[ Back ] [ Bottom ]
91_HB1905enr
HB1905 Enrolled LRB9101538PTpk
1 AN ACT concerning cultural organizations.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by changing
5 Section 3-5 as follows:
6 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
7 Sec. 3-5. Exemptions. Use of the following tangible
8 personal property is exempt from the tax imposed by this Act:
9 (1) Personal property purchased from a corporation,
10 society, association, foundation, institution, or
11 organization, other than a limited liability company, that is
12 organized and operated as a not-for-profit service enterprise
13 for the benefit of persons 65 years of age or older if the
14 personal property was not purchased by the enterprise for the
15 purpose of resale by the enterprise.
16 (2) Personal property purchased by a not-for-profit
17 Illinois county fair association for use in conducting,
18 operating, or promoting the county fair.
19 (3) Personal property purchased by a not-for-profit
20 music or dramatic arts or cultural organization that
21 establishes, by proof required by the Department by rule,
22 that it has received an exemption under Section 501(c)(3) of
23 the Internal Revenue Code and that is organized and operated
24 for the presentation or support of arts or cultural
25 programming, activities, or services. These organizations
26 include, but are not limited to, music and dramatic arts
27 organizations such as symphony orchestras and theatrical
28 groups, arts and cultural service organizations, local arts
29 councils, visual arts organizations, and media arts
30 organizations of live public performances of musical or
31 theatrical works on a regular basis.
HB1905 Enrolled -2- LRB9101538PTpk
1 (4) Personal property purchased by a governmental body,
2 by a corporation, society, association, foundation, or
3 institution organized and operated exclusively for
4 charitable, religious, or educational purposes, or by a
5 not-for-profit corporation, society, association, foundation,
6 institution, or organization that has no compensated officers
7 or employees and that is organized and operated primarily for
8 the recreation of persons 55 years of age or older. A limited
9 liability company may qualify for the exemption under this
10 paragraph only if the limited liability company is organized
11 and operated exclusively for educational purposes. On and
12 after July 1, 1987, however, no entity otherwise eligible for
13 this exemption shall make tax-free purchases unless it has an
14 active exemption identification number issued by the
15 Department.
16 (5) A passenger car that is a replacement vehicle to the
17 extent that the purchase price of the car is subject to the
18 Replacement Vehicle Tax.
19 (6) Graphic arts machinery and equipment, including
20 repair and replacement parts, both new and used, and
21 including that manufactured on special order, certified by
22 the purchaser to be used primarily for graphic arts
23 production, and including machinery and equipment purchased
24 for lease.
25 (7) Farm chemicals.
26 (8) Legal tender, currency, medallions, or gold or
27 silver coinage issued by the State of Illinois, the
28 government of the United States of America, or the government
29 of any foreign country, and bullion.
30 (9) Personal property purchased from a teacher-sponsored
31 student organization affiliated with an elementary or
32 secondary school located in Illinois.
33 (10) A motor vehicle of the first division, a motor
34 vehicle of the second division that is a self-contained motor
HB1905 Enrolled -3- LRB9101538PTpk
1 vehicle designed or permanently converted to provide living
2 quarters for recreational, camping, or travel use, with
3 direct walk through to the living quarters from the driver's
4 seat, or a motor vehicle of the second division that is of
5 the van configuration designed for the transportation of not
6 less than 7 nor more than 16 passengers, as defined in
7 Section 1-146 of the Illinois Vehicle Code, that is used for
8 automobile renting, as defined in the Automobile Renting
9 Occupation and Use Tax Act.
10 (11) Farm machinery and equipment, both new and used,
11 including that manufactured on special order, certified by
12 the purchaser to be used primarily for production agriculture
13 or State or federal agricultural programs, including
14 individual replacement parts for the machinery and equipment,
15 including machinery and equipment purchased for lease, and
16 including implements of husbandry defined in Section 1-130 of
17 the Illinois Vehicle Code, farm machinery and agricultural
18 chemical and fertilizer spreaders, and nurse wagons required
19 to be registered under Section 3-809 of the Illinois Vehicle
20 Code, but excluding other motor vehicles required to be
21 registered under the Illinois Vehicle Code. Horticultural
22 polyhouses or hoop houses used for propagating, growing, or
23 overwintering plants shall be considered farm machinery and
24 equipment under this item (11). Agricultural chemical tender
25 tanks and dry boxes shall include units sold separately from
26 a motor vehicle required to be licensed and units sold
27 mounted on a motor vehicle required to be licensed if the
28 selling price of the tender is separately stated.
29 Farm machinery and equipment shall include precision
30 farming equipment that is installed or purchased to be
31 installed on farm machinery and equipment including, but not
32 limited to, tractors, harvesters, sprayers, planters,
33 seeders, or spreaders. Precision farming equipment includes,
34 but is not limited to, soil testing sensors, computers,
HB1905 Enrolled -4- LRB9101538PTpk
1 monitors, software, global positioning and mapping systems,
2 and other such equipment.
3 Farm machinery and equipment also includes computers,
4 sensors, software, and related equipment used primarily in
5 the computer-assisted operation of production agriculture
6 facilities, equipment, and activities such as, but not
7 limited to, the collection, monitoring, and correlation of
8 animal and crop data for the purpose of formulating animal
9 diets and agricultural chemicals. This item (11) is exempt
10 from the provisions of Section 3-90.
