SB2794 99TH GENERAL ASSEMBLY

  
  

 


 
99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2794

 

Introduced 2/17/2016, by Sen. Gary Forby

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-5
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/2-5

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Reinstates an exemption for oil field exploration, drilling, and production equipment for the period beginning on July 1, 2016 and ending on June 30, 2021. Effective immediately.


LRB099 20589 HLH 45146 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2794LRB099 20589 HLH 45146 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 that is used for automobile renting,
21as defined in the Automobile Renting Occupation and Use Tax
22Act.
23    (11) Farm machinery and equipment, both new and used,
24including that manufactured on special order, certified by the
25purchaser to be used primarily for production agriculture or
26State or federal agricultural programs, including individual

 

 

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

 

 

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1facilities, equipment, and activities such as, but not limited
2to, the collection, monitoring, and correlation of animal and
3crop data for the purpose of formulating animal diets and
4agricultural chemicals. This item (11) is exempt from the
5provisions of Section 3-90.
6    (12) Until June 30, 2013, fuel and petroleum products sold
7to or used by an air common carrier, certified by the carrier
8to be used for consumption, shipment, or storage in the conduct
9of its business as an air common carrier, for a flight destined
10for or returning from a location or locations outside the
11United States without regard to previous or subsequent domestic
12stopovers.
13    Beginning July 1, 2013, fuel and petroleum products sold to
14or used by an air carrier, certified by the carrier to be used
15for consumption, shipment, or storage in the conduct of its
16business as an air common carrier, for a flight that (i) is
17engaged in foreign trade or is engaged in trade between the
18United States and any of its possessions and (ii) transports at
19least one individual or package for hire from the city of
20origination to the city of final destination on the same
21aircraft, without regard to a change in the flight number of
22that aircraft.
23    (13) Proceeds of mandatory service charges separately
24stated on customers' bills for the purchase and consumption of
25food and beverages purchased at retail from a retailer, to the
26extent that the proceeds of the service charge are in fact

 

 

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1turned over as tips or as a substitute for tips to the
2employees who participate directly in preparing, serving,
3hosting or cleaning up the food or beverage function with
4respect to which the service charge is imposed.
5    (14) Until July 1, 2003, and beginning again on July 1,
62016 and ending on June 30, 2021, oil field exploration,
7drilling, and production equipment, including (i) rigs and
8parts of rigs, rotary rigs, cable tool rigs, and workover rigs,
9(ii) pipe and tubular goods, including casing and drill
10strings, (iii) pumps and pump-jack units, (iv) storage tanks
11and flow lines, (v) any individual replacement part for oil
12field exploration, drilling, and production equipment, and
13(vi) machinery and equipment purchased for lease; but excluding
14motor vehicles required to be registered under the Illinois
15Vehicle Code.
16    (15) Photoprocessing machinery and equipment, including
17repair and replacement parts, both new and used, including that
18manufactured on special order, certified by the purchaser to be
19used primarily for photoprocessing, and including
20photoprocessing machinery and equipment purchased for lease.
21    (16) Coal and aggregate exploration, mining, off-highway
22hauling, processing, maintenance, and reclamation equipment,
23including replacement parts and equipment, and including
24equipment purchased for lease, but excluding motor vehicles
25required to be registered under the Illinois Vehicle Code. The
26changes made to this Section by Public Act 97-767 apply on and

 

 

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1after July 1, 2003, but no claim for credit or refund is
2allowed on or after August 16, 2013 (the effective date of
3Public Act 98-456) for such taxes paid during the period
4beginning July 1, 2003 and ending on August 16, 2013 (the
5effective date of Public Act 98-456).
6    (17) Until July 1, 2003, distillation machinery and
7equipment, sold as a unit or kit, assembled or installed by the
8retailer, certified by the user to be used only for the
9production of ethyl alcohol that will be used for consumption
10as motor fuel or as a component of motor fuel for the personal
11use of the user, and not subject to sale or resale.
12    (18) Manufacturing and assembling machinery and equipment
13used primarily in the process of manufacturing or assembling
14tangible personal property for wholesale or retail sale or
15lease, whether that sale or lease is made directly by the
16manufacturer or by some other person, whether the materials
17used in the process are owned by the manufacturer or some other
18person, or whether that sale or lease is made apart from or as
19an incident to the seller's engaging in the service occupation
20of producing machines, tools, dies, jigs, patterns, gauges, or
21other similar items of no commercial value on special order for
22a particular purchaser. The exemption provided by this
23paragraph (18) does not include machinery and equipment used in
24(i) the generation of electricity for wholesale or retail sale;
25(ii) the generation or treatment of natural or artificial gas
26for wholesale or retail sale that is delivered to customers

 

 

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1through pipes, pipelines, or mains; or (iii) the treatment of
2water for wholesale or retail sale that is delivered to
3customers through pipes, pipelines, or mains. The provisions of
4Public Act 98-583 are declaratory of existing law as to the
5meaning and scope of this exemption.
6    (19) Personal property delivered to a purchaser or
7purchaser's donee inside Illinois when the purchase order for
8that personal property was received by a florist located
9outside Illinois who has a florist located inside Illinois
10deliver the personal property.
11    (20) Semen used for artificial insemination of livestock
12for direct agricultural production.
13    (21) Horses, or interests in horses, registered with and
14meeting the requirements of any of the Arabian Horse Club
15Registry of America, Appaloosa Horse Club, American Quarter
16Horse Association, United States Trotting Association, or
17Jockey Club, as appropriate, used for purposes of breeding or
18racing for prizes. This item (21) is exempt from the provisions
19of Section 3-90, and the exemption provided for under this item
20(21) applies for all periods beginning May 30, 1995, but no
21claim for credit or refund is allowed on or after January 1,
222008 for such taxes paid during the period beginning May 30,
232000 and ending on January 1, 2008.
24    (22) Computers and communications equipment utilized for
25any hospital purpose and equipment used in the diagnosis,
26analysis, or treatment of hospital patients purchased by a

 

 

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

 

 

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1Tax Act. If the property is leased in a manner that does not
2qualify for this exemption or used in any other non-exempt
3manner, the lessor shall be liable for the tax imposed under
4this Act or the Service Use Tax Act, as the case may be, based
5on the fair market value of the property at the time the
6non-qualifying use occurs. No lessor shall collect or attempt
7to collect an amount (however designated) that purports to
8reimburse that lessor for the tax imposed by this Act or the
9Service Use Tax Act, as the case may be, if the tax has not been
10paid by the lessor. If a lessor improperly collects any such
11amount from the lessee, the lessee shall have a legal right to
12claim a refund of that amount from the lessor. If, however,
13that amount is not refunded to the lessee for any reason, the
14lessor is liable to pay that amount to the Department.
15    (24) Beginning with taxable years ending on or after
16December 31, 1995 and ending with taxable years ending on or
17before December 31, 2004, personal property that is donated for
18disaster relief to be used in a State or federally declared
19disaster area in Illinois or bordering Illinois by a
20manufacturer or retailer that is registered in this State to a
21corporation, society, association, foundation, or institution
22that has been issued a sales tax exemption identification
23number by the Department that assists victims of the disaster
24who reside within the declared disaster area.
25    (25) 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 used in the
2performance of infrastructure repairs in this State, including
3but not limited to municipal roads and streets, access roads,
4bridges, sidewalks, waste disposal systems, water and sewer
5line extensions, water distribution and purification
6facilities, storm water drainage and retention facilities, and
7sewage treatment facilities, resulting from a State or
8federally declared disaster in Illinois or bordering Illinois
9when such repairs are initiated on facilities located in the
10declared disaster area within 6 months after the disaster.
11    (26) Beginning July 1, 1999, game or game birds purchased
12at a "game breeding and hunting preserve area" as that term is
13used in the Wildlife Code. This paragraph is exempt from the
14provisions of Section 3-90.
15    (27) A motor vehicle, as that term is defined in Section
161-146 of the Illinois Vehicle Code, that is donated to a
17corporation, limited liability company, society, association,
18foundation, or institution that is determined by the Department
19to be organized and operated exclusively for educational
20purposes. For purposes of this exemption, "a corporation,
21limited liability company, society, association, foundation,
22or institution organized and operated exclusively for
23educational purposes" means all tax-supported public schools,
24private schools that offer systematic instruction in useful
25branches of learning by methods common to public schools and
26that compare favorably in their scope and intensity with the

