HB1828 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB1828

 

Introduced 2/17/2021, by Rep. LaToya Greenwood

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-10
35 ILCS 110/3-10  from Ch. 120, par. 439.33-10
35 ILCS 115/3-10  from Ch. 120, par. 439.103-10
35 ILCS 120/2-10

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Reduces the rate of tax on diapers and baby wipes to 1% (currently, 6.25%).


LRB102 14521 HLH 19874 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1828LRB102 14521 HLH 19874 b

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

 

 

HB1828- 2 -LRB102 14521 HLH 19874 b

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

 

 

HB1828- 3 -LRB102 14521 HLH 19874 b

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

 

 

HB1828- 4 -LRB102 14521 HLH 19874 b

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

 

 

HB1828- 5 -LRB102 14521 HLH 19874 b

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

 

 

HB1828- 6 -LRB102 14521 HLH 19874 b

1as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
2label includes:
3        (A) A "Drug Facts" panel; or
4        (B) A statement of the "active ingredient(s)" with a
5    list of those ingredients contained in the compound,
6    substance or preparation.
7    Beginning on the effective date of this amendatory Act of
8the 98th General Assembly, "prescription and nonprescription
9medicines and drugs" includes medical cannabis purchased from
10a registered dispensing organization under the Compassionate
11Use of Medical Cannabis Program Act.
12    As used in this Section, "adult use cannabis" means
13cannabis subject to tax under the Cannabis Cultivation
14Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
15and does not include cannabis subject to tax under the
16Compassionate Use of Medical Cannabis Program Act.
17    If the property that is purchased at retail from a
18retailer is acquired outside Illinois and used outside
19Illinois before being brought to Illinois for use here and is
20taxable under this Act, the "selling price" on which the tax is
21computed shall be reduced by an amount that represents a
22reasonable allowance for depreciation for the period of prior
23out-of-state use.
24(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
25101-593, eff. 12-4-19.)
 

 

 

HB1828- 7 -LRB102 14521 HLH 19874 b

1    Section 10. The Service Use Tax Act is amended by changing
2Sections 3-10 and 9 as follows:
 
3    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
4    Sec. 3-10. Rate of tax. Unless otherwise provided in this
5Section, the tax imposed by this Act is at the rate of 6.25% of
6the selling price of tangible personal property transferred as
7an incident to the sale of service, but, for the purpose of
8computing this tax, in no event shall the selling price be less
9than the cost price of the property to the serviceman.
10    Beginning on July 1, 2000 and through December 31, 2000,
11with respect to motor fuel, as defined in Section 1.1 of the
12Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
13the Use Tax Act, the tax is imposed at the rate of 1.25%.
14    With respect to gasohol, as defined in the Use Tax Act, the
15tax imposed by this Act applies to (i) 70% of the selling price
16of property transferred as an incident to the sale of service
17on or after January 1, 1990, and before July 1, 2003, (ii) 80%
18of the selling price of property transferred as an incident to
19the sale of service on or after July 1, 2003 and on or before
20July 1, 2017, and (iii) 100% of the selling price thereafter.
21If, at any time, however, the tax under this Act on sales of
22gasohol, as defined in the Use Tax Act, is imposed at the rate
23of 1.25%, then the tax imposed by this Act applies to 100% of
24the proceeds of sales of gasohol made during that time.
25    With respect to majority blended ethanol fuel, as defined

 

 

HB1828- 8 -LRB102 14521 HLH 19874 b

1in the Use Tax Act, the tax imposed by this Act does not apply
2to the selling price of property transferred as an incident to
3the sale of service on or after July 1, 2003 and on or before
4December 31, 2023 but applies to 100% of the selling price
5thereafter.
6    With respect to biodiesel blends, as defined in the Use
7Tax Act, with no less than 1% and no more than 10% biodiesel,
8the tax imposed by this Act applies to (i) 80% of the selling
9price of property transferred as an incident to the sale of
10service on or after July 1, 2003 and on or before December 31,
112018 and (ii) 100% of the proceeds of the selling price
12thereafter. If, at any time, however, the tax under this Act on
13sales of biodiesel blends, as defined in the Use Tax Act, with
14no less than 1% and no more than 10% biodiesel is imposed at
15the rate of 1.25%, then the tax imposed by this Act applies to
16100% of the proceeds of sales of biodiesel blends with no less
17than 1% and no more than 10% biodiesel made during that time.
18    With respect to 100% biodiesel, as defined in the Use Tax
19Act, and biodiesel blends, as defined in the Use Tax Act, with
20more than 10% but no more than 99% biodiesel, the tax imposed
21by this Act does not apply to the proceeds of the selling price
22of property transferred as an incident to the sale of service
23on or after July 1, 2003 and on or before December 31, 2023 but
24applies to 100% of the selling price thereafter.
25    At the election of any registered serviceman made for each
26fiscal year, sales of service in which the aggregate annual

