093_HB2948

 
                                     LRB093 06821 SJM 06966 b

 1        AN ACT in relation to taxes.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The  Use  Tax  Act  is  amended  by  changing
 5    Section 3-5 as follows:

 6        (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
 7        Sec.  3-5.   Exemptions.   Use  of the following tangible
 8    personal property is exempt from the tax imposed by this Act:
 9        (1)  Personal  property  purchased  from  a  corporation,
10    society,    association,    foundation,    institution,    or
11    organization, other than a limited liability company, that is
12    organized and operated as a not-for-profit service enterprise
13    for the benefit of persons 65 years of age or  older  if  the
14    personal property was not purchased by the enterprise for the
15    purpose of resale by the enterprise.
16        (2)  Personal  property  purchased  by  a  not-for-profit
17    Illinois  county  fair  association  for  use  in conducting,
18    operating, or promoting the county fair.
19        (3)  Personal property purchased by a not-for-profit arts
20    or cultural organization that establishes, by proof  required
21    by  the Department by rule, that it has received an exemption
22    under Section 501(c)(3) of the Internal Revenue Code and that
23    is organized and operated primarily for the  presentation  or
24    support  of  arts  or  cultural  programming,  activities, or
25    services.  These organizations include, but are  not  limited
26    to,  music  and  dramatic arts organizations such as symphony
27    orchestras and theatrical groups, arts and  cultural  service
28    organizations,    local    arts    councils,    visual   arts
29    organizations, and media arts organizations. On and after the
30    effective date of this amendatory Act  of  the  92nd  General
31    Assembly,  however,  an  entity  otherwise  eligible for this
 
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 1    exemption shall not make tax-free purchases unless it has  an
 2    active identification number issued by the Department.
 3        (4)  Personal  property purchased by a governmental body,
 4    by  a  corporation,  society,  association,  foundation,   or
 5    institution    organized   and   operated   exclusively   for
 6    charitable, religious,  or  educational  purposes,  or  by  a
 7    not-for-profit corporation, society, association, foundation,
 8    institution, or organization that has no compensated officers
 9    or employees and that is organized and operated primarily for
10    the recreation of persons 55 years of age or older. A limited
11    liability  company  may  qualify for the exemption under this
12    paragraph only if the limited liability company is  organized
13    and  operated  exclusively  for  educational purposes. On and
14    after July 1, 1987, however, no entity otherwise eligible for
15    this exemption shall make tax-free purchases unless it has an
16    active  exemption  identification  number   issued   by   the
17    Department.
18        (5)  A passenger car that is a replacement vehicle to the
19    extent  that  the purchase price of the car is subject to the
20    Replacement Vehicle Tax.
21        (6)  Graphic  arts  machinery  and  equipment,  including
22    repair  and  replacement  parts,  both  new  and  used,   and
23    including  that  manufactured  on special order, certified by
24    the  purchaser  to  be  used  primarily  for   graphic   arts
25    production,  and  including machinery and equipment purchased
26    for lease.  Equipment includes chemicals or chemicals  acting
27    as catalysts but only if the chemicals or chemicals acting as
28    catalysts effect a direct and immediate change upon a graphic
29    arts product.
30        (7)  Farm chemicals.
31        (8)  Legal  tender,  currency,  medallions,  or  gold  or
32    silver   coinage   issued  by  the  State  of  Illinois,  the
33    government of the United States of America, or the government
34    of any foreign country, and bullion.
 
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 1        (9)  Personal property purchased from a teacher-sponsored
 2    student  organization  affiliated  with  an   elementary   or
 3    secondary school located in Illinois.
 4        (10)  A  motor  vehicle  of  the  first division, a motor
 5    vehicle of the second division that is a self-contained motor
 6    vehicle designed or permanently converted to  provide  living
 7    quarters  for  recreational,  camping,  or  travel  use, with
 8    direct walk through to the living quarters from the  driver's
 9    seat,  or  a  motor vehicle of the second division that is of
10    the van configuration designed for the transportation of  not
11    less  than  7  nor  more  than  16  passengers, as defined in
12    Section 1-146 of the Illinois Vehicle Code, that is used  for
13    automobile  renting,  as  defined  in  the Automobile Renting
14    Occupation and Use Tax Act.
15        (11)  Farm machinery and equipment, both  new  and  used,
16    including  that  manufactured  on special order, certified by
17    the purchaser to be used primarily for production agriculture
18    or  State  or  federal   agricultural   programs,   including
19    individual replacement parts for the machinery and equipment,
20    including  machinery  and  equipment purchased for lease, and
21    including implements of husbandry defined in Section 1-130 of
22    the Illinois Vehicle Code, farm  machinery  and  agricultural
23    chemical  and fertilizer spreaders, and nurse wagons required
24    to be registered under Section 3-809 of the Illinois  Vehicle
25    Code,  but  excluding  other  motor  vehicles  required to be
26    registered under the  Illinois  Vehicle  Code.  Horticultural
27    polyhouses  or  hoop houses used for propagating, growing, or
28    overwintering plants shall be considered farm  machinery  and
29    equipment  under this item (11). Agricultural chemical tender
30    tanks and dry boxes shall include units sold separately  from
31    a  motor  vehicle  required  to  be  licensed  and units sold
32    mounted on a motor vehicle required to  be  licensed  if  the
33    selling price of the tender is separately stated.
34        Farm  machinery  and  equipment  shall  include precision
 
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 1    farming equipment  that  is  installed  or  purchased  to  be
 2    installed  on farm machinery and equipment including, but not
 3    limited  to,  tractors,   harvesters,   sprayers,   planters,
 4    seeders,  or spreaders. Precision farming equipment includes,
 5    but is not  limited  to,  soil  testing  sensors,  computers,
 6    monitors,  software,  global positioning and mapping systems,
 7    and other such equipment.
 8        Farm machinery and  equipment  also  includes  computers,
 9    sensors,  software,  and  related equipment used primarily in
10    the computer-assisted  operation  of  production  agriculture
11    facilities,  equipment,  and  activities  such  as,  but  not
12    limited  to,  the  collection, monitoring, and correlation of
13    animal and crop data for the purpose  of  formulating  animal
14    diets  and  agricultural chemicals.  This item (11) is exempt
15    from the provisions of Section 3-90.
16        (12)  Fuel and petroleum products sold to or used  by  an
17    air  common  carrier, certified by the carrier to be used for
18    consumption, shipment, or  storage  in  the  conduct  of  its
19    business  as an air common carrier, for a flight destined for
20    or returning from a location or locations outside the  United
21    States  without  regard  to  previous  or subsequent domestic
22    stopovers.
23        (13)  Proceeds of mandatory  service  charges  separately
24    stated  on  customers' bills for the purchase and consumption
25    of food and beverages purchased at retail from a retailer, to
26    the extent that the proceeds of the  service  charge  are  in
27    fact  turned  over as tips or as a substitute for tips to the
28    employees who participate  directly  in  preparing,  serving,
29    hosting  or  cleaning  up  the food or beverage function with
30    respect to which the service charge is imposed.
31        (14)  Oil field  exploration,  drilling,  and  production
32    equipment, including (i) rigs and parts of rigs, rotary rigs,
33    cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
34    goods, including casing and drill strings,  (iii)  pumps  and
 
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 1    pump-jack  units,  (iv) storage tanks and flow lines, (v) any
 2    individual  replacement  part  for  oil  field   exploration,
 3    drilling,  and  production  equipment, and (vi) machinery and
 4    equipment purchased for lease; but excluding  motor  vehicles
 5    required to be registered under the Illinois Vehicle Code.
 6        (15)  Photoprocessing  machinery and equipment, including
 7    repair and replacement parts, both new  and  used,  including
 8    that   manufactured   on  special  order,  certified  by  the
 9    purchaser to  be  used  primarily  for  photoprocessing,  and
10    including  photoprocessing  machinery and equipment purchased
11    for lease.
12        (16)  Coal  exploration,  mining,   offhighway   hauling,
13    processing, maintenance, and reclamation equipment, including
14    replacement  parts  and  equipment,  and  including equipment
15    purchased for lease, but excluding motor vehicles required to
16    be registered under the Illinois Vehicle Code.
17        (17)  Distillation machinery and  equipment,  sold  as  a
18    unit   or  kit,  assembled  or  installed  by  the  retailer,
19    certified by the user to be used only for the  production  of
20    ethyl alcohol that will be used for consumption as motor fuel
21    or  as  a component of motor fuel for the personal use of the
22    user, and not subject to sale or resale.
23        (18)  Manufacturing   and   assembling   machinery    and
24    equipment  used  primarily in the process of manufacturing or
25    assembling tangible personal property for wholesale or retail
26    sale or lease, whether that sale or lease is made directly by
27    the  manufacturer  or  by  some  other  person,  whether  the
28    materials used in the process are owned by  the  manufacturer
29    or  some  other person, or whether that sale or lease is made
30    apart from or as an incident to the seller's engaging in  the
31    service  occupation of producing machines, tools, dies, jigs,
32    patterns, gauges, or other similar  items  of  no  commercial
33    value on special order for a particular purchaser.
34        (19)  Personal  property  delivered  to  a  purchaser  or
 
