Illinois General Assembly - Full Text of HB4582
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Full Text of HB4582  100th General Assembly

HB4582 100TH GENERAL ASSEMBLY

  
  

 


 
100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB4582

 

Introduced , by Rep. Brad Halbrook

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-5
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/2-5

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the exemption for farm machinery and equipment also includes: bailing wire; twine (including sisal and polypropylene baler twine); bale wrap (also known as silage wrap or bale film); bunker covers (also known as silage film); silage bags; underlayments and oxygen barriers; gravel and sand bags; secure covers; bale bags, sleeves, and elastic tubes; baler wire; and netwrap. Effective immediately.


LRB100 15701 HLH 33249 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4582LRB100 15701 HLH 33249 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section
53-5 as follows:
 
6    (35 ILCS 105/3-5)
7    Sec. 3-5. Exemptions. Use of the following tangible
8personal property is exempt from the tax imposed by this Act:
9    (1) Personal property purchased from a corporation,
10society, association, foundation, institution, or
11organization, other than a limited liability company, that is
12organized and operated as a not-for-profit service enterprise
13for the benefit of persons 65 years of age or older if the
14personal property was not purchased by the enterprise for the
15purpose of resale by the enterprise.
16    (2) Personal property purchased by a not-for-profit
17Illinois county fair association for use in conducting,
18operating, or promoting the county fair.
19    (3) Personal property purchased by a not-for-profit arts or
20cultural organization that establishes, by proof required by
21the Department by rule, that it has received an exemption under
22Section 501(c)(3) of the Internal Revenue Code and that is
23organized and operated primarily for the presentation or

 

 

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1support of arts or cultural programming, activities, or
2services. These organizations include, but are not limited to,
3music and dramatic arts organizations such as symphony
4orchestras and theatrical groups, arts and cultural service
5organizations, local arts councils, visual arts organizations,
6and media arts organizations. On and after July 1, 2001 (the
7effective date of Public Act 92-35) this amendatory Act of the
892nd General Assembly, however, an entity otherwise eligible
9for this exemption shall not make tax-free purchases unless it
10has an active identification number issued by the Department.
11    (4) Personal property purchased by a governmental body, by
12a corporation, society, association, foundation, or
13institution organized and operated exclusively for charitable,
14religious, or educational purposes, or by a not-for-profit
15corporation, society, association, foundation, institution, or
16organization that has no compensated officers or employees and
17that is organized and operated primarily for the recreation of
18persons 55 years of age or older. A limited liability company
19may qualify for the exemption under this paragraph only if the
20limited liability company is organized and operated
21exclusively for educational purposes. On and after July 1,
221987, however, no entity otherwise eligible for this exemption
23shall make tax-free purchases unless it has an active exemption
24identification number issued by the Department.
25    (5) Until July 1, 2003, a passenger car that is a
26replacement vehicle to the extent that the purchase price of

 

 

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1the car is subject to the Replacement Vehicle Tax.
2    (6) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new and
5used, and including that manufactured on special order,
6certified by the purchaser to be used primarily for graphic
7arts production, and including machinery and equipment
8purchased for lease. Equipment includes chemicals or chemicals
9acting as catalysts but only if the chemicals or chemicals
10acting as catalysts effect a direct and immediate change upon a
11graphic arts product. Beginning on July 1, 2017, graphic arts
12machinery and equipment is included in the manufacturing and
13assembling machinery and equipment exemption under paragraph
14(18).
15    (7) Farm chemicals.
16    (8) Legal tender, currency, medallions, or gold or silver
17coinage issued by the State of Illinois, the government of the
18United States of America, or the government of any foreign
19country, and bullion.
20    (9) Personal property purchased from a teacher-sponsored
21student organization affiliated with an elementary or
22secondary school located in Illinois.
23    (10) A motor vehicle that is used for automobile renting,
24as defined in the Automobile Renting Occupation and Use Tax
25Act.
26    (11) Farm machinery and equipment, both new and used,

 

 

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1including that manufactured on special order, certified by the
2purchaser to be used primarily for production agriculture or
3State or federal agricultural programs, including individual
4replacement parts for the machinery and equipment, including
5machinery and equipment purchased for lease, and including
6implements of husbandry defined in Section 1-130 of the
7Illinois Vehicle Code, farm machinery and agricultural
8chemical and fertilizer spreaders, and nurse wagons required to
9be registered under Section 3-809 of the Illinois Vehicle Code,
10but excluding other motor vehicles required to be registered
11under the Illinois Vehicle Code. Horticultural polyhouses or
12hoop houses used for propagating, growing, or overwintering
13plants shall be considered farm machinery and equipment under
14this item (11). Agricultural chemical tender tanks and dry
15boxes shall include units sold separately from a motor vehicle
16required to be licensed and units sold mounted on a motor
17vehicle required to be licensed if the selling price of the
18tender is separately stated.
19    Farm machinery and equipment shall include precision
20farming equipment that is installed or purchased to be
21installed on farm machinery and equipment including, but not
22limited to, tractors, harvesters, sprayers, planters, seeders,
23or spreaders. Precision farming equipment includes, but is not
24limited to, soil testing sensors, computers, monitors,
25software, global positioning and mapping systems, and other
26such equipment.

 

 

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1    Farm machinery and equipment also includes: bailing wire;
2twine (including sisal and polypropylene baler twine); bale
3wrap (also known as silage wrap or bale film); bunker covers
4(also known as silage film); silage bags; underlayments and
5oxygen barriers; gravel and sand bags; secure covers; bale
6bags, sleeves, and elastic tubes; baler wire; and netwrap.
7    Farm machinery and equipment also includes computers,
8sensors, software, and related equipment used primarily in the
9computer-assisted operation of production agriculture
10facilities, equipment, and activities such as, but not limited
11to, the collection, monitoring, and correlation of animal and
12crop data for the purpose of formulating animal diets and
13agricultural chemicals. This item (11) is exempt from the
14provisions of Section 3-90.
15    (12) Until June 30, 2013, fuel and petroleum products sold
16to or used by an air common carrier, certified by the carrier
17to be used for consumption, shipment, or storage in the conduct
18of its business as an air common carrier, for a flight destined
19for or returning from a location or locations outside the
20United States without regard to previous or subsequent domestic
21stopovers.
22    Beginning July 1, 2013, fuel and petroleum products sold to
23or used by an air carrier, certified by the carrier to be used
24for consumption, shipment, or storage in the conduct of its
25business as an air common carrier, for a flight that (i) is
26engaged in foreign trade or is engaged in trade between the

 

 

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1United States and any of its possessions and (ii) transports at
2least one individual or package for hire from the city of
3origination to the city of final destination on the same
4aircraft, without regard to a change in the flight number of
5that aircraft.
6    (13) Proceeds of mandatory service charges separately
7stated on customers' bills for the purchase and consumption of
8food and beverages purchased at retail from a retailer, to the
9extent that the proceeds of the service charge are in fact
10turned over as tips or as a substitute for tips to the
11employees who participate directly in preparing, serving,
12hosting or cleaning up the food or beverage function with
13respect to which the service charge is imposed.
14    (14) Until July 1, 2003, oil field exploration, drilling,
15and production equipment, including (i) rigs and parts of rigs,
16rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
17tubular goods, including casing and drill strings, (iii) pumps
18and pump-jack units, (iv) storage tanks and flow lines, (v) any
19individual replacement part for oil field exploration,
20drilling, and production equipment, and (vi) machinery and
21equipment purchased for lease; but excluding motor vehicles
22required to be registered under the Illinois Vehicle Code.
23    (15) Photoprocessing machinery and equipment, including
24repair and replacement parts, both new and used, including that
25manufactured on special order, certified by the purchaser to be
26used primarily for photoprocessing, and including

 

 

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1photoprocessing machinery and equipment purchased for lease.
2    (16) Coal and aggregate exploration, mining, off-highway
3hauling, processing, maintenance, and reclamation equipment,
4including replacement parts and equipment, and including
5equipment purchased for lease, but excluding motor vehicles
6required to be registered under the Illinois Vehicle Code. The
7changes made to this Section by Public Act 97-767 apply on and
8after July 1, 2003, but no claim for credit or refund is
9allowed on or after August 16, 2013 (the effective date of
10Public Act 98-456) for such taxes paid during the period
11beginning July 1, 2003 and ending on August 16, 2013 (the
12effective date of Public Act 98-456).
13    (17) Until July 1, 2003, distillation machinery and
14equipment, sold as a unit or kit, assembled or installed by the
15retailer, certified by the user to be used only for the
16production of ethyl alcohol that will be used for consumption
17as motor fuel or as a component of motor fuel for the personal
18use of the user, and not subject to sale or resale.
19    (18) Manufacturing and assembling machinery and equipment
20used primarily in the process of manufacturing or assembling
21tangible personal property for wholesale or retail sale or
22lease, whether that sale or lease is made directly by the
23manufacturer or by some other person, whether the materials
24used in the process are owned by the manufacturer or some other
25person, or whether that sale or lease is made apart from or as
26an incident to the seller's engaging in the service occupation

 

 

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1of producing machines, tools, dies, jigs, patterns, gauges, or
2other similar items of no commercial value on special order for
3a particular purchaser. The exemption provided by this
4paragraph (18) does not include 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
7for wholesale or retail sale that is delivered to customers
8through pipes, pipelines, or mains; or (iii) the treatment of
9water for wholesale or retail sale that is delivered to
10customers through pipes, pipelines, or mains. The provisions of
11Public Act 98-583 are declaratory of existing law as to the
12meaning and scope of this exemption. Beginning on July 1, 2017,
13the exemption provided by this paragraph (18) includes, but is
14not limited to, graphic arts machinery and equipment, as
15defined in paragraph (6) of this Section.
16    (19) Personal property delivered to a purchaser or
17purchaser's donee inside Illinois when the purchase order for
18that personal property was received by a florist located
19outside Illinois who has a florist located inside Illinois
20deliver the personal property.
21    (20) Semen used for artificial insemination of livestock
22for direct agricultural production.
23    (21) Horses, or interests in horses, registered with and
24meeting the requirements of any of the Arabian Horse Club
25Registry of America, Appaloosa Horse Club, American Quarter
26Horse Association, United States Trotting Association, or

 

 

