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1 | AN ACT concerning taxes.
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2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Use Tax Act is amended by changing Section | ||||||||||||||||||||||||||||||
5 | 3-50 as follows:
| ||||||||||||||||||||||||||||||
6 | (35 ILCS 105/3-50) (from Ch. 120, par. 439.3-50)
| ||||||||||||||||||||||||||||||
7 | Sec. 3-50. Manufacturing and assembly exemption. The | ||||||||||||||||||||||||||||||
8 | manufacturing
and assembling machinery and equipment exemption | ||||||||||||||||||||||||||||||
9 | includes
machinery and equipment that replaces machinery and | ||||||||||||||||||||||||||||||
10 | equipment in an
existing manufacturing facility as well as | ||||||||||||||||||||||||||||||
11 | machinery and equipment that
are for use in an expanded or new | ||||||||||||||||||||||||||||||
12 | manufacturing facility. The machinery and
equipment exemption | ||||||||||||||||||||||||||||||
13 | also includes machinery and equipment used in the
general | ||||||||||||||||||||||||||||||
14 | maintenance or repair of exempt machinery and equipment or for
| ||||||||||||||||||||||||||||||
15 | in-house manufacture of exempt machinery and equipment. For the
| ||||||||||||||||||||||||||||||
16 | purposes of this exemption, terms have the following
meanings:
| ||||||||||||||||||||||||||||||
17 | (1) "Manufacturing process" means the production of
an | ||||||||||||||||||||||||||||||
18 | article of tangible personal property, whether the article
| ||||||||||||||||||||||||||||||
19 | is a finished product or an article for use in the process | ||||||||||||||||||||||||||||||
20 | of manufacturing
or assembling a different article of | ||||||||||||||||||||||||||||||
21 | tangible personal property, by
a procedure commonly | ||||||||||||||||||||||||||||||
22 | regarded as manufacturing, processing, fabricating, or
| ||||||||||||||||||||||||||||||
23 | refining that changes some existing material into a | ||||||||||||||||||||||||||||||
24 | material
with a different form, use, or name. In relation | ||||||||||||||||||||||||||||||
25 | to a recognized integrated
business composed of a series of | ||||||||||||||||||||||||||||||
26 | operations that collectively constitute
manufacturing, or | ||||||||||||||||||||||||||||||
27 | individually constitute
manufacturing operations, the | ||||||||||||||||||||||||||||||
28 | manufacturing process commences with the
first operation | ||||||||||||||||||||||||||||||
29 | or stage of production in the series
and does not end until | ||||||||||||||||||||||||||||||
30 | the completion of the final product
in the last operation | ||||||||||||||||||||||||||||||
31 | or stage of production in the series. For purposes
of this | ||||||||||||||||||||||||||||||
32 | exemption, photoprocessing is a
manufacturing process of |
| |||||||
| |||||||
1 | tangible personal property for wholesale or retail
sale.
| ||||||
2 | (2) "Assembling process" means the production of
an | ||||||
3 | article of tangible personal property, whether the article
| ||||||
4 | is a finished product or an article for use in the process | ||||||
5 | of manufacturing
or assembling a different article of | ||||||
6 | tangible personal property, by the
combination of existing | ||||||
7 | materials in a manner commonly regarded as
assembling that | ||||||
8 | results in an article or material of a different
form, use, | ||||||
9 | or name.
| ||||||
10 | (3) "Machinery" means major
mechanical machines or | ||||||
11 | major components of those machines contributing to a
| ||||||
12 | manufacturing or assembling process.
| ||||||
13 | (4) "Equipment" includes an independent device
or tool | ||||||
14 | separate from machinery but essential to an integrated
| ||||||
15 | manufacturing or assembly process; including computers | ||||||
16 | used primarily in
a manufacturer's computer assisted | ||||||
17 | design,
computer assisted manufacturing (CAD/CAM) system; | ||||||
18 | any
subunit or assembly comprising a component of any | ||||||
19 | machinery or auxiliary,
adjunct, or attachment parts of | ||||||
20 | machinery, such as tools, dies, jigs,
fixtures, patterns, | ||||||
21 | and molds; and any parts that require
periodic replacement | ||||||
22 | in the course of normal operation; but does not
include | ||||||
23 | hand tools. Equipment includes chemicals or chemicals | ||||||
24 | acting as
catalysts but only if
the chemicals or chemicals | ||||||
25 | acting as catalysts effect a direct and
immediate change | ||||||
26 | upon a
product being manufactured or assembled for | ||||||
27 | wholesale or retail sale or
lease.
| ||||||
28 | The manufacturing and assembling machinery and equipment
| ||||||
29 | exemption includes the sale of materials to a purchaser who
| ||||||
30 | produces exempted types of machinery, equipment, or tools and | ||||||
31 | who rents or
leases that machinery, equipment, or tools to a
| ||||||
32 | manufacturer of tangible
personal property. This exemption | ||||||
33 | also includes the sale of materials to a
purchaser who | ||||||
34 | manufactures those materials into an exempted type of
| ||||||
35 | machinery, equipment, or tools that the purchaser uses
himself | ||||||
36 | or herself in the
manufacturing of tangible personal property. |
| |||||||
| |||||||
1 | This exemption includes the
sale of exempted types of machinery | ||||||
2 | or equipment to a
purchaser who is not the manufacturer, but | ||||||
3 | who rents or leases the use of
the property to a manufacturer. | ||||||
4 | The purchaser of the machinery and
equipment who has an active | ||||||
5 | resale registration number shall
furnish that number to the | ||||||
6 | seller at the time of purchase.
