Full Text of HB2918 98th General Assembly
HB2918enr 98TH GENERAL ASSEMBLY |
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| 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 |
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| 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 the effective date | 7 | | of this amendatory Act of the 92nd General
Assembly, however, | 8 | | an entity otherwise eligible for this exemption shall not
make | 9 | | tax-free purchases unless it has an active identification | 10 | | 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 |
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| 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.
| 12 | | (7) Farm chemicals.
| 13 | | (8) Legal tender, currency, medallions, or gold or silver | 14 | | coinage issued by
the State of Illinois, the government of the | 15 | | United States of America, or the
government of any foreign | 16 | | country, and bullion.
| 17 | | (9) Personal property purchased from a teacher-sponsored | 18 | | student
organization affiliated with an elementary or | 19 | | secondary school located in
Illinois.
| 20 | | (10) A motor vehicle of the first division, a motor vehicle | 21 | | of the
second division that is a self-contained motor vehicle | 22 | | designed or
permanently converted to provide living quarters | 23 | | for recreational, camping,
or travel use, with direct walk | 24 | | through to the living quarters from the
driver's seat, or a | 25 | | motor vehicle of the second division that is of the
van | 26 | | configuration designed for the transportation of not less than |
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| 1 | | 7 nor
more than 16 passengers, as defined in Section 1-146 of | 2 | | the Illinois
Vehicle Code, that is used for automobile renting, | 3 | | as defined in the
Automobile Renting Occupation and Use Tax | 4 | | Act.
| 5 | | (11) 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 (11).
Agricultural chemical tender tanks and dry | 20 | | boxes 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 |
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| 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 (11) is exempt
from the | 13 | | provisions of
Section 3-90.
| 14 | | (12) Fuel and petroleum products sold to or used by an air | 15 | | common
carrier, certified by the carrier to be used for | 16 | | consumption, shipment, or
storage in the conduct of its | 17 | | business as an air common carrier, for a
flight destined for or | 18 | | returning from a location or locations
outside the United | 19 | | States without regard to previous or subsequent domestic
| 20 | | stopovers.
| 21 | | (13) Proceeds of mandatory service charges separately
| 22 | | stated on customers' bills for the purchase and consumption of | 23 | | food and
beverages purchased at retail from a retailer, to the | 24 | | extent that the proceeds
of the service charge are in fact | 25 | | turned over as tips or as a substitute
for tips to the | 26 | | employees who participate directly in preparing, serving,
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| 1 | | hosting or cleaning up the food or beverage function with | 2 | | respect to which
the service charge is imposed.
| 3 | | (14) Until July 1, 2003, oil field exploration, drilling, | 4 | | and production
equipment,
including (i) rigs and parts of rigs, | 5 | | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | 6 | | tubular goods,
including casing and drill strings, (iii) pumps | 7 | | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | 8 | | individual replacement part for oil
field exploration, | 9 | | drilling, and production equipment, and (vi) machinery and
| 10 | | equipment purchased
for lease; but excluding motor vehicles | 11 | | required to be registered under the
Illinois Vehicle Code.
| 12 | | (15) Photoprocessing machinery and equipment, including | 13 | | repair and
replacement parts, both new and used, including that
| 14 | | manufactured on special order, certified by the purchaser to be | 15 | | used
primarily for photoprocessing, and including
| 16 | | photoprocessing machinery and equipment purchased for lease.
| 17 | | (16) Coal Until July 1, 2003, and beginning again on the | 18 | | effective date of this amendatory Act of the 97th General | 19 | | Assembly and thereafter, coal and aggregate exploration, | 20 | | mining, offhighway hauling,
processing, maintenance, and | 21 | | reclamation equipment,
including replacement parts and | 22 | | equipment, and
including equipment purchased for lease, but | 23 | | excluding motor
vehicles required to be registered under the | 24 | | Illinois Vehicle Code. The changes made to this Section by | 25 | | Public Act 97-767 apply on and after July 1, 2003, but no claim | 26 | | for credit or refund is allowed on or after the effective date |
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| 1 | | of this amendatory Act of the 98th General Assembly
for such | 2 | | taxes paid during the period beginning July 1, 2003 and ending | 3 | | on the effective date of this amendatory Act of the 98th | 4 | | General Assembly.
| 5 | | (17) Until July 1, 2003, distillation machinery and | 6 | | equipment, sold as a
unit or kit,
assembled or installed by the | 7 | | retailer, certified by the user to be used
only for the | 8 | | production of ethyl alcohol that will be used for consumption
| 9 | | as motor fuel or as a component of motor fuel for the personal | 10 | | use of the
user, and not subject to sale or resale.
| 11 | | (18) Manufacturing and assembling machinery and equipment | 12 | | used
primarily in the process of manufacturing or assembling | 13 | | tangible
personal property for wholesale or retail sale or | 14 | | lease, whether that sale
or lease is made directly by the | 15 | | manufacturer or by some other person,
whether the materials | 16 | | used in the process are
owned by the manufacturer or some other | 17 | | person, or whether that sale or
lease is made apart from or as | 18 | | an incident to the seller's engaging in
the service occupation | 19 | | of producing machines, tools, dies, jigs,
patterns, gauges, or | 20 | | other similar items of no commercial value on
special order for | 21 | | a particular purchaser.
| 22 | | (19) Personal property delivered to a purchaser or | 23 | | purchaser's donee
inside Illinois when the purchase order for | 24 | | that personal property was
received by a florist located | 25 | | outside Illinois who has a florist located
inside Illinois | 26 | | deliver the personal property.
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| 1 | | (20) Semen used for artificial insemination of livestock | 2 | | for direct
agricultural production.
| 3 | | (21) Horses, or interests in horses, registered with and | 4 | | meeting the
requirements of any of the
Arabian Horse Club | 5 | | Registry of America, Appaloosa Horse Club, American Quarter
| 6 | | Horse Association, United States
Trotting Association, or | 7 | | Jockey Club, as appropriate, used for
purposes of breeding or | 8 | | racing for prizes. This item (21) is exempt from the provisions | 9 | | of Section 3-90, and the exemption provided for under this item | 10 | | (21) applies for all periods beginning May 30, 1995, but no | 11 | | claim for credit or refund is allowed on or after January 1, | 12 | | 2008
for such taxes paid during the period beginning May 30, | 13 | | 2000 and ending on January 1, 2008.
| 14 | | (22) Computers and communications equipment utilized for | 15 | | any
hospital
purpose
and equipment used in the diagnosis,
| 16 | | analysis, or treatment of hospital patients purchased by a | 17 | | lessor who leases
the
equipment, under a lease of one year or | 18 | | longer executed or in effect at the
time the lessor would | 19 | | otherwise be subject to the tax imposed by this Act, to a
| 20 | | hospital
that has been issued an active tax exemption | 21 | | identification number by
the
Department under Section 1g of the | 22 | | Retailers' Occupation Tax Act. If the
equipment is leased in a | 23 | | manner that does not qualify for
this exemption or is used in | 24 | | any other non-exempt manner, the lessor
shall be liable for the
| 25 | | tax imposed under this Act or the Service Use Tax Act, as the | 26 | | case may
be, based on the fair market value of the property at |
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| 1 | | the time the
non-qualifying use occurs. No lessor shall collect | 2 | | or attempt to collect an
amount (however
designated) that | 3 | | purports to reimburse that lessor for the tax imposed by this
| 4 | | Act or the Service Use Tax Act, as the case may be, if the tax | 5 | | has not been
paid by the lessor. If a lessor improperly | 6 | | collects any such amount from the
lessee, the lessee shall have | 7 | | a legal right to claim a refund of that amount
from the lessor. | 8 | | If, however, that amount is not refunded to the lessee for
any | 9 | | reason, the lessor is liable to pay that amount to the | 10 | | Department.
| 11 | | (23) Personal property purchased by a lessor who leases the
| 12 | | property, under
a
lease of
one year or longer executed or in | 13 | | effect at the time
the lessor would otherwise be subject to the | 14 | | tax imposed by this Act,
to a governmental body
that has been | 15 | | issued an active sales tax exemption identification number by | 16 | | the
Department under Section 1g of the Retailers' Occupation | 17 | | Tax Act.
If the
property is leased in a manner that does not | 18 | | qualify for
this exemption
or used in any other non-exempt | 19 | | manner, the lessor shall be liable for the
tax imposed under | 20 | | this Act or the Service Use Tax Act, as the case may
be, based | 21 | | on the fair market value of the property at the time the
| 22 | | non-qualifying use occurs. No lessor shall collect or attempt | 23 | | to collect an
amount (however
designated) that purports to | 24 | | reimburse that lessor for the tax imposed by this
Act or the | 25 | | Service Use Tax Act, as the case may be, if the tax has not been
| 26 | | paid by the lessor. If a lessor improperly collects any such |
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| 1 | | amount from the
lessee, the lessee shall have a legal right to | 2 | | claim a refund of that amount
from the lessor. If, however, | 3 | | that amount is not refunded to the lessee for
any reason, the | 4 | | lessor is liable to pay that amount to the Department.
| 5 | | (24) Beginning with taxable years ending on or after | 6 | | December
31, 1995
and
ending with taxable years ending on or | 7 | | before December 31, 2004,
personal property that is
donated for | 8 | | disaster relief to be used in a State or federally declared
| 9 | | disaster area in Illinois or bordering Illinois by a | 10 | | manufacturer or retailer
that is registered in this State to a | 11 | | corporation, society, association,
foundation, or institution | 12 | | that has been issued a sales tax exemption
identification | 13 | | number by the Department that assists victims of the disaster
| 14 | | who reside within the declared disaster area.
| 15 | | (25) Beginning with taxable years ending on or after | 16 | | December
31, 1995 and
ending with taxable years ending on or | 17 | | before December 31, 2004, personal
property that is used in the | 18 | | performance of infrastructure repairs in this
State, including | 19 | | but not limited to municipal roads and streets, access roads,
| 20 | | bridges, sidewalks, waste disposal systems, water and sewer | 21 | | line extensions,
water distribution and purification | 22 | | facilities, storm water drainage and
retention facilities, and | 23 | | sewage treatment facilities, resulting from a State
or | 24 | | federally declared disaster in Illinois or bordering Illinois | 25 | | when such
repairs are initiated on facilities located in the | 26 | | declared disaster area
within 6 months after the disaster.
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| 1 | | (26) Beginning July 1, 1999, game or game birds purchased | 2 | | at a "game
breeding
and hunting preserve area" as that term is
| 3 | | used in
the Wildlife Code. This paragraph is exempt from the | 4 | | provisions
of
Section 3-90.
| 5 | | (27) A motor vehicle, as that term is defined in Section | 6 | | 1-146
of the
Illinois
Vehicle Code, that is donated to a | 7 | | corporation, limited liability company,
society, association, | 8 | | foundation, or institution that is determined by the
Department | 9 | | to be organized and operated exclusively for educational | 10 | | purposes.
