Bill Text: IL SB1858 | 2019-2020 | 101st General Assembly | Engrossed


Bill Title: Amends the Retailers' Occupation Tax Act. Provides that internal (also known as female) and male condoms, incontinence products, diapers, and baby wipes shall be taxed by the State at a rate of 1% (currently, 6.25%). Provides that the net revenue from the 1% tax collected from the sale of those products shall be deposited into the State and Local Sales Tax Reform Fund. Amends the Use Tax, Service Occupation Tax, and Service Occupation Use Tax Acts to make conforming changes.

Spectrum: Partisan Bill (Democrat 11-0)

Status: (Engrossed) 2019-05-23 - Added Alternate Co-Sponsor Rep. Barbara Hernandez [SB1858 Detail]

Download: Illinois-2019-SB1858-Engrossed.html



SB1858 EngrossedLRB101 11120 HLH 56342 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 Section
53-10 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

SB1858 Engrossed- 3 -LRB101 11120 HLH 56342 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, internal
20(also known as female) and male condoms, incontinence products,
21diapers, baby wipes, products classified as Class III medical
22devices by the United States Food and Drug Administration that
23are used for cancer treatment pursuant to a prescription, as
24well as any accessories and components related to those
25devices, modifications to a motor vehicle for the purpose of
26rendering it usable by a person with a disability, and insulin,

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

SB1858 Engrossed- 5 -LRB101 11120 HLH 56342 b
1August 1, 2009, and notwithstanding any other provisions of
2this Act, "food for human consumption that is to be consumed
3off the premises where it is sold" includes all food sold
4through a vending machine, except soft drinks, candy, and food
5products that are dispensed hot from a vending machine,
6regardless of the location of the vending machine.
7 Notwithstanding any other provisions of this Act,
8beginning September 1, 2009, "food for human consumption that
9is to be consumed off the premises where it is sold" does not
10include candy. For purposes of this Section, "candy" means a
11preparation of sugar, honey, or other natural or artificial
12sweeteners in combination with chocolate, fruits, nuts or other
13ingredients or flavorings in the form of bars, drops, or
14pieces. "Candy" does not include any preparation that contains
15flour or requires refrigeration.
16 Notwithstanding any other provisions of this Act,
17beginning September 1, 2009, "nonprescription medicines and
18drugs" does not include grooming and hygiene products. For
19purposes of this Section, "grooming and hygiene products"
20includes, but is not limited to, soaps and cleaning solutions,
21shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
22lotions and screens, unless those products are available by
23prescription only, regardless of whether the products meet the
24definition of "over-the-counter-drugs". For the purposes of
25this paragraph, "over-the-counter-drug" means a drug for human
26use that contains a label that identifies the product as a drug

SB1858 Engrossed- 6 -LRB101 11120 HLH 56342 b
1as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
2label includes:
3 (A) A "Drug Facts" panel; or
4 (B) A statement of the "active ingredient(s)" with a
5 list of those ingredients contained in the compound,
6 substance or preparation.
7 Beginning on the effective date of this amendatory Act of
8the 98th General Assembly, "prescription and nonprescription
9medicines and drugs" includes medical cannabis purchased from a
10registered dispensing organization under the Compassionate Use
11of Medical Cannabis Pilot Program Act.
12 If the property that is purchased at retail from a retailer
13is acquired outside Illinois and used outside Illinois before
14being brought to Illinois for use here and is taxable under
15this Act, the "selling price" on which the tax is computed
16shall be reduced by an amount that represents a reasonable
17allowance for depreciation for the period of prior out-of-state
18use.
19(Source: P.A. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16;
20100-22, eff. 7-6-17.)
21 Section 10. The Service Use Tax Act is amended by changing
22Section 3-10 as follows:
23 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
24 Sec. 3-10. Rate of tax. Unless otherwise provided in this

