Full Text of SB3658 96th General Assembly
SB3658ham001 96TH GENERAL ASSEMBLY
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Executive Committee
Filed: 5/5/2010
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09600SB3658ham001 |
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LRB096 20358 HLH 41151 a |
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| AMENDMENT TO SENATE BILL 3658
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| AMENDMENT NO. ______. Amend Senate Bill 3658 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Use Tax Act is amended by changing Section | 5 |
| 3-10 and by adding Section 3-6 as follows: | 6 |
| (35 ILCS 105/3-6 new) | 7 |
| Sec. 3-6. Sales tax holiday items. | 8 |
| (a) The tangible personal property described in this | 9 |
| subsection qualifies for the
1.25% reduced rate of tax for the | 10 |
| period set forth in Section 3-10 of this Act (hereinafter
| 11 |
| referred to as the Sales Tax Holiday Period). The reduced rate | 12 |
| on these items shall be
administered under the provisions of | 13 |
| subsection (b) of this Section. The following items are subject | 14 |
| to the
reduced rate: | 15 |
| (1) Clothing items that each have a retail selling | 16 |
| price of less than $100. |
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| "Clothing" means, unless otherwise specified in this | 2 |
| Section, all human wearing
apparel suitable for general | 3 |
| use. "Clothing" does not include clothing
accessories, | 4 |
| protective equipment, or sport or recreational equipment.
| 5 |
| "Clothing" includes, but is not limited to: household and | 6 |
| shop aprons; athletic
supporters; bathing suits and caps; | 7 |
| belts and suspenders; boots; coats and
jackets; ear muffs; | 8 |
| footlets; gloves and mittens for general use; hats and | 9 |
| caps;
hosiery; insoles for shoes; lab coats; neckties; | 10 |
| overshoes; pantyhose;
rainwear; rubber pants; sandals; | 11 |
| scarves; shoes and shoelaces; slippers;
sneakers; socks | 12 |
| and stockings; steel-toed shoes; underwear; and school
| 13 |
| uniforms. | 14 |
| "Clothing accessories" means, but is not limited to: | 15 |
| briefcases; cosmetics; hair
notions, including, but not | 16 |
| limited to barrettes, hair bows, and hair nets;
handbags; | 17 |
| handkerchiefs; jewelry; non-prescription sunglasses; | 18 |
| umbrellas;
wallets; watches; and wigs and hair pieces. | 19 |
| "Protective equipment" means, but is not limited to: | 20 |
| breathing masks; clean
room apparel and equipment; ear and | 21 |
| hearing protectors; face shields; hard
hats; helmets; | 22 |
| paint or dust respirators; protective gloves; safety | 23 |
| glasses and
goggles; safety belts; tool belts; and welder's | 24 |
| gloves and masks. | 25 |
| "Sport or recreational equipment" means, but is not | 26 |
| limited to: ballet and tap
shoes; cleated or spiked |
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| athletic shoes; gloves, including, but not limited to,
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| baseball, bowling, boxing, hockey, and golf gloves; | 3 |
| goggles; hand and elbow guards;
life preservers and vests; | 4 |
| mouth guards; roller and ice skates; shin guards;
shoulder | 5 |
| pads; ski boots; waders; and wetsuits and fins. | 6 |
| (2) School supplies. "School supplies" means, unless | 7 |
| otherwise specified in this
Section, items used by a | 8 |
| student in a course of study. The purchase of school
| 9 |
| supplies for use by persons other than students for use in | 10 |
| a course of study are not
eligible for the reduced rate of | 11 |
| tax. "School supplies" do not include school art
supplies; | 12 |
| school instructional materials; cameras; film and memory | 13 |
| cards;
videocameras, tapes, and videotapes; computers; | 14 |
| cell phones; Personal Digital
Assistants (PDAs); handheld | 15 |
| electronic schedulers; and school computer
supplies. | 16 |
| "School supplies" includes, but is not limited to: | 17 |
| binders; book bags;
calculators; cellophane tape; | 18 |
| blackboard chalk; compasses; composition books;
crayons; | 19 |
| erasers; expandable, pocket, plastic, and manila folders; | 20 |
| glue, paste,
and paste sticks; highlighters; index cards; | 21 |
| index card boxes; legal pads; lunch
boxes; markers; | 22 |
| notebooks; paper, including loose leaf ruled notebook | 23 |
| paper, copy paper,
graph paper, tracing paper, manila | 24 |
| paper, colored paper, poster board, and
construction | 25 |
| paper; pencils; pencil leads; pens; ink and ink refills for | 26 |
| pens; pencil
boxes and other school supply boxes; pencil |
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| sharpeners; protractors; rulers;
scissors; and | 2 |
| writing-tablets. | 3 |
| "School art supply" means an item commonly used by a | 4 |
| student in a course of
study for artwork and includes only | 5 |
| the following items: clay and glazes; acrylic, tempera, and | 6 |
| oil paint; paintbrushes for artwork; sketch and drawing | 7 |
| pads; and
watercolors. | 8 |
| "School instructional material" means written material | 9 |
| commonly used by a
student in a course of study as a | 10 |
| reference and to learn the subject being taught
and | 11 |
| includes only the following items: reference books; | 12 |
| reference maps and
globes; textbooks; and workbooks. | 13 |
| "School computer supply" means an item commonly used by | 14 |
| a student in a course
of study in which a computer is used | 15 |
| and applies only to the following items:
flashdrives and | 16 |
