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90_HB2950ham001
LRB9008806KDksam01
1 AMENDMENT TO HOUSE BILL 2950
2 AMENDMENT NO. . Amend House Bill 2950 by replacing
3 the title with the following:
4 "AN ACT in relation to taxes."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The Use Tax Act is amended by changing
8 Section 3-10 as 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
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1 price of the property purchased at retail. For purposes of
2 this Section "fair market value" means the price at which
3 property would change hands between a willing buyer and a
4 willing seller, neither being under any compulsion to buy or
5 sell and both having reasonable knowledge of the relevant
6 facts. The fair market value shall be established by Illinois
7 sales by the taxpayer of the same property as that
8 functionally used or consumed, or if there are no such sales
9 by the taxpayer, then comparable sales or purchases of
10 property of like kind and character in Illinois.
11 With respect to gasohol, the tax imposed by this Act
12 applies to 70% of the proceeds of sales made on or after
13 January 1, 1990, and before July 1, 2003 1999, and to 100% of
14 the proceeds of sales made thereafter, except that from July
15 1, 1997 to July 1, 1999, the rate shall be 85% for gasohol
16 sold in this State during the 12 months beginning July 1
17 following any calendar year for which the Department has
18 determined that the percentages in Section 10 of the Gasohol
19 Fuels Tax Abatement Act have not been met.
20 With respect to food for human consumption that is to be
21 consumed off the premises where it is sold (other than
22 alcoholic beverages, soft drinks, and food that has been
23 prepared for immediate consumption) and prescription and
24 nonprescription medicines, drugs, medical appliances,
25 modifications to a motor vehicle for the purpose of rendering
26 it usable by a disabled person, and insulin, urine testing
27 materials, syringes, and needles used by diabetics, for human
28 use, the tax is imposed at the rate of 1%. For the purposes
29 of this Section, the term "soft drinks" means any complete,
30 finished, ready-to-use, non-alcoholic drink, whether
31 carbonated or not, including but not limited to soda water,
32 cola, fruit juice, vegetable juice, carbonated water, and all
33 other preparations commonly known as soft drinks of whatever
34 kind or description that are contained in any closed or
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1 sealed bottle, can, carton, or container, regardless of size.
2 "Soft drinks" does not include coffee, tea, non-carbonated
3 water, infant formula, milk or milk products as defined in
4 the Grade A Pasteurized Milk and Milk Products Act, or drinks
5 containing 50% or more 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 If the property that is purchased at retail from a
13 retailer is acquired outside Illinois and used outside
14 Illinois before being brought to Illinois for use here and is
15 taxable under this Act, the "selling price" on which the tax
16 is computed shall be reduced by an amount that represents a
17 reasonable allowance for depreciation for the period of prior
18 out-of-state use.
19 (Source: P.A. 88-45; 89-359, eff. 8-17-95; 89-420, eff.
20 6-1-96; 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
21 Section 10. The Service Use Tax Act is amended by
22 changing Section 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
25 this Section, the tax imposed by this Act is at the rate of
26 6.25% of the selling price of tangible personal property
27 transferred as an incident to the sale of service, but, for
28 the purpose of computing this tax, in no event shall the
29 selling price be less than the cost price of the property to
30 the serviceman.
31 With respect to gasohol, as defined in the Use Tax Act,
32 the tax imposed by this Act applies to 70% of the selling
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1 price of property transferred as an incident to the sale of
2 service on or after January 1, 1990, and before July 1, 2003
3 1999, and to 100% of the selling price thereafter, except
4 that from July 1, 1997 to July 1, 1999, the rate shall be 85%
5 for gasohol sold in this State during the 12 months beginning
6 July 1 following any calendar year for which the Department
7 has determined that the percentages in Section 10 of the
8 Gasohol Fuels Tax Abatement Act have not been met.
9 At the election of any registered serviceman made for
10 each fiscal year, sales of service in which the aggregate
11 annual cost price of tangible personal property transferred
12 as an incident to the sales of service is less than 35%, or
13 75% in the case of servicemen transferring prescription drugs
14 or servicemen engaged in graphic arts production, of the
15 aggregate annual total gross receipts from all sales of
16 service, the tax imposed by this Act shall be based on the
17 serviceman's cost price of the tangible personal property
18 transferred as an incident to the sale of those services.
