Full Text of HB5631 97th General Assembly
HB5631 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB5631 Introduced 2/15/2012, by Rep. Frank J. Mautino SYNOPSIS AS INTRODUCED: |
| 20 ILCS 2505/2505-250 | was 20 ILCS 2505/39c | 35 ILCS 105/3-10 | | 35 ILCS 105/3-61 | | 35 ILCS 110/3-10 | from Ch. 120, par. 439.33-10 | 35 ILCS 110/3-51 | | 35 ILCS 115/2d | | 35 ILCS 115/3-10 | from Ch. 120, par. 439.103-10 | 35 ILCS 120/2-10 | | 35 ILCS 120/2-51 | | 35 ILCS 120/5 | from Ch. 120, par. 444 | 35 ILCS 130/18c | | 415 ILCS 5/55.8 | from Ch. 111 1/2, par. 1055.8 |
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Amends the Department of Revenue Law of the
Civil Administrative Code of Illinois. Makes a technical correction concerning a cross-reference. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Makes a technical correction concerning an effective date for a change in the definition of "food for human consumption that is to be consumed off the premises where
it is sold. Provides that, in the case of a return that is not filed at the required time, a notice of tax liability may be issued on and after each July 1, and January 1 for returns filed more than 3 years prior to that July 1 or January 1. Amends the Cigarette Tax Act. Provides that the penalty for possession of less than 10 and not more than 100 original packages of contraband cigarettes is $20 (instead of $10) per package. Effective July 1, 2012.
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Department of Revenue Law of the
Civil | 5 | | Administrative Code of Illinois is amended by changing Section | 6 | | 2505-250 as follows:
| 7 | | (20 ILCS 2505/2505-250) (was 20 ILCS 2505/39c)
| 8 | | Sec. 2505-250. Compromising debts due to the State. Under | 9 | | no
circumstances shall any officer or employee of the
| 10 | | Department compromise any debt due to this State, except in | 11 | | case
of actions of the Director after review by the board of | 12 | | appeals provided
for by Section 2505-505 95-505 .
However, | 13 | | claims or accounts receivable of less than $1,000 may be | 14 | | written off
the
Department's records and cancelled by the | 15 | | Department without complying with
the provisions of Section 2 | 16 | | of the Uncollected State Claims Act when the
Department | 17 | | determines that
the cost of collecting the claim or account | 18 | | would exceed the
amount to be collected.
The Department shall | 19 | | submit to the Comptroller a list of all such claims
or accounts | 20 | | written off the Department's records.
| 21 | | (Source: P.A. 91-239, eff. 1-1-00.)
| 22 | | Section 10. The Use Tax Act is amended by changing Sections |
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| 1 | | 3-10 and 3-61 as follows:
| 2 | | (35 ILCS 105/3-10)
| 3 | | (Text of Section before amendment by P.A. 97-636 ) | 4 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this | 5 | | Section, the tax
imposed by this Act is at the rate of 6.25% of | 6 | | either the selling price or the
fair market value, if any, of | 7 | | the tangible personal property. In all cases
where property | 8 | | functionally used or consumed is the same as the property that
| 9 | | was purchased at retail, then the tax is imposed on the selling | 10 | | price of the
property. In all cases where property functionally | 11 | | used or consumed is a
by-product or waste product that has been | 12 | | refined, manufactured, or produced
from property purchased at | 13 | | retail, then the tax is imposed on the lower of the
fair market | 14 | | value, if any, of the specific property so used in this State | 15 | | or on
the selling price of the property purchased at retail. | 16 | | For purposes of this
Section "fair market value" means the | 17 | | price at which property would change
hands between a willing | 18 | | buyer and a willing seller, neither being under any
compulsion | 19 | | to buy or sell and both having reasonable knowledge of the
| 20 | | relevant facts. The fair market value shall be established by | 21 | | Illinois sales by
the taxpayer of the same property as that | 22 | | functionally used or consumed, or if
there are no such sales by | 23 | | the taxpayer, then comparable sales or purchases of
property of | 24 | | like kind and character in Illinois.
| 25 | | Beginning on July 1, 2000 and through December 31, 2000, |
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| 1 | | with respect to
motor fuel, as defined in Section 1.1 of the | 2 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 3 | | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| 4 | | Beginning on August 6, 2010 through August 15, 2010, with | 5 | | respect to sales tax holiday items as defined in Section 3-6 of | 6 | | this Act, the
tax is 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 |
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| 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, until September 1, 2009: the term "soft drinks" | 20 | | means any complete, finished, ready-to-use,
non-alcoholic | 21 | | drink, whether carbonated or not, including but not limited to
| 22 | | soda water, cola, fruit juice, vegetable juice, carbonated | 23 | | water, and all other
preparations commonly known as soft drinks | 24 | | of whatever kind or description that
are contained in any | 25 | | closed or sealed bottle, can, carton, or container,
regardless | 26 | | of size; but "soft drinks" does not include coffee, tea, |
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| 1 | | non-carbonated
water, infant formula, milk or milk products as | 2 | | defined in the Grade A
Pasteurized Milk and Milk Products Act, | 3 | | or drinks containing 50% or more
natural fruit or vegetable | 4 | | juice.
| 5 | | Notwithstanding any other provisions of this
Act, | 6 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 7 | | beverages that contain natural or artificial sweeteners. "Soft | 8 | | drinks" do not include beverages that contain milk or milk | 9 | | products, soy, rice or similar milk substitutes, or greater | 10 | | than 50% of vegetable or fruit juice by volume. | 11 | | Until September August 1, 2009, and notwithstanding any | 12 | | other provisions of this
Act, "food for human consumption that | 13 | | is to be consumed off the premises where
it is sold" includes | 14 | | all food sold through a vending machine, except soft
drinks and | 15 | | food products that are dispensed hot from a vending machine,
| 16 | | regardless of the location of the vending machine. Beginning | 17 | | September August 1, 2009, and notwithstanding any other | 18 | | provisions of this Act, "food for human consumption that is to | 19 | | be consumed off the premises where it is sold" includes all | 20 | | food sold through a vending machine, except soft drinks, candy, | 21 | | and food products that are dispensed hot from a vending | 22 | | machine, regardless of the location of the vending machine.
| 23 | | Notwithstanding any other provisions of this
Act, | 24 | | beginning September 1, 2009, "food for human consumption that | 25 | | is to be consumed off the premises where
it is sold" does not | 26 | | include candy. For purposes of this Section, "candy" means a |
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| 1 | | preparation of sugar, honey, or other natural or artificial | 2 | | sweeteners in combination with chocolate, fruits, nuts or other | 3 | | ingredients or flavorings in the form of bars, drops, or | 4 | | pieces. "Candy" does not include any preparation that contains | 5 | | flour or requires refrigeration. | 6 | | Notwithstanding any other provisions of this
Act, | 7 | | beginning September 1, 2009, "nonprescription medicines and | 8 | | drugs" does not include grooming and hygiene products. For | 9 | | purposes of this Section, "grooming and hygiene products" | 10 | | includes, but is not limited to, soaps and cleaning solutions, | 11 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 12 | | lotions and screens, unless those products are available by | 13 | | prescription only, regardless of whether the products meet the | 14 | | definition of "over-the-counter-drugs". For the purposes of | 15 | | this paragraph, "over-the-counter-drug" means a drug for human | 16 | | use that contains a label that identifies the product as a drug | 17 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 18 | | label includes: | 19 | | (A) A "Drug Facts" panel; or | 20 | | (B) A statement of the "active ingredient(s)" with a | 21 | | list of those ingredients contained in the compound, | 22 | | substance or preparation. | 23 | | If the property that is purchased at retail from a retailer | 24 | | is acquired
outside Illinois and used outside Illinois before | 25 | | being brought to Illinois
for use here and is taxable under | 26 | | this Act, the "selling price" on which
the tax is computed |
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| 1 | | shall be reduced by an amount that represents a
reasonable | 2 | | allowance for depreciation for the period of prior out-of-state | 3 | | use.
| 4 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | 5 | | eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10.) | 6 | | (Text of Section after amendment by P.A. 97-636 ) | 7 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this | 8 | | Section, the tax
imposed by this Act is at the rate of 6.25% of | 9 | | either the selling price or the
fair market value, if any, of | 10 | | the tangible personal property. In all cases
where property | 11 | | functionally used or consumed is the same as the property that
| 12 | | was purchased at retail, then the tax is imposed on the selling | 13 | | price of the
property. In all cases where property functionally | 14 | | used or consumed is a
by-product or waste product that has been | 15 | | refined, manufactured, or produced
from property purchased at | 16 | | retail, then the tax is imposed on the lower of the
fair market | 17 | | value, if any, of the specific property so used in this State | 18 | | or on
the selling price of the property purchased at retail. | 19 | | For purposes of this
Section "fair market value" means the | 20 | | price at which property would change
hands between a willing | 21 | | buyer and a willing seller, neither being under any
compulsion | 22 | | to buy or sell and both having reasonable knowledge of the
| 23 | | relevant facts. The fair market value shall be established by | 24 | | Illinois sales by
the taxpayer of the same property as that | 25 | | functionally used or consumed, or if
there are no such sales by |
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| 1 | | the taxpayer, then comparable sales or purchases of
property of | 2 | | like kind and character in Illinois.
| 3 | | Beginning on July 1, 2000 and through December 31, 2000, | 4 | | with respect to
motor fuel, as defined in Section 1.1 of the | 5 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 6 | | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| 7 | | Beginning on August 6, 2010 through August 15, 2010, with | 8 | | respect to sales tax holiday items as defined in Section 3-6 of | 9 | | this Act, the
tax is imposed at the rate of 1.25%. | 10 | | With respect to gasohol, the tax imposed by this Act | 11 | | applies to (i) 70%
of the proceeds of sales made on or after | 12 | | January 1, 1990, and before
July 1, 2003, (ii) 80% of the | 13 | | proceeds of sales made
on or after July 1, 2003 and on or | 14 | | before December 31, 2018, and (iii) 100% of the proceeds of | 15 | | sales made
thereafter.
If, at any time, however, the tax under | 16 | | this Act on sales of gasohol is
imposed at the
rate of 1.25%, | 17 | | then the tax imposed by this Act applies to 100% of the | 18 | | proceeds
of sales of gasohol made during that time.
| 19 | | With respect to majority blended ethanol fuel, the tax | 20 | | imposed by this Act
does
not apply
to the proceeds of sales | 21 | | made on or after July 1, 2003 and on or before
December
31, | 22 | | 2018 but applies to 100% of the proceeds of sales made | 23 | | thereafter.
| 24 | | With respect to biodiesel blends with no less than 1% and | 25 | | no more than 10%
biodiesel, the tax imposed by this Act applies | 26 | | to (i) 80% of the
proceeds of sales made on or after July 1, |
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| 1 | | 2003 and on or before December 31, 2018
and (ii) 100% of the | 2 | | proceeds of sales made
thereafter.
If, at any time, however, | 3 | | the tax under this Act on sales of biodiesel blends
with no | 4 | | less than 1% and no more than 10% biodiesel
is imposed at the | 5 | | rate of
1.25%, then the
tax imposed by this Act applies to 100% | 6 | | of the proceeds of sales of biodiesel
blends with no less than | 7 | | 1% and no more than 10% biodiesel
made
during that time.
| 8 | | With respect to 100% biodiesel and biodiesel blends with | 9 | | more than 10%
but no more than 99% biodiesel, the tax imposed | 10 | | by this Act does not apply to
the
proceeds of sales made on or | 11 | | after July 1, 2003 and on or before
December 31, 2018 but | 12 | | applies to 100% of the proceeds of sales made
thereafter.
| 13 | | With respect to food for human consumption that is to be | 14 | | consumed off the
premises where it is sold (other than | 15 | | alcoholic beverages, soft drinks, and
food that has been | 16 | | prepared for immediate consumption) and prescription and
| 17 | | nonprescription medicines, drugs, medical appliances, | 18 | | modifications to a motor
vehicle for the purpose of rendering | 19 | | it usable by a disabled person, and
insulin, urine testing | 20 | | materials, syringes, and needles used by diabetics, for
human | 21 | | use, the tax is imposed at the rate of 1%. For the purposes of | 22 | | this
Section, until September 1, 2009: the term "soft drinks" | 23 | | means any complete, finished, ready-to-use,
non-alcoholic | 24 | | drink, whether carbonated or not, including but not limited to
| 25 | | soda water, cola, fruit juice, vegetable juice, carbonated | 26 | | water, and all other
preparations commonly known as soft drinks |
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| 1 | | of whatever kind or description that
are contained in any | 2 | | closed or sealed bottle, can, carton, or container,
regardless | 3 | | of size; but "soft drinks" does not include coffee, tea, | 4 | | non-carbonated
water, infant formula, milk or milk products as | 5 | | defined in the Grade A
Pasteurized Milk and Milk Products Act, | 6 | | or drinks containing 50% or more
natural fruit or vegetable | 7 | | juice.
| 8 | | Notwithstanding any other provisions of this
Act, | 9 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 10 | | beverages that contain natural or artificial sweeteners. "Soft | 11 | | drinks" do not include beverages that contain milk or milk | 12 | | products, soy, rice or similar milk substitutes, or greater | 13 | | than 50% of vegetable or fruit juice by volume. | 14 | | Until September August 1, 2009, and notwithstanding any | 15 | | other provisions of this
Act, "food for human consumption that | 16 | | is to be consumed off the premises where
it is sold" includes | 17 | | all food sold through a vending machine, except soft
drinks and | 18 | | food products that are dispensed hot from a vending machine,
| 19 | | regardless of the location of the vending machine. Beginning | 20 | | September August 1, 2009, and notwithstanding any other | 21 | | provisions of this Act, "food for human consumption that is to | 22 | | be consumed off the premises where it is sold" includes all | 23 | | food sold through a vending machine, except soft drinks, candy, | 24 | | and food products that are dispensed hot from a vending | 25 | | machine, regardless of the location of the vending machine.
