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90_SB1455sam001
LRB9011546KDksam
1 AMENDMENT TO SENATE BILL 1455
2 AMENDMENT NO. . Amend Senate Bill 1455 by replacing
3 everything after the enacting clause with the following:
4 "Section 5. The Use Tax Act is amended by changing
5 Section 3-10 as follows:
6 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
7 Sec. 3-10. Rate of tax. Unless otherwise provided in
8 this Section, the tax imposed by this Act is at the rate of
9 6.25% of either the selling price or the fair market value,
10 if any, of the tangible personal property. In all cases
11 where property functionally used or consumed is the same as
12 the property that was purchased at retail, then the tax is
13 imposed on the selling price of the property. In all cases
14 where property functionally used or consumed is a by-product
15 or waste product that has been refined, manufactured, or
16 produced from property purchased at retail, then the tax is
17 imposed on the lower of the fair market value, if any, of the
18 specific property so used in this State or on the selling
19 price of the property purchased at retail. For purposes of
20 this Section "fair market value" means the price at which
21 property would change hands between a willing buyer and a
22 willing seller, neither being under any compulsion to buy or
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1 sell and both having reasonable knowledge of the relevant
2 facts. The fair market value shall be established by Illinois
3 sales by the taxpayer of the same property as that
4 functionally used or consumed, or if there are no such sales
5 by the taxpayer, then comparable sales or purchases of
6 property of like kind and character in Illinois.
7 With respect to gasohol, the tax imposed by this Act
8 applies to 70% of the proceeds of sales made on or after
9 January 1, 1990, and before July 1, 2003 1999, and to 100% of
10 the proceeds of sales made thereafter, except that from July
11 1, 1997 to July 1, 1999, the rate shall be 85% for gasohol
12 sold in this State during the 12 months beginning July 1
13 following any calendar year for which the Department has
14 determined that the percentages in Section 10 of the Gasohol
15 Fuels Tax Abatement Act have not been met.
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, soft drinks, and food that has been
19 prepared for immediate consumption) and prescription and
20 nonprescription medicines, drugs, medical appliances,
21 modifications to a motor vehicle for the purpose of rendering
22 it usable by a disabled person, and insulin, urine testing
23 materials, syringes, and needles used by diabetics, for human
24 use, the tax is imposed at the rate of 1%. For the purposes
25 of this Section, the term "soft drinks" means any complete,
26 finished, ready-to-use, non-alcoholic drink, whether
27 carbonated or not, including but not limited to soda water,
28 cola, fruit juice, vegetable juice, carbonated water, and all
29 other preparations commonly known as soft drinks of whatever
30 kind or description that are contained in any closed or
31 sealed bottle, can, carton, or container, regardless of size.
32 "Soft drinks" does not include coffee, tea, non-carbonated
33 water, infant formula, milk or milk products as defined in
34 the Grade A Pasteurized Milk and Milk Products Act, or drinks
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1 containing 50% or more natural fruit or vegetable juice.
2 Notwithstanding any other provisions of this Act, "food
3 for human consumption that is to be consumed off the premises
4 where it is sold" includes all food sold through a vending
5 machine, except soft drinks and food products that are
6 dispensed hot from a vending machine, regardless of the
7 location of the vending machine.
8 If the property that is purchased at retail from a
9 retailer is acquired outside Illinois and used outside
10 Illinois before being brought to Illinois for use here and is
11 taxable under this Act, the "selling price" on which the tax
12 is computed shall be reduced by an amount that represents a
13 reasonable allowance for depreciation for the period of prior
14 out-of-state use.
15 (Source: P.A. 88-45; 89-359, eff. 8-17-95; 89-420, eff.
16 6-1-96; 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
17 Section 10. The Service Use Tax Act is amended by
18 changing 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
21 this Section, the tax imposed by this Act is at the rate of
22 6.25% of the selling price of tangible personal property
23 transferred as an incident to the sale of service, but, for
24 the purpose of computing this tax, in no event shall the
25 selling price be less than the cost price of the property to
26 the serviceman.