11 (12) Fuel and petroleum products sold to or used by an
12 air common carrier, certified by the carrier to be used for
13 consumption, shipment, or storage in the conduct of its
14 business as an air common carrier, for a flight destined for
15 or returning from a location or locations outside the United
16 States without regard to previous or subsequent domestic
17 stopovers.
18 (13) Proceeds of mandatory service charges separately
19 stated on customers' bills for the purchase and consumption
20 of food and beverages purchased at retail from a retailer, to
21 the extent that the proceeds of the service charge are in
22 fact turned over as tips or as a substitute for tips to the
23 employees who participate directly in preparing, serving,
24 hosting or cleaning up the food or beverage function with
25 respect to which the service charge is imposed.
26 (14) Oil field exploration, drilling, and production
27 equipment, including (i) rigs and parts of rigs, rotary rigs,
28 cable tool rigs, and workover rigs, (ii) pipe and tubular
29 goods, including casing and drill strings, (iii) pumps and
30 pump-jack units, (iv) storage tanks and flow lines, (v) any
31 individual replacement part for oil field exploration,
32 drilling, and production equipment, and (vi) machinery and
33 equipment purchased for lease; but excluding motor vehicles
34 required to be registered under the Illinois Vehicle Code.
HB1905 Enrolled -5- LRB9101538PTpk
1 (15) Photoprocessing machinery and equipment, including
2 repair and replacement parts, both new and used, including
3 that manufactured on special order, certified by the
4 purchaser to be used primarily for photoprocessing, and
5 including photoprocessing machinery and equipment purchased
6 for lease.
7 (16) Coal exploration, mining, offhighway hauling,
8 processing, maintenance, and reclamation equipment, including
9 replacement parts and equipment, and including equipment
10 purchased for lease, but excluding motor vehicles required to
11 be registered under the Illinois Vehicle Code.
12 (17) Distillation machinery and equipment, sold as a
13 unit or kit, assembled or installed by the retailer,
14 certified by the user to be used only for the production of
15 ethyl alcohol that will be used for consumption as motor fuel
16 or as a component of motor fuel for the personal use of the
17 user, and not subject to sale or resale.
18 (18) Manufacturing and assembling machinery and
19 equipment used primarily in the process of manufacturing or
20 assembling tangible personal property for wholesale or retail
21 sale or lease, whether that sale or lease is made directly by
22 the manufacturer or by some other person, whether the
23 materials used in the process are owned by the manufacturer
24 or some other person, or whether that sale or lease is made
25 apart from or as an incident to the seller's engaging in the
26 service occupation of producing machines, tools, dies, jigs,
27 patterns, gauges, or other similar items of no commercial
28 value on special order for a particular purchaser.
29 (19) Personal property delivered to a purchaser or
30 purchaser's donee inside Illinois when the purchase order for
31 that personal property was received by a florist located
32 outside Illinois who has a florist located inside Illinois
33 deliver the personal property.
34 (20) Semen used for artificial insemination of livestock
HB1905 Enrolled -6- LRB9101538PTpk
1 for direct agricultural production.
2 (21) Horses, or interests in horses, registered with and
3 meeting the requirements of any of the Arabian Horse Club
4 Registry of America, Appaloosa Horse Club, American Quarter
5 Horse Association, United States Trotting Association, or
6 Jockey Club, as appropriate, used for purposes of breeding or
7 racing for prizes.
8 (22) Computers and communications equipment utilized for
9 any hospital purpose and equipment used in the diagnosis,
10 analysis, or treatment of hospital patients purchased by a
11 lessor who leases the equipment, under a lease of one year or
12 longer executed or in effect at the time the lessor would
13 otherwise be subject to the tax imposed by this Act, to a
14 hospital that has been issued an active tax exemption
15 identification number by the Department under Section 1g of
16 the Retailers' Occupation Tax Act. If the equipment is
17 leased in a manner that does not qualify for this exemption
18 or is used in any other non-exempt manner, the lessor shall
19 be liable for the tax imposed under this Act or the Service
20 Use Tax Act, as the case may be, based on the fair market
21 value of the property at the time the non-qualifying use
22 occurs. No lessor shall collect or attempt to collect an
23 amount (however designated) that purports to reimburse that
24 lessor for the tax imposed by this Act or the Service Use Tax
25 Act, as the case may be, if the tax has not been paid by the
26 lessor. If a lessor improperly collects any such amount from
27 the lessee, the lessee shall have a legal right to claim a
28 refund of that amount from the lessor. If, however, that
29 amount is not refunded to the lessee for any reason, the
30 lessor is liable to pay that amount to the Department.
31 (23) Personal property purchased by a lessor who leases
32 the property, under a lease of one year or longer executed
33 or in effect at the time the lessor would otherwise be
34 subject to the tax imposed by this Act, to a governmental
HB1905 Enrolled -7- LRB9101538PTpk
1 body that has been issued an active sales tax exemption
2 identification number by the Department under Section 1g of
3 the Retailers' Occupation Tax Act. If the property is leased
4 in a manner that does not qualify for this exemption or used
5 in any other non-exempt manner, the lessor shall be liable
6 for the tax imposed under this Act or the Service Use Tax
7 Act, as the case may be, based on the fair market value of
8 the property at the time the non-qualifying use occurs. No
9 lessor shall collect or attempt to collect an amount (however
10 designated) that purports to reimburse that lessor for the
11 tax imposed by this Act or the Service Use Tax Act, as the
12 case may be, if the tax has not been paid by the lessor. If
13 a lessor improperly collects any such amount from the lessee,
14 the lessee shall have a legal right to claim a refund of that
15 amount from the lessor. If, however, that amount is not
16 refunded to the lessee for any reason, the lessor is liable
17 to pay that amount to the Department.
