Public Act 93-0017
SB46 Enrolled LRB093 02617 SJM 02627 b
AN ACT concerning taxes.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. If and only if both Senate Bill 1212 and
House Bill 46 of the 93rd General Assembly become law, then
the Use Tax Act is amended by changing Section 3-10 and by
adding Sections 3-41, 3-42, 3-43, 3-44, and 3-44.5 as
follows:
(35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
Sec. 3-10. Rate of tax. Unless otherwise provided in
this Section, the tax imposed by this Act is at the rate of
6.25% of either the selling price or the fair market value,
if any, of the tangible personal property. In all cases
where property functionally used or consumed is the same as
the property that was purchased at retail, then the tax is
imposed on the selling price of the property. In all cases
where property functionally used or consumed is a by-product
or waste product that has been refined, manufactured, or
produced from property purchased at retail, then the tax is
imposed on the lower of the fair market value, if any, of the
specific property so used in this State or on the selling
price of the property purchased at retail. For purposes of
this Section "fair market value" means the price at which
property would change hands between a willing buyer and a
willing seller, neither being under any compulsion to buy or
sell and both having reasonable knowledge of the relevant
facts. The fair market value shall be established by Illinois
sales by the taxpayer of the same property as that
functionally used or consumed, or if there are no such sales
by the taxpayer, then comparable sales or purchases of
property of like kind and character in Illinois.
Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40
of the Use Tax Act, the tax is imposed at the rate of 1.25%.
With respect to gasohol, the tax imposed by this Act
applies to (i) 70% of the proceeds of sales made on or after
January 1, 1990, and before July 1, 2003, (ii) 80% of the
proceeds of sales made on or after July 1, 2003 and on or
before December 31, 2013, and (iii) to 100% of the proceeds
of sales made thereafter. If, at any time, however, the tax
under this Act on sales of gasohol is imposed at the rate of
1.25%, then the tax imposed by this Act applies to 100% of
the proceeds of sales of gasohol made during that time.
With respect to majority blended ethanol fuel, the tax
imposed by this Act does not apply to the proceeds of sales
made on or after July 1, 2003 and on or before December 31,
2013 but applies to 100% of the proceeds of sales made
thereafter.
With respect to biodiesel blends with no less than 1% and
no more than 10% biodiesel, the tax imposed by this Act
applies to (i) 80% of the proceeds of sales made on or after
July 1, 2003 and on or before December 31, 2013 and (ii) 100%
of the proceeds of sales made thereafter. If, at any time,
however, the tax under this Act on sales of biodiesel blends
with no less than 1% and no more than 10% biodiesel is
imposed at the rate of 1.25%, then the tax imposed by this
Act applies to 100% of the proceeds of sales of biodiesel
blends with no less than 1% and no more than 10% biodiesel
made during that time.
With respect to 100% biodiesel and biodiesel blends with
more than 10% but no more than 99% biodiesel, the tax imposed
by this Act does not apply to the proceeds of sales made on
or after July 1, 2003 and on or before December 31, 2013 but
applies to 100% of the proceeds of sales made thereafter.
With respect to food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances,
modifications to a motor vehicle for the purpose of rendering
it usable by a disabled person, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, the tax is imposed at the rate of 1%. For the purposes
of this Section, the term "soft drinks" means any complete,
finished, ready-to-use, non-alcoholic drink, whether
carbonated or not, including but not limited to soda water,
cola, fruit juice, vegetable juice, carbonated water, and all
other preparations commonly known as soft drinks of whatever
kind or description that are contained in any closed or
sealed bottle, can, carton, or container, regardless of size.
"Soft drinks" does not include coffee, tea, non-carbonated
water, infant formula, milk or milk products as defined in
the Grade A Pasteurized Milk and Milk Products Act, or drinks
containing 50% or more natural fruit or vegetable juice.
Notwithstanding any other provisions of this Act, "food
for human consumption that is to be consumed off the premises
where it is sold" includes all food sold through a vending
machine, except soft drinks and food products that are
dispensed hot from a vending machine, regardless of the
location of the vending machine.
If the property that is purchased at retail from a
retailer is acquired outside Illinois and used outside
Illinois before being brought to Illinois for use here and is
taxable under this Act, the "selling price" on which the tax
is computed shall be reduced by an amount that represents a
reasonable allowance for depreciation for the period of prior
out-of-state use.
(Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
91-51, eff. 6-30-99; 91-872, eff. 7-1-00.)
(35 ILCS 105/3-41 new)
Sec. 3-41. Biodiesel. "Biodiesel" means a renewable
diesel fuel derived from biomass that is intended for use in
diesel engines.