27 With respect to gasohol, as defined in the Use Tax Act,
28 the tax imposed by this Act applies to 70% of the selling
29 price of property transferred as an incident to the sale of
30 service on or after January 1, 1990, and before July 1, 2003
31 1999, and to 100% of the selling price thereafter, except
32 that from July 1, 1997 to July 1, 1999, the rate shall be 85%
-4- LRB9011546KDksam
1 for gasohol sold in this State during the 12 months beginning
2 July 1 following any calendar year for which the Department
3 has determined that the percentages in Section 10 of the
4 Gasohol Fuels Tax Abatement Act have not been met.
5 At the election of any registered serviceman made for
6 each fiscal year, sales of service in which the aggregate
7 annual cost price of tangible personal property transferred
8 as an incident to the sales of service is less than 35%, or
9 75% in the case of servicemen transferring prescription drugs
10 or servicemen engaged in graphic arts production, of the
11 aggregate annual total gross receipts from all sales of
12 service, the tax imposed by this Act shall be based on the
13 serviceman's cost price of the tangible personal property
14 transferred as an incident to the sale of those services.
15 The tax shall be imposed at the rate of 1% on food
16 prepared for immediate consumption and transferred incident
17 to a sale of service subject to this Act or the Service
18 Occupation Tax Act by an entity licensed under the Hospital
19 Licensing Act or the Nursing Home Care Act. The tax shall
20 also be imposed at the rate of 1% on food for human
21 consumption that is to be consumed off the premises where it
22 is sold (other than alcoholic beverages, soft drinks, and
23 food that has been prepared for immediate consumption and is
24 not otherwise included in this paragraph) and prescription
25 and nonprescription medicines, drugs, medical appliances,
26 modifications to a motor vehicle for the purpose of rendering
27 it usable by a disabled person, and insulin, urine testing
28 materials, syringes, and needles used by diabetics, for human
29 use. For the purposes of this Section, the term "soft drinks"
30 means any complete, finished, ready-to-use, non-alcoholic
31 drink, whether carbonated or not, including but not limited
32 to soda water, cola, fruit juice, vegetable juice, carbonated
33 water, and all other preparations commonly known as soft
34 drinks of whatever kind or description that are contained in
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1 any closed or sealed bottle, can, carton, or container,
2 regardless of size. "Soft drinks" does not include coffee,
3 tea, non-carbonated water, infant formula, milk or milk
4 products as defined in the Grade A Pasteurized Milk and Milk
5 Products Act, or drinks containing 50% or more natural fruit
6 or vegetable juice.
7 Notwithstanding any other provisions of this Act, "food
8 for human consumption that is to be consumed off the premises
9 where it is sold" includes all food sold through a vending
10 machine, except soft drinks and food products that are
11 dispensed hot from a vending machine, regardless of the
12 location of the vending machine.
13 If the property that is acquired from a serviceman is
14 acquired outside Illinois and used outside Illinois before
15 being brought to Illinois for use here and is taxable under
16 this Act, the "selling price" on which the tax is computed
17 shall be reduced by an amount that represents a reasonable
18 allowance for depreciation for the period of prior
19 out-of-state use.
20 (Source: P.A. 88-45; 89-359, eff. 8-17-95; 89-420, eff.
21 6-1-96; 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
22 Section 15. The Service Occupation Tax Act is amended by
23 changing Section 3-10 as follows:
24 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
25 Sec. 3-10. Rate of tax. Unless otherwise provided in
26 this Section, the tax imposed by this Act is at the rate of
27 6.25% of the "selling price", as defined in Section 2 of the
28 Service Use Tax Act, of the tangible personal property. For
29 the purpose of computing this tax, in no event shall the
30 "selling price" be less than the cost price to the serviceman
31 of the tangible personal property transferred. The selling
32 price of each item of tangible personal property transferred
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1 as an incident of a sale of service may be shown as a
2 distinct and separate item on the serviceman's billing to the
3 service customer. If the selling price is not so shown, the
4 selling price of the tangible personal property is deemed to
5 be 50% of the serviceman's entire billing to the service
6 customer. When, however, a serviceman contracts to design,
7 develop, and produce special order machinery or equipment,
8 the tax imposed by this Act shall be based on the
9 serviceman's cost price of the tangible personal property
10 transferred incident to the completion of the contract.
11 With respect to gasohol, as defined in the Use Tax Act,
12 the tax imposed by this Act shall apply to 70% of the cost
13 price of property transferred as an incident to the sale of
14 service on or after January 1, 1990, and before July 1, 2003
15 1999, and to 100% of the cost price thereafter, except that
16 from July 1, 1997 to July 1, 1999, the rate shall be 85% for
17 gasohol sold in this State during the 12 months beginning
18 July 1 following any calendar year for which the Department
19 has determined that the percentages in Section 10 of the
20 Gasohol Fuels Tax Abatement Act have not been met.
21 At the election of any registered serviceman made for
22 each fiscal year, sales of service in which the aggregate
23 annual cost price of tangible personal property transferred
24 as an incident to the sales of service is less than 35%, or
25 75% in the case of servicemen transferring prescription drugs
26 or servicemen engaged in graphic arts production, of the
27 aggregate annual total gross receipts from all sales of
28 service, the tax imposed by this Act shall be based on the
29 serviceman's cost price of the tangible personal property
30 transferred incident to the sale of those services.
