State of Illinois
Public Acts
92nd General Assembly

[ Home ]  [ ILCS ] [ Search ] [ Bottom ]
 [ Other General Assemblies ]

Public Act 92-0227

SB617 Enrolled                                 LRB9205192SMdv

    AN ACT in relation to taxes.

    Be it  enacted  by  the  People  of  the  State  of  Illinois,
represented in the General Assembly:

    Section 5.  The  Use  Tax  Act  is  amended  by  changing
Section 3-5 as follows:

    (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
    Sec.  3-5.   Exemptions.   Use  of the following tangible
personal property is exempt from the tax imposed by this Act:
    (1)  Personal  property  purchased  from  a  corporation,
society,    association,    foundation,    institution,    or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or  older  if  the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
    (2)  Personal  property  purchased  by  a  not-for-profit
Illinois  county  fair  association  for  use  in conducting,
operating, or promoting the county fair.
    (3)  Personal property purchased by a not-for-profit arts
or cultural organization that establishes, by proof  required
by  the Department by rule, that it has received an exemption
under Section 501(c)(3) of the Internal Revenue Code and that
is organized and operated for the presentation or support  of
arts or cultural programming, activities, or services.  These
organizations  include,  but  are  not  limited to, music and
dramatic arts organizations such as symphony  orchestras  and
theatrical  groups,  arts and cultural service organizations,
local arts councils, visual  arts  organizations,  and  media
arts organizations.
    (4)  Personal  property purchased by a governmental body,
by  a  corporation,  society,  association,  foundation,   or
institution    organized   and   operated   exclusively   for
charitable, religious,  or  educational  purposes,  or  by  a
not-for-profit corporation, society, association, foundation,
institution, or organization that has no compensated officers
or employees and that is organized and operated primarily for
the recreation of persons 55 years of age or older. A limited
liability  company  may  qualify for the exemption under this
paragraph only if the limited liability company is  organized
and  operated  exclusively  for  educational purposes. On and
after July 1, 1987, however, no entity otherwise eligible for
this exemption shall make tax-free purchases unless it has an
active  exemption  identification  number   issued   by   the
Department.
    (5)  A passenger car that is a replacement vehicle to the
extent  that  the purchase price of the car is subject to the
Replacement Vehicle Tax.
    (6)  Graphic  arts  machinery  and  equipment,  including
repair  and  replacement  parts,  both  new  and  used,   and
including  that  manufactured  on special order, certified by
the  purchaser  to  be  used  primarily  for   graphic   arts
production,  and  including machinery and equipment purchased
for lease.
    (7)  Farm chemicals.
    (8)  Legal  tender,  currency,  medallions,  or  gold  or
silver  coinage  issued  by  the  State  of   Illinois,   the
government of the United States of America, or the government
of any foreign country, and bullion.
    (9)  Personal property purchased from a teacher-sponsored
student   organization   affiliated  with  an  elementary  or
secondary school located in Illinois.
    (10)  A motor vehicle of  the  first  division,  a  motor
vehicle of the second division that is a self-contained motor
vehicle  designed  or permanently converted to provide living
quarters for  recreational,  camping,  or  travel  use,  with
direct  walk through to the living quarters from the driver's
seat, or a motor vehicle of the second division  that  is  of
the  van configuration designed for the transportation of not
less than 7 nor  more  than  16  passengers,  as  defined  in
Section  1-146 of the Illinois Vehicle Code, that is used for
automobile renting, as  defined  in  the  Automobile  Renting
Occupation and Use Tax Act.
    (11)  Farm  machinery  and  equipment, both new and used,
including that manufactured on special  order,  certified  by
the purchaser to be used primarily for production agriculture
or   State   or   federal  agricultural  programs,  including
individual replacement parts for the machinery and equipment,
including machinery and equipment purchased  for  lease,  and
including implements of husbandry defined in Section 1-130 of
the  Illinois  Vehicle  Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons  required
to  be registered under Section 3-809 of the Illinois Vehicle
Code, but excluding  other  motor  vehicles  required  to  be
registered  under  the  Illinois  Vehicle Code. Horticultural
polyhouses or hoop houses used for propagating,  growing,  or
overwintering  plants  shall be considered farm machinery and
equipment under this item (11). Agricultural chemical  tender
tanks  and dry boxes shall include units sold separately from
a motor vehicle  required  to  be  licensed  and  units  sold
mounted  on  a  motor  vehicle required to be licensed if the
selling price of the tender is separately stated.
    Farm machinery  and  equipment  shall  include  precision
farming  equipment  that  is  installed  or  purchased  to be
installed on farm machinery and equipment including, but  not
limited   to,   tractors,   harvesters,  sprayers,  planters,
seeders, or spreaders. Precision farming equipment  includes,
but  is  not  limited  to,  soil  testing sensors, computers,
monitors, software, global positioning and  mapping  systems,
and other such equipment.
    Farm  machinery  and  equipment  also includes computers,
sensors, software, and related equipment  used  primarily  in
the  computer-assisted  operation  of  production agriculture
facilities,  equipment,  and  activities  such  as,  but  not
limited to, the collection, monitoring,  and  correlation  of
animal  and  crop  data for the purpose of formulating animal
diets and agricultural chemicals.  This item (11)  is  exempt
from the provisions of Section 3-90.
    (12)  Fuel  and  petroleum products sold to or used by an
air common carrier, certified by the carrier to be  used  for
consumption,  shipment,  or  storage  in  the  conduct of its
business as an air common carrier, for a flight destined  for
or  returning from a location or locations outside the United
States without regard  to  previous  or  subsequent  domestic
stopovers.
    (13)  Proceeds  of  mandatory  service charges separately
stated on customers' bills for the purchase  and  consumption
of food and beverages purchased at retail from a retailer, to
