Bill Text: IL HB2498 | 2019-2020 | 101st General Assembly | Introduced


Bill Title: Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Reduces the rate of tax on diapers and baby wipes to 1% (currently, 6.25%), changing the distribution of the proceeds from the tax imposed on diapers and baby wipes.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced) 2019-05-21 - Added Co-Sponsor Rep. Natalie A. Manley [HB2498 Detail]

Download: Illinois-2019-HB2498-Introduced.html


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2498

Introduced , by Rep. LaToya Greenwood

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. Reduces the rate of tax on diapers and baby wipes to 1% (currently, 6.25%), changing the distribution of the proceeds from the tax imposed on diapers and baby wipes.
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FISCAL NOTE ACT MAY APPLY

A BILL FOR

HB2498LRB101 06860 HLH 51891 b
1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by changing Sections
53-10 and 9 as follows:
6 (35 ILCS 105/3-10)
7 Sec. 3-10. Rate of tax. Unless otherwise provided in this
8Section, the tax imposed by this Act is at the rate of 6.25% of
9either the selling price or the fair market value, if any, of
10the tangible personal property. In all cases where property
11functionally used or consumed is the same as the property that
12was purchased at retail, then the tax is imposed on the selling
13price of the property. In all cases where property functionally
14used or consumed is a by-product or waste product that has been
15refined, manufactured, or produced from property purchased at
16retail, then the tax is imposed on the lower of the fair market
17value, if any, of the specific property so used in this State
18or on the selling price of the property purchased at retail.
19For purposes of this Section "fair market value" means the
20price at which property would change hands between a willing
21buyer and a willing seller, neither being under any compulsion
22to buy or sell and both having reasonable knowledge of the
23relevant facts. The fair market value shall be established by

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1Illinois sales by the taxpayer of the same property as that
2functionally used or consumed, or if there are no such sales by
3the taxpayer, then comparable sales or purchases of property of
4like kind and character in Illinois.
5 Beginning on July 1, 2000 and through December 31, 2000,
6with respect to motor fuel, as defined in Section 1.1 of the
7Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
8the Use Tax Act, the tax is imposed at the rate of 1.25%.
9 Beginning on August 6, 2010 through August 15, 2010, with
10respect to sales tax holiday items as defined in Section 3-6 of
11this Act, the tax is imposed at the rate of 1.25%.
12 With respect to gasohol, the tax imposed by this Act
13applies to (i) 70% of the proceeds of sales made on or after
14January 1, 1990, and before July 1, 2003, (ii) 80% of the
15proceeds of sales made on or after July 1, 2003 and on or
16before July 1, 2017, and (iii) 100% of the proceeds of sales
17made thereafter. If, at any time, however, the tax under this
18Act on sales of gasohol is imposed at the rate of 1.25%, then
19the tax imposed by this Act applies to 100% of the proceeds of
20sales of gasohol made during that time.
21 With respect to majority blended ethanol fuel, the tax
22imposed by this Act does not apply to the proceeds of sales
23made on or after July 1, 2003 and on or before December 31,
242023 but applies to 100% of the proceeds of sales made
25thereafter.
26 With respect to biodiesel blends with no less than 1% and

HB2498- 3 -LRB101 06860 HLH 51891 b
1no more than 10% biodiesel, the tax imposed by this Act applies
2to (i) 80% of the proceeds of sales made on or after July 1,
32003 and on or before December 31, 2018 and (ii) 100% of the
4proceeds of sales made thereafter. If, at any time, however,
5the tax under this Act on sales of biodiesel blends with no
6less than 1% and no more than 10% biodiesel is imposed at the
7rate of 1.25%, then the tax imposed by this Act applies to 100%
8of the proceeds of sales of biodiesel blends with no less than
91% and no more than 10% biodiesel made during that time.
10 With respect to 100% biodiesel and biodiesel blends with
11more than 10% but no more than 99% biodiesel, the tax imposed
12by this Act does not apply to the proceeds of sales made on or
13after July 1, 2003 and on or before December 31, 2023 but
14applies to 100% of the proceeds of sales made thereafter.
15 With respect to food for human consumption that is to be
16consumed off the premises where it is sold (other than
17alcoholic beverages, soft drinks, and food that has been
18prepared for immediate consumption) and prescription and
19nonprescription medicines, drugs, medical appliances, products
20classified as Class III medical devices by the United States
21Food and Drug Administration that are used for cancer treatment
22pursuant to a prescription, as well as any accessories and
23components related to those devices, modifications to a motor
24vehicle for the purpose of rendering it usable by a person with
25a disability, diapers, baby wipes, and insulin, urine testing
26materials, syringes, and needles used by diabetics, for human

