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1 | AN ACT concerning taxes.
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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 Section | ||||||||||||||||||||||||||||||
5 | 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
arts or | ||||||||||||||||||||||||||||||
20 | cultural organization that establishes, by proof required by | ||||||||||||||||||||||||||||||
21 | the
Department by
rule, that it has received an exemption under | ||||||||||||||||||||||||||||||
22 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||||||||||||||||||||||||||
23 | organized and operated primarily for the
presentation
or | ||||||||||||||||||||||||||||||
24 | support of arts or cultural programming, activities, or | ||||||||||||||||||||||||||||||
25 | services. These
organizations include, but are not limited to, | ||||||||||||||||||||||||||||||
26 | music and dramatic arts
organizations such as symphony | ||||||||||||||||||||||||||||||
27 | orchestras and theatrical groups, arts and
cultural service | ||||||||||||||||||||||||||||||
28 | organizations, local arts councils, visual arts organizations,
| ||||||||||||||||||||||||||||||
29 | and media arts organizations.
On and after the effective date | ||||||||||||||||||||||||||||||
30 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||||||||||||||||||||||||||
31 | an entity otherwise eligible for this exemption shall not
make | ||||||||||||||||||||||||||||||
32 | tax-free purchases unless it has an active identification |
| |||||||
| |||||||
1 | number issued by
the Department.
| ||||||
2 | (4) Personal property purchased by a governmental body, by | ||||||
3 | a
corporation, society, association, foundation, or | ||||||
4 | institution organized and
operated exclusively for charitable, | ||||||
5 | religious, or educational purposes, or
by a not-for-profit | ||||||
6 | corporation, society, association, foundation,
institution, or | ||||||
7 | organization that has no compensated officers or employees
and | ||||||
8 | that is organized and operated primarily for the recreation of | ||||||
9 | persons
55 years of age or older. A limited liability company | ||||||
10 | may qualify for the
exemption under this paragraph only if the | ||||||
11 | limited liability company is
organized and operated | ||||||
12 | exclusively for educational purposes. On and after July
1, | ||||||
13 | 1987, however, no entity otherwise eligible for this exemption | ||||||
14 | shall make
tax-free purchases unless it has an active exemption | ||||||
15 | identification number
issued by the Department.
| ||||||
16 | (5) Until July 1, 2003, a passenger car that is a | ||||||
17 | replacement vehicle to
the extent that the
purchase price of | ||||||
18 | the car is subject to the Replacement Vehicle Tax.
| ||||||
19 | (6) Until July 1, 2003 and beginning again on September 1, | ||||||
20 | 2004, graphic arts machinery and equipment, including
repair | ||||||
21 | and replacement
parts, both new and used, and including that | ||||||
22 | manufactured on special order,
certified by the purchaser to be | ||||||
23 | used primarily for graphic arts production,
and including | ||||||
24 | machinery and equipment purchased for lease.
Equipment | ||||||
25 | includes chemicals or chemicals acting as catalysts but only if
| ||||||
26 | the
chemicals or chemicals acting as catalysts effect a direct | ||||||
27 | and immediate change
upon a graphic arts product.
| ||||||
28 | (7) Farm chemicals.
| ||||||
29 | (8) Legal tender, currency, medallions, or gold or silver | ||||||
30 | coinage issued by
the State of Illinois, the government of the | ||||||
31 | United States of America, or the
government of any foreign | ||||||
32 | country, and bullion.
| ||||||
33 | (9) Personal property purchased from a teacher-sponsored | ||||||
34 | student
organization affiliated with an elementary or | ||||||
35 | secondary school located in
Illinois.
| ||||||
36 | (10) A motor vehicle of the first division, a motor vehicle |
| |||||||
| |||||||
1 | of the
second division that is a self-contained motor vehicle | ||||||
2 | designed or
permanently converted to provide living quarters | ||||||
3 | for recreational, camping,
or travel use, with direct walk | ||||||
4 | through to the living quarters from the
driver's seat, or a | ||||||
5 | motor vehicle of the second division that is of the
van | ||||||
6 | configuration designed for the transportation of not less than | ||||||
7 | 7 nor
more than 16 passengers, as defined in Section 1-146 of | ||||||
8 | the Illinois
Vehicle Code, that is used for automobile renting, | ||||||
9 | as defined in the
Automobile Renting Occupation and Use Tax | ||||||
10 | Act.
| ||||||
11 | (11) Farm machinery and equipment, both new and used,
| ||||||
12 | including that manufactured on special order, certified by the | ||||||
13 | purchaser
to be used primarily for production agriculture or | ||||||
14 | State or federal
agricultural programs, including individual | ||||||
15 | replacement parts for
the machinery and equipment, including | ||||||
16 | machinery and equipment
purchased
for lease,
and including | ||||||
17 | implements of husbandry defined in Section 1-130 of
the | ||||||
18 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
19 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
20 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
21 | but excluding other motor
vehicles required to be
registered | ||||||
22 | under the Illinois Vehicle Code.
Horticultural polyhouses or | ||||||
23 | hoop houses used for propagating, growing, or
overwintering | ||||||
24 | plants shall be considered farm machinery and equipment under
| ||||||
25 | this item (11).
Agricultural chemical tender tanks and dry | ||||||
26 | boxes shall include units sold
separately from a motor vehicle | ||||||
27 | required to be licensed and units sold mounted
on a motor | ||||||
28 | vehicle required to be licensed if the selling price of the | ||||||
29 | tender
is separately stated.
| ||||||
30 | Farm machinery and equipment shall include precision | ||||||
31 | farming equipment
that is
installed or purchased to be | ||||||
32 | installed on farm machinery and equipment
including, but not | ||||||
33 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
34 | or spreaders.
Precision farming equipment includes, but is not | ||||||
35 | limited to, soil testing
sensors, computers, monitors, | ||||||
36 | software, global positioning
and mapping systems, and other |
| |||||||
| |||||||
1 | such equipment.
| ||||||
2 | Farm machinery and equipment also includes computers, | ||||||
3 | sensors, software, and
related equipment used primarily in the
| ||||||
4 | computer-assisted operation of production agriculture | ||||||
5 | facilities, equipment,
and
activities such as, but not limited | ||||||
6 | to,
the collection, monitoring, and correlation of
animal and | ||||||
7 | crop data for the purpose of
formulating animal diets and | ||||||
8 | agricultural chemicals. This item (11) is exempt
from the | ||||||
9 | provisions of
Section 3-90.
| ||||||
10 | (12) Fuel and petroleum products sold to or used by an air | ||||||
11 | common
carrier, certified by the carrier to be used for | ||||||
12 | consumption, shipment, or
storage in the conduct of its | ||||||
13 | business as an air common carrier, for a
flight destined for or | ||||||
14 | returning from a location or locations
outside the United | ||||||
15 | States without regard to previous or subsequent domestic
| ||||||
16 | stopovers.
| ||||||
17 | (13) Proceeds of mandatory service charges separately
| ||||||
18 | stated on customers' bills for the purchase and consumption of | ||||||
19 | food and
beverages purchased at retail from a retailer, to the | ||||||
20 | extent that the proceeds
of the service charge are in fact | ||||||
21 | turned over as tips or as a substitute
for tips to the | ||||||
22 | employees who participate directly in preparing, serving,
| ||||||
23 | hosting or cleaning up the food or beverage function with | ||||||
24 | respect to which
the service charge is imposed.
| ||||||
25 | (14) Until July 1, 2003, oil field exploration, drilling, | ||||||
26 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
27 | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | ||||||
28 | tubular goods,
including casing and drill strings, (iii) pumps | ||||||
29 | and 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 | (15) Photoprocessing machinery and equipment, including | ||||||
35 | repair and
replacement parts, both new and used, including that
| ||||||
36 | manufactured on special order, certified by the purchaser to be |
| |||||||
| |||||||
1 | used
primarily for photoprocessing, and including
| ||||||
2 | photoprocessing machinery and equipment purchased for lease.
| ||||||
3 | (16) Until July 1, 2003, coal exploration, mining, | ||||||
4 | offhighway hauling,
processing, maintenance, and reclamation | ||||||
5 | equipment,
including replacement parts and equipment, and
| ||||||
6 | including equipment purchased for lease, but excluding motor
| ||||||
7 | vehicles required to be registered under the Illinois Vehicle | ||||||
8 | Code.
| ||||||
9 | (17) Until July 1, 2003, distillation machinery and | ||||||
10 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
11 | retailer, certified by the user to be used
only for the | ||||||
12 | production of ethyl alcohol that will be used for consumption
| ||||||
13 | as motor fuel or as a component of motor fuel for the personal | ||||||
14 | use of the
user, and not subject to sale or resale.
| ||||||
15 | (18) Manufacturing and assembling machinery and equipment | ||||||
16 | used
primarily in the process of manufacturing or assembling | ||||||
17 | tangible
personal property for wholesale or retail sale or | ||||||
18 | lease, whether that sale
or lease is made directly by the | ||||||
19 | manufacturer or by some other person,
whether the materials | ||||||
20 | used in the process are
owned by the manufacturer or some other | ||||||
21 | person, or whether that sale or
lease is made apart from or as | ||||||
22 | an incident to the seller's engaging in
the service occupation | ||||||
23 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
24 | other similar items of no commercial value on
special order for | ||||||
25 | a particular purchaser.
| ||||||
26 | (19) Personal property delivered to a purchaser or | ||||||
27 | purchaser's donee
inside Illinois when the purchase order for | ||||||
28 | that personal property was
received by a florist located | ||||||
29 | outside Illinois who has a florist located
inside Illinois | ||||||
30 | deliver the personal property.
| ||||||
31 | (20) Semen used for artificial insemination of livestock | ||||||
32 | for direct
agricultural production.
| ||||||
33 | (21) Horses, or interests in horses, registered with and | ||||||
34 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
35 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
36 | Horse Association, United States
Trotting Association, or |
| |||||||
| |||||||
1 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
2 | racing for prizes.
