State of Illinois
Public Acts
92nd General Assembly

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

Public Act 92-0488

SB730 Enrolled                                 LRB9204809SMdv

    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 3-55 as follows:

    (35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55)
    Sec. 3-55.  Multistate exemption. The tax imposed by this
Act does not apply to the use of tangible  personal  property
in this State under the following circumstances:
    (a)  The   use,  in  this  State,  of  tangible  personal
property  acquired  outside  this  State  by  a   nonresident
individual  and brought into this State by the individual for
his or her own use while temporarily  within  this  State  or
while passing through this State.
    (b)  The   use,  in  this  State,  of  tangible  personal
property by an interstate carrier for hire as  rolling  stock
moving  in interstate commerce or by lessors under a lease of
one year or longer executed or  in  effect  at  the  time  of
purchase of tangible personal property by interstate carriers
for-hire  for  use  as  rolling  stock  moving  in interstate
commerce as long  as  so  used  by  the  interstate  carriers
for-hire,  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.
    (c)  The  use,  in  this  State,  by  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 as long as so used by  the  interstate
carriers    for   hire,   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.
    (d)  The   use,  in  this  State,  of  tangible  personal
property that is acquired outside this State and caused to be
brought into this State by a person who has  already  paid  a
tax in another State in respect to the sale, purchase, or use
of  that  property,  to  the  extent of the amount of the tax
properly due and paid in the other State.
    (e)  The temporary storage, in this  State,  of  tangible
personal  property  that  is  acquired outside this State and
that, after being brought into this  State  and  stored  here
temporarily,   is  used  solely  outside  this  State  or  is
physically attached to or incorporated  into  other  tangible
personal  property that is used solely outside this State, or
is  altered  by   converting,   fabricating,   manufacturing,
printing,  processing,  or  shaping, and, as altered, is used
solely outside this State.
    (f)  The temporary storage  in  this  State  of  building
materials and fixtures that are acquired either in this State
or  outside  this State by an Illinois registered combination
retailer and construction contractor, and that the  purchaser
thereafter  uses  outside  this  State  by incorporating that
property into real estate located outside this State.
    (g)  The use or purchase of tangible personal property by
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.
    (h)  The  use, in this State, of a motor vehicle that was
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
shall be prima facie evidence that the motor vehicle will not
be titled in this State.
    (i)  Beginning  July  1, 1999, the use, in this State, of
fuel acquired outside this State and brought into this  State
in  the  fuel  supply tanks of locomotives engaged in freight
hauling and passenger service for interstate  commerce.  This
subsection is exempt from the provisions of Section 3-90.
    (j)  Beginning  on  January  1, 2002, the use of tangible
personal property purchased from an Illinois  retailer  by  a
taxpayer  engaged  in  centralized  purchasing  activities in
Illinois who will, upon receipt of the property in  Illinois,
temporarily  store  the  property  in  Illinois  (i)  for the
purpose of subsequently transporting it  outside  this  State
for  use  or consumption thereafter solely outside this State
or (ii) for the purpose of being  processed,  fabricated,  or
manufactured  into,  attached  to, or incorporated into other
tangible personal property to  be  transported  outside  this
State  and  thereafter  used  or consumed solely outside this
State.  The Director of  Revenue  shall,  pursuant  to  rules
adopted   in  accordance  with  the  Illinois  Administrative
Procedure Act,  issue  a  permit  to  any  taxpayer  in  good
standing   with  the  Department  who  is  eligible  for  the
exemption under this subsection (j).  The permit issued under
this subsection (j) shall authorize the holder, to the extent
and in the manner specified in the rules adopted  under  this
Act,  to  purchase tangible personal property from a retailer
exempt from the taxes imposed by this Act.   Taxpayers  shall
maintain  all necessary books and records to substantiate the
use and consumption of all such  tangible  personal  property
outside of the State of Illinois.
(Source: P.A.  90-519,  eff.  6-1-98;  90-552, eff. 12-12-97;
91-51, eff.  6-30-99;  91-313,  eff.  7-29-99;  91-587,  eff.
8-14-99; revised 9-29-99.)

    Section  10.   The  Service  Use  Tax  Act  is amended by
changing Section 3-45 as follows:

    (35 ILCS 110/3-45) (from Ch. 120, par. 439.33-45)
    Sec. 3-45.  Multistate exemption. The tax imposed by this
Act does not apply to the use of tangible  personal  property
in this State under the following circumstances:
    (a)  The use, in this State, of property acquired outside
this  State by a nonresident individual and brought into this
State by  the  individual  for  his  or  her  own  use  while
temporarily  within  this State or while passing through this
State.
    (b)  The use, in this State, of property that is acquired
outside this State and that is moved into this State for  use
as rolling stock moving in interstate commerce.
    (c)  The use, in this State, of property that is acquired
outside  this  State and caused to be brought into this State
by a person who has already paid a tax in  another  state  in
respect  to  the  sale, purchase, or use of that property, to
the extent of the amount of the tax properly due and paid  in
the other state.
    (d)  The  temporary  storage,  in this State, of property
that is acquired outside this  State  and  that  after  being
brought  into this State and stored here temporarily, is used
solely outside this State or is  physically  attached  to  or
incorporated  into other property that is used solely outside
this  State,  or  is  altered  by  converting,   fabricating,
manufacturing,  printing,  processing,  or  shaping,  and, as
altered, is used solely outside this State.
    (e)  Beginning July 1, 1999, the use, in this  State,  of
fuel  acquired outside this State and brought into this State
in the fuel supply tanks of locomotives  engaged  in  freight
hauling  and  passenger service for interstate commerce. This
subsection is exempt from the provisions of Section 3-75.
    (f)  Beginning on January 1, 2002, the  use  of  tangible
personal  property  purchased  from an Illinois retailer by a
taxpayer engaged  in  centralized  purchasing  activities  in
Illinois  who will, upon receipt of the property in Illinois,
temporarily store  the  property  in  Illinois  (i)  for  the
purpose  of  subsequently  transporting it outside this State
for use or consumption thereafter solely outside  this  State
or  (ii)  for  the purpose of being processed, fabricated, or
manufactured into, attached to, or  incorporated  into  other
tangible  personal  property  to  be transported outside this
State and thereafter used or  consumed  solely  outside  this
State.   The  Director  of  Revenue  shall, pursuant to rules
adopted  in  accordance  with  the  Illinois   Administrative
Procedure  Act,  issue  a  permit  to  any  taxpayer  in good
standing  with  the  Department  who  is  eligible  for   the
exemption under this subsection (f).  The permit issued under
this subsection (f) shall authorize the holder, to the extent
and  in  the manner specified in the rules adopted under this
Act, to purchase tangible personal property from  a  retailer
exempt  from  the taxes imposed by this Act.  Taxpayers shall
maintain all necessary books and records to substantiate  the
use  and  consumption  of all such tangible personal property
outside of the State of Illinois.
(Source: P.A. 91-51,  eff.  6-30-99;  91-313,  eff.  7-29-99;
91-587, eff. 8-14-99; 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 January  1,  2002,  tangible  personal
property  purchased  from  an Illinois retailer by a taxpayer
engaged in centralized purchasing activities in Illinois  who
will,  upon  receipt of the property in Illinois, temporarily
store the  property  in  Illinois  (i)  for  the  purpose  of
subsequently  transporting  it  outside this State for use or
consumption thereafter solely outside this State or (ii)  for
the  purpose  of being processed, fabricated, or manufactured
into,  attached  to,  or  incorporated  into  other  tangible
personal property to be transported outside  this  State  and
thereafter  used  or consumed solely outside this State.  The
Director of Revenue  shall,  pursuant  to  rules  adopted  in
accordance  with  the  Illinois Administrative Procedure Act,
issue a permit to any taxpayer  in  good  standing  with  the
Department  who  is  eligible  for  the  exemption under this
paragraph (24).  The permit issued under this paragraph  (24)
shall  authorize  the holder, to the extent and in the manner
specified in the rules adopted under this  Act,  to  purchase
tangible  personal  property  from a retailer exempt from the
taxes imposed by this  Act.   Taxpayers  shall  maintain  all
necessary  books  and  records  to  substantiate  the use and
consumption of all such tangible personal property outside of
the State of Illinois.
(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 January  1,  2002,  tangible  personal
property  purchased  from  an Illinois retailer by a taxpayer
engaged in centralized purchasing activities in Illinois  who
will,  upon  receipt of the property in Illinois, temporarily
store the  property  in  Illinois  (i)  for  the  purpose  of
subsequently  transporting  it  outside this State for use or
consumption thereafter solely outside this State or (ii)  for
the  purpose  of being processed, fabricated, or manufactured
into,  attached  to,  or  incorporated  into  other  tangible
personal property to be transported outside  this  State  and
thereafter  used  or consumed solely outside this State.  The
Director of Revenue  shall,  pursuant  to  rules  adopted  in
accordance  with  the  Illinois Administrative Procedure Act,
issue a permit to any taxpayer  in  good  standing  with  the
Department  who  is  eligible  for  the  exemption under this
paragraph (36).  The permit issued under this paragraph  (36)
shall  authorize  the holder, to the extent and in the manner
specified in the rules adopted under this  Act,  to  purchase
tangible  personal  property  from a retailer exempt from the
taxes imposed by this  Act.   Taxpayers  shall  maintain  all
necessary  books  and  records  to  substantiate  the use and
consumption of all such tangible personal property outside of
the State of Illinois.
(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 30, 2001.
    Approved August 23, 2001.
    Effective August 23, 2001.

[ Top ]