For purposes of this exemption, "a corporation, | 11 | | limited liability company,
society, association, foundation, | 12 | | or institution organized and operated
exclusively for | 13 | | educational purposes" means all tax-supported public schools,
| 14 | | private schools that offer systematic instruction in useful | 15 | | branches of
learning by methods common to public schools and | 16 | | that compare favorably in
their scope and intensity with the | 17 | | course of study presented in tax-supported
schools, and | 18 | | vocational or technical schools or institutes organized and
| 19 | | operated exclusively to provide a course of study of not less | 20 | | than 6 weeks
duration and designed to prepare individuals to | 21 | | follow a trade or to pursue a
manual, technical, mechanical, | 22 | | industrial, business, or commercial
occupation.
| 23 | | (28) Beginning January 1, 2000, personal property, | 24 | | including
food,
purchased through fundraising
events for the | 25 | | benefit of
a public or private elementary or
secondary school, | 26 | | a group of those schools, or one or more school
districts if |
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| 1 | | the events are
sponsored by an entity recognized by the school | 2 | | district that consists
primarily of volunteers and includes
| 3 | | parents and teachers of the school children. This paragraph | 4 | | does not apply
to fundraising
events (i) for the benefit of | 5 | | private home instruction or (ii)
for which the fundraising | 6 | | entity purchases the personal property sold at
the events from | 7 | | another individual or entity that sold the property for the
| 8 | | purpose of resale by the fundraising entity and that
profits | 9 | | from the sale to the
fundraising entity. This paragraph is | 10 | | exempt
from the provisions
of Section 3-90.
| 11 | | (29) Beginning January 1, 2000 and through December 31, | 12 | | 2001, new or
used automatic vending
machines that prepare and | 13 | | serve hot food and beverages, including coffee, soup,
and
other | 14 | | items, and replacement parts for these machines.
Beginning | 15 | | January 1,
2002 and through June 30, 2003, machines and parts | 16 | | for machines used in
commercial, coin-operated amusement and | 17 | | vending business if a use or occupation
tax is paid on the | 18 | | gross receipts derived from the use of the commercial,
| 19 | | coin-operated amusement and vending machines.
This
paragraph
| 20 | | is exempt from the provisions of Section 3-90.
| 21 | | (30) Beginning January 1, 2001 and through June 30, 2016, | 22 | | food for human consumption that is to be consumed off the | 23 | | premises
where it is sold (other than alcoholic beverages, soft | 24 | | drinks, and food that
has been prepared for immediate | 25 | | consumption) and prescription and
nonprescription medicines, | 26 | | drugs, medical appliances, and insulin, urine
testing |
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| 1 | | materials, syringes, and needles used by diabetics, for human | 2 | | use, when
purchased for use by a person receiving medical | 3 | | assistance under Article V of
the Illinois Public Aid Code who | 4 | | resides in a licensed long-term care facility,
as defined in | 5 | | the Nursing Home Care Act, or in a licensed facility as defined | 6 | | in the ID/DD Community Care Act or the Specialized Mental | 7 | | Health Rehabilitation Act.
| 8 | | (31) Beginning on
the effective date of this amendatory Act | 9 | | of the 92nd General Assembly,
computers and communications | 10 | | equipment
utilized for any hospital purpose and equipment used | 11 | | in the diagnosis,
analysis, or treatment of hospital patients | 12 | | purchased by a lessor who leases
the equipment, under a lease | 13 | | of one year or longer executed or in effect at the
time the | 14 | | lessor would otherwise be subject to the tax imposed by this | 15 | | Act, to a
hospital that has been issued an active tax exemption | 16 | | identification number by
the Department under Section 1g of the | 17 | | Retailers' Occupation Tax Act. If the
equipment is leased in a | 18 | | manner that does not qualify for this exemption or is
used in | 19 | | any other nonexempt manner, the lessor shall be liable for the | 20 | | tax
imposed under this Act or the Service Use Tax Act, as the | 21 | | case may be, based on
the fair market value of the property at | 22 | | the time the nonqualifying use
occurs. No lessor shall collect | 23 | | or attempt to collect an amount (however
designated) that | 24 | | purports to reimburse that lessor for the tax imposed by this
| 25 | | Act or the Service Use Tax Act, as the case may be, if the tax | 26 | | has not been
paid by the lessor. If a lessor improperly |
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| 1 | | collects any such amount from the
lessee, the lessee shall have | 2 | | a legal right to claim a refund of that amount
from the lessor. | 3 | | If, however, that amount is not refunded to the lessee for
any | 4 | | reason, the lessor is liable to pay that amount to the | 5 | | Department.
This paragraph is exempt from the provisions of | 6 | | Section 3-90.
| 7 | | (32) Beginning on
the effective date of this amendatory Act | 8 | | of the 92nd General Assembly,
personal property purchased by a | 9 | | lessor who leases the property,
under a lease of one year or | 10 | | longer executed or in effect at the time the
lessor would | 11 | | otherwise be subject to the tax imposed by this Act, to a
| 12 | | governmental body that has been issued an active sales tax | 13 | | exemption
identification number by the Department under | 14 | | Section 1g of the Retailers'
Occupation Tax Act. If the | 15 | | property is leased in a manner that does not
qualify for this | 16 | | exemption or used in any other nonexempt manner, the lessor
| 17 | | shall be liable for the tax imposed under this Act or the | 18 | | Service Use Tax Act,
as the case may be, based on the fair | 19 | | market value of the property at the time
the nonqualifying use | 20 | | occurs. No lessor shall collect or attempt to collect
an amount | 21 | | (however designated) that purports to reimburse that lessor for | 22 | | the
tax imposed by this Act or the Service Use Tax Act, as the | 23 | | case may be, if the
tax has not been paid by the lessor. If a | 24 | | lessor improperly collects any such
amount from the lessee, the | 25 | | lessee shall have a legal right to claim a refund
of that | 26 | | amount from the lessor. If, however, that amount is not |
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| 1 | | refunded to
the lessee for any reason, the lessor is liable to | 2 | | pay that amount to the
Department. This paragraph is exempt | 3 | | from the provisions of Section 3-90.
| 4 | | (33) On and after July 1, 2003 and through June 30, 2004, | 5 | | the use in this State of motor vehicles of
the second division | 6 | | with a gross vehicle weight in excess of 8,000 pounds and
that | 7 | | are subject to the commercial distribution fee imposed under | 8 | | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | 9 | | 1, 2004 and through June 30, 2005, the use in this State of | 10 | | motor vehicles of the second division: (i) with a gross vehicle | 11 | | weight rating in excess of 8,000 pounds; (ii) that are subject | 12 | | to the commercial distribution fee imposed under Section | 13 | | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | 14 | | primarily used for commercial purposes. Through June 30, 2005, | 15 | | this exemption applies to repair and
replacement parts added | 16 | | after the initial purchase of such a motor vehicle if
that | 17 | | motor
vehicle is used in a manner that would qualify for the | 18 | | rolling stock exemption
otherwise provided for in this Act. For | 19 | | purposes of this paragraph, the term "used for commercial | 20 | | purposes" means the transportation of persons or property in | 21 | | furtherance of any commercial or industrial enterprise, | 22 | | whether for-hire or not.
| 23 | | (34) Beginning January 1, 2008, tangible personal property | 24 | | used in the construction or maintenance of a community water | 25 | | supply, as defined under Section 3.145 of the Environmental | 26 | | Protection Act, that is operated by a not-for-profit |
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| 1 | | corporation that holds a valid water supply permit issued under | 2 | | Title IV of the Environmental Protection Act. This paragraph is | 3 | | exempt from the provisions of Section 3-90. | 4 | | (35) Beginning January 1, 2010, materials, parts, | 5 | | equipment, components, and furnishings incorporated into or | 6 | | upon an aircraft as part of the modification, refurbishment, | 7 | | completion, replacement, repair, or maintenance of the | 8 | | aircraft. This exemption includes consumable supplies used in | 9 | | the modification, refurbishment, completion, replacement, | 10 | | repair, and maintenance of aircraft, but excludes any | 11 | | materials, parts, equipment, components, and consumable | 12 | | supplies used in the modification, replacement, repair, and | 13 | | maintenance of aircraft engines or power plants, whether such | 14 | | engines or power plants are installed or uninstalled upon any | 15 | | such aircraft. "Consumable supplies" include, but are not | 16 | | limited to, adhesive, tape, sandpaper, general purpose | 17 | | lubricants, cleaning solution, latex gloves, and protective | 18 | | films. This exemption applies only to those organizations that | 19 | | (i) hold an Air Agency Certificate and are empowered to operate | 20 | | an approved repair station by the Federal Aviation | 21 | | Administration, (ii) have a Class IV Rating, and (iii) conduct | 22 | | operations in accordance with Part 145 of the Federal Aviation | 23 | | Regulations. The exemption does not include aircraft operated | 24 | | by a commercial air carrier providing scheduled passenger air | 25 | | service pursuant to authority issued under Part 121 or Part 129 | 26 | | of the Federal Aviation Regulations. |
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| 1 | | (36) Tangible personal property purchased by a | 2 | | public-facilities corporation, as described in Section | 3 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 4 | | constructing or furnishing a municipal convention hall, but | 5 | | only if the legal title to the municipal convention hall is | 6 | | transferred to the municipality without any further | 7 | | consideration by or on behalf of the municipality at the time | 8 | | of the completion of the municipal convention hall or upon the | 9 | | retirement or redemption of any bonds or other debt instruments | 10 | | issued by the public-facilities corporation in connection with | 11 | | the development of the municipal convention hall. This | 12 | | exemption includes existing public-facilities corporations as | 13 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 14 | | This paragraph is exempt from the provisions of Section 3-90. | 15 | | (Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; | 16 | | 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. | 17 | | 7-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431, eff. | 18 | | 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12.)
| 19 | | Section 10. The Service Use Tax Act is amended by changing | 20 | | Section 3-5 as follows:
| 21 | | (35 ILCS 110/3-5)
| 22 | | Sec. 3-5. Exemptions. Use of the following tangible | 23 | | personal property
is exempt from the tax imposed by this Act:
| 24 | | (1) Personal property purchased from a corporation, |
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| 1 | | society,
association, foundation, institution, or | 2 | | organization, other than a limited
liability company, that is | 3 | | organized and operated as a not-for-profit service
enterprise | 4 | | for the benefit of persons 65 years of age or older if the | 5 | | personal
property was not purchased by the enterprise for the | 6 | | purpose of resale by the
enterprise.
| 7 | | (2) Personal property purchased by a non-profit Illinois | 8 | | county fair
association for use in conducting, operating, or | 9 | | promoting the county fair.
| 10 | | (3) Personal property purchased by a not-for-profit arts
or | 11 | | cultural
organization that establishes, by proof required by | 12 | | the Department by rule,
that it has received an exemption under | 13 | | Section 501(c)(3) of the Internal
Revenue Code and that is | 14 | | organized and operated primarily for the
presentation
or | 15 | | support of arts or cultural programming, activities, or | 16 | | services. These
organizations include, but are not limited to, | 17 | | music and dramatic arts
organizations such as symphony | 18 | | orchestras and theatrical groups, arts and
cultural service | 19 | | organizations, local arts councils, visual arts organizations,
| 20 | | and media arts organizations.
