Full Text of HB5316 100th General Assembly
HB5316 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB5316 Introduced , by Rep. Jerry Costello, II 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 coal and aggregate exploration, mining, off-highway hauling,
processing, maintenance, and reclamation equipment is exempt from the Acts' automatic sunset provisions. Effective immediately.
|
| |
| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
|
| | | HB5316 | | LRB100 16845 HLH 31986 b |
|
| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Use Tax Act is amended by changing Section | 5 | | 3-5 as follows:
| 6 | | (35 ILCS 105/3-5)
| 7 | | Sec. 3-5. Exemptions. Use of the following tangible | 8 | | personal property is exempt from the tax imposed by this Act:
| 9 | | (1) Personal property purchased from a corporation, | 10 | | society, association,
foundation, institution, or | 11 | | organization, other than a limited liability
company, that is | 12 | | organized and operated as a not-for-profit service enterprise
| 13 | | for the benefit of persons 65 years of age or older if the | 14 | | personal property was not purchased by the enterprise for the | 15 | | purpose of resale by the
enterprise.
| 16 | | (2) Personal property purchased by a not-for-profit | 17 | | Illinois county
fair association for use in conducting, | 18 | | operating, or promoting the
county fair.
| 19 | | (3) Personal property purchased by a not-for-profit
arts or | 20 | | cultural organization that establishes, by proof required by | 21 | | the
Department by
rule, that it has received an exemption under | 22 | | Section 501(c)(3) of the Internal
Revenue Code and that is | 23 | | organized and operated primarily for the
presentation
or |
| | | HB5316 | - 2 - | LRB100 16845 HLH 31986 b |
|
| 1 | | support of arts or cultural programming, activities, or | 2 | | services. These
organizations include, but are not limited to, | 3 | | music and dramatic arts
organizations such as symphony | 4 | | orchestras and theatrical groups, arts and
cultural service | 5 | | organizations, local arts councils, visual arts organizations,
| 6 | | and media arts organizations.
On and after July 1, 2001 ( the | 7 | | effective date of Public Act 92-35) this amendatory Act of the | 8 | | 92nd General
Assembly , however, an entity otherwise eligible | 9 | | for this exemption shall not
make tax-free purchases unless it | 10 | | has an active identification number issued by
the Department.
| 11 | | (4) Personal property purchased by a governmental body, by | 12 | | a
corporation, society, association, foundation, or | 13 | | institution organized and
operated exclusively for charitable, | 14 | | religious, or educational purposes, or
by a not-for-profit | 15 | | corporation, society, association, foundation,
institution, or | 16 | | organization that has no compensated officers or employees
and | 17 | | that is organized and operated primarily for the recreation of | 18 | | persons
55 years of age or older. A limited liability company | 19 | | may qualify for the
exemption under this paragraph only if the | 20 | | limited liability company is
organized and operated | 21 | | exclusively for educational purposes. On and after July
1, | 22 | | 1987, however, no entity otherwise eligible for this exemption | 23 | | shall make
tax-free purchases unless it has an active exemption | 24 | | identification number
issued by the Department.
| 25 | | (5) Until July 1, 2003, a passenger car that is a | 26 | | replacement vehicle to
the extent that the
purchase price of |
| | | HB5316 | - 3 - | LRB100 16845 HLH 31986 b |
|
| 1 | | the car is subject to the Replacement Vehicle Tax.
| 2 | | (6) Until July 1, 2003 and beginning again on September 1, | 3 | | 2004 through August 30, 2014, graphic arts machinery and | 4 | | equipment, including
repair and replacement
parts, both new and | 5 | | used, and including that manufactured on special order,
| 6 | | certified by the purchaser to be used primarily for graphic | 7 | | arts production,
and including machinery and equipment | 8 | | purchased for lease.
Equipment includes chemicals or chemicals | 9 | | acting as catalysts but only if
the
chemicals or chemicals | 10 | | acting as catalysts effect a direct and immediate change
upon a | 11 | | graphic arts product. Beginning on July 1, 2017, graphic arts | 12 | | machinery and equipment is included in the manufacturing and | 13 | | assembling machinery and equipment exemption under paragraph | 14 | | (18).
| 15 | | (7) Farm chemicals.
| 16 | | (8) Legal tender, currency, medallions, or gold or silver | 17 | | coinage issued by
the State of Illinois, the government of the | 18 | | United States of America, or the
government of any foreign | 19 | | country, and bullion.
| 20 | | (9) Personal property purchased from a teacher-sponsored | 21 | | student
organization affiliated with an elementary or | 22 | | secondary school located in
Illinois.
| 23 | | (10) A motor vehicle that is used for automobile renting, | 24 | | as defined in the
Automobile Renting Occupation and Use Tax | 25 | | Act.
| 26 | | (11) Farm machinery and equipment, both new and used,
|
| | | HB5316 | - 4 - | LRB100 16845 HLH 31986 b |
|
| 1 | | including that manufactured on special order, certified by the | 2 | | purchaser
to be used primarily for production agriculture or | 3 | | State or federal
agricultural programs, including individual | 4 | | replacement parts for
the machinery and equipment, including | 5 | | machinery and equipment
purchased
for lease,
and including | 6 | | implements of husbandry defined in Section 1-130 of
the | 7 | | Illinois Vehicle Code, farm machinery and agricultural | 8 | | chemical and
fertilizer spreaders, and nurse wagons required to | 9 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 10 | | but excluding other motor
vehicles required to be
registered | 11 | | under the Illinois Vehicle Code.
Horticultural polyhouses or | 12 | | hoop houses used for propagating, growing, or
overwintering | 13 | | plants shall be considered farm machinery and equipment under
| 14 | | this item (11).
Agricultural chemical tender tanks and dry | 15 | | boxes shall include units sold
separately from a motor vehicle | 16 | | required to be licensed and units sold mounted
on a motor | 17 | | vehicle required to be licensed if the selling price of the | 18 | | tender
is separately stated.
| 19 | | Farm machinery and equipment shall include precision | 20 | | farming equipment
that is
installed or purchased to be | 21 | | installed on farm machinery and equipment
including, but not | 22 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 23 | | or spreaders.
Precision farming equipment includes, but is not | 24 | | limited to, soil testing
sensors, computers, monitors, | 25 | | software, global positioning
and mapping systems, and other | 26 | | such equipment.
|
| | | HB5316 | - 5 - | LRB100 16845 HLH 31986 b |
|
| 1 | | Farm machinery and equipment also includes computers, | 2 | | sensors, software, and
related equipment used primarily in the
| 3 | | computer-assisted operation of production agriculture | 4 | | facilities, equipment,
and
activities such as, but not limited | 5 | | to,
the collection, monitoring, and correlation of
animal and | 6 | | crop data for the purpose of
formulating animal diets and | 7 | | agricultural chemicals. This item (11) is exempt
from the | 8 | | provisions of
Section 3-90.
| 9 | | (12) Until June 30, 2013, fuel and petroleum products sold | 10 | | to or used by an air common
carrier, certified by the carrier | 11 | | to be used for consumption, shipment, or
storage in the conduct | 12 | | of its business as an air common carrier, for a
flight destined | 13 | | for or returning from a location or locations
outside the | 14 | | United States without regard to previous or subsequent domestic
| 15 | | stopovers.
| 16 | | Beginning July 1, 2013, fuel and petroleum products sold to | 17 | | or used by an air carrier, certified by the carrier to be used | 18 | | for consumption, shipment, or storage in the conduct of its | 19 | | business as an air common carrier, for a flight that (i) is | 20 | | engaged in foreign trade or is engaged in trade between the | 21 | | United States and any of its possessions and (ii) transports at | 22 | | least one individual or package for hire from the city of | 23 | | origination to the city of final destination on the same | 24 | | aircraft, without regard to a change in the flight number of | 25 | | that aircraft. | 26 | | (13) Proceeds of mandatory service charges separately
|
| | | HB5316 | - 6 - | LRB100 16845 HLH 31986 b |
|
| 1 | | stated on customers' bills for the purchase and consumption of | 2 | | food and
beverages purchased at retail from a retailer, to the | 3 | | extent that the proceeds
of the service charge are in fact | 4 | | turned over as tips or as a substitute
for tips to the | 5 | | employees who participate directly in preparing, serving,
| 6 | | hosting or cleaning up the food or beverage function with | 7 | | respect to which
the service charge is imposed.
| 8 | | (14) Until July 1, 2003, oil field exploration, drilling, | 9 | | and production
equipment,
including (i) rigs and parts of rigs, | 10 | | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | 11 | | tubular goods,
including casing and drill strings, (iii) pumps | 12 | | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | 13 | | individual replacement part for oil
field exploration, | 14 | | drilling, and production equipment, and (vi) machinery and
| 15 | | equipment purchased
for lease; but excluding motor vehicles | 16 | | required to be registered under the
Illinois Vehicle Code.
| 17 | | (15) Photoprocessing machinery and equipment, including | 18 | | repair and
replacement parts, both new and used, including that
| 19 | | manufactured on special order, certified by the purchaser to be | 20 | | used
primarily for photoprocessing, and including
| 21 | | photoprocessing machinery and equipment purchased for lease.
| 22 | | (16) Coal and aggregate exploration, mining, off-highway | 23 | | hauling,
processing, maintenance, and reclamation equipment,
| 24 | | including replacement parts and equipment, and
including | 25 | | equipment purchased for lease, but excluding motor
vehicles | 26 | | required to be registered under the Illinois Vehicle Code. The |
| | | HB5316 | - 7 - | LRB100 16845 HLH 31986 b |
|
| 1 | | changes made to this Section by Public Act 97-767 apply on and | 2 | | after July 1, 2003, but no claim for credit or refund is | 3 | | allowed on or after August 16, 2013 (the effective date of | 4 | | Public Act 98-456)
for such taxes paid during the period | 5 | | beginning July 1, 2003 and ending on August 16, 2013 (the | 6 | | effective date of Public Act 98-456). This item (16) is exempt | 7 | | from the provisions of Section 3-90.
| 8 | | (17) Until July 1, 2003, distillation machinery and | 9 | | equipment, sold as a
unit or kit,
assembled or installed by the | 10 | | retailer, certified by the user to be used
only for the | 11 | | production of ethyl alcohol that will be used for consumption
| 12 | | as motor fuel or as a component of motor fuel for the personal | 13 | | use of the
user, and not subject to sale or resale.
| 14 | | (18) Manufacturing and assembling machinery and equipment | 15 | | used
primarily in the process of manufacturing or assembling | 16 | | tangible
personal property for wholesale or retail sale or | 17 | | lease, whether that sale
or lease is made directly by the | 18 | | manufacturer or by some other person,
whether the materials | 19 | | used in the process are
owned by the manufacturer or some other | 20 | | person, or whether that sale or
lease is made apart from or as | 21 | | an incident to the seller's engaging in
the service occupation | 22 | | of producing machines, tools, dies, jigs,
patterns, gauges, or | 23 | | other similar items of no commercial value on
special order for | 24 | | a particular purchaser. The exemption provided by this | 25 | | paragraph (18) does not include machinery and equipment used in | 26 | | (i) the generation of electricity for wholesale or retail sale; |
| | | HB5316 | - 8 - | LRB100 16845 HLH 31986 b |
|
| 1 | | (ii) the generation or treatment of natural or artificial gas | 2 | | for wholesale or retail sale that is delivered to customers | 3 | | through pipes, pipelines, or mains; or (iii) the treatment of | 4 | | water for wholesale or retail sale that is delivered to | 5 | | customers through pipes, pipelines, or mains. The provisions of | 6 | | Public Act 98-583 are declaratory of existing law as to the | 7 | | meaning and scope of this exemption. Beginning on July 1, 2017, | 8 | | the exemption provided by this paragraph (18) includes, but is | 9 | | not limited to, graphic arts machinery and equipment, as | 10 | | defined in paragraph (6) of this Section.
| 11 | | (19) Personal property delivered to a purchaser or | 12 | | purchaser's donee
inside Illinois when the purchase order for | 13 | | that personal property was
received by a florist located | 14 | | outside Illinois who has a florist located
inside Illinois | 15 | | deliver the personal property.
| 16 | | (20) Semen used for artificial insemination of livestock | 17 | | for direct
agricultural production.
| 18 | | (21) Horses, or interests in horses, registered with and | 19 | | meeting the
requirements of any of the
Arabian Horse Club | 20 | | Registry of America, Appaloosa Horse Club, American Quarter
| 21 | | Horse Association, United States
Trotting Association, or | 22 | | Jockey Club, as appropriate, used for
purposes of breeding or | 23 | | racing for prizes. This item (21) is exempt from the provisions | 24 | | of Section 3-90, and the exemption provided for under this item | 25 | | (21) applies for all periods beginning May 30, 1995, but no | 26 | | claim for credit or refund is allowed on or after January 1, |
| | | HB5316 | - 9 - | LRB100 16845 HLH 31986 b |
|
| 1 | | 2008
for such taxes paid during the period beginning May 30, | 2 | | 2000 and ending on January 1, 2008.
| 3 | | (22) Computers and communications equipment utilized for | 4 | | any
hospital
purpose
and equipment used in the diagnosis,
| 5 | | analysis, or treatment of hospital patients purchased by a | 6 | | lessor who leases
the
equipment, under a lease of one year or | 7 | | longer executed or in effect at the
time the lessor would | 8 | | otherwise be subject to the tax imposed by this Act, to a
| 9 | | hospital
that has been issued an active tax exemption | 10 | | identification number by
the
Department under Section 1g of the | 11 | | Retailers' Occupation Tax Act. If the
equipment is leased in a | 12 | | manner that does not qualify for
this exemption or is used in | 13 | | any other non-exempt manner, the lessor
shall be liable for the
| 14 | | tax imposed under this Act or the Service Use Tax Act, as the | 15 | | case may
be, based on the fair market value of the property at | 16 | | the time the
non-qualifying use occurs. No lessor shall collect | 17 | | or attempt to collect an
amount (however
designated) that | 18 | | purports to reimburse that lessor for the tax imposed by this
| 19 | | Act or the Service Use Tax Act, as the case may be, if the tax | 20 | | has not been
paid by the lessor. If a lessor improperly | 21 | | collects any such amount from the
lessee, the lessee shall have | 22 | | a legal right to claim a refund of that amount
from the lessor. | 23 | | If, however, that amount is not refunded to the lessee for
any | 24 | | reason, the lessor is liable to pay that amount to the | 25 | | Department.
| 26 | | (23) Personal property purchased by a lessor who leases the
|
| | | HB5316 | - 10 - | LRB100 16845 HLH 31986 b |
|
| 1 | | property, under
a
lease of
one year or longer executed or in | 2 | | effect at the time
the lessor would otherwise be subject to the | 3 | | tax imposed by this Act,
to a governmental body
that has been | 4 | | issued an active sales tax exemption identification number by | 5 | | the
Department under Section 1g of the Retailers' Occupation | 6 | | Tax Act.
