the | ||||||
13 | disbursement of stated sums of
money to named municipalities | ||||||
14 | and counties, the municipalities and counties
to be those | ||||||
15 | entitled to distribution of taxes or penalties paid to the
| ||||||
16 | Department during the second preceding calendar month. The | ||||||
17 | amount to be
paid to each municipality or county shall be the | ||||||
18 | amount (not including
credit memoranda) collected during the | ||||||
19 | second preceding calendar month by
the Department and paid into | ||||||
20 | the Local Government Tax Fund, plus an amount
the Department | ||||||
21 | determines is necessary to offset any amounts which were
| ||||||
22 | erroneously paid to a different taxing body, and not including | ||||||
23 | an amount
equal to the amount of refunds made during the second | ||||||
24 | preceding calendar
month by the Department, and not including | ||||||
25 | any amount which the Department
determines is necessary to | ||||||
26 | offset any amounts which are payable to a
different taxing body |
| |||||||
| |||||||
1 | but were erroneously paid to the municipality or
county. Within | ||||||
2 | 10 days after receipt, by the Comptroller, of the
disbursement | ||||||
3 | certification to the municipalities and counties, provided for
| ||||||
4 | in this Section to be given to the Comptroller by the | ||||||
5 | Department, the
Comptroller shall cause the orders to be drawn | ||||||
6 | for the respective amounts
in accordance with the directions | ||||||
7 | contained in such certification.
| ||||||
8 | When certifying the amount of monthly disbursement to a | ||||||
9 | municipality or
county under this Section, the Department shall | ||||||
10 | increase or decrease that
amount by an amount necessary to | ||||||
11 | offset any misallocation of previous
disbursements. The offset | ||||||
12 | amount shall be the amount erroneously disbursed
within the 6 | ||||||
13 | months preceding the time a misallocation is discovered.
| ||||||
14 | The provisions directing the distributions from the | ||||||
15 | special fund in
the State Treasury provided for in this Section | ||||||
16 | shall constitute an
irrevocable and continuing appropriation | ||||||
17 | of all amounts as provided herein.
The State Treasurer and | ||||||
18 | State Comptroller are hereby authorized to make
distributions | ||||||
19 | as provided in this Section.
| ||||||
20 | In construing any development, redevelopment, annexation, | ||||||
21 | preannexation
or other lawful agreement in effect prior to | ||||||
22 | September 1, 1990, which
describes or refers to receipts from a | ||||||
23 | county or municipal retailers'
occupation tax, use tax or | ||||||
24 | service occupation tax which now cannot be
imposed, such | ||||||
25 | description or reference shall be deemed to include the
| ||||||
26 | replacement revenue for such abolished taxes, distributed from |
| |||||||
| |||||||
1 | the Local
Government Tax Fund.
| ||||||
2 | (Source: P.A. 90-491, eff. 1-1-98; 91-51, eff. 6-30-99; 91-872, | ||||||
3 | eff. 7-1-00.)
| ||||||
4 | (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
| ||||||
5 | Sec. 6z-20. Of the money received from the 6.25% general | ||||||
6 | rate (and,
beginning July 1, 2000 and through December 31, 2000 | ||||||
7 | and beginning again on July 1, 2007 , the
1.25% rate on motor | ||||||
8 | fuel and gasohol) on sales
subject to taxation under the | ||||||
9 | Retailers' Occupation Tax Act and Service
Occupation Tax Act | ||||||
10 | and paid into the County and Mass Transit District Fund,
| ||||||
11 | distribution to the Regional Transportation Authority tax | ||||||
12 | fund, created
pursuant to Section 4.03 of the Regional | ||||||
13 | Transportation Authority Act, for
deposit therein shall be made | ||||||
14 | based upon the retail sales occurring in a
county having more | ||||||
15 | than 3,000,000 inhabitants. The remainder shall be
distributed | ||||||
16 | to each county having 3,000,000 or fewer inhabitants based upon
| ||||||
17 | the retail sales occurring in each such county.
| ||||||
18 | For the purpose of determining allocation to the local | ||||||
19 | government unit, a
retail sale by a producer of coal or other | ||||||
20 | mineral mined in Illinois is a sale
at retail at the place | ||||||
21 | where the coal or other mineral mined in Illinois is
extracted | ||||||
22 | from the earth. This paragraph does not apply to coal or other
| ||||||
23 | mineral when it is delivered or shipped by the seller to the | ||||||
24 | purchaser at a
point outside Illinois so that the sale is | ||||||
25 | exempt under the United States
Constitution as a sale in |
| |||||||
| |||||||
1 | interstate or foreign commerce.
