Bill Text: IL HB0906 | 2019-2020 | 101st General Assembly | Introduced


Bill Title: Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the tax on durable medical equipment is imposed at the rate of 1% (currently, 6.25%).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-03-29 - Rule 19(a) / Re-referred to Rules Committee [HB0906 Detail]

Download: Illinois-2019-HB0906-Introduced.html


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB0906

Introduced , by Rep. Michelle Mussman

SYNOPSIS AS INTRODUCED:
35 ILCS 105/3-10
35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
35 ILCS 120/2-10

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the tax on durable medical equipment is imposed at the rate of 1% (currently, 6.25%).
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FISCAL NOTE ACT MAY APPLY

A BILL FOR

HB0906LRB101 04950 HLH 49959 b
1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by changing Section
53-10 as follows:
6 (35 ILCS 105/3-10)
7 Sec. 3-10. Rate of tax. Unless otherwise provided in this
8Section, the tax imposed by this Act is at the rate of 6.25% of
9either the selling price or the fair market value, if any, of
10the tangible personal property. In all cases where property
11functionally used or consumed is the same as the property that
12was purchased at retail, then the tax is imposed on the selling
13price of the property. In all cases where property functionally
14used or consumed is a by-product or waste product that has been
15refined, manufactured, or produced from property purchased at
16retail, then the tax is imposed on the lower of the fair market
17value, if any, of the specific property so used in this State
18or on the selling price of the property purchased at retail.
19For purposes of this Section "fair market value" means the
20price at which property would change hands between a willing
21buyer and a willing seller, neither being under any compulsion
22to buy or sell and both having reasonable knowledge of the
23relevant facts. The fair market value shall be established by

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1Illinois sales by the taxpayer of the same property as that
2functionally used or consumed, or if there are no such sales by
3the taxpayer, then comparable sales or purchases of property of
4like kind and character in Illinois.
5 Beginning on July 1, 2000 and through December 31, 2000,
6with respect to motor fuel, as defined in Section 1.1 of the
7Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
8the Use Tax Act, the tax is imposed at the rate of 1.25%.
9 Beginning on August 6, 2010 through August 15, 2010, with
10respect to sales tax holiday items as defined in Section 3-6 of
11this Act, the tax is imposed at the rate of 1.25%.
12 With respect to gasohol, the tax imposed by this Act
13applies to (i) 70% of the proceeds of sales made on or after
14January 1, 1990, and before July 1, 2003, (ii) 80% of the
15proceeds of sales made on or after July 1, 2003 and on or
16before July 1, 2017, and (iii) 100% of the proceeds of sales
17made thereafter. If, at any time, however, the tax under this
18Act on sales of gasohol is imposed at the rate of 1.25%, then
19the tax imposed by this Act applies to 100% of the proceeds of
20sales of gasohol made during that time.
21 With respect to majority blended ethanol fuel, the tax
22imposed by this Act does not apply to the proceeds of sales
23made on or after July 1, 2003 and on or before December 31,
242023 but applies to 100% of the proceeds of sales made
25thereafter.
26 With respect to biodiesel blends with no less than 1% and

HB0906- 3 -LRB101 04950 HLH 49959 b
1no more than 10% biodiesel, the tax imposed by this Act applies
2to (i) 80% of the proceeds of sales made on or after July 1,
32003 and on or before December 31, 2018 and (ii) 100% of the
4proceeds of sales made thereafter. If, at any time, however,
5the tax under this Act on sales of biodiesel blends with no
6less than 1% and no more than 10% biodiesel is imposed at the
7rate of 1.25%, then the tax imposed by this Act applies to 100%
8of the proceeds of sales of biodiesel blends with no less than
91% and no more than 10% biodiesel made during that time.
10 With respect to 100% biodiesel and biodiesel blends with
11more than 10% but no more than 99% biodiesel, the tax imposed
12by this Act does not apply to the proceeds of sales made on or
13after July 1, 2003 and on or before December 31, 2023 but
14applies to 100% of the proceeds of sales made thereafter.
15 With respect to food for human consumption that is to be
16consumed off the premises where it is sold (other than
17alcoholic beverages, soft drinks, and food that has been
18prepared for immediate consumption) and prescription and
19nonprescription medicines, drugs, medical appliances, durable
20medical equipment, products classified as Class III medical
21devices by the United States Food and Drug Administration that
22are used for cancer treatment pursuant to a prescription, as
23well as any accessories and components related to those
24devices, modifications to a motor vehicle for the purpose of
25rendering it usable by a person with a disability, and insulin,
26urine testing materials, syringes, and needles used by