If the
property is leased in a manner that does not | 7 | | qualify for
this exemption
or used in any other non-exempt | 8 | | manner, the lessor shall be liable for the
tax imposed under | 9 | | this Act or the Service Use Tax Act, as the case may
be, based | 10 | | on the fair market value of the property at the time the
| 11 | | non-qualifying use occurs. No lessor shall collect or attempt | 12 | | to collect an
amount (however
designated) that purports to | 13 | | reimburse that lessor for the tax imposed by this
Act or the | 14 | | Service Use Tax Act, as the case may be, if the tax has not been
| 15 | | paid by the lessor. If a lessor improperly collects any such | 16 | | amount from the
lessee, the lessee shall have a legal right to | 17 | | claim a refund of that amount
from the lessor. If, however, | 18 | | that amount is not refunded to the lessee for
any reason, the | 19 | | lessor is liable to pay that amount to the Department.
| 20 | | (24) Beginning with taxable years ending on or after | 21 | | December
31, 1995
and
ending with taxable years ending on or | 22 | | before December 31, 2004,
personal property that is
donated for | 23 | | disaster relief to be used in a State or federally declared
| 24 | | disaster area in Illinois or bordering Illinois by a | 25 | | manufacturer or retailer
that is registered in this State to a | 26 | | corporation, society, association,
foundation, or institution |
| | | HB5316 | - 11 - | LRB100 16845 HLH 31986 b |
|
| 1 | | that has been issued a sales tax exemption
identification | 2 | | number by the Department that assists victims of the disaster
| 3 | | who reside within the declared disaster area.
| 4 | | (25) Beginning with taxable years ending on or after | 5 | | December
31, 1995 and
ending with taxable years ending on or | 6 | | before December 31, 2004, personal
property that is used in the | 7 | | performance of infrastructure repairs in this
State, including | 8 | | but not limited to municipal roads and streets, access roads,
| 9 | | bridges, sidewalks, waste disposal systems, water and sewer | 10 | | line extensions,
water distribution and purification | 11 | | facilities, storm water drainage and
retention facilities, and | 12 | | sewage treatment facilities, resulting from a State
or | 13 | | federally declared disaster in Illinois or bordering Illinois | 14 | | when such
repairs are initiated on facilities located in the | 15 | | declared disaster area
within 6 months after the disaster.
| 16 | | (26) Beginning July 1, 1999, game or game birds purchased | 17 | | at a "game
breeding
and hunting preserve area" as that term is
| 18 | | used in
the Wildlife Code. This paragraph is exempt from the | 19 | | provisions
of
Section 3-90.
| 20 | | (27) A motor vehicle, as that term is defined in Section | 21 | | 1-146
of the
Illinois
Vehicle Code, that is donated to a | 22 | | corporation, limited liability company,
society, association, | 23 | | foundation, or institution that is determined by the
Department | 24 | | to be organized and operated exclusively for educational | 25 | | purposes.
For purposes of this exemption, "a corporation, | 26 | | limited liability company,
society, association, foundation, |
| | | HB5316 | - 12 - | LRB100 16845 HLH 31986 b |
|
| 1 | | or institution organized and operated
exclusively for | 2 | | educational purposes" means all tax-supported public schools,
| 3 | | private schools that offer systematic instruction in useful | 4 | | branches of
learning by methods common to public schools and | 5 | | that compare favorably in
their scope and intensity with the | 6 | | course of study presented in tax-supported
schools, and | 7 | | vocational or technical schools or institutes organized and
| 8 | | operated exclusively to provide a course of study of not less | 9 | | than 6 weeks
duration and designed to prepare individuals to | 10 | | follow a trade or to pursue a
manual, technical, mechanical, | 11 | | industrial, business, or commercial
occupation.
| 12 | | (28) Beginning January 1, 2000, personal property, | 13 | | including
food,
purchased through fundraising
events for the | 14 | | benefit of
a public or private elementary or
secondary school, | 15 | | a group of those schools, or one or more school
districts if | 16 | | the events are
sponsored by an entity recognized by the school | 17 | | district that consists
primarily of volunteers and includes
| 18 | | parents and teachers of the school children. This paragraph | 19 | | does not apply
to fundraising
events (i) for the benefit of | 20 | | private home instruction or (ii)
for which the fundraising | 21 | | entity purchases the personal property sold at
the events from | 22 | | another individual or entity that sold the property for the
| 23 | | purpose of resale by the fundraising entity and that
profits | 24 | | from the sale to the
fundraising entity. This paragraph is | 25 | | exempt
from the provisions
of Section 3-90.
| 26 | | (29) Beginning January 1, 2000 and through December 31, |
| | | HB5316 | - 13 - | LRB100 16845 HLH 31986 b |
|
| 1 | | 2001, new or
used automatic vending
machines that prepare and | 2 | | serve hot food and beverages, including coffee, soup,
and
other | 3 | | items, and replacement parts for these machines.
Beginning | 4 | | January 1,
2002 and through June 30, 2003, machines and parts | 5 | | for machines used in
commercial, coin-operated amusement and | 6 | | vending business if a use or occupation
tax is paid on the | 7 | | gross receipts derived from the use of the commercial,
| 8 | | coin-operated amusement and vending machines.
This
paragraph
| 9 | | is exempt from the provisions of Section 3-90.
| 10 | | (30) Beginning January 1, 2001 and through June 30, 2016, | 11 | | food for human consumption that is to be consumed off the | 12 | | premises
where it is sold (other than alcoholic beverages, soft | 13 | | drinks, and food that
has been prepared for immediate | 14 | | consumption) and prescription and
nonprescription medicines, | 15 | | drugs, medical appliances, and insulin, urine
testing | 16 | | materials, syringes, and needles used by diabetics, for human | 17 | | use, when
purchased for use by a person receiving medical | 18 | | assistance under Article V of
the Illinois Public Aid Code who | 19 | | resides in a licensed long-term care facility,
as defined in | 20 | | the Nursing Home Care Act, or in a licensed facility as defined | 21 | | in the ID/DD Community Care Act, the MC/DD Act, or the | 22 | | Specialized Mental Health Rehabilitation Act of 2013.
| 23 | | (31) Beginning on August 2, 2001 ( the effective date of | 24 | | Public Act 92-227) this amendatory Act of the 92nd General | 25 | | Assembly ,
computers and communications equipment
utilized for | 26 | | any hospital purpose and equipment used in the diagnosis,
|
| | | HB5316 | - 14 - | LRB100 16845 HLH 31986 b |
|
| 1 | | analysis, or treatment of hospital patients purchased by a | 2 | | lessor who leases
the equipment, under a lease of one year or | 3 | | longer executed or in effect at the
time the lessor would | 4 | | otherwise be subject to the tax imposed by this Act, to a
| 5 | | hospital that has been issued an active tax exemption | 6 | | identification number by
the Department under Section 1g of the | 7 | | Retailers' Occupation Tax Act. If the
equipment is leased in a | 8 | | manner that does not qualify for this exemption or is
used in | 9 | | any other nonexempt manner, the lessor shall be liable for the | 10 | | tax
imposed under this Act or the Service Use Tax Act, as the | 11 | | case may be, based on
the fair market value of the property at | 12 | | the time the nonqualifying use
occurs. No lessor shall collect | 13 | | or attempt to collect an amount (however
designated) that | 14 | | purports to reimburse that lessor for the tax imposed by this
| 15 | | Act or the Service Use Tax Act, as the case may be, if the tax | 16 | | has not been
paid by the lessor. If a lessor improperly | 17 | | collects any such amount from the
lessee, the lessee shall have | 18 | | a legal right to claim a refund of that amount
from the lessor. | 19 | | If, however, that amount is not refunded to the lessee for
any | 20 | | reason, the lessor is liable to pay that amount to the | 21 | | Department.
This paragraph is exempt from the provisions of | 22 | | Section 3-90.
| 23 | | (32) Beginning on August 2, 2001 ( the effective date of | 24 | | Public Act 92-227) this amendatory Act of the 92nd General | 25 | | Assembly ,
personal property purchased by a lessor who leases | 26 | | the property,
under a lease of one year or longer executed or |
| | | HB5316 | - 15 - | LRB100 16845 HLH 31986 b |
|
| 1 | | in effect at the time the
lessor would otherwise be subject to | 2 | | the tax imposed by this Act, to a
governmental body that has | 3 | | been issued an active sales tax exemption
identification number | 4 | | by the Department under Section 1g of the Retailers'
Occupation | 5 | | Tax Act. If the property is leased in a manner that does not
| 6 | | qualify for this exemption or used in any other nonexempt | 7 | | manner, the lessor
shall be liable for the tax imposed under | 8 | | this Act or the Service Use Tax Act,
as the case may be, based | 9 | | on the fair market value of the property at the time
the | 10 | | nonqualifying use occurs. No lessor shall collect or attempt to | 11 | | collect
an amount (however designated) that purports to | 12 | | reimburse that lessor for the
tax imposed by this Act or the | 13 | | Service Use Tax Act, as the case may be, if the
tax has not been | 14 | | paid by the lessor. If a lessor improperly collects any such
| 15 | | amount from the lessee, the lessee shall have a legal right to | 16 | | claim a refund
of that amount from the lessor. If, however, | 17 | | that amount is not refunded to
the lessee for any reason, the | 18 | | lessor is liable to pay that amount to the
Department. This | 19 | | paragraph is exempt from the provisions of Section 3-90.
| 20 | | (33) On and after July 1, 2003 and through June 30, 2004, | 21 | | the use in this State of motor vehicles of
the second division | 22 | | with a gross vehicle weight in excess of 8,000 pounds and
that | 23 | | are subject to the commercial distribution fee imposed under | 24 | | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | 25 | | 1, 2004 and through June 30, 2005, the use in this State of | 26 | | motor vehicles of the second division: (i) with a gross vehicle |
| | | HB5316 | - 16 - | LRB100 16845 HLH 31986 b |
|
| 1 | | weight rating in excess of 8,000 pounds; (ii) that are subject | 2 | | to the commercial distribution fee imposed under Section | 3 | | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | 4 | | primarily used for commercial purposes. Through June 30, 2005, | 5 | | this exemption applies to repair and
replacement parts added | 6 | | after the initial purchase of such a motor vehicle if
that | 7 | | motor
vehicle is used in a manner that would qualify for the | 8 | | rolling stock exemption
otherwise provided for in this Act. For | 9 | | purposes of this paragraph, the term "used for commercial | 10 | | purposes" means the transportation of persons or property in | 11 | | furtherance of any commercial or industrial enterprise, | 12 | | whether for-hire or not.