| other computer data storage devices; data storage media, | 17 |
| such as
diskettes and compact disks; boxes and cases for | 18 |
| disk storage; external ports or
drives; computer cases; | 19 |
| computer cables; computer printers; and printer
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| cartridges, toner, and ink. | 21 |
| (b) Administration. Notwithstanding any other provision of | 22 |
| this Act, the reduced rate of
tax under Section 3-10 of this | 23 |
| Act for clothing and school supplies shall be
administered by | 24 |
| the Department under the provisions of this subsection (b). | 25 |
| (1) Bundled sales. Items that qualify for the reduced | 26 |
| rate of tax that are bundled
together with items that do |
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| not qualify for the reduced rate of tax and that are sold
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| for one itemized price will be subject to the reduced rate | 3 |
| of tax only if the value of
the items that qualify for the | 4 |
| reduced rate of tax exceeds the value of the items
that do | 5 |
| not qualify for the reduced rate of tax. | 6 |
| (2) Coupons and discounts. An unreimbursed discount by | 7 |
| the seller reduces the
sales price of the property so that | 8 |
| the discounted sales price determines whether
the sales | 9 |
| price is within a sales tax holiday price threshold. A | 10 |
| coupon or other
reduction in the sales price is treated as | 11 |
| a discount if the seller is not reimbursed
for the coupon | 12 |
| or reduction amount by a third-party. | 13 |
| (3) Splitting of items normally sold together. | 14 |
| Articles that are normally sold as a
single unit must | 15 |
| continue to be sold in that manner. Such articles cannot be | 16 |
| priced
separately and sold as individual items in order to | 17 |
| obtain the reduced rate of tax.
For example, a pair of | 18 |
| shoes cannot have each shoe sold separately so that the
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| sales price of each shoe is within a sales tax holiday | 20 |
| price threshold. | 21 |
| (4) Rain checks. A rain check is a procedure that | 22 |
| allows a customer to purchase an
item at a certain price at | 23 |
| a later time because the particular item was out of stock.
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| Eligible property that customers purchase during the Sales | 25 |
| Tax Holiday Period
with the use of a rain check will | 26 |
| qualify for the reduced rate of tax regardless of
when the |
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| rain check was issued. Issuance of a rain check during the | 2 |
| Sales Tax
Holiday Period will not qualify eligible property | 3 |
| for the reduced rate of tax if the
property is actually | 4 |
| purchased after the Sales Tax Holiday Period. | 5 |
| (5) Exchanges. The procedure for an exchange in regards | 6 |
| to a sales tax holiday is
as follows: | 7 |
| (A) If a customer purchases an item of eligible | 8 |
| property during the Sales Tax
Holiday Period, but later | 9 |
| exchanges the item for a similar eligible item,
even if | 10 |
| a different size, different color, or other feature, no | 11 |
| additional tax is
due even if the exchange is made | 12 |
| after the Sales Tax Holiday Period. | 13 |
| (B) If a customer purchases an item of eligible | 14 |
| property during the Sales Tax
Holiday Period, but after | 15 |
| the Sales Tax Holiday Period has ended, the
customer | 16 |
| returns the item and receives credit on the purchase of | 17 |
| a different
item, the 6.25% general merchandise sales | 18 |
| tax rate is due on the sale of the
newly purchased | 19 |
| item. | 20 |
| (C) If a customer purchases an item of eligible | 21 |
| property before the Sales Tax
Holiday Period, but | 22 |
| during the Sales Tax Holiday Period the customer
| 23 |
| returns the item and receives credit on the purchase of | 24 |
| a different item of
eligible property, the reduced rate | 25 |
| of tax is due on the sale of the new item
if the new | 26 |
| item is purchased during the Sales Tax Holiday Period. |
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| (6) Delivery charges. Delivery charges, including | 2 |
| shipping, handling and service
charges, are part of the | 3 |
| sales price of eligible property. | 4 |
| (7) Order date and back orders. For the purpose of a | 5 |
| sales tax holiday, eligible
property qualifies for the | 6 |
| reduced rate of tax if: (i) the item is both delivered to | 7 |
| and paid for by the customer during the Sales
Tax Holiday | 8 |
| Period or (ii) the customer orders and pays for the item | 9 |
| and the seller accepts the order
during the Sales Tax | 10 |
| Holiday Period for immediate shipment, even if
delivery is | 11 |
| made after the Sales Tax Holiday Period. The seller accepts
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| an order when the seller has taken action to fill the order | 13 |
| for immediate
shipment. Actions to fill an order include | 14 |
| placement of an "in date" stamp
on an order or assignment | 15 |
| of an "order number" to an order within the
Sales Tax | 16 |
| Holiday Period. An order is for immediate shipment when the
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| customer does not request delayed shipment. An order is for | 18 |
| immediate
shipment notwithstanding that the shipment may | 19 |
| be delayed because of a
backlog of orders or because stock | 20 |
| is currently unavailable to, or on back
order by, the | 21 |
| seller. | 22 |
| (8) Returns. For a 60-day period immediately after the | 23 |