(35 ILCS 105/3-42 new)
Sec. 3-42. Biodiesel blend. "Biodiesel blend" means a
blend of biodiesel with petroleum-based diesel fuel in which
the resultant product contains no less than 1% and no more
than 99% biodiesel.
(35 ILCS 105/3-43 new)
Sec. 3-43. Biomass. "Biomass" means non-fossil organic
materials that have an intrinsic chemical energy content.
"Biomass" includes, but is not limited to, soybean oil, other
vegetable oils, and ethanol.
(35 ILCS 105/3-44 new)
Sec. 3-44. Majority blended ethanol fuel. "Majority
blended ethanol fuel" means motor fuel that contains not less
than 70% and no more than 90% denatured ethanol and no less
than 10% and no more than 30% gasoline.
(35 ILCS 105/3-44.5 new)
Sec. 3-44.5. Diesel fuel. "Diesel fuel" means any
product intended for use or offered for sale as a fuel for
engines in which the fuel is injected into the combustion
chamber and ignited by pressure without electric spark.
Section 10. If and only if both Senate Bill 1212 and
House Bill 46 of the 93rd General Assembly become law, then
the Service Use Tax Act is amended by changing Section 3-10
as follows:
(35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
Sec. 3-10. Rate of tax. Unless otherwise provided in
this Section, the tax imposed by this Act is at the rate of
6.25% of the selling price of tangible personal property
transferred as an incident to the sale of service, but, for
the purpose of computing this tax, in no event shall the
selling price be less than the cost price of the property to
the serviceman.
Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40
of the Use Tax Act, the tax is imposed at the rate of 1.25%.
With respect to gasohol, as defined in the Use Tax Act,
the tax imposed by this Act applies to (i) 70% of the selling
price of property transferred as an incident to the sale of
service on or after January 1, 1990, and before July 1, 2003,
(ii) 80% of the selling price of property transferred as an
incident to the sale of service on or after July 1, 2003 and
on or before December 31, 2013, and (iii) to 100% of the
selling price thereafter. If, at any time, however, the tax
under this Act on sales of gasohol, as defined in the Use Tax
Act, is imposed at the rate of 1.25%, then the tax imposed by
this Act applies to 100% of the proceeds of sales of gasohol
made during that time.
With respect to majority blended ethanol fuel, as defined
in the Use Tax Act, the tax imposed by this Act does not
apply to the selling price of property transferred as an
incident to the sale of service on or after July 1, 2003 and
on or before December 31, 2013 but applies to 100% of the
selling price thereafter.
With respect to biodiesel blends, as defined in the Use
Tax Act, with no less than 1% and no more than 10% biodiesel,
the tax imposed by this Act applies to (i) 80% of the selling
price of property transferred as an incident to the sale of
service on or after July 1, 2003 and on or before December
31, 2013 and (ii) 100% of the proceeds of the selling price
thereafter. If, at any time, however, the tax under this Act
on sales of biodiesel blends, as defined in the Use Tax Act,
with no less than 1% and no more than 10% biodiesel is
imposed at the rate of 1.25%, then the tax imposed by this
Act applies to 100% of the proceeds of sales of biodiesel
blends with no less than 1% and no more than 10% biodiesel
made during that time.
With respect to 100% biodiesel, as defined in the Use Tax
Act, and biodiesel blends, as defined in the Use Tax Act,
with more than 10% but no more than 99% biodiesel, the tax
imposed by this Act does not apply to the proceeds of the
selling price of property transferred as an incident to the
sale of service on or after July 1, 2003 and on or before
December 31, 2013 but applies to 100% of the selling price
thereafter.
At the election of any registered serviceman made for
each fiscal year, sales of service in which the aggregate
annual cost price of tangible personal property transferred
as an incident to the sales of service is less than 35%, or
75% in the case of servicemen transferring prescription drugs
or servicemen engaged in graphic arts production, of the
aggregate annual total gross receipts from all sales of
service, the tax imposed by this Act shall be based on the
serviceman's cost price of the tangible personal property
transferred as an incident to the sale of those services.
