Full Text of SB1146 102nd General Assembly
SB1146eng 102ND GENERAL ASSEMBLY |
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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 Use Tax Act is amended by changing Sections | 5 | | 3-10 and 3-41 and by adding Sections 3-5.1 and 3-42.5 as | 6 | | follows: | 7 | | (35 ILCS 105/3-5.1 new) | 8 | | Sec. 3-5.1. Biodiesel, renewable diesel, and biodiesel | 9 | | blends. | 10 | | (a) From January 1, 2024 through March 31, 2024, the taxes | 11 | | imposed by this Act, the Service Use Tax Act, the Service | 12 | | Occupation Tax Act, or the Retailers' Occupation Tax Act do | 13 | | not apply to the proceeds of sales of the following items: (i) | 14 | | biodiesel; (ii) renewable diesel; or (iii) biodiesel blends | 15 | | with more than 10% but no more than 99% biodiesel. | 16 | | (b) From April 1, 2024 through November 30, 2024, the | 17 | | taxes imposed by this Act, the Service Use Tax Act, the Service | 18 | | Occupation Tax Act, or the Retailers' Occupation Tax Act do | 19 | | not apply to the proceeds of sales of the following items: (i) | 20 | | biodiesel; (ii) renewable diesel; or (iii) biodiesel blends | 21 | | with more than 13% but no more than 99% biodiesel. | 22 | | (c) From December 1, 2024 through March 31, 2025, the | 23 | | taxes imposed by this Act, the Service Use Tax Act, the Service |
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| 1 | | Occupation Tax Act, or the Retailers' Occupation Tax Act do | 2 | | not apply to the proceeds of sales of the following items: (i) | 3 | | biodiesel; (ii) renewable diesel; or (iii) biodiesel blends | 4 | | with more than 10% but no more than 99% biodiesel. | 5 | | (d) From April 1, 2025 through November 30, 2025, the | 6 | | taxes imposed by this Act, the Service Use Tax Act, the Service | 7 | | Occupation Tax Act, or the Retailers' Occupation Tax Act do | 8 | | not apply to the proceeds of sales of the following items: (i) | 9 | | biodiesel; (ii) renewable diesel; or (iii) biodiesel blends | 10 | | with more than 16% but no more than 99% biodiesel. | 11 | | (e) From December 1, 2025 through March 31, 2026, the | 12 | | taxes imposed by this Act, the Service Use Tax Act, the Service | 13 | | Occupation Tax Act, or the Retailers' Occupation Tax Act do | 14 | | not apply to the proceeds of sales of the following items: (i) | 15 | | biodiesel; (ii) renewable diesel; or (iii) biodiesel blends | 16 | | with more than 10% but no more than 99% biodiesel. | 17 | | (f) On and after April 1, 2026, the taxes imposed by this | 18 | | Act, the Service Use Tax Act, the Service Occupation Tax Act, | 19 | | or the Retailers' Occupation Tax Act do not apply to the | 20 | | proceeds of sales of the following items: (i) biodiesel; (ii) | 21 | | renewable diesel; or (iii) biodiesel blends with more than 19% | 22 | | but no more than 99% biodiesel; provided that, from December 1 | 23 | | of any calendar year through March 31 of the following | 24 | | calendar year, the taxes imposed by this Act, the Service Use | 25 | | Tax Act, the Service Occupation Tax Act, or the Retailers' | 26 | | Occupation Tax Act do not apply to the proceeds of sales of the |
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| 1 | | following items: (i) biodiesel; (ii) renewable diesel; or | 2 | | (iii) biodiesel blends with more than 10% but no more than 99% | 3 | | biodiesel. | 4 | | (g) This Section is exempt from the provisions of Section | 5 | | 3-90 of this Act, Section 3-75 of the Service Use Tax Act, | 6 | | Section 3-55 of the Service Occupation Tax Act, and Section | 7 | | 2-70 of the Retailers' Occupation Tax Act.
| 8 | | (35 ILCS 105/3-10)
| 9 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this | 10 | | Section, the tax
imposed by this Act is at the rate of 6.25% of | 11 | | either the selling price or the
fair market value, if any, of | 12 | | the tangible personal property. In all cases
where property | 13 | | functionally used or consumed is the same as the property that
| 14 | | was purchased at retail, then the tax is imposed on the selling | 15 | | price of the
property. In all cases where property | 16 | | functionally used or consumed is a
by-product or waste product | 17 | | that has been refined, manufactured, or produced
from property | 18 | | purchased at retail, then the tax is imposed on the lower of | 19 | | the
fair market value, if any, of the specific property so used | 20 | | in this State or on
the selling price of the property purchased | 21 | | at retail. For purposes of this
Section "fair market value" | 22 | | means the price at which property would change
hands between a | 23 | | willing buyer and a willing seller, neither being under any
| 24 | | compulsion to buy or sell and both having reasonable knowledge | 25 | | of the
relevant facts. The fair market value shall be |
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| 1 | | established by Illinois sales by
the taxpayer of the same | 2 | | property as that functionally used or consumed, or if
there | 3 | | are no such sales by the taxpayer, then comparable sales or | 4 | | purchases of
property of like kind and character in Illinois.
| 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 3-6 of | 11 | | this Act, the
tax is imposed at the rate of 1.25%. | 12 | | With respect to gasohol, the tax imposed by this Act | 13 | | applies to (i) 70%
of the proceeds of sales made on or after | 14 | | January 1, 1990, and before
July 1, 2003, (ii) 80% of the | 15 | | proceeds of sales made
on or after July 1, 2003 and on or | 16 | | before July 1, 2017, and (iii) 100% of the proceeds of sales | 17 | | made
thereafter.
