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1 | AN ACT in relation to taxation.
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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 Section | ||||||
5 | 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 or | ||||||
20 | cultural organization that establishes, by proof required by | ||||||
21 | the
Department by
rule, that it has received an exemption under | ||||||
22 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
23 | 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 to, | ||||||
26 | music and dramatic arts
organizations such as symphony | ||||||
27 | orchestras and theatrical groups, arts and
cultural service | ||||||
28 | organizations, local arts councils, visual arts organizations,
| ||||||
29 | and media arts organizations.
On and after the effective date | ||||||
30 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
31 | an entity otherwise eligible for this exemption shall not
make | ||||||
32 | tax-free purchases unless it has an active identification |
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| |||||||
1 | number issued by
the Department.
| ||||||
2 | (4) Personal property purchased by a governmental body, by | ||||||
3 | a
corporation, society, association, foundation, or | ||||||
4 | institution organized and
operated exclusively for charitable, | ||||||
5 | religious, or educational purposes, or
by a not-for-profit | ||||||
6 | corporation, society, association, foundation,
institution, or | ||||||
7 | organization that has no compensated officers or employees
and | ||||||
8 | that is organized and operated primarily for the recreation of | ||||||
9 | persons
55 years of age or older. A limited liability company | ||||||
10 | may qualify for the
exemption under this paragraph only if the | ||||||
11 | limited liability company is
organized and operated | ||||||
12 | exclusively for educational purposes. On and after July
1, | ||||||
13 | 1987, however, no entity otherwise eligible for this exemption | ||||||
14 | shall make
tax-free purchases unless it has an active exemption | ||||||
15 | identification number
issued by the Department.
| ||||||
16 | (5) Until July 1, 2003, a passenger car that is a | ||||||
17 | replacement vehicle to
the extent that the
purchase price of | ||||||
18 | the car is subject to the Replacement Vehicle Tax.
| ||||||
19 | (6) Graphic
Until July 1, 2003, graphic arts machinery and | ||||||
20 | equipment, including
repair and replacement
parts, both new and | ||||||
21 | used, and including that manufactured on special order,
| ||||||
22 | certified by the purchaser to be used primarily for graphic | ||||||
23 | arts production,
and including machinery and equipment | ||||||
24 | purchased for lease.
Equipment includes chemicals or chemicals | ||||||
25 | acting as catalysts but only if
the
chemicals or chemicals | ||||||
26 | acting as catalysts effect a direct and immediate change
upon a | ||||||
27 | graphic arts product.
| ||||||
28 | (7) Farm chemicals.
| ||||||
29 | (8) Legal tender, currency, medallions, or gold or silver | ||||||
30 | coinage issued by
the State of Illinois, the government of the | ||||||
31 | United States of America, or the
government of any foreign | ||||||
32 | country, and bullion.
| ||||||
33 | (9) Personal property purchased from a teacher-sponsored | ||||||
34 | student
organization affiliated with an elementary or | ||||||
35 | secondary school located in
Illinois.
| ||||||
36 | (10) A motor vehicle of the first division, a motor vehicle |
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| |||||||
1 | of the
second division that is a self-contained motor vehicle | ||||||
2 | designed or
permanently converted to provide living quarters | ||||||
3 | for recreational, camping,
or travel use, with direct walk | ||||||
4 | through to the living quarters from the
driver's seat, or a | ||||||
5 | motor vehicle of the second division that is of the
van | ||||||
6 | configuration designed for the transportation of not less than | ||||||
7 | 7 nor
more than 16 passengers, as defined in Section 1-146 of | ||||||
8 | the Illinois
Vehicle Code, that is used for automobile renting, | ||||||
9 | as defined in the
Automobile Renting Occupation and Use Tax | ||||||
10 | Act.
| ||||||
11 | (11) Farm machinery and equipment, both new and used,
| ||||||
12 | including that manufactured on special order, certified by the | ||||||
13 | purchaser
to be used primarily for production agriculture or | ||||||
14 | State or federal
agricultural programs, including individual | ||||||
15 | replacement parts for
the machinery and equipment, including | ||||||
16 | machinery and equipment
purchased
for lease,
and including | ||||||
17 | implements of husbandry defined in Section 1-130 of
the | ||||||
18 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
19 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
20 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
21 | but excluding other motor
vehicles required to be
registered | ||||||
22 | under the Illinois Vehicle Code.
Horticultural polyhouses or | ||||||
23 | hoop houses used for propagating, growing, or
overwintering | ||||||
24 | plants shall be considered farm machinery and equipment under
| ||||||
25 | this item (11).
Agricultural chemical tender tanks and dry | ||||||
26 | boxes shall include units sold
separately from a motor vehicle | ||||||
27 | required to be licensed and units sold mounted
on a motor | ||||||
28 | vehicle required to be licensed if the selling price of the | ||||||
29 | tender
is separately stated.
| ||||||
30 | Farm machinery and equipment shall include precision | ||||||
31 | farming equipment
that is
installed or purchased to be | ||||||
32 | installed on farm machinery and equipment
including, but not | ||||||
33 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
34 | or spreaders.
Precision farming equipment includes, but is not | ||||||
35 | limited to, soil testing
sensors, computers, monitors, | ||||||
36 | software, global positioning
and mapping systems, and other |
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| |||||||
1 | such equipment.
| ||||||
2 | Farm machinery and equipment also includes computers, | ||||||
3 | sensors, software, and
related equipment used primarily in the
| ||||||
4 | computer-assisted operation of production agriculture | ||||||
5 | facilities, equipment,
and
activities such as, but not limited | ||||||
6 | to,
the collection, monitoring, and correlation of
animal and | ||||||
7 | crop data for the purpose of
formulating animal diets and | ||||||
8 | agricultural chemicals. This item (11) is exempt
from the | ||||||
9 | provisions of
Section 3-90.
| ||||||
10 | (12) Fuel and petroleum products sold to or used by an air | ||||||
11 | common
carrier, certified by the carrier to be used for | ||||||
12 | consumption, shipment, or
storage in the conduct of its | ||||||
13 | business as an air common carrier, for a
flight destined for or | ||||||
14 | returning from a location or locations
outside the United | ||||||
15 | States without regard to previous or subsequent domestic
| ||||||
16 | stopovers.
| ||||||
17 | (13) Proceeds of mandatory service charges separately
| ||||||
18 | stated on customers' bills for the purchase and consumption of | ||||||
19 | food and
beverages purchased at retail from a retailer, to the | ||||||
20 | extent that the proceeds
of the service charge are in fact | ||||||
21 | turned over as tips or as a substitute
for tips to the | ||||||
22 | employees who participate directly in preparing, serving,
| ||||||
23 | hosting or cleaning up the food or beverage function with | ||||||
24 | respect to which
the service charge is imposed.
| ||||||
25 | (14) Until July 1, 2003, oil field exploration, drilling, | ||||||
26 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
27 | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | ||||||
28 | tubular goods,
including casing and drill strings, (iii) pumps | ||||||
29 | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | ||||||
30 | individual replacement part for oil
field exploration, | ||||||
31 | drilling, and production equipment, and (vi) machinery and
| ||||||
32 | equipment purchased
for lease; but excluding motor vehicles | ||||||
33 | required to be registered under the
Illinois Vehicle Code.
| ||||||
34 | (15) Photoprocessing machinery and equipment, including | ||||||
35 | repair and
replacement parts, both new and used, including that
| ||||||
36 | manufactured on special order, certified by the purchaser to be |
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| |||||||
1 | used
primarily for photoprocessing, and including
| ||||||
2 | photoprocessing machinery and equipment purchased for lease.
| ||||||
3 | (16) Until July 1, 2003, coal exploration, mining, | ||||||
4 | offhighway hauling,
processing, maintenance, and reclamation | ||||||
5 | equipment,
including replacement parts and equipment, and
| ||||||
6 | including equipment purchased for lease, but excluding motor
| ||||||
7 | vehicles required to be registered under the Illinois Vehicle | ||||||
8 | Code.
| ||||||
9 | (17) Until July 1, 2003, distillation machinery and | ||||||
10 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
11 | retailer, certified by the user to be used
only for the | ||||||
12 | production of ethyl alcohol that will be used for consumption
| ||||||
13 | as motor fuel or as a component of motor fuel for the personal | ||||||
14 | use of the
user, and not subject to sale or resale.
| ||||||
15 | (18) Manufacturing and assembling machinery and equipment | ||||||
16 | used
primarily in the process of manufacturing or assembling | ||||||
17 | tangible
personal property for wholesale or retail sale or | ||||||
18 | lease, whether that sale
or lease is made directly by the | ||||||
19 | manufacturer or by some other person,
whether the materials | ||||||
20 | used in the process are
owned by the manufacturer or some other | ||||||
21 | person, or whether that sale or
lease is made apart from or as | ||||||
22 | an incident to the seller's engaging in
the service occupation | ||||||
23 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
24 | other similar items of no commercial value on
special order for | ||||||
25 | a particular purchaser.
| ||||||
26 | (19) Personal property delivered to a purchaser or | ||||||
27 | purchaser's donee
inside Illinois when the purchase order for | ||||||
28 | that personal property was
received by a florist located | ||||||
29 | outside Illinois who has a florist located
inside Illinois | ||||||
30 | deliver the personal property.
| ||||||
31 | (20) Semen used for artificial insemination of livestock | ||||||
32 | for direct
agricultural production.
| ||||||
33 | (21) Horses, or interests in horses, registered with and | ||||||
34 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
35 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
36 | Horse Association, United States
Trotting Association, or |
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| |||||||
1 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
2 | racing for prizes.