HB2498- 4 -LRB101 06860 HLH 51891 b
1use, the tax is imposed at the rate of 1%. For the purposes of
2this Section, until September 1, 2009: the term "soft drinks"
3means any complete, finished, ready-to-use, non-alcoholic
4drink, whether carbonated or not, including but not limited to
5soda water, cola, fruit juice, vegetable juice, carbonated
6water, and all other preparations commonly known as soft drinks
7of whatever kind or description that are contained in any
8closed or sealed bottle, can, carton, or container, regardless
9of size; but "soft drinks" does not include coffee, tea,
10non-carbonated water, infant formula, milk or milk products as
11defined in the Grade A Pasteurized Milk and Milk Products Act,
12or drinks containing 50% or more natural fruit or vegetable
13juice.
14 Notwithstanding any other provisions of this Act,
15beginning September 1, 2009, "soft drinks" means non-alcoholic
16beverages that contain natural or artificial sweeteners. "Soft
17drinks" do not include beverages that contain milk or milk
18products, soy, rice or similar milk substitutes, or greater
19than 50% of vegetable or fruit juice by volume.
20 Until August 1, 2009, and notwithstanding any other
21provisions of this Act, "food for human consumption that is to
22be consumed off the premises where it is sold" includes all
23food sold through a vending machine, except soft drinks and
24food products that are dispensed hot from a vending machine,
25regardless of the location of the vending machine. Beginning
26August 1, 2009, and notwithstanding any other provisions of

HB2498- 5 -LRB101 06860 HLH 51891 b
1this Act, "food for human consumption that is to be consumed
2off the premises where it is sold" includes all food sold
3through a vending machine, except soft drinks, candy, and food
4products that are dispensed hot from a vending machine,
5regardless of the location of the vending machine.
6 Notwithstanding any other provisions of this Act,
7beginning September 1, 2009, "food for human consumption that
8is to be consumed off the premises where it is sold" does not
9include candy. For purposes of this Section, "candy" means a
10preparation of sugar, honey, or other natural or artificial
11sweeteners in combination with chocolate, fruits, nuts or other
12ingredients or flavorings in the form of bars, drops, or
13pieces. "Candy" does not include any preparation that contains
14flour or requires refrigeration.
15 Notwithstanding any other provisions of this Act,
16beginning September 1, 2009, "nonprescription medicines and
17drugs" does not include grooming and hygiene products. For
18purposes of this Section, "grooming and hygiene products"
19includes, but is not limited to, soaps and cleaning solutions,
20shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
21lotions and screens, unless those products are available by
22prescription only, regardless of whether the products meet the
23definition of "over-the-counter-drugs". For the purposes of
24this paragraph, "over-the-counter-drug" means a drug for human
25use that contains a label that identifies the product as a drug
26as required by 21 C.F.R. 201.66. The "over-the-counter-drug"

HB2498- 6 -LRB101 06860 HLH 51891 b
1label 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 the effective date of this amendatory Act of
7the 98th General Assembly, "prescription and nonprescription
8medicines and drugs" includes medical cannabis purchased from a
9registered dispensing organization under the Compassionate Use
10of Medical Cannabis Pilot Program Act.
11 If the property that is purchased at retail from a retailer
12is acquired outside Illinois and used outside Illinois before
13being brought to Illinois for use here and is taxable under
14this Act, the "selling price" on which the tax is computed
15shall be reduced by an amount that represents a reasonable
16allowance for depreciation for the period of prior out-of-state
17use.
18(Source: P.A. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16;
19100-22, eff. 7-6-17.)
20 Section 10. The Service Use Tax Act is amended by changing
21Sections 3-10 and 9 as follows:
22 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
23 Sec. 3-10. Rate of tax. Unless otherwise provided in this
24Section, the tax imposed by this Act is at the rate of 6.25% of