| ||||||
2 | Of the money received from the 6.25% general use tax rate | ||||||
3 | on tangible
personal property which is purchased outside | ||||||
4 | Illinois at retail from a
retailer and which is titled or | ||||||
5 | registered by any agency of this State's
government and paid | ||||||
6 | into the County and Mass Transit District Fund, the
amount for | ||||||
7 | which Illinois addresses for titling or registration purposes
| ||||||
8 | are given as being in each county having more than 3,000,000 | ||||||
9 | inhabitants
shall be distributed into the Regional | ||||||
10 | Transportation Authority tax fund,
created pursuant to Section | ||||||
11 | 4.03 of the Regional Transportation Authority
Act. The | ||||||
12 | remainder of the money paid from such sales shall be | ||||||
13 | distributed
to each county based on sales for which Illinois | ||||||
14 | addresses for titling or
registration purposes are given as | ||||||
15 | being located in the county. Any money
paid into the Regional | ||||||
16 | Transportation Authority Occupation and Use Tax
Replacement | ||||||
17 | Fund from the County and Mass Transit District Fund prior to
| ||||||
18 | January 14, 1991, which has not been paid to the Authority | ||||||
19 | prior to that
date, shall be transferred to the Regional | ||||||
20 | Transportation Authority tax fund.
| ||||||
21 | Whenever the Department determines that a refund of money | ||||||
22 | paid into
the County and Mass Transit District Fund should be | ||||||
23 | made to a claimant
instead of issuing a credit memorandum, the | ||||||
24 | Department shall notify the
State Comptroller, who shall cause | ||||||
25 | the order to be drawn for the amount
specified, and to the | ||||||
26 | person named, in such notification from the
Department. Such |
| |||||||
| |||||||
1 | refund shall be paid by the State Treasurer out of the
County | ||||||
2 | and Mass Transit District Fund.
| ||||||
3 | On or before the 25th day of each calendar month, the | ||||||
4 | Department shall
prepare and certify to the Comptroller the | ||||||
5 | disbursement of stated sums of
money to the Regional | ||||||
6 | Transportation Authority and to named counties, the
counties to | ||||||
7 | be those entitled to distribution, as hereinabove provided, of
| ||||||
8 | taxes or penalties paid to the Department during the second | ||||||
9 | preceding
calendar month. The amount to be paid to the Regional | ||||||
10 | Transportation
Authority and each county having 3,000,000 or | ||||||
11 | fewer inhabitants shall be
the amount (not including credit | ||||||
12 | memoranda) collected during the second
preceding calendar | ||||||
13 | month by the Department and paid into the County and
Mass | ||||||
14 | Transit District Fund, plus an amount the Department determines | ||||||
15 | is
necessary to offset any amounts which were erroneously paid | ||||||
16 | to a different
taxing body, and not including an amount equal | ||||||
17 | to the amount of refunds
made during the second preceding | ||||||
18 | calendar month by the Department, and not
including any amount | ||||||
19 | which the Department determines is necessary to offset
any | ||||||
20 | amounts which were payable to a different taxing body but were
| ||||||
21 | erroneously paid to the Regional Transportation Authority or | ||||||
22 | county.
Within 10 days after receipt, by the Comptroller, of | ||||||
23 | the disbursement
certification to the Regional Transportation | ||||||
24 | Authority and counties,
provided for in this Section to be | ||||||
25 | given to the Comptroller by the
Department, the Comptroller | ||||||
26 | shall cause the orders to be drawn for the
respective amounts |
| |||||||
| |||||||
1 | in accordance with the directions contained in such
| ||||||
2 | certification.
| ||||||
3 | When certifying the amount of a monthly disbursement to the | ||||||
4 | Regional
Transportation Authority or to a county under this | ||||||
5 | Section, the Department
shall increase or decrease that amount | ||||||
6 | by an amount necessary to offset any
misallocation of previous | ||||||
7 | disbursements. The offset amount shall be the
amount | ||||||
8 | erroneously disbursed within the 6 months preceding the time a
| ||||||
9 | misallocation is discovered.
| ||||||
10 | The provisions directing the distributions from the | ||||||
11 | special fund in
the State Treasury provided for in this Section | ||||||
12 | and from the Regional
Transportation Authority tax fund created | ||||||
13 | by Section 4.03 of the Regional
Transportation Authority Act | ||||||
14 | shall constitute an irrevocable and continuing
appropriation | ||||||
15 | of all amounts as provided herein. The State Treasurer and
| ||||||
16 | State Comptroller are hereby authorized to make distributions | ||||||
17 | as provided
in this Section.