18 (24) Beginning with taxable years ending on or after
19 December 31, 1995 and ending with taxable years ending on or
20 before December 31, 2004, personal property that is donated
21 for disaster relief to be used in a State or federally
22 declared disaster area in Illinois or bordering Illinois by a
23 manufacturer or retailer that is registered in this State to
24 a corporation, society, association, foundation, or
25 institution that has been issued a sales tax exemption
26 identification number by the Department that assists victims
27 of the disaster who reside within the declared disaster area.
28 (25) Beginning with taxable years ending on or after
29 December 31, 1995 and ending with taxable years ending on or
30 before December 31, 2004, personal property that is used in
31 the performance of infrastructure repairs in this State,
32 including but not limited to municipal roads and streets,
33 access roads, bridges, sidewalks, waste disposal systems,
34 water and sewer line extensions, water distribution and
HB1905 Enrolled -8- LRB9101538PTpk
1 purification facilities, storm water drainage and retention
2 facilities, and sewage treatment facilities, resulting from a
3 State or federally declared disaster in Illinois or bordering
4 Illinois when such repairs are initiated on facilities
5 located in the declared disaster area within 6 months after
6 the disaster.
7 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
8 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
9 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
10 eff. 12-12-97; 90-605, eff. 6-30-98.)
11 Section 10. The Service Use Tax Act is amended by
12 changing Section 3-5 as follows:
13 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
14 Sec. 3-5. Exemptions. Use of the following tangible
15 personal property is exempt from the tax imposed by this Act:
16 (1) Personal property purchased from a corporation,
17 society, association, foundation, institution, or
18 organization, other than a limited liability company, that is
19 organized and operated as a not-for-profit service enterprise
20 for the benefit of persons 65 years of age or older if the
21 personal property was not purchased by the enterprise for the
22 purpose of resale by the enterprise.
23 (2) Personal property purchased by a non-profit Illinois
24 county fair association for use in conducting, operating, or
25 promoting the county fair.
26 (3) Personal property purchased by a not-for-profit
27 music or dramatic arts or cultural organization that
28 establishes, by proof required by the Department by rule,
29 that it has received an exemption under Section 501(c)(3) of
30 the Internal Revenue Code and that is organized and operated
31 for the presentation or support of arts or cultural
32 programming, activities, or services. These organizations
HB1905 Enrolled -9- LRB9101538PTpk
1 include, but are not limited to, music and dramatic arts
2 organizations such as symphony orchestras and theatrical
3 groups, arts and cultural service organizations, local arts
4 councils, visual arts organizations, and media arts
5 organizations of live public performances of musical or
6 theatrical works on a regular basis.
7 (4) Legal tender, currency, medallions, or gold or
8 silver coinage issued by the State of Illinois, the
9 government of the United States of America, or the government
10 of any foreign country, and bullion.
11 (5) Graphic arts machinery and equipment, including
12 repair and replacement parts, both new and used, and
13 including that manufactured on special order or purchased for
14 lease, certified by the purchaser to be used primarily for
15 graphic arts production.
16 (6) Personal property purchased from a teacher-sponsored
17 student organization affiliated with an elementary or
18 secondary school located in Illinois.
19 (7) Farm machinery and equipment, both new and used,
20 including that manufactured on special order, certified by
21 the purchaser to be used primarily for production agriculture
22 or State or federal agricultural programs, including
23 individual replacement parts for the machinery and equipment,
24 including machinery and equipment purchased for lease, and
25 including implements of husbandry defined in Section 1-130 of
26 the Illinois Vehicle Code, farm machinery and agricultural
27 chemical and fertilizer spreaders, and nurse wagons required
28 to be registered under Section 3-809 of the Illinois Vehicle
29 Code, but excluding other motor vehicles required to be
30 registered under the Illinois Vehicle Code. Horticultural
31 polyhouses or hoop houses used for propagating, growing, or
32 overwintering plants shall be considered farm machinery and
33 equipment under this item (7). Agricultural chemical tender
34 tanks and dry boxes shall include units sold separately from
HB1905 Enrolled -10- LRB9101538PTpk
1 a motor vehicle required to be licensed and units sold
2 mounted on a motor vehicle required to be licensed if the
3 selling price of the tender is separately stated.
4 Farm machinery and equipment shall include precision
5 farming equipment that is installed or purchased to be
6 installed on farm machinery and equipment including, but not
7 limited to, tractors, harvesters, sprayers, planters,
8 seeders, or spreaders. Precision farming equipment includes,
9 but is not limited to, soil testing sensors, computers,
10 monitors, software, global positioning and mapping systems,
11 and other such equipment.
12 Farm machinery and equipment also includes computers,
13 sensors, software, and related equipment used primarily in
14 the computer-assisted operation of production agriculture
15 facilities, equipment, and activities such as, but not
16 limited to, the collection, monitoring, and correlation of
17 animal and crop data for the purpose of formulating animal
18 diets and agricultural chemicals. This item (7) is exempt
19 from the provisions of Section 3-75.
20 (8) Fuel and petroleum products sold to or used by an
21 air common carrier, certified by the carrier to be used for
22 consumption, shipment, or storage in the conduct of its
23 business as an air common carrier, for a flight destined for
24 or returning from a location or locations outside the United
25 States without regard to previous or subsequent domestic
26 stopovers.