A user of the machinery, | ||||||
7 | equipment, or tools without an
active resale registration | ||||||
8 | number shall prepare a certificate of exemption
for each | ||||||
9 | transaction stating facts establishing the exemption for that
| ||||||
10 | transaction, and that certificate shall be
available to the | ||||||
11 | Department for inspection or audit. The Department shall
| ||||||
12 | prescribe the form of the certificate. Informal rulings, | ||||||
13 | opinions, or
letters issued by the Department in
response to an | ||||||
14 | inquiry or request for an opinion from any person
regarding the | ||||||
15 | coverage and applicability of this exemption to specific
| ||||||
16 | devices shall be published, maintained as a public record, and | ||||||
17 | made
available for public inspection and copying. If the | ||||||
18 | informal ruling,
opinion, or letter contains trade secrets or | ||||||
19 | other confidential
information, where possible, the Department | ||||||
20 | shall delete that information
before publication. Whenever | ||||||
21 | informal rulings, opinions, or
letters contain a policy of | ||||||
22 | general applicability, the Department
shall formulate and | ||||||
23 | adopt that policy as a rule in accordance with the
Illinois | ||||||
24 | Administrative Procedure Act.
| ||||||
25 | At the same time as the taxpayer files it's annual Illinois | ||||||
26 | income tax return, the taxpayer must disclose the aggregate | ||||||
27 | dollar amount of manufacturing
and assembling machinery and | ||||||
28 | equipment tax exemptions received under the Use Tax Act, the | ||||||
29 | Service Use Tax Act, the Service Occupation Tax Act, and the | ||||||
30 | Retailers' Occupation Tax Act during the most recently | ||||||
31 | completed calendar year, broken down by plant and by facility. | ||||||
32 | If a plant or facility with respect to which a taxpayer | ||||||
33 | received such manufacturing
and assembling machinery and | ||||||
34 | equipment exemptions closes, the taxpayer must pay to the | ||||||
35 | Department all amounts that were not not paid in taxes under | ||||||
36 | the Use Tax Act, the Service Use Tax Act, the Service |
| |||||||
| |||||||
1 | Occupation Tax Act, and the Retailers' Occupation Tax Act due | ||||||
2 | to the exemption, for the 5-year period immediately preceding | ||||||
3 | the date of the plant or facility closure. | ||||||
4 | (Source: P.A. 91-51, eff. 6-30-99; 92-484, eff. 8-23-01.)
| ||||||
5 | Section 10. The Service Use Tax Act is amended by changing | ||||||
6 | Section 2 as follows:
| ||||||
7 | (35 ILCS 110/2) (from Ch. 120, par. 439.32)
| ||||||
8 | Sec. 2. "Use" means the exercise by any person of any right | ||||||
9 | or power
over tangible personal property incident to the | ||||||
10 | ownership of that
property, but does not include the sale or | ||||||
11 | use for demonstration by him
of that property in any form as | ||||||
12 | tangible personal property in the
regular course of business.
| ||||||
13 | "Use" does not mean the interim
use of
tangible personal | ||||||
14 | property nor the physical incorporation of tangible
personal | ||||||
15 | property, as an ingredient or constituent, into other tangible
| ||||||
16 | personal property, (a) which is sold in the regular course of | ||||||
17 | business
or (b) which the person incorporating such ingredient | ||||||
18 | or constituent
therein has undertaken at the time of such | ||||||
19 | purchase to cause to be
transported in interstate commerce to | ||||||
20 | destinations outside the State of
Illinois.
| ||||||
21 | "Purchased from a serviceman" means the acquisition of the | ||||||
22 | ownership
of, or title to, tangible personal property through a | ||||||
23 | sale of service.
| ||||||
24 | "Purchaser" means any person who, through a sale of | ||||||
25 | service, acquires
the ownership of, or title to, any tangible | ||||||
26 | personal property.
| ||||||
27 | "Cost price" means the consideration paid by the serviceman | ||||||
28 | for a
purchase valued in money, whether paid in money or | ||||||
29 | otherwise, including
cash, credits and services, and shall be | ||||||
30 | determined without any
deduction on account of the supplier's | ||||||
31 | cost of the property sold or on
account of any other expense | ||||||
32 | incurred by the supplier. When a serviceman
contracts out part | ||||||
33 | or all of the services required in his sale of service,
it | ||||||
34 | shall be presumed that the cost price to the serviceman of the |
| |||||||
| |||||||
1 | property
transferred to him or her by his or her subcontractor | ||||||
2 | is equal to 50% of
the subcontractor's charges to the | ||||||
3 | serviceman in the absence of proof of
the consideration paid by | ||||||
4 | the subcontractor for the purchase of such property.
| ||||||
5 | "Selling price" means the consideration for a sale valued | ||||||
6 | in money
whether received in money or otherwise, including | ||||||
7 | cash, credits and
service, and shall be determined without any | ||||||
8 | deduction on account of the
serviceman's cost of the property | ||||||
9 | sold, the cost of materials used,
labor or service cost or any | ||||||
10 | other expense whatsoever, but does not
include interest or | ||||||
11 | finance charges which appear as separate items on
the bill of | ||||||
12 | sale or sales contract nor charges that are added to prices
by | ||||||
13 | sellers on account of the seller's duty to collect, from the
| ||||||
14 | purchaser, the tax that is imposed by this Act.
| ||||||
15 | "Department" means the Department of Revenue.
| ||||||
16 | "Person" means any natural individual, firm, partnership,
| ||||||
17 | association, joint stock company, joint venture, public or | ||||||
18 | private
corporation, limited liability company, and any | ||||||
19 | receiver, executor, trustee,
guardian or other representative | ||||||
20 | appointed by order of any court.
| ||||||
21 | "Sale of service" means any transaction except:
| ||||||
22 | (1) a retail sale of tangible personal property taxable | ||||||
23 | under the
Retailers' Occupation Tax Act or under the Use | ||||||
24 | Tax Act.
| ||||||
25 | (2) a sale of tangible personal property for the | ||||||
26 | purpose of resale
made in compliance with Section 2c of the | ||||||
27 | Retailers' Occupation Tax Act.
| ||||||
28 | (3) except as hereinafter provided, a sale or transfer | ||||||
29 | of tangible
personal property as an incident to the | ||||||
30 | rendering of service for or by
any governmental body, or | ||||||
31 | for or by any corporation, society,
association, | ||||||
32 | foundation or institution organized and operated
| ||||||
33 | exclusively for charitable, religious or educational | ||||||
34 | purposes or any
not-for-profit corporation, society, | ||||||
35 | association, foundation,
institution or organization which | ||||||
36 | has no compensated officers or
employees and which is |
| |||||||
| |||||||
1 | organized and operated primarily for the
recreation of | ||||||
2 | persons 55 years of age or older. A limited liability | ||||||
3 | company
may qualify for the exemption under this paragraph | ||||||
4 | only if the limited
liability company is organized and | ||||||
5 | operated exclusively for educational
purposes.
| ||||||
6 | (4) a sale or transfer of tangible personal
property as | ||||||
7 | an incident to the
rendering of service for interstate | ||||||
8 | carriers for hire for use as rolling stock
moving in | ||||||
9 | interstate commerce or by lessors under a lease of one year | ||||||
10 | or
longer, executed or in effect at the time of purchase of | ||||||
11 | personal property, to
interstate carriers for hire for use | ||||||
12 | as rolling stock moving in interstate
commerce so long as | ||||||
13 | so used by such interstate carriers for hire, and equipment
| ||||||
14 | operated by a telecommunications provider, licensed as a | ||||||
15 | common carrier by the
Federal Communications Commission, | ||||||
16 | which is permanently installed in or affixed
to aircraft | ||||||
17 | moving in interstate commerce.