| ||||||
3 | (22) Computers and communications equipment utilized for | ||||||
4 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
5 | analysis, or treatment of hospital patients purchased by a | ||||||
6 | lessor who leases
the
equipment, under a lease of one year or | ||||||
7 | longer executed or in effect at the
time the lessor would | ||||||
8 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
9 | hospital
that has been issued an active tax exemption | ||||||
10 | identification number by
the
Department under Section 1g of the | ||||||
11 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
12 | manner that does not qualify for
this exemption or is used in | ||||||
13 | any other non-exempt manner, the lessor
shall be liable for the
| ||||||
14 | tax imposed under this Act or the Service Use Tax Act, as the | ||||||
15 | case may
be, based on the fair market value of the property at | ||||||
16 | the time the
non-qualifying use occurs. No lessor shall collect | ||||||
17 | or attempt to collect an
amount (however
designated) that | ||||||
18 | purports to reimburse that lessor for the tax imposed by this
| ||||||
19 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
20 | has not been
paid by the lessor. If a lessor improperly | ||||||
21 | collects any such amount from the
lessee, the lessee shall have | ||||||
22 | a legal right to claim a refund of that amount
from the lessor. | ||||||
23 | If, however, that amount is not refunded to the lessee for
any | ||||||
24 | reason, the lessor is liable to pay that amount to the | ||||||
25 | Department.
| ||||||
26 | (23) Personal property purchased by a lessor who leases the
| ||||||
27 | property, under
a
lease of
one year or longer executed or in | ||||||
28 | effect at the time
the lessor would otherwise be subject to the | ||||||
29 | tax imposed by this Act,
to a governmental body
that has been | ||||||
30 | issued an active sales tax exemption identification number by | ||||||
31 | the
Department under Section 1g of the Retailers' Occupation | ||||||
32 | Tax Act.
If the
property is leased in a manner that does not | ||||||
33 | qualify for
this exemption
or used in any other non-exempt | ||||||
34 | manner, the lessor shall be liable for the
tax imposed under | ||||||
35 | this Act or the Service Use Tax Act, as the case may
be, based | ||||||
36 | on the fair market value of the property at the time the
|
| |||||||
| |||||||
1 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
2 | to collect an
amount (however
designated) that purports to | ||||||
3 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
4 | Service Use Tax Act, as the case may be, if the tax has not been
| ||||||
5 | paid by the lessor. If a lessor improperly collects any such | ||||||
6 | amount from the
lessee, the lessee shall have a legal right to | ||||||
7 | claim a refund of that amount
from the lessor. If, however, | ||||||
8 | that amount is not refunded to the lessee for
any reason, the | ||||||
9 | lessor is liable to pay that amount to the Department.
| ||||||
10 | (24) Beginning with taxable years ending on or after | ||||||
11 | December
31, 1995
and
ending with taxable years ending on or | ||||||
12 | before December 31, 2004,
personal property that is
donated for | ||||||
13 | disaster relief to be used in a State or federally declared
| ||||||
14 | disaster area in Illinois or bordering Illinois by a | ||||||
15 | manufacturer or retailer
that is registered in this State to a | ||||||
16 | corporation, society, association,
foundation, or institution | ||||||
17 | that has been issued a sales tax exemption
identification | ||||||
18 | number by the Department that assists victims of the disaster
| ||||||
19 | who reside within the declared disaster area.
| ||||||
20 | (25) Beginning with taxable years ending on or after | ||||||
21 | December
31, 1995 and
ending with taxable years ending on or | ||||||
22 | before December 31, 2004, personal
property that is used in the | ||||||
23 | performance of infrastructure repairs in this
State, including | ||||||
24 | but not limited to municipal roads and streets, access roads,
| ||||||
25 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
26 | line extensions,
water distribution and purification | ||||||
27 | facilities, storm water drainage and
retention facilities, and | ||||||
28 | sewage treatment facilities, resulting from a State
or | ||||||
29 | federally declared disaster in Illinois or bordering Illinois | ||||||
30 | when such
repairs are initiated on facilities located in the | ||||||
31 | declared disaster area
within 6 months after the disaster.
| ||||||
32 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
33 | at a "game
breeding
and hunting preserve area" or an "exotic | ||||||
34 | game hunting area" as those terms are
used in
the Wildlife Code | ||||||
35 | or at a hunting enclosure approved through rules adopted by
the
| ||||||
36 | Department of Natural Resources. This paragraph is exempt from |
| |||||||
| |||||||
1 | the provisions
of
Section 3-90.
| ||||||
2 | (27) A motor vehicle, as that term is defined in Section | ||||||
3 | 1-146
of the
Illinois
Vehicle Code, that is donated to a | ||||||
4 | corporation, limited liability company,
society, association, | ||||||
5 | foundation, or institution that is determined by the
Department | ||||||
6 | to be organized and operated exclusively for educational | ||||||
7 | purposes.
For purposes of this exemption, "a corporation, | ||||||
8 | limited liability company,
society, association, foundation, | ||||||
9 | or institution organized and operated
exclusively for | ||||||
10 | educational purposes" means all tax-supported public schools,
| ||||||
11 | private schools that offer systematic instruction in useful | ||||||
12 | branches of
learning by methods common to public schools and | ||||||
13 | that compare favorably in
their scope and intensity with the | ||||||
14 | course of study presented in tax-supported
schools, and | ||||||
15 | vocational or technical schools or institutes organized and
| ||||||
16 | operated exclusively to provide a course of study of not less | ||||||
17 | than 6 weeks
duration and designed to prepare individuals to | ||||||
18 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
19 | industrial, business, or commercial
occupation.
| ||||||
20 | (28) Beginning January 1, 2000, personal property, | ||||||
21 | including
food,
purchased through fundraising
events for the | ||||||
22 | benefit of
a public or private elementary or
secondary school, | ||||||
23 | a group of those schools, or one or more school
districts if | ||||||
24 | the events are
sponsored by an entity recognized by the school | ||||||
25 | district that consists
primarily of volunteers and includes
| ||||||
26 | parents and teachers of the school children. This paragraph | ||||||
27 | does not apply
to fundraising
events (i) for the benefit of | ||||||
28 | private home instruction or (ii)
for which the fundraising | ||||||
29 | entity purchases the personal property sold at
the events from | ||||||
30 | another individual or entity that sold the property for the
| ||||||
31 | purpose of resale by the fundraising entity and that
profits | ||||||
32 | from the sale to the
fundraising entity. This paragraph is | ||||||
33 | exempt
from the provisions
of Section 3-90.
| ||||||
34 | (29) Beginning January 1, 2000 and through December 31, | ||||||
35 | 2001, new or
used automatic vending
machines that prepare and | ||||||
36 | serve hot food and beverages, including coffee, soup,
and
other |
| |||||||
| |||||||
1 | items, and replacement parts for these machines.
Beginning | ||||||
2 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
3 | for machines used in
commercial, coin-operated amusement and | ||||||
4 | vending business if a use or occupation
tax is paid on the | ||||||
5 | gross receipts derived from the use of the commercial,
| ||||||
6 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
7 | is exempt from the provisions of Section 3-90.
| ||||||
8 | (30) Food for human consumption that is to be consumed off | ||||||
9 | the premises
where it is sold (other than alcoholic beverages, | ||||||
10 | soft drinks, and food that
has been prepared for immediate | ||||||
11 | consumption) and prescription and
nonprescription medicines, | ||||||
12 | drugs, medical appliances, and insulin, urine
testing | ||||||
13 | materials, syringes, and needles used by diabetics, for human | ||||||
14 | use, when
purchased for use by a person receiving medical | ||||||
15 | assistance under Article 5 of
the Illinois Public Aid Code who | ||||||
16 | resides in a licensed long-term care facility,
as defined in | ||||||
17 | the Nursing Home Care Act.
| ||||||
18 | (31) Beginning on
the effective date of this amendatory Act | ||||||
19 | of the 92nd General Assembly,
computers and communications | ||||||
20 | equipment
utilized for any hospital purpose and equipment used | ||||||
21 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
22 | purchased by a lessor who leases
the equipment, under a lease | ||||||
23 | of one year or longer executed or in effect at the
time the | ||||||
24 | lessor would otherwise be subject to the tax imposed by this | ||||||
25 | Act, to a
hospital that has been issued an active tax exemption | ||||||
26 | identification number by
the Department under Section 1g of the | ||||||
27 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
28 | manner that does not qualify for this exemption or is
used in | ||||||
29 | any other nonexempt manner, the lessor shall be liable for the | ||||||
30 | tax
imposed under this Act or the Service Use Tax Act, as the | ||||||
31 | case may be, based on
the fair market value of the property at | ||||||
32 | the time the nonqualifying use
occurs. No lessor shall collect | ||||||
33 | or attempt to collect an amount (however
designated) that | ||||||
34 | purports to reimburse that lessor for the tax imposed by this
| ||||||
35 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
36 | has not been
paid by the lessor. If a lessor improperly |
| |||||||
| |||||||
1 | collects any such amount from the
lessee, the lessee shall have | ||||||
2 | a legal right to claim a refund of that amount
from the lessor. | ||||||
3 | If, however, that amount is not refunded to the lessee for
any | ||||||
4 | reason, the lessor is liable to pay that amount to the | ||||||
5 | Department.
