235 ILCS 5/8-1
2021 Illinois Compiled Statutes|Chapter 235 - LIQUOR|235 ILCS 5/ - Liquor Control Act of 1934.|Article VIII - Taxation Of Liquor

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, 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 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  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 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.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.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.)