Full Text of SB2570 95th General Assembly
SB2570eng 95TH GENERAL ASSEMBLY
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| AN ACT concerning fuels.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Renewable Fuels Development | 5 |
| Program Act is amended by changing Sections 10, 15, and 20 and | 6 |
| by adding Sections 15-b, 20-a, and 35 as follows: | 7 |
| (20 ILCS 689/10)
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| Sec. 10. Definitions. As used in this Act:
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| "Biodiesel" means a renewable diesel fuel derived
from
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| biomass that is intended for use in diesel engines.
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| "Biodiesel blend" means a blend of biodiesel
with
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| petroleum-based diesel fuel in which the resultant product | 13 |
| contains no less
than 1% and
no more than 99% biodiesel.
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| "Biomass" means non-fossil organic materials that have
an
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| intrinsic chemical energy content. "Biomass" includes, but is | 16 |
| not limited to,
soybean oil,
other vegetable oils, and ethanol.
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| "Department" means the Department of Commerce and Economic | 18 |
| Opportunity.
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| "Diesel fuel" means any product intended for use
or
offered | 20 |
| for sale as a fuel for engines in which the fuel is injected | 21 |
| into the
combustion
chamber and ignited by pressure without | 22 |
| electric spark.
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| "Director" means the Director of Commerce and Economic |
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| Opportunity.
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| "Denatured ethanol" means an agriculturally derived ethyl | 3 |
| alcohol for blending with gasoline for use as automotive | 4 |
| spark-ignition engine fuel. | 5 |
| "Ethanol" means a product produced from agricultural | 6 |
| commodities or
by-products used as a fuel or to be blended with | 7 |
| other fuels for use in motor
vehicles.
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| "Fuel" means fuel as defined in Section 1.19 of the Motor | 9 |
| Fuel Tax Law.
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| "Gasohol" means motor fuel that is no more than 90% | 11 |
| gasoline and
at least 10%
denatured ethanol that contains no | 12 |
| more than 1.25% water by weight.
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| "Gasoline" means all products commonly or
commercially | 14 |
| known or sold as gasoline (including casing head and absorption | 15 |
| or
natural gasoline).
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| "Illinois agricultural product" means any agricultural | 17 |
| commodity grown in
Illinois
that is used by a production | 18 |
| facility to produce renewable fuel in Illinois,
including, but
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| not limited to, corn, barley, and soy beans.
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| "Labor Organization"
means any organization defined as a | 21 |
| "labor organization" under Section 2 of
the National Labor | 22 |
| Relations Act (29 U.S.C. 152).
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| "Majority blended ethanol fuel"
means motor fuel that
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| contains no less than 70% and no more than 90% denatured | 25 |
| ethanol and no less
than 10% and no more than 30% gasoline.
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| "Motor vehicles" means motor vehicles as defined in the |
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| Illinois Vehicle Code
and watercraft propelled by an internal | 2 |
| combustion engine.
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| "Owner" means any individual, sole proprietorship, limited | 4 |
| partnership,
co-partnership, joint venture, corporation, | 5 |
| cooperative, or other legal
entity, including its agents, that | 6 |
| operates or
will operate a
plant located within the State of | 7 |
| Illinois.
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| "Plant" means a production facility that produces a | 9 |
| renewable fuel. "Plant"
includes land, any building or other | 10 |
| improvement on or to land, and any
personal
properties deemed | 11 |
| necessary or suitable for use, whether or not now in
existence, | 12 |
| in the
processing of fuel from agricultural commodities or | 13 |
| by-products.
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| "Renewable fuel" means ethanol, gasohol, majority blended | 15 |
| ethanol fuel,
biodiesel
blend fuel,
and biodiesel.
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| (Source: P.A. 93-15, eff. 6-11-03; 93-618, eff. 12-11-03; | 17 |
| 94-793, eff. 5-19-06.)
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| (20 ILCS 689/15)
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| Sec. 15. Illinois Renewable Fuels Development Program.
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| (a) The Department must develop and administer the Illinois | 21 |
| Renewable Fuels
Development Program to assist in the | 22 |
| construction, modification, alteration, or
retrofitting of | 23 |
| renewable fuel plants in Illinois.
The recipient of a grant | 24 |
| under
this Section
must:
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| (1) be constructing, modifying, altering, or |
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| retrofitting a plant in the
State
of Illinois;
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| (2) be constructing, modifying, altering, or | 3 |
| retrofitting (i) an ethanol
a plant that has
annual | 4 |
| production capacity of no less than 30,000,000 gallons of | 5 |
| renewable fuel
per year or (ii) a biodiesel plant ; and
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| (3) enter into a project labor agreement as prescribed | 7 |
| by Section 25 of
this
Act.
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| (b) Grant applications must be made on forms provided by | 9 |
| and in accordance
with
procedures established by the | 10 |
| Department.
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| (c) The Department must give preference to applicants that | 12 |
| use Illinois
agricultural products in the production of | 13 |
| renewable fuel at the plant for
which the
grant is being | 14 |
| requested.
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| (Source: P.A. 93-15, eff. 6-11-03.)
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| (20 ILCS 689/15-b new) | 17 |
| Sec. 15-b. Illinois Corn Grain to Fuel Research Consortium | 18 |
| Assistance Program. The Department shall develop and | 19 |
| administer a grant program to assist members of the Illinois | 20 |
| Corn Grain to Fuel Research Consortium in research and support | 21 |
| efforts on behalf of corn kernel to fuel alcohol and value | 22 |
| added co-products, corn stover to fuel alcohol, and cellulosic | 23 |
| fuel alcohol production. The Department shall solicit | 24 |
| proposals for funding if they provide for research in the | 25 |
| Consortium member's own laboratories, for research |
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| collaborations among Consortium members, or for members | 2 |
| outside the Consortium conducting pilot testing at the National | 3 |
| Corn-to-Ethanol Research Center. Preference will be given to | 4 |
| projects in partnership with industry or for project pilot | 5 |
| scale demonstration that advance Illinois leadership in the | 6 |
| development of a bio-based economy. | 7 |
| (20 ILCS 689/20)
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| Sec. 20. Grants. Subject to appropriation,
the
Director is | 9 |
| authorized to award Renewable Fuels Development Program Fund | 10 |
| grants to eligible applicants. The annual
aggregate
amount of | 11 |
| grants awarded for:
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| (1) the Illinois Renewable Fuels Development Program | 13 |
| may
shall not exceed $25,000,000 in Fiscal Years 2009 | 14 |
| through 2013
$20,000,000 .
For the purposes of this item | 15 |
| (1): in Fiscal Year 2009 and 2010, 70% of annual grant | 16 |
| funds must be used for ethanol facilities and 30% must be | 17 |
| used for biodiesel facilities; and in Fiscal Year 2011 and | 18 |
| thereafter, no more than $5,000,000 annually may be used | 19 |
| for biodiesel facilities. If, in any one year, the | 20 |
| Department determines that there are not sufficient | 21 |
| proposed facilities for ethanol or biodiesel facilities to | 22 |
| use the maximum grant funds available, as specified above | 23 |
| for the category of facility, then the Department may use | 24 |
| the appropriated grant funds for the other category of | 25 |
| facility.
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| (2) the Illinois Corn Grain to Fuel Research Consortium | 2 |
| Assistance Program may not exceed $20,000,000 annually, of | 3 |
| which no less than $5,000,000 annually shall be used for | 4 |
| corn stover to fuel alcohol and other cellulosic fuel | 5 |
| alcohol research. | 6 |
| (Source: P.A. 93-15, eff. 6-11-03; 93-618, eff. 12-11-03; | 7 |
| 94-839, eff. 6-6-06.)
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| (20 ILCS 689/20-a new)
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| Sec. 20-a. Limitation on expenses. Expenditures for the | 10 |
| normal operation and execution of renewable fuels programs in | 11 |
| existence on January 1, 2006 within the Department from the | 12 |
| Renewable Fuels Development Program Fund shall not exceed | 13 |
| $5,000,000 annually. | 14 |
| Section 10. The State Finance Act is amended by adding | 15 |
| Section 5.708 as follows: | 16 |
| (30 ILCS 105/5.708 new) | 17 |
| Sec. 5.708. The Renewable Fuels Development Program Fund. | 18 |
| The Renewable Fuels Development Program Fund is created as a | 19 |
| special fund in the State treasury. Moneys in the Fund may be | 20 |
| used by the Department of Commerce and Economic Opportunity, | 21 |
| subject to appropriation, for the Illinois Renewable Fuels | 22 |
| Program, the Illinois Corn Grain to Fuel Research Consortium | 23 |
| Assistance Program, and other renewable fuel programs as |
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| contained in Sections 20 and 20-a of the Illinois Renewable | 2 |
| Fuels Development Program Act.
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| Moneys received for the purpose of this Section, including, | 4 |
| without limitation, fund transfers, gifts, grants, and awards | 5 |
| from any public or private entity, must be deposited into the | 6 |
| Fund. Any interest earned on moneys in the Fund must be | 7 |
| deposited into the Fund.
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| The State Comptroller and State Treasurer shall | 9 |
| automatically transfer on the last day of each month, beginning | 10 |
| on July 30, 2008 and continuing through and including June 30, | 11 |
| 2013, from the General Revenue Fund to the Renewable Fuels | 12 |
| Development Program Fund, an amount equal to 1/12 of | 13 |
| $25,000,000.
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| There must be deposited into the Renewable Fuels | 15 |
| Development Program Fund such bond proceeds and other moneys as | 16 |
| may, from time to time, be provided by law.
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| Section 15. The Use Tax Act is amended by changing Section | 18 |
| 3-5 as follows:
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| (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
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| Sec. 3-5. Exemptions. Use of the following tangible | 21 |
| personal property
is exempt from the tax imposed by this Act:
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| (1) Personal property purchased from a corporation, | 23 |
| society, association,
foundation, institution, or | 24 |
| organization, other than a limited liability
company, that is |
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| organized and operated as a not-for-profit service enterprise
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| for the benefit of persons 65 years of age or older if the | 3 |
| personal property
was not purchased by the enterprise for the | 4 |
| purpose of resale by the
enterprise.
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| (2) Personal property purchased by a not-for-profit | 6 |
| Illinois county
fair association for use in conducting, | 7 |
| operating, or promoting the
county fair.
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| (3) Personal property purchased by a not-for-profit
arts or | 9 |
| cultural organization that establishes, by proof required by | 10 |
| the
Department by
rule, that it has received an exemption under | 11 |
| Section 501(c)(3) of the Internal
Revenue Code and that is | 12 |
| organized and operated primarily for the
presentation
or | 13 |
| support of arts or cultural programming, activities, or | 14 |
| services. These
organizations include, but are not limited to, | 15 |
| music and dramatic arts
organizations such as symphony | 16 |
| orchestras and theatrical groups, arts and
cultural service | 17 |
| organizations, local arts councils, visual arts organizations,
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| and media arts organizations.
On and after the effective date | 19 |
| of this amendatory Act of the 92nd General
Assembly, however, | 20 |
| an entity otherwise eligible for this exemption shall not
make | 21 |
| tax-free purchases unless it has an active identification | 22 |
| number issued by
the Department.