| ||||||
18 | (4a) a sale or transfer of tangible personal
property | ||||||
19 | as an incident
to the rendering of service for owners, | ||||||
20 | lessors, or shippers of tangible
personal property which is | ||||||
21 | utilized by interstate carriers for hire for
use as rolling | ||||||
22 | stock moving in interstate commerce so long as so used by
| ||||||
23 | interstate carriers for hire, and equipment operated by a
| ||||||
24 | telecommunications provider, licensed as a common carrier | ||||||
25 | by the Federal
Communications Commission, which is | ||||||
26 | permanently installed in or affixed to
aircraft moving in | ||||||
27 | interstate commerce.
| ||||||
28 | (4a-5) on and after July 1, 2003, a sale or transfer of | ||||||
29 | a motor vehicle
of
the
second division with a gross vehicle | ||||||
30 | weight in excess of 8,000 pounds as an
incident to the | ||||||
31 | rendering of service if that motor
vehicle is subject
to | ||||||
32 | the commercial distribution fee imposed under Section | ||||||
33 | 3-815.1 of the
Illinois Vehicle
Code. This exemption | ||||||
34 | applies to repair and replacement parts added after the
| ||||||
35 | initial
purchase of such a motor vehicle if that motor | ||||||
36 | vehicle is used in a manner that
would
qualify for the |
| |||||||
| |||||||
1 | rolling stock exemption otherwise provided for in this Act.
| ||||||
2 | (5) a sale or transfer of machinery and equipment used | ||||||
3 | primarily in the
process of the manufacturing or | ||||||
4 | assembling, either in an existing, an expanded
or a new | ||||||
5 | manufacturing facility, of tangible personal property for | ||||||
6 | wholesale or
retail sale or lease, whether such sale or | ||||||
7 | lease is made directly by the
manufacturer or by some other | ||||||
8 | person, whether the materials used in the process
are owned | ||||||
9 | by the manufacturer or some other person, or whether such | ||||||
10 | sale or
lease is made apart from or as an incident to the | ||||||
11 | seller's engaging in a
service occupation and the | ||||||
12 | applicable tax is a Service Use Tax or Service
Occupation | ||||||
13 | Tax, rather than Use Tax or Retailers' Occupation Tax.
| ||||||
14 | (5a) the repairing, reconditioning or remodeling, for | ||||||
15 | a
common carrier by rail, of tangible personal property | ||||||
16 | which belongs to such
carrier for hire, and as to which | ||||||
17 | such carrier receives the physical possession
of the | ||||||
18 | repaired, reconditioned or remodeled item of tangible | ||||||
19 | personal property
in Illinois, and which such carrier | ||||||
20 | transports, or shares with another common
carrier in the | ||||||
21 | transportation of such property, out of Illinois on a | ||||||
22 | standard
uniform bill of lading showing the person who | ||||||
23 | repaired, reconditioned or
remodeled the property to a | ||||||
24 | destination outside Illinois, for use outside
Illinois.
| ||||||
25 | (5b) a sale or transfer of tangible personal property | ||||||
26 | which is produced by
the seller thereof on special order in | ||||||
27 | such a way as to have made the
applicable tax the Service | ||||||
28 | Occupation Tax or the Service Use Tax, rather than
the | ||||||
29 | Retailers' Occupation Tax or the Use Tax, for an interstate | ||||||
30 | carrier by rail
which receives the physical possession of | ||||||
31 | such property in Illinois, and which
transports such | ||||||
32 | property, or shares with another common carrier in the
| ||||||
33 | transportation of such property, out of Illinois on a | ||||||
34 | standard uniform bill of
lading showing the seller of the | ||||||
35 | property as the shipper or consignor of such
property to a | ||||||
36 | destination outside Illinois, for use outside Illinois.
|
| |||||||
| |||||||
1 | (6) until July 1, 2003, a sale or transfer of | ||||||
2 | distillation machinery
and equipment, sold
as a unit or kit | ||||||
3 | and assembled or installed by the retailer, which
machinery | ||||||
4 | and equipment is certified by the user to be used only for | ||||||
5 | the
production of ethyl alcohol that will be used for | ||||||
6 | consumption as motor fuel
or as a component of motor fuel | ||||||
7 | for the personal use of such user and not
subject to sale | ||||||
8 | or resale.
| ||||||
9 | (7) at the election of any serviceman not required to | ||||||
10 | be
otherwise registered as a retailer under Section 2a of | ||||||
11 | the Retailers'
Occupation Tax Act, made for each fiscal | ||||||
12 | year sales
of service in which the aggregate annual cost | ||||||
13 | price of tangible
personal property transferred as an | ||||||
14 | incident to the sales of service is
less than 35%, or 75% | ||||||
15 | in the case of servicemen transferring prescription
drugs | ||||||
16 | or servicemen engaged in graphic arts production, of the | ||||||
17 | aggregate
annual total gross receipts from all sales of | ||||||
18 | service. The purchase of
such tangible personal property by | ||||||
19 | the serviceman shall be subject to tax
under the Retailers' | ||||||
20 | Occupation Tax Act and the Use Tax Act.
However, if a
| ||||||
21 | primary serviceman who has made the election described in | ||||||
22 | this paragraph
subcontracts service work to a secondary | ||||||
23 | serviceman who has also made the
election described in this | ||||||
24 | paragraph, the primary serviceman does not
incur a Use Tax | ||||||
25 | liability if the secondary serviceman (i) has paid or will | ||||||
26 | pay
Use
Tax on his or her cost price of any tangible | ||||||
27 | personal property transferred
to the primary serviceman | ||||||
28 | and (ii) certifies that fact in writing to the
primary
| ||||||
29 | serviceman.
| ||||||
30 | Tangible personal property transferred incident to the | ||||||
31 | completion of a
maintenance agreement is exempt from the tax | ||||||
32 | imposed pursuant to this Act.