 

 

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1course of study presented in tax-supported schools, and
2vocational or technical schools or institutes organized and
3operated exclusively to provide a course of study of not less
4than 6 weeks duration and designed to prepare individuals to
5follow a trade or to pursue a manual, technical, mechanical,
6industrial, business, or commercial occupation.
7    (28) Beginning January 1, 2000, personal property,
8including food, purchased through fundraising events for the
9benefit of a public or private elementary or secondary school,
10a group of those schools, or one or more school districts if
11the events are sponsored by an entity recognized by the school
12district that consists primarily of volunteers and includes
13parents and teachers of the school children. This paragraph
14does not apply to fundraising events (i) for the benefit of
15private home instruction or (ii) for which the fundraising
16entity purchases the personal property sold at the events from
17another individual or entity that sold the property for the
18purpose of resale by the fundraising entity and that profits
19from the sale to the fundraising entity. This paragraph is
20exempt from the provisions of Section 3-90.
21    (29) Beginning January 1, 2000 and through December 31,
222001, new or used automatic vending machines that prepare and
23serve hot food and beverages, including coffee, soup, and other
24items, and replacement parts for these machines. Beginning
25January 1, 2002 and through June 30, 2003, machines and parts
26for machines used in commercial, coin-operated amusement and

 

 

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1vending business if a use or occupation tax is paid on the
2gross receipts derived from the use of the commercial,
3coin-operated amusement and vending machines. This paragraph
4is exempt from the provisions of Section 3-90.
5    (30) Beginning January 1, 2001 and through June 30, 2016,
6food for human consumption that is to be consumed off the
7premises where it is sold (other than alcoholic beverages, soft
8drinks, and food that has been prepared for immediate
9consumption) and prescription and nonprescription medicines,
10drugs, medical appliances, and insulin, urine testing
11materials, syringes, and needles used by diabetics, for human
12use, when purchased for use by a person receiving medical
13assistance under Article V of the Illinois Public Aid Code who
14resides in a licensed long-term care facility, as defined in
15the Nursing Home Care Act, or in a licensed facility as defined
16in the ID/DD Community Care Act, the MC/DD Act, or the
17Specialized Mental Health Rehabilitation Act of 2013.
18    (31) Beginning on the effective date of this amendatory Act
19of the 92nd General Assembly, computers and communications
20equipment utilized for any hospital purpose and equipment used
21in the diagnosis, analysis, or treatment of hospital patients
22purchased by a lessor who leases the equipment, under a lease
23of one year or longer executed or in effect at the time the
24lessor would otherwise be subject to the tax imposed by this
25Act, to a hospital that has been issued an active tax exemption
26identification number by the Department under Section 1g of the

 

 

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

 

 

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1shall be liable for the tax imposed under this Act or the
2Service Use Tax Act, as the case may be, based on the fair
3market value of the property at the time the nonqualifying use
4occurs. No lessor shall collect or attempt to collect an amount
5(however designated) that purports to reimburse that lessor for
6the tax imposed by this Act or the Service Use Tax Act, as the
7case may be, if the tax has not been paid by the lessor. If a
8lessor improperly collects any such amount from the lessee, the
9lessee shall have a legal right to claim a refund of that
10amount from the lessor. If, however, that amount is not
11refunded to the lessee for any reason, the lessor is liable to
12pay that amount to the Department. This paragraph is exempt
13from the provisions of Section 3-90.
14    (33) On and after July 1, 2003 and through June 30, 2004,
15the use in this State of motor vehicles of the second division
16with a gross vehicle weight in excess of 8,000 pounds and that
17are subject to the commercial distribution fee imposed under
18Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
191, 2004 and through June 30, 2005, the use in this State of
20motor vehicles of the second division: (i) with a gross vehicle
21weight rating in excess of 8,000 pounds; (ii) that are subject
22to the commercial distribution fee imposed under Section
233-815.1 of the Illinois Vehicle Code; and (iii) that are
24primarily used for commercial purposes. Through June 30, 2005,
25this exemption applies to repair and replacement parts added
26after the initial purchase of such a motor vehicle if that

 

 

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1motor vehicle is used in a manner that would qualify for the
2rolling stock exemption otherwise provided for in this Act. For
3purposes of this paragraph, the term "used for commercial
4purposes" means the transportation of persons or property in
5furtherance of any commercial or industrial enterprise,
6whether for-hire or not.
7    (34) Beginning January 1, 2008, tangible personal property
8used in the construction or maintenance of a community water
9supply, as defined under Section 3.145 of the Environmental
10Protection Act, that is operated by a not-for-profit
11corporation that holds a valid water supply permit issued under
12Title IV of the Environmental Protection Act. This paragraph is
13exempt from the provisions of Section 3-90.
14    (35) 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 the use of qualifying
3tangible personal property by persons who modify, refurbish,
4complete, repair, replace, or maintain aircraft and who (i)
5hold an Air Agency Certificate and are empowered to operate an
6approved repair station by the Federal Aviation
7Administration, (ii) have a Class IV Rating, and (iii) conduct
8operations in accordance with Part 145 of the Federal Aviation
9Regulations. The exemption does not include aircraft operated
10by a commercial air carrier providing scheduled passenger air
11service pursuant to authority issued under Part 121 or Part 129
12of the Federal Aviation Regulations. The changes made to this
13paragraph (35) by Public Act 98-534 are declarative of existing
14law.
15    (36) Tangible personal property purchased by a
16public-facilities corporation, as described in Section
1711-65-10 of the Illinois Municipal Code, for purposes of
18constructing or furnishing a municipal convention hall, but
19only if the legal title to the municipal convention hall is
20transferred to the municipality without any further
21consideration by or on behalf of the municipality at the time
22of the completion of the municipal convention hall or upon the
23retirement or redemption of any bonds or other debt instruments
24issued by the public-facilities corporation in connection with
25the development of the municipal convention hall. This
26exemption includes existing public-facilities corporations as

 

 

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1provided in Section 11-65-25 of the Illinois Municipal Code.
2This paragraph is exempt from the provisions of Section 3-90.
3(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
498-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
51-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff.
67-29-15.)
 
7    Section 10. The Service Use Tax Act is amended by changing
8Section 3-5 as follows:
 
9    (35 ILCS 110/3-5)
10    Sec. 3-5. Exemptions. Use of the following tangible
11personal property is exempt from the tax imposed by this Act:
12    (1) Personal property purchased from a corporation,
13society, association, foundation, institution, or
14organization, other than a limited liability company, that is
15organized and operated as a not-for-profit service enterprise
16for the benefit of persons 65 years of age or older if the
17personal property was not purchased by the enterprise for the
18purpose of resale by the enterprise.
19    (2) Personal property purchased by a non-profit Illinois
20county fair association for use in conducting, operating, or
21promoting the county fair.
22    (3) Personal property purchased by a not-for-profit arts or
23cultural organization that establishes, by proof required by
24the Department by rule, that it has received an exemption under

 

 

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1Section 501(c)(3) of the Internal Revenue Code and that is
2organized and operated primarily for the presentation or
3support of arts or cultural programming, activities, or
4services. These organizations include, but are not limited to,
5music and dramatic arts organizations such as symphony
6orchestras and theatrical groups, arts and cultural service
7organizations, local arts councils, visual arts organizations,
8and media arts organizations. On and after the effective date
9of this amendatory Act of the 92nd General Assembly, however,
10an entity otherwise eligible for this exemption shall not make
11tax-free purchases unless it has an active identification
12number issued by the Department.
13    (4) 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    (5) Until July 1, 2003 and beginning again on 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    (6) Personal property purchased from a teacher-sponsored