If, at any time, however, the tax under this | 18 | | Act on sales of gasohol is
imposed at the
rate of 1.25%, then | 19 | | the tax imposed by this Act applies to 100% of the proceeds
of | 20 | | sales of gasohol made during that time.
| 21 | | With respect to majority blended ethanol fuel, the tax | 22 | | imposed by this Act
does
not apply
to the proceeds of sales | 23 | | made on or after July 1, 2003 and on or before
December 31, | 24 | | 2023 but applies to 100% of the proceeds of sales made | 25 | | thereafter.
| 26 | | With respect to biodiesel blends with no less than 1% and |
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| 1 | | no more than 10%
biodiesel, the tax imposed by this Act applies | 2 | | to (i) 80% of the
proceeds of sales made on or after July 1, | 3 | | 2003 and on or before December 31, 2018
and (ii) 100% of the | 4 | | proceeds of sales made
after December 31, 2018 and before | 5 | | January 1, 2024. On and after January 1, 2024, the taxation of | 6 | | biodiesel, renewable diesel, and biodiesel blends shall be as | 7 | | provided in Section 3-5.1 thereafter .
If, at any time, | 8 | | however, the tax under this Act on sales of biodiesel blends
| 9 | | with no less than 1% and no more than 10% biodiesel
is imposed | 10 | | at the rate of
1.25%, then the
tax imposed by this Act applies | 11 | | to 100% of the proceeds of sales of biodiesel
blends with no | 12 | | less than 1% and no more than 10% biodiesel
made
during that | 13 | | time.
| 14 | | With respect to 100% biodiesel and biodiesel blends with | 15 | | more than 10%
but no more than 99% biodiesel, the tax imposed | 16 | | by this Act does not apply to
the
proceeds of sales made on or | 17 | | after July 1, 2003 and on or before
December 31, 2023 but | 18 | | applies to 100% of the proceeds of sales made
thereafter . On | 19 | | and after January 1, 2024, the taxation of biodiesel, | 20 | | renewable diesel, and biodiesel blends shall be as provided in | 21 | | Section 3-5.1.
| 22 | | With respect to food for human consumption that is to be | 23 | | consumed off the
premises where it is sold (other than | 24 | | alcoholic beverages, food consisting of or infused with adult | 25 | | use cannabis, soft drinks, and
food that has been prepared for | 26 | | immediate consumption) and prescription and
nonprescription |
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| 1 | | medicines, drugs, medical appliances, products classified as | 2 | | Class III medical devices by the United States Food and Drug | 3 | | Administration that are used for cancer treatment pursuant to | 4 | | a prescription, as well as any accessories and components | 5 | | related to those devices, modifications to a motor
vehicle for | 6 | | the purpose of rendering it usable by a person with a | 7 | | disability, and
insulin, blood sugar testing materials, | 8 | | syringes, and needles used by human diabetics, the tax is | 9 | | imposed at the rate of 1%. For the purposes of this
Section, | 10 | | until September 1, 2009: the term "soft drinks" means any | 11 | | complete, finished, ready-to-use,
non-alcoholic drink, whether | 12 | | carbonated or not, including but not limited to
soda water, | 13 | | cola, fruit juice, vegetable juice, carbonated water, and all | 14 | | other
preparations commonly known as soft drinks of whatever | 15 | | kind or description that
are contained in any closed or sealed | 16 | | bottle, can, carton, or container,
regardless of size; but | 17 | | "soft drinks" does not include coffee, tea, non-carbonated
| 18 | | water, infant formula, milk or milk products as defined in the | 19 | | Grade A
Pasteurized Milk and Milk Products Act, or drinks | 20 | | containing 50% or more
natural fruit or vegetable juice.
| 21 | | Notwithstanding any other provisions of this
Act, | 22 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 23 | | beverages that contain natural or artificial sweeteners. "Soft | 24 | | drinks" do not include beverages that contain milk or milk | 25 | | products, soy, rice or similar milk substitutes, or greater | 26 | | than 50% of vegetable or fruit juice by volume. |
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| 1 | | Until August 1, 2009, and notwithstanding any other | 2 | | provisions of this
Act, "food for human consumption that is to | 3 | | be consumed off the premises where
it is sold" includes all | 4 | | food sold through a vending machine, except soft
drinks and | 5 | | food products that are dispensed hot from a vending machine,
| 6 | | regardless of the location of the vending machine. Beginning | 7 | | August 1, 2009, and notwithstanding any other provisions of | 8 | | this Act, "food for human consumption that is to be consumed | 9 | | off the premises where it is sold" includes all food sold | 10 | | through a vending machine, except soft drinks, candy, and food | 11 | | products that are dispensed hot from a vending machine, | 12 | | regardless of the location of the vending machine.