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1Jockey Club, as appropriate, used for purposes of breeding or
2racing for prizes. This item (21) is exempt from the provisions
3of Section 3-90, and the exemption provided for under this item
4(21) applies for all periods beginning May 30, 1995, but no
5claim for credit or refund is allowed on or after January 1,
62008 for such taxes paid during the period beginning May 30,
72000 and ending on January 1, 2008.
8    (22) Computers and communications equipment utilized for
9any hospital purpose and equipment used in the diagnosis,
10analysis, or treatment of hospital patients purchased by a
11lessor who leases the equipment, under a lease of one year or
12longer executed or in effect at the time the lessor would
13otherwise be subject to the tax imposed by this Act, to a
14hospital that has been issued an active tax exemption
15identification number by the Department under Section 1g of the
16Retailers' Occupation Tax Act. If the equipment is leased in a
17manner that does not qualify for this exemption or is used in
18any other non-exempt manner, the lessor shall be liable for the
19tax imposed under this Act or the Service Use Tax Act, as the
20case may be, based on the fair market value of the property at
21the time the non-qualifying use occurs. No lessor shall collect
22or attempt to collect an amount (however designated) that
23purports to reimburse that lessor for the tax imposed by this
24Act or the Service Use Tax Act, as the case may be, if the tax
25has not been paid by the lessor. If a lessor improperly
26collects any such amount from the lessee, the lessee shall have

 

 

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1a legal right to claim a refund of that amount from the lessor.
2If, however, that amount is not refunded to the lessee for any
3reason, the lessor is liable to pay that amount to the
4Department.
5    (23) Personal property purchased by a lessor who leases the
6property, under a lease of one year or longer executed or in
7effect at the time the lessor would otherwise be subject to the
8tax imposed by this Act, to a governmental body that has been
9issued an active sales tax exemption identification number by
10the Department under Section 1g of the Retailers' Occupation
11Tax Act. If the property is leased in a manner that does not
12qualify for this exemption or used in any other non-exempt
13manner, the lessor shall be liable for the tax imposed under
14this Act or the Service Use Tax Act, as the case may be, based
15on the fair market value of the property at the time the
16non-qualifying use occurs. No lessor shall collect or attempt
17to collect an amount (however designated) that purports to
18reimburse that lessor for the tax imposed by this Act or the
19Service Use Tax Act, as the case may be, if the tax has not been
20paid by the lessor. If a lessor improperly collects any such
21amount from the lessee, the lessee shall have a legal right to
22claim a refund of that amount from the lessor. If, however,
23that amount is not refunded to the lessee for any reason, the
24lessor is liable to pay that amount to the Department.
25    (24) Beginning with taxable years ending on or after
26December 31, 1995 and ending with taxable years ending on or

 

 

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1before December 31, 2004, personal property that is donated for
2disaster relief to be used in a State or federally declared
3disaster area in Illinois or bordering Illinois by a
4manufacturer or retailer that is registered in this State to a
5corporation, society, association, foundation, or institution
6that has been issued a sales tax exemption identification
7number by the Department that assists victims of the disaster
8who reside within the declared disaster area.
9    (25) Beginning with taxable years ending on or after
10December 31, 1995 and ending with taxable years ending on or
11before December 31, 2004, personal property that is used in the
12performance of infrastructure repairs in this State, including
13but not limited to municipal roads and streets, access roads,
14bridges, sidewalks, waste disposal systems, water and sewer
15line extensions, water distribution and purification
16facilities, storm water drainage and retention facilities, and
17sewage treatment facilities, resulting from a State or
18federally declared disaster in Illinois or bordering Illinois
19when such repairs are initiated on facilities located in the
20declared disaster area within 6 months after the disaster.
21    (26) Beginning July 1, 1999, game or game birds purchased
22at a "game breeding and hunting preserve area" as that term is
23used in the Wildlife Code. This paragraph is exempt from the
24provisions of Section 3-90.
25    (27) A motor vehicle, as that term is defined in Section
261-146 of the Illinois Vehicle Code, that is donated to a

 

 

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1corporation, limited liability company, society, association,
2foundation, or institution that is determined by the Department
3to be organized and operated exclusively for educational
4purposes. For purposes of this exemption, "a corporation,
5limited liability company, society, association, foundation,
6or institution organized and operated exclusively for
7educational purposes" means all tax-supported public schools,
8private schools that offer systematic instruction in useful
9branches of learning by methods common to public schools and
10that compare favorably in their scope and intensity with the
11course of study presented in tax-supported schools, and
12vocational or technical schools or institutes organized and
13operated exclusively to provide a course of study of not less
14than 6 weeks duration and designed to prepare individuals to
15follow a trade or to pursue a manual, technical, mechanical,
16industrial, business, or commercial occupation.
17    (28) Beginning January 1, 2000, personal property,
18including food, purchased through fundraising events for the
19benefit of a public or private elementary or secondary school,
20a group of those schools, or one or more school districts if
21the events are sponsored by an entity recognized by the school
22district that consists primarily of volunteers and includes
23parents and teachers of the school children. This paragraph
24does not apply to fundraising events (i) for the benefit of
25private home instruction or (ii) for which the fundraising
26entity purchases the personal property sold at the events from

 

 

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1another individual or entity that sold the property for the
2purpose of resale by the fundraising entity and that profits
3from the sale to the fundraising entity. This paragraph is
4exempt from the provisions of Section 3-90.
5    (29) Beginning January 1, 2000 and through December 31,
62001, new or used automatic vending machines that prepare and
7serve hot food and beverages, including coffee, soup, and other
8items, and replacement parts for these machines. Beginning
9January 1, 2002 and through June 30, 2003, machines and parts
10for machines used in commercial, coin-operated amusement and
11vending business if a use or occupation tax is paid on the
12gross receipts derived from the use of the commercial,
13coin-operated amusement and vending machines. This paragraph
14is exempt from the provisions of Section 3-90.
15    (30) Beginning January 1, 2001 and through June 30, 2016,
16food for human consumption that is to be consumed off the
17premises where it is sold (other than alcoholic beverages, soft
18drinks, and food that has been prepared for immediate
19consumption) and prescription and nonprescription medicines,
20drugs, medical appliances, and insulin, urine testing
21materials, syringes, and needles used by diabetics, for human
22use, when purchased for use by a person receiving medical
23assistance under Article V of the Illinois Public Aid Code who
24resides in a licensed long-term care facility, as defined in
25the Nursing Home Care Act, or in a licensed facility as defined
26in the ID/DD Community Care Act, the MC/DD Act, or the

 

 

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1Specialized Mental Health Rehabilitation Act of 2013.
2    (31) Beginning on August 2, 2001 (the effective date of
3Public Act 92-227) this amendatory Act of the 92nd General
4Assembly, computers and communications equipment utilized for
5any hospital purpose and equipment used in the diagnosis,
6analysis, or treatment of hospital patients purchased by a
7lessor who leases the equipment, under a lease of one year or
8longer executed or in effect at the time the lessor would
9otherwise be subject to the tax imposed by this Act, to a
10hospital that has been issued an active tax exemption
11identification number by the Department under Section 1g of the
12Retailers' Occupation Tax Act. If the equipment is leased in a
13manner that does not qualify for this exemption or is used in
14any other nonexempt manner, the lessor shall be liable for the
15tax imposed under this Act or the Service Use Tax Act, as the
16case may be, based on the fair market value of the property at
17the time the nonqualifying use occurs. No lessor shall collect
18or attempt to collect an amount (however designated) that
19purports to reimburse that lessor for the tax imposed by this
20Act or the Service Use Tax Act, as the case may be, if the tax
21has not been paid by the lessor. If a lessor improperly
22collects any such amount from the lessee, the lessee shall have
23a legal right to claim a refund of that amount from the lessor.
24If, however, that amount is not refunded to the lessee for any
25reason, the lessor is liable to pay that amount to the
26Department. This paragraph is exempt from the provisions of

 

 

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1Section 3-90.
2    (32) Beginning on August 2, 2001 (the effective date of
3Public Act 92-227) this amendatory Act of the 92nd General
4Assembly, personal property purchased by a lessor who leases
5the property, under a lease of one year or longer executed or
6in effect at the time the lessor would otherwise be subject to
7the tax imposed by this Act, to a governmental body that has
8been issued an active sales tax exemption identification number
9by the Department under Section 1g of the Retailers' Occupation
10Tax Act. If the property is leased in a manner that does not
11qualify for this exemption or used in any other nonexempt
12manner, the lessor shall be liable for the tax imposed under
13this Act or the Service Use Tax Act, as the case may be, based
14on the fair market value of the property at the time the
15nonqualifying use occurs. No lessor shall collect or attempt to
16collect an amount (however designated) that purports to
17reimburse that lessor for the tax imposed by this Act or the
18Service Use Tax Act, as the case may be, if the tax has not been
19paid by the lessor. If a lessor improperly collects any such
20amount from the lessee, the lessee shall have a legal right to
21claim a refund of that amount from the lessor. If, however,
22that amount is not refunded to the lessee for any reason, the
23lessor is liable to pay that amount to the Department. This
24paragraph is exempt from the provisions of Section 3-90.
25    (33) On and after July 1, 2003 and through June 30, 2004,
26the use in this State of motor vehicles of the second division

 

 

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1with a gross vehicle weight in excess of 8,000 pounds and that
2are subject to the commercial distribution fee imposed under
3Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
41, 2004 and through June 30, 2005, the use in this State of
5motor vehicles of the second division: (i) with a gross vehicle
6weight rating in excess of 8,000 pounds; (ii) that are subject
7to the commercial distribution fee imposed under Section
83-815.1 of the Illinois Vehicle Code; and (iii) that are
9primarily used for commercial purposes. Through June 30, 2005,
10this exemption applies to repair and replacement parts added
11after the initial purchase of such a motor vehicle if that
12motor vehicle is used in a manner that would qualify for the
13rolling stock exemption otherwise provided for in this Act. For
14purposes of this paragraph, the term "used for commercial
15purposes" means the transportation of persons or property in
16furtherance of any commercial or industrial enterprise,
17whether for-hire or not.
18    (34) Beginning January 1, 2008, tangible personal property
19used in the construction or maintenance of a community water
20supply, as defined under Section 3.145 of the Environmental
21Protection Act, that is operated by a not-for-profit
22corporation that holds a valid water supply permit issued under
23Title IV of the Environmental Protection Act. This paragraph is
24exempt from the provisions of Section 3-90.
25    (35) Beginning January 1, 2010, materials, parts,
26equipment, components, and furnishings incorporated into or

 

 

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1upon an aircraft as part of the modification, refurbishment,
2completion, replacement, repair, or maintenance of the
3aircraft. This exemption includes consumable supplies used in
4the modification, refurbishment, completion, replacement,
5repair, and maintenance of aircraft, but excludes any
6materials, parts, equipment, components, and consumable
7supplies used in the modification, replacement, repair, and
8maintenance of aircraft engines or power plants, whether such
9engines or power plants are installed or uninstalled upon any
10such aircraft. "Consumable supplies" include, but are not
11limited to, adhesive, tape, sandpaper, general purpose
12lubricants, cleaning solution, latex gloves, and protective
13films. This exemption applies only to the use of qualifying
14tangible personal property by persons who modify, refurbish,
15complete, repair, replace, or maintain aircraft and who (i)
16hold an Air Agency Certificate and are empowered to operate an
17approved repair station by the Federal Aviation
18Administration, (ii) have a Class IV Rating, and (iii) conduct
19operations in accordance with Part 145 of the Federal Aviation
20Regulations. The exemption does not include aircraft operated
21by a commercial air carrier providing scheduled passenger air
22service pursuant to authority issued under Part 121 or Part 129
23of the Federal Aviation Regulations. The changes made to this
24paragraph (35) by Public Act 98-534 are declarative of existing
25law.
26    (36) Tangible personal property purchased by a

