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91_SB0120
LRB9101565PTpk
1 AN ACT concerning gasohol.
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 Illinois
25 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 With respect to gasohol, the tax imposed by this Act
30 applies (i) to 70% of the proceeds of sales made on or after
31 January 1, 1990, and before July 1, 1999, (ii) to 50% of the
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1 proceeds of sales made on or after July 1, 1999, and before
2 July 1, 2003, and (iii) to 100% of the proceeds of sales made
3 thereafter.
4 With respect to food for human consumption that is to be
5 consumed off the premises where it is sold (other than
6 alcoholic beverages, soft drinks, and food that has been
7 prepared for immediate consumption) and prescription and
8 nonprescription medicines, drugs, medical appliances,
9 modifications to a motor vehicle for the purpose of rendering
10 it usable by a disabled person, and insulin, urine testing
11 materials, syringes, and needles used by diabetics, for human
12 use, the tax is imposed at the rate of 1%. For the purposes
13 of this Section, the term "soft drinks" means any complete,
14 finished, ready-to-use, non-alcoholic drink, whether
15 carbonated or not, including but not limited to soda water,
16 cola, fruit juice, vegetable juice, carbonated water, and all
17 other preparations commonly known as soft drinks of whatever
18 kind or description that are contained in any closed or
19 sealed bottle, can, carton, or container, regardless of size.
20 "Soft drinks" does not include coffee, tea, non-carbonated
21 water, infant formula, milk or milk products as defined in
22 the Grade A Pasteurized Milk and Milk Products Act, or drinks
23 containing 50% or more natural fruit or vegetable juice.
24 Notwithstanding any other provisions of this Act, "food
25 for human consumption that is to be consumed off the premises
26 where it is sold" includes all food sold through a vending
27 machine, except soft drinks and food products that are
28 dispensed hot from a vending machine, regardless of the
29 location of the vending machine.
30 If the property that is purchased at retail from a
31 retailer is acquired outside Illinois and used outside
32 Illinois before being brought to Illinois for use here and is
33 taxable under this Act, the "selling price" on which the tax
34 is computed shall be reduced by an amount that represents a
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1 reasonable allowance for depreciation for the period of prior
2 out-of-state use.
3 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
4 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
5 6-30-98; 90-606, eff. 6-30-98.)
6 Section 10. The Service Use Tax Act is amended by
7 changing Section 3-10 as follows:
8 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
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 of tangible personal property
12 transferred as an incident to the sale of service, but, for
13 the purpose of computing this tax, in no event shall the
14 selling price be less than the cost price of the property to
15 the serviceman.
16 With respect to gasohol, as defined in the Use Tax Act,
17 the tax imposed by this Act applies (i) to 70% of the selling
18 price of property transferred as an incident to the sale of
19 service on or after January 1, 1990, and before July 1, 1999,
20 (ii) to 50% of the selling price of property transferred as
21 an incident to the sale of service on or after July 1, 1999,
22 and before July 1, 2003, and (iii) to 100% of the selling
23 price thereafter.
24 At the election of any registered serviceman made for
25 each fiscal year, sales of service in which the aggregate
26 annual cost price of tangible personal property transferred
27 as an incident to the sales of service is less than 35%, or
28 75% in the case of servicemen transferring prescription drugs
29 or servicemen engaged in graphic arts production, of the
30 aggregate annual total gross receipts from all sales of
31 service, the tax imposed by this Act shall be based on the
32 serviceman's cost price of the tangible personal property
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1 transferred as an incident to the sale of those services.