 

 

HB1828- 9 -LRB102 14521 HLH 19874 b

1cost price of tangible personal property transferred as an
2incident to the sales of service is less than 35%, or 75% in
3the case of servicemen transferring prescription drugs or
4servicemen engaged in graphic arts production, of the
5aggregate annual total gross receipts from all sales of
6service, the tax imposed by this Act shall be based on the
7serviceman's cost price of the tangible personal property
8transferred as an incident to the sale of those services.
9    The tax shall be imposed at the rate of 1% on food prepared
10for immediate consumption and transferred incident to a sale
11of service subject to this Act or the Service Occupation Tax
12Act by an entity licensed under the Hospital Licensing Act,
13the Nursing Home Care Act, the ID/DD Community Care Act, the
14MC/DD Act, the Specialized Mental Health Rehabilitation Act of
152013, or the Child Care Act of 1969. The tax shall also be
16imposed at the rate of 1% on food for human consumption that is
17to be consumed off the premises where it is sold (other than
18alcoholic beverages, food consisting of or infused with adult
19use cannabis, soft drinks, and food that has been prepared for
20immediate consumption and is not otherwise included in this
21paragraph) and prescription and nonprescription medicines,
22drugs, medical appliances, products classified as Class III
23medical devices by the United States Food and Drug
24Administration that are used for cancer treatment pursuant to
25a prescription, as well as any accessories and components
26related to those devices, modifications to a motor vehicle for

 

 

HB1828- 10 -LRB102 14521 HLH 19874 b

1the purpose of rendering it usable by a person with a
2disability, diapers, baby wipes, and insulin, urine testing
3materials, syringes, and needles used by diabetics, for human
4use. For the purposes of this Section, until September 1,
52009: the term "soft drinks" means any complete, finished,
6ready-to-use, non-alcoholic drink, whether carbonated or not,
7including but not limited to soda water, cola, fruit juice,
8vegetable juice, carbonated water, and all other preparations
9commonly known as soft drinks of whatever kind or description
10that are contained in any closed or sealed bottle, can,
11carton, or container, regardless of size; but "soft drinks"
12does not include coffee, tea, non-carbonated water, infant
13formula, milk or milk products as defined in the Grade A
14Pasteurized Milk and Milk Products Act, or drinks containing
1550% or more natural fruit or vegetable juice.
16    Notwithstanding any other provisions of this Act,
17beginning September 1, 2009, "soft drinks" means non-alcoholic
18beverages that contain natural or artificial sweeteners. "Soft
19drinks" do not include beverages that contain milk or milk
20products, soy, rice or similar milk substitutes, or greater
21than 50% of vegetable or fruit juice by volume.
22    Until August 1, 2009, and notwithstanding any other
23provisions of this Act, "food for human consumption that is to
24be consumed off the premises where it is sold" includes all
25food sold through a vending machine, except soft drinks and
26food products that are dispensed hot from a vending machine,

 

 

HB1828- 11 -LRB102 14521 HLH 19874 b

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

 

 

HB1828- 12 -LRB102 14521 HLH 19874 b

1use that contains a label that identifies the product as a drug
2as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
3label includes:
4        (A) A "Drug Facts" panel; or
5        (B) A statement of the "active ingredient(s)" with a
6    list of those ingredients contained in the compound,
7    substance or preparation.
8    Beginning on January 1, 2014 (the effective date of Public
9Act 98-122), "prescription and nonprescription medicines and
10drugs" includes medical cannabis purchased from a registered
11dispensing organization under the Compassionate Use of Medical
12Cannabis Program Act.
13    As used in this Section, "adult use cannabis" means
14cannabis subject to tax under the Cannabis Cultivation
15Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
16and does not include cannabis subject to tax under the
17Compassionate Use of Medical Cannabis Program Act.
18    If the property that is acquired from a serviceman is
19acquired outside Illinois and used outside Illinois before
20being brought to Illinois for use here and is taxable under
21this Act, the "selling price" on which the tax is computed
22shall be reduced by an amount that represents a reasonable
23allowance for depreciation for the period of prior
24out-of-state use.
25(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
26101-593, eff. 12-4-19.)
 