the  extent  that  the  proceeds of the service charge are in
fact turned over as tips or as a substitute for tips  to  the
employees  who  participate  directly  in preparing, serving,
hosting or cleaning up the food  or  beverage  function  with
respect to which the service charge is imposed.
    (14)  Oil  field  exploration,  drilling,  and production
equipment, including (i) rigs and parts of rigs, rotary rigs,
cable tool rigs, and workover rigs,  (ii)  pipe  and  tubular
goods,  including  casing  and drill strings, (iii) pumps and
pump-jack units, (iv) storage tanks and flow lines,  (v)  any
individual   replacement  part  for  oil  field  exploration,
drilling, and production equipment, and  (vi)  machinery  and
equipment  purchased  for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
    (15)  Photoprocessing machinery and equipment,  including
repair  and  replacement  parts, both new and used, including
that  manufactured  on  special  order,  certified   by   the
purchaser  to  be  used  primarily  for  photoprocessing, and
including photoprocessing machinery and  equipment  purchased
for lease.
    (16)  Coal   exploration,   mining,  offhighway  hauling,
processing, maintenance, and reclamation equipment, including
replacement parts  and  equipment,  and  including  equipment
purchased for lease, but excluding motor vehicles required to
be registered under the Illinois Vehicle Code.
    (17)  Distillation  machinery  and  equipment,  sold as a
unit  or  kit,  assembled  or  installed  by  the   retailer,
certified  by  the user to be used only for the production of
ethyl alcohol that will be used for consumption as motor fuel
or as a component of motor fuel for the personal use  of  the
user, and not subject to sale or resale.
    (18)  Manufacturing    and   assembling   machinery   and
equipment used primarily in the process of  manufacturing  or
assembling tangible personal property for wholesale or retail
sale or lease, whether that sale or lease is made directly by
the  manufacturer  or  by  some  other  person,  whether  the
materials  used  in the process are owned by the manufacturer
or some other person, or whether that sale or lease  is  made
apart  from or as an incident to the seller's engaging in the
service occupation of producing machines, tools, dies,  jigs,
patterns,  gauges,  or  other  similar items of no commercial
value on special order for a particular purchaser.
    (19)  Personal  property  delivered  to  a  purchaser  or
purchaser's donee inside Illinois when the purchase order for
that personal property was  received  by  a  florist  located
outside  Illinois  who  has a florist located inside Illinois
deliver the personal property.
    (20)  Semen used for artificial insemination of livestock
for direct agricultural production.
    (21)  Horses, or interests in horses, registered with and
meeting the requirements of any of  the  Arabian  Horse  Club
Registry  of  America, Appaloosa Horse Club, American Quarter
Horse Association, United  States  Trotting  Association,  or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes.
    (22)  Computers and communications equipment utilized for
any  hospital  purpose  and  equipment used in the diagnosis,
analysis, or treatment of hospital patients  purchased  by  a
lessor who leases the equipment, under a lease of one year or
longer  executed  or  in  effect at the time the lessor would
otherwise be subject to the tax imposed by  this  Act,  to  a
hospital    that  has  been  issued  an  active tax exemption
identification number by the Department under Section  1g  of
the  Retailers'  Occupation  Tax  Act.   If  the equipment is
leased in a manner that does not qualify for  this  exemption
or is used in any other nonexempt manner, the lessor shall be
liable  for the tax imposed under this Act or the Service Use
Tax Act, as the case may be, based on the fair  market  value
of the property at the time the nonqualifying use occurs.  No
lessor shall collect or attempt to collect an amount (however
designated)  that  purports  to reimburse that lessor for the
tax imposed by this Act or the Service Use Tax  Act,  as  the
case  may be, if the tax has not been paid by the lessor.  If
a lessor improperly collects any such amount from the lessee,
the lessee shall have a legal right to claim a refund of that
amount from the lessor.  If,  however,  that  amount  is  not
refunded  to  the lessee for any reason, the lessor is liable
to pay that amount to the Department.
    (23)  Personal property purchased by a lessor who  leases
the  property,  under a lease of  one year or longer executed
or in effect at  the  time  the  lessor  would  otherwise  be
subject  to  the  tax  imposed by this Act, to a governmental
body that has been  issued  an  active  sales  tax  exemption
identification  number  by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the property is  leased
in  a manner that does not qualify for this exemption or used
in any other nonexempt manner, the lessor shall be liable for
the tax imposed under this Act or the Service Use Tax Act, as
the case may be, based  on  the  fair  market  value  of  the
property at the time the nonqualifying use occurs.  No lessor
shall  collect  or  attempt  to  collect  an  amount (however
designated) that purports to reimburse that  lessor  for  the
tax  imposed  by  this Act or the Service Use Tax Act, as the
case may be, if the tax has not been paid by the lessor.   If
a lessor improperly collects any such amount from the lessee,
the lessee shall have a legal right to claim a refund of that
amount  from  the  lessor.   If,  however, that amount is not
refunded to the lessee for any reason, the lessor  is  liable
to pay that amount to the Department.
    (24)  Beginning  with  taxable  years  ending on or after
December 31, 1995 and ending with taxable years ending on  or
before  December  31, 2004, personal property that is donated
for disaster relief to  be  used  in  a  State  or  federally
declared disaster area in Illinois or bordering Illinois by a
manufacturer  or retailer that is registered in this State to
a   corporation,   society,   association,   foundation,   or
institution that  has  been  issued  a  sales  tax  exemption
identification  number by the Department that assists victims
of the disaster who reside within the declared disaster area.
    (25)  Beginning with taxable years  ending  on  or  after
December  31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is  used  in
the  performance  of  infrastructure  repairs  in this State,
including but not limited to  municipal  roads  and  streets,
access  roads,  bridges,  sidewalks,  waste disposal systems,