2 The tax shall be imposed at the rate of 1% on food
3 prepared for immediate consumption and transferred incident
4 to a sale of service subject to this Act or the Service
5 Occupation Tax Act by an entity licensed under the Hospital
6 Licensing Act or the Nursing Home Care Act. The tax shall
7 also be imposed at the rate of 1% on food for human
8 consumption that is to be consumed off the premises where it
9 is sold (other than alcoholic beverages, soft drinks, and
10 food that has been prepared for immediate consumption and is
11 not otherwise included in this paragraph) and prescription
12 and nonprescription medicines, drugs, medical appliances,
13 modifications to a motor vehicle for the purpose of rendering
14 it usable by a disabled person, and insulin, urine testing
15 materials, syringes, and needles used by diabetics, for human
16 use. For the purposes of this Section, the term "soft drinks"
17 means any complete, finished, ready-to-use, non-alcoholic
18 drink, whether carbonated or not, including but not limited
19 to soda water, cola, fruit juice, vegetable juice, carbonated
20 water, and all other preparations commonly known as soft
21 drinks of whatever kind or description that are contained in
22 any closed or sealed bottle, can, carton, or container,
23 regardless of size. "Soft drinks" does not include coffee,
24 tea, non-carbonated water, infant formula, milk or milk
25 products as defined in the Grade A Pasteurized Milk and Milk
26 Products Act, or drinks containing 50% or more natural fruit
27 or vegetable juice.
28 Notwithstanding any other provisions of this Act, "food
29 for human consumption that is to be consumed off the premises
30 where it is sold" includes all food sold through a vending
31 machine, except soft drinks and food products that are
32 dispensed hot from a vending machine, regardless of the
33 location of the vending machine.
34 If the property that is acquired from a serviceman is
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1 acquired outside Illinois and used outside Illinois before
2 being brought to Illinois for use here and is taxable under
3 this Act, the "selling price" on which the tax is computed
4 shall be reduced by an amount that represents a reasonable
5 allowance for depreciation for the period of prior
6 out-of-state use.
7 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
8 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
9 6-30-98; 90-606, eff. 6-30-98.)
10 Section 15. The Service Occupation Tax Act is amended by
11 changing Section 3-10 as follows:
12 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
13 Sec. 3-10. 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 the "selling price", as defined in Section 2 of the
16 Service Use Tax Act, of the tangible personal property. For
17 the purpose of computing this tax, in no event shall the
18 "selling price" be less than the cost price to the serviceman
19 of the tangible personal property transferred. The selling
20 price of each item of tangible personal property transferred
21 as an incident of a sale of service may be shown as a
22 distinct and separate item on the serviceman's billing to the
23 service customer. If the selling price is not so shown, the
24 selling price of the tangible personal property is deemed to
25 be 50% of the serviceman's entire billing to the service
26 customer. When, however, a serviceman contracts to design,
27 develop, and produce special order machinery or equipment,
28 the tax imposed by this Act shall be based on the
29 serviceman's cost price of the tangible personal property
30 transferred incident to the completion of the contract.
31 With respect to gasohol, as defined in the Use Tax Act,
32 the tax imposed by this Act shall apply (i) to 70% of the
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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 1999, (ii) to 50% of the cost price of property transferred
4 as an incident to the sale of service on or after July 1,
5 1999, and before July 1, 2003, and (iii) to 100% of the cost
6 price thereafter.
7 At the election of any registered serviceman made for
8 each fiscal year, sales of service in which the aggregate
9 annual cost price of tangible personal property transferred
10 as an incident to the sales of service is less than 35%, or
11 75% in the case of servicemen transferring prescription drugs
12 or servicemen engaged in graphic arts production, of the
13 aggregate annual total gross receipts from all sales of
14 service, the tax imposed by this Act shall be based on the
15 serviceman's cost price of the tangible personal property
16 transferred incident to the sale of those services.