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 1    purchaser's donee inside Illinois when the purchase order for
 2    that  personal  property  was  received  by a florist located
 3    outside Illinois who has a florist  located  inside  Illinois
 4    deliver the personal property.
 5        (20)  Semen used for artificial insemination of livestock
 6    for direct agricultural production.
 7        (21)  Horses, or interests in horses, registered with and
 8    meeting  the  requirements  of  any of the Arabian Horse Club
 9    Registry of America, Appaloosa Horse Club,  American  Quarter
10    Horse  Association,  United  States  Trotting Association, or
11    Jockey Club, as appropriate, used for purposes of breeding or
12    racing for prizes.
13        (22)  Computers and communications equipment utilized for
14    any hospital purpose and equipment  used  in  the  diagnosis,
15    analysis,  or  treatment  of hospital patients purchased by a
16    lessor who leases the equipment, under a lease of one year or
17    longer executed or in effect at the  time  the  lessor  would
18    otherwise  be  subject  to  the tax imposed by this Act, to a
19    hospital  that  has  been  issued  an  active  tax  exemption
20    identification  number  by the Department under Section 1g of
21    the Retailers' Occupation  Tax  Act.   If  the  equipment  is
22    leased  in  a manner that does not qualify for this exemption
23    or is used in any other non-exempt manner, the  lessor  shall
24    be  liable  for the tax imposed under this Act or the Service
25    Use Tax Act, as the case may be, based  on  the  fair  market
26    value  of  the  property  at  the time the non-qualifying use
27    occurs.  No lessor shall collect or  attempt  to  collect  an
28    amount  (however  designated) that purports to reimburse that
29    lessor for the tax imposed by this Act or the Service Use Tax
30    Act, as the case may be, if the tax has not been paid by  the
31    lessor.  If a lessor improperly collects any such amount from
32    the  lessee,  the  lessee shall have a legal right to claim a
33    refund of that amount from the  lessor.   If,  however,  that
34    amount  is  not  refunded  to  the lessee for any reason, the
 
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 1    lessor is liable to pay that amount to the Department.
 2        (23)  Personal property purchased by a lessor who  leases
 3    the  property,  under a lease of  one year or longer executed
 4    or in effect at  the  time  the  lessor  would  otherwise  be
 5    subject  to  the  tax  imposed by this Act, to a governmental
 6    body that has been  issued  an  active  sales  tax  exemption
 7    identification  number  by the Department under Section 1g of
 8    the Retailers' Occupation Tax Act. If the property is  leased
 9    in  a manner that does not qualify for this exemption or used
10    in any other non-exempt manner, the lessor  shall  be  liable
11    for  the  tax  imposed  under this Act or the Service Use Tax
12    Act, as the case may be, based on the fair  market  value  of
13    the  property  at the time the non-qualifying use occurs.  No
14    lessor shall collect or attempt to collect an amount (however
15    designated) that purports to reimburse that  lessor  for  the
16    tax  imposed  by  this Act or the Service Use Tax Act, as the
17    case may be, if the tax has not been paid by the lessor.   If
18    a lessor improperly collects any such amount from the lessee,
19    the lessee shall have a legal right to claim a refund of that
20    amount  from  the  lessor.   If,  however, that amount is not
21    refunded to the lessee for any reason, the lessor  is  liable
22    to pay that amount to the Department.
23        (24)  Beginning  with  taxable  years  ending on or after
24    December 31, 1995 and ending with taxable years ending on  or
25    before  December  31, 2004, personal property that is donated
26    for disaster relief to  be  used  in  a  State  or  federally
27    declared disaster area in Illinois or bordering Illinois by a
28    manufacturer  or retailer that is registered in this State to
29    a   corporation,   society,   association,   foundation,   or
30    institution that  has  been  issued  a  sales  tax  exemption
31    identification  number by the Department that assists victims
32    of the disaster who reside within the declared disaster area.
33        (25)  Beginning with taxable years  ending  on  or  after
34    December  31, 1995 and ending with taxable years ending on or
 
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 1    before December 31, 2004, personal property that is  used  in
 2    the  performance  of  infrastructure  repairs  in this State,
 3    including but not limited to  municipal  roads  and  streets,
 4    access  roads,  bridges,  sidewalks,  waste disposal systems,
 5    water and  sewer  line  extensions,  water  distribution  and
 6    purification  facilities,  storm water drainage and retention
 7    facilities, and sewage treatment facilities, resulting from a
 8    State or federally declared disaster in Illinois or bordering
 9    Illinois  when  such  repairs  are  initiated  on  facilities
10    located in the declared disaster area within 6  months  after
11    the disaster.
12        (26)  Beginning   July   1,  1999,  game  or  game  birds
13    purchased at a "game breeding and hunting preserve  area"  or
14    an  "exotic game hunting area" as those terms are used in the
15    Wildlife Code or at  a  hunting  enclosure  approved  through
16    rules  adopted  by the Department of Natural Resources.  This
17    paragraph is exempt from the provisions of Section 3-90.
18        (27)  A motor vehicle, as that term is defined in Section
19    1-146 of the Illinois Vehicle Code,  that  is  donated  to  a
20    corporation, limited liability company, society, association,
21    foundation,   or   institution  that  is  determined  by  the
22    Department to  be  organized  and  operated  exclusively  for
23    educational  purposes.    For  purposes of this exemption, "a
24    corporation, limited liability company, society, association,
25    foundation, or institution organized and operated exclusively
26    for educational  purposes"  means  all  tax-supported  public
27    schools, private schools that offer systematic instruction in
28    useful  branches  of  learning  by  methods  common to public
29    schools  and  that  compare  favorably  in  their  scope  and
30    intensity with the course of study presented in tax-supported
31    schools, and vocational or technical  schools  or  institutes
32    organized  and  operated  exclusively  to provide a course of
33    study of not less than  6  weeks  duration  and  designed  to
34    prepare  individuals to follow a trade or to pursue a manual,
 
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 1    technical, mechanical, industrial,  business,  or  commercial
 2    occupation.
 3        (28)  Beginning  January  1,  2000,   personal  property,
 4    including  food, purchased through fundraising events for the
 5    benefit of  a  public  or  private  elementary  or  secondary
 6    school,  a  group  of  those  schools,  or one or more school
 7    districts if the events are sponsored by an entity recognized
 8    by the school district that consists primarily of  volunteers
 9    and  includes  parents  and  teachers of the school children.
10    This paragraph does not apply to fundraising events  (i)  for
11    the benefit of private home instruction or (ii) for which the
12    fundraising  entity  purchases  the personal property sold at
13    the events from another individual or entity  that  sold  the
14    property  for the purpose of resale by the fundraising entity
15    and that profits from the sale  to  the  fundraising  entity.
16    This paragraph is exempt from the provisions of Section 3-90.
17        (29)  Beginning  January 1, 2000 and through December 31,
18    2001, new or used automatic vending machines that prepare and
19    serve hot food and beverages,  including  coffee,  soup,  and
20    other  items,  and  replacement  parts  for  these  machines.
21    Beginning  January  1,  2002, machines and parts for machines
22    used  in  commercial,  coin-operated  amusement  and  vending
23    business if a use or occupation tax  is  paid  on  the  gross
24    receipts   derived   from   the   use   of   the  commercial,
25    coin-operated amusement and vending machines. This  paragraph
26    is exempt from the provisions of Section 3-90.
27        (30)  Food  for  human consumption that is to be consumed
28    off the premises where  it  is  sold  (other  than  alcoholic
29    beverages,  soft  drinks, and food that has been prepared for
30    immediate consumption) and prescription  and  nonprescription
31    medicines,  drugs,  medical  appliances,  and  insulin, urine
32    testing materials, syringes, and needles used  by  diabetics,
33    for  human  use, when purchased for use by a person receiving
34    medical assistance under Article 5 of the Illinois Public Aid
 
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 1    Code who resides in a licensed long-term  care  facility,  as
 2    defined in the Nursing Home Care Act.
 3        (31)  Beginning  on the effective date of this amendatory
 4    Act   of   the   92nd   General   Assembly,   computers   and
 5    communications equipment utilized for  any  hospital  purpose
 6    and  equipment  used in the diagnosis, analysis, or treatment
 7    of hospital patients purchased by a  lessor  who  leases  the
 8    equipment, under a lease of one year or longer executed or in
 9    effect  at  the time the lessor would otherwise be subject to
10    the tax imposed by this Act, to  a  hospital  that  has  been
11    issued  an  active tax exemption identification number by the
12    Department under Section 1g of the Retailers' Occupation  Tax
13    Act.   If  the  equipment is leased in a manner that does not
14    qualify for this exemption or is used in any other  nonexempt
15    manner,  the lessor shall be liable for the tax imposed under
16    this Act or the Service Use Tax Act,  as  the  case  may  be,
17    based  on  the  fair market value of the property at the time
18    the nonqualifying use occurs.  No  lessor  shall  collect  or
19    attempt  to  collect  an  amount  (however  designated)  that
20    purports to reimburse that lessor for the tax imposed by this
21    Act  or  the  Service Use Tax Act, as the case may be, if the
22    tax has not been paid by the lessor.  If a lessor  improperly
23    collects  any  such  amount from the lessee, the lessee shall
24    have a legal right to claim a refund of that amount from  the
25    lessor.   If,  however,  that  amount  is not refunded to the
26    lessee for any reason, the  lessor  is  liable  to  pay  that
27    amount  to  the Department. This paragraph is exempt from the
28    provisions of Section 3-90.
29        (32)  Beginning on the effective date of this  amendatory
30    Act of the 92nd General Assembly, personal property purchased
31    by  a  lessor  who  leases the property, under a lease of one
32    year or longer executed or in effect at the time  the  lessor
33    would otherwise be subject to the tax imposed by this Act, to
34    a  governmental body that has been issued an active sales tax
 
