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Rep. Barbara Flynn Currie
Filed: 5/29/2013
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1 | | AMENDMENT TO SENATE BILL 2243
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2 | | AMENDMENT NO. ______. Amend Senate Bill 2243, AS AMENDED, |
3 | | by replacing everything after the enacting clause with the |
4 | | following:
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5 | | "Section 5. The Use Tax Act is amended by changing Sections |
6 | | 3, 3-5, 3-25, and 3-50 as follows:
|
7 | | (35 ILCS 105/3) (from Ch. 120, par. 439.3)
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8 | | Sec. 3. Tax imposed. A tax is imposed upon the privilege of |
9 | | using in
this State tangible personal property purchased at |
10 | | retail from a
retailer, including computer software, and
|
11 | | including photographs, negatives, and positives that are the |
12 | | product of
photoprocessing, but not including products of |
13 | | photoprocessing produced for
use in motion pictures for |
14 | | commercial exhibition.
Beginning January 1, 2001, prepaid |
15 | | telephone calling arrangements shall be
considered tangible |
16 | | personal property subject to the tax imposed under this Act
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1 | | regardless of the form in which those arrangements may be |
2 | | embodied,
transmitted, or fixed by any method now known or |
3 | | hereafter developed. Purchases of (1) electricity delivered to |
4 | | customers by wire; (2) natural or artificial gas that is |
5 | | delivered to customers though pipes, pipelines, or mains; and |
6 | | (3) water that is delivered to customers though pipes, |
7 | | pipelines, or mains are not subject to tax under this Act. The |
8 | | provisions of this amendatory Act of the 98th General Assembly |
9 | | are declaratory of existing law as to the meaning and scope of |
10 | | this Act.
|
11 | | (Source: P.A. 91-51, eff. 6-30-99; 91-870, eff. 6-22-00.)
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12 | | (35 ILCS 105/3-5)
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13 | | Sec. 3-5. Exemptions. Use of the following tangible |
14 | | personal property
is exempt from the tax imposed by this Act:
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15 | | (1) Personal property purchased from a corporation, |
16 | | society, association,
foundation, institution, or |
17 | | organization, other than a limited liability
company, that is |
18 | | organized and operated as a not-for-profit service enterprise
|
19 | | for the benefit of persons 65 years of age or older if the |
20 | | personal property
was not purchased by the enterprise for the |
21 | | purpose of resale by the
enterprise.
|
22 | | (2) Personal property purchased by a not-for-profit |
23 | | Illinois county
fair association for use in conducting, |
24 | | operating, or promoting the
county fair.
|
25 | | (3) Personal property purchased by a not-for-profit
arts or |
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1 | | cultural organization that establishes, by proof required by |
2 | | the
Department by
rule, that it has received an exemption under |
3 | | Section 501(c)(3) of the Internal
Revenue Code and that is |
4 | | organized and operated primarily for the
presentation
or |
5 | | support of arts or cultural programming, activities, or |
6 | | services. These
organizations include, but are not limited to, |
7 | | music and dramatic arts
organizations such as symphony |
8 | | orchestras and theatrical groups, arts and
cultural service |
9 | | organizations, local arts councils, visual arts organizations,
|
10 | | and media arts organizations.
On and after the effective date |
11 | | of this amendatory Act of the 92nd General
Assembly, however, |
12 | | an entity otherwise eligible for this exemption shall not
make |
13 | | tax-free purchases unless it has an active identification |
14 | | number issued by
the Department.
|
15 | | (4) Personal property purchased by a governmental body, by |
16 | | a
corporation, society, association, foundation, or |
17 | | institution organized and
operated exclusively for charitable, |
18 | | religious, or educational purposes, or
by a not-for-profit |
19 | | corporation, society, association, foundation,
institution, or |
20 | | organization that has no compensated officers or employees
and |
21 | | that is organized and operated primarily for the recreation of |
22 | | persons
55 years of age or older. A limited liability company |
23 | | may qualify for the
exemption under this paragraph only if the |
24 | | limited liability company is
organized and operated |
25 | | exclusively for educational purposes. On and after July
1, |
26 | | 1987, however, no entity otherwise eligible for this exemption |
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1 | | shall make
tax-free purchases unless it has an active exemption |
2 | | identification number
issued by the Department.
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3 | | (5) Until July 1, 2003, a passenger car that is a |
4 | | replacement vehicle to
the extent that the
purchase price of |
5 | | the car is subject to the Replacement Vehicle Tax.
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6 | | (6) Until July 1, 2003 and beginning again on September 1, |
7 | | 2004 through August 30, 2014, graphic arts machinery and |
8 | | equipment, including
repair and replacement
parts, both new and |
9 | | used, and including that manufactured on special order,
|
10 | | certified by the purchaser to be used primarily for graphic |
11 | | arts production,
and including machinery and equipment |
12 | | purchased for lease.
Equipment includes chemicals or chemicals |
13 | | acting as catalysts but only if
the
chemicals or chemicals |
14 | | acting as catalysts effect a direct and immediate change
upon a |
15 | | graphic arts product.
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16 | | (7) Farm chemicals.
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17 | | (8) Legal tender, currency, medallions, or gold or silver |
18 | | coinage issued by
the State of Illinois, the government of the |
19 | | United States of America, or the
government of any foreign |
20 | | country, and bullion.
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21 | | (9) Personal property purchased from a teacher-sponsored |
22 | | student
organization affiliated with an elementary or |
23 | | secondary school located in
Illinois.
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24 | | (10) A motor vehicle of the first division, a motor vehicle |
25 | | of the
second division that is a self-contained motor vehicle |
26 | | designed or
permanently converted to provide living quarters |
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1 | | for recreational, camping,
or travel use, with direct walk |
2 | | through to the living quarters from the
driver's seat, or a |
3 | | motor vehicle of the second division that is of the
van |
4 | | configuration designed for the transportation of not less than |
5 | | 7 nor
more than 16 passengers, as defined in Section 1-146 of |
6 | | the Illinois
Vehicle Code, that is used for automobile renting, |
7 | | as defined in the
Automobile Renting Occupation and Use Tax |
8 | | Act.
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9 | | (11) Farm machinery and equipment, both new and used,
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10 | | including that manufactured on special order, certified by the |
11 | | purchaser
to be used primarily for production agriculture or |
12 | | State or federal
agricultural programs, including individual |
13 | | replacement parts for
the machinery and equipment, including |
14 | | machinery and equipment
purchased
for lease,
and including |
15 | | implements of husbandry defined in Section 1-130 of
the |
16 | | Illinois Vehicle Code, farm machinery and agricultural |
17 | | chemical and
fertilizer spreaders, and nurse wagons required to |
18 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
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19 | | but excluding other motor
vehicles required to be
registered |
20 | | under the Illinois Vehicle Code.
Horticultural polyhouses or |
21 | | hoop houses used for propagating, growing, or
overwintering |
22 | | plants shall be considered farm machinery and equipment under
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23 | | this item (11).
Agricultural chemical tender tanks and dry |
24 | | boxes shall include units sold
separately from a motor vehicle |
25 | | required to be licensed and units sold mounted
on a motor |
26 | | vehicle required to be licensed if the selling price of the |
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1 | | tender
is separately stated.
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2 | | Farm machinery and equipment shall include precision |
3 | | farming equipment
that is
installed or purchased to be |
4 | | installed on farm machinery and equipment
including, but not |
5 | | limited to, tractors, harvesters, sprayers, planters,
seeders, |
6 | | or spreaders.
Precision farming equipment includes, but is not |
7 | | limited to, soil testing
sensors, computers, monitors, |
8 | | software, global positioning
and mapping systems, and other |
9 | | such equipment.
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10 | | Farm machinery and equipment also includes computers, |
11 | | sensors, software, and
related equipment used primarily in the
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12 | | computer-assisted operation of production agriculture |
13 | | facilities, equipment,
and
activities such as, but not limited |
14 | | to,
the collection, monitoring, and correlation of
animal and |
15 | | crop data for the purpose of
formulating animal diets and |
16 | | agricultural chemicals. This item (11) is exempt
from the |
17 | | provisions of
Section 3-90.
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18 | | (12) Fuel and petroleum products sold to or used by an air |
19 | | common
carrier, certified by the carrier to be used for |
20 | | consumption, shipment, or
storage in the conduct of its |
21 | | business as an air common carrier, for a
flight destined for or |
22 | | returning from a location or locations
outside the United |
23 | | States without regard to previous or subsequent domestic
|
24 | | stopovers.
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25 | | (13) Proceeds of mandatory service charges separately
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26 | | stated on customers' bills for the purchase and consumption of |
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1 | | food and
beverages purchased at retail from a retailer, to the |
2 | | extent that the proceeds
of the service charge are in fact |
3 | | turned over as tips or as a substitute
for tips to the |
4 | | employees who participate directly in preparing, serving,
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5 | | hosting or cleaning up the food or beverage function with |
6 | | respect to which
the service charge is imposed.
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7 | | (14) Until July 1, 2003, oil field exploration, drilling, |
8 | | and production
equipment,
including (i) rigs and parts of rigs, |
9 | | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and |
10 | | tubular goods,
including casing and drill strings, (iii) pumps |
11 | | and pump-jack units, (iv)
storage tanks and flow lines, (v) any |
12 | | individual replacement part for oil
field exploration, |
13 | | drilling, and production equipment, and (vi) machinery and
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14 | | equipment purchased
for lease; but excluding motor vehicles |
15 | | required to be registered under the
Illinois Vehicle Code.
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16 | | (15) Photoprocessing machinery and equipment, including |
17 | | repair and
replacement parts, both new and used, including that
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18 | | manufactured on special order, certified by the purchaser to be |
19 | | used
primarily for photoprocessing, and including
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20 | | photoprocessing machinery and equipment purchased for lease.
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21 | | (16) Until July 1, 2003, and beginning again on the |
22 | | effective date of this amendatory Act of the 97th General |
23 | | Assembly and thereafter, coal and aggregate exploration, |
24 | | mining, offhighway hauling,
processing, maintenance, and |
25 | | reclamation equipment,
including replacement parts and |
26 | | equipment, and
including equipment purchased for lease, but |
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1 | | excluding motor
vehicles required to be registered under the |
2 | | Illinois Vehicle Code.
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3 | | (17) Until July 1, 2003, distillation machinery and |
4 | | equipment, sold as a
unit or kit,
assembled or installed by the |
5 | | retailer, certified by the user to be used
only for the |
6 | | production of ethyl alcohol that will be used for consumption
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7 | | as motor fuel or as a component of motor fuel for the personal |
8 | | use of the
user, and not subject to sale or resale.
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9 | | (18) Manufacturing and assembling machinery and equipment |
10 | | used
primarily in the process of manufacturing or assembling |
11 | | tangible
personal property for wholesale or retail sale or |
12 | | lease, whether that sale
or lease is made directly by the |
13 | | manufacturer or by some other person,
whether the materials |
14 | | used in the process are
owned by the manufacturer or some other |
15 | | person, or whether that sale or
lease is made apart from or as |
16 | | an incident to the seller's engaging in
the service occupation |
17 | | of producing machines, tools, dies, jigs,
patterns, gauges, or |
18 | | other similar items of no commercial value on
special order for |
19 | | a particular purchaser. The exemption provided by this |
20 | | paragraph (18) does not include machinery and equipment used in |
21 | | (i) the generation of electricity for wholesale or retail sale; |
22 | | (ii) the generation or treatment of natural or artificial gas |
23 | | for wholesale or retail sale that is delivered to customers |
24 | | though pipes, pipelines, or mains; or (iii) the treatment of |
25 | | water for wholesale or retail sale that is delivered to |
26 | | customers though pipes, pipelines, or mains. The provisions of |
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1 | | this amendatory Act of the 98th General Assembly are |
2 | | declaratory of existing law as to the meaning and scope of this |
3 | | exemption.
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4 | | (19) Personal property delivered to a purchaser or |
5 | | purchaser's donee
inside Illinois when the purchase order for |
6 | | that personal property was
received by a florist located |
7 | | outside Illinois who has a florist located
inside Illinois |
8 | | deliver the personal property.
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9 | | (20) Semen used for artificial insemination of livestock |
10 | | for direct
agricultural production.
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11 | | (21) Horses, or interests in horses, registered with and |
12 | | meeting the
requirements of any of the
Arabian Horse Club |
13 | | Registry of America, Appaloosa Horse Club, American Quarter
|
14 | | Horse Association, United States
Trotting Association, or |
15 | | Jockey Club, as appropriate, used for
purposes of breeding or |
16 | | racing for prizes. This item (21) is exempt from the provisions |
17 | | of Section 3-90, and the exemption provided for under this item |
18 | | (21) applies for all periods beginning May 30, 1995, but no |
19 | | claim for credit or refund is allowed on or after January 1, |
20 | | 2008
for such taxes paid during the period beginning May 30, |
21 | | 2000 and ending on January 1, 2008.
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22 | | (22) Computers and communications equipment utilized for |
23 | | any
hospital
purpose
and equipment used in the diagnosis,
|
24 | | analysis, or treatment of hospital patients purchased by a |
25 | | lessor who leases
the
equipment, under a lease of one year or |
26 | | longer executed or in effect at the
time the lessor would |
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1 | | otherwise be subject to the tax imposed by this Act, to a
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2 | | hospital
that has been issued an active tax exemption |
3 | | identification number by
the
Department under Section 1g of the |
4 | | Retailers' Occupation Tax Act. If the
equipment is leased in a |
5 | | manner that does not qualify for
this exemption or is used in |
6 | | any other non-exempt manner, the lessor
shall be liable for the
|
7 | | tax imposed under this Act or the Service Use Tax Act, as the |
8 | | case may
be, based on the fair market value of the property at |
9 | | the time the
non-qualifying use occurs. No lessor shall collect |
10 | | or attempt to collect an
amount (however
designated) that |
11 | | purports to reimburse that lessor for the tax imposed by this
|
12 | | Act or the Service Use Tax Act, as the case may be, if the tax |
13 | | has not been
paid by the lessor. If a lessor improperly |
14 | | collects any such amount from the
lessee, the lessee shall have |
15 | | a legal right to claim a refund of that amount
from the lessor. |
16 | | If, however, that amount is not refunded to the lessee for
any |
17 | | reason, the lessor is liable to pay that amount to the |
18 | | Department.
|
19 | | (23) Personal property purchased by a lessor who leases the
|
20 | | property, under
a
lease of
one year or longer executed or in |
21 | | effect at the time
the lessor would otherwise be subject to the |
22 | | tax imposed by this Act,
to a governmental body
that has been |
23 | | issued an active sales tax exemption identification number by |
24 | | the
Department under Section 1g of the Retailers' Occupation |
25 | | Tax Act.
If the
property is leased in a manner that does not |
26 | | qualify for
this exemption
or used in any other non-exempt |
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1 | | manner, the lessor shall be liable for the
tax imposed under |
2 | | this Act or the Service Use Tax Act, as the case may
be, based |
3 | | on the fair market value of the property at the time the
|
4 | | non-qualifying use occurs. No lessor shall collect or attempt |
5 | | to collect an
amount (however
designated) that purports to |
6 | | reimburse that lessor for the tax imposed by this
Act or the |
7 | | Service Use Tax Act, as the case may be, if the tax has not been
|
8 | | paid by the lessor. If a lessor improperly collects any such |
9 | | amount from the
lessee, the lessee shall have a legal right to |
10 | | claim a refund of that amount
from the lessor. If, however, |
11 | | that amount is not refunded to the lessee for
any reason, the |
12 | | lessor is liable to pay that amount to the Department.
|
13 | | (24) Beginning with taxable years ending on or after |
14 | | December
31, 1995
and
ending with taxable years ending on or |
15 | | before December 31, 2004,
personal property that is
donated for |
16 | | disaster relief to be used in a State or federally declared
|
17 | | disaster area in Illinois or bordering Illinois by a |
18 | | manufacturer or retailer
that is registered in this State to a |
19 | | corporation, society, association,
foundation, or institution |
20 | | that has been issued a sales tax exemption
identification |
21 | | number by the Department that assists victims of the disaster
|
22 | | who reside within the declared disaster area.
|
23 | | (25) Beginning with taxable years ending on or after |
24 | | December
31, 1995 and
ending with taxable years ending on or |
25 | | before December 31, 2004, personal
property that is used in the |
26 | | performance of infrastructure repairs in this
State, including |
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1 | | but not limited to municipal roads and streets, access roads,
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2 | | bridges, sidewalks, waste disposal systems, water and sewer |
3 | | line extensions,
water distribution and purification |
4 | | facilities, storm water drainage and
retention facilities, and |
5 | | sewage treatment facilities, resulting from a State
or |
6 | | federally declared disaster in Illinois or bordering Illinois |
7 | | when such
repairs are initiated on facilities located in the |
8 | | declared disaster area
within 6 months after the disaster.
|
9 | | (26) Beginning July 1, 1999, game or game birds purchased |
10 | | at a "game
breeding
and hunting preserve area" as that term is
|
11 | | used in
the Wildlife Code. This paragraph is exempt from the |
12 | | provisions
of
Section 3-90.
|
13 | | (27) 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,
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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
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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.
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5 | | (28) 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 3-90.
