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| [ Introduced ] | [ Senate Amendment 002 ] |
91_SB1867eng SB1867 Engrossed LRB9113285SMdv 1 AN ACT concerning taxation. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The State Finance Act is amended by changing 5 Sections 6z-18 and 6z-20 as follows: 6 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18) 7 Sec. 6z-18. A portion of the money paid into the Local 8 Government Tax Fund from sales of food for human consumption 9 which is to be consumed off the premises where it is sold 10 (other than alcoholic beverages, soft drinks and food which 11 has been prepared for immediate consumption) and prescription 12 and nonprescription medicines, drugs, medical appliances and 13 insulin, urine testing materials, syringes and needles used 14 by diabetics, which occurred in municipalities, shall be 15 distributed to each municipality based upon the sales which 16 occurred in that municipality. The remainder shall be 17 distributed to each county based upon the sales which 18 occurred in the unincorporated area of that county. 19 A portion of the money paid into the Local Government Tax 20 Fund from the 6.25% general use tax rate on the selling price 21 of tangible personal property which is purchased outside 22 Illinois at retail from a retailer and which is titled or 23 registered by any agency of this State's government shall be 24 distributed to municipalities as provided in this paragraph. 25 Each municipality shall receive the amount attributable to 26 sales for which Illinois addresses for titling or 27 registration purposes are given as being in such 28 municipality. The remainder of the money paid into the Local 29 Government Tax Fund from such sales shall be distributed to 30 counties. Each county shall receive the amount attributable 31 to sales for which Illinois addresses for titling or SB1867 Engrossed -2- LRB9113285SMdv 1 registration purposes are given as being located in the 2 unincorporated area of such county. 3 A portion of the money paid into the Local Government Tax 4 Fund from the 6.25% general rate (and, beginning July 1, 2000 5and through December 31, 2000, the 1.25% rate on motor fuel 6 and gasohol) on sales subject to taxation under the 7 Retailers' Occupation Tax Act and the Service Occupation Tax 8 Act, which occurred in municipalities, shall be distributed 9 to each municipality, based upon the sales which occurred in 10 that municipality. The remainder shall be distributed to each 11 county, based upon the sales which occurred in the 12 unincorporated area of such county. 13 For the purpose of determining allocation to the local 14 government unit, a retail sale by a producer of coal or other 15 mineral mined in Illinois is a sale at retail at the place 16 where the coal or other mineral mined in Illinois is 17 extracted from the earth. This paragraph does not apply to 18 coal or other mineral when it is delivered or shipped by the 19 seller to the purchaser at a point outside Illinois so that 20 the sale is exempt under the United States Constitution as a 21 sale in interstate or foreign commerce. 22 Whenever the Department determines that a refund of money 23 paid into the Local Government Tax Fund should be made to a 24 claimant instead of issuing a credit memorandum, the 25 Department shall notify the State Comptroller, who shall 26 cause the order to be drawn for the amount specified, and to 27 the person named, in such notification from the Department. 28 Such refund shall be paid by the State Treasurer out of the 29 Local Government Tax Fund. 30 On or before the 25th day of each calendar month, the 31 Department shall prepare and certify to the Comptroller the 32 disbursement of stated sums of money to named municipalities 33 and counties, the municipalities and counties to be those 34 entitled to distribution of taxes or penalties paid to the SB1867 Engrossed -3- LRB9113285SMdv 1 Department during the second preceding calendar month. The 2 amount to be paid to each municipality or county shall be the 3 amount (not including credit memoranda) collected during the 4 second preceding calendar month by the Department and paid 5 into the Local Government Tax Fund, plus an amount the 6 Department determines is necessary to offset any amounts 7 which were erroneously paid to a different taxing body, and 8 not including an amount equal to the amount of refunds made 9 during the second preceding calendar month by the Department, 10 and not including any amount which the Department determines 11 is necessary to offset any amounts which are payable to a 12 different taxing body but were erroneously paid to the 13 municipality or county. Within 10 days after receipt, by the 14 Comptroller, of the disbursement certification to the 15 municipalities and counties, provided for in this Section to 16 be given to the Comptroller by the Department, the 17 Comptroller shall cause the orders to be drawn for the 18 respective amounts in accordance with the directions 19 contained in such certification. 