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| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5583 Introduced , by Rep. Hoan Huynh SYNOPSIS AS INTRODUCED:
| | 35 ILCS 105/3-10 | | 35 ILCS 110/3-10 | from Ch. 120, par. 439.33-10 | 35 ILCS 115/3-10 | from Ch. 120, par. 439.103-10 | 35 ILCS 120/2-10 | |
| Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on January 1, 2025 | | | , with respect to firearms, the taxes under those Acts are imposed at the rate of 11%. Effective immediately. |
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| | A BILL FOR |
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1 | | AN ACT concerning revenue.
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2 | | Be it enacted by the People of the State of Illinois, |
3 | | represented in the General Assembly:
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4 | | Section 5. The Use Tax Act is amended by changing Section |
5 | | 3-10 as follows:
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6 | | (35 ILCS 105/3-10) |
7 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this |
8 | | Section, the tax imposed by this Act is at the rate of 6.25% of |
9 | | either the selling price or the fair market value, if any, of |
10 | | the tangible personal property. In all cases where property |
11 | | functionally used or consumed is the same as the property that |
12 | | was purchased at retail, then the tax is imposed on the selling |
13 | | price of the property. In all cases where property |
14 | | functionally used or consumed is a by-product or waste product |
15 | | that has been refined, manufactured, or produced from property |
16 | | purchased at retail, then the tax is imposed on the lower of |
17 | | the fair market value, if any, of the specific property so used |
18 | | in this State or on the selling price of the property purchased |
19 | | at retail. For purposes of this Section "fair market value" |
20 | | means the price at which property would change hands between a |
21 | | willing buyer and a willing seller, neither being under any |
22 | | compulsion to buy or sell and both having reasonable knowledge |
23 | | 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, and |
10 | | beginning again on August 5, 2022 through August 14, 2022, |
11 | | with respect to sales tax holiday items as defined in Section |
12 | | 3-6 of this Act, the tax is imposed at the rate of 1.25%. |
13 | | With respect to gasohol, the tax imposed by this Act |
14 | | applies to (i) 70% of the proceeds of sales made on or after |
15 | | January 1, 1990, and before July 1, 2003, (ii) 80% of the |
16 | | proceeds of sales made on or after July 1, 2003 and on or |
17 | | before July 1, 2017, (iii) 100% of the proceeds of sales made |
18 | | after July 1, 2017 and prior to January 1, 2024, (iv) 90% of |
19 | | the proceeds of sales made on or after January 1, 2024 and on |
20 | | or before December 31, 2028, and (v) 100% of the proceeds of |
21 | | sales made after December 31, 2028. If, at any time, however, |
22 | | the tax under this Act on sales of gasohol is imposed at the |
23 | | rate of 1.25%, then the tax imposed by this Act applies to 100% |
24 | | of the proceeds of sales of gasohol made during that time. |
25 | | With respect to mid-range ethanol blends, the tax imposed |
26 | | by this Act applies to (i) 80% of the proceeds of sales made on |
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1 | | or after January 1, 2024 and on or before December 31, 2028 and |
2 | | (ii) 100% of the proceeds of sales made thereafter. If, at any |
3 | | time, however, the tax under this Act on sales of mid-range |
4 | | ethanol blends 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 | | mid-range ethanol blends made during that time. |
7 | | With respect to majority blended ethanol fuel, the tax |
8 | | imposed by this Act does not apply to the proceeds of sales |
9 | | made on or after July 1, 2003 and on or before December 31, |
10 | | 2028 but applies to 100% of the proceeds of sales made |
11 | | thereafter. |
12 | | With respect to biodiesel blends with no less than 1% and |
13 | | no more than 10% biodiesel, the tax imposed by this Act applies |
14 | | to (i) 80% of the proceeds of sales made on or after July 1, |
15 | | 2003 and on or before December 31, 2018 and (ii) 100% of the |
16 | | proceeds of sales made after December 31, 2018 and before |
17 | | January 1, 2024. On and after January 1, 2024 and on or before |
18 | | December 31, 2030, the taxation of biodiesel, renewable |
19 | | diesel, and biodiesel blends shall be as provided in Section |
20 | | 3-5.1. If, at any time, however, the tax under this Act on |
21 | | sales of biodiesel blends with no less than 1% and no more than |
22 | | 10% biodiesel is imposed at the rate of 1.25%, then the tax |
23 | | imposed by this Act applies to 100% of the proceeds of sales of |
24 | | biodiesel blends with no less than 1% and no more than 10% |
25 | | biodiesel made during that time. |
26 | | With respect to biodiesel and biodiesel blends with more |
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1 | | than 10% but no more than 99% biodiesel, the tax imposed by |