HB2498- 7 -LRB101 06860 HLH 51891 b
1the selling price of tangible personal property transferred as
2an incident to the sale of service, but, for the purpose of
3computing this tax, in no event shall the selling price be less
4than the cost price of the property to the serviceman.
5 Beginning on July 1, 2000 and through December 31, 2000,
6with respect to motor fuel, as defined in Section 1.1 of the
7Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
8the Use Tax Act, the tax is imposed at the rate of 1.25%.
9 With respect to gasohol, as defined in the Use Tax Act, the
10tax imposed by this Act applies to (i) 70% of the selling price
11of property transferred as an incident to the sale of service
12on or after January 1, 1990, and before July 1, 2003, (ii) 80%
13of the selling price of property transferred as an incident to
14the sale of service on or after July 1, 2003 and on or before
15July 1, 2017, and (iii) 100% of the selling price thereafter.
16If, at any time, however, the tax under this Act on sales of
17gasohol, as defined in the Use Tax Act, is imposed at the rate
18of 1.25%, then the tax imposed by this Act applies to 100% of
19the proceeds of sales of gasohol made during that time.
20 With respect to majority blended ethanol fuel, as defined
21in the Use Tax Act, the tax imposed by this Act does not apply
22to the selling price of property transferred as an incident to
23the sale of service on or after July 1, 2003 and on or before
24December 31, 2023 but applies to 100% of the selling price
25thereafter.
26 With respect to biodiesel blends, as defined in the Use Tax

HB2498- 8 -LRB101 06860 HLH 51891 b
1Act, with no less than 1% and no more than 10% biodiesel, the
2tax imposed by this Act applies to (i) 80% of the selling price
3of property transferred as an incident to the sale of service
4on or after July 1, 2003 and on or before December 31, 2018 and
5(ii) 100% of the proceeds of the selling price thereafter. If,
6at any time, however, the tax under this Act on sales of
7biodiesel blends, as defined in the Use Tax Act, with no less
8than 1% and no more than 10% biodiesel is imposed at the rate
9of 1.25%, then the tax imposed by this Act applies to 100% of
10the proceeds of sales of biodiesel blends with no less than 1%
11and no more than 10% biodiesel made during that time.
12 With respect to 100% biodiesel, as defined in the Use Tax
13Act, and biodiesel blends, as defined in the Use Tax Act, with
14more than 10% but no more than 99% biodiesel, the tax imposed
15by this Act does not apply to the proceeds of the selling price
16of property transferred as an incident to the sale of service
17on or after July 1, 2003 and on or before December 31, 2023 but
18applies to 100% of the selling price thereafter.
19 At the election of any registered serviceman made for each
20fiscal year, sales of service in which the aggregate annual
21cost price of tangible personal property transferred as an
22incident to the sales of service is less than 35%, or 75% in
23the case of servicemen transferring prescription drugs or
24servicemen engaged in graphic arts production, of the aggregate
25annual total gross receipts from all sales of service, the tax
26imposed by this Act shall be based on the serviceman's cost

