101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5766

 

Introduced , by Rep. David McSweeney

 

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. Reduces the rate of tax under those Acts for a 3-month period to 4.69% (currently 6.25%). Provides that, during that period, with respect to food, medicines, drugs, medical appliances, and other devices that are ordinarily subject to a 1% rate of tax, the tax is imposed at the rate of 0.75%. Effective immediately.


LRB101 21119 HLH 71604 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5766LRB101 21119 HLH 71604 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    Except as otherwise provided in this paragraph, beginning
6on the effective date of this amendatory Act of the 101st
7General Assembly and continuing through the last day of the
8third month to occur on or after the effective date of this
9amendatory Act of the 101st General Assembly, the rate of tax
10imposed by this Act is 4.69% of either the selling price or the
11fair market value, if any, of tangible personal property.
12Beginning on the effective date of this amendatory Act of the
13101st General Assembly and continuing through the last day of
14the third month to occur on or after the effective date of this
15amendatory Act of the 101st General Assembly, with respect to
16food, medicines, drugs, medical appliances, and other devices
17that are ordinarily subject to a 1% rate of tax, the tax is
18imposed at the rate of 0.75%.
19    Beginning on July 1, 2000 and through December 31, 2000,
20with respect to motor fuel, as defined in Section 1.1 of the
21Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
22the Use Tax Act, the tax is imposed at the rate of 1.25%.
23    Beginning on August 6, 2010 through August 15, 2010, with
24respect to sales tax holiday items as defined in Section 3-6 of
25this Act, the tax is imposed at the rate of 1.25%.
26    With respect to gasohol, the tax imposed by this Act

 

 

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1applies to (i) 70% of the proceeds of sales made on or after
2January 1, 1990, and before July 1, 2003, (ii) 80% of the
3proceeds of sales made on or after July 1, 2003 and on or
4before July 1, 2017, and (iii) 100% of the proceeds of sales
5made thereafter. If, at any time, however, the tax under this
6Act on sales of gasohol is imposed at the rate of 1.25%, then
7the tax imposed by this Act applies to 100% of the proceeds of
8sales of gasohol made during that time.
9    With respect to majority blended ethanol fuel, the tax
10imposed by this Act does not apply to the proceeds of sales
11made on or after July 1, 2003 and on or before December 31,
122023 but applies to 100% of the proceeds of sales made
13thereafter.
14    With respect to biodiesel blends with no less than 1% and
15no more than 10% biodiesel, the tax imposed by this Act applies
16to (i) 80% of the proceeds of sales made on or after July 1,
172003 and on or before December 31, 2018 and (ii) 100% of the
18proceeds of sales made thereafter. If, at any time, however,
19the tax under this Act on sales of biodiesel blends with no
20less than 1% and no more than 10% biodiesel is imposed at the
21rate of 1.25%, then the tax imposed by this Act applies to 100%
22of the proceeds of sales of biodiesel blends with no less than
231% and no more than 10% biodiesel made during that time.
24    With respect to 100% biodiesel and biodiesel blends with
25more than 10% but no more than 99% biodiesel, the tax imposed
26by this Act does not apply to the proceeds of sales made on or

 

 

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1after July 1, 2003 and on or before December 31, 2023 but
2applies to 100% of the proceeds of sales made thereafter.
3    With respect to food for human consumption that is to be
4consumed off the premises where it is sold (other than
5alcoholic beverages, food consisting of or infused with adult
6use cannabis, soft drinks, and food that has been prepared for
7immediate consumption) and prescription and nonprescription
8medicines, drugs, medical appliances, products classified as
9Class III medical devices by the United States Food and Drug
10Administration that are used for cancer treatment pursuant to a
11prescription, as well as any accessories and components related
12to those devices, modifications to a motor vehicle for the
13purpose of rendering it usable by a person with a disability,
14and insulin, urine testing materials, syringes, and needles
15used by diabetics, for human use, the tax is imposed at the
16rate of 1%. For the purposes of this Section, until September
171, 2009: the term "soft drinks" means any complete, finished,
18ready-to-use, non-alcoholic drink, whether carbonated or not,
19including but not limited to soda water, cola, fruit juice,
20vegetable juice, carbonated water, and all other preparations
21commonly known as soft drinks of whatever kind or description
22that are contained in any closed or sealed bottle, can, carton,
23or container, regardless of size; but "soft drinks" does not
24include coffee, tea, non-carbonated water, infant formula,
25milk or milk products as defined in the Grade A Pasteurized
26Milk and Milk Products Act, or drinks containing 50% or more