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1diabetics, for human use, the tax is imposed at the rate of 1%.
2For the purposes of this Section, until September 1, 2009: the
3term "soft drinks" means any complete, finished, ready-to-use,
4non-alcoholic drink, whether carbonated or not, including but
5not limited to soda water, cola, fruit juice, vegetable juice,
6carbonated water, and all other preparations commonly known as
7soft drinks of whatever kind or description that are contained
8in any closed or sealed bottle, can, carton, or container,
9regardless of size; but "soft drinks" does not include coffee,
10tea, non-carbonated water, infant formula, milk or milk
11products as defined in the Grade A Pasteurized Milk and Milk
12Products Act, or drinks containing 50% or more natural fruit or
13vegetable juice.
14 As used in this Act, the term "durable medical equipment"
15includes, but is not limited to, hospital beds, lift beds, bath
16chairs, wheelchairs, canes, crutches, ventilators, bedside
17commodes, respirators, walkers, and apnea monitors.
18 Notwithstanding any other provisions of this Act,
19beginning September 1, 2009, "soft drinks" means non-alcoholic
20beverages that contain natural or artificial sweeteners. "Soft
21drinks" do not include beverages that contain milk or milk
22products, soy, rice or similar milk substitutes, or greater
23than 50% of vegetable or fruit juice by volume.
24 Until August 1, 2009, and notwithstanding any other
25provisions of this Act, "food for human consumption that is to
26be consumed off the premises where it is sold" includes all

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1food sold through a vending machine, except soft drinks and
2food products that are dispensed hot from a vending machine,
3regardless of the location of the vending machine. Beginning
4August 1, 2009, and notwithstanding any other provisions of
5this Act, "food for human consumption that is to be consumed
6off the premises where it is sold" includes all food sold
7through a vending machine, except soft drinks, candy, and food
8products that are dispensed hot from a vending machine,
9regardless of the location of the vending machine.
10 Notwithstanding any other provisions of this Act,
11beginning September 1, 2009, "food for human consumption that
12is to be consumed off the premises where it is sold" does not
13include candy. For purposes of this Section, "candy" means a
14preparation of sugar, honey, or other natural or artificial
15sweeteners in combination with chocolate, fruits, nuts or other
16ingredients or flavorings in the form of bars, drops, or
17pieces. "Candy" does not include any preparation that contains
18flour or requires refrigeration.
19 Notwithstanding any other provisions of this Act,
20beginning September 1, 2009, "nonprescription medicines and
21drugs" does not include grooming and hygiene products. For
22purposes of this Section, "grooming and hygiene products"
23includes, but is not limited to, soaps and cleaning solutions,
24shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
25lotions and screens, unless those products are available by
26prescription only, regardless of whether the products meet the

HB0906- 6 -LRB101 04950 HLH 49959 b
1definition of "over-the-counter-drugs". For the purposes of
2this paragraph, "over-the-counter-drug" means a drug for human
3use that contains a label that identifies the product as a drug
4as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
5label includes:
6 (A) A "Drug Facts" panel; or
7 (B) A statement of the "active ingredient(s)" with a
8 list of those ingredients contained in the compound,
9 substance or preparation.
10 Beginning on the effective date of this amendatory Act of
11the 98th General Assembly, "prescription and nonprescription
12medicines and drugs" includes medical cannabis purchased from a
13registered dispensing organization under the Compassionate Use
14of Medical Cannabis Pilot Program Act.
15 If the property that is purchased at retail from a retailer
16is acquired outside Illinois and used outside Illinois before
17being brought to Illinois for use here and is taxable under
18this Act, the "selling price" on which the tax is computed
19shall be reduced by an amount that represents a reasonable
20allowance for depreciation for the period of prior out-of-state
21use.
22(Source: P.A. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16;
23100-22, eff. 7-6-17.)
24 Section 10. The Service Use Tax Act is amended by changing
25Section 3-10 as follows:

HB0906- 7 -LRB101 04950 HLH 49959 b
1 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
2 Sec. 3-10. Rate of tax. Unless otherwise provided in this
3Section, the tax imposed by this Act is at the rate of 6.25% of
4the selling price of tangible personal property transferred as
5an incident to the sale of service, but, for the purpose of
6computing this tax, in no event shall the selling price be less
7than the cost price of the property to the serviceman.
8 Beginning on July 1, 2000 and through December 31, 2000,
9with respect to motor fuel, as defined in Section 1.1 of the
10Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
11the Use Tax Act, the tax is imposed at the rate of 1.25%.
12 With respect to gasohol, as defined in the Use Tax Act, the
13tax imposed by this Act applies to (i) 70% of the selling price
14of property transferred as an incident to the sale of service
15on or after January 1, 1990, and before July 1, 2003, (ii) 80%
16of the selling price of property transferred as an incident to
17the sale of service on or after July 1, 2003 and on or before
18July 1, 2017, and (iii) 100% of the selling price thereafter.
19If, at any time, however, the tax under this Act on sales of
20gasohol, as defined in the Use Tax Act, is imposed at the rate
21of 1.25%, then the tax imposed by this Act applies to 100% of
22the proceeds of sales of gasohol made during that time.
23 With respect to majority blended ethanol fuel, as defined
24in the Use Tax Act, the tax imposed by this Act does not apply
25to the selling price of property transferred as an incident to

HB0906- 8 -LRB101 04950 HLH 49959 b
1the sale of service on or after July 1, 2003 and on or before
2December 31, 2023 but applies to 100% of the selling price
3thereafter.
4 With respect to biodiesel blends, as defined in the Use Tax
5Act, with no less than 1% and no more than 10% biodiesel, the
6tax imposed by this Act applies to (i) 80% of the selling price
7of property transferred as an incident to the sale of service
8on or after July 1, 2003 and on or before December 31, 2018 and
9(ii) 100% of the proceeds of the selling price thereafter. If,
10at any time, however, the tax under this Act on sales of
11biodiesel blends, as defined in the Use Tax Act, with no less
12than 1% and no more than 10% biodiesel is imposed at the rate
13of 1.25%, then the tax imposed by this Act applies to 100% of
14the proceeds of sales of biodiesel blends with no less than 1%
15and no more than 10% biodiesel made during that time.
16 With respect to 100% biodiesel, as defined in the Use Tax
17Act, and biodiesel blends, as defined in the Use Tax Act, with
18more than 10% but no more than 99% biodiesel, the tax imposed
19by this Act does not apply to the proceeds of the selling price
20of property transferred as an incident to the sale of service
21on or after July 1, 2003 and on or before December 31, 2023 but
22applies to 100% of the selling price thereafter.
23 At the election of any registered serviceman made for each
24fiscal year, sales of service in which the aggregate annual
25cost price of tangible personal property transferred as an
26incident to the sales of service is less than 35%, or 75% in

HB0906- 9 -LRB101 04950 HLH 49959 b
1the case of servicemen transferring prescription drugs or
2servicemen engaged in graphic arts production, of the aggregate
3annual total gross receipts from all sales of service, the tax
4imposed by this Act shall be based on the serviceman's cost
5price of the tangible personal property transferred as an
6incident to the sale of those services.
7 The tax shall be imposed at the rate of 1% on food prepared
8for immediate consumption and transferred incident to a sale of
9service subject to this Act or the Service Occupation Tax Act
10by an entity licensed under the Hospital Licensing Act, the
11Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
12Act, the Specialized Mental Health Rehabilitation Act of 2013,
13or the Child Care Act of 1969. The tax shall also be imposed at
14the rate of 1% on food for human consumption that is to be
15consumed off the premises where it is sold (other than
16alcoholic beverages, soft drinks, and food that has been
17prepared for immediate consumption and is not otherwise
18included in this paragraph) and prescription and
19nonprescription medicines, drugs, medical appliances, durable
20medical equipment, products classified as Class III medical
21devices by the United States Food and Drug Administration that
22are used for cancer treatment pursuant to a prescription, as
23well as any accessories and components related to those
24devices, modifications to a motor vehicle for the purpose of
25rendering it usable by a person with a disability, and insulin,
26urine testing materials, syringes, and needles used by