| 13 | | (34) Beginning January 1, 2008, tangible personal property | 14 | | used in the construction or maintenance of a community water | 15 | | supply, as defined under Section 3.145 of the Environmental | 16 | | Protection Act, that is operated by a not-for-profit | 17 | | corporation that holds a valid water supply permit issued under | 18 | | Title IV of the Environmental Protection Act. This paragraph is | 19 | | exempt from the provisions of Section 3-90. | 20 | | (35) Beginning January 1, 2010, materials, parts, | 21 | | equipment, components, and furnishings incorporated into or | 22 | | upon an aircraft as part of the modification, refurbishment, | 23 | | completion, replacement, repair, or maintenance of the | 24 | | aircraft. This exemption includes consumable supplies used in | 25 | | the modification, refurbishment, completion, replacement, | 26 | | repair, and maintenance of aircraft, but excludes any |
| | | HB5316 | - 17 - | LRB100 16845 HLH 31986 b |
|
| 1 | | materials, parts, equipment, components, and consumable | 2 | | supplies used in the modification, replacement, repair, and | 3 | | maintenance of aircraft engines or power plants, whether such | 4 | | engines or power plants are installed or uninstalled upon any | 5 | | such aircraft. "Consumable supplies" include, but are not | 6 | | limited to, adhesive, tape, sandpaper, general purpose | 7 | | lubricants, cleaning solution, latex gloves, and protective | 8 | | films. This exemption applies only to the use of qualifying | 9 | | tangible personal property by persons who modify, refurbish, | 10 | | complete, repair, replace, or maintain aircraft and who (i) | 11 | | hold an Air Agency Certificate and are empowered to operate an | 12 | | approved repair station by the Federal Aviation | 13 | | Administration, (ii) have a Class IV Rating, and (iii) conduct | 14 | | operations in accordance with Part 145 of the Federal Aviation | 15 | | Regulations. The exemption does not include aircraft operated | 16 | | by a commercial air carrier providing scheduled passenger air | 17 | | service pursuant to authority issued under Part 121 or Part 129 | 18 | | of the Federal Aviation Regulations. The changes made to this | 19 | | paragraph (35) by Public Act 98-534 are declarative of existing | 20 | | law. | 21 | | (36) Tangible personal property purchased by a | 22 | | public-facilities corporation, as described in Section | 23 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 24 | | constructing or furnishing a municipal convention hall, but | 25 | | only if the legal title to the municipal convention hall is | 26 | | transferred to the municipality without any further |
| | | HB5316 | - 18 - | LRB100 16845 HLH 31986 b |
|
| 1 | | consideration by or on behalf of the municipality at the time | 2 | | of the completion of the municipal convention hall or upon the | 3 | | retirement or redemption of any bonds or other debt instruments | 4 | | issued by the public-facilities corporation in connection with | 5 | | the development of the municipal convention hall. This | 6 | | exemption includes existing public-facilities corporations as | 7 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 8 | | This paragraph is exempt from the provisions of Section 3-90. | 9 | | (37) Beginning January 1, 2017, menstrual pads, tampons, | 10 | | and menstrual cups. | 11 | | (38) Merchandise that is subject to the Rental Purchase | 12 | | Agreement Occupation and Use Tax. The purchaser must certify | 13 | | that the item is purchased to be rented subject to a rental | 14 | | purchase agreement, as defined in the Rental Purchase Agreement | 15 | | Act, and provide proof of registration under the Rental | 16 | | Purchase Agreement Occupation and Use Tax Act. This paragraph | 17 | | is exempt from the provisions of Section 3-90. | 18 | | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | 19 | | 100-22, eff. 7-6-17; 100-437, eff. 1-1-18; revised 9-27-17.)
| 20 | | Section 10. The Service Use Tax Act is amended by changing | 21 | | Section 3-5 as follows:
| 22 | | (35 ILCS 110/3-5)
| 23 | | Sec. 3-5. Exemptions. Use of the following tangible | 24 | | personal property
is exempt from the tax imposed by this Act:
|
| | | HB5316 | - 19 - | LRB100 16845 HLH 31986 b |
|
| 1 | | (1) Personal property purchased from a corporation, | 2 | | society,
association, foundation, institution, or | 3 | | organization, other than a limited
liability company, that is | 4 | | organized and operated as a not-for-profit service
enterprise | 5 | | for the benefit of persons 65 years of age or older if the | 6 | | personal
property was not purchased by the enterprise for the | 7 | | purpose of resale by the
enterprise.
| 8 | | (2) Personal property purchased by a non-profit Illinois | 9 | | county fair
association for use in conducting, operating, or | 10 | | promoting the county fair.
| 11 | | (3) Personal property purchased by a not-for-profit arts
or | 12 | | cultural
organization that establishes, by proof required by | 13 | | the Department by rule,
that it has received an exemption under | 14 | | Section 501(c)(3) of the Internal
Revenue Code and that is | 15 | | organized and operated primarily for the
presentation
or | 16 | | support of arts or cultural programming, activities, or | 17 | | services. These
organizations include, but are not limited to, | 18 | | music and dramatic arts
organizations such as symphony | 19 | | orchestras and theatrical groups, arts and
cultural service | 20 | | organizations, local arts councils, visual arts organizations,
| 21 | | and media arts organizations.
On and after the effective date | 22 | | of this amendatory Act of the 92nd General
Assembly, however, | 23 | | an entity otherwise eligible for this exemption shall not
make | 24 | | tax-free purchases unless it has an active identification | 25 | | number issued by
the Department.
| 26 | | (4) Legal tender, currency, medallions, or gold or silver |
| | | HB5316 | - 20 - | LRB100 16845 HLH 31986 b |
|
| 1 | | coinage issued
by the State of Illinois, the government of the | 2 | | United States of America,
or the government of any foreign | 3 | | country, and bullion.
| 4 | | (5) Until July 1, 2003 and beginning again on September 1, | 5 | | 2004 through August 30, 2014, graphic arts machinery and | 6 | | equipment, including
repair and
replacement parts, both new and | 7 | | used, and including that manufactured on
special order or | 8 | | purchased for lease, certified by the purchaser to be used
| 9 | | primarily for graphic arts production.
Equipment includes | 10 | | chemicals or
chemicals acting as catalysts but only if
the | 11 | | chemicals or chemicals acting as catalysts effect a direct and | 12 | | immediate
change upon a graphic arts product. Beginning on July | 13 | | 1, 2017, graphic arts machinery and equipment is included in | 14 | | the manufacturing and assembling machinery and equipment | 15 | | exemption under Section 2 of this Act.
| 16 | | (6) Personal property purchased from a teacher-sponsored | 17 | | student
organization affiliated with an elementary or | 18 | | secondary school located
in Illinois.
| 19 | | (7) Farm machinery and equipment, both new and used, | 20 | | including that
manufactured on special order, certified by the | 21 | | purchaser to be used
primarily for production agriculture or | 22 | | State or federal agricultural
programs, including individual | 23 | | replacement parts for the machinery and
equipment, including | 24 | | machinery and equipment purchased for lease,
and including | 25 | | implements of husbandry defined in Section 1-130 of
the | 26 | | Illinois Vehicle Code, farm machinery and agricultural |
| | | HB5316 | - 21 - | LRB100 16845 HLH 31986 b |
|
| 1 | | chemical and
fertilizer spreaders, and nurse wagons required to | 2 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 3 | | but
excluding other motor vehicles required to be registered | 4 | | under the Illinois
Vehicle Code.
Horticultural polyhouses or | 5 | | hoop houses used for propagating, growing, or
overwintering | 6 | | plants shall be considered farm machinery and equipment under
| 7 | | this item (7).
Agricultural chemical tender tanks and dry boxes | 8 | | shall include units sold
separately from a motor vehicle | 9 | | required to be licensed and units sold mounted
on a motor | 10 | | vehicle required to be licensed if the selling price of the | 11 | | tender
is separately stated.
| 12 | | Farm machinery and equipment shall include precision | 13 | | farming equipment
that is
installed or purchased to be | 14 | | installed on farm machinery and equipment
including, but not | 15 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 16 | | or spreaders.
Precision farming equipment includes, but is not | 17 | | limited to,
soil testing sensors, computers, monitors, | 18 | | software, global positioning
and mapping systems, and other | 19 | | such equipment.
| 20 | | Farm machinery and equipment also includes computers, | 21 | | sensors, software, and
related equipment used primarily in the
| 22 | | computer-assisted operation of production agriculture | 23 | | facilities, equipment,
and activities such as, but
not limited | 24 | | to,
the collection, monitoring, and correlation of
animal and | 25 | | crop data for the purpose of
formulating animal diets and | 26 | | agricultural chemicals. This item (7) is exempt
from the |
| | | HB5316 | - 22 - | LRB100 16845 HLH 31986 b |
|
| 1 | | provisions of
Section 3-75.
| 2 | | (8) Until June 30, 2013, fuel and petroleum products sold | 3 | | to or used by an air common
carrier, certified by the carrier | 4 | | to be used for consumption, shipment, or
storage in the conduct | 5 | | of its business as an air common carrier, for a
flight destined | 6 | | for or returning from a location or locations
outside the | 7 | | United States without regard to previous or subsequent domestic
| 8 | | stopovers.
| 9 | | Beginning July 1, 2013, fuel and petroleum products sold to | 10 | | or used by an air carrier, certified by the carrier to be used | 11 | | for consumption, shipment, or storage in the conduct of its | 12 | | business as an air common carrier, for a flight that (i) is | 13 | | engaged in foreign trade or is engaged in trade between the | 14 | | United States and any of its possessions and (ii) transports at | 15 | | least one individual or package for hire from the city of | 16 | | origination to the city of final destination on the same | 17 | | aircraft, without regard to a change in the flight number of | 18 | | that aircraft. | 19 | | (9) Proceeds of mandatory service charges separately | 20 | | stated on
customers' bills for the purchase and consumption of | 21 | | food and beverages
acquired as an incident to the purchase of a | 22 | | service from a serviceman, to
the extent that the proceeds of | 23 | | the service charge are in fact
turned over as tips or as a | 24 | | substitute for tips to the employees who
participate directly | 25 | | in preparing, serving, hosting or cleaning up the
food or | 26 | | beverage function with respect to which the service charge is |
| | | HB5316 | - 23 - | LRB100 16845 HLH 31986 b |
|
| 1 | | imposed.
| 2 | | (10) Until July 1, 2003, oil field exploration, drilling, | 3 | | and production
equipment, including
(i) rigs and parts of rigs, | 4 | | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 5 | | tubular goods, including casing and
drill strings, (iii) pumps | 6 | | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 7 | | individual replacement part for oil field exploration,
| 8 | | drilling, and production equipment, and (vi) machinery and | 9 | | equipment purchased
for lease; but
excluding motor vehicles | 10 | | required to be registered under the Illinois
Vehicle Code.
| 11 | | (11) Proceeds from the sale of photoprocessing machinery | 12 | | and
equipment, including repair and replacement parts, both new | 13 | | and
used, including that manufactured on special order, | 14 | | certified by the
purchaser to be used primarily for | 15 | | photoprocessing, and including
photoprocessing machinery and | 16 | | equipment purchased for lease.
| 17 | | (12) Coal and aggregate exploration, mining, off-highway | 18 | | hauling,
processing,
maintenance, and reclamation equipment, | 19 | | including
replacement parts and equipment, and including
| 20 | | equipment purchased for lease, but excluding motor vehicles | 21 | | required to be
registered under the Illinois Vehicle Code. The | 22 | | changes made to this Section by Public Act 97-767 apply on and | 23 | | after July 1, 2003, but no claim for credit or refund is | 24 | | allowed on or after August 16, 2013 (the effective date of | 25 | | Public Act 98-456)
for such taxes paid during the period | 26 | | beginning July 1, 2003 and ending on August 16, 2013 (the |
| | | HB5316 | - 24 - | LRB100 16845 HLH 31986 b |
|
| 1 | | effective date of Public Act 98-456). This item (12) is exempt | 2 | | from the provisions of Section 3-75.
| 3 | | (13) Semen used for artificial insemination of livestock | 4 | | for direct
agricultural production.
| 5 | | (14) Horses, or interests in horses, registered with and | 6 | | meeting the
requirements of any of the
Arabian Horse Club | 7 | | Registry of America, Appaloosa Horse Club, American Quarter
| 8 | | Horse Association, United States
Trotting Association, or | 9 | | Jockey Club, as appropriate, used for
purposes of breeding or | 10 | | racing for prizes. This item (14) is exempt from the provisions | 11 | | of Section 3-75, and the exemption provided for under this item | 12 | | (14) applies for all periods beginning May 30, 1995, but no | 13 | | claim for credit or refund is allowed on or after the effective | 14 | | date of this amendatory Act of the 95th General Assembly for | 15 | | such taxes paid during the period beginning May 30, 2000 and | 16 | | ending on the effective date of this amendatory Act of the 95th | 17 | | General Assembly.
| 18 | | (15) Computers and communications equipment utilized for | 19 | | any
hospital
purpose
and equipment used in the diagnosis,
| 20 | | analysis, or treatment of hospital patients purchased by a | 21 | | lessor who leases
the
equipment, under a lease of one year or | 22 | | longer executed or in effect at the
time
the lessor would | 23 | | otherwise be subject to the tax imposed by this Act,
to a
| 24 | | hospital
that has been issued an active tax exemption | 25 | | identification number by the
Department under Section 1g of the | 26 | | Retailers' Occupation Tax Act.
If the
equipment is leased in a |
| | | HB5316 | - 25 - | LRB100 16845 HLH 31986 b |
|
| 1 | | manner that does not qualify for
this exemption
or is used in | 2 | | any other non-exempt manner,
the lessor shall be liable for the
| 3 | | tax imposed under this Act or the Use Tax Act, as the case may
| 4 | | be, based on the fair market value of the property at the time | 5 | | the
non-qualifying use occurs. No lessor shall collect or | 6 | | attempt to collect an
amount (however
designated) that purports | 7 | | to reimburse that lessor for the tax imposed by this
Act or the | 8 | | Use Tax Act, as the case may be, if the tax has not been
paid by | 9 | | the lessor. If a lessor improperly collects any such amount | 10 | | from the
lessee, the lessee shall have a legal right to claim a | 11 | | refund of that amount
from the lessor. If, however, that amount | 12 | | is not refunded to the lessee for
any reason, the lessor is | 13 | | liable to pay that amount to the Department.
| 14 | | (16) Personal property purchased by a lessor who leases the
| 15 | | property, under
a
lease of one year or longer executed or in | 16 | | effect at the time
the lessor would otherwise be subject to the | 17 | | tax imposed by this Act,
to a governmental body
that has been | 18 | | issued an active tax exemption identification number by the
| 19 | | Department under Section 1g of the Retailers' Occupation Tax | 20 | | Act.