| 26 | | Notwithstanding any other provisions of this
Act, |
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| 1 | | beginning September 1, 2009, "food for human consumption that | 2 | | is to be consumed off the premises where
it is sold" does not | 3 | | include candy. For purposes of this Section, "candy" means a | 4 | | preparation of sugar, honey, or other natural or artificial | 5 | | sweeteners in combination with chocolate, fruits, nuts or other | 6 | | ingredients or flavorings in the form of bars, drops, or | 7 | | pieces. "Candy" does not include any preparation that contains | 8 | | flour or requires refrigeration. | 9 | | Notwithstanding any other provisions of this
Act, | 10 | | beginning September 1, 2009, "nonprescription medicines and | 11 | | drugs" does not include grooming and hygiene products. For | 12 | | purposes of this Section, "grooming and hygiene products" | 13 | | includes, but is not limited to, soaps and cleaning solutions, | 14 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 15 | | lotions and screens, unless those products are available by | 16 | | prescription only, regardless of whether the products meet the | 17 | | definition of "over-the-counter-drugs". For the purposes of | 18 | | this paragraph, "over-the-counter-drug" means a drug for human | 19 | | use that contains a label that identifies the product as a drug | 20 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 21 | | label includes: | 22 | | (A) A "Drug Facts" panel; or | 23 | | (B) A statement of the "active ingredient(s)" with a | 24 | | list of those ingredients contained in the compound, | 25 | | substance or preparation. | 26 | | If the property that is purchased at retail from a retailer |
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| 1 | | is acquired
outside Illinois and used outside Illinois before | 2 | | being brought to Illinois
for use here and is taxable under | 3 | | this Act, the "selling price" on which
the tax is computed | 4 | | shall be reduced by an amount that represents a
reasonable | 5 | | allowance for depreciation for the period of prior out-of-state | 6 | | use.
| 7 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | 8 | | eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10; | 9 | | 97-636, eff. 6-1-12.)
| 10 | | (35 ILCS 105/3-61)
| 11 | | Sec. 3-61. Motor vehicles; trailers; use as rolling stock | 12 | | definition. | 13 | | (a) Through
June 30, 2003, "use
as
rolling stock moving
in
| 14 | | interstate commerce" in subsections (b) and (c) of Section 3-55 | 15 | | means for motor
vehicles, as defined in Section 1-146 of the | 16 | | Illinois Vehicle Code, and
trailers, as defined in Section | 17 | | 1-209 of the Illinois Vehicle Code, when on 15
or more | 18 | | occasions in a 12-month period the motor vehicle and trailer | 19 | | has
carried
persons or
property for hire in interstate | 20 | | commerce, even just between points in Illinois,
if the motor | 21 | | vehicle and trailer transports persons whose journeys or | 22 | | property
whose shipments originate or terminate outside | 23 | | Illinois. This definition
applies to all property purchased for | 24 | | the purpose of being
attached to those motor vehicles or | 25 | | trailers as a part thereof.
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| 1 | | (b) On and after July 1, 2003 and through June 30, 2004, | 2 | | "use as rolling stock moving in interstate
commerce" in
| 3 | | paragraphs (b) and (c) of Section 3-55 occurs for motor | 4 | | vehicles, as defined in
Section 1-146 of the Illinois Vehicle | 5 | | Code, when during a 12-month period
the
rolling stock has | 6 | | carried persons or property for hire in interstate commerce
for | 7 | | 51% of
its total trips and transports persons whose journeys or | 8 | | property whose
shipments
originate or terminate outside | 9 | | Illinois. Trips that are only between points in
Illinois shall
| 10 | | not be counted as interstate trips when calculating whether the | 11 | | tangible
personal property
qualifies for the exemption but such | 12 | | trips shall be included in total trips
taken.
| 13 | | (c) Beginning July 1, 2004, "use as rolling stock moving in | 14 | | interstate commerce" in paragraphs (b) and (c) of Section 3-55 | 15 | | occurs for motor vehicles, as defined in Section 1-146 of the | 16 | | Illinois Vehicle Code, when during a 12-month period the | 17 | | rolling stock has carried persons or property for hire in | 18 | | interstate commerce for greater than 50% of its total trips for | 19 | | that period or for greater than 50% of its total miles for that | 20 | | period. The person claiming the exemption shall make an | 21 | | election at the time of purchase to use either the trips or | 22 | | mileage method. Persons who purchased motor vehicles prior to | 23 | | July 1, 2004 shall make an election to use either the trips or | 24 | | mileage method and document that election in their books and | 25 | | records. If no election is made under this subsection to use | 26 | | the trips or mileage method, the person shall be deemed to have |
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| 1 | | chosen the mileage method. Any election to use either the trips | 2 | | or mileage method will remain in effect for that motor vehicle | 3 | | for any period for which the Department may issue a notice of | 4 | | tax liability under this Act. | 5 | | For purposes of determining qualifying trips or miles, | 6 | | motor vehicles that carry persons or property for hire, even | 7 | | just between points in Illinois, will be considered used for | 8 | | hire in interstate commerce if the motor vehicle transports | 9 | | persons whose journeys or property whose shipments originate or | 10 | | terminate outside Illinois. The exemption for motor vehicles
| 11 | | used as rolling stock moving in interstate commerce may be
| 12 | | claimed only for the following vehicles: (i) motor vehicles | 13 | | whose gross vehicle weight
rating exceeds 16,000 pounds; and | 14 | | (ii) limousines, as defined in Section 1-139.1 of the Illinois | 15 | | Vehicle Code. This definition applies to all property purchased | 16 | | for the purpose of being attached to those motor vehicles as a | 17 | | part thereof. | 18 | | (d) Beginning July 1, 2004, "use as rolling stock moving in | 19 | | interstate commerce" in paragraphs (b) and (c) of Section 3-55 | 20 | | occurs for trailers, as defined in Section 1-209 of the | 21 | | Illinois Vehicle Code, semitrailers as defined in Section 1-187 | 22 | | of the Illinois Vehicle Code, and pole trailers as defined in | 23 | | Section 1-161 of the Illinois Vehicle Code, when during a | 24 | | 12-month period the rolling stock has carried persons or | 25 | | property for hire in interstate commerce for greater than 50% | 26 | | of its total trips for that period or for greater than 50% of |
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| 1 | | its total miles for that period. The person claiming the | 2 | | exemption for a trailer or trailers that will not be dedicated | 3 | | to a motor vehicle or group of motor vehicles shall make an | 4 | | election at the time of purchase to use either the trips or | 5 | | mileage method. Persons who purchased trailers prior to July 1, | 6 | | 2004 that are not dedicated to a motor vehicle or group of | 7 | | motor vehicles shall make an election to use either the trips | 8 | | or mileage method and document that election in their books and | 9 | | records. If no election is made under this subsection to use | 10 | | the trips or mileage method, the person shall be deemed to have | 11 | | chosen the mileage method. Any election to use either the trips | 12 | | or mileage method will remain in effect for that trailer for | 13 | | any period for which the Department may issue a notice of tax | 14 | | liability under this Act. | 15 | | For purposes of determining qualifying trips or miles, | 16 | | trailers, semitrailers, or pole trailers that carry property | 17 | | for hire, even just between points in Illinois, will be | 18 | | considered used for hire in interstate commerce if the | 19 | | trailers, semitrailers, or pole trailers transport property | 20 | | whose shipments originate or terminate outside Illinois. This | 21 | | definition applies to all property purchased for the purpose of | 22 | | being attached to those trailers, semitrailers, or pole | 23 | | trailers as a part thereof. In lieu of a person providing | 24 | | documentation regarding the qualifying use of each individual | 25 | | trailer, semitrailer, or pole trailer, that person may document | 26 | | such qualifying use by providing documentation of the |
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| 1 | | following: | 2 | | (1) If a trailer, semitrailer, or pole trailer is | 3 | | dedicated to a motor vehicle that qualifies as rolling | 4 | | stock moving in interstate commerce under subsection (c) of | 5 | | this Section, then that trailer, semitrailer, or pole | 6 | | trailer qualifies as rolling stock moving in interstate | 7 | | commerce under this subsection. | 8 | | (2) If a trailer, semitrailer, or pole trailer is | 9 | | dedicated to a group of motor vehicles that all qualify as | 10 | | rolling stock moving in interstate commerce under | 11 | | subsection (c) of this Section, then that trailer, | 12 | | semitrailer, or pole trailer qualifies as rolling stock | 13 | | moving in interstate commerce under this subsection. | 14 | | (3) If one or more trailers, semitrailers, or pole | 15 | | trailers are dedicated to a group of motor vehicles and not | 16 | | all of those motor vehicles in that group qualify as | 17 | | rolling stock moving in interstate commerce under | 18 | | subsection (c) of this Section, then the percentage of | 19 | | those trailers, semitrailers, or pole trailers that | 20 | | qualifies as rolling stock moving in interstate commerce | 21 | | under this subsection is equal to the percentage of those | 22 | | motor vehicles in that group that qualify as rolling stock | 23 | | moving in interstate commerce under subsection (c) of this | 24 | | Section to which those trailers, semitrailers, or pole | 25 | | trailers are dedicated. However, to determine the | 26 | | qualification for the exemption provided under this item |
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| 1 | | (3), the mathematical application of the qualifying | 2 | | percentage to one or more trailers, semitrailers, or pole | 3 | | trailers under this subpart shall not be allowed as to any | 4 | | fraction of a trailer, semitrailer, or pole trailer.
| 5 | | (e) Beginning July 1, 2012, "use as rolling stock moving in | 6 | | interstate commerce" in paragraphs (b) and (c) of Section 3-55 | 7 | | occurs for aircraft and watercraft when, during a 12-month | 8 | | period, the rolling stock has carried persons or property for | 9 | | hire in interstate commerce for greater than 50% of its total | 10 | | trips for that period or for greater than 50% of its total | 11 | | miles for that period. The person claiming the exemption shall | 12 | | make an election at the time of purchase to use either the | 13 | | trips or mileage method. Persons who purchased aircraft or | 14 | | watercraft prior to July 1, 2012 shall make an election to use | 15 | | either the trips or mileage method and document that election | 16 | | in their books and records. If no election is made under this | 17 | | subsection to use the trips or mileage method, the person shall | 18 | | be deemed to have chosen the mileage method. For aircraft, | 19 | | flight hours may be used in lieu of recording miles in | 20 | | determining whether the aircraft meets the mileage test in this | 21 | | subsection. For watercraft, nautical miles or trip hours may be | 22 | | used in lieu of recording miles in determining whether the | 23 | | watercraft meets the mileage test in this subsection. | 24 | | (f) Any election to use either the trips or mileage method | 25 | | made under the provisions of subsections (c), (d), or (e) of | 26 | | this Section will remain in effect for the life of that item. |
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| 1 | | (Source: P.A. 95-528, eff. 8-28-07.)
| 2 | | Section 15. The Service Use Tax Act is amended by changing | 3 | | Sections 3-10 and 3-51 as follows:
| 4 | | (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
| 5 | | (Text of Section before amendment by P.A. 97-636 ) | 6 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this | 7 | | Section,
the tax imposed by this Act is at the rate of 6.25% of | 8 | | the selling
price of tangible personal property transferred as | 9 | | an incident to the sale
of service, but, for the purpose of | 10 | | computing this tax, in no event shall
the selling price be less | 11 | | than the cost price of the property to the
serviceman.
| 12 | | Beginning on July 1, 2000 and through December 31, 2000, | 13 | | with respect to
motor fuel, as defined in Section 1.1 of the | 14 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 15 | | the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
| 16 | | With respect to gasohol, as defined in the Use Tax Act, the | 17 | | tax imposed
by this Act applies to (i) 70% of the selling price | 18 | | of property transferred
as an incident to the sale of service | 19 | | on or after January 1, 1990,
and before July 1, 2003, (ii) 80% | 20 | | of the selling price of
property transferred as an incident to | 21 | | the sale of service on or after July
1, 2003 and on or before | 22 | | December 31, 2013, and (iii)
100% of the selling price | 23 | | thereafter.
If, at any time, however, the tax under this Act on | 24 | | sales of gasohol, as
defined in
the Use Tax Act, is imposed at |
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| 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, the tax imposed | 24 | | by this Act
does not apply to the proceeds of the selling price | 25 | | of property transferred
as an incident to the sale of service | 26 | | on or after July 1, 2003 and on or before
December 31, 2013 but |
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| 1 | | applies to 100% of the selling price thereafter.
| 2 | | At the election of any registered serviceman made for each | 3 | | fiscal year,
sales of service in which the aggregate annual | 4 | | cost price of tangible
personal property transferred as an | 5 | | incident to the sales of service is
less than 35%, or 75% in | 6 | | the case of servicemen transferring prescription
drugs or | 7 | | servicemen engaged in graphic arts production, of the aggregate
| 8 | | annual total gross receipts from all sales of service, the tax | 9 | | imposed by
this Act shall be based on the serviceman's cost | 10 | | price of the tangible
personal property transferred as an | 11 | | incident to the sale of those services.
| 12 | | The tax shall be imposed at the rate of 1% on food prepared | 13 | | for
immediate consumption and transferred incident to a sale of | 14 | | service subject
to this Act or the Service Occupation Tax Act | 15 | | by an entity licensed under
the Hospital Licensing Act, the | 16 | | Nursing Home Care Act, the ID/DD Community Care Act, the | 17 | | Specialized Mental Health Rehabilitation Act, or the
Child Care
| 18 | | Act of 1969. The tax shall
also be imposed at the rate of 1% on | 19 | | food for human consumption that is to be
consumed off the | 20 | | premises where it is sold (other than alcoholic beverages,
soft | 21 | | drinks, and food that has been prepared for immediate | 22 | | consumption and is
not otherwise included in this paragraph) | 23 | | and prescription and nonprescription
medicines, drugs, medical | 24 | | appliances, modifications to a motor vehicle for the
purpose of | 25 | | rendering it usable by a disabled person, and insulin, urine | 26 | | testing
materials,
syringes, and needles used by diabetics, for
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| 1 | | human use. For the purposes of this Section, until September 1, | 2 | | 2009: the term "soft drinks" means any
complete, finished, | 3 | | ready-to-use, non-alcoholic drink, whether carbonated or
not, | 4 | | including but not limited to soda water, cola, fruit juice, | 5 | | vegetable
juice, carbonated water, and all other preparations | 6 | | commonly known as soft
drinks of whatever kind or description | 7 | | that are contained in any closed or
sealed bottle, can, carton, | 8 | | or container, regardless of size; but "soft drinks"
does not | 9 | | include coffee, tea, non-carbonated water, infant formula, | 10 | | milk or
milk products as defined in the Grade A Pasteurized | 11 | | Milk and Milk Products Act,
or drinks containing 50% or more | 12 | | natural fruit or vegetable juice.