The tax shall be imposed at the rate of 1% on food
prepared for immediate consumption and transferred incident
to a sale of service subject to this Act or the Service
Occupation Tax Act by an entity licensed under the Hospital
Licensing Act, the Nursing Home Care Act, or the Child Care
Act of 1969. The tax shall also be imposed at the rate of 1%
on food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
soft drinks, and food that has been prepared for immediate
consumption and is not otherwise included in this paragraph)
and prescription and nonprescription medicines, drugs,
medical appliances, modifications to a motor vehicle for the
purpose of rendering it usable by a disabled person, and
insulin, urine testing materials, syringes, and needles used
by diabetics, for human use. For the purposes of this
Section, the term "soft drinks" means any complete, finished,
ready-to-use, non-alcoholic drink, whether carbonated or not,
including but not limited to soda water, cola, fruit juice,
vegetable juice, carbonated water, and all other preparations
commonly known as soft drinks of whatever kind or description
that are contained in any closed or sealed bottle, can,
carton, or container, regardless of size. "Soft drinks" does
not include coffee, tea, non-carbonated water, infant
formula, milk or milk products as defined in the Grade A
Pasteurized Milk and Milk Products Act, or drinks containing
50% or more natural fruit or vegetable juice.
Notwithstanding any other provisions of this Act, "food
for human consumption that is to be consumed off the premises
where it is sold" includes all food sold through a vending
machine, except soft drinks and food products that are
dispensed hot from a vending machine, regardless of the
location of the vending machine.
If the property that is acquired from a serviceman is
acquired outside Illinois and used outside Illinois before
being brought to Illinois for use here and is taxable under
this Act, the "selling price" on which the tax is computed
shall be reduced by an amount that represents a reasonable
allowance for depreciation for the period of prior
out-of-state use.
(Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
91-51, eff. 6-30-99; 91-541, eff. 8-13-99; 91-872, eff.
7-1-00.)
Section 15. If and only if both Senate Bill 1212 and
House Bill 46 of the 93rd General Assembly become law, then
the Service Occupation Tax Act is amended by changing Section
3-10 as follows:
(35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
Sec. 3-10. Rate of tax. Unless otherwise provided in
this Section, the tax imposed by this Act is at the rate of
6.25% of the "selling price", as defined in Section 2 of the
Service Use Tax Act, of the tangible personal property. For
the purpose of computing this tax, in no event shall the
"selling price" be less than the cost price to the serviceman
of the tangible personal property transferred. The selling
price of each item of tangible personal property transferred
as an incident of a sale of service may be shown as a
distinct and separate item on the serviceman's billing to the
service customer. If the selling price is not so shown, the
selling price of the tangible personal property is deemed to
be 50% of the serviceman's entire billing to the service
customer. When, however, a serviceman contracts to design,
develop, and produce special order machinery or equipment,
the tax imposed by this Act shall be based on the
serviceman's cost price of the tangible personal property
transferred incident to the completion of the contract.
Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40
of the Use Tax Act, the tax is imposed at the rate of 1.25%.
With respect to gasohol, as defined in the Use Tax Act,
the tax imposed by this Act shall apply to (i) 70% of the
cost price of property transferred as an incident to the sale
of service on or after January 1, 1990, and before July 1,
2003, (ii) 80% of the selling price of property transferred
as an incident to the sale of service on or after July 1,
2003 and on or before December 31, 2013, and (iii) to 100% of
the cost price thereafter. If, at any time, however, the tax
under this Act on sales of gasohol, as defined in the Use Tax
Act, is imposed at the rate of 1.25%, then the tax imposed by
this Act applies to 100% of the proceeds of sales of gasohol
made during that time.
With respect to majority blended ethanol fuel, as defined
in the Use Tax Act, the tax imposed by this Act does not
apply to the selling price of property transferred as an
incident to the sale of service on or after July 1, 2003 and
on or before December 31, 2013 but applies to 100% of the
selling price thereafter.
With respect to biodiesel blends, as defined in the Use
Tax Act, with no less than 1% and no more than 10% biodiesel,
the tax imposed by this Act applies to (i) 80% of the selling
price of property transferred as an incident to the sale of
service on or after July 1, 2003 and on or before December
31, 2013 and (ii) 100% of the proceeds of the selling price
thereafter. If, at any time, however, the tax under this Act
on sales of biodiesel blends, as defined in the Use Tax Act,
with no less than 1% and no more than 10% biodiesel is
imposed at the rate of 1.25%, then the tax imposed by this
Act applies to 100% of the proceeds of sales of biodiesel
blends with no less than 1% and no more than 10% biodiesel
made during that time.
With respect to 100% biodiesel, as defined in the Use Tax
Act, and biodiesel blends, as defined in the Use Tax Act,
with more than 10% but no more than 99% biodiesel material,
the tax imposed by this Act does not apply to the proceeds of
the selling price of property transferred as an incident to
the sale of service on or after July 1, 2003 and on or before
December 31, 2013 but applies to 100% of the selling price
thereafter.