 

 

HB1828- 13 -LRB102 14521 HLH 19874 b

1    Section 15. The Service Occupation Tax Act is amended by
2changing Sections 3-10 and 9 as follows:
 
3    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
4    Sec. 3-10. Rate of tax. Unless otherwise provided in this
5Section, the tax imposed by this Act is at the rate of 6.25% of
6the "selling price", as defined in Section 2 of the Service Use
7Tax Act, of the tangible personal property. For the purpose of
8computing this tax, in no event shall the "selling price" be
9less than the cost price to the serviceman of the tangible
10personal property transferred. The selling price of each item
11of tangible personal property transferred as an incident of a
12sale of service may be shown as a distinct and separate item on
13the serviceman's billing to the service customer. If the
14selling price is not so shown, the selling price of the
15tangible personal property is deemed to be 50% of the
16serviceman's entire billing to the service customer. When,
17however, a serviceman contracts to design, develop, and
18produce special order machinery or equipment, the tax imposed
19by this Act shall be based on the serviceman's cost price of
20the tangible personal property transferred incident to the
21completion of the contract.
22    Beginning on July 1, 2000 and through December 31, 2000,
23with respect to motor fuel, as defined in Section 1.1 of the
24Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

 

 

HB1828- 14 -LRB102 14521 HLH 19874 b

1the Use Tax Act, the tax is imposed at the rate of 1.25%.
2    With respect to gasohol, as defined in the Use Tax Act, the
3tax imposed by this Act shall apply to (i) 70% of the cost
4price of property transferred as an incident to the sale of
5service on or after January 1, 1990, and before July 1, 2003,
6(ii) 80% of the selling price of property transferred as an
7incident to the sale of service on or after July 1, 2003 and on
8or before July 1, 2017, and (iii) 100% of the cost price
9thereafter. If, at any time, however, the tax under this Act on
10sales of gasohol, as defined in the Use Tax Act, is imposed at
11the rate of 1.25%, then the tax imposed by this Act applies to
12100% of the proceeds of sales of gasohol made during that time.
13    With respect to majority blended ethanol fuel, as defined
14in the Use Tax Act, the tax imposed by this Act does not apply
15to the selling price of property transferred as an incident to
16the sale of service on or after July 1, 2003 and on or before
17December 31, 2023 but applies to 100% of the selling price
18thereafter.
19    With respect to biodiesel blends, as defined in the Use
20Tax Act, with no less than 1% and no more than 10% biodiesel,
21the tax imposed by this Act applies to (i) 80% of the selling
22price of property transferred as an incident to the sale of
23service on or after July 1, 2003 and on or before December 31,
242018 and (ii) 100% of the proceeds of the selling price
25thereafter. If, at any time, however, the tax under this Act on
26sales of biodiesel blends, as defined in the Use Tax Act, with

 

 

HB1828- 15 -LRB102 14521 HLH 19874 b

1no less than 1% and no more than 10% biodiesel is imposed at
2the rate of 1.25%, then the tax imposed by this Act applies to
3100% of the proceeds of sales of biodiesel blends with no less
4than 1% and no more than 10% biodiesel made during that time.
5    With respect to 100% biodiesel, as defined in the Use Tax
6Act, and biodiesel blends, as defined in the Use Tax Act, with
7more than 10% but no more than 99% biodiesel material, the tax
8imposed by this Act does not apply to the proceeds of the
9selling price of property transferred as an incident to the
10sale of service on or after July 1, 2003 and on or before
11December 31, 2023 but applies to 100% of the selling price
12thereafter.
13    At the election of any registered serviceman made for each
14fiscal year, sales of service in which the aggregate annual
15cost price of tangible personal property transferred as an
16incident to the sales of service is less than 35%, or 75% in
17the case of servicemen transferring prescription drugs or
18servicemen engaged in graphic arts production, of the
19aggregate annual total gross receipts from all sales of
20service, the tax imposed by this Act shall be based on the
21serviceman's cost price of the tangible personal property
22transferred incident to the sale of those services.
23    The tax shall be imposed at the rate of 1% on food prepared
24for immediate consumption and transferred incident to a sale
25of service subject to this Act or the Service Occupation Tax
26Act by an entity licensed under the Hospital Licensing Act,

