SB2086 EngrossedLRB098 06617 HLH 36660 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section
53-5 as follows:
 
6    (35 ILCS 105/3-5)
7    Sec. 3-5. Exemptions. Use of the following tangible
8personal property is exempt from the tax imposed by this Act:
9    (1) Personal property purchased from a corporation,
10society, association, foundation, institution, or
11organization, other than a limited liability company, that is
12organized and operated as a not-for-profit service enterprise
13for the benefit of persons 65 years of age or older if the
14personal property was not purchased by the enterprise for the
15purpose of resale by the enterprise.
16    (2) Personal property purchased by a not-for-profit
17Illinois county fair association for use in conducting,
18operating, or promoting the county fair.
19    (3) Personal property purchased by a not-for-profit arts or
20cultural organization that establishes, by proof required by
21the Department by rule, that it has received an exemption under
22Section 501(c)(3) of the Internal Revenue Code and that is
23organized and operated primarily for the presentation or

 

 

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1support of arts or cultural programming, activities, or
2services. These organizations include, but are not limited to,
3music and dramatic arts organizations such as symphony
4orchestras and theatrical groups, arts and cultural service
5organizations, local arts councils, visual arts organizations,
6and media arts organizations. On and after the effective date
7of this amendatory Act of the 92nd General Assembly, however,
8an entity otherwise eligible for this exemption shall not make
9tax-free purchases unless it has an active identification
10number issued by the Department.
11    (4) Personal property purchased by a governmental body, by
12a corporation, society, association, foundation, or
13institution organized and operated exclusively for charitable,
14religious, or educational purposes, or by a not-for-profit
15corporation, society, association, foundation, institution, or
16organization that has no compensated officers or employees and
17that is organized and operated primarily for the recreation of
18persons 55 years of age or older. A limited liability company
19may qualify for the exemption under this paragraph only if the
20limited liability company is organized and operated
21exclusively for educational purposes. On and after July 1,
221987, however, no entity otherwise eligible for this exemption
23shall make tax-free purchases unless it has an active exemption
24identification number issued by the Department.
25    (5) Until July 1, 2003, a passenger car that is a
26replacement vehicle to the extent that the purchase price of

 

 

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1the car is subject to the Replacement Vehicle Tax.
2    (6) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new and
5used, and including that manufactured on special order,
6certified by the purchaser to be used primarily for graphic
7arts production, and including machinery and equipment
8purchased for lease. Equipment includes chemicals or chemicals
9acting as catalysts but only if the chemicals or chemicals
10acting as catalysts effect a direct and immediate change upon a
11graphic arts product.
12    (7) Farm chemicals.
13    (8) Legal tender, currency, medallions, or gold or silver
14coinage issued by the State of Illinois, the government of the
15United States of America, or the government of any foreign
16country, and bullion.
17    (9) Personal property purchased from a teacher-sponsored
18student organization affiliated with an elementary or
19secondary school located in Illinois.
20    (10) A motor vehicle of the first division, a motor vehicle
21of the second division that is a self-contained motor vehicle
22designed or permanently converted to provide living quarters
23for recreational, camping, or travel use, with direct walk
24through to the living quarters from the driver's seat, or a
25motor vehicle of the second division that is of the van
26configuration designed for the transportation of not less than

 

 

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17 nor more than 16 passengers, as defined in Section 1-146 of
2the Illinois Vehicle Code, that is used for automobile renting,
3as defined in the Automobile Renting Occupation and Use Tax
4Act.
5    (11) Farm machinery and equipment, both new and used,
6including that manufactured on special order, certified by the
7purchaser to be used primarily for production agriculture or
8State or federal agricultural programs, including individual
9replacement parts for the machinery and equipment, including
10machinery and equipment purchased for lease, and including
11implements of husbandry defined in Section 1-130 of the
12Illinois Vehicle Code, farm machinery and agricultural
13chemical and fertilizer spreaders, and nurse wagons required to
14be registered under Section 3-809 of the Illinois Vehicle Code,
15but excluding other motor vehicles required to be registered
16under the Illinois Vehicle Code. Horticultural polyhouses or
17hoop houses used for propagating, growing, or overwintering
18plants shall be considered farm machinery and equipment under
19this item (11). Agricultural chemical tender tanks and dry
20boxes shall include units sold separately from a motor vehicle
21required to be licensed and units sold mounted on a motor
22vehicle required to be licensed if the selling price of the
23tender is separately stated.
24    Farm machinery and equipment shall include precision
25farming equipment that is installed or purchased to be
26installed on farm machinery and equipment including, but not

 

 

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1limited to, tractors, harvesters, sprayers, planters, seeders,
2or spreaders. Precision farming equipment includes, but is not
3limited to, soil testing sensors, computers, monitors,
4software, global positioning and mapping systems, and other
5such equipment.
6    Farm machinery and equipment also includes computers,
7sensors, software, and related equipment used primarily in the
8computer-assisted operation of production agriculture
9facilities, equipment, and activities such as, but not limited
10to, the collection, monitoring, and correlation of animal and
11crop data for the purpose of formulating animal diets and
12agricultural chemicals. This item (11) is exempt from the
13provisions of Section 3-90.
14    (12) Fuel and petroleum products sold to or used by an air
15common carrier, certified by the carrier to be used for
16consumption, shipment, or storage in the conduct of its
17business as an air common carrier, for a flight destined for or
18returning from a location or locations outside the United
19States without regard to previous or subsequent domestic
20stopovers.
21    (13) Proceeds of mandatory service charges separately
22stated on customers' bills for the purchase and consumption of
23food and beverages purchased at retail from a retailer, to the
24extent that the proceeds of the service charge are in fact
25turned over as tips or as a substitute for tips to the
26employees who participate directly in preparing, serving,

 

 

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1hosting or cleaning up the food or beverage function with
2respect to which the service charge is imposed.
3    (14) Until July 1, 2003, oil field exploration, drilling,
4and production equipment, including (i) rigs and parts of rigs,
5rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
6tubular goods, including casing and drill strings, (iii) pumps
7and pump-jack units, (iv) storage tanks and flow lines, (v) any
8individual replacement part for oil field exploration,
9drilling, and production equipment, and (vi) machinery and
10equipment purchased for lease; but excluding motor vehicles
11required to be registered under the Illinois Vehicle Code.
12    (15) Photoprocessing machinery and equipment, including
13repair and replacement parts, both new and used, including that
14manufactured on special order, certified by the purchaser to be
15used primarily for photoprocessing, and including
16photoprocessing machinery and equipment purchased for lease.
17    (16) Until July 1, 2003, and beginning again on the
18effective date of this amendatory Act of the 97th General
19Assembly and thereafter, coal and aggregate exploration,
20mining, offhighway hauling, processing, maintenance, and
21reclamation equipment, including replacement parts and
22equipment, and including equipment purchased for lease, but
23excluding motor vehicles required to be registered under the
24Illinois Vehicle Code.
25    (17) Until July 1, 2003, distillation machinery and
26equipment, sold as a unit or kit, assembled or installed by the

 

 

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1retailer, certified by the user to be used only for the
2production of ethyl alcohol that will be used for consumption
3as motor fuel or as a component of motor fuel for the personal
4use of the user, and not subject to sale or resale.
5    (18) Manufacturing and assembling machinery and equipment
6used primarily in the process of manufacturing or assembling
7tangible personal property for wholesale or retail sale or
8lease, whether that sale or lease is made directly by the
9manufacturer or by some other person, whether the materials
10used in the process are owned by the manufacturer or some other
11person, or whether that sale or lease is made apart from or as
12an incident to the seller's engaging in the service occupation
13of producing machines, tools, dies, jigs, patterns, gauges, or
14other similar items of no commercial value on special order for
15a particular purchaser.
16    (19) Personal property delivered to a purchaser or
17purchaser's donee inside Illinois when the purchase order for
18that personal property was received by a florist located
19outside Illinois who has a florist located inside Illinois
20deliver the personal property.
21    (20) Semen used for artificial insemination of livestock
22for direct agricultural production.
23    (21) Horses, or interests in horses, registered with and
24meeting the requirements of any of the Arabian Horse Club
25Registry of America, Appaloosa Horse Club, American Quarter
26Horse Association, United States Trotting Association, or

 

 

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1Jockey Club, as appropriate, used for purposes of breeding or
2racing for prizes. This item (21) is exempt from the provisions
3of Section 3-90, and the exemption provided for under this item
4(21) applies for all periods beginning May 30, 1995, but no
5claim for credit or refund is allowed on or after January 1,
62008 for such taxes paid during the period beginning May 30,
72000 and ending on January 1, 2008.
8    (22) Computers and communications equipment utilized for
9any hospital purpose and equipment used in the diagnosis,
10analysis, or treatment of hospital patients purchased by a
11lessor who leases the equipment, under a lease of one year or
12longer executed or in effect at the time the lessor would
13otherwise be subject to the tax imposed by this Act, to a
14hospital that has been issued an active tax exemption
15identification number by the Department under Section 1g of the
16Retailers' Occupation Tax Act. If the equipment is leased in a
17manner that does not qualify for this exemption or is used in
18any other non-exempt manner, the lessor shall be liable for the
19tax imposed under this Act or the Service Use Tax Act, as the
20case may be, based on the fair market value of the property at
21the time the non-qualifying use occurs. No lessor shall collect
22or attempt to collect an amount (however designated) that
23purports to reimburse that lessor for the tax imposed by this
24Act or the Service Use Tax Act, as the case may be, if the tax
25has not been paid by the lessor. If a lessor improperly
26collects any such amount from the lessee, the lessee shall have

 

 