 

 

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1public-facilities corporation, as described in Section
211-65-10 of the Illinois Municipal Code, for purposes of
3constructing or furnishing a municipal convention hall, but
4only if the legal title to the municipal convention hall is
5transferred to the municipality without any further
6consideration by or on behalf of the municipality at the time
7of the completion of the municipal convention hall or upon the
8retirement or redemption of any bonds or other debt instruments
9issued by the public-facilities corporation in connection with
10the development of the municipal convention hall. This
11exemption includes existing public-facilities corporations as
12provided in Section 11-65-25 of the Illinois Municipal Code.
13This paragraph is exempt from the provisions of Section 3-90.
14    (37) Beginning January 1, 2017, menstrual pads, tampons,
15and menstrual cups.
16    (38) Merchandise that is subject to the Rental Purchase
17Agreement Occupation and Use Tax. The purchaser must certify
18that the item is purchased to be rented subject to a rental
19purchase agreement, as defined in the Rental Purchase Agreement
20Act, and provide proof of registration under the Rental
21Purchase Agreement Occupation and Use Tax Act. This paragraph
22is exempt from the provisions of Section 3-90.
23(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
24100-22, eff. 7-6-17; 100-437, eff. 1-1-18; revised 9-27-17.)
 
25    Section 10. The Service Use Tax Act is amended by changing

 

 

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1Section 3-5 as follows:
 
2    (35 ILCS 110/3-5)
3    Sec. 3-5. Exemptions. Use of the following tangible
4personal property is exempt from the tax imposed by this Act:
5    (1) Personal property purchased from a corporation,
6society, association, foundation, institution, or
7organization, other than a limited liability company, that is
8organized and operated as a not-for-profit service enterprise
9for the benefit of persons 65 years of age or older if the
10personal property was not purchased by the enterprise for the
11purpose of resale by the enterprise.
12    (2) Personal property purchased by a non-profit Illinois
13county fair association for use in conducting, operating, or
14promoting the county fair.
15    (3) Personal property purchased by a not-for-profit arts or
16cultural organization that establishes, by proof required by
17the Department by rule, that it has received an exemption under
18Section 501(c)(3) of the Internal Revenue Code and that is
19organized and operated primarily for the presentation or
20support of arts or cultural programming, activities, or
21services. These organizations include, but are not limited to,
22music and dramatic arts organizations such as symphony
23orchestras and theatrical groups, arts and cultural service
24organizations, local arts councils, visual arts organizations,
25and media arts organizations. On and after the effective date

 

 

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1of this amendatory Act of the 92nd General Assembly, however,
2an entity otherwise eligible for this exemption shall not make
3tax-free purchases unless it has an active identification
4number issued by the Department.
5    (4) Legal tender, currency, medallions, or gold or silver
6coinage issued by the State of Illinois, the government of the
7United States of America, or the government of any foreign
8country, and bullion.
9    (5) Until July 1, 2003 and beginning again on September 1,
102004 through August 30, 2014, graphic arts machinery and
11equipment, including repair and replacement parts, both new and
12used, and including that manufactured on special order or
13purchased for lease, certified by the purchaser to be used
14primarily for graphic arts production. Equipment includes
15chemicals or chemicals acting as catalysts but only if the
16chemicals or chemicals acting as catalysts effect a direct and
17immediate change upon a graphic arts product. Beginning on July
181, 2017, graphic arts machinery and equipment is included in
19the manufacturing and assembling machinery and equipment
20exemption under Section 2 of this Act.
21    (6) Personal property purchased from a teacher-sponsored
22student organization affiliated with an elementary or
23secondary school located in Illinois.
24    (7) Farm machinery and equipment, both new and used,
25including that manufactured on special order, certified by the
26purchaser to be used primarily for production agriculture or

 

 

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1State or federal agricultural programs, including individual
2replacement parts for the machinery and equipment, including
3machinery and equipment purchased for lease, and including
4implements of husbandry defined in Section 1-130 of the
5Illinois Vehicle Code, farm machinery and agricultural
6chemical and fertilizer spreaders, and nurse wagons required to
7be registered under Section 3-809 of the Illinois Vehicle Code,
8but excluding other motor vehicles required to be registered
9under the Illinois Vehicle Code. Horticultural polyhouses or
10hoop houses used for propagating, growing, or overwintering
11plants shall be considered farm machinery and equipment under
12this item (7). Agricultural chemical tender tanks and dry boxes
13shall include units sold separately from a motor vehicle
14required to be licensed and units sold mounted on a motor
15vehicle required to be licensed if the selling price of the
16tender is separately stated.
17    Farm machinery and equipment shall include precision
18farming equipment that is installed or purchased to be
19installed on farm machinery and equipment including, but not
20limited to, tractors, harvesters, sprayers, planters, seeders,
21or spreaders. Precision farming equipment includes, but is not
22limited to, soil testing sensors, computers, monitors,
23software, global positioning and mapping systems, and other
24such equipment.
25    Farm machinery and equipment also includes: bailing wire;
26twine (including sisal and polypropylene baler twine); bale

 

 

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1wrap (also known as silage wrap or bale film); bunker covers
2(also known as silage film); silage bags; underlayments and
3oxygen barriers; gravel and sand bags; secure covers; bale
4bags, sleeves, and elastic tubes; baler wire; and netwrap.
5    Farm machinery and equipment also includes computers,
6sensors, software, and related equipment used primarily in the
7computer-assisted operation of production agriculture
8facilities, equipment, and activities such as, but not limited
9to, the collection, monitoring, and correlation of animal and
10crop data for the purpose of formulating animal diets and
11agricultural chemicals. This item (7) is exempt from the
12provisions of Section 3-75.
13    (8) Until June 30, 2013, fuel and petroleum products sold
14to or used by an air common carrier, certified by the carrier
15to be used for consumption, shipment, or storage in the conduct
16of its business as an air common carrier, for a flight destined
17for or returning from a location or locations outside the
18United States without regard to previous or subsequent domestic
19stopovers.
20    Beginning July 1, 2013, fuel and petroleum products sold to
21or used by an air carrier, certified by the carrier to be used
22for consumption, shipment, or storage in the conduct of its
23business as an air common carrier, for a flight that (i) is
24engaged in foreign trade or is engaged in trade between the
25United States and any of its possessions and (ii) transports at
26least one individual or package for hire from the city of

 

 

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1origination to the city of final destination on the same
2aircraft, without regard to a change in the flight number of
3that aircraft.
4    (9) Proceeds of mandatory service charges separately
5stated on customers' bills for the purchase and consumption of
6food and beverages acquired as an incident to the purchase of a
7service from a serviceman, to the extent that the proceeds of
8the service charge are in fact turned over as tips or as a
9substitute for tips to the employees who participate directly
10in preparing, serving, hosting or cleaning up the food or
11beverage function with respect to which the service charge is
12imposed.
13    (10) Until July 1, 2003, oil field exploration, drilling,
14and production equipment, including (i) rigs and parts of rigs,
15rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
16tubular goods, including casing and drill strings, (iii) pumps
17and pump-jack units, (iv) storage tanks and flow lines, (v) any
18individual replacement part for oil field exploration,
19drilling, and production equipment, and (vi) machinery and
20equipment purchased for lease; but excluding motor vehicles
21required to be registered under the Illinois Vehicle Code.
22    (11) Proceeds from the sale of photoprocessing machinery
23and equipment, including repair and replacement parts, both new
24and used, including that manufactured on special order,
25certified by the purchaser to be used primarily for
26photoprocessing, and including photoprocessing machinery and

 

 

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1equipment purchased for lease.
2    (12) Coal and aggregate exploration, mining, off-highway
3hauling, processing, maintenance, and reclamation equipment,
4including replacement parts and equipment, and including
5equipment purchased for lease, but excluding motor vehicles
6required to be registered under the Illinois Vehicle Code. The
7changes made to this Section by Public Act 97-767 apply on and
8after July 1, 2003, but no claim for credit or refund is
9allowed on or after August 16, 2013 (the effective date of
10Public Act 98-456) for such taxes paid during the period
11beginning July 1, 2003 and ending on August 16, 2013 (the
12effective date of Public Act 98-456).
13    (13) Semen used for artificial insemination of livestock
14for direct agricultural production.
15    (14) Horses, or interests in horses, registered with and
16meeting the requirements of any of the Arabian Horse Club
17Registry of America, Appaloosa Horse Club, American Quarter
18Horse Association, United States Trotting Association, or
19Jockey Club, as appropriate, used for purposes of breeding or
20racing for prizes. This item (14) is exempt from the provisions
21of Section 3-75, and the exemption provided for under this item
22(14) applies for all periods beginning May 30, 1995, but no
23claim for credit or refund is allowed on or after the effective
24date of this amendatory Act of the 95th General Assembly for
25such taxes paid during the period beginning May 30, 2000 and
26ending on the effective date of this amendatory Act of the 95th

 

 

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1General Assembly.
2    (15) Computers and communications equipment utilized for
3any hospital purpose and equipment used in the diagnosis,
4analysis, or treatment of hospital patients purchased by a
5lessor who leases the equipment, under a lease of one year or
6longer executed or in effect at the time the lessor would
7otherwise be subject to the tax imposed by this Act, to a
8hospital that has been issued an active tax exemption
9identification number by the Department under Section 1g of the
10Retailers' Occupation Tax Act. If the equipment is leased in a
11manner that does not qualify for this exemption or is used in
12any other non-exempt manner, the lessor shall be liable for the
13tax imposed under this Act or the Use Tax Act, as the case may
14be, based on the fair market value of the property at the time
15the non-qualifying use occurs. No lessor shall collect or
16attempt to collect an amount (however designated) that purports
17to reimburse that lessor for the tax imposed by this Act or the
18Use Tax Act, as the case may be, if the tax has not been paid by
19the lessor. If a lessor improperly collects any such amount
20from the lessee, the lessee shall have a legal right to claim a
21refund of that amount from the lessor. If, however, that amount
22is not refunded to the lessee for any reason, the lessor is
23liable to pay that amount to the Department.
24    (16) Personal property purchased by a lessor who leases the
25property, under a lease of one year or longer executed or in
26effect at the time the lessor would otherwise be subject to the