20 When certifying the amount of monthly disbursement to a 21 municipality or county under this Section, the Department 22 shall increase or decrease that amount by an amount necessary 23 to offset any misallocation of previous disbursements. The 24 offset amount shall be the amount erroneously disbursed 25 within the 6 months preceding the time a misallocation is 26 discovered. 27 The provisions directing the distributions from the 28 special fund in the State Treasury provided for in this 29 Section shall constitute an irrevocable and continuing 30 appropriation of all amounts as provided herein. The State 31 Treasurer and State Comptroller are hereby authorized to make 32 distributions as provided in this Section. 33 In construing any development, redevelopment, annexation, 34 preannexation or other lawful agreement in effect prior to SB1867 Engrossed -4- LRB9113285SMdv 1 September 1, 1990, which describes or refers to receipts from 2 a county or municipal retailers' occupation tax, use tax or 3 service occupation tax which now cannot be imposed, such 4 description or reference shall be deemed to include the 5 replacement revenue for such abolished taxes, distributed 6 from the Local Government Tax Fund. 7 (Source: P.A. 90-491, eff. 1-1-98; 91-51, eff. 6-30-99; 8 91-872, eff. 7-1-00.) 9 (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20) 10 Sec. 6z-20. Of the money received from the 6.25% general 11 rate (and, beginning July 1, 2000and through December 31,122000, the 1.25% rate on motor fuel and gasohol) on sales 13 subject to taxation under the Retailers' Occupation Tax Act 14 and Service Occupation Tax Act and paid into the County and 15 Mass Transit District Fund, distribution to the Regional 16 Transportation Authority tax fund, created pursuant to 17 Section 4.03 of the Regional Transportation Authority Act, 18 for deposit therein shall be made based upon the retail sales 19 occurring in a county having more than 3,000,000 inhabitants. 20 The remainder shall be distributed to each county having 21 3,000,000 or fewer inhabitants based upon the retail sales 22 occurring in each such county. 23 For the purpose of determining allocation to the local 24 government unit, a retail sale by a producer of coal or other 25 mineral mined in Illinois is a sale at retail at the place 26 where the coal or other mineral mined in Illinois is 27 extracted from the earth. This paragraph does not apply to 28 coal or other mineral when it is delivered or shipped by the 29 seller to the purchaser at a point outside Illinois so that 30 the sale is exempt under the United States Constitution as a 31 sale in interstate or foreign commerce. 32 Of the money received from the 6.25% general use tax rate 33 on tangible personal property which is purchased outside SB1867 Engrossed -5- LRB9113285SMdv 1 Illinois at retail from a retailer and which is titled or 2 registered by any agency of this State's government and paid 3 into the County and Mass Transit District Fund, the amount 4 for which Illinois addresses for titling or registration 5 purposes are given as being in each county having more than 6 3,000,000 inhabitants shall be distributed into the Regional 7 Transportation Authority tax fund, created pursuant to 8 Section 4.03 of the Regional Transportation Authority Act. 9 The remainder of the money paid from such sales shall be 10 distributed to each county based on sales for which Illinois 11 addresses for titling or registration purposes are given as 12 being located in the county. Any money paid into the 13 Regional Transportation Authority Occupation and Use Tax 14 Replacement Fund from the County and Mass Transit District 15 Fund prior to January 14, 1991, which has not been paid to 16 the Authority prior to that date, shall be transferred to the 17 Regional Transportation Authority tax fund. 18 Whenever the Department determines that a refund of money 19 paid into the County and Mass Transit District Fund should be 20 made to a claimant instead of issuing a credit memorandum, 21 the Department shall notify the State Comptroller, who shall 22 cause the order to be drawn for the amount specified, and to 23 the person named, in such notification from the Department. 