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92_SB0730eng SB730 Engrossed LRB9204809SMdv 1 AN ACT in relation to taxes. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Use Tax Act is amended by changing 5 Section 3-55 as follows: 6 (35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55) 7 Sec. 3-55. Multistate exemption. The tax imposed by this 8 Act does not apply to the use of tangible personal property 9 in this State under the following circumstances: 10 (a) The use, in this State, of tangible personal 11 property acquired outside this State by a nonresident 12 individual and brought into this State by the individual for 13 his or her own use while temporarily within this State or 14 while passing through this State. 15 (b) The use, in this State, of tangible personal 16 property by an interstate carrier for hire as rolling stock 17 moving in interstate commerce or by lessors under a lease of 18 one year or longer executed or in effect at the time of 19 purchase of tangible personal property by interstate carriers 20 for-hire for use as rolling stock moving in interstate 21 commerce as long as so used by the interstate carriers 22 for-hire, and equipment operated by a telecommunications 23 provider, licensed as a common carrier by the Federal 24 Communications Commission, which is permanently installed in 25 or affixed to aircraft moving in interstate commerce. 26 (c) The use, in this State, by owners, lessors, or 27 shippers of tangible personal property that is utilized by 28 interstate carriers for hire for use as rolling stock moving 29 in interstate commerce as long as so used by the interstate 30 carriers for hire, and equipment operated by a 31 telecommunications provider, licensed as a common carrier by SB730 Engrossed -2- LRB9204809SMdv 1 the Federal Communications Commission, which is permanently 2 installed in or affixed to aircraft moving in interstate 3 commerce. 4 (d) The use, in this State, of tangible personal 5 property that is acquired outside this State and caused to be 6 brought into this State by a person who has already paid a 7 tax in another State in respect to the sale, purchase, or use 8 of that property, to the extent of the amount of the tax 9 properly due and paid in the other State. 10 (e) The temporary storage, in this State, of tangible 11 personal property that is acquired outside this State and 12 that, after being brought into this State and stored here 13 temporarily, is used solely outside this State or is 14 physically attached to or incorporated into other tangible 15 personal property that is used solely outside this State, or 16 is altered by converting, fabricating, manufacturing, 17 printing, processing, or shaping, and, as altered, is used 18 solely outside this State. 19 (f) The temporary storage in this State of building 20 materials and fixtures that are acquired either in this State 21 or outside this State by an Illinois registered combination 22 retailer and construction contractor, and that the purchaser 23 thereafter uses outside this State by incorporating that 24 property into real estate located outside this State. 25 (g) The use or purchase of tangible personal property by 26 a common carrier by rail or motor that receives the physical 27 possession of the property in Illinois, and that transports 28 the property, or shares with another common carrier in the 29 transportation of the property, out of Illinois on a standard 30 uniform bill of lading showing the seller of the property as 31 the shipper or consignor of the property to a destination 32 outside Illinois, for use outside Illinois. 33 (h) The use, in this State, of a motor vehicle that was 34 sold in this State to a nonresident, even though the motor SB730 Engrossed -3- LRB9204809SMdv 1 vehicle is delivered to the nonresident in this State, if the 2 motor vehicle is not to be titled in this State, and if a 3 driveaway decal permit is issued to the motor vehicle as 4 provided in Section 3-603 of the Illinois Vehicle Code or if 5 the nonresident purchaser has vehicle registration plates to 6 transfer to the motor vehicle upon returning to his or her 7 home state. The issuance of the driveaway decal permit or 8 having the out-of-state registration plates to be transferred 9 shall be prima facie evidence that the motor vehicle will not 10 be titled in this State. 11 (i) Beginning July 1, 1999, the use, in this State, of 12 fuel acquired outside this State and brought into this State 13 in the fuel supply tanks of locomotives engaged in freight 14 hauling and passenger service for interstate commerce. This 15 subsection is exempt from the provisions of Section 3-90. 