water and  sewer  line  extensions,  water  distribution  and
purification  facilities,  storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois  when  such  repairs  are  initiated  on  facilities
located in the declared disaster area within 6  months  after
the disaster.
    (26)  Beginning   July   1,  1999,  game  or  game  birds
purchased at a "game breeding and hunting preserve  area"  or
an  "exotic game hunting area" as those terms are used in the
Wildlife Code or at  a  hunting  enclosure  approved  through
rules  adopted  by the Department of Natural Resources.  This
paragraph is exempt from the provisions of Section 3-90.
    (27)  A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code,  that  is  donated  to  a
corporation, limited liability company, society, association,
foundation,   or   institution  that  is  determined  by  the
Department to  be  organized  and  operated  exclusively  for
educational  purposes.    For  purposes of this exemption, "a
corporation, limited liability company, society, association,
foundation, or institution organized and operated exclusively
for educational  purposes"  means  all  tax-supported  public
schools, private schools that offer systematic instruction in
useful  branches  of  learning  by  methods  common to public
schools  and  that  compare  favorably  in  their  scope  and
intensity with the course of study presented in tax-supported
schools, and vocational or technical  schools  or  institutes
organized  and  operated  exclusively  to provide a course of
study of not less than  6  weeks  duration  and  designed  to
prepare  individuals to follow a trade or to pursue a manual,
technical, mechanical, industrial,  business,  or  commercial
occupation.
    (28)  Beginning  January  1,  2000,   personal  property,
including  food, purchased through fundraising events for the
benefit of  a  public  or  private  elementary  or  secondary
school,  a  group  of  those  schools,  or one or more school
districts if the events are sponsored by an entity recognized
by the school district that consists primarily of  volunteers
and  includes  parents  and  teachers of the school children.
This paragraph does not apply to fundraising events  (i)  for
the benefit of private home instruction or (ii) for which the
fundraising  entity  purchases  the personal property sold at
the events from another individual or entity  that  sold  the
property  for the purpose of resale by the fundraising entity
and that profits from the sale  to  the  fundraising  entity.
This paragraph is exempt from the provisions of Section 3-90.
    (29)  Beginning  January  1,  2000, new or used automatic
vending  machines  that  prepare  and  serve  hot  food   and
beverages,  including  coffee,  soup,  and  other  items, and
replacement parts for these  machines.    This  paragraph  is
exempt from the provisions of Section 3-90.
    (30)  Food  for  human consumption that is to be consumed
off the premises where  it  is  sold  (other  than  alcoholic
beverages,  soft  drinks, and food that has been prepared for
immediate consumption) and prescription  and  nonprescription
medicines,  drugs,  medical  appliances,  and  insulin, urine
testing materials, syringes, and needles used  by  diabetics,
for  human  use, when purchased for use by a person receiving
medical assistance under Article 5 of the Illinois Public Aid
Code who resides in a licensed long-term  care  facility,  as
defined in the Nursing Home Care Act.
    (31)  Beginning  on the effective date of this amendatory
Act   of   the   92nd   General   Assembly,   computers   and
communications equipment utilized for  any  hospital  purpose
and  equipment  used in the diagnosis, analysis, or treatment
of hospital patients purchased by a  lessor  who  leases  the
equipment, under a lease of one year or longer executed or in
effect  at  the time the lessor would otherwise be subject to
the tax imposed by this Act, to  a  hospital  that  has  been
issued  an  active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation  Tax
Act.   If  the  equipment is leased in a manner that does not
qualify for this exemption or is used in any other  nonexempt
manner,  the lessor shall be liable for the tax imposed under
this Act or the Service Use Tax Act,  as  the  case  may  be,
based  on  the  fair market value of the property at the time
the nonqualifying use occurs.  No  lessor  shall  collect  or
attempt  to  collect  an  amount  (however  designated)  that
purports to reimburse that lessor for the tax imposed by this
Act  or  the  Service Use Tax Act, as the case may be, if the
tax has not been paid by the lessor.  If a lessor  improperly
collects  any  such  amount from the lessee, the lessee shall
have a legal right to claim a refund of that amount from  the
lessor.   If,  however,  that  amount  is not refunded to the
lessee for any reason, the  lessor  is  liable  to  pay  that
amount  to  the Department. This paragraph is exempt from the
provisions of Section 3-90.
    (32)  Beginning on the effective date of this  amendatory
Act of the 92nd General Assembly, personal property purchased
by  a  lessor  who  leases the property, under a lease of one
year or longer executed or in effect at the time  the  lessor
would otherwise be subject to the tax imposed by this Act, to
a  governmental body that has been issued an active sales tax
exemption  identification  number  by  the  Department  under
Section 1g of the Retailers'  Occupation  Tax  Act.   If  the
property is leased in a manner that does not qualify for this
exemption  or  used in any other nonexempt manner, the lessor
shall be liable for the tax imposed under  this  Act  or  the
Service  Use  Tax  Act, as the case may be, based on the fair
market value of the property at the  time  the  nonqualifying
use occurs.  No lessor shall collect or attempt to collect an
amount  (however  designated) that purports to reimburse that
lessor for the tax imposed by this Act or the Service Use Tax
Act, as the case may be, if the tax has not been paid by  the
lessor.  If a lessor improperly collects any such amount from
the  lessee,  the  lessee shall have a legal right to claim a
refund of that amount from the  lessor.   If,  however,  that
amount  is  not  refunded  to  the lessee for any reason, the
lessor is liable to pay that amount to the Department.   This
paragraph is exempt from the provisions of Section 3-90.
(Source:  P.A.  90-14,  eff.  7-1-97;  90-552, eff. 12-12-97;
90-605, eff.  6-30-98;  91-51,  eff.  6-30-99;  91-200,  eff.
7-20-99;  91-439,  eff. 8-6-99; 91-637, eff. 8-20-99; 91-644,
eff. 8-20-99; 91-901, eff. 1-1-01.)