| 13 | | Notwithstanding any other provisions of this
Act, | 14 | | beginning September 1, 2009, "food for human consumption that | 15 | | is to be consumed off the premises where
it is sold" does not | 16 | | include candy. For purposes of this Section, "candy" means a | 17 | | preparation of sugar, honey, or other natural or artificial | 18 | | sweeteners in combination with chocolate, fruits, nuts or | 19 | | other ingredients or flavorings in the form of bars, drops, or | 20 | | pieces. "Candy" does not include any preparation that contains | 21 | | flour or requires refrigeration. | 22 | | Notwithstanding any other provisions of this
Act, | 23 | | beginning September 1, 2009, "nonprescription medicines and | 24 | | drugs" does not include grooming and hygiene products. For | 25 | | purposes of this Section, "grooming and hygiene products" | 26 | | includes, but is not limited to, soaps and cleaning solutions, |
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| 1 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 2 | | lotions and screens, unless those products are available by | 3 | | prescription only, regardless of whether the products meet the | 4 | | definition of "over-the-counter-drugs". For the purposes of | 5 | | this paragraph, "over-the-counter-drug" means a drug for human | 6 | | use that contains a label that identifies the product as a drug | 7 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 8 | | label includes: | 9 | | (A) A "Drug Facts" panel; or | 10 | | (B) A statement of the "active ingredient(s)" with a | 11 | | list of those ingredients contained in the compound, | 12 | | substance or preparation. | 13 | | Beginning on the effective date of this amendatory Act of | 14 | | the 98th General Assembly, "prescription and nonprescription | 15 | | medicines and drugs" includes medical cannabis purchased from | 16 | | a registered dispensing organization under the Compassionate | 17 | | Use of Medical Cannabis Program Act. | 18 | | As used in this Section, "adult use cannabis" means | 19 | | cannabis subject to tax under the Cannabis Cultivation | 20 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law | 21 | | and does not include cannabis subject to tax under the | 22 | | Compassionate Use of Medical Cannabis Program Act. | 23 | | If the property that is purchased at retail from a | 24 | | retailer is acquired
outside Illinois and used outside | 25 | | Illinois before being brought to Illinois
for use here and is | 26 | | taxable under this Act, the "selling price" on which
the tax is |
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| 1 | | computed shall be reduced by an amount that represents a
| 2 | | reasonable allowance for depreciation for the period of prior | 3 | | out-of-state use.
| 4 | | (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19; | 5 | | 102-4, eff. 4-27-21.)
| 6 | | (35 ILCS 105/3-41)
| 7 | | Sec. 3-41. Biodiesel. "Biodiesel" means a renewable diesel | 8 | | fuel substitute derived
from
biomass that is intended for use | 9 | | in diesel engines.
| 10 | | (Source: P.A. 93-17, eff. 6-11-03.)
| 11 | | (35 ILCS 105/3-42.5 new) | 12 | | Sec. 3-42.5. Renewable diesel. "Renewable diesel" means a | 13 | | hydrocarbon fuel derived from biomass meeting the requirements | 14 | | of the latest version of ASTM standards D975 or D396. Fuels | 15 | | that have been co-processed are not considered renewable | 16 | | diesel. | 17 | | Section 10. The Service Use Tax Act is amended by changing | 18 | | Section 3-10 as follows:
| 19 | | (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
| 20 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this | 21 | | Section,
the tax imposed by this Act is at the rate of 6.25% of | 22 | | the selling
price of tangible personal property transferred as |
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| 1 | | an incident to the sale
of service, but, for the purpose of | 2 | | computing this tax, in no event shall
the selling price be less | 3 | | than the cost price of the property to the
serviceman.
| 4 | | Beginning on July 1, 2000 and through December 31, 2000, | 5 | | with respect to
motor fuel, as defined in Section 1.1 of the | 6 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 7 | | the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
| 8 | | With respect to gasohol, as defined in the Use Tax Act, the | 9 | | tax imposed
by this Act applies to (i) 70% of the selling price | 10 | | of property transferred
as an incident to the sale of service | 11 | | on or after January 1, 1990,
and before July 1, 2003, (ii) 80% | 12 | | of the selling price of
property transferred as an incident to | 13 | | the sale of service on or after July
1, 2003 and on or before | 14 | | July 1, 2017, and (iii)
100% of the selling price thereafter.
| 15 | | If, at any time, however, the tax under this Act on sales of | 16 | | gasohol, as
defined in
the Use Tax Act, is imposed at the rate | 17 | | of 1.25%, then the
tax imposed by this Act applies to 100% of | 18 | | the proceeds of sales of gasohol
made during that time.
| 19 | | With respect to majority blended ethanol fuel, as defined | 20 | | in the Use Tax Act,
the
tax
imposed by this Act does not apply | 21 | | to the selling price of property transferred
as an incident to | 22 | | the sale of service on or after July 1, 2003 and on or before
| 23 | | December 31, 2023 but applies to 100% of the selling price | 24 | | thereafter.
| 25 | | With respect to biodiesel blends, as defined in the Use | 26 | | Tax Act, with no less
than 1% and no
more than 10% biodiesel, |
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| 1 | | the tax imposed by this Act
applies to (i) 80% of the selling | 2 | | price of property transferred as an incident
to the sale of | 3 | | service on or after July 1, 2003 and on or before December 31, | 4 | | 2018
and (ii) 100% of the proceeds of the selling price
after | 5 | | December 31, 2018 and before January 1, 2024. On and after | 6 | | January 1, 2024, the taxation of biodiesel, renewable diesel, | 7 | | and biodiesel blends shall be as provided in Section 3-5.1 of | 8 | | the Use Tax Act thereafter .