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19 | | (29) 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,
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1 | | coin-operated amusement and vending machines.
This
paragraph
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2 | | is exempt from the provisions of Section 3-90.
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3 | | (30) Beginning January 1, 2001 and through June 30, 2016, |
4 | | food for human consumption that is to be consumed off the |
5 | | premises
where it is sold (other than alcoholic beverages, soft |
6 | | drinks, and food that
has been prepared for immediate |
7 | | consumption) and prescription and
nonprescription medicines, |
8 | | drugs, medical appliances, and insulin, urine
testing |
9 | | materials, syringes, and needles used by diabetics, for human |
10 | | use, when
purchased for use by a person receiving medical |
11 | | assistance under Article V of
the Illinois Public Aid Code who |
12 | | resides in a licensed long-term care facility,
as defined in |
13 | | the Nursing Home Care Act, or in a licensed facility as defined |
14 | | in the ID/DD Community Care Act or the Specialized Mental |
15 | | Health Rehabilitation Act.
|
16 | | (31) Beginning on
the effective date of this amendatory Act |
17 | | of the 92nd General Assembly,
computers and communications |
18 | | equipment
utilized for any hospital purpose and equipment used |
19 | | in the diagnosis,
analysis, or treatment of hospital patients |
20 | | purchased by a lessor who leases
the equipment, under a lease |
21 | | of one year or longer executed or in effect at the
time the |
22 | | lessor would otherwise be subject to the tax imposed by this |
23 | | Act, to a
hospital that has been issued an active tax exemption |
24 | | identification number by
the Department under Section 1g of the |
25 | | Retailers' Occupation Tax Act. If the
equipment is leased in a |
26 | | manner that does not qualify for this exemption or is
used in |
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1 | | any other nonexempt manner, the lessor shall be liable for the |
2 | | tax
imposed under this Act or the Service Use Tax Act, as the |
3 | | case may be, based on
the fair market value of the property at |
4 | | the time the nonqualifying use
occurs. No lessor shall collect |
5 | | or attempt to collect an amount (however
designated) that |
6 | | purports to reimburse that lessor for the tax imposed by this
|
7 | | Act or the Service Use Tax Act, as the case may be, if the tax |
8 | | has not been
paid by the lessor. If a lessor improperly |
9 | | collects any such amount from the
lessee, the lessee shall have |
10 | | a legal right to claim a refund of that amount
from the lessor. |
11 | | If, however, that amount is not refunded to the lessee for
any |
12 | | reason, the lessor is liable to pay that amount to the |
13 | | Department.
This paragraph is exempt from the provisions of |
14 | | Section 3-90.
|
15 | | (32) Beginning on
the effective date of this amendatory Act |
16 | | of the 92nd General Assembly,
personal property purchased by a |
17 | | lessor who leases the property,
under a lease of one year or |
18 | | longer executed or in effect at the time the
lessor would |
19 | | otherwise be subject to the tax imposed by this Act, to a
|
20 | | governmental body that has been issued an active sales tax |
21 | | exemption
identification number by the Department under |
22 | | Section 1g of the Retailers'
Occupation Tax Act. If the |
23 | | property is leased in a manner that does not
qualify for this |
24 | | exemption or used in any other nonexempt manner, the lessor
|
25 | | shall be liable for the tax imposed under this Act or the |
26 | | Service Use Tax Act,
as the case may be, based on the fair |
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1 | | market value of the property at the time
the nonqualifying use |
2 | | occurs. No lessor shall collect or attempt to collect
an amount |
3 | | (however designated) that purports to reimburse that lessor for |
4 | | the
tax imposed by this Act or the Service Use Tax Act, as the |
5 | | case may be, if the
tax has not been paid by the lessor. If a |
6 | | lessor improperly collects any such
amount from the lessee, the |
7 | | lessee shall have a legal right to claim a refund
of that |
8 | | amount from the lessor. If, however, that amount is not |
9 | | refunded to
the lessee for any reason, the lessor is liable to |
10 | | pay that amount to the
Department. This paragraph is exempt |
11 | | from the provisions of Section 3-90.
|
12 | | (33) On and after July 1, 2003 and through June 30, 2004, |
13 | | the use in this State of motor vehicles of
the second division |
14 | | with a gross vehicle weight in excess of 8,000 pounds and
that |
15 | | are subject to the commercial distribution fee imposed under |
16 | | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July |
17 | | 1, 2004 and through June 30, 2005, the use in this State of |
18 | | motor vehicles of the second division: (i) with a gross vehicle |
19 | | weight rating in excess of 8,000 pounds; (ii) that are subject |
20 | | to the commercial distribution fee imposed under Section |
21 | | 3-815.1 of the Illinois Vehicle Code; and (iii) that are |
22 | | primarily used for commercial purposes. Through June 30, 2005, |
23 | | this exemption applies to repair and
replacement parts added |
24 | | after the initial purchase of such a motor vehicle if
that |
25 | | motor
vehicle is used in a manner that would qualify for the |
26 | | rolling stock exemption
otherwise provided for in this Act. For |
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1 | | purposes of this paragraph, the term "used for commercial |
2 | | purposes" means the transportation of persons or property in |
3 | | furtherance of any commercial or industrial enterprise, |
4 | | whether for-hire or not.
|
5 | | (34) Beginning January 1, 2008, tangible personal property |
6 | | used in the construction or maintenance of a community water |
7 | | supply, as defined under Section 3.145 of the Environmental |
8 | | Protection Act, that is operated by a not-for-profit |
9 | | corporation that holds a valid water supply permit issued under |
10 | | Title IV of the Environmental Protection Act. This paragraph is |
11 | | exempt from the provisions of Section 3-90. |
12 | | (35) Beginning January 1, 2010, materials, parts, |
13 | | equipment, components, and furnishings incorporated into or |
14 | | upon an aircraft as part of the modification, refurbishment, |
15 | | completion, replacement, repair, or maintenance of the |
16 | | aircraft. This exemption includes consumable supplies used in |
17 | | the modification, refurbishment, completion, replacement, |
18 | | repair, and maintenance of aircraft, but excludes any |
19 | | materials, parts, equipment, components, and consumable |
20 | | supplies used in the modification, replacement, repair, and |
21 | | maintenance of aircraft engines or power plants, whether such |
22 | | engines or power plants are installed or uninstalled upon any |
23 | | such aircraft. "Consumable supplies" include, but are not |
24 | | limited to, adhesive, tape, sandpaper, general purpose |
25 | | lubricants, cleaning solution, latex gloves, and protective |
26 | | films. This exemption applies only to those organizations that |
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1 | | (i) hold an Air Agency Certificate and are empowered to operate |
2 | | an approved repair station by the Federal Aviation |
3 | | Administration, (ii) have a Class IV Rating, and (iii) conduct |
4 | | operations in accordance with Part 145 of the Federal Aviation |
5 | | Regulations. The exemption does not include aircraft operated |
6 | | by a commercial air carrier providing scheduled passenger air |
7 | | service pursuant to authority issued under Part 121 or Part 129 |
8 | | of the Federal Aviation Regulations. |
9 | | (36) Tangible personal property purchased by a |
10 | | public-facilities corporation, as described in Section |
11 | | 11-65-10 of the Illinois Municipal Code, for purposes of |
12 | | constructing or furnishing a municipal convention hall, but |
13 | | only if the legal title to the municipal convention hall is |
14 | | transferred to the municipality without any further |
15 | | consideration by or on behalf of the municipality at the time |
16 | | of the completion of the municipal convention hall or upon the |
17 | | retirement or redemption of any bonds or other debt instruments |
18 | | issued by the public-facilities corporation in connection with |
19 | | the development of the municipal convention hall. This |
20 | | exemption includes existing public-facilities corporations as |
21 | | provided in Section 11-65-25 of the Illinois Municipal Code. |
22 | | This paragraph is exempt from the provisions of Section 3-90. |
23 | | (Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; |
24 | | 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. |
25 | | 7-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431, eff. |
26 | | 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12.)
|
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1 | | (35 ILCS 105/3-25) (from Ch. 120, par. 439.3-25)
|
2 | | Sec. 3-25. Computer software. For the purposes of this Act, |
3 | | "computer
software" means a set of statements, data,
or |
4 | | instructions to be used directly or indirectly in a computer in |
5 | | order to
bring about a certain result in any form in which |
6 | | those statements, data, or
instructions may be embodied, |
7 | | transmitted, or fixed, by any method now known
or hereafter |
8 | | developed, regardless of whether the statements, data, or
|
9 | | instructions are capable of being perceived by or communicated |
10 | | to humans,
and includes prewritten or canned software that is |
11 | | held for repeated sale
or lease, and all associated |
12 | | documentation and materials, if any, whether
contained on |
13 | | magnetic tapes, discs, cards, or other devices or media, but
|
14 | | does not include software that is adapted to specific |
15 | | individualized
requirements of a purchaser, custom-made and |
16 | | modified software designed for
a particular or limited use by a |
17 | | purchaser, or software used to operate
exempt machinery and |
18 | | equipment used in the process of manufacturing or
assembling |
19 | | tangible personal property for wholesale or retail sale or
|
20 | | lease. Software used to operate machinery and equipment used in |
21 | | (i) the generation of electricity for wholesale or retail sale; |
22 | | (ii) the generation or treatment of natural or artificial gas |
23 | | for wholesale or retail sale that is delivered to customers |
24 | | though pipes, pipelines, or mains; or (iii) the treatment of |
25 | | water for wholesale or retail sale that is delivered to |
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1 | | customers though pipes, pipelines, or mains is considered |
2 | | "computer software". The provisions of this amendatory Act of |
3 | | the 98th General Assembly are declaratory of existing law as to |
4 | | the meaning and scope of this exemption.
|
5 | | For the purposes of this Act, computer software shall be |
6 | | considered to be
tangible personal property.
|
7 | | (Source: P.A. 91-51, eff. 6-30-99.)
|
8 | | (35 ILCS 105/3-50) (from Ch. 120, par. 439.3-50)
|
9 | | Sec. 3-50. Manufacturing and assembly exemption. The |
10 | | manufacturing
and assembling machinery and equipment exemption |
11 | | includes
machinery and equipment that replaces machinery and |
12 | | equipment in an
existing manufacturing facility as well as |
13 | | machinery and equipment that
are for use in an expanded or new |
14 | | manufacturing facility. The machinery and
equipment exemption |
15 | | also includes machinery and equipment used in the
general |
16 | | maintenance or repair of exempt machinery and equipment or for
|
17 | | in-house manufacture of exempt machinery and equipment. The |
18 | | machinery and equipment exemption does not include machinery |
19 | | and equipment used in (i) the generation of electricity for |
20 | | wholesale or retail sale; (ii) the generation or treatment of |
21 | | natural or artificial gas for wholesale or retail sale that is |
22 | | delivered to customers though pipes, pipelines, or mains; or |
23 | | (iii) the treatment of water for wholesale or retail sale that |
24 | | is delivered to customers though pipes, pipelines, or mains. |
25 | | The provisions of this amendatory Act of the 98th General |
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1 | | Assembly are declaratory of existing law as to the meaning and |
2 | | scope of this exemption. For the
purposes of this exemption, |
3 | | terms have the following
meanings:
|
4 | | (1) "Manufacturing process" means the production of
an |
5 | | article of tangible personal property, whether the article
|
6 | | is a finished product or an article for use in the process |
7 | | of manufacturing
or assembling a different article of |
8 | | tangible personal property, by
a procedure commonly |
9 | | regarded as manufacturing, processing, fabricating, or
|
10 | | refining that changes some existing material into a |
11 | | material
with a different form, use, or name. In relation |
12 | | to a recognized integrated
business composed of a series of |
13 | | operations that collectively constitute
manufacturing, or |
14 | | individually constitute
manufacturing operations, the |
15 | | manufacturing process commences with the
first operation |
16 | | or stage of production in the series
and does not end until |
17 | | the completion of the final product
in the last operation |
18 | | or stage of production in the series. For purposes
of this |
19 | | exemption, photoprocessing is a
manufacturing process of |
20 | | tangible personal property for wholesale or retail
sale.
|
21 | | (2) "Assembling process" means the production of
an |
22 | | article of tangible personal property, whether the article
|
23 | | is a finished product or an article for use in the process |
24 | | of manufacturing
or assembling a different article of |
25 | | tangible personal property, by the
combination of existing |
26 | | materials in a manner commonly regarded as
assembling that |
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1 | | results in an article or material of a different
form, use, |
2 | | or name.
|
3 | | (3) "Machinery" means major
mechanical machines or |
4 | | major components of those machines contributing to a
|
5 | | manufacturing or assembling process.
|
6 | | (4) "Equipment" includes an independent device
or tool |
7 | | separate from machinery but essential to an integrated
|
8 | | manufacturing or assembly process; including computers |
9 | | used primarily in
a manufacturer's computer assisted |
10 | | design,
computer assisted manufacturing (CAD/CAM) system; |
11 | | any
subunit or assembly comprising a component of any |
12 | | machinery or auxiliary,
adjunct, or attachment parts of |
13 | | machinery, such as tools, dies, jigs,
fixtures, patterns, |
14 | | and molds; and any parts that require
periodic replacement |
15 | | in the course of normal operation; but does not
include |
16 | | hand tools. Equipment includes chemicals or chemicals |
17 | | acting as
catalysts but only if
the chemicals or chemicals |
18 | | acting as catalysts effect a direct and
immediate change |
19 | | upon a
product being manufactured or assembled for |
20 | | wholesale or retail sale or
lease. |
21 | | (5) "Production related tangible personal property" |
22 | | means all tangible personal property that is used or |
23 | | consumed by the purchaser in a manufacturing facility in |
24 | | which a manufacturing process takes place and includes, |
25 | | without limitation, tangible personal property that is |
26 | | purchased for incorporation into real estate within a |
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1 | | manufacturing facility and tangible personal property that |
2 | | is used or consumed in activities such as research and |
3 | | development, preproduction material handling, receiving, |
4 | | quality control, inventory control, storage, staging, and |
5 | | packaging for shipping and transportation purposes. |
6 | | "Production related tangible personal property" does not |
7 | | include (i) tangible personal property that is used, within |
8 | | or without a manufacturing facility, in sales, purchasing, |
9 | | accounting, fiscal management, marketing, personnel |
10 | | recruitment or selection, or landscaping or (ii) tangible |
11 | | personal property that is required to be titled or |
12 | | registered with a department, agency, or unit of federal, |
13 | | State, or local government.
|
14 | | The manufacturing and assembling machinery and equipment |
15 | | exemption includes production related tangible personal |
16 | | property that is purchased on or after July 1, 2007 and on or |
17 | | before June 30, 2008. The exemption for production related |
18 | | tangible personal property is subject to both of the following |
19 | | limitations: |
20 | | (1) The maximum amount of the exemption for any one |
21 | | taxpayer may not exceed 5% of the purchase price of |
22 | | production related tangible personal property that is |
23 | | purchased on or after July 1, 2007 and on or before June |
24 | | 30, 2008. A credit under Section 3-85 of this Act may not |
25 | | be earned by the purchase of production related tangible |
26 | | personal property for which an exemption is received under |
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1 | | this Section. |
2 | | (2) The maximum aggregate amount of the exemptions for |
3 | | production related tangible personal property awarded |
4 | | under this Act and the Retailers' Occupation Tax Act to all |
5 | | taxpayers may not exceed $10,000,000. If the claims for the |
6 | | exemption exceed $10,000,000, then the Department shall |
7 | | reduce the amount of the exemption to each taxpayer on a |
8 | | pro rata basis. |
9 | | The Department may adopt rules to implement and administer the |
10 | | exemption for production related tangible personal property. |
11 | | The manufacturing and assembling machinery and equipment
|
12 | | exemption includes the sale of materials to a purchaser who
|
13 | | produces exempted types of machinery, equipment, or tools and |
14 | | who rents or
leases that machinery, equipment, or tools to a
|
15 | | manufacturer of tangible
personal property. This exemption |
16 | | also includes the sale of materials to a
purchaser who |
17 | | manufactures those materials into an exempted type of
|
18 | | machinery, equipment, or tools that the purchaser uses
himself |
19 | | or herself in the
manufacturing of tangible personal property. |
20 | | This exemption includes the
sale of exempted types of machinery |
21 | | or equipment to a
purchaser who is not the manufacturer, but |
22 | | who rents or leases the use of
the property to a manufacturer. |
23 | | The purchaser of the machinery and
equipment who has an active |
24 | | resale registration number shall
furnish that number to the |
25 | | seller at the time of purchase.