2 | | this Act does not apply to the proceeds of sales made on or |
3 | | after July 1, 2003 and on or before December 31, 2023. On and |
4 | | after January 1, 2024 and on or before December 31, 2030, the |
5 | | taxation of biodiesel, renewable diesel, and biodiesel blends |
6 | | shall be as provided in Section 3-5.1. |
7 | | Until July 1, 2022 and beginning again on July 1, 2023, |
8 | | with respect to food for human consumption that is to be |
9 | | consumed off the premises where it is sold (other than |
10 | | alcoholic beverages, food consisting of or infused with adult |
11 | | use cannabis, soft drinks, and food that has been prepared for |
12 | | immediate consumption), the tax is imposed at the rate of 1%. |
13 | | Beginning on July 1, 2022 and until July 1, 2023, with respect |
14 | | to food for human consumption that is to be consumed off the |
15 | | premises where it is sold (other than alcoholic beverages, |
16 | | food consisting of or infused with adult use cannabis, soft |
17 | | drinks, and food that has been prepared for immediate |
18 | | consumption), the tax is imposed at the rate of 0%. |
19 | | With respect to prescription and nonprescription |
20 | | medicines, drugs, medical appliances, products classified as |
21 | | Class III 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, the tax is |
2 | | imposed at the rate of 1%. For the purposes of this Section, |
3 | | until September 1, 2009: the term "soft drinks" means any |
4 | | complete, finished, ready-to-use, non-alcoholic drink, whether |
5 | | carbonated or not, including, but not limited to, soda water, |
6 | | cola, fruit juice, vegetable juice, carbonated water, and all |
7 | | other preparations commonly known as soft drinks of whatever |
8 | | kind or description that are contained in any closed or sealed |
9 | | bottle, can, carton, or container, regardless of size; but |
10 | | "soft drinks" does not include coffee, tea, non-carbonated |
11 | | water, infant formula, milk or milk products as defined in the |
12 | | Grade A Pasteurized Milk and Milk Products Act, or drinks |
13 | | containing 50% or more natural fruit or vegetable 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" does 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 CFR 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 | | If the property that is purchased at retail from a |
17 | | retailer is acquired outside Illinois and used outside |
18 | | Illinois before being brought to Illinois for use here and is |
19 | | taxable under this Act, the "selling price" on which the tax is |
20 | | computed shall be reduced by an amount that represents a |
21 | | reasonable allowance for depreciation for the period of prior |
22 | | out-of-state use. |
23 | | Beginning on January 1, 2025, with respect to firearms, |
24 | | the tax is imposed at the rate of 11%. |
25 | | (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20, |
26 | | Section 20-5, eff. 4-19-22; 102-700, Article 60, Section |
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1 | | 60-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff. |
2 | | 4-19-22; 103-9, eff. 6-7-23; 103-154 eff. 6-30-23.)
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3 | | Section 10. The Service Use Tax Act is amended by changing |
4 | | Section 3-10 as follows:
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5 | | (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10) |
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 of tangible personal property transferred as |
9 | | an incident to the sale of service, but, for the purpose of |
10 | | computing this tax, in no event shall the selling price be less |
11 | | than the cost price of the property to the serviceman. |
12 | | Beginning on July 1, 2000 and through December 31, 2000, |
13 | | with respect to motor fuel, as defined in Section 1.1 of the |
14 | | Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of |
15 | | the Use Tax Act, the tax is imposed at the rate of 1.25%. |
16 | | With respect to gasohol, as defined in the Use Tax Act, the |
17 | | tax imposed by this Act applies to (i) 70% of the selling price |
18 | | of property transferred as an incident to the sale of service |
19 | | on or after January 1, 1990, and before July 1, 2003, (ii) 80% |
20 | | of the selling price of property transferred as an incident to |
21 | | the sale of service on or after July 1, 2003 and on or before |
22 | | July 1, 2017, (iii) 100% of the selling price of property |
23 | | transferred as an incident to the sale of service after July 1, |
24 | | 2017 and before January 1, 2024, (iv) 90% of the selling price |
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1 | | of property transferred as an incident to the sale of service |
2 | | on or after January 1, 2024 and on or before December 31, 2028, |
3 | | and (v) 100% of the selling price of property transferred as an |
4 | | incident to the sale of service after December 31, 2028. If, at |
5 | | any time, however, the tax under this Act on sales of gasohol, |
6 | | as defined in the Use Tax Act, is imposed at the rate of 1.25%, |