If the
property is leased in a manner that does not | 21 | | qualify for
this exemption
or is used in any other non-exempt | 22 | | manner,
the lessor shall be liable for the
tax imposed under | 23 | | this Act or the Use Tax Act, as the case may
be, based on the | 24 | | fair market value of the property at the time the
| 25 | | non-qualifying use occurs. No lessor shall collect or attempt | 26 | | to collect an
amount (however
designated) that purports to |
| | | HB5316 | - 26 - | LRB100 16845 HLH 31986 b |
|
| 1 | | reimburse that lessor for the tax imposed by this
Act or the | 2 | | Use Tax Act, as the case may be, if the tax has not been
paid by | 3 | | the lessor. If a lessor improperly collects any such amount | 4 | | from the
lessee, the lessee shall have a legal right to claim a | 5 | | refund of that amount
from the lessor. If, however, that amount | 6 | | is not refunded to the lessee for
any reason, the lessor is | 7 | | liable to pay that amount to the Department.
| 8 | | (17) Beginning with taxable years ending on or after | 9 | | December
31,
1995
and
ending with taxable years ending on or | 10 | | before December 31, 2004,
personal property that is
donated for | 11 | | disaster relief to be used in a State or federally declared
| 12 | | disaster area in Illinois or bordering Illinois by a | 13 | | manufacturer or retailer
that is registered in this State to a | 14 | | corporation, society, association,
foundation, or institution | 15 | | that has been issued a sales tax exemption
identification | 16 | | number by the Department that assists victims of the disaster
| 17 | | who reside within the declared disaster area.
| 18 | | (18) Beginning with taxable years ending on or after | 19 | | December
31, 1995 and
ending with taxable years ending on or | 20 | | before December 31, 2004, personal
property that is used in the | 21 | | performance of infrastructure repairs in this
State, including | 22 | | but not limited to municipal roads and streets, access roads,
| 23 | | bridges, sidewalks, waste disposal systems, water and sewer | 24 | | line extensions,
water distribution and purification | 25 | | facilities, storm water drainage and
retention facilities, and | 26 | | sewage treatment facilities, resulting from a State
or |
| | | HB5316 | - 27 - | LRB100 16845 HLH 31986 b |
|
| 1 | | federally declared disaster in Illinois or bordering Illinois | 2 | | when such
repairs are initiated on facilities located in the | 3 | | declared disaster area
within 6 months after the disaster.
| 4 | | (19) Beginning July 1, 1999, game or game birds purchased | 5 | | at a "game
breeding
and hunting preserve area" as that term is
| 6 | | used in
the Wildlife Code. This paragraph is exempt from the | 7 | | provisions
of
Section 3-75.
| 8 | | (20) A motor vehicle, as that term is defined in Section | 9 | | 1-146
of the
Illinois Vehicle Code, that is donated to a | 10 | | corporation, limited liability
company, society, association, | 11 | | foundation, or institution that is determined by
the Department | 12 | | to be organized and operated exclusively for educational
| 13 | | purposes. For purposes of this exemption, "a corporation, | 14 | | limited liability
company, society, association, foundation, | 15 | | or institution organized and
operated
exclusively for | 16 | | educational purposes" means all tax-supported public schools,
| 17 | | private schools that offer systematic instruction in useful | 18 | | branches of
learning by methods common to public schools and | 19 | | that compare favorably in
their scope and intensity with the | 20 | | course of study presented in tax-supported
schools, and | 21 | | vocational or technical schools or institutes organized and
| 22 | | operated exclusively to provide a course of study of not less | 23 | | than 6 weeks
duration and designed to prepare individuals to | 24 | | follow a trade or to pursue a
manual, technical, mechanical, | 25 | | industrial, business, or commercial
occupation.
| 26 | | (21) Beginning January 1, 2000, personal property, |
| | | HB5316 | - 28 - | LRB100 16845 HLH 31986 b |
|
| 1 | | including
food,
purchased through fundraising
events for the | 2 | | benefit of
a public or private elementary or
secondary school, | 3 | | a group of those schools, or one or more school
districts if | 4 | | the events are
sponsored by an entity recognized by the school | 5 | | district that consists
primarily of volunteers and includes
| 6 | | parents and teachers of the school children. This paragraph | 7 | | does not apply
to fundraising
events (i) for the benefit of | 8 | | private home instruction or (ii)
for which the fundraising | 9 | | entity purchases the personal property sold at
the events from | 10 | | another individual or entity that sold the property for the
| 11 | | purpose of resale by the fundraising entity and that
profits | 12 | | from the sale to the
fundraising entity. This paragraph is | 13 | | exempt
from the provisions
of Section 3-75.
| 14 | | (22) Beginning January 1, 2000
and through December 31, | 15 | | 2001, new or used automatic vending
machines that prepare and | 16 | | serve hot food and beverages, including coffee, soup,
and
other | 17 | | items, and replacement parts for these machines.
Beginning | 18 | | January 1,
2002 and through June 30, 2003, machines and parts | 19 | | for machines used in
commercial, coin-operated
amusement
and | 20 | | vending business if a use or occupation tax is paid on the | 21 | | gross receipts
derived from
the use of the commercial, | 22 | | coin-operated amusement and vending machines.
This
paragraph
| 23 | | is exempt from the provisions of Section 3-75.
| 24 | | (23) Beginning August 23, 2001 and through June 30, 2016, | 25 | | food for human consumption that is to be consumed off the
| 26 | | premises
where it is sold (other than alcoholic beverages, soft |
| | | HB5316 | - 29 - | LRB100 16845 HLH 31986 b |
|
| 1 | | drinks, and food that
has been prepared for immediate | 2 | | consumption) and prescription and
nonprescription medicines, | 3 | | drugs, medical appliances, and insulin, urine
testing | 4 | | materials, syringes, and needles used by diabetics, for human | 5 | | use, when
purchased for use by a person receiving medical | 6 | | assistance under Article V of
the Illinois Public Aid Code who | 7 | | resides in a licensed long-term care facility,
as defined in | 8 | | the Nursing Home Care Act, or in a licensed facility as defined | 9 | | in the ID/DD Community Care Act, the MC/DD Act, or the | 10 | | Specialized Mental Health Rehabilitation Act of 2013.
| 11 | | (24) Beginning on the effective date of this amendatory Act | 12 | | of the 92nd
General Assembly, computers and communications | 13 | | equipment
utilized for any hospital purpose and equipment used | 14 | | in the diagnosis,
analysis, or treatment of hospital patients | 15 | | purchased by a lessor who leases
the equipment, under a lease | 16 | | of one year or longer executed or in effect at the
time the | 17 | | lessor would otherwise be subject to the tax imposed by this | 18 | | Act, to a
hospital that has been issued an active tax exemption | 19 | | identification number by
the Department under Section 1g of the | 20 | | Retailers' Occupation Tax Act. If the
equipment is leased in a | 21 | | manner that does not qualify for this exemption or is
used in | 22 | | any other nonexempt manner, the lessor shall be liable for the
| 23 | | tax imposed under this Act or the Use Tax Act, as the case may | 24 | | be, based on the
fair market value of the property at the time | 25 | | the nonqualifying use occurs.
No lessor shall collect or | 26 | | attempt to collect an amount (however
designated) that purports |
| | | HB5316 | - 30 - | LRB100 16845 HLH 31986 b |
|
| 1 | | to reimburse that lessor for the tax imposed by this
Act or the | 2 | | Use Tax Act, as the case may be, if the tax has not been
paid by | 3 | | the lessor. If a lessor improperly collects any such amount | 4 | | from the
lessee, the lessee shall have a legal right to claim a | 5 | | refund of that amount
from the lessor. If, however, that amount | 6 | | is not refunded to the lessee for
any reason, the lessor is | 7 | | liable to pay that amount to the Department.
This paragraph is | 8 | | exempt from the provisions of Section 3-75.
| 9 | | (25) Beginning
on the effective date of this amendatory Act | 10 | | of the 92nd General Assembly,
personal property purchased by a | 11 | | lessor
who leases the property, under a lease of one year or | 12 | | longer executed or in
effect at the time the lessor would | 13 | | otherwise be subject to the tax imposed by
this Act, to a | 14 | | governmental body that has been issued an active tax exemption
| 15 | | identification number by the Department under Section 1g of the | 16 | | Retailers'
Occupation Tax Act. If the property is leased in a | 17 | | manner that does not
qualify for this exemption or is used in | 18 | | any other nonexempt manner, the
lessor shall be liable for the | 19 | | tax imposed under this Act or the Use Tax Act,
as the case may | 20 | | be, based on the fair market value of the property at the time
| 21 | | the nonqualifying use occurs. No lessor shall collect or | 22 | | attempt to collect
an amount (however designated) that purports | 23 | | to reimburse that lessor for the
tax imposed by this Act or the | 24 | | Use Tax Act, as the case may be, if the tax has
not been paid by | 25 | | the lessor. If a lessor improperly collects any such amount
| 26 | | from the lessee, the lessee shall have a legal right to claim a |
| | | HB5316 | - 31 - | LRB100 16845 HLH 31986 b |
|
| 1 | | refund of that
amount from the lessor. If, however, that amount | 2 | | is not refunded to the lessee
for any reason, the lessor is | 3 | | liable to pay that amount to the Department.
This paragraph is | 4 | | exempt from the provisions of Section 3-75.
| 5 | | (26) Beginning January 1, 2008, tangible personal property | 6 | | used in the construction or maintenance of a community water | 7 | | supply, as defined under Section 3.145 of the Environmental | 8 | | Protection Act, that is operated by a not-for-profit | 9 | | corporation that holds a valid water supply permit issued under | 10 | | Title IV of the Environmental Protection Act. This paragraph is | 11 | | exempt from the provisions of Section 3-75.
| 12 | | (27) Beginning January 1, 2010, materials, parts, | 13 | | equipment, components, and furnishings incorporated into or | 14 | | upon an aircraft as part of the modification, refurbishment, | 15 | | completion, replacement, repair, or maintenance of the | 16 | | aircraft. This exemption includes consumable supplies used in | 17 | | the modification, refurbishment, completion, replacement, | 18 | | repair, and maintenance of aircraft, but excludes any | 19 | | materials, parts, equipment, components, and consumable | 20 | | supplies used in the modification, replacement, repair, and | 21 | | maintenance of aircraft engines or power plants, whether such | 22 | | engines or power plants are installed or uninstalled upon any | 23 | | such aircraft. "Consumable supplies" include, but are not | 24 | | limited to, adhesive, tape, sandpaper, general purpose | 25 | | lubricants, cleaning solution, latex gloves, and protective | 26 | | films. This exemption applies only to the use of qualifying |
| | | HB5316 | - 32 - | LRB100 16845 HLH 31986 b |
|
| 1 | | tangible personal property transferred incident to the | 2 | | modification, refurbishment, completion, replacement, repair, | 3 | | or maintenance of aircraft by persons who (i) hold an Air | 4 | | Agency Certificate and are empowered to operate an approved | 5 | | repair station by the Federal Aviation Administration, (ii) | 6 | | have a Class IV Rating, and (iii) conduct operations in | 7 | | accordance with Part 145 of the Federal Aviation Regulations. | 8 | | The exemption does not include aircraft operated by a | 9 | | commercial air carrier providing scheduled passenger air | 10 | | service pursuant to authority issued under Part 121 or Part 129 | 11 | | of the Federal Aviation Regulations. The changes made to this | 12 | | paragraph (27) by Public Act 98-534 are declarative of existing | 13 | | law. | 14 | | (28) Tangible personal property purchased by a | 15 | | public-facilities corporation, as described in Section | 16 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 17 | | constructing or furnishing a municipal convention hall, but | 18 | | only if the legal title to the municipal convention hall is | 19 | | transferred to the municipality without any further | 20 | | consideration by or on behalf of the municipality at the time | 21 | | of the completion of the municipal convention hall or upon the | 22 | | retirement or redemption of any bonds or other debt instruments | 23 | | issued by the public-facilities corporation in connection with | 24 | | the development of the municipal convention hall. This | 25 | | exemption includes existing public-facilities corporations as | 26 | | provided in Section 11-65-25 of the Illinois Municipal Code. |
| | | HB5316 | - 33 - | LRB100 16845 HLH 31986 b |
|
| 1 | | This paragraph is exempt from the provisions of Section 3-75. | 2 | | (29) Beginning January 1, 2017, menstrual pads, tampons, | 3 | | and menstrual cups. | 4 | | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | 5 | | 100-22, eff. 7-6-17.)
| 6 | | Section 15. The Service Occupation Tax Act is amended by | 7 | | changing Section 3-5 as follows:
| 8 | | (35 ILCS 115/3-5)
| 9 | | Sec. 3-5. Exemptions. The following tangible personal | 10 | | property is
exempt from the tax imposed by this Act:
| 11 | | (1) Personal property sold by a corporation, society, | 12 | | association,
foundation, institution, or organization, other | 13 | | than a limited liability
company, that is organized and | 14 | | operated as a not-for-profit service enterprise
for the benefit | 15 | | of persons 65 years of age or older if the personal property
| 16 | | was not purchased by the enterprise for the purpose of resale | 17 | | by the
enterprise.
| 18 | | (2) Personal property purchased by a not-for-profit | 19 | | Illinois county fair
association for use in conducting, | 20 | | operating, or promoting the county fair.
| 21 | | (3) Personal property purchased by any not-for-profit
arts | 22 | | or cultural organization that establishes, by proof required by | 23 | | the
Department by
rule, that it has received an exemption under | 24 | | Section 501(c)(3) of the
Internal Revenue Code and that is |
| | | HB5316 | - 34 - | LRB100 16845 HLH 31986 b |
|
| 1 | | organized and operated primarily for the
presentation
or | 2 | | support of arts or cultural programming, activities, or | 3 | | services. These
organizations include, but are not limited to, | 4 | | music and dramatic arts
organizations such as symphony | 5 | | orchestras and theatrical groups, arts and
cultural service | 6 | | organizations, local arts councils, visual arts organizations,
| 7 | | and media arts organizations.