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 1    exemption  identification  number  by  the  Department  under
 2    Section 1g of the Retailers'  Occupation  Tax  Act.   If  the
 3    property is leased in a manner that does not qualify for this
 4    exemption  or  used in any other nonexempt manner, the lessor
 5    shall be liable for the tax imposed under  this  Act  or  the
 6    Service  Use  Tax  Act, as the case may be, based on the fair
 7    market value of the property at the  time  the  nonqualifying
 8    use occurs.  No lessor shall collect or attempt to collect an
 9    amount  (however  designated) that purports to reimburse that
10    lessor for the tax imposed by this Act or the Service Use Tax
11    Act, as the case may be, if the tax has not been paid by  the
12    lessor.  If a lessor improperly collects any such amount from
13    the  lessee,  the  lessee shall have a legal right to claim a
14    refund of that amount from the  lessor.   If,  however,  that
15    amount  is  not  refunded  to  the lessee for any reason, the
16    lessor is liable to pay that amount to the Department.   This
17    paragraph is exempt from the provisions of Section 3-90.
18        (33)  Beginning    on    January    1,   2004,   modular,
19    pre-fabricated, metal, storage, and other structures used for
20    agricultural purposes, including, but not  limited  to,  pole
21    barns  used  for  storing  agricultural inputs and equipment,
22    bins used for storing agricultural products, and  sheds  used
23    for  protecting  livestock. This exemption is allowed only if
24    the purchaser certifies that the structure will be  used  for
25    agricultural  purposes.  This  paragraph  is  exempt from the
26    provisions of Section 3-90.
27    (Source: P.A. 91-51,  eff.  6-30-99;  91-200,  eff.  7-20-99;
28    91-439,  eff.  8-6-99;  91-637,  eff.  8-20-99;  91-644, eff.
29    8-20-99; 91-901, eff. 1-1-01;  92-35,  eff.  7-1-01;  92-227,
30    eff.  8-2-01;  92-337,  eff.  8-10-01;  92-484, eff. 8-23-01;
31    92-651, eff. 7-11-02.)

32        Section 10.  The  Service  Use  Tax  Act  is  amended  by
33    changing Section 3-5 as follows:
 
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 1        (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
 2        Sec.  3-5.   Exemptions.   Use  of the following tangible
 3    personal property is exempt from the tax imposed by this Act:
 4        (1)  Personal  property  purchased  from  a  corporation,
 5    society,    association,    foundation,    institution,    or
 6    organization, other than a limited liability company, that is
 7    organized and operated as a not-for-profit service enterprise
 8    for the benefit of persons 65 years of age or  older  if  the
 9    personal property was not purchased by the enterprise for the
10    purpose of resale by the enterprise.
11        (2)  Personal property purchased by a non-profit Illinois
12    county  fair association for use in conducting, operating, or
13    promoting the county fair.
14        (3)  Personal property purchased by a not-for-profit arts
15    or cultural organization that establishes, by proof  required
16    by  the Department by rule, that it has received an exemption
17    under Section 501(c)(3) of the Internal Revenue Code and that
18    is organized and operated primarily for the  presentation  or
19    support  of  arts  or  cultural  programming,  activities, or
20    services.  These organizations include, but are  not  limited
21    to,  music  and  dramatic arts organizations such as symphony
22    orchestras and theatrical groups, arts and  cultural  service
23    organizations,    local    arts    councils,    visual   arts
24    organizations, and media arts organizations. On and after the
25    effective date of this amendatory Act  of  the  92nd  General
26    Assembly,  however,  an  entity  otherwise  eligible for this
27    exemption shall not make tax-free purchases unless it has  an
28    active identification number issued by the Department.
29        (4)  Legal  tender,  currency,  medallions,  or  gold  or
30    silver   coinage   issued  by  the  State  of  Illinois,  the
31    government of the United States of America, or the government
32    of any foreign country, and bullion.
33        (5)  Graphic  arts  machinery  and  equipment,  including
34    repair  and  replacement  parts,  both  new  and  used,   and
 
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 1    including that manufactured on special order or purchased for
 2    lease,  certified  by  the purchaser to be used primarily for
 3    graphic arts  production.  Equipment  includes  chemicals  or
 4    chemicals  acting  as  catalysts but only if the chemicals or
 5    chemicals acting as catalysts effect a direct  and  immediate
 6    change upon a graphic arts product.
 7        (6)  Personal property purchased from a teacher-sponsored
 8    student   organization   affiliated  with  an  elementary  or
 9    secondary school located in Illinois.
10        (7)  Farm machinery and equipment,  both  new  and  used,
11    including  that  manufactured  on special order, certified by
12    the purchaser to be used primarily for production agriculture
13    or  State  or  federal   agricultural   programs,   including
14    individual replacement parts for the machinery and equipment,
15    including  machinery  and  equipment purchased for lease, and
16    including implements of husbandry defined in Section 1-130 of
17    the Illinois Vehicle Code, farm  machinery  and  agricultural
18    chemical  and fertilizer spreaders, and nurse wagons required
19    to be registered under Section 3-809 of the Illinois  Vehicle
20    Code,  but  excluding  other  motor  vehicles  required to be
21    registered under the  Illinois  Vehicle  Code.  Horticultural
22    polyhouses  or  hoop houses used for propagating, growing, or
23    overwintering plants shall be considered farm  machinery  and
24    equipment  under  this item (7). Agricultural chemical tender
25    tanks and dry boxes shall include units sold separately  from
26    a  motor  vehicle  required  to  be  licensed  and units sold
27    mounted on a motor vehicle required to  be  licensed  if  the
28    selling price of the tender is separately stated.
29        Farm  machinery  and  equipment  shall  include precision
30    farming equipment  that  is  installed  or  purchased  to  be
31    installed  on farm machinery and equipment including, but not
32    limited  to,  tractors,   harvesters,   sprayers,   planters,
33    seeders,  or spreaders. Precision farming equipment includes,
34    but is not  limited  to,  soil  testing  sensors,  computers,
 
                            -14-     LRB093 06821 SJM 06966 b
 1    monitors,  software,  global positioning and mapping systems,
 2    and other such equipment.
 3        Farm machinery and  equipment  also  includes  computers,
 4    sensors,  software,  and  related equipment used primarily in
 5    the computer-assisted  operation  of  production  agriculture
 6    facilities,  equipment,  and  activities  such  as,  but  not
 7    limited  to,  the  collection, monitoring, and correlation of
 8    animal and crop data for the purpose  of  formulating  animal
 9    diets  and  agricultural  chemicals.  This item (7) is exempt
10    from the provisions of Section 3-75.
11        (8)  Fuel and petroleum products sold to or  used  by  an
12    air  common  carrier, certified by the carrier to be used for
13    consumption, shipment, or  storage  in  the  conduct  of  its
14    business  as an air common carrier, for a flight destined for
15    or returning from a location or locations outside the  United
16    States  without  regard  to  previous  or subsequent domestic
17    stopovers.
18        (9)  Proceeds of  mandatory  service  charges  separately
19    stated  on  customers' bills for the purchase and consumption
20    of food and beverages acquired as an incident to the purchase
21    of a service from  a  serviceman,  to  the  extent  that  the
22    proceeds  of  the  service  charge are in fact turned over as
23    tips or as  a  substitute  for  tips  to  the  employees  who
24    participate   directly  in  preparing,  serving,  hosting  or
25    cleaning up the food or beverage  function  with  respect  to
26    which the service charge is imposed.
27        (10)  Oil  field  exploration,  drilling,  and production
28    equipment, including (i) rigs and parts of rigs, rotary rigs,
29    cable tool rigs, and workover rigs,  (ii)  pipe  and  tubular
30    goods,  including  casing  and drill strings, (iii) pumps and
31    pump-jack units, (iv) storage tanks and flow lines,  (v)  any
32    individual   replacement  part  for  oil  field  exploration,
33    drilling, and production equipment, and  (vi)  machinery  and
34    equipment  purchased  for lease; but excluding motor vehicles
 
                            -15-     LRB093 06821 SJM 06966 b
 1    required to be registered under the Illinois Vehicle Code.
 2        (11)  Proceeds from the sale of photoprocessing machinery
 3    and equipment, including repair and replacement  parts,  both
 4    new  and  used, including that manufactured on special order,
 5    certified  by  the  purchaser  to  be  used   primarily   for
 6    photoprocessing,  and including photoprocessing machinery and
 7    equipment purchased for lease.
 8        (12)  Coal  exploration,  mining,   offhighway   hauling,
 9    processing, maintenance, and reclamation equipment, including
10    replacement  parts  and  equipment,  and  including equipment
11    purchased for lease, but excluding motor vehicles required to
12    be registered under the Illinois Vehicle Code.
13        (13)  Semen used for artificial insemination of livestock
14    for direct agricultural production.
15        (14)  Horses, or interests in horses, registered with and
16    meeting the requirements of any of  the  Arabian  Horse  Club
17    Registry  of  America, Appaloosa Horse Club, American Quarter
18    Horse Association, United  States  Trotting  Association,  or
19    Jockey Club, as appropriate, used for purposes of breeding or
20    racing for prizes.
21        (15)  Computers and communications equipment utilized for
22    any  hospital  purpose  and  equipment used in the diagnosis,
23    analysis, or treatment of hospital patients  purchased  by  a
24    lessor who leases the equipment, under a lease of one year or
25    longer  executed  or  in  effect at the time the lessor would
26    otherwise be subject to the tax imposed by  this  Act,  to  a
27    hospital  that  has  been  issued  an  active  tax  exemption
28    identification  number  by the Department under Section 1g of
29    the Retailers' Occupation Tax Act. If the equipment is leased
30    in a manner that does not qualify for this  exemption  or  is
31    used  in  any  other  non-exempt  manner, the lessor shall be
32    liable for the tax imposed under this Act or the Use Tax Act,
33    as the case may be, based on the fair  market  value  of  the
34    property  at  the  time  the  non-qualifying  use occurs.  No
 