A user of the machinery, |
26 | | equipment, or tools without an
active resale registration |
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1 | | number shall prepare a certificate of exemption
for each |
2 | | transaction stating facts establishing the exemption for that
|
3 | | transaction, and that certificate shall be
available to the |
4 | | Department for inspection or audit. The Department shall
|
5 | | prescribe the form of the certificate. Informal rulings, |
6 | | opinions, or
letters issued by the Department in
response to an |
7 | | inquiry or request for an opinion from any person
regarding the |
8 | | coverage and applicability of this exemption to specific
|
9 | | devices shall be published, maintained as a public record, and |
10 | | made
available for public inspection and copying. If the |
11 | | informal ruling,
opinion, or letter contains trade secrets or |
12 | | other confidential
information, where possible, the Department |
13 | | shall delete that information
before publication. Whenever |
14 | | informal rulings, opinions, or
letters contain a policy of |
15 | | general applicability, the Department
shall formulate and |
16 | | adopt that policy as a rule in accordance with the
Illinois |
17 | | Administrative Procedure Act.
|
18 | | (Source: P.A. 95-707, eff. 1-11-08.)
|
19 | | Section 10. The Service Use Tax Act is amended by changing |
20 | | Sections 2, 3, and 3-25 as follows:
|
21 | | (35 ILCS 110/2) (from Ch. 120, par. 439.32)
|
22 | | Sec. 2. "Use" means the exercise by any person of any right |
23 | | or power
over tangible personal property incident to the |
24 | | ownership of that
property, but does not include the sale or |
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1 | | use for demonstration by him
of that property in any form as |
2 | | tangible personal property in the
regular course of business.
|
3 | | "Use" does not mean the interim
use of
tangible personal |
4 | | property nor the physical incorporation of tangible
personal |
5 | | property, as an ingredient or constituent, into other tangible
|
6 | | personal property, (a) which is sold in the regular course of |
7 | | business
or (b) which the person incorporating such ingredient |
8 | | or constituent
therein has undertaken at the time of such |
9 | | purchase to cause to be
transported in interstate commerce to |
10 | | destinations outside the State of
Illinois.
|
11 | | "Purchased from a serviceman" means the acquisition of the |
12 | | ownership
of, or title to, tangible personal property through a |
13 | | sale of service.
|
14 | | "Purchaser" means any person who, through a sale of |
15 | | service, acquires
the ownership of, or title to, any tangible |
16 | | personal property.
|
17 | | "Cost price" means the consideration paid by the serviceman |
18 | | for a
purchase valued in money, whether paid in money or |
19 | | otherwise, including
cash, credits and services, and shall be |
20 | | determined without any
deduction on account of the supplier's |
21 | | cost of the property sold or on
account of any other expense |
22 | | incurred by the supplier. When a serviceman
contracts out part |
23 | | or all of the services required in his sale of service,
it |
24 | | shall be presumed that the cost price to the serviceman of the |
25 | | property
transferred to him or her by his or her subcontractor |
26 | | is equal to 50% of
the subcontractor's charges to the |
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1 | | serviceman in the absence of proof of
the consideration paid by |
2 | | the subcontractor for the purchase of such property.
|
3 | | "Selling price" means the consideration for a sale valued |
4 | | in money
whether received in money or otherwise, including |
5 | | cash, credits and
service, and shall be determined without any |
6 | | deduction on account of the
serviceman's cost of the property |
7 | | sold, the cost of materials used,
labor or service cost or any |
8 | | other expense whatsoever, but does not
include interest or |
9 | | finance charges which appear as separate items on
the bill of |
10 | | sale or sales contract nor charges that are added to prices
by |
11 | | sellers on account of the seller's duty to collect, from the
|
12 | | purchaser, the tax that is imposed by this Act.
|
13 | | "Department" means the Department of Revenue.
|
14 | | "Person" means any natural individual, firm, partnership,
|
15 | | association, joint stock company, joint venture, public or |
16 | | private
corporation, limited liability company, and any |
17 | | receiver, executor, trustee,
guardian or other representative |
18 | | appointed by order of any court.
|
19 | | "Sale of service" means any transaction except:
|
20 | | (1) a retail sale of tangible personal property taxable |
21 | | under the
Retailers' Occupation Tax Act or under the Use |
22 | | Tax Act.
|
23 | | (2) a sale of tangible personal property for the |
24 | | purpose of resale
made in compliance with Section 2c of the |
25 | | Retailers' Occupation Tax Act.
|
26 | | (3) except as hereinafter provided, a sale or transfer |
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1 | | of tangible
personal property as an incident to the |
2 | | rendering of service for or by
any governmental body, or |
3 | | for or by any corporation, society,
association, |
4 | | foundation or institution organized and operated
|
5 | | exclusively for charitable, religious or educational |
6 | | purposes or any
not-for-profit corporation, society, |
7 | | association, foundation,
institution or organization which |
8 | | has no compensated officers or
employees and which is |
9 | | organized and operated primarily for the
recreation of |
10 | | persons 55 years of age or older. A limited liability |
11 | | company
may qualify for the exemption under this paragraph |
12 | | only if the limited
liability company is organized and |
13 | | operated exclusively for educational
purposes.
|
14 | | (4) a sale or transfer of tangible personal
property as |
15 | | an incident to the
rendering of service for interstate |
16 | | carriers for hire for use as rolling stock
moving in |
17 | | interstate commerce or by lessors under a lease of one year |
18 | | or
longer, executed or in effect at the time of purchase of |
19 | | personal property, to
interstate carriers for hire for use |
20 | | as rolling stock moving in interstate
commerce so long as |
21 | | so used by such interstate carriers for hire, and equipment
|
22 | | operated by a telecommunications provider, licensed as a |
23 | | common carrier by the
Federal Communications Commission, |
24 | | which is permanently installed in or affixed
to aircraft |
25 | | moving in interstate commerce.
|
26 | | (4a) a sale or transfer of tangible personal
property |
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1 | | as an incident
to the rendering of service for owners, |
2 | | lessors, or shippers of tangible
personal property which is |
3 | | utilized by interstate carriers for hire for
use as rolling |
4 | | stock moving in interstate commerce so long as so used by
|
5 | | interstate carriers for hire, and equipment operated by a
|
6 | | telecommunications provider, licensed as a common carrier |
7 | | by the Federal
Communications Commission, which is |
8 | | permanently installed in or affixed to
aircraft moving in |
9 | | interstate commerce.
|
10 | | (4a-5) on and after July 1, 2003 and through June 30, |
11 | | 2004, a sale or transfer of a motor vehicle
of
the
second |
12 | | division with a gross vehicle weight in excess of 8,000 |
13 | | pounds as an
incident to the rendering of service if that |
14 | | motor
vehicle is subject
to the commercial distribution fee |
15 | | imposed under Section 3-815.1 of the
Illinois Vehicle
Code. |
16 | | Beginning on July 1, 2004 and through June 30, 2005, the |
17 | | use in this State of motor vehicles of the second division: |
18 | | (i) with a gross vehicle weight rating in excess of 8,000 |
19 | | pounds; (ii) that are subject to the commercial |
20 | | distribution fee imposed under Section 3-815.1 of the |
21 | | Illinois Vehicle Code; and (iii) that are primarily used |
22 | | for commercial purposes. Through June 30, 2005, this
|
23 | | exemption applies to repair and replacement parts added |
24 | | after the
initial
purchase of such a motor vehicle if that |
25 | | motor vehicle is used in a manner that
would
qualify for |
26 | | the rolling stock exemption otherwise provided for in this |
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1 | | Act. For purposes of this paragraph, "used for commercial |
2 | | purposes" means the transportation of persons or property |
3 | | in furtherance of any commercial or industrial enterprise |
4 | | whether for-hire or not.
|
5 | | (5) a sale or transfer of machinery and equipment used |
6 | | primarily in the
process of the manufacturing or |
7 | | assembling, either in an existing, an expanded
or a new |
8 | | manufacturing facility, of tangible personal property for |
9 | | wholesale or
retail sale or lease, whether such sale or |
10 | | lease is made directly by the
manufacturer or by some other |
11 | | person, whether the materials used in the process
are owned |
12 | | by the manufacturer or some other person, or whether such |
13 | | sale or
lease is made apart from or as an incident to the |
14 | | seller's engaging in a
service occupation and the |
15 | | applicable tax is a Service Use Tax or Service
Occupation |
16 | | Tax, rather than Use Tax or Retailers' Occupation Tax. The |
17 | | exemption provided by this paragraph (5) does not include |
18 | | machinery and equipment used in (i) the generation of |
19 | | electricity for wholesale or retail sale; (ii) the |
20 | | generation or treatment of natural or artificial gas for |
21 | | wholesale or retail sale that is delivered to customers |
22 | | though pipes, pipelines, or mains; or (iii) the treatment |
23 | | of water for wholesale or retail sale that is delivered to |
24 | | customers though pipes, pipelines, or mains. The |
25 | | provisions of this amendatory Act of the 98th General |
26 | | Assembly are declaratory of existing law as to the meaning |
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1 | | and scope of this exemption.
|
2 | | (5a) the repairing, reconditioning or remodeling, for |
3 | | a
common carrier by rail, of tangible personal property |
4 | | which belongs to such
carrier for hire, and as to which |
5 | | such carrier receives the physical possession
of the |
6 | | repaired, reconditioned or remodeled item of tangible |
7 | | personal property
in Illinois, and which such carrier |
8 | | transports, or shares with another common
carrier in the |
9 | | transportation of such property, out of Illinois on a |
10 | | standard
uniform bill of lading showing the person who |
11 | | repaired, reconditioned or
remodeled the property to a |
12 | | destination outside Illinois, for use outside
Illinois.
|
13 | | (5b) a sale or transfer of tangible personal property |
14 | | which is produced by
the seller thereof on special order in |
15 | | such a way as to have made the
applicable tax the Service |
16 | | Occupation Tax or the Service Use Tax, rather than
the |
17 | | Retailers' Occupation Tax or the Use Tax, for an interstate |
18 | | carrier by rail
which receives the physical possession of |
19 | | such property in Illinois, and which
transports such |
20 | | property, 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 seller of the |
23 | | property as the shipper or consignor of such
property to a |
24 | | destination outside Illinois, for use outside Illinois.
|
25 | | (6) until July 1, 2003, a sale or transfer of |
26 | | distillation machinery
and equipment, sold
as a unit or kit |
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1 | | and assembled or installed by the retailer, which
machinery |
2 | | and equipment is certified by the user to be used only for |
3 | | the
production of ethyl alcohol that will be used for |
4 | | consumption as motor fuel
or as a component of motor fuel |
5 | | for the personal use of such user and not
subject to sale |
6 | | or resale.
|
7 | | (7) at the election of any serviceman not required to |
8 | | be
otherwise registered as a retailer under Section 2a of |
9 | | the Retailers'
Occupation Tax Act, made for each fiscal |
10 | | year sales
of service in which the aggregate annual cost |
11 | | price of tangible
personal property transferred as an |
12 | | incident to the sales of service is
less than 35%, or 75% |
13 | | in the case of servicemen transferring prescription
drugs |
14 | | or servicemen engaged in graphic arts production, of the |
15 | | aggregate
annual total gross receipts from all sales of |
16 | | service. The purchase of
such tangible personal property by |
17 | | the serviceman shall be subject to tax
under the Retailers' |
18 | | Occupation Tax Act and the Use Tax Act.
However, if a
|
19 | | primary serviceman who has made the election described in |
20 | | this paragraph
subcontracts service work to a secondary |
21 | | serviceman who has also made the
election described in this |
22 | | paragraph, the primary serviceman does not
incur a Use Tax |
23 | | liability if the secondary serviceman (i) has paid or will |
24 | | pay
Use
Tax on his or her cost price of any tangible |
25 | | personal property transferred
to the primary serviceman |
26 | | and (ii) certifies that fact in writing to the
primary
|
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| | 09800SB2243ham002 | - 33 - | LRB098 09659 HLH 46616 a |
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1 | | serviceman.
|
2 | | Tangible personal property transferred incident to the |
3 | | completion of a
maintenance agreement is exempt from the tax |
4 | | imposed pursuant to this Act.
|
5 | | Exemption (5) also includes machinery and equipment used in |
6 | | the general
maintenance or repair of such exempt machinery and |
7 | | equipment or for in-house
manufacture of exempt machinery and |
8 | | equipment. The machinery and equipment exemption does not |
9 | | include machinery and equipment used in (i) the generation of |
10 | | electricity for wholesale or retail sale; (ii) the generation |
11 | | or treatment of natural or artificial gas for wholesale or |
12 | | retail sale that is delivered to customers though pipes, |
13 | | pipelines, or mains; or (iii) the treatment of water for |
14 | | wholesale or retail sale that is delivered to customers though |
15 | | pipes, pipelines, or mains. The provisions of this amendatory |
16 | | Act of the 98th General Assembly are declaratory of existing |
17 | | law as to the meaning and scope of this exemption. For the |
18 | | purposes of exemption
(5), each of these terms shall have the |
19 | | following meanings: (1) "manufacturing
process" shall mean the |
20 | | production of any article of tangible personal
property, |
21 | | whether such article is a finished product or an article for |
22 | | use in
the process of manufacturing or assembling a different |
23 | | article of tangible
personal property, by procedures commonly |
24 | | regarded as manufacturing,
processing, fabricating, or |
25 | | refining which changes some existing
material or materials into |
26 | | a material with a different form, use or
name. In relation to a |
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1 | | recognized integrated business composed of a
series of |
2 | | operations which collectively constitute manufacturing, or
|
3 | | individually constitute manufacturing operations, the |
4 | | manufacturing
process shall be deemed to commence with the |
5 | | first operation or stage of
production in the series, and shall |
6 | | not be deemed to end until the
completion of the final product |
7 | | in the last operation or stage of
production in the series; and |
8 | | further, for purposes of exemption (5),
photoprocessing is |
9 | | deemed to be a manufacturing process of tangible
personal |
10 | | property for wholesale or retail sale; (2) "assembling process" |
11 | | shall
mean the production of any article of tangible personal |
12 | | property, whether such
article is a finished product or an |
13 | | article for use in the process of
manufacturing or assembling a |
14 | | different article of tangible personal
property, by the |
15 | | combination of existing materials in a manner commonly
regarded |
16 | | as assembling which results in a material of a different form,
|
17 | | use or name; (3) "machinery" shall mean major mechanical |
18 | | machines or
major components of such machines contributing to a |
19 | | manufacturing or
assembling process; and (4) "equipment" shall |
20 | | include any independent
device or tool separate from any |
21 | | machinery but essential to an
integrated manufacturing or |
22 | | assembly process; including computers
used primarily in a |
23 | | manufacturer's computer
assisted design, computer assisted |
24 | | manufacturing (CAD/CAM) system;
or any subunit or assembly |
25 | | comprising a component of any machinery or
auxiliary, adjunct |
26 | | or attachment parts of machinery, such as tools, dies,
jigs, |
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1 | | fixtures, patterns and molds; or any parts which require |
2 | | periodic
replacement in the course of normal operation; but |
3 | | shall not include hand
tools.
Equipment includes chemicals or |
4 | | chemicals acting as catalysts but only if the
chemicals or |
5 | | chemicals acting as catalysts effect a direct and immediate |
6 | | change
upon a
product being manufactured or assembled for |
7 | | wholesale or retail sale or
lease.
The purchaser of such |
8 | | machinery and equipment who has an active
resale registration |
9 | | number shall furnish such number to the seller at the
time of |
10 | | purchase. The user of such machinery and equipment and tools
|
11 | | without an active resale registration number shall prepare a |
12 | | certificate of
exemption for each transaction stating facts |
13 | | establishing the exemption for
that transaction, which |
14 | | certificate shall be available to the Department
for inspection |
15 | | or audit. The Department shall prescribe the form of the
|
16 | | certificate.
|
17 | | Any informal rulings, opinions or letters issued by the |
18 | | Department in
response to an inquiry or request for any opinion |
19 | | from any person
regarding the coverage and applicability of |
20 | | exemption (5) to specific
devices shall be published, |
21 | | maintained as a public record, and made
available for public |
22 | | inspection and copying. If the informal ruling,
opinion or |
23 | | letter contains trade secrets or other confidential
|
24 | | information, where possible the Department shall delete such |
25 | | information
prior to publication. Whenever such informal |
26 | | rulings, opinions, or
letters contain any policy of general |
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1 | | applicability, the Department
shall formulate and adopt such |
2 | | policy as a rule in accordance with the
provisions of the |
3 | | Illinois Administrative Procedure Act.
|
4 | | On and after July 1, 1987, no entity otherwise eligible |
5 | | under exemption
(3) of this Section shall make tax free |
6 | | purchases unless it has an active
exemption identification |
7 | | number issued by the Department.
|
8 | | The purchase, employment and transfer of such tangible |
9 | | personal
property as newsprint and ink for the primary purpose |
10 | | of conveying news
(with or without other information) is not a |
11 | | purchase, use or sale of
service or of tangible personal |
12 | | property within the meaning of this Act.
|
13 | | "Serviceman" means any person who is engaged in the |
14 | | occupation of
making sales of service.
|
15 | | "Sale at retail" means "sale at retail" as defined in the |
16 | | Retailers'
Occupation Tax Act.
|
17 | | "Supplier" means any person who makes sales of tangible |
18 | | personal
property to servicemen for the purpose of resale as an |
19 | | incident to a
sale of service.