| ||||||
3 | (22) Computers and communications equipment utilized for | ||||||
4 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
5 | analysis, or treatment of hospital patients purchased by a | ||||||
6 | lessor who leases
the
equipment, under a lease of one year or | ||||||
7 | longer executed or in effect at the
time the lessor would | ||||||
8 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
9 | hospital
that has been issued an active tax exemption | ||||||
10 | identification number by
the
Department under Section 1g of the | ||||||
11 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
12 | manner that does not qualify for
this exemption or is used in | ||||||
13 | any other non-exempt manner, the lessor
shall be liable for the
| ||||||
14 | tax imposed under this Act or the Service Use Tax Act, as the | ||||||
15 | case may
be, based on the fair market value of the property at | ||||||
16 | the time the
non-qualifying use occurs. No lessor shall collect | ||||||
17 | or attempt to collect an
amount (however
designated) that | ||||||
18 | purports to reimburse that lessor for the tax imposed by this
| ||||||
19 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
20 | has not been
paid by the lessor. If a lessor improperly | ||||||
21 | collects any such amount from the
lessee, the lessee shall have | ||||||
22 | a legal right to claim a refund of that amount
from the lessor. | ||||||
23 | If, however, that amount is not refunded to the lessee for
any | ||||||
24 | reason, the lessor is liable to pay that amount to the | ||||||
25 | Department.
| ||||||
26 | (23) Personal property purchased by a lessor who leases the
| ||||||
27 | property, under
a
lease of
one year or longer executed or in | ||||||
28 | effect at the time
the lessor would otherwise be subject to the | ||||||
29 | tax imposed by this Act,
to a governmental body
that has been | ||||||
30 | issued an active sales tax exemption identification number by | ||||||
31 | the
Department under Section 1g of the Retailers' Occupation | ||||||
32 | Tax Act.
If the
property is leased in a manner that does not | ||||||
33 | qualify for
this exemption
or used in any other non-exempt | ||||||
34 | manner, the lessor shall be liable for the
tax imposed under | ||||||
35 | this Act or the Service Use Tax Act, as the case may
be, based | ||||||
36 | on the fair market value of the property at the time the
|
| |||||||
| |||||||
1 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
2 | to collect an
amount (however
designated) that purports to | ||||||
3 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
4 | Service Use Tax Act, as the case may be, if the tax has not been
| ||||||
5 | paid by the lessor. If a lessor improperly collects any such | ||||||
6 | amount from the
lessee, the lessee shall have a legal right to | ||||||
7 | claim a refund of that amount
from the lessor. If, however, | ||||||
8 | that amount is not refunded to the lessee for
any reason, the | ||||||
9 | lessor is liable to pay that amount to the Department.
| ||||||
10 | (24) Beginning with taxable years ending on or after | ||||||
11 | December
31, 1995
and
ending with taxable years ending on or | ||||||
12 | before December 31, 2004,
personal property that is
donated for | ||||||
13 | disaster relief to be used in a State or federally declared
| ||||||
14 | disaster area in Illinois or bordering Illinois by a | ||||||
15 | manufacturer or retailer
that is registered in this State to a | ||||||
16 | corporation, society, association,
foundation, or institution | ||||||
17 | that has been issued a sales tax exemption
identification | ||||||
18 | number by the Department that assists victims of the disaster
| ||||||
19 | who reside within the declared disaster area.
| ||||||
20 | (25) Beginning with taxable years ending on or after | ||||||
21 | December
31, 1995 and
ending with taxable years ending on or | ||||||
22 | before December 31, 2004, personal
property that is used in the | ||||||
23 | performance of infrastructure repairs in this
State, including | ||||||
24 | but not limited to municipal roads and streets, access roads,
| ||||||
25 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
26 | line extensions,
water distribution and purification | ||||||
27 | facilities, storm water drainage and
retention facilities, and | ||||||
28 | sewage treatment facilities, resulting from a State
or | ||||||
29 | federally declared disaster in Illinois or bordering Illinois | ||||||
30 | when such
repairs are initiated on facilities located in the | ||||||
31 | declared disaster area
within 6 months after the disaster.
| ||||||
32 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
33 | at a "game
breeding
and hunting preserve area" or an "exotic | ||||||
34 | game hunting area" as those terms are
used in
the Wildlife Code | ||||||
35 | or at a hunting enclosure approved through rules adopted by
the
| ||||||
36 | Department of Natural Resources. This paragraph is exempt from |
| |||||||
| |||||||
1 | the provisions
of
Section 3-90.
| ||||||
2 | (27) A motor vehicle, as that term is defined in Section | ||||||
3 | 1-146
of the
Illinois
Vehicle Code, that is donated to a | ||||||
4 | corporation, limited liability company,
society, association, | ||||||
5 | foundation, or institution that is determined by the
Department | ||||||
6 | to be organized and operated exclusively for educational | ||||||
7 | purposes.
For purposes of this exemption, "a corporation, | ||||||
8 | limited liability company,
society, association, foundation, | ||||||
9 | or institution organized and operated
exclusively for | ||||||
10 | educational purposes" means all tax-supported public schools,
| ||||||
11 | private schools that offer systematic instruction in useful | ||||||
12 | branches of
learning by methods common to public schools and | ||||||
13 | that compare favorably in
their scope and intensity with the | ||||||
14 | course of study presented in tax-supported
schools, and | ||||||
15 | vocational or technical schools or institutes organized and
| ||||||
16 | operated exclusively to provide a course of study of not less | ||||||
17 | than 6 weeks
duration and designed to prepare individuals to | ||||||
18 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
19 | industrial, business, or commercial
occupation.
| ||||||
20 | (28) Beginning January 1, 2000, personal property, | ||||||
21 | including
food,
purchased through fundraising
events for the | ||||||
22 | benefit of
a public or private elementary or
secondary school, | ||||||
23 | a group of those schools, or one or more school
districts if | ||||||
24 | the events are
sponsored by an entity recognized by the school | ||||||
25 | district that consists
primarily of volunteers and includes
| ||||||
26 | parents and teachers of the school children. This paragraph | ||||||
27 | does not apply
to fundraising
events (i) for the benefit of | ||||||
28 | private home instruction or (ii)
for which the fundraising | ||||||
29 | entity purchases the personal property sold at
the events from | ||||||
30 | another individual or entity that sold the property for the
| ||||||
31 | purpose of resale by the fundraising entity and that
profits | ||||||
32 | from the sale to the
fundraising entity. This paragraph is | ||||||
33 | exempt
from the provisions
of Section 3-90.
| ||||||
34 | (29) Beginning January 1, 2000 and through December 31, | ||||||
35 | 2001, new or
used automatic vending
machines that prepare and | ||||||
36 | serve hot food and beverages, including coffee, soup,
and
other |
| |||||||
| |||||||
1 | items, and replacement parts for these machines.
Beginning | ||||||
2 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
3 | for machines used in
commercial, coin-operated amusement and | ||||||
4 | vending business if a use or occupation
tax is paid on the | ||||||
5 | gross receipts derived from the use of the commercial,
| ||||||
6 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
7 | is exempt from the provisions of Section 3-90.
| ||||||
8 | (30) Food for human consumption that is to be consumed off | ||||||
9 | the premises
where it is sold (other than alcoholic beverages, | ||||||
10 | soft drinks, and food that
has been prepared for immediate | ||||||
11 | consumption) and prescription and
nonprescription medicines, | ||||||
12 | drugs, medical appliances, and insulin, urine
testing | ||||||
13 | materials, syringes, and needles used by diabetics, for human | ||||||
14 | use, when
purchased for use by a person receiving medical | ||||||
15 | assistance under Article 5 of
the Illinois Public Aid Code who | ||||||
16 | resides in a licensed long-term care facility,
as defined in | ||||||
17 | the Nursing Home Care Act.
| ||||||
18 | (31) Beginning on
the effective date of this amendatory Act | ||||||
19 | of the 92nd General Assembly,
computers and communications | ||||||
20 | equipment
utilized for any hospital purpose and equipment used | ||||||
21 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
22 | purchased by a lessor who leases
the equipment, under a lease | ||||||
23 | of one year or longer executed or in effect at the
time the | ||||||
24 | lessor would otherwise be subject to the tax imposed by this | ||||||
25 | Act, to a
hospital that has been issued an active tax exemption | ||||||
26 | identification number by
the Department under Section 1g of the | ||||||
27 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
28 | manner that does not qualify for this exemption or is
used in | ||||||
29 | any other nonexempt manner, the lessor shall be liable for the | ||||||
30 | tax
imposed under this Act or the Service Use Tax Act, as the | ||||||
31 | case may be, based on
the fair market value of the property at | ||||||
32 | the time the nonqualifying use
occurs. No lessor shall collect | ||||||
33 | or attempt to collect an amount (however
designated) that | ||||||
34 | purports to reimburse that lessor for the tax imposed by this
| ||||||
35 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
36 | has not been
paid by the lessor. If a lessor improperly |
| |||||||
| |||||||
1 | collects any such amount from the
lessee, the lessee shall have | ||||||
2 | a legal right to claim a refund of that amount
from the lessor. | ||||||
3 | If, however, that amount is not refunded to the lessee for
any | ||||||
4 | reason, the lessor is liable to pay that amount to the | ||||||
5 | Department.