27 (9) Proceeds of mandatory service charges separately
28 stated on customers' bills for the purchase and consumption
29 of food and beverages acquired as an incident to the purchase
30 of a service from a serviceman, to the extent that the
31 proceeds of the service charge are in fact turned over as
32 tips or as a substitute for tips to the employees who
33 participate directly in preparing, serving, hosting or
34 cleaning up the food or beverage function with respect to
HB1905 Enrolled -11- LRB9101538PTpk
1 which the service charge is imposed.
2 (10) Oil field exploration, drilling, and production
3 equipment, including (i) rigs and parts of rigs, rotary rigs,
4 cable tool rigs, and workover rigs, (ii) pipe and tubular
5 goods, including casing and drill strings, (iii) pumps and
6 pump-jack units, (iv) storage tanks and flow lines, (v) any
7 individual replacement part for oil field exploration,
8 drilling, and production equipment, and (vi) machinery and
9 equipment purchased for lease; but excluding motor vehicles
10 required to be registered under the Illinois Vehicle Code.
11 (11) Proceeds from the sale of photoprocessing machinery
12 and equipment, including repair and replacement parts, both
13 new and used, including that manufactured on special order,
14 certified by the purchaser to be used primarily for
15 photoprocessing, and including photoprocessing machinery and
16 equipment purchased for lease.
17 (12) Coal exploration, mining, offhighway hauling,
18 processing, maintenance, and reclamation equipment, including
19 replacement parts and equipment, and including equipment
20 purchased for lease, but excluding motor vehicles required to
21 be registered under the Illinois Vehicle Code.
22 (13) Semen used for artificial insemination of livestock
23 for direct agricultural production.
24 (14) Horses, or interests in horses, registered with and
25 meeting the requirements of any of the Arabian Horse Club
26 Registry of America, Appaloosa Horse Club, American Quarter
27 Horse Association, United States Trotting Association, or
28 Jockey Club, as appropriate, used for purposes of breeding or
29 racing for prizes.
30 (15) Computers and communications equipment utilized for
31 any hospital purpose and equipment used in the diagnosis,
32 analysis, or treatment of hospital patients purchased by a
33 lessor who leases the equipment, under a lease of one year or
34 longer executed or in effect at the time the lessor would
HB1905 Enrolled -12- LRB9101538PTpk
1 otherwise be subject to the tax imposed by this Act, to a
2 hospital that has been issued an active tax exemption
3 identification number by the Department under Section 1g of
4 the Retailers' Occupation Tax Act. If the equipment is leased
5 in a manner that does not qualify for this exemption or is
6 used in any other non-exempt manner, the lessor shall be
7 liable for the tax imposed under this Act or the Use Tax Act,
8 as the case may be, based on the fair market value of the
9 property at the time the non-qualifying use occurs. No
10 lessor shall collect or attempt to collect an amount (however
11 designated) that purports to reimburse that lessor for the
12 tax imposed by this Act or the Use Tax Act, as the case may
13 be, if the tax has not been paid by the lessor. If a lessor
14 improperly collects any such amount from the lessee, the
15 lessee shall have a legal right to claim a refund of that
16 amount from the lessor. If, however, that amount is not
17 refunded to the lessee for any reason, the lessor is liable
18 to pay that amount to the Department.
19 (16) Personal property purchased by a lessor who leases
20 the property, under a lease of one year or longer executed or
21 in effect at the time the lessor would otherwise be subject
22 to the tax imposed by this Act, to a governmental body that
23 has been issued an active tax exemption identification number
24 by the Department under Section 1g of the Retailers'
25 Occupation Tax Act. If the property is leased in a manner
26 that does not qualify for this exemption or is used in any
27 other non-exempt manner, the lessor shall be liable for the
28 tax imposed under this Act or the Use Tax Act, as the case
29 may be, based on the fair market value of the property at the
30 time the non-qualifying use occurs. No lessor shall collect
31 or attempt to collect an amount (however designated) that
32 purports to reimburse that lessor for the tax imposed by this
33 Act or the Use Tax Act, as the case may be, if the tax has
34 not been paid by the lessor. If a lessor improperly collects
HB1905 Enrolled -13- LRB9101538PTpk
1 any such amount from the lessee, the lessee shall have a
2 legal right to claim a refund of that amount from the lessor.
3 If, however, that amount is not refunded to the lessee for
4 any reason, the lessor is liable to pay that amount to the
5 Department.
6 (17) Beginning with taxable years ending on or after
7 December 31, 1995 and ending with taxable years ending on or
8 before December 31, 2004, personal property that is donated
9 for disaster relief to be used in a State or federally
10 declared disaster area in Illinois or bordering Illinois by a
11 manufacturer or retailer that is registered in this State to
12 a corporation, society, association, foundation, or
13 institution that has been issued a sales tax exemption
14 identification number by the Department that assists victims
15 of the disaster who reside within the declared disaster area.
16 (18) Beginning with taxable years ending on or after
17 December 31, 1995 and ending with taxable years ending on or
18 before December 31, 2004, personal property that is used in
19 the performance of infrastructure repairs in this State,
20 including but not limited to municipal roads and streets,
21 access roads, bridges, sidewalks, waste disposal systems,
22 water and sewer line extensions, water distribution and
23 purification facilities, storm water drainage and retention
24 facilities, and sewage treatment facilities, resulting from a
25 State or federally declared disaster in Illinois or bordering
26 Illinois when such repairs are initiated on facilities
27 located in the declared disaster area within 6 months after
28 the disaster.