                            -16-     LRB093 06821 SJM 06966 b
 1    lessor shall collect or attempt to collect an amount (however
 2    designated) that purports to reimburse that  lessor  for  the
 3    tax  imposed  by this Act or the Use Tax Act, as the case may
 4    be, if the tax has not been paid by the lessor.  If a  lessor
 5    improperly  collects  any  such  amount  from the lessee, the
 6    lessee shall have a legal right to claim  a  refund  of  that
 7    amount  from  the  lessor.   If,  however, that amount is not
 8    refunded to the lessee for any reason, the lessor  is  liable
 9    to pay that amount to the Department.
10        (16)  Personal  property purchased by a lessor who leases
11    the property, under a lease of one year or longer executed or
12    in effect at the time the lessor would otherwise  be  subject
13    to  the  tax imposed by this Act, to a governmental body that
14    has been issued an active tax exemption identification number
15    by  the  Department  under  Section  1g  of  the   Retailers'
16    Occupation  Tax  Act.   If the property is leased in a manner
17    that does not qualify for this exemption or is  used  in  any
18    other  non-exempt  manner, the lessor shall be liable for the
19    tax imposed under this Act or the Use Tax Act,  as  the  case
20    may be, based on the fair market value of the property at the
21    time  the non-qualifying use occurs.  No lessor shall collect
22    or attempt to collect an  amount  (however  designated)  that
23    purports to reimburse that lessor for the tax imposed by this
24    Act  or  the  Use Tax Act, as the case may be, if the tax has
25    not been paid by the lessor.  If a lessor improperly collects
26    any such amount from the lessee,  the  lessee  shall  have  a
27    legal right to claim a refund of that amount from the lessor.
28    If,  however,  that  amount is not refunded to the lessee for
29    any reason, the lessor is liable to pay that  amount  to  the
30    Department.
31        (17)  Beginning  with  taxable  years  ending on or after
32    December 31, 1995 and ending with taxable years ending on  or
33    before  December  31, 2004, personal property that is donated
34    for disaster relief to  be  used  in  a  State  or  federally
 
                            -17-     LRB093 06821 SJM 06966 b
 1    declared disaster area in Illinois or bordering Illinois by a
 2    manufacturer  or retailer that is registered in this State to
 3    a   corporation,   society,   association,   foundation,   or
 4    institution that  has  been  issued  a  sales  tax  exemption
 5    identification  number by the Department that assists victims
 6    of the disaster who reside within the declared disaster area.
 7        (18)  Beginning with taxable years  ending  on  or  after
 8    December  31, 1995 and ending with taxable years ending on or
 9    before December 31, 2004, personal property that is  used  in
10    the  performance  of  infrastructure  repairs  in this State,
11    including but not limited to  municipal  roads  and  streets,
12    access  roads,  bridges,  sidewalks,  waste disposal systems,
13    water and  sewer  line  extensions,  water  distribution  and
14    purification  facilities,  storm water drainage and retention
15    facilities, and sewage treatment facilities, resulting from a
16    State or federally declared disaster in Illinois or bordering
17    Illinois  when  such  repairs  are  initiated  on  facilities
18    located in the declared disaster area within 6  months  after
19    the disaster.
20        (19)  Beginning   July   1,  1999,  game  or  game  birds
21    purchased at a "game breeding and hunting preserve  area"  or
22    an  "exotic game hunting area" as those terms are used in the
23    Wildlife Code or at  a  hunting  enclosure  approved  through
24    rules  adopted  by the Department of Natural Resources.  This
25    paragraph is exempt from the provisions of Section 3-75.
26        (20)  A motor vehicle, as that term is defined in Section
27    1-146 of the Illinois Vehicle Code,  that  is  donated  to  a
28    corporation, limited liability company, society, association,
29    foundation,   or   institution  that  is  determined  by  the
30    Department to  be  organized  and  operated  exclusively  for
31    educational  purposes.   For  purposes  of this exemption, "a
32    corporation, limited liability company, society, association,
33    foundation, or institution organized and operated exclusively
34    for educational  purposes"  means  all  tax-supported  public
 
                            -18-     LRB093 06821 SJM 06966 b
 1    schools, private schools that offer systematic instruction in
 2    useful  branches  of  learning  by  methods  common to public
 3    schools  and  that  compare  favorably  in  their  scope  and
 4    intensity with the course of study presented in tax-supported
 5    schools, and vocational or technical  schools  or  institutes
 6    organized  and  operated  exclusively  to provide a course of
 7    study of not less than  6  weeks  duration  and  designed  to
 8    prepare  individuals to follow a trade or to pursue a manual,
 9    technical, mechanical, industrial,  business,  or  commercial
10    occupation.
11        (21)  Beginning  January  1,  2000,   personal  property,
12    including  food, purchased through fundraising events for the
13    benefit of  a  public  or  private  elementary  or  secondary
14    school,  a  group  of  those  schools,  or one or more school
15    districts if the events are sponsored by an entity recognized
16    by the school district that consists primarily of  volunteers
17    and  includes  parents  and  teachers of the school children.
18    This paragraph does not apply to fundraising events  (i)  for
19    the benefit of private home instruction or (ii) for which the
20    fundraising  entity  purchases  the personal property sold at
21    the events from another individual or entity  that  sold  the
22    property  for the purpose of resale by the fundraising entity
23    and that profits from the sale  to  the  fundraising  entity.
24    This paragraph is exempt from the provisions of Section 3-75.
25        (22)  Beginning  January 1, 2000 and through December 31,
26    2001, new or used automatic vending machines that prepare and
27    serve hot food and beverages,  including  coffee,  soup,  and
28    other  items,  and  replacement  parts  for  these  machines.
29    Beginning  January  1,  2002, machines and parts for machines
30    used  in  commercial,  coin-operated  amusement  and  vending
31    business if a use or occupation tax  is  paid  on  the  gross
32    receipts   derived   from   the   use   of   the  commercial,
33    coin-operated amusement and vending machines. This  paragraph
34    is exempt from the provisions of Section 3-75.
 
                            -19-     LRB093 06821 SJM 06966 b
 1        (23)  Food  for  human consumption that is to be consumed
 2    off the premises where  it  is  sold  (other  than  alcoholic
 3    beverages,  soft  drinks, and food that has been prepared for
 4    immediate consumption) and prescription  and  nonprescription
 5    medicines,  drugs,  medical  appliances,  and  insulin, urine
 6    testing materials, syringes, and needles used  by  diabetics,
 7    for  human  use, when purchased for use by a person receiving
 8    medical assistance under Article 5 of the Illinois Public Aid
 9    Code who resides in a licensed long-term  care  facility,  as
10    defined in the Nursing Home Care Act.
11        (24)    Beginning   on   the   effective   date  of  this
12    amendatory Act of the 92nd General  Assembly,  computers  and
13    communications  equipment  utilized  for any hospital purpose
14    and equipment used in the diagnosis, analysis,  or  treatment
15    of  hospital  patients  purchased  by a lessor who leases the
16    equipment, under a lease of one year or longer executed or in
17    effect at the time the lessor would otherwise be  subject  to
18    the  tax  imposed  by  this  Act, to a hospital that has been
19    issued an active tax exemption identification number  by  the
20    Department  under Section 1g of the Retailers' Occupation Tax
21    Act.  If the equipment is leased in a manner  that  does  not
22    qualify  for this exemption or is used in any other nonexempt
23    manner, the lessor shall be liable for the tax imposed  under
24    this Act or the Use Tax Act, as the case may be, based on the
25    fair   market   value   of  the  property  at  the  time  the
26    nonqualifying use occurs. No lessor shall collect or  attempt
27    to  collect  an  amount (however designated) that purports to
28    reimburse that lessor for the tax imposed by this Act or  the
29    Use Tax Act, as the case may be, if the tax has not been paid
30    by  the  lessor.   If  a  lessor improperly collects any such
31    amount from the lessee, the lessee shall have a  legal  right
32    to  claim  a  refund  of  that  amount  from the lessor.  If,
33    however, that amount is not refunded to the  lessee  for  any
34    reason,  the  lessor  is  liable  to  pay  that amount to the
 
                            -20-     LRB093 06821 SJM 06966 b
 1    Department. This paragraph is exempt from the  provisions  of
 2    Section 3-75.
 3        (25)  Beginning  on the effective date of this amendatory
 4    Act of the 92nd General Assembly, personal property purchased
 5    by a lessor who leases the property, under  a  lease  of  one
 6    year  or  longer executed or in effect at the time the lessor
 7    would otherwise be subject to the tax imposed by this Act, to
 8    a governmental body  that  has  been  issued  an  active  tax
 9    exemption  identification  number  by  the  Department  under
10    Section  1g  of  the  Retailers'  Occupation Tax Act.  If the
11    property is leased in a manner that does not qualify for this
12    exemption or is used  in  any  other  nonexempt  manner,  the
13    lessor  shall be liable for the tax imposed under this Act or
14    the Use Tax Act, as the case may be, based on the fair market
15    value of the property  at  the  time  the  nonqualifying  use
16    occurs.   No  lessor  shall  collect or attempt to collect an
17    amount (however designated) that purports to  reimburse  that
18    lessor for the tax imposed by this Act or the Use Tax Act, as
19    the  case may be, if the tax has not been paid by the lessor.
20    If a lessor improperly collects  any  such  amount  from  the
21    lessee, the lessee shall have a legal right to claim a refund
22    of  that amount from the lessor.  If, however, that amount is
23    not refunded to the lessee for  any  reason,  the  lessor  is
24    liable  to  pay that amount to the Department. This paragraph
25    is exempt from the provisions of Section 3-75.
26        (26)  Beginning   on   January    1,    2004,    modular,
27    pre-fabricated, metal, storage, and other structures used for
28    agricultural  purposes,  including,  but not limited to, pole
29    barns used for storing  agricultural  inputs  and  equipment,
30    bins  used  for storing agricultural products, and sheds used
31    for protecting livestock. This exemption is allowed  only  if
32    the  purchaser  certifies that the structure will be used for
33    agricultural purposes. This  paragraph  is  exempt  from  the
34    provisions of Section 3-75.
 