    Section 10.  The  Service  Use  Tax  Act  is  amended  by
changing Section 3-5 as follows:

    (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
    Sec.  3-5.   Exemptions.   Use  of the following tangible
personal property is exempt from the tax imposed by this Act:
    (1)  Personal  property  purchased  from  a  corporation,
society,    association,    foundation,    institution,    or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or  older  if  the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
    (2)  Personal property purchased by a non-profit Illinois
county  fair association for use in conducting, operating, or
promoting the county fair.
    (3)  Personal property purchased by a not-for-profit arts
or cultural organization that establishes, by proof  required
by  the Department by rule, that it has received an exemption
under Section 501(c)(3) of the Internal Revenue Code and that
is organized and operated for the presentation or support  of
arts or cultural programming, activities, or services.  These
organizations  include,  but  are  not  limited to, music and
dramatic arts organizations such as symphony  orchestras  and
theatrical  groups,  arts and cultural service organizations,
local arts councils, visual  arts  organizations,  and  media
arts organizations.
    (4)  Legal  tender,  currency,  medallions,  or  gold  or
silver   coinage   issued  by  the  State  of  Illinois,  the
government of the United States of America, or the government
of any foreign country, and bullion.
    (5)  Graphic  arts  machinery  and  equipment,  including
repair  and  replacement  parts,  both  new  and  used,   and
including that manufactured on special order or purchased for
lease,  certified  by  the purchaser to be used primarily for
graphic arts production.
    (6)  Personal property purchased from a teacher-sponsored
student  organization  affiliated  with  an   elementary   or
secondary school located in Illinois.
    (7)  Farm  machinery  and  equipment,  both new and used,
including that manufactured on special  order,  certified  by
the purchaser to be used primarily for production agriculture
or   State   or   federal  agricultural  programs,  including
individual replacement parts for the machinery and equipment,
including machinery and equipment purchased  for  lease,  and
including implements of husbandry defined in Section 1-130 of
the  Illinois  Vehicle  Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons  required
to  be registered under Section 3-809 of the Illinois Vehicle
Code, but excluding  other  motor  vehicles  required  to  be
registered  under  the  Illinois  Vehicle Code. Horticultural
polyhouses or hoop houses used for propagating,  growing,  or
overwintering  plants  shall be considered farm machinery and
equipment under this item (7). Agricultural  chemical  tender
tanks  and dry boxes shall include units sold separately from
a motor vehicle  required  to  be  licensed  and  units  sold
mounted  on  a  motor  vehicle required to be licensed if the
selling price of the tender is separately stated.
    Farm machinery  and  equipment  shall  include  precision
farming  equipment  that  is  installed  or  purchased  to be
installed on farm machinery and equipment including, but  not
limited   to,   tractors,   harvesters,  sprayers,  planters,
seeders, or spreaders. Precision farming equipment  includes,
but  is  not  limited  to,  soil  testing sensors, computers,
monitors, software, global positioning and  mapping  systems,
and other such equipment.
    Farm  machinery  and  equipment  also includes computers,
sensors, software, and related equipment  used  primarily  in
the  computer-assisted  operation  of  production agriculture
facilities,  equipment,  and  activities  such  as,  but  not
limited to, the collection, monitoring,  and  correlation  of
animal  and  crop  data for the purpose of formulating animal
diets and agricultural chemicals.  This item  (7)  is  exempt
from the provisions of Section 3-75.
    (8)  Fuel  and  petroleum  products sold to or used by an
air common carrier, certified by the carrier to be  used  for
consumption,  shipment,  or  storage  in  the  conduct of its
business as an air common carrier, for a flight destined  for
or  returning from a location or locations outside the United
States without regard  to  previous  or  subsequent  domestic
stopovers.
    (9)  Proceeds  of  mandatory  service  charges separately
stated on customers' bills for the purchase  and  consumption
of food and beverages acquired as an incident to the purchase
of  a  service  from  a  serviceman,  to  the extent that the
proceeds of the service charge are in  fact  turned  over  as
tips  or  as  a  substitute  for  tips  to  the employees who
participate  directly  in  preparing,  serving,  hosting   or
cleaning  up  the  food  or beverage function with respect to
which the service charge is imposed.
    (10)  Oil field  exploration,  drilling,  and  production
equipment, including (i) rigs and parts of rigs, rotary rigs,
cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
goods, including casing and drill strings,  (iii)  pumps  and
pump-jack  units,  (iv) storage tanks and flow lines, (v) any
individual  replacement  part  for  oil  field   exploration,