 

 

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

 

 

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1pieces. "Candy" does not include any preparation that contains
2flour or requires refrigeration.
3    Notwithstanding any other provisions of this Act,
4beginning September 1, 2009, "nonprescription medicines and
5drugs" does not include grooming and hygiene products. For
6purposes of this Section, "grooming and hygiene products"
7includes, but is not limited to, soaps and cleaning solutions,
8shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
9lotions and screens, unless those products are available by
10prescription only, regardless of whether the products meet the
11definition of "over-the-counter-drugs". For the purposes of
12this paragraph, "over-the-counter-drug" means a drug for human
13use that contains a label that identifies the product as a drug
14as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
15label includes:
16        (A) A "Drug Facts" panel; or
17        (B) A statement of the "active ingredient(s)" with a
18    list of those ingredients contained in the compound,
19    substance or preparation.
20    Beginning on the effective date of this amendatory Act of
21the 98th General Assembly, "prescription and nonprescription
22medicines and drugs" includes medical cannabis purchased from a
23registered dispensing organization under the Compassionate Use
24of Medical Cannabis Program Act.
25    As used in this Section, "adult use cannabis" means
26cannabis subject to tax under the Cannabis Cultivation

 

 

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1Privilege Tax Law and the Cannabis Purchaser Excise Tax Law and
2does not include cannabis subject to tax under the
3Compassionate Use of Medical Cannabis Program Act.
4    If the property that is purchased at retail from a retailer
5is acquired outside Illinois and used outside Illinois before
6being brought to Illinois for use here and is taxable under
7this Act, the "selling price" on which the tax is computed
8shall be reduced by an amount that represents a reasonable
9allowance for depreciation for the period of prior out-of-state
10use.
11(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
12101-593, eff. 12-4-19.)
 
13    Section 10. The Service Use Tax Act is amended by changing
14Section 3-10 as follows:
 
15    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
16    Sec. 3-10. Rate of tax. Unless otherwise provided in this
17Section, the tax imposed by this Act is at the rate of 6.25% of
18the selling price of tangible personal property transferred as
19an incident to the sale of service, but, for the purpose of
20computing this tax, in no event shall the selling price be less
21than the cost price of the property to the serviceman.
22    Except as otherwise provided in this paragraph, beginning
23on the effective date of this amendatory Act of the 101st
24General Assembly and continuing through the last day of the

 

 

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1third month to occur on or after the effective date of this
2amendatory Act of the 101st General Assembly, the rate of tax
3imposed by this Act is 4.69% of the selling price of tangible
4personal property transferred as an incident to the sale of
5service, but, for the purpose of computing this tax, in no
6event shall the selling price be less than the cost price of
7the property to the serviceman. Beginning on the effective date
8of this amendatory Act of the 101st General Assembly and
9continuing through the last day of the third month to occur on
10or after the effective date of this amendatory Act of the 101st
11General Assembly, with respect to food, medicines, drugs,
12medical appliances, and other devices that are ordinarily
13subject to a 1% rate of tax, the tax is imposed at the rate of
140.75%.
15    Beginning on July 1, 2000 and through December 31, 2000,
16with respect to motor fuel, as defined in Section 1.1 of the
17Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
18the Use Tax Act, the tax is imposed at the rate of 1.25%.
19    With respect to gasohol, as defined in the Use Tax Act, the
20tax imposed by this Act applies to (i) 70% of the selling price
21of property transferred as an incident to the sale of service
22on or after January 1, 1990, and before July 1, 2003, (ii) 80%
23of the selling price of property transferred as an incident to
24the sale of service on or after July 1, 2003 and on or before
25July 1, 2017, and (iii) 100% of the selling price thereafter.
26If, at any time, however, the tax under this Act on sales of

 

 