| 13 | | Notwithstanding any other provisions of this
Act, | 14 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 15 | | beverages that contain natural or artificial sweeteners. "Soft | 16 | | drinks" do not include beverages that contain milk or milk | 17 | | products, soy, rice or similar milk substitutes, or greater | 18 | | than 50% of vegetable or fruit juice by volume. | 19 | | Until September August 1, 2009, and notwithstanding any | 20 | | other provisions of this Act, "food for human
consumption that | 21 | | is to be consumed off the premises where it is sold" includes
| 22 | | all food sold through a vending machine, except soft drinks and | 23 | | food products
that are dispensed hot from a vending machine, | 24 | | regardless of the location of
the vending machine. Beginning | 25 | | September August 1, 2009, and notwithstanding any other | 26 | | provisions of this Act, "food for human consumption that is to |
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| 1 | | be consumed off the premises where it is sold" includes all | 2 | | food sold through a vending machine, except soft drinks, candy, | 3 | | and food products that are dispensed hot from a vending | 4 | | machine, regardless of the location of the vending machine.
| 5 | | Notwithstanding any other provisions of this
Act, | 6 | | beginning September 1, 2009, "food for human consumption that | 7 | | is to be consumed off the premises where
it is sold" does not | 8 | | include candy. For purposes of this Section, "candy" means a | 9 | | preparation of sugar, honey, or other natural or artificial | 10 | | sweeteners in combination with chocolate, fruits, nuts or other | 11 | | ingredients or flavorings in the form of bars, drops, or | 12 | | pieces. "Candy" does not include any preparation that contains | 13 | | flour or requires refrigeration. | 14 | | Notwithstanding any other provisions of this
Act, | 15 | | beginning September 1, 2009, "nonprescription medicines and | 16 | | drugs" does not include grooming and hygiene products. For | 17 | | purposes of this Section, "grooming and hygiene products" | 18 | | includes, but is not limited to, soaps and cleaning solutions, | 19 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 20 | | lotions and screens, unless those products are available by | 21 | | prescription only, regardless of whether the products meet the | 22 | | definition of "over-the-counter-drugs". For the purposes of | 23 | | this paragraph, "over-the-counter-drug" means a drug for human | 24 | | use that contains a label that identifies the product as a drug | 25 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 26 | | label includes: |
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| 1 | | (A) A "Drug Facts" panel; or | 2 | | (B) A statement of the "active ingredient(s)" with a | 3 | | list of those ingredients contained in the compound, | 4 | | substance or preparation. | 5 | | If the property that is acquired from a serviceman is | 6 | | acquired outside
Illinois and used outside Illinois before | 7 | | being brought to Illinois for use
here and is taxable under | 8 | | this Act, the "selling price" on which the tax
is computed | 9 | | shall be reduced by an amount that represents a reasonable
| 10 | | allowance for depreciation for the period of prior out-of-state | 11 | | use.
| 12 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | 13 | | eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38, | 14 | | eff. 6-28-11; 97-227, eff. 1-1-12; revised 9-12-11.) | 15 | | (Text of Section after amendment by P.A. 97-636 ) | 16 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this | 17 | | Section,
the tax imposed by this Act is at the rate of 6.25% of | 18 | | the selling
price of tangible personal property transferred as | 19 | | an incident to the sale
of service, but, for the purpose of | 20 | | computing this tax, in no event shall
the selling price be less | 21 | | than the cost price of the property to the
serviceman.
| 22 | | Beginning on July 1, 2000 and through December 31, 2000, | 23 | | with respect to
motor fuel, as defined in Section 1.1 of the | 24 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 25 | | the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
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| 1 | | With respect to gasohol, as defined in the Use Tax Act, the | 2 | | tax imposed
by this Act applies to (i) 70% of the selling price | 3 | | of property transferred
as an incident to the sale of service | 4 | | on or after January 1, 1990,
and before July 1, 2003, (ii) 80% | 5 | | of 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, 2018, and (iii)
100% of the selling price | 8 | | thereafter.
If, at any time, however, the tax under this Act on | 9 | | sales of gasohol, as
defined in
the Use Tax Act, is imposed at | 10 | | the rate of 1.25%, then the
tax imposed by this Act applies to | 11 | | 100% of the proceeds of sales of gasohol
made during that time.
| 12 | | With respect to majority blended ethanol fuel, as defined | 13 | | in the Use Tax Act,
the
tax
imposed by this Act does not apply | 14 | | to the selling price of property transferred
as an incident to | 15 | | the sale of service on or after July 1, 2003 and on or before
| 16 | | December 31, 2018 but applies to 100% of the selling price | 17 | | thereafter.
| 18 | | With respect to biodiesel blends, as defined in the Use Tax | 19 | | Act, with no less
than 1% and no
more than 10% biodiesel, the | 20 | | tax imposed by this Act
applies to (i) 80% of the selling price | 21 | | of property transferred as an incident
to the sale of service | 22 | | on or after July 1, 2003 and on or before December 31, 2018
and | 23 | | (ii) 100% of the proceeds of the selling price
thereafter.
If, | 24 | | at any time, however, the tax under this Act on sales of | 25 | | biodiesel blends,
as
defined in the Use Tax Act, with no less | 26 | | than 1% and no more than 10% biodiesel
is imposed at the rate |
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| 1 | | of 1.25%, then the
tax imposed by this Act applies to 100% of | 2 | | the proceeds of sales of biodiesel
blends with no less than 1% | 3 | | and no more than 10% biodiesel
made
during that time.
| 4 | | With respect to 100% biodiesel, as defined in the Use Tax | 5 | | Act, and biodiesel
blends, as defined in the Use Tax Act, 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 the selling price | 8 | | of property transferred
as an incident to the sale of service | 9 | | on or after July 1, 2003 and on or before
December 31, 2018 but | 10 | | applies to 100% of the selling price thereafter.
| 11 | | At the election of any registered serviceman made for each | 12 | | fiscal year,
sales of service in which the aggregate annual | 13 | | cost price of tangible
personal property transferred as an | 14 | | incident to the sales of service is
less than 35%, or 75% in | 15 | | the case of servicemen transferring prescription
drugs or | 16 | | servicemen engaged in graphic arts production, of the aggregate
| 17 | | annual total gross receipts from all sales of service, the tax | 18 | | imposed by
this Act shall be based on the serviceman's cost | 19 | | price of the tangible
personal property transferred as an | 20 | | incident to the sale of those services.
| 21 | | The tax shall be imposed at the rate of 1% on food prepared | 22 | | for
immediate consumption and transferred incident to a sale of | 23 | | service subject
to this Act or the Service Occupation Tax Act | 24 | | by an entity licensed under
the Hospital Licensing Act, the | 25 | | Nursing Home Care Act, the ID/DD Community Care Act, the | 26 | | Specialized Mental Health Rehabilitation Act, or the
Child Care
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| 1 | | Act of 1969. The tax shall
also be imposed at the rate of 1% on | 2 | | food for human consumption that is to be
consumed off the | 3 | | premises where it is sold (other than alcoholic beverages,
soft | 4 | | drinks, and food that has been prepared for immediate | 5 | | consumption and is
not otherwise included in this paragraph) | 6 | | and prescription and nonprescription
medicines, drugs, medical | 7 | | appliances, modifications to a motor vehicle for the
purpose of | 8 | | rendering it usable by a disabled person, and insulin, urine | 9 | | testing
materials,
syringes, and needles used by diabetics, for
| 10 | | human use. For the purposes of this Section, until September 1, | 11 | | 2009: the term "soft drinks" means any
complete, finished, | 12 | | ready-to-use, non-alcoholic drink, whether carbonated or
not, | 13 | | including but not limited to soda water, cola, fruit juice, | 14 | | vegetable
juice, carbonated water, and all other preparations | 15 | | commonly known as soft
drinks of whatever kind or description | 16 | | that are contained in any closed or
sealed bottle, can, carton, | 17 | | or container, regardless of size; but "soft drinks"
does not | 18 | | include coffee, tea, non-carbonated water, infant formula, | 19 | | milk or
milk products as defined in the Grade A Pasteurized | 20 | | Milk and Milk Products Act,
or drinks containing 50% or more | 21 | | natural fruit or vegetable juice.
| 22 | | Notwithstanding any other provisions of this
Act, | 23 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 24 | | beverages that contain natural or artificial sweeteners. "Soft | 25 | | drinks" do not include beverages that contain milk or milk | 26 | | products, soy, rice or similar milk substitutes, or greater |
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| 1 | | than 50% of vegetable or fruit juice by volume. | 2 | | Until September August 1, 2009, and notwithstanding any | 3 | | other provisions of this Act, "food for human
consumption that | 4 | | is to be consumed off the premises where it is sold" includes
| 5 | | all food sold through a vending machine, except soft drinks and | 6 | | food products
that are dispensed hot from a vending machine, | 7 | | regardless of the location of
the vending machine. Beginning | 8 | | September August 1, 2009, and notwithstanding any other | 9 | | provisions of this Act, "food for human consumption that is to | 10 | | be consumed off the premises where it is sold" includes all | 11 | | food sold through a vending machine, except soft drinks, candy, | 12 | | and food products that are dispensed hot from a vending | 13 | | machine, regardless of the location of the vending machine.
| 14 | | Notwithstanding any other provisions of this
Act, | 15 | | beginning September 1, 2009, "food for human consumption that | 16 | | is to be consumed off the premises where
it is sold" does not | 17 | | include candy. For purposes of this Section, "candy" means a | 18 | | preparation of sugar, honey, or other natural or artificial | 19 | | sweeteners in combination with chocolate, fruits, nuts or other | 20 | | ingredients or flavorings in the form of bars, drops, or | 21 | | pieces. "Candy" does not include any preparation that contains | 22 | | flour or requires refrigeration. | 23 | | Notwithstanding any other provisions of this
Act, | 24 | | beginning September 1, 2009, "nonprescription medicines and | 25 | | drugs" does not include grooming and hygiene products. For | 26 | | purposes of this Section, "grooming and hygiene products" |
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| 1 | | includes, but is not limited to, soaps and cleaning solutions, | 2 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 3 | | lotions and screens, unless those products are available by | 4 | | prescription only, regardless of whether the products meet the | 5 | | definition of "over-the-counter-drugs". For the purposes of | 6 | | this paragraph, "over-the-counter-drug" means a drug for human | 7 | | use that contains a label that identifies the product as a drug | 8 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 9 | | label includes: | 10 | | (A) A "Drug Facts" panel; or | 11 | | (B) A statement of the "active ingredient(s)" with a | 12 | | list of those ingredients contained in the compound, | 13 | | substance or preparation. | 14 | | If the property that is acquired from a serviceman is | 15 | | acquired outside
Illinois and used outside Illinois before | 16 | | being brought to Illinois for use
here and is taxable under | 17 | | this Act, the "selling price" on which the tax
is computed | 18 | | shall be reduced by an amount that represents a reasonable
| 19 | | allowance for depreciation for the period of prior out-of-state | 20 | | use.
| 21 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | 22 | | eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38, | 23 | | eff. 6-28-11; 97-227, eff. 1-1-12; 97-636, eff. 6-1-12.)
| 24 | | (35 ILCS 110/3-51)
| 25 | | Sec. 3-51. Motor vehicles; trailers; use as rolling stock |
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| 1 | | definition. | 2 | | (a) Through
June 30, 2003, "use
as
rolling stock moving
in
| 3 | | interstate commerce" in subsection (b) of Section 3-45 means | 4 | | for motor
vehicles, as defined in Section 1-46 of the Illinois | 5 | | Vehicle Code, and
trailers, as defined in Section 1-209 of the | 6 | | Illinois Vehicle Code, when on 15
or more
occasions in a | 7 | | 12-month period the motor vehicle and trailer has carried
| 8 | | persons
or property
for hire in interstate commerce, even just | 9 | | between points in Illinois, if the
motor vehicle and trailer | 10 | | transports persons whose journeys or property
whose shipments | 11 | | originate or terminate outside Illinois. This definition
| 12 | | applies to all property purchased for the purpose of being | 13 | | attached to those
motor
vehicles or trailers as a part thereof.
| 14 | | (b) On and after July 1, 2003 and through June 30, 2004, | 15 | | "use as rolling stock moving in interstate
commerce" in
| 16 | | paragraphs (4) and (4a) of the definition of "sale of service" | 17 | | in Section 2
and subsection (b) of Section 3-45 occurs for | 18 | | motor vehicles, as defined in
Section 1-146 of the Illinois | 19 | | Vehicle Code, when
during a 12-month period the rolling stock | 20 | | has carried persons or property for
hire in
interstate commerce | 21 | | for 51% of its total trips and transports persons whose
| 22 | | journeys or
property whose shipments originate or terminate | 23 | | outside Illinois. Trips that
are only
between points in | 24 | | Illinois shall not be counted as interstate trips when
| 25 | | calculating whether
the tangible personal property qualifies | 26 | | for the exemption but such trips shall
be included
in total |
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| 1 | | trips taken.