16 (j) Beginning on January 1, 2002, the use of tangible 17 personal property purchased from an Illinois retailer by a 18 taxpayer engaged in centralized purchasing activities in 19 Illinois who will, upon receipt of the property in Illinois, 20 temporarily store the property in Illinois (i) for the 21 purpose of subsequently transporting it outside this State 22 for use or consumption thereafter solely outside this State 23 or (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 26 State and thereafter used or consumed solely outside this 27 State. The Director of Revenue shall, pursuant to rules 28 adopted in accordance with the Illinois Administrative 29 Procedure Act, issue a permit to any taxpayer in good 30 standing with the Department who is eligible for the 31 exemption under this subsection (j). The permit issued under 32 this subsection (j) shall authorize the holder, to the extent 33 and in the manner specified in the rules adopted under this 34 Act, to purchase tangible personal property from a retailer SB730 Engrossed -4- LRB9204809SMdv 1 exempt from the taxes imposed by this Act. Taxpayers shall 2 maintain all necessary books and records to substantiate the 3 use and consumption of all such tangible personal property 4 outside of the State of Illinois. 5 (Source: P.A. 90-519, eff. 6-1-98; 90-552, eff. 12-12-97; 6 91-51, eff. 6-30-99; 91-313, eff. 7-29-99; 91-587, eff. 7 8-14-99; revised 9-29-99.) 8 Section 10. The Service Use Tax Act is amended by 9 changing Section 3-45 as follows: 10 (35 ILCS 110/3-45) (from Ch. 120, par. 439.33-45) 11 Sec. 3-45. Multistate exemption. The tax imposed by this 12 Act does not apply to the use of tangible personal property 13 in this State under the following circumstances: 14 (a) The use, in this State, of property acquired outside 15 this State by a nonresident individual and brought into this 16 State by the individual for his or her own use while 17 temporarily within this State or while passing through this 18 State. 19 (b) The use, in this State, of property that is acquired 20 outside this State and that is moved into this State for use 21 as rolling stock moving in interstate commerce. 22 (c) The use, in this State, of property that is acquired 23 outside this State and caused to be brought into this State 24 by a person who has already paid a tax in another state in 25 respect to the sale, purchase, or use of that property, to 26 the extent of the amount of the tax properly due and paid in 27 the other state. 28 (d) The temporary storage, in this State, of property 29 that is acquired outside this State and that after being 30 brought into this State and stored here temporarily, is used 31 solely outside this State or is physically attached to or 32 incorporated into other property that is used solely outside SB730 Engrossed -5- LRB9204809SMdv 1 this State, or is altered by converting, fabricating, 2 manufacturing, printing, processing, or shaping, and, as 3 altered, is used solely outside this State. 4 (e) Beginning July 1, 1999, the use, in this State, of 5 fuel acquired outside this State and brought into this State 6 in the fuel supply tanks of locomotives engaged in freight 7 hauling and passenger service for interstate commerce. This 8 subsection is exempt from the provisions of Section 3-75. 9 (f) Beginning on January 1, 2002, the use of tangible 10 personal property purchased from an Illinois retailer by a 11 taxpayer engaged in centralized purchasing activities in 12 Illinois who will, upon receipt of the property in Illinois, 13 temporarily store the property in Illinois (i) for the 14 purpose of subsequently transporting it outside this State 15 for use or consumption thereafter solely outside this State 16 or (ii) for the purpose of being processed, fabricated, or 17 manufactured into, attached to, or incorporated into other 18 tangible personal property to be transported outside this 19 State and thereafter used or consumed solely outside this 20 State. The Director of Revenue shall, pursuant to rules 21 adopted in accordance with the Illinois Administrative 22 Procedure Act, issue a permit to any taxpayer in good 23 standing with the Department who is eligible for the 24 exemption under this subsection (f). The permit issued under 25 this subsection (f) shall authorize the holder, to the extent 26 and in the manner specified in the rules adopted under this 27 Act, to purchase tangible personal property from a retailer 28 exempt from the taxes imposed by this Act. Taxpayers shall 29 maintain all necessary books and records to substantiate the 30 use and consumption of all such tangible personal property 31 outside of the State of Illinois. 32 (Source: P.A. 91-51, eff. 6-30-99; 91-313, eff. 7-29-99; 33 91-587, eff. 8-14-99; revised 9-29-99.) SB730 Engrossed -6- LRB9204809SMdv 1 Section 15. The Service Occupation Tax Act is amended by 2 changing Section 3-5 as follows: 3 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5) 4 Sec. 3-5. Exemptions. The following tangible personal 5 property is exempt from the tax imposed by this Act: 6 (1) 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 10 benefit of persons 65 years of age or older if the personal 11 property was not purchased by the enterprise for the purpose 12 of resale by the enterprise. 