At the election of any registered serviceman made for
each fiscal year, sales of service in which the aggregate
annual cost price of tangible personal property transferred
as an incident to the sales of service is less than 35%, or
75% in the case of servicemen transferring prescription drugs
or servicemen engaged in graphic arts production, of the
aggregate annual total gross receipts from all sales of
service, the tax imposed by this Act shall be based on the
serviceman's cost price of the tangible personal property
transferred incident to the sale of those services.
The tax shall be imposed at the rate of 1% on food
prepared for immediate consumption and transferred incident
to a sale of service subject to this Act or the Service
Occupation Tax Act by an entity licensed under the Hospital
Licensing Act, the Nursing Home Care Act, or the Child Care
Act of 1969. The tax shall also be imposed at the rate of 1%
on food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
soft drinks, and food that has been prepared for immediate
consumption and is not otherwise included in this paragraph)
and prescription and nonprescription medicines, drugs,
medical appliances, modifications to a motor vehicle for the
purpose of rendering it usable by a disabled person, and
insulin, urine testing materials, syringes, and needles used
by diabetics, for human use. For the purposes of this
Section, the term "soft drinks" means any complete, finished,
ready-to-use, non-alcoholic drink, whether carbonated or not,
including but not limited to soda water, cola, fruit juice,
vegetable juice, carbonated water, and all other preparations
commonly known as soft drinks of whatever kind or description
that are contained in any closed or sealed can, carton, or
container, regardless of size. "Soft drinks" does not
include coffee, tea, non-carbonated water, infant formula,
milk or milk products as defined in the Grade A Pasteurized
Milk and Milk Products Act, or drinks containing 50% or more
natural fruit or vegetable juice.
Notwithstanding any other provisions of this Act, "food
for human consumption that is to be consumed off the premises
where it is sold" includes all food sold through a vending
machine, except soft drinks and food products that are
dispensed hot from a vending machine, regardless of the
location of the vending machine.
(Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
91-51, 6-30-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00.)
Section 20. If and only if both Senate Bill 1212 and
House Bill 46 of the 93rd General Assembly become law, then
the Retailers' Occupation Tax Act is amended by changing
Section 2-10 as follows:
(35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
Sec. 2-10. Rate of tax. Unless otherwise provided in
this Section, the tax imposed by this Act is at the rate of
6.25% of gross receipts from sales of tangible personal
property made in the course of business.
Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40
of the Use Tax Act, the tax is imposed at the rate of 1.25%.
Within 14 days after the effective date of this
amendatory Act of the 91st General Assembly, each retailer of
motor fuel and gasohol shall cause the following notice to be
posted in a prominently visible place on each retail
dispensing device that is used to dispense motor fuel or
gasohol in the State of Illinois: "As of July 1, 2000, the
State of Illinois has eliminated the State's share of sales
tax on motor fuel and gasohol through December 31, 2000. The
price on this pump should reflect the elimination of the
tax." The notice shall be printed in bold print on a sign
that is no smaller than 4 inches by 8 inches. The sign shall
be clearly visible to customers. Any retailer who fails to
post or maintain a required sign through December 31, 2000 is
guilty of a petty offense for which the fine shall be $500
per day per each retail premises where a violation occurs.
With respect to gasohol, as defined in the Use Tax Act,
the tax imposed by this Act applies to (i) 70% of the
proceeds of sales made on or after January 1, 1990, and
before July 1, 2003, (ii) 80% of the proceeds of sales made
on or after July 1, 2003 and on or before December 31, 2013,
and (iii) to 100% of the proceeds of sales made thereafter.
If, at any time, however, the tax under this Act on sales of
gasohol, as defined in the Use Tax Act, is imposed at the
rate of 1.25%, then the tax imposed by this Act applies to
100% of the proceeds of sales of gasohol made during that
time.
With respect to majority blended ethanol fuel, as defined
in the Use Tax Act, the tax imposed by this Act does not
apply to the proceeds of sales made on or after July 1, 2003
and on or before December 31, 2013 but applies to 100% of the
proceeds of sales made thereafter.
With respect to biodiesel blends, as defined in the Use
Tax Act, with no less than 1% and no more than 10% biodiesel,
the tax imposed by this Act applies to (i) 80% of the
proceeds of sales made on or after July 1, 2003 and on or
before December 31, 2013 and (ii) 100% of the proceeds of
sales made thereafter. If, at any time, however, the tax
under this Act on sales of biodiesel blends, as defined in
the Use Tax Act, with no less than 1% and no more than 10%
biodiesel is imposed at the rate of 1.25%, then the tax
imposed by this Act applies to 100% of the proceeds of sales
of biodiesel blends with no less than 1% and no more than 10%
biodiesel made during that time.