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1a legal right to claim a refund of that amount from the lessor.
2If, however, that amount is not refunded to the lessee for any
3reason, the lessor is liable to pay that amount to the
4Department.
5    (23) Personal property purchased by a lessor who leases the
6property, under a lease of one year or longer executed or in
7effect at the time the lessor would otherwise be subject to the
8tax imposed by this Act, to a governmental body that has been
9issued an active sales tax exemption identification number by
10the Department under Section 1g of the Retailers' Occupation
11Tax Act. If the property is leased in a manner that does not
12qualify for this exemption or used in any other non-exempt
13manner, the lessor shall be liable for the tax imposed under
14this Act or the Service Use Tax Act, as the case may be, based
15on the fair market value of the property at the time the
16non-qualifying use occurs. No lessor shall collect or attempt
17to collect an amount (however designated) that purports to
18reimburse that lessor for the tax imposed by this Act or the
19Service Use Tax Act, as the case may be, if the tax has not been
20paid by the lessor. If a lessor improperly collects any such
21amount from the lessee, the lessee shall have a legal right to
22claim a refund of that amount from the lessor. If, however,
23that amount is not refunded to the lessee for any reason, the
24lessor is liable to pay that amount to the Department.
25    (24) Beginning with taxable years ending on or after
26December 31, 1995 and ending with taxable years ending on or

 

 

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1before December 31, 2004, personal property that is donated for
2disaster relief to be used in a State or federally declared
3disaster area in Illinois or bordering Illinois by a
4manufacturer or retailer that is registered in this State to a
5corporation, society, association, foundation, or institution
6that has been issued a sales tax exemption identification
7number by the Department that assists victims of the disaster
8who reside within the declared disaster area.
9    (25) Beginning with taxable years ending on or after
10December 31, 1995 and ending with taxable years ending on or
11before December 31, 2004, personal property that is used in the
12performance of infrastructure repairs in this State, including
13but not limited to municipal roads and streets, access roads,
14bridges, sidewalks, waste disposal systems, water and sewer
15line extensions, water distribution and purification
16facilities, storm water drainage and retention facilities, and
17sewage treatment facilities, resulting from a State or
18federally declared disaster in Illinois or bordering Illinois
19when such repairs are initiated on facilities located in the
20declared disaster area within 6 months after the disaster.
21    (26) Beginning July 1, 1999, game or game birds purchased
22at a "game breeding and hunting preserve area" as that term is
23used in the Wildlife Code. This paragraph is exempt from the
24provisions of Section 3-90.
25    (27) A motor vehicle, as that term is defined in Section
261-146 of the Illinois Vehicle Code, that is donated to a

 

 

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1corporation, limited liability company, society, association,
2foundation, or institution that is determined by the Department
3to be organized and operated exclusively for educational
4purposes. For purposes of this exemption, "a corporation,
5limited liability company, society, association, foundation,
6or institution organized and operated exclusively for
7educational purposes" means all tax-supported public schools,
8private schools that offer systematic instruction in useful
9branches of learning by methods common to public schools and
10that compare favorably in their scope and intensity with the
11course of study presented in tax-supported schools, and
12vocational or technical schools or institutes organized and
13operated exclusively to provide a course of study of not less
14than 6 weeks duration and designed to prepare individuals to
15follow a trade or to pursue a manual, technical, mechanical,
16industrial, business, or commercial occupation.
17    (28) Beginning January 1, 2000, personal property,
18including food, purchased through fundraising events for the
19benefit of a public or private elementary or secondary school,
20a group of those schools, or one or more school districts if
21the events are sponsored by an entity recognized by the school
22district that consists primarily of volunteers and includes
23parents and teachers of the school children. This paragraph
24does not apply to fundraising events (i) for the benefit of
25private home instruction or (ii) for which the fundraising
26entity purchases the personal property sold at the events from

 

 

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1another individual or entity that sold the property for the
2purpose of resale by the fundraising entity and that profits
3from the sale to the fundraising entity. This paragraph is
4exempt from the provisions of Section 3-90.
5    (29) Beginning January 1, 2000 and through December 31,
62001, new or used automatic vending machines that prepare and
7serve hot food and beverages, including coffee, soup, and other
8items, and replacement parts for these machines. Beginning
9January 1, 2002 and through June 30, 2003, machines and parts
10for machines used in commercial, coin-operated amusement and
11vending business if a use or occupation tax is paid on the
12gross receipts derived from the use of the commercial,
13coin-operated amusement and vending machines. This paragraph
14is exempt from the provisions of Section 3-90.
15    (30) Beginning January 1, 2001 and through June 30, 2016,
16food for human consumption that is to be consumed off the
17premises where it is sold (other than alcoholic beverages, soft
18drinks, and food that has been prepared for immediate
19consumption) and prescription and nonprescription medicines,
20drugs, medical appliances, and insulin, urine testing
21materials, syringes, and needles used by diabetics, for human
22use, when purchased for use by a person receiving medical
23assistance under Article V of the Illinois Public Aid Code who
24resides in a licensed long-term care facility, as defined in
25the Nursing Home Care Act, or in a licensed facility as defined
26in the ID/DD Community Care Act or the Specialized Mental

 

 

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1Health Rehabilitation Act.
2    (31) Beginning on the effective date of this amendatory Act
3of the 92nd General Assembly, computers and communications
4equipment utilized for any hospital purpose and equipment used
5in the diagnosis, analysis, or treatment of hospital patients
6purchased by a lessor who leases the equipment, under a lease
7of one year or longer executed or in effect at the time the
8lessor would otherwise be subject to the tax imposed by this
9Act, to a hospital that has been issued an active tax exemption
10identification number by the Department under Section 1g of the
11Retailers' Occupation Tax Act. If the equipment is leased in a
12manner that does not qualify for this exemption or is used in
13any other nonexempt manner, the lessor shall be liable for the
14tax imposed under this Act or the Service Use Tax Act, as the
15case may be, based on the fair market value of the property at
16the time the nonqualifying use occurs. No lessor shall collect
17or attempt to collect an amount (however designated) that
18purports to reimburse that lessor for the tax imposed by this
19Act or the Service Use Tax Act, as the case may be, if the tax
20has not been paid by the lessor. If a lessor improperly
21collects any such amount from the lessee, the lessee shall have
22a legal right to claim a refund of that amount from the lessor.
23If, however, that amount is not refunded to the lessee for any
24reason, the lessor is liable to pay that amount to the
25Department. This paragraph is exempt from the provisions of
26Section 3-90.

 

 

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1    (32) Beginning on the effective date of this amendatory Act
2of the 92nd General Assembly, personal property purchased by a
3lessor who leases the property, under a lease of one year or
4longer executed or in effect at the time the lessor would
5otherwise be subject to the tax imposed by this Act, to a
6governmental body that has been issued an active sales tax
7exemption identification number by the Department under
8Section 1g of the Retailers' Occupation Tax Act. If the
9property is leased in a manner that does not qualify for this
10exemption or used in any other nonexempt manner, the lessor
11shall be liable for the tax imposed under this Act or the
12Service Use Tax Act, as the case may be, based on the fair
13market value of the property at the time the nonqualifying use
14occurs. No lessor shall collect or attempt to collect an amount
15(however designated) that purports to reimburse that lessor for
16the tax imposed by this Act or the Service Use Tax Act, as the
17case may be, if the tax has not been paid by the lessor. If a
18lessor improperly collects any such amount from the lessee, the
19lessee shall have a legal right to claim a refund of that
20amount from the lessor. If, however, that amount is not
21refunded to the lessee for any reason, the lessor is liable to
22pay that amount to the Department. This paragraph is exempt
23from the provisions of Section 3-90.
24    (33) On and after July 1, 2003 and through June 30, 2004,
25the use in this State of motor vehicles of the second division
26with a gross vehicle weight in excess of 8,000 pounds and that

 

 

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1are subject to the commercial distribution fee imposed under
2Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
31, 2004 and through June 30, 2005, the use in this State of
4motor vehicles of the second division: (i) with a gross vehicle
5weight rating in excess of 8,000 pounds; (ii) that are subject
6to the commercial distribution fee imposed under Section
73-815.1 of the Illinois Vehicle Code; and (iii) that are
8primarily used for commercial purposes. Through June 30, 2005,
9this exemption applies to repair and replacement parts added
10after the initial purchase of such a motor vehicle if that
11motor vehicle is used in a manner that would qualify for the
12rolling stock exemption otherwise provided for in this Act. For
13purposes of this paragraph, the term "used for commercial
14purposes" means the transportation of persons or property in
15furtherance of any commercial or industrial enterprise,
16whether for-hire or not.
17    (34) Beginning January 1, 2008, tangible personal property
18used in the construction or maintenance of a community water
19supply, as defined under Section 3.145 of the Environmental
20Protection Act, that is operated by a not-for-profit
21corporation that holds a valid water supply permit issued under
22Title IV of the Environmental Protection Act. This paragraph is
23exempt from the provisions of Section 3-90.
24    (35) Beginning January 1, 2010, materials, parts,
25equipment, components, and furnishings incorporated into or
26upon an aircraft as part of the modification, refurbishment,

 

 

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1completion, replacement, repair, or maintenance of the
2aircraft. This exemption includes consumable supplies used in
3the modification, refurbishment, completion, replacement,
4repair, and maintenance of aircraft, but excludes any
5materials, parts, equipment, components, and consumable
6supplies used in the modification, replacement, repair, and
7maintenance of aircraft engines or power plants, whether such
8engines or power plants are installed or uninstalled upon any
9such aircraft. "Consumable supplies" include, but are not
10limited to, adhesive, tape, sandpaper, general purpose
11lubricants, cleaning solution, latex gloves, and protective
12films. This exemption applies only to those organizations that
13(i) hold an Air Agency Certificate and are empowered to operate
14an approved repair station by the Federal Aviation
15Administration, (ii) have a Class IV Rating, and (iii) conduct
16operations in accordance with Part 145 of the Federal Aviation
17Regulations. The exemption does not include aircraft operated
18by a commercial air carrier providing scheduled passenger air
19service pursuant to authority issued under Part 121 or Part 129
20of the Federal Aviation Regulations.
21    (36) Tangible personal property purchased by a
22public-facilities corporation, as described in Section
2311-65-10 of the Illinois Municipal Code, for purposes of
24constructing or furnishing a municipal convention hall, but
25only if the legal title to the municipal convention hall is
26transferred to the municipality without any further

 

 

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1consideration by or on behalf of the municipality at the time
2of the completion of the municipal convention hall or upon the
3retirement or redemption of any bonds or other debt instruments
4issued by the public-facilities corporation in connection with
5the development of the municipal convention hall. This
6exemption includes existing public-facilities corporations as
7provided in Section 11-65-25 of the Illinois Municipal Code.
8This paragraph is exempt from the provisions of Section 3-90.
9    (37) Until January 1, 2015, firearm safety devices,
10including safes, lock boxes, trigger and barrel locks, and
11other items designed to enhance home firearm safety.
12(Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
1396-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
147-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431, eff.
158-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12.)
 