24 Such refund shall be paid by the State Treasurer out of the 25 County and Mass Transit District Fund. 26 On or before the 25th day of each calendar month, the 27 Department shall prepare and certify to the Comptroller the 28 disbursement of stated sums of money to the Regional 29 Transportation Authority and to named counties, the counties 30 to be those entitled to distribution, as hereinabove 31 provided, of taxes or penalties paid to the Department during 32 the second preceding calendar month. The amount to be paid 33 to the Regional Transportation Authority and each county 34 having 3,000,000 or fewer inhabitants shall be the amount SB1867 Engrossed -6- LRB9113285SMdv 1 (not including credit memoranda) collected during the second 2 preceding calendar month by the Department and paid into the 3 County and Mass Transit District Fund, plus an amount the 4 Department determines is necessary to offset any amounts 5 which were erroneously paid to a different taxing body, and 6 not including an amount equal to the amount of refunds made 7 during the second preceding calendar month by the Department, 8 and not including any amount which the Department determines 9 is necessary to offset any amounts which were payable to a 10 different taxing body but were erroneously paid to the 11 Regional Transportation Authority or county. Within 10 days 12 after receipt, by the Comptroller, of the disbursement 13 certification to the Regional Transportation Authority and 14 counties, provided for in this Section to be given to the 15 Comptroller by the Department, the Comptroller shall cause 16 the orders to be drawn for the respective amounts in 17 accordance with the directions contained in such 18 certification. 19 When certifying the amount of a monthly disbursement to 20 the Regional Transportation Authority or to a county under 21 this Section, the Department shall increase or decrease that 22 amount by an amount necessary to offset any misallocation of 23 previous disbursements. The offset amount shall be the 24 amount erroneously disbursed within the 6 months preceding 25 the time a misallocation is discovered. 26 The provisions directing the distributions from the 27 special fund in the State Treasury provided for in this 28 Section and from the Regional Transportation Authority tax 29 fund created by Section 4.03 of the Regional Transportation 30 Authority Act shall constitute an irrevocable and continuing 31 appropriation of all amounts as provided herein. The State 32 Treasurer and State Comptroller are hereby authorized to make 33 distributions as provided in this Section. 34 In construing any development, redevelopment, annexation, SB1867 Engrossed -7- LRB9113285SMdv 1 preannexation or other lawful agreement in effect prior to 2 September 1, 1990, which describes or refers to receipts from 3 a county or municipal retailers' occupation tax, use tax or 4 service occupation tax which now cannot be imposed, such 5 description or reference shall be deemed to include the 6 replacement revenue for such abolished taxes, distributed 7 from the County and Mass Transit District Fund or Local 8 Government Distributive Fund, as the case may be. 9 (Source: P.A. 90-491, eff. 1-1-98; 91-872, eff. 7-1-00.) 10 Section 10. The Use Tax Act is amended by changing 11 Section 3-10 as follows: 12 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10) 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 either the selling price or the fair market value, 16 if any, of the tangible personal property. In all cases 17 where property functionally used or consumed is the same as 18 the property that was purchased at retail, then the tax is 19 imposed on the selling price of the property. In all cases 20 where property functionally used or consumed is a by-product 21 or waste product that has been refined, manufactured, or 22 produced from property purchased at retail, then the tax is 23 imposed on the lower of the fair market value, if any, of the 24 specific property so used in this State or on the selling 25 price of the property purchased at retail. For purposes of 26 this Section "fair market value" means the price at which 27 property would change hands between a willing buyer and a 28 willing seller, neither being under any compulsion to buy or 29 sell and both having reasonable knowledge of the relevant 30 facts. The fair market value shall be established by Illinois 31 sales by the taxpayer of the same property as that 32 functionally used or consumed, or if there are no such sales SB1867 Engrossed -8- LRB9113285SMdv 1 by the taxpayer, then comparable sales or purchases of 2 property of like kind and character in Illinois. 