| 2 | | (c) Beginning July 1, 2004, "use as rolling stock moving in | 3 | | interstate commerce" in paragraphs (4) and (4a) of the | 4 | | definition of "sale of service" in Section 2 and subsection (b) | 5 | | of Section 3-45 occurs for motor vehicles, as defined in | 6 | | Section 1-146 of the Illinois Vehicle Code, when during a | 7 | | 12-month period the rolling stock has carried persons or | 8 | | property for hire in interstate commerce for greater than 50% | 9 | | of its total trips for that period or for greater than 50% of | 10 | | its total miles for that period. The person claiming the | 11 | | exemption shall make an election at the time of purchase to use | 12 | | either the trips or mileage method. Persons who purchased motor | 13 | | vehicles prior to July 1, 2004 shall make an election to use | 14 | | either the trips or mileage method and document that election | 15 | | in their books and records. If no election is made under this | 16 | | subsection to use the trips or mileage method, the person shall | 17 | | be deemed to have chosen the mileage method. Any election to | 18 | | use either the trips or mileage method will remain in effect | 19 | | for that motor vehicle for any period for which the Department | 20 | | may issue a notice of tax liability under this Act. | 21 | | For purposes of determining qualifying trips or miles, | 22 | | motor vehicles that carry persons or property for hire, even | 23 | | just between points in Illinois, will be considered used for | 24 | | hire in interstate commerce if the motor vehicle transports | 25 | | persons whose journeys or property whose shipments originate or | 26 | | terminate outside Illinois. The exemption for motor vehicles
|
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| 1 | | used as rolling stock moving in interstate commerce may be
| 2 | | claimed only for the following vehicles: (i) motor vehicles | 3 | | whose gross vehicle weight
rating exceeds 16,000 pounds; and | 4 | | (ii) limousines, as defined in Section 1-139.1 of the Illinois | 5 | | Vehicle Code. This definition applies to all property purchased | 6 | | for the purpose of being attached to those motor vehicles as a | 7 | | part thereof. | 8 | | (d) Beginning July 1, 2004, "use as rolling stock moving in | 9 | | interstate commerce" in paragraphs (4) and (4a) of the | 10 | | definition of "sale of service" in Section 2 and subsection (b) | 11 | | of Section 3-45 occurs for trailers, as defined in Section | 12 | | 1-209 of the Illinois Vehicle Code, semitrailers as defined in | 13 | | Section 1-187 of the Illinois Vehicle Code, and pole trailers | 14 | | as defined in Section 1-161 of the Illinois Vehicle Code, when | 15 | | during a 12-month period the rolling stock has carried persons | 16 | | or property for hire in interstate commerce for greater than | 17 | | 50% of its total trips for that period or for greater than 50% | 18 | | of its total miles for that period. The person claiming the | 19 | | exemption for a trailer or trailers that will not be dedicated | 20 | | to a motor vehicle or group of motor vehicles shall make an | 21 | | election at the time of purchase to use either the trips or | 22 | | mileage method. Persons who purchased trailers prior to July 1, | 23 | | 2004 that are not dedicated to a motor vehicle or group of | 24 | | motor vehicles shall make an election to use either the trips | 25 | | or mileage method and document that election in their books and | 26 | | records. If no election is made under this subsection to use |
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| 1 | | the trips or mileage method, the person shall be deemed to have | 2 | | chosen the mileage method. Any election to use either the trips | 3 | | or mileage method will remain in effect for that trailer for | 4 | | any period for which the Department may issue a notice of tax | 5 | | liability under this Act. | 6 | | For purposes of determining qualifying trips or miles, | 7 | | trailers, semitrailers, or pole trailers that carry property | 8 | | for hire, even just between points in Illinois, will be | 9 | | considered used for hire in interstate commerce if the | 10 | | trailers, semitrailers, or pole trailers transport property | 11 | | whose shipments originate or terminate outside Illinois. This | 12 | | definition applies to all property purchased for the purpose of | 13 | | being attached to those trailers, semitrailers, or pole | 14 | | trailers as a part thereof. In lieu of a person providing | 15 | | documentation regarding the qualifying use of each individual | 16 | | trailer, semitrailer, or pole trailer, that person may document | 17 | | such qualifying use by providing documentation of the | 18 | | following: | 19 | | (1) If a trailer, semitrailer, or pole trailer is | 20 | | dedicated to a motor vehicle that qualifies as rolling | 21 | | stock moving in interstate commerce under subsection (c) of | 22 | | this Section, then that trailer, semitrailer, or pole | 23 | | trailer qualifies as rolling stock moving in interstate | 24 | | commerce under this subsection. | 25 | | (2) If a trailer, semitrailer, or pole trailer is | 26 | | dedicated to a group of motor vehicles that all qualify as |
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| 1 | | rolling stock moving in interstate commerce under | 2 | | subsection (c) of this Section, then that trailer, | 3 | | semitrailer, or pole trailer qualifies as rolling stock | 4 | | moving in interstate commerce under this subsection. | 5 | | (3) If one or more trailers, semitrailers, or pole | 6 | | trailers are dedicated to a group of motor vehicles and not | 7 | | all of those motor vehicles in that group qualify as | 8 | | rolling stock moving in interstate commerce under | 9 | | subsection (c) of this Section, then the percentage of | 10 | | those trailers, semitrailers, or pole trailers that | 11 | | qualifies as rolling stock moving in interstate commerce | 12 | | under this subsection is equal to the percentage of those | 13 | | motor vehicles in that group that qualify as rolling stock | 14 | | moving in interstate commerce under subsection (c) of this | 15 | | Section to which those trailers, semitrailers, or pole | 16 | | trailers are dedicated. However, to determine the | 17 | | qualification for the exemption provided under this item | 18 | | (3), the mathematical application of the qualifying | 19 | | percentage to one or more trailers, semitrailers, or pole | 20 | | trailers under this subpart shall not be allowed as to any | 21 | | fraction of a trailer, semitrailer, or pole trailer.
| 22 | | (e) Beginning July 1, 2012, "use as rolling stock moving in | 23 | | interstate commerce" in (i) paragraphs (4) and (4a) of the | 24 | | definition of "sale of service" in Section 2 and (ii) | 25 | | subsection (b) of Section 3-45 occurs for aircraft and | 26 | | watercraft when, during a 12-month period, the rolling stock |
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| 1 | | has carried persons or property for hire in interstate commerce | 2 | | for greater than 50% of its total trips for that period or for | 3 | | greater than 50% of its total miles for that period. The person | 4 | | claiming the exemption shall make an election at the time of | 5 | | purchase to use either the trips or mileage method. Persons who | 6 | | purchased aircraft or watercraft prior to July 1, 2012 shall | 7 | | make an election to use either the trips or mileage method and | 8 | | document that election in their books and records. If no | 9 | | election is made under this subsection to use the trips or | 10 | | mileage method, the person shall be deemed to have chosen the | 11 | | mileage method. For aircraft, flight hours may be used in lieu | 12 | | of recording miles in determining whether the aircraft meets | 13 | | the mileage test in this subsection. For watercraft, nautical | 14 | | miles or trip hours may be used in lieu of recording miles in | 15 | | determining whether the watercraft meets the mileage test in | 16 | | this subsection. | 17 | | (f) Any election to use either the trips or mileage method | 18 | | made under the provisions of subsections (c), (d), or (e) of | 19 | | this Section will remain in effect for the life of that item. | 20 | | (Source: P.A. 95-528, eff. 8-28-07.)
| 21 | | Section 20. The Service Occupation Tax Act is amended by | 22 | | changing Sections 2d and 3-10 as follows:
| 23 | | (35 ILCS 115/2d)
| 24 | | Sec. 2d. Motor vehicles; trailers; use as rolling stock |
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| 1 | | definition. | 2 | | (a) Through June
30, 2003, "use as
rolling stock moving in
| 3 | | interstate commerce" in subsections (d) and (d-1) of the | 4 | | definition of "sale of
service" in Section 2 means for motor | 5 | | vehicles, as defined in Section 1-146 of
the Illinois Vehicle | 6 | | Code, and trailers, as defined in Section 1-209 of the
Illinois | 7 | | Vehicle Code, when on 15 or more occasions in a 12-month period | 8 | | the
motor vehicle and trailer has carried persons or property | 9 | | for hire in
interstate commerce, even just between points in | 10 | | Illinois, if the motor vehicle
and trailer transports persons | 11 | | whose journeys or property whose shipments
originate or | 12 | | terminate outside Illinois.
This definition applies to all | 13 | | property purchased for the purpose of being
attached to those | 14 | | motor vehicles or trailers as a part thereof.
| 15 | | (b) On and after July 1, 2003 and through June 30, 2004, | 16 | | "use as rolling stock moving in interstate
commerce" in
| 17 | | paragraphs (d) and (d-1) of the definition of "sale of service" | 18 | | in
Section 2 occurs for motor vehicles, as defined in Section | 19 | | 1-146 of the
Illinois Vehicle Code,
when during a 12-month | 20 | | period the rolling stock has carried persons or property
for | 21 | | hire
in interstate commerce for 51% of its total trips and | 22 | | transports persons whose
journeys or
property whose shipments | 23 | | originate or terminate outside Illinois. Trips that
are only
| 24 | | between points in Illinois will not be counted as interstate | 25 | | trips when
calculating whether
the tangible personal property | 26 | | qualifies for the exemption but such trips will
be included
in |
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| 1 | | total trips taken.
| 2 | | (c) Beginning July 1, 2004, "use as rolling stock moving in | 3 | | interstate commerce" in paragraphs (d) and (d-1) of the | 4 | | definition of "sale of service" in Section 2 occurs for motor | 5 | | vehicles, as defined in Section 1-146 of the Illinois Vehicle | 6 | | Code, when during a 12-month period the rolling stock has | 7 | | carried persons or property for hire in interstate commerce for | 8 | | greater than 50% of its total trips for that period or for | 9 | | greater than 50% of its total miles for that period. The person | 10 | | claiming the exemption shall make an election at the time of | 11 | | purchase to use either the trips or mileage method. Persons who | 12 | | purchased motor vehicles prior to July 1, 2004 shall make an | 13 | | election to use either the trips or mileage method and document | 14 | | that election in their books and records. If no election is | 15 | | made under this subsection to use the trips or mileage method, | 16 | | the person shall be deemed to have chosen the mileage method. | 17 | | Any election to use either the trips or mileage method will | 18 | | remain in effect for that motor vehicle for any period for | 19 | | which the Department may issue a notice of tax liability under | 20 | | this Act. | 21 | | For purposes of determining qualifying trips or miles, | 22 | | motor vehicles that carry persons or property for hire, even | 23 | | just between points in Illinois, will be considered used for | 24 | | hire in interstate commerce if the motor vehicle transports | 25 | | persons whose journeys or property whose shipments originate or | 26 | | terminate outside Illinois. The exemption for motor vehicles
|
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| 1 | | used as rolling stock moving in interstate commerce may be
| 2 | | claimed only for the following vehicles: (i) motor vehicles | 3 | | whose gross vehicle weight
rating exceeds 16,000 pounds; and | 4 | | (ii) limousines, as defined in Section 1-139.1 of the Illinois | 5 | | Vehicle Code. This definition applies to all property purchased | 6 | | for the purpose of being attached to those motor vehicles as a | 7 | | part thereof. | 8 | | (d) Beginning July 1, 2004, "use as rolling stock moving in | 9 | | interstate commerce" in paragraphs (d) and (d-1) of the | 10 | | definition of "sale of service" in Section 2 occurs for | 11 | | trailers, as defined in Section 1-209 of the Illinois Vehicle | 12 | | Code, semitrailers as defined in Section 1-187 of the Illinois | 13 | | Vehicle Code, and pole trailers as defined in Section 1-161 of | 14 | | the Illinois Vehicle Code, when during a 12-month period the | 15 | | rolling stock has carried persons or property for hire in | 16 | | interstate commerce for greater than 50% of its total trips for | 17 | | that period or for greater than 50% of its total miles for that | 18 | | period. The person claiming the exemption for a trailer or | 19 | | trailers that will not be dedicated to a motor vehicle or group | 20 | | of motor vehicles shall make an election at the time of | 21 | | purchase to use either the trips or mileage method. Persons who | 22 | | purchased trailers prior to July 1, 2004 that are not dedicated | 23 | | to a motor vehicle or group of motor vehicles shall make an | 24 | | election to use either the trips or mileage method and document | 25 | | that election in their books and records. If no election is | 26 | | made under this subsection to use the trips or mileage method, |
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| 1 | | the person shall be deemed to have chosen the mileage method. | 2 | | Any election to use either the trips or mileage method will | 3 | | remain in effect for that trailer for any period for which the | 4 | | Department may issue a notice of tax liability under this Act. | 5 | | For purposes of determining qualifying trips or miles, | 6 | | trailers, semitrailers, or pole trailers that carry property | 7 | | for hire, even just between points in Illinois, will be | 8 | | considered used for hire in interstate commerce if the | 9 | | trailers, semitrailers, or pole trailers transport property | 10 | | whose shipments originate or terminate outside Illinois. This | 11 | | definition applies to all property purchased for the purpose of | 12 | | being attached to those trailers, semitrailers, or pole | 13 | | trailers as a part thereof. In lieu of a person providing | 14 | | documentation regarding the qualifying use of each individual | 15 | | trailer, semitrailer, or pole trailer, that person may document | 16 | | such qualifying use by providing documentation of the | 17 | | following: | 18 | | (1) If a trailer, semitrailer, or pole trailer is | 19 | | dedicated to a motor vehicle that qualifies as rolling | 20 | | stock moving in interstate commerce under subsection (c) of | 21 | | this Section, then that trailer, semitrailer, or pole | 22 | | trailer qualifies as rolling stock moving in interstate | 23 | | commerce under this subsection. | 24 | | (2) If a trailer, semitrailer, or pole trailer is | 25 | | dedicated to a group of motor vehicles that all qualify as | 26 | | rolling stock moving in interstate commerce under |
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| 1 | | subsection (c) of this Section, then that trailer, | 2 | | semitrailer, or pole trailer qualifies as rolling stock | 3 | | moving in interstate commerce under this subsection. | 4 | | (3) If one or more trailers, semitrailers, or pole | 5 | | trailers are dedicated to a group of motor vehicles and not | 6 | | all of those motor vehicles in that group qualify as | 7 | | rolling stock moving in interstate commerce under | 8 | | subsection (c) of this Section, then the percentage of | 9 | | those trailers, semitrailers, or pole trailers that | 10 | | qualifies as rolling stock moving in interstate commerce | 11 | | under this subsection is equal to the percentage of those | 12 | | motor vehicles in that group that qualify as rolling stock | 13 | | moving in interstate commerce under subsection (c) of this | 14 | | Section to which those trailers, semitrailers, or pole | 15 | | trailers are dedicated. However, to determine the | 16 | | qualification for the exemption provided under this item | 17 | | (3), the mathematical application of the qualifying | 18 | | percentage to one or more trailers, semitrailers, or pole | 19 | | trailers under this subpart shall not be allowed as to any | 20 | | fraction of a trailer, semitrailer, or pole trailer.