This paragraph is exempt from the provisions of | ||||||
6 | Section 3-90.
| ||||||
7 | (32) Beginning on
the effective date of this amendatory Act | ||||||
8 | of the 92nd General Assembly,
personal property purchased by a | ||||||
9 | lessor who leases the property,
under a lease of one year or | ||||||
10 | longer executed or in effect at the time the
lessor would | ||||||
11 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
12 | governmental body that has been issued an active sales tax | ||||||
13 | exemption
identification number by the Department under | ||||||
14 | Section 1g of the Retailers'
Occupation Tax Act. If the | ||||||
15 | property is leased in a manner that does not
qualify for this | ||||||
16 | exemption or used in any other nonexempt manner, the lessor
| ||||||
17 | shall be liable for the tax imposed under this Act or the | ||||||
18 | Service Use Tax Act,
as the case may be, based on the fair | ||||||
19 | market value of the property at the time
the nonqualifying use | ||||||
20 | occurs. No lessor shall collect or attempt to collect
an amount | ||||||
21 | (however designated) that purports to reimburse that lessor for | ||||||
22 | the
tax imposed by this Act or the Service Use Tax Act, as the | ||||||
23 | case may be, if the
tax has not been paid by the lessor. If a | ||||||
24 | lessor improperly collects any such
amount from the lessee, the | ||||||
25 | lessee shall have a legal right to claim a refund
of that | ||||||
26 | amount from the lessor. If, however, that amount is not | ||||||
27 | refunded to
the lessee for any reason, the lessor is liable to | ||||||
28 | pay that amount to the
Department. This paragraph is exempt | ||||||
29 | from the provisions of Section 3-90.
| ||||||
30 | (33) On and after July 1, 2003 and through June 30, 2004, | ||||||
31 | the use in this State of motor vehicles of
the second division | ||||||
32 | with a gross vehicle weight in excess of 8,000 pounds and
that | ||||||
33 | are subject to the commercial distribution fee imposed under | ||||||
34 | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | ||||||
35 | 1, 2004 and through June 30, 2005, the use in this State of | ||||||
36 | motor vehicles of the second division: (i) with a gross vehicle |
| |||||||
| |||||||
1 | weight rating in excess of 8,000 pounds; (ii) that are subject | ||||||
2 | to the commercial distribution fee imposed under Section | ||||||
3 | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | ||||||
4 | primarily used for commercial purposes. Through June 30, 2005, | ||||||
5 | this exemption applies to repair and
replacement parts added | ||||||
6 | after the initial purchase of such a motor vehicle if
that | ||||||
7 | motor
vehicle is used in a manner that would qualify for the | ||||||
8 | rolling stock exemption
otherwise provided for in this Act. For | ||||||
9 | purposes of this paragraph, the term "used for commercial | ||||||
10 | purposes" means the transportation of persons or property in | ||||||
11 | furtherance of any commercial or industrial enterprise, | ||||||
12 | whether for-hire or not.
| ||||||
13 | (34) Beginning on January 1, 2006, American flags, poles | ||||||
14 | intended to
serve as
flagstaffs for American flags, and | ||||||
15 | American flag sets or kits. This paragraph
is exempt
from the | ||||||
16 | provisions of Section 3-90.
| ||||||
17 | (Source: P.A. 92-35, eff. 7-1-01; 92-227, eff. 8-2-01; 92-337, | ||||||
18 | eff. 8-10-01; 92-484, eff. 8-23-01; 92-651, eff. 7-11-02; | ||||||
19 | 93-23, eff. 6-20-03; 93-24, eff. 6-20-03; 93-840, eff. 7-30-04; | ||||||
20 | 93-1033, eff. 9-3-04; revised 10-21-04.)
| ||||||
21 | Section 10. The Service Use Tax Act is amended by changing | ||||||
22 | Section 3-5 as
follows:
| ||||||
23 | (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
| ||||||
24 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
25 | personal property
is exempt from the tax imposed by this Act:
| ||||||
26 | (1) Personal property purchased from a corporation, | ||||||
27 | society,
association, foundation, institution, or | ||||||
28 | organization, other than a limited
liability company, that is | ||||||
29 | organized and operated as a not-for-profit service
enterprise | ||||||
30 | for the benefit of persons 65 years of age or older if the | ||||||
31 | personal
property was not purchased by the enterprise for the | ||||||
32 | purpose of resale by the
enterprise.
| ||||||
33 | (2) Personal property purchased by a non-profit Illinois | ||||||
34 | county fair
association for use in conducting, operating, or |
| |||||||
| |||||||
1 | promoting the county fair.
| ||||||
2 | (3) Personal property purchased by a not-for-profit arts
or | ||||||
3 | cultural
organization that establishes, by proof required by | ||||||
4 | the Department by rule,
that it has received an exemption under | ||||||
5 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
6 | organized and operated primarily for the
presentation
or | ||||||
7 | support of arts or cultural programming, activities, or | ||||||
8 | services. These
organizations include, but are not limited to, | ||||||
9 | music and dramatic arts
organizations such as symphony | ||||||
10 | orchestras and theatrical groups, arts and
cultural service | ||||||
11 | organizations, local arts councils, visual arts organizations,
| ||||||
12 | and media arts organizations.
On and after the effective date | ||||||
13 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
14 | an entity otherwise eligible for this exemption shall not
make | ||||||
15 | tax-free purchases unless it has an active identification | ||||||
16 | number issued by
the Department.
| ||||||
17 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
18 | coinage issued
by the State of Illinois, the government of the | ||||||
19 | United States of America,
or the government of any foreign | ||||||
20 | country, and bullion.
| ||||||
21 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
22 | 2004, graphic arts machinery and equipment, including
repair | ||||||
23 | and
replacement parts, both new and used, and including that | ||||||
24 | manufactured on
special order or purchased for lease, certified | ||||||
25 | by the purchaser to be used
primarily for graphic arts | ||||||
26 | production.
Equipment includes chemicals or
chemicals acting | ||||||
27 | as catalysts but only if
the chemicals or chemicals acting as | ||||||
28 | catalysts effect a direct and immediate
change upon a graphic | ||||||
29 | arts product.
| ||||||
30 | (6) Personal property purchased from a teacher-sponsored | ||||||
31 | student
organization affiliated with an elementary or | ||||||
32 | secondary school located
in Illinois.
| ||||||
33 | (7) Farm machinery and equipment, both new and used, | ||||||
34 | including that
manufactured on special order, certified by the | ||||||
35 | purchaser to be used
primarily for production agriculture or | ||||||
36 | State or federal agricultural
programs, including individual |
| |||||||
| |||||||
1 | replacement parts for the machinery and
equipment, including | ||||||
2 | machinery and equipment purchased for lease,
and including | ||||||
3 | implements of husbandry defined in Section 1-130 of
the | ||||||
4 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
5 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
6 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
7 | but
excluding other motor vehicles required to be registered | ||||||
8 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
9 | hoop houses used for propagating, growing, or
overwintering | ||||||
10 | plants shall be considered farm machinery and equipment under
| ||||||
11 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
12 | shall include units sold
separately from a motor vehicle | ||||||
13 | required to be licensed and units sold mounted
on a motor | ||||||
14 | vehicle required to be licensed if the selling price of the | ||||||
15 | tender
is separately stated.
| ||||||
16 | Farm machinery and equipment shall include precision | ||||||
17 | farming equipment
that is
installed or purchased to be | ||||||
18 | installed on farm machinery and equipment
including, but not | ||||||
19 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
20 | or spreaders.
Precision farming equipment includes, but is not | ||||||
21 | limited to,
soil testing sensors, computers, monitors, | ||||||
22 | software, global positioning
and mapping systems, and other | ||||||
23 | such equipment.
| ||||||
24 | Farm machinery and equipment also includes computers, | ||||||
25 | sensors, software, and
related equipment used primarily in the
| ||||||
26 | computer-assisted operation of production agriculture | ||||||
27 | facilities, equipment,
and activities such as, but
not limited | ||||||
28 | to,
the collection, monitoring, and correlation of
animal and | ||||||
29 | crop data for the purpose of
formulating animal diets and | ||||||
30 | agricultural chemicals. This item (7) is exempt
from the | ||||||
31 | provisions of
Section 3-75.
| ||||||
32 | (8) Fuel and petroleum products sold to or used by an air | ||||||
33 | common
carrier, certified by the carrier to be used for | ||||||
34 | consumption, shipment, or
storage in the conduct of its | ||||||
35 | business as an air common carrier, for a
flight destined for or | ||||||
36 | returning from a location or locations
outside the United |
| |||||||
| |||||||
1 | States without regard to previous or subsequent domestic
| ||||||
2 | stopovers.
| ||||||
3 | (9) Proceeds of mandatory service charges separately | ||||||
4 | stated on
customers' bills for the purchase and consumption of | ||||||
5 | food and beverages
acquired as an incident to the purchase of a | ||||||
6 | service from a serviceman, to
the extent that the proceeds of | ||||||
7 | the service charge are in fact
turned over as tips or as a | ||||||
8 | substitute for tips to the employees who
participate directly | ||||||
9 | in preparing, serving, hosting or cleaning up the
food or | ||||||
10 | beverage function with respect to which the service charge is | ||||||
11 | imposed.
| ||||||
12 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
13 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
14 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
15 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
16 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
17 | individual replacement part for oil field exploration,
| ||||||
18 | drilling, and production equipment, and (vi) machinery and | ||||||
19 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
20 | required to be registered under the Illinois
Vehicle Code.
| ||||||
21 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
22 | and
equipment, including repair and replacement parts, both new | ||||||
23 | and
used, including that manufactured on special order, | ||||||
24 | certified by the
purchaser to be used primarily for | ||||||
25 | photoprocessing, and including
photoprocessing machinery and | ||||||
26 | equipment purchased for lease.
| ||||||
27 | (12) Until July 1, 2003, coal exploration, mining, | ||||||
28 | offhighway hauling,
processing,
maintenance, and reclamation | ||||||
29 | equipment, including
replacement parts and equipment, and | ||||||
30 | including
equipment purchased for lease, but excluding motor | ||||||
31 | vehicles required to be
registered under the Illinois Vehicle | ||||||
32 | Code.
| ||||||
33 | (13) Semen used for artificial insemination of livestock | ||||||
34 | for direct
agricultural production.
| ||||||
35 | (14) Horses, or interests in horses, registered with and | ||||||
36 | meeting the
requirements of any of the
Arabian Horse Club |
| |||||||
| |||||||
1 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
2 | Horse Association, United States
Trotting Association, or | ||||||
3 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
4 | racing for prizes.
| ||||||
5 | (15) Computers and communications equipment utilized for | ||||||
6 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
7 | analysis, or treatment of hospital patients purchased by a | ||||||
8 | lessor who leases
the
equipment, under a lease of one year or | ||||||
9 | longer executed or in effect at the
time
the lessor would | ||||||
10 | otherwise be subject to the tax imposed by this Act,
to a
| ||||||
11 | hospital
that has been issued an active tax exemption | ||||||
12 | identification number by the
Department under Section 1g of the | ||||||
13 | Retailers' Occupation Tax Act.