|
20 | | "Serviceman maintaining a place of business in this State", |
21 | | or any
like term, means and includes any serviceman:
|
22 | | 1. having or maintaining within this State, directly or |
23 | | by a
subsidiary, an office, distribution house, sales |
24 | | house, warehouse or
other place of business, or any agent |
25 | | or other representative operating
within this State under |
26 | | the authority of the serviceman or its
subsidiary, |
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1 | | irrespective of whether such place of business or agent or
|
2 | | other representative is located here permanently or |
3 | | temporarily, or
whether such serviceman or subsidiary is |
4 | | licensed to do business in this
State; |
5 | | 1.1. beginning July 1, 2011, having a contract with a |
6 | | person located in this State under which the person, for a |
7 | | commission or other consideration based on the sale of |
8 | | service by the serviceman, directly or indirectly refers |
9 | | potential customers to the serviceman by a link on the |
10 | | person's Internet website. The provisions of this |
11 | | paragraph 1.1 shall apply only if the cumulative gross |
12 | | receipts from sales of service by the serviceman to |
13 | | customers who are referred to the serviceman by all persons |
14 | | in this State under such contracts exceed $10,000 during |
15 | | the preceding 4 quarterly periods ending on the last day of |
16 | | March, June, September, and December; |
17 | | 1.2. beginning July 1, 2011, having a contract with a |
18 | | person located in this State under which: |
19 | | A. the serviceman sells the same or substantially |
20 | | similar line of services as the person located in this |
21 | | State and does so using an identical or substantially |
22 | | similar name, trade name, or trademark as the person |
23 | | located in this State; and |
24 | | B. the serviceman provides a commission or other |
25 | | consideration to the person located in this State based |
26 | | upon the sale of services by the serviceman. |
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1 | | The provisions of this paragraph 1.2 shall apply only if |
2 | | the cumulative gross receipts from sales of service by the |
3 | | serviceman to customers in this State under all such |
4 | | contracts exceed $10,000 during the preceding 4 quarterly |
5 | | periods ending on the last day of March, June, September, |
6 | | and December;
|
7 | | 2. soliciting orders for tangible personal property by |
8 | | means of a
telecommunication or television shopping system |
9 | | (which utilizes toll free
numbers) which is intended by the |
10 | | retailer to be broadcast by cable
television or other means |
11 | | of broadcasting, to consumers located in this State;
|
12 | | 3. pursuant to a contract with a broadcaster or |
13 | | publisher located in this
State, soliciting orders for |
14 | | tangible personal property by means of advertising
which is |
15 | | disseminated primarily to consumers located in this State |
16 | | and only
secondarily to bordering jurisdictions;
|
17 | | 4. soliciting orders for tangible personal property by |
18 | | mail if the
solicitations are substantial and recurring and |
19 | | if the retailer benefits
from any banking, financing, debt |
20 | | collection, telecommunication, or
marketing activities |
21 | | occurring in this State or benefits from the location
in |
22 | | this State of authorized installation, servicing, or |
23 | | repair facilities;
|
24 | | 5. being owned or controlled by the same interests |
25 | | which own or
control any retailer engaging in business in |
26 | | the same or similar line of
business in this State;
|
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1 | | 6. having a franchisee or licensee operating under its |
2 | | trade name if
the franchisee or licensee is required to |
3 | | collect the tax under this Section;
|
4 | | 7. pursuant to a contract with a cable television |
5 | | operator located in
this State, soliciting orders for |
6 | | tangible personal property by means of
advertising which is |
7 | | transmitted or distributed over a cable television
system |
8 | | in this State; or
|
9 | | 8. engaging in activities in Illinois, which |
10 | | activities in the
state in which the supply business |
11 | | engaging in such activities is located
would constitute |
12 | | maintaining a place of business in that state.
|
13 | | (Source: P.A. 96-1544, eff. 3-10-11.)
|
14 | | (35 ILCS 110/3) (from Ch. 120, par. 439.33)
|
15 | | Sec. 3. Tax imposed. A tax is imposed upon the privilege of |
16 | | using in this
State
real or tangible personal property acquired |
17 | | as an incident to the
purchase of a service from a serviceman,
|
18 | | including computer software, and including photographs, |
19 | | negatives,
and positives that are the
product of |
20 | | photoprocessing, but not including products of photoprocessing
|
21 | | produced for use in motion pictures for public commercial |
22 | | exhibition.
Beginning January 1, 2001, prepaid telephone |
23 | | calling arrangements shall be
considered tangible personal |
24 | | property subject to the tax imposed under this Act
regardless |
25 | | of the form in which those arrangements may be embodied,
|
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1 | | transmitted, or fixed by any method now known or hereafter |
2 | | developed. Purchases of (1) electricity delivered to customers |
3 | | by wire; (2) natural or artificial gas that is delivered to |
4 | | customers though pipes, pipelines, or mains; and (3) water that |
5 | | is delivered to customers though pipes, pipelines, or mains are |
6 | | not subject to tax under this Act. The provisions of this |
7 | | amendatory Act of the 98th General Assembly are declaratory of |
8 | | existing law as to the meaning and scope of this Act.
|
9 | | (Source: P.A. 91-51, eff. 6-30-99; 91-870, eff. 6-22-00.)
|
10 | | (35 ILCS 110/3-25) (from Ch. 120, par. 439.33-25)
|
11 | | Sec. 3-25. Computer software. For the purposes of this Act, |
12 | | "computer
software" means a set of statements, data,
or |
13 | | instructions to be used directly or indirectly in a computer in |
14 | | order to
bring about a certain result in any form in which |
15 | | those statements, data, or
instructions may be embodied, |
16 | | transmitted, or fixed, by any method now known
or hereafter |
17 | | developed, regardless of whether the statements, data, or
|
18 | | instructions are capable of being perceived by or communicated |
19 | | to humans,
and includes prewritten or canned software that is |
20 | | held for repeated sale
or lease, and all associated |
21 | | documentation and materials, if any, whether
contained on |
22 | | magnetic tapes, discs, cards, or other devices or media, but
|
23 | | does not include software that is adapted to specific |
24 | | individualized
requirements of a purchaser, custom-made and |
25 | | modified software designed for
a particular or limited use by a |
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1 | | purchaser, or software used to operate
exempt machinery and |
2 | | equipment used in the process of manufacturing or
assembling |
3 | | tangible personal property for wholesale or retail sale or
|
4 | | lease. Software used to operate machinery and equipment used in |
5 | | (i) the generation of electricity for wholesale or retail sale; |
6 | | (ii) the generation or treatment of natural or artificial gas |
7 | | for wholesale or retail sale that is delivered to customers |
8 | | though pipes, pipelines, or mains; or (iii) the treatment of |
9 | | water for wholesale or retail sale that is delivered to |
10 | | customers though pipes, pipelines, or mains is considered |
11 | | "computer software". The provisions of this amendatory Act of |
12 | | the 98th General Assembly are declaratory of existing law as to |
13 | | the meaning and scope of this exemption.
|
14 | | For the purposes of this Act, computer software shall be |
15 | | considered to be
tangible personal property.
|
16 | | (Source: P.A. 91-51, eff. 6-30-99.)
|
17 | | Section 15. The Service Occupation Tax Act is amended by |
18 | | changing Sections 2, 3, and 3-25 as follows:
|
19 | | (35 ILCS 115/2) (from Ch. 120, par. 439.102)
|
20 | | Sec. 2. "Transfer" means any transfer of the title to |
21 | | property or of
the ownership of property whether or not the |
22 | | transferor retains title as
security for the payment of amounts |
23 | | due him from the transferee.
|
24 | | "Cost Price" means the consideration paid by the serviceman |
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1 | | for a
purchase valued in money, whether paid in money or |
2 | | otherwise, including
cash, credits and services, and shall be |
3 | | determined without any deduction
on account of the supplier's |
4 | | cost of the property sold or on account of any
other expense |
5 | | incurred by the supplier. When a serviceman contracts out
part |
6 | | or all of the services required in his sale of service, it |
7 | | shall be
presumed that the cost price to the serviceman of the |
8 | | property
transferred to him by his or her subcontractor is |
9 | | equal to 50% of the
subcontractor's charges to the serviceman |
10 | | in the absence of proof of the
consideration paid by the |
11 | | subcontractor for the purchase of such
property.
|
12 | | "Department" means the Department of Revenue.
|
13 | | "Person" means any natural individual, firm, partnership, |
14 | | association, joint
stock company, joint venture, public or |
15 | | private corporation, limited liability
company, and any |
16 | | receiver, executor, trustee, guardian or other representative
|
17 | | appointed by order of any court.
|
18 | | "Sale of Service" means any transaction except:
|
19 | | (a) A retail sale of tangible personal property taxable |
20 | | under the Retailers'
Occupation Tax Act or under the Use Tax |
21 | | Act.
|
22 | | (b) A sale of tangible personal property for the purpose of |
23 | | resale made in
compliance with Section 2c of the Retailers' |
24 | | Occupation Tax Act.
|
25 | | (c) Except as hereinafter provided, a sale or transfer of |
26 | | tangible personal
property as an incident to the rendering of |
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1 | | service for or by any governmental
body or for or by any |
2 | | corporation, society, association, foundation or
institution |
3 | | organized and operated exclusively for charitable, religious |
4 | | or
educational purposes or any not-for-profit corporation, |
5 | | society, association,
foundation, institution or organization |
6 | | which has no compensated officers or
employees and which is |
7 | | organized and operated primarily for the recreation of
persons |
8 | | 55 years of age or older. A limited liability company may |
9 | | qualify for
the exemption under this paragraph only if the |
10 | | limited liability company is
organized and operated |
11 | | exclusively for educational purposes.
|
12 | | (d) A sale or transfer of tangible personal
property
as an |
13 | | incident to the
rendering of service for interstate carriers |
14 | | for hire for use as rolling stock
moving in interstate commerce |
15 | | or lessors under leases of one year or longer,
executed or in |
16 | | effect at the time of purchase, to interstate carriers for hire
|
17 | | for use as rolling stock moving in interstate commerce, and |
18 | | equipment operated
by a telecommunications provider, licensed |
19 | | as a common
carrier by the Federal Communications Commission, |
20 | | which is permanently
installed in or affixed to aircraft moving |
21 | | in interstate commerce.
|
22 | | (d-1) A sale or transfer of tangible personal
property as |
23 | | an incident to
the rendering of service for owners, lessors or |
24 | | shippers of tangible personal
property which is utilized by |
25 | | interstate carriers for hire for use as rolling
stock moving in |
26 | | interstate commerce, and equipment operated
by a |
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1 | | telecommunications provider, licensed as a common carrier by |
2 | | the
Federal Communications Commission, which is permanently |
3 | | installed in or
affixed to aircraft moving in interstate |
4 | | commerce.
|
5 | | (d-1.1) On and after July 1, 2003 and through June 30, |
6 | | 2004, a sale or transfer of a motor vehicle
of the
second |
7 | | division with a gross vehicle weight in excess of 8,000 pounds |
8 | | as an
incident to the rendering of service if that motor
|
9 | | vehicle is subject
to the commercial distribution fee imposed |
10 | | under Section 3-815.1 of the
Illinois Vehicle
Code. Beginning |
11 | | on July 1, 2004 and through June 30, 2005, the use in this |
12 | | State of motor vehicles of the second division: (i) with a |
13 | | gross vehicle weight rating in excess of 8,000 pounds; (ii) |
14 | | that are subject to the commercial distribution fee imposed |
15 | | under Section 3-815.1 of the Illinois Vehicle Code; and (iii) |
16 | | that are primarily used for commercial purposes. Through June |
17 | | 30, 2005, this exemption applies to repair and replacement |
18 | | parts added after the
initial
purchase of such a motor vehicle |
19 | | if that motor vehicle is used in a manner that
would
qualify |
20 | | for the rolling stock exemption otherwise provided for in this |
21 | | Act. For purposes of this paragraph, "used for commercial |
22 | | purposes" means the transportation of persons or property in |
23 | | furtherance of any commercial or industrial enterprise whether |
24 | | for-hire or not.
|
25 | | (d-2) The repairing, reconditioning or remodeling, for a |
26 | | common carrier by
rail, of tangible personal property which |
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1 | | belongs to such carrier for hire, and
as to which such carrier |
2 | | receives the physical possession of the repaired,
|
3 | | reconditioned or remodeled item of tangible personal property |
4 | | in Illinois, and
which such carrier transports, or shares with |
5 | | another common carrier in the
transportation of such property, |
6 | | out of Illinois on a standard uniform bill of
lading showing |
7 | | the person who repaired, reconditioned or remodeled the |
8 | | property
as the shipper or consignor of such property to a |
9 | | destination outside Illinois,
for use outside Illinois.
|
10 | | (d-3) A sale or transfer of tangible personal property |
11 | | which
is produced by the seller thereof on special order in |
12 | | such a way as to have
made the applicable tax the Service |
13 | | Occupation Tax or the Service Use Tax,
rather than the |
14 | | Retailers' Occupation Tax or the Use Tax, for an interstate
|
15 | | carrier by rail which receives the physical possession of such |
16 | | property in
Illinois, and which transports such property, or |
17 | | shares with another common
carrier in the transportation of |
18 | | such property, out of Illinois on a standard
uniform bill of |
19 | | lading showing the seller of the property as the shipper or
|
20 | | consignor of such property to a destination outside Illinois, |
21 | | for use outside
Illinois.
|
22 | | (d-4) Until January 1, 1997, a sale, by a registered |
23 | | serviceman paying tax
under this Act to the Department, of |
24 | | special order printed materials delivered
outside Illinois and |
25 | | which are not returned to this State, if delivery is made
by |
26 | | the seller or agent of the seller, including an agent who |
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1 | | causes the product
to be delivered outside Illinois by a common |
2 | | carrier or the U.S.
postal service.
|
3 | | (e) A sale or transfer of machinery and equipment used |
4 | | primarily in
the process of the manufacturing or assembling, |
5 | | either in an existing, an
expanded or a new manufacturing |
6 | | facility, of tangible personal property for
wholesale or retail |
7 | | sale or lease, whether such sale or lease is made directly
by |
8 | | the manufacturer or by some other person, whether the materials |
9 | | used in the
process are owned by the manufacturer or some other |
10 | | person, or whether such
sale or lease is made apart from or as |
11 | | an incident to the seller's engaging in
a service occupation |
12 | | and the applicable tax is a Service Occupation Tax or
Service |
13 | | Use Tax, rather than Retailers' Occupation Tax or Use Tax. The |
14 | | exemption provided by this paragraph (e) does not include |
15 | | machinery and equipment used in (i) the generation of |
16 | | electricity for wholesale or retail sale; (ii) the generation |
17 | | or treatment of natural or artificial gas for wholesale or |
18 | | retail sale that is delivered to customers though pipes, |
19 | | pipelines, or mains; or (iii) the treatment of water for |
20 | | wholesale or retail sale that is delivered to customers though |
21 | | pipes, pipelines, or mains. The provisions of this amendatory |
22 | | Act of the 98th General Assembly are declaratory of existing |
23 | | law as to the meaning and scope of this exemption.
|
24 | | (f) Until July 1, 2003, the sale or transfer of |
25 | | distillation
machinery
and equipment, sold as a
unit or kit and |
26 | | assembled or installed by the retailer, which machinery
and |
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1 | | equipment is 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 such user and not subject
to sale or resale.
|
5 | | (g) At the election of any serviceman not required to be |
6 | | otherwise
registered as a retailer under Section 2a of the |
7 | | Retailers' Occupation Tax Act,
made for each fiscal year sales |
8 | | of service in which the aggregate annual cost
price of tangible |
9 | | personal property transferred as an incident to the sales of
|
10 | | service is less than 35% (75% in the case of servicemen |
11 | | transferring
prescription drugs or servicemen engaged in |
12 | | graphic arts production) of the
aggregate annual total gross |
13 | | receipts from all sales of service. The purchase
of such |
14 | | tangible personal property by the serviceman shall be subject |
15 | | to tax
under the Retailers' Occupation Tax Act and the Use Tax |
16 | | Act.
However, if a
primary serviceman who has made the election |
17 | | described in this paragraph
subcontracts service work to a |
18 | | secondary serviceman who has also made the
election described |
19 | | in this paragraph, the primary serviceman does not
incur a Use |
20 | | Tax liability if the secondary serviceman (i) has paid or will |
21 | | pay
Use
Tax on his or her cost price of any tangible personal |
22 | | property transferred
to the primary serviceman and (ii) |
23 | | certifies that fact in writing to the
primary serviceman.
|
24 | | Tangible personal property transferred incident to the |
25 | | completion of a
maintenance agreement is exempt from the tax |
26 | | imposed pursuant to this Act.
|
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1 | | Exemption (e) also includes machinery and equipment used in |
2 | | the
general maintenance or repair of such exempt machinery and |
3 | | equipment or for
in-house manufacture of exempt machinery and |
4 | | equipment.