13 (2) Personal property purchased by a not-for-profit 14 Illinois county fair association for use in conducting, 15 operating, or promoting the county fair. 16 (3) Personal property purchased by any not-for-profit 17 arts or cultural organization that establishes, by proof 18 required by the Department by rule, that it has received an 19 exemption under Section 501(c)(3) of the Internal Revenue 20 Code and that is organized and operated for the presentation 21 or support of arts or cultural programming, activities, or 22 services. These organizations include, but are not limited 23 to, music and dramatic arts organizations such as symphony 24 orchestras and theatrical groups, arts and cultural service 25 organizations, local arts councils, visual arts 26 organizations, and media arts organizations. 27 (4) Legal tender, currency, medallions, or gold or 28 silver coinage issued by the State of Illinois, the 29 government of the United States of America, or the government 30 of any foreign country, and bullion. 31 (5) Graphic arts machinery and equipment, including 32 repair and replacement parts, both new and used, and 33 including that manufactured on special order or purchased for SB730 Engrossed -7- LRB9204809SMdv 1 lease, certified by the purchaser to be used primarily for 2 graphic arts production. 3 (6) Personal property sold by a teacher-sponsored 4 student organization affiliated with an elementary or 5 secondary school located in Illinois. 6 (7) Farm machinery and equipment, both new and used, 7 including that manufactured on special order, certified by 8 the purchaser to be used primarily for production agriculture 9 or State or federal agricultural programs, including 10 individual replacement parts for the machinery and equipment, 11 including machinery and equipment purchased for lease, and 12 including implements of husbandry defined in Section 1-130 of 13 the Illinois Vehicle Code, farm machinery and agricultural 14 chemical and fertilizer spreaders, and nurse wagons required 15 to be registered under Section 3-809 of the Illinois Vehicle 16 Code, but excluding other motor vehicles required to be 17 registered under the Illinois Vehicle Code. Horticultural 18 polyhouses or hoop houses used for propagating, growing, or 19 overwintering plants shall be considered farm machinery and 20 equipment under this item (7). Agricultural chemical tender 21 tanks and dry boxes shall include units sold separately from 22 a motor vehicle required to be licensed and units sold 23 mounted on a motor vehicle required to be licensed if the 24 selling price of the tender is separately stated. 25 Farm machinery and equipment shall include precision 26 farming equipment that is installed or purchased to be 27 installed on farm machinery and equipment including, but not 28 limited to, tractors, harvesters, sprayers, planters, 29 seeders, or spreaders. Precision farming equipment includes, 30 but is not limited to, soil testing sensors, computers, 31 monitors, software, global positioning and mapping systems, 32 and other such equipment. 33 Farm machinery and equipment also includes computers, 34 sensors, software, and related equipment used primarily in SB730 Engrossed -8- LRB9204809SMdv 1 the computer-assisted operation of production agriculture 2 facilities, equipment, and activities such as, but not 3 limited to, the collection, monitoring, and correlation of 4 animal and crop data for the purpose of formulating animal 5 diets and agricultural chemicals. This item (7) is exempt 6 from the provisions of Section 3-55. 7 (8) Fuel and petroleum products sold to or used by an 8 air common carrier, certified by the carrier to be used for 9 consumption, shipment, or storage in the conduct of its 10 business as an air common carrier, for a flight destined for 11 or returning from a location or locations outside the United 12 States without regard to previous or subsequent domestic 13 stopovers. 14 (9) Proceeds of mandatory service charges separately 15 stated on customers' bills for the purchase and consumption 16 of food and beverages, to the extent that the proceeds of the 17 service charge are in fact turned over as tips or as a 18 substitute for tips to the employees who participate directly 19 in preparing, serving, hosting or cleaning up the food or 20 beverage function with respect to which the service charge is 21 imposed. 22 (10) Oil field exploration, drilling, and production 23 equipment, including (i) rigs and parts of rigs, rotary rigs, 24 cable tool rigs, and workover rigs, (ii) pipe and tubular 25 goods, including casing and drill strings, (iii) pumps and 26 pump-jack units, (iv) storage tanks and flow lines, (v) any 27 individual replacement part for oil field exploration, 28 drilling, and production equipment, and (vi) machinery and 29 equipment purchased for lease; but excluding motor vehicles 30 required to be registered under the Illinois Vehicle Code. 31 (11) Photoprocessing machinery and equipment, including 32 repair and replacement parts, both new and used, including 33 that manufactured on special order, certified by the 34 purchaser to be used primarily for photoprocessing, and SB730 Engrossed -9- LRB9204809SMdv 1 including photoprocessing machinery and equipment purchased 2 for lease. 