16    Section 10. The Service Use Tax Act is amended by changing
17Section 3-5 as follows:
 
18    (35 ILCS 110/3-5)
19    Sec. 3-5. Exemptions. Use of the following tangible
20personal property is exempt from the tax imposed by this Act:
21    (1) Personal property purchased from a corporation,
22society, association, foundation, institution, or
23organization, other than a limited liability company, that is
24organized and operated as a not-for-profit service enterprise

 

 

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1for the benefit of persons 65 years of age or older if the
2personal property was not purchased by the enterprise for the
3purpose of resale by the enterprise.
4    (2) Personal property purchased by a non-profit Illinois
5county fair association for use in conducting, operating, or
6promoting the county fair.
7    (3) Personal property purchased by a not-for-profit arts or
8cultural organization that establishes, by proof required by
9the Department by rule, that it has received an exemption under
10Section 501(c)(3) of the Internal Revenue Code and that is
11organized and operated primarily for the presentation or
12support of arts or cultural programming, activities, or
13services. These organizations include, but are not limited to,
14music and dramatic arts organizations such as symphony
15orchestras and theatrical groups, arts and cultural service
16organizations, local arts councils, visual arts organizations,
17and media arts organizations. On and after the effective date
18of this amendatory Act of the 92nd General Assembly, however,
19an entity otherwise eligible for this exemption shall not make
20tax-free purchases unless it has an active identification
21number issued by the Department.
22    (4) Legal tender, currency, medallions, or gold or silver
23coinage issued by the State of Illinois, the government of the
24United States of America, or the government of any foreign
25country, and bullion.
26    (5) Until July 1, 2003 and beginning again on September 1,

 

 

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12004 through August 30, 2014, graphic arts machinery and
2equipment, including repair and replacement parts, both new and
3used, and including that manufactured on special order or
4purchased for lease, certified by the purchaser to be used
5primarily for graphic arts production. Equipment includes
6chemicals or chemicals acting as catalysts but only if the
7chemicals or chemicals acting as catalysts effect a direct and
8immediate change upon a graphic arts product.
9    (6) Personal property purchased from a teacher-sponsored
10student organization affiliated with an elementary or
11secondary school located in Illinois.
12    (7) Farm machinery and equipment, both new and used,
13including that manufactured on special order, certified by the
14purchaser to be used primarily for production agriculture or
15State or federal agricultural programs, including individual
16replacement parts for the machinery and equipment, including
17machinery and equipment purchased for lease, and including
18implements of husbandry defined in Section 1-130 of the
19Illinois Vehicle Code, farm machinery and agricultural
20chemical and fertilizer spreaders, and nurse wagons required to
21be registered under Section 3-809 of the Illinois Vehicle Code,
22but excluding other motor vehicles required to be registered
23under the Illinois Vehicle Code. Horticultural polyhouses or
24hoop houses used for propagating, growing, or overwintering
25plants shall be considered farm machinery and equipment under
26this item (7). Agricultural chemical tender tanks and dry boxes

 

 

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1shall include units sold separately from a motor vehicle
2required to be licensed and units sold mounted on a motor
3vehicle required to be licensed if the selling price of the
4tender is separately stated.
5    Farm machinery and equipment shall include precision
6farming equipment that is installed or purchased to be
7installed on farm machinery and equipment including, but not
8limited to, tractors, harvesters, sprayers, planters, seeders,
9or spreaders. Precision farming equipment includes, but is not
10limited to, soil testing sensors, computers, monitors,
11software, global positioning and mapping systems, and other
12such equipment.
13    Farm machinery and equipment also includes computers,
14sensors, software, and related equipment used primarily in the
15computer-assisted operation of production agriculture
16facilities, equipment, and activities such as, but not limited
17to, the collection, monitoring, and correlation of animal and
18crop data for the purpose of formulating animal diets and
19agricultural chemicals. This item (7) is exempt from the
20provisions of Section 3-75.
21    (8) Fuel and petroleum products sold to or used by an air
22common carrier, certified by the carrier to be used for
23consumption, shipment, or storage in the conduct of its
24business as an air common carrier, for a flight destined for or
25returning from a location or locations outside the United
26States without regard to previous or subsequent domestic

 

 

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1stopovers.
2    (9) Proceeds of mandatory service charges separately
3stated on customers' bills for the purchase and consumption of
4food and beverages acquired as an incident to the purchase of a
5service from a serviceman, to the extent that the proceeds of
6the service charge are in fact turned over as tips or as a
7substitute for tips to the employees who participate directly
8in preparing, serving, hosting or cleaning up the food or
9beverage function with respect to which the service charge is
10imposed.
11    (10) Until July 1, 2003, oil field exploration, drilling,
12and production equipment, including (i) rigs and parts of rigs,
13rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
14tubular goods, including casing and drill strings, (iii) pumps
15and pump-jack units, (iv) storage tanks and flow lines, (v) any
16individual replacement part for oil field exploration,
17drilling, and production equipment, and (vi) machinery and
18equipment purchased for lease; but excluding motor vehicles
19required to be registered under the Illinois Vehicle Code.
20    (11) Proceeds from the sale of photoprocessing machinery
21and equipment, including repair and replacement parts, both new
22and used, including that manufactured on special order,
23certified by the purchaser to be used primarily for
24photoprocessing, and including photoprocessing machinery and
25equipment purchased for lease.
26    (12) Until July 1, 2003, and beginning again on the

 

 

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1effective date of this amendatory Act of the 97th General
2Assembly and thereafter, coal and aggregate exploration,
3mining, offhighway hauling, processing, maintenance, and
4reclamation equipment, including replacement parts and
5equipment, and including equipment purchased for lease, but
6excluding motor vehicles required to be registered under the
7Illinois Vehicle Code.
8    (13) Semen used for artificial insemination of livestock
9for direct agricultural production.
10    (14) Horses, or interests in horses, registered with and
11meeting the requirements of any of the Arabian Horse Club
12Registry of America, Appaloosa Horse Club, American Quarter
13Horse Association, United States Trotting Association, or
14Jockey Club, as appropriate, used for purposes of breeding or
15racing for prizes. This item (14) is exempt from the provisions
16of Section 3-75, and the exemption provided for under this item
17(14) applies for all periods beginning May 30, 1995, but no
18claim for credit or refund is allowed on or after the effective
19date of this amendatory Act of the 95th General Assembly for
20such taxes paid during the period beginning May 30, 2000 and
21ending on the effective date of this amendatory Act of the 95th
22General Assembly.
23    (15) Computers and communications equipment utilized for
24any hospital purpose and equipment used in the diagnosis,
25analysis, or treatment of hospital patients purchased by a
26lessor who leases the equipment, under a lease of one year or

 

 

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1longer executed or in effect at the time the lessor would
2otherwise be subject to the tax imposed by this Act, to a
3hospital that has been issued an active tax exemption
4identification number by the Department under Section 1g of the
5Retailers' Occupation Tax Act. If the equipment is leased in a
6manner that does not qualify for this exemption or is used in
7any other non-exempt manner, the lessor shall be liable for the
8tax imposed under this Act or the Use Tax Act, as the case may
9be, based on the fair market value of the property at the time
10the non-qualifying use occurs. No lessor shall collect or
11attempt to collect an amount (however designated) that purports
12to reimburse that lessor for the tax imposed by this Act or the
13Use Tax Act, as the case may be, if the tax has not been paid by
14the lessor. If a lessor improperly collects any such amount
15from the lessee, the lessee shall have a legal right to claim a
16refund of that amount from the lessor. If, however, that amount
17is not refunded to the lessee for any reason, the lessor is
18liable to pay that amount to the Department.
19    (16) Personal property purchased by a lessor who leases the
20property, under a lease of one year or longer executed or in
21effect at the time the lessor would otherwise be subject to the
22tax imposed by this Act, to a governmental body that has been
23issued an active tax exemption identification number by the
24Department under Section 1g of the Retailers' Occupation Tax
25Act. If the property is leased in a manner that does not
26qualify for this exemption or is used in any other non-exempt

 

 

