103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3364
 
Introduced 2/7/2024, by Sen. Craig Wilcox
 
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
35 ILCS 120/2d from Ch. 120, par. 441d
 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning 30 days after the effective date of the amendatory Act, the cents per gallon rate established by the Department of Revenue for the prepayment of tax by motor fuel retailers may not exceed $0.18 per gallon for motor fuel and 80% of that amount for gasohol and biodiesel blends. Provides that the rate of tax imposed under the Acts for motor fuel, gasohol, majority blended ethanol fuel, and biodiesel and biodiesel blends may not exceed that prepayment amount set by the Department of Revenue. Effective immediately.


LRB103 37906 HLH 68038 b


 
 
A BILL FOR
 
SB3364LRB103 37906 HLH 68038 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 
14functionally used or consumed is a by-product or waste product 
15that has been refined, manufactured, or produced from property 
16purchased at retail, then the tax is imposed on the lower of 
17the fair market value, if any, of the specific property so used 
18in this State or on the selling price of the property purchased 
19at retail. For purposes of this Section "fair market value" 
20means the price at which property would change hands between a 
21willing buyer and a willing seller, neither being under any 
22compulsion to buy or sell and both having reasonable knowledge 
23of the relevant facts. The fair market value shall be 
 
 
SB3364- 2 -LRB103 37906 HLH 68038 b


1established by Illinois sales by the taxpayer of the same 
2property as that functionally used or consumed, or if there 
3are no such sales by the taxpayer, then comparable sales or 
4purchases of property of like 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 30 days after the effective date of this 
10amendatory Act of the 103rd General Assembly, the tax imposed 
11under this Act on the following items may not exceed the cents 
12per gallon rate established by the Department under subsection 
13(e) of Section 2d of the Retailers' Occupation Tax Act: motor 
14fuel, as defined in Section 1.1 of the Motor Fuel Tax Law; 
15gasohol, as defined in Section 3-40 of this Act; majority 
16blended ethanol fuel; and biodiesel and biodiesel blends. With 
17respect to the tax imposed on biodiesel blends and gasohol, 
18the maximum cents per gallon rate shall include the reduction 
19allowed in subsection (e) of Section 2d of the Retailers' 
20Occupation Tax Act. 
21 Beginning on August 6, 2010 through August 15, 2010, and 
22beginning again on August 5, 2022 through August 14, 2022, 
23with respect to sales tax holiday items as defined in Section 
243-6 of this Act, the tax is imposed at the rate of 1.25%. 
25 With respect to gasohol, the tax imposed by this Act 
26applies to (i) 70% of the proceeds of sales made on or after 
 
 
SB3364- 3 -LRB103 37906 HLH 68038 b


1January 1, 1990, and before July 1, 2003, (ii) 80% of the 
2proceeds of sales made on or after July 1, 2003 and on or 
3before July 1, 2017, (iii) 100% of the proceeds of sales made 
4after July 1, 2017 and prior to January 1, 2024, (iv) 90% of 
5the proceeds of sales made on or after January 1, 2024 and on 
6or before December 31, 2028, and (v) 100% of the proceeds of 
7sales made after December 31, 2028. If, at any time, however, 
8the tax under this Act on sales of gasohol is imposed at the 
9rate of 1.25%, then the tax imposed by this Act applies to 100% 
10of the proceeds of sales of gasohol made during that time.
11 With respect to mid-range ethanol blends, the tax imposed 
12by this Act applies to (i) 80% of the proceeds of sales made on 
13or after January 1, 2024 and on or before December 31, 2028 and 
14(ii) 100% of the proceeds of sales made thereafter. If, at any 
15time, however, the tax under this Act on sales of mid-range 
16ethanol blends is imposed at the rate of 1.25%, then the tax 
17imposed by this Act applies to 100% of the proceeds of sales of 
18mid-range ethanol blends made during that time. 
19 With respect to majority blended ethanol fuel, the tax 
20imposed by this Act does not apply to the proceeds of sales 
21made on or after July 1, 2003 and on or before December 31, 
222028 but applies to 100% of the proceeds of sales made 
23thereafter.
24 With respect to biodiesel blends with no less than 1% and 
25no more than 10% biodiesel, the tax imposed by this Act applies 
26to (i) 80% of the proceeds of sales made on or after July 1, 
 
 
SB3364- 4 -LRB103 37906 HLH 68038 b


12003 and on or before December 31, 2018 and (ii) 100% of the 
2proceeds of sales made after December 31, 2018 and before 
3January 1, 2024. On and after January 1, 2024 and on or before 
4December 31, 2030, the taxation of biodiesel, renewable 
5diesel, and biodiesel blends shall be as provided in Section 
63-5.1. If, at any time, however, the tax under this Act on 
7sales of biodiesel blends with no less than 1% and no more than 
810% biodiesel is imposed at the rate of 1.25%, then the tax 
9imposed by this Act applies to 100% of the proceeds of sales of 
10biodiesel blends with no less than 1% and no more than 10% 
11biodiesel made during that time.
12 With respect to biodiesel and biodiesel blends with more 
13than 10% but no more than 99% biodiesel, the tax imposed by 
14this Act does not apply to the proceeds of sales made on or 
15after July 1, 2003 and on or before December 31, 2023. On and 
16after January 1, 2024 and on or before December 31, 2030, the 
17taxation of biodiesel, renewable diesel, and biodiesel blends 
18shall be as provided in Section 3-5.1.
19 Until July 1, 2022 and beginning again on July 1, 2023, 
20with respect to food for human consumption that is to be 
21consumed off the premises where it is sold (other than 
22alcoholic beverages, food consisting of or infused with adult 
23use cannabis, soft drinks, and food that has been prepared for 
24immediate consumption), the tax is imposed at the rate of 1%. 
25Beginning on July 1, 2022 and until July 1, 2023, with respect 
26to food for human consumption that is to be consumed off the 
 