If the
equipment is leased in a | ||||||
14 | manner that does not qualify for
this exemption
or is used in | ||||||
15 | any other non-exempt manner,
the lessor shall be liable for the
| ||||||
16 | tax imposed under this Act or the Use Tax Act, as the case may
| ||||||
17 | be, based on the fair market value of the property at the time | ||||||
18 | the
non-qualifying use occurs. No lessor shall collect or | ||||||
19 | attempt to collect an
amount (however
designated) that purports | ||||||
20 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
21 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
22 | the lessor. If a lessor improperly collects any such amount | ||||||
23 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
24 | refund of that amount
from the lessor. If, however, that amount | ||||||
25 | is not refunded to the lessee for
any reason, the lessor is | ||||||
26 | liable to pay that amount to the Department.
| ||||||
27 | (16) Personal property purchased by a lessor who leases the
| ||||||
28 | property, under
a
lease of one year or longer executed or in | ||||||
29 | effect at the time
the lessor would otherwise be subject to the | ||||||
30 | tax imposed by this Act,
to a governmental body
that has been | ||||||
31 | issued an active tax exemption identification number by the
| ||||||
32 | Department under Section 1g of the Retailers' Occupation Tax | ||||||
33 | Act.
If the
property is leased in a manner that does not | ||||||
34 | qualify for
this exemption
or is used in any other non-exempt | ||||||
35 | manner,
the lessor shall be liable for the
tax imposed under | ||||||
36 | this Act or the Use Tax Act, as the case may
be, based on the |
| |||||||
| |||||||
1 | fair market value of the property at the time the
| ||||||
2 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
3 | to collect an
amount (however
designated) that purports to | ||||||
4 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
5 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
6 | the lessor. If a lessor improperly collects any such amount | ||||||
7 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
8 | refund of that amount
from the lessor. If, however, that amount | ||||||
9 | is not refunded to the lessee for
any reason, the lessor is | ||||||
10 | liable to pay that amount to the Department.
| ||||||
11 | (17) Beginning with taxable years ending on or after | ||||||
12 | December
31,
1995
and
ending with taxable years ending on or | ||||||
13 | before December 31, 2004,
personal property that is
donated for | ||||||
14 | disaster relief to be used in a State or federally declared
| ||||||
15 | disaster area in Illinois or bordering Illinois by a | ||||||
16 | manufacturer or retailer
that is registered in this State to a | ||||||
17 | corporation, society, association,
foundation, or institution | ||||||
18 | that has been issued a sales tax exemption
identification | ||||||
19 | number by the Department that assists victims of the disaster
| ||||||
20 | who reside within the declared disaster area.
| ||||||
21 | (18) Beginning with taxable years ending on or after | ||||||
22 | December
31, 1995 and
ending with taxable years ending on or | ||||||
23 | before December 31, 2004, personal
property that is used in the | ||||||
24 | performance of infrastructure repairs in this
State, including | ||||||
25 | but not limited to municipal roads and streets, access roads,
| ||||||
26 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
27 | line extensions,
water distribution and purification | ||||||
28 | facilities, storm water drainage and
retention facilities, and | ||||||
29 | sewage treatment facilities, resulting from a State
or | ||||||
30 | federally declared disaster in Illinois or bordering Illinois | ||||||
31 | when such
repairs are initiated on facilities located in the | ||||||
32 | declared disaster area
within 6 months after the disaster.
| ||||||
33 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
34 | at a "game
breeding
and hunting preserve area" or an "exotic | ||||||
35 | game hunting area" as those terms are
used in
the Wildlife Code | ||||||
36 | or at a hunting enclosure approved through rules adopted by
the
|
| |||||||
| |||||||
1 | Department of Natural Resources. This paragraph is exempt from | ||||||
2 | the provisions
of
Section 3-75.
| ||||||
3 | (20) A motor vehicle, as that term is defined in Section | ||||||
4 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
5 | corporation, limited liability
company, society, association, | ||||||
6 | foundation, or institution that is determined by
the Department | ||||||
7 | to be organized and operated exclusively for educational
| ||||||
8 | purposes. For purposes of this exemption, "a corporation, | ||||||
9 | limited liability
company, society, association, foundation, | ||||||
10 | or institution organized and
operated
exclusively for | ||||||
11 | educational purposes" means all tax-supported public schools,
| ||||||
12 | private schools that offer systematic instruction in useful | ||||||
13 | branches of
learning by methods common to public schools and | ||||||
14 | that compare favorably in
their scope and intensity with the | ||||||
15 | course of study presented in tax-supported
schools, and | ||||||
16 | vocational or technical schools or institutes organized and
| ||||||
17 | operated exclusively to provide a course of study of not less | ||||||
18 | than 6 weeks
duration and designed to prepare individuals to | ||||||
19 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
20 | industrial, business, or commercial
occupation.
| ||||||
21 | (21) Beginning January 1, 2000, personal property, | ||||||
22 | including
food,
purchased through fundraising
events for the | ||||||
23 | benefit of
a public or private elementary or
secondary school, | ||||||
24 | a group of those schools, or one or more school
districts if | ||||||
25 | the events are
sponsored by an entity recognized by the school | ||||||
26 | district that consists
primarily of volunteers and includes
| ||||||
27 | parents and teachers of the school children. This paragraph | ||||||
28 | does not apply
to fundraising
events (i) for the benefit of | ||||||
29 | private home instruction or (ii)
for which the fundraising | ||||||
30 | entity purchases the personal property sold at
the events from | ||||||
31 | another individual or entity that sold the property for the
| ||||||
32 | purpose of resale by the fundraising entity and that
profits | ||||||
33 | from the sale to the
fundraising entity. This paragraph is | ||||||
34 | exempt
from the provisions
of Section 3-75.
| ||||||
35 | (22) Beginning January 1, 2000
and through December 31, | ||||||
36 | 2001, new or used automatic vending
machines that prepare and |
| |||||||
| |||||||
1 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
2 | items, and replacement parts for these machines.
Beginning | ||||||
3 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
4 | for machines used in
commercial, coin-operated
amusement
and | ||||||
5 | vending business if a use or occupation tax is paid on the | ||||||
6 | gross receipts
derived from
the use of the commercial, | ||||||
7 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
8 | is exempt from the provisions of Section 3-75.
| ||||||
9 | (23) Food for human consumption that is to be consumed off | ||||||
10 | the
premises
where it is sold (other than alcoholic beverages, | ||||||
11 | soft drinks, and food that
has been prepared for immediate | ||||||
12 | consumption) and prescription and
nonprescription medicines, | ||||||
13 | drugs, medical appliances, and insulin, urine
testing | ||||||
14 | materials, syringes, and needles used by diabetics, for human | ||||||
15 | use, when
purchased for use by a person receiving medical | ||||||
16 | assistance under Article 5 of
the Illinois Public Aid Code who | ||||||
17 | resides in a licensed long-term care facility,
as defined in | ||||||
18 | the Nursing Home Care Act.
| ||||||
19 | (24) Beginning on the effective date of this amendatory Act | ||||||
20 | of the 92nd
General Assembly, computers and communications | ||||||
21 | equipment
utilized for any hospital purpose and equipment used | ||||||
22 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
23 | purchased by a lessor who leases
the equipment, under a lease | ||||||
24 | of one year or longer executed or in effect at the
time the | ||||||
25 | lessor would otherwise be subject to the tax imposed by this | ||||||
26 | Act, to a
hospital that has been issued an active tax exemption | ||||||
27 | identification number by
the Department under Section 1g of the | ||||||
28 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
29 | manner that does not qualify for this exemption or is
used in | ||||||
30 | any other nonexempt manner, the lessor shall be liable for the
| ||||||
31 | tax imposed under this Act or the Use Tax Act, as the case may | ||||||
32 | be, based on the
fair market value of the property at the time | ||||||
33 | the nonqualifying use occurs.
No lessor shall collect or | ||||||
34 | attempt to collect an amount (however
designated) that purports | ||||||
35 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
36 | Use Tax Act, as the case may be, if the tax has not been
paid by |
| |||||||
| |||||||
1 | the lessor. If a lessor improperly collects any such amount | ||||||
2 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
3 | refund of that amount
from the lessor. If, however, that amount | ||||||
4 | is not refunded to the lessee for
any reason, the lessor is | ||||||
5 | liable to pay that amount to the Department.
This paragraph is | ||||||
6 | exempt from the provisions of Section 3-75.
| ||||||
7 | (25) Beginning
on the effective date of this amendatory Act | ||||||
8 | of the 92nd General Assembly,
personal property purchased by a | ||||||
9 | lessor
who leases the property, under a lease of one year or | ||||||
10 | longer executed or in
effect at the time the lessor would | ||||||
11 | otherwise be subject to the tax imposed by
this Act, to a | ||||||
12 | governmental body that has been issued an active tax exemption
| ||||||
13 | identification number by the Department under Section 1g of the | ||||||
14 | Retailers'
Occupation Tax Act. If the property is leased in a | ||||||
15 | manner that does not
qualify for this exemption or is used in | ||||||
16 | any other nonexempt manner, the
lessor shall be liable for the | ||||||
17 | tax imposed under this Act or the Use Tax Act,
as the case may | ||||||
18 | be, based on the fair market value of the property at the time
| ||||||
19 | the nonqualifying use occurs. No lessor shall collect or | ||||||
20 | attempt to collect
an amount (however designated) that purports | ||||||
21 | to reimburse that lessor for the
tax imposed by this Act or the | ||||||
22 | Use Tax Act, as the case may be, if the tax has
not been paid by | ||||||
23 | the lessor. If a lessor improperly collects any such amount
| ||||||
24 | from the lessee, the lessee shall have a legal right to claim a | ||||||
25 | refund of that
amount from the lessor. If, however, that amount | ||||||
26 | is not refunded to the lessee
for any reason, the lessor is | ||||||
27 | liable to pay that amount to the Department.