The machinery and equipment exemption does not |
5 | | include machinery and equipment used in (i) the generation of |
6 | | electricity for wholesale or retail sale; (ii) the generation |
7 | | or treatment of natural or artificial gas for wholesale or |
8 | | retail sale that is delivered to customers though pipes, |
9 | | pipelines, or mains; or (iii) the treatment of water for |
10 | | wholesale or retail sale that is delivered to customers though |
11 | | pipes, pipelines, or mains. The provisions of this amendatory |
12 | | Act of the 98th General Assembly are declaratory of existing |
13 | | law as to the meaning and scope of this exemption. For the |
14 | | purposes of exemption (e), each of these terms shall have the |
15 | | following
meanings: (1) "manufacturing process" shall mean the |
16 | | production of any
article of tangible personal property, |
17 | | whether such article is a
finished product or an article for |
18 | | use in the process of manufacturing
or assembling a different |
19 | | article of tangible personal property, by
procedures commonly |
20 | | regarded as manufacturing, processing, fabricating,
or |
21 | | refining which changes some existing material or materials into |
22 | | a
material with a different form, use or name. In relation to a
|
23 | | recognized integrated business composed of a series of |
24 | | operations which
collectively constitute manufacturing, or |
25 | | individually constitute
manufacturing operations, the |
26 | | manufacturing process shall be deemed to
commence with the |
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1 | | first operation or stage of production in the series,
and shall |
2 | | not be deemed to end until the completion of the final product
|
3 | | in the last operation or stage of production in the series; and |
4 | | further for
purposes of exemption (e), photoprocessing is |
5 | | deemed to be a manufacturing
process of tangible personal |
6 | | property for wholesale or retail sale;
(2) "assembling process" |
7 | | shall mean the production of any article of
tangible personal |
8 | | property, whether such article is a finished product
or an |
9 | | article for use in the process of manufacturing or assembling a
|
10 | | different article of tangible personal property, by the |
11 | | combination of
existing materials in a manner commonly regarded |
12 | | as assembling which
results in a material of a different form, |
13 | | use or name; (3) "machinery"
shall mean major mechanical |
14 | | machines or major components of such machines
contributing to a |
15 | | manufacturing or assembling process; and (4) "equipment"
shall |
16 | | include any independent device or tool separate from any |
17 | | machinery but
essential to an integrated manufacturing or |
18 | | assembly process; including
computers used primarily in a |
19 | | manufacturer's computer
assisted design, computer assisted |
20 | | manufacturing (CAD/CAM) system; or any
subunit or assembly |
21 | | comprising a component of any machinery or auxiliary,
adjunct |
22 | | or attachment parts of machinery, such as tools, dies, jigs, |
23 | | fixtures,
patterns and molds; or any parts which require |
24 | | periodic replacement in the
course of normal operation; but |
25 | | shall not include hand tools. Equipment
includes chemicals or |
26 | | chemicals acting as catalysts but only if the chemicals
or |
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1 | | chemicals acting as catalysts effect a direct and immediate |
2 | | change upon a
product being manufactured or assembled for |
3 | | wholesale or retail sale or lease.
The purchaser of such |
4 | | machinery and equipment
who has an active resale registration |
5 | | number shall furnish such number to
the seller at the time of |
6 | | purchase. The purchaser of such machinery and
equipment and |
7 | | tools without an active resale registration number shall |
8 | | furnish
to the seller a certificate of exemption for each |
9 | | transaction stating facts
establishing the exemption for that |
10 | | transaction, which certificate shall
be available to the |
11 | | Department for inspection or audit.
|
12 | | Except as provided in Section 2d of this Act, the rolling |
13 | | stock exemption
applies to rolling
stock
used by an interstate
|
14 | | carrier for hire, even just between points in Illinois, if such |
15 | | rolling
stock transports, for hire, persons whose journeys or |
16 | | property whose
shipments originate or terminate outside |
17 | | Illinois.
|
18 | | Any informal rulings, opinions or letters issued by the |
19 | | Department in
response to an inquiry or request for any opinion |
20 | | from any person
regarding the coverage and applicability of |
21 | | exemption (e) to specific
devices shall be published, |
22 | | maintained as a public record, and made
available for public |
23 | | inspection and copying. If the informal ruling,
opinion or |
24 | | letter contains trade secrets or other confidential
|
25 | | information, where possible the Department shall delete such |
26 | | information
prior to publication. Whenever such informal |
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1 | | rulings, opinions, or
letters contain any policy of general |
2 | | applicability, the Department
shall formulate and adopt such |
3 | | policy as a rule in accordance with the
provisions of the |
4 | | Illinois Administrative Procedure Act.
|
5 | | On and after July 1, 1987, no entity otherwise eligible |
6 | | under exemption
(c) of this Section shall make tax free |
7 | | purchases unless it has an active
exemption identification |
8 | | number issued by the Department.
|
9 | | "Serviceman" means any person who is engaged in the |
10 | | occupation of
making sales of service.
|
11 | | "Sale at Retail" means "sale at retail" as defined in the |
12 | | Retailers'
Occupation Tax Act.
|
13 | | "Supplier" means any person who makes sales of tangible |
14 | | personal
property to servicemen for the purpose of resale as an |
15 | | incident to a
sale of service.
|
16 | | (Source: P.A. 92-484, eff. 8-23-01; 93-23, eff. 6-20-03; 93-24, |
17 | | eff. 6-20-03; 93-1033, eff. 9-3-04.)
|
18 | | (35 ILCS 115/3) (from Ch. 120, par. 439.103)
|
19 | | Sec. 3. Tax imposed. A tax is imposed upon all
persons |
20 | | engaged in the business of
making sales of service (referred to |
21 | | as
"servicemen") on all tangible personal property
transferred |
22 | | as an incident of a sale of service,
including computer |
23 | | software, and including photographs, negatives,
and positives |
24 | | that are the
product of photoprocessing, but not including |
25 | | products of photoprocessing
produced for use in motion pictures |
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1 | | for public commercial exhibition.
Beginning January 1, 2001, |
2 | | prepaid telephone calling arrangements shall be
considered |
3 | | tangible personal property subject to the tax imposed under |
4 | | this Act
regardless of the form in which those arrangements may |
5 | | be embodied,
transmitted, or fixed by any method now known or |
6 | | hereafter developed. Sales of (1) electricity delivered to |
7 | | customers by wire; (2) natural or artificial gas that is |
8 | | delivered to customers though pipes, pipelines, or mains; and |
9 | | (3) water that is delivered to customers though pipes, |
10 | | pipelines, or mains are not subject to tax under this Act. The |
11 | | provisions of this amendatory Act of the 98th General Assembly |
12 | | are declaratory of existing law as to the meaning and scope of |
13 | | this Act.
|
14 | | (Source: P.A. 91-51, eff. 6-30-99; 91-870, eff. 6-22-00.)
|
15 | | (35 ILCS 115/3-25) (from Ch. 120, par. 439.103-25)
|
16 | | Sec. 3-25. Computer software. For the purposes of this Act, |
17 | | "computer
software" means a set of statements, data,
or |
18 | | instructions to be used directly or indirectly in a computer in |
19 | | order to
bring about a certain result in any form in which |
20 | | those statements, data, or
instructions may be embodied, |
21 | | transmitted, or fixed, by any method now known
or hereafter |
22 | | developed, regardless of whether the statements, data, or
|
23 | | instructions are capable of being perceived by or communicated |
24 | | to humans,
and includes prewritten or canned software that is |
25 | | held for repeated sale
or lease, and all associated |
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1 | | documentation and materials, if any, whether
contained on |
2 | | magnetic tapes, discs, cards, or other devices or media, but
|
3 | | does not include software that is adapted to specific |
4 | | individualized
requirements of a purchaser, custom-made and |
5 | | modified software designed for
a particular or limited use by a |
6 | | purchaser, or software used to operate
exempt machinery and |
7 | | equipment used in the process of manufacturing or
assembling |
8 | | tangible personal property for wholesale or retail sale or
|
9 | | lease. Software used to operate machinery and equipment used in |
10 | | (i) the generation of electricity for wholesale or retail sale; |
11 | | (ii) the generation or treatment of natural or artificial gas |
12 | | for wholesale or retail sale that is delivered to customers |
13 | | though pipes, pipelines, or mains; or (iii) the treatment of |
14 | | water for wholesale or retail sale that is delivered to |
15 | | customers though pipes, pipelines, or mains is considered |
16 | | "computer software". The provisions of this amendatory Act of |
17 | | the 98th General Assembly are declaratory of existing law as to |
18 | | the meaning and scope of this exemption.
|
19 | | For the purposes of this Act, computer software shall be |
20 | | considered to be
tangible personal property.
|
21 | | (Source: P.A. 91-51, eff. 6-30-99.)
|
22 | | Section 20. The Retailers' Occupation Tax Act is amended by |
23 | | changing Sections 1d, 2, 2-5, 2-25, 2-45, and 2a as follows:
|
24 | | (35 ILCS 120/1d) (from Ch. 120, par. 440d)
|
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1 | | Sec. 1d. Subject to the provisions of Section 1f, all |
2 | | tangible personal
property to be used or consumed within an |
3 | | enterprise zone established
pursuant to the "Illinois |
4 | | Enterprise Zone Act", as amended, or subject to
the provisions |
5 | | of Section 5.5 of the Illinois Enterprise Zone Act, all
|
6 | | tangible personal property to be used or consumed by any High |
7 | | Impact Business,
in the process of the manufacturing or |
8 | | assembly of tangible personal property
for wholesale or retail |
9 | | sale or lease or in the process of graphic arts
production if |
10 | | used or consumed at a facility which is a Department of
|
11 | | Commerce and Economic Opportunity certified business and |
12 | | located in a county
of more than 4,000 persons and less than |
13 | | 45,000 persons is exempt from
the tax imposed by
this Act. This |
14 | | exemption includes repair and replacement parts for
machinery |
15 | | and equipment used primarily in the process of manufacturing or
|
16 | | assembling tangible personal property or in the process of |
17 | | graphic arts
production if used or consumed at a facility which |
18 | | is a Department of
Commerce and Economic Opportunity certified |
19 | | business and located in a county
of more than 4,000 persons and |
20 | | less than 45,000 persons for wholesale or retail sale, or
|
21 | | lease, and equipment, manufacturing or graphic arts fuels, |
22 | | material and
supplies for the
maintenance, repair or operation |
23 | | of such manufacturing or assembling
or graphic arts machinery |
24 | | or equipment. The exemption provided in this Section for |
25 | | tangible personal property to be used or consumed in the |
26 | | process of manufacturing or assembly of tangible personal |
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1 | | property for wholesale or retail sale or lease, and the repair |
2 | | and replacement parts for that machinery and equipment, does |
3 | | not apply to such property used or consumed in (i) the |
4 | | generation of electricity for wholesale or retail sale; (ii) |
5 | | the generation or treatment of natural or artificial gas for |
6 | | wholesale or retail sale that is delivered to customers though |
7 | | pipes, pipelines, or mains; or (iii) the treatment of water for |
8 | | wholesale or retail sale that is delivered to customers though |
9 | | pipes, pipelines, or mains. The provisions of this amendatory |
10 | | Act of the 98th General Assembly are declaratory of existing |
11 | | law as to the meaning and scope of this exemption.
|
12 | | (Source: P.A. 94-793, eff. 5-19-06.)
|
13 | | (35 ILCS 120/2) (from Ch. 120, par. 441)
|
14 | | Sec. 2. Tax imposed. A tax is imposed upon persons engaged |
15 | | in the
business of selling at retail tangible personal |
16 | | property, including
computer software, and including |
17 | | photographs, negatives, and positives that
are the product of |
18 | | photoprocessing, but not including products of
photoprocessing |
19 | | produced for use in motion pictures for public commercial
|
20 | | exhibition.
Beginning January 1, 2001, prepaid telephone |
21 | | calling arrangements shall be
considered tangible personal |
22 | | property subject to the tax imposed under this Act
regardless |
23 | | of the form in which those arrangements may be embodied,
|
24 | | transmitted, or fixed by any method now known or hereafter |
25 | | developed. Sales of (1) electricity delivered to customers by |
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1 | | wire; (2) natural or artificial gas that is delivered to |
2 | | customers though pipes, pipelines, or mains; and (3) water that |
3 | | is delivered to customers though pipes, pipelines, or mains are |
4 | | not subject to tax under this Act. The provisions of this |
5 | | amendatory Act of the 98th General Assembly are declaratory of |
6 | | existing law as to the meaning and scope of this Act.
|
7 | | (Source: P.A. 91-51, eff. 6-30-99; 91-870, eff. 6-22-00.)
|
8 | | (35 ILCS 120/2-5)
|
9 | | Sec. 2-5. Exemptions. Gross receipts from proceeds from the |
10 | | sale of
the following tangible personal property are exempt |
11 | | from the tax imposed
by this Act:
|
12 | | (1) Farm chemicals.
|
13 | | (2) Farm machinery and equipment, both new and used, |
14 | | including that
manufactured on special order, certified by the |
15 | | purchaser to be used
primarily for production agriculture or |
16 | | State or federal agricultural
programs, including individual |
17 | | replacement parts for the machinery and
equipment, including |
18 | | machinery and equipment purchased for lease,
and including |
19 | | implements of husbandry defined in Section 1-130 of
the |
20 | | Illinois Vehicle Code, farm machinery and agricultural |
21 | | chemical and
fertilizer spreaders, and nurse wagons required to |
22 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
|
23 | | but
excluding other motor vehicles required to be registered |
24 | | under the Illinois
Vehicle Code.
Horticultural polyhouses or |
25 | | hoop houses used for propagating, growing, or
overwintering |
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1 | | plants shall be considered farm machinery and equipment under
|
2 | | this item (2).
Agricultural chemical tender tanks and dry boxes |
3 | | shall include units sold
separately from a motor vehicle |
4 | | required to be licensed and units sold mounted
on a motor |
5 | | vehicle required to be licensed, if the selling price of the |
6 | | tender
is separately stated.
|
7 | | Farm machinery and equipment shall include precision |
8 | | farming equipment
that is
installed or purchased to be |
9 | | installed on farm machinery and equipment
including, but not |
10 | | limited to, tractors, harvesters, sprayers, planters,
seeders, |
11 | | or spreaders.
Precision farming equipment includes, but is not |
12 | | limited to,
soil testing sensors, computers, monitors, |
13 | | software, global positioning
and mapping systems, and other |
14 | | such equipment.
|
15 | | Farm machinery and equipment also includes computers, |
16 | | sensors, software, and
related equipment used primarily in the
|
17 | | computer-assisted operation of production agriculture |
18 | | facilities, equipment,
and activities such as, but
not limited |
19 | | to,
the collection, monitoring, and correlation of
animal and |
20 | | crop data for the purpose of
formulating animal diets and |
21 | | agricultural chemicals. This item (2) is exempt
from the |
22 | | provisions of
Section 2-70.
|
23 | | (3) Until July 1, 2003, distillation machinery and |
24 | | equipment, sold as a
unit or kit,
assembled or installed by the |
25 | | retailer, certified by the user to be used
only for the |
26 | | production of ethyl alcohol that will be used for consumption
|
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1 | | as motor fuel or as a component of motor fuel for the personal |
2 | | use of the
user, and not subject to sale or resale.
|
3 | | (4) Until July 1, 2003 and beginning again September 1, |
4 | | 2004 through August 30, 2014, graphic arts machinery and |
5 | | equipment, including
repair and
replacement parts, both new and |
6 | | used, and including that manufactured on
special order or |
7 | | purchased for lease, certified by the purchaser to be used
|
8 | | primarily for graphic arts production.
Equipment includes |
9 | | chemicals or
chemicals acting as catalysts but only if
the |
10 | | chemicals or chemicals acting as catalysts effect a direct and |
11 | | immediate
change upon a
graphic arts product.
|
12 | | (5) A motor vehicle of the first division, a motor vehicle |
13 | | of the second division that is a self contained motor vehicle |
14 | | designed or permanently converted to provide living quarters |
15 | | for recreational, camping, or travel use, with direct walk |
16 | | through access to the living quarters from the driver's seat, |
17 | | or a motor vehicle of the second division that is of the van |
18 | | configuration designed for the transportation of not less than |
19 | | 7 nor more than 16 passengers, as defined in Section 1-146 of |
20 | | the Illinois Vehicle Code, that is used for automobile renting, |
21 | | as defined in the Automobile Renting Occupation and Use Tax |
22 | | Act. This paragraph is exempt from
the provisions of Section |
23 | | 2-70.
|
24 | | (6) Personal property sold by a teacher-sponsored student |
25 | | organization
affiliated with an elementary or secondary school |
26 | | located in Illinois.
|
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1 | | (7) Until July 1, 2003, proceeds of that portion of the |
2 | | selling price of
a passenger car the
sale of which is subject |
3 | | to the Replacement Vehicle Tax.
|
4 | | (8) Personal property sold to an Illinois county fair |
5 | | association for
use in conducting, operating, or promoting the |
6 | | county fair.
|
7 | | (9) Personal property sold to a not-for-profit arts
or |
8 | | cultural organization that establishes, by proof required by |
9 | | the Department
by
rule, that it has received an exemption under |
10 | | Section 501(c)(3) of the
Internal Revenue Code and that is |
11 | | organized and operated primarily for the
presentation
or |
12 | | support of arts or cultural programming, activities, or |
13 | | services. These
organizations include, but are not limited to, |
14 | | music and dramatic arts
organizations such as symphony |
15 | | orchestras and theatrical groups, arts and
cultural service |
16 | | organizations, local arts councils, visual arts organizations,
|
17 | | and media arts organizations.