 

 

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1tax imposed by this Act, to a governmental body that has been
2issued an active tax exemption identification number by the
3Department under Section 1g of the Retailers' Occupation Tax
4Act. If the property is leased in a manner that does not
5qualify for this exemption or is used in any other non-exempt
6manner, the lessor shall be liable for the tax imposed under
7this Act or the Use Tax Act, as the case may be, based on the
8fair market value of the property at the time the
9non-qualifying use occurs. No lessor shall collect or attempt
10to collect an amount (however designated) that purports to
11reimburse that lessor for the tax imposed by this Act or the
12Use Tax Act, as the case may be, if the tax has not been paid by
13the lessor. If a lessor improperly collects any such amount
14from the lessee, the lessee shall have a legal right to claim a
15refund of that amount from the lessor. If, however, that amount
16is not refunded to the lessee for any reason, the lessor is
17liable to pay that amount to the Department.
18    (17) Beginning with taxable years ending on or after
19December 31, 1995 and ending with taxable years ending on or
20before December 31, 2004, personal property that is donated for
21disaster relief to be used in a State or federally declared
22disaster area in Illinois or bordering Illinois by a
23manufacturer or retailer that is registered in this State to a
24corporation, society, association, foundation, or institution
25that has been issued a sales tax exemption identification
26number by the Department that assists victims of the disaster

 

 

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1who reside within the declared disaster area.
2    (18) Beginning with taxable years ending on or after
3December 31, 1995 and ending with taxable years ending on or
4before December 31, 2004, personal property that is used in the
5performance of infrastructure repairs in this State, including
6but not limited to municipal roads and streets, access roads,
7bridges, sidewalks, waste disposal systems, water and sewer
8line extensions, water distribution and purification
9facilities, storm water drainage and retention facilities, and
10sewage treatment facilities, resulting from a State or
11federally declared disaster in Illinois or bordering Illinois
12when such repairs are initiated on facilities located in the
13declared disaster area within 6 months after the disaster.
14    (19) Beginning July 1, 1999, game or game birds purchased
15at a "game breeding and hunting preserve area" as that term is
16used in the Wildlife Code. This paragraph is exempt from the
17provisions of Section 3-75.
18    (20) A motor vehicle, as that term is defined in Section
191-146 of the Illinois Vehicle Code, that is donated to a
20corporation, limited liability company, society, association,
21foundation, or institution that is determined by the Department
22to be organized and operated exclusively for educational
23purposes. For purposes of this exemption, "a corporation,
24limited liability company, society, association, foundation,
25or institution organized and operated exclusively for
26educational purposes" means all tax-supported public schools,

 

 

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1private schools that offer systematic instruction in useful
2branches of learning by methods common to public schools and
3that compare favorably in their scope and intensity with the
4course of study presented in tax-supported schools, and
5vocational or technical schools or institutes organized and
6operated exclusively to provide a course of study of not less
7than 6 weeks duration and designed to prepare individuals to
8follow a trade or to pursue a manual, technical, mechanical,
9industrial, business, or commercial occupation.
10    (21) Beginning January 1, 2000, personal property,
11including food, purchased through fundraising events for the
12benefit of a public or private elementary or secondary school,
13a group of those schools, or one or more school districts if
14the events are sponsored by an entity recognized by the school
15district that consists primarily of volunteers and includes
16parents and teachers of the school children. This paragraph
17does not apply to fundraising events (i) for the benefit of
18private home instruction or (ii) for which the fundraising
19entity purchases the personal property sold at the events from
20another individual or entity that sold the property for the
21purpose of resale by the fundraising entity and that profits
22from the sale to the fundraising entity. This paragraph is
23exempt from the provisions of Section 3-75.
24    (22) Beginning January 1, 2000 and through December 31,
252001, new or used automatic vending machines that prepare and
26serve hot food and beverages, including coffee, soup, and other

 

 

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1items, and replacement parts for these machines. Beginning
2January 1, 2002 and through June 30, 2003, machines and parts
3for machines used in commercial, coin-operated amusement and
4vending business if a use or occupation tax is paid on the
5gross receipts derived from the use of the commercial,
6coin-operated amusement and vending machines. This paragraph
7is exempt from the provisions of Section 3-75.
8    (23) Beginning August 23, 2001 and through June 30, 2016,
9food for human consumption that is to be consumed off the
10premises where it is sold (other than alcoholic beverages, soft
11drinks, and food that has been prepared for immediate
12consumption) and prescription and nonprescription medicines,
13drugs, medical appliances, and insulin, urine testing
14materials, syringes, and needles used by diabetics, for human
15use, when purchased for use by a person receiving medical
16assistance under Article V of the Illinois Public Aid Code who
17resides in a licensed long-term care facility, as defined in
18the Nursing Home Care Act, or in a licensed facility as defined
19in the ID/DD Community Care Act, the MC/DD Act, or the
20Specialized Mental Health Rehabilitation Act of 2013.
21    (24) Beginning on the effective date of this amendatory Act
22of the 92nd General Assembly, computers and communications
23equipment utilized for any hospital purpose and equipment used
24in the diagnosis, analysis, or treatment of hospital patients
25purchased by a lessor who leases the equipment, under a lease
26of one year or longer executed or in effect at the time the

 

 

HB4582- 30 -LRB100 15701 HLH 33249 b

1lessor would otherwise be subject to the tax imposed by this
2Act, to a hospital that has been issued an active tax exemption
3identification number by the Department under Section 1g of the
4Retailers' Occupation Tax Act. If the equipment is leased in a
5manner that does not qualify for this exemption or is used in
6any other nonexempt manner, the lessor shall be liable for the
7tax imposed under this Act or the Use Tax Act, as the case may
8be, based on the fair market value of the property at the time
9the nonqualifying use occurs. No lessor shall collect or
10attempt to collect an amount (however designated) that purports
11to reimburse that lessor for the tax imposed by this Act or the
12Use Tax Act, as the case may be, if the tax has not been paid by
13the lessor. If a lessor improperly collects any such amount
14from the lessee, the lessee shall have a legal right to claim a
15refund of that amount from the lessor. If, however, that amount
16is not refunded to the lessee for any reason, the lessor is
17liable to pay that amount to the Department. This paragraph is
18exempt from the provisions of Section 3-75.
19    (25) Beginning on the effective date of this amendatory Act
20of the 92nd General Assembly, personal property purchased by a
21lessor who leases the property, under a lease of one year or
22longer executed or in effect at the time the lessor would
23otherwise be subject to the tax imposed by this Act, to a
24governmental body that has been issued an active tax exemption
25identification number by the Department under Section 1g of the
26Retailers' Occupation Tax Act. If the property is leased in a

 

 

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1manner that does not qualify for this exemption or is used in
2any other nonexempt manner, the lessor shall be liable for the
3tax imposed under this Act or the Use Tax Act, as the case may
4be, based on the fair market value of the property at the time
5the nonqualifying use occurs. No lessor shall collect or
6attempt to collect an amount (however designated) that purports
7to reimburse that lessor for the tax imposed by this Act or the
8Use Tax Act, as the case may be, if the tax has not been paid by
9the lessor. If a lessor improperly collects any such amount
10from the lessee, the lessee shall have a legal right to claim a
11refund of that amount from the lessor. If, however, that amount
12is not refunded to the lessee for any reason, the lessor is
13liable to pay that amount to the Department. This paragraph is
14exempt from the provisions of Section 3-75.
15    (26) Beginning January 1, 2008, tangible personal property
16used in the construction or maintenance of a community water
17supply, as defined under Section 3.145 of the Environmental
18Protection Act, that is operated by a not-for-profit
19corporation that holds a valid water supply permit issued under
20Title IV of the Environmental Protection Act. This paragraph is
21exempt from the provisions of Section 3-75.
22    (27) Beginning January 1, 2010, materials, parts,
23equipment, components, and furnishings incorporated into or
24upon an aircraft as part of the modification, refurbishment,
25completion, replacement, repair, or maintenance of the
26aircraft. This exemption includes consumable supplies used in

 

 

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1the modification, refurbishment, completion, replacement,
2repair, and maintenance of aircraft, but excludes any
3materials, parts, equipment, components, and consumable
4supplies used in the modification, replacement, repair, and
5maintenance of aircraft engines or power plants, whether such
6engines or power plants are installed or uninstalled upon any
7such aircraft. "Consumable supplies" include, but are not
8limited to, adhesive, tape, sandpaper, general purpose
9lubricants, cleaning solution, latex gloves, and protective
10films. This exemption applies only to the use of qualifying
11tangible personal property transferred incident to the
12modification, refurbishment, completion, replacement, repair,
13or maintenance of aircraft by persons who (i) hold an Air
14Agency Certificate and are empowered to operate an approved
15repair station by the Federal Aviation Administration, (ii)
16have a Class IV Rating, and (iii) conduct operations in
17accordance with Part 145 of the Federal Aviation Regulations.
18The exemption does not include aircraft operated by a
19commercial air carrier providing scheduled passenger air
20service pursuant to authority issued under Part 121 or Part 129
21of the Federal Aviation Regulations. The changes made to this
22paragraph (27) by Public Act 98-534 are declarative of existing
23law.
24    (28) Tangible personal property purchased by a
25public-facilities corporation, as described in Section
2611-65-10 of the Illinois Municipal Code, for purposes of

 

 

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1constructing or furnishing a municipal convention hall, but
2only if the legal title to the municipal convention hall is
3transferred to the municipality without any further
4consideration by or on behalf of the municipality at the time
5of the completion of the municipal convention hall or upon the
6retirement or redemption of any bonds or other debt instruments
7issued by the public-facilities corporation in connection with
8the development of the municipal convention hall. This
9exemption includes existing public-facilities corporations as
10provided in Section 11-65-25 of the Illinois Municipal Code.
11This paragraph is exempt from the provisions of Section 3-75.
12    (29) Beginning January 1, 2017, menstrual pads, tampons,
13and menstrual cups.
14(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
15100-22, eff. 7-6-17.)
 