 
SB3364- 5 -LRB103 37906 HLH 68038 b


1premises where it is sold (other than alcoholic beverages, 
2food consisting of or infused with adult use cannabis, soft 
3drinks, and food that has been prepared for immediate 
4consumption), the tax is imposed at the rate of 0%.
5 With respect to prescription and nonprescription 
6medicines, drugs, medical appliances, products classified as 
7Class III medical devices by the United States Food and Drug 
8Administration that are used for cancer treatment pursuant to 
9a prescription, as well as any accessories and components 
10related to those devices, modifications to a motor vehicle for 
11the purpose of rendering it usable by a person with a 
12disability, and insulin, blood sugar testing materials, 
13syringes, and needles used by human diabetics, the tax is 
14imposed at the rate of 1%. 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 
21bottle, can, carton, or container, regardless of size; but 
22"soft drinks" does not include coffee, tea, non-carbonated 
23water, infant formula, milk or milk products as defined in the 
24Grade A Pasteurized Milk and Milk Products Act, or drinks 
25containing 50% or more natural fruit or vegetable juice.
26 Notwithstanding any other provisions of this Act, 
 
 
SB3364- 6 -LRB103 37906 HLH 68038 b


1beginning September 1, 2009, "soft drinks" means non-alcoholic 
2beverages that contain natural or artificial sweeteners. "Soft 
3drinks" does 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 Until August 1, 2009, and notwithstanding any other 
7provisions of this Act, "food for human consumption that is to 
8be consumed off the premises where it is sold" includes all 
9food sold through a vending machine, except soft drinks and 
10food products that are dispensed hot from a vending machine, 
11regardless of the location of the vending machine. Beginning 
12August 1, 2009, and notwithstanding any other provisions of 
13this Act, "food for human consumption that is to be consumed 
14off the premises where it is sold" includes all food sold 
15through a vending machine, except soft drinks, candy, and food 
16products that are dispensed hot from a vending machine, 
17regardless of the location of the vending machine. 
18 Notwithstanding any other provisions of this Act, 
19beginning September 1, 2009, "food for human consumption that 
20is to be consumed off the premises where it is sold" does not 
21include candy. For purposes of this Section, "candy" means a 
22preparation of sugar, honey, or other natural or artificial 
23sweeteners in combination with chocolate, fruits, nuts or 
24other ingredients or flavorings in the form of bars, drops, or 
25pieces. "Candy" does not include any preparation that contains 
26flour or requires refrigeration. 
 
 
SB3364- 7 -LRB103 37906 HLH 68038 b


1 Notwithstanding any other provisions of this Act, 
2beginning September 1, 2009, "nonprescription medicines and 
3drugs" does not include grooming and hygiene products. For 
4purposes of this Section, "grooming and hygiene products" 
5includes, but is not limited to, soaps and cleaning solutions, 
6shampoo, toothpaste, mouthwash, antiperspirants, and sun tan 
7lotions and screens, unless those products are available by 
8prescription only, regardless of whether the products meet the 
9definition of "over-the-counter-drugs". For the purposes of 
10this paragraph, "over-the-counter-drug" means a drug for human 
11use that contains a label that identifies the product as a drug 
12as required by 21 CFR 201.66. The "over-the-counter-drug" 
13label includes: 
14  (A) a "Drug Facts" panel; or
15  (B) a statement of the "active ingredient(s)" with a 
16 list of those ingredients contained in the compound, 
17 substance or preparation.
18 Beginning on January 1, 2014 (the effective date of Public 
19Act 98-122), "prescription and nonprescription medicines and 
20drugs" includes medical cannabis purchased from a registered 
21dispensing organization under the Compassionate Use of Medical 
22Cannabis Program Act. 
23 As used in this Section, "adult use cannabis" means 
24cannabis subject to tax under the Cannabis Cultivation 
25Privilege Tax Law and the Cannabis Purchaser Excise Tax Law 
26and does not include cannabis subject to tax under the 
 
 
SB3364- 8 -LRB103 37906 HLH 68038 b


1Compassionate Use of Medical Cannabis Program Act. 
2 If the property that is purchased at retail from a 
3retailer is acquired outside Illinois and used outside 
4Illinois before being brought to Illinois for use here and is 
5taxable under this Act, the "selling price" on which the tax is 
6computed shall be reduced by an amount that represents a 
7reasonable allowance for depreciation for the period of prior 
8out-of-state use.
9(Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20, 
10Section 20-5, eff. 4-19-22; 102-700, Article 60, Section 
1160-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff. 
124-19-22; 103-9, eff. 6-7-23; 103-154 eff. 6-30-23.)

13 Section 10. The Service Use Tax Act is amended by changing 
14Section 3-10 as follows:

15 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
16 Sec. 3-10. Rate of tax. Unless otherwise provided in this 
17Section, the tax imposed by this Act is at the rate of 6.25% of 
18the selling price of tangible personal property transferred as 
19an incident to the sale of service, but, for the purpose of 
20computing this tax, in no event shall the selling price be less 
21than the cost price of the property to the serviceman.
22 Beginning on July 1, 2000 and through December 31, 2000, 
23with respect to motor fuel, as defined in Section 1.1 of the 
24Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of 
 
 
SB3364- 9 -LRB103 37906 HLH 68038 b


1the Use Tax Act, the tax is imposed at the rate of 1.25%.
2 Beginning 30 days after the effective date of this 
3amendatory Act of the 103rd General Assembly, the tax imposed 
4under this Act on the following items may not exceed the cents 
5per gallon rate established by the Department under subsection 
6(e) of Section 2d of the Retailers' Occupation Tax Act: motor 
7fuel, as defined in Section 1.1 of the Motor Fuel Tax Law; 
8gasohol, as defined in Section 3-40 of the Use Tax Act; 
9majority blended ethanol fuel; and biodiesel and biodiesel 
10blends. With respect to the tax imposed on biodiesel blends 
11and gasohol, the maximum cents per gallon rate shall include 
12the reduction allowed in subsection (e) of Section 2d of the 
13Retailers' Occupation Tax Act. 
14 With respect to gasohol, as defined in the Use Tax Act, the 
15tax imposed by this Act applies to (i) 70% of the selling price 
16of property transferred as an incident to the sale of service 
17on or after January 1, 1990, and before July 1, 2003, (ii) 80% 
18of the selling price of property transferred as an incident to 
19the sale of service on or after July 1, 2003 and on or before 
20July 1, 2017, (iii) 100% of the selling price of property 
21transferred as an incident to the sale of service after July 1, 
222017 and before January 1, 2024, (iv) 90% of the selling price 
23of property transferred as an incident to the sale of service 
24on or after January 1, 2024 and on or before December 31, 2028, 
25and (v) 100% of the selling price of property transferred as an 
26incident to the sale of service after December 31, 2028. If, at 
 