This paragraph is exempt from the provisions of | ||||||
6 | Section 3-90.
| ||||||
7 | (32) Beginning on
the effective date of this amendatory Act | ||||||
8 | of the 92nd General Assembly,
personal property purchased by a | ||||||
9 | lessor who leases the property,
under a lease of one year or | ||||||
10 | longer executed or in effect at the time the
lessor would | ||||||
11 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
12 | governmental body that has been issued an active sales tax | ||||||
13 | exemption
identification number by the Department under | ||||||
14 | Section 1g of the Retailers'
Occupation Tax Act. If the | ||||||
15 | property is leased in a manner that does not
qualify for this | ||||||
16 | exemption or used in any other nonexempt manner, the lessor
| ||||||
17 | shall be liable for the tax imposed under this Act or the | ||||||
18 | Service Use Tax Act,
as the case may be, based on the fair | ||||||
19 | market value of the property at the time
the nonqualifying use | ||||||
20 | occurs. No lessor shall collect or attempt to collect
an amount | ||||||
21 | (however designated) that purports to reimburse that lessor for | ||||||
22 | the
tax imposed by this Act or the Service Use Tax Act, as the | ||||||
23 | case may be, if the
tax has not been paid by the lessor. If a | ||||||
24 | lessor improperly collects any such
amount from the lessee, the | ||||||
25 | lessee shall have a legal right to claim a refund
of that | ||||||
26 | amount from the lessor. If, however, that amount is not | ||||||
27 | refunded to
the lessee for any reason, the lessor is liable to | ||||||
28 | pay that amount to the
Department. This paragraph is exempt | ||||||
29 | from the provisions of Section 3-90.
| ||||||
30 | (33) On and after July 1, 2003, the use in this State of | ||||||
31 | motor vehicles of
the second division with a gross vehicle | ||||||
32 | weight in excess of 8,000 pounds and
that are subject to the | ||||||
33 | commercial distribution fee imposed under Section
3-815.1 of | ||||||
34 | the Illinois Vehicle Code. This exemption applies to repair and
| ||||||
35 | replacement parts added after the initial purchase of such a | ||||||
36 | motor vehicle if
that motor
vehicle is used in a manner that |
| |||||||
| |||||||
1 | would qualify for the rolling stock exemption
otherwise | ||||||
2 | provided for in this Act.
| ||||||
3 | (Source: P.A. 92-35, eff.
7-1-01; 92-227, eff. 8-2-01; 92-337, | ||||||
4 | eff. 8-10-01; 92-484, eff. 8-23-01;
92-651, eff. 7-11-02; | ||||||
5 | 93-23, eff. 6-20-03; 93-24, eff. 6-20-03; revised
9-11-03.)
| ||||||
6 | Section 10. The Service Use Tax Act is amended by changing | ||||||
7 | Section 3-5 as follows:
| ||||||
8 | (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
| ||||||
9 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
10 | personal property
is exempt from the tax imposed by this Act:
| ||||||
11 | (1) Personal property purchased from a corporation, | ||||||
12 | society,
association, foundation, institution, or | ||||||
13 | organization, other than a limited
liability company, that is | ||||||
14 | organized and operated as a not-for-profit service
enterprise | ||||||
15 | for the benefit of persons 65 years of age or older if the | ||||||
16 | personal
property was not purchased by the enterprise for the | ||||||
17 | purpose of resale by the
enterprise.
| ||||||
18 | (2) Personal property purchased by a non-profit Illinois | ||||||
19 | county fair
association for use in conducting, operating, or | ||||||
20 | promoting the county fair.
| ||||||
21 | (3) Personal property purchased by a not-for-profit arts
or | ||||||
22 | cultural
organization that establishes, by proof required by | ||||||
23 | the Department by rule,
that it has received an exemption under | ||||||
24 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
25 | organized and operated primarily for the
presentation
or | ||||||
26 | support of arts or cultural programming, activities, or | ||||||
27 | services. These
organizations include, but are not limited to, | ||||||
28 | music and dramatic arts
organizations such as symphony | ||||||
29 | orchestras and theatrical groups, arts and
cultural service | ||||||
30 | organizations, local arts councils, visual arts organizations,
| ||||||
31 | and media arts organizations.
On and after the effective date | ||||||
32 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
33 | an entity otherwise eligible for this exemption shall not
make | ||||||
34 | tax-free purchases unless it has an active identification |
| |||||||
| |||||||
1 | number issued by
the Department.
| ||||||
2 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
3 | coinage issued
by the State of Illinois, the government of the | ||||||
4 | United States of America,
or the government of any foreign | ||||||
5 | country, and bullion.
| ||||||
6 | (5) Graphic
Until July 1, 2003, graphic arts machinery and | ||||||
7 | equipment, including
repair and
replacement parts, both new and | ||||||
8 | used, and including that manufactured on
special order or | ||||||
9 | purchased for lease, certified by the purchaser to be used
| ||||||
10 | primarily for graphic arts production.
Equipment includes | ||||||
11 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
12 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
13 | immediate
change upon a graphic arts product.
| ||||||
14 | (6) Personal property purchased from a teacher-sponsored | ||||||
15 | student
organization affiliated with an elementary or | ||||||
16 | secondary school located
in Illinois.
| ||||||
17 | (7) Farm machinery and equipment, both new and used, | ||||||
18 | including that
manufactured on special order, certified by the | ||||||
19 | purchaser to be used
primarily for production agriculture or | ||||||
20 | State or federal agricultural
programs, including individual | ||||||
21 | replacement parts for the machinery and
equipment, including | ||||||
22 | machinery and equipment purchased for lease,
and including | ||||||
23 | implements of husbandry defined in Section 1-130 of
the | ||||||
24 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
25 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
26 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
27 | but
excluding other motor vehicles required to be registered | ||||||
28 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
29 | hoop houses used for propagating, growing, or
overwintering | ||||||
30 | plants shall be considered farm machinery and equipment under
| ||||||
31 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
32 | shall include units sold
separately from a motor vehicle | ||||||
33 | required to be licensed and units sold mounted
on a motor | ||||||
34 | vehicle required to be licensed if the selling price of the | ||||||
35 | tender
is separately stated.
| ||||||
36 | Farm machinery and equipment shall include precision |
| |||||||
| |||||||
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,
seeders, | ||||||
4 | or spreaders.
Precision farming equipment includes, but is not | ||||||
5 | limited to,
soil testing sensors, computers, monitors, | ||||||
6 | software, global positioning
and mapping systems, and other | ||||||
7 | such equipment.
| ||||||
8 | Farm machinery and equipment also includes computers, | ||||||
9 | sensors, software, and
related equipment used primarily in the
| ||||||
10 | computer-assisted operation of production agriculture | ||||||
11 | facilities, equipment,
and activities such as, but
not limited | ||||||
12 | to,
the collection, monitoring, and correlation of
animal and | ||||||
13 | crop data for the purpose of
formulating animal diets and | ||||||
14 | agricultural chemicals. This item (7) is exempt
from the | ||||||
15 | provisions of
Section 3-75.
| ||||||
16 | (8) Fuel and petroleum products sold to or used by an air | ||||||
17 | 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 or | ||||||
20 | returning from a location or locations
outside the United | ||||||
21 | States without regard to previous or subsequent domestic
| ||||||
22 | stopovers.
| ||||||
23 | (9) Proceeds of mandatory service charges separately | ||||||
24 | stated on
customers' bills for the purchase and consumption of | ||||||
25 | food and beverages
acquired as an incident to the purchase of a | ||||||
26 | service from a serviceman, to
the extent that the proceeds of | ||||||
27 | the service charge are in fact
turned over as tips or as a | ||||||
28 | substitute for tips to the employees who
participate directly | ||||||
29 | in preparing, serving, hosting or cleaning up the
food or | ||||||
30 | beverage function with respect to which the service charge is | ||||||
31 | imposed.
| ||||||
32 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
33 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
34 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
35 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
36 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any |
| |||||||
| |||||||
1 | individual replacement part for oil field exploration,
| ||||||
2 | drilling, and production equipment, and (vi) machinery and | ||||||
3 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
4 | required to be registered under the Illinois
Vehicle Code.
| ||||||
5 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
6 | and
equipment, including repair and replacement parts, both new | ||||||
7 | and
used, including that manufactured on special order, | ||||||
8 | certified by the
purchaser to be used primarily for | ||||||
9 | photoprocessing, and including
photoprocessing machinery and | ||||||
10 | equipment purchased for lease.
| ||||||
11 | (12) Until July 1, 2003, coal exploration, mining, | ||||||
12 | offhighway hauling,
processing,
maintenance, and reclamation | ||||||
13 | equipment, including
replacement parts and equipment, and | ||||||
14 | including
equipment purchased for lease, but excluding motor | ||||||
15 | vehicles required to be
registered under the Illinois Vehicle | ||||||
16 | Code.
| ||||||
17 | (13) Semen used for artificial insemination of livestock | ||||||
18 | for direct
agricultural production.
| ||||||
19 | (14) Horses, or interests in horses, registered with and | ||||||
20 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
21 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
22 | Horse Association, United States
Trotting Association, or | ||||||
23 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
24 | racing for prizes.
| ||||||
25 | (15) Computers and communications equipment utilized for | ||||||
26 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
27 | analysis, or treatment of hospital patients purchased by a | ||||||
28 | lessor who leases
the
equipment, under a lease of one year or | ||||||
29 | longer executed or in effect at the
time
the lessor would | ||||||
30 | otherwise be subject to the tax imposed by this Act,
to a
| ||||||
31 | hospital
that has been issued an active tax exemption | ||||||
32 | identification number by the
Department under Section 1g of the | ||||||
33 | Retailers' Occupation Tax Act.