29 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
30 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
31 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
32 eff. 12-12-97; 90-605, eff. 6-30-98.)
33 Section 15. The Service Occupation Tax Act is amended by
HB1905 Enrolled -14- LRB9101538PTpk
1 changing Section 3-5 as follows:
2 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
3 Sec. 3-5. Exemptions. The following tangible personal
4 property is exempt from the tax imposed by this Act:
5 (1) Personal property sold by a corporation, society,
6 association, foundation, institution, or organization, other
7 than a limited liability company, that is organized and
8 operated as a not-for-profit service enterprise for the
9 benefit of persons 65 years of age or older if the personal
10 property was not purchased by the enterprise for the purpose
11 of resale by the enterprise.
12 (2) Personal property purchased by a not-for-profit
13 Illinois county fair association for use in conducting,
14 operating, or promoting the county fair.
15 (3) Personal property purchased by any not-for-profit
16 music or dramatic arts or cultural organization that
17 establishes, by proof required by the Department by rule,
18 that it has received an exemption under Section 501(c)(3) of
19 the Internal Revenue Code and that is organized and operated
20 for the presentation or support of arts or cultural
21 programming, activities, or services. These organizations
22 include, but are not limited to, music and dramatic arts
23 organizations such as symphony orchestras and theatrical
24 groups, arts and cultural service organizations, local arts
25 councils, visual arts organizations, and media arts
26 organizations of live public performances of musical or
27 theatrical works on a regular basis.
28 (4) Legal tender, currency, medallions, or gold or
29 silver coinage issued by the State of Illinois, the
30 government of the United States of America, or the government
31 of any foreign country, and bullion.
32 (5) Graphic arts machinery and equipment, including
33 repair and replacement parts, both new and used, and
HB1905 Enrolled -15- LRB9101538PTpk
1 including that manufactured on special order or purchased for
2 lease, certified by the purchaser to be used primarily for
3 graphic arts production.
4 (6) Personal property sold by a teacher-sponsored
5 student organization affiliated with an elementary or
6 secondary school located in Illinois.
7 (7) Farm machinery and equipment, both new and used,
8 including that manufactured on special order, certified by
9 the purchaser to be used primarily for production agriculture
10 or State or federal agricultural programs, including
11 individual replacement parts for the machinery and equipment,
12 including machinery and equipment purchased for lease, and
13 including implements of husbandry defined in Section 1-130 of
14 the Illinois Vehicle Code, farm machinery and agricultural
15 chemical and fertilizer spreaders, and nurse wagons required
16 to be registered under Section 3-809 of the Illinois Vehicle
17 Code, but excluding other motor vehicles required to be
18 registered under the Illinois Vehicle Code. Horticultural
19 polyhouses or hoop houses used for propagating, growing, or
20 overwintering plants shall be considered farm machinery and
21 equipment under this item (7). Agricultural chemical tender
22 tanks and dry boxes shall include units sold separately from
23 a motor vehicle required to be licensed and units sold
24 mounted on a motor vehicle required to be licensed if the
25 selling price of the tender is separately stated.
26 Farm machinery and equipment shall include precision
27 farming equipment that is installed or purchased to be
28 installed on farm machinery and equipment including, but not
29 limited to, tractors, harvesters, sprayers, planters,
30 seeders, or spreaders. Precision farming equipment includes,
31 but is not limited to, soil testing sensors, computers,
32 monitors, software, global positioning and mapping systems,
33 and other such equipment.
34 Farm machinery and equipment also includes computers,
HB1905 Enrolled -16- LRB9101538PTpk
1 sensors, software, and related equipment used primarily in
2 the computer-assisted operation of production agriculture
3 facilities, equipment, and activities such as, but not
4 limited to, the collection, monitoring, and correlation of
5 animal and crop data for the purpose of formulating animal
6 diets and agricultural chemicals. This item (7) is exempt
7 from the provisions of Section 3-75.
8 (8) Fuel and petroleum products sold to or used by an
9 air common carrier, certified by the carrier to be used for
10 consumption, shipment, or storage in the conduct of its
11 business as an air common carrier, for a flight destined for
12 or returning from a location or locations outside the United
13 States without regard to previous or subsequent domestic
14 stopovers.
15 (9) Proceeds of mandatory service charges separately
16 stated on customers' bills for the purchase and consumption
17 of food and beverages, to the extent that the proceeds of the
18 service charge are in fact turned over as tips or as a
19 substitute for tips to the employees who participate directly
20 in preparing, serving, hosting or cleaning up the food or
21 beverage function with respect to which the service charge is
22 imposed.
23 (10) Oil field exploration, drilling, and production
24 equipment, including (i) rigs and parts of rigs, rotary rigs,
25 cable tool rigs, and workover rigs, (ii) pipe and tubular
26 goods, including casing and drill strings, (iii) pumps and
27 pump-jack units, (iv) storage tanks and flow lines, (v) any
28 individual replacement part for oil field exploration,
29 drilling, and production equipment, and (vi) machinery and
30 equipment purchased for lease; but excluding motor vehicles
31 required to be registered under the Illinois Vehicle Code.