 
SB3364- 10 -LRB103 37906 HLH 68038 b


1any time, however, the tax under this Act on sales of gasohol, 
2as defined in the Use Tax Act, is imposed at the rate of 1.25%, 
3then the tax imposed by this Act applies to 100% of the 
4proceeds of sales of gasohol made during that time.
5 With respect to mid-range ethanol blends, as defined in 
6Section 3-44.3 of the Use Tax Act, the tax imposed by this Act 
7applies to (i) 80% of the selling price of property 
8transferred as an incident to the sale of service on or after 
9January 1, 2024 and on or before December 31, 2028 and (ii) 
10100% of the selling price of property transferred as an 
11incident to the sale of service after December 31, 2028. If, at 
12any time, however, the tax under this Act on sales of mid-range 
13ethanol blends is imposed at the rate of 1.25%, then the tax 
14imposed by this Act applies to 100% of the selling price of 
15mid-range ethanol blends transferred as an incident to the 
16sale of service during that time.
17 With respect to majority blended ethanol fuel, as defined 
18in the Use Tax Act, the tax imposed by this Act does not apply 
19to the selling price of property transferred as an incident to 
20the sale of service on or after July 1, 2003 and on or before 
21December 31, 2028 but applies to 100% of the selling price 
22thereafter.
23 With respect to biodiesel blends, as defined in the Use 
24Tax Act, with no less than 1% and no more than 10% biodiesel, 
25the tax imposed by this Act applies to (i) 80% of the selling 
26price of property transferred as an incident to the sale of 
 
 
SB3364- 11 -LRB103 37906 HLH 68038 b


1service on or after July 1, 2003 and on or before December 31, 
22018 and (ii) 100% of the proceeds of the selling price after 
3December 31, 2018 and before January 1, 2024. On and after 
4January 1, 2024 and on or before December 31, 2030, the 
5taxation of biodiesel, renewable diesel, and biodiesel blends 
6shall be as provided in Section 3-5.1 of the Use Tax Act. If, 
7at any time, however, the tax under this Act on sales of 
8biodiesel blends, as defined in the Use Tax Act, with no less 
9than 1% and no more than 10% biodiesel is imposed at the rate 
10of 1.25%, then the tax imposed by this Act applies to 100% of 
11the proceeds of sales of biodiesel blends with no less than 1% 
12and no more than 10% biodiesel made during that time.
13 With respect to biodiesel, as defined in the Use Tax Act, 
14and biodiesel blends, as defined in the Use Tax Act, with more 
15than 10% but no more than 99% biodiesel, the tax imposed by 
16this Act does not apply to the proceeds of the selling price of 
17property transferred as an incident to the sale of service on 
18or after July 1, 2003 and on or before December 31, 2023. On 
19and after January 1, 2024 and on or before December 31, 2030, 
20the taxation of biodiesel, renewable diesel, and biodiesel 
21blends shall be as provided in Section 3-5.1 of the Use Tax 
22Act.
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 
 
 
SB3364- 12 -LRB103 37906 HLH 68038 b


1the case of servicemen transferring prescription drugs or 
2servicemen engaged in graphic arts production, of the 
3aggregate annual total gross receipts from all sales of 
4service, the tax imposed by this Act shall be based on the 
5serviceman's cost price of the tangible personal property 
6transferred as an incident to the sale of those services.
7 Until July 1, 2022 and beginning again on July 1, 2023, the 
8tax shall be imposed at the rate of 1% on food prepared for 
9immediate consumption and transferred incident to a sale of 
10service subject to this Act or the Service Occupation Tax Act 
11by an entity licensed under the Hospital Licensing Act, the 
12Nursing Home Care Act, the Assisted Living and Shared Housing 
13Act, the ID/DD Community Care Act, the MC/DD Act, the 
14Specialized Mental Health Rehabilitation Act of 2013, or the 
15Child Care Act of 1969, or an entity that holds a permit issued 
16pursuant to the Life Care Facilities Act. Until July 1, 2022 
17and beginning again on July 1, 2023, the tax shall also be 
18imposed at the rate of 1% on food for human consumption that is 
19to be consumed off the premises where it is sold (other than 
20alcoholic beverages, food consisting of or infused with adult 
21use cannabis, soft drinks, and food that has been prepared for 
22immediate consumption and is not otherwise included in this 
23paragraph). 
24 Beginning on July 1, 2022 and until July 1, 2023, the tax 
25shall be imposed at the rate of 0% on food prepared for 
26immediate consumption and transferred incident to a sale of 
 
 
SB3364- 13 -LRB103 37906 HLH 68038 b


1service subject to this Act or the Service Occupation Tax Act 
2by an entity licensed under the Hospital Licensing Act, the 
3Nursing Home Care Act, the Assisted Living and Shared Housing 
4Act, the ID/DD Community Care Act, the MC/DD Act, the 
5Specialized Mental Health Rehabilitation Act of 2013, or the 
6Child Care Act of 1969, or an entity that holds a permit issued 
7pursuant to the Life Care Facilities Act. Beginning on July 1, 
82022 and until July 1, 2023, the tax shall also be imposed at 
9the rate of 0% on food for human consumption that is to be 
10consumed off the premises where it is sold (other than 
11alcoholic beverages, food consisting of or infused with adult 
12use cannabis, soft drinks, and food that has been prepared for 
13immediate consumption and is not otherwise included in this 
14paragraph). 
15 The tax shall also be imposed at the rate of 1% on 
16prescription and nonprescription medicines, drugs, medical 
17appliances, products classified as Class III medical devices 
18by the United States Food and Drug Administration that are 
19used for cancer treatment pursuant to a prescription, as well 
20as any accessories and components related to those devices, 
21modifications to a motor vehicle for the purpose of rendering 
22it usable by a person with a disability, and insulin, blood 
23sugar testing materials, syringes, and needles used by human 
24diabetics. For the purposes of this Section, until September 
251, 2009: the term "soft drinks" means any complete, finished, 
26ready-to-use, non-alcoholic drink, whether carbonated or not, 
 