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| (4) Personal property purchased by a governmental body, by | 24 |
| a
corporation, society, association, foundation, or | 25 |
| institution organized and
operated exclusively for charitable, | 26 |
| religious, or educational purposes, or
by a not-for-profit |
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| corporation, society, association, foundation,
institution, or | 2 |
| organization that has no compensated officers or employees
and | 3 |
| that is organized and operated primarily for the recreation of | 4 |
| persons
55 years of age or older. A limited liability company | 5 |
| may qualify for the
exemption under this paragraph only if the | 6 |
| limited liability company is
organized and operated | 7 |
| exclusively for educational purposes. On and after July
1, | 8 |
| 1987, however, no entity otherwise eligible for this exemption | 9 |
| shall make
tax-free purchases unless it has an active exemption | 10 |
| identification number
issued by the Department.
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| (5) Until July 1, 2003, a passenger car that is a | 12 |
| replacement vehicle to
the extent that the
purchase price of | 13 |
| the car is subject to the Replacement Vehicle Tax.
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| (6) Until July 1, 2003 and beginning again on September 1, | 15 |
| 2004, graphic arts machinery and equipment, including
repair | 16 |
| and replacement
parts, both new and used, and including that | 17 |
| manufactured on special order,
certified by the purchaser to be | 18 |
| used primarily for graphic arts production,
and including | 19 |
| machinery and equipment purchased for lease.
Equipment | 20 |
| includes chemicals or chemicals acting as catalysts but only if
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| the
chemicals or chemicals acting as catalysts effect a direct | 22 |
| and immediate change
upon a graphic arts product.
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| (7) Farm chemicals.
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| (8) Legal tender, currency, medallions, or gold or silver | 25 |
| coinage issued by
the State of Illinois, the government of the | 26 |
| United States of America, or the
government of any foreign |
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| country, and bullion.
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| (9) Personal property purchased from a teacher-sponsored | 3 |
| student
organization affiliated with an elementary or | 4 |
| secondary school located in
Illinois.
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| (10) A motor vehicle of the first division, a motor vehicle | 6 |
| of the
second division that is a self-contained motor vehicle | 7 |
| designed or
permanently converted to provide living quarters | 8 |
| for recreational, camping,
or travel use, with direct walk | 9 |
| through to the living quarters from the
driver's seat, or a | 10 |
| motor vehicle of the second division that is of the
van | 11 |
| configuration designed for the transportation of not less than | 12 |
| 7 nor
more than 16 passengers, as defined in Section 1-146 of | 13 |
| the Illinois
Vehicle Code, that is used for automobile renting, | 14 |
| as defined in the
Automobile Renting Occupation and Use Tax | 15 |
| Act.
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| (11) Farm machinery and equipment, both new and used,
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| including that manufactured on special order, certified by the | 18 |
| purchaser
to be used primarily for production agriculture or | 19 |
| State or federal
agricultural programs, including individual | 20 |
| replacement parts for
the machinery and equipment, including | 21 |
| machinery and equipment
purchased
for lease,
and including | 22 |
| implements of husbandry defined in Section 1-130 of
the | 23 |
| Illinois Vehicle Code, farm machinery and agricultural | 24 |
| chemical and
fertilizer spreaders, and nurse wagons required to | 25 |
| be registered
under Section 3-809 of the Illinois Vehicle Code,
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| but excluding other motor
vehicles required to be
registered |
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| under the Illinois Vehicle Code.
Horticultural polyhouses or | 2 |
| hoop houses used for propagating, growing, or
overwintering | 3 |
| plants shall be considered farm machinery and equipment under
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| this item (11).
Agricultural chemical tender tanks and dry | 5 |
| boxes shall include units sold
separately from a motor vehicle | 6 |
| required to be licensed and units sold mounted
on a motor | 7 |
| vehicle required to be licensed if the selling price of the | 8 |
| tender
is separately stated.
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| Farm machinery and equipment shall include precision | 10 |
| farming equipment
that is
installed or purchased to be | 11 |
| installed on farm machinery and equipment
including, but not | 12 |
| limited to, tractors, harvesters, sprayers, planters,
seeders, | 13 |
| or spreaders.
Precision farming equipment includes, but is not | 14 |
| limited to, soil testing
sensors, computers, monitors, | 15 |
| software, global positioning
and mapping systems, and other | 16 |
| such equipment.
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| Farm machinery and equipment also includes computers, | 18 |
| sensors, software, and
related equipment used primarily in the
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| computer-assisted operation of production agriculture | 20 |
| facilities, equipment,
and
activities such as, but not limited | 21 |
| to,
the collection, monitoring, and correlation of
animal and | 22 |
| crop data for the purpose of
formulating animal diets and | 23 |
| agricultural chemicals. This item (11) is exempt
from the | 24 |
| provisions of
Section 3-90.
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| (12) Fuel and petroleum products sold to or used by an air | 26 |
| common
carrier, certified by the carrier to be used for |
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| consumption, shipment, or
storage in the conduct of its | 2 |
| business as an air common carrier, for a
flight destined for or | 3 |
| returning from a location or locations
outside the United | 4 |
| States without regard to previous or subsequent domestic
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| stopovers.
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| (13) Proceeds of mandatory service charges separately
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| stated on customers' bills for the purchase and consumption of | 8 |
| food and
beverages purchased at retail from a retailer, to the | 9 |
| extent that the proceeds
of the service charge are in fact | 10 |
| turned over as tips or as a substitute
for tips to the | 11 |
| employees who participate directly in preparing, serving,
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| hosting or cleaning up the food or beverage function with | 13 |
| respect to which
the service charge is imposed.
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| (14) 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.
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| (15) Photoprocessing machinery and equipment, including | 24 |
| repair and
replacement parts, both new and used, including that
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| manufactured on special order, certified by the purchaser to be | 26 |
| used
primarily for photoprocessing, and including
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| photoprocessing machinery and equipment purchased for lease.
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| (16) Until July 1, 2003, coal exploration, mining, | 3 |
| offhighway hauling,
processing, maintenance, and reclamation | 4 |
| equipment,
including replacement parts and equipment, and
| 5 |
| including equipment purchased for lease, but excluding motor
| 6 |
| vehicles required to be registered under the Illinois Vehicle | 7 |
| Code.
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| (17) Until July 1, 2003, distillation machinery and | 9 |
| equipment, sold as a
unit or kit,
assembled or installed by the | 10 |
| retailer, certified by the user to be used
only for the | 11 |
| production of ethyl alcohol that will be used for consumption
| 12 |
| as motor fuel or as a component of motor fuel for the personal | 13 |
| use of the
user, and not subject to sale or resale.
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| (18) Manufacturing and assembling machinery and equipment | 15 |
| used
primarily in the process of manufacturing or assembling | 16 |
| tangible
personal property for wholesale or retail sale or | 17 |
| lease, whether that sale
or lease is made directly by the | 18 |
| manufacturer or by some other person,
whether the materials | 19 |
| used in the process are
owned by the manufacturer or some other | 20 |
| person, or whether that sale or
lease is made apart from or as | 21 |
| an incident to the seller's engaging in
the service occupation | 22 |
| of producing machines, tools, dies, jigs,
patterns, gauges, or | 23 |
| other similar items of no commercial value on
special order for | 24 |
| a particular purchaser.
| 25 |
| (19) Personal property delivered to a purchaser or | 26 |
| purchaser's donee
inside Illinois when the purchase order for |
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| that personal property was
received by a florist located | 2 |
| outside Illinois who has a florist located
inside Illinois | 3 |
| deliver the personal property.
| 4 |
| (20) Semen used for artificial insemination of livestock | 5 |
| for direct
agricultural production.
| 6 |
| (21) Horses, or interests in horses, registered with and | 7 |
| meeting the
requirements of any of the
Arabian Horse Club | 8 |
| Registry of America, Appaloosa Horse Club, American Quarter
| 9 |
| Horse Association, United States
Trotting Association, or | 10 |
| Jockey Club, as appropriate, used for
purposes of breeding or | 11 |
| racing for prizes. This item (21) is exempt from the provisions | 12 |
| of Section 3-90, and the exemption provided for under this item | 13 |
| (21) applies for all periods beginning May 30, 1995, but no | 14 |
| claim for credit or refund is allowed on or after January 1, | 15 |
| 2008
the effective date of this amendatory Act of the 95th | 16 |
| General Assembly for such taxes paid during the period | 17 |
| beginning May 30, 2000 and ending on January 1, 2008
the | 18 |
| effective date of this amendatory Act of the 95th General | 19 |
| Assembly .
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| (22) Computers and communications equipment utilized for | 21 |
| any
hospital
purpose
and equipment used in the diagnosis,
| 22 |
| analysis, or treatment of hospital patients purchased by a | 23 |
| lessor who leases
the
equipment, under a lease of one year or | 24 |
| longer executed or in effect at the
time the lessor would | 25 |
| otherwise be subject to the tax imposed by this Act, to a
| 26 |
| hospital
that has been issued an active tax exemption |
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| identification number by
the
Department under Section 1g of the | 2 |
| Retailers' Occupation Tax Act. If the
equipment is leased in a | 3 |
| manner that does not qualify for
this exemption or is used in | 4 |
| any other non-exempt manner, the lessor
shall be liable for the
| 5 |
| tax imposed under this Act or the Service Use Tax Act, as the | 6 |
| case may
be, based on the fair market value of the property at | 7 |
| the time the
non-qualifying use occurs. No lessor shall collect | 8 |
| or attempt to collect an
amount (however
designated) that | 9 |
| purports to reimburse that lessor for the tax imposed by this
| 10 |
| Act or the Service Use Tax Act, as the case may be, if the tax | 11 |
| has not been
paid by the lessor. If a lessor improperly | 12 |
| collects any such amount from the
lessee, the lessee shall have | 13 |
| a legal right to claim a refund of that amount
from the lessor. | 14 |
| If, however, that amount is not refunded to the lessee for
any | 15 |
| reason, the lessor is liable to pay that amount to the | 16 |
| Department.
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| (23) Personal property purchased by a lessor who leases the
| 18 |
| property, under
a
lease of
one year or longer executed or in | 19 |
| effect at the time
the lessor would otherwise be subject to the | 20 |
| tax imposed by this Act,
to a governmental body
that has been | 21 |
| issued an active sales tax exemption identification number by | 22 |
| the
Department under Section 1g of the Retailers' Occupation | 23 |
| Tax Act.