32 (11) Photoprocessing machinery and equipment, including
33 repair and replacement parts, both new and used, including
34 that manufactured on special order, certified by the
HB1905 Enrolled -17- LRB9101538PTpk
1 purchaser to be used primarily for photoprocessing, and
2 including photoprocessing machinery and equipment purchased
3 for lease.
4 (12) Coal exploration, mining, offhighway hauling,
5 processing, maintenance, and reclamation equipment, including
6 replacement parts and equipment, and including equipment
7 purchased for lease, but excluding motor vehicles required to
8 be registered under the Illinois Vehicle Code.
9 (13) Food for human consumption that is to be consumed
10 off the premises where it is sold (other than alcoholic
11 beverages, soft drinks and food that has been prepared for
12 immediate consumption) and prescription and non-prescription
13 medicines, drugs, medical appliances, and insulin, urine
14 testing materials, syringes, and needles used by diabetics,
15 for human use, when purchased for use by a person receiving
16 medical assistance under Article 5 of the Illinois Public Aid
17 Code who resides in a licensed long-term care facility, as
18 defined in the Nursing Home Care Act.
19 (14) Semen used for artificial insemination of livestock
20 for direct agricultural production.
21 (15) Horses, or interests in horses, registered with and
22 meeting the requirements of any of the Arabian Horse Club
23 Registry of America, Appaloosa Horse Club, American Quarter
24 Horse Association, United States Trotting Association, or
25 Jockey Club, as appropriate, used for purposes of breeding or
26 racing for prizes.
27 (16) Computers and communications equipment utilized for
28 any hospital purpose and equipment used in the diagnosis,
29 analysis, or treatment of hospital patients sold to a lessor
30 who leases the equipment, under a lease of one year or longer
31 executed or in effect at the time of the purchase, to a
32 hospital that has been issued an active tax exemption
33 identification number by the Department under Section 1g of
34 the Retailers' Occupation Tax Act.
HB1905 Enrolled -18- LRB9101538PTpk
1 (17) Personal property sold to a lessor who leases the
2 property, under a lease of one year or longer executed or in
3 effect at the time of the purchase, to a governmental body
4 that has been issued an active tax exemption identification
5 number by the Department under Section 1g of the Retailers'
6 Occupation Tax Act.
7 (18) Beginning with taxable years ending on or after
8 December 31, 1995 and ending with taxable years ending on or
9 before December 31, 2004, personal property that is donated
10 for disaster relief to be used in a State or federally
11 declared disaster area in Illinois or bordering Illinois by a
12 manufacturer or retailer that is registered in this State to
13 a corporation, society, association, foundation, or
14 institution that has been issued a sales tax exemption
15 identification number by the Department that assists victims
16 of the disaster who reside within the declared disaster area.
17 (19) Beginning with taxable years ending on or after
18 December 31, 1995 and ending with taxable years ending on or
19 before December 31, 2004, personal property that is used in
20 the performance of infrastructure repairs in this State,
21 including but not limited to municipal roads and streets,
22 access roads, bridges, sidewalks, waste disposal systems,
23 water and sewer line extensions, water distribution and
24 purification facilities, storm water drainage and retention
25 facilities, and sewage treatment facilities, resulting from a
26 State or federally declared disaster in Illinois or bordering
27 Illinois when such repairs are initiated on facilities
28 located in the declared disaster area within 6 months after
29 the disaster.
30 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
31 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
32 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
33 eff. 12-12-97; 90-605, eff. 6-30-98.)
HB1905 Enrolled -19- LRB9101538PTpk
1 Section 20. The Retailers' Occupation Tax Act is amended
2 by changing Section 2-5 as follows:
3 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
4 Sec. 2-5. Exemptions. Gross receipts from proceeds from
5 the sale of the following tangible personal property are
6 exempt from the tax imposed by this Act:
7 (1) Farm chemicals.
8 (2) Farm machinery and equipment, both new and used,
9 including that manufactured on special order, certified by
10 the purchaser to be used primarily for production agriculture
11 or State or federal agricultural programs, including
12 individual replacement parts for the machinery and equipment,
13 including machinery and equipment purchased for lease, and
14 including implements of husbandry defined in Section 1-130 of
15 the Illinois Vehicle Code, farm machinery and agricultural
16 chemical and fertilizer spreaders, and nurse wagons required
17 to be registered under Section 3-809 of the Illinois Vehicle
18 Code, but excluding other motor vehicles required to be
19 registered under the Illinois Vehicle Code. Horticultural
20 polyhouses or hoop houses used for propagating, growing, or
21 overwintering plants shall be considered farm machinery and
22 equipment under this item (2). Agricultural chemical tender
23 tanks and dry boxes shall include units sold separately from
24 a motor vehicle required to be licensed and units sold
25 mounted on a motor vehicle required to be licensed, if the
26 selling price of the tender is separately stated.
27 Farm machinery and equipment shall include precision
28 farming equipment that is installed or purchased to be
29 installed on farm machinery and equipment including, but not
30 limited to, tractors, harvesters, sprayers, planters,
31 seeders, or spreaders. Precision farming equipment includes,
32 but is not limited to, soil testing sensors, computers,
33 monitors, software, global positioning and mapping systems,
HB1905 Enrolled -20- LRB9101538PTpk
1 and other such equipment.
2 Farm machinery and equipment also includes computers,
3 sensors, software, and related equipment used primarily in
4 the computer-assisted operation of production agriculture
5 facilities, equipment, and activities such as, but not
6 limited to, the collection, monitoring, and correlation of
7 animal and crop data for the purpose of formulating animal
8 diets and agricultural chemicals. This item (7) is exempt
9 from the provisions of Section 3-75.