SB1858 Engrossed- 7 -LRB101 11120 HLH 56342 b
1Section, the tax imposed by this Act is at the rate of 6.25% of
2the selling price of tangible personal property transferred as
3an incident to the sale of service, but, for the purpose of
4computing this tax, in no event shall the selling price be less
5than the cost price of the property to the serviceman.
6 Beginning on July 1, 2000 and through December 31, 2000,
7with respect to motor fuel, as defined in Section 1.1 of the
8Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
9the Use Tax Act, the tax is imposed at the rate of 1.25%.
10 With respect to gasohol, as defined in the Use Tax Act, the
11tax imposed by this Act applies to (i) 70% of the selling price
12of property transferred as an incident to the sale of service
13on or after January 1, 1990, and before July 1, 2003, (ii) 80%
14of the selling price of property transferred as an incident to
15the sale of service on or after July 1, 2003 and on or before
16July 1, 2017, and (iii) 100% of the selling price thereafter.
17If, at any time, however, the tax under this Act on sales of
18gasohol, as defined in the Use Tax Act, is imposed at the rate
19of 1.25%, then the tax imposed by this Act applies to 100% of
20the proceeds of sales of gasohol made during that time.
21 With respect to majority blended ethanol fuel, as defined
22in the Use Tax Act, the tax imposed by this Act does not apply
23to the selling price of property transferred as an incident to
24the sale of service on or after July 1, 2003 and on or before
25December 31, 2023 but applies to 100% of the selling price
26thereafter.

SB1858 Engrossed- 8 -LRB101 11120 HLH 56342 b
1 With respect to biodiesel blends, as defined in the Use Tax
2Act, with no less than 1% and no more than 10% biodiesel, the
3tax imposed by this Act applies to (i) 80% of the selling price
4of property transferred as an incident to the sale of service
5on or after July 1, 2003 and on or before December 31, 2018 and
6(ii) 100% of the proceeds of the selling price thereafter. If,
7at any time, however, the tax under this Act on sales of
8biodiesel blends, as defined in the Use Tax Act, with no less
9than 1% and no more than 10% biodiesel is imposed at the rate
10of 1.25%, then the tax imposed by this Act applies to 100% of
11the proceeds of sales of biodiesel blends with no less than 1%
12and no more than 10% biodiesel made during that time.
13 With respect to 100% biodiesel, as defined in the Use Tax
14Act, and biodiesel blends, as defined in the Use Tax Act, with
15more than 10% but no more than 99% biodiesel, the tax imposed
16by this Act does not apply to the proceeds of the selling price
17of property transferred as an incident to the sale of service
18on or after July 1, 2003 and on or before December 31, 2023 but
19applies to 100% of the selling price thereafter.
20 At the election of any registered serviceman made for each
21fiscal year, sales of service in which the aggregate annual
22cost price of tangible personal property transferred as an
23incident to the sales of service is less than 35%, or 75% in
24the case of servicemen transferring prescription drugs or
25servicemen engaged in graphic arts production, of the aggregate
26annual total gross receipts from all sales of service, the tax

SB1858 Engrossed- 9 -LRB101 11120 HLH 56342 b
1imposed by this Act shall be based on the serviceman's cost
2price of the tangible personal property transferred as an
3incident to the sale of those services.
4 The tax shall be imposed at the rate of 1% on food prepared
5for immediate consumption and transferred incident to a sale of
6service subject to this Act or the Service Occupation Tax Act
7by an entity licensed under the Hospital Licensing Act, the
8Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
9Act, the Specialized Mental Health Rehabilitation Act of 2013,
10or the Child Care Act of 1969. The tax shall also be imposed at
11the rate of 1% on food for human consumption that is to be
12consumed off the premises where it is sold (other than
13alcoholic beverages, soft drinks, and food that has been
14prepared for immediate consumption and is not otherwise
15included in this paragraph) internal (also known as female) and
16male condoms, incontinence products, diapers, baby wipes, and
17prescription and nonprescription medicines, drugs, medical
18appliances, products classified as Class III medical devices by
19the United States Food and Drug Administration that are used
20for cancer treatment pursuant to a prescription, as well as any
21accessories and components related to those devices,
22modifications to a motor vehicle for the purpose of rendering
23it usable by a person with a disability, and insulin, urine
24testing materials, syringes, and needles used by diabetics, for
25human use. For the purposes of this Section, until September 1,
262009: the term "soft drinks" means any complete, finished,