drilling,  and  production  equipment, and (vi) machinery and
equipment purchased for lease; but excluding  motor  vehicles
required to be registered under the Illinois Vehicle Code.
    (11)  Proceeds from the sale of photoprocessing machinery
and  equipment,  including repair and replacement parts, both
new and used, including that manufactured on  special  order,
certified   by   the  purchaser  to  be  used  primarily  for
photoprocessing, and including photoprocessing machinery  and
equipment purchased for lease.
    (12)  Coal   exploration,   mining,  offhighway  hauling,
processing, maintenance, and reclamation equipment, including
replacement parts  and  equipment,  and  including  equipment
purchased for lease, but excluding motor vehicles required to
be registered under the Illinois Vehicle Code.
    (13)  Semen used for artificial insemination of livestock
for direct agricultural production.
    (14)  Horses, or interests in horses, registered with and
meeting  the  requirements  of  any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club,  American  Quarter
Horse  Association,  United  States  Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes.
    (15)  Computers and communications equipment utilized for
any hospital purpose and equipment  used  in  the  diagnosis,
analysis,  or  treatment  of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the  time  the  lessor  would
otherwise  be  subject  to  the tax imposed by this Act, to a
hospital  that  has  been  issued  an  active  tax  exemption
identification number by the Department under Section  1g  of
the Retailers' Occupation Tax Act. If the equipment is leased
in  a  manner  that does not qualify for this exemption or is
used in any other non-exempt  manner,  the  lessor  shall  be
liable for the tax imposed under this Act or the Use Tax Act,
as  the  case  may  be, based on the fair market value of the
property at the  time  the  non-qualifying  use  occurs.   No
lessor shall collect or attempt to collect an amount (however
designated)  that  purports  to reimburse that lessor for the
tax imposed by this Act or the Use Tax Act, as the  case  may
be,  if the tax has not been paid by the lessor.  If a lessor
improperly collects any such  amount  from  the  lessee,  the
lessee  shall  have  a  legal right to claim a refund of that
amount from the lessor.  If,  however,  that  amount  is  not
refunded  to  the lessee for any reason, the lessor is liable
to pay that amount to the Department.
    (16)  Personal property purchased by a lessor who  leases
the property, under a lease of one year or longer executed or
in  effect  at the time the lessor would otherwise be subject
to the tax imposed by this Act, to a governmental  body  that
has been issued an active tax exemption identification number
by   the  Department  under  Section  1g  of  the  Retailers'
Occupation Tax Act.  If the property is leased  in  a  manner
that  does  not  qualify for this exemption or is used in any
other non-exempt manner, the lessor shall be liable  for  the
tax  imposed  under  this Act or the Use Tax Act, as the case
may be, based on the fair market value of the property at the
time the non-qualifying use occurs.  No lessor shall  collect
or  attempt  to  collect  an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Use Tax Act, as the case may be, if  the  tax  has
not been paid by the lessor.  If a lessor improperly collects
any  such  amount  from  the  lessee, the lessee shall have a
legal right to claim a refund of that amount from the lessor.
If, however, that amount is not refunded to  the  lessee  for
any  reason,  the  lessor is liable to pay that amount to the
Department.
    (17)  Beginning with taxable years  ending  on  or  after
December  31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that  is  donated
for  disaster  relief  to  be  used  in  a State or federally
declared disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State  to
a   corporation,   society,   association,   foundation,   or
institution  that  has  been  issued  a  sales  tax exemption
identification number by the Department that assists  victims
of the disaster who reside within the declared disaster area.
    (18)  Beginning  with  taxable  years  ending on or after
December 31, 1995 and ending with taxable years ending on  or
before  December  31, 2004, personal property that is used in
the performance of  infrastructure  repairs  in  this  State,
including  but  not  limited  to municipal roads and streets,
access roads, bridges,  sidewalks,  waste  disposal  systems,
water  and  sewer  line  extensions,  water  distribution and
purification facilities, storm water drainage  and  retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois  when  such  repairs  are  initiated  on  facilities
located  in  the declared disaster area within 6 months after
the disaster.
    (19)  Beginning  July  1,  1999,  game  or   game   birds
purchased  at  a "game breeding and hunting preserve area" or
an "exotic game hunting area" as those terms are used in  the
Wildlife  Code  or  at  a  hunting enclosure approved through
rules adopted by the Department of Natural  Resources.   This
paragraph is exempt from the provisions of Section 3-75.
    (20)  (19)  A  motor  vehicle, as that term is defined in