| 21 | | (e) Beginning July 1, 2012, "use as rolling stock moving in | 22 | | interstate commerce" in paragraphs (d) and (d-1) of the | 23 | | definition of "sale of service" in Section 2 occurs for | 24 | | aircraft and watercraft when, during a 12-month period, the | 25 | | rolling stock has carried persons or property for hire in | 26 | | interstate commerce for greater than 50% of its total trips for |
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| 1 | | that period or for greater than 50% of its total miles for that | 2 | | period. The person claiming the exemption shall make an | 3 | | election at the time of purchase to use either the trips or | 4 | | mileage method. Persons who purchased aircraft or watercraft | 5 | | prior to July 1, 2012 shall make an election to use either the | 6 | | trips or mileage method and document that election in their | 7 | | books and records. If no election is made under this subsection | 8 | | to use the trips or mileage method, the person shall be deemed | 9 | | to have chosen the mileage method. For aircraft, flight hours | 10 | | may be used in lieu of recording miles in determining whether | 11 | | the aircraft meets the mileage test in this subsection. For | 12 | | watercraft, nautical miles or trip hours may be used in lieu of | 13 | | recording miles in determining whether the watercraft meets the | 14 | | mileage test in this subsection. | 15 | | (f) Any election to use either the trips or mileage method | 16 | | made under the provisions of subsections (c), (d), or (e) of | 17 | | this Section will remain in effect for the life of that item. | 18 | | (Source: P.A. 95-528, eff. 8-28-07.)
| 19 | | (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
| 20 | | (Text of Section before amendment by P.A. 97-636 ) | 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",
as defined in Section 2 of the Service Use | 24 | | Tax Act, of the tangible
personal property. For the purpose of | 25 | | computing this tax, in no event
shall the "selling price" be |
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| 1 | | less than the cost price to the serviceman of
the tangible | 2 | | personal property transferred. The selling price of each item
| 3 | | of tangible personal property transferred as an incident of a | 4 | | sale of
service may be shown as a distinct and separate item on | 5 | | the serviceman's
billing to the service customer. If the | 6 | | selling price is not so shown, the
selling price of the | 7 | | tangible personal property is deemed to be 50% of the
| 8 | | serviceman's entire billing to the service customer. When, | 9 | | however, a
serviceman contracts to design, develop, and produce | 10 | | special order machinery or
equipment, the tax imposed by this | 11 | | Act shall be based on the serviceman's
cost price of the | 12 | | tangible personal property transferred incident to the
| 13 | | completion of the contract.
| 14 | | Beginning on July 1, 2000 and through December 31, 2000, | 15 | | with respect to
motor fuel, as defined in Section 1.1 of the | 16 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 17 | | the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
| 18 | | With respect to gasohol, as defined in the Use Tax Act, the | 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 |
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| 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
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| 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, the ID/DD Community Care Act, the | 18 | | Specialized Mental Health Rehabilitation Act, or the
Child Care | 19 | | Act of 1969. The tax shall
also be imposed at the rate of 1% on | 20 | | food for human consumption that is
to be consumed off the
| 21 | | premises where it is sold (other than alcoholic beverages, soft | 22 | | drinks, and
food that has been prepared for immediate | 23 | | consumption and is not
otherwise included in this paragraph) | 24 | | and prescription and
nonprescription medicines, drugs, medical | 25 | | appliances, modifications to a motor
vehicle for the purpose of | 26 | | rendering it usable by a disabled person, and
insulin, urine |
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| 1 | | testing materials, syringes, and needles used by diabetics, for
| 2 | | human use. For the purposes of this Section, until September 1, | 3 | | 2009: the term "soft drinks" means any
complete, finished, | 4 | | ready-to-use, non-alcoholic drink, whether carbonated or
not, | 5 | | including but not limited to soda water, cola, fruit juice, | 6 | | vegetable
juice, carbonated water, and all other preparations | 7 | | commonly known as soft
drinks of whatever kind or description | 8 | | that are contained in any closed or
sealed can, carton, or | 9 | | container, regardless of size; but "soft drinks" does not
| 10 | | include coffee, tea, non-carbonated water, infant formula, | 11 | | milk or milk
products as defined in the Grade A Pasteurized | 12 | | Milk and Milk Products Act, or
drinks containing 50% or more | 13 | | natural fruit or vegetable juice.
| 14 | | Notwithstanding any other provisions of this
Act, | 15 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 16 | | beverages that contain natural or artificial sweeteners. "Soft | 17 | | drinks" do not include beverages that contain milk or milk | 18 | | products, soy, rice or similar milk substitutes, or greater | 19 | | than 50% of vegetable or fruit juice by volume. | 20 | | Until September August 1, 2009, and notwithstanding any | 21 | | other provisions of this Act, "food for human consumption
that | 22 | | is to be consumed off the premises where it is sold" includes | 23 | | all food
sold through a vending machine, except soft drinks and | 24 | | food products that are
dispensed hot from a vending machine, | 25 | | regardless of the location of the vending
machine. Beginning | 26 | | September August 1, 2009, and notwithstanding any other |
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| 1 | | provisions of this Act, "food for human consumption that is to | 2 | | be consumed off the premises where it is sold" includes all | 3 | | food sold through a vending machine, except soft drinks, candy, | 4 | | and food products that are dispensed hot from a vending | 5 | | machine, regardless of the location of the vending machine.
| 6 | | Notwithstanding any other provisions of this
Act, | 7 | | beginning September 1, 2009, "food for human consumption that | 8 | | is to be consumed off the premises where
it is sold" does not | 9 | | include candy. For purposes of this Section, "candy" means a | 10 | | preparation of sugar, honey, or other natural or artificial | 11 | | sweeteners in combination with chocolate, fruits, nuts or other | 12 | | ingredients or flavorings in the form of bars, drops, or | 13 | | pieces. "Candy" does not include any preparation that contains | 14 | | flour or requires refrigeration. | 15 | | Notwithstanding any other provisions of this
Act, | 16 | | beginning September 1, 2009, "nonprescription medicines and | 17 | | drugs" does not include grooming and hygiene products. For | 18 | | purposes of this Section, "grooming and hygiene products" | 19 | | includes, but is not limited to, soaps and cleaning solutions, | 20 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 21 | | lotions and screens, unless those products are available by | 22 | | prescription only, regardless of whether the products meet the | 23 | | definition of "over-the-counter-drugs". For the purposes of | 24 | | this paragraph, "over-the-counter-drug" means a drug for human | 25 | | use that contains a label that identifies the product as a drug | 26 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" |
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| 1 | | label includes: | 2 | | (A) A "Drug Facts" panel; or | 3 | | (B) A statement of the "active ingredient(s)" with a | 4 | | list of those ingredients contained in the compound, | 5 | | substance or preparation. | 6 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | 7 | | eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38, | 8 | | eff. 6-28-11; 97-227, eff. 1-1-12; revised 9-12-11.) | 9 | | (Text of Section after amendment by P.A. 97-636 ) | 10 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this | 11 | | Section,
the tax imposed by this Act is at the rate of 6.25% of | 12 | | the "selling price",
as defined in Section 2 of the Service Use | 13 | | Tax Act, of the tangible
personal property. For the purpose of | 14 | | computing this tax, in no event
shall the "selling price" be | 15 | | less than the cost price to the serviceman of
the tangible | 16 | | personal property transferred. The selling price of each item
| 17 | | of tangible personal property transferred as an incident of a | 18 | | sale of
service may be shown as a distinct and separate item on | 19 | | the serviceman's
billing to the service customer. If the | 20 | | selling price is not so shown, the
selling price of the | 21 | | tangible personal property is deemed to be 50% of the
| 22 | | serviceman's entire billing to the service customer. When, | 23 | | however, a
serviceman contracts to design, develop, and produce | 24 | | special order machinery or
equipment, the tax imposed by this | 25 | | Act shall be based on the serviceman's
cost price of the |
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| 1 | | tangible personal property transferred incident to the
| 2 | | completion of the contract.
| 3 | | Beginning on July 1, 2000 and through December 31, 2000, | 4 | | with respect to
motor fuel, as defined in Section 1.1 of the | 5 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 6 | | the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
| 7 | | With respect to gasohol, as defined in the Use Tax Act, the | 8 | | tax imposed
by this Act shall apply to (i) 70% of the cost | 9 | | price of property
transferred as
an incident to the sale of | 10 | | service on or after January 1, 1990, and before
July 1, 2003, | 11 | | (ii) 80% of the selling price of property transferred as an
| 12 | | incident to the sale of service on or after July
1, 2003 and on | 13 | | or before December 31, 2018, and (iii) 100%
of
the cost price
| 14 | | thereafter.
If, at any time, however, the tax under this Act on | 15 | | sales of gasohol, as
defined in
the Use Tax Act, is imposed at | 16 | | the rate of 1.25%, then the
tax imposed by this Act applies to | 17 | | 100% of the proceeds of sales of gasohol
made during that time.
| 18 | | With respect to majority blended ethanol fuel, as defined | 19 | | in the Use Tax Act,
the
tax
imposed by this Act does not apply | 20 | | to the selling price of property transferred
as an incident to | 21 | | the sale of service on or after July 1, 2003 and on or before
| 22 | | December 31, 2018 but applies to 100% of the selling price | 23 | | thereafter.
| 24 | | With respect to biodiesel blends, as defined in the Use Tax | 25 | | Act, with no less
than 1% and no
more than 10% biodiesel, the | 26 | | tax imposed by this Act
applies to (i) 80% of the selling price |
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| 1 | | of property transferred as an incident
to the sale of service | 2 | | on or after July 1, 2003 and on or before December 31, 2018
and | 3 | | (ii) 100% of the proceeds of the selling price
thereafter.
If, | 4 | | at any time, however, the tax under this Act on sales of | 5 | | biodiesel blends,
as
defined in the Use Tax Act, with no less | 6 | | than 1% and no more than 10% biodiesel
is imposed at the rate | 7 | | of 1.25%, then the
tax imposed by this Act applies to 100% of | 8 | | the proceeds of sales of biodiesel
blends with no less than 1% | 9 | | and no more than 10% biodiesel
made
during that time.
| 10 | | With respect to 100% biodiesel, as defined in the Use Tax | 11 | | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| 12 | | more than 10% but no more than 99% biodiesel material, the tax | 13 | | imposed by this
Act
does not apply to the proceeds of the | 14 | | selling price of property transferred
as an incident to the | 15 | | sale of service on or after July 1, 2003 and on or before
| 16 | | December 31, 2018 but applies to 100% of the selling price | 17 | | 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 incident to |
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| 1 | | 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, the ID/DD Community Care Act, the | 7 | | Specialized Mental Health Rehabilitation Act, or the
Child Care | 8 | | Act of 1969. The tax shall
also be imposed at the rate of 1% on | 9 | | food for human consumption that is
to be consumed off the
| 10 | | premises where it is sold (other than alcoholic beverages, soft | 11 | | drinks, and
food that has been prepared for immediate | 12 | | consumption and is not
otherwise included in this paragraph) | 13 | | and prescription and
nonprescription medicines, drugs, medical | 14 | | appliances, modifications to a motor
vehicle for the purpose of | 15 | | rendering it usable by a disabled person, and
insulin, urine | 16 | | testing materials, syringes, and needles used by diabetics, for
| 17 | | human use. For the purposes of this Section, until September 1, | 18 | | 2009: the term "soft drinks" means any
complete, finished, | 19 | | ready-to-use, non-alcoholic drink, whether carbonated or
not, | 20 | | including but not limited to soda water, cola, fruit juice, | 21 | | vegetable
juice, carbonated water, and all other preparations | 22 | | commonly known as soft
drinks of whatever kind or description | 23 | | that are contained in any closed or
sealed can, carton, or | 24 | | container, regardless of size; but "soft drinks" does not
| 25 | | include coffee, tea, non-carbonated water, infant formula, | 26 | | milk or milk
products as defined in the Grade A Pasteurized |
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| 1 | | Milk and Milk Products Act, or
drinks containing 50% or more | 2 | | natural fruit or vegetable juice.
| 3 | | Notwithstanding any other provisions of this
Act, | 4 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 5 | | beverages that contain natural or artificial sweeteners. "Soft | 6 | | drinks" do not include beverages that contain milk or milk | 7 | | products, soy, rice or similar milk substitutes, or greater | 8 | | than 50% of vegetable or fruit juice by volume. | 9 | | Until September August 1, 2009, and notwithstanding any | 10 | | other provisions of this Act, "food for human consumption
that | 11 | | is to be consumed off the premises where it is sold" includes | 12 | | all food
sold through a vending machine, except soft drinks and | 13 | | food products that are
dispensed hot from a vending machine, | 14 | | regardless of the location of the vending
machine. Beginning | 15 | | September August 1, 2009, and notwithstanding any other | 16 | | provisions of this Act, "food for human consumption that is to | 17 | | be consumed off the premises where it is sold" includes all | 18 | | food sold through a vending machine, except soft drinks, candy, | 19 | | and food products that are dispensed hot from a vending | 20 | | machine, regardless of the location of the vending machine.
| 21 | | Notwithstanding any other provisions of this
Act, | 22 | | beginning September 1, 2009, "food for human consumption that | 23 | | is to be consumed off the premises where
it is sold" does not | 24 | | include candy. For purposes of this Section, "candy" means a | 25 | | preparation of sugar, honey, or other natural or artificial | 26 | | sweeteners in combination with chocolate, fruits, nuts or other |
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| 1 | | ingredients or flavorings in the form of bars, drops, or | 2 | | pieces. "Candy" does not include any preparation that contains | 3 | | flour or requires refrigeration. | 4 | | Notwithstanding any other provisions of this
Act, | 5 | | beginning September 1, 2009, "nonprescription medicines and | 6 | | drugs" does not include grooming and hygiene products. For | 7 | | purposes of this Section, "grooming and hygiene products" | 8 | | includes, but is not limited to, soaps and cleaning solutions, | 9 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 10 | | lotions and screens, unless those products are available by | 11 | | prescription only, regardless of whether the products meet the | 12 | | definition of "over-the-counter-drugs". For the purposes of | 13 | | this paragraph, "over-the-counter-drug" means a drug for human | 14 | | use that contains a label that identifies the product as a drug | 15 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 16 | | label includes: | 17 | | (A) A "Drug Facts" panel; or | 18 | | (B) A statement of the "active ingredient(s)" with a | 19 | | list of those ingredients contained in the compound, | 20 | | substance or preparation. | 21 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | 22 | | eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38, | 23 | | eff. 6-28-11; 97-227, eff. 1-1-12; 97-636, eff. 6-1-12.) | 24 | | Section 25. The Retailers' Occupation Tax Act is amended by | 25 | | changing Sections 2-10, 2-51, and 5 as follows:
|
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| 1 | | (35 ILCS 120/2-10)
| 2 | | (Text of Section before amendment by P.A. 97-636 ) | 3 | | Sec. 2-10. Rate of tax. Unless otherwise provided in this | 4 | | Section,
the tax imposed by this Act is at the rate of 6.25% of | 5 | | gross receipts
from sales of tangible personal property made in | 6 | | the course of business.
| 7 | | Beginning on July 1, 2000 and through December 31, 2000, | 8 | | with respect to
motor fuel, as defined in Section 1.1 of the | 9 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 10 | | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| 11 | | Beginning on August 6, 2010 through August 15, 2010, with | 12 | | respect to sales tax holiday items as defined in Section 2-8 of | 13 | | this Act, the
tax is imposed at the rate of 1.25%. | 14 | | Within 14 days after the effective date of this amendatory | 15 | | Act of the 91st
General Assembly, each retailer of motor fuel | 16 | | and gasohol shall cause the
following notice to be posted in a | 17 | | prominently visible place on each retail
dispensing device that | 18 | | is used to dispense motor
fuel or gasohol in the State of | 19 | | Illinois: "As of July 1, 2000, the State of
Illinois has | 20 | | eliminated the State's share of sales tax on motor fuel and
| 21 | | gasohol through December 31, 2000. The price on this pump | 22 | | should reflect the
elimination of the tax." The notice shall be | 23 | | printed in bold print on a sign
that is no smaller than 4 | 24 | | inches by 8 inches. The sign shall be clearly
visible to | 25 | | customers. Any retailer who fails to post or maintain a |
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| 1 | | required
sign through December 31, 2000 is guilty of a petty | 2 | | offense for which the fine
shall be $500 per day per each | 3 | | retail premises where a violation occurs.
| 4 | | With respect to gasohol, as defined in the Use Tax Act, the | 5 | | tax imposed
by this Act applies to (i) 70% of the proceeds of | 6 | | sales made on or after
January 1, 1990, and before July 1, | 7 | | 2003, (ii) 80% of the proceeds of
sales made on or after July | 8 | | 1, 2003 and on or before December 31,
2013, and (iii) 100% of | 9 | | the proceeds of sales
made thereafter.
