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91_HB4759
LRB9114389EGfg
1 AN ACT in relation to taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by changing
5 Section 3-10 as follows:
6 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
7 Sec. 3-10. Rate of tax. Unless otherwise provided in
8 this Section, the tax imposed by this Act is at the rate of
9 6.25% of either the selling price or the fair market value,
10 if any, of the tangible personal property. In all cases
11 where property functionally used or consumed is the same as
12 the property that was purchased at retail, then the tax is
13 imposed on the selling price of the property. In all cases
14 where property functionally used or consumed is a by-product
15 or waste product that has been refined, manufactured, or
16 produced from property purchased at retail, then the tax is
17 imposed on the lower of the fair market value, if any, of the
18 specific property so used in this State or on the selling
19 price of the property purchased at retail. For purposes of
20 this Section "fair market value" means the price at which
21 property would change hands between a willing buyer and a
22 willing seller, neither being under any compulsion to buy or
23 sell and both having reasonable knowledge of the relevant
24 facts. The fair market value shall be established by
25 Illinois sales by the taxpayer of the same property as that
26 functionally used or consumed, or if there are no such sales
27 by the taxpayer, then comparable sales or purchases of
28 property of like kind and character in Illinois.
29 Beginning on July 1, 2000 and through December 31, 2000,
30 with respect to motor fuel, as defined in Section 1.1 of the
31 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40
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1 of this the Use Tax Act, the tax is imposed at the rate of
2 1.25%.
3 Beginning on July 1, 2001, with respect to motor fuel, as
4 defined in Section 1.1 of the Motor Fuel Tax Law, other than
5 gasohol, as defined in Section 3-40 of this Act, the tax
6 imposed by this Act shall be calculated on an amount equal to
7 the selling price less all federal, State, and local taxes
8 otherwise included in the selling price. With respect to
9 gasohol, the tax imposed by this Act applies to 70% of the
10 proceeds of sales made on or after January 1, 1990, and
11 before July 1, 2001; to 70% of an amount equal to the selling
12 price less all federal, State, and local taxes otherwise
13 included in the selling price, with respect to the proceeds
14 of sales made on or after July 1, 2001 and before July 1,
15 2003;, and to 100% of an amount equal to the selling price
16 less all federal, State, and local taxes otherwise included
17 in the selling price, with respect to the proceeds of sales
18 made thereafter. For the purposes of this paragraph, the
19 term "all federal, State, and local taxes" includes, without
20 limitation, taxes imposed under Sections 2 and 2A of the
21 Motor Fuel Tax Law, fees imposed under Section 310 of the
22 Environmental Impact Fee Law, taxes imposed under Section
23 4081(a) of the Internal Revenue Code, and taxes imposed by
24 units of local government.
25 With respect to food for human consumption that is to be
26 consumed off the premises where it is sold (other than
27 alcoholic beverages, soft drinks, and food that has been
28 prepared for immediate consumption) and prescription and
29 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, the tax is imposed at the rate of 1%. For the purposes
34 of this Section, the term "soft drinks" means any complete,
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1 finished, ready-to-use, non-alcoholic drink, whether
2 carbonated or not, including but not limited to soda water,
3 cola, fruit juice, vegetable juice, carbonated water, and all
4 other preparations commonly known as soft drinks of whatever
5 kind or description that are contained in any closed or
6 sealed bottle, can, carton, or container, regardless of size.
7 "Soft drinks" does not include coffee, tea, non-carbonated
8 water, infant formula, milk or milk products as defined in
9 the Grade A Pasteurized Milk and Milk Products Act, or drinks
10 containing 50% or more natural fruit 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 purchased at retail from a
18 retailer is acquired outside Illinois and used outside
19 Illinois before being brought to Illinois for use here and is
20 taxable under this Act, the "selling price" on which the tax
21 is computed shall be reduced by an amount that represents a
22 reasonable allowance for depreciation for the period of prior
23 out-of-state use.
24 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
25 91-51, eff. 6-30-99; 91-872, eff. 7-1-00.)
26 Section 10. The Service Use Tax Act is amended by
27 changing Section 3-10 as follows:
28 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
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 of tangible personal property
32 transferred as an incident to the sale of service, but, 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 of the property to
3 the serviceman.
4 Beginning on July 1, 2000 and through December 31, 2000,
5 with respect to motor fuel, as defined in Section 1.1 of the
6 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40
7 of the Use Tax Act, the tax is imposed at the rate of 1.25%.