| Sales Tax Holiday Period,
if a customer returns an item | 24 |
| that would qualify for the reduced rate of tax,
credit for | 25 |
| or refund of sales tax shall be given only at the reduced | 26 |
| rate unless the
customer provides a receipt or invoice that |
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| shows tax was paid at the 6.25%
general merchandise rate, | 2 |
| or the seller has sufficient documentation to show that
tax | 3 |
| was paid at the 6.25% general merchandise rate on the | 4 |
| specific item. This 60-day period is set solely for the | 5 |
| purpose of designating a time period during which
the | 6 |
| customer must provide documentation that shows that the | 7 |
| appropriate sales
tax rate was paid on returned | 8 |
| merchandise. The 60-day period is not intended to
change a | 9 |
| seller's policy on the time period during which the seller | 10 |
| will accept
returns. | 11 |
| (c) The Department may implement the provisions of this | 12 |
| Section through the use of
emergency rules, along with | 13 |
| permanent rules filed concurrently with such
emergency rules, | 14 |
| in accordance with the provisions of Section 5-45 of the | 15 |
| Illinois
Administrative Procedure Act. For purposes of the | 16 |
| Illinois Administrative
Procedure Act, the adoption of rules to | 17 |
| implement the provisions of this Section shall
be deemed an | 18 |
| emergency and necessary for the public interest, safety, and | 19 |
| welfare.
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| (35 ILCS 105/3-10)
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| 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 |
| either the selling price or the
fair market value, if any, of | 24 |
| the tangible personal property. In all cases
where property | 25 |
| functionally used or consumed is the same as the property that
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| was purchased at retail, then the tax is imposed on the selling | 2 |
| price of the
property. In all cases where property functionally | 3 |
| used or consumed is a
by-product or waste product that has been | 4 |
| refined, manufactured, or produced
from property purchased at | 5 |
| retail, then the tax is imposed on the lower of the
fair market | 6 |
| value, if any, of the specific property so used in this State | 7 |
| or on
the selling price of the property purchased at retail. | 8 |
| For purposes of this
Section "fair market value" means the | 9 |
| price at which property would change
hands between a willing | 10 |
| buyer and a willing seller, neither being under any
compulsion | 11 |
| to buy or sell and both having reasonable knowledge of the
| 12 |
| relevant facts. The fair market value shall be established by | 13 |
| Illinois sales by
the taxpayer of the same property as that | 14 |
| functionally used or consumed, or if
there are no such sales by | 15 |
| the taxpayer, then comparable sales or purchases of
property of | 16 |
| like kind and character in Illinois.
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| Beginning on July 1, 2000 and through December 31, 2000, | 18 |
| with respect to
motor fuel, as defined in Section 1.1 of the | 19 |
| Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 20 |
| the Use Tax Act, the tax is
imposed at the rate of 1.25%.
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| Beginning on August 6, 2010 through August 15, 2010, and | 22 |
| each year
thereafter beginning on the first Friday in August | 23 |
| and ending on the Sunday occurring 9 days
thereafter, with | 24 |
| respect to sales tax holiday items as defined in Section 3-6 of | 25 |
| this Act, the
tax is imposed at the rate of 1.25%. The reduced | 26 |
| rate of tax for sales tax holiday items as
defined in Section |
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| 3-6 of this Act shall not be authorized for periods after | 2 |
| August 16,
2013. | 3 |
| With respect to gasohol, the tax imposed by this Act | 4 |
| applies to (i) 70%
of the proceeds of sales made on or after | 5 |
| January 1, 1990, and before
July 1, 2003, (ii) 80% of the | 6 |
| proceeds of sales made
on or after July 1, 2003 and on or | 7 |
| before December 31, 2013, and (iii) 100% of the proceeds of | 8 |
| sales made
thereafter.
If, at any time, however, the tax under | 9 |
| this Act on sales of gasohol is
imposed at the
rate of 1.25%, | 10 |
| then the tax imposed by this Act applies to 100% of the | 11 |
| proceeds
of sales of gasohol made during that time.
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| With respect to majority blended ethanol fuel, the tax | 13 |
| imposed by this Act
does
not apply
to the proceeds of sales | 14 |
| made on or after July 1, 2003 and on or before
December
31, | 15 |
| 2013 but applies to 100% of the proceeds of sales made | 16 |
| thereafter.
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| With respect to biodiesel blends with no less than 1% and | 18 |
| no more than 10%
biodiesel, the tax imposed by this Act applies | 19 |
| to (i) 80% of the
proceeds of sales made on or after July 1, | 20 |
| 2003 and on or before December 31,
2013 and (ii) 100% of the | 21 |
| proceeds of sales made
thereafter.
If, at any time, however, | 22 |
| the tax under this Act on sales of biodiesel blends
with no | 23 |
| less than 1% and no more than 10% biodiesel
is imposed at the | 24 |
| rate of
1.25%, then the
tax imposed by this Act applies to 100% | 25 |
| of the proceeds of sales of biodiesel
blends with no less than | 26 |
| 1% and no more than 10% biodiesel
made
during that time.