On and after the effective date | 21 | | of this amendatory Act of the 92nd General
Assembly, however, | 22 | | an entity otherwise eligible for this exemption shall not
make | 23 | | tax-free purchases unless it has an active identification | 24 | | number issued by
the Department.
| 25 | | (4) Legal tender, currency, medallions, or gold or silver | 26 | | coinage issued
by the State of Illinois, the government of the |
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| 1 | | United States of America,
or the government of any foreign | 2 | | country, and bullion.
| 3 | | (5) Until July 1, 2003 and beginning again on September 1, | 4 | | 2004 through August 30, 2014, graphic arts machinery and | 5 | | equipment, including
repair and
replacement parts, both new and | 6 | | used, and including that manufactured on
special order or | 7 | | purchased for lease, certified by the purchaser to be used
| 8 | | primarily for graphic arts production.
Equipment includes | 9 | | chemicals or
chemicals acting as catalysts but only if
the | 10 | | chemicals or chemicals acting as catalysts effect a direct and | 11 | | immediate
change upon a graphic arts product.
| 12 | | (6) Personal property purchased from a teacher-sponsored | 13 | | student
organization affiliated with an elementary or | 14 | | secondary school located
in Illinois.
| 15 | | (7) Farm machinery and equipment, both new and used, | 16 | | including that
manufactured on special order, certified by the | 17 | | purchaser to be used
primarily for production agriculture or | 18 | | State or federal agricultural
programs, including individual | 19 | | replacement parts for the machinery and
equipment, including | 20 | | machinery and equipment purchased for lease,
and including | 21 | | implements of husbandry defined in Section 1-130 of
the | 22 | | Illinois Vehicle Code, farm machinery and agricultural | 23 | | chemical and
fertilizer spreaders, and nurse wagons required to | 24 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 25 | | but
excluding other motor vehicles required to be registered | 26 | | under the Illinois
Vehicle Code.
Horticultural polyhouses or |
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| 1 | | hoop houses used for propagating, growing, or
overwintering | 2 | | plants shall be considered farm machinery and equipment under
| 3 | | this item (7).
Agricultural chemical tender tanks and dry boxes | 4 | | shall include units sold
separately from a motor vehicle | 5 | | required to be licensed and units sold mounted
on a motor | 6 | | vehicle required to be licensed if the selling price of the | 7 | | tender
is separately stated.
| 8 | | Farm machinery and equipment shall include precision | 9 | | farming equipment
that is
installed or purchased to be | 10 | | installed on farm machinery and equipment
including, but not | 11 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 12 | | or spreaders.
Precision farming equipment includes, but is not | 13 | | limited to,
soil testing sensors, computers, monitors, | 14 | | software, global positioning
and mapping systems, and other | 15 | | such equipment.
| 16 | | Farm machinery and equipment also includes computers, | 17 | | sensors, software, and
related equipment used primarily in the
| 18 | | computer-assisted operation of production agriculture | 19 | | facilities, equipment,
and activities such as, but
not limited | 20 | | to,
the collection, monitoring, and correlation of
animal and | 21 | | crop data for the purpose of
formulating animal diets and | 22 | | agricultural chemicals. This item (7) is exempt
from the | 23 | | provisions of
Section 3-75.
| 24 | | (8) Fuel and petroleum products sold to or used by an air | 25 | | common
carrier, certified by the carrier to be used for | 26 | | consumption, shipment, or
storage in the conduct of its |
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| 1 | | business as an air common carrier, for a
flight destined for or | 2 | | returning from a location or locations
outside the United | 3 | | States without regard to previous or subsequent domestic
| 4 | | stopovers.
| 5 | | (9) Proceeds of mandatory service charges separately | 6 | | stated on
customers' bills for the purchase and consumption of | 7 | | food and beverages
acquired as an incident to the purchase of a | 8 | | service from a serviceman, to
the extent that the proceeds of | 9 | | the service charge are in fact
turned over as tips or as a | 10 | | substitute for tips to the employees who
participate directly | 11 | | in preparing, serving, hosting or cleaning up the
food or | 12 | | beverage function with respect to which the service charge is | 13 | | imposed.
| 14 | | (10) Until July 1, 2003, oil field exploration, drilling, | 15 | | and production
equipment, including
(i) rigs and parts of rigs, | 16 | | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 17 | | tubular goods, including casing and
drill strings, (iii) pumps | 18 | | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 19 | | individual replacement part for oil field exploration,
| 20 | | drilling, and production equipment, and (vi) machinery and | 21 | | equipment purchased
for lease; but
excluding motor vehicles | 22 | | required to be registered under the Illinois
Vehicle Code.
| 23 | | (11) Proceeds from the sale of photoprocessing machinery | 24 | | and
equipment, including repair and replacement parts, both new | 25 | | and
used, including that manufactured on special order, | 26 | | certified by the
purchaser to be used primarily for |
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| 1 | | photoprocessing, and including
photoprocessing machinery and | 2 | | equipment purchased for lease.
| 3 | | (12) Coal Until July 1, 2003, and beginning again on the | 4 | | effective date of this amendatory Act of the 97th General | 5 | | Assembly and thereafter, coal and aggregate exploration, | 6 | | mining, offhighway hauling,
processing,
maintenance, and | 7 | | reclamation equipment, including
replacement parts and | 8 | | equipment, and including
equipment purchased for lease, but | 9 | | excluding motor vehicles required to be
registered under the | 10 | | Illinois Vehicle Code. The changes made to this Section by | 11 | | Public Act 97-767 apply on and after July 1, 2003, but no claim | 12 | | for credit or refund is allowed on or after the effective date | 13 | | of this amendatory Act of the 98th General Assembly
for such | 14 | | taxes paid during the period beginning July 1, 2003 and ending | 15 | | on the effective date of this amendatory Act of the 98th | 16 | | General Assembly.
| 17 | | (13) Semen used for artificial insemination of livestock | 18 | | for direct
agricultural production.
| 19 | | (14) Horses, or interests in horses, registered with and | 20 | | meeting the
requirements of any of the
Arabian Horse Club | 21 | | Registry of America, Appaloosa Horse Club, American Quarter
| 22 | | Horse Association, United States
Trotting Association, or | 23 | | Jockey Club, as appropriate, used for
purposes of breeding or | 24 | | racing for prizes. This item (14) is exempt from the provisions | 25 | | of Section 3-75, and the exemption provided for under this item | 26 | | (14) applies for all periods beginning May 30, 1995, but no |
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| 1 | | claim for credit or refund is allowed on or after the effective | 2 | | date of this amendatory Act of the 95th General Assembly for | 3 | | such taxes paid during the period beginning May 30, 2000 and | 4 | | ending on the effective date of this amendatory Act of the 95th | 5 | | General Assembly.
| 6 | | (15) Computers and communications equipment utilized for | 7 | | any
hospital
purpose
and equipment used in the diagnosis,
| 8 | | analysis, or treatment of hospital patients purchased by a | 9 | | lessor who leases
the
equipment, under a lease of one year or | 10 | | longer executed or in effect at the
time
the lessor would | 11 | | otherwise be subject to the tax imposed by this Act,
to a
| 12 | | hospital
that has been issued an active tax exemption | 13 | | identification number by the
Department under Section 1g of the | 14 | | Retailers' Occupation Tax Act.
If the
equipment is leased in a | 15 | | manner that does not qualify for
this exemption
or is used in | 16 | | any other non-exempt manner,
the lessor shall be liable for the
| 17 | | tax imposed under this Act or the Use Tax Act, as the case may
| 18 | | be, based on the fair market value of the property at the time | 19 | | the
non-qualifying use occurs. No lessor shall collect or | 20 | | attempt to collect an
amount (however
designated) that purports | 21 | | to reimburse that lessor for the tax imposed by this
Act or the | 22 | | Use Tax Act, as the case may be, if the tax has not been
paid by | 23 | | the lessor. If a lessor improperly collects any such amount | 24 | | from the
lessee, the lessee shall have a legal right to claim a | 25 | | refund of that amount
from the lessor. If, however, that amount | 26 | | is not refunded to the lessee for
any reason, the lessor is |
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| 1 | | liable to pay that amount to the Department.
| 2 | | (16) Personal property purchased by a lessor who leases the
| 3 | | property, under
a
lease of one year or longer executed or in | 4 | | effect at the time
the lessor would otherwise be subject to the | 5 | | tax imposed by this Act,
to a governmental body
that has been | 6 | | issued an active tax exemption identification number by the
| 7 | | Department under Section 1g of the Retailers' Occupation Tax | 8 | | Act.
If the
property is leased in a manner that does not | 9 | | qualify for
this exemption
or is used in any other non-exempt | 10 | | manner,
the lessor shall be liable for the
tax imposed under | 11 | | this Act or the Use Tax Act, as the case may
be, based on the | 12 | | fair market value of the property at the time the
| 13 | | non-qualifying use occurs. No lessor shall collect or attempt | 14 | | to collect an
amount (however
designated) that purports to | 15 | | reimburse that lessor for the tax imposed by this
Act or the | 16 | | Use Tax Act, as the case may be, if the tax has not been
paid by | 17 | | the lessor. If a lessor improperly collects any such amount | 18 | | from the
lessee, the lessee shall have a legal right to claim a | 19 | | refund of that amount
from the lessor. If, however, that amount | 20 | | is not refunded to the lessee for
any reason, the lessor is | 21 | | liable to pay that amount to the Department.
| 22 | | (17) Beginning with taxable years ending on or after | 23 | | December
31,
1995
and
ending with taxable years ending on or | 24 | | before December 31, 2004,
personal property that is
donated for | 25 | | disaster relief to be used in a State or federally declared
| 26 | | disaster area in Illinois or bordering Illinois by a |
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| 1 | | manufacturer or retailer
that is registered in this State to a | 2 | | corporation, society, association,
foundation, or institution | 3 | | that has been issued a sales tax exemption
identification | 4 | | number by the Department that assists victims of the disaster
| 5 | | who reside within the declared disaster area.
| 6 | | (18) Beginning with taxable years ending on or after | 7 | | December
31, 1995 and
ending with taxable years ending on or | 8 | | before December 31, 2004, personal
property that is used in the | 9 | | performance of infrastructure repairs in this
State, including | 10 | | but not limited to municipal roads and streets, access roads,
| 11 | | bridges, sidewalks, waste disposal systems, water and sewer | 12 | | line extensions,
water distribution and purification | 13 | | facilities, storm water drainage and
retention facilities, and | 14 | | sewage treatment facilities, resulting from a State
or | 15 | | federally declared disaster in Illinois or bordering Illinois | 16 | | when such
repairs are initiated on facilities located in the | 17 | | declared disaster area
within 6 months after the disaster.
| 18 | | (19) Beginning July 1, 1999, game or game birds purchased | 19 | | at a "game
breeding
and hunting preserve area" as that term is
| 20 | | used in
the Wildlife Code. This paragraph is exempt from the | 21 | | provisions
of
Section 3-75.