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1manner, the lessor shall be liable for the tax imposed under
2this Act or the Use Tax Act, as the case may be, based on the
3fair market value of the property at the time the
4non-qualifying use occurs. No lessor shall collect or attempt
5to collect an amount (however designated) that purports to
6reimburse that lessor for the tax imposed by this Act or the
7Use Tax Act, as the case may be, if the tax has not been paid by
8the lessor. If a lessor improperly collects any such amount
9from the lessee, the lessee shall have a legal right to claim a
10refund of that amount from the lessor. If, however, that amount
11is not refunded to the lessee for any reason, the lessor is
12liable to pay that amount to the Department.
13    (17) Beginning with taxable years ending on or after
14December 31, 1995 and ending with taxable years ending on or
15before December 31, 2004, personal property that is donated for
16disaster relief to be used in a State or federally declared
17disaster area in Illinois or bordering Illinois by a
18manufacturer or retailer that is registered in this State to a
19corporation, society, association, foundation, or institution
20that has been issued a sales tax exemption identification
21number by the Department that assists victims of the disaster
22who reside within the declared disaster area.
23    (18) Beginning with taxable years ending on or after
24December 31, 1995 and ending with taxable years ending on or
25before December 31, 2004, personal property that is used in the
26performance of infrastructure repairs in this State, including

 

 

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1but not limited to municipal roads and streets, access roads,
2bridges, sidewalks, waste disposal systems, water and sewer
3line extensions, water distribution and purification
4facilities, storm water drainage and retention facilities, and
5sewage treatment facilities, resulting from a State or
6federally declared disaster in Illinois or bordering Illinois
7when such repairs are initiated on facilities located in the
8declared disaster area within 6 months after the disaster.
9    (19) Beginning July 1, 1999, game or game birds purchased
10at a "game breeding and hunting preserve area" as that term is
11used in the Wildlife Code. This paragraph is exempt from the
12provisions of Section 3-75.
13    (20) A motor vehicle, as that term is defined in Section
141-146 of the Illinois Vehicle Code, that is donated to a
15corporation, limited liability company, society, association,
16foundation, or institution that is determined by the Department
17to be organized and operated exclusively for educational
18purposes. For purposes of this exemption, "a corporation,
19limited liability company, society, association, foundation,
20or institution organized and operated exclusively for
21educational purposes" means all tax-supported public schools,
22private schools that offer systematic instruction in useful
23branches of learning by methods common to public schools and
24that compare favorably in their scope and intensity with the
25course of study presented in tax-supported schools, and
26vocational or technical schools or institutes organized and

 

 

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1operated exclusively to provide a course of study of not less
2than 6 weeks duration and designed to prepare individuals to
3follow a trade or to pursue a manual, technical, mechanical,
4industrial, business, or commercial occupation.
5    (21) Beginning January 1, 2000, personal property,
6including food, purchased through fundraising events for the
7benefit of a public or private elementary or secondary school,
8a group of those schools, or one or more school districts if
9the events are sponsored by an entity recognized by the school
10district that consists primarily of volunteers and includes
11parents and teachers of the school children. This paragraph
12does not apply to fundraising events (i) for the benefit of
13private home instruction or (ii) for which the fundraising
14entity purchases the personal property sold at the events from
15another individual or entity that sold the property for the
16purpose of resale by the fundraising entity and that profits
17from the sale to the fundraising entity. This paragraph is
18exempt from the provisions of Section 3-75.
19    (22) Beginning January 1, 2000 and through December 31,
202001, new or used automatic vending machines that prepare and
21serve hot food and beverages, including coffee, soup, and other
22items, and replacement parts for these machines. Beginning
23January 1, 2002 and through June 30, 2003, machines and parts
24for machines used in commercial, coin-operated amusement and
25vending business if a use or occupation tax is paid on the
26gross receipts derived from the use of the commercial,

 

 

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1coin-operated amusement and vending machines. This paragraph
2is exempt from the provisions of Section 3-75.
3    (23) Beginning August 23, 2001 and through June 30, 2016,
4food for human consumption that is to be consumed off the
5premises where it is sold (other than alcoholic beverages, soft
6drinks, and food that has been prepared for immediate
7consumption) and prescription and nonprescription medicines,
8drugs, medical appliances, and insulin, urine testing
9materials, syringes, and needles used by diabetics, for human
10use, when purchased for use by a person receiving medical
11assistance under Article V of the Illinois Public Aid Code who
12resides in a licensed long-term care facility, as defined in
13the Nursing Home Care Act, or in a licensed facility as defined
14in the ID/DD Community Care Act or the Specialized Mental
15Health Rehabilitation Act.
16    (24) Beginning on the effective date of this amendatory Act
17of the 92nd General Assembly, computers and communications
18equipment utilized for any hospital purpose and equipment used
19in the diagnosis, analysis, or treatment of hospital patients
20purchased by a lessor who leases the equipment, under a lease
21of one year or longer executed or in effect at the time the
22lessor would otherwise be subject to the tax imposed by this
23Act, to a hospital that has been issued an active tax exemption
24identification number by the Department under Section 1g of the
25Retailers' Occupation Tax Act. If the equipment is leased in a
26manner that does not qualify for this exemption or is used in

 

 

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1any other nonexempt manner, the lessor shall be liable for the
2tax imposed under this Act or the Use Tax Act, as the case may
3be, based on the fair market value of the property at the time
4the nonqualifying use occurs. No lessor shall collect or
5attempt to collect an amount (however designated) that purports
6to reimburse that lessor for the tax imposed by this Act or the
7Use Tax Act, as the case may be, if the tax has not been paid by
8the lessor. If a lessor improperly collects any such amount
9from the lessee, the lessee shall have a legal right to claim a
10refund of that amount from the lessor. If, however, that amount
11is not refunded to the lessee for any reason, the lessor is
12liable to pay that amount to the Department. This paragraph is
13exempt from the provisions of Section 3-75.
14    (25) Beginning on the effective date of this amendatory Act
15of the 92nd General Assembly, personal property purchased by a
16lessor who leases the property, under a lease of one year or
17longer executed or in effect at the time the lessor would
18otherwise be subject to the tax imposed by this Act, to a
19governmental body that has been issued an active tax exemption
20identification number by the Department under Section 1g of the
21Retailers' Occupation Tax Act. If the property is leased in a
22manner that does not qualify for this exemption or is used in
23any other nonexempt manner, the lessor shall be liable for the
24tax imposed under this Act or the Use Tax Act, as the case may
25be, based on the fair market value of the property at the time
26the nonqualifying use occurs. No lessor shall collect or

 

 

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1attempt to collect an amount (however designated) that purports
2to reimburse that lessor for the tax imposed by this Act or the
3Use Tax Act, as the case may be, if the tax has not been paid by
4the lessor. If a lessor improperly collects any such amount
5from the lessee, the lessee shall have a legal right to claim a
6refund of that amount from the lessor. If, however, that amount
7is not refunded to the lessee for any reason, the lessor is
8liable to pay that amount to the Department. This paragraph is
9exempt from the provisions of Section 3-75.
10    (26) Beginning January 1, 2008, tangible personal property
11used in the construction or maintenance of a community water
12supply, as defined under Section 3.145 of the Environmental
13Protection Act, that is operated by a not-for-profit
14corporation that holds a valid water supply permit issued under
15Title IV of the Environmental Protection Act. This paragraph is
16exempt from the provisions of Section 3-75.
17    (27) Beginning January 1, 2010, materials, parts,
18equipment, components, and furnishings incorporated into or
19upon an aircraft as part of the modification, refurbishment,
20completion, replacement, repair, or maintenance of the
21aircraft. This exemption includes consumable supplies used in
22the modification, refurbishment, completion, replacement,
23repair, and maintenance of aircraft, but excludes any
24materials, parts, equipment, components, and consumable
25supplies used in the modification, replacement, repair, and
26maintenance of aircraft engines or power plants, whether such

 

 

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1engines or power plants are installed or uninstalled upon any
2such aircraft. "Consumable supplies" include, but are not
3limited to, adhesive, tape, sandpaper, general purpose
4lubricants, cleaning solution, latex gloves, and protective
5films. This exemption applies only to those organizations that
6(i) hold an Air Agency Certificate and are empowered to operate
7an approved repair station by the Federal Aviation
8Administration, (ii) have a Class IV Rating, and (iii) conduct
9operations in accordance with Part 145 of the Federal Aviation
10Regulations. The exemption does not include aircraft operated
11by a commercial air carrier providing scheduled passenger air
12service pursuant to authority issued under Part 121 or Part 129
13of the Federal Aviation Regulations.
14    (28) Tangible personal property purchased by a
15public-facilities corporation, as described in Section
1611-65-10 of the Illinois Municipal Code, for purposes of
17constructing or furnishing a municipal convention hall, but
18only if the legal title to the municipal convention hall is
19transferred to the municipality without any further
20consideration by or on behalf of the municipality at the time
21of the completion of the municipal convention hall or upon the
22retirement or redemption of any bonds or other debt instruments
23issued by the public-facilities corporation in connection with
24the development of the municipal convention hall. This
25exemption includes existing public-facilities corporations as
26provided in Section 11-65-25 of the Illinois Municipal Code.

 

 

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1This paragraph is exempt from the provisions of Section 3-75.
2    (29) Until January 1, 2015, firearm safety devices,
3including safes, lock boxes, trigger and barrel locks, and
4other items designed to enhance home firearm safety.
5(Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
696-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
77-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431, eff.
88-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12.)
 