3 Beginning on July 1, 2000and through December 31, 2000, 4 with respect to motor fuel, as defined in Section 1.1 of the 5 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 6 of the Use Tax Act, the tax is imposed at the rate of 1.25%. 7 The changes made by this amendatory Act of the 91st General 8 Assembly are exempt from the provisions of Section 3-90. 9 With respect to gasohol, the tax imposed by this Act 10 applies to 70% of the proceeds of sales made on or after 11 January 1, 1990, and before July 1, 2003, and to 100% of the 12 proceeds of sales made thereafter. 13 With respect to food for human consumption that is to be 14 consumed off the premises where it is sold (other than 15 alcoholic beverages, soft drinks, and food that has been 16 prepared for immediate consumption) and prescription and 17 nonprescription medicines, drugs, medical appliances, 18 modifications to a motor vehicle for the purpose of rendering 19 it usable by a disabled person, and insulin, urine testing 20 materials, syringes, and needles used by diabetics, for human 21 use, the tax is imposed at the rate of 1%. For the purposes 22 of this Section, the term "soft drinks" means any complete, 23 finished, ready-to-use, non-alcoholic drink, whether 24 carbonated or not, including but not limited to soda water, 25 cola, fruit juice, vegetable juice, carbonated water, and all 26 other preparations commonly known as soft drinks of whatever 27 kind or description that are contained in any closed or 28 sealed bottle, can, carton, or container, regardless of size. 29 "Soft drinks" does not include coffee, tea, non-carbonated 30 water, infant formula, milk or milk products as defined in 31 the Grade A Pasteurized Milk and Milk Products Act, or drinks 32 containing 50% or more natural fruit or vegetable juice. 33 Notwithstanding any other provisions of this Act, "food 34 for human consumption that is to be consumed off the premises SB1867 Engrossed -9- LRB9113285SMdv 1 where it is sold" includes all food sold through a vending 2 machine, except soft drinks and food products that are 3 dispensed hot from a vending machine, regardless of the 4 location of the vending machine. 5 If the property that is purchased at retail from a 6 retailer is acquired outside Illinois and used outside 7 Illinois before being brought to Illinois for use here and is 8 taxable under this Act, the "selling price" on which the tax 9 is computed shall be reduced by an amount that represents a 10 reasonable allowance for depreciation for the period of prior 11 out-of-state use. 12 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 13 91-51, eff. 6-30-99; 91-872, eff. 7-1-00.) 14 Section 15. The Service Use Tax Act is amended by 15 changing Section 3-10 as follows: 16 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10) 17 Sec. 3-10. Rate of tax. Unless otherwise provided in 18 this Section, the tax imposed by this Act is at the rate of 19 6.25% of the selling price of tangible personal property 20 transferred as an incident to the sale of service, but, for 21 the purpose of computing this tax, in no event shall the 22 selling price be less than the cost price of the property to 23 the serviceman. 24 Beginning on July 1, 2000and through December 31, 2000, 25 with respect to motor fuel, as defined in Section 1.1 of the 26 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 27 of the Use Tax Act, the tax is imposed at the rate of 1.25%. 28 The changes made by this amendatory Act of the 91st General 29 Assembly are exempt from the provisions of Section 3-75. 30 With respect to gasohol, as defined in the Use Tax Act, 31 the tax imposed by this Act applies to 70% of the selling 32 price of property transferred as an incident to the sale of SB1867 Engrossed -10- LRB9113285SMdv 1 service on or after January 1, 1990, and before July 1, 2003, 2 and to 100% of the selling price thereafter. 3 At the election of any registered serviceman made for 4 each fiscal year, sales of service in which the aggregate 5 annual cost price of tangible personal property transferred 6 as an incident to the sales of service is less than 35%, or 7 75% in the case of servicemen transferring prescription drugs 8 or servicemen engaged in graphic arts production, of the 9 aggregate annual total gross receipts from all sales of 10 service, the tax imposed by this Act shall be based on the 11 serviceman's cost price of the tangible personal property 12 transferred as an incident to the sale of those services. 