HB0906- 10 -LRB101 04950 HLH 49959 b
1diabetics, for human use. For the purposes of this Section,
2until September 1, 2009: the term "soft drinks" means any
3complete, finished, ready-to-use, non-alcoholic drink, whether
4carbonated or not, including but not limited to soda water,
5cola, fruit juice, vegetable juice, carbonated water, and all
6other preparations commonly known as soft drinks of whatever
7kind or description that are contained in any closed or sealed
8bottle, can, carton, or container, regardless of size; but
9"soft drinks" does not include coffee, tea, non-carbonated
10water, infant formula, milk or milk products as defined in the
11Grade A Pasteurized Milk and Milk Products Act, or drinks
12containing 50% or more natural fruit or vegetable juice.
13 Notwithstanding any other provisions of this Act,
14beginning September 1, 2009, "soft drinks" means non-alcoholic
15beverages that contain natural or artificial sweeteners. "Soft
16drinks" do not include beverages that contain milk or milk
17products, soy, rice or similar milk substitutes, or greater
18than 50% of vegetable or fruit juice by volume.
19 As used in this Act, the term "durable medical equipment"
20includes, but is not limited to, hospital beds, lift beds, bath
21chairs, wheelchairs, canes, crutches, ventilators, bedside
22commodes, respirators, walkers, and apnea monitors.
23 Until August 1, 2009, and notwithstanding any other
24provisions of this Act, "food for human consumption that is to
25be consumed off the premises where it is sold" includes all
26food sold through a vending machine, except soft drinks and

HB0906- 11 -LRB101 04950 HLH 49959 b
1food products that are dispensed hot from a vending machine,
2regardless of the location of the vending machine. Beginning
3August 1, 2009, and notwithstanding any other provisions of
4this Act, "food for human consumption that is to be consumed
5off the premises where it is sold" includes all food sold
6through a vending machine, except soft drinks, candy, and food
7products that are dispensed hot from a vending machine,
8regardless of the location of the vending machine.
9 Notwithstanding any other provisions of this Act,
10beginning September 1, 2009, "food for human consumption that
11is to be consumed off the premises where it is sold" does not
12include candy. For purposes of this Section, "candy" means a
13preparation of sugar, honey, or other natural or artificial
14sweeteners in combination with chocolate, fruits, nuts or other
15ingredients or flavorings in the form of bars, drops, or
16pieces. "Candy" does not include any preparation that contains
17flour or requires refrigeration.
18 Notwithstanding any other provisions of this Act,
19beginning September 1, 2009, "nonprescription medicines and
20drugs" does not include grooming and hygiene products. For
21purposes of this Section, "grooming and hygiene products"
22includes, but is not limited to, soaps and cleaning solutions,
23shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
24lotions and screens, unless those products are available by
25prescription only, regardless of whether the products meet the
26definition of "over-the-counter-drugs". For the purposes of

HB0906- 12 -LRB101 04950 HLH 49959 b
1this paragraph, "over-the-counter-drug" means a drug for human
2use that contains a label that identifies the product as a drug
3as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
4label includes:
5 (A) A "Drug Facts" panel; or
6 (B) A statement of the "active ingredient(s)" with a
7 list of those ingredients contained in the compound,
8 substance or preparation.
9 Beginning on January 1, 2014 (the effective date of Public
10Act 98-122), "prescription and nonprescription medicines and
11drugs" includes medical cannabis purchased from a registered
12dispensing organization under the Compassionate Use of Medical
13Cannabis Pilot Program Act.
14 If the property that is acquired from a serviceman is
15acquired outside Illinois and used outside Illinois before
16being brought to Illinois for use here and is taxable under
17this Act, the "selling price" on which the tax is computed
18shall be reduced by an amount that represents a reasonable
19allowance for depreciation for the period of prior out-of-state
20use.
21(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
2299-642, eff. 7-28-16; 99-858, eff. 8-19-16; 100-22, eff.
237-6-17.)
24 Section 15. The Service Occupation Tax Act is amended by
25changing Section 3-10 as follows:

HB0906- 13 -LRB101 04950 HLH 49959 b
1 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
2 Sec. 3-10. Rate of tax. Unless otherwise provided in this
3Section, the tax imposed by this Act is at the rate of 6.25% of
4the "selling price", as defined in Section 2 of the Service Use
5Tax Act, of the tangible personal property. For the purpose of
6computing this tax, in no event shall the "selling price" be
7less than the cost price to the serviceman of the tangible
8personal property transferred. The selling price of each item
9of tangible personal property transferred as an incident of a
10sale of service may be shown as a distinct and separate item on
11the serviceman's billing to the service customer. If the
12selling price is not so shown, the selling price of the
13tangible personal property is deemed to be 50% of the
14serviceman's entire billing to the service customer. When,
15however, a serviceman contracts to design, develop, and produce
16special order machinery or equipment, the tax imposed by this
17Act shall be based on the serviceman's cost price of the
18tangible personal property transferred incident to the
19completion of the contract.
20 Beginning on July 1, 2000 and through December 31, 2000,
21with respect to motor fuel, as defined in Section 1.1 of the
22Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
23the Use Tax Act, the tax is imposed at the rate of 1.25%.
24 With respect to gasohol, as defined in the Use Tax Act, the
25tax imposed by this Act shall apply to (i) 70% of the cost

HB0906- 14 -LRB101 04950 HLH 49959 b
1price of property transferred as an incident to the sale of
2service on or after January 1, 1990, and before July 1, 2003,
3(ii) 80% of the selling price of property transferred as an
4incident to the sale of service on or after July 1, 2003 and on
5or before July 1, 2017, and (iii) 100% of the cost price
6thereafter. If, at any time, however, the tax under this Act on
7sales of gasohol, as defined in the Use Tax Act, is imposed at
8the rate of 1.25%, then the tax imposed by this Act applies to
9100% of the proceeds of sales of gasohol made during that time.
10 With respect to majority blended ethanol fuel, as defined
11in the Use Tax Act, the tax imposed by this Act does not apply
12to the selling price of property transferred as an incident to
13the sale of service on or after July 1, 2003 and on or before
14December 31, 2023 but applies to 100% of the selling price
15thereafter.
16 With respect to biodiesel blends, as defined in the Use Tax
17Act, with no less than 1% and no more than 10% biodiesel, the
18tax imposed by this Act applies to (i) 80% of the selling price
19of property transferred as an incident to the sale of service
20on or after July 1, 2003 and on or before December 31, 2018 and
21(ii) 100% of the proceeds of the selling price thereafter. If,
22at any time, however, the tax under this Act on sales of
23biodiesel blends, as defined in the Use Tax Act, with no less
24than 1% and no more than 10% biodiesel is imposed at the rate
25of 1.25%, then the tax imposed by this Act applies to 100% of
26the proceeds of sales of biodiesel blends with no less than 1%

HB0906- 15 -LRB101 04950 HLH 49959 b
1and no more than 10% biodiesel made during that time.
2 With respect to 100% biodiesel, as defined in the Use Tax
3Act, and biodiesel blends, as defined in the Use Tax Act, with
4more than 10% but no more than 99% biodiesel material, the tax
5imposed by this Act does not apply to the proceeds of the
6selling price of property transferred as an incident to the
7sale of service on or after July 1, 2003 and on or before
8December 31, 2023 but applies to 100% of the selling price
9thereafter.
10 At the election of any registered serviceman made for each
11fiscal year, sales of service in which the aggregate annual
12cost price of tangible personal property transferred as an
13incident to the sales of service is less than 35%, or 75% in
14the case of servicemen transferring prescription drugs or
15servicemen engaged in graphic arts production, of the aggregate
16annual total gross receipts from all sales of service, the tax
17imposed by this Act shall be based on the serviceman's cost
18price of the tangible personal property transferred incident to
19the sale of those services.
20 The tax shall be imposed at the rate of 1% on food prepared
21for immediate consumption and transferred incident to a sale of
22service subject to this Act or the Service Occupation Tax Act
23by an entity licensed under the Hospital Licensing Act, the
24Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
25Act, the Specialized Mental Health Rehabilitation Act of 2013,
26or the Child Care Act of 1969. The tax shall also be imposed at