This paragraph is | ||||||
28 | exempt from the provisions of Section 3-75.
| ||||||
29 | (26) Beginning on January 1, 2006, American flags, poles | ||||||
30 | intended to
serve
as
flagstaffs for American flags, and | ||||||
31 | American flag sets or kits. This paragraph
is exempt
from the | ||||||
32 | provisions of Section 3-75.
| ||||||
33 | (Source: P.A. 92-16, eff. 6-28-01; 92-35, eff. 7-1-01; 92-227, | ||||||
34 | eff. 8-2-01; 92-337, eff. 8-10-01; 92-484, eff. 8-23-01; | ||||||
35 | 92-651, eff. 7-11-02; 93-24, eff. 6-20-03; 93-840, eff. | ||||||
36 | 7-30-04.)
|
| |||||||
| |||||||
1 | Section 15. The Service Occupation Tax Act is amended by | ||||||
2 | changing Section
3-5 as follows:
| ||||||
3 | (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
| ||||||
4 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
5 | property is
exempt from the tax imposed by this Act:
| ||||||
6 | (1) Personal property sold by a corporation, society, | ||||||
7 | association,
foundation, institution, or organization, other | ||||||
8 | than a limited liability
company, that is organized and | ||||||
9 | operated as a not-for-profit service enterprise
for the benefit | ||||||
10 | of persons 65 years of age or older if the personal property
| ||||||
11 | was not purchased by the enterprise for the purpose of resale | ||||||
12 | by the
enterprise.
| ||||||
13 | (2) Personal property purchased by a not-for-profit | ||||||
14 | Illinois county fair
association for use in conducting, | ||||||
15 | operating, or promoting the county fair.
| ||||||
16 | (3) Personal property purchased by any not-for-profit
arts | ||||||
17 | or cultural organization that establishes, by proof required by | ||||||
18 | the
Department by
rule, that it has received an exemption under | ||||||
19 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
20 | organized and operated primarily for the
presentation
or | ||||||
21 | support of arts or cultural programming, activities, or | ||||||
22 | services. These
organizations include, but are not limited to, | ||||||
23 | music and dramatic arts
organizations such as symphony | ||||||
24 | orchestras and theatrical groups, arts and
cultural service | ||||||
25 | organizations, local arts councils, visual arts organizations,
| ||||||
26 | and media arts organizations.
On and after the effective date | ||||||
27 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
28 | an entity otherwise eligible for this exemption shall not
make | ||||||
29 | tax-free purchases unless it has an active identification | ||||||
30 | number issued by
the Department.
| ||||||
31 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
32 | coinage
issued by the State of Illinois, the government of the | ||||||
33 | United States of
America, or the government of any foreign | ||||||
34 | country, and bullion.
|
| |||||||
| |||||||
1 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
2 | 2004, graphic arts machinery and equipment, including
repair | ||||||
3 | and
replacement parts, both new and used, and including that | ||||||
4 | manufactured on
special order or purchased for lease, certified | ||||||
5 | by the purchaser to be used
primarily for graphic arts | ||||||
6 | production.
Equipment includes chemicals or chemicals acting | ||||||
7 | as catalysts but only if
the
chemicals or chemicals acting as | ||||||
8 | catalysts effect a direct and immediate change
upon a graphic | ||||||
9 | arts product.
| ||||||
10 | (6) Personal property sold by a teacher-sponsored student | ||||||
11 | organization
affiliated with an elementary or secondary school | ||||||
12 | located in Illinois.
| ||||||
13 | (7) Farm machinery and equipment, both new and used, | ||||||
14 | including that
manufactured on special order, certified by the | ||||||
15 | purchaser to be used
primarily for production agriculture or | ||||||
16 | State or federal agricultural
programs, including individual | ||||||
17 | replacement parts for the machinery and
equipment, including | ||||||
18 | machinery and equipment purchased for lease,
and including | ||||||
19 | implements of husbandry defined in Section 1-130 of
the | ||||||
20 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
21 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
22 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
23 | but
excluding other motor vehicles required to be registered | ||||||
24 | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | ||||||
25 | hoop houses used for propagating, growing, or
overwintering | ||||||
26 | plants shall be considered farm machinery and equipment under
| ||||||
27 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
28 | shall include units sold
separately from a motor vehicle | ||||||
29 | required to be licensed and units sold mounted
on a motor | ||||||
30 | vehicle required to be licensed if the selling price of the | ||||||
31 | tender
is separately stated.
| ||||||
32 | Farm machinery and equipment shall include precision | ||||||
33 | farming equipment
that is
installed or purchased to be | ||||||
34 | installed on farm machinery and equipment
including, but not | ||||||
35 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
36 | or spreaders.
Precision farming equipment includes, but is not |
| |||||||
| |||||||
1 | limited to,
soil testing sensors, computers, monitors, | ||||||
2 | software, global positioning
and mapping systems, and other | ||||||
3 | such equipment.
| ||||||
4 | Farm machinery and equipment also includes computers, | ||||||
5 | sensors, software, and
related equipment used primarily in the
| ||||||
6 | computer-assisted operation of production agriculture | ||||||
7 | facilities, equipment,
and activities such as, but
not limited | ||||||
8 | to,
the collection, monitoring, and correlation of
animal and | ||||||
9 | crop data for the purpose of
formulating animal diets and | ||||||
10 | agricultural chemicals. This item (7) is exempt
from the | ||||||
11 | provisions of
Section 3-55.
| ||||||
12 | (8) Fuel and petroleum products sold to or used by an air | ||||||
13 | common
carrier, certified by the carrier to be used for | ||||||
14 | consumption, shipment,
or storage in the conduct of its | ||||||
15 | business as an air common carrier, for
a flight destined for or | ||||||
16 | returning from a location or locations
outside the United | ||||||
17 | States without regard to previous or subsequent domestic
| ||||||
18 | stopovers.
| ||||||
19 | (9) Proceeds of mandatory service charges separately
| ||||||
20 | stated on customers' bills for the purchase and consumption of | ||||||
21 | food and
beverages, to the extent that the proceeds of the | ||||||
22 | service charge are in fact
turned over as tips or as a | ||||||
23 | substitute for tips to the employees who
participate directly | ||||||
24 | in preparing, serving, hosting or cleaning up the
food or | ||||||
25 | beverage function with respect to which the service charge is | ||||||
26 | imposed.
| ||||||
27 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
28 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
29 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
30 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
31 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
32 | individual replacement part for oil field exploration,
| ||||||
33 | drilling, and production equipment, and (vi) machinery and | ||||||
34 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
35 | required to be registered under the Illinois
Vehicle Code.
| ||||||
36 | (11) Photoprocessing machinery and equipment, including |
| |||||||
| |||||||
1 | repair and
replacement parts, both new and used, including that | ||||||
2 | manufactured on
special order, certified by the purchaser to be | ||||||
3 | used primarily for
photoprocessing, and including | ||||||
4 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
5 | (12) Until July 1, 2003, coal exploration, mining, | ||||||
6 | offhighway hauling,
processing,
maintenance, and reclamation | ||||||
7 | equipment, including
replacement parts and equipment, and | ||||||
8 | including
equipment
purchased for lease, but excluding motor | ||||||
9 | vehicles required to be registered
under the Illinois Vehicle | ||||||
10 | Code.
| ||||||
11 | (13) Food for human consumption that is to be consumed off | ||||||
12 | the premises
where it is sold (other than alcoholic beverages, | ||||||
13 | soft drinks and food that
has been prepared for immediate | ||||||
14 | consumption) and prescription and
non-prescription medicines, | ||||||
15 | drugs, medical appliances, and insulin, urine
testing | ||||||
16 | materials, syringes, and needles used by diabetics, for human | ||||||
17 | use,
when purchased for use by a person receiving medical | ||||||
18 | assistance under
Article 5 of the Illinois Public Aid Code who | ||||||
19 | resides in a licensed
long-term care facility, as defined in | ||||||
20 | the Nursing Home Care Act.
| ||||||
21 | (14) Semen used for artificial insemination of livestock | ||||||
22 | for direct
agricultural production.
| ||||||
23 | (15) Horses, or interests in horses, registered with and | ||||||
24 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
25 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
26 | Horse Association, United States
Trotting Association, or | ||||||
27 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
28 | racing for prizes.
| ||||||
29 | (16) Computers and communications equipment utilized for | ||||||
30 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
31 | analysis, or treatment of hospital patients sold to a lessor | ||||||
32 | who leases the
equipment, under a lease of one year or longer | ||||||
33 | executed or in effect at the
time of the purchase, to a
| ||||||
34 | hospital
that has been issued an active tax exemption | ||||||
35 | identification number by the
Department under Section 1g of the | ||||||
36 | Retailers' Occupation Tax Act.
|
| |||||||
| |||||||
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
that | ||||||
4 | has been issued an active tax exemption identification number | ||||||
5 | by the
Department under Section 1g of the Retailers' Occupation | ||||||
6 | 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 for | ||||||
10 | disaster relief to be used in a State or federally declared
| ||||||
11 | disaster area in Illinois or bordering Illinois by a | ||||||
12 | manufacturer or retailer
that is registered in this State to a | ||||||
13 | corporation, society, association,
foundation, or institution | ||||||
14 | that has been issued a sales tax exemption
identification | ||||||
15 | number by the Department that assists victims of the disaster
| ||||||
16 | 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 the | ||||||
20 | performance of infrastructure repairs in this
State, including | ||||||
21 | but not limited to municipal roads and streets, access roads,
| ||||||
22 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
23 | line extensions,
water distribution and purification | ||||||
24 | facilities, storm water drainage and
retention facilities, and | ||||||
25 | sewage treatment facilities, resulting from a State
or | ||||||
26 | federally declared disaster in Illinois or bordering Illinois | ||||||
27 | when such
repairs are initiated on facilities located in the | ||||||
28 | declared disaster area
within 6 months after the disaster.