With respect to 100% biodiesel, as defined in the Use Tax
Act, and biodiesel blends, as defined in the Use Tax Act,
with more than 10% but no more than 99% biodiesel, the tax
imposed by this Act does not apply to the proceeds of sales
made on or after July 1, 2003 and on or before December 31,
2013 but applies to 100% of the proceeds of sales made
thereafter.
With respect to food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances,
modifications to a motor vehicle for the purpose of rendering
it usable by a disabled person, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, the tax is imposed at the rate of 1%. For the purposes
of this Section, the term "soft drinks" means any complete,
finished, ready-to-use, non-alcoholic drink, whether
carbonated or not, including but not limited to soda water,
cola, fruit juice, vegetable juice, carbonated water, and all
other preparations commonly known as soft drinks of whatever
kind or description that are contained in any closed or
sealed bottle, can, carton, or container, regardless of size.
"Soft drinks" does not include coffee, tea, non-carbonated
water, infant formula, milk or milk products as defined in
the Grade A Pasteurized Milk and Milk Products Act, or drinks
containing 50% or more natural fruit or vegetable juice.
Notwithstanding any other provisions of this Act, "food
for human consumption that is to be consumed off the premises
where it is sold" includes all food sold through a vending
machine, except soft drinks and food products that are
dispensed hot from a vending machine, regardless of the
location of the vending machine.
(Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
91-51, eff. 6-30-99; 91-872, eff. 7-1-00.)
Section 25. If and only if both Senate Bill 1212 and
House Bill 46 of the 93rd General Assembly become law, then
the Motor Fuel Tax Law is amended by changing Section 2 as
follows:
(35 ILCS 505/2) (from Ch. 120, par. 418)
Sec. 2. A tax is imposed on the privilege of operating
motor vehicles upon the public highways and recreational-type
watercraft upon the waters of this State.
(a) Prior to August 1, 1989, the tax is imposed at the
rate of 13 cents per gallon on all motor fuel used in motor
vehicles operating on the public highways and recreational
type watercraft operating upon the waters of this State.
Beginning on August 1, 1989 and until January 1, 1990, the
rate of the tax imposed in this paragraph shall be 16 cents
per gallon. Beginning January 1, 1990, the rate of tax
imposed in this paragraph shall be 19 cents per gallon.
(b) The tax on the privilege of operating motor vehicles
which use diesel fuel shall be the rate according to
paragraph (a) plus an additional 2 1/2 cents per gallon.
"Diesel fuel" is defined as any petroleum product intended
for use or offered for sale as a fuel for engines in which
the fuel is injected into the combustion chamber and ignited
by pressure without electric spark.
(c) A tax is imposed upon the privilege of engaging in
the business of selling motor fuel as a retailer or reseller
on all motor fuel used in motor vehicles operating on the
public highways and recreational type watercraft operating
upon the waters of this State: (1) at the rate of 3 cents per
gallon on motor fuel owned or possessed by such retailer or
reseller at 12:01 a.m. on August 1, 1989; and (2) at the rate
of 3 cents per gallon on motor fuel owned or possessed by
such retailer or reseller at 12:01 A.M. on January 1, 1990.
Retailers and resellers who are subject to this
additional tax shall be required to inventory such motor fuel
and pay this additional tax in a manner prescribed by the
Department of Revenue.
The tax imposed in this paragraph (c) shall be in
addition to all other taxes imposed by the State of Illinois
or any unit of local government in this State.
(d) Except as provided in Section 2a, the collection of
a tax based on gallonage of gasoline used for the propulsion
of any aircraft is prohibited on and after October 1, 1979.
(e) The collection of a tax, based on gallonage of all
products commonly or commercially known or sold as 1-K
kerosene, regardless of its classification or uses, is
prohibited (i) on and after July 1, 1992 until December 31,
1999, except when the 1-K kerosene is either: (1) delivered
into bulk storage facilities of a bulk user, or (2) delivered
directly into the fuel supply tanks of motor vehicles and
(ii) on and after January 1, 2000. Beginning on January 1,
2000, the collection of a tax, based on gallonage of all
products commonly or commercially known or sold as 1-K
kerosene, regardless of its classification or uses, is
prohibited except when the 1-K kerosene is delivered directly
into a storage tank that is located at a facility that has
withdrawal facilities that are readily accessible to and are
capable of dispensing 1-K kerosene into the fuel supply tanks
of motor vehicles.
Any person who sells or uses 1-K kerosene for use in
motor vehicles upon which the tax imposed by this Law has not
been paid shall be liable for any tax due on the sales or use
of 1-K kerosene.
(Source: P.A. 91-173, eff. 1-1-00.)
Section 99. Effective date. This Act takes effect upon
becoming law.