3 (12) Coal exploration, mining, offhighway hauling, 4 processing, maintenance, and reclamation equipment, including 5 replacement parts and equipment, and including equipment 6 purchased for lease, but excluding motor vehicles required to 7 be registered under the Illinois Vehicle Code. 8 (13) Food for human consumption that is to be consumed 9 off the premises where it is sold (other than alcoholic 10 beverages, soft drinks and food that has been prepared for 11 immediate consumption) and prescription and non-prescription 12 medicines, drugs, medical appliances, and insulin, urine 13 testing materials, syringes, and needles used by diabetics, 14 for human use, when purchased for use by a person receiving 15 medical assistance under Article 5 of the Illinois Public Aid 16 Code who resides in a licensed long-term care facility, as 17 defined in 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. 26 (16) Computers and communications equipment utilized for 27 any hospital purpose and equipment used in the diagnosis, 28 analysis, or treatment of hospital patients sold to a lessor 29 who leases the equipment, under a lease of one year or longer 30 executed or in effect at the time of the purchase, to a 31 hospital that has been issued an active tax exemption 32 identification number by the Department under Section 1g of 33 the Retailers' Occupation Tax Act. 34 (17) Personal property sold to a lessor who leases the SB730 Engrossed -10- LRB9204809SMdv 1 property, under a lease of one year or longer executed or in 2 effect at the time of the purchase, to a governmental body 3 that has been issued an active tax exemption identification 4 number by the Department under Section 1g of the Retailers' 5 Occupation Tax Act. 6 (18) Beginning with taxable years ending on or after 7 December 31, 1995 and ending with taxable years ending on or 8 before December 31, 2004, personal property that is donated 9 for disaster relief to be used in a State or federally 10 declared disaster area in Illinois or bordering Illinois by a 11 manufacturer or retailer that is registered in this State to 12 a corporation, society, association, foundation, or 13 institution that has been issued a sales tax exemption 14 identification number by the Department that assists victims 15 of the disaster who reside within the declared disaster area. 16 (19) Beginning with taxable years ending on or after 17 December 31, 1995 and ending with taxable years ending on or 18 before December 31, 2004, personal property that is used in 19 the performance of infrastructure repairs in this State, 20 including but not limited to municipal roads and streets, 21 access roads, bridges, sidewalks, waste disposal systems, 22 water and sewer line extensions, water distribution and 23 purification facilities, storm water drainage and retention 24 facilities, and sewage treatment facilities, resulting from a 25 State or federally declared disaster in Illinois or bordering 26 Illinois when such repairs are initiated on facilities 27 located in the declared disaster area within 6 months after 28 the disaster. 29 (20) Beginning July 1, 1999, game or game birds sold at 30 a "game breeding and hunting preserve area" or an "exotic 31 game hunting area" as those terms are used in the Wildlife 32 Code or at a hunting enclosure approved through rules adopted 33 by the Department of Natural Resources. This paragraph is 34 exempt from the provisions of Section 3-55. SB730 Engrossed -11- LRB9204809SMdv 1 (21)(20)A motor vehicle, as that term is defined in 2 Section 1-146 of the Illinois Vehicle Code, that is donated 3 to a corporation, limited liability company, society, 4 association, foundation, or institution that is determined by 5 the Department to be organized and operated exclusively for 6 educational purposes. For purposes of this exemption, "a 7 corporation, limited liability company, society, association, 8 foundation, or institution organized and operated exclusively 9 for educational purposes" means all tax-supported public 10 schools, private schools that offer systematic instruction in 11 useful branches of learning by methods common to public 12 schools and that compare favorably in their scope and 13 intensity with the course of study presented in tax-supported 14 schools, and vocational or technical schools or institutes 15 organized and operated exclusively to provide a course of 16 study of not less than 6 weeks duration and designed to 17 prepare individuals to follow a trade or to pursue a manual, 18 technical, mechanical, industrial, business, or commercial 19 occupation. 20 (22)(21)Beginning January 1, 2000, personal property, 21 including food, purchased through fundraising events for the 22 benefit of a public or private elementary or secondary 23 school, a group of those schools, or one or more school 24 districts if the events are sponsored by an entity recognized 25 by the school district that consists primarily of volunteers 26 and includes parents and teachers of the school children. 27 This paragraph does not apply to fundraising events (i) for 28 the benefit of private home instruction or (ii) for which the 29 fundraising entity purchases the personal property sold at 30 the events from another individual or entity that sold the 31 property for the purpose of resale by the fundraising entity 32 and that profits from the sale to the fundraising entity. 