Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart A - NATURE OF TAX › Section 140.126 - Taxation of Food, Drugs and Medical Appliances

Current through Register Vol. 48, No. 28, July 12, 2024
a) Food for human consumption which is sold
				or transferred by a serviceman as an incident to a sale of service is generally
				subject to the high rate of tax (6.25 %) if it is prepared for
				immediate consumption or is sold for consumption on the premises of the sale.
				However, effective January 1, 1993, except for the period beginning July 1,
				2022 and until July 1, 2023 as provided in Section
				140.101(b)(1)(D),
				food prepared for immediate consumption and transferred incident to a sale of
				service by an entity licensed under the Hospital Licensing Act or the Nursing
				Home Care Act shall be subject to tax at the rate of 1%. In addition, effective
				August 13, 1999, except for the period beginning July 1, 2022 and until July 1,
				2023 as provided in Section
				140.101(b)(1)(D),
				the 1% rate applies to food prepared for immediate consumption and transferred
				incident to a sale of service by an entity licensed under the Child Care Act of
				1969. Effective July 1, 2010 and through December 31, 2011, the 1% rate shall
				also apply to food prepared for immediate consumption and transferred incident
				to a sale of service by an entity licensed under the MR/DD Community Care Act.
				Effective January 1, 2012, except for the period beginning July 1, 2022 and
				until July 1, 2023 as provided in Section
				140.101(b)(1)(D),
				the 1% rate shall also apply to food prepared for immediate consumption and
				transferred incident to a sale of service by an entity licensed under the ID/DD
				Community Care Act. Effective June 28, 2011, except for the period beginning
				July 1, 2022 and until July 1, 2023 as provided in Section
				140.101(b)(1)(D),
				the 1% rate shall also apply to food prepared for immediate consumption and
				transferred incident to a sale of service by an entity licensed under the
				Specialized Mental Health Rehabilitation Act of 2013. Effective July 29, 2015,
				except for the period beginning July 1, 2022 and until July 1, 2023 as provided
				in Section 140.101(b)(1)(D),
				the 1% rate shall also apply to food prepared for immediate consumption and
				transferred incident to a sale of service by an entity licensed under the MC/DD
				Act. Effective June 17, 2021, except for the period beginning July 1, 2022 and
				until July 1, 2023 as provided in Section
				140.101(b)(1)(D),
				the 1% rate shall also apply to food prepared for immediate consumption and
				transferred incident to a sale of service by an entity licensed under the
				Assisted Living and Shared Housing Act or an entity that holds a permit issued
				pursuant to the Life Care Facilities Act. (See Section 3-10 of the
				Act)
b) Food for human consumption
				off the premises where sold, medicines, drugs and medical appliances.
1)
The tax shall also be imposed at
				the rate of 1% on food for human consumption that is to be consumed off the
				premises where it is sold (other than alcoholic beverages, food consisting of
				or infused with adult use cannabis, soft drinks,
candy,
and
				food that has been prepared for immediate consumption and is not otherwise
				included in
subsection (a). For purposes of this subsection, the
				provisions of 86 Ill. Adm. Code
				130.310 are effective as if
				fully set forth in this subsection (b)(1).
2)
The tax shall be imposed at the
				rate of 1% on prescription and nonprescription medicines, drugs, medical
				appliances, products classified as Class III medical devices by the United
				States Food and Drug Administration that are used for cancer treatment pursuant
				to a prescription, as well as any accessories and components related to those
				devices, modifications to a motor vehicle for the purpose of rendering it
				usable by a person with a disability, and insulin, blood sugar testing
				materials, syringes, and needles used by human diabetics.
For purposes
				of this subsection, the provisions of 86 Ill. Adm. Code
				130.311 are effective as if
				fully set forth in this subsection (b)(2). (Section 3-10 of the
				Act)
.