 

 

HB1828- 16 -LRB102 14521 HLH 19874 b

1the Nursing Home Care Act, the ID/DD Community Care Act, the
2MC/DD Act, the Specialized Mental Health Rehabilitation Act of
32013, or the Child Care Act of 1969. The tax shall also be
4imposed at the rate of 1% on food for human consumption that is
5to be consumed off the premises where it is sold (other than
6alcoholic beverages, food consisting of or infused with adult
7use cannabis, soft drinks, and food that has been prepared for
8immediate consumption and is not otherwise included in this
9paragraph) and prescription and nonprescription medicines,
10drugs, medical appliances, products classified as Class III
11medical devices by the United States Food and Drug
12Administration that are used for cancer treatment pursuant to
13a prescription, as well as any accessories and components
14related to those devices, modifications to a motor vehicle for
15the purpose of rendering it usable by a person with a
16disability, diapers, baby wipes, and insulin, urine testing
17materials, syringes, and needles used by diabetics, for human
18use. For the purposes of this Section, until September 1,
192009: the term "soft drinks" means any complete, finished,
20ready-to-use, non-alcoholic drink, whether carbonated or not,
21including but not limited to soda water, cola, fruit juice,
22vegetable juice, carbonated water, and all other preparations
23commonly known as soft drinks of whatever kind or description
24that are contained in any closed or sealed can, carton, or
25container, regardless of size; but "soft drinks" does not
26include coffee, tea, non-carbonated water, infant formula,

 

 

HB1828- 17 -LRB102 14521 HLH 19874 b

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

 

 

HB1828- 18 -LRB102 14521 HLH 19874 b

1sweeteners in combination with chocolate, fruits, nuts or
2other ingredients or flavorings in the form of bars, drops, or
3pieces. "Candy" does not include any preparation that contains
4flour or requires refrigeration.
5    Notwithstanding any other provisions of this Act,
6beginning September 1, 2009, "nonprescription medicines and
7drugs" does not include grooming and hygiene products. For
8purposes of this Section, "grooming and hygiene products"
9includes, but is not limited to, soaps and cleaning solutions,
10shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
11lotions and screens, unless those products are available by
12prescription only, regardless of whether the products meet the
13definition of "over-the-counter-drugs". For the purposes of
14this paragraph, "over-the-counter-drug" means a drug for human
15use that contains a label that identifies the product as a drug
16as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
17label includes:
18        (A) A "Drug Facts" panel; or
19        (B) A statement of the "active ingredient(s)" with a
20    list of those ingredients contained in the compound,
21    substance or preparation.
22    Beginning on January 1, 2014 (the effective date of Public
23Act 98-122), "prescription and nonprescription medicines and
24drugs" includes medical cannabis purchased from a registered
25dispensing organization under the Compassionate Use of Medical
26Cannabis Program Act.

 

 

HB1828- 19 -LRB102 14521 HLH 19874 b

1    As used in this Section, "adult use cannabis" means
2cannabis subject to tax under the Cannabis Cultivation
3Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
4and does not include cannabis subject to tax under the
5Compassionate Use of Medical Cannabis Program Act.
6(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
7101-593, eff. 12-4-19.)
 
8    Section 20. The Retailers' Occupation Tax Act is amended
9by changing Sections 2-10 and 3 as follows:
 
10    (35 ILCS 120/2-10)
11    Sec. 2-10. Rate of tax. Unless otherwise provided in this
12Section, the tax imposed by this Act is at the rate of 6.25% of
13gross receipts from sales of tangible personal property made
14in the course of business.
15    Beginning on July 1, 2000 and through December 31, 2000,
16with respect to motor fuel, as defined in Section 1.1 of the
17Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
18the Use Tax Act, the tax is imposed at the rate of 1.25%.
19    Beginning on August 6, 2010 through August 15, 2010, with
20respect to sales tax holiday items as defined in Section 2-8 of
21this Act, the tax is imposed at the rate of 1.25%.
22    Within 14 days after the effective date of this amendatory
23Act of the 91st General Assembly, each retailer of motor fuel
24and gasohol shall cause the following notice to be posted in a