16    Section 15. The Service Occupation Tax Act is amended by
17changing Section 3-5 as follows:
 
18    (35 ILCS 115/3-5)
19    Sec. 3-5. Exemptions. The following tangible personal
20property is exempt from the tax imposed by this Act:
21    (1) Personal property sold by a corporation, society,
22association, foundation, institution, or organization, other
23than a limited liability company, that is organized and
24operated as a not-for-profit service enterprise for the benefit

 

 

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1of persons 65 years of age or older if the personal property
2was not purchased by the enterprise for the purpose of resale
3by the enterprise.
4    (2) Personal property purchased by a not-for-profit
5Illinois county fair association for use in conducting,
6operating, or promoting the county fair.
7    (3) Personal property purchased by any not-for-profit arts
8or cultural organization that establishes, by proof required by
9the Department by rule, that it has received an exemption under
10Section 501(c)(3) of the Internal Revenue Code and that is
11organized and operated primarily for the presentation or
12support of arts or cultural programming, activities, or
13services. These organizations include, but are not limited to,
14music and dramatic arts organizations such as symphony
15orchestras and theatrical groups, arts and cultural service
16organizations, local arts councils, visual arts organizations,
17and media arts organizations. On and after the effective date
18of this amendatory Act of the 92nd General Assembly, however,
19an entity otherwise eligible for this exemption shall not make
20tax-free purchases unless it has an active identification
21number issued by the Department.
22    (4) Legal tender, currency, medallions, or gold or silver
23coinage issued by the State of Illinois, the government of the
24United States of America, or the government of any foreign
25country, and bullion.
26    (5) Until July 1, 2003 and beginning again on September 1,

 

 

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12004 through August 30, 2014, graphic arts machinery and
2equipment, including repair and replacement parts, both new and
3used, and including that manufactured on special order or
4purchased for lease, certified by the purchaser to be used
5primarily for graphic arts production. Equipment includes
6chemicals or chemicals acting as catalysts but only if the
7chemicals or chemicals acting as catalysts effect a direct and
8immediate change upon a graphic arts product. Beginning on July
91, 2017, graphic arts machinery and equipment is included in
10the manufacturing and assembling machinery and equipment
11exemption under Section 2 of this Act.
12    (6) Personal property sold by a teacher-sponsored student
13organization affiliated with an elementary or secondary school
14located in Illinois.
15    (7) Farm machinery and equipment, both new and used,
16including that manufactured on special order, certified by the
17purchaser to be used primarily for production agriculture or
18State or federal agricultural programs, including individual
19replacement parts for the machinery and equipment, including
20machinery and equipment purchased for lease, and including
21implements of husbandry defined in Section 1-130 of the
22Illinois Vehicle Code, farm machinery and agricultural
23chemical and fertilizer spreaders, and nurse wagons required to
24be registered under Section 3-809 of the Illinois Vehicle Code,
25but excluding other motor vehicles required to be registered
26under the Illinois Vehicle Code. Horticultural polyhouses or

 

 

HB4582- 36 -LRB100 15701 HLH 33249 b

1hoop houses used for propagating, growing, or overwintering
2plants shall be considered farm machinery and equipment under
3this item (7). Agricultural chemical tender tanks and dry boxes
4shall include units sold separately from a motor vehicle
5required to be licensed and units sold mounted on a motor
6vehicle required to be licensed if the selling price of the
7tender is separately stated.
8    Farm machinery and equipment shall include precision
9farming equipment that is installed or purchased to be
10installed on farm machinery and equipment including, but not
11limited to, tractors, harvesters, sprayers, planters, seeders,
12or spreaders. Precision farming equipment includes, but is not
13limited to, soil testing sensors, computers, monitors,
14software, global positioning and mapping systems, and other
15such equipment.
16    Farm machinery and equipment also includes: bailing wire;
17twine (including sisal and polypropylene baler twine); bale
18wrap (also known as silage wrap or bale film); bunker covers
19(also known as silage film); silage bags; underlayments and
20oxygen barriers; gravel and sand bags; secure covers; bale
21bags, sleeves, and elastic tubes; baler wire; and netwrap.
22    Farm machinery and equipment also includes computers,
23sensors, software, and related equipment used primarily in the
24computer-assisted operation of production agriculture
25facilities, equipment, and activities such as, but not limited
26to, the collection, monitoring, and correlation of animal and

 

 

HB4582- 37 -LRB100 15701 HLH 33249 b

1crop data for the purpose of formulating animal diets and
2agricultural chemicals. This item (7) is exempt from the
3provisions of Section 3-55.
4    (8) Until June 30, 2013, fuel and petroleum products sold
5to or used by an air common carrier, certified by the carrier
6to be used for consumption, shipment, or storage in the conduct
7of its business as an air common carrier, for a flight destined
8for or returning from a location or locations outside the
9United States without regard to previous or subsequent domestic
10stopovers.
11    Beginning July 1, 2013, fuel and petroleum products sold to
12or used by an air carrier, certified by the carrier to be used
13for consumption, shipment, or storage in the conduct of its
14business as an air common carrier, for a flight that (i) is
15engaged in foreign trade or is engaged in trade between the
16United States and any of its possessions and (ii) transports at
17least one individual or package for hire from the city of
18origination to the city of final destination on the same
19aircraft, without regard to a change in the flight number of
20that aircraft.
21    (9) Proceeds of mandatory service charges separately
22stated on customers' bills for the purchase and consumption of
23food and beverages, to the extent that the proceeds of the
24service charge are in fact turned over as tips or as a
25substitute for tips to the employees who participate directly
26in preparing, serving, hosting or cleaning up the food or

 

 

HB4582- 38 -LRB100 15701 HLH 33249 b

1beverage function with respect to which the service charge is
2imposed.
3    (10) Until July 1, 2003, oil field exploration, drilling,
4and production equipment, including (i) rigs and parts of rigs,
5rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
6tubular goods, including casing and drill strings, (iii) pumps
7and pump-jack units, (iv) storage tanks and flow lines, (v) any
8individual replacement part for oil field exploration,
9drilling, and production equipment, and (vi) machinery and
10equipment purchased for lease; but excluding motor vehicles
11required to be registered under the Illinois Vehicle Code.
12    (11) Photoprocessing machinery and equipment, including
13repair and replacement parts, both new and used, including that
14manufactured on special order, certified by the purchaser to be
15used primarily for photoprocessing, and including
16photoprocessing machinery and equipment purchased for lease.
17    (12) Coal and aggregate exploration, mining, off-highway
18hauling, processing, maintenance, and reclamation equipment,
19including replacement parts and equipment, and including
20equipment purchased for lease, but excluding motor vehicles
21required to be registered under the Illinois Vehicle Code. The
22changes made to this Section by Public Act 97-767 apply on and
23after July 1, 2003, but no claim for credit or refund is
24allowed on or after August 16, 2013 (the effective date of
25Public Act 98-456) for such taxes paid during the period
26beginning July 1, 2003 and ending on August 16, 2013 (the

 

 

HB4582- 39 -LRB100 15701 HLH 33249 b

1effective date of Public Act 98-456).
2    (13) Beginning January 1, 1992 and through June 30, 2016,
3food for human consumption that is to be consumed off the
4premises where it is sold (other than alcoholic beverages, soft
5drinks and food that has been prepared for immediate
6consumption) and prescription and non-prescription medicines,
7drugs, medical appliances, and insulin, urine testing
8materials, syringes, and needles used by diabetics, for human
9use, when purchased for use by a person receiving medical
10assistance under Article V of the Illinois Public Aid Code who
11resides in a licensed long-term care facility, as defined in
12the Nursing Home Care Act, or in a licensed facility as defined
13in the ID/DD Community Care Act, the MC/DD Act, or the
14Specialized Mental Health Rehabilitation Act of 2013.
15    (14) Semen used for artificial insemination of livestock
16for direct agricultural production.
17    (15) Horses, or interests in horses, registered with and
18meeting the requirements of any of the Arabian Horse Club
19Registry of America, Appaloosa Horse Club, American Quarter
20Horse Association, United States Trotting Association, or
21Jockey Club, as appropriate, used for purposes of breeding or
22racing for prizes. This item (15) is exempt from the provisions
23of Section 3-55, and the exemption provided for under this item
24(15) applies for all periods beginning May 30, 1995, but no
25claim for credit or refund is allowed on or after January 1,
262008 (the effective date of Public Act 95-88) for such taxes

 

 

HB4582- 40 -LRB100 15701 HLH 33249 b

1paid during the period beginning May 30, 2000 and ending on
2January 1, 2008 (the effective date of Public Act 95-88).
3    (16) Computers and communications equipment utilized for
4any hospital purpose and equipment used in the diagnosis,
5analysis, or treatment of hospital patients sold to a lessor
6who leases the equipment, under a lease of one year or longer
7executed or in effect at the time of the purchase, to a
8hospital that has been issued an active tax exemption
9identification number by the Department under Section 1g of the
10Retailers' Occupation Tax Act.
11    (17) Personal property sold to a lessor who leases the
12property, under a lease of one year or longer executed or in
13effect at the time of the purchase, to a governmental body that
14has been issued an active tax exemption identification number
15by the Department under Section 1g of the Retailers' Occupation
16Tax Act.
17    (18) Beginning with taxable years ending on or after
18December 31, 1995 and ending with taxable years ending on or
19before December 31, 2004, personal property that is donated for
20disaster relief to be used in a State or federally declared
21disaster area in Illinois or bordering Illinois by a
22manufacturer or retailer that is registered in this State to a
23corporation, society, association, foundation, or institution
24that has been issued a sales tax exemption identification
25number by the Department that assists victims of the disaster
26who reside within the declared disaster area.

 

 

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1    (19) Beginning with taxable years ending on or after
2December 31, 1995 and ending with taxable years ending on or
3before December 31, 2004, personal property that is used in the
4performance of infrastructure repairs in this State, including
5but not limited to municipal roads and streets, access roads,
6bridges, sidewalks, waste disposal systems, water and sewer
7line extensions, water distribution and purification
8facilities, storm water drainage and retention facilities, and
9sewage treatment facilities, resulting from a State or
10federally declared disaster in Illinois or bordering Illinois
11when such repairs are initiated on facilities located in the
12declared disaster area within 6 months after the disaster.
13    (20) Beginning July 1, 1999, game or game birds sold at a
14"game breeding and hunting preserve area" as that term is used
15in the Wildlife Code. This paragraph is exempt from the
16provisions of Section 3-55.
17    (21) A motor vehicle, as that term is defined in Section
181-146 of the Illinois Vehicle Code, that is donated to a
19corporation, limited liability company, society, association,
20foundation, or institution that is determined by the Department
21to be organized and operated exclusively for educational
22purposes. For purposes of this exemption, "a corporation,
23limited liability company, society, association, foundation,
24or institution organized and operated exclusively for
25educational purposes" means all tax-supported public schools,
26private schools that offer systematic instruction in useful

 

 