 
SB3364- 14 -LRB103 37906 HLH 68038 b


1including, but not limited to, soda water, cola, fruit juice, 
2vegetable juice, carbonated water, and all other preparations 
3commonly known as soft drinks of whatever kind or description 
4that are contained in any closed or sealed bottle, can, 
5carton, or container, regardless of size; but "soft drinks" 
6does not include coffee, tea, non-carbonated water, infant 
7formula, milk or milk products as defined in the Grade A 
8Pasteurized Milk and Milk Products Act, or drinks containing 
950% or more natural fruit or vegetable juice.
10 Notwithstanding any other provisions of this Act, 
11beginning September 1, 2009, "soft drinks" means non-alcoholic 
12beverages that contain natural or artificial sweeteners. "Soft 
13drinks" does not include beverages that contain milk or milk 
14products, soy, rice or similar milk substitutes, or greater 
15than 50% of vegetable or fruit juice by volume.
16 Until August 1, 2009, and notwithstanding any other 
17provisions of this Act, "food for human consumption that is to 
18be consumed off the premises where it is sold" includes all 
19food sold through a vending machine, except soft drinks and 
20food products that are dispensed hot from a vending machine, 
21regardless of the location of the vending machine. Beginning 
22August 1, 2009, and notwithstanding any other provisions of 
23this Act, "food for human consumption that is to be consumed 
24off the premises where it is sold" includes all food sold 
25through a vending machine, except soft drinks, candy, and food 
26products that are dispensed hot from a vending machine, 
 
 
SB3364- 15 -LRB103 37906 HLH 68038 b


1regardless of the location of the vending machine. 
2 Notwithstanding any other provisions of this Act, 
3beginning September 1, 2009, "food for human consumption that 
4is to be consumed off the premises where it is sold" does not 
5include candy. For purposes of this Section, "candy" means a 
6preparation of sugar, honey, or other natural or artificial 
7sweeteners in combination with chocolate, fruits, nuts or 
8other ingredients or flavorings in the form of bars, drops, or 
9pieces. "Candy" does not include any preparation that contains 
10flour or requires refrigeration. 
11 Notwithstanding any other provisions of this Act, 
12beginning September 1, 2009, "nonprescription medicines and 
13drugs" does not include grooming and hygiene products. For 
14purposes of this Section, "grooming and hygiene products" 
15includes, but is not limited to, soaps and cleaning solutions, 
16shampoo, toothpaste, mouthwash, antiperspirants, and sun tan 
17lotions and screens, unless those products are available by 
18prescription only, regardless of whether the products meet the 
19definition of "over-the-counter-drugs". For the purposes of 
20this paragraph, "over-the-counter-drug" means a drug for human 
21use that contains a label that identifies the product as a drug 
22as required by 21 CFR 201.66. The "over-the-counter-drug" 
23label includes: 
24  (A) a "Drug Facts" panel; or
25  (B) a statement of the "active ingredient(s)" with a 
26 list of those ingredients contained in the compound, 
 
 
SB3364- 16 -LRB103 37906 HLH 68038 b


1 substance or preparation.
2 Beginning on January 1, 2014 (the effective date of Public 
3Act 98-122), "prescription and nonprescription medicines and 
4drugs" includes medical cannabis purchased from a registered 
5dispensing organization under the Compassionate Use of Medical 
6Cannabis Program Act. 
7 As used in this Section, "adult use cannabis" means 
8cannabis subject to tax under the Cannabis Cultivation 
9Privilege Tax Law and the Cannabis Purchaser Excise Tax Law 
10and does not include cannabis subject to tax under the 
11Compassionate Use of Medical Cannabis Program Act. 
12 If the property that is acquired from a serviceman is 
13acquired outside Illinois and used outside Illinois before 
14being brought to Illinois for use here and is taxable under 
15this Act, the "selling price" on which the tax is computed 
16shall be reduced by an amount that represents a reasonable 
17allowance for depreciation for the period of prior 
18out-of-state use.
19(Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 
20102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700, 
21Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23; 
22103-154, eff. 6-30-23.)

23 Section 15. The Service Occupation Tax Act is amended by 
24changing Section 3-10 as follows:

 
 
SB3364- 17 -LRB103 37906 HLH 68038 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 
16produce special order machinery or equipment, the tax imposed 
17by this Act shall be based on the serviceman's cost price of 
18the tangible 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 Beginning 30 days after the effective date of this 
25amendatory Act of the 103rd General Assembly, the tax imposed 
26under this Act on the following items may not exceed the cents 
 
 
SB3364- 18 -LRB103 37906 HLH 68038 b


1per gallon rate established by the Department under subsection 
2(e) of Section 2d of the Retailers' Occupation Tax Act: motor 
3fuel, as defined in Section 1.1 of the Motor Fuel Tax Law; 
4gasohol, as defined in Section 3-40 of the Use Tax Act; 
5majority blended ethanol fuel; and biodiesel and biodiesel 
6blends. With respect to the tax imposed on biodiesel blends 
7and gasohol, the maximum cents per gallon rate shall include 
8the reduction allowed in subsection (e) of Section 2d of the 
9Retailers' Occupation Tax Act. 
10 With respect to gasohol, as defined in the Use Tax Act, the 
11tax imposed by this Act shall apply to (i) 70% of the cost 
12price of property transferred as an incident to the sale of 
13service on or after January 1, 1990, and before July 1, 2003, 
14(ii) 80% of the selling price of property transferred as an 
15incident to the sale of service on or after July 1, 2003 and on 
16or before July 1, 2017, (iii) 100% of the selling price of 
17property transferred as an incident to the sale of service 
18after July 1, 2017 and prior to January 1, 2024, (iv) 90% of 
19the selling price of property transferred as an incident to 
20the sale of service on or after January 1, 2024 and on or 
21before December 31, 2028, and (v) 100% of the selling price of 
22property transferred as an incident to the sale of service 
23after December 31, 2028. If, at any time, however, the tax 
24under this Act on sales of gasohol, as defined in the Use Tax 
25Act, is imposed at the rate of 1.25%, then the tax imposed by 
26this Act applies to 100% of the proceeds of sales of gasohol 
 
