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| [ Engrossed ] | [ Senate Amendment 001 ] |
90_SB0370
35 ILCS 120/2-5 from Ch. 120, par. 441-5
Amends the Retailers' Occupation Tax Act to exempt from
taxation under the Act tangible personal property sold to a
common carrier by motor that receives physical possession of
the property in Illinois and transports it out of Illinois.
Effective immediately.
LRB9002614KDks
LRB9002614KDks
1 AN ACT to amend the Retailers' Occupation Tax Act by
2 changing Section 2-5.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Retailers' Occupation Tax Act is amended
6 by changing Section 2-5 as follows:
7 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
8 Sec. 2-5. Exemptions. Gross receipts from proceeds from
9 the sale of the following tangible personal property are
10 exempt from the tax imposed by this Act:
11 (1) Farm chemicals.
12 (2) Farm machinery and equipment, both new and used,
13 including that manufactured on special order, certified by
14 the purchaser to be used primarily for production agriculture
15 or State or federal agricultural programs, including
16 individual replacement parts for the machinery and equipment,
17 and including machinery and equipment purchased for lease,
18 but excluding motor vehicles required to be registered under
19 the Illinois Vehicle Code.
20 (3) Distillation machinery and equipment, sold as a unit
21 or kit, assembled or installed by the retailer, certified by
22 the user to be used only for the production of ethyl alcohol
23 that will be used for consumption as motor fuel or as a
24 component of motor fuel for the personal use of the user, and
25 not subject to sale or resale.
26 (4) Graphic arts machinery and equipment, including
27 repair and replacement parts, both new and used, and
28 including that manufactured on special order or purchased for
29 lease, certified by the purchaser to be used primarily for
30 graphic arts production.
31 (5) A motor vehicle of the first division, a motor
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1 vehicle of the second division that is a self-contained motor
2 vehicle designed or permanently converted to provide living
3 quarters for recreational, camping, or travel use, with
4 direct walk through access to the living quarters from the
5 driver's seat, or a motor vehicle of the second division that
6 is of the van configuration designed for the transportation
7 of not less than 7 nor more than 16 passengers, as defined in
8 Section 1-146 of the Illinois Vehicle Code, that is used for
9 automobile renting, as defined in the Automobile Renting
10 Occupation and Use Tax Act.
11 (6) Personal property sold by a teacher-sponsored
12 student organization affiliated with an elementary or
13 secondary school located in Illinois.
14 (7) Proceeds of that portion of the selling price of a
15 passenger car the sale of which is subject to the Replacement
16 Vehicle Tax.
17 (8) Personal property sold to an Illinois county fair
18 association for use in conducting, operating, or promoting
19 the county fair.
20 (9) Personal property sold to a not-for-profit music or
21 dramatic arts organization that establishes, by proof
22 required by the Department by rule, that it has received an
23 exemption under Section 501(c) (3) of the Internal Revenue
24 Code and that is organized and operated for the presentation
25 of live public performances of musical or theatrical works on
26 a regular basis.
27 (10) Personal property sold by a corporation, society,
28 association, foundation, institution, or organization, other
29 than a limited liability company, that is organized and
30 operated as a not-for-profit service enterprise for the
31 benefit of persons 65 years of age or older if the personal
32 property was not purchased by the enterprise for the purpose
33 of resale by the enterprise.
34 (11) Personal property sold to a governmental body, to a
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1 corporation, society, association, foundation, or institution
2 organized and operated exclusively for charitable, religious,
3 or educational purposes, or to a not-for-profit corporation,
4 society, association, foundation, institution, or
5 organization that has no compensated officers or employees
6 and that is organized and operated primarily for the
7 recreation of persons 55 years of age or older. A limited
8 liability company may qualify for the exemption under this
9 paragraph only if the limited liability company is organized
10 and operated exclusively for educational purposes. On and
11 after July 1, 1987, however, no entity otherwise eligible for
12 this exemption shall make tax-free purchases unless it has an
13 active identification number issued by the Department.
14 (12) Personal property sold to interstate carriers for
15 hire for use as rolling stock moving in interstate commerce
16 or to lessors under leases of one year or longer executed or
17 in effect at the time of purchase by interstate carriers for
18 hire for use as rolling stock moving in interstate commerce
19 and equipment operated by a telecommunications provider,
20 licensed as a common carrier by the Federal Communications
21 Commission, which is permanently installed in or affixed to
22 aircraft moving in interstate commerce.
23 (13) Proceeds from sales to owners, lessors, or shippers
24 of tangible personal property that is utilized by interstate
25 carriers for hire for use as rolling stock moving in
26 interstate commerce and equipment operated by a
27 telecommunications provider, licensed as a common carrier by
28 the Federal Communications Commission, which is permanently
29 installed in or affixed to aircraft moving in interstate
30 commerce.
31 (14) Machinery and equipment that will be used by the
32 purchaser, or a lessee of the purchaser, primarily in the
33 process of manufacturing or assembling tangible personal
34 property for wholesale or retail sale or lease, whether the
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1 sale or lease is made directly by the manufacturer or by some
2 other person, whether the materials used in the process are
3 owned by the manufacturer or some other person, or whether
4 the sale or lease is made apart from or as an incident to the
5 seller's engaging in the service occupation of producing
6 machines, tools, dies, jigs, patterns, gauges, or other
7 similar items of no commercial value on special order for a
8 particular purchaser.
9 (15) Proceeds of mandatory service charges separately
10 stated on customers' bills for purchase and consumption of
11 food and beverages, to the extent that the proceeds of the
12 service charge are in fact turned over as tips or as a
13 substitute for tips to the employees who participate directly
14 in preparing, serving, hosting or cleaning up the food or
15 beverage function with respect to which the service charge is
16 imposed.