HB0906- 16 -LRB101 04950 HLH 49959 b
1the rate of 1% on food for human consumption that is to be
2consumed off the premises where it is sold (other than
3alcoholic beverages, soft drinks, and food that has been
4prepared for immediate consumption and is not otherwise
5included in this paragraph) and prescription and
6nonprescription medicines, drugs, medical appliances, durable
7medical equipment, products classified as Class III medical
8devices by the United States Food and Drug Administration that
9are used for cancer treatment pursuant to a prescription, as
10well as any accessories and components related to those
11devices, modifications to a motor vehicle for the purpose of
12rendering it usable by a person with a disability, and insulin,
13urine testing materials, syringes, and needles used by
14diabetics, for human use. For the purposes of this Section,
15until September 1, 2009: the term "soft drinks" means any
16complete, finished, ready-to-use, non-alcoholic drink, whether
17carbonated or not, including but not limited to soda water,
18cola, fruit juice, vegetable juice, carbonated water, and all
19other preparations commonly known as soft drinks of whatever
20kind or description that are contained in any closed or sealed
21can, carton, or container, regardless of size; but "soft
22drinks" does not include coffee, tea, non-carbonated water,
23infant formula, milk or milk products as defined in the Grade A
24Pasteurized Milk and Milk Products Act, or drinks containing
2550% or more natural fruit or vegetable juice.
26 Notwithstanding any other provisions of this Act,

HB0906- 17 -LRB101 04950 HLH 49959 b
1beginning September 1, 2009, "soft drinks" means non-alcoholic
2beverages that contain natural or artificial sweeteners. "Soft
3drinks" do not include beverages that contain milk or milk
4products, soy, rice or similar milk substitutes, or greater
5than 50% of vegetable or fruit juice by volume.
6 As used in this Act, the term "durable medical equipment"
7includes, but is not limited to, hospital beds, lift beds, bath
8chairs, wheelchairs, canes, crutches, ventilators, bedside
9commodes, respirators, walkers, and apnea monitors.
10 Until August 1, 2009, and notwithstanding any other
11provisions of this Act, "food for human consumption that is to
12be consumed off the premises where it is sold" includes all
13food sold through a vending machine, except soft drinks and
14food products that are dispensed hot from a vending machine,
15regardless of the location of the vending machine. Beginning
16August 1, 2009, and notwithstanding any other provisions of
17this Act, "food for human consumption that is to be consumed
18off the premises where it is sold" includes all food sold
19through a vending machine, except soft drinks, candy, and food
20products that are dispensed hot from a vending machine,
21regardless of the location of the vending machine.
22 Notwithstanding any other provisions of this Act,
23beginning September 1, 2009, "food for human consumption that
24is to be consumed off the premises where it is sold" does not
25include candy. For purposes of this Section, "candy" means a
26preparation of sugar, honey, or other natural or artificial

HB0906- 18 -LRB101 04950 HLH 49959 b
1sweeteners in combination with chocolate, fruits, nuts or other
2ingredients or flavorings in the form of bars, drops, or
3pieces. "Candy" does not include any preparation that contains
4flour or requires refrigeration.
5 Notwithstanding any other provisions of this Act,
6beginning September 1, 2009, "nonprescription medicines and
7drugs" does not include grooming and hygiene products. For
8purposes of this Section, "grooming and hygiene products"
9includes, but is not limited to, soaps and cleaning solutions,
10shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
11lotions and screens, unless those products are available by
12prescription only, regardless of whether the products meet the
13definition of "over-the-counter-drugs". For the purposes of
14this paragraph, "over-the-counter-drug" means a drug for human
15use that contains a label that identifies the product as a drug
16as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
17label includes:
18 (A) A "Drug Facts" panel; or
19 (B) A statement of the "active ingredient(s)" with a
20 list of those ingredients contained in the compound,
21 substance or preparation.
22 Beginning on January 1, 2014 (the effective date of Public
23Act 98-122), "prescription and nonprescription medicines and
24drugs" includes medical cannabis purchased from a registered
25dispensing organization under the Compassionate Use of Medical
26Cannabis Pilot Program Act.