If the
property is leased in a manner that does not | 24 |
| qualify for
this exemption
or used in any other non-exempt | 25 |
| manner, the lessor shall be liable for the
tax imposed under | 26 |
| this Act or the Service Use Tax Act, as the case may
be, based |
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| on the fair market value of the property at the time the
| 2 |
| non-qualifying use occurs. No lessor shall collect or attempt | 3 |
| to collect an
amount (however
designated) that purports to | 4 |
| reimburse that lessor for the tax imposed by this
Act or the | 5 |
| Service Use Tax Act, as the case may be, if the tax has not been
| 6 |
| paid by the lessor. If a lessor improperly collects any such | 7 |
| amount from the
lessee, the lessee shall have a legal right to | 8 |
| claim a refund of that amount
from the lessor. If, however, | 9 |
| that amount is not refunded to the lessee for
any reason, the | 10 |
| lessor is liable to pay that amount to the Department.
| 11 |
| (24) Beginning with taxable years ending on or after | 12 |
| December
31, 1995
and
ending with taxable years ending on or | 13 |
| before December 31, 2004,
personal property that is
donated for | 14 |
| disaster relief to be used in a State or federally declared
| 15 |
| disaster area in Illinois or bordering Illinois by a | 16 |
| manufacturer or retailer
that is registered in this State to a | 17 |
| corporation, society, association,
foundation, or institution | 18 |
| that has been issued a sales tax exemption
identification | 19 |
| number by the Department that assists victims of the disaster
| 20 |
| who reside within the declared disaster area.
| 21 |
| (25) Beginning with taxable years ending on or after | 22 |
| December
31, 1995 and
ending with taxable years ending on or | 23 |
| before December 31, 2004, personal
property that is used in the | 24 |
| performance of infrastructure repairs in this
State, including | 25 |
| but not limited to municipal roads and streets, access roads,
| 26 |
| bridges, sidewalks, waste disposal systems, water and sewer |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| line extensions,
water distribution and purification | 2 |
| facilities, storm water drainage and
retention facilities, and | 3 |
| sewage treatment facilities, resulting from a State
or | 4 |
| federally declared disaster in Illinois or bordering Illinois | 5 |
| when such
repairs are initiated on facilities located in the | 6 |
| declared disaster area
within 6 months after the disaster.
| 7 |
| (26) Beginning July 1, 1999, game or game birds purchased | 8 |
| at a "game
breeding
and hunting preserve area" or an "exotic | 9 |
| game hunting area" as those terms are
used in
the Wildlife Code | 10 |
| or at a hunting enclosure approved through rules adopted by
the
| 11 |
| Department of Natural Resources. This paragraph is exempt from | 12 |
| the provisions
of
Section 3-90.
| 13 |
| (27) A motor vehicle, as that term is defined in Section | 14 |
| 1-146
of the
Illinois
Vehicle Code, that is donated to a | 15 |
| corporation, limited liability company,
society, association, | 16 |
| foundation, or institution that is determined by the
Department | 17 |
| to be organized and operated exclusively for educational | 18 |
| purposes.
For purposes of this exemption, "a corporation, | 19 |
| limited liability company,
society, association, foundation, | 20 |
| or institution organized and operated
exclusively for | 21 |
| educational purposes" means all tax-supported public schools,
| 22 |
| private schools that offer systematic instruction in useful | 23 |
| branches of
learning by methods common to public schools and | 24 |
| that compare favorably in
their scope and intensity with the | 25 |
| course of study presented in tax-supported
schools, and | 26 |
| vocational or technical schools or institutes organized and
|
|
|
|
SB2570 Engrossed |
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|
| 1 |
| operated exclusively to provide a course of study of not less | 2 |
| than 6 weeks
duration and designed to prepare individuals to | 3 |
| follow a trade or to pursue a
manual, technical, mechanical, | 4 |
| industrial, business, or commercial
occupation.
| 5 |
| (28) Beginning January 1, 2000, personal property, | 6 |
| including
food,
purchased through fundraising
events for the | 7 |
| benefit of
a public or private elementary or
secondary school, | 8 |
| a group of those schools, or one or more school
districts if | 9 |
| the events are
sponsored by an entity recognized by the school | 10 |
| district that consists
primarily of volunteers and includes
| 11 |
| parents and teachers of the school children. This paragraph | 12 |
| does not apply
to fundraising
events (i) for the benefit of | 13 |
| private home instruction or (ii)
for which the fundraising | 14 |
| entity purchases the personal property sold at
the events from | 15 |
| another individual or entity that sold the property for the
| 16 |
| purpose of resale by the fundraising entity and that
profits | 17 |
| from the sale to the
fundraising entity. This paragraph is | 18 |
| exempt
from the provisions
of Section 3-90.
| 19 |
| (29) Beginning January 1, 2000 and through December 31, | 20 |
| 2001, new or
used automatic vending
machines that prepare and | 21 |
| serve hot food and beverages, including coffee, soup,
and
other | 22 |
| items, and replacement parts for these machines.
Beginning | 23 |
| January 1,
2002 and through June 30, 2003, machines and parts | 24 |
| for machines used in
commercial, coin-operated amusement and | 25 |
| vending business if a use or occupation
tax is paid on the | 26 |
| gross receipts derived from the use of the commercial,
|
|
|
|
SB2570 Engrossed |
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|
| 1 |
| coin-operated amusement and vending machines.
This
paragraph
| 2 |
| is exempt from the provisions of Section 3-90.
| 3 |
| (30) Beginning January 1, 2001 and through June 30, 2011, | 4 |
| food for human consumption that is to be consumed off the | 5 |
| premises
where it is sold (other than alcoholic beverages, soft | 6 |
| drinks, and food that
has been prepared for immediate | 7 |
| consumption) and prescription and
nonprescription medicines, | 8 |
| drugs, medical appliances, and insulin, urine
testing | 9 |
| materials, syringes, and needles used by diabetics, for human | 10 |
| use, when
purchased for use by a person receiving medical | 11 |
| assistance under Article 5 of
the Illinois Public Aid Code who | 12 |
| resides in a licensed long-term care facility,
as defined in | 13 |
| the Nursing Home Care Act.
| 14 |
| (31) Beginning on
the effective date of this amendatory Act | 15 |
| of the 92nd General Assembly,
computers and communications | 16 |
| equipment
utilized for any hospital purpose and equipment used | 17 |
| in the diagnosis,
analysis, or treatment of hospital patients | 18 |
| purchased by a lessor who leases
the equipment, under a lease | 19 |
| of one year or longer executed or in effect at the
time the | 20 |
| lessor would otherwise be subject to the tax imposed by this | 21 |
| Act, to a
hospital that has been issued an active tax exemption | 22 |
| identification number by
the Department under Section 1g of the | 23 |
| Retailers' Occupation Tax Act. If the
equipment is leased in a | 24 |
| manner that does not qualify for this exemption or is
used in | 25 |
| any other nonexempt manner, the lessor shall be liable for the | 26 |
| tax
imposed under this Act or the Service Use Tax Act, as the |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| case may be, based on
the fair market value of the property at | 2 |
| the time the nonqualifying use
occurs. No lessor shall collect | 3 |
| or attempt to collect an amount (however
designated) that | 4 |
| purports to reimburse that lessor for the tax imposed by this
| 5 |
| Act or the Service Use Tax Act, as the case may be, if the tax | 6 |
| has not been
paid by the lessor. If a lessor improperly | 7 |
| collects any such amount from the
lessee, the lessee shall have | 8 |
| a legal right to claim a refund of that amount
from the lessor. | 9 |
| If, however, that amount is not refunded to the lessee for
any | 10 |
| reason, the lessor is liable to pay that amount to the | 11 |
| Department.
This paragraph is exempt from the provisions of | 12 |
| Section 3-90.
| 13 |
| (32) Beginning on
the effective date of this amendatory Act | 14 |
| of the 92nd General Assembly,
personal property purchased by a | 15 |
| lessor who leases the property,
under a lease of one year or | 16 |
| longer executed or in effect at the time the
lessor would | 17 |
| otherwise be subject to the tax imposed by this Act, to a
| 18 |
| governmental body that has been issued an active sales tax | 19 |
| exemption
identification number by the Department under | 20 |
| Section 1g of the Retailers'
Occupation Tax Act. If the | 21 |
| property is leased in a manner that does not
qualify for this | 22 |
| exemption or used in any other nonexempt manner, the lessor
| 23 |
| shall be liable for the tax imposed under this Act or the | 24 |
| Service Use Tax Act,
as the case may be, based on the fair | 25 |
| market value of the property at the time
the nonqualifying use | 26 |
| occurs. No lessor shall collect or attempt to collect
an amount |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| (however designated) that purports to reimburse that lessor for | 2 |
| the
tax imposed by this Act or the Service Use Tax Act, as the | 3 |
| case may be, if the
tax has not been paid by the lessor. If a | 4 |
| lessor improperly collects any such
amount from the lessee, the | 5 |
| lessee shall have a legal right to claim a refund
of that | 6 |
| amount from the lessor. If, however, that amount is not | 7 |
| refunded to
the lessee for any reason, the lessor is liable to | 8 |
| pay that amount to the
Department. This paragraph is exempt | 9 |
| from the provisions of Section 3-90.
| 10 |
| (33) On and after July 1, 2003 and through June 30, 2004, | 11 |
| the use in this State of motor vehicles of
the second division | 12 |
| with a gross vehicle weight in excess of 8,000 pounds and
that | 13 |
| are subject to the commercial distribution fee imposed under | 14 |
| Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | 15 |
| 1, 2004 and through June 30, 2005, the use in this State of | 16 |
| motor vehicles of the second division: (i) with a gross vehicle | 17 |
| weight rating in excess of 8,000 pounds; (ii) that are subject | 18 |
| to the commercial distribution fee imposed under Section | 19 |
| 3-815.1 of the Illinois Vehicle Code; and (iii) that are | 20 |
| primarily used for commercial purposes. Through June 30, 2005, | 21 |
| this exemption applies to repair and
replacement parts added | 22 |
| after the initial purchase of such a motor vehicle if
that | 23 |
| motor
vehicle is used in a manner that would qualify for the | 24 |
| rolling stock exemption
otherwise provided for in this Act. For | 25 |
| purposes of this paragraph, the term "used for commercial | 26 |
| purposes" means the transportation of persons or property in |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| furtherance of any commercial or industrial enterprise, | 2 |
| whether for-hire or not.
| 3 |
| (34) Beginning January 1, 2008, tangible personal property | 4 |
| used in the construction or maintenance of a community water | 5 |
| supply, as defined under Section 3.145 of the Environmental | 6 |
| Protection Act, that is operated by a not-for-profit | 7 |
| corporation that holds a valid water supply permit issued under | 8 |
| Title IV of the Environmental Protection Act. This paragraph is | 9 |
| exempt from the provisions of Section 3-90. | 10 |
| (35) Beginning on July 1, 2008, that part of the selling | 11 |
| price of motor fuel or
gasohol that exceeds $2.50 per gallon. | 12 |
| This paragraph is exempt from the provisions of Section 3-90. | 13 |
| (Source: P.A. 94-1002, eff. 7-3-06; 95-88, eff. 1-1-08; 95-538, | 14 |
| eff. 1-1-08; revised 10-31-07.)
| 15 |
| Section 20. The Service Use Tax Act is amended by changing | 16 |
| Section 3-5 as follows:
| 17 |
| (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
| 18 |
| Sec. 3-5. Exemptions. Use of the following tangible | 19 |
| personal property
is exempt from the tax imposed by this Act:
| 20 |
| (1) Personal property purchased from a corporation, | 21 |
| society,
association, foundation, institution, or | 22 |
| organization, other than a limited
liability company, that is | 23 |
| organized and operated as a not-for-profit service
enterprise | 24 |
| for the benefit of persons 65 years of age or older if the |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| personal
property was not purchased by the enterprise for the | 2 |
| purpose of resale by the
enterprise.
| 3 |
| (2) Personal property purchased by a non-profit Illinois | 4 |
| county fair
association for use in conducting, operating, or | 5 |
| promoting the county fair.
| 6 |
| (3) Personal property purchased by a not-for-profit arts
or | 7 |
| 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, graphic arts machinery and equipment, including
repair |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| and
replacement parts, both new and used, and including that | 2 |
| manufactured on
special order or purchased for lease, certified | 3 |
| by the purchaser to be used
primarily for graphic arts | 4 |
| production.