| ||||||
29 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
30 | "game breeding
and
hunting preserve area" or an "exotic game | ||||||
31 | hunting area" as those terms are used
in the
Wildlife Code or | ||||||
32 | at a hunting enclosure approved through rules adopted by the
| ||||||
33 | Department of Natural Resources. This paragraph is exempt from | ||||||
34 | the provisions
of
Section 3-55.
| ||||||
35 | (21) A motor vehicle, as that term is defined in Section | ||||||
36 | 1-146
of the
Illinois Vehicle Code, that is donated to a |
| |||||||
| |||||||
1 | corporation, limited liability
company, society, association, | ||||||
2 | foundation, or institution that is determined by
the Department | ||||||
3 | to be organized and operated exclusively for educational
| ||||||
4 | purposes. For purposes of this exemption, "a corporation, | ||||||
5 | limited liability
company, society, association, foundation, | ||||||
6 | or institution organized and
operated
exclusively for | ||||||
7 | educational purposes" means all tax-supported public schools,
| ||||||
8 | private schools that offer systematic instruction in useful | ||||||
9 | branches of
learning by methods common to public schools and | ||||||
10 | that compare favorably in
their scope and intensity with the | ||||||
11 | course of study presented in tax-supported
schools, and | ||||||
12 | vocational or technical schools or institutes organized and
| ||||||
13 | operated exclusively to provide a course of study of not less | ||||||
14 | than 6 weeks
duration and designed to prepare individuals to | ||||||
15 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
16 | industrial, business, or commercial
occupation.
| ||||||
17 | (22) Beginning January 1, 2000, personal property, | ||||||
18 | including
food,
purchased through fundraising
events for the | ||||||
19 | benefit of
a public or private elementary or
secondary school, | ||||||
20 | a group of those schools, or one or more school
districts if | ||||||
21 | the events are
sponsored by an entity recognized by the school | ||||||
22 | district that consists
primarily of volunteers and includes
| ||||||
23 | parents and teachers of the school children. This paragraph | ||||||
24 | does not apply
to fundraising
events (i) for the benefit of | ||||||
25 | private home instruction or (ii)
for which the fundraising | ||||||
26 | entity purchases the personal property sold at
the events from | ||||||
27 | another individual or entity that sold the property for the
| ||||||
28 | purpose of resale by the fundraising entity and that
profits | ||||||
29 | from the sale to the
fundraising entity. This paragraph is | ||||||
30 | exempt
from the provisions
of Section 3-55.
| ||||||
31 | (23) Beginning January 1, 2000
and through December 31, | ||||||
32 | 2001, new or used automatic vending
machines that prepare and | ||||||
33 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
34 | items, and replacement parts for these machines.
Beginning | ||||||
35 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
36 | for
machines used in commercial, coin-operated amusement
and |
| |||||||
| |||||||
1 | vending business if a use or occupation tax is paid on the | ||||||
2 | gross receipts
derived from
the use of the commercial, | ||||||
3 | coin-operated amusement and vending machines.
This paragraph | ||||||
4 | is exempt from the provisions of Section 3-55.
| ||||||
5 | (24) Beginning
on the effective date of this amendatory Act | ||||||
6 | of the 92nd General Assembly,
computers and communications | ||||||
7 | equipment
utilized for any hospital purpose and equipment used | ||||||
8 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
9 | sold to a lessor who leases the
equipment, under a lease of one | ||||||
10 | year or longer executed or in effect at the
time of the | ||||||
11 | purchase, to a hospital that has been issued an active tax
| ||||||
12 | exemption identification number by the Department under | ||||||
13 | Section 1g of the
Retailers' Occupation Tax Act. This paragraph | ||||||
14 | is exempt from the provisions of
Section 3-55.
| ||||||
15 | (25) Beginning
on the effective date of this amendatory Act | ||||||
16 | of the 92nd General Assembly,
personal property sold to a | ||||||
17 | lessor who
leases the property, under a lease of one year or | ||||||
18 | longer executed or in effect
at the time of the purchase, to a | ||||||
19 | governmental body that has been issued an
active tax exemption | ||||||
20 | identification number by the Department under Section 1g
of the | ||||||
21 | Retailers' Occupation Tax Act. This paragraph is exempt from | ||||||
22 | the
provisions of Section 3-55.
| ||||||
23 | (26) Beginning on January 1, 2002, tangible personal | ||||||
24 | property
purchased
from an Illinois retailer by a taxpayer | ||||||
25 | engaged in centralized purchasing
activities in Illinois who | ||||||
26 | will, upon receipt of the property in Illinois,
temporarily | ||||||
27 | store the property in Illinois (i) for the purpose of | ||||||
28 | subsequently
transporting it outside this State for use or | ||||||
29 | consumption thereafter solely
outside this State or (ii) for | ||||||
30 | the purpose of being processed, fabricated, or
manufactured | ||||||
31 | into, attached to, or incorporated into other tangible personal
| ||||||
32 | property to be transported outside this State and thereafter | ||||||
33 | used or consumed
solely outside this State. The Director of | ||||||
34 | Revenue shall, pursuant to rules
adopted in accordance with the | ||||||
35 | Illinois Administrative Procedure Act, issue a
permit to any | ||||||
36 | taxpayer in good standing with the Department who is eligible |
| |||||||
| |||||||
1 | for
the exemption under this paragraph (26). The permit issued | ||||||
2 | under
this paragraph (26) shall authorize the holder, to the | ||||||
3 | extent and
in the manner specified in the rules adopted under | ||||||
4 | this Act, to purchase
tangible personal property from a | ||||||
5 | retailer exempt from the taxes imposed by
this Act. Taxpayers | ||||||
6 | shall maintain all necessary books and records to
substantiate | ||||||
7 | the use and consumption of all such tangible personal property
| ||||||
8 | outside of the State of Illinois.
| ||||||
9 | (27) Beginning on January 1, 2006, American flags, poles | ||||||
10 | intended to
serve
as
flagstaffs for American flags, and | ||||||
11 | American flag sets or kits. This paragraph
is exempt
from the | ||||||
12 | provisions of Section 3-55.
| ||||||
13 | (Source: P.A. 92-16, eff. 6-28-01; 92-35, eff. 7-1-01; 92-227, | ||||||
14 | eff. 8-2-01; 92-337, eff. 8-10-01; 92-484, eff. 8-23-01; | ||||||
15 | 92-488, eff. 8-23-01; 92-651, eff. 7-11-02; 93-24, eff. | ||||||
16 | 6-20-03; 93-840, eff. 7-30-04.)
| ||||||
17 | Section 20. The Retailers' Occupation Tax Act is amended by | ||||||
18 | changing Section
2-5 as follows:
| ||||||
19 | (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
| ||||||
20 | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||||||
21 | sale of
the following tangible personal property are exempt | ||||||
22 | from the tax imposed
by this Act:
| ||||||
23 | (1) Farm chemicals.
| ||||||
24 | (2) Farm machinery and equipment, both new and used, | ||||||
25 | including that
manufactured on special order, certified by the | ||||||
26 | purchaser to be used
primarily for production agriculture or | ||||||
27 | State or federal agricultural
programs, including individual | ||||||
28 | replacement parts for the machinery and
equipment, including | ||||||
29 | machinery and equipment purchased for lease,
and including | ||||||
30 | implements of husbandry defined in Section 1-130 of
the | ||||||
31 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
32 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
33 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
34 | but
excluding other motor vehicles required to be registered |
| |||||||
| |||||||
1 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
2 | hoop houses used for propagating, growing, or
overwintering | ||||||
3 | plants shall be considered farm machinery and equipment under
| ||||||
4 | this item (2).
Agricultural chemical tender tanks and dry boxes | ||||||
5 | shall include units sold
separately from a motor vehicle | ||||||
6 | required to be licensed and units sold mounted
on a motor | ||||||
7 | vehicle required to be licensed, if the selling price of the | ||||||
8 | tender
is separately stated.
| ||||||
9 | Farm machinery and equipment shall include precision | ||||||
10 | farming equipment
that is
installed or purchased to be | ||||||
11 | installed on farm machinery and equipment
including, but not | ||||||
12 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
13 | or spreaders.
Precision farming equipment includes, but is not | ||||||
14 | limited to,
soil testing sensors, computers, monitors, | ||||||
15 | software, global positioning
and mapping systems, and other | ||||||
16 | such equipment.
| ||||||
17 | Farm machinery and equipment also includes computers, | ||||||
18 | sensors, software, and
related equipment used primarily in the
| ||||||
19 | computer-assisted operation of production agriculture | ||||||
20 | facilities, equipment,
and activities such as, but
not limited | ||||||
21 | to,
the collection, monitoring, and correlation of
animal and | ||||||
22 | crop data for the purpose of
formulating animal diets and | ||||||
23 | agricultural chemicals. This item (7) is exempt
from the | ||||||
24 | provisions of
Section 2-70.
| ||||||
25 | (3) Until July 1, 2003, distillation machinery and | ||||||
26 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
27 | retailer, certified by the user to be used
only for the | ||||||
28 | production of ethyl alcohol that will be used for consumption
| ||||||
29 | as motor fuel or as a component of motor fuel for the personal | ||||||
30 | use of the
user, and not subject to sale or resale.
| ||||||
31 | (4) Until July 1, 2003 and beginning again September 1, | ||||||
32 | 2004, graphic arts machinery and equipment, including
repair | ||||||
33 | and
replacement parts, both new and used, and including that | ||||||
34 | manufactured on
special order or purchased for lease, certified | ||||||
35 | by the purchaser to be used
primarily for graphic arts | ||||||
36 | production.