 

 

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

 

 

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1limited to, soil testing sensors, computers, monitors,
2software, global positioning and mapping systems, and other
3such equipment.
4    Farm machinery and equipment also includes computers,
5sensors, software, and related equipment used primarily in the
6computer-assisted operation of production agriculture
7facilities, equipment, and activities such as, but not limited
8to, the collection, monitoring, and correlation of animal and
9crop data for the purpose of formulating animal diets and
10agricultural chemicals. This item (7) is exempt from the
11provisions of Section 3-75.
12    (8) Until June 30, 2013, fuel and petroleum products sold
13to or used by an air common carrier, certified by the carrier
14to be used for consumption, shipment, or storage in the conduct
15of its business as an air common carrier, for a flight destined
16for or returning from a location or locations outside the
17United States without regard to previous or subsequent domestic
18stopovers.
19    Beginning July 1, 2013, fuel and petroleum products sold to
20or used by an air carrier, certified by the carrier to be used
21for consumption, shipment, or storage in the conduct of its
22business as an air common carrier, for a flight that (i) is
23engaged in foreign trade or is engaged in trade between the
24United States and any of its possessions and (ii) transports at
25least one individual or package for hire from the city of
26origination to the city of final destination on the same

 

 

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1aircraft, without regard to a change in the flight number of
2that aircraft.
3    (9) Proceeds of mandatory service charges separately
4stated on customers' bills for the purchase and consumption of
5food and beverages acquired as an incident to the purchase of a
6service from a serviceman, to the extent that the proceeds of
7the service charge are in fact turned over as tips or as a
8substitute for tips to the employees who participate directly
9in preparing, serving, hosting or cleaning up the food or
10beverage function with respect to which the service charge is
11imposed.
12    (10) Until July 1, 2003, and beginning again on July 1,
132016 and ending on June 30, 2021, oil field exploration,
14drilling, and production equipment, including (i) rigs and
15parts of rigs, rotary rigs, cable tool rigs, and workover rigs,
16(ii) pipe and tubular goods, including casing and drill
17strings, (iii) pumps and pump-jack units, (iv) storage tanks
18and flow lines, (v) any individual replacement part for oil
19field exploration, drilling, and production equipment, and
20(vi) machinery and equipment purchased for lease; but excluding
21motor vehicles required to be registered under the Illinois
22Vehicle Code.
23    (11) Proceeds from the sale of photoprocessing machinery
24and equipment, including repair and replacement parts, both new
25and used, including that manufactured on special order,
26certified by the purchaser to be used primarily for

 

 

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1photoprocessing, and including photoprocessing machinery and
2equipment purchased for lease.
3    (12) Coal and aggregate exploration, mining, off-highway
4hauling, processing, maintenance, and reclamation equipment,
5including replacement parts and equipment, and including
6equipment purchased for lease, but excluding motor vehicles
7required to be registered under the Illinois Vehicle Code. The
8changes made to this Section by Public Act 97-767 apply on and
9after July 1, 2003, but no claim for credit or refund is
10allowed on or after August 16, 2013 (the effective date of
11Public Act 98-456) for such taxes paid during the period
12beginning July 1, 2003 and ending on August 16, 2013 (the
13effective date of Public Act 98-456).
14    (13) Semen used for artificial insemination of livestock
15for direct agricultural production.
16    (14) Horses, or interests in horses, registered with and
17meeting the requirements of any of the Arabian Horse Club
18Registry of America, Appaloosa Horse Club, American Quarter
19Horse Association, United States Trotting Association, or
20Jockey Club, as appropriate, used for purposes of breeding or
21racing for prizes. This item (14) is exempt from the provisions
22of Section 3-75, and the exemption provided for under this item
23(14) applies for all periods beginning May 30, 1995, but no
24claim for credit or refund is allowed on or after the effective
25date of this amendatory Act of the 95th General Assembly for
26such taxes paid during the period beginning May 30, 2000 and

 

 

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1ending on the effective date of this amendatory Act of the 95th
2General Assembly.
3    (15) Computers and communications equipment utilized for
4any hospital purpose and equipment used in the diagnosis,
5analysis, or treatment of hospital patients purchased by a
6lessor who leases the equipment, under a lease of one year or
7longer executed or in effect at the time the lessor would
8otherwise be subject to the tax imposed by this Act, to a
9hospital 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 non-exempt manner, the lessor shall be liable for the
14tax imposed under this Act or the Use Tax Act, as the case may
15be, based on the fair market value of the property at the time
16the non-qualifying use occurs. No lessor shall collect or
17attempt to collect an amount (however designated) that purports
18to reimburse that lessor for the tax imposed by this Act or the
19Use Tax Act, as the case may be, if the tax has not been paid by
20the lessor. If a lessor improperly collects any such amount
21from the lessee, the lessee shall have a legal right to claim a
22refund of that amount from the lessor. If, however, that amount
23is not refunded to the lessee for any reason, the lessor is
24liable to pay that amount to the Department.
25    (16) Personal property purchased by a lessor who leases the
26property, under a lease of one year or longer executed or in

 

 

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1effect at the time the lessor would otherwise be subject to the
2tax imposed by this Act, to a governmental body that has been
3issued an active tax exemption identification number by the
4Department under Section 1g of the Retailers' Occupation Tax
5Act. If the property is leased in a manner that does not
6qualify for this exemption or is used in any other non-exempt
7manner, the lessor shall be liable for the tax imposed under
8this Act or the Use Tax Act, as the case may be, based on the
9fair market value of the property at the time the
10non-qualifying use occurs. No lessor shall collect or attempt
11to collect an amount (however designated) that purports to
12reimburse 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    (17) Beginning with taxable years ending on or after
20December 31, 1995 and ending with taxable years ending on or
21before December 31, 2004, personal property that is donated for
22disaster relief to be used in a State or federally declared
23disaster area in Illinois or bordering Illinois by a
24manufacturer or retailer that is registered in this State to a
25corporation, society, association, foundation, or institution
26that has been issued a sales tax exemption identification

 

 

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1number by the Department that assists victims of the disaster
2who reside within the declared disaster area.
3    (18) 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 used in the
6performance of infrastructure repairs in this State, including
7but not limited to municipal roads and streets, access roads,
8bridges, sidewalks, waste disposal systems, water and sewer
9line extensions, water distribution and purification
10facilities, storm water drainage and retention facilities, and
11sewage treatment facilities, resulting from a State or
12federally declared disaster in Illinois or bordering Illinois
13when such repairs are initiated on facilities located in the
14declared disaster area within 6 months after the disaster.
15    (19) Beginning July 1, 1999, game or game birds purchased
16at a "game breeding and hunting preserve area" as that term is
17used in the Wildlife Code. This paragraph is exempt from the
18provisions of Section 3-75.
19    (20) A motor vehicle, as that term is defined in Section
201-146 of the Illinois Vehicle Code, that is donated to a
21corporation, limited liability company, society, association,
22foundation, or institution that is determined by the Department
23to be organized and operated exclusively for educational
24purposes. For purposes of this exemption, "a corporation,
25limited liability company, society, association, foundation,
26or institution organized and operated exclusively for

 

 

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1educational purposes" means all tax-supported public schools,
2private schools that offer systematic instruction in useful
3branches of learning by methods common to public schools and
4that compare favorably in their scope and intensity with the
5course of study presented in tax-supported schools, and
6vocational or technical schools or institutes organized and
7operated exclusively to provide a course of study of not less
8than 6 weeks duration and designed to prepare individuals to
9follow a trade or to pursue a manual, technical, mechanical,
10industrial, business, or commercial occupation.
11    (21) Beginning January 1, 2000, personal property,
12including food, purchased through fundraising events for the
13benefit of a public or private elementary or secondary school,
14a group of those schools, or one or more school districts if
15the events are sponsored by an entity recognized by the school
16district that consists primarily of volunteers and includes
17parents and teachers of the school children. This paragraph
18does not apply to fundraising events (i) for the benefit of
19private home instruction or (ii) for which the fundraising
20entity purchases the personal property sold at the events from
21another individual or entity that sold the property for the
22purpose of resale by the fundraising entity and that profits
23from the sale to the fundraising entity. This paragraph is
24exempt from the provisions of Section 3-75.
25    (22) Beginning January 1, 2000 and through December 31,
262001, new or used automatic vending machines that prepare and