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1gasohol, as defined in the Use Tax Act, is imposed at the rate
2of 1.25%, then the tax imposed by this Act applies to 100% of
3the proceeds of sales of gasohol made during that time.
4    With respect to majority blended ethanol fuel, as defined
5in the Use Tax Act, the tax imposed by this Act does not apply
6to the selling price of property transferred as an incident to
7the sale of service on or after July 1, 2003 and on or before
8December 31, 2023 but applies to 100% of the selling price
9thereafter.
10    With respect to biodiesel blends, as defined in the Use Tax
11Act, with no less than 1% and no more than 10% biodiesel, the
12tax imposed by this Act applies to (i) 80% of the selling price
13of property transferred as an incident to the sale of service
14on or after July 1, 2003 and on or before December 31, 2018 and
15(ii) 100% of the proceeds of the selling price thereafter. If,
16at any time, however, the tax under this Act on sales of
17biodiesel blends, as defined in the Use Tax Act, with no less
18than 1% and no more than 10% biodiesel is imposed at the rate
19of 1.25%, then the tax imposed by this Act applies to 100% of
20the proceeds of sales of biodiesel blends with no less than 1%
21and no more than 10% biodiesel made during that time.
22    With respect to 100% biodiesel, as defined in the Use Tax
23Act, and biodiesel blends, as defined in the Use Tax Act, with
24more than 10% but no more than 99% biodiesel, the tax imposed
25by this Act does not apply to the proceeds of the selling price
26of property transferred as an incident to the sale of service

 

 

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1on or after July 1, 2003 and on or before December 31, 2023 but
2applies to 100% of the selling price thereafter.
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 as an
12incident to the 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, food consisting of or infused with adult
23use cannabis, soft drinks, and food that has been prepared for
24immediate consumption and is not otherwise included in this
25paragraph) and prescription and nonprescription medicines,
26drugs, medical appliances, products classified as Class III

 

 

HB5766- 11 -LRB101 21119 HLH 71604 b

1medical 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 bottle, can, carton, or container, regardless of
15size; but "soft drinks" does not include coffee, tea,
16non-carbonated water, infant formula, milk or milk products as
17defined in the Grade A Pasteurized Milk and Milk Products Act,
18or drinks containing 50% or more natural fruit or vegetable
19juice.
20    Notwithstanding any other provisions of this Act,
21beginning September 1, 2009, "soft drinks" means non-alcoholic
22beverages that contain natural or artificial sweeteners. "Soft
23drinks" do not include beverages that contain milk or milk
24products, soy, rice or similar milk substitutes, or greater
25than 50% of vegetable or fruit juice by volume.
26    Until August 1, 2009, and notwithstanding any other

 

 

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

 

 

HB5766- 13 -LRB101 21119 HLH 71604 b

1lotions and screens, unless those products are available by
2prescription only, regardless of whether the products meet the
3definition of "over-the-counter-drugs". For the purposes of
4this paragraph, "over-the-counter-drug" means a drug for human
5use that contains a label that identifies the product as a drug
6as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
7label includes:
8        (A) A "Drug Facts" panel; or
9        (B) A statement of the "active ingredient(s)" with a
10    list of those ingredients contained in the compound,
11    substance or preparation.
12    Beginning on January 1, 2014 (the effective date of Public
13Act 98-122), "prescription and nonprescription medicines and
14drugs" includes medical cannabis purchased from a registered
15dispensing organization under the Compassionate Use of Medical
16Cannabis Program Act.
17    As used in this Section, "adult use cannabis" means
18cannabis subject to tax under the Cannabis Cultivation
19Privilege Tax Law and the Cannabis Purchaser Excise Tax Law and
20does not include cannabis subject to tax under the
21Compassionate Use of Medical Cannabis Program Act.
22    If the property that is acquired from a serviceman is
23acquired outside Illinois and used outside Illinois before
24being brought to Illinois for use here and is taxable under
25this Act, the "selling price" on which the tax is computed
26shall be reduced by an amount that represents a reasonable

 

 

HB5766- 14 -LRB101 21119 HLH 71604 b

1allowance for depreciation for the period of prior out-of-state
2use.
3(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
4101-593, eff. 12-4-19.)
 
5    Section 15. The Service Occupation Tax Act is amended by
6changing Section 3-10 as follows:
 
7    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
8    Sec. 3-10. Rate of tax. Unless otherwise provided in this
9Section, the tax imposed by this Act is at the rate of 6.25% of
10the "selling price", as defined in Section 2 of the Service Use
11Tax Act, of the tangible personal property. For the purpose of
12computing this tax, in no event shall the "selling price" be
13less than the cost price to the serviceman of the tangible
14personal property transferred. The selling price of each item
15of tangible personal property transferred as an incident of a
16sale of service may be shown as a distinct and separate item on
17the serviceman's billing to the service customer. If the
18selling price is not so shown, the selling price of the
19tangible personal property is deemed to be 50% of the
20serviceman's entire billing to the service customer. When,
21however, a serviceman contracts to design, develop, and produce
22special order machinery or equipment, the tax imposed by this
23Act shall be based on the serviceman's cost price of the
24tangible personal property transferred incident to the