| ||||||
33 | Exemption (5) also includes machinery and equipment used in | ||||||
34 | the general
maintenance or repair of such exempt machinery and | ||||||
35 | equipment or for in-house
manufacture of exempt machinery and | ||||||
36 | equipment. For the purposes of exemption
(5), each of these |
| |||||||
| |||||||
1 | terms shall have the following meanings: (1) "manufacturing
| ||||||
2 | process" shall mean the production of any article of tangible | ||||||
3 | personal
property, whether such article is a finished product | ||||||
4 | or an article for use in
the process of manufacturing or | ||||||
5 | assembling a different article of tangible
personal property, | ||||||
6 | by procedures commonly regarded as manufacturing,
processing, | ||||||
7 | fabricating, or refining which changes some existing
material | ||||||
8 | or materials into a material with a different form, use or
| ||||||
9 | name. In relation to a recognized integrated business composed | ||||||
10 | of a
series of operations which collectively constitute | ||||||
11 | manufacturing, or
individually constitute manufacturing | ||||||
12 | operations, the manufacturing
process shall be deemed to | ||||||
13 | commence with the first operation or stage of
production in the | ||||||
14 | series, and shall not be deemed to end until the
completion of | ||||||
15 | the final product in the last operation or stage of
production | ||||||
16 | in the series; and further, for purposes of exemption (5),
| ||||||
17 | photoprocessing is deemed to be a manufacturing process of | ||||||
18 | tangible
personal property for wholesale or retail sale; (2) | ||||||
19 | "assembling process" shall
mean the production of any article | ||||||
20 | of tangible personal property, whether such
article is a | ||||||
21 | finished product or an article for use in the process of
| ||||||
22 | manufacturing or assembling a different article of tangible | ||||||
23 | personal
property, by the combination of existing materials in | ||||||
24 | a manner commonly
regarded as assembling which results in a | ||||||
25 | material of a different form,
use or name; (3) "machinery" | ||||||
26 | shall mean major mechanical machines or
major components of | ||||||
27 | such machines contributing to a manufacturing or
assembling | ||||||
28 | process; and (4) "equipment" shall include any independent
| ||||||
29 | device or tool separate from any machinery but essential to an
| ||||||
30 | integrated manufacturing or assembly process; including | ||||||
31 | computers
used primarily in a manufacturer's computer
assisted | ||||||
32 | design, computer assisted manufacturing (CAD/CAM) system;
or | ||||||
33 | any subunit or assembly comprising a component of any machinery | ||||||
34 | or
auxiliary, adjunct or attachment parts of machinery, such as | ||||||
35 | tools, dies,
jigs, fixtures, patterns and molds; or any parts | ||||||
36 | which require periodic
replacement in the course of normal |
| |||||||
| |||||||
1 | operation; but shall not include hand
tools.
Equipment includes | ||||||
2 | chemicals or chemicals acting as catalysts but only if the
| ||||||
3 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
4 | immediate change
upon a
product being manufactured or assembled | ||||||
5 | for wholesale or retail sale or
lease.
The purchaser of such | ||||||
6 | machinery and equipment who has an active
resale registration | ||||||
7 | number shall furnish such number to the seller at the
time of | ||||||
8 | purchase. The user of such machinery and equipment and tools
| ||||||
9 | without an active resale registration number shall prepare a | ||||||
10 | certificate of
exemption for each transaction stating facts | ||||||
11 | establishing the exemption for
that transaction, which | ||||||
12 | certificate shall be available to the Department
for inspection | ||||||
13 | or audit. The Department shall prescribe the form of the
| ||||||
14 | certificate.
| ||||||
15 | Any informal rulings, opinions or letters issued by the | ||||||
16 | Department in
response to an inquiry or request for any opinion | ||||||
17 | from any person
regarding the coverage and applicability of | ||||||
18 | exemption (5) to specific
devices shall be published, | ||||||
19 | maintained as a public record, and made
available for public | ||||||
20 | inspection and copying. If the informal ruling,
opinion or | ||||||
21 | letter contains trade secrets or other confidential
| ||||||
22 | information, where possible the Department shall delete such | ||||||
23 | information
prior to publication. Whenever such informal | ||||||
24 | rulings, opinions, or
letters contain any policy of general | ||||||
25 | applicability, the Department
shall formulate and adopt such | ||||||
26 | policy as a rule in accordance with the
provisions of the | ||||||
27 | Illinois Administrative Procedure Act.
| ||||||
28 | At the same time as the taxpayer files it's annual Illinois | ||||||
29 | income tax return, the taxpayer must disclose the aggregate | ||||||
30 | dollar amount of manufacturing
and assembling machinery and | ||||||
31 | equipment tax exemptions received under the Use Tax Act, the | ||||||
32 | Service Use Tax Act, the Service Occupation Tax Act, and the | ||||||
33 | Retailers' Occupation Tax Act during the most recently | ||||||
34 | completed calendar year, broken down by plant and by facility. | ||||||
35 | If a plant or facility with respect to which a taxpayer | ||||||
36 | received manufacturing
and assembling machinery and equipment |
| |||||||
| |||||||
1 | exemptions closes, the taxpayer must pay to the Department all | ||||||
2 | amounts that were not not paid in taxes under the Use Tax Act, | ||||||
3 | the Service Use Tax Act, the Service Occupation Tax Act, and | ||||||
4 | the Retailers' Occupation Tax Act due to such exemptions, for | ||||||
5 | the 5-year period immediately preceding the plant or facility | ||||||
6 | closure.
| ||||||
7 | On and after July 1, 1987, no entity otherwise eligible | ||||||
8 | under exemption
(3) of this Section shall make tax free | ||||||
9 | purchases unless it has an active
exemption identification | ||||||
10 | number issued by the Department.
| ||||||
11 | The purchase, employment and transfer of such tangible | ||||||
12 | personal
property as newsprint and ink for the primary purpose | ||||||
13 | of conveying news
(with or without other information) is not a | ||||||
14 | purchase, use or sale of
service or of tangible personal | ||||||
15 | property within the meaning of this Act.
| ||||||
16 | "Serviceman" means any person who is engaged in the | ||||||
17 | occupation of
making sales of service.
| ||||||
18 | "Sale at retail" means "sale at retail" as defined in the | ||||||
19 | Retailers'
Occupation Tax Act.
| ||||||
20 | "Supplier" means any person who makes sales of tangible | ||||||
21 | personal
property to servicemen for the purpose of resale as an | ||||||
22 | incident to a
sale of service.