Equipment includes chemicals or
chemicals acting | 5 |
| as catalysts but only if
the chemicals or chemicals acting as | 6 |
| catalysts effect a direct and immediate
change upon a graphic | 7 |
| arts product.
| 8 |
| (6) Personal property purchased from a teacher-sponsored | 9 |
| student
organization affiliated with an elementary or | 10 |
| secondary school 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 |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 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 3-75.
| 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.
|
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| (9) Proceeds of mandatory service charges separately | 2 |
| stated on
customers' bills for the purchase and consumption of | 3 |
| food and beverages
acquired as an incident to the purchase of a | 4 |
| service from a serviceman, to
the extent that the proceeds of | 5 |
| the service charge are in fact
turned over as tips or as a | 6 |
| substitute for tips to the employees who
participate directly | 7 |
| in preparing, serving, hosting or cleaning up the
food or | 8 |
| beverage function with respect to which the service charge is | 9 |
| imposed.
| 10 |
| (10) Until July 1, 2003, oil field exploration, drilling, | 11 |
| and production
equipment, including
(i) rigs and parts of rigs, | 12 |
| rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 13 |
| tubular goods, including casing and
drill strings, (iii) pumps | 14 |
| and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 15 |
| individual replacement part for oil field exploration,
| 16 |
| drilling, and production equipment, and (vi) machinery and | 17 |
| equipment purchased
for lease; but
excluding motor vehicles | 18 |
| required to be registered under the Illinois
Vehicle Code.
| 19 |
| (11) Proceeds from the sale of photoprocessing machinery | 20 |
| and
equipment, including repair and replacement parts, both new | 21 |
| and
used, including that manufactured on special order, | 22 |
| certified by the
purchaser to be used primarily for | 23 |
| photoprocessing, and including
photoprocessing machinery and | 24 |
| equipment purchased for lease.
| 25 |
| (12) Until July 1, 2003, coal exploration, mining, | 26 |
| offhighway hauling,
processing,
maintenance, and reclamation |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| equipment, including
replacement parts and equipment, and | 2 |
| including
equipment purchased for lease, but excluding motor | 3 |
| vehicles required to be
registered under the Illinois Vehicle | 4 |
| Code.
| 5 |
| (13) Semen used for artificial insemination of livestock | 6 |
| for direct
agricultural production.
| 7 |
| (14) Horses, or interests in horses, registered with and | 8 |
| meeting the
requirements of any of the
Arabian Horse Club | 9 |
| Registry of America, Appaloosa Horse Club, American Quarter
| 10 |
| Horse Association, United States
Trotting Association, or | 11 |
| Jockey Club, as appropriate, used for
purposes of breeding or | 12 |
| racing for prizes. This item (14) is exempt from the provisions | 13 |
| of Section 3-75, and the exemption provided for under this item | 14 |
| (14) applies for all periods beginning May 30, 1995, but no | 15 |
| claim for credit or refund is allowed on or after the effective | 16 |
| date of this amendatory Act of the 95th General Assembly for | 17 |
| such taxes paid during the period beginning May 30, 2000 and | 18 |
| ending on the effective date of this amendatory Act of the 95th | 19 |
| General Assembly.
| 20 |
| (15) Computers and communications equipment utilized for | 21 |
| any
hospital
purpose
and equipment used in the diagnosis,
| 22 |
| analysis, or treatment of hospital patients purchased by a | 23 |
| lessor who leases
the
equipment, under a lease of one year or | 24 |
| longer executed or in effect at the
time
the lessor would | 25 |
| otherwise be subject to the tax imposed by this Act,
to a
| 26 |
| hospital
that has been issued an active tax exemption |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| identification number by the
Department under Section 1g of the | 2 |
| Retailers' Occupation Tax Act.
If the
equipment is leased in a | 3 |
| manner that does not qualify for
this exemption
or is used in | 4 |
| any other non-exempt manner,
the lessor shall be liable for the
| 5 |
| tax imposed under this Act or the Use Tax Act, as the case may
| 6 |
| be, based on the fair market value of the property at the time | 7 |
| the
non-qualifying use occurs. No lessor shall collect or | 8 |
| attempt to collect an
amount (however
designated) that purports | 9 |
| to reimburse that lessor for the tax imposed by this
Act or the | 10 |
| Use Tax Act, as the case may be, if the tax has not been
paid by | 11 |
| the lessor. If a lessor improperly collects any such amount | 12 |
| from the
lessee, the lessee shall have a legal right to claim a | 13 |
| refund of that amount
from the lessor. If, however, that amount | 14 |
| is not refunded to the lessee for
any reason, the lessor is | 15 |
| liable to pay that amount to the Department.
| 16 |
| (16) Personal property purchased by a lessor who leases the
| 17 |
| property, under
a
lease of one year or longer executed or in | 18 |
| effect at the time
the lessor would otherwise be subject to the | 19 |
| tax imposed by this Act,
to a governmental body
that has been | 20 |
| issued an active tax exemption identification number by the
| 21 |
| Department under Section 1g of the Retailers' Occupation Tax | 22 |
| Act.
If the
property is leased in a manner that does not | 23 |
| qualify for
this exemption
or is used in any other non-exempt | 24 |
| manner,
the lessor shall be liable for the
tax imposed under | 25 |
| this Act or the Use Tax Act, as the case may
be, based on the | 26 |
| fair market value of the property at the time the
|
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| non-qualifying use occurs. No lessor shall collect or attempt | 2 |
| to collect an
amount (however
designated) that purports to | 3 |
| reimburse that lessor for the tax imposed by this
Act or the | 4 |
| Use Tax Act, as the case may be, if the tax has not been
paid by | 5 |
| the lessor. If a lessor improperly collects any such amount | 6 |
| from the
lessee, the lessee shall have a legal right to claim a | 7 |
| refund of that amount
from the lessor. If, however, that amount | 8 |
| is not refunded to the lessee for
any reason, the lessor is | 9 |
| liable to pay that amount to the Department.
| 10 |
| (17) 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
donated for | 13 |
| disaster relief to be used in a State or federally declared
| 14 |
| disaster area in Illinois or bordering Illinois by a | 15 |
| manufacturer or retailer
that is registered in this State to a | 16 |
| corporation, society, association,
foundation, or institution | 17 |
| that has been issued a sales tax exemption
identification | 18 |
| number by the Department that assists victims of the disaster
| 19 |
| who reside within the declared disaster area.
| 20 |
| (18) Beginning with taxable years ending on or after | 21 |
| December
31, 1995 and
ending with taxable years ending on or | 22 |
| before December 31, 2004, personal
property that is used in the | 23 |
| performance of infrastructure repairs in this
State, including | 24 |
| but not limited to municipal roads and streets, access roads,
| 25 |
| bridges, sidewalks, waste disposal systems, water and sewer | 26 |
| line extensions,
water distribution and purification |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| facilities, storm water drainage and
retention facilities, and | 2 |
| sewage treatment facilities, resulting from a State
or | 3 |
| federally declared disaster in Illinois or bordering Illinois | 4 |
| when such
repairs are initiated on facilities located in the | 5 |
| declared disaster area
within 6 months after the disaster.
| 6 |
| (19) Beginning July 1, 1999, game or game birds purchased | 7 |
| at a "game
breeding
and hunting preserve area" or an "exotic | 8 |
| game hunting area" as those terms are
used in
the Wildlife Code | 9 |
| or at a hunting enclosure approved through rules adopted by
the
| 10 |
| Department of Natural Resources. This paragraph is exempt from | 11 |
| the provisions
of
Section 3-75.
| 12 |
| (20) A motor vehicle, as that term is defined in Section | 13 |
| 1-146
of the
Illinois Vehicle Code, that is donated to a | 14 |
| corporation, limited liability
company, society, association, | 15 |
| foundation, or institution that is determined by
the Department | 16 |
| to be organized and operated exclusively for educational
| 17 |
| purposes. For purposes of this exemption, "a corporation, | 18 |
| limited liability
company, society, association, foundation, | 19 |
| or institution organized and
operated
exclusively for | 20 |
| educational purposes" means all tax-supported public schools,
| 21 |
| private schools that offer systematic instruction in useful | 22 |
| branches of
learning by methods common to public schools and | 23 |
| that compare favorably in
their scope and intensity with the | 24 |
| course of study presented in tax-supported
schools, and | 25 |
| vocational or technical schools or institutes organized and
| 26 |
| operated exclusively to provide a course of study of not less |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| than 6 weeks
duration and designed to prepare individuals to | 2 |
| follow a trade or to pursue a
manual, technical, mechanical, | 3 |
| industrial, business, or commercial
occupation.
| 4 |
| (21) Beginning January 1, 2000, personal property, | 5 |
| including
food,
purchased through fundraising
events for the | 6 |
| benefit of
a public or private elementary or
secondary school, | 7 |
| a group of those schools, or one or more school
districts if | 8 |
| the events are
sponsored by an entity recognized by the school | 9 |
| district that consists
primarily of volunteers and includes
| 10 |
| parents and teachers of the school children. This paragraph | 11 |
| does not apply
to fundraising
events (i) for the benefit of | 12 |
| private home instruction or (ii)
for which the fundraising | 13 |
| entity purchases the personal property sold at
the events from | 14 |
| another individual or entity that sold the property for the
| 15 |
| purpose of resale by the fundraising entity and that
profits | 16 |
| from the sale to the
fundraising entity. This paragraph is | 17 |
| exempt
from the provisions
of Section 3-75.
| 18 |
| (22) Beginning January 1, 2000
and through December 31, | 19 |
| 2001, new or used automatic vending
machines that prepare and | 20 |
| serve hot food and beverages, including coffee, soup,
and
other | 21 |
| items, and replacement parts for these machines.
Beginning | 22 |
| January 1,
2002 and through June 30, 2003, machines and parts | 23 |
| for machines used in
commercial, coin-operated
amusement
and | 24 |
| vending business if a use or occupation tax is paid on the | 25 |
| gross receipts
derived from
the use of the commercial, | 26 |
| coin-operated amusement and vending machines.