| ||||||
18 | In construing any development, redevelopment, annexation, | ||||||
19 | preannexation
or other lawful agreement in effect prior to | ||||||
20 | September 1, 1990, which
describes or refers to receipts from a | ||||||
21 | county or municipal retailers'
occupation tax, use tax or | ||||||
22 | service occupation tax which now cannot be
imposed, such | ||||||
23 | description or reference shall be deemed to include the
| ||||||
24 | replacement revenue for such abolished taxes, distributed from | ||||||
25 | the County
and Mass Transit District Fund or Local Government | ||||||
26 | Distributive Fund, as
the case may be.
|
| |||||||
| |||||||
1 | (Source: P.A. 90-491, eff. 1-1-98; 91-872, eff. 7-1-00.)
| ||||||
2 | Section 10. The Use Tax Act is amended by changing Sections | ||||||
3 | 3-10 and 9 as follows:
| ||||||
4 | (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
| ||||||
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 | either the selling price or the
fair market value, if any, of | ||||||
8 | the tangible personal property. In all cases
where property | ||||||
9 | functionally used or consumed is the same as the property that
| ||||||
10 | was purchased at retail, then the tax is imposed on the selling | ||||||
11 | price of the
property. In all cases where property functionally | ||||||
12 | used or consumed is a
by-product or waste product that has been | ||||||
13 | refined, manufactured, or produced
from property purchased at | ||||||
14 | retail, then the tax is imposed on the lower of the
fair market | ||||||
15 | value, if any, of the specific property so used in this State | ||||||
16 | or on
the selling price of the property purchased at retail. | ||||||
17 | For purposes of this
Section "fair market value" means the | ||||||
18 | price at which property would change
hands between a willing | ||||||
19 | buyer and a willing seller, neither being under any
compulsion | ||||||
20 | to buy or sell and both having reasonable knowledge of the
| ||||||
21 | relevant facts. The fair market value shall be established by | ||||||
22 | Illinois sales by
the taxpayer of the same property as that | ||||||
23 | functionally used or consumed, or if
there are no such sales by | ||||||
24 | the taxpayer, then comparable sales or purchases of
property of |
| |||||||
| |||||||
1 | like kind and character in Illinois.
| ||||||
2 | Beginning on July 1, 2000 and through December 31, 2000 and | ||||||
3 | beginning again July 1, 2007 , with respect to
motor fuel, as | ||||||
4 | defined in Section 1.1 of the Motor Fuel Tax
Law, and gasohol, | ||||||
5 | as defined in Section 3-40 of the Use Tax Act, the tax is
| ||||||
6 | imposed at the rate of 1.25%.
| ||||||
7 | With respect to gasohol, the tax imposed by this Act | ||||||
8 | applies to (i) 70%
of the proceeds of sales made on or after | ||||||
9 | January 1, 1990, and before
July 1, 2003, (ii) 80% of the | ||||||
10 | proceeds of sales made
on or after July 1, 2003 and on or | ||||||
11 | before December 31, 2013, and (iii) 100% of the proceeds of | ||||||
12 | sales made
thereafter.
If, at any time, however, the tax under | ||||||
13 | this Act on sales of gasohol is
imposed at the
rate of 1.25%, | ||||||
14 | then the tax imposed by this Act applies to 100% of the | ||||||
15 | proceeds
of sales of gasohol made during that time.
| ||||||
16 | With respect to majority blended ethanol fuel, the tax | ||||||
17 | imposed by this Act
does
not apply
to the proceeds of sales | ||||||
18 | made on or after July 1, 2003 and on or before
December
31, | ||||||
19 | 2013 but applies to 100% of the proceeds of sales made | ||||||
20 | thereafter.
| ||||||
21 | With respect to biodiesel blends with no less than 1% and | ||||||
22 | no more than 10%
biodiesel, the tax imposed by this Act applies | ||||||
23 | to (i) 80% of the
proceeds of sales made on or after July 1, | ||||||
24 | 2003 and on or before December 31,
2013 and (ii) 100% of the | ||||||
25 | proceeds of sales made
thereafter.