SB1858 Engrossed- 10 -LRB101 11120 HLH 56342 b
1ready-to-use, non-alcoholic drink, whether carbonated or not,
2including but not limited to soda water, cola, fruit juice,
3vegetable juice, carbonated water, and all other preparations
4commonly known as soft drinks of whatever kind or description
5that are contained in any closed or sealed bottle, can, carton,
6or container, regardless of size; but "soft drinks" does not
7include coffee, tea, non-carbonated water, infant formula,
8milk or milk products as defined in the Grade A Pasteurized
9Milk and Milk Products Act, or drinks containing 50% or more
10natural fruit or vegetable juice.
11 Notwithstanding any other provisions of this Act,
12beginning September 1, 2009, "soft drinks" means non-alcoholic
13beverages that contain natural or artificial sweeteners. "Soft
14drinks" do not include beverages that contain milk or milk
15products, soy, rice or similar milk substitutes, or greater
16than 50% of vegetable or fruit juice by volume.
17 Until August 1, 2009, and notwithstanding any other
18provisions of this Act, "food for human consumption that is to
19be consumed off the premises where it is sold" includes all
20food sold through a vending machine, except soft drinks and
21food products that are dispensed hot from a vending machine,
22regardless of the location of the vending machine. Beginning
23August 1, 2009, and notwithstanding any other provisions of
24this Act, "food for human consumption that is to be consumed
25off the premises where it is sold" includes all food sold
26through a vending machine, except soft drinks, candy, and food

SB1858 Engrossed- 11 -LRB101 11120 HLH 56342 b
1products that are dispensed hot from a vending machine,
2regardless of the location of the vending machine.
3 Notwithstanding any other provisions of this Act,
4beginning September 1, 2009, "food for human consumption that
5is to be consumed off the premises where it is sold" does not
6include candy. For purposes of this Section, "candy" means a
7preparation of sugar, honey, or other natural or artificial
8sweeteners in combination with chocolate, fruits, nuts or other
9ingredients or flavorings in the form of bars, drops, or
10pieces. "Candy" does not include any preparation that contains
11flour or requires refrigeration.
12 Notwithstanding any other provisions of this Act,
13beginning September 1, 2009, "nonprescription medicines and
14drugs" does not include grooming and hygiene products. For
15purposes of this Section, "grooming and hygiene products"
16includes, but is not limited to, soaps and cleaning solutions,
17shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
18lotions and screens, unless those products are available by
19prescription only, regardless of whether the products meet the
20definition of "over-the-counter-drugs". For the purposes of
21this paragraph, "over-the-counter-drug" means a drug for human
22use that contains a label that identifies the product as a drug
23as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
24label includes:
25 (A) A "Drug Facts" panel; or
26 (B) A statement of the "active ingredient(s)" with a

SB1858 Engrossed- 12 -LRB101 11120 HLH 56342 b
1 list of those ingredients contained in the compound,
2 substance or preparation.
3 Beginning on January 1, 2014 (the effective date of Public
4Act 98-122), "prescription and nonprescription medicines and
5drugs" includes medical cannabis purchased from a registered
6dispensing organization under the Compassionate Use of Medical
7Cannabis Pilot Program Act.
8 If the property that is acquired from a serviceman is
9acquired outside Illinois and used outside Illinois before
10being brought to Illinois for use here and is taxable under
11this Act, the "selling price" on which the tax is computed
12shall be reduced by an amount that represents a reasonable
13allowance for depreciation for the period of prior out-of-state
14use.
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 15. The Service Occupation Tax Act is amended by
19changing Section 3-10 as follows:
20 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
21 Sec. 3-10. Rate of tax. Unless otherwise provided in this
22Section, the tax imposed by this Act is at the rate of 6.25% of
23the "selling price", as defined in Section 2 of the Service Use
24Tax Act, of the tangible personal property. For the purpose of

SB1858 Engrossed- 13 -LRB101 11120 HLH 56342 b
1computing this tax, in no event shall the "selling price" be
2less than the cost price to the serviceman of the tangible
3personal property transferred. The selling price of each item
4of tangible personal property transferred as an incident of a
5sale of service may be shown as a distinct and separate item on
6the serviceman's billing to the service customer. If the
7selling price is not so shown, the selling price of the
8tangible personal property is deemed to be 50% of the
9serviceman's entire billing to the service customer. When,
10however, a serviceman contracts to design, develop, and produce
11special order machinery or equipment, the tax imposed by this
12Act shall be based on the serviceman's cost price of the
13tangible personal property transferred incident to the
14completion of the contract.
15 Beginning on July 1, 2000 and through December 31, 2000,
16with respect to motor fuel, as defined in Section 1.1 of the
17Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
18the Use Tax Act, the tax is imposed at the rate of 1.25%.
19 With respect to gasohol, as defined in the Use Tax Act, the
20tax imposed by this Act shall apply to (i) 70% of the cost
21price of property transferred as an incident to the sale of
22service on or after January 1, 1990, and before July 1, 2003,
23(ii) 80% of the selling price of property transferred as an
24incident to the sale of service on or after July 1, 2003 and on
25or before July 1, 2017, and (iii) 100% of the cost price
26thereafter. If, at any time, however, the tax under this Act on