9    Section 15. The Service Occupation Tax Act is amended by
10changing Section 3-5 as follows:
 
11    (35 ILCS 115/3-5)
12    Sec. 3-5. Exemptions. The following tangible personal
13property is exempt from the tax imposed by this Act:
14    (1) Personal property sold by a corporation, society,
15association, foundation, institution, or organization, other
16than a limited liability company, that is organized and
17operated as a not-for-profit service enterprise for the benefit
18of persons 65 years of age or older if the personal property
19was not purchased by the enterprise for the purpose of resale
20by the enterprise.
21    (2) Personal property purchased by a not-for-profit
22Illinois county fair association for use in conducting,
23operating, or promoting the county fair.
24    (3) Personal property purchased by any not-for-profit arts

 

 

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1or cultural organization that establishes, by proof required by
2the Department by rule, that it has received an exemption under
3Section 501(c)(3) of the Internal Revenue Code and that is
4organized and operated primarily for the presentation or
5support of arts or cultural programming, activities, or
6services. These organizations include, but are not limited to,
7music and dramatic arts organizations such as symphony
8orchestras and theatrical groups, arts and cultural service
9organizations, local arts councils, visual arts organizations,
10and media arts organizations. On and after the effective date
11of this amendatory Act of the 92nd General Assembly, however,
12an entity otherwise eligible for this exemption shall not make
13tax-free purchases unless it has an active identification
14number issued by the Department.
15    (4) Legal tender, currency, medallions, or gold or silver
16coinage issued by the State of Illinois, the government of the
17United States of America, or the government of any foreign
18country, and bullion.
19    (5) Until July 1, 2003 and beginning again on September 1,
202004 through August 30, 2014, graphic arts machinery and
21equipment, including repair and replacement parts, both new and
22used, and including that manufactured on special order or
23purchased for lease, certified by the purchaser to be used
24primarily for graphic arts production. Equipment includes
25chemicals or chemicals acting as catalysts but only if the
26chemicals or chemicals acting as catalysts effect a direct and

 

 

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1immediate change upon a graphic arts product.
2    (6) Personal property sold by a teacher-sponsored student
3organization affiliated with an elementary or secondary school
4located in Illinois.
5    (7) Farm machinery and equipment, both new and used,
6including that manufactured on special order, certified by the
7purchaser to be used primarily for production agriculture or
8State or federal agricultural programs, including individual
9replacement parts for the machinery and equipment, including
10machinery and equipment purchased for lease, and including
11implements of husbandry defined in Section 1-130 of the
12Illinois Vehicle Code, farm machinery and agricultural
13chemical and fertilizer spreaders, and nurse wagons required to
14be registered under Section 3-809 of the Illinois Vehicle Code,
15but excluding other motor vehicles required to be registered
16under the Illinois Vehicle Code. Horticultural polyhouses or
17hoop houses used for propagating, growing, or overwintering
18plants shall be considered farm machinery and equipment under
19this item (7). Agricultural chemical tender tanks and dry boxes
20shall include units sold separately from a motor vehicle
21required to be licensed and units sold mounted on a motor
22vehicle required to be licensed if the selling price of the
23tender is separately stated.
24    Farm machinery and equipment shall include precision
25farming equipment that is installed or purchased to be
26installed on farm machinery and equipment including, but not

 

 

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1limited to, tractors, harvesters, sprayers, planters, seeders,
2or spreaders. Precision farming equipment includes, but is not
3limited to, soil testing sensors, computers, monitors,
4software, global positioning and mapping systems, and other
5such equipment.
6    Farm machinery and equipment also includes computers,
7sensors, software, and related equipment used primarily in the
8computer-assisted operation of production agriculture
9facilities, equipment, and activities such as, but not limited
10to, the collection, monitoring, and correlation of animal and
11crop data for the purpose of formulating animal diets and
12agricultural chemicals. This item (7) is exempt from the
13provisions of Section 3-55.
14    (8) Fuel and petroleum products sold to or used by an air
15common carrier, certified by the carrier to be used for
16consumption, shipment, or storage in the conduct of its
17business as an air common carrier, for a flight destined for or
18returning from a location or locations outside the United
19States without regard to previous or subsequent domestic
20stopovers.
21    (9) Proceeds of mandatory service charges separately
22stated on customers' bills for the purchase and consumption of
23food and beverages, to the extent that the proceeds of the
24service charge are in fact turned over as tips or as a
25substitute for tips to the employees who participate directly
26in preparing, serving, hosting or cleaning up the food or

 

 

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1beverage function with respect to which the service charge is
2imposed.
3    (10) Until July 1, 2003, oil field exploration, drilling,
4and production equipment, including (i) rigs and parts of rigs,
5rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
6tubular goods, including casing and drill strings, (iii) pumps
7and pump-jack units, (iv) storage tanks and flow lines, (v) any
8individual replacement part for oil field exploration,
9drilling, and production equipment, and (vi) machinery and
10equipment purchased for lease; but excluding motor vehicles
11required to be registered under the Illinois Vehicle Code.
12    (11) Photoprocessing machinery and equipment, including
13repair and replacement parts, both new and used, including that
14manufactured on special order, certified by the purchaser to be
15used primarily for photoprocessing, and including
16photoprocessing machinery and equipment purchased for lease.
17    (12) Until July 1, 2003, and beginning again on the
18effective date of this amendatory Act of the 97th General
19Assembly and thereafter, coal and aggregate exploration,
20mining, offhighway hauling, processing, maintenance, and
21reclamation equipment, including replacement parts and
22equipment, and including equipment purchased for lease, but
23excluding motor vehicles required to be registered under the
24Illinois Vehicle Code.
25    (13) Beginning January 1, 1992 and through June 30, 2016,
26food for human consumption that is to be consumed off the

 

 

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1premises where it is sold (other than alcoholic beverages, soft
2drinks and food that has been prepared for immediate
3consumption) and prescription and non-prescription medicines,
4drugs, medical appliances, and insulin, urine testing
5materials, syringes, and needles used by diabetics, for human
6use, when purchased for use by a person receiving medical
7assistance under Article V of the Illinois Public Aid Code who
8resides in a licensed long-term care facility, as defined in
9the Nursing Home Care Act, or in a licensed facility as defined
10in the ID/DD Community Care Act or the Specialized Mental
11Health Rehabilitation Act.
12    (14) Semen used for artificial insemination of livestock
13for direct agricultural production.
14    (15) Horses, or interests in horses, registered with and
15meeting the requirements of any of the Arabian Horse Club
16Registry of America, Appaloosa Horse Club, American Quarter
17Horse Association, United States Trotting Association, or
18Jockey Club, as appropriate, used for purposes of breeding or
19racing for prizes. This item (15) is exempt from the provisions
20of Section 3-55, and the exemption provided for under this item
21(15) applies for all periods beginning May 30, 1995, but no
22claim for credit or refund is allowed on or after January 1,
232008 (the effective date of Public Act 95-88) for such taxes
24paid during the period beginning May 30, 2000 and ending on
25January 1, 2008 (the effective date of Public Act 95-88).
26    (16) Computers and communications equipment utilized for

 

 

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1any hospital purpose and equipment used in the diagnosis,
2analysis, or treatment of hospital patients sold to a lessor
3who leases the equipment, under a lease of one year or longer
4executed or in effect at the time of the purchase, to a
5hospital that has been issued an active tax exemption
6identification number by the Department under Section 1g of the
7Retailers' Occupation Tax Act.
8    (17) Personal property sold to a lessor who leases the
9property, under a lease of one year or longer executed or in
10effect at the time of the purchase, to a governmental body that
11has been issued an active tax exemption identification number
12by the Department under Section 1g of the Retailers' Occupation
13Tax Act.
14    (18) Beginning with taxable years ending on or after
15December 31, 1995 and ending with taxable years ending on or
16before December 31, 2004, personal property that is donated for
17disaster relief to be used in a State or federally declared
18disaster area in Illinois or bordering Illinois by a
19manufacturer or retailer that is registered in this State to a
20corporation, society, association, foundation, or institution
21that has been issued a sales tax exemption identification
22number by the Department that assists victims of the disaster
23who reside within the declared disaster area.
24    (19) Beginning with taxable years ending on or after
25December 31, 1995 and ending with taxable years ending on or
26before December 31, 2004, personal property that is used in the

 

 

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1performance of infrastructure repairs in this State, including
2but not limited to municipal roads and streets, access roads,
3bridges, sidewalks, waste disposal systems, water and sewer
4line extensions, water distribution and purification
5facilities, storm water drainage and retention facilities, and
6sewage treatment facilities, resulting from a State or
7federally declared disaster in Illinois or bordering Illinois
8when such repairs are initiated on facilities located in the
9declared disaster area within 6 months after the disaster.
10    (20) Beginning July 1, 1999, game or game birds sold at a
11"game breeding and hunting preserve area" as that term is used
12in the Wildlife Code. This paragraph is exempt from the
13provisions of Section 3-55.
14    (21) A motor vehicle, as that term is defined in Section
151-146 of the Illinois Vehicle Code, that is donated to a
16corporation, limited liability company, society, association,
17foundation, or institution that is determined by the Department
18to be organized and operated exclusively for educational
19purposes. For purposes of this exemption, "a corporation,
20limited liability company, society, association, foundation,
21or institution organized and operated exclusively for
22educational purposes" means all tax-supported public schools,
23private schools that offer systematic instruction in useful
24branches of learning by methods common to public schools and
25that compare favorably in their scope and intensity with the
26course of study presented in tax-supported schools, and

 

 

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1vocational or technical schools or institutes organized and
2operated exclusively to provide a course of study of not less
3than 6 weeks duration and designed to prepare individuals to
4follow a trade or to pursue a manual, technical, mechanical,
5industrial, business, or commercial occupation.
6    (22) Beginning January 1, 2000, personal property,
7including food, purchased through fundraising events for the
8benefit of a public or private elementary or secondary school,
9a group of those schools, or one or more school districts if
10the events are sponsored by an entity recognized by the school
11district that consists primarily of volunteers and includes
12parents and teachers of the school children. This paragraph
13does not apply to fundraising events (i) for the benefit of
14private home instruction or (ii) for which the fundraising
15entity purchases the personal property sold at the events from
16another individual or entity that sold the property for the
17purpose of resale by the fundraising entity and that profits
18from the sale to the fundraising entity. This paragraph is
19exempt from the provisions of Section 3-55.
20    (23) Beginning January 1, 2000 and through December 31,
212001, new or used automatic vending machines that prepare and
22serve hot food and beverages, including coffee, soup, and other
23items, and replacement parts for these machines. Beginning
24January 1, 2002 and through June 30, 2003, machines and parts
25for machines used in commercial, coin-operated amusement and
26vending business if a use or occupation tax is paid on the