| ||||||
23 | "Serviceman maintaining a place of business in this State", | ||||||
24 | or any
like term, means and includes any serviceman:
| ||||||
25 | 1. having or maintaining within this State, directly or | ||||||
26 | by a
subsidiary, an office, distribution house, sales | ||||||
27 | house, warehouse or
other place of business, or any agent | ||||||
28 | or other representative operating
within this State under | ||||||
29 | the authority of the serviceman or its
subsidiary, | ||||||
30 | irrespective of whether such place of business or agent or
| ||||||
31 | other representative is located here permanently or | ||||||
32 | temporarily, or
whether such serviceman or subsidiary is | ||||||
33 | licensed to do business in this
State;
| ||||||
34 | 2. soliciting orders for tangible personal property by | ||||||
35 | means of a
telecommunication or television shopping system | ||||||
36 | (which utilizes toll free
numbers) which is intended by the |
| |||||||
| |||||||
1 | retailer to be broadcast by cable
television or other means | ||||||
2 | of broadcasting, to consumers located in this State;
| ||||||
3 | 3. pursuant to a contract with a broadcaster or | ||||||
4 | publisher located in this
State, soliciting orders for | ||||||
5 | tangible personal property by means of advertising
which is | ||||||
6 | disseminated primarily to consumers located in this State | ||||||
7 | and only
secondarily to bordering jurisdictions;
| ||||||
8 | 4. soliciting orders for tangible personal property by | ||||||
9 | mail if the
solicitations are substantial and recurring and | ||||||
10 | if the retailer benefits
from any banking, financing, debt | ||||||
11 | collection, telecommunication, or
marketing activities | ||||||
12 | occurring in this State or benefits from the location
in | ||||||
13 | this State of authorized installation, servicing, or | ||||||
14 | repair facilities;
| ||||||
15 | 5. being owned or controlled by the same interests | ||||||
16 | which own or
control any retailer engaging in business in | ||||||
17 | the same or similar line of
business in this State;
| ||||||
18 | 6. having a franchisee or licensee operating under its | ||||||
19 | trade name if
the franchisee or licensee is required to | ||||||
20 | collect the tax under this Section;
| ||||||
21 | 7. pursuant to a contract with a cable television | ||||||
22 | operator located in
this State, soliciting orders for | ||||||
23 | tangible personal property by means of
advertising which is | ||||||
24 | transmitted or distributed over a cable television
system | ||||||
25 | in this State; or
| ||||||
26 | 8. engaging in activities in Illinois, which | ||||||
27 | activities in the
state in which the supply business | ||||||
28 | engaging in such activities is located
would constitute | ||||||
29 | maintaining a place of business in that state.
| ||||||
30 | (Source: P.A. 92-484, eff. 8-23-01; 93-23, eff. 6-20-03; 93-24, | ||||||
31 | eff.
6-20-03; revised 8-21-03.)
| ||||||
32 | Section 15. The Service Occupation Tax Act is amended by | ||||||
33 | changing Section 2 as follows:
| ||||||
34 | (35 ILCS 115/2) (from Ch. 120, par. 439.102)
|
| |||||||
| |||||||
1 | Sec. 2. "Transfer" means any transfer of the title to | ||||||
2 | property or of
the ownership of property whether or not the | ||||||
3 | transferor retains title as
security for the payment of amounts | ||||||
4 | due him from the transferee.
| ||||||
5 | "Cost Price" means the consideration paid by the serviceman | ||||||
6 | for a
purchase valued in money, whether paid in money or | ||||||
7 | otherwise, including
cash, credits and services, and shall be | ||||||
8 | determined without any deduction
on account of the supplier's | ||||||
9 | cost of the property sold or on account of any
other expense | ||||||
10 | incurred by the supplier. When a serviceman contracts out
part | ||||||
11 | or all of the services required in his sale of service, it | ||||||
12 | shall be
presumed that the cost price to the serviceman of the | ||||||
13 | property
transferred to him by his or her subcontractor is | ||||||
14 | equal to 50% of the
subcontractor's charges to the serviceman | ||||||
15 | in the absence of proof of the
consideration paid by the | ||||||
16 | subcontractor for the purchase of such
property.
| ||||||
17 | "Department" means the Department of Revenue.
| ||||||
18 | "Person" means any natural individual, firm, partnership, | ||||||
19 | association, joint
stock company, joint venture, public or | ||||||
20 | private corporation, limited liability
company, and any | ||||||
21 | receiver, executor, trustee, guardian or other representative
| ||||||
22 | appointed by order of any court.
| ||||||
23 | "Sale of Service" means any transaction except:
| ||||||
24 | (a) A retail sale of tangible personal property taxable | ||||||
25 | under the Retailers'
Occupation Tax Act or under the Use Tax | ||||||
26 | Act.
| ||||||
27 | (b) A sale of tangible personal property for the purpose of | ||||||
28 | resale made in
compliance with Section 2c of the Retailers' | ||||||
29 | Occupation Tax Act.
| ||||||
30 | (c) Except as hereinafter provided, a sale or transfer of | ||||||
31 | tangible personal
property as an incident to the rendering of | ||||||
32 | service for or by any governmental
body or for or by any | ||||||
33 | corporation, society, association, foundation or
institution | ||||||
34 | organized and operated exclusively for charitable, religious | ||||||
35 | or
educational purposes or any not-for-profit corporation, | ||||||
36 | society, association,
foundation, institution or organization |
| |||||||
| |||||||
1 | which has no compensated officers or
employees and which is | ||||||
2 | organized and operated primarily for the recreation of
persons | ||||||
3 | 55 years of age or older. A limited liability company may | ||||||
4 | qualify for
the exemption under this paragraph only if the | ||||||
5 | limited liability company is
organized and operated | ||||||
6 | exclusively for educational purposes.
| ||||||
7 | (d) A sale or transfer of tangible personal
property
as an | ||||||
8 | incident to the
rendering of service for interstate carriers | ||||||
9 | for hire for use as rolling stock
moving in interstate commerce | ||||||
10 | or lessors under leases of one year or longer,
executed or in | ||||||
11 | effect at the time of purchase, to interstate carriers for hire
| ||||||
12 | for use as rolling stock moving in interstate commerce, and | ||||||
13 | equipment operated
by a telecommunications provider, licensed | ||||||
14 | as a common
carrier by the Federal Communications Commission, | ||||||
15 | which is permanently
installed in or affixed to aircraft moving | ||||||
16 | in interstate commerce.
| ||||||
17 | (d-1) A sale or transfer of tangible personal
property as | ||||||
18 | an incident to
the rendering of service for owners, lessors or | ||||||
19 | shippers of tangible personal
property which is utilized by | ||||||
20 | interstate carriers for hire for use as rolling
stock moving in | ||||||
21 | interstate commerce, and equipment operated
by a | ||||||
22 | telecommunications provider, licensed as a common carrier by | ||||||
23 | the
Federal Communications Commission, which is permanently | ||||||
24 | installed in or
affixed to aircraft moving in interstate | ||||||
25 | commerce.