SB1858 Engrossed- 14 -LRB101 11120 HLH 56342 b
1sales of gasohol, as defined in the Use Tax Act, is imposed at
2the rate of 1.25%, then the tax imposed by this Act applies to
3100% of the proceeds of sales of gasohol made during that time.
4 With respect to majority blended ethanol fuel, as defined
5in the Use Tax Act, the tax imposed by this Act does not apply
6to the selling price of property transferred as an incident to
7the sale of service on or after July 1, 2003 and on or before
8December 31, 2023 but applies to 100% of the selling price
9thereafter.
10 With respect to biodiesel blends, as defined in the Use Tax
11Act, with no less than 1% and no more than 10% biodiesel, the
12tax imposed by this Act applies to (i) 80% of the selling price
13of property transferred as an incident to the sale of service
14on or after July 1, 2003 and on or before December 31, 2018 and
15(ii) 100% of the proceeds of the selling price thereafter. If,
16at any time, however, the tax under this Act on sales of
17biodiesel blends, as defined in the Use Tax Act, with no less
18than 1% and no more than 10% biodiesel is imposed at the rate
19of 1.25%, then the tax imposed by this Act applies to 100% of
20the proceeds of sales of biodiesel blends with no less than 1%
21and no more than 10% biodiesel made during that time.
22 With respect to 100% biodiesel, as defined in the Use Tax
23Act, and biodiesel blends, as defined in the Use Tax Act, with
24more than 10% but no more than 99% biodiesel material, the tax
25imposed by this Act does not apply to the proceeds of the
26selling price of property transferred as an incident to the

SB1858 Engrossed- 15 -LRB101 11120 HLH 56342 b
1sale of service on or after July 1, 2003 and on or before
2December 31, 2023 but applies to 100% of the selling price
3thereafter.
4 At the election of any registered serviceman made for each
5fiscal year, sales of service in which the aggregate annual
6cost price of tangible personal property transferred as an
7incident to the sales of service is less than 35%, or 75% in
8the case of servicemen transferring prescription drugs or
9servicemen engaged in graphic arts production, of the aggregate
10annual total gross receipts from all sales of service, the tax
11imposed by this Act shall be based on the serviceman's cost
12price of the tangible personal property transferred incident to
13the sale of those services.
14 The tax shall be imposed at the rate of 1% on food prepared
15for immediate consumption and transferred incident to a sale of
16service subject to this Act or the Service Occupation Tax Act
17by an entity licensed under the Hospital Licensing Act, the
18Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
19Act, the Specialized Mental Health Rehabilitation Act of 2013,
20or the Child Care Act of 1969. The tax shall also be imposed at
21the rate of 1% on food for human consumption that is to be
22consumed off the premises where it is sold (other than
23alcoholic beverages, soft drinks, and food that has been
24prepared for immediate consumption and is not otherwise
25included in this paragraph) internal (also known as female) and
26male condoms, incontinence products, diapers, baby wipes, and

SB1858 Engrossed- 16 -LRB101 11120 HLH 56342 b
1prescription and nonprescription medicines, drugs, medical
2appliances, products classified as Class III medical devices by
3the United States Food and Drug Administration that are used
4for cancer treatment pursuant to a prescription, as well as any
5accessories and components related to those devices,
6modifications to a motor vehicle for the purpose of rendering
7it usable by a person with a disability, and insulin, urine
8testing materials, syringes, and needles used by diabetics, for
9human use. For the purposes of this Section, until September 1,
102009: the term "soft drinks" means any complete, finished,
11ready-to-use, non-alcoholic drink, whether carbonated or not,
12including but not limited to soda water, cola, fruit juice,
13vegetable juice, carbonated water, and all other preparations
14commonly known as soft drinks of whatever kind or description
15that are contained in any closed or sealed can, carton, or
16container, regardless of size; but "soft drinks" does not
17include coffee, tea, non-carbonated water, infant formula,
18milk or milk products as defined in the Grade A Pasteurized
19Milk and Milk Products Act, or drinks containing 50% or more
20natural fruit or vegetable juice.
21 Notwithstanding any other provisions of this Act,
22beginning September 1, 2009, "soft drinks" means non-alcoholic
23beverages that contain natural or artificial sweeteners. "Soft
24drinks" do not include beverages that contain milk or milk
25products, soy, rice or similar milk substitutes, or greater
26than 50% of vegetable or fruit juice by volume.