| 22 | | (20) A motor vehicle, as that term is defined in Section | 23 | | 1-146
of the
Illinois Vehicle Code, that is donated to a | 24 | | corporation, limited liability
company, society, association, | 25 | | foundation, or institution that is determined by
the Department | 26 | | to be organized and operated exclusively for educational
|
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| 1 | | purposes. For purposes of this exemption, "a corporation, | 2 | | limited liability
company, society, association, foundation, | 3 | | or institution organized and
operated
exclusively for | 4 | | educational purposes" means all tax-supported public schools,
| 5 | | private schools that offer systematic instruction in useful | 6 | | branches of
learning by methods common to public schools and | 7 | | that compare favorably in
their scope and intensity with the | 8 | | course of study presented in tax-supported
schools, and | 9 | | vocational or technical schools or institutes organized and
| 10 | | operated exclusively to provide a course of study of not less | 11 | | than 6 weeks
duration and designed to prepare individuals to | 12 | | follow a trade or to pursue a
manual, technical, mechanical, | 13 | | industrial, business, or commercial
occupation.
| 14 | | (21) Beginning January 1, 2000, personal property, | 15 | | including
food,
purchased through fundraising
events for the | 16 | | benefit of
a public or private elementary or
secondary school, | 17 | | a group of those schools, or one or more school
districts if | 18 | | the events are
sponsored by an entity recognized by the school | 19 | | district that consists
primarily of volunteers and includes
| 20 | | parents and teachers of the school children. This paragraph | 21 | | does not apply
to fundraising
events (i) for the benefit of | 22 | | private home instruction or (ii)
for which the fundraising | 23 | | entity purchases the personal property sold at
the events from | 24 | | another individual or entity that sold the property for the
| 25 | | purpose of resale by the fundraising entity and that
profits | 26 | | from the sale to the
fundraising entity. This paragraph is |
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| 1 | | exempt
from the provisions
of Section 3-75.
| 2 | | (22) Beginning January 1, 2000
and through December 31, | 3 | | 2001, new or used automatic vending
machines that prepare and | 4 | | serve hot food and beverages, including coffee, soup,
and
other | 5 | | items, and replacement parts for these machines.
Beginning | 6 | | January 1,
2002 and through June 30, 2003, machines and parts | 7 | | for machines used in
commercial, coin-operated
amusement
and | 8 | | vending business if a use or occupation tax is paid on the | 9 | | gross receipts
derived from
the use of the commercial, | 10 | | coin-operated amusement and vending machines.
This
paragraph
| 11 | | is exempt from the provisions of Section 3-75.
| 12 | | (23) Beginning August 23, 2001 and through June 30, 2016, | 13 | | food for human consumption that is to be consumed off the
| 14 | | premises
where it is sold (other than alcoholic beverages, soft | 15 | | drinks, and food that
has been prepared for immediate | 16 | | consumption) and prescription and
nonprescription medicines, | 17 | | drugs, medical appliances, and insulin, urine
testing | 18 | | materials, syringes, and needles used by diabetics, for human | 19 | | use, when
purchased for use by a person receiving medical | 20 | | assistance under Article V of
the Illinois Public Aid Code who | 21 | | resides in a licensed long-term care facility,
as defined in | 22 | | the Nursing Home Care Act, or in a licensed facility as defined | 23 | | in the ID/DD Community Care Act or the Specialized Mental | 24 | | Health Rehabilitation Act.
| 25 | | (24) Beginning on the effective date of this amendatory Act | 26 | | of the 92nd
General Assembly, computers and communications |
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| 1 | | equipment
utilized for any hospital purpose and equipment used | 2 | | in the diagnosis,
analysis, or treatment of hospital patients | 3 | | purchased by a lessor who leases
the equipment, under a lease | 4 | | of one year or longer executed or in effect at the
time the | 5 | | lessor would otherwise be subject to the tax imposed by this | 6 | | Act, to a
hospital that has been issued an active tax exemption | 7 | | identification number by
the Department under Section 1g of the | 8 | | Retailers' Occupation Tax Act. If the
equipment is leased in a | 9 | | manner that does not qualify for this exemption or is
used in | 10 | | any other nonexempt manner, the lessor shall be liable for the
| 11 | | tax imposed under this Act or the Use Tax Act, as the case may | 12 | | be, based on the
fair market value of the property at the time | 13 | | the nonqualifying use occurs.
No lessor shall collect or | 14 | | attempt to collect an amount (however
designated) that purports | 15 | | to reimburse that lessor for the tax imposed by this
Act or the | 16 | | Use Tax Act, as the case may be, if the tax has not been
paid by | 17 | | the lessor. If a lessor improperly collects any such amount | 18 | | from the
lessee, the lessee shall have a legal right to claim a | 19 | | refund of that amount
from the lessor. If, however, that amount | 20 | | is not refunded to the lessee for
any reason, the lessor is | 21 | | liable to pay that amount to the Department.
This paragraph is | 22 | | exempt from the provisions of Section 3-75.
| 23 | | (25) Beginning
on the effective date of this amendatory Act | 24 | | of the 92nd General Assembly,
personal property purchased by a | 25 | | lessor
who leases the property, under a lease of one year or | 26 | | longer executed or in
effect at the time the lessor would |
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| 1 | | otherwise be subject to the tax imposed by
this Act, to a | 2 | | governmental body that has been issued an active tax exemption
| 3 | | identification number by the Department under Section 1g of the | 4 | | Retailers'
Occupation Tax Act. If the property is leased in a | 5 | | manner that does not
qualify for this exemption or is used in | 6 | | any other nonexempt manner, the
lessor shall be liable for the | 7 | | tax imposed under this Act or the Use Tax Act,
as the case may | 8 | | be, based on the fair market value of the property at the time
| 9 | | the nonqualifying use occurs. No lessor shall collect or | 10 | | attempt to collect
an amount (however designated) that purports | 11 | | to reimburse that lessor for the
tax imposed by this Act or the | 12 | | Use Tax Act, as the case may be, if the tax has
not been paid by | 13 | | the lessor. If a lessor improperly collects any such amount
| 14 | | from the lessee, the lessee shall have a legal right to claim a | 15 | | refund of that
amount from the lessor. If, however, that amount | 16 | | is not refunded to the lessee
for any reason, the lessor is | 17 | | liable to pay that amount to the Department.
This paragraph is | 18 | | exempt from the provisions of Section 3-75.
| 19 | | (26) Beginning January 1, 2008, tangible personal property | 20 | | used in the construction or maintenance of a community water | 21 | | supply, as defined under Section 3.145 of the Environmental | 22 | | Protection Act, that is operated by a not-for-profit | 23 | | corporation that holds a valid water supply permit issued under | 24 | | Title IV of the Environmental Protection Act. This paragraph is | 25 | | exempt from the provisions of Section 3-75.
| 26 | | (27) Beginning January 1, 2010, materials, parts, |
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| 1 | | equipment, components, and furnishings incorporated into or | 2 | | upon an aircraft as part of the modification, refurbishment, | 3 | | completion, replacement, repair, or maintenance of the | 4 | | aircraft. This exemption includes consumable supplies used in | 5 | | the modification, refurbishment, completion, replacement, | 6 | | repair, and maintenance of aircraft, but excludes any | 7 | | materials, parts, equipment, components, and consumable | 8 | | supplies used in the modification, replacement, repair, and | 9 | | maintenance of aircraft engines or power plants, whether such | 10 | | engines or power plants are installed or uninstalled upon any | 11 | | such aircraft. "Consumable supplies" include, but are not | 12 | | limited to, adhesive, tape, sandpaper, general purpose | 13 | | lubricants, cleaning solution, latex gloves, and protective | 14 | | films. This exemption applies only to those organizations that | 15 | | (i) hold an Air Agency Certificate and are empowered to operate | 16 | | an approved repair station by the Federal Aviation | 17 | | Administration, (ii) have a Class IV Rating, and (iii) conduct | 18 | | operations in accordance with Part 145 of the Federal Aviation | 19 | | Regulations. The exemption does not include aircraft operated | 20 | | by a commercial air carrier providing scheduled passenger air | 21 | | service pursuant to authority issued under Part 121 or Part 129 | 22 | | of the Federal Aviation Regulations. | 23 | | (28) Tangible personal property purchased by a | 24 | | public-facilities corporation, as described in Section | 25 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 26 | | constructing or furnishing a municipal convention hall, but |
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| 1 | | only if the legal title to the municipal convention hall is | 2 | | transferred to the municipality without any further | 3 | | consideration by or on behalf of the municipality at the time | 4 | | of the completion of the municipal convention hall or upon the | 5 | | retirement or redemption of any bonds or other debt instruments | 6 | | issued by the public-facilities corporation in connection with | 7 | | the development of the municipal convention hall. This | 8 | | exemption includes existing public-facilities corporations as | 9 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 10 | | This paragraph is exempt from the provisions of Section 3-75. | 11 | | (Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; | 12 | | 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. | 13 | | 7-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431, eff. | 14 | | 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12.)
| 15 | | Section 15. The Service Occupation Tax Act is amended by | 16 | | changing Section 3-5 as follows:
| 17 | | (35 ILCS 115/3-5)
| 18 | | Sec. 3-5. Exemptions. The following tangible personal | 19 | | property is
exempt from the tax imposed by this Act:
| 20 | | (1) Personal property sold by a corporation, society, | 21 | | association,
foundation, institution, or organization, other | 22 | | than a limited liability
company, that is organized and | 23 | | operated as a not-for-profit service enterprise
for the benefit | 24 | | of persons 65 years of age or older if the personal property
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| 1 | | was not purchased by the enterprise for the purpose of resale | 2 | | by the
enterprise.
| 3 | | (2) Personal property purchased by a not-for-profit | 4 | | Illinois county fair
association for use in conducting, | 5 | | operating, or promoting the county fair.
| 6 | | (3) Personal property purchased by any not-for-profit
arts | 7 | | or cultural organization that establishes, by proof required by | 8 | | the
Department by
rule, that it has received an exemption under | 9 | | Section 501(c)(3) of the
Internal Revenue Code and that is | 10 | | organized and operated primarily for the
presentation
or | 11 | | support of arts or cultural programming, activities, or | 12 | | services. These
organizations include, but are not limited to, | 13 | | music and dramatic arts
organizations such as symphony | 14 | | orchestras and theatrical groups, arts and
cultural service | 15 | | organizations, local arts councils, visual arts organizations,
| 16 | | and media arts organizations.
On and after the effective date | 17 | | of this amendatory Act of the 92nd General
Assembly, however, | 18 | | an entity otherwise eligible for this exemption shall not
make | 19 | | tax-free purchases unless it has an active identification | 20 | | number issued by
the Department.
| 21 | | (4) Legal tender, currency, medallions, or gold or silver | 22 | | coinage
issued by the State of Illinois, the government of the | 23 | | United States of
America, or the government of any foreign | 24 | | country, and bullion.
| 25 | | (5) Until July 1, 2003 and beginning again on September 1, | 26 | | 2004 through August 30, 2014, graphic arts machinery and |
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| 1 | | equipment, including
repair and
replacement parts, both new and | 2 | | used, and including that manufactured on
special order or | 3 | | purchased for lease, certified by the purchaser to be used
| 4 | | primarily for graphic arts production.