If, at any time, however, the tax | 9 | | under this Act on sales of biodiesel blends,
as
defined in the | 10 | | Use Tax Act, with no less than 1% and no more than 10% | 11 | | biodiesel
is imposed at the rate of 1.25%, then the
tax imposed | 12 | | by this Act applies to 100% of the proceeds of sales of | 13 | | biodiesel
blends with no less than 1% and no more than 10% | 14 | | biodiesel
made
during that time.
| 15 | | With respect to 100% biodiesel, as defined in the Use Tax | 16 | | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| 17 | | more than 10% but no more than 99% biodiesel, the tax imposed | 18 | | by this Act
does not apply to the proceeds of the selling price | 19 | | of property transferred
as an incident to the sale of service | 20 | | on or after July 1, 2003 and on or before
December 31, 2023 but | 21 | | applies to 100% of the selling price thereafter . On and after | 22 | | January 1, 2024, the taxation of biodiesel, renewable diesel, | 23 | | and biodiesel blends shall be as provided in Section 3-5.1 of | 24 | | the Use Tax Act.
| 25 | | At the election of any registered serviceman made for each | 26 | | fiscal year,
sales of service in which the aggregate annual |
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| 1 | | cost price of tangible
personal property transferred as an | 2 | | incident to the sales of service is
less than 35%, or 75% in | 3 | | the case of servicemen transferring prescription
drugs or | 4 | | servicemen engaged in graphic arts production, of the | 5 | | aggregate
annual total gross receipts from all sales of | 6 | | service, the tax imposed by
this Act shall be based on the | 7 | | serviceman's cost price of the tangible
personal property | 8 | | transferred as an incident to the sale of those services.
| 9 | | The tax shall be imposed at the rate of 1% on food prepared | 10 | | for
immediate consumption and transferred incident to a sale | 11 | | of service subject
to this Act or the Service Occupation Tax | 12 | | Act by an entity licensed under
the Hospital Licensing Act, | 13 | | the Nursing Home Care Act, the Assisted Living and Shared | 14 | | Housing Act, the ID/DD Community Care Act, the MC/DD Act, the | 15 | | Specialized Mental Health Rehabilitation Act of 2013, or the
| 16 | | Child Care
Act of 1969, or an entity that holds a permit issued | 17 | | pursuant to the Life Care Facilities Act. The tax shall
also be | 18 | | imposed at the rate of 1% on food for human consumption that is | 19 | | to be
consumed off the premises where it is sold (other than | 20 | | alcoholic beverages, food consisting of or infused with adult | 21 | | use cannabis,
soft drinks, and food that has been prepared for | 22 | | immediate consumption and is
not otherwise included in this | 23 | | paragraph) and prescription and nonprescription
medicines, | 24 | | drugs, medical appliances, products classified as Class III | 25 | | medical devices by the United States Food and Drug | 26 | | Administration that are used for cancer treatment pursuant to |
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| 1 | | a prescription, as well as any accessories and components | 2 | | related to those devices, modifications to a motor vehicle for | 3 | | the
purpose of rendering it usable by a person with a | 4 | | disability, and insulin, blood sugar testing
materials,
| 5 | | syringes, and needles used by human diabetics. For the | 6 | | purposes of this Section, until September 1, 2009: the term | 7 | | "soft drinks" means any
complete, finished, ready-to-use, | 8 | | non-alcoholic drink, whether carbonated or
not, including but | 9 | | not limited to soda water, cola, fruit juice, vegetable
juice, | 10 | | carbonated water, and all other preparations commonly known as | 11 | | soft
drinks of whatever kind or description that are contained | 12 | | in any closed or
sealed bottle, can, carton, or container, | 13 | | regardless of size; but "soft drinks"
does not include coffee, | 14 | | tea, non-carbonated water, infant formula, milk or
milk | 15 | | products as defined in the Grade A Pasteurized Milk and Milk | 16 | | Products Act,
or drinks containing 50% or more natural fruit | 17 | | or vegetable juice.
| 18 | | Notwithstanding any other provisions of this
Act, | 19 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 20 | | beverages that contain natural or artificial sweeteners. "Soft | 21 | | drinks" do not include beverages that contain milk or milk | 22 | | products, soy, rice or similar milk substitutes, or greater | 23 | | than 50% of vegetable or fruit juice by volume. | 24 | | Until August 1, 2009, and notwithstanding any other | 25 | | provisions of this Act, "food for human
consumption that is to | 26 | | be consumed off the premises where it is sold" includes
all |
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| 1 | | food sold through a vending machine, except soft drinks and | 2 | | food products
that are dispensed hot from a vending machine, | 3 | | regardless of the location of
the vending machine. Beginning | 4 | | August 1, 2009, and notwithstanding any other provisions of | 5 | | this Act, "food for human consumption that is to be consumed | 6 | | off the premises where it is sold" includes all food sold | 7 | | through a vending machine, except soft drinks, candy, and food | 8 | | products that are dispensed hot from a vending machine, | 9 | | regardless of the location of the vending machine.