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1branches of learning by methods common to public schools and
2that compare favorably in their scope and intensity with the
3course of study presented in tax-supported schools, and
4vocational or technical schools or institutes organized and
5operated exclusively to provide a course of study of not less
6than 6 weeks duration and designed to prepare individuals to
7follow a trade or to pursue a manual, technical, mechanical,
8industrial, business, or commercial occupation.
9    (22) Beginning January 1, 2000, personal property,
10including food, purchased through fundraising events for the
11benefit of a public or private elementary or secondary school,
12a group of those schools, or one or more school districts if
13the events are sponsored by an entity recognized by the school
14district that consists primarily of volunteers and includes
15parents and teachers of the school children. This paragraph
16does not apply to fundraising events (i) for the benefit of
17private home instruction or (ii) for which the fundraising
18entity purchases the personal property sold at the events from
19another individual or entity that sold the property for the
20purpose of resale by the fundraising entity and that profits
21from the sale to the fundraising entity. This paragraph is
22exempt from the provisions of Section 3-55.
23    (23) Beginning January 1, 2000 and through December 31,
242001, new or used automatic vending machines that prepare and
25serve hot food and beverages, including coffee, soup, and other
26items, and replacement parts for these machines. Beginning

 

 

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1January 1, 2002 and through June 30, 2003, machines and parts
2for machines used in commercial, coin-operated amusement and
3vending business if a use or occupation tax is paid on the
4gross receipts derived from the use of the commercial,
5coin-operated amusement and vending machines. This paragraph
6is exempt from the provisions of Section 3-55.
7    (24) Beginning on the effective date of this amendatory Act
8of the 92nd General Assembly, computers and communications
9equipment utilized for any hospital purpose and equipment used
10in the diagnosis, analysis, or treatment of hospital patients
11sold to a lessor who leases the equipment, under a lease of one
12year or longer executed or in effect at the time of the
13purchase, to a hospital that has been issued an active tax
14exemption identification number by the Department under
15Section 1g of the Retailers' Occupation Tax Act. This paragraph
16is exempt from the provisions of Section 3-55.
17    (25) Beginning on the effective date of this amendatory Act
18of the 92nd General Assembly, personal property sold to a
19lessor who leases the property, under a lease of one year or
20longer executed or in effect at the time of the purchase, to a
21governmental body that has been issued an active tax exemption
22identification number by the Department under Section 1g of the
23Retailers' Occupation Tax Act. This paragraph is exempt from
24the provisions of Section 3-55.
25    (26) Beginning on January 1, 2002 and through June 30,
262016, tangible personal property purchased from an Illinois

 

 

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1retailer by a taxpayer engaged in centralized purchasing
2activities in Illinois who will, upon receipt of the property
3in Illinois, temporarily store the property in Illinois (i) for
4the purpose of subsequently transporting it outside this State
5for use or consumption thereafter solely outside this State or
6(ii) for the purpose of being processed, fabricated, or
7manufactured into, attached to, or incorporated into other
8tangible personal property to be transported outside this State
9and thereafter used or consumed solely outside this State. The
10Director of Revenue shall, pursuant to rules adopted in
11accordance with the Illinois Administrative Procedure Act,
12issue a permit to any taxpayer in good standing with the
13Department who is eligible for the exemption under this
14paragraph (26). The permit issued under this paragraph (26)
15shall authorize the holder, to the extent and in the manner
16specified in the rules adopted under this Act, to purchase
17tangible personal property from a retailer exempt from the
18taxes imposed by this Act. Taxpayers shall maintain all
19necessary books and records to substantiate the use and
20consumption of all such tangible personal property outside of
21the State of Illinois.
22    (27) Beginning January 1, 2008, tangible personal property
23used in the construction or maintenance of a community water
24supply, as defined under Section 3.145 of the Environmental
25Protection Act, that is operated by a not-for-profit
26corporation that holds a valid water supply permit issued under

 

 

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1Title IV of the Environmental Protection Act. This paragraph is
2exempt from the provisions of Section 3-55.
3    (28) Tangible personal property sold to a
4public-facilities corporation, as described in Section
511-65-10 of the Illinois Municipal Code, for purposes of
6constructing or furnishing a municipal convention hall, but
7only if the legal title to the municipal convention hall is
8transferred to the municipality without any further
9consideration by or on behalf of the municipality at the time
10of the completion of the municipal convention hall or upon the
11retirement or redemption of any bonds or other debt instruments
12issued by the public-facilities corporation in connection with
13the development of the municipal convention hall. This
14exemption includes existing public-facilities corporations as
15provided in Section 11-65-25 of the Illinois Municipal Code.
16This paragraph is exempt from the provisions of Section 3-55.
17    (29) Beginning January 1, 2010, materials, parts,
18equipment, components, and furnishings incorporated into or
19upon an aircraft as part of the modification, refurbishment,
20completion, replacement, repair, or maintenance of the
21aircraft. This exemption includes consumable supplies used in
22the modification, refurbishment, completion, replacement,
23repair, and maintenance of aircraft, but excludes any
24materials, parts, equipment, components, and consumable
25supplies used in the modification, replacement, repair, and
26maintenance of aircraft engines or power plants, whether such

 

 

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1engines or power plants are installed or uninstalled upon any
2such aircraft. "Consumable supplies" include, but are not
3limited to, adhesive, tape, sandpaper, general purpose
4lubricants, cleaning solution, latex gloves, and protective
5films. This exemption applies only to the transfer of
6qualifying tangible personal property incident to the
7modification, refurbishment, completion, replacement, repair,
8or maintenance of an aircraft by persons who (i) hold an Air
9Agency Certificate and are empowered to operate an approved
10repair station by the Federal Aviation Administration, (ii)
11have a Class IV Rating, and (iii) conduct operations in
12accordance with Part 145 of the Federal Aviation Regulations.
13The exemption does not include aircraft operated by a
14commercial air carrier providing scheduled passenger air
15service pursuant to authority issued under Part 121 or Part 129
16of the Federal Aviation Regulations. The changes made to this
17paragraph (29) by Public Act 98-534 are declarative of existing
18law.
19    (30) Beginning January 1, 2017, menstrual pads, tampons,
20and menstrual cups.
21(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
22100-22, eff. 7-6-17.)
 
23    Section 20. The Retailers' Occupation Tax Act is amended by
24changing Section 2-5 as follows:
 

 

 

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1    (35 ILCS 120/2-5)
2    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
3sale of the following tangible personal property are exempt
4from the tax imposed by this Act:
5        (1) Farm chemicals.
6        (2) Farm machinery and equipment, both new and used,
7    including that manufactured on special order, certified by
8    the purchaser to be used primarily for production
9    agriculture or State or federal agricultural programs,
10    including individual replacement parts for the machinery
11    and equipment, including machinery and equipment purchased
12    for lease, and including implements of husbandry defined in
13    Section 1-130 of the Illinois Vehicle Code, farm machinery
14    and agricultural chemical and fertilizer spreaders, and
15    nurse wagons required to be registered under Section 3-809
16    of the Illinois Vehicle Code, but excluding other motor
17    vehicles required to be registered under the Illinois
18    Vehicle Code. Horticultural polyhouses or hoop houses used
19    for propagating, growing, or overwintering plants shall be
20    considered farm machinery and equipment under this item
21    (2). Agricultural chemical tender tanks and dry boxes shall
22    include units sold separately from a motor vehicle required
23    to be licensed and units sold mounted on a motor vehicle
24    required to be licensed, if the selling price of the tender
25    is separately stated.
26        Farm machinery and equipment shall include precision

 

 

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1    farming equipment that is installed or purchased to be
2    installed on farm machinery and equipment including, but
3    not limited to, tractors, harvesters, sprayers, planters,
4    seeders, or spreaders. Precision farming equipment
5    includes, but is not limited to, soil testing sensors,
6    computers, monitors, software, global positioning and
7    mapping systems, and other such equipment.
8        Farm machinery and equipment also includes: bailing
9    wire; twine (including sisal and polypropylene baler
10    twine); bale wrap (also known as silage wrap or bale film);
11    bunker covers (also known as silage film); silage bags;
12    underlayments and oxygen barriers; gravel and sand bags;
13    secure covers; bale bags, sleeves, and elastic tubes; baler
14    wire; and netwrap.
15        Farm machinery and equipment also includes computers,
16    sensors, software, and related equipment used primarily in
17    the computer-assisted operation of production agriculture
18    facilities, equipment, and activities such as, but not
19    limited to, the collection, monitoring, and correlation of
20    animal and crop data for the purpose of formulating animal
21    diets and agricultural chemicals. This item (2) is exempt
22    from the 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
25    the retailer, certified by the user to be used only for the
26    production of ethyl alcohol that will be used for

 

 

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1    consumption as motor fuel or as a component of motor fuel
2    for the personal use of the user, and not subject to sale
3    or resale.
4        (4) Until July 1, 2003 and beginning again September 1,
5    2004 through August 30, 2014, graphic arts machinery and
6    equipment, including repair and replacement parts, both
7    new and used, and including that manufactured on special
8    order or purchased for lease, certified by the purchaser to
9    be used primarily for graphic arts production. Equipment
10    includes chemicals or chemicals acting as catalysts but
11    only if the chemicals or chemicals acting as catalysts
12    effect a direct and immediate change upon a graphic arts
13    product. Beginning on July 1, 2017, graphic arts machinery
14    and equipment is included in the manufacturing and
15    assembling machinery and equipment exemption under
16    paragraph (14).
17        (5) A motor vehicle that is used for automobile
18    renting, as defined in the Automobile Renting Occupation
19    and Use Tax Act. This paragraph is exempt from the
20    provisions of Section 2-70.
21        (6) Personal property sold by a teacher-sponsored
22    student organization affiliated with an elementary or
23    secondary school located in Illinois.
24        (7) Until July 1, 2003, proceeds of that portion of the
25    selling price of a passenger car the sale of which is
26    subject to the Replacement Vehicle Tax.

 

 

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1        (8) Personal property sold to an Illinois county fair
2    association for use in conducting, operating, or promoting
3    the county fair.
4        (9) Personal property sold to a not-for-profit arts or
5    cultural organization that establishes, by proof required
6    by the Department by rule, that it has received an
7    exemption under Section 501(c)(3) of the Internal Revenue
8    Code and that is organized and operated primarily for the
9    presentation or support of arts or cultural programming,
10    activities, or services. These organizations include, but
11    are not limited to, music and dramatic arts organizations
12    such as symphony orchestras and theatrical groups, arts and
13    cultural service organizations, local arts councils,
14    visual arts organizations, and media arts organizations.
15    On and after July 1, 2001 (the effective date of Public Act
16    92-35) this amendatory Act of the 92nd General Assembly,
17    however, an entity otherwise eligible for this exemption
18    shall not make tax-free purchases unless it has an active
19    identification number issued by the Department.
20        (10) Personal property sold by a corporation, society,
21    association, foundation, institution, or organization,
22    other than a limited liability company, that is organized
23    and operated as a not-for-profit service enterprise for the
24    benefit of persons 65 years of age or older if the personal
25    property was not purchased by the enterprise for the
26    purpose of resale by the enterprise.