7 | | then the tax imposed by this Act applies to 100% of the |
8 | | proceeds of sales of gasohol made during that time. |
9 | | With respect to mid-range ethanol blends, as defined in |
10 | | Section 3-44.3 of the Use Tax Act, the tax imposed by this Act |
11 | | applies to (i) 80% of the selling price of property |
12 | | transferred as an incident to the sale of service on or after |
13 | | January 1, 2024 and on or before December 31, 2028 and (ii) |
14 | | 100% of the selling price of property transferred as an |
15 | | incident to the sale of service after December 31, 2028. If, at |
16 | | any time, however, the tax under this Act on sales of mid-range |
17 | | ethanol blends is imposed at the rate of 1.25%, then the tax |
18 | | imposed by this Act applies to 100% of the selling price of |
19 | | mid-range ethanol blends transferred as an incident to the |
20 | | sale of service during that time. |
21 | | With respect to majority blended ethanol fuel, as defined |
22 | | in the Use Tax Act, the tax imposed by this Act does not apply |
23 | | to the selling price of property transferred as an incident to |
24 | | the sale of service on or after July 1, 2003 and on or before |
25 | | December 31, 2028 but applies to 100% of the selling price |
26 | | thereafter. |
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1 | | With respect to biodiesel blends, as defined in the Use |
2 | | Tax Act, with no less than 1% and no more than 10% biodiesel, |
3 | | the tax imposed by this Act applies to (i) 80% of the selling |
4 | | price of property transferred as an incident to the sale of |
5 | | service on or after July 1, 2003 and on or before December 31, |
6 | | 2018 and (ii) 100% of the proceeds of the selling price after |
7 | | December 31, 2018 and before January 1, 2024. On and after |
8 | | January 1, 2024 and on or before December 31, 2030, the |
9 | | taxation of biodiesel, renewable diesel, and biodiesel blends |
10 | | shall be as provided in Section 3-5.1 of the Use Tax Act. If, |
11 | | at any time, however, the tax under this Act on sales of |
12 | | biodiesel blends, as defined in the Use Tax Act, with no less |
13 | | than 1% and no more than 10% biodiesel is imposed at the rate |
14 | | of 1.25%, then the tax imposed by this Act applies to 100% of |
15 | | the proceeds of sales of biodiesel blends with no less than 1% |
16 | | and no more than 10% biodiesel made during that time. |
17 | | With respect to biodiesel, as defined in the Use Tax Act, |
18 | | and biodiesel blends, as defined in the Use Tax Act, with more |
19 | | than 10% but no more than 99% biodiesel, the tax imposed by |
20 | | this Act does not apply to the proceeds of the selling price of |
21 | | property transferred as an incident to the sale of service on |
22 | | or after July 1, 2003 and on or before December 31, 2023. On |
23 | | and after January 1, 2024 and on or before December 31, 2030, |
24 | | the taxation of biodiesel, renewable diesel, and biodiesel |
25 | | blends shall be as provided in Section 3-5.1 of the Use Tax |
26 | | Act. |
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1 | | At the election of any registered serviceman made for each |
2 | | fiscal year, sales of service in which the aggregate annual |
3 | | cost price of tangible personal property transferred as an |
4 | | incident to the sales of service is less than 35%, or 75% in |
5 | | the case of servicemen transferring prescription drugs or |
6 | | servicemen engaged in graphic arts production, of the |
7 | | aggregate annual total gross receipts from all sales of |
8 | | service, the tax imposed by this Act shall be based on the |
9 | | serviceman's cost price of the tangible personal property |
10 | | transferred as an incident to the sale of those services. |
11 | | Until July 1, 2022 and beginning again on July 1, 2023, the |
12 | | tax shall be imposed at the rate of 1% on food prepared for |
13 | | immediate consumption and transferred incident to a sale of |
14 | | service subject to this Act or the Service Occupation Tax Act |
15 | | by an entity licensed under the Hospital Licensing Act, the |
16 | | Nursing Home Care Act, the Assisted Living and Shared Housing |
17 | | Act, the ID/DD Community Care Act, the MC/DD Act, the |
18 | | Specialized Mental Health Rehabilitation Act of 2013, or the |
19 | | Child Care Act of 1969, or an entity that holds a permit issued |
20 | | pursuant to the Life Care Facilities Act. Until July 1, 2022 |
21 | | and beginning again on July 1, 2023, the tax shall also be |
22 | | imposed at the rate of 1% on food for human consumption that is |
23 | | to be 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 is not otherwise included in this |
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1 | | paragraph). |
2 | | Beginning on July 1, 2022 and until July 1, 2023, the tax |
3 | | shall be imposed at the rate of 0% on food prepared for |
4 | | immediate consumption and transferred incident to a sale of |
5 | | service subject to this Act or the Service Occupation Tax Act |
6 | | by an entity licensed under the Hospital Licensing Act, the |
7 | | Nursing Home Care Act, the Assisted Living and Shared Housing |