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| With respect to 100% biodiesel and biodiesel blends with | 2 |
| more than 10%
but no more than 99% biodiesel, the tax imposed | 3 |
| by this Act does not apply to
the
proceeds of sales made on or | 4 |
| after July 1, 2003 and on or before
December 31, 2013 but | 5 |
| applies to 100% of the proceeds of sales made
thereafter.
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| With respect to food for human consumption that is to be | 7 |
| consumed off the
premises where it is sold (other than | 8 |
| alcoholic beverages, soft drinks, and
food that has been | 9 |
| prepared for immediate consumption) and prescription and
| 10 |
| nonprescription medicines, drugs, medical appliances, | 11 |
| modifications to a motor
vehicle for the purpose of rendering | 12 |
| it usable by a disabled person, and
insulin, urine testing | 13 |
| materials, syringes, and needles used by diabetics, for
human | 14 |
| use, the tax is imposed at the rate of 1%. For the purposes of | 15 |
| this
Section, until September 1, 2009: the term "soft drinks" | 16 |
| means any complete, finished, ready-to-use,
non-alcoholic | 17 |
| drink, whether carbonated or not, including but not limited to
| 18 |
| soda water, cola, fruit juice, vegetable juice, carbonated | 19 |
| water, and all other
preparations commonly known as soft drinks | 20 |
| of whatever kind or description that
are contained in any | 21 |
| closed or sealed bottle, can, carton, or container,
regardless | 22 |
| of size; but "soft drinks" does not include coffee, tea, | 23 |
| non-carbonated
water, infant formula, milk or milk products as | 24 |
| defined in the Grade A
Pasteurized Milk and Milk Products Act, | 25 |
| or drinks containing 50% or more
natural fruit or vegetable | 26 |
| juice.
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| Notwithstanding any other provisions of this
Act, | 2 |
| beginning September 1, 2009, "soft drinks" means non-alcoholic | 3 |
| beverages that contain natural or artificial sweeteners. "Soft | 4 |
| drinks" do not include beverages that contain milk or milk | 5 |
| products, soy, rice or similar milk substitutes, or greater | 6 |
| than 50% of vegetable or fruit juice by volume. | 7 |
| Until August 1, 2009, and notwithstanding any other | 8 |
| provisions of this
Act, "food for human consumption that is to | 9 |
| be consumed off the premises where
it is sold" includes all | 10 |
| food sold through a vending machine, except soft
drinks , and | 11 |
| food products that are dispensed hot from a vending machine,
| 12 |
| regardless of the location of the vending machine. Beginning | 13 |
| August 1, 2009, and notwithstanding any other provisions of | 14 |
| this Act, "food for human consumption that is to be consumed | 15 |
| off the premises where it is sold" includes all food sold | 16 |
| through a vending machine, except soft drinks, candy, and food | 17 |
| products that are dispensed hot from a vending machine, | 18 |
| regardless of the location of the vending machine.
| 19 |
| Notwithstanding any other provisions of this
Act, | 20 |
| beginning September 1, 2009, "food for human consumption that | 21 |
| is to be consumed off the premises where
it is sold" does not | 22 |
| include candy. For purposes of this Section, "candy" means a | 23 |
| preparation of sugar, honey, or other natural or artificial | 24 |
| sweeteners in combination with chocolate, fruits, nuts or other | 25 |
| ingredients or flavorings in the form of bars, drops, or | 26 |
| pieces. "Candy" does not include any preparation that contains |
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| flour or requires refrigeration. | 2 |
| Notwithstanding any other provisions of this
Act, | 3 |
| beginning September 1, 2009, "nonprescription medicines and | 4 |
| drugs" does not include grooming and hygiene products. For | 5 |
| purposes of this Section, "grooming and hygiene products" | 6 |
| includes, but is not limited to, soaps and cleaning solutions, | 7 |
| shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 8 |
| lotions and screens, unless those products are available by | 9 |
| prescription only, regardless of whether the products meet the | 10 |
| definition of "over-the-counter-drugs". For the purposes of | 11 |
| this paragraph, "over-the-counter-drug" means a drug for human | 12 |
| use that contains a label that identifies the product as a drug | 13 |
| as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 14 |
| label includes: | 15 |
| (A) A "Drug Facts" panel; or | 16 |
| (B) A statement of the "active ingredient(s)" with a | 17 |
| list of those ingredients contained in the compound, | 18 |
| substance or preparation. | 19 |
| If the property that is purchased at retail from a retailer | 20 |
| is acquired
outside Illinois and used outside Illinois before | 21 |
| being brought to Illinois
for use here and is taxable under | 22 |
| this Act, the "selling price" on which
the tax is computed | 23 |
| shall be reduced by an amount that represents a
reasonable | 24 |
| allowance for depreciation for the period of prior out-of-state | 25 |
| use.
| 26 |
| (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, |
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| eff. 7-13-09; revised 8-20-09.)