8 Beginning on July 1, 2001, with respect to motor fuel, as
9 defined in Section 1.1 of the Motor Fuel Tax Law, other than
10 gasohol, as defined in Section 3-40 of the Use Tax Act, the
11 tax imposed by this Act shall be calculated on an amount
12 equal to the selling price less all federal, State, and local
13 taxes otherwise included in the selling price. With respect
14 to gasohol, as defined in the Use Tax Act, the tax imposed by
15 this Act applies to 70% of the selling price of property
16 transferred as an incident to the sale of service on or after
17 January 1, 1990, and before July 1, 2001; to 70% of an amount
18 equal to the selling price less all federal, State, and local
19 taxes otherwise included in the selling price, with respect
20 to gasohol transferred as an incident to the sale of service
21 on or after July 1, 2001 and before July 1, 2003;, and to
22 100% of an amount equal to the selling price less all
23 federal, State, and local taxes otherwise included in the
24 selling price, with respect to gasohol transferred as an
25 incident to the sale of service on or after July 1, 2003
26 thereafter. For the purposes of this paragraph, the term
27 "all federal, State, and local taxes" includes, without
28 limitation, taxes imposed under Sections 2 and 2A of the
29 Motor Fuel Tax Law, fees imposed under Section 310 of the
30 Environmental Impact Fee Law, taxes imposed under Section
31 4081(a) of the Internal Revenue Code, and taxes imposed by
32 units of local government.
33 At the election of any registered serviceman made for
34 each fiscal year, sales of service in which the aggregate
-5- LRB9114389EGfg
1 annual cost price of tangible personal property transferred
2 as an incident to the sales of service is less than 35%, or
3 75% in the case of servicemen transferring prescription drugs
4 or servicemen engaged in graphic arts production, of the
5 aggregate annual total gross receipts from all sales of
6 service, the tax imposed by this Act shall be based on the
7 serviceman's cost price of the tangible personal property
8 transferred as an incident to the sale of those services.
9 The tax shall be imposed at the rate of 1% on food
10 prepared for immediate consumption and transferred incident
11 to a sale of service subject to this Act or the Service
12 Occupation Tax Act by an entity licensed under the Hospital
13 Licensing Act, the Nursing Home Care Act, or the Child Care
14 Act of 1969. The tax shall also be imposed at the rate of 1%
15 on food for human consumption that is to be consumed off the
16 premises where it is sold (other than alcoholic beverages,
17 soft drinks, and food that has been prepared for immediate
18 consumption and is not otherwise included in this paragraph)
19 and prescription and nonprescription medicines, drugs,
20 medical appliances, modifications to a motor vehicle for the
21 purpose of rendering it usable by a disabled person, and
22 insulin, urine testing materials, syringes, and needles used
23 by diabetics, for human use. For the purposes of this
24 Section, the term "soft drinks" means any complete, finished,
25 ready-to-use, non-alcoholic drink, whether carbonated or not,
26 including but not limited to soda water, cola, fruit juice,
27 vegetable juice, carbonated water, and all other preparations
28 commonly known as soft drinks of whatever kind or description
29 that are contained in any closed or sealed bottle, can,
30 carton, or container, regardless of size. "Soft drinks" does
31 not include coffee, tea, non-carbonated water, infant
32 formula, milk or milk products as defined in the Grade A
33 Pasteurized Milk and Milk Products Act, or drinks containing
34 50% or more natural fruit or vegetable juice.
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1 Notwithstanding any other provisions of this Act, "food
2 for human consumption that is to be consumed off the premises
3 where it is sold" includes all food sold through a vending
4 machine, except soft drinks and food products that are
5 dispensed hot from a vending machine, regardless of the
6 location of the vending machine.
7 If the property that is acquired from a serviceman is
8 acquired outside Illinois and used outside Illinois before
9 being brought to Illinois for use here and is taxable under
10 this Act, the "selling price" on which the tax is computed
11 shall be reduced by an amount that represents a reasonable
12 allowance for depreciation for the period of prior
13 out-of-state use.
14 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
15 91-51, eff. 6-30-99; 91-541, eff. 8-13-99; 91-872, eff.
16 7-1-00.)