Section 1-146 of the Illinois Vehicle Code, that  is  donated
to   a   corporation,  limited  liability  company,  society,
association, foundation, or institution that is determined by
the Department to be organized and operated  exclusively  for
educational  purposes.   For  purposes  of this exemption, "a
corporation, limited liability company, society, association,
foundation, or institution organized and operated exclusively
for educational  purposes"  means  all  tax-supported  public
schools, private schools that offer systematic instruction in
useful  branches  of  learning  by  methods  common to public
schools  and  that  compare  favorably  in  their  scope  and
intensity with the course of study presented in tax-supported
schools, and vocational or technical  schools  or  institutes
organized  and  operated  exclusively  to provide a course of
study of not less than  6  weeks  duration  and  designed  to
prepare  individuals to follow a trade or to pursue a manual,
technical, mechanical, industrial,  business,  or  commercial
occupation.
    (21) (20)  Beginning January 1, 2000,  personal property,
including  food, purchased through fundraising events for the
benefit of  a  public  or  private  elementary  or  secondary
school,  a  group  of  those  schools,  or one or more school
districts if the events are sponsored by an entity recognized
by the school district that consists primarily of  volunteers
and  includes  parents  and  teachers of the school children.
This paragraph does not apply to fundraising events  (i)  for
the benefit of private home instruction or (ii) for which the
fundraising  entity  purchases  the personal property sold at
the events from another individual or entity  that  sold  the
property  for the purpose of resale by the fundraising entity
and that profits from the sale  to  the  fundraising  entity.
This paragraph is exempt from the provisions of Section 3-75.
    (22)   (19)  Beginning  January  1,  2000,  new  or  used
automatic vending machines that prepare and  serve  hot  food
and  beverages,  including coffee, soup, and other items, and
replacement parts for these  machines.    This  paragraph  is
exempt from the provisions of Section 3-75.
    (23)  Beginning  on the effective date of this amendatory
Act   of   the   92nd   General   Assembly,   computers   and
communications equipment utilized for  any  hospital  purpose
and  equipment  used in the diagnosis, analysis, or treatment
of hospital patients purchased by a  lessor  who  leases  the
equipment, under a lease of one year or longer executed or in
effect  at  the time the lessor would otherwise be subject to
the tax imposed by this Act, to  a  hospital  that  has  been
issued  an  active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation  Tax
Act.   If  the  equipment is leased in a manner that does not
qualify for this exemption or is used in any other  nonexempt
manner,  the lessor shall be liable for the tax imposed under
this Act or the Use Tax Act, as the case may be, based on the
fair  market  value  of  the  property  at   the   time   the
nonqualifying use occurs.  No lessor shall collect or attempt
to  collect  an  amount (however designated) that purports to
reimburse that lessor for the tax imposed by this Act or  the
Use Tax Act, as the case may be, if the tax has not been paid
by  the  lessor.   If  a  lessor improperly collects any such
amount from the lessee, the lessee shall have a  legal  right
to  claim  a  refund  of  that  amount  from the lessor.  If,
however, that amount is not refunded to the  lessee  for  any
reason,  the  lessor  is  liable  to  pay  that amount to the
Department. This paragraph is exempt from the  provisions  of
Section 3-75.
    (24)  Beginning  on the effective date of this amendatory
Act of the 92nd General Assembly, personal property purchased
by a lessor who leases the property, under  a  lease  of  one
year  or  longer executed or in effect at the time the lessor
would otherwise be subject to the tax imposed by this Act, to
a governmental body  that  has  been  issued  an  active  tax
exemption  identification  number  by  the  Department  under
Section  1g  of  the  Retailers'  Occupation Tax Act.  If the
property is leased in a manner that does not qualify for this
exemption or is used  in  any  other  nonexempt  manner,  the
lessor  shall be liable for the tax imposed under this Act or
the Use Tax Act, as the case may be, based on the fair market
value of the property  at  the  time  the  nonqualifying  use
occurs.   No  lessor  shall  collect or attempt to collect an
amount (however designated) that purports to  reimburse  that
lessor for the tax imposed by this Act or the Use Tax Act, as
the  case may be, if the tax has not been paid by the lessor.
If a lessor improperly collects  any  such  amount  from  the
lessee, the lessee shall have a legal right to claim a refund
of  that amount from the lessor.  If, however, that amount is
not refunded to the lessee for  any  reason,  the  lessor  is
liable  to  pay that amount to the Department. This paragraph
is exempt from the provisions of Section 3-75.
(Source: P.A. 90-14,  eff.  7-1-97;  90-552,  eff.  12-12-97;
90-605,  eff.  6-30-98;  91-51,  eff.  6-30-99;  91-200, eff.
7-20-99; 91-439, eff. 8-6-99; 91-637, eff.  8-20-99;  91-644,
eff. 8-20-99; revised 9-29-99.)