 

 

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1serve hot food and beverages, including coffee, soup, and other
2items, and replacement parts for these machines. Beginning
3January 1, 2002 and through June 30, 2003, machines and parts
4for machines used in commercial, coin-operated amusement and
5vending business if a use or occupation tax is paid on the
6gross receipts derived from the use of the commercial,
7coin-operated amusement and vending machines. This paragraph
8is exempt from the provisions of Section 3-75.
9    (23) Beginning August 23, 2001 and through June 30, 2016,
10food for human consumption that is to be consumed off the
11premises where it is sold (other than alcoholic beverages, soft
12drinks, and food that has been prepared for immediate
13consumption) and prescription and nonprescription medicines,
14drugs, medical appliances, and insulin, urine testing
15materials, syringes, and needles used by diabetics, for human
16use, when purchased for use by a person receiving medical
17assistance under Article V of the Illinois Public Aid Code who
18resides in a licensed long-term care facility, as defined in
19the Nursing Home Care Act, or in a licensed facility as defined
20in the ID/DD Community Care Act, the MC/DD Act, or the
21Specialized Mental Health Rehabilitation Act of 2013.
22    (24) Beginning on the effective date of this amendatory Act
23of the 92nd General Assembly, computers and communications
24equipment utilized for any hospital purpose and equipment used
25in the diagnosis, analysis, or treatment of hospital patients
26purchased by a lessor who leases the equipment, under a lease

 

 

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1of one year or longer executed or in effect at the time the
2lessor would otherwise be subject to the tax imposed by this
3Act, to a hospital 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 nonexempt 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 nonqualifying 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. This paragraph is
19exempt from the provisions of Section 3-75.
20    (25) Beginning on the effective date of this amendatory Act
21of the 92nd General Assembly, personal property purchased by a
22lessor who leases the property, under a lease of one year or
23longer executed or in effect at the time the lessor would
24otherwise be subject to the tax imposed by this Act, to a
25governmental body that has been issued an active tax exemption
26identification number by the Department under Section 1g of the

 

 

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1Retailers' Occupation Tax Act. If the property is leased in a
2manner that does not qualify for this exemption or is used in
3any other nonexempt manner, the lessor shall be liable for the
4tax imposed under this Act or the Use Tax Act, as the case may
5be, based on the fair market value of the property at the time
6the nonqualifying use occurs. No lessor shall collect or
7attempt to collect an amount (however designated) that purports
8to reimburse that lessor for the tax imposed by this Act or the
9Use Tax Act, as the case may be, if the tax has not been paid by
10the lessor. If a lessor improperly collects any such amount
11from the lessee, the lessee shall have a legal right to claim a
12refund of that amount from the lessor. If, however, that amount
13is not refunded to the lessee for any reason, the lessor is
14liable to pay that amount to the Department. This paragraph is
15exempt from the provisions of Section 3-75.
16    (26) Beginning January 1, 2008, tangible personal property
17used in the construction or maintenance of a community water
18supply, as defined under Section 3.145 of the Environmental
19Protection Act, that is operated by a not-for-profit
20corporation that holds a valid water supply permit issued under
21Title IV of the Environmental Protection Act. This paragraph is
22exempt from the provisions of Section 3-75.
23    (27) Beginning January 1, 2010, materials, parts,
24equipment, components, and furnishings incorporated into or
25upon an aircraft as part of the modification, refurbishment,
26completion, replacement, repair, or maintenance of the

 

 

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1aircraft. This exemption includes consumable supplies used in
2the modification, refurbishment, completion, replacement,
3repair, and maintenance of aircraft, but excludes any
4materials, parts, equipment, components, and consumable
5supplies used in the modification, replacement, repair, and
6maintenance of aircraft engines or power plants, whether such
7engines or power plants are installed or uninstalled upon any
8such aircraft. "Consumable supplies" include, but are not
9limited to, adhesive, tape, sandpaper, general purpose
10lubricants, cleaning solution, latex gloves, and protective
11films. This exemption applies only to the use of qualifying
12tangible personal property transferred incident to the
13modification, refurbishment, completion, replacement, repair,
14or maintenance of aircraft by persons who (i) hold an Air
15Agency Certificate and are empowered to operate an approved
16repair station by the Federal Aviation Administration, (ii)
17have a Class IV Rating, and (iii) conduct operations in
18accordance with Part 145 of the Federal Aviation Regulations.
19The exemption does not include aircraft operated by a
20commercial air carrier providing scheduled passenger air
21service pursuant to authority issued under Part 121 or Part 129
22of the Federal Aviation Regulations. The changes made to this
23paragraph (27) by Public Act 98-534 are declarative of existing
24law.
25    (28) Tangible personal property purchased by a
26public-facilities corporation, as described in Section

 

 

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111-65-10 of the Illinois Municipal Code, for purposes of
2constructing or furnishing a municipal convention hall, but
3only if the legal title to the municipal convention hall is
4transferred to the municipality without any further
5consideration by or on behalf of the municipality at the time
6of the completion of the municipal convention hall or upon the
7retirement or redemption of any bonds or other debt instruments
8issued by the public-facilities corporation in connection with
9the development of the municipal convention hall. This
10exemption includes existing public-facilities corporations as
11provided in Section 11-65-25 of the Illinois Municipal Code.
12This paragraph is exempt from the provisions of Section 3-75.
13(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
1498-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff.
157-16-14; 99-180, eff. 7-29-15.)
 
16    Section 15. The Service Occupation Tax Act is amended by
17changing Section 3-5 as follows:
 
18    (35 ILCS 115/3-5)
19    Sec. 3-5. Exemptions. The following tangible personal
20property is exempt from the tax imposed by this Act:
21    (1) Personal property sold by a corporation, society,
22association, foundation, institution, or organization, other
23than a limited liability company, that is organized and
24operated as a not-for-profit service enterprise for the benefit

 

 

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1of persons 65 years of age or older if the personal property
2was not purchased by the enterprise for the purpose of resale
3by the enterprise.
4    (2) Personal property purchased by a not-for-profit
5Illinois county fair association for use in conducting,
6operating, or promoting the county fair.
7    (3) Personal property purchased by any not-for-profit arts
8or cultural 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 sold by a teacher-sponsored student
10organization affiliated with an elementary or secondary school
11located 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

 

 

SB2794- 35 -LRB099 20589 HLH 45146 b

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 3-55.
21    (8) Until June 30, 2013, fuel and petroleum products sold
22to or used by an air common carrier, certified by the carrier
23to be used for consumption, shipment, or storage in the conduct
24of its business as an air common carrier, for a flight destined
25for or returning from a location or locations outside the
26United States without regard to previous or subsequent domestic

 

 

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1stopovers.
2    Beginning July 1, 2013, fuel and petroleum products sold to
3or used by an air carrier, certified by the carrier to be used
4for consumption, shipment, or storage in the conduct of its
5business as an air common carrier, for a flight that (i) is
6engaged in foreign trade or is engaged in trade between the
7United States and any of its possessions and (ii) transports at
8least one individual or package for hire from the city of
9origination to the city of final destination on the same
10aircraft, without regard to a change in the flight number of
11that aircraft.
12    (9) Proceeds of mandatory service charges separately
13stated on customers' bills for the purchase and consumption of
14food and beverages, to the extent that the proceeds of the
15service charge are in fact turned over as tips or as a
16substitute for tips to the employees who participate directly
17in preparing, serving, hosting or cleaning up the food or
18beverage function with respect to which the service charge is
19imposed.
20    (10) Until July 1, 2003, and beginning again on July 1,
212016 and ending on June 30, 2021, oil field exploration,
22drilling, and production equipment, including (i) rigs and
23parts of rigs, rotary rigs, cable tool rigs, and workover rigs,
24(ii) pipe and tubular goods, including casing and drill
25strings, (iii) pumps and pump-jack units, (iv) storage tanks
26and flow lines, (v) any individual replacement part for oil