| ||||||
26 | (d-1.1) On and after July 1, 2003, a sale or transfer of a | ||||||
27 | motor vehicle
of the
second division with a gross vehicle | ||||||
28 | weight in excess of 8,000 pounds as an
incident to the | ||||||
29 | rendering of service if that motor
vehicle is subject
to the | ||||||
30 | commercial distribution fee imposed under Section 3-815.1 of | ||||||
31 | the
Illinois Vehicle
Code. This exemption applies to repair and | ||||||
32 | replacement parts added after the
initial
purchase of such a | ||||||
33 | motor vehicle if that motor vehicle is used in a manner that
| ||||||
34 | would
qualify for the rolling stock exemption otherwise | ||||||
35 | provided for in this Act.
| ||||||
36 | (d-2) The repairing, reconditioning or remodeling, for a |
| |||||||
| |||||||
1 | common carrier by
rail, of tangible personal property which | ||||||
2 | belongs to such carrier for hire, and
as to which such carrier | ||||||
3 | receives the physical possession of the repaired,
| ||||||
4 | reconditioned or remodeled item of tangible personal property | ||||||
5 | in Illinois, and
which such carrier transports, or shares with | ||||||
6 | another common carrier in the
transportation of such property, | ||||||
7 | out of Illinois on a standard uniform bill of
lading showing | ||||||
8 | the person who repaired, reconditioned or remodeled the | ||||||
9 | property
as the shipper or consignor of such property to a | ||||||
10 | destination outside Illinois,
for use outside Illinois.
| ||||||
11 | (d-3) A sale or transfer of tangible personal property | ||||||
12 | which
is produced by the seller thereof on special order in | ||||||
13 | such a way as to have
made the applicable tax the Service | ||||||
14 | Occupation Tax or the Service Use Tax,
rather than the | ||||||
15 | Retailers' Occupation Tax or the Use Tax, for an interstate
| ||||||
16 | carrier by rail which receives the physical possession of such | ||||||
17 | property in
Illinois, and which transports such property, or | ||||||
18 | shares with another common
carrier in the transportation of | ||||||
19 | such property, out of Illinois on a standard
uniform bill of | ||||||
20 | lading showing the seller of the property as the shipper or
| ||||||
21 | consignor of such property to a destination outside Illinois, | ||||||
22 | for use outside
Illinois.
| ||||||
23 | (d-4) Until January 1, 1997, a sale, by a registered | ||||||
24 | serviceman paying tax
under this Act to the Department, of | ||||||
25 | special order printed materials delivered
outside Illinois and | ||||||
26 | which are not returned to this State, if delivery is made
by | ||||||
27 | the seller or agent of the seller, including an agent who | ||||||
28 | causes the product
to be delivered outside Illinois by a common | ||||||
29 | carrier or the U.S.
postal service.
| ||||||
30 | (e) A sale or transfer of machinery and equipment used | ||||||
31 | primarily in
the process of the manufacturing or assembling, | ||||||
32 | either in an existing, an
expanded or a new manufacturing | ||||||
33 | facility, of tangible personal property for
wholesale or retail | ||||||
34 | sale or lease, whether such sale or lease is made directly
by | ||||||
35 | the manufacturer or by some other person, whether the materials | ||||||
36 | used in the
process are owned by the manufacturer or some other |
| |||||||
| |||||||
1 | person, or whether such
sale or lease is made apart from or as | ||||||
2 | an incident to the seller's engaging in
a service occupation | ||||||
3 | and the applicable tax is a Service Occupation Tax or
Service | ||||||
4 | Use Tax, rather than Retailers' Occupation Tax or Use Tax.
| ||||||
5 | (f) Until July 1, 2003, the sale or transfer of | ||||||
6 | distillation
machinery
and equipment, sold as a
unit or kit and | ||||||
7 | assembled or installed by the retailer, which machinery
and | ||||||
8 | equipment is certified by the user to be used only for the | ||||||
9 | production
of ethyl alcohol that will be used for consumption | ||||||
10 | as motor fuel or as a
component of motor fuel for the personal | ||||||
11 | use of such user and not subject
to sale or resale.
| ||||||
12 | (g) At the election of any serviceman not required to be | ||||||
13 | otherwise
registered as a retailer under Section 2a of the | ||||||
14 | Retailers' Occupation Tax Act,
made for each fiscal year sales | ||||||
15 | of service in which the aggregate annual cost
price of tangible | ||||||
16 | personal property transferred as an incident to the sales of
| ||||||
17 | service is less than 35% (75% in the case of servicemen | ||||||
18 | transferring
prescription drugs or servicemen engaged in | ||||||
19 | graphic arts production) of the
aggregate annual total gross | ||||||
20 | receipts from all sales of service. The purchase
of such | ||||||
21 | tangible personal property by the serviceman shall be subject | ||||||
22 | to tax
under the Retailers' Occupation Tax Act and the Use Tax | ||||||
23 | Act.
However, if a
primary serviceman who has made the election | ||||||
24 | described in this paragraph
subcontracts service work to a | ||||||
25 | secondary serviceman who has also made the
election described | ||||||
26 | in this paragraph, the primary serviceman does not
incur a Use | ||||||
27 | Tax liability if the secondary serviceman (i) has paid or will | ||||||
28 | pay
Use
Tax on his or her cost price of any tangible personal | ||||||
29 | property transferred
to the primary serviceman and (ii) | ||||||
30 | certifies that fact in writing to the
primary serviceman.
| ||||||
31 | Tangible personal property transferred incident to the | ||||||
32 | completion of a
maintenance agreement is exempt from the tax | ||||||
33 | imposed pursuant to this Act.
| ||||||
34 | Exemption (e) also includes machinery and equipment used in | ||||||
35 | the
general maintenance or repair of such exempt machinery and | ||||||
36 | equipment or for
in-house manufacture of exempt machinery and |
| |||||||
| |||||||
1 | equipment.
