HB2829 104TH GENERAL ASSEMBLY

LRB104 08914 RPS 18969 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB2829

Introduced 2/6/2025, by Rep. Charles Meier

SYNOPSIS AS INTRODUCED:

30 ILCS 105/5.1030 new
235 ILCS 5/6-40 new
235 ILCS 5/6-45 new
235 ILCS 5/8-1

Amends the Liquor Control Act of 1934. Provides that, beginning January 1, 2026, $0.25 of every $1 of the remainder of the tax imposed by the Act on wine that was manufactured in this State shall be deposited into the Illinois Wine Promotion Fund. Creates the Illinois Wine Promotion Fund as a special fund in the State treasury to be used by the Department of Agriculture only for the purpose of distributing grants to wine manufacturers and grape growers located in a wine trail from appropriations made from the Illinois Wine Promotion Fund for that purpose and administering and maintaining the Illinois Winery Advisory Council. Establishes the Illinois Winery Advisory Council to oversee and provide advice to the Department of Agriculture regarding the distribution of grants from the Illinois Wine Promotion Fund. Sets forth provisions concerning the membership of the Advisory Council, quarterly meetings, reimbursement of expenses, and vacancies. Amends the State Finance Act to make a conforming change.

A BILL FOR

AN ACT concerning liquor.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The State Finance Act is amended by adding Section 5.1030 as follows:

(30 ILCS 105/5.1030 new)

Sec. 5.1030. The Illinois Wine Promotion Fund.

Section 10. The Liquor Control Act of 1934 is amended by changing Section 8-1 and by adding Section 6-40 and 6-45 as follows:

(235 ILCS 5/6-40 new)

Sec. 6-40. Illinois Wine Promotion Fund.

(a) In this Section, "wine trail" means a geographic area of the State designated by the Department of Agriculture in which significant wine manufacturing occurs.

(b) The Illinois Wine Promotion Fund is created as a special fund in the State treasury. Moneys in the Fund may be used by the Department of Agriculture to distribute grants to wine manufacturers and grape growers located in a wine trail from appropriations made from the Fund for that purpose and to administer and maintain the Illinois Winery Advisory Council.

(235 ILCS 5/6-45 new)

Sec. 6-45. Illinois Winery Advisory Council.

(a) The Illinois Winery Advisory Council is established to oversee and provide advice to the Department of Agriculture regarding the distribution of grants from the Illinois Wine Promotion Fund.

(b) The Advisory Council shall consist of 7 members appointed by the Director of Agriculture, after consultation with Illinois wine manufacturers and stakeholders. Each member appointed to the Advisory Council must represent a geographically distinct area of the State.

(c) After all the members are appointed, they shall elect a chairperson from among themselves. The Advisory Council shall meet not less than quarterly.

(d) Advisory Council members shall serve without compensation but may be reimbursed for their expenses incurred in performing their duties.

(e) If a vacancy occurs in the Advisory Council, the Director of Agriculture shall appoint a replacement.

(235 ILCS 5/8-1)

Sec. 8-1. A tax is imposed upon the privilege of engaging in business as a manufacturer or as an importing distributor of alcoholic liquor other than beer at the rate of $0.185 per gallon until September 1, 2009 and $0.231 per gallon beginning September 1, 2009 for cider containing not less than 0.5% alcohol by volume nor more than 7% alcohol by volume, $0.73 per gallon until September 1, 2009 and $1.39 per gallon beginning September 1, 2009 for wine other than cider containing less than 7% alcohol by volume, and $4.50 per gallon until September 1, 2009 and $8.55 per gallon beginning September 1, 2009 on alcohol and spirits manufactured and sold or used by such manufacturer, or as agent for any other person, or sold or used by such importing distributor, or as agent for any other person. A tax is imposed upon the privilege of engaging in business as a manufacturer of beer or as an importing distributor of beer at the rate of $0.185 per gallon until September 1, 2009 and $0.231 per gallon beginning September 1, 2009 on all beer, regardless of alcohol by volume, manufactured and sold or used by such manufacturer, or as agent for any other person, or sold or used by such importing distributor, or as agent for any other person. Any brewer manufacturing beer in this State shall be entitled to and given a credit or refund of 75% of the tax imposed on each gallon of beer up to 4.9 million gallons per year in any given calendar year for tax paid or payable on beer produced and sold in the State of Illinois.

For purposes of this Section, "beer" means beer, ale, porter, stout, and other similar fermented beverages of any name or description containing one-half of one percent or more of alcohol by volume, brewed or produced from malt, wholly or in part, or from any substitute for malt.

