093_SB0046enr SB46 Enrolled LRB093 02617 SJM 02627 b 1 AN ACT concerning taxes. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. If and only if both Senate Bill 1212 and 5 House Bill 46 of the 93rd General Assembly become law, then 6 the Use Tax Act is amended by changing Section 3-10 and by 7 adding Sections 3-41, 3-42, 3-43, 3-44, and 3-44.5 as 8 follows: 9 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10) 10 Sec. 3-10. Rate of tax. Unless otherwise provided in 11 this Section, the tax imposed by this Act is at the rate of 12 6.25% of either the selling price or the fair market value, 13 if any, of the tangible personal property. In all cases 14 where property functionally used or consumed is the same as 15 the property that was purchased at retail, then the tax is 16 imposed on the selling price of the property. In all cases 17 where property functionally used or consumed is a by-product 18 or waste product that has been refined, manufactured, or 19 produced from property purchased at retail, then the tax is 20 imposed on the lower of the fair market value, if any, of the 21 specific property so used in this State or on the selling 22 price of the property purchased at retail. For purposes of 23 this Section "fair market value" means the price at which 24 property would change hands between a willing buyer and a 25 willing seller, neither being under any compulsion to buy or 26 sell and both having reasonable knowledge of the relevant 27 facts. The fair market value shall be established by Illinois 28 sales by the taxpayer of the same property as that 29 functionally used or consumed, or if there are no such sales 30 by the taxpayer, then comparable sales or purchases of 31 property of like kind and character in Illinois. SB46 Enrolled -2- LRB093 02617 SJM 02627 b 1 Beginning on July 1, 2000 and through December 31, 2000, 2 with respect to motor fuel, as defined in Section 1.1 of the 3 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 4 of the Use Tax Act, the tax is imposed at the rate of 1.25%. 5 With respect to gasohol, the tax imposed by this Act 6 applies to (i) 70% of the proceeds of sales made on or after 7 January 1, 1990, and before July 1, 2003, (ii) 80% of the 8 proceeds of sales made on or after July 1, 2003 and on or 9 before December 31, 2013, and (iii)to100% of the proceeds 10 of sales made thereafter. If, at any time, however, the tax 11 under this Act on sales of gasohol is imposed at the rate of 12 1.25%, then the tax imposed by this Act applies to 100% of 13 the proceeds of sales of gasohol made during that time. 14 With respect to majority blended ethanol fuel, the tax 15 imposed by this Act does not apply to the proceeds of sales 16 made on or after July 1, 2003 and on or before December 31, 17 2013 but applies to 100% of the proceeds of sales made 18 thereafter. 19 With respect to biodiesel blends with no less than 1% and 20 no more than 10% biodiesel, the tax imposed by this Act 21 applies to (i) 80% of the proceeds of sales made on or after 22 July 1, 2003 and on or before December 31, 2013 and (ii) 100% 23 of the proceeds of sales made thereafter. If, at any time, 24 however, the tax under this Act on sales of biodiesel blends 25 with no less than 1% and no more than 10% biodiesel is 26 imposed at the rate of 1.25%, then the tax imposed by this 27 Act applies to 100% of the proceeds of sales of biodiesel 28 blends with no less than 1% and no more than 10% biodiesel 29 made during that time. 30 With respect to 100% biodiesel and biodiesel blends with 31 more than 10% but no more than 99% biodiesel, the tax imposed 32 by this Act does not apply to the proceeds of sales made on 33 or after July 1, 2003 and on or before December 31, 2013 but 34 applies to 100% of the proceeds of sales made thereafter. SB46 Enrolled -3- LRB093 02617 SJM 02627 b 1 With respect to food for human consumption that is to be 2 consumed off the premises where it is sold (other than 3 alcoholic beverages, soft drinks, and food that has been 4 prepared for immediate consumption) and prescription and 5 nonprescription medicines, drugs, medical appliances, 6 modifications to a motor vehicle