| 2 |
| Section 10. The Retailers' Occupation Tax Act is amended by | 3 |
| changing Section 2-10 and by adding Section 2-8 as follows: | 4 |
| (35 ILCS 120/2-8 new) | 5 |
| Sec. 2-8. Sales tax holiday items. | 6 |
| (a) The tangible personal property described in this | 7 |
| subsection qualifies for the
1.25% reduced rate of tax for the | 8 |
| period set forth in Section 2-10 of this Act (hereinafter
| 9 |
| referred to as the Sales Tax Holiday Period). The reduced rate | 10 |
| on these items shall be
administered under the provisions of | 11 |
| subsection (b) of this Section. The following items are subject | 12 |
| to the
reduced rate: | 13 |
| (1) Clothing items that each have a retail selling | 14 |
| price of less than $100. | 15 |
| "Clothing" means, unless otherwise specified in this | 16 |
| Section, all human wearing
apparel suitable for general | 17 |
| use. "Clothing" does not include clothing
accessories, | 18 |
| protective equipment, or sport or recreational equipment.
| 19 |
| "Clothing" includes, but is not limited to: household and | 20 |
| shop aprons; athletic
supporters; bathing suits and caps; | 21 |
| belts and suspenders; boots; coats and
jackets; ear muffs; | 22 |
| footlets; gloves and mittens for general use; hats and | 23 |
| caps;
hosiery; insoles for shoes; lab coats; neckties; | 24 |
| overshoes; pantyhose;
rainwear; rubber pants; sandals; |
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| scarves; shoes and shoelaces; slippers;
sneakers; socks | 2 |
| and stockings; steel-toed shoes; underwear; and school
| 3 |
| uniforms. | 4 |
| "Clothing accessories" means, but is not limited to: | 5 |
| briefcases; cosmetics; hair
notions, including, but not | 6 |
| limited to barrettes, hair bows, and hair nets;
handbags; | 7 |
| handkerchiefs; jewelry; non-prescription sunglasses; | 8 |
| umbrellas;
wallets; watches; and wigs and hair pieces. | 9 |
| "Protective equipment" means, but is not limited to: | 10 |
| breathing masks; clean
room apparel and equipment; ear and | 11 |
| hearing protectors; face shields; hard
hats; helmets; | 12 |
| paint or dust respirators; protective gloves; safety | 13 |
| glasses and
goggles; safety belts; tool belts; and welder's | 14 |
| gloves and masks. | 15 |
| "Sport or recreational equipment" means, but is not | 16 |
| limited to: ballet and tap
shoes; cleated or spiked | 17 |
| athletic shoes; gloves, including, but not limited to,
| 18 |
| baseball, bowling, boxing, hockey, and golf gloves; | 19 |
| goggles; hand and elbow guards;
life preservers and vests; | 20 |
| mouth guards; roller and ice skates; shin guards;
shoulder | 21 |
| pads; ski boots; waders; and wetsuits and fins. | 22 |
| (2) School supplies. "School supplies" means, unless | 23 |
| otherwise specified in this
Section, items used by a | 24 |
| student in a course of study. The purchase of school
| 25 |
| supplies for use by persons other than students for use in | 26 |
| a course of study are not
eligible for the reduced rate of |
|
|
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LRB096 20358 HLH 41151 a |
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| tax. "School supplies" do not include school art
supplies; | 2 |
| school instructional materials; cameras; film and memory | 3 |
| cards;
videocameras, tapes, and videotapes; computers; | 4 |
| cell phones; Personal Digital
Assistants (PDAs); handheld | 5 |
| electronic schedulers; and school computer
supplies. | 6 |
| "School supplies" includes, but is not limited to: | 7 |
| binders; book bags;
calculators; cellophane tape; | 8 |
| blackboard chalk; compasses; composition books;
crayons; | 9 |
| erasers; expandable, pocket, plastic, and manila folders; | 10 |
| glue, paste,
and paste sticks; highlighters; index cards; | 11 |
| index card boxes; legal pads; lunch
boxes; markers; | 12 |
| notebooks; paper, including loose leaf ruled notebook | 13 |
| paper, copy paper,
graph paper, tracing paper, manila | 14 |
| paper, colored paper, poster board, and
construction | 15 |
| paper; pencils; pencil leads; pens; ink and ink refills for | 16 |
| pens; pencil
boxes and other school supply boxes; pencil | 17 |
| sharpeners; protractors; rulers;
scissors; and | 18 |
| writing-tablets. | 19 |
| "School art supply" means an item commonly used by a | 20 |
| student in a course of
study for artwork and includes only | 21 |
| the following items: clay and glazes; acrylic, tempera, and | 22 |
| oil paint; paintbrushes for artwork; sketch and drawing | 23 |
| pads; and
watercolors. | 24 |
| "School instructional material" means written material | 25 |
| commonly used by a
student in a course of study as a | 26 |
| reference and to learn the subject being taught
and |
|
|
|
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| includes only the following items: reference books; | 2 |
| reference maps and
globes; textbooks; and workbooks. | 3 |
| "School computer supply" means an item commonly used by | 4 |
| a student in a course
of study in which a computer is used | 5 |
| and applies only to the following items:
flashdrives and | 6 |
| other computer data storage devices; data storage media, | 7 |
| such as
diskettes and compact disks; boxes and cases for | 8 |
| disk storage; external ports or
drives; computer cases; | 9 |
| computer cables; computer printers; and printer
| 10 |
| cartridges, toner, and ink. | 11 |
| (b) Administration. Notwithstanding any other provision of | 12 |
| this Act, the reduced rate of
tax under Section 3-10 of this | 13 |
| Act for clothing and school supplies shall be
administered by | 14 |
| the Department under the provisions of this subsection (b). | 15 |
| (1) Bundled sales. Items that qualify for the reduced | 16 |
| rate of tax that are bundled
together with items that do | 17 |
| not qualify for the reduced rate of tax and that are sold
| 18 |
| for one itemized price will be subject to the reduced rate | 19 |
| of tax only if the value of
the items that qualify for the | 20 |