31 The tax shall be imposed at the rate of 1% on food
32 prepared for immediate consumption and transferred incident
33 to a sale of service subject to this Act or the Service
34 Occupation Tax Act by an entity licensed under the Hospital
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1 Licensing Act or the Nursing Home Care Act. The tax shall
2 also be imposed at the rate of 1% on food for human
3 consumption that is to be consumed off the premises where it
4 is sold (other than alcoholic beverages, soft drinks, and
5 food that has been prepared for immediate consumption and is
6 not otherwise included in this paragraph) and prescription
7 and nonprescription medicines, drugs, medical appliances,
8 modifications to a motor vehicle for the purpose of rendering
9 it usable by a disabled person, and insulin, urine testing
10 materials, syringes, and needles used by diabetics, for human
11 use. For the purposes of this Section, the term "soft
12 drinks" means any complete, finished, ready-to-use,
13 non-alcoholic drink, whether carbonated or not, including but
14 not limited to soda water, cola, fruit juice, vegetable
15 juice, carbonated water, and all other preparations commonly
16 known as soft drinks of whatever kind or description that are
17 contained in any closed or sealed can, carton, or container,
18 regardless of size. "Soft drinks" does not include coffee,
19 tea, non-carbonated water, infant formula, milk or milk
20 products as defined in the Grade A Pasteurized Milk and Milk
21 Products Act, or drinks containing 50% or more natural fruit
22 or vegetable juice.
23 Notwithstanding any other provisions of this Act, "food
24 for human consumption that is to be consumed off the premises
25 where it is sold" includes all food sold through a vending
26 machine, except soft drinks and food products that are
27 dispensed hot from a vending machine, regardless of the
28 location of the vending machine.
29 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
30 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
31 Section 20. The Retailers' Occupation Tax Act is amended
32 by changing Section 2-10 as follows:
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1 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
2 Sec. 2-10. Rate of tax. Unless otherwise provided in
3 this Section, the tax imposed by this Act is at the rate of
4 6.25% of gross receipts from sales of tangible personal
5 property made in the course of business.
6 With respect to gasohol, as defined in the Use Tax Act,
7 the tax imposed by this Act applies to 70% of the proceeds of
8 sales made on or after January 1, 1990, and before July 1,
9 2003 1999, and to 100% of the proceeds of sales made
10 thereafter, except that from July 1, 1997 to July 1, 1999,
11 the rate shall be 85% for gasohol sold in this State during
12 the 12 months beginning July 1 following any calendar year
13 for which the Department has determined that the percentages
14 in Section 10 of the Gasohol Fuels Tax Abatement Act have not
15 been met.
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, soft drinks, and food that has been
19 prepared for immediate consumption) and prescription and
20 nonprescription medicines, drugs, medical appliances,
21 modifications to a motor vehicle for the purpose of rendering
22 it usable by a disabled person, and insulin, urine testing
23 materials, syringes, and needles used by diabetics, for human
24 use, the tax is imposed at the rate of 1%. For the purposes
25 of this Section, the term "soft drinks" means any complete,
26 finished, ready-to-use, non-alcoholic drink, whether
27 carbonated or not, including but not limited to soda water,
28 cola, fruit juice, vegetable juice, carbonated water, and all
29 other preparations commonly known as soft drinks of whatever
30 kind or description that are contained in any closed or
31 sealed bottle, can, carton, or container, regardless of size.
32 "Soft drinks" does not include coffee, tea, non-carbonated
33 water, infant formula, milk or milk products as defined in
34 the Grade A Pasteurized Milk and Milk Products Act, or drinks
-9- LRB9011546KDksam
1 containing 50% or more natural fruit or vegetable juice.
2 Notwithstanding any other provisions of this Act, "food
3 for human consumption that is to be consumed off the premises
4 where it is sold" includes all food sold through a vending
5 machine, except soft drinks and food products that are
6 dispensed hot from a vending machine, regardless of the
7 location of the vending machine.
8 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
9 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
10 (35 ILCS 125/Act rep.)
11 Section 25. The Gasohol Fuels Tax Abatement Act is
12 repealed.
13 Section 99. Effective date. This Act takes effect upon
14 becoming law.".