Full Text of HB1517 102nd General Assembly
HB1517 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB1517 Introduced 2/17/2021, by Rep. Emanuel Chris Welch SYNOPSIS AS INTRODUCED: | | |
Amends the Retailers' Occupation Tax Act. Makes a technical change in a
Section concerning the rate of tax.
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| | A BILL FOR |
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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 Retailers' Occupation Tax Act is amended by | 5 | | changing Section 2-10 as follows:
| 6 | | (35 ILCS 120/2-10)
| 7 | | Sec. 2-10. Rate of tax. Unless otherwise provided in this | 8 | | Section,
the
the tax imposed by this Act is at the rate of | 9 | | 6.25% of gross receipts
from sales of tangible personal | 10 | | property made in the course of business. | 11 | | Beginning on July 1, 2000 and through December 31, 2000, | 12 | | with respect to
motor fuel, as defined in Section 1.1 of the | 13 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 14 | | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| 15 | | Beginning on August 6, 2010 through August 15, 2010, with | 16 | | respect to sales tax holiday items as defined in Section 2-8 of | 17 | | this Act, the
tax is imposed at the rate of 1.25%. | 18 | | Within 14 days after the effective date of this amendatory | 19 | | Act of the 91st
General Assembly, each retailer of motor fuel | 20 | | and gasohol shall cause the
following notice to be posted in a | 21 | | prominently visible place on each retail
dispensing device | 22 | | that is used to dispense motor
fuel or gasohol in the State of | 23 | | Illinois: "As of July 1, 2000, the State of
Illinois has |
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| 1 | | eliminated the State's share of sales tax on motor fuel and
| 2 | | gasohol through December 31, 2000. The price on this pump | 3 | | should reflect the
elimination of the tax." The notice shall | 4 | | be printed in bold print on a sign
that is no smaller than 4 | 5 | | inches by 8 inches. The sign shall be clearly
visible to | 6 | | customers. Any retailer who fails to post or maintain a | 7 | | required
sign through December 31, 2000 is guilty of a petty | 8 | | offense for which the fine
shall be $500 per day per each | 9 | | retail premises where a violation occurs.
| 10 | | With respect to gasohol, as defined in the Use Tax Act, the | 11 | | tax imposed
by this Act applies to (i) 70% of the proceeds of | 12 | | sales made on or after
January 1, 1990, and before July 1, | 13 | | 2003, (ii) 80% of the proceeds of
sales made on or after July | 14 | | 1, 2003 and on or before July 1, 2017, and (iii) 100% of the | 15 | | proceeds of sales
made thereafter.
If, at any time, however, | 16 | | the tax under this Act on sales of gasohol, as
defined in
the | 17 | | Use Tax Act, is imposed at the rate of 1.25%, then the
tax | 18 | | imposed by this Act applies to 100% of the proceeds of sales of | 19 | | gasohol
made during that time.
| 20 | | With respect to majority blended ethanol fuel, as defined | 21 | | in the Use Tax Act,
the
tax
imposed by this Act does not apply | 22 | | to the proceeds of sales made on or after
July 1, 2003 and on | 23 | | or before December 31, 2023 but applies to 100% of the
proceeds | 24 | | of sales made 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 proceeds | 2 | | of sales made on or after July 1, 2003
and on or before | 3 | | December 31, 2018 and (ii) 100% of the
proceeds of sales made | 4 | | thereafter.
If, at any time, however, the tax under this Act on | 5 | | sales of biodiesel blends,
as
defined in the Use Tax Act, with | 6 | | no less than 1% and no more than 10% biodiesel
is imposed at | 7 | | the rate of 1.25%, then the
tax imposed by this Act applies to | 8 | | 100% of the proceeds of sales of biodiesel
blends with no less | 9 | | than 1% 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, the tax imposed | 13 | | by this Act
does not apply to the proceeds of sales made on or | 14 | | after July 1, 2003
and on or before December 31, 2023 but | 15 | | applies to 100% of the
proceeds of sales made thereafter.