If, at any time, | 10 | | however, the tax under this Act on sales of gasohol, as
defined | 11 | | in
the Use Tax Act, is imposed at the rate of 1.25%, then the
| 12 | | tax imposed by this Act applies to 100% of the proceeds of | 13 | | sales of gasohol
made during that time.
| 14 | | With respect to majority blended ethanol fuel, as defined | 15 | | in the Use Tax Act,
the
tax
imposed by this Act does not apply | 16 | | to the proceeds of sales made on or after
July 1, 2003 and on or | 17 | | before December 31, 2013 but applies to 100% of the
proceeds of | 18 | | sales made thereafter.
| 19 | | With respect to biodiesel blends, as defined in the Use Tax | 20 | | Act, with no less
than 1% and no
more than 10% biodiesel, the | 21 | | tax imposed by this Act
applies to (i) 80% of the proceeds of | 22 | | sales made on or after July 1, 2003
and on or before December | 23 | | 31, 2013 and (ii) 100% of the
proceeds of sales made | 24 | | thereafter.
If, at any time, however, the tax under this Act on | 25 | | sales of biodiesel blends,
as
defined in the Use Tax Act, with | 26 | | no less than 1% and no more than 10% biodiesel
is imposed at |
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| 1 | | the rate of 1.25%, then the
tax imposed by this Act applies to | 2 | | 100% of the proceeds of sales of biodiesel
blends with no less | 3 | | than 1% and no more than 10% biodiesel
made
during that time.
| 4 | | With respect to 100% biodiesel, as defined in the Use Tax | 5 | | Act, and biodiesel
blends, as defined in the Use Tax Act, 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, until September 1, 2009: the term "soft drinks" | 20 | | means any complete, finished, ready-to-use,
non-alcoholic | 21 | | drink, whether carbonated or not, including but not limited to
| 22 | | soda water, cola, fruit juice, vegetable juice, carbonated | 23 | | water, and all other
preparations commonly known as soft drinks | 24 | | of whatever kind or description that
are contained in any | 25 | | closed or sealed bottle, can, carton, or container,
regardless | 26 | | of size; but "soft drinks" does not include coffee, tea, |
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| 1 | | non-carbonated
water, infant formula, milk or milk products as | 2 | | defined in the Grade A
Pasteurized Milk and Milk Products Act, | 3 | | or drinks containing 50% or more
natural fruit or vegetable | 4 | | juice.
| 5 | | Notwithstanding any other provisions of this
Act, | 6 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 7 | | beverages that contain natural or artificial sweeteners. "Soft | 8 | | drinks" do not include beverages that contain milk or milk | 9 | | products, soy, rice or similar milk substitutes, or greater | 10 | | than 50% of vegetable or fruit juice by volume. | 11 | | Until September August 1, 2009, and notwithstanding any | 12 | | other provisions of this
Act, "food for human consumption that | 13 | | is to be consumed off the premises where
it is sold" includes | 14 | | all food sold through a vending machine, except soft
drinks and | 15 | | food products that are dispensed hot from a vending machine,
| 16 | | regardless of the location of the vending machine. Beginning | 17 | | September August 1, 2009, and notwithstanding any other | 18 | | provisions of this Act, "food for human consumption that is to | 19 | | be consumed off the premises where it is sold" includes all | 20 | | food sold through a vending machine, except soft drinks, candy, | 21 | | and food products that are dispensed hot from a vending | 22 | | machine, regardless of the location of the vending machine.
| 23 | | Notwithstanding any other provisions of this
Act, | 24 | | beginning September 1, 2009, "food for human consumption that | 25 | | is to be consumed off the premises where
it is sold" does not | 26 | | include candy. For purposes of this Section, "candy" means a |
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| 1 | | preparation of sugar, honey, or other natural or artificial | 2 | | sweeteners in combination with chocolate, fruits, nuts or other | 3 | | ingredients or flavorings in the form of bars, drops, or | 4 | | pieces. "Candy" does not include any preparation that contains | 5 | | flour or requires refrigeration. | 6 | | Notwithstanding any other provisions of this
Act, | 7 | | beginning September 1, 2009, "nonprescription medicines and | 8 | | drugs" does not include grooming and hygiene products. For | 9 | | purposes of this Section, "grooming and hygiene products" | 10 | | includes, but is not limited to, soaps and cleaning solutions, | 11 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 12 | | lotions and screens, unless those products are available by | 13 | | prescription only, regardless of whether the products meet the | 14 | | definition of "over-the-counter-drugs". For the purposes of | 15 | | this paragraph, "over-the-counter-drug" means a drug for human | 16 | | use that contains a label that identifies the product as a drug | 17 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 18 | | label includes: | 19 | | (A) A "Drug Facts" panel; or | 20 | | (B) A statement of the "active ingredient(s)" with a | 21 | | list of those ingredients contained in the compound, | 22 | | substance or preparation.
| 23 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | 24 | | eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10.) | 25 | | (Text of Section after amendment by P.A. 97-636 ) |
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| 1 | | Sec. 2-10. Rate of tax. Unless otherwise provided in this | 2 | | Section,
the tax imposed by this Act is at the rate of 6.25% of | 3 | | gross receipts
from sales of tangible personal property made in | 4 | | the course of business.
| 5 | | Beginning on July 1, 2000 and through December 31, 2000, | 6 | | with respect to
motor fuel, as defined in Section 1.1 of the | 7 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 8 | | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| 9 | | Beginning on August 6, 2010 through August 15, 2010, with | 10 | | respect to sales tax holiday items as defined in Section 2-8 of | 11 | | this Act, the
tax is imposed at the rate of 1.25%. | 12 | | Within 14 days after the effective date of this amendatory | 13 | | Act of the 91st
General Assembly, each retailer of motor fuel | 14 | | and gasohol shall cause the
following notice to be posted in a | 15 | | prominently visible place on each retail
dispensing device that | 16 | | is used to dispense motor
fuel or gasohol in the State of | 17 | | Illinois: "As of July 1, 2000, the State of
Illinois has | 18 | | eliminated the State's share of sales tax on motor fuel and
| 19 | | gasohol through December 31, 2000. The price on this pump | 20 | | should reflect the
elimination of the tax." The notice shall be | 21 | | printed in bold print on a sign
that is no smaller than 4 | 22 | | inches by 8 inches. The sign shall be clearly
visible to | 23 | | customers. Any retailer who fails to post or maintain a | 24 | | required
sign through December 31, 2000 is guilty of a petty | 25 | | offense for which the fine
shall be $500 per day per each | 26 | | retail premises where a violation occurs.
|
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| 1 | | With respect to gasohol, as defined in the Use Tax Act, the | 2 | | tax imposed
by this Act applies to (i) 70% of the proceeds of | 3 | | sales made on or after
January 1, 1990, and before July 1, | 4 | | 2003, (ii) 80% of the proceeds of
sales made on or after July | 5 | | 1, 2003 and on or before December 31,
2018, and (iii) 100% of | 6 | | the proceeds of sales
made thereafter.
If, at any time, | 7 | | however, the tax under this Act on sales of gasohol, as
defined | 8 | | in
the Use Tax Act, is imposed at the rate of 1.25%, then the
| 9 | | tax imposed by this Act applies to 100% of the proceeds of | 10 | | sales of gasohol
made during that time.
| 11 | | With respect to majority blended ethanol fuel, as defined | 12 | | in the Use Tax Act,
the
tax
imposed by this Act does not apply | 13 | | to the proceeds of sales made on or after
July 1, 2003 and on or | 14 | | before December 31, 2018 but applies to 100% of the
proceeds of | 15 | | sales made thereafter.
| 16 | | With respect to biodiesel blends, as defined in the Use Tax | 17 | | Act, with no less
than 1% and no
more than 10% biodiesel, the | 18 | | tax imposed by this Act
applies to (i) 80% of the proceeds of | 19 | | sales made on or after July 1, 2003
and on or before December | 20 | | 31, 2018 and (ii) 100% of the
proceeds of sales made | 21 | | thereafter.
If, at any time, however, the tax under this Act on | 22 | | sales of biodiesel blends,
as
defined in the Use Tax Act, with | 23 | | no less than 1% and no more than 10% biodiesel
is imposed at | 24 | | the rate of 1.25%, then the
tax imposed by this Act applies to | 25 | | 100% of the proceeds of sales of biodiesel
blends with no less | 26 | | than 1% and no more than 10% biodiesel
made
during that time.
|
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| 1 | | With respect to 100% biodiesel, as defined in the Use Tax | 2 | | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| 3 | | more than 10% but no more than 99% biodiesel, the tax imposed | 4 | | by this Act
does not apply to the proceeds of sales made on or | 5 | | after July 1, 2003
and on or before December 31, 2018 but | 6 | | applies to 100% of the
proceeds of sales made thereafter.
| 7 | | With respect to food for human consumption that is to be | 8 | | consumed off the
premises where it is sold (other than | 9 | | alcoholic beverages, soft drinks, and
food that has been | 10 | | prepared for immediate consumption) and prescription and
| 11 | | nonprescription medicines, drugs, medical appliances, | 12 | | modifications to a motor
vehicle for the purpose of rendering | 13 | | it usable by a disabled person, and
insulin, urine testing | 14 | | materials, syringes, and needles used by diabetics, for
human | 15 | | use, the tax is imposed at the rate of 1%. For the purposes of | 16 | | this
Section, until September 1, 2009: 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; but "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 |
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| 1 | | juice.
| 2 | | Notwithstanding any other provisions of this
Act, | 3 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 4 | | beverages that contain natural or artificial sweeteners. "Soft | 5 | | drinks" do not include beverages that contain milk or milk | 6 | | products, soy, rice or similar milk substitutes, or greater | 7 | | than 50% of vegetable or fruit juice by volume. | 8 | | Until September August 1, 2009, and notwithstanding any | 9 | | other provisions of this
Act, "food for human consumption that | 10 | | is to be consumed off the premises where
it is sold" includes | 11 | | all food sold through a vending machine, except soft
drinks and | 12 | | food products that are dispensed hot from a vending machine,
| 13 | | regardless of the location of the vending machine. Beginning | 14 | | September August 1, 2009, and notwithstanding any other | 15 | | provisions of this Act, "food for human consumption that is to | 16 | | be consumed off the premises where it is sold" includes all | 17 | | food sold through a vending machine, except soft drinks, candy, | 18 | | and food products that are dispensed hot from a vending | 19 | | machine, regardless of the location of the vending machine.
| 20 | | Notwithstanding any other provisions of this
Act, | 21 | | beginning September 1, 2009, "food for human consumption that | 22 | | is to be consumed off the premises where
it is sold" does not | 23 | | include candy. For purposes of this Section, "candy" means a | 24 | | preparation of sugar, honey, or other natural or artificial | 25 | | sweeteners in combination with chocolate, fruits, nuts or other | 26 | | ingredients or flavorings in the form of bars, drops, or |
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| 1 | | pieces. "Candy" does not include any preparation that contains | 2 | | flour or requires refrigeration. | 3 | | Notwithstanding any other provisions of this
Act, | 4 | | beginning September 1, 2009, "nonprescription medicines and | 5 | | drugs" does not include grooming and hygiene products. For | 6 | | purposes of this Section, "grooming and hygiene products" | 7 | | includes, but is not limited to, soaps and cleaning solutions, | 8 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 9 | | lotions and screens, unless those products are available by | 10 | | prescription only, regardless of whether the products meet the | 11 | | definition of "over-the-counter-drugs". For the purposes of | 12 | | this paragraph, "over-the-counter-drug" means a drug for human | 13 | | use that contains a label that identifies the product as a drug | 14 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 15 | | label 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 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | 21 | | eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10; | 22 | | 97-636, eff. 6-1-12.)
| 23 | | (35 ILCS 120/2-51)
| 24 | | Sec. 2-51. Motor vehicles; trailers; use as rolling stock | 25 | | definition. |
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| 1 | | (a) Through
June 30, 2003, "use
as
rolling stock moving
in
| 2 | | interstate commerce" in
paragraphs (12) and (13) of Section 2-5 | 3 | | means for motor vehicles, as defined in
Section 1-146 of the | 4 | | Illinois Vehicle Code, and trailers, as defined in Section
| 5 | | 1-209 of the Illinois Vehicle Code, when on 15 or more | 6 | | occasions in a
12-month period the motor vehicle and trailer | 7 | | has carried persons or property
for
hire in
interstate | 8 | | commerce, even just between points in Illinois, if the motor | 9 | | vehicle
and trailer transports persons whose journeys or | 10 | | property whose shipments
originate or terminate outside | 11 | | Illinois. This
definition applies to all
property purchased for | 12 | | the purpose of being attached to those motor vehicles or
| 13 | | trailers as a part thereof.