for the purpose of rendering 7 it usable by a disabled person, and insulin, urine testing 8 materials, syringes, and needles used by diabetics, for human 9 use, the tax is imposed at the rate of 1%. For the purposes 10 of this Section, the term "soft drinks" means any complete, 11 finished, ready-to-use, non-alcoholic drink, whether 12 carbonated or not, including but not limited to soda water, 13 cola, fruit juice, vegetable juice, carbonated water, and all 14 other preparations commonly known as soft drinks of whatever 15 kind or description that are contained in any closed or 16 sealed bottle, can, carton, or container, regardless of size. 17 "Soft drinks" does not include coffee, tea, non-carbonated 18 water, infant formula, milk or milk products as defined in 19 the Grade A Pasteurized Milk and Milk Products Act, or drinks 20 containing 50% or more natural fruit or vegetable juice. 21 Notwithstanding any other provisions of this Act, "food 22 for human consumption that is to be consumed off the premises 23 where it is sold" includes all food sold through a vending 24 machine, except soft drinks and food products that are 25 dispensed hot from a vending machine, regardless of the 26 location of the vending machine. 27 If the property that is purchased at retail from a 28 retailer is acquired outside Illinois and used outside 29 Illinois before being brought to Illinois for use here and is 30 taxable under this Act, the "selling price" on which the tax 31 is computed shall be reduced by an amount that represents a 32 reasonable allowance for depreciation for the period of prior 33 out-of-state use. 34 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; SB46 Enrolled -4- LRB093 02617 SJM 02627 b 1 91-51, eff. 6-30-99; 91-872, eff. 7-1-00.) 2 (35 ILCS 105/3-41 new) 3 Sec. 3-41. Biodiesel. "Biodiesel" means a renewable 4 diesel fuel derived from biomass that is intended for use in 5 diesel engines. 6 (35 ILCS 105/3-42 new) 7 Sec. 3-42. Biodiesel blend. "Biodiesel blend" means a 8 blend of biodiesel with petroleum-based diesel fuel in which 9 the resultant product contains no less than 1% and no more 10 than 99% biodiesel. 11 (35 ILCS 105/3-43 new) 12 Sec. 3-43. Biomass. "Biomass" means non-fossil organic 13 materials that have an intrinsic chemical energy content. 14 "Biomass" includes, but is not limited to, soybean oil, other 15 vegetable oils, and ethanol. 16 (35 ILCS 105/3-44 new) 17 Sec. 3-44. Majority blended ethanol fuel. "Majority 18 blended ethanol fuel" means motor fuel that contains not less 19 than 70% and no more than 90% denatured ethanol and no less 20 than 10% and no more than 30% gasoline. 21 (35 ILCS 105/3-44.5 new) 22 Sec. 3-44.5. Diesel fuel. "Diesel fuel" means any 23 product intended for use or offered for sale as a fuel for 24 engines in which the fuel is injected into the combustion 25 chamber and ignited by pressure without electric spark. 26 Section 10. If and only if both Senate Bill 1212 and 27 House Bill 46 of the 93rd General Assembly become law, then 28 the Service Use Tax Act is amended by changing Section 3-10 SB46 Enrolled -5- LRB093 02617 SJM 02627 b 1 as follows: 2 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10) 3 Sec. 3-10. Rate of tax. Unless otherwise provided in 4 this Section, the tax imposed by this Act is at the rate of 5 6.25% of the selling price of tangible personal property 6 transferred as an incident to the sale of service, but, for 7 the purpose of computing this tax, in no event shall the 8 selling price be less than the cost price of the property to 9 the serviceman. 10 Beginning on July 1, 2000 and through December 31, 2000, 11 with respect to motor fuel, as defined in Section 1.1 of the 12 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 13 of the Use Tax Act, the tax is imposed at the rate of 1.25%. 