| 10 | | Notwithstanding any other provisions of this
Act, | 11 | | beginning September 1, 2009, "food for human consumption that | 12 | | is to be consumed off the premises where
it is sold" does not | 13 | | include candy. For purposes of this Section, "candy" means a | 14 | | preparation of sugar, honey, or other natural or artificial | 15 | | sweeteners in combination with chocolate, fruits, nuts or | 16 | | other ingredients or flavorings in the form of bars, drops, or | 17 | | pieces. "Candy" does not include any preparation that contains | 18 | | flour or requires refrigeration. | 19 | | Notwithstanding any other provisions of this
Act, | 20 | | beginning September 1, 2009, "nonprescription medicines and | 21 | | drugs" does not include grooming and hygiene products. For | 22 | | purposes of this Section, "grooming and hygiene products" | 23 | | includes, but is not limited to, soaps and cleaning solutions, | 24 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 25 | | lotions and screens, unless those products are available by | 26 | | prescription only, regardless of whether the products meet the |
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| 1 | | definition of "over-the-counter-drugs". For the purposes of | 2 | | this paragraph, "over-the-counter-drug" means a drug for human | 3 | | use that contains a label that identifies the product as a drug | 4 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 5 | | label includes: | 6 | | (A) A "Drug Facts" panel; or | 7 | | (B) A statement of the "active ingredient(s)" with a | 8 | | list of those ingredients contained in the compound, | 9 | | substance or preparation. | 10 | | Beginning on January 1, 2014 (the effective date of Public | 11 | | Act 98-122), "prescription and nonprescription medicines and | 12 | | drugs" includes medical cannabis purchased from a registered | 13 | | dispensing organization under the Compassionate Use of Medical | 14 | | Cannabis Program Act. | 15 | | As used in this Section, "adult use cannabis" means | 16 | | cannabis subject to tax under the Cannabis Cultivation | 17 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law | 18 | | and does not include cannabis subject to tax under the | 19 | | Compassionate Use of Medical Cannabis Program Act. | 20 | | If the property that is acquired from a serviceman is | 21 | | acquired outside
Illinois and used outside Illinois before | 22 | | being brought to Illinois for use
here and is taxable under | 23 | | this Act, the "selling price" on which the tax
is computed | 24 | | shall be reduced by an amount that represents a reasonable
| 25 | | allowance for depreciation for the period of prior | 26 | | out-of-state use.
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| 1 | | (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19; | 2 | | 102-4, eff. 4-27-21; 102-16, eff. 6-17-21.) | 3 | | Section 15. The Service Occupation Tax Act is amended by | 4 | | changing Section 3-10 as follows:
| 5 | | (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
| 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",
as defined in Section 2 of the Service Use | 9 | | Tax Act, of the tangible
personal property. For the purpose of | 10 | | computing this tax, in no event
shall the "selling price" be | 11 | | less than the cost price to the serviceman of
the tangible | 12 | | personal property transferred. The selling price of each item
| 13 | | of tangible personal property transferred as an incident of a | 14 | | sale of
service may be shown as a distinct and separate item on | 15 | | the serviceman's
billing to the service customer. If the | 16 | | selling price is not so shown, the
selling price of the | 17 | | tangible personal property is deemed to be 50% of the
| 18 | | serviceman's entire billing to the service customer. When, | 19 | | however, a
serviceman contracts to design, develop, and | 20 | | produce special order machinery or
equipment, the tax imposed | 21 | | by this Act shall be based on the serviceman's
cost price of | 22 | | the tangible personal property transferred incident to the
| 23 | | completion of the contract.
| 24 | | 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 | | With respect to gasohol, as defined in the Use Tax Act, the | 5 | | tax imposed
by this Act shall apply to (i) 70% of the cost | 6 | | price of property
transferred as
an incident to the sale of | 7 | | service on or after January 1, 1990, and before
July 1, 2003, | 8 | | (ii) 80% of the selling price of property transferred as an
| 9 | | incident to the sale of service on or after July
1, 2003 and on | 10 | | or before July 1, 2017, and (iii) 100%
of
the cost price
| 11 | | thereafter.
