Illinois Beverage Tax
3/10/15
From John Gordon, Chairman ICBV – Illinois Beverage Tax
As most of you probably know by now senate bill 1584 has been introduced by Senator Mattie Hunter. It is also been introduced in the Illinois House as HB2667, which has already been assigned to a committee which is supposed to have its first hearing on Thursday March 12, 2015 in Springfield. This proposed legislation will increase the taxes on all sugar sweetened beverages by one cent per ounce above and beyond what you already pay.
This will be handled much the same as the bottled water tax that you pay in Chicago in that the distributor will pay the taxes and then pass that cost on to you. What this will mean to each of you is an additional $4.80 per case tax on 20 ounce sugar sweetened beverages.
Illinois expects to generate approximately 600 million dollars per year to help fight obesity. If this was truly the case I am sure they would just outlaw the sale of these beverages, however it is nothing more than a revenue generating machine much like red light cameras. This legislation would not only have a negative impact on our businesses but would be a tax assessed on all consumers of soft drinks in Illinois.
We are not positive yet on whether this bill will absolutely be called on Thursday by the Sales and Other Taxes Subcommittee and/or the Revenue & Finance Committee but if you are able I would encourage you to attend and make your voice heard. Minimally I am requesting that all of you contact your state senators and representatives and find out whether or not they will support this legislation, please let them know how this legislation would negatively impact your business and have your family and friends do the same thing.
Please share this information with anyone that you come in contact with, especially vendors that may not be on e-mail. If you are not sure who your state senator is please call 217-782-2000 and they will direct you. Copies of these bills are below.
Bill Status of HB2667 99th General Assembly
Short Description: HEAL ACT-BEVERAGES
Statutes Amended In Order of Appearance
New Act
35 ILCS 1010/1-45
30 ILCS 105/5.866 new
House Sponsors
Rep. Robyn Gabel – Esther Golar – Elizabeth Hernandez, Linda Chapa LaVia and Ann Williams
Hearings
Sales and Other Taxes Subcommittee Hearing Mar 12 2015 9:45AM Capitol Building Room 118 Springfield, IL
Revenue & Finance Committee Hearing Mar 12 2015 9:30AM Capitol Building Room 118 Springfield, IL
Synopsis As Introduced
Creates the Healthy Eating Active Living (HEAL) Act. Imposes a tax on distributors of bottled sugar-sweetened beverages, syrups, or powders at the rate of $0.01 per ounce of bottled sugar-sweetened beverages sold or offered for sale to a retailer for sale in the State to a consumer. Requires those distributors to obtain permits. Provides that 2% of the moneys shall be deposited into the Tax Compliance and Administration Fund for the administrative costs of the Department of Revenue, and 98% of the moneys shall be deposited into the Illinois Wellness Fund to be used for wellness programs and for expanded obesity prevention and treatment services for Medicaid beneficiaries. Creates an Advisory Council to govern the distribution of Illinois Wellness Fund moneys. Effective July 1, 2015.
Bill Status of SB1584 99th General Assembly
Short Description: HEAL ACT-BEVERAGES
Statutes Amended In Order of Appearance
New Act
35 ILCS 1010/1-45
30 ILCS 105/5.866 new
Senate Sponsors
Sen. Mattie Hunter – Jacqueline Y. Collins, Ira I. Silverstein and William Delgado
Synopsis As Introduced
Creates the Healthy Eating Active Living (HEAL) Act. Imposes a tax on distributors of bottled sugar-sweetened beverages, syrups, or powders at the rate of $0.01 per ounce of bottled sugar-sweetened beverages sold or offered for sale to a retailer for sale in the State to a consumer. Requires those distributors to obtain permits. Provides that 2% of the moneys shall be deposited into the Tax Compliance and Administration Fund for the administrative costs of the Department of Revenue, and 98% of the moneys shall be deposited into the Illinois Wellness Fund to be used for wellness programs and for expanded obesity prevention and treatment services for Medicaid beneficiaries. Creates an Advisory Council to govern the distribution of Illinois Wellness Fund moneys. Effective July 1, 2015.