14 With respect to gasohol, as defined in the Use Tax Act, 15 the tax imposed by this Act applies to (i) 70% of the selling 16 price of property transferred as an incident to the sale of 17 service on or after January 1, 1990, and before July 1, 2003, 18 (ii) 80% of the selling price of property transferred as an 19 incident to the sale of service on or after July 1, 2003 and 20 on or before December 31, 2013, and (iii)to100% of the 21 selling price thereafter. If, at any time, however, the tax 22 under this Act on sales of gasohol, as defined in the Use Tax 23 Act, is imposed at the rate of 1.25%, then the tax imposed by 24 this Act applies to 100% of the proceeds of sales of gasohol 25 made during that time. 26 With respect to majority blended ethanol fuel, as defined 27 in the Use Tax Act, the tax imposed by this Act does not 28 apply to the selling price of property transferred as an 29 incident to the sale of service on or after July 1, 2003 and 30 on or before December 31, 2013 but applies to 100% of the 31 selling price thereafter. 32 With respect to biodiesel blends, as defined in the Use 33 Tax Act, with no less than 1% and no more than 10% biodiesel, SB46 Enrolled -6- LRB093 02617 SJM 02627 b 1 the tax imposed by this Act applies to (i) 80% of the selling 2 price of property transferred as an incident to the sale of 3 service on or after July 1, 2003 and on or before December 4 31, 2013 and (ii) 100% of the proceeds of the selling price 5 thereafter. If, at any time, however, the tax under this Act 6 on sales of biodiesel blends, as defined in the Use Tax Act, 7 with no less than 1% and no more than 10% biodiesel is 8 imposed at the rate of 1.25%, then the tax imposed by this 9 Act applies to 100% of the proceeds of sales of biodiesel 10 blends with no less than 1% and no more than 10% biodiesel 11 made during that time. 12 With respect to 100% biodiesel, as defined in the Use Tax 13 Act, and biodiesel blends, as defined in the Use Tax Act, 14 with more than 10% but no more than 99% biodiesel, the tax 15 imposed by this Act does not apply to the proceeds of the 16 selling price of property transferred as an incident to the 17 sale of service on or after July 1, 2003 and on or before 18 December 31, 2013 but applies to 100% of the selling price 19 thereafter. 20 At the election of any registered serviceman made for 21 each fiscal year, sales of service in which the aggregate 22 annual cost price of tangible personal property transferred 23 as an incident to the sales of service is less than 35%, or 24 75% in the case of servicemen transferring prescription drugs 25 or servicemen engaged in graphic arts production, of the 26 aggregate annual total gross receipts from all sales of 27 service, the tax imposed by this Act shall be based on the 28 serviceman's cost price of the tangible personal property 29 transferred as an incident to the sale of those services. 30 The tax shall be imposed at the rate of 1% on food 31 prepared for immediate consumption and transferred incident 32 to a sale of service subject to this Act or the Service 33 Occupation Tax Act by an entity licensed under the Hospital 34 Licensing Act, the Nursing Home Care Act, or the Child Care SB46 Enrolled -7- LRB093 02617 SJM 02627 b 1 Act of 1969. The tax shall also be imposed at the rate of 1% 2 on food for human consumption that is to be consumed off the 3 premises where it is sold (other than alcoholic beverages, 4 soft drinks, and food that has been prepared for immediate 5 consumption and is not otherwise included in this paragraph) 6 and prescription and nonprescription medicines, drugs, 7 medical appliances, modifications to a motor vehicle for the 8 purpose of rendering it usable by a disabled person, and 9 insulin, urine testing materials, syringes, and needles used 10 by diabetics, for human use. For the purposes of this 11 Section, the term "soft drinks" means any complete, finished, 12 ready-to-use, non-alcoholic drink, whether carbonated or not, 13 including but not limited to soda water, cola, fruit juice, 14 vegetable juice, carbonated water, and all other preparations 15 commonly known as soft drinks of whatever kind or description 16 that are contained in any closed or sealed bottle, can, 17 carton, or container, regardless of size. "Soft drinks" does 18 not include coffee, tea, non-carbonated water, infant 19 formula, milk or milk products as defined in the Grade A 20 Pasteurized Milk and Milk Products Act, or drinks containing 21 50% or more natural fruit or vegetable juice. 