This
paragraph
|
|
|
|
SB2570 Engrossed |
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|
| 1 |
| is exempt from the provisions of Section 3-75.
| 2 |
| (23) Beginning August 23, 2001 and through June 30, 2011, | 3 |
| food for human consumption that is to be consumed off the
| 4 |
| premises
where it is sold (other than alcoholic beverages, soft | 5 |
| drinks, and food that
has been prepared for immediate | 6 |
| consumption) and prescription and
nonprescription medicines, | 7 |
| drugs, medical appliances, and insulin, urine
testing | 8 |
| materials, syringes, and needles used by diabetics, for human | 9 |
| use, when
purchased for use by a person receiving medical | 10 |
| assistance under Article 5 of
the Illinois Public Aid Code who | 11 |
| resides in a licensed long-term care facility,
as defined in | 12 |
| the Nursing Home Care Act.
| 13 |
| (24) Beginning on the effective date of this amendatory Act | 14 |
| of the 92nd
General Assembly, computers and communications | 15 |
| equipment
utilized for any hospital purpose and equipment used | 16 |
| in the diagnosis,
analysis, or treatment of hospital patients | 17 |
| purchased by a lessor who leases
the equipment, under a lease | 18 |
| of one year or longer executed or in effect at the
time the | 19 |
| lessor would otherwise be subject to the tax imposed by this | 20 |
| Act, to a
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 nonexempt manner, the lessor shall be liable for the
| 25 |
| tax imposed under this Act or the Use Tax Act, as the case may | 26 |
| be, based on the
fair market value of the property at the time |
|
|
|
SB2570 Engrossed |
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|
| 1 |
| the nonqualifying use occurs.
No lessor shall collect or | 2 |
| attempt to collect an amount (however
designated) that purports | 3 |
| to reimburse that lessor for the tax imposed by this
Act or the | 4 |
| Use Tax Act, as the case may be, if the tax has not been
paid by | 5 |
| the lessor. If a lessor improperly collects any such amount | 6 |
| from the
lessee, the lessee shall have a legal right to claim a | 7 |
| refund of that amount
from the lessor. If, however, that amount | 8 |
| is not refunded to the lessee for
any reason, the lessor is | 9 |
| liable to pay that amount to the Department.
This paragraph is | 10 |
| exempt from the provisions of Section 3-75.
| 11 |
| (25) Beginning
on the effective date of this amendatory Act | 12 |
| of the 92nd General Assembly,
personal property purchased by a | 13 |
| lessor
who leases the property, under a lease of one year or | 14 |
| longer executed or in
effect at the time the lessor would | 15 |
| otherwise be subject to the tax imposed by
this Act, to a | 16 |
| governmental body that has been issued an active tax exemption
| 17 |
| identification number by the Department under Section 1g of the | 18 |
| Retailers'
Occupation Tax Act. If the property is leased in a | 19 |
| manner that does not
qualify for this exemption or is used in | 20 |
| any other nonexempt manner, the
lessor shall be liable for the | 21 |
| tax imposed under this Act or the Use Tax Act,
as the case may | 22 |
| be, based on the fair market value of the property at the time
| 23 |
| the nonqualifying use occurs. No lessor shall collect or | 24 |
| attempt to collect
an amount (however designated) that purports | 25 |
| to reimburse that lessor for the
tax imposed by this Act or the | 26 |
| Use Tax Act, as the case may be, if the tax has
not been paid by |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| the lessor. If a lessor improperly collects any such amount
| 2 |
| from the lessee, the lessee shall have a legal right to claim a | 3 |
| refund of that
amount from the lessor. If, however, that amount | 4 |
| is not refunded to the lessee
for any reason, the lessor is | 5 |
| liable to pay that amount to the Department.
This paragraph is | 6 |
| exempt from the provisions of Section 3-75.
| 7 |
| (26) Beginning January 1, 2008, tangible personal property | 8 |
| used in the construction or maintenance of a community water | 9 |
| supply, as defined under Section 3.145 of the Environmental | 10 |
| Protection Act, that is operated by a not-for-profit | 11 |
| corporation that holds a valid water supply permit issued under | 12 |
| Title IV of the Environmental Protection Act. This paragraph is | 13 |
| exempt from the provisions of Section 3-75.
| 14 |
| (27) Beginning on July 1, 2008, that part of the selling | 15 |
| price of motor fuel or
gasohol that exceeds $2.50 per gallon. | 16 |
| This paragraph is exempt from the provisions of Section 3-75. | 17 |
| (Source: P.A. 94-1002, eff. 7-3-06; 95-88, eff. 1-1-08; 95-538, | 18 |
| eff. 1-1-08; revised 11-2-07.)
| 19 |
| Section 25. The Service Occupation Tax Act is amended by | 20 |
| changing Section 3-5 as follows:
| 21 |
| (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
| 22 |
| Sec. 3-5. Exemptions. The following tangible personal | 23 |
| property is
exempt from the tax imposed by this Act:
| 24 |
| (1) Personal property sold by a corporation, society, |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| association,
foundation, institution, or organization, other | 2 |
| than a limited liability
company, that is organized and | 3 |
| operated as a not-for-profit service enterprise
for the benefit | 4 |
| of persons 65 years of age or older if the personal property
| 5 |
| was not purchased by the enterprise for the purpose of resale | 6 |
| by the
enterprise.
| 7 |
| (2) Personal property purchased by a not-for-profit | 8 |
| Illinois county fair
association for use in conducting, | 9 |
| operating, or promoting the county fair.
| 10 |
| (3) Personal property purchased by any not-for-profit
arts | 11 |
| or 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 |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 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, graphic arts machinery and equipment, including
repair | 5 |
| and
replacement parts, both new and used, and including that | 6 |
| manufactured on
special order or purchased for lease, certified | 7 |
| by the purchaser to be used
primarily for graphic arts | 8 |
| production.
Equipment includes chemicals or chemicals acting | 9 |
| as catalysts but only if
the
chemicals or chemicals acting as | 10 |
| catalysts effect a direct and immediate change
upon a graphic | 11 |
| arts product.
| 12 |
| (6) Personal property sold by a teacher-sponsored student | 13 |
| organization
affiliated with an elementary or secondary school | 14 |
| 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 |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 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 3-55.
| 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 |
|
|
|
SB2570 Engrossed |
- 38 - |
LRB095 19179 BDD 45420 b |
|
| 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, to the extent that the proceeds of the | 8 |
| service charge are in fact
turned over as tips or as a | 9 |
| substitute for tips to the employees who
participate directly | 10 |
| in preparing, serving, hosting or cleaning up the
food or | 11 |
| beverage function with respect to which the service charge is | 12 |
| imposed.
| 13 |
| (10) Until July 1, 2003, oil field exploration, drilling, | 14 |
| and production
equipment,
including (i) rigs and parts of rigs, | 15 |
| rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 16 |
| tubular goods, including casing and
drill strings, (iii) pumps | 17 |
| and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 18 |
| individual replacement part for oil field exploration,
| 19 |
| drilling, and production equipment, and (vi) machinery and | 20 |
| equipment purchased
for lease; but
excluding motor vehicles | 21 |
| required to be registered under the Illinois
Vehicle Code.
| 22 |
| (11) Photoprocessing machinery and equipment, including | 23 |
| repair and
replacement parts, both new and used, including that | 24 |
| manufactured on
special order, certified by the purchaser to be | 25 |
| used primarily for
photoprocessing, and including | 26 |
| photoprocessing machinery and equipment
purchased for lease.
|
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| (12) Until July 1, 2003, coal exploration, mining, | 2 |
| offhighway hauling,
processing,
maintenance, and reclamation | 3 |
| equipment, including
replacement parts and equipment, and | 4 |
| including
equipment
purchased for lease, but excluding motor | 5 |
| vehicles required to be registered
under the Illinois Vehicle | 6 |
| Code.
| 7 |
| (13) Beginning January 1, 1992 and through June 30, 2011, | 8 |
| food for human consumption that is to be consumed off the | 9 |
| premises
where it is sold (other than alcoholic beverages, soft | 10 |
| drinks and food that
has been prepared for immediate | 11 |
| consumption) and prescription and
non-prescription medicines, | 12 |
| drugs, medical appliances, and insulin, urine
testing | 13 |
| materials, syringes, and needles used by diabetics, for human | 14 |
| use,
when purchased for use by a person receiving medical | 15 |
| assistance under
Article 5 of the Illinois Public Aid Code who | 16 |
| resides in a licensed
long-term care facility, as defined in | 17 |
| the Nursing Home Care Act.
| 18 |
| (14) Semen used for artificial insemination of livestock | 19 |
| for direct
agricultural production.
| 20 |
| (15) Horses, or interests in horses, registered with and | 21 |
| meeting the
requirements of any of the
Arabian Horse Club | 22 |
| Registry of America, Appaloosa Horse Club, American Quarter
| 23 |
| Horse Association, United States
Trotting Association, or | 24 |
| Jockey Club, as appropriate, used for
purposes of breeding or | 25 |
| racing for prizes. This item (15) is exempt from the provisions | 26 |
| of Section 3-55, and the exemption provided for under this item |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| (15) applies for all periods beginning May 30, 1995, but no | 2 |
| claim for credit or refund is allowed on or after January 1, | 3 |
| 2008 ( the effective date of Public Act 95-88)
this amendatory | 4 |
| Act of the 95th General Assembly for such taxes paid during the | 5 |
| period beginning May 30, 2000 and ending on January 1, 2008 | 6 |
| ( the effective date of Public Act 95-88)
this amendatory Act of | 7 |
| the 95th General Assembly .
| 8 |
| (16) Computers and communications equipment utilized for | 9 |
| any
hospital
purpose
and equipment used in the diagnosis,
| 10 |
| analysis, or treatment of hospital patients sold to a lessor | 11 |
| who leases the
equipment, under a lease of one year or longer | 12 |
| executed or in effect at the
time of the purchase, to a
| 13 |
| hospital
that has been issued an active tax exemption | 14 |
| identification number by the
Department under Section 1g of the | 15 |
| Retailers' Occupation Tax Act.
| 16 |
| (17) Personal property sold to a lessor who leases the
| 17 |
| property, under a
lease of one year or longer executed or in | 18 |
| effect at the time of the purchase,
to a governmental body
that | 19 |
| has been issued an active tax exemption identification number | 20 |
| by the
Department under Section 1g of the Retailers' Occupation | 21 |
| Tax Act.
| 22 |
| (18) 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 |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 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 |
| (19) 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 |
| (20) Beginning July 1, 1999, game or game birds sold at a | 19 |
| "game breeding
and
hunting preserve area" or an "exotic game | 20 |
| hunting area" as those terms are used
in the
Wildlife Code or | 21 |
| at a hunting enclosure approved through rules adopted by the
| 22 |
| Department of Natural Resources. This paragraph is exempt from | 23 |
| the provisions
of
Section 3-55.
| 24 |
| (21) A motor vehicle, as that term is defined in Section | 25 |
| 1-146
of the
Illinois Vehicle Code, that is donated to a | 26 |
| corporation, limited liability
company, society, association, |
|
|
|
SB2570 Engrossed |
- 42 - |
LRB095 19179 BDD 45420 b |
|
| 1 |
| foundation, or institution that is determined by
the Department | 2 |
| to be organized and operated exclusively for educational
| 3 |
| purposes. For purposes of this exemption, "a corporation, | 4 |
| limited liability
company, society, association, foundation, | 5 |
| or institution organized and
operated
exclusively for | 6 |
| educational purposes" means all tax-supported public schools,
| 7 |
| private schools that offer systematic instruction in useful | 8 |
| branches of
learning by methods common to public schools and | 9 |
| that compare favorably in
their scope and intensity with the | 10 |
| course of study presented in tax-supported
schools, and | 11 |
| vocational or technical schools or institutes organized and
| 12 |
| operated exclusively to provide a course of study of not less | 13 |
| than 6 weeks
duration and designed to prepare individuals to | 14 |
| follow a trade or to pursue a
manual, technical, mechanical, | 15 |
| industrial, business, or commercial
occupation.
| 16 |
| (22) Beginning January 1, 2000, personal property, | 17 |
| including
food,
purchased through fundraising
events for the | 18 |
| benefit of
a public or private elementary or
secondary school, | 19 |
| a group of those schools, or one or more school
districts if | 20 |
| the events are
sponsored by an entity recognized by the school | 21 |
| district that consists
primarily of volunteers and includes
| 22 |
| parents and teachers of the school children. This paragraph | 23 |
| does not apply
to fundraising
events (i) for the benefit of | 24 |
| private home instruction or (ii)
for which the fundraising | 25 |
| entity purchases the personal property sold at
the events from | 26 |
| another individual or entity that sold the property for the
|
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| purpose of resale by the fundraising entity and that
profits | 2 |
| from the sale to the
fundraising entity. This paragraph is | 3 |
| exempt
from the provisions
of Section 3-55.
| 4 |
| (23) Beginning January 1, 2000
and through December 31, | 5 |
| 2001, new or used automatic vending
machines that prepare and | 6 |
| serve hot food and beverages, including coffee, soup,
and
other | 7 |
| items, and replacement parts for these machines.