33 This paragraph is exempt from the provisions of Section 3-55. 34 (23)(20)Beginning January 1, 2000, new or used SB730 Engrossed -12- LRB9204809SMdv 1 automatic vending machines that prepare and serve hot food 2 and beverages, including coffee, soup, and other items, and 3 replacement parts for these machines. This paragraph is 4 exempt from the provisions of Section 3-55. 5 (24) Beginning on January 1, 2002, tangible personal 6 property purchased from an Illinois retailer by a taxpayer 7 engaged in centralized purchasing activities in Illinois who 8 will, upon receipt of the property in Illinois, temporarily 9 store the property in Illinois (i) for the purpose of 10 subsequently transporting it outside this State for use or 11 consumption thereafter solely outside this State or (ii) for 12 the purpose of being processed, fabricated, or manufactured 13 into, attached to, or incorporated into other tangible 14 personal property to be transported outside this State and 15 thereafter used or consumed solely outside this State. The 16 Director of Revenue shall, pursuant to rules adopted in 17 accordance with the Illinois Administrative Procedure Act, 18 issue a permit to any taxpayer in good standing with the 19 Department who is eligible for the exemption under this 20 paragraph (24). The permit issued under this paragraph (24) 21 shall authorize the holder, to the extent and in the manner 22 specified in the rules adopted under this Act, to purchase 23 tangible personal property from a retailer exempt from the 24 taxes imposed by this Act. Taxpayers shall maintain all 25 necessary books and records to substantiate the use and 26 consumption of all such tangible personal property outside of 27 the State of Illinois. 28 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97; 29 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff. 30 7-20-99; 91-439, eff. 8-6-99; 91-533, eff. 8-13-99; 91-637, 31 eff. 8-20-99; 91-644, eff. 8-20-99; revised 9-29-99.) 32 Section 20. The Retailers' Occupation Tax Act is amended 33 by changing Section 2-5 as follows: SB730 Engrossed -13- LRB9204809SMdv 1 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5) 2 Sec. 2-5. Exemptions. Gross receipts from proceeds from 3 the sale of the following tangible personal property are 4 exempt from the tax imposed by this Act: 5 (1) Farm chemicals. 6 (2) Farm machinery and equipment, both new and used, 7 including that manufactured on special order, certified by 8 the purchaser to be used primarily for production agriculture 9 or State or federal agricultural programs, including 10 individual replacement parts for the machinery and equipment, 11 including machinery and equipment purchased for lease, and 12 including implements of husbandry defined in Section 1-130 of 13 the Illinois Vehicle Code, farm machinery and agricultural 14 chemical and fertilizer spreaders, and nurse wagons required 15 to be registered under Section 3-809 of the Illinois Vehicle 16 Code, but excluding other motor vehicles required to be 17 registered under the Illinois Vehicle Code. Horticultural 18 polyhouses or hoop houses used for propagating, growing, or 19 overwintering plants shall be considered farm machinery and 20 equipment under this item (2). Agricultural chemical tender 21 tanks and dry boxes shall include units sold separately from 22 a motor vehicle required to be licensed and units sold 23 mounted on a motor vehicle required to be licensed, if the 24 selling price of the tender is separately stated. 25 Farm machinery and equipment shall include precision 26 farming equipment that is installed or purchased to be 27 installed on farm machinery and equipment including, but not 28 limited to, tractors, harvesters, sprayers, planters, 29 seeders, or spreaders. Precision farming equipment includes, 30 but is not limited to, soil testing sensors, computers, 31 monitors, software, global positioning and mapping systems, 32 and other such equipment. 33 Farm machinery and equipment also includes computers, 34 sensors, software, and related equipment used primarily in SB730 Engrossed -14- LRB9204809SMdv 1 the computer-assisted operation of production agriculture 2 facilities, equipment, and activities such as, but not 3 limited to, the collection, monitoring, and correlation of 4 animal and crop data for the purpose of formulating animal 5 diets and agricultural chemicals. This item (7) is exempt 6 from the provisions of Section 2-70. 7 (3) Distillation machinery and equipment, sold as a unit 8 or kit, assembled or installed by the retailer, certified by 9 the user to be used only for the production of ethyl alcohol 10 that will be used for consumption as motor fuel or as a 11 component of motor fuel for the personal use of the user, and 12 not subject to sale or resale. 13 (4) Graphic arts machinery and equipment, including 14 repair and replacement parts, both new and used, and 15 including that manufactured on special order or purchased for 16 lease, certified by the purchaser to be used primarily for 17 graphic arts production. 