HB2498- 9 -LRB101 06860 HLH 51891 b
1price of the tangible personal property transferred as an
2incident to the sale of those services.
3 The tax shall be imposed at the rate of 1% on food prepared
4for immediate consumption and transferred incident to a sale of
5service subject to this Act or the Service Occupation Tax Act
6by an entity licensed under the Hospital Licensing Act, the
7Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
8Act, the Specialized Mental Health Rehabilitation Act of 2013,
9or the Child Care Act of 1969. The tax shall also be imposed at
10the rate of 1% on food for human consumption that is to be
11consumed off the premises where it is sold (other than
12alcoholic beverages, soft drinks, and food that has been
13prepared for immediate consumption and is not otherwise
14included in this paragraph) and prescription and
15nonprescription medicines, drugs, medical appliances, products
16classified as Class III medical devices by the United States
17Food and Drug Administration that are used for cancer treatment
18pursuant to a prescription, as well as any accessories and
19components related to those devices, modifications to a motor
20vehicle for the purpose of rendering it usable by a person with
21a disability, diapers, baby wipes, and insulin, urine testing
22materials, syringes, and needles used by diabetics, for human
23use. For the purposes of this Section, until September 1, 2009:
24the term "soft drinks" means any complete, finished,
25ready-to-use, non-alcoholic drink, whether carbonated or not,
26including but not limited to soda water, cola, fruit juice,

HB2498- 10 -LRB101 06860 HLH 51891 b
1vegetable juice, carbonated water, and all other preparations
2commonly known as soft drinks of whatever kind or description
3that are contained in any closed or sealed bottle, can, carton,
4or container, regardless of size; but "soft drinks" does not
5include coffee, tea, non-carbonated water, infant formula,
6milk or milk products as defined in the Grade A Pasteurized
7Milk and Milk Products Act, or drinks containing 50% or more
8natural fruit or vegetable juice.
9 Notwithstanding any other provisions of this Act,
10beginning September 1, 2009, "soft drinks" means non-alcoholic
11beverages that contain natural or artificial sweeteners. "Soft
12drinks" do not include beverages that contain milk or milk
13products, soy, rice or similar milk substitutes, or greater
14than 50% of vegetable or fruit juice by volume.
15 Until August 1, 2009, and notwithstanding any other
16provisions of this Act, "food for human consumption that is to
17be consumed off the premises where it is sold" includes all
18food sold through a vending machine, except soft drinks and
19food products that are dispensed hot from a vending machine,
20regardless of the location of the vending machine. Beginning
21August 1, 2009, and notwithstanding any other provisions of
22this Act, "food for human consumption that is to be consumed
23off the premises where it is sold" includes all food sold
24through a vending machine, except soft drinks, candy, and food
25products that are dispensed hot from a vending machine,
26regardless of the location of the vending machine.

HB2498- 11 -LRB101 06860 HLH 51891 b
1 Notwithstanding any other provisions of this Act,
2beginning September 1, 2009, "food for human consumption that
3is to be consumed off the premises where it is sold" does not
4include candy. For purposes of this Section, "candy" means a
5preparation of sugar, honey, or other natural or artificial
6sweeteners in combination with chocolate, fruits, nuts or other
7ingredients or flavorings in the form of bars, drops, or
8pieces. "Candy" does not include any preparation that contains
9flour or requires refrigeration.
10 Notwithstanding any other provisions of this Act,
11beginning September 1, 2009, "nonprescription medicines and
12drugs" does not include grooming and hygiene products. For
13purposes of this Section, "grooming and hygiene products"
14includes, but is not limited to, soaps and cleaning solutions,
15shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
16lotions and screens, unless those products are available by
17prescription only, regardless of whether the products meet the
18definition of "over-the-counter-drugs". For the purposes of
19this paragraph, "over-the-counter-drug" means a drug for human
20use that contains a label that identifies the product as a drug
21as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
22label includes:
23 (A) A "Drug Facts" panel; or
24 (B) A statement of the "active ingredient(s)" with a
25 list of those ingredients contained in the compound,
26 substance or preparation.