On and after the effective date | 8 | | of this amendatory Act of the 92nd General
Assembly, however, | 9 | | an entity otherwise eligible for this exemption shall not
make | 10 | | tax-free purchases unless it has an active identification | 11 | | number issued by
the Department.
| 12 | | (4) Legal tender, currency, medallions, or gold or silver | 13 | | coinage
issued by the State of Illinois, the government of the | 14 | | United States of
America, or the government of any foreign | 15 | | country, and bullion.
| 16 | | (5) Until July 1, 2003 and beginning again on September 1, | 17 | | 2004 through August 30, 2014, graphic arts machinery and | 18 | | equipment, including
repair and
replacement parts, both new and | 19 | | used, and including that manufactured on
special order or | 20 | | purchased for lease, certified by the purchaser to be used
| 21 | | primarily for graphic arts production.
Equipment includes | 22 | | chemicals or chemicals acting as catalysts but only if
the
| 23 | | chemicals or chemicals acting as catalysts effect a direct and | 24 | | immediate change
upon a graphic arts product. Beginning on July | 25 | | 1, 2017, graphic arts machinery and equipment is included in | 26 | | the manufacturing and assembling machinery and equipment |
| | | HB5316 | - 35 - | LRB100 16845 HLH 31986 b |
|
| 1 | | exemption under Section 2 of this Act.
| 2 | | (6) Personal property sold by a teacher-sponsored student | 3 | | organization
affiliated with an elementary or secondary school | 4 | | located in Illinois.
| 5 | | (7) Farm machinery and equipment, both new and used, | 6 | | including that
manufactured on special order, certified by the | 7 | | purchaser to be used
primarily for production agriculture or | 8 | | State or federal agricultural
programs, including individual | 9 | | replacement parts for the machinery and
equipment, including | 10 | | machinery and equipment purchased for lease,
and including | 11 | | implements of husbandry defined in Section 1-130 of
the | 12 | | Illinois Vehicle Code, farm machinery and agricultural | 13 | | chemical and
fertilizer spreaders, and nurse wagons required to | 14 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 15 | | but
excluding other motor vehicles required to be registered | 16 | | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | 17 | | hoop houses used for propagating, growing, or
overwintering | 18 | | plants shall be considered farm machinery and equipment under
| 19 | | this item (7).
Agricultural chemical tender tanks and dry boxes | 20 | | shall include units sold
separately from a motor vehicle | 21 | | required to be licensed and units sold mounted
on a motor | 22 | | vehicle required to be licensed if the selling price of the | 23 | | tender
is separately stated.
| 24 | | Farm machinery and equipment shall include precision | 25 | | farming equipment
that is
installed or purchased to be | 26 | | installed on farm machinery and equipment
including, but not |
| | | HB5316 | - 36 - | LRB100 16845 HLH 31986 b |
|
| 1 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 2 | | or spreaders.
Precision farming equipment includes, but is not | 3 | | limited to,
soil testing sensors, computers, monitors, | 4 | | software, global positioning
and mapping systems, and other | 5 | | such equipment.
| 6 | | Farm machinery and equipment also includes computers, | 7 | | sensors, software, and
related equipment used primarily in the
| 8 | | computer-assisted operation of production agriculture | 9 | | facilities, equipment,
and activities such as, but
not limited | 10 | | to,
the collection, monitoring, and correlation of
animal and | 11 | | crop data for the purpose of
formulating animal diets and | 12 | | agricultural chemicals. This item (7) is exempt
from the | 13 | | provisions of
Section 3-55.
| 14 | | (8) Until June 30, 2013, fuel and petroleum products sold | 15 | | to or used by an air common
carrier, certified by the carrier | 16 | | to be used for consumption, shipment,
or storage in the conduct | 17 | | of its business as an air common carrier, for
a flight destined | 18 | | for or returning from a location or locations
outside the | 19 | | United States without regard to previous or subsequent domestic
| 20 | | stopovers.
| 21 | | Beginning July 1, 2013, fuel and petroleum products sold to | 22 | | or used by an air carrier, certified by the carrier to be used | 23 | | for consumption, shipment, or storage in the conduct of its | 24 | | business as an air common carrier, for a flight that (i) is | 25 | | engaged in foreign trade or is engaged in trade between the | 26 | | United States and any of its possessions and (ii) transports at |
| | | HB5316 | - 37 - | LRB100 16845 HLH 31986 b |
|
| 1 | | least one individual or package for hire from the city of | 2 | | origination to the city of final destination on the same | 3 | | aircraft, without regard to a change in the flight number of | 4 | | that aircraft. | 5 | | (9) Proceeds of mandatory service charges separately
| 6 | | stated on customers' bills for the purchase and consumption of | 7 | | food and
beverages, to the extent that the proceeds of the | 8 | | service charge are in fact
turned over as tips or as a | 9 | | substitute for tips to the employees who
participate directly | 10 | | in preparing, serving, hosting or cleaning up the
food or | 11 | | beverage function with respect to which the service charge is | 12 | | imposed.
| 13 | | (10) Until July 1, 2003, oil field exploration, drilling, | 14 | | and production
equipment,
including (i) rigs and parts of rigs, | 15 | | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 16 | | tubular goods, including casing and
drill strings, (iii) pumps | 17 | | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 18 | | individual replacement part for oil field exploration,
| 19 | | drilling, and production equipment, and (vi) machinery and | 20 | | equipment purchased
for lease; but
excluding motor vehicles | 21 | | required to be registered under the Illinois
Vehicle Code.
| 22 | | (11) Photoprocessing machinery and equipment, including | 23 | | repair and
replacement parts, both new and used, including that | 24 | | manufactured on
special order, certified by the purchaser to be | 25 | | used primarily for
photoprocessing, and including | 26 | | photoprocessing machinery and equipment
purchased for lease.
|
| | | HB5316 | - 38 - | LRB100 16845 HLH 31986 b |
|
| 1 | | (12) Coal and aggregate exploration, mining, off-highway | 2 | | hauling,
processing,
maintenance, and reclamation equipment, | 3 | | including
replacement parts and equipment, and including
| 4 | | equipment
purchased for lease, but excluding motor vehicles | 5 | | required to be registered
under the Illinois Vehicle Code. The | 6 | | changes made to this Section by Public Act 97-767 apply on and | 7 | | after July 1, 2003, but no claim for credit or refund is | 8 | | allowed on or after August 16, 2013 (the effective date of | 9 | | Public Act 98-456)
for such taxes paid during the period | 10 | | beginning July 1, 2003 and ending on August 16, 2013 (the | 11 | | effective date of Public Act 98-456). This item (12) is exempt | 12 | | from the provisions of Section 3-55.
| 13 | | (13) Beginning January 1, 1992 and through June 30, 2016, | 14 | | food for human consumption that is to be consumed off the | 15 | | premises
where it is sold (other than alcoholic beverages, soft | 16 | | drinks and food that
has been prepared for immediate | 17 | | consumption) and prescription and
non-prescription medicines, | 18 | | drugs, medical appliances, and insulin, urine
testing | 19 | | materials, syringes, and needles used by diabetics, for human | 20 | | use,
when purchased for use by a person receiving medical | 21 | | assistance under
Article V of the Illinois Public Aid Code who | 22 | | resides in a licensed
long-term care facility, as defined in | 23 | | the Nursing Home Care Act, or in a licensed facility as defined | 24 | | in the ID/DD Community Care Act, the MC/DD Act, or the | 25 | | Specialized Mental Health Rehabilitation Act of 2013.
| 26 | | (14) Semen used for artificial insemination of livestock |
| | | HB5316 | - 39 - | LRB100 16845 HLH 31986 b |
|
| 1 | | for direct
agricultural production.
| 2 | | (15) Horses, or interests in horses, registered with and | 3 | | meeting the
requirements of any of the
Arabian Horse Club | 4 | | Registry of America, Appaloosa Horse Club, American Quarter
| 5 | | Horse Association, United States
Trotting Association, or | 6 | | Jockey Club, as appropriate, used for
purposes of breeding or | 7 | | racing for prizes. This item (15) is exempt from the provisions | 8 | | of Section 3-55, and the exemption provided for under this item | 9 | | (15) applies for all periods beginning May 30, 1995, but no | 10 | | claim for credit or refund is allowed on or after January 1, | 11 | | 2008 (the effective date of Public Act 95-88)
for such taxes | 12 | | paid during the period beginning May 30, 2000 and ending on | 13 | | January 1, 2008 (the effective date of Public Act 95-88).
| 14 | | (16) Computers and communications equipment utilized for | 15 | | any
hospital
purpose
and equipment used in the diagnosis,
| 16 | | analysis, or treatment of hospital patients sold to a lessor | 17 | | who leases the
equipment, under a lease of one year or longer | 18 | | executed or in effect at the
time of the purchase, to a
| 19 | | hospital
that has been issued an active tax exemption | 20 | | identification number by the
Department under Section 1g of the | 21 | | Retailers' Occupation Tax Act.
| 22 | | (17) Personal property sold to a lessor who leases the
| 23 | | property, under a
lease of one year or longer executed or in | 24 | | effect at the time of the purchase,
to a governmental body
that | 25 | | has been issued an active tax exemption identification number | 26 | | by the
Department under Section 1g of the Retailers' Occupation |
| | | HB5316 | - 40 - | LRB100 16845 HLH 31986 b |
|
| 1 | | Tax Act.
| 2 | | (18) Beginning with taxable years ending on or after | 3 | | December
31, 1995
and
ending with taxable years ending on or | 4 | | before December 31, 2004,
personal property that is
donated for | 5 | | disaster relief to be used in a State or federally declared
| 6 | | disaster area in Illinois or bordering Illinois by a | 7 | | manufacturer or retailer
that is registered in this State to a | 8 | | corporation, society, association,
foundation, or institution | 9 | | that has been issued a sales tax exemption
identification | 10 | | number by the Department that assists victims of the disaster
| 11 | | who reside within the declared disaster area.
| 12 | | (19) Beginning with taxable years ending on or after | 13 | | December
31, 1995 and
ending with taxable years ending on or | 14 | | before December 31, 2004, personal
property that is used in the | 15 | | performance of infrastructure repairs in this
State, including | 16 | | but not limited to municipal roads and streets, access roads,
| 17 | | bridges, sidewalks, waste disposal systems, water and sewer | 18 | | line extensions,
water distribution and purification | 19 | | facilities, storm water drainage and
retention facilities, and | 20 | | sewage treatment facilities, resulting from a State
or | 21 | | federally declared disaster in Illinois or bordering Illinois | 22 | | when such
repairs are initiated on facilities located in the | 23 | | declared disaster area
within 6 months after the disaster.
| 24 | | (20) Beginning July 1, 1999, game or game birds sold at a | 25 | | "game breeding
and
hunting preserve area" as that term is used
| 26 | | in the
Wildlife Code. This paragraph is exempt from the |
| | | HB5316 | - 41 - | LRB100 16845 HLH 31986 b |
|
| 1 | | provisions
of
Section 3-55.
| 2 | | (21) A motor vehicle, as that term is defined in Section | 3 | | 1-146
of the
Illinois Vehicle Code, that is donated to a | 4 | | corporation, limited liability
company, society, association, | 5 | | foundation, or institution that is determined by
the Department | 6 | | to be organized and operated exclusively for educational
| 7 | | purposes. For purposes of this exemption, "a corporation, | 8 | | limited liability
company, society, association, foundation, | 9 | | or institution organized and
operated
exclusively for | 10 | | educational purposes" means all tax-supported public schools,
| 11 | | private schools that offer systematic instruction in useful | 12 | | branches of
learning by methods common to public schools and | 13 | | that compare favorably in
their scope and intensity with the | 14 | | course of study presented in tax-supported
schools, and | 15 | | vocational or technical schools or institutes organized and
| 16 | | operated exclusively to provide a course of study of not less | 17 | | than 6 weeks
duration and designed to prepare individuals to | 18 | | follow a trade or to pursue a
manual, technical, mechanical, | 19 | | industrial, business, or commercial
occupation.
| 20 | | (22) Beginning January 1, 2000, personal property, | 21 | | including
food,
purchased through fundraising
events for the | 22 | | benefit of
a public or private elementary or
secondary school, | 23 | | a group of those schools, or one or more school
districts if | 24 | | the events are
sponsored by an entity recognized by the school | 25 | | district that consists
primarily of volunteers and includes
| 26 | | parents and teachers of the school children. This paragraph |
| | | HB5316 | - 42 - | LRB100 16845 HLH 31986 b |
|
| 1 | | does not apply
to fundraising
events (i) for the benefit of | 2 | | private home instruction or (ii)
for which the fundraising | 3 | | entity purchases the personal property sold at
the events from | 4 | | another individual or entity that sold the property for the
| 5 | | purpose of resale by the fundraising entity and that
profits | 6 | | from the sale to the
fundraising entity. This paragraph is | 7 | | exempt
from the provisions
of Section 3-55.
| 8 | | (23) Beginning January 1, 2000
and through December 31, | 9 | | 2001, new or used automatic vending
machines that prepare and | 10 | | serve hot food and beverages, including coffee, soup,
and
other | 11 | | items, and replacement parts for these machines.