If the
equipment is leased in a | ||||||
34 | manner that does not qualify for
this exemption
or is used in | ||||||
35 | any other non-exempt manner,
the lessor shall be liable for the
| ||||||
36 | tax imposed under this Act or the Use Tax Act, as the case may
|
| |||||||
| |||||||
1 | be, based on the fair market value of the property at the time | ||||||
2 | the
non-qualifying use occurs. No lessor shall collect or | ||||||
3 | attempt to collect an
amount (however
designated) that purports | ||||||
4 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
5 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
6 | the lessor. If a lessor improperly collects any such amount | ||||||
7 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
8 | refund of that amount
from the lessor. If, however, that amount | ||||||
9 | is not refunded to the lessee for
any reason, the lessor is | ||||||
10 | liable to pay that amount to the Department.
| ||||||
11 | (16) Personal property purchased by a lessor who leases the
| ||||||
12 | property, under
a
lease of one year or longer executed or in | ||||||
13 | effect at the time
the lessor would otherwise be subject to the | ||||||
14 | tax imposed by this Act,
to a governmental body
that has been | ||||||
15 | issued an active tax exemption identification number by the
| ||||||
16 | Department under Section 1g of the Retailers' Occupation Tax | ||||||
17 | Act.
If the
property is leased in a manner that does not | ||||||
18 | qualify for
this exemption
or is used in any other non-exempt | ||||||
19 | manner,
the lessor shall be liable for the
tax imposed under | ||||||
20 | this Act or the Use Tax Act, as the case may
be, based on the | ||||||
21 | fair market value of the property at the time the
| ||||||
22 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
23 | to collect an
amount (however
designated) that purports to | ||||||
24 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
25 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
26 | the lessor. If a lessor improperly collects any such amount | ||||||
27 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
28 | refund of that amount
from the lessor. If, however, that amount | ||||||
29 | is not refunded to the lessee for
any reason, the lessor is | ||||||
30 | liable to pay that amount to the 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 for | ||||||
34 | disaster relief to be used in a State or federally declared
| ||||||
35 | disaster area in Illinois or bordering Illinois by a | ||||||
36 | manufacturer or retailer
that is registered in this State to a |
| |||||||
| |||||||
1 | corporation, society, association,
foundation, or institution | ||||||
2 | that has been issued a sales tax exemption
identification | ||||||
3 | number by the Department that assists victims of the disaster
| ||||||
4 | who reside within the declared disaster area.
| ||||||
5 | (18) Beginning with taxable years ending on or after | ||||||
6 | December
31, 1995 and
ending with taxable years ending on or | ||||||
7 | before December 31, 2004, personal
property that is used in the | ||||||
8 | performance of infrastructure repairs in this
State, including | ||||||
9 | but not limited to municipal roads and streets, access roads,
| ||||||
10 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
11 | line extensions,
water distribution and purification | ||||||
12 | facilities, storm water drainage and
retention facilities, and | ||||||
13 | sewage treatment facilities, resulting from a State
or | ||||||
14 | federally declared disaster in Illinois or bordering Illinois | ||||||
15 | when such
repairs are initiated on facilities located in the | ||||||
16 | declared disaster area
within 6 months after the disaster.
| ||||||
17 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
18 | at a "game
breeding
and hunting preserve area" or an "exotic | ||||||
19 | game hunting area" as those terms are
used in
the Wildlife Code | ||||||
20 | or at a hunting enclosure approved through rules adopted by
the
| ||||||
21 | Department of Natural Resources. This paragraph is exempt from | ||||||
22 | the provisions
of
Section 3-75.
| ||||||
23 | (20) A motor vehicle, as that term is defined in Section | ||||||
24 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
25 | corporation, limited liability
company, society, association, | ||||||
26 | foundation, or institution that is determined by
the Department | ||||||
27 | to be organized and operated exclusively for educational
| ||||||
28 | purposes. For purposes of this exemption, "a corporation, | ||||||
29 | limited liability
company, society, association, foundation, | ||||||
30 | or institution organized and
operated
exclusively for | ||||||
31 | educational purposes" means all tax-supported public schools,
| ||||||
32 | private schools that offer systematic instruction in useful | ||||||
33 | branches of
learning by methods common to public schools and | ||||||
34 | that compare favorably in
their scope and intensity with the | ||||||
35 | course of study presented in tax-supported
schools, and | ||||||
36 | vocational or technical schools or institutes organized and
|
| |||||||
| |||||||
1 | operated exclusively to provide a course of study of not less | ||||||
2 | than 6 weeks
duration and designed to prepare individuals to | ||||||
3 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
4 | industrial, business, or commercial
occupation.
| ||||||
5 | (21) Beginning January 1, 2000, personal property, | ||||||
6 | including
food,
purchased through fundraising
events for the | ||||||
7 | benefit of
a public or private elementary or
secondary school, | ||||||
8 | a group of those schools, or one or more school
districts if | ||||||
9 | the events are
sponsored by an entity recognized by the school | ||||||
10 | district that consists
primarily of volunteers and includes
| ||||||
11 | parents and teachers of the school children. This paragraph | ||||||
12 | does not apply
to fundraising
events (i) for the benefit of | ||||||
13 | private home instruction or (ii)
for which the fundraising | ||||||
14 | entity purchases the personal property sold at
the events from | ||||||
15 | another individual or entity that sold the property for the
| ||||||
16 | purpose of resale by the fundraising entity and that
profits | ||||||
17 | from the sale to the
fundraising entity. This paragraph is | ||||||
18 | exempt
from the provisions
of Section 3-75.
| ||||||
19 | (22) Beginning January 1, 2000
and through December 31, | ||||||
20 | 2001, new or used automatic vending
machines that prepare and | ||||||
21 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
22 | items, and replacement parts for these machines.
Beginning | ||||||
23 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
24 | for machines used in
commercial, coin-operated
amusement
and | ||||||
25 | vending business if a use or occupation tax is paid on the | ||||||
26 | gross receipts
derived from
the use of the commercial, | ||||||
27 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
28 | is exempt from the provisions of Section 3-75.
| ||||||
29 | (23) Food for human consumption that is to be consumed off | ||||||
30 | the
premises
where it is sold (other than alcoholic beverages, | ||||||
31 | soft drinks, and food that
has been prepared for immediate | ||||||
32 | consumption) and prescription and
nonprescription medicines, | ||||||
33 | drugs, medical appliances, and insulin, urine
testing | ||||||
34 | materials, syringes, and needles used by diabetics, for human | ||||||
35 | use, when
purchased for use by a person receiving medical | ||||||
36 | assistance under Article 5 of
the Illinois Public Aid Code who |
| |||||||
| |||||||
1 | resides in a licensed long-term care facility,
as defined in | ||||||
2 | the Nursing Home Care Act.
| ||||||
3 | (24) Beginning on the effective date of this amendatory Act | ||||||
4 | of the 92nd
General Assembly, computers and communications | ||||||
5 | equipment
utilized for any hospital purpose and equipment used | ||||||
6 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
7 | purchased by a lessor who leases
the equipment, under a lease | ||||||
8 | of one year or longer executed or in effect at the
time the | ||||||
9 | lessor would otherwise be subject to the tax imposed by this | ||||||
10 | Act, to a
hospital that has been issued an active tax exemption | ||||||
11 | identification number by
the Department under Section 1g of the | ||||||
12 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
13 | manner that does not qualify for this exemption or is
used in | ||||||
14 | any other nonexempt manner, the lessor shall be liable for the
| ||||||
15 | tax imposed under this Act or the Use Tax Act, as the case may | ||||||
16 | be, based on the
fair market value of the property at the time | ||||||
17 | the nonqualifying use occurs.
No lessor shall collect or | ||||||
18 | attempt to collect an amount (however
designated) that purports | ||||||
19 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
20 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
21 | the lessor. If a lessor improperly collects any such amount | ||||||
22 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
23 | refund of that amount
from the lessor. If, however, that amount | ||||||
24 | is not refunded to the lessee for
any reason, the lessor is | ||||||
25 | liable to pay that amount to the Department.
This paragraph is | ||||||
26 | exempt from the provisions of Section 3-75.
| ||||||
27 | (25) Beginning
on the effective date of this amendatory Act | ||||||
28 | of the 92nd General Assembly,
personal property purchased by a | ||||||
29 | lessor
who leases the property, under a lease of one year or | ||||||
30 | longer executed or in
effect at the time the lessor would | ||||||
31 | otherwise be subject to the tax imposed by
this Act, to a | ||||||
32 | governmental body that has been issued an active tax exemption
| ||||||
33 | identification number by the Department under Section 1g of the | ||||||
34 | Retailers'
Occupation Tax Act. If the property is leased in a | ||||||
35 | manner that does not
qualify for this exemption or is used in | ||||||
36 | any other nonexempt manner, the
lessor shall be liable for the |
| |||||||
| |||||||
1 | tax imposed under this Act or the Use Tax Act,
as the case may | ||||||
2 | be, based on the fair market value of the property at the time
| ||||||
3 | the nonqualifying use occurs. No lessor shall collect or | ||||||
4 | attempt to collect
an amount (however designated) that purports | ||||||
5 | to reimburse that lessor for the
tax imposed by this Act or the | ||||||
6 | Use Tax Act, as the case may be, if the tax has
not been paid by | ||||||
7 | the lessor. If a lessor improperly collects any such amount
| ||||||
8 | from the lessee, the lessee shall have a legal right to claim a | ||||||
9 | refund of that
amount from the lessor. If, however, that amount | ||||||
10 | is not refunded to the lessee
for any reason, the lessor is | ||||||
11 | liable to pay that amount to the Department.
This paragraph is | ||||||
12 | exempt from the provisions of Section 3-75.
| ||||||
13 | (Source: P.A. 92-16, eff. 6-28-01; 92-35, eff. 7-1-01; 92-227, | ||||||
14 | eff. 8-2-01;
92-337, eff. 8-10-01; 92-484, eff. 8-23-01; | ||||||
15 | 92-651, eff. 7-11-02; 93-24, eff.