HB2498- 12 -LRB101 06860 HLH 51891 b
1 Beginning on January 1, 2014 (the effective date of Public
2Act 98-122), "prescription and nonprescription medicines and
3drugs" includes medical cannabis purchased from a registered
4dispensing organization under the Compassionate Use of Medical
5Cannabis Pilot Program Act.
6 If the property that is acquired from a serviceman is
7acquired outside Illinois and used outside Illinois before
8being brought to Illinois for use here and is taxable under
9this Act, the "selling price" on which the tax is computed
10shall be reduced by an amount that represents a reasonable
11allowance for depreciation for the period of prior out-of-state
12use.
13(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
1499-642, eff. 7-28-16; 99-858, eff. 8-19-16; 100-22, eff.
157-6-17.)
16 Section 15. The Service Occupation Tax Act is amended by
17changing Sections 3-10 and 9 as follows:
18 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
19 Sec. 3-10. Rate of tax. Unless otherwise provided in this
20Section, the tax imposed by this Act is at the rate of 6.25% of
21the "selling price", as defined in Section 2 of the Service Use
22Tax Act, of the tangible personal property. For the purpose of
23computing this tax, in no event shall the "selling price" be
24less than the cost price to the serviceman of the tangible

HB2498- 13 -LRB101 06860 HLH 51891 b
1personal property transferred. The selling price of each item
2of tangible personal property transferred as an incident of a
3sale of service may be shown as a distinct and separate item on
4the serviceman's billing to the service customer. If the
5selling price is not so shown, the selling price of the
6tangible personal property is deemed to be 50% of the
7serviceman's entire billing to the service customer. When,
8however, a serviceman contracts to design, develop, and produce
9special order machinery or equipment, the tax imposed by this
10Act shall be based on the serviceman's cost price of the
11tangible personal property transferred incident to the
12completion of the contract.
13 Beginning on July 1, 2000 and through December 31, 2000,
14with respect to motor fuel, as defined in Section 1.1 of the
15Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
16the Use Tax Act, the tax is imposed at the rate of 1.25%.
17 With respect to gasohol, as defined in the Use Tax Act, the
18tax imposed by this Act shall apply to (i) 70% of the cost
19price of property transferred as an incident to the sale of
20service on or after January 1, 1990, and before July 1, 2003,
21(ii) 80% of the selling price of property transferred as an
22incident to the sale of service on or after July 1, 2003 and on
23or before July 1, 2017, and (iii) 100% of the cost price
24thereafter. If, at any time, however, the tax under this Act on
25sales of gasohol, as defined in the Use Tax Act, is imposed at
26the rate of 1.25%, then the tax imposed by this Act applies to

HB2498- 14 -LRB101 06860 HLH 51891 b
1100% of the proceeds of sales of gasohol made during that time.
2 With respect to majority blended ethanol fuel, as defined
3in the Use Tax Act, the tax imposed by this Act does not apply
4to the selling price of property transferred as an incident to
5the sale of service on or after July 1, 2003 and on or before
6December 31, 2023 but applies to 100% of the selling price
7thereafter.
8 With respect to biodiesel blends, as defined in the Use Tax
9Act, with no less than 1% and no more than 10% biodiesel, the
10tax imposed by this Act applies to (i) 80% of the selling price
11of property transferred as an incident to the sale of service
12on or after July 1, 2003 and on or before December 31, 2018 and
13(ii) 100% of the proceeds of the selling price thereafter. If,
14at any time, however, the tax under this Act on sales of
15biodiesel blends, as defined in the Use Tax Act, with no less
16than 1% and no more than 10% biodiesel is imposed at the rate
17of 1.25%, then the tax imposed by this Act applies to 100% of
18the proceeds of sales of biodiesel blends with no less than 1%
19and no more than 10% biodiesel made during that time.
20 With respect to 100% biodiesel, as defined in the Use Tax
21Act, and biodiesel blends, as defined in the Use Tax Act, with
22more than 10% but no more than 99% biodiesel material, the tax
23imposed by this Act does not apply to the proceeds of the
24selling price of property transferred as an incident to the
25sale of service on or after July 1, 2003 and on or before
26December 31, 2023 but applies to 100% of the selling price