17 The tax shall be imposed at the rate of 1% on food
18 prepared for immediate consumption and transferred incident
19 to a sale of service subject to this Act or the Service
20 Occupation Tax Act by an entity licensed under the Hospital
21 Licensing Act or the Nursing Home Care Act. The tax shall
22 also be imposed at the rate of 1% on food for human
23 consumption that is to be consumed off the premises where it
24 is sold (other than alcoholic beverages, soft drinks, and
25 food that has been prepared for immediate consumption and is
26 not otherwise included in this paragraph) and prescription
27 and nonprescription medicines, drugs, medical appliances,
28 modifications to a motor vehicle for the purpose of rendering
29 it usable by a disabled person, and insulin, urine testing
30 materials, syringes, and needles used by diabetics, for human
31 use. For the purposes of this Section, the term "soft
32 drinks" means any complete, finished, ready-to-use,
33 non-alcoholic drink, whether carbonated or not, including but
34 not limited to soda water, cola, fruit juice, vegetable
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1 juice, carbonated water, and all other preparations commonly
2 known as soft drinks of whatever kind or description that are
3 contained in any closed or sealed can, carton, or container,
4 regardless of size. "Soft drinks" does not include coffee,
5 tea, non-carbonated water, infant formula, milk or milk
6 products as defined in the Grade A Pasteurized Milk and Milk
7 Products Act, or drinks containing 50% or more natural fruit
8 or vegetable juice.
9 Notwithstanding any other provisions of this Act, "food
10 for human consumption that is to be consumed off the premises
11 where it is sold" includes all food sold through a vending
12 machine, except soft drinks and food products that are
13 dispensed hot from a vending machine, regardless of the
14 location of the vending machine.
15 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
16 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
17 6-30-98; 90-606, eff. 6-30-98.)
18 Section 20. The Retailers' Occupation Tax Act is amended
19 by changing Section 2-10 as follows:
20 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
21 Sec. 2-10. Rate of tax. Unless otherwise provided in
22 this Section, the tax imposed by this Act is at the rate of
23 6.25% of gross receipts from sales of tangible personal
24 property made in the course of business.
25 With respect to gasohol, as defined in the Use Tax Act,
26 the tax imposed by this Act applies (i) to 70% of the
27 proceeds of sales made on or after January 1, 1990, and
28 before July 1, 1999, (ii) to 50% of the proceeds of sales
29 made on or after July 1, 1999, and before July 1, 2003, and
30 (iii) to 100% of the proceeds of sales made thereafter.
31 With respect to food for human consumption that is to be
32 consumed off the premises where it is sold (other than
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1 alcoholic beverages, soft drinks, and food that has been
2 prepared for immediate consumption) and prescription and
3 nonprescription medicines, drugs, medical appliances,
4 modifications to a motor vehicle for the purpose of rendering
5 it usable by a disabled person, and insulin, urine testing
6 materials, syringes, and needles used by diabetics, for human
7 use, the tax is imposed at the rate of 1%. For the purposes
8 of this Section, the term "soft drinks" means any complete,
9 finished, ready-to-use, non-alcoholic drink, whether
10 carbonated or not, including but not limited to soda water,
11 cola, fruit juice, vegetable juice, carbonated water, and all
12 other preparations commonly known as soft drinks of whatever
13 kind or description that are contained in any closed or
14 sealed bottle, can, carton, or container, regardless of size.
15 "Soft drinks" does not include coffee, tea, non-carbonated
16 water, infant formula, milk or milk products as defined in
17 the Grade A Pasteurized Milk and Milk Products Act, or drinks
18 containing 50% or more natural fruit or vegetable juice.
19 Notwithstanding any other provisions of this Act, "food
20 for human consumption that is to be consumed off the premises
21 where it is sold" includes all food sold through a vending
22 machine, except soft drinks and food products that are
23 dispensed hot from a vending machine, regardless of the
24 location of the vending machine.
25 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
26 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
27 6-30-98; 90-606, eff. 6-30-98.)
28 Section 90. The State Mandates Act is amended by adding
29 Section 8.23 as follows:
30 (30 ILCS 805/8.23 new)
31 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
32 and 8 of this Act, no reimbursement by the State is required
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1 for the implementation of any mandate created by this
2 amendatory Act of the 91st General Assembly.
3 Section 99. Effective date. This Act takes effect upon
4 becoming law.