17 Section 15. The Service Occupation Tax Act is amended by
18 changing Section 3-10 as follows:
19 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
20 Sec. 3-10. Rate of tax. Unless otherwise provided in
21 this Section, the tax imposed by this Act is at the rate of
22 6.25% of the "selling price", as defined in Section 2 of the
23 Service Use Tax Act, of the tangible personal property. For
24 the purpose of computing this tax, in no event shall the
25 "selling price" be less than the cost price to the serviceman
26 of the tangible personal property transferred. The selling
27 price of each item of tangible personal property transferred
28 as an incident of a sale of service may be shown as a
29 distinct and separate item on the serviceman's billing to the
30 service customer. If the selling price is not so shown, the
31 selling price of the tangible personal property is deemed to
32 be 50% of the serviceman's entire billing to the service
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1 customer. When, however, a serviceman contracts to design,
2 develop, and produce special order machinery or equipment,
3 the tax imposed by this Act shall be based on the
4 serviceman's cost price of the tangible personal property
5 transferred incident to the completion of the contract.
6 Beginning on July 1, 2000 and through December 31, 2000,
7 with respect to motor fuel, as defined in Section 1.1 of the
8 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40
9 of the Use Tax Act, the tax is imposed at the rate of 1.25%.
10 Beginning on July 1, 2001, with respect to motor fuel, as
11 defined in Section 1.1 of the Motor Fuel Tax Law, other than
12 gasohol, as defined in Section 3-40 of the Use Tax Act, the
13 tax imposed by this Act shall be calculated on an amount
14 equal to the selling price less all federal, State, and local
15 taxes otherwise included in the selling price. With respect
16 to gasohol, as defined in the Use Tax Act, the tax imposed by
17 this Act shall apply to 70% of the cost price of property
18 transferred as an incident to the sale of service on or after
19 January 1, 1990, and before July 1, 2001; to 70% of an amount
20 equal to the cost price less all federal, State, and local
21 taxes otherwise included in the cost price, with respect to
22 gasohol transferred as an incident to the sale of service on
23 or after July 1, 2001 and before July 1, 2003;, and to 100%
24 of an amount equal to the cost price less all federal, State,
25 and local taxes otherwise included in the cost price, with
26 respect to gasohol transferred as an incident to the sale of
27 service on or after July 1, 2003 thereafter. For the
28 purposes of this paragraph, the term "all federal, State, and
29 local taxes" includes, without limitation, taxes imposed
30 under Sections 2 and 2A of the Motor Fuel Tax Law, fees
31 imposed under Section 310 of the Environmental Impact Fee
32 Law, taxes imposed under Section 4081(a) of the Internal
33 Revenue Code, and taxes imposed by units of local government.
34 At the election of any registered serviceman made for
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1 each fiscal year, sales of service in which the aggregate
2 annual cost price of tangible personal property transferred
3 as an incident to the sales of service is less than 35%, or
4 75% in the case of servicemen transferring prescription drugs
5 or servicemen engaged in graphic arts production, of the
6 aggregate annual total gross receipts from all sales of
7 service, the tax imposed by this Act shall be based on the
8 serviceman's cost price of the tangible personal property
9 transferred incident to the sale of those services.
10 The tax shall be imposed at the rate of 1% on food
11 prepared for immediate consumption and transferred incident
12 to a sale of service subject to this Act or the Service
13 Occupation Tax Act by an entity licensed under the Hospital
14 Licensing Act, the Nursing Home Care Act, or the Child Care
15 Act of 1969. The tax shall also be imposed at the rate of 1%
16 on food for human consumption that is to be consumed off the
17 premises where it is sold (other than alcoholic beverages,
18 soft drinks, and food that has been prepared for immediate
19 consumption and is not otherwise included in this paragraph)
20 and prescription and nonprescription medicines, drugs,
21 medical appliances, modifications to a motor vehicle for the
22 purpose of rendering it usable by a disabled person, and
23 insulin, urine testing materials, syringes, and needles used
24 by diabetics, for human use. For the purposes of this
25 Section, the term "soft drinks" means any complete, finished,
26 ready-to-use, non-alcoholic drink, whether carbonated or not,
27 including but not limited to soda water, cola, fruit juice,
28 vegetable juice, carbonated water, and all other preparations
29 commonly known as soft drinks of whatever kind or description
30 that are contained in any closed or sealed can, carton, or
31 container, regardless of size. "Soft drinks" does not
32 include coffee, tea, non-carbonated water, infant formula,
33 milk or milk products as defined in the Grade A Pasteurized
34 Milk and Milk Products Act, or drinks containing 50% or more
-9- LRB9114389EGfg
1 natural fruit or vegetable juice.
2 Notwithstanding any other provisions of this Act, "food
3 for human consumption that is to be consumed off the premises
4 where it is sold" includes all food sold through a vending
5 machine, except soft drinks and food products that are
6 dispensed hot from a vending machine, regardless of the
7 location of the vending machine.
