Bill Text: IL HB3022 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Liquor Control Act of 1934. Provides that, beginning on July 1, 2025, the proceeds from the tax imposed by the Act shall be deposited as follows: (1) 43% into the Capital Projects Fund; and (2) 57% into the General Revenue Fund. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-02-06 - Referred to Rules Committee [HB3022 Detail]

Download: Illinois-2025-HB3022-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3022 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED:
235 ILCS 5/8-1
Amends the Liquor Control Act of 1934. Provides that, beginning on July 1, 2025, the proceeds from the tax imposed by the Act shall be deposited as follows: (1) 43% into the Capital Projects Fund; and (2) 57% into the General Revenue Fund. Effective immediately.
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A BILL FOR
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AN ACT concerning liquor.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Liquor Control Act of 1934 is amended by
changing Section 8-1 as follows:
(235 ILCS 5/8-1)
Sec. 8-1. A tax is imposed upon the privilege of engaging
in business as a manufacturer or as an importing distributor
of alcoholic liquor other than beer at the rate of $0.185 per
gallon until September 1, 2009 and $0.231 per gallon beginning
September 1, 2009 for cider containing not less than 0.5%
alcohol by volume nor more than 7% alcohol by volume, $0.73 per
gallon until September 1, 2009 and $1.39 per gallon beginning
September 1, 2009 for wine other than cider containing less
than 7% alcohol by volume, and $4.50 per gallon until
September 1, 2009 and $8.55 per gallon beginning September 1,
2009 on alcohol and spirits manufactured and sold or used by
such manufacturer, or as agent for any other person, or sold or
used by such importing distributor, or as agent for any other
person. A tax is imposed upon the privilege of engaging in
business as a manufacturer of beer or as an importing
distributor of beer at the rate of $0.185 per gallon until
September 1, 2009 and $0.231 per gallon beginning September 1,

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2009 on all beer, regardless of alcohol by volume,
manufactured and sold or used by such manufacturer, or as
agent for any other person, or sold or used by such importing
distributor, or as agent for any other person. Any brewer
manufacturing beer in this State shall be entitled to and
given a credit or refund of 75% of the tax imposed on each
gallon of beer up to 4.9 million gallons per year in any given
calendar year for tax paid or payable on beer produced and sold
in the State of Illinois.
For purposes of this Section, "beer" means beer, ale,
porter, stout, and other similar fermented beverages of any
name or description containing one-half of one percent or more
of alcohol by volume, brewed or produced from malt, wholly or
in part, or from any substitute for malt.
For the purpose of this Section, "cider" means any
alcoholic beverage obtained by the alcohol fermentation of the
juice of apples or pears including, but not limited to,
flavored, sparkling, or carbonated cider.
The credit or refund created by this Act shall apply to all
beer taxes in the calendar years 1982 through 1986.
The increases made by this amendatory Act of the 91st
General Assembly in the rates of taxes imposed under this
Section shall apply beginning on July 1, 1999.
A tax at the rate of 1¢ per gallon on beer and 48¢ per
gallon on alcohol and spirits is also imposed upon the
privilege of engaging in business as a retailer or as a

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distributor who is not also an importing distributor with
respect to all beer and all alcohol and spirits owned or
possessed by such retailer or distributor when this amendatory
Act of 1969 becomes effective, and with respect to which the
additional tax imposed by this amendatory Act upon
manufacturers and importing distributors does not apply.
Retailers and distributors who are subject to the additional
tax imposed by this paragraph of this Section shall be
required to inventory such alcoholic liquor and to pay this
additional tax in a manner prescribed by the Department.
The provisions of this Section shall be construed to apply
to any importing distributor engaging in business in this
State, whether licensed or not.
However, such tax is not imposed upon any such business as
to any alcoholic liquor shipped outside Illinois by an
Illinois licensed manufacturer or importing distributor, nor
as to any alcoholic liquor delivered in Illinois by an
Illinois licensed manufacturer or importing distributor to a
purchaser for immediate transportation by the purchaser to
another state into which the purchaser has a legal right,
under the laws of such state, to import such alcoholic liquor,
nor as to any alcoholic liquor other than beer sold by one
Illinois licensed manufacturer or importing distributor to
another Illinois licensed manufacturer or importing
distributor to the extent to which the sale of alcoholic
liquor other than beer by one Illinois licensed manufacturer

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or importing distributor to another Illinois licensed
manufacturer or importing distributor is authorized by the
licensing provisions of this Act, nor to alcoholic liquor
whether manufactured in or imported into this State when sold
to a "non-beverage user" licensed by the State for use in the
manufacture of any of the following when they are unfit for
beverage purposes:
Patent and proprietary medicines and medicinal,
antiseptic, culinary and toilet preparations;
Flavoring extracts and syrups and food products;
Scientific, industrial and chemical products, excepting
denatured alcohol;
Or for scientific, chemical, experimental or mechanical
purposes;
Nor is the tax imposed upon the privilege of engaging in
any business in interstate commerce or otherwise, which
business may not, under the Constitution and Statutes of the
United States, be made the subject of taxation by this State.
The tax herein imposed shall be in addition to all other
occupation or privilege taxes imposed by the State of Illinois
or political subdivision thereof.
If any alcoholic liquor manufactured in or imported into
this State is sold to a licensed manufacturer or importing
distributor by a licensed manufacturer or importing
distributor to be used solely as an ingredient in the
manufacture of any beverage for human consumption, the tax

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imposed upon such purchasing manufacturer or importing
distributor shall be reduced by the amount of the taxes which
have been paid by the selling manufacturer or importing
distributor under this Act as to such alcoholic liquor so used
to the Department of Revenue.
If any person received any alcoholic liquors from a
manufacturer or importing distributor, with respect to which
alcoholic liquors no tax is imposed under this Article, and
such alcoholic liquor shall thereafter be disposed of in such
manner or under such circumstances as may cause the same to
become the base for the tax imposed by this Article, such
person shall make the same reports and returns, pay the same
taxes and be subject to all other provisions of this Article
relating to manufacturers and importing distributors.
Nothing in this Article shall be construed to require the
payment to the Department of the taxes imposed by this Article
more than once with respect to any quantity of alcoholic
liquor sold or used within this State.
No tax is imposed by this Act on sales of alcoholic liquor
by Illinois licensed foreign importers to Illinois licensed
importing distributors.
Before July 1, 2025, all All of the proceeds of the
additional tax imposed by Public Act 96-34 shall be deposited
by the Department into the Capital Projects Fund. The
remainder of the tax imposed by this Act shall be deposited by
the Department into the General Revenue Fund. On and after

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July 1, 2025, the proceeds from the tax imposed by this Act
shall be deposited as follows:
(1) 43% into the Capital Projects Fund; and
(2) 57% into the General Revenue Fund.
A manufacturer of beer that imports or transfers beer into
this State must comply with the provisions of this Section
with regard to the beer imported into this State.
The provisions of this Section 8-1 are severable under
Section 1.31 of the Statute on Statutes.
(Source: P.A. 100-885, eff. 8-14-18; 101-16, eff. 6-14-19.)
Section 99. Effective date. This Act takes effect upon
becoming law.