6-20-03 .)
| ||||||
16 | Section 15. The Service Occupation Tax Act is amended by | ||||||
17 | changing Section 3-5 as follows:
| ||||||
18 | (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
| ||||||
19 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
20 | property is
exempt from the tax imposed by this Act:
| ||||||
21 | (1) Personal property sold by a corporation, society, | ||||||
22 | association,
foundation, institution, or organization, other | ||||||
23 | than a limited liability
company, that is organized and | ||||||
24 | operated as a not-for-profit service enterprise
for the benefit | ||||||
25 | of persons 65 years of age or older if the personal property
| ||||||
26 | was not purchased by the enterprise for the purpose of resale | ||||||
27 | by the
enterprise.
| ||||||
28 | (2) Personal property purchased by a not-for-profit | ||||||
29 | Illinois county fair
association for use in conducting, | ||||||
30 | operating, or promoting the county fair.
| ||||||
31 | (3) Personal property purchased by any not-for-profit
arts | ||||||
32 | or cultural organization that establishes, by proof required by | ||||||
33 | the
Department by
rule, that it has received an exemption under | ||||||
34 | Section 501(c)(3) of the
Internal Revenue Code and that is |
| |||||||
| |||||||
1 | organized and operated primarily for the
presentation
or | ||||||
2 | support of arts or cultural programming, activities, or | ||||||
3 | services. These
organizations include, but are not limited to, | ||||||
4 | music and dramatic arts
organizations such as symphony | ||||||
5 | orchestras and theatrical groups, arts and
cultural service | ||||||
6 | organizations, local arts councils, visual arts organizations,
| ||||||
7 | and media arts organizations.
On and after the effective date | ||||||
8 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
9 | an entity otherwise eligible for this exemption shall not
make | ||||||
10 | tax-free purchases unless it has an active identification | ||||||
11 | number issued by
the Department.
| ||||||
12 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
13 | coinage
issued by the State of Illinois, the government of the | ||||||
14 | United States of
America, or the government of any foreign | ||||||
15 | country, and bullion.
| ||||||
16 | (5) Graphic
Until July 1, 2003, graphic arts machinery and | ||||||
17 | equipment, including
repair and
replacement parts, both new and | ||||||
18 | used, and including that manufactured on
special order or | ||||||
19 | purchased for lease, certified by the purchaser to be used
| ||||||
20 | primarily for graphic arts production.
Equipment includes | ||||||
21 | chemicals or chemicals acting as catalysts but only if
the
| ||||||
22 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
23 | immediate change
upon a graphic arts product.
| ||||||
24 | (6) Personal property sold by a teacher-sponsored student | ||||||
25 | organization
affiliated with an elementary or secondary school | ||||||
26 | located in Illinois.
| ||||||
27 | (7) Farm machinery and equipment, both new and used, | ||||||
28 | including that
manufactured on special order, certified by the | ||||||
29 | purchaser to be used
primarily for production agriculture or | ||||||
30 | State or federal agricultural
programs, including individual | ||||||
31 | replacement parts for the machinery and
equipment, including | ||||||
32 | machinery and equipment purchased for lease,
and including | ||||||
33 | implements of husbandry defined in Section 1-130 of
the | ||||||
34 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
35 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
36 | be registered
under Section 3-809 of the Illinois Vehicle Code,
|
| |||||||
| |||||||
1 | but
excluding other motor vehicles required to be registered | ||||||
2 | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | ||||||
3 | hoop houses used for propagating, growing, or
overwintering | ||||||
4 | plants shall be considered farm machinery and equipment under
| ||||||
5 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
6 | shall include units sold
separately from a motor vehicle | ||||||
7 | required to be licensed and units sold mounted
on a motor | ||||||
8 | vehicle required to be licensed if the selling price of the | ||||||
9 | tender
is separately stated.
| ||||||
10 | Farm machinery and equipment shall include precision | ||||||
11 | farming equipment
that is
installed or purchased to be | ||||||
12 | installed on farm machinery and equipment
including, but not | ||||||
13 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
14 | or spreaders.
Precision farming equipment includes, but is not | ||||||
15 | limited to,
soil testing sensors, computers, monitors, | ||||||
16 | software, global positioning
and mapping systems, and other | ||||||
17 | such equipment.
| ||||||
18 | Farm machinery and equipment also includes computers, | ||||||
19 | sensors, software, and
related equipment used primarily in the
| ||||||
20 | computer-assisted operation of production agriculture | ||||||
21 | facilities, equipment,
and activities such as, but
not limited | ||||||
22 | to,
the collection, monitoring, and correlation of
animal and | ||||||
23 | crop data for the purpose of
formulating animal diets and | ||||||
24 | agricultural chemicals. This item (7) is exempt
from the | ||||||
25 | provisions of
Section 3-55.
| ||||||
26 | (8) Fuel and petroleum products sold to or used by an air | ||||||
27 | common
carrier, certified by the carrier to be used for | ||||||
28 | consumption, shipment,
or storage in the conduct of its | ||||||
29 | business as an air common carrier, for
a flight destined for or | ||||||
30 | returning from a location or locations
outside the United | ||||||
31 | States without regard to previous or subsequent domestic
| ||||||
32 | stopovers.
| ||||||
33 | (9) Proceeds of mandatory service charges separately
| ||||||
34 | stated on customers' bills for the purchase and consumption of | ||||||
35 | food and
beverages, to the extent that the proceeds of the | ||||||
36 | service charge are in fact
turned over as tips or as a |
| |||||||
| |||||||
1 | substitute for tips to the employees who
participate directly | ||||||
2 | in preparing, serving, hosting or cleaning up the
food or | ||||||
3 | beverage function with respect to which the service charge is | ||||||
4 | imposed.
| ||||||
5 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
6 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
7 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
8 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
9 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
10 | individual replacement part for oil field exploration,
| ||||||
11 | drilling, and production equipment, and (vi) machinery and | ||||||
12 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
13 | required to be registered under the Illinois
Vehicle Code.
| ||||||
14 | (11) Photoprocessing machinery and equipment, including | ||||||
15 | repair and
replacement parts, both new and used, including that | ||||||
16 | manufactured on
special order, certified by the purchaser to be | ||||||
17 | used primarily for
photoprocessing, and including | ||||||
18 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
19 | (12) Until July 1, 2003, coal exploration, mining, | ||||||
20 | offhighway hauling,
processing,
maintenance, and reclamation | ||||||
21 | equipment, including
replacement parts and equipment, and | ||||||
22 | including
equipment
purchased for lease, but excluding motor | ||||||
23 | vehicles required to be registered
under the Illinois Vehicle | ||||||
24 | Code.
| ||||||
25 | (13) Food for human consumption that is to be consumed off | ||||||
26 | the premises
where it is sold (other than alcoholic beverages, | ||||||
27 | soft drinks and food that
has been prepared for immediate | ||||||
28 | consumption) and prescription and
non-prescription medicines, | ||||||
29 | drugs, medical appliances, and insulin, urine
testing | ||||||
30 | materials, syringes, and needles used by diabetics, for human | ||||||
31 | use,
when purchased for use by a person receiving medical | ||||||
32 | assistance under
Article 5 of the Illinois Public Aid Code who | ||||||
33 | resides in a licensed
long-term care facility, as defined in | ||||||
34 | the Nursing Home Care Act.
| ||||||
35 | (14) Semen used for artificial insemination of livestock | ||||||
36 | for direct
agricultural production.
|
| |||||||
| |||||||
1 | (15) Horses, or interests in horses, registered with and | ||||||
2 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
3 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
4 | Horse Association, United States
Trotting Association, or | ||||||
5 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
6 | racing for prizes.
| ||||||
7 | (16) Computers and communications equipment utilized for | ||||||
8 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
9 | analysis, or treatment of hospital patients sold to a lessor | ||||||
10 | who leases the
equipment, under a lease of one year or longer | ||||||
11 | executed or in effect at the
time of the purchase, to a
| ||||||
12 | hospital
that has been issued an active tax exemption | ||||||
13 | identification number by the
Department under Section 1g of the | ||||||
14 | Retailers' Occupation Tax Act.
| ||||||
15 | (17) Personal property sold to a lessor who leases the
| ||||||
16 | property, under a
lease of one year or longer executed or in | ||||||
17 | effect at the time of the purchase,
to a governmental body
that | ||||||
18 | has been issued an active tax exemption identification number | ||||||
19 | by the
Department under Section 1g of the Retailers' Occupation | ||||||
20 | Tax Act.
| ||||||
21 | (18) Beginning with taxable years ending on or after | ||||||
22 | December
31, 1995
and
ending with taxable years ending on or | ||||||
23 | before December 31, 2004,
personal property that is
donated for | ||||||
24 | disaster relief to be used in a State or federally declared
| ||||||
25 | disaster area in Illinois or bordering Illinois by a | ||||||
26 | manufacturer or retailer
that is registered in this State to a | ||||||
27 | corporation, society, association,
foundation, or institution | ||||||
28 | that has been issued a sales tax exemption
identification | ||||||
29 | number by the Department that assists victims of the disaster
| ||||||
30 | who reside within the declared disaster area.
| ||||||
31 | (19) 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 used in the | ||||||
34 | performance of infrastructure repairs in this
State, including | ||||||
35 | but not limited to municipal roads and streets, access roads,
| ||||||
36 | bridges, sidewalks, waste disposal systems, water and sewer |
| |||||||
| |||||||
1 | line extensions,
water distribution and purification | ||||||
2 | facilities, storm water drainage and
retention facilities, and | ||||||
3 | sewage treatment facilities, resulting from a State
or | ||||||
4 | federally declared disaster in Illinois or bordering Illinois | ||||||
5 | when such
repairs are initiated on facilities located in the | ||||||
6 | declared disaster area
within 6 months after the disaster.