| reduced rate of tax exceeds the value of the items
that do | 21 |
| not qualify for the reduced rate of tax. | 22 |
| (2) Coupons and discounts. An unreimbursed discount by | 23 |
| the seller reduces the
sales price of the property so that | 24 |
| the discounted sales price determines whether
the sales | 25 |
| price is within a sales tax holiday price threshold. A | 26 |
| coupon or other
reduction in the sales price is treated as |
|
|
|
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| 1 |
| a discount if the seller is not reimbursed
for the coupon | 2 |
| or reduction amount by a third-party. | 3 |
| (3) Splitting of items normally sold together. | 4 |
| Articles that are normally sold as a
single unit must | 5 |
| continue to be sold in that manner. Such articles cannot be | 6 |
| priced
separately and sold as individual items in order to | 7 |
| obtain the reduced rate of tax.
For example, a pair of | 8 |
| shoes cannot have each shoe sold separately so that the
| 9 |
| sales price of each shoe is within a sales tax holiday | 10 |
| price threshold. | 11 |
| (4) Rain checks. A rain check is a procedure that | 12 |
| allows a customer to purchase an
item at a certain price at | 13 |
| a later time because the particular item was out of stock.
| 14 |
| Eligible property that customers purchase during the Sales | 15 |
| Tax Holiday Period
with the use of a rain check will | 16 |
| qualify for the reduced rate of tax regardless of
when the | 17 |
| rain check was issued. Issuance of a rain check during the | 18 |
| Sales Tax
Holiday Period will not qualify eligible property | 19 |
| for the reduced rate of tax if the
property is actually | 20 |
| purchased after the Sales Tax Holiday Period. | 21 |
| (5) Exchanges. The procedure for an exchange in regards | 22 |
| to a sales tax holiday is
as follows: | 23 |
| (A) If a customer purchases an item of eligible | 24 |
| property during the Sales Tax
Holiday Period, but later | 25 |
| exchanges the item for a similar eligible item,
even if | 26 |
| a different size, different color, or other feature, no |
|
|
|
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| additional tax is
due even if the exchange is made | 2 |
| after the Sales Tax Holiday Period. | 3 |
| (B) If a customer purchases an item of eligible | 4 |
| property during the Sales Tax
Holiday Period, but after | 5 |
| the Sales Tax Holiday Period has ended, the
customer | 6 |
| returns the item and receives credit on the purchase of | 7 |
| a different
item, the 6.25% general merchandise sales | 8 |
| tax rate is due on the sale of the
newly purchased | 9 |
| item. | 10 |
| (C) If a customer purchases an item of eligible | 11 |
| property before the Sales Tax
Holiday Period, but | 12 |
| during the Sales Tax Holiday Period the customer
| 13 |
| returns the item and receives credit on the purchase of | 14 |
| a different item of
eligible property, the reduced rate | 15 |
| of tax is due on the sale of the new item
if the new | 16 |
| item is purchased during the Sales Tax Holiday Period. | 17 |
| (6) Delivery charges. Delivery charges, including | 18 |
| shipping, handling and service
charges, are part of the | 19 |
| sales price of eligible property. | 20 |
| (7) Order date and back orders. For the purpose of a | 21 |
| sales tax holiday, eligible
property qualifies for the | 22 |
| reduced rate of tax if: (i) the item is both delivered to | 23 |
| and paid for by the customer during the Sales
Tax Holiday | 24 |
| Period or (ii) the customer orders and pays for the item | 25 |
| and the seller accepts the order
during the Sales Tax | 26 |
| Holiday Period for immediate shipment, even if
delivery is |
|
|
|
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| made after the Sales Tax Holiday Period. The seller accepts
| 2 |
| an order when the seller has taken action to fill the order | 3 |
| for immediate
shipment. Actions to fill an order include | 4 |
| placement of an "in date" stamp
on an order or assignment | 5 |
| of an "order number" to an order within the
Sales Tax | 6 |
| Holiday Period. An order is for immediate shipment when the
| 7 |
| customer does not request delayed shipment. An order is for | 8 |
| immediate
shipment notwithstanding that the shipment may | 9 |
| be delayed because of a
backlog of orders or because stock | 10 |
| is currently unavailable to, or on back
order by, the | 11 |
| seller. | 12 |
| (8) Returns. For a 60-day period immediately after the | 13 |
| Sales Tax Holiday Period,
if a customer returns an item | 14 |
| that would qualify for the reduced rate of tax,
credit for | 15 |
| or refund of sales tax shall be given only at the reduced | 16 |
| rate unless the
customer provides a receipt or invoice that | 17 |
| shows tax was paid at the 6.25%
general merchandise rate, | 18 |
| or the seller has sufficient documentation to show that
tax | 19 |
| was paid at the 6.25% general merchandise rate on the | 20 |
| specific item. This 60-day period is set solely for the | 21 |
| purpose of designating a time period during which
the | 22 |
| customer must provide documentation that shows that the | 23 |
| appropriate sales
tax rate was paid on returned | 24 |
| merchandise. The 60-day period is not intended to
change a | 25 |
| seller's policy on the time period during which the seller | 26 |
| will accept
returns. |
|
|
|
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| 1 |
| (c) The Department may implement the provisions of this | 2 |
| Section through the use of
emergency rules, along with | 3 |
| permanent rules filed concurrently with such
emergency rules, | 4 |
| in accordance with the provisions of Section 5-45 of the | 5 |
| Illinois
Administrative Procedure Act. For purposes of the | 6 |
| Illinois Administrative
Procedure Act, the adoption of rules to | 7 |
| implement the provisions of this Section shall
be deemed an | 8 |
| emergency and necessary for the public interest, safety, and | 9 |
| welfare.