22 Notwithstanding any other provisions of this Act, "food 23 for human consumption that is to be consumed off the premises 24 where it is sold" includes all food sold through a vending 25 machine, except soft drinks and food products that are 26 dispensed hot from a vending machine, regardless of the 27 location of the vending machine. 28 If the property that is acquired from a serviceman is 29 acquired outside Illinois and used outside Illinois before 30 being brought to Illinois for use here and is taxable under 31 this Act, the "selling price" on which the tax is computed 32 shall be reduced by an amount that represents a reasonable 33 allowance for depreciation for the period of prior 34 out-of-state use. SB46 Enrolled -8- LRB093 02617 SJM 02627 b 1 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 2 91-51, eff. 6-30-99; 91-541, eff. 8-13-99; 91-872, eff. 3 7-1-00.) 4 Section 15. If and only if both Senate Bill 1212 and 5 House Bill 46 of the 93rd General Assembly become law, then 6 the Service Occupation Tax Act is amended by changing Section 7 3-10 as follows: 8 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10) 9 Sec. 3-10. Rate of tax. Unless otherwise provided in 10 this Section, the tax imposed by this Act is at the rate of 11 6.25% of the "selling price", as defined in Section 2 of the 12 Service Use Tax Act, of the tangible personal property. For 13 the purpose of computing this tax, in no event shall the 14 "selling price" be less than the cost price to the serviceman 15 of the tangible personal property transferred. The selling 16 price of each item of tangible personal property transferred 17 as an incident of a sale of service may be shown as a 18 distinct and separate item on the serviceman's billing to the 19 service customer. If the selling price is not so shown, the 20 selling price of the tangible personal property is deemed to 21 be 50% of the serviceman's entire billing to the service 22 customer. When, however, a serviceman contracts to design, 23 develop, and produce special order machinery or equipment, 24 the tax imposed by this Act shall be based on the 25 serviceman's cost price of the tangible personal property 26 transferred incident to the completion of the contract. 27 Beginning on July 1, 2000 and through December 31, 2000, 28 with respect to motor fuel, as defined in Section 1.1 of the 29 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 30 of the Use Tax Act, the tax is imposed at the rate of 1.25%. 31 With respect to gasohol, as defined in the Use Tax Act, 32 the tax imposed by this Act shall apply to (i) 70% of the SB46 Enrolled -9- LRB093 02617 SJM 02627 b 1 cost price of property transferred as an incident to the sale 2 of service on or after January 1, 1990, and before July 1, 3 2003, (ii) 80% of the selling price of property transferred 4 as an incident to the sale of service on or after July 1, 5 2003 and on or before December 31, 2013, and (iii)to100% of 6 the cost price thereafter. If, at any time, however, the tax 7 under this Act on sales of gasohol, as defined in the Use Tax 8 Act, is imposed at the rate of 1.25%, then the tax imposed by 9 this Act applies to 100% of the proceeds of sales of gasohol 10 made during that time. 11 With respect to majority blended ethanol fuel, as defined 12 in the Use Tax Act, the tax imposed by this Act does not 13 apply to the selling price of property transferred as an 14 incident to the sale of service on or after July 1, 2003 and 15 on or before December 31, 2013 but applies to 100% of the 16 selling price thereafter. 