8 | | Act, the ID/DD Community Care Act, the MC/DD Act, the |
9 | | Specialized Mental Health Rehabilitation Act of 2013, or the |
10 | | Child Care Act of 1969, or an entity that holds a permit issued |
11 | | pursuant to the Life Care Facilities Act. Beginning on July 1, |
12 | | 2022 and until July 1, 2023, the tax shall also be imposed at |
13 | | the rate of 0% on food for human consumption that is to be |
14 | | consumed off the premises where it is sold (other than |
15 | | alcoholic beverages, food consisting of or infused with adult |
16 | | use cannabis, soft drinks, and food that has been prepared for |
17 | | immediate consumption and is not otherwise included in this |
18 | | paragraph). |
19 | | The tax shall also be imposed at the rate of 1% on |
20 | | prescription and nonprescription medicines, drugs, medical |
21 | | appliances, products classified as Class III medical devices |
22 | | by the United States Food and Drug Administration that are |
23 | | used for cancer treatment pursuant to a prescription, as well |
24 | | as any accessories and components related to those devices, |
25 | | modifications to a motor vehicle for the purpose of rendering |
26 | | it usable by a person with a disability, and insulin, blood |
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1 | | sugar testing materials, syringes, and needles used by human |
2 | | diabetics. For the purposes of this Section, until September |
3 | | 1, 2009: the term "soft drinks" means any complete, finished, |
4 | | ready-to-use, non-alcoholic drink, whether carbonated or not, |
5 | | including, but not limited to, soda water, cola, fruit juice, |
6 | | vegetable juice, carbonated water, and all other preparations |
7 | | commonly known as soft drinks of whatever kind or description |
8 | | that are contained in any closed or sealed bottle, can, |
9 | | carton, or container, regardless of size; but "soft drinks" |
10 | | does not include coffee, tea, non-carbonated water, infant |
11 | | formula, milk or milk products as defined in the Grade A |
12 | | Pasteurized Milk and Milk Products Act, or drinks containing |
13 | | 50% or more natural fruit or vegetable 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" does 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 CFR 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 | | Beginning on January 1, 2025, with respect to firearms, |
17 | | the tax is imposed at the rate of 11%. |
18 | | If the property that is acquired from a serviceman is |
19 | | acquired outside Illinois and used outside Illinois before |
20 | | being brought to Illinois for use here and is taxable under |
21 | | this Act, the "selling price" on which the tax is computed |
22 | | shall be reduced by an amount that represents a reasonable |
23 | | allowance for depreciation for the period of prior |
24 | | out-of-state use. |
25 | | (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; |
26 | | 102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700, |
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1 | | Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23; |
2 | | 103-154, eff. 6-30-23.)
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3 | | Section 15. The Service Occupation Tax Act is amended by |
4 | | changing Section 3-10 as follows:
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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, (iii) 100% of the selling price of |
11 | | property transferred as an incident to the sale of service |
12 | | after July 1, 2017 and prior to January 1, 2024, (iv) 90% of |
13 | | the selling price of property transferred as an incident to |
14 | | the sale of service on or after January 1, 2024 and on or |
15 | | before December 31, 2028, and (v) 100% of the selling price of |
16 | | property transferred as an incident to the sale of service |
17 | | after December 31, 2028. If, at any time, however, the tax |
18 | | under this Act on sales of gasohol, as defined in the Use Tax |
19 | | Act, is imposed at the rate of 1.25%, then the tax imposed by |
20 | | this Act applies to 100% of the proceeds of sales of gasohol |
21 | | made during that time. |
22 | | With respect to mid-range ethanol blends, as defined in |
23 | | Section 3-44.3 of the Use Tax Act, the tax imposed by this Act |
24 | | applies to (i) 80% of the selling price of property |
25 | | transferred as an incident to the sale of service on or after |
26 | | January 1, 2024 and on or before December 31, 2028 and (ii) |
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1 | | 100% of the selling price of property transferred as an |
2 | | incident to the sale of service after December 31, 2028. If, at |
3 | | any time, however, the tax under this Act on sales of mid-range |
4 | | ethanol blends is imposed at the rate of 1.25%, then the tax |
5 | | imposed by this Act applies to 100% of the selling price of |
6 | | mid-range ethanol blends transferred as an incident to the |
7 | | sale of service during that time. |
8 | | With respect to majority blended ethanol fuel, as defined |
9 | | in the Use Tax Act, the tax imposed by this Act does not apply |