On and after the effective date |
18 | | of this amendatory Act of the 92nd General
Assembly, however, |
19 | | an entity otherwise eligible for this exemption shall not
make |
20 | | tax-free purchases unless it has an active identification |
21 | | number issued by
the Department.
|
22 | | (10) Personal property sold by a corporation, society, |
23 | | association,
foundation, institution, or organization, other |
24 | | than a limited liability
company, that is organized and |
25 | | operated as a not-for-profit service enterprise
for the benefit |
26 | | of persons 65 years of age or older if the personal property
|
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1 | | was not purchased by the enterprise for the purpose of resale |
2 | | by the
enterprise.
|
3 | | (11) Personal property sold to a governmental body, to a |
4 | | corporation,
society, association, foundation, or institution |
5 | | organized and operated
exclusively for charitable, religious, |
6 | | or educational purposes, or to a
not-for-profit corporation, |
7 | | society, association, foundation, institution,
or organization |
8 | | that has no compensated officers or employees and that is
|
9 | | organized and operated primarily for the recreation of persons |
10 | | 55 years of
age or older. A limited liability company may |
11 | | qualify for the exemption under
this paragraph only if the |
12 | | limited liability company is organized and operated
|
13 | | exclusively for educational purposes. On and after July 1, |
14 | | 1987, however, no
entity otherwise eligible for this exemption |
15 | | shall make tax-free purchases
unless it has an active |
16 | | identification number issued by the Department.
|
17 | | (12) Tangible personal property sold to
interstate |
18 | | carriers
for hire for use as
rolling stock moving in interstate |
19 | | commerce or to lessors under leases of
one year or longer |
20 | | executed or in effect at the time of purchase by
interstate |
21 | | carriers for hire for use as rolling stock moving in interstate
|
22 | | commerce and equipment operated by a telecommunications |
23 | | provider, licensed as a
common carrier by the Federal |
24 | | Communications Commission, which is permanently
installed in |
25 | | or affixed to aircraft moving in interstate commerce.
|
26 | | (12-5) On and after July 1, 2003 and through June 30, 2004, |
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1 | | motor vehicles of the second division
with a gross vehicle |
2 | | weight in excess of 8,000 pounds
that
are
subject to the |
3 | | commercial distribution fee imposed under Section 3-815.1 of
|
4 | | the Illinois
Vehicle Code. Beginning on July 1, 2004 and |
5 | | through June 30, 2005, the use in this State of motor vehicles |
6 | | of the second division: (i) with a gross vehicle weight rating |
7 | | in excess of 8,000 pounds; (ii) that are subject to the |
8 | | commercial distribution fee imposed under Section 3-815.1 of |
9 | | the Illinois Vehicle Code; and (iii) that are primarily used |
10 | | for commercial purposes. Through June 30, 2005, this
exemption |
11 | | applies to repair and replacement parts added
after the
initial |
12 | | purchase of such a motor vehicle if that motor vehicle is used |
13 | | in a
manner that
would qualify for the rolling stock exemption |
14 | | otherwise provided for in this
Act. For purposes of this |
15 | | paragraph, "used for commercial purposes" means the |
16 | | transportation of persons or property in furtherance of any |
17 | | commercial or industrial enterprise whether for-hire or not.
|
18 | | (13) Proceeds from sales to owners, lessors, or
shippers of
|
19 | | tangible personal property that is utilized by interstate |
20 | | carriers for
hire for use as rolling stock moving in interstate |
21 | | commerce
and equipment operated by a telecommunications |
22 | | provider, licensed as a
common carrier by the Federal |
23 | | Communications Commission, which is
permanently installed in |
24 | | or affixed to aircraft moving in interstate commerce.
|
25 | | (14) Machinery and equipment that will be used by the |
26 | | purchaser, or a
lessee of the purchaser, primarily in the |
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1 | | process of manufacturing or
assembling tangible personal |
2 | | property for wholesale or retail sale or
lease, whether the |
3 | | sale or lease is made directly by the manufacturer or by
some |
4 | | other person, whether the materials used in the process are |
5 | | owned by
the manufacturer or some other person, or whether the |
6 | | sale or lease is made
apart from or as an incident to the |
7 | | seller's engaging in the service
occupation of producing |
8 | | machines, tools, dies, jigs, patterns, gauges, or
other similar |
9 | | items of no commercial value on special order for a particular
|
10 | | purchaser. The exemption provided by this paragraph (14) does |
11 | | not include machinery and equipment used in (i) the generation |
12 | | of electricity for wholesale or retail sale; (ii) the |
13 | | generation or treatment of natural or artificial gas for |
14 | | wholesale or retail sale that is delivered to customers though |
15 | | pipes, pipelines, or mains; or (iii) the treatment of water for |
16 | | wholesale or retail sale that is delivered to customers though |
17 | | pipes, pipelines, or mains. The provisions of this amendatory |
18 | | Act of the 98th General Assembly are declaratory of existing |
19 | | law as to the meaning and scope of this exemption.
|
20 | | (15) Proceeds of mandatory service charges separately |
21 | | stated on
customers' bills for purchase and consumption of food |
22 | | and beverages, to the
extent that the proceeds of the service |
23 | | charge are in fact turned over as
tips or as a substitute for |
24 | | tips to the employees who participate directly
in preparing, |
25 | | serving, hosting or cleaning up the food or beverage function
|
26 | | with respect to which the service charge is imposed.
|
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1 | | (16) Petroleum products sold to a purchaser if the seller
|
2 | | is prohibited by federal law from charging tax to the |
3 | | purchaser.
|
4 | | (17) Tangible personal property sold to a common carrier by |
5 | | rail or
motor that
receives the physical possession of the |
6 | | property in Illinois and that
transports the property, or |
7 | | shares with another common carrier in the
transportation of the |
8 | | property, out of Illinois on a standard uniform bill
of lading |
9 | | showing the seller of the property as the shipper or consignor |
10 | | of
the property to a destination outside Illinois, for use |
11 | | outside Illinois.
|
12 | | (18) 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 | | (19) Until July 1 2003, oil field exploration, drilling, |
17 | | and production
equipment, including
(i) rigs and parts of rigs, |
18 | | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and |
19 | | tubular goods, including casing and
drill strings, (iii) pumps |
20 | | and pump-jack units, (iv) storage tanks and flow
lines, (v) any |
21 | | individual replacement part for oil field exploration,
|
22 | | drilling, and production equipment, and (vi) machinery and |
23 | | equipment purchased
for lease; but
excluding motor vehicles |
24 | | required to be registered under the Illinois
Vehicle Code.
|
25 | | (20) Photoprocessing machinery and equipment, including |
26 | | repair and
replacement parts, both new and used, including that |
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1 | | manufactured on
special order, certified by the purchaser to be |
2 | | used primarily for
photoprocessing, and including |
3 | | photoprocessing machinery and equipment
purchased for lease.
|
4 | | (21) Until July 1, 2003, and beginning again on the |
5 | | effective date of this amendatory Act of the 97th General |
6 | | Assembly and thereafter, coal and aggregate exploration, |
7 | | mining, offhighway hauling,
processing,
maintenance, and |
8 | | reclamation equipment, including
replacement parts and |
9 | | equipment, and including
equipment purchased for lease, but |
10 | | excluding motor vehicles required to be
registered under the |
11 | | Illinois Vehicle Code.
|
12 | | (22) Fuel and petroleum products sold to or used by an air |
13 | | carrier,
certified by the carrier to be used for consumption, |
14 | | shipment, or storage
in the conduct of its business as an air |
15 | | common carrier, for a flight
destined for or returning from a |
16 | | location or locations
outside the United States without regard |
17 | | to previous or subsequent domestic
stopovers.
|
18 | | (23) A transaction in which the purchase order is received |
19 | | by a florist
who is located outside Illinois, but who has a |
20 | | florist located in Illinois
deliver the property to the |
21 | | purchaser or the purchaser's donee in Illinois.
|
22 | | (24) Fuel consumed or used in the operation of ships, |
23 | | barges, or vessels
that are used primarily in or for the |
24 | | transportation of property or the
conveyance of persons for |
25 | | hire on rivers bordering on this State if the
fuel is delivered |
26 | | by the seller to the purchaser's barge, ship, or vessel
while |
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1 | | it is afloat upon that bordering river.
|
2 | | (25) Except as provided in item (25-5) of this Section, a
|
3 | | motor vehicle sold in this State to a nonresident even though |
4 | | the
motor vehicle is delivered to the nonresident in this |
5 | | State, if the motor
vehicle is not to be titled in this State, |
6 | | and if a drive-away permit
is issued to the motor vehicle as |
7 | | provided in Section 3-603 of the Illinois
Vehicle Code or if |
8 | | the nonresident purchaser has vehicle registration
plates to |
9 | | transfer to the motor vehicle upon returning to his or her home
|
10 | | state. The issuance of the drive-away permit or having
the
|
11 | | out-of-state registration plates to be transferred is prima |
12 | | facie evidence
that the motor vehicle will not be titled in |
13 | | this State.
|
14 | | (25-5) The exemption under item (25) does not apply if the |
15 | | state in which the motor vehicle will be titled does not allow |
16 | | a reciprocal exemption for a motor vehicle sold and delivered |
17 | | in that state to an Illinois resident but titled in Illinois. |
18 | | The tax collected under this Act on the sale of a motor vehicle |
19 | | in this State to a resident of another state that does not |
20 | | allow a reciprocal exemption shall be imposed at a rate equal |
21 | | to the state's rate of tax on taxable property in the state in |
22 | | which the purchaser is a resident, except that the tax shall |
23 | | not exceed the tax that would otherwise be imposed under this |
24 | | Act. At the time of the sale, the purchaser shall execute a |
25 | | statement, signed under penalty of perjury, of his or her |
26 | | intent to title the vehicle in the state in which the purchaser |
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1 | | is a resident within 30 days after the sale and of the fact of |
2 | | the payment to the State of Illinois of tax in an amount |
3 | | equivalent to the state's rate of tax on taxable property in |
4 | | his or her state of residence and shall submit the statement to |
5 | | the appropriate tax collection agency in his or her state of |
6 | | residence. In addition, the retailer must retain a signed copy |
7 | | of the statement in his or her records. Nothing in this item |
8 | | shall be construed to require the removal of the vehicle from |
9 | | this state following the filing of an intent to title the |
10 | | vehicle in the purchaser's state of residence if the purchaser |
11 | | titles the vehicle in his or her state of residence within 30 |
12 | | days after the date of sale. The tax collected under this Act |
13 | | in accordance with this item (25-5) shall be proportionately |
14 | | distributed as if the tax were collected at the 6.25% general |
15 | | rate imposed under this Act.
|
16 | | (25-7) Beginning on July 1, 2007, no tax is imposed under |
17 | | this Act on the sale of an aircraft, as defined in Section 3 of |
18 | | the Illinois Aeronautics Act, if all of the following |
19 | | conditions are met: |
20 | | (1) the aircraft leaves this State within 15 days after |
21 | | the later of either the issuance of the final billing for |
22 | | the sale of the aircraft, or the authorized approval for |
23 | | return to service, completion of the maintenance record |
24 | | entry, and completion of the test flight and ground test |
25 | | for inspection, as required by 14 C.F.R. 91.407; |
26 | | (2) the aircraft is not based or registered in this |
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1 | | State after the sale of the aircraft; and |
2 | | (3) the seller retains in his or her books and records |
3 | | and provides to the Department a signed and dated |
4 | | certification from the purchaser, on a form prescribed by |
5 | | the Department, certifying that the requirements of this |
6 | | item (25-7) are met. The certificate must also include the |
7 | | name and address of the purchaser, the address of the |
8 | | location where the aircraft is to be titled or registered, |
9 | | the address of the primary physical location of the |
10 | | aircraft, and other information that the Department may |
11 | | reasonably require. |
12 | | For purposes of this item (25-7): |
13 | | "Based in this State" means hangared, stored, or otherwise |
14 | | used, excluding post-sale customizations as defined in this |
15 | | Section, for 10 or more days in each 12-month period |
16 | | immediately following the date of the sale of the aircraft. |
17 | | "Registered in this State" means an aircraft registered |
18 | | with the Department of Transportation, Aeronautics Division, |
19 | | or titled or registered with the Federal Aviation |
20 | | Administration to an address located in this State. |
21 | | This paragraph (25-7) is exempt from the provisions
of
|
22 | | Section 2-70.
|
23 | | (26) Semen used for artificial insemination of livestock |
24 | | for direct
agricultural production.
|
25 | | (27) Horses, or interests in horses, registered with and |
26 | | meeting the
requirements of any of the
Arabian Horse Club |
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1 | | Registry of America, Appaloosa Horse Club, American Quarter
|
2 | | Horse Association, United States
Trotting Association, or |
3 | | Jockey Club, as appropriate, used for
purposes of breeding or |
4 | | racing for prizes. This item (27) is exempt from the provisions |
5 | | of Section 2-70, and the exemption provided for under this item |
6 | | (27) applies for all periods beginning May 30, 1995, but no |
7 | | claim for credit or refund is allowed on or after January 1, |
8 | | 2008 (the effective date of Public Act 95-88)
for such taxes |
9 | | paid during the period beginning May 30, 2000 and ending on |
10 | | January 1, 2008 (the effective date of Public Act 95-88).
|
11 | | (28) Computers and communications equipment utilized for |
12 | | any
hospital
purpose
and equipment used in the diagnosis,
|
13 | | analysis, or treatment of hospital patients sold to a lessor |
14 | | who leases the
equipment, under a lease of one year or longer |
15 | | executed or in effect at the
time of the purchase, to a
|
16 | | hospital
that has been issued an active tax exemption |
17 | | identification number by the
Department under Section 1g of |
18 | | this Act.
|
19 | | (29) Personal property sold to a lessor who leases the
|
20 | | property, under a
lease of one year or longer executed or in |
21 | | effect at the time of the purchase,
to a governmental body
that |
22 | | has been issued an active tax exemption identification number |
23 | | by the
Department under Section 1g of this Act.
|
24 | | (30) Beginning with taxable years ending on or after |
25 | | December
31, 1995
and
ending with taxable years ending on or |
26 | | before December 31, 2004,
personal property that is
donated for |
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1 | | disaster relief to be used in a State or federally declared
|
2 | | disaster area in Illinois or bordering Illinois by a |
3 | | manufacturer or retailer
that is registered in this State to a |
4 | | corporation, society, association,
foundation, or institution |
5 | | that has been issued a sales tax exemption
identification |
6 | | number by the Department that assists victims of the disaster
|
7 | | who reside within the declared disaster area.
|
8 | | (31) Beginning with taxable years ending on or after |
9 | | December
31, 1995 and
ending with taxable years ending on or |
10 | | before December 31, 2004, personal
property that is used in the |
11 | | performance of infrastructure repairs in this
State, including |
12 | | but not limited to municipal roads and streets, access roads,
|
13 | | bridges, sidewalks, waste disposal systems, water and sewer |
14 | | line extensions,
water distribution and purification |
15 | | facilities, storm water drainage and
retention facilities, and |
16 | | sewage treatment facilities, resulting from a State
or |
17 | | federally declared disaster in Illinois or bordering Illinois |
18 | | when such
repairs are initiated on facilities located in the |
19 | | declared disaster area
within 6 months after the disaster.
|
20 | | (32) Beginning July 1, 1999, game or game birds sold at a |
21 | | "game breeding
and
hunting preserve area" as that term is used
|
22 | | in the
Wildlife Code. This paragraph is exempt from the |
23 | | provisions
of
Section 2-70.
|
24 | | (33) A motor vehicle, as that term is defined in Section |
25 | | 1-146
of the
Illinois Vehicle Code, that is donated to a |
26 | | corporation, limited liability
company, society, association, |
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1 | | foundation, or institution that is determined by
the Department |
2 | | to be organized and operated exclusively for educational
|
3 | | purposes. For purposes of this exemption, "a corporation, |
4 | | limited liability
company, society, association, foundation, |
5 | | or institution organized and
operated
exclusively for |
6 | | educational purposes" means all tax-supported public schools,
|
7 | | private schools that offer systematic instruction in useful |
8 | | branches of
learning by methods common to public schools and |
9 | | that compare favorably in
their scope and intensity with the |
10 | | course of study presented in tax-supported
schools, and |
11 | | vocational or technical schools or institutes organized and
|
12 | | operated exclusively to provide a course of study of not less |
13 | | than 6 weeks
duration and designed to prepare individuals to |
14 | | follow a trade or to pursue a
manual, technical, mechanical, |
15 | | industrial, business, or commercial
occupation.
|
16 | | (34) Beginning January 1, 2000, personal property, |
17 | | including food, purchased
through fundraising events for the |
18 | | benefit of a public or private elementary or
secondary school, |
19 | | a group of those schools, or one or more school districts if
|
20 | | the events are sponsored by an entity recognized by the school |
21 | | district that
consists primarily of volunteers and includes |
22 | | parents and teachers of the
school children. This paragraph |
23 | | does not apply to fundraising events (i) for
the benefit of |
24 | | private home instruction or (ii) for which the fundraising
|
25 | | entity purchases the personal property sold at the events from |
26 | | another
individual or entity that sold the property for the |
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1 | | purpose of resale by the
fundraising entity and that profits |
2 | | from the sale to the fundraising entity.