Beginning | 8 |
| January 1,
2002 and through June 30, 2003, machines and parts | 9 |
| for
machines used in commercial, coin-operated amusement
and | 10 |
| vending business if a use or occupation tax is paid on the | 11 |
| gross receipts
derived from
the use of the commercial, | 12 |
| coin-operated amusement and vending machines.
This paragraph | 13 |
| is exempt from the provisions of Section 3-55.
| 14 |
| (24) Beginning
on the effective date of this amendatory Act | 15 |
| of the 92nd General Assembly,
computers and communications | 16 |
| equipment
utilized for any hospital purpose and equipment used | 17 |
| in the diagnosis,
analysis, or treatment of hospital patients | 18 |
| sold to a lessor who leases the
equipment, under a lease of one | 19 |
| year or longer executed or in effect at the
time of the | 20 |
| purchase, to a hospital that has been issued an active tax
| 21 |
| exemption identification number by the Department under | 22 |
| Section 1g of the
Retailers' Occupation Tax Act. This paragraph | 23 |
| is exempt from the provisions of
Section 3-55.
| 24 |
| (25) Beginning
on the effective date of this amendatory Act | 25 |
| of the 92nd General Assembly,
personal property sold to a | 26 |
| lessor who
leases the property, under a lease of one year or |
|
|
|
SB2570 Engrossed |
- 44 - |
LRB095 19179 BDD 45420 b |
|
| 1 |
| longer executed or in effect
at the time of the purchase, 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. This paragraph is exempt from | 5 |
| the
provisions of Section 3-55.
| 6 |
| (26) Beginning on January 1, 2002 and through June 30, | 7 |
| 2011, tangible personal property
purchased
from an Illinois | 8 |
| retailer by a taxpayer engaged in centralized purchasing
| 9 |
| activities in Illinois who will, upon receipt of the property | 10 |
| in Illinois,
temporarily store the property in Illinois (i) for | 11 |
| the purpose of subsequently
transporting it outside this State | 12 |
| for use or consumption thereafter solely
outside this State or | 13 |
| (ii) for the purpose of being processed, fabricated, or
| 14 |
| manufactured into, attached to, or incorporated into other | 15 |
| tangible personal
property to be transported outside this State | 16 |
| and thereafter used or consumed
solely outside this State. The | 17 |
| Director of Revenue shall, pursuant to rules
adopted in | 18 |
| accordance with the Illinois Administrative Procedure Act, | 19 |
| issue a
permit to any taxpayer in good standing with the | 20 |
| Department who is eligible for
the exemption under this | 21 |
| paragraph (26). The permit issued under
this paragraph (26) | 22 |
| shall authorize the holder, to the extent and
in the manner | 23 |
| specified in the rules adopted under this Act, to purchase
| 24 |
| tangible personal property from a retailer exempt from the | 25 |
| taxes imposed by
this Act. Taxpayers shall maintain all | 26 |
| necessary books and records to
substantiate the use and |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| consumption of all such tangible personal property
outside of | 2 |
| the State of Illinois.
| 3 |
| (27) Beginning January 1, 2008, tangible personal property | 4 |
| used in the construction or maintenance of a community water | 5 |
| supply, as defined under Section 3.145 of the Environmental | 6 |
| Protection Act, that is operated by a not-for-profit | 7 |
| corporation that holds a valid water supply permit issued under | 8 |
| Title IV of the Environmental Protection Act. This paragraph is | 9 |
| exempt from the provisions of Section 3-55.
| 10 |
| (28) Beginning on July 1, 2008, that part of the selling | 11 |
| price of motor fuel or
gasohol that exceeds $2.50 per gallon. | 12 |
| This paragraph is exempt from the provisions of Section 3-55. | 13 |
| (Source: P.A. 94-1002, eff. 7-3-06; 95-88, eff. 1-1-08; 95-538, | 14 |
| eff. 1-1-08; revised 11-2-07.)
| 15 |
| Section 30. The Retailers' Occupation Tax Act is amended by | 16 |
| changing Section 2-5 as follows:
| 17 |
| (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
| 18 |
| Sec. 2-5. Exemptions. Gross receipts from proceeds from the | 19 |
| sale of
the following tangible personal property are exempt | 20 |
| from the tax imposed
by this Act:
| 21 |
| (1) Farm chemicals.
| 22 |
| (2) Farm machinery and equipment, both new and used, | 23 |
| including that
manufactured on special order, certified by the | 24 |
| purchaser to be used
primarily for production agriculture or |
|
|
|
SB2570 Engrossed |
- 46 - |
LRB095 19179 BDD 45420 b |
|
| 1 |
| State or federal agricultural
programs, including individual | 2 |
| replacement parts for the machinery and
equipment, including | 3 |
| machinery and equipment purchased for lease,
and including | 4 |
| implements of husbandry defined in Section 1-130 of
the | 5 |
| Illinois Vehicle Code, farm machinery and agricultural | 6 |
| chemical and
fertilizer spreaders, and nurse wagons required to | 7 |
| be registered
under Section 3-809 of the Illinois Vehicle Code,
| 8 |
| but
excluding other motor vehicles required to be registered | 9 |
| under the Illinois
Vehicle Code.
Horticultural polyhouses or | 10 |
| hoop houses used for propagating, growing, or
overwintering | 11 |
| plants shall be considered farm machinery and equipment under
| 12 |
| this item (2).
Agricultural chemical tender tanks and dry boxes | 13 |
| shall include units sold
separately from a motor vehicle | 14 |
| required to be licensed and units sold mounted
on a motor | 15 |
| vehicle required to be licensed, if the selling price of the | 16 |
| tender
is separately stated.
| 17 |
| Farm machinery and equipment shall include precision | 18 |
| farming equipment
that is
installed or purchased to be | 19 |
| installed on farm machinery and equipment
including, but not | 20 |
| limited to, tractors, harvesters, sprayers, planters,
seeders, | 21 |
| or spreaders.
Precision farming equipment includes, but is not | 22 |
| limited to,
soil testing sensors, computers, monitors, | 23 |
| software, global positioning
and mapping systems, and other | 24 |
| such equipment.
| 25 |
| Farm machinery and equipment also includes computers, | 26 |
| sensors, software, and
related equipment used primarily in the
|
|
|
|
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|
| 1 |
| computer-assisted operation of production agriculture | 2 |
| facilities, equipment,
and activities such as, but
not limited | 3 |
| to,
the collection, monitoring, and correlation of
animal and | 4 |
| crop data for the purpose of
formulating animal diets and | 5 |
| agricultural chemicals. This item (7) is exempt
from the | 6 |
| provisions of
Section 2-70.
| 7 |
| (3) Until July 1, 2003, distillation machinery and | 8 |
| equipment, sold as a
unit or kit,
assembled or installed by the | 9 |
| retailer, certified by the user to be used
only for the | 10 |
| production of ethyl alcohol that will be used for consumption
| 11 |
| as motor fuel or as a component of motor fuel for the personal | 12 |
| use of the
user, and not subject to sale or resale.
| 13 |
| (4) Until July 1, 2003 and beginning again September 1, | 14 |
| 2004, graphic arts machinery and equipment, including
repair | 15 |
| and
replacement parts, both new and used, and including that | 16 |
| manufactured on
special order or purchased for lease, certified | 17 |
| by the purchaser to be used
primarily for graphic arts | 18 |
| production.
Equipment includes chemicals or
chemicals acting | 19 |
| as catalysts but only if
the chemicals or chemicals acting as | 20 |
| catalysts effect a direct and immediate
change upon a
graphic | 21 |
| arts product.
| 22 |
| (5) A motor vehicle of the first division, a motor vehicle | 23 |
| of the second division that is a self contained motor vehicle | 24 |
| designed or permanently converted to provide living quarters | 25 |
| for recreational, camping, or travel use, with direct walk | 26 |
| through access to the living quarters from the driver's seat, |
|
|
|
SB2570 Engrossed |
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|
| 1 |
| or a motor vehicle of the second division that is of the van | 2 |
| configuration designed for the transportation of not less than | 3 |
| 7 nor more than 16 passengers, as defined in Section 1-146 of | 4 |
| the Illinois Vehicle Code, that is used for automobile renting, | 5 |
| as defined in the Automobile Renting Occupation and Use Tax | 6 |
| Act. This paragraph is exempt from
the provisions of Section | 7 |
| 2-70.
| 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) Until July 1, 2003, proceeds of that portion of the | 12 |
| selling price of
a passenger car the
sale of which is subject | 13 |
| to the Replacement Vehicle Tax.
| 14 |
| (8) Personal property sold to an Illinois county fair | 15 |
| association for
use in conducting, operating, or promoting the | 16 |
| county fair.
| 17 |
| (9) Personal property sold to a not-for-profit arts
or | 18 |
| cultural organization that establishes, by proof required by | 19 |
| the Department
by
rule, that it has received an exemption under | 20 |
| Section 501(c)(3) of the
Internal Revenue Code and that is | 21 |
| organized and operated primarily for the
presentation
or | 22 |
| support of arts or cultural programming, activities, or | 23 |
| services. These
organizations include, but are not limited to, | 24 |
| music and dramatic arts
organizations such as symphony | 25 |
| orchestras and theatrical groups, arts and
cultural service | 26 |
| organizations, local arts councils, visual arts organizations,
|
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| and media arts organizations.