 
SB3364- 19 -LRB103 37906 HLH 68038 b


1made during that time.
2 With respect to mid-range ethanol blends, as defined in 
3Section 3-44.3 of the Use Tax Act, the tax imposed by this Act 
4applies to (i) 80% of the selling price of property 
5transferred as an incident to the sale of service on or after 
6January 1, 2024 and on or before December 31, 2028 and (ii) 
7100% of the selling price of property transferred as an 
8incident to the sale of service after December 31, 2028. If, at 
9any time, however, the tax under this Act on sales of mid-range 
10ethanol blends is imposed at the rate of 1.25%, then the tax 
11imposed by this Act applies to 100% of the selling price of 
12mid-range ethanol blends transferred as an incident to the 
13sale of service during that time. 
14 With respect to majority blended ethanol fuel, as defined 
15in the Use Tax Act, the tax imposed by this Act does not apply 
16to the selling price of property transferred as an incident to 
17the sale of service on or after July 1, 2003 and on or before 
18December 31, 2028 but applies to 100% of the selling price 
19thereafter.
20 With respect to biodiesel blends, as defined in the Use 
21Tax Act, with no less than 1% and no more than 10% biodiesel, 
22the tax imposed by this Act applies to (i) 80% of the selling 
23price of property transferred as an incident to the sale of 
24service on or after July 1, 2003 and on or before December 31, 
252018 and (ii) 100% of the proceeds of the selling price after 
26December 31, 2018 and before January 1, 2024. On and after 
 
 
SB3364- 20 -LRB103 37906 HLH 68038 b


1January 1, 2024 and on or before December 31, 2030, the 
2taxation of biodiesel, renewable diesel, and biodiesel blends 
3shall be as provided in Section 3-5.1 of the Use Tax Act. If, 
4at any time, however, the tax under this Act on sales of 
5biodiesel blends, as defined in the Use Tax Act, with no less 
6than 1% and no more than 10% biodiesel is imposed at the rate 
7of 1.25%, then the tax imposed by this Act applies to 100% of 
8the proceeds of sales of biodiesel blends with no less than 1% 
9and no more than 10% biodiesel made during that time.
10 With respect to biodiesel, as defined in the Use Tax Act, 
11and biodiesel blends, as defined in the Use Tax Act, with more 
12than 10% but no more than 99% biodiesel material, the tax 
13imposed by this Act does not apply to the proceeds of the 
14selling price of property transferred as an incident to the 
15sale of service on or after July 1, 2003 and on or before 
16December 31, 2023. On and after January 1, 2024 and on or 
17before December 31, 2030, the taxation of biodiesel, renewable 
18diesel, and biodiesel blends shall be as provided in Section 
193-5.1 of the Use Tax Act.
20 At the election of any registered serviceman made for each 
21fiscal year, sales of service in which the aggregate annual 
22cost price of tangible personal property transferred as an 
23incident to the sales of service is less than 35%, or 75% in 
24the case of servicemen transferring prescription drugs or 
25servicemen engaged in graphic arts production, of the 
26aggregate annual total gross receipts from all sales of 
 
 
SB3364- 21 -LRB103 37906 HLH 68038 b


1service, the tax imposed by this Act shall be based on the 
2serviceman's cost price of the tangible personal property 
3transferred incident to the sale of those services.
4 Until July 1, 2022 and beginning again on July 1, 2023, the 
5tax shall be imposed at the rate of 1% on food prepared for 
6immediate consumption and transferred incident to a sale of 
7service subject to this Act or the Service Use Tax Act by an 
8entity licensed under the Hospital Licensing Act, the Nursing 
9Home Care Act, the Assisted Living and Shared Housing Act, the 
10ID/DD Community Care Act, the MC/DD Act, the Specialized 
11Mental Health Rehabilitation Act of 2013, or the Child Care 
12Act of 1969, or an entity that holds a permit issued pursuant 
13to the Life Care Facilities Act. Until July 1, 2022 and 
14beginning again on July 1, 2023, the tax shall also be imposed 
15at the rate of 1% on food for human consumption that is to be 
16consumed off the premises where it is sold (other than 
17alcoholic beverages, food consisting of or infused with adult 
18use cannabis, soft drinks, and food that has been prepared for 
19immediate consumption and is not otherwise included in this 
20paragraph).
21 Beginning on July 1, 2022 and until July 1, 2023, the tax 
22shall be imposed at the rate of 0% on food prepared for 
23immediate consumption and transferred incident to a sale of 
24service subject to this Act or the Service Use Tax Act by an 
25entity licensed under the Hospital Licensing Act, the Nursing 
26Home Care Act, the Assisted Living and Shared Housing Act, the 
 
 
SB3364- 22 -LRB103 37906 HLH 68038 b


1ID/DD Community Care Act, the MC/DD Act, the Specialized 
2Mental Health Rehabilitation Act of 2013, or the Child Care 
3Act of 1969, or an entity that holds a permit issued pursuant 
4to the Life Care Facilities Act. Beginning July 1, 2022 and 
5until July 1, 2023, the tax shall also be imposed at the rate 
6of 0% on food for human consumption that is to be consumed off 
7the premises where it is sold (other than alcoholic beverages, 
8food consisting of or infused with adult use cannabis, soft 
9drinks, and food that has been prepared for immediate 
10consumption and is not otherwise included in this paragraph). 
11 The tax shall also be imposed at the rate of 1% on 
12prescription and nonprescription medicines, drugs, medical 
13appliances, products classified as Class III medical devices 
14by the United States Food and Drug Administration that are 
15used for cancer treatment pursuant to a prescription, as well 
16as any accessories and components related to those devices, 
17modifications to a motor vehicle for the purpose of rendering 
18it usable by a person with a disability, and insulin, blood 
19sugar testing materials, syringes, and needles used by human 
20diabetics. For the purposes of this Section, until September 
211, 2009: the term "soft drinks" means any complete, finished, 
22ready-to-use, non-alcoholic drink, whether carbonated or not, 
23including, but not limited to, soda water, cola, fruit juice, 
24vegetable juice, carbonated water, and all other preparations 
25commonly known as soft drinks of whatever kind or description 
26that are contained in any closed or sealed can, carton, or 
 