10 (3) Distillation machinery and equipment, sold as a unit
11 or kit, assembled or installed by the retailer, certified by
12 the user to be used only for the production of ethyl alcohol
13 that will be used for consumption as motor fuel or as a
14 component of motor fuel for the personal use of the user, and
15 not subject to sale or resale.
16 (4) Graphic arts machinery and equipment, including
17 repair and replacement parts, both new and used, and
18 including that manufactured on special order or purchased for
19 lease, certified by the purchaser to be used primarily for
20 graphic arts production.
21 (5) A motor vehicle of the first division, a motor
22 vehicle of the second division that is a self-contained motor
23 vehicle designed or permanently converted to provide living
24 quarters for recreational, camping, or travel use, with
25 direct walk through access to the living quarters from the
26 driver's seat, or a motor vehicle of the second division that
27 is of the van configuration designed for the transportation
28 of not less than 7 nor more than 16 passengers, as defined in
29 Section 1-146 of the Illinois Vehicle Code, that is used for
30 automobile renting, as defined in the Automobile Renting
31 Occupation and Use Tax Act.
32 (6) Personal property sold by a teacher-sponsored
33 student organization affiliated with an elementary or
34 secondary school located in Illinois.
HB1905 Enrolled -21- LRB9101538PTpk
1 (7) Proceeds of that portion of the selling price of a
2 passenger car the sale of which is subject to the Replacement
3 Vehicle Tax.
4 (8) Personal property sold to an Illinois county fair
5 association for use in conducting, operating, or promoting
6 the county fair.
7 (9) Personal property sold to a not-for-profit music or
8 dramatic arts or cultural organization that establishes, by
9 proof required by the Department by rule, that it has
10 received an exemption under Section 501(c) (3) of the
11 Internal Revenue Code and that is organized and operated for
12 the presentation or support of arts or cultural programming,
13 activities, or services. These organizations include, but
14 are not limited to, music and dramatic arts organizations
15 such as symphony orchestras and theatrical groups, arts and
16 cultural service organizations, local arts councils, visual
17 arts organizations, and media arts organizations of live
18 public performances of musical or theatrical works on a
19 regular basis.
20 (10) Personal property sold by a corporation, society,
21 association, foundation, institution, or organization, other
22 than a limited liability company, that is organized and
23 operated as a not-for-profit service enterprise for the
24 benefit of persons 65 years of age or older if the personal
25 property was not purchased by the enterprise for the purpose
26 of resale by the enterprise.
27 (11) Personal property sold to a governmental body, to a
28 corporation, society, association, foundation, or institution
29 organized and operated exclusively for charitable, religious,
30 or educational purposes, or to a not-for-profit corporation,
31 society, association, foundation, institution, or
32 organization that has no compensated officers or employees
33 and that is organized and operated primarily for the
34 recreation of persons 55 years of age or older. A limited
HB1905 Enrolled -22- LRB9101538PTpk
1 liability company may qualify for the exemption under this
2 paragraph only if the limited liability company is organized
3 and operated exclusively for educational purposes. On and
4 after July 1, 1987, however, no entity otherwise eligible for
5 this exemption shall make tax-free purchases unless it has an
6 active identification number issued by the Department.
7 (12) Personal property sold to interstate carriers for
8 hire for use as rolling stock moving in interstate commerce
9 or to lessors under leases of one year or longer executed or
10 in effect at the time of purchase by interstate carriers for
11 hire for use as rolling stock moving in interstate commerce
12 and equipment operated by a telecommunications provider,
13 licensed as a common carrier by the Federal Communications
14 Commission, which is permanently installed in or affixed to
15 aircraft moving in interstate commerce.
16 (13) Proceeds from sales to owners, lessors, or shippers
17 of tangible personal property that is utilized by interstate
18 carriers for hire for use as rolling stock moving in
19 interstate commerce and equipment operated by a
20 telecommunications provider, licensed as a common carrier by
21 the Federal Communications Commission, which is permanently
22 installed in or affixed to aircraft moving in interstate
23 commerce.
24 (14) Machinery and equipment that will be used by the
25 purchaser, or a lessee of the purchaser, primarily in the
26 process of manufacturing or assembling tangible personal
27 property for wholesale or retail sale or lease, whether the
28 sale or lease is made directly by the manufacturer or by some
29 other person, whether the materials used in the process are
30 owned by the manufacturer or some other person, or whether
31 the sale or lease is made apart from or as an incident to the
32 seller's engaging in the service occupation of producing
33 machines, tools, dies, jigs, patterns, gauges, or other
34 similar items of no commercial value on special order for a
HB1905 Enrolled -23- LRB9101538PTpk
1 particular purchaser.
2 (15) Proceeds of mandatory service charges separately
3 stated on customers' bills for purchase and consumption of
4 food and beverages, to the extent that the proceeds of the
5 service charge are in fact turned over as tips or as a
6 substitute for tips to the employees who participate directly
7 in preparing, serving, hosting or cleaning up the food or
8 beverage function with respect to which the service charge is
9 imposed.
10 (16) Petroleum products sold to a purchaser if the
11 seller is prohibited by federal law from charging tax to the
12 purchaser.