If, at any time, however, | ||||||
26 | the tax under this Act on sales of biodiesel blends
with no |
| |||||||
| |||||||
1 | less than 1% and no more than 10% biodiesel
is imposed at the | ||||||
2 | rate of
1.25%, then the
tax imposed by this Act applies to 100% | ||||||
3 | of the proceeds of sales of biodiesel
blends with no less than | ||||||
4 | 1% and no more than 10% biodiesel
made
during that time.
| ||||||
5 | With respect to 100% biodiesel and biodiesel blends with | ||||||
6 | more than 10%
but no more than 99% biodiesel, the tax imposed | ||||||
7 | by this Act does not apply to
the
proceeds of sales made on or | ||||||
8 | after July 1, 2003 and on or before
December 31, 2013 but | ||||||
9 | applies to 100% of the proceeds of sales made
thereafter.
| ||||||
10 | With respect to food for human consumption that is to be | ||||||
11 | consumed off the
premises where it is sold (other than | ||||||
12 | alcoholic beverages, soft drinks, and
food that has been | ||||||
13 | prepared for immediate consumption) and prescription and
| ||||||
14 | nonprescription medicines, drugs, medical appliances, | ||||||
15 | modifications to a motor
vehicle for the purpose of rendering | ||||||
16 | it usable by a disabled person, and
insulin, urine testing | ||||||
17 | materials, syringes, and needles used by diabetics, for
human | ||||||
18 | use, the tax is imposed at the rate of 1%. For the purposes of | ||||||
19 | this
Section, the term "soft drinks" means any complete, | ||||||
20 | finished, ready-to-use,
non-alcoholic drink, whether | ||||||
21 | carbonated or not, including but not limited to
soda water, | ||||||
22 | cola, fruit juice, vegetable juice, carbonated water, and all | ||||||
23 | other
preparations commonly known as soft drinks of whatever | ||||||
24 | kind or description that
are contained in any closed or sealed | ||||||
25 | bottle, can, carton, or container,
regardless of size. "Soft | ||||||
26 | drinks" does not include coffee, tea, non-carbonated
water, |
| |||||||
| |||||||
1 | infant formula, milk or milk products as defined in the Grade A
| ||||||
2 | Pasteurized Milk and Milk Products Act, or drinks containing | ||||||
3 | 50% or more
natural fruit or vegetable juice.
| ||||||
4 | Notwithstanding any other provisions of this
Act, "food for | ||||||
5 | human consumption that is to be consumed off the premises where
| ||||||
6 | it is sold" includes all food sold through a vending machine, | ||||||
7 | except soft
drinks and food products that are dispensed hot | ||||||
8 | from a vending machine,
regardless of the location of the | ||||||
9 | vending machine.
| ||||||
10 | If the property that is purchased at retail from a retailer | ||||||
11 | is acquired
outside Illinois and used outside Illinois before | ||||||
12 | being brought to Illinois
for use here and is taxable under | ||||||
13 | this Act, the "selling price" on which
the tax is computed | ||||||
14 | shall be reduced by an amount that represents a
reasonable | ||||||
15 | allowance for depreciation for the period of prior out-of-state | ||||||
16 | use.
| ||||||
17 | (Source: P.A. 93-17, eff. 6-11-03.)
| ||||||
18 | Section 15. The Service Use Tax Act is amended by changing | ||||||
19 | Sections 3-10 and 9 as follows:
| ||||||
20 | (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
| ||||||
21 | Sec. 3-10. Rate of tax. Unless otherwise provided in this | ||||||
22 | Section,
the tax imposed by this Act is at the rate of 6.25% of | ||||||
23 | the selling
price of tangible personal property transferred as | ||||||
24 | an incident to the sale
of service, but, for the purpose of |
| |||||||
| |||||||
1 | computing this tax, in no event shall
the selling price be less | ||||||
2 | than the cost price of the property to the
serviceman.
| ||||||
3 | Beginning on July 1, 2000 and through December 31, 2000 and | ||||||
4 | beginning again on July 1, 2007 , with respect to
motor fuel, as | ||||||
5 | defined in Section 1.1 of the Motor Fuel Tax
Law, and gasohol, | ||||||
6 | as defined in Section 3-40 of the Use Tax Act, the tax is
| ||||||
7 | imposed at
the rate of 1.25%.
| ||||||
8 | With respect to gasohol, as defined in the Use Tax Act, the | ||||||
9 | tax imposed
by this Act applies to (i) 70% of the selling price | ||||||
10 | of property transferred
as an incident to the sale of service | ||||||
11 | on or after January 1, 1990,
and before July 1, 2003, (ii) 80% | ||||||
12 | of the selling price of
property transferred as an incident to | ||||||
13 | the sale of service on or after July
1, 2003 and on or before | ||||||
14 | December 31, 2013, and (iii)
100% of the selling price | ||||||
15 | thereafter.