SB1858 Engrossed- 17 -LRB101 11120 HLH 56342 b
1 Until August 1, 2009, and notwithstanding any other
2provisions of this Act, "food for human consumption that is to
3be consumed off the premises where it is sold" includes all
4food sold through a vending machine, except soft drinks and
5food products that are dispensed hot from a vending machine,
6regardless of the location of the vending machine. Beginning
7August 1, 2009, and notwithstanding any other provisions of
8this Act, "food for human consumption that is to be consumed
9off the premises where it is sold" includes all food sold
10through a vending machine, except soft drinks, candy, and food
11products that are dispensed hot from a vending machine,
12regardless of the location of the vending machine.
13 Notwithstanding any other provisions of this Act,
14beginning September 1, 2009, "food for human consumption that
15is to be consumed off the premises where it is sold" does not
16include candy. For purposes of this Section, "candy" means a
17preparation of sugar, honey, or other natural or artificial
18sweeteners in combination with chocolate, fruits, nuts or other
19ingredients or flavorings in the form of bars, drops, or
20pieces. "Candy" does not include any preparation that contains
21flour or requires refrigeration.
22 Notwithstanding any other provisions of this Act,
23beginning September 1, 2009, "nonprescription medicines and
24drugs" does not include grooming and hygiene products. For
25purposes of this Section, "grooming and hygiene products"
26includes, but is not limited to, soaps and cleaning solutions,

SB1858 Engrossed- 18 -LRB101 11120 HLH 56342 b
1shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
2lotions and screens, unless those products are available by
3prescription only, regardless of whether the products meet the
4definition of "over-the-counter-drugs". For the purposes of
5this paragraph, "over-the-counter-drug" means a drug for human
6use that contains a label that identifies the product as a drug
7as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
8label includes:
9 (A) A "Drug Facts" panel; or
10 (B) A statement of the "active ingredient(s)" with a
11 list of those ingredients contained in the compound,
12 substance or preparation.
13 Beginning on January 1, 2014 (the effective date of Public
14Act 98-122), "prescription and nonprescription medicines and
15drugs" includes medical cannabis purchased from a registered
16dispensing organization under the Compassionate Use of Medical
17Cannabis Pilot Program Act.
18(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
1999-642, eff. 7-28-16; 99-858, eff. 8-19-16; 100-22, eff.
207-6-17.)
21 Section 20. The Retailers' Occupation Tax Act is amended by
22changing Section 2-10 as follows:
23 (35 ILCS 120/2-10)
24 Sec. 2-10. Rate of tax. Unless otherwise provided in this

SB1858 Engrossed- 19 -LRB101 11120 HLH 56342 b
1Section, the tax imposed by this Act is at the rate of 6.25% of
2gross receipts from sales of tangible personal property made in
3the course of business.
4 Beginning on July 1, 2000 and through December 31, 2000,
5with respect to motor fuel, as defined in Section 1.1 of the
6Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
7the Use Tax Act, the tax is imposed at the rate of 1.25%.
8 Beginning on August 6, 2010 through August 15, 2010, with
9respect to sales tax holiday items as defined in Section 2-8 of
10this Act, the tax is imposed at the rate of 1.25%.
11 Within 14 days after the effective date of this amendatory
12Act of the 91st General Assembly, each retailer of motor fuel
13and gasohol shall cause the following notice to be posted in a
14prominently visible place on each retail dispensing device that
15is used to dispense motor fuel or gasohol in the State of
16Illinois: "As of July 1, 2000, the State of Illinois has
17eliminated the State's share of sales tax on motor fuel and
18gasohol through December 31, 2000. The price on this pump
19should reflect the elimination of the tax." The notice shall be
20printed in bold print on a sign that is no smaller than 4
21inches by 8 inches. The sign shall be clearly visible to
22customers. Any retailer who fails to post or maintain a
23required sign through December 31, 2000 is guilty of a petty
24offense for which the fine shall be $500 per day per each
25retail premises where a violation occurs.
26 With respect to gasohol, as defined in the Use Tax Act, the