Equipment includes | 5 | | chemicals or chemicals acting as catalysts but only if
the
| 6 | | chemicals or chemicals acting as catalysts effect a direct and | 7 | | immediate change
upon a graphic arts product.
| 8 | | (6) Personal property sold by a teacher-sponsored student | 9 | | organization
affiliated with an elementary or secondary school | 10 | | located in Illinois.
| 11 | | (7) Farm machinery and equipment, both new and used, | 12 | | including that
manufactured on special order, certified by the | 13 | | purchaser to be used
primarily for production agriculture or | 14 | | State or federal agricultural
programs, including individual | 15 | | replacement parts for the machinery and
equipment, including | 16 | | machinery and equipment purchased for lease,
and including | 17 | | implements of husbandry defined in Section 1-130 of
the | 18 | | Illinois Vehicle Code, farm machinery and agricultural | 19 | | chemical and
fertilizer spreaders, and nurse wagons required to | 20 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 21 | | but
excluding other motor vehicles required to be registered | 22 | | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | 23 | | hoop houses used for propagating, growing, or
overwintering | 24 | | plants shall be considered farm machinery and equipment under
| 25 | | this item (7).
Agricultural chemical tender tanks and dry boxes | 26 | | shall include units sold
separately from a motor vehicle |
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| 1 | | required to be licensed and units sold mounted
on a motor | 2 | | vehicle required to be licensed if the selling price of the | 3 | | tender
is separately stated.
| 4 | | Farm machinery and equipment shall include precision | 5 | | farming equipment
that is
installed or purchased to be | 6 | | installed on farm machinery and equipment
including, but not | 7 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 8 | | or spreaders.
Precision farming equipment includes, but is not | 9 | | limited to,
soil testing sensors, computers, monitors, | 10 | | software, global positioning
and mapping systems, and other | 11 | | such equipment.
| 12 | | Farm machinery and equipment also includes computers, | 13 | | sensors, software, and
related equipment used primarily in the
| 14 | | computer-assisted operation of production agriculture | 15 | | facilities, equipment,
and activities such as, but
not limited | 16 | | to,
the collection, monitoring, and correlation of
animal and | 17 | | crop data for the purpose of
formulating animal diets and | 18 | | agricultural chemicals. This item (7) is exempt
from the | 19 | | provisions of
Section 3-55.
| 20 | | (8) Fuel and petroleum products sold to or used by an air | 21 | | common
carrier, certified by the carrier to be used for | 22 | | consumption, shipment,
or storage in the conduct of its | 23 | | business as an air common carrier, for
a flight destined for or | 24 | | returning from a location or locations
outside the United | 25 | | States without regard to previous or subsequent domestic
| 26 | | stopovers.
|
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| 1 | | (9) Proceeds of mandatory service charges separately
| 2 | | stated on customers' bills for the purchase and consumption of | 3 | | food and
beverages, to the extent that the proceeds of the | 4 | | service charge are in fact
turned over as tips or as a | 5 | | substitute for tips to the employees who
participate directly | 6 | | in preparing, serving, hosting or cleaning up the
food or | 7 | | beverage function with respect to which the service charge is | 8 | | imposed.
| 9 | | (10) Until July 1, 2003, oil field exploration, drilling, | 10 | | and production
equipment,
including (i) rigs and parts of rigs, | 11 | | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 12 | | tubular goods, including casing and
drill strings, (iii) pumps | 13 | | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 14 | | individual replacement part for oil field exploration,
| 15 | | drilling, and production equipment, and (vi) machinery and | 16 | | equipment purchased
for lease; but
excluding motor vehicles | 17 | | required to be registered under the Illinois
Vehicle Code.
| 18 | | (11) Photoprocessing machinery and equipment, including | 19 | | repair and
replacement parts, both new and used, including that | 20 | | manufactured on
special order, certified by the purchaser to be | 21 | | used primarily for
photoprocessing, and including | 22 | | photoprocessing machinery and equipment
purchased for lease.
| 23 | | (12) Coal Until July 1, 2003, and beginning again on the | 24 | | effective date of this amendatory Act of the 97th General | 25 | | Assembly and thereafter, coal and aggregate exploration, | 26 | | mining, offhighway hauling,
processing,
maintenance, and |
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| 1 | | reclamation equipment, including
replacement parts and | 2 | | equipment, and including
equipment
purchased for lease, but | 3 | | excluding motor vehicles required to be registered
under the | 4 | | Illinois Vehicle Code. The changes made to this Section by | 5 | | Public Act 97-767 apply on and after July 1, 2003, but no claim | 6 | | for credit or refund is allowed on or after the effective date | 7 | | of this amendatory Act of the 98th General Assembly
for such | 8 | | taxes paid during the period beginning July 1, 2003 and ending | 9 | | on the effective date of this amendatory Act of the 98th | 10 | | General Assembly.
| 11 | | (13) Beginning January 1, 1992 and through June 30, 2016, | 12 | | food for human consumption that is to be consumed off the | 13 | | premises
where it is sold (other than alcoholic beverages, soft | 14 | | drinks and food that
has been prepared for immediate | 15 | | consumption) and prescription and
non-prescription medicines, | 16 | | drugs, medical appliances, and insulin, urine
testing | 17 | | materials, syringes, and needles used by diabetics, for human | 18 | | use,
when purchased for use by a person receiving medical | 19 | | assistance under
Article V of the Illinois Public Aid Code who | 20 | | resides in a licensed
long-term care facility, as defined in | 21 | | the Nursing Home Care Act, or in a licensed facility as defined | 22 | | in the ID/DD Community Care Act or the Specialized Mental | 23 | | Health Rehabilitation Act.
| 24 | | (14) Semen used for artificial insemination of livestock | 25 | | for direct
agricultural production.
| 26 | | (15) Horses, or interests in horses, registered with and |
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| 1 | | meeting the
requirements of any of the
Arabian Horse Club | 2 | | Registry of America, Appaloosa Horse Club, American Quarter
| 3 | | Horse Association, United States
Trotting Association, or | 4 | | Jockey Club, as appropriate, used for
purposes of breeding or | 5 | | racing for prizes. This item (15) is exempt from the provisions | 6 | | of Section 3-55, and the exemption provided for under this item | 7 | | (15) applies for all periods beginning May 30, 1995, but no | 8 | | claim for credit or refund is allowed on or after January 1, | 9 | | 2008 (the effective date of Public Act 95-88)
for such taxes | 10 | | paid during the period beginning May 30, 2000 and ending on | 11 | | January 1, 2008 (the effective date of Public Act 95-88).
| 12 | | (16) Computers and communications equipment utilized for | 13 | | any
hospital
purpose
and equipment used in the diagnosis,
| 14 | | analysis, or treatment of hospital patients sold to a lessor | 15 | | who leases the
equipment, under a lease of one year or longer | 16 | | executed or in effect at the
time of the purchase, to a
| 17 | | hospital
that has been issued an active tax exemption | 18 | | identification number by the
Department under Section 1g of the | 19 | | Retailers' Occupation Tax Act.
| 20 | | (17) Personal property sold to a lessor who leases the
| 21 | | property, under a
lease of one year or longer executed or in | 22 | | effect at the time of the purchase,
to a governmental body
that | 23 | | has been issued an active tax exemption identification number | 24 | | by the
Department under Section 1g of the Retailers' Occupation | 25 | | Tax Act.
| 26 | | (18) Beginning with taxable years ending on or after |
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| 1 | | December
31, 1995
and
ending with taxable years ending on or | 2 | | before December 31, 2004,
personal property that is
donated for | 3 | | disaster relief to be used in a State or federally declared
| 4 | | disaster area in Illinois or bordering Illinois by a | 5 | | manufacturer or retailer
that is registered in this State to a | 6 | | corporation, society, association,
foundation, or institution | 7 | | that has been issued a sales tax exemption
identification | 8 | | number by the Department that assists victims of the disaster
| 9 | | who reside within the declared disaster area.
| 10 | | (19) Beginning with taxable years ending on or after | 11 | | December
31, 1995 and
ending with taxable years ending on or | 12 | | before December 31, 2004, personal
property that is used in the | 13 | | performance of infrastructure repairs in this
State, including | 14 | | but not limited to municipal roads and streets, access roads,
| 15 | | bridges, sidewalks, waste disposal systems, water and sewer | 16 | | line extensions,
water distribution and purification | 17 | | facilities, storm water drainage and
retention facilities, and | 18 | | sewage treatment facilities, resulting from a State
or | 19 | | federally declared disaster in Illinois or bordering Illinois | 20 | | when such
repairs are initiated on facilities located in the | 21 | | declared disaster area
within 6 months after the disaster.
| 22 | | (20) Beginning July 1, 1999, game or game birds sold at a | 23 | | "game breeding
and
hunting preserve area" as that term is used
| 24 | | in the
Wildlife Code. This paragraph is exempt from the | 25 | | provisions
of
Section 3-55.
| 26 | | (21) A motor vehicle, as that term is defined in Section |
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| 1 | | 1-146
of the
Illinois Vehicle Code, that is donated to a | 2 | | corporation, limited liability
company, society, association, | 3 | | foundation, or institution that is determined by
the Department | 4 | | to be organized and operated exclusively for educational
| 5 | | purposes. For purposes of this exemption, "a corporation, | 6 | | limited liability
company, society, association, foundation, | 7 | | or institution organized and
operated
exclusively for | 8 | | educational purposes" means all tax-supported public schools,
| 9 | | private schools that offer systematic instruction in useful | 10 | | branches of
learning by methods common to public schools and | 11 | | that compare favorably in
their scope and intensity with the | 12 | | course of study presented in tax-supported
schools, and | 13 | | vocational or technical schools or institutes organized and
| 14 | | operated exclusively to provide a course of study of not less | 15 | | than 6 weeks
duration and designed to prepare individuals to | 16 | | follow a trade or to pursue a
manual, technical, mechanical, | 17 | | industrial, business, or commercial
occupation.
| 18 | | (22) Beginning January 1, 2000, personal property, | 19 | | including
food,
purchased through fundraising
events for the | 20 | | benefit of
a public or private elementary or
secondary school, | 21 | | a group of those schools, or one or more school
districts if | 22 | | the events are
sponsored by an entity recognized by the school | 23 | | district that consists
primarily of volunteers and includes
| 24 | | parents and teachers of the school children. This paragraph | 25 | | does not apply
to fundraising
events (i) for the benefit of | 26 | | private home instruction or (ii)
for which the fundraising |
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| 1 | | entity purchases the personal property sold at
the events from | 2 | | another individual or entity that sold the property for the
| 3 | | purpose of resale by the fundraising entity and that
profits | 4 | | from the sale to the
fundraising entity. This paragraph is | 5 | | exempt
from the provisions
of Section 3-55.
| 6 | | (23) Beginning January 1, 2000
and through December 31, | 7 | | 2001, new or used automatic vending
machines that prepare and | 8 | | serve hot food and beverages, including coffee, soup,
and
other | 9 | | items, and replacement parts for these machines.
Beginning | 10 | | January 1,
2002 and through June 30, 2003, machines and parts | 11 | | for
machines used in commercial, coin-operated amusement
and | 12 | | vending business if a use or occupation tax is paid on the | 13 | | gross receipts
derived from
the use of the commercial, | 14 | | coin-operated amusement and vending machines.