| 14 | | (b) On and after July 1, 2003 and through June 30, 2004, | 15 | | "use as rolling stock moving in interstate
commerce" in
| 16 | | paragraphs (12) and (13) of Section 2-5 occurs for motor | 17 | | vehicles, as defined
in Section 1-146 of the Illinois Vehicle | 18 | | Code, when during a 12-month
period the
rolling stock has | 19 | | carried persons or property for hire in interstate commerce
for | 20 | | 51% of
its total trips and transports persons whose journeys or | 21 | | property whose
shipments
originate or terminate outside | 22 | | Illinois. Trips that are only between points in
Illinois shall
| 23 | | not be counted as interstate trips when calculating whether the | 24 | | tangible
personal property
qualifies for the exemption but such | 25 | | trips shall be included in total trips
taken.
| 26 | | (c) Beginning July 1, 2004, "use as rolling stock moving in |
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| 1 | | interstate commerce" in paragraphs (12) and (13) of Section 2-5 | 2 | | occurs for motor vehicles, as defined in Section 1-146 of the | 3 | | Illinois Vehicle Code, when during a 12-month period the | 4 | | rolling stock has carried persons or property for hire in | 5 | | interstate commerce for greater than 50% of its total trips for | 6 | | that period or for greater than 50% of its total miles for that | 7 | | period. The person claiming the exemption shall make an | 8 | | election at the time of purchase to use either the trips or | 9 | | mileage method. Persons who purchased motor vehicles prior to | 10 | | July 1, 2004 shall make an election to use either the trips or | 11 | | mileage method and document that election in their books and | 12 | | records. If no election is made under this subsection to use | 13 | | the trips or mileage method, the person shall be deemed to have | 14 | | chosen the mileage method. Any election to use either the trips | 15 | | or mileage method will remain in effect for that motor vehicle | 16 | | for any period for which the Department may issue a notice of | 17 | | tax liability under this Act. | 18 | | For purposes of determining qualifying trips or miles, | 19 | | motor vehicles that carry persons or property for hire, even | 20 | | just between points in Illinois, will be considered used for | 21 | | hire in interstate commerce if the motor vehicle transports | 22 | | persons whose journeys or property whose shipments originate or | 23 | | terminate outside Illinois. The exemption for motor vehicles
| 24 | | used as rolling stock moving in interstate commerce may be
| 25 | | claimed only for the following vehicles: (i) motor vehicles | 26 | | whose gross vehicle weight
rating exceeds 16,000 pounds; and |
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| 1 | | (ii) limousines, as defined in Section 1-139.1 of the Illinois | 2 | | Vehicle Code. This definition applies to all property purchased | 3 | | for the purpose of being attached to those motor vehicles as a | 4 | | part thereof. | 5 | | (d) Beginning July 1, 2004, "use as rolling stock moving in | 6 | | interstate commerce" in paragraphs (12) and (13) of Section 2-5 | 7 | | occurs for trailers, as defined in Section 1-209 of the | 8 | | Illinois Vehicle Code, semitrailers as defined in Section 1-187 | 9 | | of the Illinois Vehicle Code, and pole trailers as defined in | 10 | | Section 1-161 of the Illinois Vehicle Code, when during a | 11 | | 12-month period the rolling stock has carried persons or | 12 | | property for hire in interstate commerce for greater than 50% | 13 | | of its total trips for that period or for greater than 50% of | 14 | | its total miles for that period. The person claiming the | 15 | | exemption for a trailer or trailers that will not be dedicated | 16 | | to a motor vehicle or group of motor vehicles shall make an | 17 | | election at the time of purchase to use either the trips or | 18 | | mileage method. Persons who purchased trailers prior to July 1, | 19 | | 2004 that are not dedicated to a motor vehicle or group of | 20 | | motor vehicles shall make an election to use either the trips | 21 | | or mileage method and document that election in their books and | 22 | | records. If no election is made under this subsection to use | 23 | | the trips or mileage method, the person shall be deemed to have | 24 | | chosen the mileage method. Any election to use either the trips | 25 | | or mileage method will remain in effect for that trailer for | 26 | | any period for which the Department may issue a notice of tax |
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| 1 | | liability under this Act. | 2 | | For purposes of determining qualifying trips or miles, | 3 | | trailers, semitrailers, or pole trailers that carry property | 4 | | for hire, even just between points in Illinois, will be | 5 | | considered used for hire in interstate commerce if the | 6 | | trailers, semitrailers, or pole trailers transport property | 7 | | whose shipments originate or terminate outside Illinois. This | 8 | | definition applies to all property purchased for the purpose of | 9 | | being attached to those trailers, semitrailers, or pole | 10 | | trailers as a part thereof. In lieu of a person providing | 11 | | documentation regarding the qualifying use of each individual | 12 | | trailer, semitrailer, or pole trailer, that person may document | 13 | | such qualifying use by providing documentation of the | 14 | | following: | 15 | | (1) If a trailer, semitrailer, or pole trailer is | 16 | | dedicated to a motor vehicle that qualifies as rolling | 17 | | stock moving in interstate commerce under subsection (c) of | 18 | | this Section, then that trailer, semitrailer, or pole | 19 | | trailer qualifies as rolling stock moving in interstate | 20 | | commerce under this subsection. | 21 | | (2) If a trailer, semitrailer, or pole trailer is | 22 | | dedicated to a group of motor vehicles that all qualify as | 23 | | rolling stock moving in interstate commerce under | 24 | | subsection (c) of this Section, then that trailer, | 25 | | semitrailer, or pole trailer qualifies as rolling stock | 26 | | moving in interstate commerce under this subsection. |
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| 1 | | (3) If one or more trailers, semitrailers, or pole | 2 | | trailers are dedicated to a group of motor vehicles and not | 3 | | all of those motor vehicles in that group qualify as | 4 | | rolling stock moving in interstate commerce under | 5 | | subsection (c) of this Section, then the percentage of | 6 | | those trailers, semitrailers, or pole trailers that | 7 | | qualifies as rolling stock moving in interstate commerce | 8 | | under this subsection is equal to the percentage of those | 9 | | motor vehicles in that group that qualify as rolling stock | 10 | | moving in interstate commerce under subsection (c) of this | 11 | | Section to which those trailers, semitrailers, or pole | 12 | | trailers are dedicated. However, to determine the | 13 | | qualification for the exemption provided under this item | 14 | | (3), the mathematical application of the qualifying | 15 | | percentage to one or more trailers, semitrailers, or pole | 16 | | trailers under this subpart shall not be allowed as to any | 17 | | fraction of a trailer, semitrailer, or pole trailer.
| 18 | | (e) Beginning July 1, 2012, "use as rolling stock moving in | 19 | | interstate commerce" in paragraphs (12) and (13) of Section 2-5 | 20 | | occurs for aircraft and watercraft when, during a 12-month | 21 | | period, the rolling stock has carried persons or property for | 22 | | hire in interstate commerce for greater than 50% of its total | 23 | | trips for that period or for greater than 50% of its total | 24 | | miles for that period. The person claiming the exemption shall | 25 | | make an election at the time of purchase to use either the | 26 | | trips or mileage method. Persons who purchased aircraft or |
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| 1 | | watercraft prior to July 1, 2012 shall make an election to use | 2 | | either the trips or mileage method and document that election | 3 | | in their books and records. If no election is made under this | 4 | | subsection to use the trips or mileage method, the person shall | 5 | | be deemed to have chosen the mileage method. For aircraft, | 6 | | flight hours may be used in lieu of recording miles in | 7 | | determining whether the aircraft meets the mileage test in this | 8 | | subsection. For watercraft, nautical miles or trip hours may be | 9 | | used in lieu of recording miles in determining whether the | 10 | | watercraft meets the mileage test in this subsection. | 11 | | (f) Any election to use either the trips or mileage method | 12 | | made under the provisions of subsections (c), (d), or (e) of | 13 | | this Section will remain in effect for the life of that item. | 14 | | (Source: P.A. 95-528, eff. 8-28-07.)
| 15 | | (35 ILCS 120/5) (from Ch. 120, par. 444)
| 16 | | Sec. 5.
In case any person engaged in the business of | 17 | | selling tangible
personal property at retail fails to file a | 18 | | return when and as herein
required, but thereafter, prior to | 19 | | the Department's issuance of a notice
of tax liability under | 20 | | this Section, files a return and pays the tax, he
shall also | 21 | | pay a penalty in an amount determined in accordance with | 22 | | Section
3-3 of the Uniform Penalty and Interest Act.
| 23 | | In case any person engaged in the business of selling | 24 | | tangible
personal property at retail files the return at the | 25 | | time required by
this Act but fails to pay the tax, or any part |
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| 1 | | thereof, when due, a penalty
in an amount determined in | 2 | | accordance with Section 3-3 of the Uniform
Penalty and Interest | 3 | | Act shall be added thereto.
| 4 | | In case any person engaged in the business of selling | 5 | | tangible
personal property at retail fails to file a return | 6 | | when and as herein
required, but thereafter, prior to the | 7 | | Department's issuance of a notice
of tax liability under this | 8 | | Section, files a return but fails to pay the
entire tax, a | 9 | | penalty in an amount determined in accordance with Section
3-3 | 10 | | of the Uniform Penalty and Interest Act shall be added thereto.
| 11 | | In case any person engaged in the business of selling | 12 | | tangible
personal property at retail fails to file a return, | 13 | | the Department shall
determine the amount of tax due from him | 14 | | according to its best judgment
and information, which amount so | 15 | | fixed by the Department shall be prima
facie correct and shall | 16 | | be prima facie evidence of the correctness of
the amount of tax | 17 | | due, as shown in such determination. In making any
such | 18 | | determination of tax due, it shall be permissible for the
| 19 | | Department to show a figure that represents the tax due for any | 20 | | given
period of 6 months instead of showing the amount of tax | 21 | | due for each
month separately. Proof of such determination by | 22 | | the Department may be
made at any hearing before the Department | 23 | | or in any legal proceeding by
a reproduced copy or computer | 24 | | print-out of the Department's record relating
thereto in the | 25 | | name of the Department under the certificate of the Director
of | 26 | | Revenue. If reproduced copies of the Department's records are |
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| 1 | | offered as
proof of such determination, the Director must | 2 | | certify that those copies
are true and exact copies of records | 3 | | on file with the Department. If computer
print-outs of the | 4 | | Department's records are offered as proof of such
| 5 | | determination, the Director must certify that those computer | 6 | | print-outs are
true and exact representations of records | 7 | | properly entered into standard
electronic computing equipment, | 8 | | in the regular course of the Department's
business, at or | 9 | | reasonably near the time of the occurrence of the facts
| 10 | | recorded, from trustworthy and reliable information. Such | 11 | | certified
reproduced copy or certified computer print-out | 12 | | shall, without further
proof, be admitted into evidence before | 13 | | the Department or in any legal
proceeding and shall be prima | 14 | | facie proof of the correctness of the amount
of tax due, as | 15 | | shown therein. The Department shall issue the taxpayer a
notice | 16 | | of tax liability for the amount of tax claimed by the | 17 | | Department to
be due, together with a penalty of 30% thereof.
| 18 | | However, where the failure to file any tax return required | 19 | | under this Act
on the date prescribed therefor (including any | 20 | | extensions thereof), is
shown to be unintentional and | 21 | | nonfraudulent and has not occurred in the 2
years immediately | 22 | | preceding the failure to file on the prescribed date or
is due | 23 | | to other reasonable cause the penalties imposed by this Act | 24 | | shall
not apply.
| 25 | | If such person or the legal representative of such person | 26 | | files,
within 60 days after such notice, a protest to such |
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| 1 | | notice of tax
liability and requests a hearing thereon, the | 2 | | Department shall give
notice to such person or the legal | 3 | | representative of such person of the
time and place fixed for | 4 | | such hearing, and shall hold a hearing in
conformity with the | 5 | | provisions of this Act, and pursuant thereto shall
issue a | 6 | | final assessment to such person or to the legal representative
| 7 | | of such person for the amount found to be due as a result of | 8 | | such hearing.
| 9 | | If a protest to the notice of tax liability and a request | 10 | | for a
hearing thereon is not filed within 60 days after such | 11 | | notice, such
notice of tax liability shall become final without | 12 | | the necessity of a
final assessment being issued and shall be | 13 | | deemed to be a final assessment.
| 14 | | After the issuance of a final assessment, or a notice of | 15 | | tax
liability which becomes final without the necessity of | 16 | | actually issuing
a final assessment as hereinbefore provided, | 17 | | the Department, at any time
before such assessment is reduced | 18 | | to judgment, may (subject to rules of
the Department) grant a | 19 | | rehearing (or grant departmental review and hold
an original | 20 | | hearing if no previous hearing in the matter has been held)
| 21 | | upon the application of the person aggrieved. Pursuant to such | 22 | | hearing
or rehearing, the Department shall issue a revised | 23 | | final assessment to
such person or his legal representative for | 24 | | the amount found to be due
as a result of such hearing or | 25 | | rehearing.
| 26 | | Except in case of failure to file a return, or with the |
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| 1 | | consent of the person
to whom the notice of tax liability is to | 2 | | be issued, no notice of tax liability
shall be issued on and | 3 | | after each July 1 and January 1 covering gross receipts
| 4 | | received during any month or period of time more than 3 years | 5 | | prior to such
July 1 and January 1, respectively, except that | 6 | | if a return is not filed at the
required time, no a notice of | 7 | | tax liability may be issued on and after each July 1 and | 8 | | January 1 for such return filed more than 3 years prior to such | 9 | | July 1 and January 1, respectively not later than 3 years
after | 10 | | the time the return is filed . The foregoing limitations upon | 11 | | the issuance
of a notice of tax liability shall not apply to | 12 | | the issuance of any such notice
with respect to any period of | 13 | | time prior thereto in cases where the Department
has, within | 14 | | the period of limitation then provided, notified a person of | 15 | | the
amount of tax computed even though the Department had not | 16 | | determined the amount
of tax due from such person in the manner | 17 | | required herein prior to the issuance
of such notice, but in no | 18 | | case shall the amount of any such notice of tax
liability for | 19 | | any period otherwise barred by this Act exceed for such period
| 20 | | the amount shown in the notice theretofore issued.