 
SB3364- 23 -LRB103 37906 HLH 68038 b


1container, regardless of size; but "soft drinks" does not 
2include coffee, tea, non-carbonated water, infant formula, 
3milk or milk products as defined in the Grade A Pasteurized 
4Milk and Milk Products Act, or drinks containing 50% or more 
5natural fruit or vegetable juice.
6 Notwithstanding any other provisions of this Act, 
7beginning September 1, 2009, "soft drinks" means non-alcoholic 
8beverages that contain natural or artificial sweeteners. "Soft 
9drinks" does not include beverages that contain milk or milk 
10products, soy, rice or similar milk substitutes, or greater 
11than 50% of vegetable or fruit juice by volume.
12 Until August 1, 2009, and notwithstanding any other 
13provisions of this Act, "food for human consumption that is to 
14be consumed off the premises where it is sold" includes all 
15food sold through a vending machine, except soft drinks and 
16food products that are dispensed hot from a vending machine, 
17regardless of the location of the vending machine. Beginning 
18August 1, 2009, and notwithstanding any other provisions of 
19this Act, "food for human consumption that is to be consumed 
20off the premises where it is sold" includes all food sold 
21through a vending machine, except soft drinks, candy, and food 
22products that are dispensed hot from a vending machine, 
23regardless of the location of the vending machine. 
24 Notwithstanding any other provisions of this Act, 
25beginning September 1, 2009, "food for human consumption that 
26is to be consumed off the premises where it is sold" does not 
 
 
SB3364- 24 -LRB103 37906 HLH 68038 b


1include candy. For purposes of this Section, "candy" means a 
2preparation of sugar, honey, or other natural or artificial 
3sweeteners in combination with chocolate, fruits, nuts or 
4other ingredients or flavorings in the form of bars, drops, or 
5pieces. "Candy" does not include any preparation that contains 
6flour or requires refrigeration. 
7 Notwithstanding any other provisions of this Act, 
8beginning September 1, 2009, "nonprescription medicines and 
9drugs" does not include grooming and hygiene products. For 
10purposes of this Section, "grooming and hygiene products" 
11includes, but is not limited to, soaps and cleaning solutions, 
12shampoo, toothpaste, mouthwash, antiperspirants, and sun tan 
13lotions and screens, unless those products are available by 
14prescription only, regardless of whether the products meet the 
15definition of "over-the-counter-drugs". For the purposes of 
16this paragraph, "over-the-counter-drug" means a drug for human 
17use that contains a label that identifies the product as a drug 
18as required by 21 CFR 201.66. The "over-the-counter-drug" 
19label includes: 
20  (A) a "Drug Facts" panel; or
21  (B) a statement of the "active ingredient(s)" with a 
22 list of those ingredients contained in the compound, 
23 substance or preparation.
24 Beginning on January 1, 2014 (the effective date of Public 
25Act 98-122), "prescription and nonprescription medicines and 
26drugs" includes medical cannabis purchased from a registered 
 
 
SB3364- 25 -LRB103 37906 HLH 68038 b


1dispensing organization under the Compassionate Use of Medical 
2Cannabis Program Act. 
3 As used in this Section, "adult use cannabis" means 
4cannabis subject to tax under the Cannabis Cultivation 
5Privilege Tax Law and the Cannabis Purchaser Excise Tax Law 
6and does not include cannabis subject to tax under the 
7Compassionate Use of Medical Cannabis Program Act. 
8(Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 
9102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700, 
10Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23; 
11103-154, eff. 6-30-23.)

12 Section 20. The Retailers' Occupation Tax Act is amended 
13by changing Sections 2-10 and 2d as follows:

14 (35 ILCS 120/2-10)
15 Sec. 2-10. Rate of tax. Unless otherwise provided in this 
16Section, the tax imposed by this Act is at the rate of 6.25% of 
17gross receipts from sales of tangible personal property made 
18in the course of business.
19 Beginning on July 1, 2000 and through December 31, 2000, 
20with respect to motor fuel, as defined in Section 1.1 of the 
21Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of 
22the Use Tax Act, the tax is imposed at the rate of 1.25%.
23 Beginning 30 days after the effective date of this 
24amendatory Act of the 103rd General Assembly, the tax imposed 
 
 
SB3364- 26 -LRB103 37906 HLH 68038 b


1under this Act on the following items may not exceed the cents 
2per gallon rate established by the Department under subsection 
3(e) of Section 2d of this Act: motor fuel, as defined in 
4Section 1.1 of the Motor Fuel Tax Law; gasohol, as defined in 
5Section 3-40 of the Use Tax Act; majority blended ethanol 
6fuel; and biodiesel and biodiesel blends. With respect to the 
7tax imposed on biodiesel blends and gasohol, the maximum cents 
8per gallon rate shall include the reduction allowed in 
9subsection (e) of Section 2d. 
10 Beginning on August 6, 2010 through August 15, 2010, and 
11beginning again on August 5, 2022 through August 14, 2022, 
12with respect to sales tax holiday items as defined in Section 
132-8 of this Act, the tax is imposed at the rate of 1.25%. 
14 Within 14 days after July 1, 2000 (the effective date of 
15Public Act 91-872), each retailer of motor fuel and gasohol 
16shall cause the following notice to be posted in a prominently 
17visible place on each retail dispensing device that is used to 
18dispense motor fuel or gasohol in the State of Illinois: "As of 
19July 1, 2000, the State of Illinois has eliminated the State's 
20share of sales tax on motor fuel and gasohol through December 
2131, 2000. The price on this pump should reflect the 
22elimination of the tax." The notice shall be printed in bold 
23print on a sign that is no smaller than 4 inches by 8 inches. 
24The sign shall be clearly visible to customers. Any retailer 
25who fails to post or maintain a required sign through December 
2631, 2000 is guilty of a petty offense for which the fine shall 
 