 

 

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1gross receipts derived from the use of the commercial,
2coin-operated amusement and vending machines. This paragraph
3is exempt from the provisions of Section 3-55.
4    (24) Beginning on the effective date of this amendatory Act
5of the 92nd General Assembly, computers and communications
6equipment utilized for any hospital purpose and equipment used
7in the diagnosis, analysis, or treatment of hospital patients
8sold to a lessor who leases the equipment, under a lease of one
9year or longer executed or in effect at the time of the
10purchase, to a hospital that has been issued an active tax
11exemption identification number by the Department under
12Section 1g of the Retailers' Occupation Tax Act. This paragraph
13is exempt from the provisions of Section 3-55.
14    (25) Beginning on the effective date of this amendatory Act
15of the 92nd General Assembly, personal property sold to a
16lessor who leases the property, under a lease of one year or
17longer executed or in effect at the time of the purchase, to a
18governmental body that has been issued an active tax exemption
19identification number by the Department under Section 1g of the
20Retailers' Occupation Tax Act. This paragraph is exempt from
21the provisions of Section 3-55.
22    (26) Beginning on January 1, 2002 and through June 30,
232016, tangible personal property purchased from an Illinois
24retailer by a taxpayer engaged in centralized purchasing
25activities in Illinois who will, upon receipt of the property
26in Illinois, temporarily store the property in Illinois (i) for

 

 

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1the purpose of subsequently transporting it outside this State
2for use or consumption thereafter solely outside this State or
3(ii) for the purpose of being processed, fabricated, or
4manufactured into, attached to, or incorporated into other
5tangible personal property to be transported outside this State
6and thereafter used or consumed solely outside this State. The
7Director of Revenue shall, pursuant to rules adopted in
8accordance with the Illinois Administrative Procedure Act,
9issue a permit to any taxpayer in good standing with the
10Department who is eligible for the exemption under this
11paragraph (26). The permit issued under this paragraph (26)
12shall authorize the holder, to the extent and in the manner
13specified in the rules adopted under this Act, to purchase
14tangible personal property from a retailer exempt from the
15taxes imposed by this Act. Taxpayers shall maintain all
16necessary books and records to substantiate the use and
17consumption of all such tangible personal property outside of
18the State of Illinois.
19    (27) Beginning January 1, 2008, tangible personal property
20used in the construction or maintenance of a community water
21supply, as defined under Section 3.145 of the Environmental
22Protection Act, that is operated by a not-for-profit
23corporation that holds a valid water supply permit issued under
24Title IV of the Environmental Protection Act. This paragraph is
25exempt from the provisions of Section 3-55.
26    (28) Tangible personal property sold to a

 

 

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1public-facilities corporation, as described in Section
211-65-10 of the Illinois Municipal Code, for purposes of
3constructing or furnishing a municipal convention hall, but
4only if the legal title to the municipal convention hall is
5transferred to the municipality without any further
6consideration by or on behalf of the municipality at the time
7of the completion of the municipal convention hall or upon the
8retirement or redemption of any bonds or other debt instruments
9issued by the public-facilities corporation in connection with
10the development of the municipal convention hall. This
11exemption includes existing public-facilities corporations as
12provided in Section 11-65-25 of the Illinois Municipal Code.
13This paragraph is exempt from the provisions of Section 3-55.
14    (29) Beginning January 1, 2010, materials, parts,
15equipment, components, and furnishings incorporated into or
16upon an aircraft as part of the modification, refurbishment,
17completion, replacement, repair, or maintenance of the
18aircraft. This exemption includes consumable supplies used in
19the modification, refurbishment, completion, replacement,
20repair, and maintenance of aircraft, but excludes any
21materials, parts, equipment, components, and consumable
22supplies used in the modification, replacement, repair, and
23maintenance of aircraft engines or power plants, whether such
24engines or power plants are installed or uninstalled upon any
25such aircraft. "Consumable supplies" include, but are not
26limited to, adhesive, tape, sandpaper, general purpose

 

 

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1lubricants, cleaning solution, latex gloves, and protective
2films. This exemption applies only to those organizations that
3(i) hold an Air Agency Certificate and are empowered to operate
4an approved repair station by the Federal Aviation
5Administration, (ii) have a Class IV Rating, and (iii) conduct
6operations in accordance with Part 145 of the Federal Aviation
7Regulations. The exemption does not include aircraft operated
8by a commercial air carrier providing scheduled passenger air
9service pursuant to authority issued under Part 121 or Part 129
10of the Federal Aviation Regulations.
11    (30) Until January 1, 2015, firearm safety devices,
12including safes, lock boxes, trigger and barrel locks, and
13other items designed to enhance home firearm safety.
14(Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
1596-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
167-2-10; 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227, eff.
171-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff.
187-9-12.)
 
19    Section 20. The Retailers' Occupation Tax Act is amended by
20changing Section 2-5 as follows:
 
21    (35 ILCS 120/2-5)
22    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
23sale of the following tangible personal property are exempt
24from the tax imposed by this Act:

 

 

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1    (1) Farm chemicals.
2    (2) Farm machinery and equipment, both new and used,
3including that manufactured on special order, certified by the
4purchaser to be used primarily for production agriculture or
5State or federal agricultural programs, including individual
6replacement parts for the machinery and equipment, including
7machinery and equipment purchased for lease, and including
8implements of husbandry defined in Section 1-130 of the
9Illinois Vehicle Code, farm machinery and agricultural
10chemical and fertilizer spreaders, and nurse wagons required to
11be registered under Section 3-809 of the Illinois Vehicle Code,
12but excluding other motor vehicles required to be registered
13under the Illinois Vehicle Code. Horticultural polyhouses or
14hoop houses used for propagating, growing, or overwintering
15plants shall be considered farm machinery and equipment under
16this item (2). Agricultural chemical tender tanks and dry boxes
17shall include units sold separately from a motor vehicle
18required to be licensed and units sold mounted on a motor
19vehicle required to be licensed, if the selling price of the
20tender is separately stated.
21    Farm machinery and equipment shall include precision
22farming equipment that is installed or purchased to be
23installed on farm machinery and equipment including, but not
24limited to, tractors, harvesters, sprayers, planters, seeders,
25or spreaders. Precision farming equipment includes, but is not
26limited to, soil testing sensors, computers, monitors,

 

 

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1software, global positioning and mapping systems, and other
2such equipment.
3    Farm machinery and equipment also includes computers,
4sensors, software, and related equipment used primarily in the
5computer-assisted operation of production agriculture
6facilities, equipment, and activities such as, but not limited
7to, the collection, monitoring, and correlation of animal and
8crop data for the purpose of formulating animal diets and
9agricultural chemicals. This item (2) is exempt from the
10provisions of Section 2-70.
11    (3) Until July 1, 2003, distillation machinery and
12equipment, sold as a unit or kit, assembled or installed by the
13retailer, certified by the user to be used only for the
14production of ethyl alcohol that will be used for consumption
15as motor fuel or as a component of motor fuel for the personal
16use of the user, and not subject to sale or resale.
17    (4) Until July 1, 2003 and beginning again September 1,
182004 through August 30, 2014, graphic arts machinery and
19equipment, including repair and replacement parts, both new and
20used, and including that manufactured on special order or
21purchased for lease, certified by the purchaser to be used
22primarily for graphic arts production. Equipment includes
23chemicals or chemicals acting as catalysts but only if the
24chemicals or chemicals acting as catalysts effect a direct and
25immediate change upon a graphic arts product.
26    (5) A motor vehicle of the first division, a motor vehicle

 

 

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1of the second division that is a self contained motor vehicle
2designed or permanently converted to provide living quarters
3for recreational, camping, or travel use, with direct walk
4through access to the living quarters from the driver's seat,
5or a motor vehicle of the second division that is of the van
6configuration designed for the transportation of not less than
77 nor more than 16 passengers, as defined in Section 1-146 of
8the Illinois Vehicle Code, that is used for automobile renting,
9as defined in the Automobile Renting Occupation and Use Tax
10Act. This paragraph is exempt from the provisions of Section
112-70.
12    (6) Personal property sold by a teacher-sponsored student
13organization affiliated with an elementary or secondary school
14located in Illinois.
15    (7) Until July 1, 2003, proceeds of that portion of the
16selling price of a passenger car the sale of which is subject
17to the Replacement Vehicle Tax.
18    (8) Personal property sold to an Illinois county fair
19association for use in conducting, operating, or promoting the
20county fair.
21    (9) Personal property sold to a not-for-profit arts or
22cultural organization that establishes, by proof required by
23the Department by rule, that it has received an exemption under
24Section 501(c)(3) of the Internal Revenue Code and that is
25organized and operated primarily for the presentation or
26support of arts or cultural programming, activities, or

 

 