 

 

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1field exploration, drilling, and production equipment, and
2(vi) machinery and equipment purchased for lease; but excluding
3motor vehicles required to be registered under the Illinois
4Vehicle Code.
5    (11) Photoprocessing machinery and equipment, including
6repair and replacement parts, both new and used, including that
7manufactured on special order, certified by the purchaser to be
8used primarily for photoprocessing, and including
9photoprocessing machinery and equipment purchased for lease.
10    (12) Coal and aggregate exploration, mining, off-highway
11hauling, processing, maintenance, and reclamation equipment,
12including replacement parts and equipment, and including
13equipment purchased for lease, but excluding motor vehicles
14required to be registered under the Illinois Vehicle Code. The
15changes made to this Section by Public Act 97-767 apply on and
16after July 1, 2003, but no claim for credit or refund is
17allowed on or after August 16, 2013 (the effective date of
18Public Act 98-456) for such taxes paid during the period
19beginning July 1, 2003 and ending on August 16, 2013 (the
20effective date of Public Act 98-456).
21    (13) Beginning January 1, 1992 and through June 30, 2016,
22food for human consumption that is to be consumed off the
23premises where it is sold (other than alcoholic beverages, soft
24drinks and food that has been prepared for immediate
25consumption) and prescription and non-prescription medicines,
26drugs, medical appliances, and insulin, urine testing

 

 

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1materials, syringes, and needles used by diabetics, for human
2use, when purchased for use by a person receiving medical
3assistance under Article V of the Illinois Public Aid Code who
4resides in a licensed long-term care facility, as defined in
5the Nursing Home Care Act, or in a licensed facility as defined
6in the ID/DD Community Care Act, the MC/DD Act, or the
7Specialized Mental Health Rehabilitation Act of 2013.
8    (14) Semen used for artificial insemination of livestock
9for direct agricultural production.
10    (15) 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 (15) is exempt from the provisions
16of Section 3-55, and the exemption provided for under this item
17(15) applies for all periods beginning May 30, 1995, but no
18claim for credit or refund is allowed on or after January 1,
192008 (the effective date of Public Act 95-88) for such taxes
20paid during the period beginning May 30, 2000 and ending on
21January 1, 2008 (the effective date of Public Act 95-88).
22    (16) Computers and communications equipment utilized for
23any hospital purpose and equipment used in the diagnosis,
24analysis, or treatment of hospital patients sold to a lessor
25who leases the equipment, under a lease of one year or longer
26executed or in effect at the time of the purchase, to a

 

 

SB2794- 39 -LRB099 20589 HLH 45146 b

1hospital that has been issued an active tax exemption
2identification number by the Department under Section 1g of the
3Retailers' Occupation Tax Act.
4    (17) Personal property sold to a lessor who leases the
5property, under a lease of one year or longer executed or in
6effect at the time of the purchase, to a governmental body that
7has been issued an active tax exemption identification number
8by the Department under Section 1g of the Retailers' Occupation
9Tax Act.
10    (18) Beginning with taxable years ending on or after
11December 31, 1995 and ending with taxable years ending on or
12before December 31, 2004, personal property that is donated for
13disaster relief to be used in a State or federally declared
14disaster area in Illinois or bordering Illinois by a
15manufacturer or retailer that is registered in this State to a
16corporation, society, association, foundation, or institution
17that has been issued a sales tax exemption identification
18number by the Department that assists victims of the disaster
19who reside within the declared disaster area.
20    (19) Beginning with taxable years ending on or after
21December 31, 1995 and ending with taxable years ending on or
22before December 31, 2004, personal property that is used in the
23performance of infrastructure repairs in this State, including
24but not limited to municipal roads and streets, access roads,
25bridges, sidewalks, waste disposal systems, water and sewer
26line extensions, water distribution and purification

 

 

SB2794- 40 -LRB099 20589 HLH 45146 b

1facilities, storm water drainage and retention facilities, and
2sewage treatment facilities, resulting from a State or
3federally declared disaster in Illinois or bordering Illinois
4when such repairs are initiated on facilities located in the
5declared disaster area within 6 months after the disaster.
6    (20) Beginning July 1, 1999, game or game birds sold at a
7"game breeding and hunting preserve area" as that term is used
8in the Wildlife Code. This paragraph is exempt from the
9provisions of Section 3-55.
10    (21) A motor vehicle, as that term is defined in Section
111-146 of the Illinois Vehicle Code, that is donated to a
12corporation, limited liability company, society, association,
13foundation, or institution that is determined by the Department
14to be organized and operated exclusively for educational
15purposes. For purposes of this exemption, "a corporation,
16limited liability company, society, association, foundation,
17or institution organized and operated exclusively for
18educational purposes" means all tax-supported public schools,
19private schools that offer systematic instruction in useful
20branches of learning by methods common to public schools and
21that compare favorably in their scope and intensity with the
22course of study presented in tax-supported schools, and
23vocational or technical schools or institutes organized and
24operated exclusively to provide a course of study of not less
25than 6 weeks duration and designed to prepare individuals to
26follow a trade or to pursue a manual, technical, mechanical,

 

 

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1industrial, business, or commercial occupation.
2    (22) Beginning January 1, 2000, personal property,
3including food, purchased through fundraising events for the
4benefit of a public or private elementary or secondary school,
5a group of those schools, or one or more school districts if
6the events are sponsored by an entity recognized by the school
7district that consists primarily of volunteers and includes
8parents and teachers of the school children. This paragraph
9does not apply to fundraising events (i) for the benefit of
10private home instruction or (ii) for which the fundraising
11entity purchases the personal property sold at the events from
12another individual or entity that sold the property for the
13purpose of resale by the fundraising entity and that profits
14from the sale to the fundraising entity. This paragraph is
15exempt from the provisions of Section 3-55.
16    (23) Beginning January 1, 2000 and through December 31,
172001, new or used automatic vending machines that prepare and
18serve hot food and beverages, including coffee, soup, and other
19items, and replacement parts for these machines. Beginning
20January 1, 2002 and through June 30, 2003, machines and parts
21for machines used in commercial, coin-operated amusement and
22vending business if a use or occupation tax is paid on the
23gross receipts derived from the use of the commercial,
24coin-operated amusement and vending machines. This paragraph
25is exempt from the provisions of Section 3-55.
26    (24) Beginning on the effective date of this amendatory Act

 

 

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1of the 92nd General Assembly, computers and communications
2equipment utilized for any hospital purpose and equipment used
3in the diagnosis, analysis, or treatment of hospital patients
4sold to a lessor who leases the equipment, under a lease of one
5year or longer executed or in effect at the time of the
6purchase, to a hospital that has been issued an active tax
7exemption identification number by the Department under
8Section 1g of the Retailers' Occupation Tax Act. This paragraph
9is exempt from the provisions of Section 3-55.
10    (25) Beginning on the effective date of this amendatory Act
11of the 92nd General Assembly, personal property sold to a
12lessor who leases the property, under a lease of one year or
13longer executed or in effect at the time of the purchase, to a
14governmental body that has been issued an active tax exemption
15identification number by the Department under Section 1g of the
16Retailers' Occupation Tax Act. This paragraph is exempt from
17the provisions of Section 3-55.
18    (26) Beginning on January 1, 2002 and through June 30,
192016, tangible personal property purchased from an Illinois
20retailer by a taxpayer engaged in centralized purchasing
21activities in Illinois who will, upon receipt of the property
22in Illinois, temporarily store the property in Illinois (i) for
23the purpose of subsequently transporting it outside this State
24for use or consumption thereafter solely outside this State or
25(ii) for the purpose of being processed, fabricated, or
26manufactured into, attached to, or incorporated into other