13 The tax shall be imposed at the rate of 1% on food 14 prepared for immediate consumption and transferred incident 15 to a sale of service subject to this Act or the Service 16 Occupation Tax Act by an entity licensed under the Hospital 17 Licensing Act, the Nursing Home Care Act, or the Child Care 18 Act of 1969. The tax shall also be imposed at the rate of 1% 19 on food for human consumption that is to be consumed off the 20 premises where it is sold (other than alcoholic beverages, 21 soft drinks, and food that has been prepared for immediate 22 consumption and is not otherwise included in this paragraph) 23 and prescription and nonprescription medicines, drugs, 24 medical appliances, modifications to a motor vehicle for the 25 purpose of rendering it usable by a disabled person, and 26 insulin, urine testing materials, syringes, and needles used 27 by diabetics, for human use. For the purposes of this 28 Section, the term "soft drinks" means any complete, finished, 29 ready-to-use, non-alcoholic drink, whether carbonated or not, 30 including but not limited to soda water, cola, fruit juice, 31 vegetable juice, carbonated water, and all other preparations 32 commonly known as soft drinks of whatever kind or description 33 that are contained in any closed or sealed bottle, can, 34 carton, or container, regardless of size. "Soft drinks" does SB1867 Engrossed -11- LRB9113285SMdv 1 not include coffee, tea, non-carbonated water, infant 2 formula, milk or milk products as defined in the Grade A 3 Pasteurized Milk and Milk Products Act, or drinks containing 4 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 If the property that is acquired from a serviceman is 12 acquired outside Illinois and used outside Illinois before 13 being brought to Illinois for use here and is taxable under 14 this Act, the "selling price" on which the tax is computed 15 shall be reduced by an amount that represents a reasonable 16 allowance for depreciation for the period of prior 17 out-of-state use. 18 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 19 91-51, eff. 6-30-99; 91-541, eff. 8-13-99; 91-872, eff. 20 7-1-00.) 21 Section 20. The Service Occupation Tax Act is amended by 22 changing Section 3-10 as follows: 23 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10) 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", as defined in Section 2 of the 27 Service Use Tax Act, of the tangible personal property. For 28 the purpose of computing this tax, in no event shall the 29 "selling price" be less than the cost price to the serviceman 30 of the tangible personal property transferred. The selling 31 price of each item of tangible personal property transferred 32 as an incident of a sale of service may be shown as a SB1867 Engrossed -12- LRB9113285SMdv 1 distinct and separate item on the serviceman's billing to the 2 service customer. If the selling price is not so shown, the 3 selling price of the tangible personal property is deemed to 4 be 50% of the serviceman's entire billing to the service 5 customer. When, however, a serviceman contracts to design, 6 develop, and produce special order machinery or equipment, 7 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 completion of the contract. 10 Beginning on July 1, 2000and 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 The changes made by this amendatory Act of the 91st General 15 Assembly are exempt from the provisions of Section 3-55. 16 With respect to gasohol, as defined in the Use Tax Act, 17 the tax imposed by this Act shall apply to 70% of the cost 18 price of property transferred as an incident to the sale of 19 service on or after January 1, 1990, and before July 1, 2003, 20 and to 100% of the cost price thereafter. 21 At the election of any registered serviceman made for 22 each fiscal year, sales of service in which the aggregate 23 annual cost price of tangible personal property transferred 24 as an incident to the sales of service is less than 35%, or 25 75% in the case of servicemen transferring prescription drugs 26 or servicemen engaged in graphic arts production, of the 27 aggregate annual total gross receipts from all sales of 28 service, 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 sale of those services. 