This paragraph | 15 | | is exempt from the provisions of Section 3-55.
| 16 | | (24) Beginning
on the effective date of this amendatory Act | 17 | | of the 92nd General Assembly,
computers and communications | 18 | | equipment
utilized for any hospital purpose and equipment used | 19 | | in the diagnosis,
analysis, or treatment of hospital patients | 20 | | sold to a lessor who leases the
equipment, under a lease of one | 21 | | year or longer executed or in effect at the
time of the | 22 | | purchase, to a hospital that has been issued an active tax
| 23 | | exemption identification number by the Department under | 24 | | Section 1g of the
Retailers' Occupation Tax Act. This paragraph | 25 | | is exempt from the provisions of
Section 3-55.
| 26 | | (25) Beginning
on the effective date of this amendatory Act |
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| 1 | | of the 92nd General Assembly,
personal property sold to a | 2 | | lessor who
leases the property, under a lease of one year or | 3 | | longer executed or in effect
at the time of the purchase, to a | 4 | | governmental body that has been issued an
active tax exemption | 5 | | identification number by the Department under Section 1g
of the | 6 | | Retailers' Occupation Tax Act. This paragraph is exempt from | 7 | | the
provisions of Section 3-55.
| 8 | | (26) Beginning on January 1, 2002 and through June 30, | 9 | | 2016, tangible personal property
purchased
from an Illinois | 10 | | retailer by a taxpayer engaged in centralized purchasing
| 11 | | activities in Illinois who will, upon receipt of the property | 12 | | in Illinois,
temporarily store the property in Illinois (i) for | 13 | | the purpose of subsequently
transporting it outside this State | 14 | | for use or consumption thereafter solely
outside this State or | 15 | | (ii) for the purpose of being processed, fabricated, or
| 16 | | manufactured into, attached to, or incorporated into other | 17 | | tangible personal
property to be transported outside this State | 18 | | and thereafter used or consumed
solely outside this State. The | 19 | | Director of Revenue shall, pursuant to rules
adopted in | 20 | | accordance with the Illinois Administrative Procedure Act, | 21 | | issue a
permit to any taxpayer in good standing with the | 22 | | Department who is eligible for
the exemption under this | 23 | | paragraph (26). The permit issued under
this paragraph (26) | 24 | | shall authorize the holder, to the extent and
in the manner | 25 | | specified in the rules adopted under this Act, to purchase
| 26 | | tangible personal property from a retailer exempt from the |
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| 1 | | taxes imposed by
this Act. Taxpayers shall maintain all | 2 | | necessary books and records to
substantiate the use and | 3 | | consumption of all such tangible personal property
outside of | 4 | | the State of Illinois.
| 5 | | (27) 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 3-55.
| 12 | | (28) Tangible personal property sold to a | 13 | | public-facilities corporation, as described in Section | 14 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 15 | | constructing or furnishing a municipal convention hall, but | 16 | | only if the legal title to the municipal convention hall is | 17 | | transferred to the municipality without any further | 18 | | consideration by or on behalf of the municipality at the time | 19 | | of the completion of the municipal convention hall or upon the | 20 | | retirement or redemption of any bonds or other debt instruments | 21 | | issued by the public-facilities corporation in connection with | 22 | | the development of the municipal convention hall. This | 23 | | exemption includes existing public-facilities corporations as | 24 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 25 | | This paragraph is exempt from the provisions of Section 3-55. | 26 | | (29) Beginning January 1, 2010, materials, parts, |
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| 1 | | equipment, components, and furnishings incorporated into or | 2 | | upon an aircraft as part of the modification, refurbishment, | 3 | | completion, replacement, repair, or maintenance of the | 4 | | aircraft. This exemption includes consumable supplies used in | 5 | | the modification, refurbishment, completion, replacement, | 6 | | repair, and maintenance of aircraft, but excludes any | 7 | | materials, parts, equipment, components, and consumable | 8 | | supplies used in the modification, replacement, repair, and | 9 | | maintenance of aircraft engines or power plants, whether such | 10 | | engines or power plants are installed or uninstalled upon any | 11 | | such aircraft. "Consumable supplies" include, but are not | 12 | | limited to, adhesive, tape, sandpaper, general purpose | 13 | | lubricants, cleaning solution, latex gloves, and protective | 14 | | films. This exemption applies only to those organizations that | 15 | | (i) hold an Air Agency Certificate and are empowered to operate | 16 | | an approved repair station by the Federal Aviation | 17 | | Administration, (ii) have a Class IV Rating, and (iii) conduct | 18 | | operations in accordance with Part 145 of the Federal Aviation | 19 | | Regulations. The exemption does not include aircraft operated | 20 | | by a commercial air carrier providing scheduled passenger air | 21 | | service pursuant to authority issued under Part 121 or Part 129 | 22 | | of the Federal Aviation Regulations. | 23 | | (Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; | 24 | | 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. | 25 | | 7-2-10; 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227, eff. | 26 | | 1-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. |
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| 1 | | 7-9-12.)
| 2 | | Section 20. The Retailers' Occupation Tax Act is amended by | 3 | | changing Section 2-5 as follows:
| 4 | | (35 ILCS 120/2-5)
| 5 | | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | 6 | | sale of
the following tangible personal property are exempt | 7 | | from the tax imposed
by this Act:
| 8 | | (1) Farm chemicals.
| 9 | | (2) Farm machinery and equipment, both new and used, | 10 | | including that
manufactured on special order, certified by the | 11 | | purchaser to be used
primarily for production agriculture or | 12 | | State or federal agricultural
programs, including individual | 13 | | replacement parts for the machinery and
equipment, including | 14 | | machinery and equipment purchased for lease,
and including | 15 | | implements of husbandry defined in Section 1-130 of
the | 16 | | Illinois Vehicle Code, farm machinery and agricultural | 17 | | chemical and
fertilizer spreaders, and nurse wagons required to | 18 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 19 | | but
excluding other motor vehicles required to be registered | 20 | | under the Illinois
Vehicle Code.
Horticultural polyhouses or | 21 | | hoop houses used for propagating, growing, or
overwintering | 22 | | plants shall be considered farm machinery and equipment under
| 23 | | this item (2).
Agricultural chemical tender tanks and dry boxes | 24 | | shall include units sold
separately from a motor vehicle |
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| 1 | | required to be licensed and units sold mounted
on a motor | 2 | | vehicle required to be licensed, if the selling price of the | 3 | | tender
is separately stated.
| 4 | | Farm machinery and equipment shall include precision | 5 | | farming equipment
that is
installed or purchased to be | 6 | | installed on farm machinery and equipment
including, but not | 7 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 8 | | or spreaders.
Precision farming equipment includes, but is not | 9 | | limited to,
soil testing sensors, computers, monitors, | 10 | | software, global positioning
and mapping systems, and other | 11 | | such equipment.
| 12 | | Farm machinery and equipment also includes computers, | 13 | | sensors, software, and
related equipment used primarily in the
| 14 | | computer-assisted operation of production agriculture | 15 | | facilities, equipment,
and activities such as, but
not limited | 16 | | to,
the collection, monitoring, and correlation of
animal and | 17 | | crop data for the purpose of
formulating animal diets and | 18 | | agricultural chemicals. This item (2) is exempt
from the | 19 | | provisions of
Section 2-70.
| 20 | | (3) Until July 1, 2003, distillation machinery and | 21 | | equipment, sold as a
unit or kit,
assembled or installed by the | 22 | | retailer, certified by the user to be used
only for the | 23 | | production of ethyl alcohol that will be used for consumption
| 24 | | as motor fuel or as a component of motor fuel for the personal | 25 | | use of the
user, and not subject to sale or resale.
| 26 | | (4) Until July 1, 2003 and beginning again September 1, |
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| 1 | | 2004 through August 30, 2014, graphic arts machinery and | 2 | | equipment, including
repair and
replacement parts, both new and | 3 | | used, and including that manufactured on
special order or | 4 | | purchased for lease, certified by the purchaser to be used
| 5 | | primarily for graphic arts production.
Equipment includes | 6 | | chemicals or
chemicals acting as catalysts but only if
the | 7 | | chemicals or chemicals acting as catalysts effect a direct and | 8 | | immediate
change upon a
graphic arts product.
| 9 | | (5) A motor vehicle of the first division, a motor vehicle | 10 | | of the second division that is a self contained motor vehicle | 11 | | designed or permanently converted to provide living quarters | 12 | | for recreational, camping, or travel use, with direct walk | 13 | | through access to the living quarters from the driver's seat, | 14 | | or a motor vehicle of the second division that is of the van | 15 | | configuration designed for the transportation of not less than | 16 | | 7 nor more than 16 passengers, as defined in Section 1-146 of | 17 | | the Illinois Vehicle Code, that is used for automobile renting, | 18 | | as defined in the Automobile Renting Occupation and Use Tax | 19 | | Act. This paragraph is exempt from
the provisions of Section | 20 | | 2-70.
| 21 | | (6) Personal property sold by a teacher-sponsored student | 22 | | organization
affiliated with an elementary or secondary school | 23 | | located in Illinois.
| 24 | | (7) Until July 1, 2003, proceeds of that portion of the | 25 | | selling price of
a passenger car the
sale of which is subject | 26 | | to the Replacement Vehicle Tax.
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| 1 | | (8) Personal property sold to an Illinois county fair | 2 | | association for
use in conducting, operating, or promoting the | 3 | | county fair.
| 4 | | (9) Personal property sold to a not-for-profit arts
or | 5 | | cultural organization that establishes, by proof required by | 6 | | the Department
by
rule, that it has received an exemption under | 7 | | Section 501(c)(3) of the
Internal Revenue Code and that is | 8 | | organized and operated primarily for the
presentation
or | 9 | | support of arts or cultural programming, activities, or | 10 | | services. These
organizations include, but are not limited to, | 11 | | music and dramatic arts
organizations such as symphony | 12 | | orchestras and theatrical groups, arts and
cultural service | 13 | | organizations, local arts councils, visual arts organizations,
| 14 | | and media arts organizations.