HB2498- 15 -LRB101 06860 HLH 51891 b
1thereafter.
2 At the election of any registered serviceman made for each
3fiscal year, sales of service in which the aggregate annual
4cost price of tangible personal property transferred as an
5incident to the sales of service is less than 35%, or 75% in
6the case of servicemen transferring prescription drugs or
7servicemen engaged in graphic arts production, of the aggregate
8annual total gross receipts from all sales of service, the tax
9imposed by this Act shall be based on the serviceman's cost
10price of the tangible personal property transferred incident to
11the sale of those services.
12 The tax shall be imposed at the rate of 1% on food prepared
13for immediate consumption and transferred incident to a sale of
14service subject to this Act or the Service Occupation Tax Act
15by an entity licensed under the Hospital Licensing Act, the
16Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
17Act, the Specialized Mental Health Rehabilitation Act of 2013,
18or the Child Care Act of 1969. The tax shall also be imposed at
19the rate of 1% on food for human consumption that is to be
20consumed off the premises where it is sold (other than
21alcoholic beverages, soft drinks, and food that has been
22prepared for immediate consumption and is not otherwise
23included in this paragraph) and prescription and
24nonprescription medicines, drugs, medical appliances, products
25classified as Class III medical devices by the United States
26Food and Drug Administration that are used for cancer treatment

HB2498- 16 -LRB101 06860 HLH 51891 b
1pursuant to a prescription, as well as any accessories and
2components related to those devices, modifications to a motor
3vehicle for the purpose of rendering it usable by a person with
4a disability, diapers, baby wipes, and insulin, urine testing
5materials, syringes, and needles used by diabetics, for human
6use. For the purposes of this Section, until September 1, 2009:
7the term "soft drinks" means any complete, finished,
8ready-to-use, non-alcoholic drink, whether carbonated or not,
9including but not limited to soda water, cola, fruit juice,
10vegetable juice, carbonated water, and all other preparations
11commonly known as soft drinks of whatever kind or description
12that are contained in any closed or sealed can, carton, or
13container, regardless of size; but "soft drinks" does not
14include coffee, tea, non-carbonated water, infant formula,
15milk or milk products as defined in the Grade A Pasteurized
16Milk and Milk Products Act, or drinks containing 50% or more
17natural fruit or vegetable juice.
18 Notwithstanding any other provisions of this Act,
19beginning September 1, 2009, "soft drinks" means non-alcoholic
20beverages that contain natural or artificial sweeteners. "Soft
21drinks" do not include beverages that contain milk or milk
22products, soy, rice or similar milk substitutes, or greater
23than 50% of vegetable or fruit juice by volume.
24 Until August 1, 2009, and notwithstanding any other
25provisions of this Act, "food for human consumption that is to
26be consumed off the premises where it is sold" includes all

HB2498- 17 -LRB101 06860 HLH 51891 b
1food sold through a vending machine, except soft drinks and
2food products that are dispensed hot from a vending machine,
3regardless of the location of the vending machine. Beginning
4August 1, 2009, and notwithstanding any other provisions of
5this Act, "food for human consumption that is to be consumed
6off the premises where it is sold" includes all food sold
7through a vending machine, except soft drinks, candy, and food
8products that are dispensed hot from a vending machine,
9regardless of the location of the vending machine.
10 Notwithstanding any other provisions of this Act,
11beginning September 1, 2009, "food for human consumption that
12is to be consumed off the premises where it is sold" does not
13include candy. For purposes of this Section, "candy" means a
14preparation of sugar, honey, or other natural or artificial
15sweeteners in combination with chocolate, fruits, nuts or other
16ingredients or flavorings in the form of bars, drops, or
17pieces. "Candy" does not include any preparation that contains
18flour or requires refrigeration.
19 Notwithstanding any other provisions of this Act,
20beginning September 1, 2009, "nonprescription medicines and
21drugs" does not include grooming and hygiene products. For
22purposes of this Section, "grooming and hygiene products"
23includes, but is not limited to, soaps and cleaning solutions,
24shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
25lotions and screens, unless those products are available by
26prescription only, regardless of whether the products meet the