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1tax imposed by this Act applies to (i) 70% of the proceeds of
2sales made on or after January 1, 1990, and before July 1,
32003, (ii) 80% of the proceeds of sales made on or after July
41, 2003 and on or before July 1, 2017, and (iii) 100% of the
5proceeds of sales made thereafter. If, at any time, however,
6the tax under this Act on sales of gasohol, as defined in the
7Use Tax Act, is imposed at the rate of 1.25%, then the tax
8imposed by this Act applies to 100% of the proceeds of sales of
9gasohol made during that time.
10 With respect to majority blended ethanol fuel, as defined
11in the Use Tax Act, the tax imposed by this Act does not apply
12to the proceeds of sales made on or after July 1, 2003 and on or
13before December 31, 2023 but applies to 100% of the proceeds of
14sales made thereafter.
15 With respect to biodiesel blends, as defined in the Use Tax
16Act, with no less than 1% and no more than 10% biodiesel, the
17tax imposed by this Act applies to (i) 80% of the proceeds of
18sales made on or after July 1, 2003 and on or before December
1931, 2018 and (ii) 100% of the proceeds of sales made
20thereafter. If, at any time, however, the tax under this Act on
21sales of biodiesel blends, as defined in the Use Tax Act, with
22no less than 1% and no more than 10% biodiesel is imposed at
23the rate of 1.25%, then the tax imposed by this Act applies to
24100% of the proceeds of sales of biodiesel blends with no less
25than 1% and no more than 10% biodiesel made during that time.
26 With respect to 100% biodiesel, as defined in the Use Tax

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1Act, and biodiesel blends, as defined in the Use Tax Act, with
2more than 10% but no more than 99% biodiesel, the tax imposed
3by this Act does not apply to the proceeds of sales made on or
4after July 1, 2003 and on or before December 31, 2023 but
5applies to 100% of the proceeds of sales made thereafter.
6 With respect to food for human consumption that is to be
7consumed off the premises where it is sold (other than
8alcoholic beverages, soft drinks, and food that has been
9prepared for immediate consumption) and prescription and
10nonprescription medicines, drugs, medical appliances, internal
11(also known as female) and male condoms, incontinence products,
12diapers, baby wipes, products classified as Class III medical
13devices by the United States Food and Drug Administration that
14are used for cancer treatment pursuant to a prescription, as
15well as any accessories and components related to those
16devices, modifications to a motor vehicle for the purpose of
17rendering it usable by a person with a disability, and insulin,
18urine testing materials, syringes, and needles used by
19diabetics, for human use, the tax is imposed at the rate of 1%.
20For the purposes of this Section, until September 1, 2009: the
21term "soft drinks" means any complete, finished, ready-to-use,
22non-alcoholic drink, whether carbonated or not, including but
23not limited to soda water, cola, fruit juice, vegetable juice,
24carbonated water, and all other preparations commonly known as
25soft drinks of whatever kind or description that are contained
26in any closed or sealed bottle, can, carton, or container,

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

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1include candy. For purposes of this Section, "candy" means a
2preparation of sugar, honey, or other natural or artificial
3sweeteners in combination with chocolate, fruits, nuts or other
4ingredients or flavorings in the form of bars, drops, or
5pieces. "Candy" does not include any preparation that contains
6flour or requires refrigeration.
7 Notwithstanding any other provisions of this Act,
8beginning September 1, 2009, "nonprescription medicines and
9drugs" does not include grooming and hygiene products. For
10purposes of this Section, "grooming and hygiene products"
11includes, but is not limited to, soaps and cleaning solutions,
12shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
13lotions and screens, unless those products are available by
14prescription only, regardless of whether the products meet the
15definition of "over-the-counter-drugs". For the purposes of
16this paragraph, "over-the-counter-drug" means a drug for human
17use that contains a label that identifies the product as a drug
18as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
19label includes:
20 (A) A "Drug Facts" panel; or
21 (B) A statement of the "active ingredient(s)" with a
22 list of those ingredients contained in the compound,
23 substance or preparation.
24 Beginning on the effective date of this amendatory Act of
25the 98th General Assembly, "prescription and nonprescription
26medicines and drugs" includes medical cannabis purchased from a

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1registered dispensing organization under the Compassionate Use
2of Medical Cannabis Pilot Program Act.
3(Source: P.A. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16;
4100-22, eff. 7-6-17.)
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