If, at any time, however, the tax under this Act on | ||||||
16 | sales of gasohol, as
defined in
the Use Tax Act, 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 gasohol
made during that time.
| ||||||
19 | With respect to majority blended ethanol fuel, as defined | ||||||
20 | in the Use Tax Act,
the
tax
imposed by this Act does not apply | ||||||
21 | to 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 | December 31, 2013 but applies to 100% of the selling price | ||||||
24 | thereafter.
| ||||||
25 | With respect to biodiesel blends, as defined in the Use Tax | ||||||
26 | Act, with no less
than 1% and no
more than 10% biodiesel, the |
| |||||||
| |||||||
1 | tax imposed by this Act
applies to (i) 80% of the selling price | ||||||
2 | of property transferred as an incident
to the sale of service | ||||||
3 | on or after July 1, 2003 and on or before December 31,
2013 and | ||||||
4 | (ii) 100% of the proceeds of the selling price
thereafter.
If, | ||||||
5 | at any time, however, the tax under this Act on sales of | ||||||
6 | biodiesel blends,
as
defined in the Use Tax Act, with no less | ||||||
7 | than 1% and no more than 10% biodiesel
is imposed at the rate | ||||||
8 | of 1.25%, then the
tax imposed by this Act applies to 100% of | ||||||
9 | the proceeds of sales of biodiesel
blends with no less than 1% | ||||||
10 | and no more than 10% biodiesel
made
during that time.
| ||||||
11 | With respect to 100% biodiesel, as defined in the Use Tax | ||||||
12 | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| ||||||
13 | more than 10% but no more than 99% biodiesel, the tax imposed | ||||||
14 | by this Act
does not apply to the proceeds of the selling price | ||||||
15 | of property transferred
as an incident to the sale of service | ||||||
16 | on or after July 1, 2003 and on or before
December 31, 2013 but | ||||||
17 | applies to 100% of the selling price thereafter.
| ||||||
18 | At the election of any registered serviceman made for each | ||||||
19 | fiscal year,
sales of service in which the aggregate annual | ||||||
20 | cost price of tangible
personal property transferred as an | ||||||
21 | incident to the sales of service is
less than 35%, or 75% in | ||||||
22 | the case of servicemen transferring prescription
drugs or | ||||||
23 | servicemen engaged in graphic arts production, of the aggregate
| ||||||
24 | annual total gross receipts from all sales of service, the tax | ||||||
25 | imposed by
this Act shall be based on the serviceman's cost | ||||||
26 | price of the tangible
personal property transferred as an |
| |||||||
| |||||||
1 | incident to the sale of those services.
| ||||||
2 | The tax shall be imposed at the rate of 1% on food prepared | ||||||
3 | for
immediate consumption and transferred incident to a sale of | ||||||
4 | service subject
to this Act or the Service Occupation Tax Act | ||||||
5 | by an entity licensed under
the Hospital Licensing Act, the | ||||||
6 | Nursing Home Care Act, or the
Child Care
Act of 1969. The tax | ||||||
7 | shall
also be imposed at the rate of 1% on food for human | ||||||
8 | consumption that is to be
consumed off the premises where it is | ||||||
9 | sold (other than alcoholic beverages,
soft drinks, and food | ||||||
10 | that has been prepared for immediate consumption and is
not | ||||||
11 | otherwise included in this paragraph) and prescription and | ||||||
12 | nonprescription
medicines, drugs, medical appliances, | ||||||
13 | modifications to a motor vehicle for the
purpose of rendering | ||||||
14 | it usable by a disabled person, and insulin, urine testing
| ||||||
15 | materials,
syringes, and needles used by diabetics, for
human | ||||||
16 | use. For the purposes of this Section, the term "soft drinks" | ||||||
17 | means any
complete, finished, ready-to-use, non-alcoholic | ||||||
18 | drink, whether carbonated or
not, including but not limited to | ||||||
19 | soda water, cola, fruit juice, vegetable
juice, carbonated | ||||||
20 | water, and all other preparations commonly known as soft
drinks | ||||||
21 | of whatever kind or description that are contained in any | ||||||
22 | closed or
sealed bottle, can, carton, or container, regardless | ||||||
23 | of size. "Soft drinks"
does not include coffee, tea, | ||||||
24 | non-carbonated water, infant formula, milk or
milk products as | ||||||
25 | defined in the Grade A Pasteurized Milk and Milk Products Act,
| ||||||
26 | or drinks containing 50% or more natural fruit or vegetable |
| |||||||
| |||||||
1 | juice.