8 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
9 91-51, 6-30-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00.)
10 Section 20. The Retailers' Occupation Tax Act is amended
11 by changing Section 2-10 as follows:
12 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
13 Sec. 2-10. Rate of tax. Unless otherwise provided in
14 this Section, the tax imposed by this Act is at the rate of
15 6.25% of gross receipts from sales of tangible personal
16 property made in the course of business.
17 Beginning on July 1, 2000 and through December 31, 2000,
18 with respect to motor fuel, as defined in Section 1.1 of the
19 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40
20 of the Use Tax Act, the tax is imposed at the rate of 1.25%.
21 Within 14 days after the effective date of this
22 amendatory Act of the 91st General Assembly, each retailer of
23 motor fuel and gasohol shall cause the following notice to be
24 posted in a prominently visible place on each retail
25 dispensing device that is used to dispense motor fuel or
26 gasohol in the State of Illinois: "As of July 1, 2000, the
27 State of Illinois has eliminated the State's share of sales
28 tax on motor fuel and gasohol through December 31, 2000. The
29 price on this pump should reflect the elimination of the
30 tax." The notice shall be printed in bold print on a sign
31 that is no smaller than 4 inches by 8 inches. The sign shall
32 be clearly visible to customers. Any retailer who fails to
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1 post or maintain a required sign through December 31, 2000 is
2 guilty of a petty offense for which the fine shall be $500
3 per day per each retail premises where a violation occurs.
4 Beginning on July 1, 2001, with respect to motor fuel, as
5 defined in Section 1.1 of the Motor Fuel Tax Law, other than
6 gasohol, as defined in Section 3-40 of the Use Tax Act, the
7 tax imposed by this Act shall be calculated on an amount
8 equal to the selling price less all federal, State, and local
9 taxes otherwise included in the selling price. With respect
10 to gasohol, as defined in the Use Tax Act, the tax imposed by
11 this Act applies to 70% of the proceeds of sales made on or
12 after January 1, 1990, and before July 1, 2001; to 70% of an
13 amount equal to the selling price less all federal, State,
14 and local taxes otherwise included in the selling price, with
15 respect to the proceeds of sales made on or after July 1,
16 2001 and before July 1, 2003;, and to 100% of an amount equal
17 to the selling price less all federal, State, and local taxes
18 otherwise included in the selling price, with respect to the
19 proceeds of sales made thereafter. For the purposes of this
20 paragraph, the term "all federal, State, and local taxes"
21 includes, without limitation, taxes imposed under Sections 2
22 and 2A of the Motor Fuel Tax Law, fees imposed under Section
23 310 of the Environmental Impact Fee Law, taxes imposed under
24 Section 4081(a) of the Internal Revenue Code, and taxes
25 imposed by units of local government.
26 With respect to food for human consumption that is to be
27 consumed off the premises where it is sold (other than
28 alcoholic beverages, soft drinks, and food that has been
29 prepared for immediate consumption) and prescription and
30 nonprescription medicines, drugs, medical appliances,
31 modifications to a motor vehicle for the purpose of rendering
32 it usable by a disabled person, and insulin, urine testing
33 materials, syringes, and needles used by diabetics, for human
34 use, the tax is imposed at the rate of 1%. For the purposes
-11- LRB9114389EGfg
1 of this Section, the term "soft drinks" means any complete,
2 finished, ready-to-use, non-alcoholic drink, whether
3 carbonated or not, including but not limited to soda water,
4 cola, fruit juice, vegetable juice, carbonated water, and all
5 other preparations commonly known as soft drinks of whatever
6 kind or description that are contained in any closed or
7 sealed bottle, can, carton, or container, regardless of size.
8 "Soft drinks" does not include coffee, tea, non-carbonated
9 water, infant formula, milk or milk products as defined in
10 the Grade A Pasteurized Milk and Milk Products Act, or drinks
11 containing 50% or more natural fruit or vegetable juice.
12 Notwithstanding any other provisions of this Act, "food
13 for human consumption that is to be consumed off the premises
14 where it is sold" includes all food sold through a vending
15 machine, except soft drinks and food products that are
16 dispensed hot from a vending machine, regardless of the
17 location of the vending machine.
18 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
19 91-51, eff. 6-30-99; 91-872, eff. 7-1-00.)
20 Section 99. Effective date. This Act takes effect July
21 1, 2001.