18 (5) A motor vehicle of the first division, a motor 19 vehicle of the second division that is a self-contained motor 20 vehicle designed or permanently converted to provide living 21 quarters for recreational, camping, or travel use, with 22 direct walk through access to the living quarters from the 23 driver's seat, or a motor vehicle of the second division that 24 is of the van configuration designed for the transportation 25 of not less than 7 nor more than 16 passengers, as defined in 26 Section 1-146 of the Illinois Vehicle Code, that is used for 27 automobile renting, as defined in the Automobile Renting 28 Occupation and Use Tax Act. 29 (6) Personal property sold by a teacher-sponsored 30 student organization affiliated with an elementary or 31 secondary school located in Illinois. 32 (7) Proceeds of that portion of the selling price of a 33 passenger car the sale of which is subject to the Replacement 34 Vehicle Tax. SB730 Engrossed -15- LRB9204809SMdv 1 (8) Personal property sold to an Illinois county fair 2 association for use in conducting, operating, or promoting 3 the county fair. 4 (9) Personal property sold to a not-for-profit arts or 5 cultural organization that establishes, by proof required by 6 the Department by rule, that it has received an exemption 7 under Section 501(c)(3) of the Internal Revenue Code and that 8 is organized and operated for the presentation or support of 9 arts or cultural programming, activities, or services. These 10 organizations include, but are not limited to, music and 11 dramatic arts organizations such as symphony orchestras and 12 theatrical groups, arts and cultural service organizations, 13 local arts councils, visual arts organizations, and media 14 arts organizations. 15 (10) Personal property sold by a corporation, society, 16 association, foundation, institution, or organization, other 17 than a limited liability company, that is organized and 18 operated as a not-for-profit service enterprise for the 19 benefit of persons 65 years of age or older if the personal 20 property was not purchased by the enterprise for the purpose 21 of resale by the enterprise. 22 (11) Personal property sold to a governmental body, to a 23 corporation, society, association, foundation, or institution 24 organized and operated exclusively for charitable, religious, 25 or educational purposes, or to a not-for-profit corporation, 26 society, association, foundation, institution, or 27 organization that has no compensated officers or employees 28 and that is organized and operated primarily for the 29 recreation of persons 55 years of age or older. A limited 30 liability company may qualify for the exemption under this 31 paragraph only if the limited liability company is organized 32 and operated exclusively for educational purposes. On and 33 after July 1, 1987, however, no entity otherwise eligible for 34 this exemption shall make tax-free purchases unless it has an SB730 Engrossed -16- LRB9204809SMdv 1 active identification number issued by the Department. 2 (12) Personal property sold to interstate carriers for 3 hire for use as rolling stock moving in interstate commerce 4 or to lessors under leases of one year or longer executed or 5 in effect at the time of purchase by interstate carriers for 6 hire for use as rolling stock moving in interstate commerce 7 and equipment operated by a telecommunications provider, 8 licensed as a common carrier by the Federal Communications 9 Commission, which is permanently installed in or affixed to 10 aircraft moving in interstate commerce. 11 (13) Proceeds from sales to owners, lessors, or shippers 12 of tangible personal property that is utilized by interstate 13 carriers for hire for use as rolling stock moving in 14 interstate commerce and equipment operated by a 15 telecommunications provider, licensed as a common carrier by 16 the Federal Communications Commission, which is permanently 17 installed in or affixed to aircraft moving in interstate 18 commerce. 19 (14) Machinery and equipment that will be used by the 20 purchaser, or a lessee of the purchaser, primarily in the 21 process of manufacturing or assembling tangible personal 22 property for wholesale or retail sale or lease, whether the 23 sale or lease is made directly by the manufacturer or by some 24 other person, whether the materials used in the process are 25 owned by the manufacturer or some other person, or whether 26 the sale or lease is made apart from or as an incident to the 27 seller's engaging in the service occupation of producing 28 machines, tools, dies, jigs, patterns, gauges, or other 29 similar items of no commercial value on special order for a 30 particular purchaser. 31 (15) Proceeds of mandatory service charges separately 32 stated on customers' bills for purchase and consumption of 33 food and beverages, to the extent that the proceeds of the 34 service charge are in fact turned over as tips or as a SB730 Engrossed -17- LRB9204809SMdv 1 substitute for tips to the employees who participate directly 2 in preparing, serving, hosting or cleaning up the food or 3 beverage function with respect to which the service charge is 4 imposed. 