 

 

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1        (11) Personal property sold to a governmental body, to
2    a corporation, society, association, foundation, or
3    institution organized and operated exclusively for
4    charitable, religious, or educational purposes, or to a
5    not-for-profit corporation, society, association,
6    foundation, institution, or organization that has no
7    compensated officers or employees and that is organized and
8    operated primarily for the recreation of persons 55 years
9    of age or older. A limited liability company may qualify
10    for the exemption under this paragraph only if the limited
11    liability company is organized and operated exclusively
12    for educational purposes. On and after July 1, 1987,
13    however, no entity otherwise eligible for this exemption
14    shall make tax-free purchases unless it has an active
15    identification number issued by the Department.
16        (12) (Blank).
17        (12-5) On and after July 1, 2003 and through June 30,
18    2004, motor vehicles of the second division with a gross
19    vehicle weight in excess of 8,000 pounds that are subject
20    to the commercial distribution fee imposed under Section
21    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
22    2004 and through June 30, 2005, the use in this State of
23    motor vehicles of the second division: (i) with a gross
24    vehicle weight rating in excess of 8,000 pounds; (ii) that
25    are subject to the commercial distribution fee imposed
26    under Section 3-815.1 of the Illinois Vehicle Code; and

 

 

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1    (iii) that are primarily used for commercial purposes.
2    Through June 30, 2005, this exemption applies to repair and
3    replacement parts added after the initial purchase of such
4    a motor vehicle if that motor vehicle is used in a manner
5    that would qualify for the rolling stock exemption
6    otherwise provided for in this Act. For purposes of this
7    paragraph, "used for commercial purposes" means the
8    transportation of persons or property in furtherance of any
9    commercial or industrial enterprise whether for-hire or
10    not.
11        (13) Proceeds from sales to owners, lessors, or
12    shippers of tangible personal property that is utilized by
13    interstate carriers for hire for use as rolling stock
14    moving in interstate commerce and equipment operated by a
15    telecommunications provider, licensed as a common carrier
16    by the Federal Communications Commission, which is
17    permanently installed in or affixed to aircraft moving in
18    interstate commerce.
19        (14) Machinery and equipment that will be used by the
20    purchaser, or a lessee of the purchaser, primarily in the
21    process of manufacturing or assembling tangible personal
22    property for wholesale or retail sale or lease, whether the
23    sale or lease is made directly by the manufacturer or by
24    some other person, whether the materials used in the
25    process are owned by the manufacturer or some other person,
26    or whether the sale or lease is made apart from or as an

 

 

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1    incident to the seller's engaging in the service occupation
2    of producing machines, tools, dies, jigs, patterns,
3    gauges, or other similar items of no commercial value on
4    special order for a particular purchaser. The exemption
5    provided by this paragraph (14) does not include machinery
6    and equipment used in (i) the generation of electricity for
7    wholesale or retail sale; (ii) the generation or treatment
8    of natural or artificial gas for wholesale or retail sale
9    that is delivered to customers through pipes, pipelines, or
10    mains; or (iii) the treatment of water for wholesale or
11    retail sale that is delivered to customers through pipes,
12    pipelines, or mains. The provisions of Public Act 98-583
13    are declaratory of existing law as to the meaning and scope
14    of this exemption. Beginning on July 1, 2017, the exemption
15    provided by this paragraph (14) includes, but is not
16    limited to, graphic arts machinery and equipment, as
17    defined in paragraph (4) of this Section.
18        (15) Proceeds of mandatory service charges separately
19    stated on customers' bills for purchase and consumption of
20    food and beverages, to the extent that the proceeds of the
21    service charge are in fact turned over as tips or as a
22    substitute for tips to the employees who participate
23    directly in preparing, serving, hosting or cleaning up the
24    food or beverage function with respect to which the service
25    charge is imposed.
26        (16) Petroleum products sold to a purchaser if the

 

 

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1    seller is prohibited by federal law from charging tax to
2    the purchaser.
3        (17) Tangible personal property sold to a common
4    carrier by rail or motor that receives the physical
5    possession of the property in Illinois and that transports
6    the property, or shares with another common carrier in the
7    transportation of the property, out of Illinois on a
8    standard uniform bill of lading showing the seller of the
9    property as the shipper or consignor of the property to a
10    destination outside Illinois, for use outside Illinois.
11        (18) Legal tender, currency, medallions, or gold or
12    silver coinage issued by the State of Illinois, the
13    government of the United States of America, or the
14    government of any foreign country, and bullion.
15        (19) Until July 1, 2003, oil field exploration,
16    drilling, and production equipment, including (i) rigs and
17    parts of rigs, rotary rigs, cable tool rigs, and workover
18    rigs, (ii) pipe and tubular goods, including casing and
19    drill strings, (iii) pumps and pump-jack units, (iv)
20    storage tanks and flow lines, (v) any individual
21    replacement part for oil field exploration, drilling, and
22    production equipment, and (vi) machinery and equipment
23    purchased for lease; but excluding motor vehicles required
24    to be registered under the Illinois Vehicle Code.
25        (20) Photoprocessing machinery and equipment,
26    including repair and replacement parts, both new and used,

 

 

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1    including that manufactured on special order, certified by
2    the purchaser to be used primarily for photoprocessing, and
3    including photoprocessing machinery and equipment
4    purchased for lease.
5        (21) Coal and aggregate exploration, mining,
6    off-highway hauling, processing, maintenance, and
7    reclamation equipment, including replacement parts and
8    equipment, and including equipment purchased for lease,
9    but excluding motor vehicles required to be registered
10    under the Illinois Vehicle Code. The changes made to this
11    Section by Public Act 97-767 apply on and after July 1,
12    2003, but no claim for credit or refund is allowed on or
13    after August 16, 2013 (the effective date of Public Act
14    98-456) for such taxes paid during the period beginning
15    July 1, 2003 and ending on August 16, 2013 (the effective
16    date of Public Act 98-456).
17        (22) Until June 30, 2013, fuel and petroleum products
18    sold to or used by an air carrier, certified by the carrier
19    to be used for consumption, shipment, or storage in the
20    conduct of its business as an air common carrier, for a
21    flight destined for or returning from a location or
22    locations outside the United States without regard to
23    previous or subsequent domestic stopovers.
24        Beginning July 1, 2013, fuel and petroleum products
25    sold to or used by an air carrier, certified by the carrier
26    to be used for consumption, shipment, or storage in the

 

 

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1    conduct of its business as an air common carrier, for a
2    flight that (i) is engaged in foreign trade or is engaged
3    in trade between the United States and any of its
4    possessions and (ii) transports at least one individual or
5    package for hire from the city of origination to the city
6    of final destination on the same aircraft, without regard
7    to a change in the flight number of that aircraft.
8        (23) A transaction in which the purchase order is
9    received by a florist who is located outside Illinois, but
10    who has a florist located in Illinois deliver the property
11    to the purchaser or the purchaser's donee in Illinois.
12        (24) Fuel consumed or used in the operation of ships,
13    barges, or vessels that are used primarily in or for the
14    transportation of property or the conveyance of persons for
15    hire on rivers bordering on this State if the fuel is
16    delivered by the seller to the purchaser's barge, ship, or
17    vessel while it is afloat upon that bordering river.
18        (25) Except as provided in item (25-5) of this Section,
19    a motor vehicle sold in this State to a nonresident even
20    though the motor vehicle is delivered to the nonresident in
21    this State, if the motor vehicle is not to be titled in
22    this State, and if a drive-away permit is issued to the
23    motor vehicle as provided in Section 3-603 of the Illinois
24    Vehicle Code or if the nonresident purchaser has vehicle
25    registration plates to transfer to the motor vehicle upon
26    returning to his or her home state. The issuance of the

 

 

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1    drive-away permit or having the out-of-state registration
2    plates to be transferred is prima facie evidence that the
3    motor vehicle will not be titled in this State.
4        (25-5) The exemption under item (25) does not apply if
5    the state in which the motor vehicle will be titled does
6    not allow a reciprocal exemption for a motor vehicle sold
7    and delivered in that state to an Illinois resident but
8    titled in Illinois. The tax collected under this Act on the
9    sale of a motor vehicle in this State to a resident of
10    another state that does not allow a reciprocal exemption
11    shall be imposed at a rate equal to the state's rate of tax
12    on taxable property in the state in which the purchaser is
13    a resident, except that the tax shall not exceed the tax
14    that would otherwise be imposed under this Act. At the time
15    of the sale, the purchaser shall execute a statement,
16    signed under penalty of perjury, of his or her intent to
17    title the vehicle in the state in which the purchaser is a
18    resident within 30 days after the sale and of the fact of
19    the payment to the State of Illinois of tax in an amount
20    equivalent to the state's rate of tax on taxable property
21    in his or her state of residence and shall submit the
22    statement to the appropriate tax collection agency in his
23    or her state of residence. In addition, the retailer must
24    retain a signed copy of the statement in his or her
25    records. Nothing in this item shall be construed to require
26    the removal of the vehicle from this state following the

 

 

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1    filing of an intent to title the vehicle in the purchaser's
2    state of residence if the purchaser titles the vehicle in
3    his or her state of residence within 30 days after the date
4    of sale. The tax collected under this Act in accordance
5    with this item (25-5) shall be proportionately distributed
6    as if the tax were collected at the 6.25% general rate
7    imposed under this Act.
8        (25-7) Beginning on July 1, 2007, no tax is imposed
9    under this Act on the sale of an aircraft, as defined in
10    Section 3 of the Illinois Aeronautics Act, if all of the
11    following conditions are met:
12            (1) the aircraft leaves this State within 15 days
13        after the later of either the issuance of the final
14        billing for the sale of the aircraft, or the authorized
15        approval for return to service, completion of the
16        maintenance record entry, and completion of the test
17        flight and ground test for inspection, as required by
18        14 C.F.R. 91.407;
19            (2) the aircraft is not based or registered in this
20        State after the sale of the aircraft; and
21            (3) the seller retains in his or her books and
22        records and provides to the Department a signed and
23        dated certification from the purchaser, on a form
24        prescribed by the Department, certifying that the
25        requirements of this item (25-7) are met. The
26        certificate must also include the name and address of

 

 

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1        the purchaser, the address of the location where the
2        aircraft is to be titled or registered, the address of
3        the primary physical location of the aircraft, and
4        other information that the Department may reasonably
5        require.
6        For purposes of this item (25-7):
7        "Based in this State" means hangared, stored, or
8    otherwise used, excluding post-sale customizations as
9    defined in this Section, for 10 or more days in each
10    12-month period immediately following the date of the sale
11    of the aircraft.
12        "Registered in this State" means an aircraft
13    registered with the Department of Transportation,
14    Aeronautics Division, or titled or registered with the
15    Federal Aviation Administration to an address located in
16    this State.
17        This paragraph (25-7) is exempt from the provisions of
18    Section 2-70.
19        (26) Semen used for artificial insemination of
20    livestock for direct agricultural production.
21        (27) Horses, or interests in horses, registered with
22    and meeting the requirements of any of the Arabian Horse
23    Club Registry of America, Appaloosa Horse Club, American
24    Quarter Horse Association, United States Trotting
25    Association, or Jockey Club, as appropriate, used for
26    purposes of breeding or racing for prizes. This item (27)