 

 

HB5766- 15 -LRB101 21119 HLH 71604 b

1completion of the contract.
2    Except as otherwise provided in this paragraph, beginning
3on the effective date of this amendatory Act of the 101st
4General Assembly and continuing through the last day of the
5third month to occur on or after the effective date of this
6amendatory Act of the 101st General Assembly, the rate of tax
7imposed by this Act is 4.69% of the "selling price", as defined
8in Section 2 of the Service Use Tax Act, of the tangible
9personal property. For the purpose of computing this tax, in no
10event shall the "selling price" be less than the cost price to
11the serviceman of the tangible personal property transferred.
12Beginning on the effective date of this amendatory Act of the
13101st General Assembly and continuing through the last day of
14the third month to occur on or after the effective date of this
15amendatory Act of the 101st General Assembly, with respect to
16food, medicines, drugs, medical appliances, and other devices
17that are ordinarily subject to a 1% rate of tax, the tax is
18imposed at the rate of 0.75%.
19    Beginning on July 1, 2000 and through December 31, 2000,
20with respect to motor fuel, as defined in Section 1.1 of the
21Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
22the Use Tax Act, the tax is imposed at the rate of 1.25%.
23    With respect to gasohol, as defined in the Use Tax Act, the
24tax imposed by this Act shall apply to (i) 70% of the cost
25price of property transferred as an incident to the sale of
26service on or after January 1, 1990, and before July 1, 2003,

 

 

HB5766- 16 -LRB101 21119 HLH 71604 b

1(ii) 80% of the selling price of property transferred as an
2incident to the sale of service on or after July 1, 2003 and on
3or before July 1, 2017, and (iii) 100% of the cost price
4thereafter. If, at any time, however, the tax under this Act on
5sales of gasohol, as defined in the Use Tax Act, is imposed at
6the rate of 1.25%, then the tax imposed by this Act applies to
7100% of the proceeds of sales of gasohol 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 selling price of property transferred as an incident to
11the sale of service on or after July 1, 2003 and on or before
12December 31, 2023 but applies to 100% of the selling price
13thereafter.
14    With respect to biodiesel blends, as defined in the Use Tax
15Act, with no less than 1% and no more than 10% biodiesel, the
16tax imposed by this Act applies to (i) 80% of the selling price
17of property transferred as an incident to the sale of service
18on or after July 1, 2003 and on or before December 31, 2018 and
19(ii) 100% of the proceeds of the selling price thereafter. If,
20at any time, however, the tax under this Act on sales of
21biodiesel blends, as defined in the Use Tax Act, with no less
22than 1% and no more than 10% biodiesel is imposed at the rate
23of 1.25%, then the tax imposed by this Act applies to 100% of
24the proceeds of sales of biodiesel blends with no less than 1%
25and no more than 10% biodiesel made during that time.
26    With respect to 100% biodiesel, as defined in the Use Tax

 

 

HB5766- 17 -LRB101 21119 HLH 71604 b

1Act, and biodiesel blends, as defined in the Use Tax Act, with
2more than 10% but no more than 99% biodiesel material, the tax
3imposed by this Act does not apply to the proceeds of the
4selling price of property transferred as an incident to the
5sale of service on or after July 1, 2003 and on or before
6December 31, 2023 but applies to 100% of the selling price
7thereafter.
8    At the election of any registered serviceman made for each
9fiscal year, sales of service in which the aggregate annual
10cost price of tangible personal property transferred as an
11incident to the sales of service is less than 35%, or 75% in
12the case of servicemen transferring prescription drugs or
13servicemen engaged in graphic arts production, of the aggregate
14annual total gross receipts from all sales of service, the tax
15imposed by this Act shall be based on the serviceman's cost
16price of the tangible personal property transferred incident to
17the sale of those services.
18    The tax shall be imposed at the rate of 1% on food prepared
19for immediate consumption and transferred incident to a sale of
20service subject to this Act or the Service Occupation Tax Act
21by an entity licensed under the Hospital Licensing Act, the
22Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
23Act, the Specialized Mental Health Rehabilitation Act of 2013,
24or the Child Care Act of 1969. The tax shall also be imposed at
25the rate of 1% on food for human consumption that is to be
26consumed off the premises where it is sold (other than