5 (16) Petroleum products sold to a purchaser if the 6 seller is prohibited by federal law from charging tax to the 7 purchaser. 8 (17) Tangible personal property sold to a common carrier 9 by rail or motor that receives the physical possession of the 10 property in Illinois and that transports the property, or 11 shares with another common carrier in the transportation of 12 the property, out of Illinois on a standard uniform bill of 13 lading showing the seller of the property as the shipper or 14 consignor of the property to a destination outside Illinois, 15 for use outside Illinois. 16 (18) Legal tender, currency, medallions, or gold or 17 silver coinage issued by the State of Illinois, the 18 government of the United States of America, or the government 19 of any foreign country, and bullion. 20 (19) Oil field exploration, drilling, and production 21 equipment, including (i) rigs and parts of rigs, rotary rigs, 22 cable tool rigs, and workover rigs, (ii) pipe and tubular 23 goods, including casing and drill strings, (iii) pumps and 24 pump-jack units, (iv) storage tanks and flow lines, (v) any 25 individual replacement part for oil field exploration, 26 drilling, and production equipment, and (vi) machinery and 27 equipment purchased for lease; but excluding motor vehicles 28 required to be registered under the Illinois Vehicle Code. 29 (20) Photoprocessing machinery and equipment, including 30 repair and replacement parts, both new and used, including 31 that manufactured on special order, certified by the 32 purchaser to be used primarily for photoprocessing, and 33 including photoprocessing machinery and equipment purchased 34 for lease. SB730 Engrossed -18- LRB9204809SMdv 1 (21) Coal exploration, mining, offhighway hauling, 2 processing, maintenance, and reclamation equipment, including 3 replacement parts and equipment, and including equipment 4 purchased for lease, but excluding motor vehicles required to 5 be registered under the Illinois Vehicle Code. 6 (22) Fuel and petroleum products sold to or used by an 7 air carrier, certified by the carrier to be used for 8 consumption, shipment, or storage in the conduct of its 9 business as an air common carrier, for a flight destined for 10 or returning from a location or locations outside the United 11 States without regard to previous or subsequent domestic 12 stopovers. 13 (23) A transaction in which the purchase order is 14 received by a florist who is located outside Illinois, but 15 who has a florist located in Illinois deliver the property to 16 the purchaser or the purchaser's donee in Illinois. 17 (24) Fuel consumed or used in the operation of ships, 18 barges, or vessels that are used primarily in or for the 19 transportation of property or the conveyance of persons for 20 hire on rivers bordering on this State if the fuel is 21 delivered by the seller to the purchaser's barge, ship, or 22 vessel while it is afloat upon that bordering river. 23 (25) A motor vehicle sold in this State to a nonresident 24 even though the motor vehicle is delivered to the nonresident 25 in this State, if the motor vehicle is not to be titled in 26 this State, and if a driveaway decal permit is issued to the 27 motor vehicle as provided in Section 3-603 of the Illinois 28 Vehicle Code or if the nonresident purchaser has vehicle 29 registration plates to transfer to the motor vehicle upon 30 returning to his or her home state. The issuance of the 31 driveaway decal permit or having the out-of-state 32 registration plates to be transferred is prima facie evidence 33 that the motor vehicle will not be titled in this State. 34 (26) Semen used for artificial insemination of livestock SB730 Engrossed -19- LRB9204809SMdv 1 for direct agricultural production. 2 (27) Horses, or interests in horses, registered with and 3 meeting the requirements of any of the Arabian Horse Club 4 Registry of America, Appaloosa Horse Club, American Quarter 5 Horse Association, United States Trotting Association, or 6 Jockey Club, as appropriate, used for purposes of breeding or 7 racing for prizes. 8 (28) 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 15 this Act. 16 (29) Personal property sold to a lessor who leases the 17 property, under a lease of one year or longer executed or in 18 effect at the time of the purchase, to a governmental body 19 that has been issued an active tax exemption identification 20 number by the Department under Section 1g of this Act. 21 (30) 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 donated 24 for disaster relief to be used in a State or federally 25 declared disaster area in Illinois or bordering Illinois by a 26 manufacturer or retailer that is registered in this State to 27 a corporation, society, association, foundation, or 28 institution that has been issued a sales tax exemption 29 identification number by the Department that assists victims 30 of the disaster who reside within the declared disaster area. 31 (31) Beginning with taxable years ending on or after 32 December 31, 1995 and ending with taxable years ending on or 33 before December 31, 2004, personal property that is used in 34 the performance of infrastructure repairs in this State, SB730 Engrossed -20- LRB9204809SMdv 1 including but not limited to municipal roads and streets, 2 access roads, bridges, sidewalks, waste disposal systems, 3 water and sewer line extensions, water distribution and 4 purification facilities, storm water drainage and retention 5 facilities, and sewage treatment facilities, resulting from a 6 State or federally declared disaster in Illinois or bordering 7 Illinois when such repairs are initiated on facilities 8 located in the declared disaster area within 6 months after 9 the disaster. 