                            -21-     LRB093 06821 SJM 06966 b
 1    (Source:  P.A.  91-51,  eff.  6-30-99;  91-200, eff. 7-20-99;
 2    91-439, eff.  8-6-99;  91-637,  eff.  8-20-99;  91-644,  eff.
 3    8-20-99;  92-16,  eff.  6-28-01;  92-35, eff. 7-1-01; 92-227,
 4    eff. 8-2-01; 92-337,  eff.  8-10-01;  92-484,  eff.  8-23-01;
 5    92-651, eff. 7-11-02.)

 6        Section 15.  The Service Occupation Tax Act is amended by
 7    changing Section 3-5 as follows:

 8        (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
 9        Sec.  3-5.  Exemptions.   The following tangible personal
10    property is exempt from the tax imposed by this Act:
11        (1)  Personal property sold by  a  corporation,  society,
12    association,  foundation, institution, or organization, other
13    than a limited  liability  company,  that  is  organized  and
14    operated  as  a  not-for-profit  service  enterprise  for the
15    benefit of persons 65 years of age or older if  the  personal
16    property  was not purchased by the enterprise for the purpose
17    of resale by the enterprise.
18        (2)  Personal  property  purchased  by  a  not-for-profit
19    Illinois county  fair  association  for  use  in  conducting,
20    operating, or promoting the county fair.
21        (3)  Personal  property  purchased  by any not-for-profit
22    arts or cultural  organization  that  establishes,  by  proof
23    required  by  the Department by rule, that it has received an
24    exemption  under Section 501(c)(3) of  the  Internal  Revenue
25    Code  and  that  is  organized and operated primarily for the
26    presentation or support  of  arts  or  cultural  programming,
27    activities,  or  services.   These organizations include, but
28    are not limited to, music  and  dramatic  arts  organizations
29    such  as  symphony orchestras and theatrical groups, arts and
30    cultural service organizations, local arts  councils,  visual
31    arts  organizations,  and  media  arts  organizations. On and
32    after the effective date of this amendatory Act of  the  92nd
 
                            -22-     LRB093 06821 SJM 06966 b
 1    General  Assembly,  however, an entity otherwise eligible for
 2    this exemption shall not make tax-free  purchases  unless  it
 3    has an active identification number issued by the Department.
 4        (4)  Legal  tender,  currency,  medallions,  or  gold  or
 5    silver   coinage   issued  by  the  State  of  Illinois,  the
 6    government of the United States of America, or the government
 7    of any foreign country, and bullion.
 8        (5)  Graphic  arts  machinery  and  equipment,  including
 9    repair  and  replacement  parts,  both  new  and  used,   and
10    including that manufactured on special order or purchased for
11    lease,  certified  by  the purchaser to be used primarily for
12    graphic arts  production.  Equipment  includes  chemicals  or
13    chemicals  acting  as  catalysts but only if the chemicals or
14    chemicals acting as catalysts effect a direct  and  immediate
15    change upon a graphic arts product.
16        (6)  Personal   property   sold  by  a  teacher-sponsored
17    student  organization  affiliated  with  an   elementary   or
18    secondary school located in Illinois.
19        (7)  Farm  machinery  and  equipment,  both new and used,
20    including that manufactured on special  order,  certified  by
21    the purchaser to be used primarily for production agriculture
22    or   State   or   federal  agricultural  programs,  including
23    individual replacement parts for the machinery and equipment,
24    including machinery and equipment purchased  for  lease,  and
25    including implements of husbandry defined in Section 1-130 of
26    the  Illinois  Vehicle  Code, farm machinery and agricultural
27    chemical and fertilizer spreaders, and nurse wagons  required
28    to  be registered under Section 3-809 of the Illinois Vehicle
29    Code, but excluding  other  motor  vehicles  required  to  be
30    registered  under  the  Illinois  Vehicle Code. Horticultural
31    polyhouses or hoop houses used for propagating,  growing,  or
32    overwintering  plants  shall be considered farm machinery and
33    equipment under this item (7). Agricultural  chemical  tender
34    tanks  and dry boxes shall include units sold separately from
 
                            -23-     LRB093 06821 SJM 06966 b
 1    a motor vehicle  required  to  be  licensed  and  units  sold
 2    mounted  on  a  motor  vehicle required to be licensed if the
 3    selling price of the tender is separately stated.
 4        Farm machinery  and  equipment  shall  include  precision
 5    farming  equipment  that  is  installed  or  purchased  to be
 6    installed on farm machinery and equipment including, but  not
 7    limited   to,   tractors,   harvesters,  sprayers,  planters,
 8    seeders, or spreaders. Precision farming equipment  includes,
 9    but  is  not  limited  to,  soil  testing sensors, computers,
10    monitors, software, global positioning and  mapping  systems,
11    and other such equipment.
12        Farm  machinery  and  equipment  also includes computers,
13    sensors, software, and related equipment  used  primarily  in
14    the  computer-assisted  operation  of  production agriculture
15    facilities,  equipment,  and  activities  such  as,  but  not
16    limited to, the collection, monitoring,  and  correlation  of
17    animal  and  crop  data for the purpose of formulating animal
18    diets and agricultural chemicals.  This item  (7)  is  exempt
19    from the provisions of Section 3-55.
20        (8)  Fuel  and  petroleum  products sold to or used by an
21    air common carrier, certified by the carrier to be  used  for
22    consumption,  shipment,  or  storage  in  the  conduct of its
23    business as an air common carrier, for a flight destined  for
24    or  returning from a location or locations outside the United
25    States without regard  to  previous  or  subsequent  domestic
26    stopovers.
27        (9)  Proceeds  of  mandatory  service  charges separately
28    stated on customers' bills for the purchase  and  consumption
29    of food and beverages, to the extent that the proceeds of the
30    service  charge  are  in  fact  turned  over  as tips or as a
31    substitute for tips to the employees who participate directly
32    in preparing, serving, hosting or cleaning  up  the  food  or
33    beverage function with respect to which the service charge is
34    imposed.
 
                            -24-     LRB093 06821 SJM 06966 b
 1        (10)  Oil  field  exploration,  drilling,  and production
 2    equipment, including (i) rigs and parts of rigs, rotary rigs,
 3    cable tool rigs, and workover rigs,  (ii)  pipe  and  tubular
 4    goods,  including  casing  and drill strings, (iii) pumps and
 5    pump-jack units, (iv) storage tanks and flow lines,  (v)  any
 6    individual   replacement  part  for  oil  field  exploration,
 7    drilling, and production equipment, and  (vi)  machinery  and
 8    equipment  purchased  for lease; but excluding motor vehicles
 9    required to be registered under the Illinois Vehicle Code.
10        (11)  Photoprocessing machinery and equipment,  including
11    repair  and  replacement  parts, both new and used, including
12    that  manufactured  on  special  order,  certified   by   the
13    purchaser  to  be  used  primarily  for  photoprocessing, and
14    including photoprocessing machinery and  equipment  purchased
15    for lease.
16        (12)  Coal   exploration,   mining,  offhighway  hauling,
17    processing, maintenance, and reclamation equipment, including
18    replacement parts  and  equipment,  and  including  equipment
19    purchased for lease, but excluding motor vehicles required to
20    be registered under the Illinois Vehicle Code.
21        (13)  Food  for  human consumption that is to be consumed
22    off the premises where  it  is  sold  (other  than  alcoholic
23    beverages,  soft  drinks  and food that has been prepared for
24    immediate consumption) and prescription and  non-prescription
25    medicines,  drugs,  medical  appliances,  and  insulin, urine
26    testing materials, syringes, and needles used  by  diabetics,
27    for  human  use, when purchased for use by a person receiving
28    medical assistance under Article 5 of the Illinois Public Aid
29    Code who resides in a licensed long-term  care  facility,  as
30    defined in the Nursing Home Care Act.
31        (14)  Semen used for artificial insemination of livestock
32    for direct agricultural production.
33        (15)  Horses, or interests in horses, registered with and
34    meeting  the  requirements  of  any of the Arabian Horse Club
 
                            -25-     LRB093 06821 SJM 06966 b
 1    Registry of America, Appaloosa Horse Club,  American  Quarter
 2    Horse  Association,  United  States  Trotting Association, or
 3    Jockey Club, as appropriate, used for purposes of breeding or
 4    racing for prizes.
 5        (16)  Computers and communications equipment utilized for
 6    any hospital purpose and equipment  used  in  the  diagnosis,
 7    analysis,  or treatment of hospital patients sold to a lessor
 8    who leases the equipment, under a lease of one year or longer
 9    executed or in effect at the  time  of  the  purchase,  to  a
10    hospital  that  has  been  issued  an  active  tax  exemption
11    identification  number  by the Department under Section 1g of
12    the Retailers' Occupation Tax Act.
13        (17)  Personal property sold to a lessor who  leases  the
14    property,  under a lease of one year or longer executed or in
15    effect at the time of the purchase, to  a  governmental  body
16    that  has  been issued an active tax exemption identification
17    number by the Department under Section 1g of  the  Retailers'
18    Occupation Tax Act.
19        (18)  Beginning  with  taxable  years  ending on or after
20    December 31, 1995 and ending with taxable years ending on  or
21    before  December  31, 2004, personal property that is donated
22    for disaster relief to  be  used  in  a  State  or  federally
23    declared disaster area in Illinois or bordering Illinois by a
24    manufacturer  or retailer that is registered in this State to
25    a   corporation,   society,   association,   foundation,   or
26    institution that  has  been  issued  a  sales  tax  exemption
27    identification  number by the Department that assists victims
28    of the disaster who reside within the declared disaster area.
29        (19)  Beginning with taxable years  ending  on  or  after
30    December  31, 1995 and ending with taxable years ending on or
31    before December 31, 2004, personal property that is  used  in
32    the  performance  of  infrastructure  repairs  in this State,
33    including but not limited to  municipal  roads  and  streets,
34    access  roads,  bridges,  sidewalks,  waste disposal systems,
 