Equipment includes chemicals or
chemicals acting |
| |||||||
| |||||||
1 | as catalysts but only if
the chemicals or chemicals acting as | ||||||
2 | catalysts effect a direct and immediate
change upon a
graphic | ||||||
3 | arts product.
| ||||||
4 | (5) A motor vehicle of the first division, a motor vehicle | ||||||
5 | of the second
division that is a self-contained motor vehicle | ||||||
6 | designed or permanently
converted to provide living quarters | ||||||
7 | for recreational, camping, or travel
use, with direct walk | ||||||
8 | through access to the living quarters from the
driver's seat, | ||||||
9 | or a motor vehicle of the second division that is of the van
| ||||||
10 | configuration designed for the transportation of not less than | ||||||
11 | 7 nor more
than 16 passengers, as defined in Section 1-146 of | ||||||
12 | the Illinois Vehicle
Code, that is used for automobile renting, | ||||||
13 | as defined in the Automobile
Renting Occupation and Use Tax | ||||||
14 | Act.
| ||||||
15 | (6) Personal property sold by a teacher-sponsored student | ||||||
16 | organization
affiliated with an elementary or secondary school | ||||||
17 | located in Illinois.
| ||||||
18 | (7) Until July 1, 2003, proceeds of that portion of the | ||||||
19 | selling price of
a passenger car the
sale of which is subject | ||||||
20 | to the Replacement Vehicle Tax.
| ||||||
21 | (8) Personal property sold to an Illinois county fair | ||||||
22 | association for
use in conducting, operating, or promoting the | ||||||
23 | county fair.
| ||||||
24 | (9) Personal property sold to a not-for-profit arts
or | ||||||
25 | cultural organization that establishes, by proof required by | ||||||
26 | the Department
by
rule, that it has received an exemption under | ||||||
27 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
28 | organized and operated primarily for the
presentation
or | ||||||
29 | support of arts or cultural programming, activities, or | ||||||
30 | services. These
organizations include, but are not limited to, | ||||||
31 | music and dramatic arts
organizations such as symphony | ||||||
32 | orchestras and theatrical groups, arts and
cultural service | ||||||
33 | organizations, local arts councils, visual arts organizations,
| ||||||
34 | and media arts organizations.
On and after the effective date | ||||||
35 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
36 | an entity otherwise eligible for this exemption shall not
make |
| |||||||
| |||||||
1 | tax-free purchases unless it has an active identification | ||||||
2 | number issued by
the Department.
| ||||||
3 | (10) Personal property sold by a corporation, society, | ||||||
4 | association,
foundation, institution, or organization, other | ||||||
5 | than a limited liability
company, that is organized and | ||||||
6 | operated as a not-for-profit service enterprise
for the benefit | ||||||
7 | of persons 65 years of age or older if the personal property
| ||||||
8 | was not purchased by the enterprise for the purpose of resale | ||||||
9 | by the
enterprise.
| ||||||
10 | (11) Personal property sold to a governmental body, to a | ||||||
11 | corporation,
society, association, foundation, or institution | ||||||
12 | organized and operated
exclusively for charitable, religious, | ||||||
13 | or educational purposes, or to a
not-for-profit corporation, | ||||||
14 | society, association, foundation, institution,
or organization | ||||||
15 | that has no compensated officers or employees and that is
| ||||||
16 | organized and operated primarily for the recreation of persons | ||||||
17 | 55 years of
age or older. A limited liability company may | ||||||
18 | qualify for the exemption under
this paragraph only if the | ||||||
19 | limited liability company is organized and operated
| ||||||
20 | exclusively for educational purposes. On and after July 1, | ||||||
21 | 1987, however, no
entity otherwise eligible for this exemption | ||||||
22 | shall make tax-free purchases
unless it has an active | ||||||
23 | identification number issued by the Department.
| ||||||
24 | (12) Tangible personal property sold to
interstate | ||||||
25 | carriers
for hire for use as
rolling stock moving in interstate | ||||||
26 | commerce or to lessors under leases of
one year or longer | ||||||
27 | executed or in effect at the time of purchase by
interstate | ||||||
28 | carriers for hire for use as rolling stock moving in interstate
| ||||||
29 | commerce and equipment operated by a telecommunications | ||||||
30 | provider, licensed as a
common carrier by the Federal | ||||||
31 | Communications Commission, which is permanently
installed in | ||||||
32 | or affixed to aircraft moving in interstate commerce.
| ||||||
33 | (12-5) On and after July 1, 2003 and through June 30, 2004, | ||||||
34 | motor vehicles of the second division
with a gross vehicle | ||||||
35 | weight in excess of 8,000 pounds
that
are
subject to the | ||||||
36 | commercial distribution fee imposed under Section 3-815.1 of
|
| |||||||
| |||||||
1 | the Illinois
Vehicle Code. Beginning on July 1, 2004 and | ||||||
2 | through June 30, 2005, the use in this State of motor vehicles | ||||||
3 | of the second division: (i) with a gross vehicle weight rating | ||||||
4 | in excess of 8,000 pounds; (ii) that are subject to the | ||||||
5 | commercial distribution fee imposed under Section 3-815.1 of | ||||||
6 | the Illinois Vehicle Code; and (iii) that are primarily used | ||||||
7 | for commercial purposes. Through June 30, 2005, this
exemption | ||||||
8 | applies to repair and replacement parts added
after the
initial | ||||||
9 | purchase of such a motor vehicle if that motor vehicle is used | ||||||
10 | in a
manner that
would qualify for the rolling stock exemption | ||||||
11 | otherwise provided for in this
Act. For purposes of this | ||||||
12 | paragraph, "used for commercial purposes" means the | ||||||
13 | transportation of persons or property in furtherance of any | ||||||
14 | commercial or industrial enterprise whether for-hire or not.
| ||||||
15 | (13) Proceeds from sales to owners, lessors, or
shippers of
| ||||||
16 | tangible personal property that is utilized by interstate | ||||||
17 | carriers for
hire for use as rolling stock moving in interstate | ||||||
18 | commerce
and equipment operated by a telecommunications | ||||||
19 | provider, licensed as a
common carrier by the Federal | ||||||
20 | Communications Commission, which is
permanently installed in | ||||||
21 | or affixed to aircraft moving in interstate commerce.
| ||||||
22 | (14) Machinery and equipment that will be used by the | ||||||
23 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
24 | process of manufacturing or
assembling tangible personal | ||||||
25 | property for wholesale or retail sale or
lease, whether the | ||||||
26 | sale or lease is made directly by the manufacturer or by
some | ||||||
27 | other person, whether the materials used in the process are | ||||||
28 | owned by
the manufacturer or some other person, or whether the | ||||||
29 | sale or lease is made
apart from or as an incident to the | ||||||
30 | seller's engaging in the service
occupation of producing | ||||||
31 | machines, tools, dies, jigs, patterns, gauges, or
other similar | ||||||
32 | items of no commercial value on special order for a particular
| ||||||
33 | purchaser.
| ||||||
34 | (15) Proceeds of mandatory service charges separately | ||||||
35 | stated on
customers' bills for purchase and consumption of food | ||||||
36 | and beverages, to the
extent that the proceeds of the service |
| |||||||
| |||||||
1 | charge are in fact turned over as
tips or as a substitute for | ||||||
2 | tips to the employees who participate directly
in preparing, | ||||||
3 | serving, hosting or cleaning up the food or beverage function
| ||||||
4 | with respect to which the service charge is imposed.
| ||||||
5 | (16) Petroleum products sold to a purchaser if the seller
| ||||||
6 | is prohibited by federal law from charging tax to the | ||||||
7 | purchaser.
| ||||||
8 | (17) Tangible personal property sold to a common carrier by | ||||||
9 | rail or
motor that
receives the physical possession of the | ||||||
10 | property in Illinois and that
transports the property, or | ||||||
11 | shares with another common carrier in the
transportation of the | ||||||
12 | property, out of Illinois on a standard uniform bill
of lading | ||||||
13 | showing the seller of the property as the shipper or consignor | ||||||
14 | of
the property to a destination outside Illinois, for use | ||||||
15 | outside Illinois.
| ||||||
16 | (18) Legal tender, currency, medallions, or gold or silver | ||||||
17 | coinage
issued by the State of Illinois, the government of the | ||||||
18 | United States of
America, or the government of any foreign | ||||||
19 | country, and bullion.
| ||||||
20 | (19) Until July 1 2003, oil field exploration, drilling, | ||||||
21 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
22 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
23 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
24 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
25 | individual replacement part for oil field exploration,
| ||||||
26 | drilling, and production equipment, and (vi) machinery and | ||||||
27 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
28 | required to be registered under the Illinois
Vehicle Code.
| ||||||
29 | (20) Photoprocessing machinery and equipment, including | ||||||
30 | repair and
replacement parts, both new and used, including that | ||||||
31 | manufactured on
special order, certified by the purchaser to be | ||||||
32 | used primarily for
photoprocessing, and including | ||||||
33 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
34 | (21) Until July 1, 2003, coal exploration, mining, | ||||||
35 | offhighway hauling,
processing,
maintenance, and reclamation | ||||||
36 | equipment, including
replacement parts and equipment, and |
| |||||||
| |||||||
1 | including
equipment purchased for lease, but excluding motor | ||||||
2 | vehicles required to be
registered under the Illinois Vehicle | ||||||
3 | Code.
| ||||||
4 | (22) Fuel and petroleum products sold to or used by an air | ||||||
5 | carrier,
certified by the carrier to be used for consumption, | ||||||
6 | shipment, or storage
in the conduct of its business as an air | ||||||
7 | common carrier, for a flight
destined for or returning from a | ||||||
8 | location or locations
outside the United States without regard | ||||||
9 | to previous or subsequent domestic
stopovers.