 

 

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1tangible personal property to be transported outside this State
2and thereafter used or consumed solely outside this State. The
3Director of Revenue shall, pursuant to rules adopted in
4accordance with the Illinois Administrative Procedure Act,
5issue a permit to any taxpayer in good standing with the
6Department who is eligible for the exemption under this
7paragraph (26). The permit issued under this paragraph (26)
8shall authorize the holder, to the extent and in the manner
9specified in the rules adopted under this Act, to purchase
10tangible personal property from a retailer exempt from the
11taxes imposed by this Act. Taxpayers shall maintain all
12necessary books and records to substantiate the use and
13consumption of all such tangible personal property outside of
14the State of Illinois.
15    (27) Beginning January 1, 2008, tangible personal property
16used in the construction or maintenance of a community water
17supply, as defined under Section 3.145 of the Environmental
18Protection Act, that is operated by a not-for-profit
19corporation that holds a valid water supply permit issued under
20Title IV of the Environmental Protection Act. This paragraph is
21exempt from the provisions of Section 3-55.
22    (28) Tangible personal property sold to a
23public-facilities corporation, as described in Section
2411-65-10 of the Illinois Municipal Code, for purposes of
25constructing or furnishing a municipal convention hall, but
26only if the legal title to the municipal convention hall is

 

 

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1transferred to the municipality without any further
2consideration by or on behalf of the municipality at the time
3of the completion of the municipal convention hall or upon the
4retirement or redemption of any bonds or other debt instruments
5issued by the public-facilities corporation in connection with
6the development of the municipal convention hall. This
7exemption includes existing public-facilities corporations as
8provided in Section 11-65-25 of the Illinois Municipal Code.
9This paragraph is exempt from the provisions of Section 3-55.
10    (29) Beginning January 1, 2010, materials, parts,
11equipment, components, and furnishings incorporated into or
12upon an aircraft as part of the modification, refurbishment,
13completion, replacement, repair, or maintenance of the
14aircraft. This exemption includes consumable supplies used in
15the modification, refurbishment, completion, replacement,
16repair, and maintenance of aircraft, but excludes any
17materials, parts, equipment, components, and consumable
18supplies used in the modification, replacement, repair, and
19maintenance of aircraft engines or power plants, whether such
20engines or power plants are installed or uninstalled upon any
21such aircraft. "Consumable supplies" include, but are not
22limited to, adhesive, tape, sandpaper, general purpose
23lubricants, cleaning solution, latex gloves, and protective
24films. This exemption applies only to the transfer of
25qualifying tangible personal property incident to the
26modification, refurbishment, completion, replacement, repair,

 

 

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1or maintenance of an aircraft by persons who (i) hold an Air
2Agency Certificate and are empowered to operate an approved
3repair station by the Federal Aviation Administration, (ii)
4have a Class IV Rating, and (iii) conduct operations in
5accordance with Part 145 of the Federal Aviation Regulations.
6The exemption does not include aircraft operated by a
7commercial air carrier providing scheduled passenger air
8service pursuant to authority issued under Part 121 or Part 129
9of the Federal Aviation Regulations. The changes made to this
10paragraph (29) by Public Act 98-534 are declarative of existing
11law.
12(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
1398-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff.
147-16-14; 99-180, eff. 7-29-15.)
 
15    Section 20. The Retailers' Occupation Tax Act is amended by
16changing Section 2-5 as follows:
 
17    (35 ILCS 120/2-5)
18    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
19sale of the following tangible personal property are exempt
20from the tax imposed by this Act:
21    (1) Farm chemicals.
22    (2) Farm machinery and equipment, both new and used,
23including that manufactured on special order, certified by the
24purchaser to be used primarily for production agriculture or

 

 

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

 

 

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1computer-assisted operation of production agriculture
2facilities, equipment, and activities such as, but not limited
3to, the collection, monitoring, and correlation of animal and
4crop data for the purpose of formulating animal diets and
5agricultural chemicals. This item (2) is exempt from the
6provisions of Section 2-70.
7    (3) Until July 1, 2003, distillation machinery and
8equipment, sold as a unit or kit, assembled or installed by the
9retailer, certified by the user to be used only for the
10production of ethyl alcohol that will be used for consumption
11as motor fuel or as a component of motor fuel for the personal
12use of the user, and not subject to sale or resale.
13    (4) Until July 1, 2003 and beginning again September 1,
142004 through August 30, 2014, graphic arts machinery and
15equipment, including repair and replacement parts, both new and
16used, and including that manufactured on special order or
17purchased for lease, certified by the purchaser to be used
18primarily for graphic arts production. Equipment includes
19chemicals or chemicals acting as catalysts but only if the
20chemicals or chemicals acting as catalysts effect a direct and
21immediate change upon a graphic arts product.
22    (5) A motor vehicle that is used for automobile renting, as
23defined in the Automobile Renting Occupation and Use Tax Act.
24This paragraph is exempt from the provisions of Section 2-70.
25    (6) Personal property sold by a teacher-sponsored student
26organization affiliated with an elementary or secondary school

 

 

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1located in Illinois.
2    (7) Until July 1, 2003, proceeds of that portion of the
3selling price of a passenger car the sale of which is subject
4to the Replacement Vehicle Tax.
5    (8) Personal property sold to an Illinois county fair
6association for use in conducting, operating, or promoting the
7county fair.
8    (9) Personal property sold to a not-for-profit arts or
9cultural organization that establishes, by proof required by
10the Department by rule, that it has received an exemption under
11Section 501(c)(3) of the Internal Revenue Code and that is
12organized and operated primarily for the presentation or
13support of arts or cultural programming, activities, or
14services. These organizations include, but are not limited to,
15music and dramatic arts organizations such as symphony
16orchestras and theatrical groups, arts and cultural service
17organizations, local arts councils, visual arts organizations,
18and media arts organizations. On and after the effective date
19of this amendatory Act of the 92nd General Assembly, however,
20an entity otherwise eligible for this exemption shall not make
21tax-free purchases unless it has an active identification
22number issued by the Department.
23    (10) Personal property sold by a corporation, society,
24association, foundation, institution, or organization, other
25than a limited liability company, that is organized and
26operated as a not-for-profit service enterprise for the benefit

 

 

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1of persons 65 years of age or older if the personal property
2was not purchased by the enterprise for the purpose of resale
3by the enterprise.
4    (11) Personal property sold to a governmental body, to a
5corporation, society, association, foundation, or institution
6organized and operated exclusively for charitable, religious,
7or educational purposes, or to a not-for-profit corporation,
8society, association, foundation, institution, or organization
9that has no compensated officers or employees and that is
10organized and operated primarily for the recreation of persons
1155 years of age or older. A limited liability company may
12qualify for the exemption under this paragraph only if the
13limited liability company is organized and operated
14exclusively for educational purposes. On and after July 1,
151987, however, no entity otherwise eligible for this exemption
16shall make tax-free purchases unless it has an active
17identification number issued by the Department.
18    (12) Tangible personal property sold to interstate
19carriers for hire for use as rolling stock moving in interstate
20commerce or to lessors under leases of one year or longer
21executed or in effect at the time of purchase by interstate
22carriers for hire for use as rolling stock moving in interstate
23commerce and equipment operated by a telecommunications
24provider, licensed as a common carrier by the Federal
25Communications Commission, which is permanently installed in
26or affixed to aircraft moving in interstate commerce.