If, at any time, however, the tax under this Act on | 12 | | sales of gasohol, as
defined in
the Use Tax Act, is imposed at | 13 | | the rate of 1.25%, then the
tax imposed by this Act applies to | 14 | | 100% of the proceeds of sales of gasohol
made during that time.
| 15 | | With respect to majority blended ethanol fuel, as defined | 16 | | in the Use Tax Act,
the
tax
imposed by this Act does not apply | 17 | | to the selling price of property transferred
as an incident to | 18 | | the sale of service on or after July 1, 2003 and on or before
| 19 | | December 31, 2023 but applies to 100% of the selling price | 20 | | thereafter.
| 21 | | With respect to biodiesel blends, as defined in the Use | 22 | | Tax Act, with no less
than 1% and no
more than 10% biodiesel, | 23 | | the tax imposed by this Act
applies to (i) 80% of the selling | 24 | | price of property transferred as an incident
to the sale of | 25 | | service on or after July 1, 2003 and on or before December 31, | 26 | | 2018
and (ii) 100% of the proceeds of the selling price
after |
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| 1 | | December 31, 2018 and before January 1, 2024. On and after | 2 | | January 1, 2024, the taxation of biodiesel, renewable diesel, | 3 | | and biodiesel blends shall be as provided in Section 3-5.1 of | 4 | | the Use Tax Act thereafter .
If, at any time, however, the tax | 5 | | under this Act on sales of biodiesel blends,
as
defined in the | 6 | | Use Tax Act, with no less than 1% and no more than 10% | 7 | | biodiesel
is imposed at the rate of 1.25%, then the
tax imposed | 8 | | by this Act applies to 100% of the proceeds of sales of | 9 | | biodiesel
blends with no less than 1% and no more than 10% | 10 | | biodiesel
made
during that time.
| 11 | | With respect to 100% biodiesel, as defined in the Use Tax | 12 | | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| 13 | | more than 10% but no more than 99% biodiesel material, the tax | 14 | | imposed by this
Act
does not apply to the proceeds of the | 15 | | selling price of property transferred
as an incident to the | 16 | | sale of service on or after July 1, 2003 and on or before
| 17 | | December 31, 2023 but applies to 100% of the selling price | 18 | | thereafter . On and after January 1, 2024, the taxation of | 19 | | biodiesel, renewable diesel, and biodiesel blends shall be as | 20 | | provided in Section 3-5.1 of the Use Tax Act.
| 21 | | At the election of any registered serviceman made for each | 22 | | fiscal year,
sales of service in which the aggregate annual | 23 | | cost price of tangible
personal property transferred as an | 24 | | incident to the sales of service is
less than 35%, or 75% in | 25 | | the case of servicemen transferring prescription
drugs or | 26 | | servicemen engaged in graphic arts production, of the |
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| 1 | | aggregate
annual total gross receipts from all sales of | 2 | | service, the tax imposed by
this Act shall be based on the | 3 | | serviceman's cost price of the tangible
personal property | 4 | | transferred incident to the sale of those services.
| 5 | | The tax shall be imposed at the rate of 1% on food prepared | 6 | | for
immediate consumption and transferred incident to a sale | 7 | | of service subject
to this Act or the Service Occupation Tax | 8 | | Act by an entity licensed under
the Hospital Licensing Act, | 9 | | the Nursing Home Care Act, the Assisted Living and Shared | 10 | | Housing Act, the ID/DD Community Care Act, the MC/DD Act, the | 11 | | Specialized Mental Health Rehabilitation Act of 2013, or the
| 12 | | Child Care Act of 1969, or an entity that holds a permit issued | 13 | | pursuant to the Life Care Facilities Act. The tax shall
also be | 14 | | imposed at the rate of 1% on food for human consumption that is
| 15 | | to be consumed off the
premises where it is sold (other than | 16 | | alcoholic beverages, food consisting of or infused with adult | 17 | | use cannabis, soft drinks, and
food that has been prepared for | 18 | | immediate consumption and is not
otherwise included in this | 19 | | paragraph) and prescription and
nonprescription medicines, | 20 | | drugs, medical appliances, products classified as Class III | 21 | | medical devices by the United States Food and Drug | 22 | | Administration that are used for cancer treatment pursuant to | 23 | | a prescription, as well as any accessories and components | 24 | | related to those devices, modifications to a motor
vehicle for | 25 | | the purpose of rendering it usable by a person with a | 26 | | disability, and
insulin, blood sugar testing materials, |
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| 1 | | syringes, and needles used by human diabetics. For the | 2 | | purposes of this Section, until September 1, 2009: the term | 3 | | "soft drinks" means any
complete, finished, ready-to-use, | 4 | | non-alcoholic drink, whether carbonated or
not, including but | 5 | | not limited to soda water, cola, fruit juice, vegetable
juice, | 6 | | carbonated water, and all other preparations commonly known as | 7 | | soft
drinks of whatever kind or description that are contained | 8 | | in any closed or
sealed can, carton, or container, regardless | 9 | | of size; but "soft drinks" does not
include coffee, tea, | 10 | | non-carbonated water, infant formula, milk or milk
products as | 11 | | defined in the Grade A Pasteurized Milk and Milk Products Act, | 12 | | or
drinks containing 50% or more natural fruit or vegetable | 13 | | 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 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 and | 24 | | food products that are
dispensed hot from a vending machine, | 25 | | regardless of the location of the vending
machine. Beginning | 26 | | August 1, 2009, and notwithstanding any other provisions of |
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| 1 | | this Act, "food for human consumption that is to be consumed | 2 | | off the premises where it is sold" includes all food sold | 3 | | through a vending machine, except soft drinks, candy, and food | 4 | | products that are dispensed hot from a vending machine, | 5 | | 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 | 12 | | other 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 | | Beginning on January 1, 2014 (the effective date of Public | 7 | | Act 98-122), "prescription and nonprescription medicines and | 8 | | drugs" includes medical cannabis purchased from a registered | 9 | | dispensing organization under the Compassionate Use of Medical | 10 | | Cannabis Program Act. | 11 | | As used in this Section, "adult use cannabis" means | 12 | | cannabis subject to tax under the Cannabis Cultivation | 13 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law | 14 | | and does not include cannabis subject to tax under the | 15 | | Compassionate Use of Medical Cannabis Program Act. | 16 | | (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19; | 17 | | 102-4, eff. 4-27-21; 102-16, eff. 6-17-21.) | 18 | | Section 20. The Retailers' Occupation Tax Act is amended | 19 | | by changing Section 2-10 as follows:
| 20 | | (35 ILCS 120/2-10)
| 21 | | Sec. 2-10. 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 | | gross receipts
from sales of tangible personal property made | 24 | | in the course of business.