| ||||||
7 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
8 | "game breeding
and
hunting preserve area" or an "exotic game | ||||||
9 | hunting area" as those terms are used
in the
Wildlife Code or | ||||||
10 | at a hunting enclosure approved through rules adopted by the
| ||||||
11 | Department of Natural Resources. This paragraph is exempt from | ||||||
12 | the provisions
of
Section 3-55.
| ||||||
13 | (21) A motor vehicle, as that term is defined in Section | ||||||
14 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
15 | corporation, limited liability
company, society, association, | ||||||
16 | foundation, or institution that is determined by
the Department | ||||||
17 | to be organized and operated exclusively for educational
| ||||||
18 | purposes. For purposes of this exemption, "a corporation, | ||||||
19 | limited liability
company, society, association, foundation, | ||||||
20 | or institution organized and
operated
exclusively for | ||||||
21 | educational purposes" means all tax-supported public schools,
| ||||||
22 | private schools that offer systematic instruction in useful | ||||||
23 | branches of
learning by methods common to public schools and | ||||||
24 | that compare favorably in
their scope and intensity with the | ||||||
25 | course of study presented in tax-supported
schools, and | ||||||
26 | vocational or technical schools or institutes organized and
| ||||||
27 | operated exclusively to provide a course of study of not less | ||||||
28 | than 6 weeks
duration and designed to prepare individuals to | ||||||
29 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
30 | industrial, business, or commercial
occupation.
| ||||||
31 | (22) Beginning January 1, 2000, personal property, | ||||||
32 | including
food,
purchased through fundraising
events for the | ||||||
33 | benefit of
a public or private elementary or
secondary school, | ||||||
34 | a group of those schools, or one or more school
districts if | ||||||
35 | the events are
sponsored by an entity recognized by the school | ||||||
36 | district that consists
primarily of volunteers and includes
|
| |||||||
| |||||||
1 | parents and teachers of the school children. This paragraph | ||||||
2 | does not apply
to fundraising
events (i) for the benefit of | ||||||
3 | private home instruction or (ii)
for which the fundraising | ||||||
4 | entity purchases the personal property sold at
the events from | ||||||
5 | another individual or entity that sold the property for the
| ||||||
6 | purpose of resale by the fundraising entity and that
profits | ||||||
7 | from the sale to the
fundraising entity. This paragraph is | ||||||
8 | exempt
from the provisions
of Section 3-55.
| ||||||
9 | (23) Beginning January 1, 2000
and through December 31, | ||||||
10 | 2001, new or used automatic vending
machines that prepare and | ||||||
11 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
12 | items, and replacement parts for these machines.
Beginning | ||||||
13 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
14 | for
machines used in commercial, coin-operated amusement
and | ||||||
15 | vending business if a use or occupation tax is paid on the | ||||||
16 | gross receipts
derived from
the use of the commercial, | ||||||
17 | coin-operated amusement and vending machines.
This paragraph | ||||||
18 | is exempt from the provisions of Section 3-55.
| ||||||
19 | (24) Beginning
on the effective date of this amendatory Act | ||||||
20 | of the 92nd General Assembly,
computers and communications | ||||||
21 | equipment
utilized for any hospital purpose and equipment used | ||||||
22 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
23 | sold to a lessor who leases the
equipment, under a lease of one | ||||||
24 | year or longer executed or in effect at the
time of the | ||||||
25 | purchase, to a hospital that has been issued an active tax
| ||||||
26 | exemption identification number by the Department under | ||||||
27 | Section 1g of the
Retailers' Occupation Tax Act. This paragraph | ||||||
28 | is exempt from the provisions of
Section 3-55.
| ||||||
29 | (25) Beginning
on the effective date of this amendatory Act | ||||||
30 | of the 92nd General Assembly,
personal property sold to a | ||||||
31 | lessor who
leases the property, under a lease of one year or | ||||||
32 | longer executed or in effect
at the time of the purchase, to a | ||||||
33 | governmental body that has been issued an
active tax exemption | ||||||
34 | identification number by the Department under Section 1g
of the | ||||||
35 | Retailers' Occupation Tax Act. This paragraph is exempt from | ||||||
36 | the
provisions of Section 3-55.
|
| |||||||
| |||||||
1 | (26) Beginning on January 1, 2002, tangible personal | ||||||
2 | property
purchased
from an Illinois retailer by a taxpayer | ||||||
3 | engaged in centralized purchasing
activities in Illinois who | ||||||
4 | will, upon receipt of the property in Illinois,
temporarily | ||||||
5 | store the property in Illinois (i) for the purpose of | ||||||
6 | subsequently
transporting it outside this State for use or | ||||||
7 | consumption thereafter solely
outside this State or (ii) for | ||||||
8 | the purpose of being processed, fabricated, or
manufactured | ||||||
9 | into, attached to, or incorporated into other tangible personal
| ||||||
10 | property to be transported outside this State and thereafter | ||||||
11 | used or consumed
solely outside this State. The Director of | ||||||
12 | Revenue shall, pursuant to rules
adopted in accordance with the | ||||||
13 | Illinois Administrative Procedure Act, issue a
permit to any | ||||||
14 | taxpayer in good standing with the Department who is eligible | ||||||
15 | for
the exemption under this paragraph (26). The permit issued | ||||||
16 | under
this paragraph (26) shall authorize the holder, to the | ||||||
17 | extent and
in the manner specified in the rules adopted under | ||||||
18 | this Act, to purchase
tangible personal property from a | ||||||
19 | retailer exempt from the taxes imposed by
this Act. Taxpayers | ||||||
20 | shall maintain all necessary books and records to
substantiate | ||||||
21 | the use and consumption of all such tangible personal property
| ||||||
22 | outside of the State of Illinois.
| ||||||
23 | (Source: P.A. 92-16, eff. 6-28-01; 92-35, eff. 7-1-01; 92-227, | ||||||
24 | eff. 8-2-01;
92-337, eff.
8-10-01; 92-484, eff. 8-23-01; | ||||||
25 | 92-488, eff. 8-23-01; 92-651, eff. 7-11-02;
93-24, eff. | ||||||
26 | 6-20-03.)
| ||||||
27 | Section 20. The Retailers' Occupation Tax Act is amended by | ||||||
28 | changing Section 2-5 as follows:
| ||||||
29 | (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
| ||||||
30 | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||||||
31 | sale of
the following tangible personal property are exempt | ||||||
32 | from the tax imposed
by this Act:
| ||||||
33 | (1) Farm chemicals.
| ||||||
34 | (2) Farm machinery and equipment, both new and used, |
| |||||||
| |||||||
1 | including that
manufactured on special order, certified by the | ||||||
2 | purchaser to be used
primarily for production agriculture or | ||||||
3 | State or federal agricultural
programs, including individual | ||||||
4 | replacement parts for the machinery and
equipment, including | ||||||
5 | machinery and equipment purchased for lease,
and including | ||||||
6 | implements of husbandry defined in Section 1-130 of
the | ||||||
7 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
8 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
9 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
10 | but
excluding other motor vehicles required to be registered | ||||||
11 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
12 | hoop houses used for propagating, growing, or
overwintering | ||||||
13 | plants shall be considered farm machinery and equipment under
| ||||||
14 | this item (2).
Agricultural chemical tender tanks and dry boxes | ||||||
15 | shall include units sold
separately from a motor vehicle | ||||||
16 | required to be licensed and units sold mounted
on a motor | ||||||
17 | vehicle required to be licensed, if the selling price of the | ||||||
18 | tender
is separately stated.
| ||||||
19 | Farm machinery and equipment shall include precision | ||||||
20 | farming equipment
that is
installed or purchased to be | ||||||
21 | installed on farm machinery and equipment
including, but not | ||||||
22 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
23 | or spreaders.
Precision farming equipment includes, but is not | ||||||
24 | limited to,
soil testing sensors, computers, monitors, | ||||||
25 | software, global positioning
and mapping systems, and other | ||||||
26 | such equipment.
| ||||||
27 | Farm machinery and equipment also includes computers, | ||||||
28 | sensors, software, and
related equipment used primarily in the
| ||||||
29 | computer-assisted operation of production agriculture | ||||||
30 | facilities, equipment,
and activities such as, but
not limited | ||||||
31 | to,
the collection, monitoring, and correlation of
animal and | ||||||
32 | crop data for the purpose of
formulating animal diets and | ||||||
33 | agricultural chemicals. This item (7) is exempt
from the | ||||||
34 | provisions of
Section 2-70.
| ||||||
35 | (3) Until July 1, 2003, distillation machinery and | ||||||
36 | equipment, sold as a
unit or kit,
assembled or installed by the |
| |||||||
| |||||||
1 | retailer, certified by the user to be used
only for the | ||||||
2 | production of ethyl alcohol that will be used for consumption
| ||||||
3 | as motor fuel or as a component of motor fuel for the personal | ||||||
4 | use of the
user, and not subject to sale or resale.
| ||||||
5 | (4) Graphic
Until July 1, 2003, graphic arts machinery and | ||||||
6 | equipment, including
repair and
replacement parts, both new and | ||||||
7 | used, and including that manufactured on
special order or | ||||||
8 | purchased for lease, certified by the purchaser to be used
| ||||||
9 | primarily for graphic arts production.