HB2498- 18 -LRB101 06860 HLH 51891 b
1definition of "over-the-counter-drugs". For the purposes of
2this paragraph, "over-the-counter-drug" means a drug for human
3use that contains a label that identifies the product as a drug
4as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
5label includes:
6 (A) A "Drug Facts" panel; or
7 (B) A statement of the "active ingredient(s)" with a
8 list of those ingredients contained in the compound,
9 substance or preparation.
10 Beginning on January 1, 2014 (the effective date of Public
11Act 98-122), "prescription and nonprescription medicines and
12drugs" includes medical cannabis purchased from a registered
13dispensing organization under the Compassionate Use of Medical
14Cannabis Pilot Program Act.
15(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
1699-642, eff. 7-28-16; 99-858, eff. 8-19-16; 100-22, eff.
177-6-17.)
18 Section 20. The Retailers' Occupation Tax Act is amended by
19changing Sections 2-10 and 3 as follows:
20 (35 ILCS 120/2-10)
21 Sec. 2-10. Rate of tax. Unless otherwise provided in this
22Section, the tax imposed by this Act is at the rate of 6.25% of
23gross receipts from sales of tangible personal property made in
24the course of business.

HB2498- 19 -LRB101 06860 HLH 51891 b
1 Beginning on July 1, 2000 and through December 31, 2000,
2with respect to motor fuel, as defined in Section 1.1 of the
3Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
4the Use Tax Act, the tax is imposed at the rate of 1.25%.
5 Beginning on August 6, 2010 through August 15, 2010, with
6respect to sales tax holiday items as defined in Section 2-8 of
7this Act, the tax is imposed at the rate of 1.25%.
8 Within 14 days after the effective date of this amendatory
9Act of the 91st General Assembly, each retailer of motor fuel
10and gasohol shall cause the following notice to be posted in a
11prominently visible place on each retail dispensing device that
12is used to dispense motor fuel or gasohol in the State of
13Illinois: "As of July 1, 2000, the State of Illinois has
14eliminated the State's share of sales tax on motor fuel and
15gasohol through December 31, 2000. The price on this pump
16should reflect the elimination of the tax." The notice shall be
17printed in bold print on a sign that is no smaller than 4
18inches by 8 inches. The sign shall be clearly visible to
19customers. Any retailer who fails to post or maintain a
20required sign through December 31, 2000 is guilty of a petty
21offense for which the fine shall be $500 per day per each
22retail premises where a violation occurs.
23 With respect to gasohol, as defined in the Use Tax Act, the
24tax imposed by this Act applies to (i) 70% of the proceeds of
25sales made on or after January 1, 1990, and before July 1,
262003, (ii) 80% of the proceeds of sales made on or after July

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11, 2003 and on or before July 1, 2017, and (iii) 100% of the
2proceeds of sales made thereafter. If, at any time, however,
3the tax under this Act on sales of gasohol, as defined in the
4Use Tax Act, is imposed at the rate of 1.25%, then the tax
5imposed by this Act applies to 100% of the proceeds of sales of
6gasohol made during that time.
7 With respect to majority blended ethanol fuel, as defined
8in the Use Tax Act, the tax imposed by this Act does not apply
9to the proceeds of sales made on or after July 1, 2003 and on or
10before December 31, 2023 but applies to 100% of the proceeds of
11sales made thereafter.
12 With respect to biodiesel blends, as defined in the Use Tax
13Act, with no less than 1% and no more than 10% biodiesel, the
14tax imposed by this Act applies to (i) 80% of the proceeds of
15sales made on or after July 1, 2003 and on or before December
1631, 2018 and (ii) 100% of the proceeds of sales made
17thereafter. If, at any time, however, the tax under this Act on
18sales of biodiesel blends, as defined in the Use Tax Act, with
19no less than 1% and no more than 10% biodiesel is imposed at
20the rate of 1.25%, then the tax imposed by this Act applies to
21100% of the proceeds of sales of biodiesel blends with no less
22than 1% and no more than 10% biodiesel made during that time.
23 With respect to 100% biodiesel, as defined in the Use Tax
24Act, and biodiesel blends, as defined in the Use Tax Act, with
25more than 10% but no more than 99% biodiesel, the tax imposed
26by this Act does not apply to the proceeds of sales made on or