This paragraph is |
3 | | exempt from the provisions of Section 2-70.
|
4 | | (35) Beginning January 1, 2000 and through December 31, |
5 | | 2001, new or used
automatic vending machines that prepare and |
6 | | serve hot food and beverages,
including coffee, soup, and other |
7 | | items, and replacement parts for these
machines. Beginning |
8 | | January 1, 2002 and through June 30, 2003, machines
and parts |
9 | | for machines used in
commercial, coin-operated amusement and |
10 | | vending business if a use or occupation
tax is paid on the |
11 | | gross receipts derived from the use of the commercial,
|
12 | | coin-operated amusement and vending machines. This paragraph |
13 | | is exempt from
the provisions of Section 2-70.
|
14 | | (35-5) Beginning August 23, 2001 and through June 30, 2016, |
15 | | food for human consumption that is to be consumed off
the |
16 | | premises where it is sold (other than alcoholic beverages, soft |
17 | | drinks,
and food that has been prepared for immediate |
18 | | consumption) and prescription
and nonprescription medicines, |
19 | | drugs, medical appliances, and insulin, urine
testing |
20 | | materials, syringes, and needles used by diabetics, for human |
21 | | use, when
purchased for use by a person receiving medical |
22 | | assistance under Article V of
the Illinois Public Aid Code who |
23 | | resides in a licensed long-term care facility,
as defined in |
24 | | the Nursing Home Care Act, or a licensed facility as defined in |
25 | | the ID/DD Community Care Act or the Specialized Mental Health |
26 | | Rehabilitation Act.
|
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1 | | (36) Beginning August 2, 2001, computers and |
2 | | communications equipment
utilized for any hospital purpose and |
3 | | equipment used in the diagnosis,
analysis, or treatment of |
4 | | hospital patients sold to a lessor who leases the
equipment, |
5 | | under a lease of one year or longer executed or in effect at |
6 | | the
time of the purchase, to a hospital that has been issued an |
7 | | active tax
exemption identification number by the Department |
8 | | under Section 1g of this Act.
This paragraph is exempt from the |
9 | | provisions of Section 2-70.
|
10 | | (37) Beginning August 2, 2001, personal property sold to a |
11 | | lessor who
leases the property, under a lease of one year or |
12 | | longer executed or in effect
at the time of the purchase, to a |
13 | | governmental body that has been issued an
active tax exemption |
14 | | identification number by the Department under Section 1g
of |
15 | | this Act. This paragraph is exempt from the provisions of |
16 | | Section 2-70.
|
17 | | (38) Beginning on January 1, 2002 and through June 30, |
18 | | 2016, tangible personal property purchased
from an Illinois |
19 | | retailer by a taxpayer engaged in centralized purchasing
|
20 | | activities in Illinois who will, upon receipt of the property |
21 | | in Illinois,
temporarily store the property in Illinois (i) for |
22 | | the purpose of subsequently
transporting it outside this State |
23 | | for use or consumption thereafter solely
outside this State or |
24 | | (ii) for the purpose of being processed, fabricated, or
|
25 | | manufactured into, attached to, or incorporated into other |
26 | | tangible personal
property to be transported outside this State |
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1 | | and thereafter used or consumed
solely outside this State. The |
2 | | Director of Revenue shall, pursuant to rules
adopted in |
3 | | accordance with the Illinois Administrative Procedure Act, |
4 | | issue a
permit to any taxpayer in good standing with the |
5 | | Department who is eligible for
the exemption under this |
6 | | paragraph (38). The permit issued under
this paragraph (38) |
7 | | shall authorize the holder, to the extent and
in the manner |
8 | | specified in the rules adopted under this Act, to purchase
|
9 | | tangible personal property from a retailer exempt from the |
10 | | taxes imposed by
this Act. Taxpayers shall maintain all |
11 | | necessary books and records to
substantiate the use and |
12 | | consumption of all such tangible personal property
outside of |
13 | | the State of Illinois.
|
14 | | (39) Beginning January 1, 2008, tangible personal property |
15 | | used in the construction or maintenance of a community water |
16 | | supply, as defined under Section 3.145 of the Environmental |
17 | | Protection Act, that is operated by a not-for-profit |
18 | | corporation that holds a valid water supply permit issued under |
19 | | Title IV of the Environmental Protection Act. This paragraph is |
20 | | exempt from the provisions of Section 2-70.
|
21 | | (40) Beginning January 1, 2010, materials, parts, |
22 | | equipment, components, and furnishings incorporated into or |
23 | | upon an aircraft as part of the modification, refurbishment, |
24 | | completion, replacement, repair, or maintenance of the |
25 | | aircraft. This exemption includes consumable supplies used in |
26 | | the modification, refurbishment, completion, replacement, |
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1 | | repair, and maintenance of aircraft, but excludes any |
2 | | materials, parts, equipment, components, and consumable |
3 | | supplies used in the modification, replacement, repair, and |
4 | | maintenance of aircraft engines or power plants, whether such |
5 | | engines or power plants are installed or uninstalled upon any |
6 | | such aircraft. "Consumable supplies" include, but are not |
7 | | limited to, adhesive, tape, sandpaper, general purpose |
8 | | lubricants, cleaning solution, latex gloves, and protective |
9 | | films. This exemption applies only to those organizations that |
10 | | (i) hold an Air Agency Certificate and are empowered to operate |
11 | | an approved repair station by the Federal Aviation |
12 | | Administration, (ii) have a Class IV Rating, and (iii) conduct |
13 | | operations in accordance with Part 145 of the Federal Aviation |
14 | | Regulations. The exemption does not include aircraft operated |
15 | | by a commercial air carrier providing scheduled passenger air |
16 | | service pursuant to authority issued under Part 121 or Part 129 |
17 | | of the Federal Aviation Regulations. |
18 | | (41) Tangible personal property sold to a |
19 | | public-facilities corporation, as described in Section |
20 | | 11-65-10 of the Illinois Municipal Code, for purposes of |
21 | | constructing or furnishing a municipal convention hall, but |
22 | | only if the legal title to the municipal convention hall is |
23 | | transferred to the municipality without any further |
24 | | consideration by or on behalf of the municipality at the time |
25 | | of the completion of the municipal convention hall or upon the |
26 | | retirement or redemption of any bonds or other debt instruments |
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1 | | issued by the public-facilities corporation in connection with |
2 | | the development of the municipal convention hall. This |
3 | | exemption includes existing public-facilities corporations as |
4 | | provided in Section 11-65-25 of the Illinois Municipal Code. |
5 | | This paragraph is exempt from the provisions of Section 2-70. |
6 | | (Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; |
7 | | 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. |
8 | | 7-2-10; 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227, eff. |
9 | | 1-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. |
10 | | 7-9-12.)
|
11 | | (35 ILCS 120/2-25) (from Ch. 120, par. 441-25)
|
12 | | Sec. 2-25. Computer software. For the purposes of this Act, |
13 | | "computer
software" means a set of statements, data,
or |
14 | | instructions to be used directly or indirectly in a computer in |
15 | | order to
bring about a certain result in any form in which |
16 | | those statements, data, or
instructions may be embodied, |
17 | | transmitted, or fixed, by any method now known
or hereafter |
18 | | developed, regardless of whether the statements, data, or
|
19 | | instructions are capable of being perceived by or communicated |
20 | | to humans,
and includes prewritten or canned software that is |
21 | | held for repeated sale
or lease, and all associated |
22 | | documentation and materials, if any, whether
contained on |
23 | | magnetic tapes, discs, cards, or other devices or media, but
|
24 | | does not include software that is adapted to specific |
25 | | individualized
requirements of a purchaser, custom-made and |
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1 | | modified software designed for
a particular or limited use by a |
2 | | purchaser, or software used to operate
exempt machinery and |
3 | | equipment used in the process of manufacturing or
assembling |
4 | | tangible personal property for wholesale or retail sale or
|
5 | | lease. Software used to operate machinery and equipment used in |
6 | | (i) the generation of electricity for wholesale or retail sale; |
7 | | (ii) the generation or treatment of natural or artificial gas |
8 | | for wholesale or retail sale that is delivered to customers |
9 | | though pipes, pipelines, or mains; or (iii) the treatment of |
10 | | water for wholesale or retail sale that is delivered to |
11 | | customers though pipes, pipelines, or mains is considered |
12 | | "computer software". The provisions of this amendatory Act of |
13 | | the 98th General Assembly are declaratory of existing law as to |
14 | | the meaning and scope of this exemption.
|
15 | | For the purposes of this Act, computer software shall be |
16 | | considered to be
tangible personal property.
|
17 | | (Source: P.A. 91-51, eff. 6-30-99.)
|
18 | | (35 ILCS 120/2-45) (from Ch. 120, par. 441-45)
|
19 | | Sec. 2-45. Manufacturing and assembly exemption. The |
20 | | manufacturing
and assembly machinery and equipment exemption |
21 | | includes machinery
and equipment that replaces machinery
and |
22 | | equipment in an existing manufacturing facility as well as |
23 | | machinery
and equipment that are for use in an expanded or new
|
24 | | manufacturing facility.
|
25 | | The machinery and equipment exemption also includes |
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1 | | machinery
and equipment used in the
general maintenance or |
2 | | repair of exempt machinery and equipment or for
in-house |
3 | | manufacture of exempt machinery and equipment.
The machinery |
4 | | and equipment exemption does not include machinery and |
5 | | equipment used in (i) the generation of electricity for |
6 | | wholesale or retail sale; (ii) the generation or treatment of |
7 | | natural or artificial gas for wholesale or retail sale that is |
8 | | delivered to customers though pipes, pipelines, or mains; or |
9 | | (iii) the treatment of water for wholesale or retail sale that |
10 | | is delivered to customers though pipes, pipelines, or mains. |
11 | | The provisions of this amendatory Act of the 98th General |
12 | | Assembly are declaratory of existing law as to the meaning and |
13 | | scope of this exemption. For the purposes of this exemption, |
14 | | terms have the following meanings:
|
15 | | (1) "Manufacturing process" means the production of an |
16 | | article of
tangible personal property, whether the article |
17 | | is a finished product or an
article for use in the process |
18 | | of manufacturing or assembling a different
article of |
19 | | tangible personal property, by a procedure commonly |
20 | | regarded as
manufacturing, processing, fabricating, or |
21 | | refining that changes some
existing material or materials |
22 | | into a material with a different form, use,
or name. In |
23 | | relation to a recognized integrated business composed of a
|
24 | | series of operations that collectively constitute |
25 | | manufacturing, or
individually constitute manufacturing |
26 | | operations, the manufacturing process
commences with the |
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1 | | first operation or stage of production in the series and
|
2 | | does not end until the completion of the final product in |
3 | | the last
operation or stage of production in the series. |
4 | | For purposes of this
exemption, photoprocessing is a |
5 | | manufacturing process of tangible personal
property for |
6 | | wholesale or retail sale.
|
7 | | (2) "Assembling process" means the production of an |
8 | | article of
tangible personal property, whether the article |
9 | | is a finished product or an
article for use in the process |
10 | | of manufacturing or assembling a different
article of |
11 | | tangible personal property, by the combination of existing
|
12 | | materials in a manner commonly regarded as assembling that |
13 | | results in a
material of a different form, use, or name.
|
14 | | (3) "Machinery" means major mechanical machines or |
15 | | major components of
those machines contributing to a |
16 | | manufacturing or assembling process.
|
17 | | (4) "Equipment" includes an independent device or tool |
18 | | separate from
machinery but essential to an integrated |
19 | | manufacturing or assembly process;
including computers |
20 | | used primarily in a manufacturer's computer assisted |
21 | | design, computer assisted manufacturing
(CAD/CAM) system; |
22 | | any subunit or assembly comprising a component of any
|
23 | | machinery or auxiliary, adjunct, or attachment parts of |
24 | | machinery, such as
tools, dies, jigs, fixtures, patterns, |
25 | | and molds; and any parts that
require periodic replacement |
26 | | in the course of normal operation; but does
not include |
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1 | | hand tools. Equipment includes chemicals or chemicals |
2 | | acting as
catalysts but only if
the chemicals or chemicals |
3 | | acting as catalysts effect a direct and
immediate change |
4 | | upon a
product being manufactured or assembled for |
5 | | wholesale or retail sale or
lease.
|
6 | | (5) "Production related tangible personal property" |
7 | | means all tangible personal property that is used or |
8 | | consumed by the purchaser in a manufacturing facility in |
9 | | which a manufacturing process takes place and includes, |
10 | | without limitation, tangible personal property that is |
11 | | purchased for incorporation into real estate within a |
12 | | manufacturing facility and tangible personal property that |
13 | | is used or consumed in activities such as research and |
14 | | development, preproduction material handling, receiving, |
15 | | quality control, inventory control, storage, staging, and |
16 | | packaging for shipping and transportation purposes. |
17 | | "Production related tangible personal property" does not |
18 | | include (i) tangible personal property that is used, within |
19 | | or without a manufacturing facility, in sales, purchasing, |
20 | | accounting, fiscal management, marketing, personnel |
21 | | recruitment or selection, or landscaping or (ii) tangible |
22 | | personal property that is required to be titled or |
23 | | registered with a department, agency, or unit of federal, |
24 | | State, or local government.
|
25 | | The manufacturing and assembling machinery and equipment |
26 | | exemption includes production related tangible personal |
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1 | | property that is purchased on or after July 1, 2007 and on or |
2 | | before June 30, 2008. The exemption for production related |
3 | | tangible personal property is subject to both of the following |
4 | | limitations: |
5 | | (1) The maximum amount of the exemption for any one |
6 | | taxpayer may not exceed 5% of the purchase price of |
7 | | production related tangible personal property that is |
8 | | purchased on or after July 1, 2007 and on or before June |
9 | | 30, 2008. A credit under Section 3-85 of this Act may not |
10 | | be earned by the purchase of production related tangible |
11 | | personal property for which an exemption is received under |
12 | | this Section. |
13 | | (2) The maximum aggregate amount of the exemptions for |
14 | | production related tangible personal property awarded |
15 | | under this Act and the Use
Tax Act to all taxpayers may not |
16 | | exceed $10,000,000. If the claims for the exemption exceed |
17 | | $10,000,000, then the Department shall reduce the amount of |
18 | | the exemption to each taxpayer on a pro rata basis. |
19 | | The Department may adopt rules to implement and administer the |
20 | | exemption for production related tangible personal property. |
21 | | The manufacturing and assembling machinery and equipment |
22 | | exemption
includes the sale of materials to a purchaser who |
23 | | produces exempted types
of machinery, equipment, or tools and |
24 | | who rents or leases that machinery,
equipment, or tools to a |
25 | | manufacturer of tangible personal property. This
exemption |
26 | | also includes the sale of materials to a purchaser who |
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1 | | manufactures
those materials into an exempted type of |
2 | | machinery, equipment, or tools
that the purchaser uses himself |
3 | | or herself in the manufacturing of tangible
personal property. |
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 purchaser of the machinery, |
7 | | equipment, and
tools without an active resale registration |
8 | | number shall furnish to the
seller a certificate of exemption |
9 | | for each transaction stating facts
establishing the exemption |
10 | | for that transaction, and that certificate shall
be available |
11 | | to the Department for inspection or audit. Informal
rulings, |
12 | | opinions, or letters issued by the Department in response to an
|
13 | | inquiry or request for an opinion from any person regarding the |
14 | | coverage and
applicability of this exemption to specific |
15 | | devices shall be published,
maintained as a public record,
and |
16 | | made available for public inspection and copying. If the |
17 | | informal
ruling, opinion, or letter contains trade secrets or |
18 | | other confidential
information, where possible, the Department |
19 | | shall delete that information
before publication. Whenever |
20 | | informal rulings, opinions, or letters
contain a policy of |
21 | | general applicability, the Department shall
formulate and |
22 | | adopt that policy as a rule in accordance with the Illinois
|
23 | | Administrative Procedure Act.
|
24 | | (Source: P.A. 95-707, eff. 1-11-08; 96-328, eff. 8-11-09.)