17 (16) Petroleum products sold to a purchaser if the
18 seller is prohibited by federal law from charging tax to the
19 purchaser.
20 (17) Tangible personal property sold to a common carrier
21 by rail or motor that receives the physical possession of the
22 property in Illinois and that transports the property, or
23 shares with another common carrier in the transportation of
24 the property, out of Illinois on a standard uniform bill of
25 lading showing the seller of the property as the shipper or
26 consignor of the property to a destination outside Illinois,
27 for use outside Illinois.
28 (18) Legal tender, currency, medallions, or gold or
29 silver coinage issued by the State of Illinois, the
30 government of the United States of America, or the government
31 of any foreign country, and bullion.
32 (19) Oil field exploration, drilling, and production
33 equipment, including (i) rigs and parts of rigs, rotary rigs,
34 cable tool rigs, and workover rigs, (ii) pipe and tubular
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1 goods, including casing and drill strings, (iii) pumps and
2 pump-jack units, (iv) storage tanks and flow lines, (v) any
3 individual replacement part for oil field exploration,
4 drilling, and production equipment, and (vi) machinery and
5 equipment purchased for lease; but excluding motor vehicles
6 required to be registered under the Illinois Vehicle Code.
7 (20) Photoprocessing machinery and equipment, including
8 repair and replacement parts, both new and used, including
9 that manufactured on special order, certified by the
10 purchaser to be used primarily for photoprocessing, and
11 including photoprocessing machinery and equipment purchased
12 for lease.
13 (21) Coal exploration, mining, offhighway hauling,
14 processing, maintenance, and reclamation equipment, including
15 replacement parts and equipment, and including equipment
16 purchased for lease, but excluding motor vehicles required to
17 be registered under the Illinois Vehicle Code.
18 (22) Fuel and petroleum products sold to or used by an
19 air carrier, certified by the carrier to be used for
20 consumption, shipment, or storage in the conduct of its
21 business as an air common carrier, for a flight destined for
22 or returning from a location or locations outside the United
23 States without regard to previous or subsequent domestic
24 stopovers.
25 (23) A transaction in which the purchase order is
26 received by a florist who is located outside Illinois, but
27 who has a florist located in Illinois deliver the property to
28 the purchaser or the purchaser's donee in Illinois.
29 (24) Fuel consumed or used in the operation of ships,
30 barges, or vessels that are used primarily in or for the
31 transportation of property or the conveyance of persons for
32 hire on rivers bordering on this State if the fuel is
33 delivered by the seller to the purchaser's barge, ship, or
34 vessel while it is afloat upon that bordering river.
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1 (25) A motor vehicle sold in this State to a nonresident
2 even though the motor vehicle is delivered to the nonresident
3 in this State, if the motor vehicle is not to be titled in
4 this State, and if a driveaway decal permit is issued to the
5 motor vehicle as provided in Section 3-603 of the Illinois
6 Vehicle Code or if the nonresident purchaser has vehicle
7 registration plates to transfer to the motor vehicle upon
8 returning to his or her home state. The issuance of the
9 driveaway decal permit or having the out-of-state
10 registration plates to be transferred is prima facie evidence
11 that the motor vehicle will not be titled in this State.
12 (26) Semen used for artificial insemination of livestock
13 for direct agricultural production.
14 (27) Horses, or interests in horses, registered with and
15 meeting the requirements of any of the Arabian Horse Club
16 Registry of America, Appaloosa Horse Club, American Quarter
17 Horse Association, United States Trotting Association, or
18 Jockey Club, as appropriate, used for purposes of breeding or
19 racing for prizes.
20 (28) Computers and communications equipment utilized
21 for any hospital purpose and equipment used in the diagnosis,
22 analysis, or treatment of hospital patients sold to a lessor
23 who leases the equipment, under a lease of one year or longer
24 executed or in effect at the time of the purchase, to a
25 hospital that has been issued an active tax exemption
26 identification number by the Department under Section 1g of
27 this Act.
28 (29) Personal property sold to a lessor who leases the
29 property, under a lease of one year or longer executed or in
30 effect at the time of the purchase, to a governmental body
31 that has been issued an active tax exemption identification
32 number by the Department under Section 1g of this Act.
33 (30) Beginning with taxable years ending on or after
34 December 31, 1995 and ending with taxable years ending on or
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1 before December 31, 2004, personal property that is donated
2 for disaster relief to be used in a State or federally
3 declared disaster area in Illinois or bordering Illinois by a
4 manufacturer or retailer that is registered in this State to
5 a corporation, society, association, foundation, or
6 institution that has been issued a sales tax exemption
7 identification number by the Department that assists victims
8 of the disaster who reside within the declared disaster area.
9 (31) Beginning with taxable years ending on or after
10 December 31, 1995 and ending with taxable years ending on or
11 before December 31, 2004, personal property that is used in
12 the performance of infrastructure repairs in this State,
13 including but not limited to municipal roads and streets,
14 access roads, bridges, sidewalks, waste disposal systems,
15 water and sewer line extensions, water distribution and
16 purification facilities, storm water drainage and retention
17 facilities, and sewage treatment facilities, resulting from a
18 State or federally declared disaster in Illinois or bordering
19 Illinois when such repairs are initiated on facilities
20 located in the declared disaster area within 6 months after
21 the disaster.
22 (Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
23 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
24 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
25 eff. 8-9-96; revised 8-21-96.)
26 Section 99. Effective date. This Act takes effect upon
27 becoming law.