For the purpose of this Section, "cider" means any alcoholic beverage obtained by the alcohol fermentation of the juice of apples or pears including, but not limited to, flavored, sparkling, or carbonated cider.

The credit or refund created by this Act shall apply to all beer taxes in the calendar years 1982 through 1986.

The increases made by this amendatory Act of the 91st General Assembly in the rates of taxes imposed under this Section shall apply beginning on July 1, 1999.

A tax at the rate of 1¢ per gallon on beer and 48¢ per gallon on alcohol and spirits is also imposed upon the privilege of engaging in business as a retailer or as a distributor who is not also an importing distributor with respect to all beer and all alcohol and spirits owned or possessed by such retailer or distributor when this amendatory Act of 1969 becomes effective, and with respect to which the additional tax imposed by this amendatory Act upon manufacturers and importing distributors does not apply. Retailers and distributors who are subject to the additional tax imposed by this paragraph of this Section shall be required to inventory such alcoholic liquor and to pay this additional tax in a manner prescribed by the Department.

The provisions of this Section shall be construed to apply to any importing distributor engaging in business in this State, whether licensed or not.

However, such tax is not imposed upon any such business as to any alcoholic liquor shipped outside Illinois by an Illinois licensed manufacturer or importing distributor, nor as to any alcoholic liquor delivered in Illinois by an Illinois licensed manufacturer or importing distributor to a purchaser for immediate transportation by the purchaser to another state into which the purchaser has a legal right, under the laws of such state, to import such alcoholic liquor, nor as to any alcoholic liquor other than beer sold by one Illinois licensed manufacturer or importing distributor to another Illinois licensed manufacturer or importing distributor to the extent to which the sale of alcoholic liquor other than beer by one Illinois licensed manufacturer or importing distributor to another Illinois licensed manufacturer or importing distributor is authorized by the licensing provisions of this Act, nor to alcoholic liquor whether manufactured in or imported into this State when sold to a "non-beverage user" licensed by the State for use in the manufacture of any of the following when they are unfit for beverage purposes:

Patent and proprietary medicines and medicinal, antiseptic, culinary and toilet preparations;

Flavoring extracts and syrups and food products;

Scientific, industrial and chemical products, excepting denatured alcohol;

Or for scientific, chemical, experimental or mechanical purposes;

Nor is the tax imposed upon the privilege of engaging in any business in interstate commerce or otherwise, which business may not, under the Constitution and Statutes of the United States, be made the subject of taxation by this State.

The tax herein imposed shall be in addition to all other occupation or privilege taxes imposed by the State of Illinois or political subdivision thereof.

If any alcoholic liquor manufactured in or imported into this State is sold to a licensed manufacturer or importing distributor by a licensed manufacturer or importing distributor to be used solely as an ingredient in the manufacture of any beverage for human consumption, the tax imposed upon such purchasing manufacturer or importing distributor shall be reduced by the amount of the taxes which have been paid by the selling manufacturer or importing distributor under this Act as to such alcoholic liquor so used to the Department of Revenue.

If any person received any alcoholic liquors from a manufacturer or importing distributor, with respect to which alcoholic liquors no tax is imposed under this Article, and such alcoholic liquor shall thereafter be disposed of in such manner or under such circumstances as may cause the same to become the base for the tax imposed by this Article, such person shall make the same reports and returns, pay the same taxes and be subject to all other provisions of this Article relating to manufacturers and importing distributors.

Nothing in this Article shall be construed to require the payment to the Department of the taxes imposed by this Article more than once with respect to any quantity of alcoholic liquor sold or used within this State.

No tax is imposed by this Act on sales of alcoholic liquor by Illinois licensed foreign importers to Illinois licensed importing distributors.

All of the proceeds of the additional tax imposed by Public Act 96-34 shall be deposited by the Department into the Capital Projects Fund. The remainder of the tax imposed by this Act shall be deposited by the Department into the General Revenue Fund; except that, beginning January 1, 2026, $0.25 of every $1 of the remainder of the tax imposed by this Act on wine that was manufactured in this State shall be deposited into the Illinois Wine Promotion Fund.

A manufacturer of beer that imports or transfers beer into this State must comply with the provisions of this Section with regard to the beer imported into this State.

The provisions of this Section 8-1 are severable under Section 1.31 of the Statute on Statutes.

(Source: P.A. 100-885, eff. 8-14-18; 101-16, eff. 6-14-19.)