 

 

HB5766- 18 -LRB101 21119 HLH 71604 b

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

 

 

HB5766- 19 -LRB101 21119 HLH 71604 b

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

 

 

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1drugs" does not include grooming and hygiene products. For
2purposes of this Section, "grooming and hygiene products"
3includes, but is not limited to, soaps and cleaning solutions,
4shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
5lotions and screens, unless those products are available by
6prescription only, regardless of whether the products meet the
7definition of "over-the-counter-drugs". For the purposes of
8this paragraph, "over-the-counter-drug" means a drug for human
9use that contains a label that identifies the product as a drug
10as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
11label includes:
12        (A) A "Drug Facts" panel; or
13        (B) A statement of the "active ingredient(s)" with a
14    list of those ingredients contained in the compound,
15    substance or preparation.
16    Beginning on January 1, 2014 (the effective date of Public
17Act 98-122), "prescription and nonprescription medicines and
18drugs" includes medical cannabis purchased from a registered
19dispensing organization under the Compassionate Use of Medical
20Cannabis Program Act.
21    As used in this Section, "adult use cannabis" means
22cannabis subject to tax under the Cannabis Cultivation
23Privilege Tax Law and the Cannabis Purchaser Excise Tax Law and
24does not include cannabis subject to tax under the
25Compassionate Use of Medical Cannabis Program Act.
26(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;

 

 

HB5766- 21 -LRB101 21119 HLH 71604 b

1101-593, eff. 12-4-19.)
 
2    Section 20. The Retailers' Occupation Tax Act is amended by
3changing Section 2-10 as follows:
 
4    (35 ILCS 120/2-10)
5    Sec. 2-10. Rate of tax. Unless otherwise provided in this
6Section, the tax imposed by this Act is at the rate of 6.25% of
7gross receipts from sales of tangible personal property made in
8the course of business.
9    Except as otherwise provided in this paragraph, beginning
10on the effective date of this amendatory Act of the 101st
11General Assembly and continuing through the last day of the
12third month to occur on or after the effective date of this
13amendatory Act of the 101st General Assembly, the rate of tax
14imposed by this Act is 4.69% of the gross receipts from sales
15of tangible personal property made in the course of business.
16Beginning on the effective date of this amendatory Act of the
17101st General Assembly and continuing through the last day of
18the third month to occur on or after the effective date of this
19amendatory Act of the 101st General Assembly, with respect to
20food, medicines, drugs, medical appliances, and other devices
21that are ordinarily subject to a 1% rate of tax, the tax is
22imposed at the rate of 0.75%.
23    Beginning on July 1, 2000 and through December 31, 2000,
24with respect to motor fuel, as defined in Section 1.1 of the

 

 

HB5766- 22 -LRB101 21119 HLH 71604 b

1Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
2the Use Tax Act, the tax is imposed at the rate of 1.25%.
3    Beginning on August 6, 2010 through August 15, 2010, with
4respect to sales tax holiday items as defined in Section 2-8 of
5this Act, the tax is imposed at the rate of 1.25%.
6    Within 14 days after the effective date of this amendatory
7Act of the 91st General Assembly, each retailer of motor fuel
8and gasohol shall cause the following notice to be posted in a
9prominently visible place on each retail dispensing device that
10is used to dispense motor fuel or gasohol in the State of
11Illinois: "As of July 1, 2000, the State of Illinois has
12eliminated the State's share of sales tax on motor fuel and
13gasohol through December 31, 2000. The price on this pump
14should reflect the elimination of the tax." The notice shall be
15printed in bold print on a sign that is no smaller than 4
16inches by 8 inches. The sign shall be clearly visible to
17customers. Any retailer who fails to post or maintain a
18required sign through December 31, 2000 is guilty of a petty
19offense for which the fine shall be $500 per day per each
20retail premises where a violation occurs.
21    With respect to gasohol, as defined in the Use Tax Act, the
22tax imposed by this Act applies to (i) 70% of the proceeds of
23sales made on or after January 1, 1990, and before July 1,
242003, (ii) 80% of the proceeds of sales made on or after July
251, 2003 and on or before July 1, 2017, and (iii) 100% of the
26proceeds of sales made thereafter. If, at any time, however,

 

 