31 The tax shall be imposed at the rate of 1% on food 32 prepared for immediate consumption and transferred incident 33 to a sale of service subject to this Act or the Service 34 Occupation Tax Act by an entity licensed under the Hospital SB1867 Engrossed -13- LRB9113285SMdv 1 Licensing Act, the Nursing Home Care Act, or the Child Care 2 Act of 1969. The tax shall also be imposed at the rate of 1% 3 on food for human consumption that is to be consumed off the 4 premises where it is sold (other than alcoholic beverages, 5 soft drinks, and food that has been prepared for immediate 6 consumption and is not otherwise included in this paragraph) 7 and prescription and nonprescription medicines, drugs, 8 medical appliances, modifications to a motor vehicle for the 9 purpose of rendering it usable by a disabled person, and 10 insulin, urine testing materials, syringes, and needles used 11 by diabetics, for human use. For the purposes of this 12 Section, the term "soft drinks" means any complete, finished, 13 ready-to-use, non-alcoholic drink, whether carbonated or not, 14 including but not limited to soda water, cola, fruit juice, 15 vegetable juice, carbonated water, and all other preparations 16 commonly known as soft drinks of whatever kind or description 17 that are contained in any closed or sealed can, carton, or 18 container, regardless of size. "Soft drinks" does not 19 include coffee, tea, non-carbonated water, infant formula, 20 milk or milk products as defined in the Grade A Pasteurized 21 Milk and Milk Products Act, or drinks containing 50% or more 22 natural fruit or vegetable juice. 23 Notwithstanding any other provisions of this Act, "food 24 for human consumption that is to be consumed off the premises 25 where it is sold" includes all food sold through a vending 26 machine, except soft drinks and food products that are 27 dispensed hot from a vending machine, regardless of the 28 location of the vending machine. 29 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 30 91-51, 6-30-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00.) 31 Section 25. The Retailers' Occupation Tax Act is amended 32 by changing Sections 2-10 and 2d as follows: SB1867 Engrossed -14- LRB9113285SMdv 1 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10) 2 Sec. 2-10. Rate of tax. Unless otherwise provided in 3 this Section, the tax imposed by this Act is at the rate of 4 6.25% of gross receipts from sales of tangible personal 5 property made in the course of business. 6 Beginning on July 1, 2000and 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 The changes made by this amendatory Act of the 91st General 11 Assembly are exempt from the provisions of Section 2-70. 12 Within 14 days after the effective date of this 13 amendatory Act of the 91st General Assembly, each retailer of 14 motor fuel and gasohol shall cause the following notice to be 15 posted in a prominently visible place on each retail 16 dispensing device that is used to dispense motor fuel or 17 gasohol in the State of Illinois: "As of July 1, 2000, the 18 State of Illinois has eliminated the State's share of sales 19 tax on motor fuel and gasohol through December 31, 2000. The 20 price on this pump should reflect the elimination of the 21 tax." The notice shall be printed in bold print on a sign 22 that is no smaller than 4 inches by 8 inches. The sign shall 23 be clearly visible to customers. Any retailer who fails to 24 post or maintain a required sign through December 31, 2000 is 25 guilty of a petty offense for which the fine shall be $500 26 per day per each retail premises where a violation occurs. 27 With respect to gasohol, as defined in the Use Tax Act, 28 the tax imposed by this Act applies to 70% of the proceeds of 29 sales made on or after January 1, 1990, and before July 1, 30 2003, and 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 33 alcoholic beverages, soft drinks, and food that has been 34 prepared for immediate consumption) and prescription and SB1867 Engrossed -15- LRB9113285SMdv 1 nonprescription medicines, drugs, medical appliances, 2 modifications to a motor vehicle for the purpose of rendering 3 it usable by a disabled person, and insulin, urine testing 4 materials, syringes, and needles used by diabetics, for human 5 use, the tax is imposed at the rate of 1%. For the purposes 6 of this Section, the term "soft drinks" means any complete, 7 finished, ready-to-use, non-alcoholic drink, whether 8 carbonated or not, including but not limited to soda water, 9 cola, fruit juice, vegetable juice, carbonated water, and all 10 other preparations commonly known as soft drinks of whatever 11 kind or description that are contained in any closed or 12 sealed bottle, can, carton, or container, regardless of size. 13 "Soft drinks" does not include coffee, tea, non-carbonated 14 water, infant formula, milk or milk products as defined in 15 the Grade A Pasteurized Milk and Milk Products Act, or drinks 16 containing 50% or more natural fruit or vegetable juice. 