17 With respect to biodiesel blends, as defined in the Use 18 Tax Act, with no less than 1% and no more than 10% biodiesel, 19 the tax imposed by this Act applies to (i) 80% of the selling 20 price of property transferred as an incident to the sale of 21 service on or after July 1, 2003 and on or before December 22 31, 2013 and (ii) 100% of the proceeds of the selling price 23 thereafter. If, at any time, however, the tax under this Act 24 on sales of biodiesel blends, as defined in the Use Tax Act, 25 with no less than 1% and no more than 10% biodiesel is 26 imposed at the rate of 1.25%, then the tax imposed by this 27 Act applies to 100% of the proceeds of sales of biodiesel 28 blends with no less than 1% and no more than 10% biodiesel 29 made during that time. 30 With respect to 100% biodiesel, as defined in the Use Tax 31 Act, and biodiesel blends, as defined in the Use Tax Act, 32 with more than 10% but no more than 99% biodiesel material, 33 the tax imposed by this Act does not apply to the proceeds of 34 the selling price of property transferred as an incident to SB46 Enrolled -10- LRB093 02617 SJM 02627 b 1 the sale of service on or after July 1, 2003 and on or before 2 December 31, 2013 but applies to 100% of the selling price 3 thereafter. 4 At the election of any registered serviceman made for 5 each fiscal year, sales of service in which the aggregate 6 annual cost price of tangible personal property transferred 7 as an incident to the sales of service is less than 35%, or 8 75% in the case of servicemen transferring prescription drugs 9 or servicemen engaged in graphic arts production, of the 10 aggregate annual total gross receipts from all sales of 11 service, the tax imposed by this Act shall be based on the 12 serviceman's cost price of the tangible personal property 13 transferred incident to the sale of those services. 14 The tax shall be imposed at the rate of 1% on food 15 prepared for immediate consumption and transferred incident 16 to a sale of service subject to this Act or the Service 17 Occupation Tax Act by an entity licensed under the Hospital 18 Licensing Act, the Nursing Home Care Act, or the Child Care 19 Act of 1969. The tax shall also be imposed at the rate of 1% 20 on food for human consumption that is to be consumed off the 21 premises where it is sold (other than alcoholic beverages, 22 soft drinks, and food that has been prepared for immediate 23 consumption and is not otherwise included in this paragraph) 24 and prescription and nonprescription medicines, drugs, 25 medical appliances, modifications to a motor vehicle for the 26 purpose of rendering it usable by a disabled person, and 27 insulin, urine testing materials, syringes, and needles used 28 by diabetics, for human use. For the purposes of this 29 Section, the term "soft drinks" means any complete, finished, 30 ready-to-use, non-alcoholic drink, whether carbonated or not, 31 including but not limited to soda water, cola, fruit juice, 32 vegetable juice, carbonated water, and all other preparations 33 commonly known as soft drinks of whatever kind or description 34 that are contained in any closed or sealed can, carton, or SB46 Enrolled -11- LRB093 02617 SJM 02627 b 1 container, regardless of size. "Soft drinks" does not 2 include coffee, tea, non-carbonated water, infant formula, 3 milk or milk products as defined in the Grade A Pasteurized 4 Milk and Milk Products Act, or drinks containing 50% or more 5 natural fruit or vegetable juice. 6 Notwithstanding any other provisions of this Act, "food 7 for human consumption that is to be consumed off the premises 8 where it is sold" includes all food sold through a vending 9 machine, except soft drinks and food products that are 10 dispensed hot from a vending machine, regardless of the 11 location of the vending machine. 12 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 13 91-51, 6-30-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00.) 14 Section 20. If and only if both Senate Bill 1212 and 15 House Bill 46 of the 93rd General Assembly become law, then 16 the Retailers' Occupation Tax Act is amended by changing 17 Section 2-10 as follows: 18 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10) 19 Sec. 2-10. Rate of tax. Unless otherwise provided in 20 this Section, the tax imposed by this Act is at the rate of 21 6.25% of gross receipts from sales of tangible personal 22 property made in the course of business. 23 Beginning on July 1, 2000 and through December 31, 2000, 24 with respect to motor fuel, as defined in Section 1.1 of the 25 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 26 of the Use Tax Act, the tax is imposed at the rate of 1.25%. 