 
SB3364- 27 -LRB103 37906 HLH 68038 b


1be $500 per day per each retail premises where a violation 
2occurs.
3 With respect to gasohol, as defined in the Use Tax Act, the 
4tax imposed by this Act applies to (i) 70% of the proceeds of 
5sales made on or after January 1, 1990, and before July 1, 
62003, (ii) 80% of the proceeds of sales made on or after July 
71, 2003 and on or before July 1, 2017, (iii) 100% of the 
8proceeds of sales made after July 1, 2017 and prior to January 
91, 2024, (iv) 90% of the proceeds of sales made on or after 
10January 1, 2024 and on or before December 31, 2028, and (v) 
11100% of the proceeds of sales made after December 31, 2028. If, 
12at any time, however, the tax under this Act on sales of 
13gasohol, as defined in the Use Tax Act, is imposed at the rate 
14of 1.25%, then the tax imposed by this Act applies to 100% of 
15the proceeds of sales of gasohol made during that time.
16 With respect to mid-range ethanol blends, as defined in 
17Section 3-44.3 of the Use Tax Act, the tax imposed by this Act 
18applies to (i) 80% of the proceeds of sales made on or after 
19January 1, 2024 and on or before December 31, 2028 and (ii) 
20100% of the proceeds of sales made after December 31, 2028. If, 
21at any time, however, the tax under this Act on sales of 
22mid-range ethanol blends is imposed at the rate of 1.25%, then 
23the tax imposed by this Act applies to 100% of the proceeds of 
24sales of mid-range ethanol blends made during that time. 
25 With respect to majority blended ethanol fuel, as defined 
26in the Use Tax Act, the tax imposed by this Act does not apply 
 
 
SB3364- 28 -LRB103 37906 HLH 68038 b


1to the proceeds of sales made on or after July 1, 2003 and on 
2or before December 31, 2028 but applies to 100% of the proceeds 
3of sales made thereafter.
4 With respect to biodiesel blends, as defined in the Use 
5Tax Act, with no less than 1% and no more than 10% biodiesel, 
6the tax imposed by this Act applies to (i) 80% of the proceeds 
7of sales made on or after July 1, 2003 and on or before 
8December 31, 2018 and (ii) 100% of the proceeds of sales made 
9after December 31, 2018 and before January 1, 2024. On and 
10after January 1, 2024 and on or before December 31, 2030, the 
11taxation of biodiesel, renewable diesel, and biodiesel blends 
12shall be as provided in Section 3-5.1 of the Use Tax Act. If, 
13at any time, however, the tax under this Act on sales of 
14biodiesel blends, as defined in the Use Tax Act, with no less 
15than 1% and no more than 10% biodiesel is imposed at the rate 
16of 1.25%, then the tax imposed by this Act applies to 100% of 
17the proceeds of sales of biodiesel blends with no less than 1% 
18and no more than 10% biodiesel made during that time.
19 With respect to biodiesel, as defined in the Use Tax Act, 
20and biodiesel blends, as defined in the Use Tax Act, with more 
21than 10% but no more than 99% biodiesel, the tax imposed by 
22this Act does not apply to the proceeds of sales made on or 
23after July 1, 2003 and on or before December 31, 2023. On and 
24after January 1, 2024 and on or before December 31, 2030, the 
25taxation of biodiesel, renewable diesel, and biodiesel blends 
26shall be as provided in Section 3-5.1 of the Use Tax Act. 
 
 
SB3364- 29 -LRB103 37906 HLH 68038 b


1 Until July 1, 2022 and beginning again on July 1, 2023, 
2with respect to food for human consumption that is to be 
3consumed off the premises where it is sold (other than 
4alcoholic beverages, food consisting of or infused with adult 
5use cannabis, soft drinks, and food that has been prepared for 
6immediate consumption), the tax is imposed at the rate of 1%. 
7Beginning July 1, 2022 and until July 1, 2023, with respect to 
8food for human consumption that is to be consumed off the 
9premises where it is sold (other than alcoholic beverages, 
10food consisting of or infused with adult use cannabis, soft 
11drinks, and food that has been prepared for immediate 
12consumption), the tax is imposed at the rate of 0%. 
13 With respect to prescription and nonprescription 
14medicines, drugs, medical appliances, products classified as 
15Class III medical devices by the United States Food and Drug 
16Administration that are used for cancer treatment pursuant to 
17a prescription, as well as any accessories and components 
18related to those devices, modifications to a motor vehicle for 
19the purpose of rendering it usable by a person with a 
20disability, and insulin, blood sugar testing materials, 
21syringes, and needles used by human diabetics, the tax is 
22imposed at the rate of 1%. For the purposes of this Section, 
23until September 1, 2009: the term "soft drinks" means any 
24complete, finished, ready-to-use, non-alcoholic drink, whether 
25carbonated or not, including, but not limited to, soda water, 
26cola, fruit juice, vegetable juice, carbonated water, and all 
 
 
SB3364- 30 -LRB103 37906 HLH 68038 b


1other preparations commonly known as soft drinks of whatever 
2kind or description that are contained in any closed or sealed 
3bottle, can, carton, or container, regardless of size; but 
4"soft drinks" does not include coffee, tea, non-carbonated 
5water, infant formula, milk or milk products as defined in the 
6Grade A Pasteurized Milk and Milk Products Act, or drinks 
7containing 50% or more natural fruit or vegetable juice.
8 Notwithstanding any other provisions of this Act, 
9beginning September 1, 2009, "soft drinks" means non-alcoholic 
10beverages that contain natural or artificial sweeteners. "Soft 
11drinks" does not include beverages that contain milk or milk 
12products, soy, rice or similar milk substitutes, or greater 
13than 50% of vegetable or fruit juice by volume.
14 Until August 1, 2009, and notwithstanding any other 
15provisions of this Act, "food for human consumption that is to 
16be consumed off the premises where it is sold" includes all 
17food sold through a vending machine, except soft drinks and 
18food products that are dispensed hot from a vending machine, 
19regardless of the location of the vending machine. Beginning 
20August 1, 2009, and notwithstanding any other provisions of 
21this Act, "food for human consumption that is to be consumed 
22off the premises where it is sold" includes all food sold 
23through a vending machine, except soft drinks, candy, and food 
24products that are dispensed hot from a vending machine, 
25regardless of the location of the vending machine. 
26 Notwithstanding any other provisions of this Act, 
 