19 The tax shall be imposed at the rate of 1% on food
20 prepared for immediate consumption and transferred incident
21 to a sale of service subject to this Act or the Service
22 Occupation Tax Act by an entity licensed under the Hospital
23 Licensing Act or the Nursing Home Care Act. The tax shall
24 also be imposed at the rate of 1% on food for human
25 consumption that is to be consumed off the premises where it
26 is sold (other than alcoholic beverages, soft drinks, and
27 food that has been prepared for immediate consumption and is
28 not otherwise included in this paragraph) and prescription
29 and nonprescription medicines, drugs, medical appliances,
30 modifications to a motor vehicle for the purpose of rendering
31 it usable by a disabled person, and insulin, urine testing
32 materials, syringes, and needles used by diabetics, for human
33 use. For the purposes of this Section, the term "soft drinks"
34 means any complete, finished, ready-to-use, non-alcoholic
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1 drink, whether carbonated or not, including but not limited
2 to soda water, cola, fruit juice, vegetable juice, carbonated
3 water, and all other preparations commonly known as soft
4 drinks of whatever kind or description that are contained in
5 any closed or sealed bottle, can, carton, or container,
6 regardless of size. "Soft drinks" does not include coffee,
7 tea, non-carbonated water, infant formula, milk or milk
8 products as defined in the Grade A Pasteurized Milk and Milk
9 Products Act, or drinks containing 50% or more natural fruit
10 or vegetable juice.
11 Notwithstanding any other provisions of this Act, "food
12 for human consumption that is to be consumed off the premises
13 where it is sold" includes all food sold through a vending
14 machine, except soft drinks and food products that are
15 dispensed hot from a vending machine, regardless of the
16 location of the vending machine.
17 If the property that is acquired from a serviceman is
18 acquired outside Illinois and used outside Illinois before
19 being brought to Illinois for use here and is taxable under
20 this Act, the "selling price" on which the tax is computed
21 shall be reduced by an amount that represents a reasonable
22 allowance for depreciation for the period of prior
23 out-of-state use.
24 (Source: P.A. 88-45; 89-359, eff. 8-17-95; 89-420, eff.
25 6-1-96; 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
26 Section 15. The Service Occupation Tax Act is amended by
27 changing Section 3-10 as follows:
28 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
29 Sec. 3-10. Rate of tax. Unless otherwise provided in
30 this Section, the tax imposed by this Act is at the rate of
31 6.25% of the "selling price", as defined in Section 2 of the
32 Service Use Tax Act, of the tangible personal property. For
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1 the purpose of computing this tax, in no event shall the
2 "selling price" be less than the cost price to the serviceman
3 of the tangible personal property transferred. The selling
4 price of each item of tangible personal property transferred
5 as an incident of a sale of service may be shown as a
6 distinct and separate item on the serviceman's billing to the
7 service customer. If the selling price is not so shown, the
8 selling price of the tangible personal property is deemed to
9 be 50% of the serviceman's entire billing to the service
10 customer. When, however, a serviceman contracts to design,
11 develop, and produce special order machinery or equipment,
12 the tax imposed by this Act shall be based on the
13 serviceman's cost price of the tangible personal property
14 transferred incident to the completion of the contract.
15 With respect to gasohol, as defined in the Use Tax Act,
16 the tax imposed by this Act shall apply to 70% of the cost
17 price of property transferred as an incident to the sale of
18 service on or after January 1, 1990, and before July 1, 2003
19 1999, and to 100% of the cost price thereafter, except that
20 from July 1, 1997 to July 1, 1999, the rate shall be 85% for
21 gasohol sold in this State during the 12 months beginning
22 July 1 following any calendar year for which the Department
23 has determined that the percentages in Section 10 of the
24 Gasohol Fuels Tax Abatement Act have not been met.
25 At the election of any registered serviceman made for
26 each fiscal year, sales of service in which the aggregate
27 annual cost price of tangible personal property transferred
28 as an incident to the sales of service is less than 35%, or
29 75% in the case of servicemen transferring prescription drugs
30 or servicemen engaged in graphic arts production, of the
31 aggregate annual total gross receipts from all sales of
32 service, the tax imposed by this Act shall be based on the
33 serviceman's cost price of the tangible personal property
34 transferred incident to the sale of those services.