|
25 | | (35 ILCS 120/2a) (from Ch. 120, par. 441a) |
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1 | | Sec. 2a. It is unlawful for any person to engage in the |
2 | | business of
selling tangible personal property at retail in |
3 | | this State without a
certificate of registration from the |
4 | | Department. Application
for a certificate of registration |
5 | | shall be made to the Department upon
forms furnished by it. |
6 | | Each such application shall be signed and verified
and shall |
7 | | state: (1) the name and social security number of the
|
8 | | applicant; (2) the address of his principal place
of business; |
9 | | (3) the address of the principal place of business from which
|
10 | | he engages in the business of selling tangible personal |
11 | | property at retail
in this State and the addresses of all other |
12 | | places of business, if any
(enumerating such addresses, if any, |
13 | | in a separate list attached to and
made a part of the |
14 | | application), from which he engages in the business of
selling |
15 | | tangible personal property at retail in this State; (4)
the
|
16 | | name and address of the person or persons who will be |
17 | | responsible for
filing returns and payment of taxes due under |
18 | | this Act; (5) in the case of a publicly-traded corporation, the |
19 | | name and title of the Chief Financial Officer, Chief Operating |
20 | | Officer, and any other officer or employee with responsibility |
21 | | for preparing tax returns under this Act, along with the last 4 |
22 | | digits of each of their social security numbers, and in the
|
23 | | case of all other corporations
a corporation , the name, title, |
24 | | and social security number of
each corporate officer; (6) in |
25 | | the case of a limited liability
company, the
name, social |
26 | | security number, and FEIN number of
each
manager and member; |
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1 | | and (7) such other information
as the Department may reasonably |
2 | | require. The application shall contain
an acceptance of |
3 | | responsibility signed by the person or persons who will be
|
4 | | responsible for filing returns and payment of the taxes due |
5 | | under this
Act. If the applicant will sell tangible personal |
6 | | property at retail
through vending machines, his application to |
7 | | register shall indicate the
number of vending machines to be so |
8 | | operated. If requested by the Department at any time, that |
9 | | person shall verify the total number of vending machines he or |
10 | | she uses in his or her business of selling tangible personal |
11 | | property at retail. |
12 | | The Department may deny a certificate of registration to |
13 | | any applicant
if the owner, any partner, any manager or member |
14 | | of a limited liability
company, or a corporate officer of the |
15 | | applicant, is or
has been the owner, a partner, a manager or |
16 | | member of a limited
liability company, or a corporate officer, |
17 | | of another retailer
that is in default for moneys due under |
18 | | this Act. |
19 | | The Department may require an applicant for a certificate |
20 | | of registration hereunder to, at
the time of filing such |
21 | | application, furnish a bond from a surety company
authorized to |
22 | | do business in the State of Illinois, or an irrevocable
bank |
23 | | letter of credit or a bond signed by 2
personal sureties who |
24 | | have filed, with the Department, sworn statements
disclosing |
25 | | net assets equal to at least 3 times the amount of the bond to
|
26 | | be required of such applicant, or a bond secured by an |
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1 | | assignment of a bank
account or certificate of deposit, stocks |
2 | | or bonds, conditioned upon the
applicant paying to the State of |
3 | | Illinois all moneys becoming due under
this Act and under any |
4 | | other State tax law or municipal or county tax
ordinance or |
5 | | resolution under which the certificate of registration that is
|
6 | | issued to the applicant under this Act will permit the |
7 | | applicant to engage
in business without registering separately |
8 | | under such other law, ordinance
or resolution. In making a |
9 | | determination as to whether to require a bond or other |
10 | | security, the Department shall take into consideration whether |
11 | | the owner, any partner, any manager or member of a limited |
12 | | liability company, or a corporate officer of the applicant is |
13 | | or has been the owner, a partner, a manager or member of a |
14 | | limited liability company, or a corporate officer of another |
15 | | retailer that is in default for moneys due under this Act or |
16 | | any other tax or fee Act administered by the Department; and |
17 | | whether the owner, any partner, any manager or member of a |
18 | | limited liability company, or a corporate officer of the |
19 | | applicant is or has been the owner, a partner, a manager or |
20 | | member of a limited liability company, or a corporate officer |
21 | | of another retailer whose certificate of registration has been |
22 | | revoked within the previous 5 years under this Act or any other |
23 | | tax or fee Act administered by the Department. If a bond or |
24 | | other security is required, the Department shall fix the amount |
25 | | of the bond or other security, taking into consideration the |
26 | | amount of money expected to become due from the applicant under |
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1 | | this Act and under any other State tax law or municipal or |
2 | | county tax ordinance or resolution under which the certificate |
3 | | of registration that is issued to the applicant under this Act |
4 | | will permit the applicant to engage in business without |
5 | | registering separately under such other law, ordinance, or |
6 | | resolution. The amount of security required by
the Department |
7 | | shall be such as, in its opinion, will protect the State of
|
8 | | Illinois against failure to pay the amount which may become due |
9 | | from the
applicant under this Act and under any other State tax |
10 | | law or municipal or
county tax ordinance or resolution under |
11 | | which the certificate of
registration that is issued to the |
12 | | applicant under this Act will permit the
applicant to engage in |
13 | | business without registering separately under such
other law, |
14 | | ordinance or resolution, but the amount of the security |
15 | | required
by the Department shall not exceed three times the |
16 | | amount of the
applicant's average monthly tax liability, or |
17 | | $50,000.00, whichever amount
is lower. |
18 | | No certificate of registration under this Act shall be |
19 | | issued by the
Department until the applicant provides the |
20 | | Department with satisfactory
security, if required, as herein |
21 | | provided for. |
22 | | Upon receipt of the application for certificate of |
23 | | registration in
proper form, and upon approval by the |
24 | | Department of the security furnished
by the applicant, if |
25 | | required, the Department shall issue to such applicant a
|
26 | | certificate of registration which shall permit the person to |
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1 | | whom it is
issued to engage in the business of selling tangible |
2 | | personal property at
retail in this State. The certificate of |
3 | | registration shall be
conspicuously displayed at the place of |
4 | | business which the person so
registered states in his |
5 | | application to be the principal place of business
from which he |
6 | | engages in the business of selling tangible personal property
|
7 | | at retail in this State. |
8 | | No certificate of registration issued to a taxpayer who |
9 | | files returns
required by this Act on a monthly basis shall be |
10 | | valid after the expiration
of 5 years from the date of its |
11 | | issuance or last renewal. The expiration
date of a |
12 | | sub-certificate of registration shall be that of the |
13 | | certificate
of registration to which the sub-certificate |
14 | | relates. A certificate of
registration shall automatically be |
15 | | renewed, subject to revocation as
provided by this Act, for an |
16 | | additional 5 years from the date of its
expiration unless |
17 | | otherwise notified by the Department as provided by this
|
18 | | paragraph. Where a taxpayer to whom a certificate of |
19 | | registration is
issued under this Act is in default to the |
20 | | State of Illinois for delinquent
returns or for moneys due
|
21 | | under this Act or any other State tax law or municipal or |
22 | | county ordinance
administered or enforced by the Department, |
23 | | the Department shall, not less
than 120 days before the |
24 | | expiration date of such certificate of
registration, give |
25 | | notice to the taxpayer to whom the certificate was
issued of |
26 | | the account period of the delinquent returns, the amount of
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1 | | tax,
penalty and interest due and owing from the
taxpayer, and |
2 | | that the certificate of registration shall not be
automatically |
3 | | renewed upon its expiration date unless the taxpayer, on or
|
4 | | before the date of expiration, has filed and paid the |
5 | | delinquent returns or
paid the defaulted amount in full. A
|
6 | | taxpayer to whom such a notice is issued shall be deemed an |
7 | | applicant for
renewal. The Department shall promulgate |
8 | | regulations establishing
procedures for taxpayers who file |
9 | | returns on a monthly basis but desire and
qualify to change to |
10 | | a quarterly or yearly filing basis and will no longer
be |
11 | | subject to renewal under this Section, and for taxpayers who |
12 | | file
returns on a yearly or quarterly basis but who desire or |
13 | | are required to
change to a monthly filing basis and will be |
14 | | subject to renewal under
this Section. |
15 | | The Department may in its discretion approve renewal by an |
16 | | applicant
who is in default if, at the time of application for |
17 | | renewal, the applicant
files all of the delinquent returns or |
18 | | pays to the Department such
percentage of the defaulted amount |
19 | | as may be
determined by the Department and agrees in writing to |
20 | | waive all limitations
upon the Department for collection of the |
21 | | remaining defaulted amount to the
Department over a period not |
22 | | to exceed 5 years from the date of renewal of
the certificate; |
23 | | however, no renewal application submitted by an applicant
who |
24 | | is in default shall be approved if the immediately preceding |
25 | | renewal by
the applicant was conditioned upon the installment |
26 | | payment
agreement described in this Section. The payment |
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1 | | agreement herein provided
for shall be in addition to and not |
2 | | in lieu of the security that may be required by
this Section of |
3 | | a taxpayer who is no longer considered a prior continuous
|
4 | | compliance taxpayer. The execution of the payment agreement as |
5 | | provided in
this Act shall not toll the accrual of interest at |
6 | | the statutory rate. |
7 | | The Department may suspend a certificate of registration if |
8 | | the Department finds that the person to whom the certificate of |
9 | | registration has been issued knowingly sold contraband |
10 | | cigarettes. |
11 | | A certificate of registration issued under this Act more |
12 | | than 5 years
before the effective date of this amendatory Act |
13 | | of 1989 shall expire and
be subject to the renewal provisions |
14 | | of this Section on the next
anniversary of the date of issuance |
15 | | of such certificate which occurs more
than 6 months after the |
16 | | effective date of this amendatory Act of 1989. A
certificate of |
17 | | registration issued less than 5 years before the effective
date |
18 | | of this amendatory Act of 1989 shall expire and be subject to |
19 | | the
renewal provisions of this Section on the 5th anniversary |
20 | | of the issuance
of the certificate. |
21 | | If the person so registered states that he operates other |
22 | | places of
business from which he engages in the business of |
23 | | selling tangible personal
property at retail in this State, the |
24 | | Department shall furnish him with a
sub-certificate of |
25 | | registration for each such place of business, and the
applicant |
26 | | shall display the appropriate sub-certificate of registration |
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1 | | at
each such place of business. All sub-certificates of |
2 | | registration shall
bear the same registration number as that |
3 | | appearing upon the certificate of
registration to which such |
4 | | sub-certificates relate. |
5 | | If the applicant will sell tangible personal property at |
6 | | retail through
vending machines, the Department shall furnish |
7 | | him with a sub-certificate
of registration for each such |
8 | | vending machine, and the applicant shall
display the |
9 | | appropriate sub-certificate of registration on each such
|
10 | | vending machine by attaching the sub-certificate of |
11 | | registration to a
conspicuous part of such vending machine. If |
12 | | a person who is registered to sell tangible personal property |
13 | | at retail through vending machines adds an additional vending |
14 | | machine or additional vending machines to the number of vending |
15 | | machines he or she uses in his or her business of selling |
16 | | tangible personal property at retail, he or she shall notify |
17 | | the Department, on a form prescribed by the Department, to |
18 | | request an additional sub-certificate or additional |
19 | | sub-certificates of registration, as applicable. With each |
20 | | such request, the applicant shall report the number of |
21 | | sub-certificates of registration he or she is requesting as |
22 | | well as the total number of vending machines from which he or |
23 | | she makes retail sales. |
24 | | Where the same person engages in 2 or more businesses of |
25 | | selling
tangible personal property at retail in this State, |
26 | | which businesses are
substantially different in character or |
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1 | | engaged in under different trade
names or engaged in under |
2 | | other substantially dissimilar circumstances (so
that it is |
3 | | more practicable, from an accounting, auditing or bookkeeping
|
4 | | standpoint, for such businesses to be separately registered), |
5 | | the
Department may require or permit such person (subject to |
6 | | the same
requirements concerning the furnishing of security as |
7 | | those that are
provided for hereinbefore in this Section as to |
8 | | each application for a
certificate of registration) to apply |
9 | | for and obtain a separate certificate
of registration for each |
10 | | such business or for any of such businesses, under
a single |
11 | | certificate of registration supplemented by related
|
12 | | sub-certificates of registration. |
13 | | Any person who is registered under the "Retailers' |
14 | | Occupation Tax Act"
as of March 8, 1963, and who, during the |
15 | | 3-year period immediately prior to
March 8, 1963, or during a |
16 | | continuous 3-year period part of which passed
immediately |
17 | | before and the remainder of which passes immediately after
|
18 | | March 8, 1963, has been so registered continuously and who is |
19 | | determined by
the Department not to have been either delinquent |
20 | | or deficient in the
payment of tax liability during that period |
21 | | under this Act or under any
other State tax law or municipal or |
22 | | county tax ordinance or resolution
under which the certificate |
23 | | of registration that is issued to the
registrant under this Act |
24 | | will permit the registrant to engage in business
without |
25 | | registering separately under such other law, ordinance or
|
26 | | resolution, shall be considered to be a Prior Continuous |
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1 | | Compliance
taxpayer. Also any taxpayer who has, as verified by |
2 | | the Department,
faithfully and continuously complied with the |
3 | | condition of his bond or
other security under the provisions of |
4 | | this Act for a period of 3
consecutive years shall be |
5 | | considered to be a Prior Continuous Compliance
taxpayer. |
6 | | Every Prior Continuous Compliance taxpayer shall be exempt |
7 | | from all
requirements under this Act concerning the furnishing |
8 | | of a bond or other security as a
condition precedent to his |
9 | | being authorized to engage in the business of
selling tangible |
10 | | personal property at retail in this State. This exemption
shall |
11 | | continue for each such taxpayer until such time as he may be
|
12 | | determined by the Department to be delinquent in the filing of |
13 | | any returns,
or is determined by the Department (either through |
14 | | the Department's
issuance of a final assessment which has |
15 | | become final under the Act, or by
the taxpayer's filing of a |
16 | | return which admits tax that is not paid to be
due) to be |
17 | | delinquent or deficient in the paying of any tax under this Act
|
18 | | or under any other State tax law or municipal or county tax |
19 | | ordinance or
resolution under which the certificate of |
20 | | registration that is issued to
the registrant under this Act |
21 | | will permit the registrant to engage in
business without |
22 | | registering separately under such other law, ordinance or
|
23 | | resolution, at which time that taxpayer shall become subject to |
24 | | all the
financial responsibility requirements of this Act and, |
25 | | as a condition of
being allowed to continue to engage in the |
26 | | business of selling tangible
personal property at retail, may |
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1 | | be required to post bond or other
acceptable security with the |
2 | | Department covering liability which such
taxpayer may |
3 | | thereafter incur. Any taxpayer who fails to pay an admitted or
|
4 | | established liability under this Act may also be required to |
5 | | post bond or
other acceptable security with this Department |
6 | | guaranteeing the payment of
such admitted or established |
7 | | liability. |
8 | | No certificate of registration shall be issued to any |
9 | | person who is in
default to the State of Illinois for moneys |
10 | | due under this Act or under any
other State tax law or |
11 | | municipal or county tax ordinance or resolution
under which the |
12 | | certificate of registration that is issued to the applicant
|
13 | | under this Act will permit the applicant to engage in business |
14 | | without
registering separately under such other law, ordinance |
15 | | or resolution. |
16 | | Any person aggrieved by any decision of the Department |
17 | | under this
Section may, within 20 days after notice of such |
18 | | decision, protest and
request a hearing, whereupon the |
19 | | Department shall give notice to such
person of the time and |
20 | | place fixed for such hearing and shall hold a
hearing in |
21 | | conformity with the provisions of this Act and then issue its
|
22 | | final administrative decision in the matter to such person. In |
23 | | the absence
of such a protest within 20 days, the Department's |
24 | | decision shall become
final without any further determination |
25 | | being made or notice given. |
26 | | With respect to security other than bonds (upon which the |
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1 | | Department may
sue in the event of a forfeiture), if the |
2 | | taxpayer fails to pay, when due,
any amount whose payment such |
3 | | security guarantees, the Department shall,
after such |
4 | | liability is admitted by the taxpayer or established by the
|
5 | | Department through the issuance of a final assessment that has |
6 | | become final
under the law, convert the security which that |
7 | | taxpayer has furnished into
money for the State, after first |
8 | | giving the taxpayer at least 10 days'
written notice, by |
9 | | registered or certified mail, to pay the liability or
forfeit |
10 | | such security to the Department. If the security consists of |
11 | | stocks
or bonds or other securities which are listed on a |
12 | | public exchange, the
Department shall sell such securities |
13 | | through such public exchange. If
the security consists of an |
14 | | irrevocable bank letter of credit, the
Department shall convert |
15 | | the security in the manner provided for in the
Uniform |
16 | | Commercial Code. If the security consists of a bank certificate |
17 | | of
deposit, the Department shall convert the security into |
18 | | money by demanding
and collecting the amount of such bank |
19 | | certificate of deposit from the bank
which issued such |
20 | | certificate. If the security consists of a type of stocks
or |
21 | | other securities which are not listed on a public exchange, the
|
22 | | Department shall sell such security to the highest and best |
23 | | bidder after
giving at least 10 days' notice of the date, time |
24 | | and place of the intended
sale by publication in the "State |
25 | | Official Newspaper". If the Department
realizes more than the |
26 | | amount of such liability from the security, plus the
expenses |
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1 | | incurred by the Department in converting the security into |
2 | | money,
the Department shall pay such excess to the taxpayer who |
3 | | furnished such
security, and the balance shall be paid into the |
4 | | State Treasury. |
5 | | The Department shall discharge any surety and shall release |
6 | | and return
any security deposited, assigned, pledged or |
7 | | otherwise provided to it by
a taxpayer under this Section |
8 | | within 30 days after: |
9 | | (1) such taxpayer becomes a Prior Continuous |
10 | | Compliance taxpayer; or |
11 | | (2) such taxpayer has ceased to collect receipts on |
12 | | which he is required
to remit tax to the Department, has |
13 | | filed a final tax return, and has paid
to the Department an |
14 | | amount sufficient to discharge his remaining tax
|
15 | | liability, as determined by the Department, under this Act |
16 | | and under every
other State tax law or municipal or county |
17 | | tax ordinance or resolution
under which the certificate of |
18 | | registration issued under this Act permits
the registrant |
19 | | to engage in business without registering separately under
|
20 | | such other law, ordinance or resolution. The Department |
21 | | shall make a final
determination of the taxpayer's |
22 | | outstanding tax liability as expeditiously
as possible |
23 | | after his final tax return has been filed; if the |
24 | | Department
cannot make such final determination within 45 |
25 | | days after receiving the
final tax return, within such |
26 | | period it shall so notify the taxpayer,
stating its reasons |