| ||||||
2 | Notwithstanding any other provisions of this Act, "food for | ||||||
3 | human
consumption that is to be consumed off the premises where | ||||||
4 | it is sold" includes
all food sold through a vending machine, | ||||||
5 | except soft drinks and food products
that are dispensed hot | ||||||
6 | from a vending machine, regardless of the location of
the | ||||||
7 | vending machine.
| ||||||
8 | If the property that is acquired from a serviceman is | ||||||
9 | acquired outside
Illinois and used outside Illinois before | ||||||
10 | being brought to Illinois for use
here and is taxable under | ||||||
11 | this Act, the "selling price" on which the tax
is computed | ||||||
12 | shall be reduced by an amount that represents a reasonable
| ||||||
13 | allowance for depreciation for the period of prior out-of-state | ||||||
14 | use.
| ||||||
15 | (Source: P.A. 93-17, eff. 6-11-03.)
| ||||||
16 | Section 20. The Service Occupation Tax Act is amended by | ||||||
17 | changing Sections 3-10 and 9 as follows:
| ||||||
18 | (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
| ||||||
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 | ||||||
21 | the "selling price",
as defined in Section 2 of the Service Use | ||||||
22 | Tax Act, of the tangible
personal property. For the purpose of | ||||||
23 | computing this tax, in no event
shall the "selling price" be | ||||||
24 | less than the cost price to the serviceman of
the tangible |
| |||||||
| |||||||
1 | personal property transferred. The selling price of each item
| ||||||
2 | of tangible personal property transferred as an incident of a | ||||||
3 | sale of
service may be shown as a distinct and separate item on | ||||||
4 | the serviceman's
billing to the service customer. If the | ||||||
5 | selling price is not so shown, the
selling price of the | ||||||
6 | tangible personal property is deemed to be 50% of the
| ||||||
7 | serviceman's entire billing to the service customer. When, | ||||||
8 | however, a
serviceman contracts to design, develop, and produce | ||||||
9 | special order machinery or
equipment, the tax imposed by this | ||||||
10 | Act shall be based on the serviceman's
cost price of the | ||||||
11 | tangible personal property transferred incident to the
| ||||||
12 | completion of the contract.
| ||||||
13 | Beginning on July 1, 2000 and through December 31, 2000 and | ||||||
14 | beginning again on July 1, 2007 , with respect to
motor fuel, as | ||||||
15 | defined in Section 1.1 of the Motor Fuel Tax
Law, and gasohol, | ||||||
16 | as defined in Section 3-40 of the Use Tax Act, the tax is
| ||||||
17 | imposed at
the rate of 1.25%.
| ||||||
18 | With respect to gasohol, as defined in the Use Tax Act, the | ||||||
19 | tax imposed
by this Act shall apply to (i) 70% of the cost | ||||||
20 | price of property
transferred as
an incident to the sale of | ||||||
21 | service on or after January 1, 1990, and before
July 1, 2003, | ||||||
22 | (ii) 80% of the selling price of property transferred as an
| ||||||
23 | incident to the sale of service on or after July
1, 2003 and on | ||||||
24 | or before December 31, 2013, and (iii) 100%
of
the cost price
| ||||||
25 | thereafter.
If, at any time, however, the tax under this Act on | ||||||
26 | sales of gasohol, as
defined in
the Use Tax Act, is imposed at |
| |||||||
| |||||||
1 | the rate of 1.25%, then the
tax imposed by this Act applies to | ||||||
2 | 100% of the proceeds of sales of gasohol
made during that time.
| ||||||
3 | With respect to majority blended ethanol fuel, as defined | ||||||
4 | in the Use Tax Act,
the
tax
imposed by this Act does not apply | ||||||
5 | to the selling price of property transferred
as an incident to | ||||||
6 | the sale of service on or after July 1, 2003 and on or before
| ||||||
7 | December 31, 2013 but applies to 100% of the selling price | ||||||
8 | thereafter.
| ||||||
9 | With respect to biodiesel blends, as defined in the Use Tax | ||||||
10 | Act, with no less
than 1% and no
more than 10% biodiesel, the | ||||||
11 | tax imposed by this Act
applies to (i) 80% of the selling price | ||||||
12 | of property transferred as an incident
to the sale of service | ||||||
13 | on or after July 1, 2003 and on or before December 31,
2013 and | ||||||
14 | (ii) 100% of the proceeds of the selling price
thereafter.