27 Within 14 days after the effective date of this 28 amendatory Act of the 91st General Assembly, each retailer of 29 motor fuel and gasohol shall cause the following notice to be 30 posted in a prominently visible place on each retail 31 dispensing device that is used to dispense motor fuel or 32 gasohol in the State of Illinois: "As of July 1, 2000, the SB46 Enrolled -12- LRB093 02617 SJM 02627 b 1 State of Illinois has eliminated the State's share of sales 2 tax on motor fuel and gasohol through December 31, 2000. The 3 price on this pump should reflect the elimination of the 4 tax." The notice shall be printed in bold print on a sign 5 that is no smaller than 4 inches by 8 inches. The sign shall 6 be clearly visible to customers. Any retailer who fails to 7 post or maintain a required sign through December 31, 2000 is 8 guilty of a petty offense for which the fine shall be $500 9 per day per each retail premises where a violation occurs. 10 With respect to gasohol, as defined in the Use Tax Act, 11 the tax imposed by this Act applies to (i) 70% of the 12 proceeds of sales made on or after January 1, 1990, and 13 before July 1, 2003, (ii) 80% of the proceeds of sales made 14 on or after July 1, 2003 and on or before December 31, 2013, 15 and (iii)to100% of the proceeds of sales made thereafter. 16 If, at any time, however, the tax under this Act on sales of 17 gasohol, as defined in the Use Tax Act, is imposed at the 18 rate of 1.25%, then the tax imposed by this Act applies to 19 100% of the proceeds of sales of gasohol made during that 20 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 23 apply to the proceeds of sales made on or after July 1, 2003 24 and on or before December 31, 2013 but applies to 100% of the 25 proceeds of sales made thereafter. 26 With respect to biodiesel blends, as defined in the Use 27 Tax Act, with no less than 1% and no more than 10% biodiesel, 28 the tax imposed by this Act applies to (i) 80% of the 29 proceeds of sales made on or after July 1, 2003 and on or 30 before December 31, 2013 and (ii) 100% of the proceeds of 31 sales made thereafter. If, at any time, however, the tax 32 under this Act on sales of biodiesel blends, as defined in 33 the Use Tax Act, with no less than 1% and no more than 10% 34 biodiesel is imposed at the rate of 1.25%, then the tax SB46 Enrolled -13- LRB093 02617 SJM 02627 b 1 imposed by this Act applies to 100% of the proceeds of sales 2 of biodiesel blends with no less than 1% and no more than 10% 3 biodiesel made during that time. 4 With respect to 100% biodiesel, as defined in the Use Tax 5 Act, and biodiesel blends, as defined in the Use Tax Act, 6 with more than 10% but no more than 99% biodiesel, the tax 7 imposed by this Act does not apply to the proceeds of sales 8 made on or after July 1, 2003 and on or before December 31, 9 2013 but applies to 100% of the proceeds of sales made 10 thereafter. 11 With respect to food for human consumption that is to be 12 consumed off the premises where it is sold (other than 13 alcoholic beverages, soft drinks, and food that has been 14 prepared for immediate consumption) and prescription and 15 nonprescription medicines, drugs, medical appliances, 16 modifications to a motor vehicle for the purpose of rendering 17 it usable by a disabled person, and insulin, urine testing 18 materials, syringes, and needles used by diabetics, for human 19 use, the tax is imposed at the rate of 1%. For the purposes 20 of this Section, the term "soft drinks" means any complete, 21 finished, ready-to-use, non-alcoholic drink, whether 22 carbonated or not, including but not limited to soda water, 23 cola, fruit juice, vegetable juice, carbonated water, and all 24 other preparations commonly known as soft drinks of whatever 25 kind or description that are contained in any closed or 26 sealed bottle, can, carton, or container, regardless of size. 27 "Soft drinks" does not include coffee, tea, non-carbonated 28 water, infant formula, milk or milk products as defined in 29 the Grade A Pasteurized Milk and Milk Products Act, or drinks 30 containing 50% or more natural fruit or vegetable juice. 