On and after the effective date | 15 | | of this amendatory Act of the 92nd General
Assembly, however, | 16 | | an entity otherwise eligible for this exemption shall not
make | 17 | | tax-free purchases unless it has an active identification | 18 | | number issued by
the Department.
| 19 | | (10) Personal property sold by a corporation, society, | 20 | | association,
foundation, institution, or organization, other | 21 | | than a limited liability
company, that is organized and | 22 | | operated as a not-for-profit service enterprise
for the benefit | 23 | | of persons 65 years of age or older if the personal property
| 24 | | was not purchased by the enterprise for the purpose of resale | 25 | | by the
enterprise.
| 26 | | (11) Personal property sold to a governmental body, to a |
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| 1 | | corporation,
society, association, foundation, or institution | 2 | | organized and operated
exclusively for charitable, religious, | 3 | | or educational purposes, or to a
not-for-profit corporation, | 4 | | society, association, foundation, institution,
or organization | 5 | | that has no compensated officers or employees and that is
| 6 | | organized and operated primarily for the recreation of persons | 7 | | 55 years of
age or older. A limited liability company may | 8 | | qualify for the exemption under
this paragraph only if the | 9 | | limited liability company is organized and operated
| 10 | | exclusively for educational purposes. On and after July 1, | 11 | | 1987, however, no
entity otherwise eligible for this exemption | 12 | | shall make tax-free purchases
unless it has an active | 13 | | identification number issued by the Department.
| 14 | | (12) Tangible personal property sold to
interstate | 15 | | carriers
for hire for use as
rolling stock moving in interstate | 16 | | commerce or to lessors under leases of
one year or longer | 17 | | executed or in effect at the time of purchase by
interstate | 18 | | carriers for hire for use as rolling stock moving in interstate
| 19 | | commerce and equipment operated by a telecommunications | 20 | | provider, licensed as a
common carrier by the Federal | 21 | | Communications Commission, which is permanently
installed in | 22 | | or affixed to aircraft moving in interstate commerce.
| 23 | | (12-5) On and after July 1, 2003 and through June 30, 2004, | 24 | | motor vehicles of the second division
with a gross vehicle | 25 | | weight in excess of 8,000 pounds
that
are
subject to the | 26 | | commercial distribution fee imposed under Section 3-815.1 of
|
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| 1 | | the Illinois
Vehicle Code. Beginning on July 1, 2004 and | 2 | | through June 30, 2005, the use in this State of motor vehicles | 3 | | of the second division: (i) with a gross vehicle weight rating | 4 | | in excess of 8,000 pounds; (ii) that are subject to the | 5 | | commercial distribution fee imposed under Section 3-815.1 of | 6 | | the Illinois Vehicle Code; and (iii) that are primarily used | 7 | | for commercial purposes. Through June 30, 2005, this
exemption | 8 | | applies to repair and replacement parts added
after the
initial | 9 | | purchase of such a motor vehicle if that motor vehicle is used | 10 | | in a
manner that
would qualify for the rolling stock exemption | 11 | | otherwise provided for in this
Act. For purposes of this | 12 | | paragraph, "used for commercial purposes" means the | 13 | | transportation of persons or property in furtherance of any | 14 | | commercial or industrial enterprise whether for-hire or not.
| 15 | | (13) Proceeds from sales to owners, lessors, or
shippers of
| 16 | | tangible personal property that is utilized by interstate | 17 | | carriers for
hire for use as rolling stock moving in interstate | 18 | | commerce
and equipment operated by a telecommunications | 19 | | provider, licensed as a
common carrier by the Federal | 20 | | Communications Commission, which is
permanently installed in | 21 | | or affixed to aircraft moving in interstate commerce.
| 22 | | (14) Machinery and equipment that will be used by the | 23 | | purchaser, or a
lessee of the purchaser, primarily in the | 24 | | process of manufacturing or
assembling tangible personal | 25 | | property for wholesale or retail sale or
lease, whether the | 26 | | sale or lease is made directly by the manufacturer or by
some |
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| 1 | | other person, whether the materials used in the process are | 2 | | owned by
the manufacturer or some other person, or whether the | 3 | | sale or lease is made
apart from or as an incident to the | 4 | | seller's engaging in the service
occupation of producing | 5 | | machines, tools, dies, jigs, patterns, gauges, or
other similar | 6 | | items of no commercial value on special order for a particular
| 7 | | purchaser.
| 8 | | (15) Proceeds of mandatory service charges separately | 9 | | stated on
customers' bills for purchase and consumption of food | 10 | | and beverages, to the
extent that the proceeds of the service | 11 | | charge are in fact turned over as
tips or as a substitute for | 12 | | tips to the employees who participate directly
in preparing, | 13 | | serving, hosting or cleaning up the food or beverage function
| 14 | | with respect to which the service charge is imposed.
| 15 | | (16) Petroleum products sold to a purchaser if the seller
| 16 | | is prohibited by federal law from charging tax to the | 17 | | purchaser.
| 18 | | (17) Tangible personal property sold to a common carrier by | 19 | | rail or
motor that
receives the physical possession of the | 20 | | property in Illinois and that
transports the property, or | 21 | | shares with another common carrier in the
transportation of the | 22 | | property, out of Illinois on a standard uniform bill
of lading | 23 | | showing the seller of the property as the shipper or consignor | 24 | | of
the property to a destination outside Illinois, for use | 25 | | outside Illinois.
| 26 | | (18) Legal tender, currency, medallions, or gold or silver |
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| 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 | | (19) Until July 1 2003, oil field exploration, drilling, | 5 | | and production
equipment, including
(i) rigs and parts of rigs, | 6 | | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 7 | | tubular goods, including casing and
drill strings, (iii) pumps | 8 | | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 9 | | individual replacement part for oil field exploration,
| 10 | | drilling, and production equipment, and (vi) machinery and | 11 | | equipment purchased
for lease; but
excluding motor vehicles | 12 | | required to be registered under the Illinois
Vehicle Code.
| 13 | | (20) Photoprocessing machinery and equipment, including | 14 | | repair and
replacement parts, both new and used, including that | 15 | | manufactured on
special order, certified by the purchaser to be | 16 | | used primarily for
photoprocessing, and including | 17 | | photoprocessing machinery and equipment
purchased for lease.
| 18 | | (21) Coal Until July 1, 2003, and beginning again on the | 19 | | effective date of this amendatory Act of the 97th General | 20 | | Assembly and thereafter, coal and aggregate exploration, | 21 | | mining, offhighway hauling,
processing,
maintenance, and | 22 | | reclamation equipment, including
replacement parts and | 23 | | equipment, and including
equipment purchased for lease, but | 24 | | excluding motor vehicles required to be
registered under the | 25 | | Illinois Vehicle Code. The changes made to this Section by | 26 | | Public Act 97-767 apply on and after July 1, 2003, but no claim |
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| 1 | | for credit or refund is allowed on or after the effective date | 2 | | of this amendatory Act of the 98th General Assembly
for such | 3 | | taxes paid during the period beginning July 1, 2003 and ending | 4 | | on the effective date of this amendatory Act of the 98th | 5 | | General Assembly.
| 6 | | (22) Fuel and petroleum products sold to or used by an air | 7 | | carrier,
certified by the carrier to be used for consumption, | 8 | | shipment, or storage
in the conduct of its business as an air | 9 | | common carrier, for a flight
destined for or returning from a | 10 | | location or locations
outside the United States without regard | 11 | | to previous or subsequent domestic
stopovers.
| 12 | | (23) A transaction in which the purchase order is received | 13 | | by a florist
who is located outside Illinois, but who has a | 14 | | florist located in Illinois
deliver the property to the | 15 | | purchaser or the purchaser's donee in Illinois.
| 16 | | (24) Fuel consumed or used in the operation of ships, | 17 | | barges, or vessels
that are used primarily in or for the | 18 | | transportation of property or the
conveyance of persons for | 19 | | hire on rivers bordering on this State if the
fuel is delivered | 20 | | by the seller to the purchaser's barge, ship, or vessel
while | 21 | | it is afloat upon that bordering river.
| 22 | | (25) Except as provided in item (25-5) of this Section, a
| 23 | | motor vehicle sold in this State to a nonresident even though | 24 | | the
motor vehicle is delivered to the nonresident in this | 25 | | State, if the motor
vehicle is not to be titled in this State, | 26 | | and if a drive-away permit
is issued to the motor vehicle as |
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| 1 | | provided in Section 3-603 of the Illinois
Vehicle Code or if | 2 | | the nonresident purchaser has vehicle registration
plates to | 3 | | transfer to the motor vehicle upon returning to his or her home
| 4 | | state. The issuance of the drive-away permit or having
the
| 5 | | out-of-state registration plates to be transferred is prima | 6 | | facie evidence
that the motor vehicle will not be titled in | 7 | | this State.
| 8 | | (25-5) The exemption under item (25) does not apply if the | 9 | | state in which the motor vehicle will be titled does not allow | 10 | | a reciprocal exemption for a motor vehicle sold and delivered | 11 | | in that state to an Illinois resident but titled in Illinois. | 12 | | The tax collected under this Act on the sale of a motor vehicle | 13 | | in this State to a resident of another state that does not | 14 | | allow a reciprocal exemption shall be imposed at a rate equal | 15 | | to the state's rate of tax on taxable property in the state in | 16 | | which the purchaser is a resident, except that the tax shall | 17 | | not exceed the tax that would otherwise be imposed under this | 18 | | Act. At the time of the sale, the purchaser shall execute a | 19 | | statement, signed under penalty of perjury, of his or her | 20 | | intent to title the vehicle in the state in which the purchaser | 21 | | is a resident within 30 days after the sale and of the fact of | 22 | | the payment to the State of Illinois of tax in an amount | 23 | | equivalent to the state's rate of tax on taxable property in | 24 | | his or her state of residence and shall submit the statement to | 25 | | the appropriate tax collection agency in his or her state of | 26 | | residence. In addition, the retailer must retain a signed copy |
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| 1 | | of the statement in his or her records. Nothing in this item | 2 | | shall be construed to require the removal of the vehicle from | 3 | | this state following the filing of an intent to title the | 4 | | vehicle in the purchaser's state of residence if the purchaser | 5 | | titles the vehicle in his or her state of residence within 30 | 6 | | days after the date of sale. The tax collected under this Act | 7 | | in accordance with this item (25-5) shall be proportionately | 8 | | distributed as if the tax were collected at the 6.25% general | 9 | | rate imposed under this Act.
| 10 | | (25-7) Beginning on July 1, 2007, no tax is imposed under | 11 | | this Act on the sale of an aircraft, as defined in Section 3 of | 12 | | the Illinois Aeronautics Act, if all of the following | 13 | | conditions are met: | 14 | | (1) the aircraft leaves this State within 15 days after | 15 | | the later of either the issuance of the final billing for | 16 | | the sale of the aircraft, or the authorized approval for | 17 | | return to service, completion of the maintenance record | 18 | | entry, and completion of the test flight and ground test | 19 | | for inspection, as required by 14 C.F.R. 91.407; | 20 | | (2) the aircraft is not based or registered in this | 21 | | State after the sale of the aircraft; and | 22 | | (3) the seller retains in his or her books and records | 23 | | and provides to the Department a signed and dated | 24 | | certification from the purchaser, on a form prescribed by | 25 | | the Department, certifying that the requirements of this | 26 | | item (25-7) are met. The certificate must also include the |
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| 1 | | name and address of the purchaser, the address of the | 2 | | location where the aircraft is to be titled or registered, | 3 | | the address of the primary physical location of the | 4 | | aircraft, and other information that the Department may | 5 | | reasonably require. | 6 | | For purposes of this item (25-7): | 7 | | "Based in this State" means hangared, stored, or otherwise | 8 | | used, excluding post-sale customizations as defined in this | 9 | | Section, for 10 or more days in each 12-month period | 10 | | immediately following the date of the sale of the aircraft. | 11 | | "Registered in this State" means an aircraft registered | 12 | | with the Department of Transportation, Aeronautics Division, | 13 | | or titled or registered with the Federal Aviation | 14 | | Administration to an address located in this State. | 15 | | This paragraph (25-7) is exempt from the provisions
of
| 16 | | Section 2-70.
| 17 | | (26) Semen used for artificial insemination of livestock | 18 | | for direct
agricultural production.
