On July 14, 2009, Gov. Pat Quinn (D) signed into law amendments to the Illinois sales and use tax laws1 that, among other changes, incorporate the definitions of "candy" and "soft drinks" from the Streamlined Sales and Use Tax Agreement (SSUTA) into Illinois' sales and use tax laws, effective Aug. 1, 2009. These amendments, by themselves, are insufficient to bring the Illinois sales and use tax laws into substantial compliance with the SSUTA. However, the amendments will result in a five-fold tax rate difference between products that are classified as "candy" and "soft drinks" under the SSUTA definitions, and other products that would commonly be understood to be "candy" and "soft drinks" that will fall outside of the new definitions. This rate differential may be subject to challenge under the Uniformity Clause of the Illinois Constitution.
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