| 10 |
| (35 ILCS 120/2-10)
| 11 |
| Sec. 2-10. Rate of tax. Unless otherwise provided in this | 12 |
| Section,
the tax imposed by this Act is at the rate of 6.25% of | 13 |
| gross receipts
from sales of tangible personal property made in | 14 |
| the course of business.
| 15 |
| Beginning on July 1, 2000 and through December 31, 2000, | 16 |
| with respect to
motor fuel, as defined in Section 1.1 of the | 17 |
| Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 18 |
| the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| 19 |
| Beginning on August 6, 2010 through August 15, 2010, and | 20 |
| each year
thereafter beginning on the first Friday in August | 21 |
| and ending on the Sunday occurring 9 days
thereafter, with | 22 |
| respect to sales tax holiday items as defined in Section 2-8 of | 23 |
| this Act, the
tax is imposed at the rate of 1.25%. The reduced | 24 |
| rate of tax for sales tax holiday items as
defined in Section | 25 |
| 2-8 of this Act shall not be authorized for periods after |
|
|
|
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| 1 |
| August 16,
2013. | 2 |
| Within 14 days after the effective date of this amendatory | 3 |
| Act of the 91st
General Assembly, each retailer of motor fuel | 4 |
| and gasohol shall cause the
following notice to be posted in a | 5 |
| prominently visible place on each retail
dispensing device that | 6 |
| is used to dispense motor
fuel or gasohol in the State of | 7 |
| Illinois: "As of July 1, 2000, the State of
Illinois has | 8 |
| eliminated the State's share of sales tax on motor fuel and
| 9 |
| gasohol through December 31, 2000. The price on this pump | 10 |
| should reflect the
elimination of the tax." The notice shall be | 11 |
| printed in bold print on a sign
that is no smaller than 4 | 12 |
| inches by 8 inches. The sign shall be clearly
visible to | 13 |
| customers. Any retailer who fails to post or maintain a | 14 |
| required
sign through December 31, 2000 is guilty of a petty | 15 |
| offense for which the fine
shall be $500 per day per each | 16 |
| retail premises where a violation occurs.
| 17 |
| With respect to gasohol, as defined in the Use Tax Act, the | 18 |
| tax imposed
by this Act applies to (i) 70% of the proceeds of | 19 |
| sales made on or after
January 1, 1990, and before July 1, | 20 |
| 2003, (ii) 80% of the proceeds of
sales made on or after July | 21 |
| 1, 2003 and on or before December 31,
2013, and (iii) 100% of | 22 |
| the proceeds of sales
made thereafter.
If, at any time, | 23 |
| however, the tax under this Act on sales of gasohol, as
defined | 24 |
| in
the Use Tax Act, is imposed at the rate of 1.25%, then the
| 25 |
| tax imposed by this Act applies to 100% of the proceeds of | 26 |
| sales of gasohol
made during that time.
|
|
|
|
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| 1 |
| With respect to majority blended ethanol fuel, as defined | 2 |
| in the Use Tax Act,
the
tax
imposed by this Act does not apply | 3 |
| to the proceeds of sales made on or after
July 1, 2003 and on or | 4 |
| before December 31, 2013 but applies to 100% of the
proceeds of | 5 |
| sales made thereafter.
| 6 |
| With respect to biodiesel blends, as defined in the Use Tax | 7 |
| Act, with no less
than 1% and no
more than 10% biodiesel, the | 8 |
| tax imposed by this Act
applies to (i) 80% of the proceeds of | 9 |
| sales made on or after July 1, 2003
and on or before December | 10 |
| 31, 2013 and (ii) 100% of the
proceeds of sales made | 11 |
| thereafter.