 
SB3364- 31 -LRB103 37906 HLH 68038 b


1beginning September 1, 2009, "food for human consumption that 
2is to be consumed off the premises where it is sold" does not 
3include candy. For purposes of this Section, "candy" means a 
4preparation of sugar, honey, or other natural or artificial 
5sweeteners in combination with chocolate, fruits, nuts or 
6other ingredients or flavorings in the form of bars, drops, or 
7pieces. "Candy" does not include any preparation that contains 
8flour or requires refrigeration. 
9 Notwithstanding any other provisions of this Act, 
10beginning September 1, 2009, "nonprescription medicines and 
11drugs" does not include grooming and hygiene products. For 
12purposes of this Section, "grooming and hygiene products" 
13includes, but is not limited to, soaps and cleaning solutions, 
14shampoo, toothpaste, mouthwash, antiperspirants, and sun tan 
15lotions and screens, unless those products are available by 
16prescription only, regardless of whether the products meet the 
17definition of "over-the-counter-drugs". For the purposes of 
18this paragraph, "over-the-counter-drug" means a drug for human 
19use that contains a label that identifies the product as a drug 
20as required by 21 CFR 201.66. The "over-the-counter-drug" 
21label includes: 
22  (A) a "Drug Facts" panel; or
23  (B) a statement of the "active ingredient(s)" with a 
24 list of those ingredients contained in the compound, 
25 substance or preparation.
26 Beginning on January 1, 2014 (the effective date of Public 
 
 
SB3364- 32 -LRB103 37906 HLH 68038 b


1Act 98-122), "prescription and nonprescription medicines and 
2drugs" includes medical cannabis purchased from a registered 
3dispensing organization under the Compassionate Use of Medical 
4Cannabis Program Act. 
5 As used in this Section, "adult use cannabis" means 
6cannabis subject to tax under the Cannabis Cultivation 
7Privilege Tax Law and the Cannabis Purchaser Excise Tax Law 
8and does not include cannabis subject to tax under the 
9Compassionate Use of Medical Cannabis Program Act. 
10(Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20, 
11Section 20-20, eff. 4-19-22; 102-700, Article 60, Section 
1260-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff. 
134-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.)

14 (35 ILCS 120/2d) (from Ch. 120, par. 441d)
15 Sec. 2d. Tax prepayment by motor fuel retailer.  
16 (a) Any person engaged in the business of selling motor 
17fuel at retail, as defined in the Motor Fuel Tax Law, and who 
18is not a licensed distributor or supplier, as defined in the 
19Motor Fuel Tax Law, shall prepay to his or her distributor, 
20supplier, or other reseller of motor fuel a portion of the tax 
21imposed by this Act if the distributor, supplier, or other 
22reseller of motor fuel is registered under Section 2a or 
23Section 2c of this Act. The prepayment requirement provided 
24for in this Section does not apply to liquid propane gas.
25 (b) Beginning on July 1, 2000 and through December 31, 
 
 
SB3364- 33 -LRB103 37906 HLH 68038 b


12000, the Retailers' Occupation Tax paid to the distributor, 
2supplier, or other reseller shall be an amount equal to $0.01 
3per gallon of the motor fuel, except gasohol as defined in 
4Section 2-10 of this Act which shall be an amount equal to 
5$0.01 per gallon, purchased from the distributor, supplier, or 
6other reseller.
7 (c) Before July 1, 2000 and then beginning on January 1, 
82001 and through June 30, 2003, the Retailers' Occupation Tax 
9paid to the distributor, supplier, or other reseller shall be 
10an amount equal to $0.04 per gallon of the motor fuel, except 
11gasohol as defined in Section 2-10 of this Act which shall be 
12an amount equal to $0.03 per gallon, purchased from the 
13distributor, supplier, or other reseller.
14 (d) Beginning July 1, 2003 and through December 31, 2010, 
15the Retailers' Occupation Tax paid to the distributor, 
16supplier, or other reseller shall be an amount equal to $0.06 
17per gallon of the motor fuel, except gasohol as defined in 
18Section 2-10 of this Act which shall be an amount equal to 
19$0.05 per gallon, purchased from the distributor, supplier, or 
20other reseller.
21 (e) Beginning on January 1, 2011 and thereafter, the 
22Retailers' Occupation Tax paid to the distributor, supplier, 
23or other reseller shall be at the rate established by the 
24Department under this subsection. The rate shall be 
25established by the Department on January 1 and July 1 of each 
26year using the average selling price, as defined in Section 1 
 
 
SB3364- 34 -LRB103 37906 HLH 68038 b


1of this Act, per gallon of motor fuel sold in the State during 
2the previous 6 months and multiplying that amount by 6.25% to 
3determine the cents per gallon rate. Beginning 30 days after 
4the effective date of this amendatory Act of the 103rd General 
5Assembly, the cents per gallon rate established by the 
6Department for motor fuel under this subsection may not exceed 
7$0.18 per gallon. Beginning on January 1, 2024 and through 
8December 31, 2028, in the case of gasohol, as defined in 
9Section 3-40 of the Use Tax Act, the rate shall be 90% of the 
10rate established by the Department under this subsection for 
11motor fuel. Beginning on January 1, 2024 and through December 
1231, 2028, in the case of mid-range ethanol blends, as defined 
13in Section 3-44.3 of the Use Tax Act, the rate shall be 80% of 
14the rate established by the Department under this subsection 
15for motor fuel. The Department shall provide persons subject 
16to this Section notice of the rate established under this 
17subsection at least 20 days prior to each January 1 and July 1. 
18The Department shall provide persons subject to this Section 
19notice of the rate change required by this amendatory Act of 
20the 103rd General Assembly at least 20 days prior to the date 
21on which that change takes effect. Publication of the 
22established rate on the Department's internet website shall 
23constitute sufficient notice under this Section. The 
24Department may use data derived from independent surveys 
25conducted or accumulated by third parties to determine the 
26average selling price per gallon of motor fuel sold in the 
 
 
SB3364- 35 -LRB103 37906 HLH 68038 b


1State. 
2 (f) Any person engaged in the business of selling motor 
3fuel at retail shall be entitled to a credit against tax due 
4under this Act in an amount equal to the tax paid to the 
5distributor, supplier, or other reseller.
6 (g) Every distributor, supplier, or other reseller 
7registered as provided in Section 2a or Section 2c of this Act 
8shall remit the prepaid tax on all motor fuel that is due from 
9any person engaged in the business of selling at retail motor 
10fuel with the returns filed under Section 2f or Section 3 of 
11this Act, but the vendors discount provided in Section 3 shall 
12not apply to the amount of prepaid tax that is remitted. Any 
13distributor or supplier who fails to properly collect and 
14remit the tax shall be liable for the tax. For purposes of this 
15Section, the prepaid tax is due on invoiced gallons sold 
16during a month by the 20th day of the following month.
17(Source: P.A. 103-9, eff. 6-7-23.)