13 (17) Tangible personal property sold to a common carrier
14 by rail or motor that receives the physical possession of the
15 property in Illinois and that transports the property, or
16 shares with another common carrier in the transportation of
17 the property, out of Illinois on a standard uniform bill of
18 lading showing the seller of the property as the shipper or
19 consignor of the property to a destination outside Illinois,
20 for use outside Illinois.
21 (18) Legal tender, currency, medallions, or gold or
22 silver coinage issued by the State of Illinois, the
23 government of the United States of America, or the government
24 of any foreign country, and bullion.
25 (19) Oil field exploration, drilling, and production
26 equipment, including (i) rigs and parts of rigs, rotary rigs,
27 cable tool rigs, and workover rigs, (ii) pipe and tubular
28 goods, including casing and drill strings, (iii) pumps and
29 pump-jack units, (iv) storage tanks and flow lines, (v) any
30 individual replacement part for oil field exploration,
31 drilling, and production equipment, and (vi) machinery and
32 equipment purchased for lease; but excluding motor vehicles
33 required to be registered under the Illinois Vehicle Code.
34 (20) Photoprocessing machinery and equipment, including
HB1905 Enrolled -24- LRB9101538PTpk
1 repair and replacement parts, both new and used, including
2 that manufactured on special order, certified by the
3 purchaser to be used primarily for photoprocessing, and
4 including photoprocessing machinery and equipment purchased
5 for lease.
6 (21) Coal exploration, mining, offhighway hauling,
7 processing, maintenance, and reclamation equipment, including
8 replacement parts and equipment, and including equipment
9 purchased for lease, but excluding motor vehicles required to
10 be registered under the Illinois Vehicle Code.
11 (22) Fuel and petroleum products sold to or used by an
12 air carrier, certified by the carrier to be used for
13 consumption, shipment, or storage in the conduct of its
14 business as an air common carrier, for a flight destined for
15 or returning from a location or locations outside the United
16 States without regard to previous or subsequent domestic
17 stopovers.
18 (23) A transaction in which the purchase order is
19 received by a florist who is located outside Illinois, but
20 who has a florist located in Illinois deliver the property to
21 the purchaser or the purchaser's donee in Illinois.
22 (24) Fuel consumed or used in the operation of ships,
23 barges, or vessels that are used primarily in or for the
24 transportation of property or the conveyance of persons for
25 hire on rivers bordering on this State if the fuel is
26 delivered by the seller to the purchaser's barge, ship, or
27 vessel while it is afloat upon that bordering river.
28 (25) A motor vehicle sold in this State to a nonresident
29 even though the motor vehicle is delivered to the nonresident
30 in this State, if the motor vehicle is not to be titled in
31 this State, and if a driveaway decal permit is issued to the
32 motor vehicle as provided in Section 3-603 of the Illinois
33 Vehicle Code or if the nonresident purchaser has vehicle
34 registration plates to transfer to the motor vehicle upon
HB1905 Enrolled -25- LRB9101538PTpk
1 returning to his or her home state. The issuance of the
2 driveaway decal permit or having the out-of-state
3 registration plates to be transferred is prima facie evidence
4 that the motor vehicle will not be titled in this State.
5 (26) Semen used for artificial insemination of livestock
6 for direct agricultural production.
7 (27) Horses, or interests in horses, registered with and
8 meeting the requirements of any of the Arabian Horse Club
9 Registry of America, Appaloosa Horse Club, American Quarter
10 Horse Association, United States Trotting Association, or
11 Jockey Club, as appropriate, used for purposes of breeding or
12 racing for prizes.
13 (28) Computers and communications equipment utilized for
14 any hospital purpose and equipment used in the diagnosis,
15 analysis, or treatment of hospital patients sold to a lessor
16 who leases the equipment, under a lease of one year or longer
17 executed or in effect at the time of the purchase, to a
18 hospital that has been issued an active tax exemption
19 identification number by the Department under Section 1g of
20 this Act.
21 (29) Personal property sold to a lessor who leases the
22 property, under a lease of one year or longer executed or in
23 effect at the time of the purchase, to a governmental body
24 that has been issued an active tax exemption identification
25 number by the Department under Section 1g of this Act.
26 (30) Beginning with taxable years ending on or after
27 December 31, 1995 and ending with taxable years ending on or
28 before December 31, 2004, personal property that is donated
29 for disaster relief to be used in a State or federally
30 declared disaster area in Illinois or bordering Illinois by a
31 manufacturer or retailer that is registered in this State to
32 a corporation, society, association, foundation, or
33 institution that has been issued a sales tax exemption
34 identification number by the Department that assists victims
HB1905 Enrolled -26- LRB9101538PTpk
1 of the disaster who reside within the declared disaster area.
2 (31) Beginning with taxable years ending on or after
3 December 31, 1995 and ending with taxable years ending on or
4 before December 31, 2004, personal property that is used in
5 the performance of infrastructure repairs in this State,
6 including but not limited to municipal roads and streets,
7 access roads, bridges, sidewalks, waste disposal systems,
8 water and sewer line extensions, water distribution and
9 purification facilities, storm water drainage and retention
10 facilities, and sewage treatment facilities, resulting from a
11 State or federally declared disaster in Illinois or bordering
12 Illinois when such repairs are initiated on facilities
13 located in the declared disaster area within 6 months after
14 the disaster.
15 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
16 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
17 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-519,
18 eff. 6-1-98; 90-552, eff. 12-12-97; 90-605, eff. 6-30-98.)
19 Section 99. Effective date. This Act takes effect upon
20 becoming law.
[ Top ]