Beginning | 12 | | January 1,
2002 and through June 30, 2003, machines and parts | 13 | | for
machines used in commercial, coin-operated amusement
and | 14 | | vending business if a use or occupation tax is paid on the | 15 | | gross receipts
derived from
the use of the commercial, | 16 | | coin-operated amusement and vending machines.
This paragraph | 17 | | is exempt from the provisions of Section 3-55.
| 18 | | (24) Beginning
on the effective date of this amendatory Act | 19 | | of the 92nd General Assembly,
computers and communications | 20 | | equipment
utilized for any hospital purpose and equipment used | 21 | | in the diagnosis,
analysis, or treatment of hospital patients | 22 | | sold to a lessor who leases the
equipment, under a lease of one | 23 | | year or longer executed or in effect at the
time of the | 24 | | purchase, to a hospital that has been issued an active tax
| 25 | | exemption identification number by the Department under | 26 | | Section 1g of the
Retailers' Occupation Tax Act. This paragraph |
| | | HB5316 | - 43 - | LRB100 16845 HLH 31986 b |
|
| 1 | | is exempt from the provisions of
Section 3-55.
| 2 | | (25) Beginning
on the effective date of this amendatory Act | 3 | | of the 92nd General Assembly,
personal property sold to a | 4 | | lessor who
leases the property, under a lease of one year or | 5 | | longer executed or in effect
at the time of the purchase, to a | 6 | | governmental body that has been issued an
active tax exemption | 7 | | identification number by the Department under Section 1g
of the | 8 | | Retailers' Occupation Tax Act. This paragraph is exempt from | 9 | | the
provisions of Section 3-55.
| 10 | | (26) Beginning on January 1, 2002 and through June 30, | 11 | | 2016, tangible personal property
purchased
from an Illinois | 12 | | retailer by a taxpayer engaged in centralized purchasing
| 13 | | activities in Illinois who will, upon receipt of the property | 14 | | in Illinois,
temporarily store the property in Illinois (i) for | 15 | | the purpose of subsequently
transporting it outside this State | 16 | | for use or consumption thereafter solely
outside this State or | 17 | | (ii) for the purpose of being processed, fabricated, or
| 18 | | manufactured into, attached to, or incorporated into other | 19 | | tangible personal
property to be transported outside this State | 20 | | and thereafter used or consumed
solely outside this State. The | 21 | | Director of Revenue shall, pursuant to rules
adopted in | 22 | | accordance with the Illinois Administrative Procedure Act, | 23 | | issue a
permit to any taxpayer in good standing with the | 24 | | Department who is eligible for
the exemption under this | 25 | | paragraph (26). The permit issued under
this paragraph (26) | 26 | | shall authorize the holder, to the extent and
in the manner |
| | | HB5316 | - 44 - | LRB100 16845 HLH 31986 b |
|
| 1 | | specified in the rules adopted under this Act, to purchase
| 2 | | tangible personal property from a retailer exempt from the | 3 | | taxes imposed by
this Act. Taxpayers shall maintain all | 4 | | necessary books and records to
substantiate the use and | 5 | | consumption of all such tangible personal property
outside of | 6 | | the State of Illinois.
| 7 | | (27) Beginning January 1, 2008, tangible personal property | 8 | | used in the construction or maintenance of a community water | 9 | | supply, as defined under Section 3.145 of the Environmental | 10 | | Protection Act, that is operated by a not-for-profit | 11 | | corporation that holds a valid water supply permit issued under | 12 | | Title IV of the Environmental Protection Act. This paragraph is | 13 | | exempt from the provisions of Section 3-55.
| 14 | | (28) Tangible personal property sold to a | 15 | | public-facilities corporation, as described in Section | 16 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 17 | | constructing or furnishing a municipal convention hall, but | 18 | | only if the legal title to the municipal convention hall is | 19 | | transferred to the municipality without any further | 20 | | consideration by or on behalf of the municipality at the time | 21 | | of the completion of the municipal convention hall or upon the | 22 | | retirement or redemption of any bonds or other debt instruments | 23 | | issued by the public-facilities corporation in connection with | 24 | | the development of the municipal convention hall. This | 25 | | exemption includes existing public-facilities corporations as | 26 | | provided in Section 11-65-25 of the Illinois Municipal Code. |
| | | HB5316 | - 45 - | LRB100 16845 HLH 31986 b |
|
| 1 | | This paragraph is exempt from the provisions of Section 3-55. | 2 | | (29) Beginning January 1, 2010, materials, parts, | 3 | | equipment, components, and furnishings incorporated into or | 4 | | upon an aircraft as part of the modification, refurbishment, | 5 | | completion, replacement, repair, or maintenance of the | 6 | | aircraft. This exemption includes consumable supplies used in | 7 | | the modification, refurbishment, completion, replacement, | 8 | | repair, and maintenance of aircraft, but excludes any | 9 | | materials, parts, equipment, components, and consumable | 10 | | supplies used in the modification, replacement, repair, and | 11 | | maintenance of aircraft engines or power plants, whether such | 12 | | engines or power plants are installed or uninstalled upon any | 13 | | such aircraft. "Consumable supplies" include, but are not | 14 | | limited to, adhesive, tape, sandpaper, general purpose | 15 | | lubricants, cleaning solution, latex gloves, and protective | 16 | | films. This exemption applies only to the transfer of | 17 | | qualifying tangible personal property incident to the | 18 | | modification, refurbishment, completion, replacement, repair, | 19 | | or maintenance of an aircraft by persons who (i) hold an Air | 20 | | Agency Certificate and are empowered to operate an approved | 21 | | repair station by the Federal Aviation Administration, (ii) | 22 | | have a Class IV Rating, and (iii) conduct operations in | 23 | | accordance with Part 145 of the Federal Aviation Regulations. | 24 | | The exemption does not include aircraft operated by a | 25 | | commercial air carrier providing scheduled passenger air | 26 | | service pursuant to authority issued under Part 121 or Part 129 |
| | | HB5316 | - 46 - | LRB100 16845 HLH 31986 b |
|
| 1 | | of the Federal Aviation Regulations. The changes made to this | 2 | | paragraph (29) by Public Act 98-534 are declarative of existing | 3 | | law. | 4 | | (30) Beginning January 1, 2017, menstrual pads, tampons, | 5 | | and menstrual cups. | 6 | | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | 7 | | 100-22, eff. 7-6-17.)
| 8 | | Section 20. The Retailers' Occupation Tax Act is amended by | 9 | | changing Section 2-5 as follows:
| 10 | | (35 ILCS 120/2-5)
| 11 | | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | 12 | | sale of
the following tangible personal property are exempt | 13 | | from the tax imposed
by this Act:
| 14 | | (1) Farm chemicals.
| 15 | | (2) Farm machinery and equipment, both new and used, | 16 | | including that
manufactured on special order, certified by | 17 | | the purchaser to be used
primarily for production | 18 | | agriculture or State or federal agricultural
programs, | 19 | | including individual replacement parts for the machinery | 20 | | and
equipment, including machinery and equipment purchased | 21 | | for lease,
and including implements of husbandry defined in | 22 | | Section 1-130 of
the Illinois Vehicle Code, farm machinery | 23 | | and agricultural chemical and
fertilizer spreaders, and | 24 | | nurse wagons required to be registered
under Section 3-809 |
| | | HB5316 | - 47 - | LRB100 16845 HLH 31986 b |
|
| 1 | | of the Illinois Vehicle Code,
but
excluding other motor | 2 | | vehicles required to be registered under the Illinois
| 3 | | Vehicle Code.
Horticultural polyhouses or hoop houses used | 4 | | for propagating, growing, or
overwintering plants shall be | 5 | | considered farm machinery and equipment under
this item | 6 | | (2).
Agricultural chemical tender tanks and dry boxes shall | 7 | | include units sold
separately from a motor vehicle required | 8 | | to be licensed and units sold mounted
on a motor vehicle | 9 | | required to be licensed, if the selling price of the tender
| 10 | | is separately stated.
| 11 | | Farm machinery and equipment shall include precision | 12 | | farming equipment
that is
installed or purchased to be | 13 | | installed on farm machinery and equipment
including, but | 14 | | not limited to, tractors, harvesters, sprayers, planters,
| 15 | | seeders, or spreaders.
Precision farming equipment | 16 | | includes, but is not limited to,
soil testing sensors, | 17 | | computers, monitors, software, global positioning
and | 18 | | mapping systems, and other such equipment.
| 19 | | Farm machinery and equipment also includes computers, | 20 | | sensors, software, and
related equipment used primarily in | 21 | | the
computer-assisted operation of production agriculture | 22 | | facilities, equipment,
and activities such as, but
not | 23 | | limited to,
the collection, monitoring, and correlation of
| 24 | | animal and crop data for the purpose of
formulating animal | 25 | | diets and agricultural chemicals. This item (2) is exempt
| 26 | | from the provisions of
Section 2-70.
|
| | | HB5316 | - 48 - | LRB100 16845 HLH 31986 b |
|
| 1 | | (3) Until July 1, 2003, distillation machinery and | 2 | | equipment, sold as a
unit or kit,
assembled or installed by | 3 | | the retailer, certified by the user to be used
only for the | 4 | | production of ethyl alcohol that will be used for | 5 | | consumption
as motor fuel or as a component of motor fuel | 6 | | for the personal use of the
user, and not subject to sale | 7 | | or resale.
| 8 | | (4) Until July 1, 2003 and beginning again September 1, | 9 | | 2004 through August 30, 2014, graphic arts machinery and | 10 | | equipment, including
repair and
replacement parts, both | 11 | | new and used, and including that manufactured on
special | 12 | | order or purchased for lease, certified by the purchaser to | 13 | | be used
primarily for graphic arts production.
Equipment | 14 | | includes chemicals or
chemicals acting as catalysts but | 15 | | only if
the chemicals or chemicals acting as catalysts | 16 | | effect a direct and immediate
change upon a
graphic arts | 17 | | product. Beginning on July 1, 2017, graphic arts machinery | 18 | | and equipment is included in the manufacturing and | 19 | | assembling machinery and equipment exemption under | 20 | | paragraph (14).
| 21 | | (5) A motor vehicle that is used for automobile | 22 | | renting, as defined in the Automobile Renting Occupation | 23 | | and Use Tax Act. This paragraph is exempt from
the | 24 | | provisions of Section 2-70.
| 25 | | (6) Personal property sold by a teacher-sponsored | 26 | | student organization
affiliated with an elementary or |
| | | HB5316 | - 49 - | LRB100 16845 HLH 31986 b |
|
| 1 | | secondary school located in Illinois.
| 2 | | (7) Until July 1, 2003, proceeds of that portion of the | 3 | | selling price of
a passenger car the
sale of which is | 4 | | subject to the Replacement Vehicle Tax.
| 5 | | (8) Personal property sold to an Illinois county fair | 6 | | association for
use in conducting, operating, or promoting | 7 | | the county fair.
| 8 | | (9) Personal property sold to a not-for-profit arts
or | 9 | | cultural organization that establishes, by proof required | 10 | | by the Department
by
rule, that it has received an | 11 | | exemption under Section 501(c)(3) of the
Internal Revenue | 12 | | Code and that is organized and operated primarily for the
| 13 | | presentation
or support of arts or cultural programming, | 14 | | activities, or services. These
organizations include, but | 15 | | are not limited to, music and dramatic arts
organizations | 16 | | such as symphony orchestras and theatrical groups, arts and
| 17 | | cultural service organizations, local arts councils, | 18 | | visual arts organizations,
and media arts organizations.
| 19 | | On and after July 1, 2001 ( the effective date of Public Act | 20 | | 92-35) this amendatory Act of the 92nd General
Assembly , | 21 | | however, an entity otherwise eligible for this exemption | 22 | | shall not
make tax-free purchases unless it has an active | 23 | | identification number issued by
the Department.
| 24 | | (10) Personal property sold by a corporation, society, | 25 | | association,
foundation, institution, or organization, | 26 | | other than a limited liability
company, that is organized |
| | | HB5316 | - 50 - | LRB100 16845 HLH 31986 b |
|
| 1 | | and operated as a not-for-profit service enterprise
for the | 2 | | benefit of persons 65 years of age or older if the personal | 3 | | property
was not purchased by the enterprise for the | 4 | | purpose of resale by the
enterprise.