| 21 | | If, when a tax or penalty under this Act becomes due and | 22 | | payable, the
person alleged to be liable therefor is out of the | 23 | | State, the notice of
tax liability may be issued within the | 24 | | times herein limited after his
or her coming into or return to | 25 | | the State; and if, after the tax or penalty
under this Act | 26 | | becomes due and payable, the person alleged to be liable
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| 1 | | therefor departs from and remains out of the State, the time of | 2 | | his
or her absence is no part of the time limited for the | 3 | | issuance of the notice of
tax liability; but the foregoing | 4 | | provisions concerning absence from the
State shall not apply to | 5 | | any case in which, at the time when a tax or
penalty becomes | 6 | | due under this Act, the person allegedly liable therefor
is not | 7 | | a resident of this State.
| 8 | | The time limitation period on the Department's right to | 9 | | issue a
notice of tax liability shall not run during any period | 10 | | of time in which
the order of any court has the effect of | 11 | | enjoining or restraining the
Department from issuing the notice | 12 | | of tax liability.
| 13 | | In case of failure to pay the tax, or any portion thereof, | 14 | | or any
penalty provided for in this Act, or interest, when due, | 15 | | the Department may
bring suit to recover the amount of such | 16 | | tax, or portion thereof, or penalty
or interest; or, if the | 17 | | taxpayer has died or become a person under legal
disability, | 18 | | may file a claim therefor against his estate; provided that no | 19 | | such
suit with respect to any tax, or portion thereof, or | 20 | | penalty, or interest
shall be instituted more than 6 years | 21 | | after the date any proceedings in
court for review thereof have | 22 | | terminated or the time for the taking
thereof has expired | 23 | | without such proceedings being instituted, except
with the | 24 | | consent of the person from whom such tax or penalty or interest
| 25 | | is due; nor, except with such consent, shall such suit be | 26 | | instituted
more than 6 years after the date any return is filed |
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| 1 | | with the Department
in cases where the return constitutes the | 2 | | basis for the suit for unpaid
tax, or portion thereof, or | 3 | | penalty provided for in this Act, or
interest: Provided that | 4 | | the time limitation period on the Department's
right to bring | 5 | | any such suit shall not run during any period of time in
which | 6 | | the order of any court has the effect of enjoining or | 7 | | restraining
the Department from bringing such suit.
| 8 | | After the expiration of the period within which the person | 9 | | assessed
may file an action for judicial review under the | 10 | | Administrative Review Law
without such an action being filed, a | 11 | | certified copy of the final
assessment or revised final | 12 | | assessment of the Department may be filed
with the Circuit | 13 | | Court of the county in which the taxpayer has his
principal | 14 | | place of business, or of Sangamon County in those cases in
| 15 | | which the taxpayer does not have his principal place of | 16 | | business in this
State. The certified copy of the final | 17 | | assessment or revised final
assessment shall be accompanied by | 18 | | a certification which recites facts
that are sufficient to show | 19 | | that the Department complied with the
jurisdictional | 20 | | requirements of the Act in arriving at its final
assessment or | 21 | | its revised final assessment and that the taxpayer had his
| 22 | | opportunity for an administrative hearing and for judicial | 23 | | review,
whether he availed himself or herself of either or both | 24 | | of these opportunities
or not. If the court is satisfied that | 25 | | the Department complied with the
jurisdictional requirements | 26 | | of the Act in arriving at its final
assessment or its revised |
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| 1 | | final assessment and that the taxpayer had his
opportunity for | 2 | | an administrative hearing and for judicial review,
whether he | 3 | | availed himself of either or both of these opportunities or
| 4 | | not, the court shall render judgment in favor of the Department | 5 | | and
against the taxpayer for the amount shown to be due by the | 6 | | final
assessment or the revised final assessment, plus any | 7 | | interest which may
be due, and such judgment shall be entered | 8 | | in the judgment docket of the
court. Such judgment shall bear | 9 | | the rate of interest as set by the Uniform
Penalty and Interest | 10 | | Act, but otherwise shall have the same effect as other
| 11 | | judgments. The judgment may be enforced, and all laws | 12 | | applicable to sales
for the enforcement of a judgment shall be | 13 | | applicable to sales made under
such judgments. The Department | 14 | | shall file the certified copy of its
assessment, as herein | 15 | | provided, with the Circuit Court within 6 years after
such | 16 | | assessment becomes final except when the taxpayer consents in | 17 | | writing
to an extension of such filing period, and except that | 18 | | the time limitation
period on the Department's right to file | 19 | | the certified copy of its
assessment with the Circuit Court | 20 | | shall not run during any period of time
in which the order of | 21 | | any court has the effect of enjoining or restraining
the | 22 | | Department from filing such certified copy of its assessment | 23 | | with the
Circuit Court.
| 24 | | If, when the cause of action for a proceeding in court | 25 | | accrues
against a person, he or she is out of the State, the | 26 | | action may be commenced
within the times herein limited, after |
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| 1 | | his or her coming into or return to the
State; and if, after | 2 | | the cause of action accrues, he or she departs from and
remains | 3 | | out of the State, the time of his or her absence is no part of | 4 | | the time
limited for the commencement of the action; but the | 5 | | foregoing provisions
concerning absence from the State shall | 6 | | not apply to any case in which,
at the time the cause of action | 7 | | accrues, the party against whom the
cause of action accrues is | 8 | | not a resident of this State. The time within
which a court | 9 | | action is to be commenced by the Department hereunder
shall not | 10 | | run from the date the taxpayer files a petition in bankruptcy
| 11 | | under the Federal Bankruptcy Act until 30 days after notice of | 12 | | termination
or expiration of the automatic stay imposed by the | 13 | | Federal Bankruptcy Act.
| 14 | | No claim shall be filed against the estate of any deceased | 15 | | person or any
person under legal disability for any tax or | 16 | | penalty or part of either, or
interest, except in the manner | 17 | | prescribed and within the time limited by
the Probate Act of | 18 | | 1975, as amended.
| 19 | | The collection of tax or penalty or interest by any means | 20 | | provided
for herein shall not be a bar to any prosecution under | 21 | | this Act.
| 22 | | In addition to any penalty provided for in this Act, any | 23 | | amount of
tax which is not paid when due shall bear interest at | 24 | | the rate and in the
manner specified in Sections 3-2 and 3-9 of | 25 | | the Uniform Penalty and
Interest Act from the date when such | 26 | | tax becomes past due until such tax is
paid or a judgment |
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| 1 | | therefor is obtained by the Department. If the time for
making | 2 | | or completing an audit of a taxpayer's books and records is | 3 | | extended
with the taxpayer's consent, at the request of and for | 4 | | the convenience of
the Department, beyond the date on which the | 5 | | statute of limitations upon
the issuance of a notice of tax | 6 | | liability by the Department otherwise would
run, no interest | 7 | | shall accrue during the period of such extension or until
a | 8 | | Notice of Tax Liability is issued, whichever occurs first.
| 9 | | In addition to any other remedy provided by this Act, and | 10 | | regardless
of whether the Department is making or intends to | 11 | | make use of such other
remedy, where a corporation or limited | 12 | | liability company registered under
this Act violates the | 13 | | provisions of this Act or of any rule or regulation
promulgated | 14 | | thereunder, the Department may give notice to the Attorney | 15 | | General
of the identity of such a corporation or limited | 16 | | liability company and of the
violations committed by such a | 17 | | corporation or limited liability company, for
such action as is | 18 | | not already provided for by this Act and as the Attorney
| 19 | | General may deem appropriate.
| 20 | | If the Department determines that an amount of tax or | 21 | | penalty or interest
was incorrectly assessed, whether as the | 22 | | result of a mistake of fact or an
error of law, the Department | 23 | | shall waive the amount of tax or penalty or
interest that | 24 | | accrued due to the incorrect assessment.
| 25 | | (Source: P.A. 96-1383, eff. 1-1-11.)
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| 1 | | Section 30. The Cigarette Tax Act is amended by changing | 2 | | Section 18c as follows:
| 3 | | (35 ILCS 130/18c)
| 4 | | Sec. 18c.
Possession of
not less than 10 and not
more than
| 5 | | 100 original packages of contraband cigarettes; penalty. With | 6 | | the exception of licensed distributors and transporters, as | 7 | | defined in Section 9c of this Act, possessing unstamped | 8 | | original packages of cigarettes, and licensed distributors | 9 | | possessing original packages of cigarettes that bear a tax | 10 | | stamp of another state or taxing jurisdiction,
anyone | 11 | | possessing
not less than 10
and not more than 100 packages of
| 12 | | contraband cigarettes contained in original packages is
liable | 13 | | to pay to the Department, for deposit into the Tax Compliance | 14 | | and
Administration Fund, a penalty of $20 $10
for each such | 15 | | package of
cigarettes, unless reasonable cause can be | 16 | | established by the person upon whom
the penalty is imposed. | 17 | | Reasonable cause shall be determined in each situation
in | 18 | | accordance with rules adopted by the Department. The provisions | 19 | | of the Uniform Penalty and Interest Act do not apply to this | 20 | | Section.
| 21 | | (Source: P.A. 96-782, eff. 1-1-10.)
| 22 | | Section 35. The Environmental Protection Act is amended by | 23 | | changing Section 55.8 as follows:
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| 1 | | (415 ILCS 5/55.8) (from Ch. 111 1/2, par. 1055.8)
| 2 | | Sec. 55.8. Tire retailers.
| 3 | | (a) Any person selling new or used tires at
retail or | 4 | | offering new or used tires for retail sale in this State shall:
| 5 | | (1) beginning on June 20, 2003 (the effective date of | 6 | | Public Act
93-32), collect from retail customers a fee of | 7 | | $2 per new or used
tire sold and delivered in this State, | 8 | | to be paid to the Department of
Revenue and deposited into | 9 | | the Used Tire Management Fund, less a collection
allowance | 10 | | of 10 cents per tire to be retained by the retail seller | 11 | | and a
collection allowance of 10 cents per tire to be | 12 | | retained by the Department of
Revenue and paid into the | 13 | | General Revenue Fund; the collection allowance for retail | 14 | | sellers, however, shall be allowed only if the return is | 15 | | filed timely and only for the amount that is paid timely in | 16 | | accordance with this Title XIV;
| 17 | | (1.5) beginning on July 1, 2003, collect from retail | 18 | | customers an
additional 50 cents per new or used tire sold | 19 | | and delivered in this State;
the money collected from this | 20 | | fee shall be deposited into the Emergency Public
Health | 21 | | Fund;
| 22 | | (2) accept for recycling used tires from customers, at | 23 | | the point of
transfer, in a quantity equal to the number of | 24 | | new tires purchased; and
| 25 | | (3) post in a conspicuous place a written notice at | 26 | | least 8.5 by 11
inches in size that includes the universal |
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| 1 | | recycling symbol and the
following statements: "DO NOT put | 2 | | used tires in the trash.";
"Recycle your used tires."; and | 3 | | "State law requires us to accept used tires
for recycling, | 4 | | in exchange for new tires purchased.".
| 5 | | (b) A person who accepts used tires for recycling under | 6 | | subsection (a)
shall not allow the tires to accumulate for | 7 | | periods of more than 90 days.
| 8 | | (c) The requirements of subsection (a) of this Section do | 9 | | not apply
to mail order sales nor shall the retail sale of a | 10 | | motor vehicle be considered
to be the sale of tires at retail | 11 | | or offering of tires for retail sale.
Instead of filing | 12 | | returns, retailers of tires may remit the tire user fee of
| 13 | | $1.00 per tire to their suppliers of tires if the supplier of | 14 | | tires is a
registered retailer of tires and agrees or otherwise | 15 | | arranges to collect
and remit the tire fee to the Department of | 16 | | Revenue, notwithstanding the fact
that the sale of the tire is | 17 | | a sale for resale and not a sale at retail. A
tire supplier who | 18 | | enters into such an arrangement with a tire retailer shall
be | 19 | | liable for the tax on all tires sold to the tire retailer and | 20 | | must (i)
provide the tire retailer with a receipt that | 21 | | separately reflects the tire
tax collected from the retailer on | 22 | | each transaction and (ii) accept used tires
for recycling from | 23 | | the retailer's customers. The tire supplier shall be
entitled | 24 | | to the collection allowance of 10 cents per tire , but only if | 25 | | the return is filed timely and only for the amount that is paid | 26 | | timely in accordance with this Title XIV .
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| 1 | | The retailer of the tires must maintain in its books and | 2 | | records evidence
that the appropriate fee was paid to the tire | 3 | | supplier and that the tire
supplier has agreed to remit the fee | 4 | | to the Department of Revenue for each tire
sold by the | 5 | | retailer. Otherwise, the tire retailer shall be directly liable
| 6 | | for the fee on all tires sold at retail. Tire retailers paying | 7 | | the fee to
their suppliers are not entitled to the collection | 8 | | allowance of 10 cents per
tire.
| 9 | | (d) The requirements of subsection (a) of this Section | 10 | | shall apply
exclusively to tires to be used for vehicles | 11 | | defined in Section 1-217 of
the Illinois Vehicle Code, aircraft | 12 | | tires, special mobile equipment, and
implements of husbandry.
| 13 | | (e) The requirements of paragraph (1) of subsection (a) do | 14 | | not
apply to the sale of reprocessed tires. For purposes of | 15 | | this Section,
"reprocessed tire" means a used tire that has | 16 | | been recapped, retreaded,
or regrooved and that has not been | 17 | | placed on a vehicle wheel rim.
| 18 | | (Source: P.A. 95-49, eff. 8-10-07; 95-331, eff. 8-21-07; | 19 | | 95-876, eff. 8-21-08; 96-520, eff. 8-14-09.)
| 20 | | Section 95. No acceleration or delay. Where this Act makes | 21 | | changes in a statute that is represented in this Act by text | 22 | | that is not yet or no longer in effect (for example, a Section | 23 | | represented by multiple versions), the use of that text does | 24 | | not accelerate or delay the taking effect of (i) the changes | 25 | | made by this Act or (ii) provisions derived from any other |
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| 1 | | Public Act.
| 2 | | Section 99. Effective date. This Act takes effect July 1, | 3 | | 2012.
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