If, | ||||||
15 | at any time, however, the tax under this Act on sales of | ||||||
16 | biodiesel blends,
as
defined in the Use Tax Act, with no less | ||||||
17 | than 1% and no more than 10% biodiesel
is imposed at the rate | ||||||
18 | of 1.25%, then the
tax imposed by this Act applies to 100% of | ||||||
19 | the proceeds of sales of biodiesel
blends with no less than 1% | ||||||
20 | 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 material, the tax | ||||||
24 | imposed by this
Act
does not apply to the proceeds of the | ||||||
25 | selling price of property transferred
as an incident to the | ||||||
26 | sale of service on or after July 1, 2003 and on or before
|
| |||||||
| |||||||
1 | December 31, 2013 but applies to 100% of the selling price | ||||||
2 | 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 incident to | ||||||
12 | 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, or the
Child Care Act of 1969. The tax | ||||||
18 | shall
also be imposed at the rate of 1% on food for human | ||||||
19 | consumption that is
to be consumed off the
premises where it is | ||||||
20 | sold (other than alcoholic beverages, soft drinks, and
food | ||||||
21 | that has been prepared for immediate consumption and is not
| ||||||
22 | otherwise included in this paragraph) and prescription and
| ||||||
23 | nonprescription medicines, drugs, medical appliances, | ||||||
24 | modifications to a motor
vehicle for the purpose of rendering | ||||||
25 | it usable by a disabled person, and
insulin, urine testing | ||||||
26 | materials, syringes, and needles used by diabetics, for
human |
| |||||||
| |||||||
1 | use. For the purposes of this Section, the term "soft drinks" | ||||||
2 | means any
complete, finished, ready-to-use, non-alcoholic | ||||||
3 | drink, whether carbonated or
not, including but not limited to | ||||||
4 | soda water, cola, fruit juice, vegetable
juice, carbonated | ||||||
5 | water, and all other preparations commonly known as soft
drinks | ||||||
6 | of whatever kind or description that are contained in any | ||||||
7 | closed or
sealed can, carton, or container, regardless of size. | ||||||
8 | "Soft drinks" does not
include coffee, tea, non-carbonated | ||||||
9 | water, infant formula, milk or milk
products as defined in the | ||||||
10 | Grade A Pasteurized Milk and Milk Products Act, or
drinks | ||||||
11 | containing 50% or more natural fruit or vegetable juice.
| ||||||
12 | Notwithstanding any other provisions of this Act, "food for | ||||||
13 | human consumption
that is to be consumed off the premises where | ||||||
14 | it is sold" includes all food
sold through a vending machine, | ||||||
15 | except soft drinks and food products that are
dispensed hot | ||||||
16 | from a vending machine, regardless of the location of the | ||||||
17 | vending
machine.
| ||||||
18 | (Source: P.A. 93-17, eff. 6-11-03.)
| ||||||
19 | Section 25. The Retailers' Occupation Tax Act is amended by | ||||||
20 | changing Sections 2-10 and 3 as follows:
| ||||||
21 | (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
| ||||||
22 | Sec. 2-10. Rate of tax. Unless otherwise provided in this | ||||||
23 | Section,
the tax imposed by this Act is at the rate of 6.25% of | ||||||
24 | gross receipts
from sales of tangible personal property made in |
| |||||||
| |||||||
1 | the course of business.
| ||||||
2 | Beginning on July 1, 2000 and through December 31, 2000 and | ||||||
3 | beginning again on July 1, 2007 , with respect to
motor fuel, as | ||||||
4 | defined in Section 1.1 of the Motor Fuel Tax
Law, and gasohol, | ||||||
5 | as defined in Section 3-40 of the Use Tax Act, the tax is
| ||||||
6 | imposed at the rate of 1.25%.
| ||||||
7 | Within 14 days after the effective date of this amendatory | ||||||
8 | Act of the 91st
General Assembly, each retailer of motor fuel | ||||||
9 | and gasohol shall cause the
following notice to be posted in a | ||||||
10 | prominently visible place on each retail
dispensing device that | ||||||
11 | is used to dispense motor
fuel or gasohol in the State of | ||||||
12 | Illinois: "As of July 1, 2000, the State of
Illinois has | ||||||
13 | eliminated the State's share of sales tax on motor fuel and
| ||||||
14 | gasohol through December 31, 2000. The price on this pump | ||||||
15 | should reflect the
elimination of the tax." The notice shall be | ||||||
16 | printed in bold print on a sign
that is no smaller than 4 | ||||||
17 | inches by 8 inches. The sign shall be clearly
visible to | ||||||
18 | customers. Any retailer who fails to post or maintain a | ||||||
19 | required
sign through December 31, 2000 is guilty of a petty | ||||||
20 | offense for which the fine
shall be $500 per day per each | ||||||
21 | retail premises where a violation occurs.