                            -26-     LRB093 06821 SJM 06966 b
 1    water and  sewer  line  extensions,  water  distribution  and
 2    purification  facilities,  storm water drainage and retention
 3    facilities, and sewage treatment facilities, resulting from a
 4    State or federally declared disaster in Illinois or bordering
 5    Illinois  when  such  repairs  are  initiated  on  facilities
 6    located in the declared disaster area within 6  months  after
 7    the disaster.
 8        (20)  Beginning  July 1, 1999, game or game birds sold at
 9    a "game breeding and hunting preserve  area"  or  an  "exotic
10    game  hunting  area"  as those terms are used in the Wildlife
11    Code or at a hunting enclosure approved through rules adopted
12    by the Department of Natural Resources.   This  paragraph  is
13    exempt from the provisions of Section 3-55.
14        (21)  A motor vehicle, as that term is defined in Section
15    1-146  of  the  Illinois  Vehicle  Code, that is donated to a
16    corporation, limited liability company, society, association,
17    foundation,  or  institution  that  is  determined   by   the
18    Department  to  be  organized  and  operated  exclusively for
19    educational purposes.  For purposes  of  this  exemption,  "a
20    corporation, limited liability company, society, association,
21    foundation, or institution organized and operated exclusively
22    for  educational  purposes"  means  all  tax-supported public
23    schools, private schools that offer systematic instruction in
24    useful branches of  learning  by  methods  common  to  public
25    schools  and  that  compare  favorably  in  their  scope  and
26    intensity with the course of study presented in tax-supported
27    schools,  and  vocational  or technical schools or institutes
28    organized and operated exclusively to  provide  a  course  of
29    study  of  not  less  than  6  weeks duration and designed to
30    prepare individuals to follow a trade or to pursue a  manual,
31    technical,  mechanical,  industrial,  business, or commercial
32    occupation.
33        (22)  Beginning  January  1,  2000,   personal  property,
34    including food, purchased through fundraising events for  the
 
                            -27-     LRB093 06821 SJM 06966 b
 1    benefit  of  a  public  or  private  elementary  or secondary
 2    school, a group of those  schools,  or  one  or  more  school
 3    districts if the events are sponsored by an entity recognized
 4    by  the school district that consists primarily of volunteers
 5    and includes parents and teachers  of  the  school  children.
 6    This  paragraph  does not apply to fundraising events (i) for
 7    the benefit of private home instruction or (ii) for which the
 8    fundraising entity purchases the personal  property  sold  at
 9    the  events  from  another individual or entity that sold the
10    property for the purpose of resale by the fundraising  entity
11    and  that  profits  from  the sale to the fundraising entity.
12    This paragraph is exempt from the provisions of Section 3-55.
13        (23)  Beginning January 1, 2000 and through December  31,
14    2001, new or used automatic vending machines that prepare and
15    serve  hot  food  and  beverages, including coffee, soup, and
16    other  items,  and  replacement  parts  for  these  machines.
17    Beginning January 1, 2002, machines and  parts  for  machines
18    used  in  commercial,  coin-operated  amusement  and  vending
19    business  if  a  use  or  occupation tax is paid on the gross
20    receipts  derived   from   the   use   of   the   commercial,
21    coin-operated amusement and vending machines.  This paragraph
22    is exempt from the provisions of Section 3-55.
23        (24)  Beginning  on the effective date of this amendatory
24    Act   of   the   92nd   General   Assembly,   computers   and
25    communications equipment utilized for  any  hospital  purpose
26    and  equipment  used in the diagnosis, analysis, or treatment
27    of  hospital  patients  sold  to  a  lessor  who  leases  the
28    equipment, under a lease of one year or longer executed or in
29    effect at the time of the purchase, to a  hospital  that  has
30    been  issued an active tax exemption identification number by
31    the Department under Section 1g of the Retailers'  Occupation
32    Tax  Act.   This  paragraph  is exempt from the provisions of
33    Section 3-55.
34        (25)  Beginning on the effective date of this  amendatory
 
                            -28-     LRB093 06821 SJM 06966 b
 1    Act of the 92nd General Assembly, personal property sold to a
 2    lessor  who leases the property, under a lease of one year or
 3    longer executed or in effect at the time of the purchase,  to
 4    a  governmental  body  that  has  been  issued  an active tax
 5    exemption  identification  number  by  the  Department  under
 6    Section 1g  of  the  Retailers'  Occupation  Tax  Act.   This
 7    paragraph is exempt from the provisions of Section 3-55.
 8        (26)  Beginning  on  January  1,  2002, tangible personal
 9    property purchased from an Illinois retailer  by  a  taxpayer
10    engaged  in centralized purchasing activities in Illinois who
11    will, upon receipt of the property in  Illinois,  temporarily
12    store  the  property  in  Illinois  (i)  for  the  purpose of
13    subsequently transporting it outside this State  for  use  or
14    consumption  thereafter solely outside this State or (ii) for
15    the purpose of being processed, fabricated,  or  manufactured
16    into,  attached  to,  or  incorporated  into  other  tangible
17    personal  property  to  be transported outside this State and
18    thereafter used or consumed solely outside this  State.   The
19    Director  of  Revenue  shall,  pursuant  to  rules adopted in
20    accordance with the Illinois  Administrative  Procedure  Act,
21    issue  a  permit  to  any  taxpayer in good standing with the
22    Department who is  eligible  for  the  exemption  under  this
23    paragraph  (26).  The permit issued under this paragraph (26)
24    shall authorize the holder, to the extent and in  the  manner
25    specified  in  the  rules adopted under this Act, to purchase
26    tangible personal property from a retailer  exempt  from  the
27    taxes  imposed  by  this  Act.   Taxpayers shall maintain all
28    necessary books and  records  to  substantiate  the  use  and
29    consumption of all such tangible personal property outside of
30    the State of Illinois.
31        (27)  Beginning    on    January    1,   2004,   modular,
32    pre-fabricated, metal, storage, and other structures used for
33    agricultural purposes, including, but not  limited  to,  pole
34    barns  used  for  storing  agricultural inputs and equipment,
 
                            -29-     LRB093 06821 SJM 06966 b
 1    bins used for storing agricultural products, and  sheds  used
 2    for  protecting  livestock. This exemption is allowed only if
 3    the purchaser certifies that the structure will be  used  for
 4    agricultural  purposes.  This  paragraph  is  exempt from the
 5    provisions of Section 3-55.
 6    (Source: P.A. 91-51,  eff.  6-30-99;  91-200,  eff.  7-20-99;
 7    91-439,  eff.  8-6-99;  91-533,  eff.  8-13-99;  91-637, eff.
 8    8-20-99; 91-644, eff. 8-20-99; 92-16,  eff.  6-28-01;  92-35,
 9    eff.  7-1-01;  92-227,  eff.  8-2-01;  92-337,  eff. 8-10-01;
10    92-484, eff. 8-23-01;  92-488,  eff.  8-23-01;  92-651,  eff.
11    7-11-02.)

12        Section 20.  The Retailers' Occupation Tax Act is amended
13    by changing Section 2-5 as follows:

14        (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
15        Sec. 2-5.  Exemptions.  Gross receipts from proceeds from
16    the  sale  of  the  following  tangible personal property are
17    exempt from the tax imposed by this Act:
18        (1)  Farm chemicals.
19        (2)  Farm machinery and equipment,  both  new  and  used,
20    including  that  manufactured  on special order, certified by
21    the purchaser to be used primarily for production agriculture
22    or  State  or  federal   agricultural   programs,   including
23    individual replacement parts for the machinery and equipment,
24    including  machinery  and  equipment purchased for lease, and
25    including implements of husbandry defined in Section 1-130 of
26    the Illinois Vehicle Code, farm  machinery  and  agricultural
27    chemical  and fertilizer spreaders, and nurse wagons required
28    to be registered under Section 3-809 of the Illinois  Vehicle
29    Code,  but  excluding  other  motor  vehicles  required to be
30    registered under the  Illinois  Vehicle  Code.  Horticultural
31    polyhouses  or  hoop houses used for propagating, growing, or
32    overwintering plants shall be considered farm  machinery  and
 
                            -30-     LRB093 06821 SJM 06966 b
 1    equipment  under  this item (2). Agricultural chemical tender
 2    tanks and dry boxes shall include units sold separately  from
 3    a  motor  vehicle  required  to  be  licensed  and units sold
 4    mounted on a motor vehicle required to be  licensed,  if  the
 5    selling price of the tender is separately stated.
 6        Farm  machinery  and  equipment  shall  include precision
 7    farming equipment  that  is  installed  or  purchased  to  be
 8    installed  on farm machinery and equipment including, but not
 9    limited  to,  tractors,   harvesters,   sprayers,   planters,
10    seeders,  or spreaders. Precision farming equipment includes,
11    but is not  limited  to,  soil  testing  sensors,  computers,
12    monitors,  software,  global positioning and mapping systems,
13    and other such equipment.
14        Farm machinery and  equipment  also  includes  computers,
15    sensors,  software,  and  related equipment used primarily in
16    the computer-assisted  operation  of  production  agriculture
17    facilities,  equipment,  and  activities  such  as,  but  not
18    limited  to,  the  collection, monitoring, and correlation of
19    animal and crop data for the purpose  of  formulating  animal
20    diets  and  agricultural  chemicals.  This item (7) is exempt
21    from the provisions of Section 2-70.
22        (3)  Distillation machinery and equipment, sold as a unit
23    or kit, assembled or installed by the retailer, certified  by
24    the  user to be used only for the production of ethyl alcohol
25    that will be used for consumption  as  motor  fuel  or  as  a
26    component of motor fuel for the personal use of the user, and
27    not subject to sale or resale.
28        (4)  Graphic  arts  machinery  and  equipment,  including
29    repair   and  replacement  parts,  both  new  and  used,  and
30    including that manufactured on special order or purchased for
31    lease, certified by the purchaser to be  used  primarily  for
32    graphic  arts  production.  Equipment  includes  chemicals or
33    chemicals acting as catalysts but only if  the  chemicals  or
34    chemicals  acting  as catalysts effect a direct and immediate
 