Equipment includes | ||||||
10 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
11 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
12 | immediate
change upon a
graphic arts product.
| ||||||
13 | (5) A motor vehicle of the first division, a motor vehicle | ||||||
14 | of the second
division that is a self-contained motor vehicle | ||||||
15 | designed or permanently
converted to provide living quarters | ||||||
16 | for recreational, camping, or travel
use, with direct walk | ||||||
17 | through access to the living quarters from the
driver's seat, | ||||||
18 | or a motor vehicle of the second division that is of the van
| ||||||
19 | configuration designed for the transportation of not less than | ||||||
20 | 7 nor more
than 16 passengers, as defined in Section 1-146 of | ||||||
21 | the Illinois Vehicle
Code, that is used for automobile renting, | ||||||
22 | as defined in the Automobile
Renting Occupation and Use Tax | ||||||
23 | Act.
| ||||||
24 | (6) Personal property sold by a teacher-sponsored student | ||||||
25 | organization
affiliated with an elementary or secondary school | ||||||
26 | located in Illinois.
| ||||||
27 | (7) Until July 1, 2003, proceeds of that portion of the | ||||||
28 | selling price of
a passenger car the
sale of which is subject | ||||||
29 | to the Replacement Vehicle Tax.
| ||||||
30 | (8) Personal property sold to an Illinois county fair | ||||||
31 | association for
use in conducting, operating, or promoting the | ||||||
32 | county fair.
| ||||||
33 | (9) Personal property sold to a not-for-profit arts
or | ||||||
34 | cultural organization that establishes, by proof required by | ||||||
35 | the Department
by
rule, that it has received an exemption under | ||||||
36 | Section 501(c)(3) of the
Internal Revenue Code and that is |
| |||||||
| |||||||
1 | organized and operated primarily for the
presentation
or | ||||||
2 | support of arts or cultural programming, activities, or | ||||||
3 | services. These
organizations include, but are not limited to, | ||||||
4 | music and dramatic arts
organizations such as symphony | ||||||
5 | orchestras and theatrical groups, arts and
cultural service | ||||||
6 | organizations, local arts councils, visual arts organizations,
| ||||||
7 | and media arts organizations.
On and after the effective date | ||||||
8 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
9 | an entity otherwise eligible for this exemption shall not
make | ||||||
10 | tax-free purchases unless it has an active identification | ||||||
11 | number issued by
the Department.
| ||||||
12 | (10) Personal property sold by a corporation, society, | ||||||
13 | association,
foundation, institution, or organization, other | ||||||
14 | than a limited liability
company, that is organized and | ||||||
15 | operated as a not-for-profit service enterprise
for the benefit | ||||||
16 | of persons 65 years of age or older if the personal property
| ||||||
17 | was not purchased by the enterprise for the purpose of resale | ||||||
18 | by the
enterprise.
| ||||||
19 | (11) Personal property sold to a governmental body, to a | ||||||
20 | corporation,
society, association, foundation, or institution | ||||||
21 | organized and operated
exclusively for charitable, religious, | ||||||
22 | or educational purposes, or to a
not-for-profit corporation, | ||||||
23 | society, association, foundation, institution,
or organization | ||||||
24 | that has no compensated officers or employees and that is
| ||||||
25 | organized and operated primarily for the recreation of persons | ||||||
26 | 55 years of
age or older. A limited liability company may | ||||||
27 | qualify for the exemption under
this paragraph only if the | ||||||
28 | limited liability company is organized and operated
| ||||||
29 | exclusively for educational purposes. On and after July 1, | ||||||
30 | 1987, however, no
entity otherwise eligible for this exemption | ||||||
31 | shall make tax-free purchases
unless it has an active | ||||||
32 | identification number issued by the Department.
| ||||||
33 | (12) Tangible personal property sold to
interstate | ||||||
34 | carriers
for hire for use as
rolling stock moving in interstate | ||||||
35 | commerce or to lessors under leases of
one year or longer | ||||||
36 | executed or in effect at the time of purchase by
interstate |
| |||||||
| |||||||
1 | carriers for hire for use as rolling stock moving in interstate
| ||||||
2 | commerce and equipment operated by a telecommunications | ||||||
3 | provider, licensed as a
common carrier by the Federal | ||||||
4 | Communications Commission, which is permanently
installed in | ||||||
5 | or affixed to aircraft moving in interstate commerce.
| ||||||
6 | (12-5) On and after July 1, 2003, motor vehicles of the | ||||||
7 | second division
with a gross vehicle weight in excess of 8,000 | ||||||
8 | pounds
that
are
subject to the commercial distribution fee | ||||||
9 | imposed under Section 3-815.1 of
the Illinois
Vehicle Code. | ||||||
10 | This exemption applies to repair and replacement parts added
| ||||||
11 | after the
initial purchase of such a motor vehicle if that | ||||||
12 | motor vehicle is used in a
manner that
would qualify for the | ||||||
13 | rolling stock exemption otherwise provided for in this
Act.
| ||||||
14 | (13) Proceeds from sales to owners, lessors, or
shippers of
| ||||||
15 | tangible personal property that is utilized by interstate | ||||||
16 | carriers for
hire for use as rolling stock moving in interstate | ||||||
17 | commerce
and equipment operated by a telecommunications | ||||||
18 | provider, licensed as a
common carrier by the Federal | ||||||
19 | Communications Commission, which is
permanently installed in | ||||||
20 | or affixed to aircraft moving in interstate commerce.
| ||||||
21 | (14) Machinery and equipment that will be used by the | ||||||
22 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
23 | process of manufacturing or
assembling tangible personal | ||||||
24 | property for wholesale or retail sale or
lease, whether the | ||||||
25 | sale or lease is made directly by the manufacturer or by
some | ||||||
26 | other person, whether the materials used in the process are | ||||||
27 | owned by
the manufacturer or some other person, or whether the | ||||||
28 | sale or lease is made
apart from or as an incident to the | ||||||
29 | seller's engaging in the service
occupation of producing | ||||||
30 | machines, tools, dies, jigs, patterns, gauges, or
other similar | ||||||
31 | items of no commercial value on special order for a particular
| ||||||
32 | purchaser.
| ||||||
33 | (15) Proceeds of mandatory service charges separately | ||||||
34 | stated on
customers' bills for purchase and consumption of food | ||||||
35 | and beverages, to the
extent that the proceeds of the service | ||||||
36 | charge are in fact turned over as
tips or as a substitute for |
| |||||||
| |||||||
1 | tips to the employees who participate directly
in preparing, | ||||||
2 | serving, hosting or cleaning up the food or beverage function
| ||||||
3 | with respect to which the service charge is imposed.
| ||||||
4 | (16) Petroleum products sold to a purchaser if the seller
| ||||||
5 | is prohibited by federal law from charging tax to the | ||||||
6 | purchaser.
| ||||||
7 | (17) Tangible personal property sold to a common carrier by | ||||||
8 | rail or
motor that
receives the physical possession of the | ||||||
9 | property in Illinois and that
transports the property, or | ||||||
10 | shares with another common carrier in the
transportation of the | ||||||
11 | property, out of Illinois on a standard uniform bill
of lading | ||||||
12 | showing the seller of the property as the shipper or consignor | ||||||
13 | of
the property to a destination outside Illinois, for use | ||||||
14 | outside Illinois.
| ||||||
15 | (18) Legal tender, currency, medallions, or gold or silver | ||||||
16 | coinage
issued by the State of Illinois, the government of the | ||||||
17 | United States of
America, or the government of any foreign | ||||||
18 | country, and bullion.
| ||||||
19 | (19) Until July 1 2003, oil field exploration, drilling, | ||||||
20 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
21 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
22 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
23 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
24 | individual replacement part for oil field exploration,
| ||||||
25 | drilling, and production equipment, and (vi) machinery and | ||||||
26 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
27 | required to be registered under the Illinois
Vehicle Code.
| ||||||
28 | (20) Photoprocessing machinery and equipment, including | ||||||
29 | repair and
replacement parts, both new and used, including that | ||||||
30 | manufactured on
special order, certified by the purchaser to be | ||||||
31 | used primarily for
photoprocessing, and including | ||||||
32 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
33 | (21) Until July 1, 2003, coal exploration, mining, | ||||||
34 | offhighway hauling,
processing,
maintenance, and reclamation | ||||||
35 | equipment, including
replacement parts and equipment, and | ||||||
36 | including
equipment purchased for lease, but excluding motor |
| |||||||
| |||||||
1 | vehicles required to be
registered under the Illinois Vehicle | ||||||
2 | Code.
| ||||||
3 | (22) Fuel and petroleum products sold to or used by an air | ||||||
4 | carrier,
certified by the carrier to be used for consumption, | ||||||
5 | shipment, or storage
in the conduct of its business as an air | ||||||
6 | common carrier, for a flight
destined for or returning from a | ||||||
7 | location or locations
outside the United States without regard | ||||||
8 | to previous or subsequent domestic
stopovers.
| ||||||
9 | (23) A transaction in which the purchase order is received | ||||||
10 | by a florist
who is located outside Illinois, but who has a | ||||||
11 | florist located in Illinois
deliver the property to the | ||||||
12 | purchaser or the purchaser's donee in Illinois.
| ||||||
13 | (24) Fuel consumed or used in the operation of ships, | ||||||
14 | barges, or vessels
that are used primarily in or for the | ||||||
15 | transportation of property or the
conveyance of persons for | ||||||
16 | hire on rivers bordering on this State if the
fuel is delivered | ||||||
17 | by the seller to the purchaser's barge, ship, or vessel
while | ||||||
18 | it is afloat upon that bordering river.