 

 

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1    (12-5) On and after July 1, 2003 and through June 30, 2004,
2motor vehicles of the second division with a gross vehicle
3weight in excess of 8,000 pounds that are subject to the
4commercial distribution fee imposed under Section 3-815.1 of
5the Illinois Vehicle Code. Beginning on July 1, 2004 and
6through June 30, 2005, the use in this State of motor vehicles
7of the second division: (i) with a gross vehicle weight rating
8in excess of 8,000 pounds; (ii) that are subject to the
9commercial distribution fee imposed under Section 3-815.1 of
10the Illinois Vehicle Code; and (iii) that are primarily used
11for commercial purposes. Through June 30, 2005, this exemption
12applies to repair and replacement parts added after the initial
13purchase of such a motor vehicle if that motor vehicle is used
14in a manner that would qualify for the rolling stock exemption
15otherwise provided for in this Act. For purposes of this
16paragraph, "used for commercial purposes" means the
17transportation of persons or property in furtherance of any
18commercial or industrial enterprise whether for-hire or not.
19    (13) Proceeds from sales to owners, lessors, or shippers of
20tangible personal property that is utilized by interstate
21carriers for hire for use as rolling stock moving in interstate
22commerce and equipment operated by a telecommunications
23provider, licensed as a common carrier by the Federal
24Communications Commission, which is permanently installed in
25or affixed to aircraft moving in interstate commerce.
26    (14) Machinery and equipment that will be used by the

 

 

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1purchaser, or a lessee of the purchaser, primarily in the
2process of manufacturing or assembling tangible personal
3property for wholesale or retail sale or lease, whether the
4sale or lease is made directly by the manufacturer or by some
5other person, whether the materials used in the process are
6owned by the manufacturer or some other person, or whether the
7sale or lease is made apart from or as an incident to the
8seller's engaging in the service occupation of producing
9machines, tools, dies, jigs, patterns, gauges, or other similar
10items of no commercial value on special order for a particular
11purchaser. The exemption provided by this paragraph (14) does
12not include machinery and equipment used in (i) the generation
13of electricity for wholesale or retail sale; (ii) the
14generation or treatment of natural or artificial gas for
15wholesale or retail sale that is delivered to customers through
16pipes, pipelines, or mains; or (iii) the treatment of water for
17wholesale or retail sale that is delivered to customers through
18pipes, pipelines, or mains. The provisions of Public Act 98-583
19are declaratory of existing law as to the meaning and scope of
20this exemption.
21    (15) Proceeds of mandatory service charges separately
22stated on customers' bills for purchase and consumption of food
23and beverages, to the extent that the proceeds of the service
24charge are in fact turned over as tips or as a substitute for
25tips to the employees who participate directly in preparing,
26serving, hosting or cleaning up the food or beverage function

 

 

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1with respect to which the service charge is imposed.
2    (16) Petroleum products sold to a purchaser if the seller
3is prohibited by federal law from charging tax to the
4purchaser.
5    (17) Tangible personal property sold to a common carrier by
6rail or motor that receives the physical possession of the
7property in Illinois and that transports the property, or
8shares with another common carrier in the transportation of the
9property, out of Illinois on a standard uniform bill of lading
10showing the seller of the property as the shipper or consignor
11of the property to a destination outside Illinois, for use
12outside Illinois.
13    (18) 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    (19) Until July 1 2003, and beginning again on July 1, 2016
18and ending on June 30, 2021, oil field exploration, drilling,
19and production equipment, including (i) rigs and parts of rigs,
20rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
21tubular goods, including casing and drill strings, (iii) pumps
22and pump-jack units, (iv) storage tanks and flow lines, (v) any
23individual replacement part for oil field exploration,
24drilling, and production equipment, and (vi) machinery and
25equipment purchased for lease; but excluding motor vehicles
26required to be registered under the Illinois Vehicle Code.

 

 

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1    (20) Photoprocessing machinery and equipment, including
2repair and replacement parts, both new and used, including that
3manufactured on special order, certified by the purchaser to be
4used primarily for photoprocessing, and including
5photoprocessing machinery and equipment purchased for lease.
6    (21) Coal and aggregate exploration, mining, off-highway
7hauling, processing, maintenance, and reclamation equipment,
8including replacement parts and equipment, and including
9equipment purchased for lease, but excluding motor vehicles
10required to be registered under the Illinois Vehicle Code. The
11changes made to this Section by Public Act 97-767 apply on and
12after July 1, 2003, but no claim for credit or refund is
13allowed on or after August 16, 2013 (the effective date of
14Public Act 98-456) for such taxes paid during the period
15beginning July 1, 2003 and ending on August 16, 2013 (the
16effective date of Public Act 98-456).
17    (22) Until June 30, 2013, fuel and petroleum products sold
18to or used by an air carrier, certified by the carrier to be
19used for consumption, shipment, or storage in the conduct of
20its business as an air common carrier, for a flight destined
21for or returning from a location or locations outside the
22United States without regard to previous or subsequent domestic
23stopovers.
24    Beginning July 1, 2013, fuel and petroleum products sold to
25or used by an air carrier, certified by the carrier to be used
26for consumption, shipment, or storage in the conduct of its

 

 

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1business as an air common carrier, for a flight that (i) is
2engaged in foreign trade or is engaged in trade between the
3United States and any of its possessions and (ii) transports at
4least one individual or package for hire from the city of
5origination to the city of final destination on the same
6aircraft, without regard to a change in the flight number of
7that aircraft.
8    (23) A transaction in which the purchase order is received
9by a florist who is located outside Illinois, but who has a
10florist located in Illinois deliver the property to the
11purchaser or the purchaser's donee in Illinois.
12    (24) Fuel consumed or used in the operation of ships,
13barges, or vessels that are used primarily in or for the
14transportation of property or the conveyance of persons for
15hire on rivers bordering on this State if the fuel is delivered
16by the seller to the purchaser's barge, ship, or vessel while
17it is afloat upon that bordering river.
18    (25) Except as provided in item (25-5) of this Section, a
19motor vehicle sold in this State to a nonresident even though
20the motor vehicle is delivered to the nonresident in this
21State, if the motor vehicle is not to be titled in this State,
22and if a drive-away permit is issued to the motor vehicle as
23provided in Section 3-603 of the Illinois Vehicle Code or if
24the nonresident purchaser has vehicle registration plates to
25transfer to the motor vehicle upon returning to his or her home
26state. The issuance of the drive-away permit or having the

 

 

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1out-of-state registration plates to be transferred is prima
2facie evidence that the motor vehicle will not be titled in
3this State.
4    (25-5) The exemption under item (25) does not apply if the
5state in which the motor vehicle will be titled does not allow
6a reciprocal exemption for a motor vehicle sold and delivered
7in that state to an Illinois resident but titled in Illinois.
8The tax collected under this Act on the sale of a motor vehicle
9in this State to a resident of another state that does not
10allow a reciprocal exemption shall be imposed at a rate equal
11to the state's rate of tax on taxable property in the state in
12which the purchaser is a resident, except that the tax shall
13not exceed the tax that would otherwise be imposed under this
14Act. At the time of the sale, the purchaser shall execute a
15statement, signed under penalty of perjury, of his or her
16intent to title the vehicle in the state in which the purchaser
17is a resident within 30 days after the sale and of the fact of
18the payment to the State of Illinois of tax in an amount
19equivalent to the state's rate of tax on taxable property in
20his or her state of residence and shall submit the statement to
21the appropriate tax collection agency in his or her state of
22residence. In addition, the retailer must retain a signed copy
23of the statement in his or her records. Nothing in this item
24shall be construed to require the removal of the vehicle from
25this state following the filing of an intent to title the
26vehicle in the purchaser's state of residence if the purchaser

 

 