                            -31-     LRB093 06821 SJM 06966 b
 1    change upon a graphic arts product.
 2        (5)  A motor vehicle  of  the  first  division,  a  motor
 3    vehicle of the second division that is a self-contained motor
 4    vehicle  designed  or permanently converted to provide living
 5    quarters for  recreational,  camping,  or  travel  use,  with
 6    direct  walk  through  access to the living quarters from the
 7    driver's seat, or a motor vehicle of the second division that
 8    is of the van configuration designed for  the  transportation
 9    of not less than 7 nor more than 16 passengers, as defined in
10    Section  1-146 of the Illinois Vehicle Code, that is used for
11    automobile renting, as  defined  in  the  Automobile  Renting
12    Occupation and Use Tax Act.
13        (6)  Personal   property   sold  by  a  teacher-sponsored
14    student  organization  affiliated  with  an   elementary   or
15    secondary school located in Illinois.
16        (7)  Proceeds  of  that portion of the selling price of a
17    passenger car the sale of which is subject to the Replacement
18    Vehicle Tax.
19        (8)  Personal property sold to an  Illinois  county  fair
20    association  for  use  in conducting, operating, or promoting
21    the county fair.
22        (9)  Personal property sold to a not-for-profit  arts  or
23    cultural  organization that establishes, by proof required by
24    the Department by rule, that it  has  received  an  exemption
25    under Section 501(c)(3) of the Internal Revenue Code and that
26    is  organized  and operated primarily for the presentation or
27    support of  arts  or  cultural  programming,  activities,  or
28    services.   These  organizations include, but are not limited
29    to, music and dramatic arts organizations  such  as  symphony
30    orchestras  and  theatrical groups, arts and cultural service
31    organizations,   local    arts    councils,    visual    arts
32    organizations, and media arts organizations. On and after the
33    effective  date  of  this  amendatory Act of the 92nd General
34    Assembly, however, an  entity  otherwise  eligible  for  this
 
                            -32-     LRB093 06821 SJM 06966 b
 1    exemption  shall not make tax-free purchases unless it has an
 2    active identification number issued by the Department.
 3        (10)  Personal property sold by a  corporation,  society,
 4    association,  foundation, institution, or organization, other
 5    than a limited  liability  company,  that  is  organized  and
 6    operated  as  a  not-for-profit  service  enterprise  for the
 7    benefit of persons 65 years of age or older if  the  personal
 8    property  was not purchased by the enterprise for the purpose
 9    of resale by the enterprise.
10        (11)  Personal property sold to a governmental body, to a
11    corporation, society, association, foundation, or institution
12    organized and operated exclusively for charitable, religious,
13    or educational purposes, or to a not-for-profit  corporation,
14    society,    association,    foundation,    institution,    or
15    organization  that  has  no compensated officers or employees
16    and  that  is  organized  and  operated  primarily  for   the
17    recreation  of  persons  55  years of age or older. A limited
18    liability company may qualify for the  exemption  under  this
19    paragraph  only if the limited liability company is organized
20    and operated exclusively for  educational  purposes.  On  and
21    after July 1, 1987, however, no entity otherwise eligible for
22    this exemption shall make tax-free purchases unless it has an
23    active identification number issued by the Department.
24        (12)  Personal  property  sold to interstate carriers for
25    hire for use as rolling stock moving in  interstate  commerce
26    or  to lessors under leases of one year or longer executed or
27    in effect at the time of purchase by interstate carriers  for
28    hire  for  use as rolling stock moving in interstate commerce
29    and equipment  operated  by  a  telecommunications  provider,
30    licensed  as  a  common carrier by the Federal Communications
31    Commission, which is permanently installed in or  affixed  to
32    aircraft moving in interstate commerce.
33        (13)  Proceeds from sales to owners, lessors, or shippers
34    of  tangible personal property that is utilized by interstate
 
                            -33-     LRB093 06821 SJM 06966 b
 1    carriers  for  hire  for  use  as  rolling  stock  moving  in
 2    interstate   commerce   and   equipment   operated    by    a
 3    telecommunications  provider, licensed as a common carrier by
 4    the Federal Communications Commission, which  is  permanently
 5    installed  in  or  affixed  to  aircraft moving in interstate
 6    commerce.
 7        (14)  Machinery and equipment that will be  used  by  the
 8    purchaser,  or  a  lessee  of the purchaser, primarily in the
 9    process of  manufacturing  or  assembling  tangible  personal
10    property  for  wholesale or retail sale or lease, whether the
11    sale or lease is made directly by the manufacturer or by some
12    other person, whether the materials used in the  process  are
13    owned  by  the  manufacturer or some other person, or whether
14    the sale or lease is made apart from or as an incident to the
15    seller's engaging in  the  service  occupation  of  producing
16    machines,  tools,  dies,  jigs,  patterns,  gauges,  or other
17    similar items of no commercial value on special order  for  a
18    particular purchaser.
19        (15)  Proceeds  of  mandatory  service charges separately
20    stated on customers' bills for purchase  and  consumption  of
21    food  and  beverages,  to the extent that the proceeds of the
22    service charge are in fact  turned  over  as  tips  or  as  a
23    substitute for tips to the employees who participate directly
24    in  preparing,  serving,  hosting  or cleaning up the food or
25    beverage function with respect to which the service charge is
26    imposed.
27        (16)  Petroleum products  sold  to  a  purchaser  if  the
28    seller  is prohibited by federal law from charging tax to the
29    purchaser.
30        (17)  Tangible personal property sold to a common carrier
31    by rail or motor that receives the physical possession of the
32    property in Illinois and that  transports  the  property,  or
33    shares  with  another common carrier in the transportation of
34    the property, out of Illinois on a standard uniform  bill  of
 
                            -34-     LRB093 06821 SJM 06966 b
 1    lading  showing  the seller of the property as the shipper or
 2    consignor of the property to a destination outside  Illinois,
 3    for use outside Illinois.
 4        (18)  Legal  tender,  currency,  medallions,  or  gold or
 5    silver  coinage  issued  by  the  State  of   Illinois,   the
 6    government of the United States of America, or the government
 7    of any foreign country, and bullion.
 8        (19)  Oil  field  exploration,  drilling,  and production
 9    equipment, including (i) rigs and parts of rigs, rotary rigs,
10    cable tool rigs, and workover rigs,  (ii)  pipe  and  tubular
11    goods,  including  casing  and drill strings, (iii) pumps and
12    pump-jack units, (iv) storage tanks and flow lines,  (v)  any
13    individual   replacement  part  for  oil  field  exploration,
14    drilling, and production equipment, and  (vi)  machinery  and
15    equipment  purchased  for lease; but excluding motor vehicles
16    required to be registered under the Illinois Vehicle Code.
17        (20)  Photoprocessing machinery and equipment,  including
18    repair  and  replacement  parts, both new and used, including
19    that  manufactured  on  special  order,  certified   by   the
20    purchaser  to  be  used  primarily  for  photoprocessing, and
21    including photoprocessing machinery and  equipment  purchased
22    for lease.
23        (21)  Coal   exploration,   mining,  offhighway  hauling,
24    processing, maintenance, and reclamation equipment, including
25    replacement parts  and  equipment,  and  including  equipment
26    purchased for lease, but excluding motor vehicles required to
27    be registered under the Illinois Vehicle Code.
28        (22)  Fuel  and  petroleum products sold to or used by an
29    air  carrier,  certified  by  the  carrier  to  be  used  for
30    consumption, shipment, or  storage  in  the  conduct  of  its
31    business  as an air common carrier, for a flight destined for
32    or returning from a location or locations outside the  United
33    States  without  regard  to  previous  or subsequent domestic
34    stopovers.
 