    Section 15.  The Service Occupation Tax Act is amended by
changing Section 3-5 as follows:

    (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
    Sec.  3-5.   Exemptions.  The following tangible personal
property is exempt from the tax imposed by this Act:
    (1)  Personal property sold by  a  corporation,  society,
association,  foundation, institution, or organization, other
than a limited  liability  company,  that  is  organized  and
operated  as  a  not-for-profit  service  enterprise  for the
benefit of persons 65 years of age or older if  the  personal
property  was not purchased by the enterprise for the purpose
of resale by the enterprise.
    (2)  Personal  property  purchased  by  a  not-for-profit
Illinois county  fair  association  for  use  in  conducting,
operating, or promoting the county fair.
    (3)  Personal  property  purchased  by any not-for-profit
arts or cultural  organization  that  establishes,  by  proof
required  by  the Department by rule, that it has received an
exemption  under Section 501(c)(3) of  the  Internal  Revenue
Code  and that is organized and operated for the presentation
or support of arts or cultural  programming,  activities,  or
services.   These  organizations include, but are not limited
to, music and dramatic arts organizations  such  as  symphony
orchestras  and  theatrical groups, arts and cultural service
organizations,   local    arts    councils,    visual    arts
organizations, and media arts organizations.
    (4)  Legal  tender,  currency,  medallions,  or  gold  or
silver   coinage   issued  by  the  State  of  Illinois,  the
government of the United States of America, or the government
of any foreign country, and bullion.
    (5)  Graphic  arts  machinery  and  equipment,  including
repair  and  replacement  parts,  both  new  and  used,   and
including that manufactured on special order or purchased for
lease,  certified  by  the purchaser to be used primarily for
graphic arts production.
    (6)  Personal  property  sold  by   a   teacher-sponsored
student   organization   affiliated  with  an  elementary  or
secondary school located in Illinois.
    (7)  Farm machinery and equipment,  both  new  and  used,
including  that  manufactured  on special order, certified by
the purchaser to be used primarily for production agriculture
or  State  or  federal   agricultural   programs,   including
individual replacement parts for the machinery and equipment,
including  machinery  and  equipment purchased for lease, and
including implements of husbandry defined in Section 1-130 of
the Illinois Vehicle Code, farm  machinery  and  agricultural
chemical  and fertilizer spreaders, and nurse wagons required
to be registered under Section 3-809 of the Illinois  Vehicle
Code,  but  excluding  other  motor  vehicles  required to be
registered under the  Illinois  Vehicle  Code.  Horticultural
polyhouses  or  hoop houses used for propagating, growing, or
overwintering plants shall be considered farm  machinery  and
equipment  under  this item (7). Agricultural chemical tender
tanks and dry boxes shall include units sold separately  from
a  motor  vehicle  required  to  be  licensed  and units sold
mounted on a motor vehicle required to  be  licensed  if  the
selling price of the tender is separately stated.
    Farm  machinery  and  equipment  shall  include precision
farming equipment  that  is  installed  or  purchased  to  be
installed  on farm machinery and equipment including, but not
limited  to,  tractors,   harvesters,   sprayers,   planters,
seeders,  or spreaders. Precision farming equipment includes,
but is not  limited  to,  soil  testing  sensors,  computers,
monitors,  software,  global positioning and mapping systems,
and other such equipment.
    Farm machinery and  equipment  also  includes  computers,
sensors,  software,  and  related equipment used primarily in
the computer-assisted  operation  of  production  agriculture
facilities,  equipment,  and  activities  such  as,  but  not
limited  to,  the  collection, monitoring, and correlation of
animal and crop data for the purpose  of  formulating  animal
diets  and  agricultural  chemicals.  This item (7) is exempt
from the provisions of Section 3-55.
    (8)  Fuel and petroleum products sold to or  used  by  an
air  common  carrier, certified by the carrier to be used for
consumption, shipment, or  storage  in  the  conduct  of  its
business  as an air common carrier, for a flight destined for
or returning from a location or locations outside the  United
States  without  regard  to  previous  or subsequent domestic
stopovers.
    (9)  Proceeds of  mandatory  service  charges  separately
stated  on  customers' bills for the purchase and consumption
of food and beverages, to the extent that the proceeds of the
service charge are in fact  turned  over  as  tips  or  as  a
substitute for tips to the employees who participate directly
in  preparing,  serving,  hosting  or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
    (10)  Oil field  exploration,  drilling,  and  production
equipment, including (i) rigs and parts of rigs, rotary rigs,
cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
goods, including casing and drill strings,  (iii)  pumps  and
pump-jack  units,  (iv) storage tanks and flow lines, (v) any
individual  replacement  part  for  oil  field   exploration,
drilling,  and  production  equipment, and (vi) machinery and
equipment purchased for lease; but excluding  motor  vehicles
required to be registered under the Illinois Vehicle Code.
    (11)  Photoprocessing  machinery and equipment, including
repair and replacement parts, both new  and  used,  including
that   manufactured   on  special  order,  certified  by  the
purchaser to  be  used  primarily  for  photoprocessing,  and
including  photoprocessing  machinery and equipment purchased
for lease.
    (12)  Coal  exploration,  mining,   offhighway   hauling,
processing, maintenance, and reclamation equipment, including
replacement  parts  and  equipment,  and  including equipment
purchased for lease, but excluding motor vehicles required to
be registered under the Illinois Vehicle Code.
    (13)  Food for human consumption that is to  be  consumed
off  the  premises  where  it  is  sold (other than alcoholic
beverages, soft drinks and food that has  been  prepared  for
immediate  consumption) and prescription and non-prescription
medicines, drugs,  medical  appliances,  and  insulin,  urine
testing  materials,  syringes, and needles used by diabetics,
for human use, when purchased for use by a  person  receiving
medical assistance under Article 5 of the Illinois Public Aid
Code  who  resides  in a licensed long-term care facility, as