On and after the effective date | 2 |
| of this amendatory Act of the 92nd General
Assembly, however, | 3 |
| an entity otherwise eligible for this exemption shall not
make | 4 |
| tax-free purchases unless it has an active identification | 5 |
| number issued by
the Department.
| 6 |
| (10) Personal property sold by a corporation, society, | 7 |
| association,
foundation, institution, or organization, other | 8 |
| than a limited liability
company, that is organized and | 9 |
| operated as a not-for-profit service enterprise
for the benefit | 10 |
| of persons 65 years of age or older if the personal property
| 11 |
| was not purchased by the enterprise for the purpose of resale | 12 |
| by the
enterprise.
| 13 |
| (11) Personal property sold to a governmental body, to a | 14 |
| corporation,
society, association, foundation, or institution | 15 |
| organized and operated
exclusively for charitable, religious, | 16 |
| or educational purposes, or to a
not-for-profit corporation, | 17 |
| society, association, foundation, institution,
or organization | 18 |
| that has no compensated officers or employees and that is
| 19 |
| organized and operated primarily for the recreation of persons | 20 |
| 55 years of
age or older. A limited liability company may | 21 |
| qualify for the exemption under
this paragraph only if the | 22 |
| limited liability company is organized and operated
| 23 |
| exclusively for educational purposes. On and after July 1, | 24 |
| 1987, however, no
entity otherwise eligible for this exemption | 25 |
| shall make tax-free purchases
unless it has an active | 26 |
| identification number issued by the Department.
|
|
|
|
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|
| 1 |
| (12) Tangible personal property sold to
interstate | 2 |
| carriers
for hire for use as
rolling stock moving in interstate | 3 |
| commerce or to lessors under leases of
one year or longer | 4 |
| executed or in effect at the time of purchase by
interstate | 5 |
| carriers for hire for use as rolling stock moving in interstate
| 6 |
| commerce and equipment operated by a telecommunications | 7 |
| provider, licensed as a
common carrier by the Federal | 8 |
| Communications Commission, which is permanently
installed in | 9 |
| or affixed to aircraft moving in interstate commerce.
| 10 |
| (12-5) On and after July 1, 2003 and through June 30, 2004, | 11 |
| motor vehicles of the second division
with a gross vehicle | 12 |
| weight in excess of 8,000 pounds
that
are
subject to the | 13 |
| commercial distribution fee imposed under Section 3-815.1 of
| 14 |
| the Illinois
Vehicle Code. Beginning on July 1, 2004 and | 15 |
| through June 30, 2005, the use in this State of motor vehicles | 16 |
| of the second division: (i) with a gross vehicle weight rating | 17 |
| in excess of 8,000 pounds; (ii) that are subject to the | 18 |
| commercial distribution fee imposed under Section 3-815.1 of | 19 |
| the Illinois Vehicle Code; and (iii) that are primarily used | 20 |
| for commercial purposes. Through June 30, 2005, this
exemption | 21 |
| applies to repair and replacement parts added
after the
initial | 22 |
| purchase of such a motor vehicle if that motor vehicle is used | 23 |
| in a
manner that
would qualify for the rolling stock exemption | 24 |
| otherwise provided for in this
Act. For purposes of this | 25 |
| paragraph, "used for commercial purposes" means the | 26 |
| transportation of persons or property in furtherance of any |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| commercial or industrial enterprise whether for-hire or not.
| 2 |
| (13) Proceeds from sales to owners, lessors, or
shippers of
| 3 |
| tangible personal property that is utilized by interstate | 4 |
| carriers for
hire for use as rolling stock moving in interstate | 5 |
| commerce
and equipment operated by a telecommunications | 6 |
| provider, licensed as a
common carrier by the Federal | 7 |
| Communications Commission, which is
permanently installed in | 8 |
| or affixed to aircraft moving in interstate commerce.
| 9 |
| (14) Machinery and equipment that will be used by the | 10 |
| purchaser, or a
lessee of the purchaser, primarily in the | 11 |
| process of manufacturing or
assembling tangible personal | 12 |
| property for wholesale or retail sale or
lease, whether the | 13 |
| sale or lease is made directly by the manufacturer or by
some | 14 |
| other person, whether the materials used in the process are | 15 |
| owned by
the manufacturer or some other person, or whether the | 16 |
| sale or lease is made
apart from or as an incident to the | 17 |
| seller's engaging in the service
occupation of producing | 18 |
| machines, tools, dies, jigs, patterns, gauges, or
other similar | 19 |
| items of no commercial value on special order for a particular
| 20 |
| purchaser.
| 21 |
| (15) Proceeds of mandatory service charges separately | 22 |
| stated on
customers' bills for purchase and consumption of food | 23 |
| and beverages, to the
extent that the proceeds of the service | 24 |
| charge are in fact turned over as
tips or as a substitute for | 25 |
| tips to the employees who participate directly
in preparing, | 26 |
| serving, hosting or cleaning up the food or beverage function
|
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| with respect to which the service charge is imposed.
| 2 |
| (16) Petroleum products sold to a purchaser if the seller
| 3 |
| is prohibited by federal law from charging tax to the | 4 |
| purchaser.
| 5 |
| (17) Tangible personal property sold to a common carrier by | 6 |
| rail or
motor that
receives the physical possession of the | 7 |
| property in Illinois and that
transports the property, or | 8 |
| shares with another common carrier in the
transportation of the | 9 |
| property, out of Illinois on a standard uniform bill
of lading | 10 |
| showing the seller of the property as the shipper or consignor | 11 |
| of
the property to a destination outside Illinois, for use | 12 |
| outside Illinois.
| 13 |
| (18) 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 |
| (19) Until July 1 2003, oil field exploration, drilling, | 18 |
| and production
equipment, including
(i) rigs and parts of rigs, | 19 |
| rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 20 |
| tubular goods, including casing and
drill strings, (iii) pumps | 21 |
| and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 22 |
| individual replacement part for oil field exploration,
| 23 |
| drilling, and production equipment, and (vi) machinery and | 24 |
| equipment purchased
for lease; but
excluding motor vehicles | 25 |
| required to be registered under the Illinois
Vehicle Code.
| 26 |
| (20) Photoprocessing machinery and equipment, including |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| repair and
replacement parts, both new and used, including that | 2 |
| manufactured on
special order, certified by the purchaser to be | 3 |
| used primarily for
photoprocessing, and including | 4 |
| photoprocessing machinery and equipment
purchased for lease.
| 5 |
| (21) Until July 1, 2003, coal exploration, mining, | 6 |
| offhighway hauling,
processing,
maintenance, and reclamation | 7 |
| equipment, including
replacement parts and equipment, and | 8 |
| including
equipment purchased for lease, but excluding motor | 9 |
| vehicles required to be
registered under the Illinois Vehicle | 10 |
| Code.
| 11 |
| (22) Fuel and petroleum products sold to or used by an air | 12 |
| carrier,
certified by the carrier to be used for consumption, | 13 |
| shipment, or storage
in the conduct of its business as an air | 14 |
| common carrier, for a flight
destined for or returning from a | 15 |
| location or locations
outside the United States without regard | 16 |
| to previous or subsequent domestic
stopovers.
| 17 |
| (23) A transaction in which the purchase order is received | 18 |
| by a florist
who is located outside Illinois, but who has a | 19 |
| florist located in Illinois
deliver the property to the | 20 |
| purchaser or the purchaser's donee in Illinois.
| 21 |
| (24) Fuel consumed or used in the operation of ships, | 22 |
| barges, or vessels
that are used primarily in or for the | 23 |
| transportation of property or the
conveyance of persons for | 24 |
| hire on rivers bordering on this State if the
fuel is delivered | 25 |
| by the seller to the purchaser's barge, ship, or vessel
while | 26 |
| it is afloat upon that bordering river.
|
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| (25) Except as provided in item (25-5) of this Section, a
| 2 |
| motor vehicle sold in this State to a nonresident even though | 3 |
| the
motor vehicle is delivered to the nonresident in this | 4 |
| State, if the motor
vehicle is not to be titled in this State, | 5 |
| and if a drive-away permit
is issued to the motor vehicle as | 6 |
| provided in Section 3-603 of the Illinois
Vehicle Code or if | 7 |
| the nonresident purchaser has vehicle registration
plates to | 8 |
| transfer to the motor vehicle upon returning to his or her home
| 9 |
| state. The issuance of the drive-away permit or having
the
| 10 |
| out-of-state registration plates to be transferred is prima | 11 |
| facie evidence
that the motor vehicle will not be titled in | 12 |
| this State.
| 13 |
| (25-5) The exemption under item (25) does not apply if the | 14 |
| state in which the motor vehicle will be titled does not allow | 15 |
| a reciprocal exemption for a motor vehicle sold and delivered | 16 |
| in that state to an Illinois resident but titled in Illinois. | 17 |
| The tax collected under this Act on the sale of a motor vehicle | 18 |
| in this State to a resident of another state that does not | 19 |
| allow a reciprocal exemption shall be imposed at a rate equal | 20 |
| to the state's rate of tax on taxable property in the state in | 21 |
| which the purchaser is a resident, except that the tax shall | 22 |
| not exceed the tax that would otherwise be imposed under this | 23 |
| Act. At the time of the sale, the purchaser shall execute a | 24 |
| statement, signed under penalty of perjury, of his or her | 25 |
| intent to title the vehicle in the state in which the purchaser | 26 |
| is a resident within 30 days after the sale and of the fact of |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| the payment to the State of Illinois of tax in an amount | 2 |
| equivalent to the state's rate of tax on taxable property in | 3 |
| his or her state of residence and shall submit the statement to | 4 |
| the appropriate tax collection agency in his or her state of | 5 |
| residence. In addition, the retailer must retain a signed copy | 6 |
| of the statement in his or her records. Nothing in this item | 7 |
| shall be construed to require the removal of the vehicle from | 8 |
| this state following the filing of an intent to title the | 9 |
| vehicle in the purchaser's state of residence if the purchaser | 10 |
| titles the vehicle in his or her state of residence within 30 | 11 |
| days after the date of sale. The tax collected under this Act | 12 |
| in accordance with this item (25-5) shall be proportionately | 13 |
| distributed as if the tax were collected at the 6.25% general | 14 |
| rate imposed under this Act.
| 15 |
| (25-7) Beginning on July 1, 2007, no tax is imposed under | 16 |
| this Act on the sale of an aircraft, as defined in Section 3 of | 17 |
| the Illinois Aeronautics Act, if all of the following | 18 |
| conditions are met: | 19 |
| (1) the aircraft leaves this State within 15 days after | 20 |
| the later of either the issuance of the final billing for | 21 |
| the sale of the aircraft, or the authorized approval for | 22 |
| return to service, completion of the maintenance record | 23 |
| entry, and completion of the test flight and ground test | 24 |
| for inspection, as required by 14 C.F.R. 91.407; | 25 |
| (2) the aircraft is not based or registered in this | 26 |
| State after the sale of the aircraft; and |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| (3) the seller retains in his or her books and records | 2 |
| and provides to the Department a signed and dated | 3 |
| certification from the purchaser, on a form prescribed by | 4 |
| the Department, certifying that the requirements of this | 5 |
| item (25-7) are met. The certificate must also include the | 6 |
| name and address of the purchaser, the address of the | 7 |
| location where the aircraft is to be titled or registered, | 8 |
| the address of the primary physical location of the | 9 |
| aircraft, and other information that the Department may | 10 |
| reasonably require. | 11 |
| For purposes of this item (25-7): | 12 |
| "Based in this State" means hangared, stored, or otherwise | 13 |
| used, excluding post-sale customizations as defined in this | 14 |
| Section, for 10 or more days in each 12-month period | 15 |
| immediately following the date of the sale of the aircraft. | 16 |
| "Registered in this State" means an aircraft registered | 17 |
| with the Department of Transportation, Aeronautics Division, | 18 |
| or titled or registered with the Federal Aviation | 19 |
| Administration to an address located in this State. | 20 |
| This paragraph (25-7) is exempt from the provisions
of
| 21 |
| Section 2-70.