| 16 | | With respect to food for human consumption that is to be | 17 | | consumed off the
premises where it is sold (other than | 18 | | alcoholic beverages, food consisting of or infused with adult | 19 | | use cannabis, soft drinks, and
food that has been prepared for | 20 | | immediate consumption) and prescription and
nonprescription | 21 | | medicines, drugs, medical appliances, products classified as | 22 | | Class III medical devices by the United States Food and Drug | 23 | | Administration that are used for cancer treatment pursuant to | 24 | | a prescription, as well as any accessories and components | 25 | | related to those devices, modifications to a motor
vehicle for | 26 | | the purpose of rendering it usable by a person with a |
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| 1 | | disability, and
insulin, urine testing materials, syringes, | 2 | | and needles used by diabetics, for
human use, the tax is | 3 | | imposed at the rate of 1%. For the purposes of this
Section, | 4 | | until September 1, 2009: the term "soft drinks" means any | 5 | | complete, finished, ready-to-use,
non-alcoholic drink, whether | 6 | | carbonated or not, including but not limited to
soda water, | 7 | | cola, fruit juice, vegetable juice, carbonated water, and all | 8 | | other
preparations commonly known as soft drinks of whatever | 9 | | kind or description that
are contained in any closed or sealed | 10 | | bottle, can, carton, or container,
regardless of size; but | 11 | | "soft drinks" does not include coffee, tea, non-carbonated
| 12 | | water, infant formula, milk or milk products as defined in the | 13 | | Grade A
Pasteurized Milk and Milk Products Act, or drinks | 14 | | containing 50% or more
natural fruit or vegetable juice.
| 15 | | Notwithstanding any other provisions of this
Act, | 16 | | beginning September 1, 2009, "soft drinks" means non-alcoholic | 17 | | beverages that contain natural or artificial sweeteners. "Soft | 18 | | drinks" do not include beverages that contain milk or milk | 19 | | products, soy, rice or similar milk substitutes, or greater | 20 | | than 50% of vegetable or fruit juice by volume. | 21 | | Until August 1, 2009, and notwithstanding any other | 22 | | provisions of this
Act, "food for human consumption that is to | 23 | | be consumed off the premises where
it is sold" includes all | 24 | | food sold through a vending machine, except soft
drinks and | 25 | | food products that are dispensed hot from a vending machine,
| 26 | | regardless of the location of the vending machine. Beginning |
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| 1 | | August 1, 2009, and notwithstanding any other provisions of | 2 | | this Act, "food for human consumption that is to be consumed | 3 | | off the premises where it is sold" includes all food sold | 4 | | through a vending machine, except soft drinks, candy, and food | 5 | | products that are dispensed hot from a vending machine, | 6 | | regardless of the location of the vending machine.
| 7 | | Notwithstanding any other provisions of this
Act, | 8 | | beginning September 1, 2009, "food for human consumption that | 9 | | is to be consumed off the premises where
it is sold" does not | 10 | | include candy. For purposes of this Section, "candy" means a | 11 | | preparation of sugar, honey, or other natural or artificial | 12 | | sweeteners in combination with chocolate, fruits, nuts or | 13 | | other ingredients or flavorings in the form of bars, drops, or | 14 | | pieces. "Candy" does not include any preparation that contains | 15 | | flour or requires refrigeration. | 16 | | Notwithstanding any other provisions of this
Act, | 17 | | beginning September 1, 2009, "nonprescription medicines and | 18 | | drugs" does not include grooming and hygiene products. For | 19 | | purposes of this Section, "grooming and hygiene products" | 20 | | includes, but is not limited to, soaps and cleaning solutions, | 21 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | 22 | | lotions and screens, unless those products are available by | 23 | | prescription only, regardless of whether the products meet the | 24 | | definition of "over-the-counter-drugs". For the purposes of | 25 | | this paragraph, "over-the-counter-drug" means a drug for human | 26 | | use that contains a label that identifies the product as a drug |
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| 1 | | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | 2 | | label 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 | 8 | | the 98th General Assembly, "prescription and nonprescription | 9 | | medicines and drugs" includes medical cannabis purchased from | 10 | | a registered dispensing organization under the Compassionate | 11 | | Use of Medical Cannabis Program Act. | 12 | | As used in this Section, "adult use cannabis" means | 13 | | cannabis subject to tax under the Cannabis Cultivation | 14 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law | 15 | | and does not include cannabis subject to tax under the | 16 | | Compassionate Use of Medical Cannabis Program Act. | 17 | | (Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19; | 18 | | 101-593, eff. 12-4-19.)
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