defined in the Nursing Home Care Act.
    (14)  Semen used for artificial insemination of livestock
for direct agricultural production.
    (15)  Horses, or interests in horses, registered with and
meeting the requirements of any of  the  Arabian  Horse  Club
Registry  of  America, Appaloosa Horse Club, American Quarter
Horse Association, United  States  Trotting  Association,  or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes.
    (16)  Computers and communications equipment utilized for
any  hospital  purpose  and  equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a  lessor
who leases the equipment, under a lease of one year or longer
executed  or  in  effect  at  the  time of the purchase, to a
hospital  that  has  been  issued  an  active  tax  exemption
identification number by the Department under Section  1g  of
the Retailers' Occupation Tax Act.
    (17)  Personal  property  sold to a lessor who leases the
property, under a lease of one year or longer executed or  in
effect  at  the  time of the purchase, to a governmental body
that has been issued an active tax  exemption  identification
number  by  the Department under Section 1g of the Retailers'
Occupation Tax Act.
    (18)  Beginning with taxable years  ending  on  or  after
December  31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that  is  donated
for  disaster  relief  to  be  used  in  a State or federally
declared disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State  to
a   corporation,   society,   association,   foundation,   or
institution  that  has  been  issued  a  sales  tax exemption
identification number by the Department that assists  victims
of the disaster who reside within the declared disaster area.
    (19)  Beginning  with  taxable  years  ending on or after
December 31, 1995 and ending with taxable years ending on  or
before  December  31, 2004, personal property that is used in
the performance of  infrastructure  repairs  in  this  State,
including  but  not  limited  to municipal roads and streets,
access roads, bridges,  sidewalks,  waste  disposal  systems,
water  and  sewer  line  extensions,  water  distribution and
purification facilities, storm water drainage  and  retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois  when  such  repairs  are  initiated  on  facilities
located  in  the declared disaster area within 6 months after
the disaster.
    (20)  Beginning July 1, 1999, game or game birds sold  at
a  "game  breeding  and  hunting preserve area" or an "exotic
game hunting area" as those terms are used  in  the  Wildlife
Code or at a hunting enclosure approved through rules adopted
by  the  Department  of Natural Resources.  This paragraph is
exempt from the provisions of Section 3-55.
    (21) (20)  A motor vehicle, as that term  is  defined  in
Section  1-146  of the Illinois Vehicle Code, that is donated
to  a  corporation,  limited  liability   company,   society,
association, foundation, or institution that is determined by
the  Department  to be organized and operated exclusively for
educational purposes.  For purposes  of  this  exemption,  "a
corporation, limited liability company, society, association,
foundation, or institution organized and operated exclusively
for  educational  purposes"  means  all  tax-supported public
schools, private schools that offer systematic instruction in
useful branches of  learning  by  methods  common  to  public
schools  and  that  compare  favorably  in  their  scope  and
intensity with the course of study presented in tax-supported
schools,  and  vocational  or technical schools or institutes
organized and operated exclusively to  provide  a  course  of
study  of  not  less  than  6  weeks duration and designed to
prepare individuals to follow a trade or to pursue a  manual,
technical,  mechanical,  industrial,  business, or commercial
occupation.
    (22) (21)  Beginning January 1, 2000,  personal property,
including food, purchased through fundraising events for  the
benefit  of  a  public  or  private  elementary  or secondary
school, a group of those  schools,  or  one  or  more  school
districts if the events are sponsored by an entity recognized
by  the school district that consists primarily of volunteers
and includes parents and teachers  of  the  school  children.
This  paragraph  does not apply to fundraising events (i) for
the benefit of private home instruction or (ii) for which the
fundraising entity purchases the personal  property  sold  at
the  events  from  another individual or entity that sold the
property for the purpose of resale by the fundraising  entity
and  that  profits  from  the sale to the fundraising entity.
This paragraph is exempt from the provisions of Section 3-55.
    (23)  (20)  Beginning  January  1,  2000,  new  or   used
automatic  vending  machines  that prepare and serve hot food
and beverages, including coffee, soup, and other  items,  and
replacement  parts  for  these  machines.   This paragraph is
exempt from the provisions of Section 3-55.
    (24)  Beginning on the effective date of this  amendatory
Act   of   the   92nd   General   Assembly,   computers   and
communications  equipment  utilized  for any hospital purpose
and equipment used in the diagnosis, analysis,  or  treatment
of  hospital  patients  sold  to  a  lessor  who  leases  the
equipment, under a lease of one year or longer executed or in
effect  at  the  time of the purchase, to a hospital that has
been issued an active tax exemption identification number  by
the  Department under Section 1g of the Retailers' Occupation
Tax Act.  This paragraph is exempt  from  the  provisions  of
Section 3-55.
    (25)  Beginning  on the effective date of this amendatory
Act of the 92nd General Assembly, personal property sold to a
lessor who leases the property, under a lease of one year  or
longer  executed or in effect at the time of the purchase, to
a governmental body  that  has  been  issued  an  active  tax
exemption  identification  number  by  the  Department  under
Section  1g  of  the  Retailers'  Occupation  Tax  Act.  This
paragraph is exempt from the provisions of Section 3-55.
(Source: P.A. 90-14,  eff.  7-1-97;  90-552,  eff.  12-12-97;
90-605,  eff.  6-30-98;  91-51,  eff.  6-30-99;  91-200, eff.
7-20-99; 91-439, eff. 8-6-99; 91-533, eff.  8-13-99;  91-637,
eff. 8-20-99; 91-644, eff. 8-20-99; revised 9-29-99.)

    Section 20.  The Retailers' Occupation Tax Act is amended
by changing Section 2-5 as follows:

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

    Section  99.  Effective date.  This Act takes effect upon
becoming law.
    Passed in the General Assembly May 09, 2001.
    Approved August 02, 2001.

[ Top ]