| 5 | | (11) Personal property sold to a governmental body, to | 6 | | a corporation,
society, association, foundation, or | 7 | | institution organized and operated
exclusively for | 8 | | charitable, religious, or educational purposes, or to a
| 9 | | not-for-profit corporation, society, association, | 10 | | foundation, institution,
or organization that has no | 11 | | compensated officers or employees and that is
organized and | 12 | | operated primarily for the recreation of persons 55 years | 13 | | of
age or older. A limited liability company may qualify | 14 | | for the exemption under
this paragraph only if the limited | 15 | | liability company is organized and operated
exclusively | 16 | | for educational purposes. On and after July 1, 1987, | 17 | | however, no
entity otherwise eligible for this exemption | 18 | | shall make tax-free purchases
unless it has an active | 19 | | identification number issued by the Department.
| 20 | | (12) (Blank).
| 21 | | (12-5) On and after July 1, 2003 and through June 30, | 22 | | 2004, motor vehicles of the second division
with a gross | 23 | | vehicle weight in excess of 8,000 pounds
that
are
subject | 24 | | to the commercial distribution fee imposed under Section | 25 | | 3-815.1 of
the Illinois
Vehicle Code. Beginning on July 1, | 26 | | 2004 and through June 30, 2005, the use in this State of |
| | | HB5316 | - 51 - | LRB100 16845 HLH 31986 b |
|
| 1 | | motor vehicles of the second division: (i) with a gross | 2 | | vehicle weight rating in excess of 8,000 pounds; (ii) that | 3 | | are subject to the commercial distribution fee imposed | 4 | | under Section 3-815.1 of the Illinois Vehicle Code; and | 5 | | (iii) that are primarily used for commercial purposes. | 6 | | Through June 30, 2005, this
exemption applies to repair and | 7 | | replacement parts added
after the
initial purchase of such | 8 | | a motor vehicle if that motor vehicle is used in a
manner | 9 | | that
would qualify for the rolling stock exemption | 10 | | otherwise provided for in this
Act. For purposes of this | 11 | | paragraph, "used for commercial purposes" means the | 12 | | transportation of persons or property in furtherance of any | 13 | | commercial or industrial enterprise whether for-hire or | 14 | | not.
| 15 | | (13) Proceeds from sales to owners, lessors, or
| 16 | | shippers of
tangible personal property that is utilized by | 17 | | interstate carriers for
hire for use as rolling stock | 18 | | moving in interstate commerce
and equipment operated by a | 19 | | telecommunications provider, licensed as a
common carrier | 20 | | by the Federal Communications Commission, which is
| 21 | | permanently installed in or affixed to aircraft moving in | 22 | | interstate commerce.
| 23 | | (14) Machinery and equipment that will be used by the | 24 | | purchaser, or a
lessee of the purchaser, primarily in the | 25 | | process of manufacturing or
assembling tangible personal | 26 | | property for wholesale or retail sale or
lease, whether the |
| | | HB5316 | - 52 - | LRB100 16845 HLH 31986 b |
|
| 1 | | sale or lease is made directly by the manufacturer or by
| 2 | | some other person, whether the materials used in the | 3 | | process are owned by
the manufacturer or some other person, | 4 | | or whether the sale or lease is made
apart from or as an | 5 | | incident to the seller's engaging in the service
occupation | 6 | | of producing machines, tools, dies, jigs, patterns, | 7 | | gauges, or
other similar items of no commercial value on | 8 | | special order for a particular
purchaser. The exemption | 9 | | provided by this paragraph (14) does not include machinery | 10 | | and equipment used in (i) the generation of electricity for | 11 | | wholesale or retail sale; (ii) the generation or treatment | 12 | | of natural or artificial gas for wholesale or retail sale | 13 | | that is delivered to customers through pipes, pipelines, or | 14 | | mains; or (iii) the treatment of water for wholesale or | 15 | | retail sale that is delivered to customers through pipes, | 16 | | pipelines, or mains. The provisions of Public Act 98-583 | 17 | | are declaratory of existing law as to the meaning and scope | 18 | | of this exemption. Beginning on July 1, 2017, the exemption | 19 | | provided by this paragraph (14) includes, but is not | 20 | | limited to, graphic arts machinery and equipment, as | 21 | | defined in paragraph (4) of this Section.
| 22 | | (15) Proceeds of mandatory service charges separately | 23 | | stated on
customers' bills for purchase and consumption of | 24 | | food and beverages, to the
extent that the proceeds of the | 25 | | service charge are in fact turned over as
tips or as a | 26 | | substitute for tips to the employees who participate |
| | | HB5316 | - 53 - | LRB100 16845 HLH 31986 b |
|
| 1 | | directly
in preparing, serving, hosting or cleaning up the | 2 | | food or beverage function
with respect to which the service | 3 | | charge is imposed.
| 4 | | (16) Petroleum products sold to a purchaser if the | 5 | | seller
is prohibited by federal law from charging tax to | 6 | | the purchaser.
| 7 | | (17) Tangible personal property sold to a common | 8 | | carrier by rail or
motor that
receives the physical | 9 | | possession of the property in Illinois and that
transports | 10 | | the property, or shares with another common carrier in the
| 11 | | transportation of the property, out of Illinois on a | 12 | | standard uniform bill
of lading showing the seller of the | 13 | | property as the shipper or consignor of
the property to a | 14 | | destination outside Illinois, for use outside Illinois.
| 15 | | (18) Legal tender, currency, medallions, or gold or | 16 | | silver coinage
issued by the State of Illinois, the | 17 | | government of the United States of
America, or the | 18 | | government of any foreign country, and bullion.
| 19 | | (19) Until July 1 , 2003, oil field exploration, | 20 | | drilling, and production
equipment, including
(i) rigs and | 21 | | parts of rigs, rotary rigs, cable tool
rigs, and workover | 22 | | rigs, (ii) pipe and tubular goods, including casing and
| 23 | | drill strings, (iii) pumps and pump-jack units, (iv) | 24 | | storage tanks and flow
lines, (v) any individual | 25 | | replacement part for oil field exploration,
drilling, and | 26 | | production equipment, and (vi) machinery and equipment |
| | | HB5316 | - 54 - | LRB100 16845 HLH 31986 b |
|
| 1 | | purchased
for lease; but
excluding motor vehicles required | 2 | | to be registered under the Illinois
Vehicle Code.
| 3 | | (20) Photoprocessing machinery and equipment, | 4 | | including repair and
replacement parts, both new and used, | 5 | | including that manufactured on
special order, certified by | 6 | | the purchaser to be used primarily for
photoprocessing, and | 7 | | including photoprocessing machinery and equipment
| 8 | | purchased for lease.
| 9 | | (21) Coal and aggregate exploration, mining, | 10 | | off-highway hauling,
processing,
maintenance, and | 11 | | reclamation equipment, including
replacement parts and | 12 | | equipment, and including
equipment purchased for lease, | 13 | | but excluding motor vehicles required to be
registered | 14 | | under the Illinois Vehicle Code. The changes made to this | 15 | | Section by Public Act 97-767 apply on and after July 1, | 16 | | 2003, but no claim for credit or refund is allowed on or | 17 | | after August 16, 2013 (the effective date of Public Act | 18 | | 98-456)
for such taxes paid during the period beginning | 19 | | July 1, 2003 and ending on August 16, 2013 (the effective | 20 | | date of Public Act 98-456). This item (21) is exempt from | 21 | | the provisions of Section 2-70.
| 22 | | (22) Until June 30, 2013, fuel and petroleum products | 23 | | sold to or used by an air carrier,
certified by the carrier | 24 | | to be used for consumption, shipment, or storage
in the | 25 | | conduct of its business as an air common carrier, for a | 26 | | flight
destined for or returning from a location or |
| | | HB5316 | - 55 - | LRB100 16845 HLH 31986 b |
|
| 1 | | locations
outside the United States without regard to | 2 | | previous or subsequent domestic
stopovers.
| 3 | | Beginning July 1, 2013, fuel and petroleum products | 4 | | sold to or used by an air carrier, certified by the carrier | 5 | | to be used for consumption, shipment, or storage in the | 6 | | conduct of its business as an air common carrier, for a | 7 | | flight that (i) is engaged in foreign trade or is engaged | 8 | | in trade between the United States and any of its | 9 | | possessions and (ii) transports at least one individual or | 10 | | package for hire from the city of origination to the city | 11 | | of final destination on the same aircraft, without regard | 12 | | to a change in the flight number of that aircraft. | 13 | | (23) A transaction in which the purchase order is | 14 | | received by a florist
who is located outside Illinois, but | 15 | | who has a florist located in Illinois
deliver the property | 16 | | to the purchaser or the purchaser's donee in Illinois.
| 17 | | (24) Fuel consumed or used in the operation of ships, | 18 | | barges, or vessels
that are used primarily in or for the | 19 | | transportation of property or the
conveyance of persons for | 20 | | hire on rivers bordering on this State if the
fuel is | 21 | | delivered by the seller to the purchaser's barge, ship, or | 22 | | vessel
while it is afloat upon that bordering river.
| 23 | | (25) Except as provided in item (25-5) of this Section, | 24 | | a
motor vehicle sold in this State to a nonresident even | 25 | | though the
motor vehicle is delivered to the nonresident in | 26 | | this State, if the motor
vehicle is not to be titled in |
| | | HB5316 | - 56 - | LRB100 16845 HLH 31986 b |
|
| 1 | | this State, and if a drive-away permit
is issued to the | 2 | | motor vehicle as provided in Section 3-603 of the Illinois
| 3 | | Vehicle Code or if the nonresident purchaser has vehicle | 4 | | registration
plates to transfer to the motor vehicle upon | 5 | | returning to his or her home
state. The issuance of the | 6 | | drive-away permit or having
the
out-of-state registration | 7 | | plates to be transferred is prima facie evidence
that the | 8 | | motor vehicle will not be titled in this State.
| 9 | | (25-5) The exemption under item (25) does not apply if | 10 | | the state in which the motor vehicle will be titled does | 11 | | not allow a reciprocal exemption for a motor vehicle sold | 12 | | and delivered in that state to an Illinois resident but | 13 | | titled in Illinois. The tax collected under this Act on the | 14 | | sale of a motor vehicle in this State to a resident of | 15 | | another state that does not allow a reciprocal exemption | 16 | | shall be imposed at a rate equal to the state's rate of tax | 17 | | on taxable property in the state in which the purchaser is | 18 | | a resident, except that the tax shall not exceed the tax | 19 | | that would otherwise be imposed under this Act. At the time | 20 | | of the sale, the purchaser shall execute a statement, | 21 | | signed under penalty of perjury, of his or her intent to | 22 | | title the vehicle in the state in which the purchaser is a | 23 | | resident within 30 days after the sale and of the fact of | 24 | | the payment to the State of Illinois of tax in an amount | 25 | | equivalent to the state's rate of tax on taxable property | 26 | | in his or her state of residence and shall submit the |
| | | HB5316 | - 57 - | LRB100 16845 HLH 31986 b |
|
| 1 | | statement to the appropriate tax collection agency in his | 2 | | or her state of residence. In addition, the retailer must | 3 | | retain a signed copy of the statement in his or her | 4 | | records. Nothing in this item shall be construed to require | 5 | | the removal of the vehicle from this state following the | 6 | | filing of an intent to title the vehicle in the purchaser's | 7 | | state of residence if the purchaser titles the vehicle in | 8 | | his or her state of residence within 30 days after the date | 9 | | of sale. The tax collected under this Act in accordance | 10 | | with this item (25-5) shall be proportionately distributed | 11 | | as if the tax were collected at the 6.25% general rate | 12 | | imposed under this Act.
| 13 | | (25-7) Beginning on July 1, 2007, no tax is imposed | 14 | | under this Act on the sale of an aircraft, as defined in | 15 | | Section 3 of the Illinois Aeronautics Act, if all of the | 16 | | following conditions are met: | 17 | | (1) the aircraft leaves this State within 15 days | 18 | | after the later of either the issuance of the final | 19 | | billing for the sale of the aircraft, or the authorized | 20 | | approval for return to service, completion of the | 21 | | maintenance record entry, and completion of the test | 22 | | flight and ground test for inspection, as required by | 23 | | 14 C.F.R. 91.407; | 24 | | (2) the aircraft is not based or registered in this | 25 | | State after the sale of the aircraft; and | 26 | | (3) the seller retains in his or her books and |
| | | HB5316 | - 58 - | LRB100 16845 HLH 31986 b |
|
| 1 | | records and provides to the Department a signed and | 2 | | dated certification from the purchaser, on a form | 3 | | prescribed by the Department, certifying that the | 4 | | requirements of this item (25-7) are met. The | 5 | | certificate must also include the name and address of | 6 | | the purchaser, the address of the location where the | 7 | | aircraft is to be titled or registered, the address of | 8 | | the primary physical location of the aircraft, and | 9 | | other information that the Department may reasonably | 10 | | require. | 11 | | For purposes of this item (25-7): | 12 | | "Based in this State" means hangared, stored, or | 13 | | otherwise used, excluding post-sale customizations as | 14 | | defined in this Section, for 10 or more days in each | 15 | | 12-month period immediately following the date of the sale | 16 | | of the aircraft. | 17 | | "Registered in this State" means an aircraft | 18 | | registered with the Department of Transportation, | 19 | | Aeronautics Division, or titled or registered with the | 20 | | Federal Aviation Administration to an address located in | 21 | | this State. | 22 | | This paragraph (25-7) is exempt from the provisions
of
| 23 | | Section 2-70.
| 24 | | (26) Semen used for artificial insemination of | 25 | | livestock for direct
agricultural production.