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1services. These organizations include, but are not limited to,
2music and dramatic arts organizations such as symphony
3orchestras and theatrical groups, arts and cultural service
4organizations, local arts councils, visual arts organizations,
5and media arts organizations. On and after the effective date
6of this amendatory Act of the 92nd General Assembly, however,
7an entity otherwise eligible for this exemption shall not make
8tax-free purchases unless it has an active identification
9number issued by the Department.
10    (10) Personal property sold by a corporation, society,
11association, foundation, institution, or organization, other
12than a limited liability company, that is organized and
13operated as a not-for-profit service enterprise for the benefit
14of persons 65 years of age or older if the personal property
15was not purchased by the enterprise for the purpose of resale
16by the enterprise.
17    (11) Personal property sold to a governmental body, to a
18corporation, society, association, foundation, or institution
19organized and operated exclusively for charitable, religious,
20or educational purposes, or to a not-for-profit corporation,
21society, association, foundation, institution, or organization
22that has no compensated officers or employees and that is
23organized and operated primarily for the recreation of persons
2455 years of age or older. A limited liability company may
25qualify for the exemption under this paragraph only if the
26limited liability company is organized and operated

 

 

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1exclusively for educational purposes. On and after July 1,
21987, however, no entity otherwise eligible for this exemption
3shall make tax-free purchases unless it has an active
4identification number issued by the Department.
5    (12) Tangible personal property sold to interstate
6carriers for hire for use as rolling stock moving in interstate
7commerce or to lessors under leases of one year or longer
8executed or in effect at the time of purchase by interstate
9carriers for hire for use as rolling stock moving in interstate
10commerce and equipment operated by a telecommunications
11provider, licensed as a common carrier by the Federal
12Communications Commission, which is permanently installed in
13or affixed to aircraft moving in interstate commerce.
14    (12-5) On and after July 1, 2003 and through June 30, 2004,
15motor vehicles of the second division with a gross vehicle
16weight in excess of 8,000 pounds that are subject to the
17commercial distribution fee imposed under Section 3-815.1 of
18the Illinois Vehicle Code. Beginning on July 1, 2004 and
19through June 30, 2005, the use in this State of motor vehicles
20of the second division: (i) with a gross vehicle weight rating
21in excess of 8,000 pounds; (ii) that are subject to the
22commercial distribution fee imposed under Section 3-815.1 of
23the Illinois Vehicle Code; and (iii) that are primarily used
24for commercial purposes. Through June 30, 2005, this exemption
25applies to repair and replacement parts added after the initial
26purchase of such a motor vehicle if that motor vehicle is used

 

 

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1in a manner that would qualify for the rolling stock exemption
2otherwise provided for in this Act. For purposes of this
3paragraph, "used for commercial purposes" means the
4transportation of persons or property in furtherance of any
5commercial or industrial enterprise whether for-hire or not.
6    (13) Proceeds from sales to owners, lessors, or shippers of
7tangible personal property that is utilized by interstate
8carriers for hire for use as rolling stock moving in interstate
9commerce and equipment operated by a telecommunications
10provider, licensed as a common carrier by the Federal
11Communications Commission, which is permanently installed in
12or affixed to aircraft moving in interstate commerce.
13    (14) Machinery and equipment that will be used by the
14purchaser, or a lessee of the purchaser, primarily in the
15process of manufacturing or assembling tangible personal
16property for wholesale or retail sale or lease, whether the
17sale or lease is made directly by the manufacturer or by some
18other person, whether the materials used in the process are
19owned by the manufacturer or some other person, or whether the
20sale or lease is made apart from or as an incident to the
21seller's engaging in the service occupation of producing
22machines, tools, dies, jigs, patterns, gauges, or other similar
23items of no commercial value on special order for a particular
24purchaser.
25    (15) Proceeds of mandatory service charges separately
26stated on customers' bills for purchase and consumption of food

 

 

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1and beverages, to the extent that the proceeds of the service
2charge are in fact turned over as tips or as a substitute for
3tips to the employees who participate directly in preparing,
4serving, hosting or cleaning up the food or beverage function
5with respect to which the service charge is imposed.
6    (16) Petroleum products sold to a purchaser if the seller
7is prohibited by federal law from charging tax to the
8purchaser.
9    (17) Tangible personal property sold to a common carrier by
10rail or motor that receives the physical possession of the
11property in Illinois and that transports the property, or
12shares with another common carrier in the transportation of the
13property, out of Illinois on a standard uniform bill of lading
14showing the seller of the property as the shipper or consignor
15of the property to a destination outside Illinois, for use
16outside Illinois.
17    (18) Legal tender, currency, medallions, or gold or silver
18coinage issued by the State of Illinois, the government of the
19United States of America, or the government of any foreign
20country, and bullion.
21    (19) Until July 1 2003, oil field exploration, drilling,
22and production equipment, including (i) rigs and parts of rigs,
23rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
24tubular goods, including casing and drill strings, (iii) pumps
25and pump-jack units, (iv) storage tanks and flow lines, (v) any
26individual replacement part for oil field exploration,

 

 

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1drilling, and production equipment, and (vi) machinery and
2equipment purchased for lease; but excluding motor vehicles
3required to be registered under the Illinois Vehicle Code.
4    (20) Photoprocessing machinery and equipment, including
5repair and replacement parts, both new and used, including that
6manufactured on special order, certified by the purchaser to be
7used primarily for photoprocessing, and including
8photoprocessing machinery and equipment purchased for lease.
9    (21) Until July 1, 2003, and beginning again on the
10effective date of this amendatory Act of the 97th General
11Assembly and thereafter, coal and aggregate exploration,
12mining, offhighway hauling, processing, maintenance, and
13reclamation equipment, including replacement parts and
14equipment, and including equipment purchased for lease, but
15excluding motor vehicles required to be registered under the
16Illinois Vehicle Code.
17    (22) Fuel and petroleum products sold to or used by an air
18carrier, certified by the carrier to be used for consumption,
19shipment, or storage in the conduct of its business as an air
20common carrier, for a flight destined for or returning from a
21location or locations outside the United States without regard
22to previous or subsequent domestic stopovers.
23    (23) A transaction in which the purchase order is received
24by a florist who is located outside Illinois, but who has a
25florist located in Illinois deliver the property to the
26purchaser or the purchaser's donee in Illinois.

 

 

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1    (24) Fuel consumed or used in the operation of ships,
2barges, or vessels that are used primarily in or for the
3transportation of property or the conveyance of persons for
4hire on rivers bordering on this State if the fuel is delivered
5by the seller to the purchaser's barge, ship, or vessel while
6it is afloat upon that bordering river.
7    (25) Except as provided in item (25-5) of this Section, a
8motor vehicle sold in this State to a nonresident even though
9the motor vehicle is delivered to the nonresident in this
10State, if the motor vehicle is not to be titled in this State,
11and if a drive-away permit is issued to the motor vehicle as
12provided in Section 3-603 of the Illinois Vehicle Code or if
13the nonresident purchaser has vehicle registration plates to
14transfer to the motor vehicle upon returning to his or her home
15state. The issuance of the drive-away permit or having the
16out-of-state registration plates to be transferred is prima
17facie evidence that the motor vehicle will not be titled in
18this State.
19    (25-5) The exemption under item (25) does not apply if the
20state in which the motor vehicle will be titled does not allow
21a reciprocal exemption for a motor vehicle sold and delivered
22in that state to an Illinois resident but titled in Illinois.
23The tax collected under this Act on the sale of a motor vehicle
24in this State to a resident of another state that does not
25allow a reciprocal exemption shall be imposed at a rate equal
26to the state's rate of tax on taxable property in the state in

 

 

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1which the purchaser is a resident, except that the tax shall
2not exceed the tax that would otherwise be imposed under this
3Act. At the time of the sale, the purchaser shall execute a
4statement, signed under penalty of perjury, of his or her
5intent to title the vehicle in the state in which the purchaser
6is a resident within 30 days after the sale and of the fact of
7the payment to the State of Illinois of tax in an amount
8equivalent to the state's rate of tax on taxable property in
9his or her state of residence and shall submit the statement to
10the appropriate tax collection agency in his or her state of
11residence. In addition, the retailer must retain a signed copy
12of the statement in his or her records. Nothing in this item
13shall be construed to require the removal of the vehicle from
14this state following the filing of an intent to title the
15vehicle in the purchaser's state of residence if the purchaser
16titles the vehicle in his or her state of residence within 30
17days after the date of sale. The tax collected under this Act
18in accordance with this item (25-5) shall be proportionately
19distributed as if the tax were collected at the 6.25% general
20rate imposed under this Act.
21    (25-7) Beginning on July 1, 2007, no tax is imposed under
22this Act on the sale of an aircraft, as defined in Section 3 of
23the Illinois Aeronautics Act, if all of the following
24conditions are met:
25        (1) the aircraft leaves this State within 15 days after
26    the later of either the issuance of the final billing for

 

 

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1    the sale of the aircraft, or the authorized approval for
2    return to service, completion of the maintenance record
3    entry, and completion of the test flight and ground test
4    for inspection, as required by 14 C.F.R. 91.407;
5        (2) the aircraft is not based or registered in this
6    State after the sale of the aircraft; and
7        (3) the seller retains in his or her books and records
8    and provides to the Department a signed and dated
9    certification from the purchaser, on a form prescribed by
10    the Department, certifying that the requirements of this
11    item (25-7) are met. The certificate must also include the
12    name and address of the purchaser, the address of the
13    location where the aircraft is to be titled or registered,
14    the address of the primary physical location of the
15    aircraft, and other information that the Department may
16    reasonably require.
17    For purposes of this item (25-7):
18    "Based in this State" means hangared, stored, or otherwise
19used, excluding post-sale customizations as defined in this
20Section, for 10 or more days in each 12-month period
21immediately following the date of the sale of the aircraft.
22    "Registered in this State" means an aircraft registered
23with the Department of Transportation, Aeronautics Division,
24or titled or registered with the Federal Aviation
25Administration to an address located in this State.
26    This paragraph (25-7) is exempt from the provisions of

 

 