If, at any time, however, the tax under this Act on | 12 |
| sales of biodiesel blends,
as
defined in the Use Tax Act, with | 13 |
| no less than 1% and no more than 10% biodiesel
is imposed at | 14 |
| the rate of 1.25%, then the
tax imposed by this Act applies to | 15 |
| 100% of the proceeds of sales of biodiesel
blends with no less | 16 |
| than 1% and no more than 10% biodiesel
made
during that time.
| 17 |
| With respect to 100% biodiesel, as defined in the Use Tax | 18 |
| Act, and biodiesel
blends, as defined in the Use Tax Act, with
| 19 |
| more than 10% but no more than 99% biodiesel, the tax imposed | 20 |
| by this Act
does not apply to the proceeds of sales made on or | 21 |
| after July 1, 2003
and on or before December 31, 2013 but | 22 |
| applies to 100% of the
proceeds of sales made thereafter.
| 23 |
| With respect to food for human consumption that is to be | 24 |
| consumed off the
premises where it is sold (other than | 25 |
| alcoholic beverages, soft drinks, and
food that has been | 26 |
| prepared for immediate consumption) and prescription and
|
|
|
|
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| 1 |
| nonprescription medicines, drugs, medical appliances, | 2 |
| modifications to a motor
vehicle for the purpose of rendering | 3 |
| it usable by a disabled person, and
insulin, urine testing | 4 |
| materials, syringes, and needles used by diabetics, for
human | 5 |
| use, the tax is imposed at the rate of 1%. For the purposes of | 6 |
| this
Section, until September 1, 2009: the term "soft drinks" | 7 |
| means any complete, finished, ready-to-use,
non-alcoholic | 8 |
| drink, whether carbonated or not, including but not limited to
| 9 |
| soda water, cola, fruit juice, vegetable juice, carbonated | 10 |
| water, and all other
preparations commonly known as soft drinks | 11 |
| of whatever kind or description that
are contained in any | 12 |
| closed or sealed bottle, can, carton, or container,
regardless | 13 |
| of size; but "soft drinks" does not include coffee, tea, | 14 |
| non-carbonated
water, infant formula, milk or milk products as | 15 |
| defined in the Grade A
Pasteurized Milk and Milk Products Act, | 16 |
| or drinks containing 50% or more
natural fruit or vegetable | 17 |
| juice.
| 18 |
| Notwithstanding any other provisions of this
Act, | 19 |
| beginning September 1, 2009, "soft drinks" means non-alcoholic | 20 |
| beverages that contain natural or artificial sweeteners. "Soft | 21 |
| drinks" do not include beverages that contain milk or milk | 22 |
| products, soy, rice or similar milk substitutes, or greater | 23 |
| than 50% of vegetable or fruit juice by volume. | 24 |
| Until August 1, 2009, and notwithstanding any other | 25 |
| provisions of this
Act, "food for human consumption that is to | 26 |
| be consumed off the premises where
it is sold" includes all |
|
|
|
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|
| 1 |
| food sold through a vending machine, except soft
drinks , and | 2 |
| food products that are dispensed hot from a vending machine,
| 3 |
| regardless of the location of the vending machine. Beginning | 4 |
| August 1, 2009, and notwithstanding any other provisions of | 5 |
| this Act, "food for human consumption that is to be consumed | 6 |
| off the premises where it is sold" includes all food sold | 7 |
| through a vending machine, except soft drinks, candy, and food | 8 |
| products that are dispensed hot from a vending machine, | 9 |
| regardless of the location of the vending machine.
| 10 |
| Notwithstanding any other provisions of this
Act, | 11 |
| beginning September 1, 2009, "food for human consumption that | 12 |
| is to be consumed off the premises where
it is sold" does not | 13 |
| include candy. For purposes of this Section, "candy" means a | 14 |
| preparation of sugar, honey, or other natural or artificial | 15 |
| sweeteners in combination with chocolate, fruits, nuts or other | 16 |
| ingredients or flavorings in the form of bars, drops, or | 17 |
| pieces. "Candy" does not include any preparation that contains | 18 |
| flour or requires refrigeration. | 19 |
| Notwithstanding any other provisions of this
Act, | 20 |
| beginning September 1, 2009, "nonprescription medicines and | 21 |
| drugs" does not include grooming and hygiene products. For | 22 |
| purposes of this Section, "grooming and hygiene products" | 23 |
| includes, but is not limited to, soaps and cleaning solutions, | 24 |
| shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 25 |
| lotions and screens, unless those products are available by | 26 |
| prescription only, regardless of whether the products meet the |
|
|
|
09600SB3658ham001 |
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LRB096 20358 HLH 41151 a |
|
| 1 |
| definition of "over-the-counter-drugs". For the purposes of | 2 |
| this paragraph, "over-the-counter-drug" means a drug for human | 3 |
| use that contains a label that identifies the product as a drug | 4 |
| as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 5 |
| label includes: | 6 |
| (A) A "Drug Facts" panel; or | 7 |
| (B) A statement of the "active ingredient(s)" with a | 8 |
| list of those ingredients contained in the compound, | 9 |
| substance or preparation.
| 10 |
| (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | 11 |
| eff. 7-13-09; revised 8-20-09.)
| 12 |
| Section 99. Effective date. This Act takes effect upon | 13 |
| becoming law.".
|
|