| 19 | | (27) Horses, or interests in horses, registered with and | 20 | | meeting the
requirements of any of the
Arabian Horse Club | 21 | | Registry of America, Appaloosa Horse Club, American Quarter
| 22 | | Horse Association, United States
Trotting Association, or | 23 | | Jockey Club, as appropriate, used for
purposes of breeding or | 24 | | racing for prizes. This item (27) is exempt from the provisions | 25 | | of Section 2-70, and the exemption provided for under this item | 26 | | (27) applies for all periods beginning May 30, 1995, but no |
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| 1 | | claim for credit or refund is allowed on or after January 1, | 2 | | 2008 (the effective date of Public Act 95-88)
for such taxes | 3 | | paid during the period beginning May 30, 2000 and ending on | 4 | | January 1, 2008 (the effective date of Public Act 95-88).
| 5 | | (28) Computers and communications equipment utilized for | 6 | | any
hospital
purpose
and equipment used in the diagnosis,
| 7 | | analysis, or treatment of hospital patients sold to a lessor | 8 | | who leases the
equipment, under a lease of one year or longer | 9 | | executed or in effect at the
time of the purchase, to a
| 10 | | hospital
that has been issued an active tax exemption | 11 | | identification number by the
Department under Section 1g of | 12 | | this Act.
| 13 | | (29) Personal property sold to a lessor who leases the
| 14 | | property, under a
lease of one year or longer executed or in | 15 | | effect at the time of the purchase,
to a governmental body
that | 16 | | has been issued an active tax exemption identification number | 17 | | by the
Department under Section 1g of this Act.
| 18 | | (30) 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
donated for | 21 | | disaster relief to be used in a State or federally declared
| 22 | | disaster area in Illinois or bordering Illinois by a | 23 | | manufacturer or retailer
that is registered in this State to a | 24 | | corporation, society, association,
foundation, or institution | 25 | | that has been issued a sales tax exemption
identification | 26 | | number by the Department that assists victims of the disaster
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| 1 | | who reside within the declared disaster area.
| 2 | | (31) 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 used in the | 5 | | performance of infrastructure repairs in this
State, including | 6 | | but not limited to municipal roads and streets, access roads,
| 7 | | bridges, sidewalks, waste disposal systems, water and sewer | 8 | | line extensions,
water distribution and purification | 9 | | facilities, storm water drainage and
retention facilities, and | 10 | | sewage treatment facilities, resulting from a State
or | 11 | | federally declared disaster in Illinois or bordering Illinois | 12 | | when such
repairs are initiated on facilities located in the | 13 | | declared disaster area
within 6 months after the disaster.
| 14 | | (32) Beginning July 1, 1999, game or game birds sold at a | 15 | | "game breeding
and
hunting preserve area" as that term is used
| 16 | | in the
Wildlife Code. This paragraph is exempt from the | 17 | | provisions
of
Section 2-70.
| 18 | | (33) A motor vehicle, as that term is defined in Section | 19 | | 1-146
of the
Illinois Vehicle Code, that is donated to a | 20 | | corporation, limited liability
company, society, association, | 21 | | foundation, or institution that is determined by
the Department | 22 | | to be organized and operated exclusively for educational
| 23 | | purposes. For purposes of this exemption, "a corporation, | 24 | | limited liability
company, society, association, foundation, | 25 | | or institution organized and
operated
exclusively for | 26 | | educational purposes" means all tax-supported public schools,
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| 1 | | private schools that offer systematic instruction in useful | 2 | | branches of
learning by methods common to public schools and | 3 | | that compare favorably in
their scope and intensity with the | 4 | | course of study presented in tax-supported
schools, and | 5 | | vocational or technical schools or institutes organized and
| 6 | | operated exclusively to provide a course of study of not less | 7 | | than 6 weeks
duration and designed to prepare individuals to | 8 | | follow a trade or to pursue a
manual, technical, mechanical, | 9 | | industrial, business, or commercial
occupation.
| 10 | | (34) Beginning January 1, 2000, personal property, | 11 | | including food, purchased
through fundraising events for the | 12 | | benefit of a public or private elementary or
secondary school, | 13 | | a group of those schools, or one or more school districts if
| 14 | | the events are sponsored by an entity recognized by the school | 15 | | district that
consists primarily of volunteers and includes | 16 | | parents and teachers of the
school children. This paragraph | 17 | | does not apply to fundraising events (i) for
the benefit of | 18 | | private home instruction or (ii) for which the fundraising
| 19 | | entity purchases the personal property sold at the events from | 20 | | another
individual or entity that sold the property for the | 21 | | purpose of resale by the
fundraising entity and that profits | 22 | | from the sale to the fundraising entity.
This paragraph is | 23 | | exempt from the provisions of Section 2-70.
| 24 | | (35) Beginning January 1, 2000 and through December 31, | 25 | | 2001, new or used
automatic vending machines that prepare and | 26 | | serve hot food and beverages,
including coffee, soup, and other |
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| 1 | | items, and replacement parts for these
machines. Beginning | 2 | | January 1, 2002 and through June 30, 2003, machines
and parts | 3 | | for machines used in
commercial, coin-operated amusement and | 4 | | vending business if a use or occupation
tax is paid on the | 5 | | gross receipts derived from the use of the commercial,
| 6 | | coin-operated amusement and vending machines. This paragraph | 7 | | is exempt from
the provisions of Section 2-70.
| 8 | | (35-5) Beginning August 23, 2001 and through June 30, 2016, | 9 | | food for human consumption that is to be consumed off
the | 10 | | premises where it is sold (other than alcoholic beverages, soft | 11 | | drinks,
and food that has been prepared for immediate | 12 | | consumption) and prescription
and nonprescription medicines, | 13 | | drugs, medical appliances, and insulin, urine
testing | 14 | | materials, syringes, and needles used by diabetics, for human | 15 | | use, when
purchased for use by a person receiving medical | 16 | | assistance under Article V of
the Illinois Public Aid Code who | 17 | | resides in a licensed long-term care facility,
as defined in | 18 | | the Nursing Home Care Act, or a licensed facility as defined in | 19 | | the ID/DD Community Care Act or the Specialized Mental Health | 20 | | Rehabilitation Act.
| 21 | | (36) Beginning August 2, 2001, computers and | 22 | | communications equipment
utilized for any hospital purpose and | 23 | | equipment used in the diagnosis,
analysis, or treatment of | 24 | | hospital patients sold to a lessor who leases the
equipment, | 25 | | under a lease of one year or longer executed or in effect at | 26 | | the
time of the purchase, to a hospital that has been issued an |
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| 1 | | active tax
exemption identification number by the Department | 2 | | under Section 1g of this Act.
This paragraph is exempt from the | 3 | | provisions of Section 2-70.
| 4 | | (37) Beginning August 2, 2001, personal property sold to a | 5 | | lessor who
leases the property, under a lease of one year or | 6 | | longer executed or in effect
at the time of the purchase, to a | 7 | | governmental body that has been issued an
active tax exemption | 8 | | identification number by the Department under Section 1g
of | 9 | | this Act. This paragraph is exempt from the provisions of | 10 | | Section 2-70.
| 11 | | (38) Beginning on January 1, 2002 and through June 30, | 12 | | 2016, tangible personal property purchased
from an Illinois | 13 | | retailer by a taxpayer engaged in centralized purchasing
| 14 | | activities in Illinois who will, upon receipt of the property | 15 | | in Illinois,
temporarily store the property in Illinois (i) for | 16 | | the purpose of subsequently
transporting it outside this State | 17 | | for use or consumption thereafter solely
outside this State or | 18 | | (ii) for the purpose of being processed, fabricated, or
| 19 | | manufactured into, attached to, or incorporated into other | 20 | | tangible personal
property to be transported outside this State | 21 | | and thereafter used or consumed
solely outside this State. The | 22 | | Director of Revenue shall, pursuant to rules
adopted in | 23 | | accordance with the Illinois Administrative Procedure Act, | 24 | | issue a
permit to any taxpayer in good standing with the | 25 | | Department who is eligible for
the exemption under this | 26 | | paragraph (38). The permit issued under
this paragraph (38) |
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| 1 | | shall authorize the holder, to the extent and
in the manner | 2 | | specified in the rules adopted under this Act, to purchase
| 3 | | tangible personal property from a retailer exempt from the | 4 | | taxes imposed by
this Act. Taxpayers shall maintain all | 5 | | necessary books and records to
substantiate the use and | 6 | | consumption of all such tangible personal property
outside of | 7 | | the State of Illinois.
| 8 | | (39) Beginning January 1, 2008, tangible personal property | 9 | | used in the construction or maintenance of a community water | 10 | | supply, as defined under Section 3.145 of the Environmental | 11 | | Protection Act, that is operated by a not-for-profit | 12 | | corporation that holds a valid water supply permit issued under | 13 | | Title IV of the Environmental Protection Act. This paragraph is | 14 | | exempt from the provisions of Section 2-70.
| 15 | | (40) Beginning January 1, 2010, materials, parts, | 16 | | equipment, components, and furnishings incorporated into or | 17 | | upon an aircraft as part of the modification, refurbishment, | 18 | | completion, replacement, repair, or maintenance of the | 19 | | aircraft. This exemption includes consumable supplies used in | 20 | | the modification, refurbishment, completion, replacement, | 21 | | repair, and maintenance of aircraft, but excludes any | 22 | | materials, parts, equipment, components, and consumable | 23 | | supplies used in the modification, replacement, repair, and | 24 | | maintenance of aircraft engines or power plants, whether such | 25 | | engines or power plants are installed or uninstalled upon any | 26 | | such aircraft. "Consumable supplies" include, but are not |
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| 1 | | limited to, adhesive, tape, sandpaper, general purpose | 2 | | lubricants, cleaning solution, latex gloves, and protective | 3 | | films. This exemption applies only to those organizations that | 4 | | (i) hold an Air Agency Certificate and are empowered to operate | 5 | | an approved repair station by the Federal Aviation | 6 | | Administration, (ii) have a Class IV Rating, and (iii) conduct | 7 | | operations in accordance with Part 145 of the Federal Aviation | 8 | | Regulations. The exemption does not include aircraft operated | 9 | | by a 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. | 12 | | (41) Tangible personal property sold to a | 13 | | public-facilities corporation, as described in Section | 14 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 15 | | constructing or furnishing a municipal convention hall, but | 16 | | only if the legal title to the municipal convention hall is | 17 | | transferred to the municipality without any further | 18 | | consideration by or on behalf of the municipality at the time | 19 | | of the completion of the municipal convention hall or upon the | 20 | | retirement or redemption of any bonds or other debt instruments | 21 | | issued by the public-facilities corporation in connection with | 22 | | the development of the municipal convention hall. This | 23 | | exemption includes existing public-facilities corporations as | 24 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 25 | | This paragraph is exempt from the provisions of Section 2-70. | 26 | | (Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; |
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| 1 | | 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. | 2 | | 7-2-10; 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227, eff. | 3 | | 1-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. | 4 | | 7-9-12.)
| 5 | | Section 99. Effective date. This Act takes effect upon | 6 | | becoming law. |
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