10 | | to the selling price of property transferred as an incident to |
11 | | the sale of service on or after July 1, 2003 and on or before |
12 | | December 31, 2028 but applies to 100% of the selling price |
13 | | thereafter. |
14 | | With respect to biodiesel blends, as defined in the Use |
15 | | Tax Act, with no less than 1% and no more than 10% biodiesel, |
16 | | the tax imposed by this Act applies to (i) 80% of the selling |
17 | | price of property transferred as an incident to the sale of |
18 | | service on or after July 1, 2003 and on or before December 31, |
19 | | 2018 and (ii) 100% of the proceeds of the selling price after |
20 | | December 31, 2018 and before January 1, 2024. On and after |
21 | | January 1, 2024 and on or before December 31, 2030, the |
22 | | taxation of biodiesel, renewable diesel, and biodiesel blends |
23 | | shall be as provided in Section 3-5.1 of the Use Tax Act. If, |
24 | | at any time, however, the tax under this Act on sales of |
25 | | biodiesel blends, as defined in the Use Tax Act, with no less |
26 | | than 1% and no more than 10% biodiesel is imposed at the rate |
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1 | | of 1.25%, then the tax imposed by this Act applies to 100% of |
2 | | the proceeds of sales of biodiesel blends with no less than 1% |
3 | | and no more than 10% biodiesel made during that time. |
4 | | With respect to biodiesel, as defined in the Use Tax Act, |
5 | | and biodiesel blends, as defined in the Use Tax Act, with more |
6 | | than 10% but no more than 99% biodiesel material, the tax |
7 | | imposed by this Act does not apply to the proceeds of the |
8 | | selling price of property transferred as an incident to the |
9 | | sale of service on or after July 1, 2003 and on or before |
10 | | December 31, 2023. On and after January 1, 2024 and on or |
11 | | before December 31, 2030, the taxation of biodiesel, renewable |
12 | | diesel, and biodiesel blends shall be as provided in Section |
13 | | 3-5.1 of the Use Tax Act. |
14 | | At the election of any registered serviceman made for each |
15 | | fiscal year, sales of service in which the aggregate annual |
16 | | cost price of tangible personal property transferred as an |
17 | | incident to the sales of service is less than 35%, or 75% in |
18 | | the case of servicemen transferring prescription drugs or |
19 | | servicemen engaged in graphic arts production, of the |
20 | | aggregate annual total gross receipts from all sales of |
21 | | service, the tax imposed by this Act shall be based on the |
22 | | serviceman's cost price of the tangible personal property |
23 | | transferred incident to the sale of those services. |
24 | | Until July 1, 2022 and beginning again on July 1, 2023, the |
25 | | tax shall be imposed at the rate of 1% on food prepared for |
26 | | immediate consumption and transferred incident to a sale of |
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1 | | service subject to this Act or the Service Use Tax Act by an |
2 | | entity licensed under the Hospital Licensing Act, the Nursing |
3 | | Home Care Act, the Assisted Living and Shared Housing Act, the |
4 | | ID/DD Community Care Act, the MC/DD Act, the Specialized |
5 | | Mental Health Rehabilitation Act of 2013, or the Child Care |
6 | | Act of 1969, or an entity that holds a permit issued pursuant |
7 | | to the Life Care Facilities Act. Until July 1, 2022 and |
8 | | beginning again on July 1, 2023, the tax shall also be imposed |
9 | | at the rate of 1% on food for human consumption that is to be |
10 | | consumed off the premises where it is sold (other than |
11 | | alcoholic beverages, food consisting of or infused with adult |
12 | | use cannabis, soft drinks, and food that has been prepared for |
13 | | immediate consumption and is not otherwise included in this |
14 | | paragraph). |
15 | | Beginning on July 1, 2022 and until July 1, 2023, the tax |
16 | | shall be imposed at the rate of 0% on food prepared for |
17 | | immediate consumption and transferred incident to a sale of |
18 | | service subject to this Act or the Service Use Tax Act by an |
19 | | entity licensed under the Hospital Licensing Act, the Nursing |
20 | | Home Care Act, the Assisted Living and Shared Housing Act, the |
21 | | ID/DD Community Care Act, the MC/DD Act, the Specialized |
22 | | Mental Health Rehabilitation Act of 2013, or the Child Care |
23 | | Act of 1969, or an entity that holds a permit issued pursuant |
24 | | to the Life Care Facilities Act. Beginning July 1, 2022 and |
25 | | until July 1, 2023, the tax shall also be imposed at the rate |
26 | | of 0% on food for human consumption that is to be consumed off |
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1 | | the premises where it is sold (other than alcoholic beverages, |
2 | | food consisting of or infused with adult use cannabis, soft |
3 | | drinks, and food that has been prepared for immediate |
4 | | consumption and is not otherwise included in this paragraph). |
5 | | The tax shall also be imposed at the rate of 1% on |
6 | | prescription and nonprescription medicines, drugs, medical |
7 | | appliances, products classified as Class III medical devices |