HB5766- 23 -LRB101 21119 HLH 71604 b

1the tax under this Act on sales of gasohol, as defined in the
2Use Tax Act, is imposed at the rate of 1.25%, then the tax
3imposed by this Act applies to 100% of the proceeds of sales of
4gasohol made during that time.
5    With respect to majority blended ethanol fuel, as defined
6in the Use Tax Act, the tax imposed by this Act does not apply
7to the proceeds of sales made on or after July 1, 2003 and on or
8before December 31, 2023 but applies to 100% of the proceeds of
9sales made thereafter.
10    With respect to biodiesel blends, as defined in the Use Tax
11Act, with no less than 1% and no more than 10% biodiesel, the
12tax imposed by this Act applies to (i) 80% of the proceeds of
13sales made on or after July 1, 2003 and on or before December
1431, 2018 and (ii) 100% of the proceeds of sales made
15thereafter. If, at any time, however, the tax under this Act on
16sales of biodiesel blends, as defined in the Use Tax Act, with
17no less than 1% and no more than 10% biodiesel is imposed at
18the rate of 1.25%, then the tax imposed by this Act applies to
19100% of the proceeds of sales of biodiesel blends with no less
20than 1% and 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, the tax imposed
24by this Act does not apply to the proceeds of sales made on or
25after July 1, 2003 and on or before December 31, 2023 but
26applies to 100% of the proceeds of sales made thereafter.

 

 

HB5766- 24 -LRB101 21119 HLH 71604 b

1    With respect to food for human consumption that is to be
2consumed off the premises where it is sold (other than
3alcoholic beverages, food consisting of or infused with adult
4use cannabis, soft drinks, and food that has been prepared for
5immediate consumption) and prescription and nonprescription
6medicines, drugs, medical appliances, products classified as
7Class III medical devices by the United States Food and Drug
8Administration that are used for cancer treatment pursuant to a
9prescription, as well as any accessories and components related
10to those devices, modifications to a motor vehicle for the
11purpose of rendering it usable by a person with a disability,
12and insulin, urine testing materials, syringes, and needles
13used by diabetics, for human use, the tax is imposed at the
14rate of 1%. For the purposes of this Section, until September
151, 2009: the term "soft drinks" means any complete, finished,
16ready-to-use, non-alcoholic drink, whether carbonated or not,
17including but not limited to soda water, cola, fruit juice,
18vegetable juice, carbonated water, and all other preparations
19commonly known as soft drinks of whatever kind or description
20that are contained in any closed or sealed bottle, can, carton,
21or container, regardless of size; but "soft drinks" does not
22include coffee, tea, non-carbonated water, infant formula,
23milk or milk products as defined in the Grade A Pasteurized
24Milk and Milk Products Act, or drinks containing 50% or more
25natural fruit or vegetable juice.
26    Notwithstanding any other provisions of this Act,

 

 

HB5766- 25 -LRB101 21119 HLH 71604 b

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

 

 

HB5766- 26 -LRB101 21119 HLH 71604 b

1    Notwithstanding any other provisions of this Act,
2beginning September 1, 2009, "nonprescription medicines and
3drugs" does not include grooming and hygiene products. For
4purposes of this Section, "grooming and hygiene products"
5includes, but is not limited to, soaps and cleaning solutions,
6shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
7lotions and screens, unless those products are available by
8prescription only, regardless of whether the products meet the
9definition of "over-the-counter-drugs". For the purposes of
10this paragraph, "over-the-counter-drug" means a drug for human
11use that contains a label that identifies the product as a drug
12as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
13label includes:
14        (A) A "Drug Facts" panel; or
15        (B) A statement of the "active ingredient(s)" with a
16    list of those ingredients contained in the compound,
17    substance or preparation.
18    Beginning on the effective date of this amendatory Act of
19the 98th General Assembly, "prescription and nonprescription
20medicines and drugs" includes medical cannabis purchased from a
21registered dispensing organization under the Compassionate Use
22of Medical Cannabis Program Act.
23    As used in this Section, "adult use cannabis" means
24cannabis subject to tax under the Cannabis Cultivation
25Privilege Tax Law and the Cannabis Purchaser Excise Tax Law and
26does not include cannabis subject to tax under the

 

 

HB5766- 27 -LRB101 21119 HLH 71604 b

1Compassionate Use of Medical Cannabis Program Act.
2(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
3101-593, eff. 12-4-19.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.