State Sen. Martin Sandoval, D-Chicago, is behind Senate Bill 61 to reduce the sales tax and diapers and baby wipes.
The Senate Democratic Staff news release explains:
Illinois currently has two sales tax rates; a general merchandise rate of 6.25 percent and a food and drug rate of 1 percent. Sandoval is pushing for diapers and wipes to be added to the 1 percent (rate now assesed on purchases of) groceries, medicine, and certain other medical products…
Makes sense to me, if the rationale is to charge the lower tax rate on necessities.
You can see how tough it is to figure out these exemptions by looking at a passage from the state law to be amended:
With respect to food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances, modifications to a motor vehicle for the purpose of rendering it usable by a disabled person, (ADDING: diapers, baby wipes), and insulin, urine testing materials, syringes, and needles used by diabetics, for human use, the tax is imposed at the rate of 1%.
For the purposes of this Section, until September 1, 2009: the term “soft drinks” means any complete, finished, ready-to-use, non-alcoholic drink, whether carbonated or not, including but not limited to soda water, cola, fruit juice, vegetable juice, carbonated water, and all other preparations commonly known as soft drinks of whatever kind or description that are contained in any closed or sealed bottle, can, carton, or container, regardless of size; but “soft drinks” does not include coffee, tea, non-carbonated water, infant formula, milk or milk products as defined in the Grade A Pasteurized Milk and Milk Products Act, or drinks containing 50% or more natural fruit or vegetable juice.
Notwithstanding any other provisions of this Act, beginning September 1, 2009, “soft drinks” means non-alcoholic beverages that contain natural or artificial sweeteners. “Soft drinks” do not include beverages that contain milk or milk products, soy, rice or similar milk substitutes, or greater than 50% of vegetable or fruit juice by volume.
Until August 1, 2009, and notwithstanding any other provisions of this Act, “food for human consumption that is to be consumed off the premises where it is sold” includes all food sold through a vending machine, except soft drinks and food products that are dispensed hot from a vending machine, regardless of the location of the vending machine.
Beginning August 1, 2009, and notwithstanding any other provisions of this Act, “food for human consumption that is to be consumed off the premises where it is sold” includes all food sold through a vending machine, except soft drinks, candy, and food products that are dispensed hot from a vending machine, regardless of the location of the vending machine.
Notwithstanding any other provisions of this Act, beginning September 1, 2009, “food for human consumption that is to be consumed off the premises where it is sold” does not include candy.
For purposes of this Section, “candy” means a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts or other ingredients or flavorings in the form of bars, drops, or pieces. “Candy” does not include any preparation that contains flour or requires refrigeration.
Notwithstanding any other provisions of this Act, beginning September 1, 2009, “nonprescription medicines and drugs” does not include grooming and hygiene products. For purposes of this Section, “grooming and hygiene products” includes, but is not limited to, soaps and cleaning solutions, shampoo, toothpaste, mouthwash, antiperspirants, and sun tan lotions and screens, unless those products are available by prescription only, regardless of whether the products meet the definition of “over-the-counter-drugs”.
For the purposes of this paragraph, “over-the-counter-drug” means a drug for human use that contains a label that identifies the product as a drug as required by 21 C.F.R. 201.66. The “over-the-counter-drug” label includes: (A) A “Drug Facts” panel; or (B) A statement of the “active ingredient(s)” with a list of those ingredients contained in the compound, substance or preparation.