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1Section 2-70.
2    (26) Semen used for artificial insemination of livestock
3for direct agricultural production.
4    (27) Horses, or interests in horses, registered with and
5meeting the requirements of any of the Arabian Horse Club
6Registry of America, Appaloosa Horse Club, American Quarter
7Horse Association, United States Trotting Association, or
8Jockey Club, as appropriate, used for purposes of breeding or
9racing for prizes. This item (27) is exempt from the provisions
10of Section 2-70, and the exemption provided for under this item
11(27) applies for all periods beginning May 30, 1995, but no
12claim for credit or refund is allowed on or after January 1,
132008 (the effective date of Public Act 95-88) for such taxes
14paid during the period beginning May 30, 2000 and ending on
15January 1, 2008 (the effective date of Public Act 95-88).
16    (28) Computers and communications equipment utilized for
17any hospital purpose and equipment used in the diagnosis,
18analysis, or treatment of hospital patients sold to a lessor
19who leases the equipment, under a lease of one year or longer
20executed or in effect at the time of the purchase, to a
21hospital that has been issued an active tax exemption
22identification number by the Department under Section 1g of
23this Act.
24    (29) Personal property sold to a lessor who leases the
25property, under a lease of one year or longer executed or in
26effect at the time of the purchase, to a governmental body that

 

 

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1has been issued an active tax exemption identification number
2by the Department under Section 1g of this Act.
3    (30) Beginning with taxable years ending on or after
4December 31, 1995 and ending with taxable years ending on or
5before December 31, 2004, personal property that is donated for
6disaster relief to be used in a State or federally declared
7disaster area in Illinois or bordering Illinois by a
8manufacturer or retailer that is registered in this State to a
9corporation, society, association, foundation, or institution
10that has been issued a sales tax exemption identification
11number by the Department that assists victims of the disaster
12who reside within the declared disaster area.
13    (31) Beginning with taxable years ending on or after
14December 31, 1995 and ending with taxable years ending on or
15before December 31, 2004, personal property that is used in the
16performance of infrastructure repairs in this State, including
17but not limited to municipal roads and streets, access roads,
18bridges, sidewalks, waste disposal systems, water and sewer
19line extensions, water distribution and purification
20facilities, storm water drainage and retention facilities, and
21sewage treatment facilities, resulting from a State or
22federally declared disaster in Illinois or bordering Illinois
23when such repairs are initiated on facilities located in the
24declared disaster area within 6 months after the disaster.
25    (32) Beginning July 1, 1999, game or game birds sold at a
26"game breeding and hunting preserve area" as that term is used

 

 

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1in the Wildlife Code. This paragraph is exempt from the
2provisions of Section 2-70.
3    (33) A motor vehicle, as that term is defined in Section
41-146 of the Illinois Vehicle Code, that is donated to a
5corporation, limited liability company, society, association,
6foundation, or institution that is determined by the Department
7to be organized and operated exclusively for educational
8purposes. For purposes of this exemption, "a corporation,
9limited liability company, society, association, foundation,
10or institution organized and operated exclusively for
11educational purposes" means all tax-supported public schools,
12private schools that offer systematic instruction in useful
13branches of learning by methods common to public schools and
14that compare favorably in their scope and intensity with the
15course of study presented in tax-supported schools, and
16vocational or technical schools or institutes organized and
17operated exclusively to provide a course of study of not less
18than 6 weeks duration and designed to prepare individuals to
19follow a trade or to pursue a manual, technical, mechanical,
20industrial, business, or commercial occupation.
21    (34) Beginning January 1, 2000, personal property,
22including food, purchased through fundraising events for the
23benefit of a public or private elementary or secondary school,
24a group of those schools, or one or more school districts if
25the events are sponsored by an entity recognized by the school
26district that consists primarily of volunteers and includes

 

 

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1parents and teachers of the school children. This paragraph
2does not apply to fundraising events (i) for the benefit of
3private home instruction or (ii) for which the fundraising
4entity purchases the personal property sold at the events from
5another individual or entity that sold the property for the
6purpose of resale by the fundraising entity and that profits
7from the sale to the fundraising entity. This paragraph is
8exempt from the provisions of Section 2-70.
9    (35) Beginning January 1, 2000 and through December 31,
102001, new or used automatic vending machines that prepare and
11serve hot food and beverages, including coffee, soup, and other
12items, and replacement parts for these machines. Beginning
13January 1, 2002 and through June 30, 2003, machines and parts
14for machines used in commercial, coin-operated amusement and
15vending business if a use or occupation tax is paid on the
16gross receipts derived from the use of the commercial,
17coin-operated amusement and vending machines. This paragraph
18is exempt from the provisions of Section 2-70.
19    (35-5) Beginning August 23, 2001 and through June 30, 2016,
20food for human consumption that is to be consumed off the
21premises where it is sold (other than alcoholic beverages, soft
22drinks, and food that has been prepared for immediate
23consumption) and prescription and nonprescription medicines,
24drugs, medical appliances, and insulin, urine testing
25materials, syringes, and needles used by diabetics, for human
26use, when purchased for use by a person receiving medical

 

 

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1assistance under Article V of the Illinois Public Aid Code who
2resides in a licensed long-term care facility, as defined in
3the Nursing Home Care Act, or a licensed facility as defined in
4the ID/DD Community Care Act or the Specialized Mental Health
5Rehabilitation Act.
6    (36) Beginning August 2, 2001, computers and
7communications equipment utilized for any hospital purpose and
8equipment used in the diagnosis, analysis, or treatment of
9hospital patients sold to a lessor who leases the equipment,
10under a lease of one year or longer executed or in effect at
11the time of the purchase, to a hospital that has been issued an
12active tax exemption identification number by the Department
13under Section 1g of this Act. This paragraph is exempt from the
14provisions of Section 2-70.
15    (37) Beginning August 2, 2001, personal property sold to a
16lessor who leases the property, under a lease of one year or
17longer executed or in effect at the time of the purchase, to a
18governmental body that has been issued an active tax exemption
19identification number by the Department under Section 1g of
20this Act. This paragraph is exempt from the provisions of
21Section 2-70.
22    (38) Beginning on January 1, 2002 and through June 30,
232016, tangible personal property purchased from an Illinois
24retailer by a taxpayer engaged in centralized purchasing
25activities in Illinois who will, upon receipt of the property
26in Illinois, temporarily store the property in Illinois (i) for

 

 

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1the purpose of subsequently transporting it outside this State
2for use or consumption thereafter solely outside this State or
3(ii) for the purpose of being processed, fabricated, or
4manufactured into, attached to, or incorporated into other
5tangible personal property to be transported outside this State
6and thereafter used or consumed solely outside this State. The
7Director of Revenue shall, pursuant to rules adopted in
8accordance with the Illinois Administrative Procedure Act,
9issue a permit to any taxpayer in good standing with the
10Department who is eligible for the exemption under this
11paragraph (38). The permit issued under this paragraph (38)
12shall authorize the holder, to the extent and in the manner
13specified in the rules adopted under this Act, to purchase
14tangible personal property from a retailer exempt from the
15taxes imposed by this Act. Taxpayers shall maintain all
16necessary books and records to substantiate the use and
17consumption of all such tangible personal property outside of
18the State of Illinois.
19    (39) Beginning January 1, 2008, tangible personal property
20used in the construction or maintenance of a community water
21supply, as defined under Section 3.145 of the Environmental
22Protection Act, that is operated by a not-for-profit
23corporation that holds a valid water supply permit issued under
24Title IV of the Environmental Protection Act. This paragraph is
25exempt from the provisions of Section 2-70.
26    (40) Beginning January 1, 2010, materials, parts,

 

 

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1equipment, components, and furnishings incorporated into or
2upon an aircraft as part of the modification, refurbishment,
3completion, replacement, repair, or maintenance of the
4aircraft. This exemption includes consumable supplies used in
5the modification, refurbishment, completion, replacement,
6repair, and maintenance of aircraft, but excludes any
7materials, parts, equipment, components, and consumable
8supplies used in the modification, replacement, repair, and
9maintenance of aircraft engines or power plants, whether such
10engines or power plants are installed or uninstalled upon any
11such aircraft. "Consumable supplies" include, but are not
12limited to, adhesive, tape, sandpaper, general purpose
13lubricants, cleaning solution, latex gloves, and protective
14films. This exemption applies only to those organizations that
15(i) hold an Air Agency Certificate and are empowered to operate
16an approved repair station by the Federal Aviation
17Administration, (ii) have a Class IV Rating, and (iii) conduct
18operations in accordance with Part 145 of the Federal Aviation
19Regulations. The exemption does not include aircraft operated
20by a commercial air carrier providing scheduled passenger air
21service pursuant to authority issued under Part 121 or Part 129
22of the Federal Aviation Regulations.
23    (41) Tangible personal property sold to a
24public-facilities corporation, as described in Section
2511-65-10 of the Illinois Municipal Code, for purposes of
26constructing or furnishing a municipal convention hall, but

 

 

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1only if the legal title to the municipal convention hall is
2transferred to the municipality without any further
3consideration by or on behalf of the municipality at the time
4of the completion of the municipal convention hall or upon the
5retirement or redemption of any bonds or other debt instruments
6issued by the public-facilities corporation in connection with
7the development of the municipal convention hall. This
8exemption includes existing public-facilities corporations as
9provided in Section 11-65-25 of the Illinois Municipal Code.
10This paragraph is exempt from the provisions of Section 2-70.
11    (42) Until January 1, 2015, firearm safety devices,
12including safes, lock boxes, trigger and barrel locks, and
13other items designed to enhance home firearm safety.
14(Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
1596-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
167-2-10; 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227, eff.
171-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff.
187-9-12.)