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1titles the vehicle in his or her state of residence within 30
2days after the date of sale. The tax collected under this Act
3in accordance with this item (25-5) shall be proportionately
4distributed as if the tax were collected at the 6.25% general
5rate imposed under this Act.
6    (25-7) Beginning on July 1, 2007, no tax is imposed under
7this Act on the sale of an aircraft, as defined in Section 3 of
8the Illinois Aeronautics Act, if all of the following
9conditions are met:
10        (1) the aircraft leaves this State within 15 days after
11    the later of either the issuance of the final billing for
12    the sale of the aircraft, or the authorized approval for
13    return to service, completion of the maintenance record
14    entry, and completion of the test flight and ground test
15    for inspection, as required by 14 C.F.R. 91.407;
16        (2) the aircraft is not based or registered in this
17    State after the sale of the aircraft; and
18        (3) the seller retains in his or her books and records
19    and provides to the Department a signed and dated
20    certification from the purchaser, on a form prescribed by
21    the Department, certifying that the requirements of this
22    item (25-7) are met. The certificate must also include the
23    name and address of the purchaser, the address of the
24    location where the aircraft is to be titled or registered,
25    the address of the primary physical location of the
26    aircraft, and other information that the Department may

 

 

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1    reasonably require.
2    For purposes of this item (25-7):
3    "Based in this State" means hangared, stored, or otherwise
4used, excluding post-sale customizations as defined in this
5Section, for 10 or more days in each 12-month period
6immediately following the date of the sale of the aircraft.
7    "Registered in this State" means an aircraft registered
8with the Department of Transportation, Aeronautics Division,
9or titled or registered with the Federal Aviation
10Administration to an address located in this State.
11    This paragraph (25-7) is exempt from the provisions of
12Section 2-70.
13    (26) Semen used for artificial insemination of livestock
14for direct agricultural production.
15    (27) Horses, or interests in horses, registered with and
16meeting the requirements of any of the Arabian Horse Club
17Registry of America, Appaloosa Horse Club, American Quarter
18Horse Association, United States Trotting Association, or
19Jockey Club, as appropriate, used for purposes of breeding or
20racing for prizes. This item (27) is exempt from the provisions
21of Section 2-70, and the exemption provided for under this item
22(27) applies for all periods beginning May 30, 1995, but no
23claim for credit or refund is allowed on or after January 1,
242008 (the effective date of Public Act 95-88) for such taxes
25paid during the period beginning May 30, 2000 and ending on
26January 1, 2008 (the effective date of Public Act 95-88).

 

 

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1    (28) Computers and communications equipment utilized for
2any hospital purpose and equipment used in the diagnosis,
3analysis, or treatment of hospital patients sold to a lessor
4who leases the equipment, under a lease of one year or longer
5executed or in effect at the time of the purchase, to a
6hospital that has been issued an active tax exemption
7identification number by the Department under Section 1g of
8this Act.
9    (29) Personal property sold to a lessor who leases the
10property, under a lease of one year or longer executed or in
11effect at the time of the purchase, to a governmental body that
12has been issued an active tax exemption identification number
13by the Department under Section 1g of this Act.
14    (30) 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    (31) 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    (32) 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 2-70.
14    (33) 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    (34) 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 2-70.
20    (35) 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 2-70.
4    (35-5) Beginning August 23, 2001 and through June 30, 2016,
5food for human consumption that is to be consumed off the
6premises where it is sold (other than alcoholic beverages, soft
7drinks, and food that has been prepared for immediate
8consumption) and prescription and nonprescription medicines,
9drugs, medical appliances, and insulin, urine testing
10materials, syringes, and needles used by diabetics, for human
11use, when purchased for use by a person receiving medical
12assistance under Article V of the Illinois Public Aid Code who
13resides in a licensed long-term care facility, as defined in
14the Nursing Home Care Act, or a licensed facility as defined in
15the ID/DD Community Care Act, the MC/DD Act, or the Specialized
16Mental Health Rehabilitation Act of 2013.
17    (36) Beginning August 2, 2001, computers and
18communications equipment utilized for any hospital purpose and
19equipment used in the diagnosis, analysis, or treatment of
20hospital patients sold to a lessor who leases the equipment,
21under a lease of one year or longer executed or in effect at
22the time of the purchase, to a hospital that has been issued an
23active tax exemption identification number by the Department
24under Section 1g of this Act. This paragraph is exempt from the
25provisions of Section 2-70.
26    (37) Beginning August 2, 2001, personal property sold to a

 

 

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1lessor who leases the property, under a lease of one year or
2longer executed or in effect at the time of the purchase, to a
3governmental body that has been issued an active tax exemption
4identification number by the Department under Section 1g of
5this Act. This paragraph is exempt from the provisions of
6Section 2-70.
7    (38) Beginning on January 1, 2002 and through June 30,
82016, tangible personal property purchased from an Illinois
9retailer by a taxpayer engaged in centralized purchasing
10activities in Illinois who will, upon receipt of the property
11in Illinois, temporarily store the property in Illinois (i) for
12the purpose of subsequently transporting it outside this State
13for use or consumption thereafter solely outside this State or
14(ii) for the purpose of being processed, fabricated, or
15manufactured into, attached to, or incorporated into other
16tangible personal property to be transported outside this State
17and thereafter used or consumed solely outside this State. The
18Director of Revenue shall, pursuant to rules adopted in
19accordance with the Illinois Administrative Procedure Act,
20issue a permit to any taxpayer in good standing with the
21Department who is eligible for the exemption under this
22paragraph (38). The permit issued under this paragraph (38)
23shall authorize the holder, to the extent and in the manner
24specified in the rules adopted under this Act, to purchase
25tangible personal property from a retailer exempt from the
26taxes imposed by this Act. Taxpayers shall maintain all

 

 

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1necessary books and records to substantiate the use and
2consumption of all such tangible personal property outside of
3the State of Illinois.
4    (39) Beginning January 1, 2008, tangible personal property
5used in the construction or maintenance of a community water
6supply, as defined under Section 3.145 of the Environmental
7Protection Act, that is operated by a not-for-profit
8corporation that holds a valid water supply permit issued under
9Title IV of the Environmental Protection Act. This paragraph is
10exempt from the provisions of Section 2-70.
11    (40) Beginning January 1, 2010, materials, parts,
12equipment, components, and furnishings incorporated into or
13upon an aircraft as part of the modification, refurbishment,
14completion, replacement, repair, or maintenance of the
15aircraft. This exemption includes consumable supplies used in
16the modification, refurbishment, completion, replacement,
17repair, and maintenance of aircraft, but excludes any
18materials, parts, equipment, components, and consumable
19supplies used in the modification, replacement, repair, and
20maintenance of aircraft engines or power plants, whether such
21engines or power plants are installed or uninstalled upon any
22such aircraft. "Consumable supplies" include, but are not
23limited to, adhesive, tape, sandpaper, general purpose
24lubricants, cleaning solution, latex gloves, and protective
25films. This exemption applies only to the sale of qualifying
26tangible personal property to persons who modify, refurbish,

 

 

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1complete, replace, or maintain an aircraft and who (i) hold an
2Air Agency Certificate and are empowered to operate an approved
3repair station by the Federal Aviation Administration, (ii)
4have a Class IV Rating, and (iii) conduct operations in
5accordance with Part 145 of the Federal Aviation Regulations.
6The exemption does not include aircraft operated by a
7commercial air carrier providing scheduled passenger air
8service pursuant to authority issued under Part 121 or Part 129
9of the Federal Aviation Regulations. The changes made to this
10paragraph (40) by Public Act 98-534 are declarative of existing
11law.
12    (41) Tangible personal property sold to a
13public-facilities corporation, as described in Section
1411-65-10 of the Illinois Municipal Code, for purposes of
15constructing or furnishing a municipal convention hall, but
16only if the legal title to the municipal convention hall is
17transferred to the municipality without any further
18consideration by or on behalf of the municipality at the time
19of the completion of the municipal convention hall or upon the
20retirement or redemption of any bonds or other debt instruments
21issued by the public-facilities corporation in connection with
22the development of the municipal convention hall. This
23exemption includes existing public-facilities corporations as
24provided in Section 11-65-25 of the Illinois Municipal Code.
25This paragraph is exempt from the provisions of Section 2-70.
26(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;

 

 

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198-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
21-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff.
37-29-15.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.