| 22 |
| (26) Semen used for artificial insemination of livestock | 23 |
| for direct
agricultural production.
| 24 |
| (27) Horses, or interests in horses, registered with and | 25 |
| meeting the
requirements of any of the
Arabian Horse Club | 26 |
| Registry of America, Appaloosa Horse Club, American Quarter
|
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| Horse Association, United States
Trotting Association, or | 2 |
| Jockey Club, as appropriate, used for
purposes of breeding or | 3 |
| racing for prizes. This item (27) is exempt from the provisions | 4 |
| of Section 2-70, and the exemption provided for under this item | 5 |
| (27) applies for all periods beginning May 30, 1995, but no | 6 |
| claim for credit or refund is allowed on or after January 1, | 7 |
| 2008 (the effective date of Public Act 95-88)
for such taxes | 8 |
| paid during the period beginning May 30, 2000 and ending on | 9 |
| January 1, 2008 (the effective date of Public Act 95-88)
.
| 10 |
| (28) Computers and communications equipment utilized for | 11 |
| any
hospital
purpose
and equipment used in the diagnosis,
| 12 |
| analysis, or treatment of hospital patients sold to a lessor | 13 |
| who leases the
equipment, under a lease of one year or longer | 14 |
| executed or in effect at the
time of the purchase, to a
| 15 |
| hospital
that has been issued an active tax exemption | 16 |
| identification number by the
Department under Section 1g of | 17 |
| this Act.
| 18 |
| (29) Personal property sold to a lessor who leases the
| 19 |
| property, under a
lease of one year or longer executed or in | 20 |
| effect at the time of the purchase,
to a governmental body
that | 21 |
| has been issued an active tax exemption identification number | 22 |
| by the
Department under Section 1g of this Act.
| 23 |
| (30) Beginning with taxable years ending on or after | 24 |
| December
31, 1995
and
ending with taxable years ending on or | 25 |
| before December 31, 2004,
personal property that is
donated for | 26 |
| disaster relief to be used in a State or federally declared
|
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| disaster area in Illinois or bordering Illinois by a | 2 |
| manufacturer or retailer
that is registered in this State to a | 3 |
| corporation, society, association,
foundation, or institution | 4 |
| that has been issued a sales tax exemption
identification | 5 |
| number by the Department that assists victims of the disaster
| 6 |
| who reside within the declared disaster area.
| 7 |
| (31) Beginning with taxable years ending on or after | 8 |
| December
31, 1995 and
ending with taxable years ending on or | 9 |
| before December 31, 2004, personal
property that is used in the | 10 |
| performance of infrastructure repairs in this
State, including | 11 |
| but not limited to municipal roads and streets, access roads,
| 12 |
| bridges, sidewalks, waste disposal systems, water and sewer | 13 |
| line extensions,
water distribution and purification | 14 |
| facilities, storm water drainage and
retention facilities, and | 15 |
| sewage treatment facilities, resulting from a State
or | 16 |
| federally declared disaster in Illinois or bordering Illinois | 17 |
| when such
repairs are initiated on facilities located in the | 18 |
| declared disaster area
within 6 months after the disaster.
| 19 |
| (32) Beginning July 1, 1999, game or game birds sold at a | 20 |
| "game breeding
and
hunting preserve area" or an "exotic game | 21 |
| hunting area" as those terms are used
in the
Wildlife Code or | 22 |
| at a hunting enclosure approved through rules adopted by the
| 23 |
| Department of Natural Resources. This paragraph is exempt from | 24 |
| the provisions
of
Section 2-70.
| 25 |
| (33) A motor vehicle, as that term is defined in Section | 26 |
| 1-146
of the
Illinois Vehicle Code, that is donated to a |
|
|
|
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LRB095 19179 BDD 45420 b |
|
| 1 |
| corporation, limited liability
company, society, association, | 2 |
| foundation, or institution that is determined by
the Department | 3 |
| to be organized and operated exclusively for educational
| 4 |
| purposes. For purposes of this exemption, "a corporation, | 5 |
| limited liability
company, society, association, foundation, | 6 |
| or institution organized and
operated
exclusively for | 7 |
| educational purposes" means all tax-supported public schools,
| 8 |
| private schools that offer systematic instruction in useful | 9 |
| branches of
learning by methods common to public schools and | 10 |
| that compare favorably in
their scope and intensity with the | 11 |
| course of study presented in tax-supported
schools, and | 12 |
| vocational or technical schools or institutes organized and
| 13 |
| operated exclusively to provide a course of study of not less | 14 |
| than 6 weeks
duration and designed to prepare individuals to | 15 |
| follow a trade or to pursue a
manual, technical, mechanical, | 16 |
| industrial, business, or commercial
occupation.
| 17 |
| (34) Beginning January 1, 2000, personal property, | 18 |
| including food, purchased
through fundraising events for the | 19 |
| benefit of a public or private elementary or
secondary school, | 20 |
| a group of those schools, or one or more school districts if
| 21 |
| the events are sponsored by an entity recognized by the school | 22 |
| district that
consists primarily of volunteers and includes | 23 |
| parents and teachers of the
school children. This paragraph | 24 |
| does not apply to fundraising events (i) for
the benefit of | 25 |
| private home instruction or (ii) for which the fundraising
| 26 |
| entity purchases the personal property sold at the events from |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| another
individual or entity that sold the property for the | 2 |
| purpose of resale by the
fundraising entity and that profits | 3 |
| from the sale to the fundraising entity.
This paragraph is | 4 |
| exempt from the provisions of Section 2-70.
| 5 |
| (35) Beginning January 1, 2000 and through December 31, | 6 |
| 2001, new or used
automatic vending machines that prepare and | 7 |
| serve hot food and beverages,
including coffee, soup, and other | 8 |
| items, and replacement parts for these
machines. Beginning | 9 |
| January 1, 2002 and through June 30, 2003, machines
and parts | 10 |
| for machines used in
commercial, coin-operated amusement and | 11 |
| vending business if a use or occupation
tax is paid on the | 12 |
| gross receipts derived from the use of the commercial,
| 13 |
| coin-operated amusement and vending machines. This paragraph | 14 |
| is exempt from
the provisions of Section 2-70.
| 15 |
| (35-5) Beginning August 23, 2001 and through June 30, 2011, | 16 |
| food for human consumption that is to be consumed off
the | 17 |
| premises where it is sold (other than alcoholic beverages, soft | 18 |
| drinks,
and food that has been prepared for immediate | 19 |
| consumption) and prescription
and nonprescription medicines, | 20 |
| drugs, medical appliances, and insulin, urine
testing | 21 |
| materials, syringes, and needles used by diabetics, for human | 22 |
| use, when
purchased for use by a person receiving medical | 23 |
| assistance under Article 5 of
the Illinois Public Aid Code who | 24 |
| resides in a licensed long-term care facility,
as defined in | 25 |
| the Nursing Home Care Act.
| 26 |
| (36) Beginning August 2, 2001, computers and |
|
|
|
SB2570 Engrossed |
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LRB095 19179 BDD 45420 b |
|
| 1 |
| communications equipment
utilized for any hospital purpose and | 2 |
| equipment used in the diagnosis,
analysis, or treatment of | 3 |
| hospital patients sold to a lessor who leases the
equipment, | 4 |
| under a lease of one year or longer executed or in effect at | 5 |
| the
time of the purchase, to a hospital that has been issued an | 6 |
| active tax
exemption identification number by the Department | 7 |
| under Section 1g of this Act.
This paragraph is exempt from the | 8 |
| provisions of Section 2-70.
| 9 |
| (37) Beginning August 2, 2001, personal property sold to a | 10 |
| lessor who
leases the property, under a lease of one year or | 11 |
| longer executed or in effect
at the time of the purchase, to a | 12 |
| governmental body that has been issued an
active tax exemption | 13 |
| identification number by the Department under Section 1g
of | 14 |
| this Act. This paragraph is exempt from the provisions of | 15 |
| Section 2-70.
| 16 |
| (38) Beginning on January 1, 2002 and through June 30, | 17 |
| 2011, tangible personal property purchased
from an Illinois | 18 |
| retailer by a taxpayer engaged in centralized purchasing
| 19 |
| activities in Illinois who will, upon receipt of the property | 20 |
| in Illinois,
temporarily store the property in Illinois (i) for | 21 |
| the purpose of subsequently
transporting it outside this State | 22 |
| for use or consumption thereafter solely
outside this State or | 23 |
| (ii) for the purpose of being processed, fabricated, or
| 24 |
| manufactured into, attached to, or incorporated into other | 25 |
| tangible personal
property to be transported outside this State | 26 |
| and thereafter used or consumed
solely outside this State. The |
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| 1 |
| Director of Revenue shall, pursuant to rules
adopted in | 2 |
| accordance with the Illinois Administrative Procedure Act, | 3 |
| issue a
permit to any taxpayer in good standing with the | 4 |
| Department who is eligible for
the exemption under this | 5 |
| paragraph (38). The permit issued under
this paragraph (38) | 6 |
| shall authorize the holder, to the extent and
in the manner | 7 |
| specified in the rules adopted under this Act, to purchase
| 8 |
| tangible personal property from a retailer exempt from the | 9 |
| taxes imposed by
this Act. Taxpayers shall maintain all | 10 |
| necessary books and records to
substantiate the use and | 11 |
| consumption of all such tangible personal property
outside of | 12 |
| the State of Illinois.
| 13 |
| (39) Beginning January 1, 2008, tangible personal property | 14 |
| used in the construction or maintenance of a community water | 15 |
| supply, as defined under Section 3.145 of the Environmental | 16 |
| Protection Act, that is operated by a not-for-profit | 17 |
| corporation that holds a valid water supply permit issued under | 18 |
| Title IV of the Environmental Protection Act. This paragraph is | 19 |
| exempt from the provisions of Section 2-70.
| 20 |
| (40) Beginning on July 1, 2008, that part of the selling | 21 |
| price of motor fuel or
gasohol that exceeds $2.50 per gallon. | 22 |
| This paragraph is exempt from the provisions of Section 2-70. | 23 |
| (Source: P.A. 94-1002, eff. 7-3-06; 95-88, eff. 1-1-08; 95-233, | 24 |
| eff. 8-16-07; 95-304, eff. 8-20-07; 95-538, eff. 1-1-08; | 25 |
| 95-707, eff. 1-11-08.)
| 26 |
| Section 99. Effective date. This Act takes effect upon |
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SB2570 Engrossed |
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| becoming law.
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