8 | | by the United States Food and Drug Administration that are |
9 | | used for cancer treatment pursuant to a prescription, as well |
10 | | as any accessories and components related to those devices, |
11 | | modifications to a motor vehicle for the purpose of rendering |
12 | | it usable by a person with a disability, and insulin, blood |
13 | | sugar testing materials, syringes, and needles used by human |
14 | | diabetics. For the purposes of this Section, until September |
15 | | 1, 2009: the term "soft drinks" means any complete, finished, |
16 | | ready-to-use, non-alcoholic drink, whether carbonated or not, |
17 | | including, but not limited to, soda water, cola, fruit juice, |
18 | | vegetable juice, carbonated water, and all other preparations |
19 | | commonly known as soft drinks of whatever kind or description |
20 | | that are contained in any closed or sealed can, carton, or |
21 | | container, regardless of size; but "soft drinks" does not |
22 | | include coffee, tea, non-carbonated water, infant formula, |
23 | | milk or milk products as defined in the Grade A Pasteurized |
24 | | Milk and Milk Products Act, or drinks containing 50% or more |
25 | | natural fruit or vegetable juice. |
26 | | Notwithstanding any other provisions of this Act, |
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1 | | beginning September 1, 2009, "soft drinks" means non-alcoholic |
2 | | beverages that contain natural or artificial sweeteners. "Soft |
3 | | drinks" does not include beverages that contain milk or milk |
4 | | products, soy, rice or similar milk substitutes, or greater |
5 | | than 50% of vegetable or fruit juice by volume. |
6 | | Until August 1, 2009, and notwithstanding any other |
7 | | provisions of this Act, "food for human consumption that is to |
8 | | be consumed off the premises where it is sold" includes all |
9 | | food sold through a vending machine, except soft drinks and |
10 | | food products that are dispensed hot from a vending machine, |
11 | | regardless of the location of the vending machine. Beginning |
12 | | August 1, 2009, and notwithstanding any other provisions of |
13 | | this Act, "food for human consumption that is to be consumed |
14 | | off the premises where it is sold" includes all food sold |
15 | | through a vending machine, except soft drinks, candy, and food |
16 | | products that are dispensed hot from a vending machine, |
17 | | regardless of the location of the vending machine. |
18 | | Notwithstanding any other provisions of this Act, |
19 | | beginning September 1, 2009, "food for human consumption that |
20 | | is to be consumed off the premises where it is sold" does not |
21 | | include candy. For purposes of this Section, "candy" means a |
22 | | preparation of sugar, honey, or other natural or artificial |
23 | | sweeteners in combination with chocolate, fruits, nuts or |
24 | | other ingredients or flavorings in the form of bars, drops, or |
25 | | pieces. "Candy" does not include any preparation that contains |
26 | | flour or requires refrigeration. |
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1 | | Notwithstanding any other provisions of this Act, |
2 | | beginning September 1, 2009, "nonprescription medicines and |
3 | | drugs" does not include grooming and hygiene products. For |
4 | | purposes of this Section, "grooming and hygiene products" |
5 | | includes, but is not limited to, soaps and cleaning solutions, |
6 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan |
7 | | lotions and screens, unless those products are available by |
8 | | prescription only, regardless of whether the products meet the |
9 | | definition of "over-the-counter-drugs". For the purposes of |
10 | | this paragraph, "over-the-counter-drug" means a drug for human |
11 | | use that contains a label that identifies the product as a drug |
12 | | as required by 21 CFR 201.66. The "over-the-counter-drug" |
13 | | label includes: |
14 | | (A) a "Drug Facts" panel; or |
15 | | (B) a statement of the "active ingredient(s)" with a |
16 | | list of those ingredients contained in the compound, |
17 | | substance or preparation. |
18 | | Beginning on January 1, 2014 (the effective date of Public |
19 | | Act 98-122), "prescription and nonprescription medicines and |
20 | | drugs" includes medical cannabis purchased from a registered |
21 | | dispensing organization under the Compassionate Use of Medical |
22 | | Cannabis Program Act. |
23 | | As used in this Section, "adult use cannabis" means |
24 | | cannabis subject to tax under the Cannabis Cultivation |
25 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law |
26 | | and does not include cannabis subject to tax under the |
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1 | | Compassionate Use of Medical Cannabis Program Act. |
2 | | Beginning on January 1, 2025, with respect to firearms, |
3 | | the tax is imposed at the rate of 11%. |
4 | | (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; |
5 | | 102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700, |
6 | | Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23; |
7 | | 103-154, eff. 6-30-23.)