HB0906- 19 -LRB101 04950 HLH 49959 b
1(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
299-642, eff. 7-28-16; 99-858, eff. 8-19-16; 100-22, eff.
37-6-17.)
4 Section 20. The Retailers' Occupation Tax Act is amended by
5changing Section 2-10 as follows:
6 (35 ILCS 120/2-10)
7 Sec. 2-10. Rate of tax. Unless otherwise provided in this
8Section, the tax imposed by this Act is at the rate of 6.25% of
9gross receipts from sales of tangible personal property made in
10the course of business.
11 Beginning on July 1, 2000 and through December 31, 2000,
12with respect to motor fuel, as defined in Section 1.1 of the
13Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
14the Use Tax Act, the tax is imposed at the rate of 1.25%.
15 Beginning on August 6, 2010 through August 15, 2010, with
16respect to sales tax holiday items as defined in Section 2-8 of
17this Act, the tax is imposed at the rate of 1.25%.
18 Within 14 days after the effective date of this amendatory
19Act of the 91st General Assembly, each retailer of motor fuel
20and gasohol shall cause the following notice to be posted in a
21prominently visible place on each retail dispensing device that
22is used to dispense motor fuel or gasohol in the State of
23Illinois: "As of July 1, 2000, the State of Illinois has
24eliminated the State's share of sales tax on motor fuel and

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1gasohol through December 31, 2000. The price on this pump
2should reflect the elimination of the tax." The notice shall be
3printed in bold print on a sign that is no smaller than 4
4inches by 8 inches. The sign shall be clearly visible to
5customers. Any retailer who fails to post or maintain a
6required sign through December 31, 2000 is guilty of a petty
7offense for which the fine shall be $500 per day per each
8retail premises where a violation occurs.
9 With respect to gasohol, as defined in the Use Tax Act, the
10tax imposed by this Act applies to (i) 70% of the proceeds of
11sales made on or after January 1, 1990, and before July 1,
122003, (ii) 80% of the proceeds of sales made on or after July
131, 2003 and on or before July 1, 2017, and (iii) 100% of the
14proceeds of sales made thereafter. If, at any time, however,
15the tax under this Act on sales of gasohol, as defined in the
16Use Tax Act, is imposed at the rate of 1.25%, then the tax
17imposed by this Act applies to 100% of the proceeds of sales of
18gasohol made during that time.
19 With respect to majority blended ethanol fuel, as defined
20in the Use Tax Act, the tax imposed by this Act does not apply
21to the proceeds of sales made on or after July 1, 2003 and on or
22before December 31, 2023 but applies to 100% of the proceeds of
23sales made thereafter.
24 With respect to biodiesel blends, as defined in the Use Tax
25Act, with no less than 1% and no more than 10% biodiesel, the
26tax imposed by this Act applies to (i) 80% of the proceeds of

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1sales made on or after July 1, 2003 and on or before December
231, 2018 and (ii) 100% of the proceeds of sales made
3thereafter. If, at any time, however, the tax under this Act on
4sales of biodiesel blends, as defined in the Use Tax Act, with
5no less than 1% and no more than 10% biodiesel is imposed at
6the rate of 1.25%, then the tax imposed by this Act applies to
7100% of the proceeds of sales of biodiesel blends with no less
8than 1% and no more than 10% biodiesel made during that time.
9 With respect to 100% biodiesel, as defined in the Use Tax
10Act, and biodiesel blends, as defined in the Use Tax Act, with
11more than 10% but no more than 99% biodiesel, the tax imposed
12by this Act does not apply to the proceeds of sales made on or
13after July 1, 2003 and on or before December 31, 2023 but
14applies to 100% of the proceeds of sales made thereafter.
15 With respect to food for human consumption that is to be
16consumed off the premises where it is sold (other than
17alcoholic beverages, soft drinks, and food that has been
18prepared for immediate consumption) and prescription and
19nonprescription medicines, drugs, medical appliances, durable
20medical equipment, products classified as Class III medical
21devices by the United States Food and Drug Administration that
22are used for cancer treatment pursuant to a prescription, as
23well as any accessories and components related to those
24devices, modifications to a motor vehicle for the purpose of
25rendering it usable by a person with a disability, and insulin,
26urine testing materials, syringes, and needles used by