For the purposes of exemption (e), each of these | ||||||
2 | terms shall have the following
meanings: (1) "manufacturing | ||||||
3 | process" shall mean the production of any
article of tangible | ||||||
4 | personal property, whether such article is a
finished product | ||||||
5 | or an article for use in the process of manufacturing
or | ||||||
6 | assembling a different article of tangible personal property, | ||||||
7 | by
procedures commonly regarded as manufacturing, processing, | ||||||
8 | fabricating,
or refining which changes some existing material | ||||||
9 | or materials into a
material with a different form, use or | ||||||
10 | name. In relation to a
recognized integrated business composed | ||||||
11 | of a series of operations which
collectively constitute | ||||||
12 | manufacturing, or individually constitute
manufacturing | ||||||
13 | operations, the manufacturing process shall be deemed to
| ||||||
14 | commence with the first operation or stage of production in the | ||||||
15 | series,
and shall not be deemed to end until the completion of | ||||||
16 | the final product
in the last operation or stage of production | ||||||
17 | in the series; and further for
purposes of exemption (e), | ||||||
18 | photoprocessing is deemed to be a manufacturing
process of | ||||||
19 | tangible personal property for wholesale or retail sale;
(2) | ||||||
20 | "assembling process" shall mean the production of any article | ||||||
21 | of
tangible personal property, whether such article is a | ||||||
22 | finished product
or an article for use in the process of | ||||||
23 | manufacturing or assembling a
different article of tangible | ||||||
24 | personal property, by the combination of
existing materials in | ||||||
25 | a manner commonly regarded as assembling which
results in a | ||||||
26 | material of a different form, use or name; (3) "machinery"
| ||||||
27 | shall mean major mechanical machines or major components of | ||||||
28 | such machines
contributing to a manufacturing or assembling | ||||||
29 | process; and (4) "equipment"
shall include any independent | ||||||
30 | device or tool separate from any machinery but
essential to an | ||||||
31 | integrated manufacturing or assembly process; including
| ||||||
32 | computers used primarily in a manufacturer's computer
assisted | ||||||
33 | design, computer assisted manufacturing (CAD/CAM) system; or | ||||||
34 | any
subunit or assembly comprising a component of any machinery | ||||||
35 | or auxiliary,
adjunct or attachment parts of machinery, such as | ||||||
36 | tools, dies, jigs, fixtures,
patterns and molds; or any parts |
| |||||||
| |||||||
1 | which require periodic replacement in the
course of normal | ||||||
2 | operation; but shall not include hand tools. Equipment
includes | ||||||
3 | chemicals or chemicals acting as catalysts but only if the | ||||||
4 | chemicals
or chemicals acting as catalysts effect a direct and | ||||||
5 | immediate change upon a
product being manufactured or assembled | ||||||
6 | for wholesale or retail sale or lease.
The purchaser of such | ||||||
7 | machinery and equipment
who has an active resale registration | ||||||
8 | number shall furnish such number to
the seller at the time of | ||||||
9 | purchase. The purchaser of such machinery and
equipment and | ||||||
10 | tools without an active resale registration number shall | ||||||
11 | furnish
to the seller a certificate of exemption for each | ||||||
12 | transaction stating facts
establishing the exemption for that | ||||||
13 | transaction, which certificate shall
be available to the | ||||||
14 | Department for inspection or audit. At the same time as the | ||||||
15 | taxpayer files it's annual Illinois income tax return, the | ||||||
16 | taxpayer must disclose the aggregate dollar amount of | ||||||
17 | manufacturing
and assembling machinery and equipment tax | ||||||
18 | exemptions received under the Use Tax Act, the Service Use Tax | ||||||
19 | Act, the Service Occupation Tax Act, and the Retailers' | ||||||
20 | Occupation Tax Act during the most recently completed calendar | ||||||
21 | year, broken down by plant and by facility. If a plant or | ||||||
22 | facility with respect to which a taxpayer received | ||||||
23 | manufacturing
and assembling machinery and equipment | ||||||
24 | exemptions closes, the taxpayer must pay to the Department all | ||||||
25 | amounts that were not not paid in taxes under the Use Tax Act, | ||||||
26 | the Service Use Tax Act, the Service Occupation Tax Act, and | ||||||
27 | the Retailers' Occupation Tax Act due to such exemptions, for | ||||||
28 | the 5-year period immediately preceding the date of the plant | ||||||
29 | or facility closure.
| ||||||
30 | Except as provided in Section 2d of this Act, the rolling | ||||||
31 | stock exemption
applies to rolling
stock
used by an interstate
| ||||||
32 | carrier for hire, even just between points in Illinois, if such | ||||||
33 | rolling
stock transports, for hire, persons whose journeys or | ||||||
34 | property whose
shipments originate or terminate outside | ||||||
35 | Illinois.
| ||||||
36 | Any informal rulings, opinions or letters issued by the |
| |||||||
| |||||||
1 | Department in
response to an inquiry or request for any opinion | ||||||
2 | from any person
regarding the coverage and applicability of | ||||||
3 | exemption (e) to specific
devices shall be published, | ||||||
4 | maintained as a public record, and made
available for public | ||||||
5 | inspection and copying. If the informal ruling,
opinion or | ||||||
6 | letter contains trade secrets or other confidential
| ||||||
7 | information, where possible the Department shall delete such | ||||||
8 | information
prior to publication. Whenever such informal | ||||||
9 | rulings, opinions, or
letters contain any policy of general | ||||||
10 | applicability, the Department
shall formulate and adopt such | ||||||
11 | policy as a rule in accordance with the
provisions of the | ||||||
12 | Illinois Administrative Procedure Act.
| ||||||
13 | On and after July 1, 1987, no entity otherwise eligible | ||||||
14 | under exemption
(c) of this Section shall make tax free | ||||||
15 | purchases unless it has an active
exemption identification | ||||||
16 | number issued by the Department.
| ||||||
17 | "Serviceman" means any person who is engaged in the | ||||||
18 | occupation of
making sales of service.
| ||||||
19 | "Sale at Retail" means "sale at retail" as defined in the | ||||||
20 | Retailers'
Occupation Tax Act.
| ||||||
21 | "Supplier" means any person who makes sales of tangible | ||||||
22 | personal
property to servicemen for the purpose of resale as an | ||||||
23 | incident to a
sale of service.
| ||||||
24 | (Source: P.A. 92-484, eff. 8-23-01;
93-23, eff. 6-20-03; 93-24, | ||||||
25 | eff. 6-20-03; revised 8-21-03.)
| ||||||
26 | Section 20. The Retailers' Occupation Tax Act is amended by | ||||||
27 | changing Section 2-45 as follows:
| ||||||
28 | (35 ILCS 120/2-45) (from Ch. 120, par. 441-45)
| ||||||
29 | Sec. 2-45. Manufacturing and assembly exemption. The | ||||||
30 | manufacturing
and assembly machinery and equipment exemption | ||||||
31 | includes machinery
and equipment that replaces machinery
and | ||||||
32 | equipment in an existing manufacturing facility as well as | ||||||
33 | machinery
and equipment that are for use in an expanded or new
| ||||||
34 | manufacturing facility.
|
| |||||||
| |||||||
1 | The machinery and equipment exemption also includes | ||||||
2 | machinery
and equipment used in the
general maintenance or | ||||||
3 | repair of exempt machinery and equipment or for
in-house | ||||||
4 | manufacture of exempt machinery and equipment.