|
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| 1 | | Beginning on July 1, 2000 and through December 31, 2000, | 2 | | with respect to
motor fuel, as defined in Section 1.1 of the | 3 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 4 | | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| 5 | | Beginning on August 6, 2010 through August 15, 2010, with | 6 | | respect to sales tax holiday items as defined in Section 2-8 of | 7 | | this Act, the
tax is imposed at the rate of 1.25%. | 8 | | Within 14 days after the effective date of this amendatory | 9 | | Act of the 91st
General Assembly, each retailer of motor fuel | 10 | | and gasohol shall cause the
following notice to be posted in a | 11 | | prominently visible place on each retail
dispensing device | 12 | | that is used to dispense motor
fuel or gasohol in the State of | 13 | | Illinois: "As of July 1, 2000, the State of
Illinois has | 14 | | eliminated the State's share of sales tax on motor fuel and
| 15 | | gasohol through December 31, 2000. The price on this pump | 16 | | should reflect the
elimination of the tax." The notice shall | 17 | | be printed in bold print on a sign
that is no smaller than 4 | 18 | | inches by 8 inches. The sign shall be clearly
visible to | 19 | | customers. Any retailer who fails to post or maintain a | 20 | | required
sign through December 31, 2000 is guilty of a petty | 21 | | offense for which the fine
shall be $500 per day per each | 22 | | retail premises where a violation occurs.
| 23 | | With respect to gasohol, as defined in the Use Tax Act, the | 24 | | tax imposed
by this Act applies to (i) 70% of the proceeds of | 25 | | sales made on or after
January 1, 1990, and before July 1, | 26 | | 2003, (ii) 80% of the proceeds of
sales made on or after July |
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| 1 | | 1, 2003 and on or before July 1, 2017, and (iii) 100% of the | 2 | | proceeds of sales
made thereafter.
If, at any time, however, | 3 | | the tax under this Act on sales of gasohol, as
defined in
the | 4 | | Use Tax Act, is imposed at the rate of 1.25%, then the
tax | 5 | | imposed by this Act applies to 100% of the proceeds of sales of | 6 | | gasohol
made during that time.
| 7 | | With respect to majority blended ethanol fuel, as defined | 8 | | in the Use Tax Act,
the
tax
imposed by this Act does not apply | 9 | | to the proceeds of sales made on or after
July 1, 2003 and on | 10 | | or before December 31, 2023 but applies to 100% of the
proceeds | 11 | | of sales made thereafter.
| 12 | | With respect to biodiesel blends, as defined in the Use | 13 | | Tax Act, with no less
than 1% and no
more than 10% biodiesel, | 14 | | the tax imposed by this Act
applies to (i) 80% of the proceeds | 15 | | of sales made on or after July 1, 2003
and on or before | 16 | | December 31, 2018 and (ii) 100% of the
proceeds of sales made | 17 | | after December 31, 2018 and before January 1, 2024. On and | 18 | | after January 1, 2024, the taxation of biodiesel, renewable | 19 | | diesel, and biodiesel blends shall be as provided in Section | 20 | | 3-5.1 of the Use Tax Act thereafter .
If, at any time, however, | 21 | | the tax under this Act on sales of biodiesel blends,
as
defined | 22 | | in the Use Tax Act, with no less than 1% and no more than 10% | 23 | | biodiesel
is imposed at the rate of 1.25%, then the
tax imposed | 24 | | by this Act applies to 100% of the proceeds of sales of | 25 | | biodiesel
blends with no less than 1% and no more than 10% | 26 | | 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, 2023 but | 6 | | applies to 100% of the
proceeds of sales made thereafter . On | 7 | | and after January 1, 2024, the taxation of biodiesel, | 8 | | renewable diesel, and biodiesel blends shall be as provided in | 9 | | Section 3-5.1 of the Use Tax Act.