17 Notwithstanding any other provisions of this Act, "food 18 for human consumption that is to be consumed off the premises 19 where it is sold" includes all food sold through a vending 20 machine, except soft drinks and food products that are 21 dispensed hot from a vending machine, regardless of the 22 location of the vending machine. 23 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 24 91-51, eff. 6-30-99; 91-872, eff. 7-1-00.) 25 (35 ILCS 120/2d) (from Ch. 120, par. 441d) 26 Sec. 2d. Tax prepayment by motor fuel retailer. Any 27 person engaged in the business of selling motor fuel at 28 retail, as defined in the Motor Fuel Tax Law, and who is not 29 a licensed distributor or supplier, as defined in the Motor 30 Fuel Tax Law, shall prepay to his or her distributor, 31 supplier, or other reseller of motor fuel a portion of the 32 tax imposed by this Act if the distributor, supplier, or 33 other reseller of motor fuel is registered under Section 2a SB1867 Engrossed -16- LRB9113285SMdv 1 or Section 2c of this Act. The prepayment requirement 2 provided for in this Section does not apply to liquid propane 3 gas. 4 Beginning on July 1, 2000and through December 31, 2000, 5 the Retailers' Occupation Tax paid to the distributor, 6 supplier, or other reseller shall be an amount equal to $0.01 7 per gallon of the motor fuel, except gasohol as defined in8Section 2-10 of this Act which shall be an amount equal to9$0.01 per gallon,purchased from the distributor, supplier, 10 or other reseller. 11 Before July 1, 2000and then beginning on January 1, 200112and thereafter, the Retailers' Occupation Tax paid to the 13 distributor, supplier, or other reseller shall be an amount 14 equal to $0.04 per gallon of the motor fuel, except gasohol 15 as defined in Section 2-10 of this Act which shall be an 16 amount equal to $0.03 per gallon, purchased from the 17 distributor, supplier, or other reseller. 18 Any person engaged in the business of selling motor fuel 19 at retail shall be entitled to a credit against tax due under 20 this Act in an amount equal to the tax paid to the 21 distributor, supplier, or other reseller. 22 Every distributor, supplier, or other reseller registered 23 as provided in Section 2a or Section 2c of this Act shall 24 remit the prepaid tax on all motor fuel that is due from any 25 person engaged in the business of selling at retail motor 26 fuel with the returns filed under Section 2f or Section 3 of 27 this Act, but the vendors discount provided in Section 3 28 shall not apply to the amount of prepaid tax that is 29 remitted. Any distributor or supplier who fails to properly 30 collect and remit the tax shall be liable for the tax. For 31 purposes of this Section, the prepaid tax is due on invoiced 32 gallons sold during a month by the 20th day of the following 33 month. 34 (Source: P.A. 91-872, eff. 7-1-00.) SB1867 Engrossed -17- LRB9113285SMdv 1 Section 30. The Motor Fuel Tax Law is amended by 2 changing Section 13a as follows: 3 (35 ILCS 505/13a) (from Ch. 120, par. 429a) 4 Sec. 13a. (1) A tax is hereby imposed upon the use of 5 motor fuel upon highways of this State by commercial motor 6 vehicles. The tax shall be comprised of 2 parts. Part (a) 7 shall be at the rate established by Section 2 of this Act, as 8 heretofore or hereafter amended. Part (b) shall be at the 9 rate established by subsection (2) of this Section as now or 10 hereafter amended. 11 (2) For calendar years 2000 and before, a rate shall be 12 established by the Department as of January 1 of each year 13 using the average "selling price", as defined in the 14 Retailers' Occupation Tax Act, per gallon of motor fuel sold 15 in this State during the previous 12 months and multiplying 16 it by 6 1/4% to determine the cents per gallon rate. For the 17 period beginning on July 1, 2000 and through December 31, 18 2000, the Department shall establish a rate using the average 19 "selling price", as defined in the Retailers' Occupation Tax 20 Act, per gallon of motor fuel sold in this State during 21 calendar year 1999 and multiplying it by 1.25% to determine 22 the cents per gallon rate. On January 1, 2001 and on each 23 January 1 thereafter the Department shall establish a rate 24 using the average "selling price", as defined in the 25 Retailers' Occupation Tax Act, per gallon of motor fuel sold 26 in this State during the previous 12 months and multiplying 27 it by 1.25% to determine the cents per gallon rate. 28 (Source: P.A. 91-872, eff. 7-1-00.) 29 Section 99. Effective date. This Act takes effect upon 30 becoming law.