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1diabetics, for human use, the tax is imposed at the rate of 1%.
2For the purposes of this Section, until September 1, 2009: the
3term "soft drinks" means any complete, finished, ready-to-use,
4non-alcoholic drink, whether carbonated or not, including but
5not limited to soda water, cola, fruit juice, vegetable juice,
6carbonated water, and all other preparations commonly known as
7soft drinks of whatever kind or description that are contained
8in any closed or sealed bottle, can, carton, or container,
9regardless of size; but "soft drinks" does not include coffee,
10tea, non-carbonated water, infant formula, milk or milk
11products as defined in the Grade A Pasteurized Milk and Milk
12Products Act, or drinks containing 50% or more natural fruit or
13vegetable juice.
14 Notwithstanding any other provisions of this Act,
15beginning September 1, 2009, "soft drinks" means non-alcoholic
16beverages that contain natural or artificial sweeteners. "Soft
17drinks" do not include beverages that contain milk or milk
18products, soy, rice or similar milk substitutes, or greater
19than 50% of vegetable or fruit juice by volume.
20 As used in this Act, the term "durable medical equipment"
21includes, but is not limited to, hospital beds, lift beds, bath
22chairs, wheelchairs, canes, crutches, ventilators, bedside
23commodes, respirators, walkers, and apnea monitors.
24 Until August 1, 2009, and notwithstanding any other
25provisions of this Act, "food for human consumption that is to
26be consumed off the premises where it is sold" includes all

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1food sold through a vending machine, except soft drinks and
2food products that are dispensed hot from a vending machine,
3regardless of the location of the vending machine. Beginning
4August 1, 2009, and notwithstanding any other provisions of
5this Act, "food for human consumption that is to be consumed
6off the premises where it is sold" includes all food sold
7through a vending machine, except soft drinks, candy, and food
8products that are dispensed hot from a vending machine,
9regardless of the location of the vending machine.
10 Notwithstanding any other provisions of this Act,
11beginning September 1, 2009, "food for human consumption that
12is to be consumed off the premises where it is sold" does not
13include candy. For purposes of this Section, "candy" means a
14preparation of sugar, honey, or other natural or artificial
15sweeteners in combination with chocolate, fruits, nuts or other
16ingredients or flavorings in the form of bars, drops, or
17pieces. "Candy" does not include any preparation that contains
18flour or requires refrigeration.
19 Notwithstanding any other provisions of this Act,
20beginning September 1, 2009, "nonprescription medicines and
21drugs" does not include grooming and hygiene products. For
22purposes of this Section, "grooming and hygiene products"
23includes, but is not limited to, soaps and cleaning solutions,
24shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
25lotions and screens, unless those products are available by
26prescription only, regardless of whether the products meet the

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1definition of "over-the-counter-drugs". For the purposes of
2this paragraph, "over-the-counter-drug" means a drug for human
3use that contains a label that identifies the product as a drug
4as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
5label includes:
6 (A) A "Drug Facts" panel; or
7 (B) A statement of the "active ingredient(s)" with a
8 list of those ingredients contained in the compound,
9 substance or preparation.
10 Beginning on the effective date of this amendatory Act of
11the 98th General Assembly, "prescription and nonprescription
12medicines and drugs" includes medical cannabis purchased from a
13registered dispensing organization under the Compassionate Use
14of Medical Cannabis Pilot Program Act.
15(Source: P.A. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16;
16100-22, eff. 7-6-17.)
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