| 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, food consisting of or infused with adult | 13 | | use cannabis, soft drinks, and
food that has been prepared for | 14 | | immediate consumption) and prescription and
nonprescription | 15 | | medicines, drugs, medical appliances, products classified as | 16 | | Class III medical devices by the United States Food and Drug | 17 | | Administration that are used for cancer treatment pursuant to | 18 | | a prescription, as well as any accessories and components | 19 | | related to those devices, modifications to a motor
vehicle for | 20 | | the purpose of rendering it usable by a person with a | 21 | | disability, and
insulin, blood sugar testing materials, | 22 | | syringes, and needles used by human diabetics, the tax is | 23 | | imposed at the rate of 1%. For the purposes of this
Section, | 24 | | until September 1, 2009: the term "soft drinks" means any | 25 | | complete, finished, ready-to-use,
non-alcoholic drink, whether | 26 | | carbonated or not, including but not limited to
soda water, |
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| 1 | | cola, fruit juice, vegetable juice, carbonated water, and all | 2 | | other
preparations commonly known as soft drinks of whatever | 3 | | kind or description that
are contained in any closed or sealed | 4 | | bottle, can, carton, or container,
regardless of size; but | 5 | | "soft drinks" does not include coffee, tea, non-carbonated
| 6 | | water, infant formula, milk or milk products as defined in the | 7 | | Grade A
Pasteurized Milk and Milk Products Act, or drinks | 8 | | containing 50% or more
natural fruit or vegetable juice.
| 9 | | Notwithstanding any other provisions of this
Act, | 10 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 11 | | beverages that contain natural or artificial sweeteners. "Soft | 12 | | drinks" do not include beverages that contain milk or milk | 13 | | products, soy, rice or similar milk substitutes, or greater | 14 | | than 50% of vegetable or fruit juice by volume. | 15 | | Until 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 and | 19 | | food products that are dispensed hot from a vending machine,
| 20 | | regardless of the location of the vending machine. Beginning | 21 | | August 1, 2009, and notwithstanding any other provisions of | 22 | | this Act, "food for human consumption that is to be consumed | 23 | | off the premises where it is sold" includes all food sold | 24 | | through a vending machine, except soft drinks, candy, and food | 25 | | products that are dispensed hot from a vending machine, | 26 | | regardless of the location of the vending machine.
|
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| 1 | | Notwithstanding any other provisions of this
Act, | 2 | | beginning September 1, 2009, "food for human consumption that | 3 | | is to be consumed off the premises where
it is sold" does not | 4 | | include candy. For purposes of this Section, "candy" means a | 5 | | preparation of sugar, honey, or other natural or artificial | 6 | | sweeteners in combination with chocolate, fruits, nuts or | 7 | | other ingredients or flavorings in the form of bars, drops, or | 8 | | pieces. "Candy" does not include any preparation that contains | 9 | | flour or requires refrigeration. | 10 | | Notwithstanding any other provisions of this
Act, | 11 | | beginning September 1, 2009, "nonprescription medicines and | 12 | | drugs" does not include grooming and hygiene products. For | 13 | | purposes of this Section, "grooming and hygiene products" | 14 | | includes, but is not limited to, soaps and cleaning solutions, | 15 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 16 | | lotions and screens, unless those products are available by | 17 | | prescription only, regardless of whether the products meet the | 18 | | definition of "over-the-counter-drugs". For the purposes of | 19 | | this paragraph, "over-the-counter-drug" means a drug for human | 20 | | use that contains a label that identifies the product as a drug | 21 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 22 | | label includes: | 23 | | (A) A "Drug Facts" panel; or | 24 | | (B) A statement of the "active ingredient(s)" with a | 25 | | list of those ingredients contained in the compound, | 26 | | substance or preparation.
|
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| 1 | | Beginning on the effective date of this amendatory Act of | 2 | | the 98th General Assembly, "prescription and nonprescription | 3 | | medicines and drugs" includes medical cannabis purchased from | 4 | | a registered dispensing organization under the Compassionate | 5 | | Use of Medical Cannabis Program Act. | 6 | | As used in this Section, "adult use cannabis" means | 7 | | cannabis subject to tax under the Cannabis Cultivation | 8 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law | 9 | | and does not include cannabis subject to tax under the | 10 | | Compassionate Use of Medical Cannabis Program Act. | 11 | | (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19; | 12 | | 102-4, eff. 4-27-21.)
| 13 | | Section 25. The Motor Fuel Tax Law is amended by adding | 14 | | Section 3d as follows: | 15 | | (35 ILCS 505/3d new) | 16 | | Sec. 3d. Right to blend. | 17 | | (a) A distributor who is properly licensed and permitted | 18 | | as a blender pursuant to this Act may blend petroleum-based | 19 | | diesel fuel with biodiesel and sell the blended or unblended | 20 | | product on any premises owned and operated by the distributor | 21 | | for the purpose of supporting or facilitating the retail sale | 22 | | of motor fuel. | 23 | | (b) A refiner or supplier of petroleum-based diesel fuel | 24 | | or biodiesel shall not refuse to sell or transport to a |
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| 1 | | distributor who is properly licensed and permitted as a | 2 | | blender pursuant to this Act any petroleum-based diesel fuel | 3 | | or biodiesel based on the distributor's or dealer's intent to | 4 | | use that product for blending.
| 5 | | Section 99. Effective date. This Act takes effect upon | 6 | | becoming law.
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