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8 | | Section 20. The Retailers' Occupation Tax Act is amended |
9 | | by changing Section 2-10 as follows:
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10 | | (35 ILCS 120/2-10) |
11 | | Sec. 2-10. Rate of tax. Unless otherwise provided in this |
12 | | Section, the tax imposed by this Act is at the rate of 6.25% of |
13 | | gross receipts from sales of tangible personal property made |
14 | | in the course of business. |
15 | | Beginning on July 1, 2000 and through December 31, 2000, |
16 | | with respect to motor fuel, as defined in Section 1.1 of the |
17 | | Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of |
18 | | the Use Tax Act, the tax is imposed at the rate of 1.25%. |
19 | | Beginning on August 6, 2010 through August 15, 2010, and |
20 | | beginning again on August 5, 2022 through August 14, 2022, |
21 | | with respect to sales tax holiday items as defined in Section |
22 | | 2-8 of this Act, the tax is imposed at the rate of 1.25%. |
23 | | Within 14 days after July 1, 2000 (the effective date of |
24 | | Public Act 91-872), each retailer of motor fuel and gasohol |
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1 | | shall cause the following notice to be posted in a prominently |
2 | | visible place on each retail dispensing device that is used to |
3 | | dispense motor fuel or gasohol in the State of Illinois: "As of |
4 | | July 1, 2000, the State of Illinois has eliminated the State's |
5 | | share of sales tax on motor fuel and gasohol through December |
6 | | 31, 2000. The price on this pump should reflect the |
7 | | elimination of the tax." The notice shall be printed in bold |
8 | | print on a sign that is no smaller than 4 inches by 8 inches. |
9 | | The sign shall be clearly visible to customers. Any retailer |
10 | | who fails to post or maintain a required sign through December |
11 | | 31, 2000 is guilty of a petty offense for which the fine shall |
12 | | be $500 per day per each retail premises where a violation |
13 | | occurs. |
14 | | With respect to gasohol, as defined in the Use Tax Act, the |
15 | | tax imposed by this Act applies to (i) 70% of the proceeds of |
16 | | sales made on or after January 1, 1990, and before July 1, |
17 | | 2003, (ii) 80% of the proceeds of sales made on or after July |
18 | | 1, 2003 and on or before July 1, 2017, (iii) 100% of the |
19 | | proceeds of sales made after July 1, 2017 and prior to January |
20 | | 1, 2024, (iv) 90% of the proceeds of sales made on or after |
21 | | January 1, 2024 and on or before December 31, 2028, and (v) |
22 | | 100% of the proceeds of sales made after December 31, 2028. If, |
23 | | at any time, however, the tax under this Act on sales of |
24 | | gasohol, as defined in the Use Tax Act, is imposed at the rate |
25 | | of 1.25%, then the tax imposed by this Act applies to 100% of |
26 | | the proceeds of sales of gasohol made during that time. |
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1 | | With respect to mid-range ethanol blends, as defined in |
2 | | Section 3-44.3 of the Use Tax Act, the tax imposed by this Act |
3 | | applies to (i) 80% of the proceeds of sales made on or after |
4 | | January 1, 2024 and on or before December 31, 2028 and (ii) |
5 | | 100% of the proceeds of sales made after December 31, 2028. If, |
6 | | at any time, however, the tax under this Act on sales of |
7 | | mid-range ethanol blends is imposed at the rate of 1.25%, then |
8 | | the tax imposed by this Act applies to 100% of the proceeds of |
9 | | sales of mid-range ethanol blends made during that time. |
10 | | With respect to majority blended ethanol fuel, as defined |
11 | | in the Use Tax Act, the tax imposed by this Act does not apply |
12 | | to the proceeds of sales made on or after July 1, 2003 and on |
13 | | or before December 31, 2028 but applies to 100% of the proceeds |
14 | | of sales made thereafter. |
15 | | With respect to biodiesel blends, as defined in the Use |
16 | | Tax Act, with no less than 1% and no more than 10% biodiesel, |
17 | | the tax imposed by this Act applies to (i) 80% of the proceeds |
18 | | of sales made on or after July 1, 2003 and on or before |
19 | | December 31, 2018 and (ii) 100% of the proceeds of sales made |
20 | | after December 31, 2018 and before January 1, 2024. On and |
21 | | after January 1, 2024 and on or before December 31, 2030, the |
22 | | taxation of biodiesel, renewable diesel, and biodiesel blends |
23 | | shall be as provided in Section 3-5.1 of the Use Tax Act. If, |
24 | | at any time, however, the tax under this Act on sales of |
25 | | biodiesel blends, as defined in the Use Tax Act, with no less |
26 | | than 1% and no more than 10% biodiesel is imposed at the rate |
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1 | | of 1.25%, then the tax imposed by this Act applies to 100% of |
2 | | the proceeds of sales of biodiesel blends with no less than 1% |
3 | | and no more than 10% biodiesel made during that time. |
4 | | With respect to biodiesel, as defined in the Use Tax Act, |
5 | | and biodiesel blends, as defined in the Use Tax Act, with more |
6 | | than 10% but no more than 99% biodiesel, the tax imposed by |
7 | | this Act does not apply to the proceeds of sales made on or |
8 | | after July 1, 2003 and on or before December 31, 2023. On and |
9 | | after January 1, 2024 and on or before December 31, 2030, the |
10 | | taxation of biodiesel, renewable diesel, and biodiesel blends |
11 | | shall be as provided in Section 3-5.1 of the Use Tax Act. |
12 | | Until July 1, 2022 and beginning again on July 1, 2023, |
13 | | with respect to food for human consumption that is to be |
14 | | consumed off the premises where it is sold (other than |
15 | | alcoholic beverages, food consisting of or infused with adult |
16 | | use cannabis, soft drinks, and food that has been prepared for |