 

 

HB1828- 20 -LRB102 14521 HLH 19874 b

1prominently visible place on each retail dispensing device
2that is used to dispense motor fuel or gasohol in the State of
3Illinois: "As of July 1, 2000, the State of Illinois has
4eliminated the State's share of sales tax on motor fuel and
5gasohol through December 31, 2000. The price on this pump
6should reflect the elimination of the tax." The notice shall
7be printed in bold print on a sign that is no smaller than 4
8inches by 8 inches. The sign shall be clearly visible to
9customers. Any retailer who fails to post or maintain a
10required sign through December 31, 2000 is guilty of a petty
11offense for which the fine shall be $500 per day per each
12retail premises where a violation occurs.
13    With respect to gasohol, as defined in the Use Tax Act, the
14tax imposed by this Act applies to (i) 70% of the proceeds of
15sales made on or after January 1, 1990, and before July 1,
162003, (ii) 80% of the proceeds of sales made on or after July
171, 2003 and on or before July 1, 2017, and (iii) 100% of the
18proceeds of sales made thereafter. If, at any time, however,
19the tax under this Act on sales of gasohol, as defined in the
20Use Tax Act, is imposed at the rate of 1.25%, then the tax
21imposed by this Act applies to 100% of the proceeds of sales of
22gasohol made during that time.
23    With respect to majority blended ethanol fuel, as defined
24in the Use Tax Act, the tax imposed by this Act does not apply
25to the proceeds of sales made on or after July 1, 2003 and on
26or before December 31, 2023 but applies to 100% of the proceeds

 

 

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1of sales made thereafter.
2    With respect to biodiesel blends, as defined in the Use
3Tax Act, with no less than 1% and no more than 10% biodiesel,
4the tax imposed by this Act applies to (i) 80% of the proceeds
5of sales made on or after July 1, 2003 and on or before
6December 31, 2018 and (ii) 100% of the proceeds of sales made
7thereafter. If, at any time, however, the tax under this Act on
8sales of biodiesel blends, as defined in the Use Tax Act, with
9no less than 1% and no more than 10% biodiesel is imposed at
10the rate of 1.25%, then the tax imposed by this Act applies to
11100% of the proceeds of sales of biodiesel blends with no less
12than 1% and no more than 10% biodiesel made during that time.
13    With respect to 100% biodiesel, as defined in the Use Tax
14Act, and biodiesel blends, as defined in the Use Tax Act, with
15more than 10% but no more than 99% biodiesel, the tax imposed
16by this Act does not apply to the proceeds of sales made on or
17after July 1, 2003 and on or before December 31, 2023 but
18applies to 100% of the proceeds of sales made thereafter.
19    With respect to food for human consumption that is to be
20consumed off the premises where it is sold (other than
21alcoholic beverages, food consisting of or infused with adult
22use cannabis, soft drinks, and food that has been prepared for
23immediate consumption) and prescription and nonprescription
24medicines, drugs, medical appliances, products classified as
25Class III medical devices by the United States Food and Drug
26Administration that are used for cancer treatment pursuant to

 

 

HB1828- 22 -LRB102 14521 HLH 19874 b

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

 

 

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

 

 

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1prescription only, regardless of whether the products meet the
2definition of "over-the-counter-drugs". For the purposes of
3this paragraph, "over-the-counter-drug" means a drug for human
4use that contains a label that identifies the product as a drug
5as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
6label includes:
7        (A) A "Drug Facts" panel; or
8        (B) A statement of the "active ingredient(s)" with a
9    list of those ingredients contained in the compound,
10    substance or preparation.
11    Beginning on the effective date of this amendatory Act of
12the 98th General Assembly, "prescription and nonprescription
13medicines and drugs" includes medical cannabis purchased from
14a registered dispensing organization under the Compassionate
15Use of Medical Cannabis Program Act.
16    As used in this Section, "adult use cannabis" means
17cannabis subject to tax under the Cannabis Cultivation
18Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
19and does not include cannabis subject to tax under the
20Compassionate Use of Medical Cannabis Program Act.
21(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
22101-593, eff. 12-4-19.)