For the purposes | ||||||
5 | of this exemption, terms have the following meanings:
| ||||||
6 | (1) "Manufacturing process" means the production of an | ||||||
7 | article of
tangible personal property, whether the article | ||||||
8 | is a finished product or an
article for use in the process | ||||||
9 | of manufacturing or assembling a different
article of | ||||||
10 | tangible personal property, by a procedure commonly | ||||||
11 | regarded as
manufacturing, processing, fabricating, or | ||||||
12 | refining that changes some
existing material or materials | ||||||
13 | into a material with a different form, use,
or name. In | ||||||
14 | relation to a recognized integrated business composed of a
| ||||||
15 | series of operations that collectively constitute | ||||||
16 | manufacturing, or
individually constitute manufacturing | ||||||
17 | operations, the manufacturing process
commences with the | ||||||
18 | first operation or stage of production in the series and
| ||||||
19 | does not end until the completion of the final product in | ||||||
20 | the last
operation or stage of production in the series. | ||||||
21 | For purposes of this
exemption, photoprocessing is a | ||||||
22 | manufacturing process of tangible personal
property for | ||||||
23 | wholesale or retail sale.
| ||||||
24 | (2) "Assembling process" means the production of an | ||||||
25 | article of
tangible personal property, whether the article | ||||||
26 | is a finished product or an
article for use in the process | ||||||
27 | of manufacturing or assembling a different
article of | ||||||
28 | tangible personal property, by the combination of existing
| ||||||
29 | materials in a manner commonly regarded as assembling that | ||||||
30 | results in a
material of a different form, use, or name.
| ||||||
31 | (3) "Machinery" means major mechanical machines or | ||||||
32 | major components of
those machines contributing to a | ||||||
33 | manufacturing or assembling process.
| ||||||
34 | (4) "Equipment" includes an independent device or tool | ||||||
35 | separate from
machinery but essential to an integrated | ||||||
36 | manufacturing or assembly process;
including computers |
| |||||||
| |||||||
1 | used primarily in a manufacturer's computer assisted | ||||||
2 | design, computer assisted manufacturing
(CAD/CAM) system; | ||||||
3 | any subunit or assembly comprising a component of any
| ||||||
4 | machinery or auxiliary, adjunct, or attachment parts of | ||||||
5 | machinery, such as
tools, dies, jigs, fixtures, patterns, | ||||||
6 | and molds; and any parts that
require periodic replacement | ||||||
7 | in the course of normal operation; but does
not include | ||||||
8 | hand tools. Equipment includes chemicals or chemicals | ||||||
9 | acting as
catalysts but only if
the chemicals or chemicals | ||||||
10 | acting as catalysts effect a direct and
immediate change | ||||||
11 | upon a
product being manufactured or assembled for | ||||||
12 | wholesale or retail sale or
lease.
| ||||||
13 | The manufacturing and assembling machinery and equipment | ||||||
14 | exemption
includes the sale of materials to a purchaser who | ||||||
15 | produces exempted types
of machinery, equipment, or tools and | ||||||
16 | who rents or leases that machinery,
equipment, or tools to a | ||||||
17 | manufacturer of tangible personal property. This
exemption | ||||||
18 | also includes the sale of materials to a purchaser who | ||||||
19 | manufactures
those materials into an exempted type of | ||||||
20 | machinery, equipment, or tools
that the purchaser uses himself | ||||||
21 | or herself in the manufacturing of tangible
personal property. | ||||||
22 | The purchaser of the machinery and equipment who has an
active | ||||||
23 | resale registration number shall furnish that number to the | ||||||
24 | seller
at the time of purchase. A purchaser of the machinery, | ||||||
25 | equipment, and
tools without an active resale registration | ||||||
26 | number shall furnish to the
seller a certificate of exemption | ||||||
27 | for each transaction stating facts
establishing the exemption | ||||||
28 | for that transaction, and that certificate shall
be available | ||||||
29 | to the Department for inspection or audit. Informal
rulings, | ||||||
30 | opinions, or letters issued by the Department in response to an
| ||||||
31 | inquiry or request for an opinion from any person regarding the | ||||||
32 | coverage and
applicability of this exemption to specific | ||||||
33 | devices shall be published,
maintained as a public record,
and | ||||||
34 | made available for public inspection and copying. If the | ||||||
35 | informal
ruling, opinion, or letter contains trade secrets or | ||||||
36 | other confidential
information, where possible, the Department |
| |||||||
| |||||||
1 | shall delete that information
before publication. Whenever | ||||||
2 | informal rulings, opinions, or letters
contain a policy of | ||||||
3 | general applicability, the Department shall
formulate and | ||||||
4 | adopt that policy as a rule in accordance with the Illinois
| ||||||
5 | Administrative Procedure Act.
| ||||||
6 | At the same time as the taxpayer files it's annual Illinois | ||||||
7 | income tax return, the taxpayer must disclose the aggregate | ||||||
8 | dollar amount of manufacturing
and assembling machinery and | ||||||
9 | equipment tax exemptions received under the Use Tax Act, the | ||||||
10 | Service Use Tax Act, the Service Occupation Tax Act, and the | ||||||
11 | Retailers' Occupation Tax Act during the most recently | ||||||
12 | completed calendar year, broken down by plant and by facility. | ||||||
13 | If a plant or facility with respect to which a taxpayer | ||||||
14 | received manufacturing
and assembling machinery and equipment | ||||||
15 | exemptions closes, the taxpayer must pay to the Department all | ||||||
16 | amounts that were not not paid in taxes under the Use Tax Act, | ||||||
17 | the Service Use Tax Act, the Service Occupation Tax Act, and | ||||||
18 | the Retailers' Occupation Tax Act due to such exemptions, for | ||||||
19 | the 5-year period immediately preceding the date of the plant | ||||||
20 | or facility closure.
| ||||||
21 | (Source: P.A. 91-51, eff. 6-30-99; 92-484, eff. 8-23-01.)
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