                            -35-     LRB093 06821 SJM 06966 b
 1        (23)  A  transaction  in  which  the  purchase  order  is
 2    received by a florist who is located  outside  Illinois,  but
 3    who has a florist located in Illinois deliver the property to
 4    the purchaser or the purchaser's donee in Illinois.
 5        (24)  Fuel  consumed  or  used in the operation of ships,
 6    barges, or vessels that are used  primarily  in  or  for  the
 7    transportation  of  property or the conveyance of persons for
 8    hire on rivers  bordering  on  this  State  if  the  fuel  is
 9    delivered  by  the  seller to the purchaser's barge, ship, or
10    vessel while it is afloat upon that bordering river.
11        (25)  A motor vehicle sold in this State to a nonresident
12    even though the motor vehicle is delivered to the nonresident
13    in this State, if the motor vehicle is not to  be  titled  in
14    this State, and if a drive-away permit is issued to the motor
15    vehicle  as provided in Section 3-603 of the Illinois Vehicle
16    Code or if the nonresident purchaser has vehicle registration
17    plates to transfer to the motor vehicle upon returning to his
18    or her home state.  The issuance of the drive-away permit  or
19    having the out-of-state registration plates to be transferred
20    is  prima  facie  evidence that the motor vehicle will not be
21    titled in this State.
22        (26)  Semen used for artificial insemination of livestock
23    for direct agricultural production.
24        (27)  Horses, or interests in horses, registered with and
25    meeting the requirements of any of  the  Arabian  Horse  Club
26    Registry  of  America, Appaloosa Horse Club, American Quarter
27    Horse Association, United  States  Trotting  Association,  or
28    Jockey Club, as appropriate, used for purposes of breeding or
29    racing for prizes.
30        (28)  Computers and communications equipment utilized for
31    any  hospital  purpose  and  equipment used in the diagnosis,
32    analysis, or treatment of hospital patients sold to a  lessor
33    who leases the equipment, under a lease of one year or longer
34    executed  or  in  effect  at  the  time of the purchase, to a
 
                            -36-     LRB093 06821 SJM 06966 b
 1    hospital  that  has  been  issued  an  active  tax  exemption
 2    identification number by the Department under Section  1g  of
 3    this Act.
 4        (29)  Personal  property  sold to a lessor who leases the
 5    property, under a lease of one year or longer executed or  in
 6    effect  at  the  time of the purchase, to a governmental body
 7    that has been issued an active tax  exemption  identification
 8    number by the Department under Section 1g of this Act.
 9        (30)  Beginning  with  taxable  years  ending on or after
10    December 31, 1995 and ending with taxable years ending on  or
11    before  December  31, 2004, personal property that is donated
12    for disaster relief to  be  used  in  a  State  or  federally
13    declared disaster area in Illinois or bordering Illinois by a
14    manufacturer  or retailer that is registered in this State to
15    a   corporation,   society,   association,   foundation,   or
16    institution that  has  been  issued  a  sales  tax  exemption
17    identification  number by the Department that assists victims
18    of the disaster who reside within the declared disaster area.
19        (31)  Beginning with taxable years  ending  on  or  after
20    December  31, 1995 and ending with taxable years ending on or
21    before December 31, 2004, personal property that is  used  in
22    the  performance  of  infrastructure  repairs  in this State,
23    including but not limited to  municipal  roads  and  streets,
24    access  roads,  bridges,  sidewalks,  waste disposal systems,
25    water and  sewer  line  extensions,  water  distribution  and
26    purification  facilities,  storm water drainage and retention
27    facilities, and sewage treatment facilities, resulting from a
28    State or federally declared disaster in Illinois or bordering
29    Illinois  when  such  repairs  are  initiated  on  facilities
30    located in the declared disaster area within 6  months  after
31    the disaster.
32        (32)  Beginning  July 1, 1999, game or game birds sold at
33    a "game breeding and hunting preserve  area"  or  an  "exotic
34    game  hunting  area"  as those terms are used in the Wildlife
 
                            -37-     LRB093 06821 SJM 06966 b
 1    Code or at a hunting enclosure approved through rules adopted
 2    by the Department of Natural Resources.   This  paragraph  is
 3    exempt from the provisions of Section 2-70.
 4        (33)  A motor vehicle, as that term is defined in Section
 5    1-146  of  the  Illinois  Vehicle  Code, that is donated to a
 6    corporation, limited liability company, society, association,
 7    foundation,  or  institution  that  is  determined   by   the
 8    Department  to  be  organized  and  operated  exclusively for
 9    educational purposes.  For purposes  of  this  exemption,  "a
10    corporation, limited liability company, society, association,
11    foundation, or institution organized and operated exclusively
12    for  educational  purposes"  means  all  tax-supported public
13    schools, private schools that offer systematic instruction in
14    useful branches of  learning  by  methods  common  to  public
15    schools  and  that  compare  favorably  in  their  scope  and
16    intensity with the course of study presented in tax-supported
17    schools,  and  vocational  or technical schools or institutes
18    organized and operated exclusively to  provide  a  course  of
19    study  of  not  less  than  6  weeks duration and designed to
20    prepare individuals to follow a trade or to pursue a  manual,
21    technical,  mechanical,  industrial,  business, or commercial
22    occupation.
23        (34)  Beginning  January  1,  2000,   personal  property,
24    including food, purchased through fundraising events for  the
25    benefit  of  a  public  or  private  elementary  or secondary
26    school, a group of those  schools,  or  one  or  more  school
27    districts if the events are sponsored by an entity recognized
28    by  the school district that consists primarily of volunteers
29    and includes parents and teachers  of  the  school  children.
30    This  paragraph  does not apply to fundraising events (i) for
31    the benefit of private home instruction or (ii) for which the
32    fundraising entity purchases the personal  property  sold  at
33    the  events  from  another individual or entity that sold the
34    property for the purpose of resale by the fundraising  entity
 
                            -38-     LRB093 06821 SJM 06966 b
 1    and  that  profits  from  the sale to the fundraising entity.
 2    This paragraph is exempt from the provisions of Section 2-70.
 3        (35)  Beginning January 1, 2000 and through December  31,
 4    2001, new or used automatic vending machines that prepare and
 5    serve  hot  food  and  beverages, including coffee, soup, and
 6    other  items,  and  replacement  parts  for  these  machines.
 7    Beginning January 1, 2002, machines and  parts  for  machines
 8    used  in  commercial,  coin-operated  amusement  and  vending
 9    business  if  a  use  or  occupation tax is paid on the gross
10    receipts  derived   from   the   use   of   the   commercial,
11    coin-operated  amusement and vending machines. This paragraph
12    is exempt from the provisions of Section 2-70.
13        (35-5) (36)  Food for human consumption  that  is  to  be
14    consumed  off  the  premises  where  it  is  sold (other than
15    alcoholic beverages, soft drinks,  and  food  that  has  been
16    prepared  for  immediate  consumption)  and  prescription and
17    nonprescription medicines,  drugs,  medical  appliances,  and
18    insulin,  urine testing materials, syringes, and needles used
19    by diabetics, for human use, when  purchased  for  use  by  a
20    person  receiving  medical  assistance under Article 5 of the
21    Illinois Public Aid Code who resides in a licensed  long-term
22    care facility, as defined in the Nursing Home Care Act.
23        (36)  Beginning  on the effective date of this amendatory
24    Act   of   the   92nd   General   Assembly,   computers   and
25    communications equipment utilized for  any  hospital  purpose
26    and  equipment  used in the diagnosis, analysis, or treatment
27    of  hospital  patients  sold  to  a  lessor  who  leases  the
28    equipment, under a lease of one year or longer executed or in
29    effect at the time of the purchase, to a  hospital  that  has
30    been  issued an active tax exemption identification number by
31    the Department under Section 1g of this Act.  This  paragraph
32    is exempt from the provisions of Section 2-70.
33        (37)  Beginning  on the effective date of this amendatory
34    Act of the 92nd General Assembly, personal property sold to a
 
                            -39-     LRB093 06821 SJM 06966 b
 1    lessor who leases the property, under a lease of one year  or
 2    longer  executed or in effect at the time of the purchase, to
 3    a governmental body  that  has  been  issued  an  active  tax
 4    exemption  identification  number  by  the  Department  under
 5    Section  1g  of  this Act.  This paragraph is exempt from the
 6    provisions of Section 2-70.
 7        (38)  Beginning on January  1,  2002,  tangible  personal
 8    property  purchased  from  an Illinois retailer by a taxpayer
 9    engaged in centralized purchasing activities in Illinois  who
10    will,  upon  receipt of the property in Illinois, temporarily
11    store the  property  in  Illinois  (i)  for  the  purpose  of
12    subsequently  transporting  it  outside this State for use or
13    consumption thereafter solely outside this State or (ii)  for
14    the  purpose  of being processed, fabricated, or manufactured
15    into,  attached  to,  or  incorporated  into  other  tangible
16    personal property to be transported outside  this  State  and
17    thereafter  used  or consumed solely outside this State.  The
18    Director of Revenue  shall,  pursuant  to  rules  adopted  in
19    accordance  with  the  Illinois Administrative Procedure Act,
20    issue a permit to any taxpayer  in  good  standing  with  the
21    Department  who  is  eligible  for  the  exemption under this
22    paragraph (38).  The permit issued under this paragraph  (38)
23    shall  authorize  the holder, to the extent and in the manner
24    specified in the rules adopted under this  Act,  to  purchase
25    tangible  personal  property  from a retailer exempt from the
26    taxes imposed by this  Act.   Taxpayers  shall  maintain  all
27    necessary  books  and  records  to  substantiate  the use and
28    consumption of all such tangible personal property outside of
29    the State of Illinois.
30        (39)  Beginning   on   January    1,    2004,    modular,
31    pre-fabricated, metal, storage, and other structures used for
32    agricultural  purposes,  including,  but not limited to, pole
33    barns used for storing  agricultural  inputs  and  equipment,
34    bins  used  for storing agricultural products, and sheds used
 
                            -40-     LRB093 06821 SJM 06966 b
 1    for protecting livestock. This exemption is allowed  only  if
 2    the  purchaser  certifies that the structure will be used for
 3    agricultural purposes. This  paragraph  is  exempt  from  the
 4    provisions of Section 2-70.
 5    (Source: P.A.  91-51,  eff.  6-30-99;  91-200,  eff. 7-20-99;
 6    91-439, eff.  8-6-99;  91-533,  eff.  8-13-99;  91-637,  eff.
 7    8-20-99;  91-644,  eff. 8-20-99;  92-16, eff. 6-28-01; 92-35,
 8    eff. 7-1-01;  92-227,  eff.  8-2-01;  92-337,  eff.  8-10-01;
 9    92-484,  eff.  8-23-01;  92-488,  eff.  8-23-01; 92-651, eff.
10    7-11-02; 92-680, eff. 7-16-02; revised 12-02-02.)

11        Section 99.  Effective date.  This Act  takes  effect  on
12    January 1, 2004.