10 (32) Beginning July 1, 1999, game or game birds sold at 11 a "game breeding and hunting preserve area" or an "exotic 12 game hunting area" as those terms are used in the Wildlife 13 Code or at a hunting enclosure approved through rules adopted 14 by the Department of Natural Resources. This paragraph is 15 exempt from the provisions of Section 2-70. 16 (33)(32)A motor vehicle, as that term is defined in 17 Section 1-146 of the Illinois Vehicle Code, that is donated 18 to a corporation, limited liability company, society, 19 association, foundation, or institution that is determined by 20 the Department to be organized and operated exclusively for 21 educational purposes. For purposes of this exemption, "a 22 corporation, limited liability company, society, association, 23 foundation, or institution organized and operated exclusively 24 for educational purposes" means all tax-supported public 25 schools, private schools that offer systematic instruction in 26 useful branches of learning by methods common to public 27 schools and that compare favorably in their scope and 28 intensity with the course of study presented in tax-supported 29 schools, and vocational or technical schools or institutes 30 organized and operated exclusively to provide a course of 31 study of not less than 6 weeks duration and designed to 32 prepare individuals to follow a trade or to pursue a manual, 33 technical, mechanical, industrial, business, or commercial 34 occupation. SB730 Engrossed -21- LRB9204809SMdv 1 (34)(33)Beginning January 1, 2000, personal property, 2 including food, purchased through fundraising events for the 3 benefit of a public or private elementary or secondary 4 school, a group of those schools, or one or more school 5 districts if the events are sponsored by an entity recognized 6 by the school district that consists primarily of volunteers 7 and includes parents and teachers of the school children. 8 This paragraph does not apply to fundraising events (i) for 9 the benefit of private home instruction or (ii) for which the 10 fundraising entity purchases the personal property sold at 11 the events from another individual or entity that sold the 12 property for the purpose of resale by the fundraising entity 13 and that profits from the sale to the fundraising entity. 14 This paragraph is exempt from the provisions of Section 2-70. 15 (35)(32)Beginning January 1, 2000, new or used 16 automatic vending machines that prepare and serve hot food 17 and beverages, including coffee, soup, and other items, and 18 replacement parts for these machines. This paragraph is 19 exempt from the provisions of Section 2-70. 20 (36) Beginning on January 1, 2002, tangible personal 21 property purchased from an Illinois retailer by a taxpayer 22 engaged in centralized purchasing activities in Illinois who 23 will, upon receipt of the property in Illinois, temporarily 24 store the property in Illinois (i) for the purpose of 25 subsequently transporting it outside this State for use or 26 consumption thereafter solely outside this State or (ii) for 27 the purpose of being processed, fabricated, or manufactured 28 into, attached to, or incorporated into other tangible 29 personal property to be transported outside this State and 30 thereafter used or consumed solely outside this State. The 31 Director of Revenue shall, pursuant to rules adopted in 32 accordance with the Illinois Administrative Procedure Act, 33 issue a permit to any taxpayer in good standing with the 34 Department who is eligible for the exemption under this SB730 Engrossed -22- LRB9204809SMdv 1 paragraph (36). The permit issued under this paragraph (36) 2 shall authorize the holder, to the extent and in the manner 3 specified in the rules adopted under this Act, to purchase 4 tangible personal property from a retailer exempt from the 5 taxes imposed by this Act. Taxpayers shall maintain all 6 necessary books and records to substantiate the use and 7 consumption of all such tangible personal property outside of 8 the State of Illinois. 9 (Source: P.A. 90-14, eff. 7-1-97; 90-519, eff. 6-1-98; 10 90-552, eff. 12-12-97; 90-605, eff. 6-30-98; 91-51, eff. 11 6-30-99; 91-200, eff. 7-20-99; 91-439, eff. 8-6-99; 91-533, 12 eff. 8-13-99; 91-637, eff. 8-20-99; 91-644, eff. 8-20-99; 13 revised 9-28-99.) 14 Section 99. Effective date. This Act takes effect upon 15 becoming law.