17 | | immediate consumption), the tax is imposed at the rate of 1%. |
18 | | Beginning July 1, 2022 and until July 1, 2023, with respect to |
19 | | food for human consumption that is to be consumed off the |
20 | | premises where it is sold (other than alcoholic beverages, |
21 | | food consisting of or infused with adult use cannabis, soft |
22 | | drinks, and food that has been prepared for immediate |
23 | | consumption), the tax is imposed at the rate of 0%. |
24 | | With respect to prescription and nonprescription |
25 | | medicines, drugs, medical appliances, products classified as |
26 | | Class III medical devices by the United States Food and Drug |
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1 | | Administration that are used for cancer treatment pursuant to |
2 | | a prescription, as well as any accessories and components |
3 | | related to those devices, modifications to a motor vehicle for |
4 | | the purpose of rendering it usable by a person with a |
5 | | disability, and insulin, blood sugar testing materials, |
6 | | syringes, and needles used by human diabetics, the tax is |
7 | | imposed at the rate of 1%. For the purposes of this Section, |
8 | | until September 1, 2009: the term "soft drinks" means any |
9 | | complete, finished, ready-to-use, non-alcoholic drink, whether |
10 | | carbonated or not, including, but not limited to, soda water, |
11 | | cola, fruit juice, vegetable juice, carbonated water, and all |
12 | | other preparations commonly known as soft drinks of whatever |
13 | | kind or description that are contained in any closed or sealed |
14 | | bottle, can, carton, or container, regardless of size; but |
15 | | "soft drinks" does not include coffee, tea, non-carbonated |
16 | | water, infant formula, milk or milk products as defined in the |
17 | | Grade A Pasteurized Milk and Milk Products Act, or drinks |
18 | | containing 50% or more natural fruit or vegetable juice. |
19 | | Notwithstanding any other provisions of this Act, |
20 | | beginning September 1, 2009, "soft drinks" means non-alcoholic |
21 | | beverages that contain natural or artificial sweeteners. "Soft |
22 | | drinks" does not include beverages that contain milk or milk |
23 | | products, soy, rice or similar milk substitutes, or greater |
24 | | than 50% of vegetable or fruit juice by volume. |
25 | | Until August 1, 2009, and notwithstanding any other |
26 | | provisions of this Act, "food for human consumption that is to |
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1 | | be consumed off the premises where it is sold" includes all |
2 | | food sold through a vending machine, except soft drinks and |
3 | | food products that are dispensed hot from a vending machine, |
4 | | regardless of the location of the vending machine. Beginning |
5 | | August 1, 2009, and notwithstanding any other provisions of |
6 | | this Act, "food for human consumption that is to be consumed |
7 | | off the premises where it is sold" includes all food sold |
8 | | through a vending machine, except soft drinks, candy, and food |
9 | | products that are dispensed hot from a vending machine, |
10 | | regardless of the location of the vending machine. |
11 | | Notwithstanding any other provisions of this Act, |
12 | | beginning September 1, 2009, "food for human consumption that |
13 | | is to be consumed off the premises where it is sold" does not |
14 | | include candy. For purposes of this Section, "candy" means a |
15 | | preparation of sugar, honey, or other natural or artificial |
16 | | sweeteners in combination with chocolate, fruits, nuts or |
17 | | other ingredients or flavorings in the form of bars, drops, or |
18 | | pieces. "Candy" does not include any preparation that contains |
19 | | flour or requires refrigeration. |
20 | | Notwithstanding any other provisions of this Act, |
21 | | beginning September 1, 2009, "nonprescription medicines and |
22 | | drugs" does not include grooming and hygiene products. For |
23 | | purposes of this Section, "grooming and hygiene products" |
24 | | includes, but is not limited to, soaps and cleaning solutions, |
25 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan |
26 | | lotions and screens, unless those products are available by |
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1 | | prescription only, regardless of whether the products meet the |
2 | | definition of "over-the-counter-drugs". For the purposes of |
3 | | this paragraph, "over-the-counter-drug" means a drug for human |
4 | | use that contains a label that identifies the product as a drug |
5 | | as required by 21 CFR 201.66. The "over-the-counter-drug" |
6 | | label includes: |
7 | | (A) a "Drug Facts" panel; or |
8 | | (B) a statement of the "active ingredient(s)" with a |
9 | | list of those ingredients contained in the compound, |
10 | | substance or preparation. |
11 | | Beginning on January 1, 2014 (the effective date of Public |
12 | | Act 98-122), "prescription and nonprescription medicines and |
13 | | drugs" includes medical cannabis purchased from a registered |
14 | | dispensing organization under the Compassionate Use of Medical |
15 | | Cannabis Program Act. |
16 | | As used in this Section, "adult use cannabis" means |
17 | | cannabis subject to tax under the Cannabis Cultivation |
18 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law |
19 | | and does not include cannabis subject to tax under the |
20 | | Compassionate Use of Medical Cannabis Program Act. |
21 | | Beginning on January 1, 2025, with respect to firearms, |
22 | | the tax is imposed at the rate of 11%. |
23 | | (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20, |
24 | | Section 20-20, eff. 4-19-22; 102-700, Article 60, Section |
25 | | 60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff. |
26 | | 4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.)
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