| 26 | | (27) Horses, or interests in horses, registered with |
| | | HB5316 | - 59 - | LRB100 16845 HLH 31986 b |
|
| 1 | | and meeting the
requirements of any of the
Arabian Horse | 2 | | Club Registry of America, Appaloosa Horse Club, American | 3 | | Quarter
Horse Association, United States
Trotting | 4 | | Association, or Jockey Club, as appropriate, used for
| 5 | | purposes of breeding or racing for prizes. This item (27) | 6 | | is exempt from the provisions of Section 2-70, and the | 7 | | exemption provided for under this item (27) applies for all | 8 | | periods beginning May 30, 1995, but no claim for credit or | 9 | | refund is allowed on or after January 1, 2008 (the | 10 | | effective date of Public Act 95-88)
for such taxes paid | 11 | | during the period beginning May 30, 2000 and ending on | 12 | | January 1, 2008 (the effective date of Public Act 95-88).
| 13 | | (28) Computers and communications equipment utilized | 14 | | for any
hospital
purpose
and equipment used in the | 15 | | diagnosis,
analysis, or treatment of hospital patients | 16 | | sold to a lessor who leases the
equipment, under a lease of | 17 | | one year or longer executed or in effect at the
time of the | 18 | | purchase, to a
hospital
that has been issued an active tax | 19 | | exemption identification number by the
Department under | 20 | | Section 1g of this Act.
| 21 | | (29) Personal property sold to a lessor who leases the
| 22 | | property, under a
lease of one year or longer executed or | 23 | | in effect at the time of the purchase,
to a governmental | 24 | | body
that has been issued an active tax exemption | 25 | | identification number by the
Department under Section 1g of | 26 | | this Act.
|
| | | HB5316 | - 60 - | LRB100 16845 HLH 31986 b |
|
| 1 | | (30) Beginning with taxable years ending on or after | 2 | | December
31, 1995
and
ending with taxable years ending on | 3 | | or before December 31, 2004,
personal property that is
| 4 | | donated for disaster relief to be used in a State or | 5 | | federally declared
disaster area in Illinois or bordering | 6 | | Illinois by a manufacturer or retailer
that is registered | 7 | | in this State to a corporation, society, association,
| 8 | | foundation, or institution that has been issued a sales tax | 9 | | exemption
identification number by the Department that | 10 | | assists victims of the disaster
who reside within the | 11 | | declared disaster area.
| 12 | | (31) Beginning with taxable years ending on or after | 13 | | December
31, 1995 and
ending with taxable years ending on | 14 | | or before December 31, 2004, personal
property that is used | 15 | | in the performance of infrastructure repairs in this
State, | 16 | | including but not limited to municipal roads and streets, | 17 | | access roads,
bridges, sidewalks, waste disposal systems, | 18 | | water and sewer line extensions,
water distribution and | 19 | | purification facilities, storm water drainage and
| 20 | | retention facilities, and sewage treatment facilities, | 21 | | resulting from a State
or federally declared disaster in | 22 | | Illinois or bordering Illinois when such
repairs are | 23 | | initiated on facilities located in the declared disaster | 24 | | area
within 6 months after the disaster.
| 25 | | (32) Beginning July 1, 1999, game or game birds sold at | 26 | | a "game breeding
and
hunting preserve area" as that term is |
| | | HB5316 | - 61 - | LRB100 16845 HLH 31986 b |
|
| 1 | | used
in the
Wildlife Code. This paragraph is exempt from | 2 | | the provisions
of
Section 2-70.
| 3 | | (33) A motor vehicle, as that term is defined in | 4 | | Section 1-146
of the
Illinois Vehicle Code, that is donated | 5 | | to a corporation, limited liability
company, society, | 6 | | association, foundation, or institution that is determined | 7 | | by
the Department to be organized and operated exclusively | 8 | | for educational
purposes. For purposes of this exemption, | 9 | | "a corporation, limited liability
company, society, | 10 | | association, foundation, or institution organized and
| 11 | | operated
exclusively for educational purposes" means all | 12 | | tax-supported public schools,
private schools that offer | 13 | | systematic instruction in useful branches of
learning by | 14 | | methods common to public schools and that compare favorably | 15 | | in
their scope and intensity with the course of study | 16 | | presented in tax-supported
schools, and vocational or | 17 | | technical schools or institutes organized and
operated | 18 | | exclusively to provide a course of study of not less than 6 | 19 | | weeks
duration and designed to prepare individuals to | 20 | | follow a trade or to pursue a
manual, technical, | 21 | | mechanical, industrial, business, or commercial
| 22 | | occupation.
| 23 | | (34) Beginning January 1, 2000, personal property, | 24 | | including food, purchased
through fundraising events for | 25 | | the benefit of a public or private elementary or
secondary | 26 | | school, a group of those schools, or one or more school |
| | | HB5316 | - 62 - | LRB100 16845 HLH 31986 b |
|
| 1 | | districts if
the events are sponsored by an entity | 2 | | recognized by the school district that
consists primarily | 3 | | of volunteers and includes parents and teachers of the
| 4 | | school children. This paragraph does not apply to | 5 | | fundraising events (i) for
the benefit of private home | 6 | | instruction or (ii) for which the fundraising
entity | 7 | | purchases the personal property sold at the events from | 8 | | another
individual or entity that sold the property for the | 9 | | purpose of resale by the
fundraising entity and that | 10 | | profits from the sale to the fundraising entity.
This | 11 | | paragraph is exempt from the provisions of Section 2-70.
| 12 | | (35) Beginning January 1, 2000 and through December 31, | 13 | | 2001, new or used
automatic vending machines that prepare | 14 | | and serve hot food and beverages,
including coffee, soup, | 15 | | and other items, and replacement parts for these
machines. | 16 | | Beginning January 1, 2002 and through June 30, 2003, | 17 | | machines
and parts for machines used in
commercial, | 18 | | coin-operated amusement and vending business if a use or | 19 | | occupation
tax is paid on the gross receipts derived from | 20 | | the use of the commercial,
coin-operated amusement and | 21 | | vending machines. This paragraph is exempt from
the | 22 | | provisions of Section 2-70.
| 23 | | (35-5) Beginning August 23, 2001 and through June 30, | 24 | | 2016, food for human consumption that is to be consumed off
| 25 | | the premises where it is sold (other than alcoholic | 26 | | beverages, soft drinks,
and food that has been prepared for |
| | | HB5316 | - 63 - | LRB100 16845 HLH 31986 b |
|
| 1 | | immediate consumption) and prescription
and | 2 | | nonprescription medicines, drugs, medical appliances, and | 3 | | insulin, urine
testing materials, syringes, and needles | 4 | | used by diabetics, for human use, when
purchased for use by | 5 | | a person receiving medical assistance under Article V of
| 6 | | the Illinois Public Aid Code who resides in a licensed | 7 | | long-term care facility,
as defined in the Nursing Home | 8 | | Care Act, or a licensed facility as defined in the ID/DD | 9 | | Community Care Act, the MC/DD Act, or the Specialized | 10 | | Mental Health Rehabilitation Act of 2013.
| 11 | | (36) Beginning August 2, 2001, computers and | 12 | | communications equipment
utilized for any hospital purpose | 13 | | and equipment used in the diagnosis,
analysis, or treatment | 14 | | of hospital patients sold to a lessor who leases the
| 15 | | equipment, under a lease of one year or longer executed or | 16 | | in effect at the
time of the purchase, to a hospital that | 17 | | has been issued an active tax
exemption identification | 18 | | number by the Department under Section 1g of this Act.
This | 19 | | paragraph is exempt from the provisions of Section 2-70.
| 20 | | (37) Beginning August 2, 2001, personal property sold | 21 | | to a lessor who
leases the property, under a lease of one | 22 | | year or longer executed or in effect
at the time of the | 23 | | purchase, to a governmental body that has been issued an
| 24 | | active tax exemption identification number by the | 25 | | Department under Section 1g
of this Act. This paragraph is | 26 | | exempt from the provisions of Section 2-70.
|
| | | HB5316 | - 64 - | LRB100 16845 HLH 31986 b |
|
| 1 | | (38) Beginning on January 1, 2002 and through June 30, | 2 | | 2016, tangible personal property purchased
from an | 3 | | Illinois retailer by a taxpayer engaged in centralized | 4 | | purchasing
activities in Illinois who will, upon receipt of | 5 | | the property in Illinois,
temporarily store the property in | 6 | | Illinois (i) for the purpose of subsequently
transporting | 7 | | it outside this State for use or consumption thereafter | 8 | | solely
outside this State or (ii) for the purpose of being | 9 | | processed, fabricated, or
manufactured into, attached to, | 10 | | or incorporated into other tangible personal
property to be | 11 | | transported outside this State and thereafter used or | 12 | | consumed
solely outside this State. The Director of Revenue | 13 | | shall, pursuant to rules
adopted in accordance with the | 14 | | Illinois Administrative Procedure Act, issue a
permit to | 15 | | any taxpayer in good standing with the Department who is | 16 | | eligible for
the exemption under this paragraph (38). The | 17 | | permit issued under
this paragraph (38) shall authorize the | 18 | | holder, to the extent and
in the manner specified in the | 19 | | rules adopted under this Act, to purchase
tangible personal | 20 | | property from a retailer exempt from the taxes imposed by
| 21 | | this Act. Taxpayers shall maintain all necessary books and | 22 | | records to
substantiate the use and consumption of all such | 23 | | tangible personal property
outside of the State of | 24 | | Illinois.
| 25 | | (39) Beginning January 1, 2008, tangible personal | 26 | | property used in the construction or maintenance of a |
| | | HB5316 | - 65 - | LRB100 16845 HLH 31986 b |
|
| 1 | | community water supply, as defined under Section 3.145 of | 2 | | the Environmental Protection Act, that is operated by a | 3 | | not-for-profit corporation that holds a valid water supply | 4 | | permit issued under Title IV of the Environmental | 5 | | Protection Act. This paragraph is exempt from the | 6 | | provisions of Section 2-70.
| 7 | | (40) Beginning January 1, 2010, materials, parts, | 8 | | equipment, components, and furnishings incorporated into | 9 | | or upon an aircraft as part of the modification, | 10 | | refurbishment, completion, replacement, repair, or | 11 | | maintenance of the aircraft. This exemption includes | 12 | | consumable supplies used in the modification, | 13 | | refurbishment, completion, replacement, repair, and | 14 | | maintenance of aircraft, but excludes any materials, | 15 | | parts, equipment, components, and consumable supplies used | 16 | | in the modification, replacement, repair, and maintenance | 17 | | of aircraft engines or power plants, whether such engines | 18 | | or power plants are installed or uninstalled upon any such | 19 | | aircraft. "Consumable supplies" include, but are not | 20 | | limited to, adhesive, tape, sandpaper, general purpose | 21 | | lubricants, cleaning solution, latex gloves, and | 22 | | protective films. This exemption applies only to the sale | 23 | | of qualifying tangible personal property to persons who | 24 | | modify, refurbish, complete, replace, or maintain an | 25 | | aircraft and who (i) hold an Air Agency Certificate and are | 26 | | empowered to operate an approved repair station by the |
| | | HB5316 | - 66 - | LRB100 16845 HLH 31986 b |
|
| 1 | | Federal Aviation Administration, (ii) have a Class IV | 2 | | Rating, and (iii) conduct operations in accordance with | 3 | | Part 145 of the Federal Aviation Regulations. The exemption | 4 | | does not include aircraft operated by a commercial air | 5 | | carrier providing scheduled passenger air service pursuant | 6 | | to authority issued under Part 121 or Part 129 of the | 7 | | Federal Aviation Regulations. The changes made to this | 8 | | paragraph (40) by Public Act 98-534 are declarative of | 9 | | existing law. | 10 | | (41) Tangible personal property sold to a | 11 | | public-facilities corporation, as described in Section | 12 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 13 | | constructing or furnishing a municipal convention hall, | 14 | | but only if the legal title to the municipal convention | 15 | | hall is transferred to the municipality without any further | 16 | | consideration by or on behalf of the municipality at the | 17 | | time of the completion of the municipal convention hall or | 18 | | upon the retirement or redemption of any bonds or other | 19 | | debt instruments issued by the public-facilities | 20 | | corporation in connection with the development of the | 21 | | municipal convention hall. This exemption includes | 22 | | existing public-facilities corporations as provided in | 23 | | Section 11-65-25 of the Illinois Municipal Code. This | 24 | | paragraph is exempt from the provisions of Section 2-70. | 25 | | (42) Beginning January 1, 2017, menstrual pads, | 26 | | tampons, and menstrual cups. |
| | | HB5316 | - 67 - | LRB100 16845 HLH 31986 b |
|
| 1 | | (43) Merchandise that is subject to the Rental Purchase | 2 | | Agreement Occupation and Use Tax. The purchaser must | 3 | | certify that the item is purchased to be rented subject to | 4 | | a rental purchase agreement, as defined in the Rental | 5 | | Purchase Agreement Act, and provide proof of registration | 6 | | under the Rental Purchase Agreement Occupation and Use Tax | 7 | | Act. This paragraph is exempt from the provisions of | 8 | | Section 2-70. | 9 | | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | 10 | | 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff. | 11 | | 1-1-18; revised 9-26-17.)
| 12 | | Section 99. Effective date. This Act takes effect upon | 13 | | becoming law.
|
|