31 Notwithstanding any other provisions of this Act, "food 32 for human consumption that is to be consumed off the premises 33 where it is sold" includes all food sold through a vending 34 machine, except soft drinks and food products that are SB46 Enrolled -14- LRB093 02617 SJM 02627 b 1 dispensed hot from a vending machine, regardless of the 2 location of the vending machine. 3 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 4 91-51, eff. 6-30-99; 91-872, eff. 7-1-00.) 5 Section 25. If and only if both Senate Bill 1212 and 6 House Bill 46 of the 93rd General Assembly become law, then 7 the Motor Fuel Tax Law is amended by changing Section 2 as 8 follows: 9 (35 ILCS 505/2) (from Ch. 120, par. 418) 10 Sec. 2. A tax is imposed on the privilege of operating 11 motor vehicles upon the public highways and recreational-type 12 watercraft upon the waters of this State. 13 (a) Prior to August 1, 1989, the tax is imposed at the 14 rate of 13 cents per gallon on all motor fuel used in motor 15 vehicles operating on the public highways and recreational 16 type watercraft operating upon the waters of this State. 17 Beginning on August 1, 1989 and until January 1, 1990, the 18 rate of the tax imposed in this paragraph shall be 16 cents 19 per gallon. Beginning January 1, 1990, the rate of tax 20 imposed in this paragraph shall be 19 cents per gallon. 21 (b) The tax on the privilege of operating motor vehicles 22 which use diesel fuel shall be the rate according to 23 paragraph (a) plus an additional 2 1/2 cents per gallon. 24 "Diesel fuel" is defined as anypetroleumproduct intended 25 for use or offered for sale as a fuel for engines in which 26 the fuel is injected into the combustion chamber and ignited 27 by pressure without electric spark. 28 (c) A tax is imposed upon the privilege of engaging in 29 the business of selling motor fuel as a retailer or reseller 30 on all motor fuel used in motor vehicles operating on the 31 public highways and recreational type watercraft operating 32 upon the waters of this State: (1) at the rate of 3 cents per SB46 Enrolled -15- LRB093 02617 SJM 02627 b 1 gallon on motor fuel owned or possessed by such retailer or 2 reseller at 12:01 a.m. on August 1, 1989; and (2) at the rate 3 of 3 cents per gallon on motor fuel owned or possessed by 4 such retailer or reseller at 12:01 A.M. on January 1, 1990. 5 Retailers and resellers who are subject to this 6 additional tax shall be required to inventory such motor fuel 7 and pay this additional tax in a manner prescribed by the 8 Department of Revenue. 9 The tax imposed in this paragraph (c) shall be in 10 addition to all other taxes imposed by the State of Illinois 11 or any unit of local government in this State. 12 (d) Except as provided in Section 2a, the collection of 13 a tax based on gallonage of gasoline used for the propulsion 14 of any aircraft is prohibited on and after October 1, 1979. 15 (e) The collection of a tax, based on gallonage of all 16 products commonly or commercially known or sold as 1-K 17 kerosene, regardless of its classification or uses, is 18 prohibited (i) on and after July 1, 1992 until December 31, 19 1999, except when the 1-K kerosene is either: (1) delivered 20 into bulk storage facilities of a bulk user, or (2) delivered 21 directly into the fuel supply tanks of motor vehicles and 22 (ii) on and after January 1, 2000. Beginning on January 1, 23 2000, the collection of a tax, based on gallonage of all 24 products commonly or commercially known or sold as 1-K 25 kerosene, regardless of its classification or uses, is 26 prohibited except when the 1-K kerosene is delivered directly 27 into a storage tank that is located at a facility that has 28 withdrawal facilities that are readily accessible to and are 29 capable of dispensing 1-K kerosene into the fuel supply tanks 30 of motor vehicles. 31 Any person who sells or uses 1-K kerosene for use in 32 motor vehicles upon which the tax imposed by this Law has not 33 been paid shall be liable for any tax due on the sales or use 34 of 1-K kerosene. SB46 Enrolled -16- LRB093 02617 SJM 02627 b 1 (Source: P.A. 91-173, eff. 1-1-00.) 2 Section 99. Effective date. This Act takes effect upon 3 becoming law.