| ||||||
19 | (25) A motor vehicle sold in this State to a nonresident | ||||||
20 | even though the
motor vehicle is delivered to the nonresident | ||||||
21 | in this State, if the motor
vehicle is not to be titled in this | ||||||
22 | State, and if a drive-away permit
is issued to the motor | ||||||
23 | vehicle as provided in Section 3-603 of the Illinois
Vehicle | ||||||
24 | Code or if the nonresident purchaser has vehicle registration
| ||||||
25 | plates to transfer to the motor vehicle upon returning to his | ||||||
26 | or her home
state. The issuance of the drive-away permit or | ||||||
27 | having
the
out-of-state registration plates to be transferred | ||||||
28 | is prima facie evidence
that the motor vehicle will not be | ||||||
29 | titled in this State.
| ||||||
30 | (26) Semen used for artificial insemination of livestock | ||||||
31 | for direct
agricultural production.
| ||||||
32 | (27) Horses, or interests in horses, registered with and | ||||||
33 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
34 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
35 | Horse Association, United States
Trotting Association, or | ||||||
36 | Jockey Club, as appropriate, used for
purposes of breeding or |
| |||||||
| |||||||
1 | racing for prizes.
| ||||||
2 | (28) Computers and communications equipment utilized for | ||||||
3 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
4 | analysis, or treatment of hospital patients sold to a lessor | ||||||
5 | who leases the
equipment, under a lease of one year or longer | ||||||
6 | executed or in effect at the
time of the purchase, to a
| ||||||
7 | hospital
that has been issued an active tax exemption | ||||||
8 | identification number by the
Department under Section 1g of | ||||||
9 | this Act.
| ||||||
10 | (29) Personal property sold to a lessor who leases the
| ||||||
11 | property, under a
lease of one year or longer executed or in | ||||||
12 | effect at the time of the purchase,
to a governmental body
that | ||||||
13 | has been issued an active tax exemption identification number | ||||||
14 | by the
Department under Section 1g of this Act.
| ||||||
15 | (30) Beginning with taxable years ending on or after | ||||||
16 | December
31, 1995
and
ending with taxable years ending on or | ||||||
17 | before December 31, 2004,
personal property that is
donated for | ||||||
18 | disaster relief to be used in a State or federally declared
| ||||||
19 | disaster area in Illinois or bordering Illinois by a | ||||||
20 | manufacturer or retailer
that is registered in this State to a | ||||||
21 | corporation, society, association,
foundation, or institution | ||||||
22 | that has been issued a sales tax exemption
identification | ||||||
23 | number by the Department that assists victims of the disaster
| ||||||
24 | who reside within the declared disaster area.
| ||||||
25 | (31) Beginning with taxable years ending on or after | ||||||
26 | December
31, 1995 and
ending with taxable years ending on or | ||||||
27 | before December 31, 2004, personal
property that is used in the | ||||||
28 | performance of infrastructure repairs in this
State, including | ||||||
29 | but not limited to municipal roads and streets, access roads,
| ||||||
30 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
31 | line extensions,
water distribution and purification | ||||||
32 | facilities, storm water drainage and
retention facilities, and | ||||||
33 | sewage treatment facilities, resulting from a State
or | ||||||
34 | federally declared disaster in Illinois or bordering Illinois | ||||||
35 | when such
repairs are initiated on facilities located in the | ||||||
36 | declared disaster area
within 6 months after the disaster.
|
| |||||||
| |||||||
1 | (32) Beginning July 1, 1999, game or game birds sold at a | ||||||
2 | "game breeding
and
hunting preserve area" or an "exotic game | ||||||
3 | hunting area" as those terms are used
in the
Wildlife Code or | ||||||
4 | at a hunting enclosure approved through rules adopted by the
| ||||||
5 | Department of Natural Resources. This paragraph is exempt from | ||||||
6 | the provisions
of
Section 2-70.
| ||||||
7 | (33) A motor vehicle, as that term is defined in Section | ||||||
8 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
9 | corporation, limited liability
company, society, association, | ||||||
10 | foundation, or institution that is determined by
the Department | ||||||
11 | to be organized and operated exclusively for educational
| ||||||
12 | purposes. For purposes of this exemption, "a corporation, | ||||||
13 | limited liability
company, society, association, foundation, | ||||||
14 | or institution organized and
operated
exclusively for | ||||||
15 | educational purposes" means all tax-supported public schools,
| ||||||
16 | private schools that offer systematic instruction in useful | ||||||
17 | branches of
learning by methods common to public schools and | ||||||
18 | that compare favorably in
their scope and intensity with the | ||||||
19 | course of study presented in tax-supported
schools, and | ||||||
20 | vocational or technical schools or institutes organized and
| ||||||
21 | operated exclusively to provide a course of study of not less | ||||||
22 | than 6 weeks
duration and designed to prepare individuals to | ||||||
23 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
24 | industrial, business, or commercial
occupation.
| ||||||
25 | (34) Beginning January 1, 2000, personal property, | ||||||
26 | including food, purchased
through fundraising events for the | ||||||
27 | benefit of a public or private elementary or
secondary school, | ||||||
28 | a group of those schools, or one or more school districts if
| ||||||
29 | the events are sponsored by an entity recognized by the school | ||||||
30 | district that
consists primarily of volunteers and includes | ||||||
31 | parents and teachers of the
school children. This paragraph | ||||||
32 | does not apply to fundraising events (i) for
the benefit of | ||||||
33 | private home instruction or (ii) for which the fundraising
| ||||||
34 | entity purchases the personal property sold at the events from | ||||||
35 | another
individual or entity that sold the property for the | ||||||
36 | purpose of resale by the
fundraising entity and that profits |
| |||||||
| |||||||
1 | from the sale to the fundraising entity.
This paragraph is | ||||||
2 | 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 other | ||||||
6 | items, and replacement parts for these
machines. Beginning | ||||||
7 | January 1, 2002 and through June 30, 2003, machines
and parts | ||||||
8 | for machines used in
commercial, coin-operated amusement and | ||||||
9 | vending business if a use or occupation
tax is paid on the | ||||||
10 | gross 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) Food for human consumption that is to be consumed | ||||||
14 | off
the premises where it is sold (other than alcoholic | ||||||
15 | beverages, soft drinks,
and food that has been prepared for | ||||||
16 | immediate consumption) and prescription
and nonprescription | ||||||
17 | medicines, drugs, medical appliances, and insulin, urine
| ||||||
18 | testing materials, syringes, and needles used by diabetics, for | ||||||
19 | human use, when
purchased for use by a person receiving medical | ||||||
20 | assistance under Article 5 of
the Illinois Public Aid Code who | ||||||
21 | resides in a licensed long-term care facility,
as defined in | ||||||
22 | the Nursing Home Care Act.
| ||||||
23 | (36) Beginning August 2, 2001, computers and | ||||||
24 | communications equipment
utilized for any hospital purpose and | ||||||
25 | equipment used in the diagnosis,
analysis, or treatment of | ||||||
26 | hospital patients sold to a lessor who leases the
equipment, | ||||||
27 | under a lease of one year or longer executed or in effect at | ||||||
28 | the
time of the purchase, to a hospital that has been issued an | ||||||
29 | active tax
exemption identification number by the Department | ||||||
30 | under Section 1g of this Act.
This paragraph is exempt from the | ||||||
31 | provisions of Section 2-70.
| ||||||
32 | (37) Beginning August 2, 2001, personal property sold to a | ||||||
33 | lessor who
leases the property, under a lease of one year or | ||||||
34 | longer executed or in effect
at the time of the purchase, to a | ||||||
35 | governmental body that has been issued an
active tax exemption | ||||||
36 | identification number by the Department under Section 1g
of |
| |||||||
| |||||||
1 | this Act. This paragraph is exempt from the provisions of | ||||||
2 | Section 2-70.
| ||||||
3 | (38) Beginning on January 1, 2002, tangible personal | ||||||
4 | property purchased
from an Illinois retailer by a taxpayer | ||||||
5 | engaged in centralized purchasing
activities in Illinois who | ||||||
6 | will, upon receipt of the property in Illinois,
temporarily | ||||||
7 | store the property in Illinois (i) for the purpose of | ||||||
8 | subsequently
transporting it outside this State for use or | ||||||
9 | consumption thereafter solely
outside this State or (ii) for | ||||||
10 | the purpose of being processed, fabricated, or
manufactured | ||||||
11 | into, attached to, or incorporated into other tangible personal
| ||||||
12 | property to be transported outside this State and thereafter | ||||||
13 | used or consumed
solely outside this State. The Director of | ||||||
14 | Revenue shall, pursuant to rules
adopted in accordance with the | ||||||
15 | Illinois Administrative Procedure Act, issue a
permit to any | ||||||
16 | taxpayer in good standing with the Department who is eligible | ||||||
17 | for
the exemption under this paragraph (38). The permit issued | ||||||
18 | under
this paragraph (38) shall authorize the holder, to the | ||||||
19 | extent and
in the manner specified in the rules adopted under | ||||||
20 | this Act, to purchase
tangible personal property from a | ||||||
21 | retailer exempt from the taxes imposed by
this Act. Taxpayers | ||||||
22 | shall maintain all necessary books and records to
substantiate | ||||||
23 | the use and consumption of all such tangible personal property
| ||||||
24 | outside of the State of Illinois.
| ||||||
25 | (Source: P.A. 92-16, eff. 6-28-01; 92-35, eff. 7-1-01; 92-227, | ||||||
26 | eff. 8-2-01;
92-337, eff.
8-10-01; 92-484, eff. 8-23-01; | ||||||
27 | 92-488, eff. 8-23-01; 92-651, eff. 7-11-02;
92-680, eff. | ||||||
28 | 7-16-02; 93-23, eff. 6-20-03; 93-24, eff.
6-20-03; revised | ||||||
29 | 9-11-03.)
|