 

 

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1    is exempt from the provisions of Section 2-70, and the
2    exemption provided for under this item (27) applies for all
3    periods beginning May 30, 1995, but no claim for credit or
4    refund is allowed on or after January 1, 2008 (the
5    effective date of Public Act 95-88) for such taxes paid
6    during the period beginning May 30, 2000 and ending on
7    January 1, 2008 (the effective date of Public Act 95-88).
8        (28) Computers and communications equipment utilized
9    for any hospital purpose and equipment used in the
10    diagnosis, analysis, or treatment of hospital patients
11    sold to a lessor who leases the equipment, under a lease of
12    one year or longer executed or in effect at the time of the
13    purchase, to a hospital that has been issued an active tax
14    exemption identification number by the Department under
15    Section 1g of this Act.
16        (29) Personal property sold to a lessor who leases the
17    property, under a lease of one year or longer executed or
18    in effect at the time of the purchase, to a governmental
19    body that has been issued an active tax exemption
20    identification number by the Department under Section 1g of
21    this Act.
22        (30) Beginning with taxable years ending on or after
23    December 31, 1995 and ending with taxable years ending on
24    or before December 31, 2004, personal property that is
25    donated for disaster relief to be used in a State or
26    federally declared disaster area in Illinois or bordering

 

 

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1    Illinois by a manufacturer or retailer that is registered
2    in this State to a corporation, society, association,
3    foundation, or institution that has been issued a sales tax
4    exemption identification number by the Department that
5    assists victims of the disaster who reside within the
6    declared disaster area.
7        (31) Beginning with taxable years ending on or after
8    December 31, 1995 and ending with taxable years ending on
9    or before December 31, 2004, personal property that is used
10    in the performance of infrastructure repairs in this State,
11    including but not limited to municipal roads and streets,
12    access roads, bridges, sidewalks, waste disposal systems,
13    water and sewer line extensions, water distribution and
14    purification facilities, storm water drainage and
15    retention facilities, and sewage treatment facilities,
16    resulting from a State or federally declared disaster in
17    Illinois or bordering Illinois when such repairs are
18    initiated on facilities located in the declared disaster
19    area within 6 months after the disaster.
20        (32) Beginning July 1, 1999, game or game birds sold at
21    a "game breeding and hunting preserve area" as that term is
22    used in the Wildlife Code. This paragraph is exempt from
23    the provisions of Section 2-70.
24        (33) A motor vehicle, as that term is defined in
25    Section 1-146 of the Illinois Vehicle Code, that is donated
26    to a corporation, limited liability company, society,

 

 

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1    association, foundation, or institution that is determined
2    by the Department to be organized and operated exclusively
3    for educational purposes. For purposes of this exemption,
4    "a corporation, limited liability company, society,
5    association, foundation, or institution organized and
6    operated exclusively for educational purposes" means all
7    tax-supported public schools, private schools that offer
8    systematic instruction in useful branches of learning by
9    methods common to public schools and that compare favorably
10    in their scope and intensity with the course of study
11    presented in tax-supported schools, and vocational or
12    technical schools or institutes organized and operated
13    exclusively to provide a course of study of not less than 6
14    weeks duration and designed to prepare individuals to
15    follow a trade or to pursue a manual, technical,
16    mechanical, industrial, business, or commercial
17    occupation.
18        (34) Beginning January 1, 2000, personal property,
19    including food, purchased through fundraising events for
20    the benefit of a public or private elementary or secondary
21    school, a group of those schools, or one or more school
22    districts if the events are sponsored by an entity
23    recognized by the school district that consists primarily
24    of volunteers and includes parents and teachers of the
25    school children. This paragraph does not apply to
26    fundraising events (i) for the benefit of private home

 

 

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1    instruction or (ii) for which the fundraising entity
2    purchases the personal property sold at the events from
3    another individual or entity that sold the property for the
4    purpose of resale by the fundraising entity and that
5    profits from the sale to the fundraising entity. This
6    paragraph is exempt from the provisions of Section 2-70.
7        (35) Beginning January 1, 2000 and through December 31,
8    2001, new or used automatic vending machines that prepare
9    and serve hot food and beverages, including coffee, soup,
10    and other items, and replacement parts for these machines.
11    Beginning January 1, 2002 and through June 30, 2003,
12    machines and parts for machines used in commercial,
13    coin-operated amusement and vending business if a use or
14    occupation tax is paid on the gross receipts derived from
15    the use of the commercial, coin-operated amusement and
16    vending machines. This paragraph is exempt from the
17    provisions of Section 2-70.
18        (35-5) Beginning August 23, 2001 and through June 30,
19    2016, food for human consumption that is to be consumed off
20    the premises where it is sold (other than alcoholic
21    beverages, soft drinks, and food that has been prepared for
22    immediate consumption) and prescription and
23    nonprescription medicines, drugs, medical appliances, and
24    insulin, urine testing materials, syringes, and needles
25    used by diabetics, for human use, when purchased for use by
26    a person receiving medical assistance under Article V of

 

 

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1    the Illinois Public Aid Code who resides in a licensed
2    long-term care facility, as defined in the Nursing Home
3    Care Act, or a licensed facility as defined in the ID/DD
4    Community Care Act, the MC/DD Act, or the Specialized
5    Mental Health Rehabilitation Act of 2013.
6        (36) Beginning August 2, 2001, computers and
7    communications equipment utilized for any hospital purpose
8    and equipment used in the diagnosis, analysis, or treatment
9    of hospital patients sold to a lessor who leases the
10    equipment, under a lease of one year or longer executed or
11    in effect at the time of the purchase, to a hospital that
12    has been issued an active tax exemption identification
13    number by the Department under Section 1g of this Act. This
14    paragraph is exempt from the provisions of Section 2-70.
15        (37) Beginning August 2, 2001, personal property sold
16    to a lessor who leases the property, under a lease of one
17    year or longer executed or in effect at the time of the
18    purchase, to a governmental body that has been issued an
19    active tax exemption identification number by the
20    Department under Section 1g of this Act. This paragraph is
21    exempt from the provisions of Section 2-70.
22        (38) Beginning on January 1, 2002 and through June 30,
23    2016, tangible personal property purchased from an
24    Illinois retailer by a taxpayer engaged in centralized
25    purchasing activities in Illinois who will, upon receipt of
26    the property in Illinois, temporarily store the property in

 

 

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1    Illinois (i) for the purpose of subsequently transporting
2    it outside this State for use or consumption thereafter
3    solely outside this State or (ii) for the purpose of being
4    processed, fabricated, or manufactured into, attached to,
5    or incorporated into other tangible personal property to be
6    transported outside this State and thereafter used or
7    consumed solely outside this State. The Director of Revenue
8    shall, pursuant to rules adopted in accordance with the
9    Illinois Administrative Procedure Act, issue a permit to
10    any taxpayer in good standing with the Department who is
11    eligible for the exemption under this paragraph (38). The
12    permit issued under this paragraph (38) shall authorize the
13    holder, to the extent and in the manner specified in the
14    rules adopted under this Act, to purchase tangible personal
15    property from a retailer exempt from the taxes imposed by
16    this Act. Taxpayers shall maintain all necessary books and
17    records to substantiate the use and consumption of all such
18    tangible personal property outside of the State of
19    Illinois.
20        (39) Beginning January 1, 2008, tangible personal
21    property used in the construction or maintenance of a
22    community water supply, as defined under Section 3.145 of
23    the Environmental Protection Act, that is operated by a
24    not-for-profit corporation that holds a valid water supply
25    permit issued under Title IV of the Environmental
26    Protection Act. This paragraph is exempt from the

 

 

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1    provisions of Section 2-70.
2        (40) Beginning January 1, 2010, materials, parts,
3    equipment, components, and furnishings incorporated into
4    or upon an aircraft as part of the modification,
5    refurbishment, completion, replacement, repair, or
6    maintenance of the aircraft. This exemption includes
7    consumable supplies used in the modification,
8    refurbishment, completion, replacement, repair, and
9    maintenance of aircraft, but excludes any materials,
10    parts, equipment, components, and consumable supplies used
11    in the modification, replacement, repair, and maintenance
12    of aircraft engines or power plants, whether such engines
13    or power plants are installed or uninstalled upon any such
14    aircraft. "Consumable supplies" include, but are not
15    limited to, adhesive, tape, sandpaper, general purpose
16    lubricants, cleaning solution, latex gloves, and
17    protective films. This exemption applies only to the sale
18    of qualifying tangible personal property to persons who
19    modify, refurbish, complete, replace, or maintain an
20    aircraft and who (i) hold an Air Agency Certificate and are
21    empowered to operate an approved repair station by the
22    Federal Aviation Administration, (ii) have a Class IV
23    Rating, and (iii) conduct operations in accordance with
24    Part 145 of the Federal Aviation Regulations. The exemption
25    does not include aircraft operated by a commercial air
26    carrier providing scheduled passenger air service pursuant

 

 

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1    to authority issued under Part 121 or Part 129 of the
2    Federal Aviation Regulations. The changes made to this
3    paragraph (40) by Public Act 98-534 are declarative of
4    existing law.
5        (41) Tangible personal property sold to a
6    public-facilities corporation, as described in Section
7    11-65-10 of the Illinois Municipal Code, for purposes of
8    constructing or furnishing a municipal convention hall,
9    but only if the legal title to the municipal convention
10    hall is transferred to the municipality without any further
11    consideration by or on behalf of the municipality at the
12    time of the completion of the municipal convention hall or
13    upon the retirement or redemption of any bonds or other
14    debt instruments issued by the public-facilities
15    corporation in connection with the development of the
16    municipal convention hall. This exemption includes
17    existing public-facilities corporations as provided in
18    Section 11-65-25 of the Illinois Municipal Code. This
19    paragraph is exempt from the provisions of Section 2-70.
20        (42) Beginning January 1, 2017, menstrual pads,
21    tampons, and menstrual cups.
22        (43) Merchandise that is subject to the Rental Purchase
23    Agreement Occupation and Use Tax. The purchaser must
24    certify that the item is purchased to be rented subject to
25    a rental purchase agreement, as defined in the Rental
26    Purchase Agreement Act, and provide proof of registration

 

 

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1    under the Rental Purchase Agreement Occupation and Use Tax
2    Act. This paragraph is exempt from the provisions of
3    Section 2-70.
4(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
5100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff.
61-1-18; revised 9-26-17.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.