| ||||||
22 | With respect to gasohol, as defined in the Use Tax Act, the | ||||||
23 | tax imposed
by this Act applies to (i) 70% of the proceeds of | ||||||
24 | sales made on or after
January 1, 1990, and before July 1, | ||||||
25 | 2003, (ii) 80% of the proceeds of
sales made on or after July | ||||||
26 | 1, 2003 and on or before December 31,
2013, and (iii) 100% of |
| |||||||
| |||||||
1 | the proceeds of sales
made thereafter.
If, at any time, | ||||||
2 | however, the tax under this Act on sales of gasohol, as
defined | ||||||
3 | in
the Use Tax Act, is imposed at the rate of 1.25%, then the
| ||||||
4 | tax imposed by this Act applies to 100% of the proceeds of | ||||||
5 | sales of gasohol
made during that time.
| ||||||
6 | With respect to majority blended ethanol fuel, as defined | ||||||
7 | in the Use Tax Act,
the
tax
imposed by this Act does not apply | ||||||
8 | to the proceeds of sales made on or after
July 1, 2003 and on or | ||||||
9 | before December 31, 2013 but applies to 100% of the
proceeds of | ||||||
10 | sales made thereafter.
| ||||||
11 | With respect to biodiesel blends, as defined in the Use Tax | ||||||
12 | Act, with no less
than 1% and no
more than 10% biodiesel, the | ||||||
13 | tax imposed by this Act
applies to (i) 80% of the proceeds of | ||||||
14 | sales made on or after July 1, 2003
and on or before December | ||||||
15 | 31, 2013 and (ii) 100% of the
proceeds of sales made | ||||||
16 | thereafter.
If, at any time, however, the tax under this Act on | ||||||
17 | sales of biodiesel blends,
as
defined in the Use Tax Act, with | ||||||
18 | no less than 1% and no more than 10% biodiesel
is imposed at | ||||||
19 | the rate of 1.25%, then the
tax imposed by this Act applies to | ||||||
20 | 100% of the proceeds of sales of biodiesel
blends with no less | ||||||
21 | than 1% 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 sales made on or | ||||||
26 | after July 1, 2003
and on or before December 31, 2013 but |
| |||||||
| |||||||
1 | applies to 100% of the
proceeds of sales made thereafter.
| ||||||
2 | With respect to food for human consumption that is to be | ||||||
3 | consumed off the
premises where it is sold (other than | ||||||
4 | alcoholic beverages, soft drinks, and
food that has been | ||||||
5 | prepared for immediate consumption) and prescription and
| ||||||
6 | nonprescription medicines, drugs, medical appliances, | ||||||
7 | modifications to a motor
vehicle for the purpose of rendering | ||||||
8 | it usable by a disabled person, and
insulin, urine testing | ||||||
9 | materials, syringes, and needles used by diabetics, for
human | ||||||
10 | use, the tax is imposed at the rate of 1%. For the purposes of | ||||||
11 | this
Section, the term "soft drinks" means any complete, | ||||||
12 | finished, ready-to-use,
non-alcoholic drink, whether | ||||||
13 | carbonated or not, including but not limited to
soda water, | ||||||
14 | cola, fruit juice, vegetable juice, carbonated water, and all | ||||||
15 | other
preparations commonly known as soft drinks of whatever | ||||||
16 | kind or description that
are contained in any closed or sealed | ||||||
17 | bottle, can, carton, or container,
regardless of size. "Soft | ||||||
18 | drinks" does not include coffee, tea, non-carbonated
water, | ||||||
19 | infant formula, milk or milk products as defined in the Grade A
| ||||||
20 | Pasteurized Milk and Milk Products Act, or drinks containing | ||||||
21 | 50% or more
natural fruit or vegetable juice.
| ||||||
22 | Notwithstanding any other provisions of this
Act, "food for | ||||||
23 | human consumption that is to be consumed off the premises where
| ||||||
24 | it is sold" includes all food sold through a vending machine, | ||||||
25 | except soft
drinks and food products that are dispensed hot | ||||||
26 | from a vending machine,
regardless of the location of the |
| |||||||
| |||||||
1 | vending machine.
| ||||||
2 | (Source: P.A. 93-17, eff. 6-11-03.)
| ||||||
3 | Section 99. Effective date. This Act takes effect upon | ||||||
4 | becoming law.
|