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1after July 1, 2003 and on or before December 31, 2023 but
2applies to 100% of the proceeds of sales made thereafter.
3 With respect to food for human consumption that is to be
4consumed off the premises where it is sold (other than
5alcoholic beverages, soft drinks, and food that has been
6prepared for immediate consumption) and prescription and
7nonprescription medicines, drugs, medical appliances, products
8classified as Class III medical devices by the United States
9Food and Drug Administration that are used for cancer treatment
10pursuant to a prescription, as well as any accessories and
11components related to those devices, modifications to a motor
12vehicle for the purpose of rendering it usable by a person with
13a disability, diapers, baby wipes, and insulin, urine testing
14materials, syringes, and needles used by diabetics, for human
15use, the tax is imposed at the rate of 1%. For the purposes of
16this Section, until September 1, 2009: the term "soft drinks"
17means any complete, finished, ready-to-use, non-alcoholic
18drink, whether carbonated or not, including but not limited to
19soda water, cola, fruit juice, vegetable juice, carbonated
20water, and all other preparations commonly known as soft drinks
21of whatever kind or description that are contained in any
22closed or sealed bottle, can, carton, or container, regardless
23of size; but "soft drinks" does not include coffee, tea,
24non-carbonated water, infant formula, milk or milk products as
25defined in the Grade A Pasteurized Milk and Milk Products Act,
26or drinks containing 50% or more natural fruit or vegetable

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1juice.
2 Notwithstanding any other provisions of this Act,
3beginning September 1, 2009, "soft drinks" means non-alcoholic
4beverages that contain natural or artificial sweeteners. "Soft
5drinks" do not include beverages that contain milk or milk
6products, soy, rice or similar milk substitutes, or greater
7than 50% of vegetable or fruit juice by volume.
8 Until August 1, 2009, and notwithstanding any other
9provisions of this Act, "food for human consumption that is to
10be consumed off the premises where it is sold" includes all
11food sold through a vending machine, except soft drinks and
12food products that are dispensed hot from a vending machine,
13regardless of the location of the vending machine. Beginning
14August 1, 2009, and notwithstanding any other provisions of
15this Act, "food for human consumption that is to be consumed
16off the premises where it is sold" includes all food sold
17through a vending machine, except soft drinks, candy, and food
18products that are dispensed hot from a vending machine,
19regardless of the location of the vending machine.
20 Notwithstanding any other provisions of this Act,
21beginning September 1, 2009, "food for human consumption that
22is to be consumed off the premises where it is sold" does not
23include candy. For purposes of this Section, "candy" means a
24preparation of sugar, honey, or other natural or artificial
25sweeteners in combination with chocolate, fruits, nuts or other
26ingredients or flavorings in the form of bars, drops, or

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1pieces. "Candy" does not include any preparation that contains
2flour or requires refrigeration.
3 Notwithstanding any other provisions of this Act,
4beginning September 1, 2009, "nonprescription medicines and
5drugs" does not include grooming and hygiene products. For
6purposes of this Section, "grooming and hygiene products"
7includes, but is not limited to, soaps and cleaning solutions,
8shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
9lotions and screens, unless those products are available by
10prescription only, regardless of whether the products meet the
11definition of "over-the-counter-drugs". For the purposes of
12this paragraph, "over-the-counter-drug" means a drug for human
13use that contains a label that identifies the product as a drug
14as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
15label includes:
16 (A) A "Drug Facts" panel; or
17 (B) A statement of the "active ingredient(s)" with a
18 list of those ingredients contained in the compound,
19 substance or preparation.
20 Beginning on the effective date of this amendatory Act of
21the 98th General Assembly, "prescription and nonprescription
22medicines and drugs" includes medical cannabis purchased from a
23registered dispensing organization under the Compassionate Use
24of Medical Cannabis Pilot Program Act.
25(Source: P.A. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16;
26100-22, eff. 7-6-17.)
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