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1 The tax shall be imposed at the rate of 1% on food
2 prepared for immediate consumption and transferred incident
3 to a sale of service subject to this Act or the Service
4 Occupation Tax Act by an entity licensed under the Hospital
5 Licensing Act or the Nursing Home Care Act. The tax shall
6 also be imposed at the rate of 1% on food for human
7 consumption that is to be consumed off the premises where it
8 is sold (other than alcoholic beverages, soft drinks, and
9 food that has been prepared for immediate consumption and is
10 not otherwise included in this paragraph) and prescription
11 and nonprescription medicines, drugs, medical appliances,
12 modifications to a motor vehicle for the purpose of rendering
13 it usable by a disabled person, and insulin, urine testing
14 materials, syringes, and needles used by diabetics, for human
15 use. For the purposes of this Section, the term "soft
16 drinks" means any complete, finished, ready-to-use,
17 non-alcoholic drink, whether carbonated or not, including but
18 not limited to soda water, cola, fruit juice, vegetable
19 juice, carbonated water, and all other preparations commonly
20 known as soft drinks of whatever kind or description that are
21 contained in any closed or sealed can, carton, or container,
22 regardless of size. "Soft drinks" does not include coffee,
23 tea, non-carbonated water, infant formula, milk or milk
24 products as defined in the Grade A Pasteurized Milk and Milk
25 Products Act, or drinks containing 50% or more natural fruit
26 or vegetable juice.
27 Notwithstanding any other provisions of this Act, "food
28 for human consumption that is to be consumed off the premises
29 where it is sold" includes all food sold through a vending
30 machine, except soft drinks and food products that are
31 dispensed hot from a vending machine, regardless of the
32 location of the vending machine.
33 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
34 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
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1 Section 20. The Retailers' Occupation Tax Act is amended
2 by changing Section 2-10 as follows:
3 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
4 Sec. 2-10. Rate of tax. Unless otherwise provided in
5 this Section, the tax imposed by this Act is at the rate of
6 6.25% of gross receipts from sales of tangible personal
7 property made in the course of business.
8 With respect to gasohol, as defined in the Use Tax Act,
9 the tax imposed by this Act applies to 70% of the proceeds of
10 sales made on or after January 1, 1990, and before July 1,
11 2003 1999, and to 100% of the proceeds of sales made
12 thereafter, except that from July 1, 1997 to July 1, 1999,
13 the rate shall be 85% for gasohol sold in this State during
14 the 12 months beginning July 1 following any calendar year
15 for which the Department has determined that the percentages
16 in Section 10 of the Gasohol Fuels Tax Abatement Act have not
17 been met.
18 With respect to food for human consumption that is to be
19 consumed off the premises where it is sold (other than
20 alcoholic beverages, soft drinks, and food that has been
21 prepared for immediate consumption) and prescription and
22 nonprescription medicines, drugs, medical appliances,
23 modifications to a motor vehicle for the purpose of rendering
24 it usable by a disabled person, and insulin, urine testing
25 materials, syringes, and needles used by diabetics, for human
26 use, the tax is imposed at the rate of 1%. For the purposes
27 of this Section, the term "soft drinks" means any complete,
28 finished, ready-to-use, non-alcoholic drink, whether
29 carbonated or not, including but not limited to soda water,
30 cola, fruit juice, vegetable juice, carbonated water, and all
31 other preparations commonly known as soft drinks of whatever
32 kind or description that are contained in any closed or
33 sealed bottle, can, carton, or container, regardless of size.
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1 "Soft drinks" does not include coffee, tea, non-carbonated
2 water, infant formula, milk or milk products as defined in
3 the Grade A Pasteurized Milk and Milk Products Act, or drinks
4 containing 50% or more natural fruit or vegetable juice.
5 Notwithstanding any other provisions of this Act, "food
6 for human consumption that is to be consumed off the premises
7 where it is sold" includes all food sold through a vending
8 machine, except soft drinks and food products that are
9 dispensed hot from a vending machine, regardless of the
10 location of the vending machine.
11 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
12 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
13 (35 ILCS 125/Act rep.)
14 Section 25. The Gasohol Fuels Tax Abatement Act is
15 repealed.
16 Section 99. Effective date. This Act takes effect upon
17 becoming law.".