| ||||||
10 | (23) A transaction in which the purchase order is received | ||||||
11 | by a florist
who is located outside Illinois, but who has a | ||||||
12 | florist located in Illinois
deliver the property to the | ||||||
13 | purchaser or the purchaser's donee in Illinois.
| ||||||
14 | (24) Fuel consumed or used in the operation of ships, | ||||||
15 | barges, or vessels
that are used primarily in or for the | ||||||
16 | transportation of property or the
conveyance of persons for | ||||||
17 | hire on rivers bordering on this State if the
fuel is delivered | ||||||
18 | by the seller to the purchaser's barge, ship, or vessel
while | ||||||
19 | it is afloat upon that bordering river.
| ||||||
20 | (25) A motor vehicle sold in this State to a nonresident | ||||||
21 | even though the
motor vehicle is delivered to the nonresident | ||||||
22 | in this State, if the motor
vehicle is not to be titled in this | ||||||
23 | State, and if a drive-away permit
is issued to the motor | ||||||
24 | vehicle as provided in Section 3-603 of the Illinois
Vehicle | ||||||
25 | Code or if the nonresident purchaser has vehicle registration
| ||||||
26 | plates to transfer to the motor vehicle upon returning to his | ||||||
27 | or her home
state. The issuance of the drive-away permit or | ||||||
28 | having
the
out-of-state registration plates to be transferred | ||||||
29 | is prima facie evidence
that the motor vehicle will not be | ||||||
30 | titled in this State.
| ||||||
31 | (26) Semen used for artificial insemination of livestock | ||||||
32 | for direct
agricultural production.
| ||||||
33 | (27) Horses, or interests in horses, registered with and | ||||||
34 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
35 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
36 | Horse Association, United States
Trotting Association, or |
| |||||||
| |||||||
1 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
2 | racing for prizes.
| ||||||
3 | (28) Computers and communications equipment utilized for | ||||||
4 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
5 | analysis, or treatment of hospital patients sold to a lessor | ||||||
6 | who leases the
equipment, under a lease of one year or longer | ||||||
7 | executed or in effect at the
time of the purchase, to a
| ||||||
8 | hospital
that has been issued an active tax exemption | ||||||
9 | identification number by the
Department under Section 1g of | ||||||
10 | this Act.
| ||||||
11 | (29) Personal property sold to a lessor who leases the
| ||||||
12 | property, under a
lease of one year or longer executed or in | ||||||
13 | effect at the time of the purchase,
to a governmental body
that | ||||||
14 | has been issued an active tax exemption identification number | ||||||
15 | by the
Department under Section 1g of this Act.
| ||||||
16 | (30) 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
donated for | ||||||
19 | disaster relief to be used in a State or federally declared
| ||||||
20 | disaster area in Illinois or bordering Illinois by a | ||||||
21 | manufacturer or retailer
that is registered in this State to a | ||||||
22 | corporation, society, association,
foundation, or institution | ||||||
23 | that has been issued a sales tax exemption
identification | ||||||
24 | number by the Department that assists victims of the disaster
| ||||||
25 | who reside within the declared disaster area.
| ||||||
26 | (31) 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 used in the | ||||||
29 | performance of infrastructure repairs in this
State, including | ||||||
30 | but not limited to municipal roads and streets, access roads,
| ||||||
31 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
32 | line extensions,
water distribution and purification | ||||||
33 | facilities, storm water drainage and
retention facilities, and | ||||||
34 | sewage treatment facilities, resulting from a State
or | ||||||
35 | federally declared disaster in Illinois or bordering Illinois | ||||||
36 | when such
repairs are initiated on facilities located in the |
| |||||||
| |||||||
1 | declared disaster area
within 6 months after the disaster.
| ||||||
2 | (32) Beginning July 1, 1999, game or game birds sold at a | ||||||
3 | "game breeding
and
hunting preserve area" or an "exotic game | ||||||
4 | hunting area" as those terms are used
in the
Wildlife Code or | ||||||
5 | at a hunting enclosure approved through rules adopted by the
| ||||||
6 | Department of Natural Resources. This paragraph is exempt from | ||||||
7 | the provisions
of
Section 2-70.
| ||||||
8 | (33) A motor vehicle, as that term is defined in Section | ||||||
9 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
10 | corporation, limited liability
company, society, association, | ||||||
11 | foundation, or institution that is determined by
the Department | ||||||
12 | to be organized and operated exclusively for educational
| ||||||
13 | purposes. For purposes of this exemption, "a corporation, | ||||||
14 | limited liability
company, society, association, foundation, | ||||||
15 | or institution organized and
operated
exclusively for | ||||||
16 | educational purposes" means all tax-supported public schools,
| ||||||
17 | private schools that offer systematic instruction in useful | ||||||
18 | branches of
learning by methods common to public schools and | ||||||
19 | that compare favorably in
their scope and intensity with the | ||||||
20 | course of study presented in tax-supported
schools, and | ||||||
21 | vocational or technical schools or institutes organized and
| ||||||
22 | operated exclusively to provide a course of study of not less | ||||||
23 | than 6 weeks
duration and designed to prepare individuals to | ||||||
24 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
25 | industrial, business, or commercial
occupation.
| ||||||
26 | (34) Beginning January 1, 2000, personal property, | ||||||
27 | including food, purchased
through fundraising events for the | ||||||
28 | benefit of a public or private elementary or
secondary school, | ||||||
29 | a group of those schools, or one or more school districts if
| ||||||
30 | the events are sponsored by an entity recognized by the school | ||||||
31 | district that
consists primarily of volunteers and includes | ||||||
32 | parents and teachers of the
school children. This paragraph | ||||||
33 | does not apply to fundraising events (i) for
the benefit of | ||||||
34 | private home instruction or (ii) for which the fundraising
| ||||||
35 | entity purchases the personal property sold at the events from | ||||||
36 | another
individual or entity that sold the property for the |
| |||||||
| |||||||
1 | purpose of resale by the
fundraising entity and that profits | ||||||
2 | from the sale to the fundraising entity.
This paragraph is | ||||||
3 | exempt from the provisions of Section 2-70.
| ||||||
4 | (35) Beginning January 1, 2000 and through December 31, | ||||||
5 | 2001, new or used
automatic vending machines that prepare and | ||||||
6 | serve hot food and beverages,
including coffee, soup, and other | ||||||
7 | items, and replacement parts for these
machines. Beginning | ||||||
8 | January 1, 2002 and through June 30, 2003, machines
and parts | ||||||
9 | for machines used in
commercial, coin-operated amusement and | ||||||
10 | vending business if a use or occupation
tax is paid on the | ||||||
11 | gross receipts derived from the use of the commercial,
| ||||||
12 | coin-operated amusement and vending machines. This paragraph | ||||||
13 | is exempt from
the provisions of Section 2-70.
| ||||||
14 | (35-5) Food for human consumption that is to be consumed | ||||||
15 | off
the premises where it is sold (other than alcoholic | ||||||
16 | beverages, soft drinks,
and food that has been prepared for | ||||||
17 | immediate consumption) and prescription
and nonprescription | ||||||
18 | medicines, drugs, medical appliances, and insulin, urine
| ||||||
19 | testing materials, syringes, and needles used by diabetics, for | ||||||
20 | human use, when
purchased for use by a person receiving medical | ||||||
21 | assistance under Article 5 of
the Illinois Public Aid Code who | ||||||
22 | resides in a licensed long-term care facility,
as defined in | ||||||
23 | the Nursing Home Care Act.
| ||||||
24 | (36) Beginning August 2, 2001, computers and | ||||||
25 | communications equipment
utilized for any hospital purpose and | ||||||
26 | equipment used in the diagnosis,
analysis, or treatment of | ||||||
27 | hospital patients sold to a lessor who leases the
equipment, | ||||||
28 | under a lease of one year or longer executed or in effect at | ||||||
29 | the
time of the purchase, to a hospital that has been issued an | ||||||
30 | active tax
exemption identification number by the Department | ||||||
31 | under Section 1g of this Act.
This paragraph is exempt from the | ||||||
32 | provisions of Section 2-70.
| ||||||
33 | (37) Beginning August 2, 2001, personal property sold to a | ||||||
34 | lessor who
leases the property, under a lease of one year or | ||||||
35 | longer executed or in effect
at the time of the purchase, to a | ||||||
36 | governmental body that has been issued an
active tax exemption |
| |||||||
| |||||||
1 | identification number by the Department under Section 1g
of | ||||||
2 | this Act. This paragraph is exempt from the provisions of | ||||||
3 | Section 2-70.
| ||||||
4 | (38) Beginning on January 1, 2002, tangible personal | ||||||
5 | property purchased
from an Illinois retailer by a taxpayer | ||||||
6 | engaged in centralized purchasing
activities in Illinois who | ||||||
7 | will, upon receipt of the property in Illinois,
temporarily | ||||||
8 | store the property in Illinois (i) for the purpose of | ||||||
9 | subsequently
transporting it outside this State for use or | ||||||
10 | consumption thereafter solely
outside this State or (ii) for | ||||||
11 | the purpose of being processed, fabricated, or
manufactured | ||||||
12 | into, attached to, or incorporated into other tangible personal
| ||||||
13 | property to be transported outside this State and thereafter | ||||||
14 | used or consumed
solely outside this State. The Director of | ||||||
15 | Revenue shall, pursuant to rules
adopted in accordance with the | ||||||
16 | Illinois Administrative Procedure Act, issue a
permit to any | ||||||
17 | taxpayer in good standing with the Department who is eligible | ||||||
18 | for
the exemption under this paragraph (38). The permit issued | ||||||
19 | under
this paragraph (38) shall authorize the holder, to the | ||||||
20 | extent and
in the manner specified in the rules adopted under | ||||||
21 | this Act, to purchase
tangible personal property from a | ||||||
22 | retailer exempt from the taxes imposed by
this Act. Taxpayers | ||||||
23 | shall maintain all necessary books and records to
substantiate | ||||||
24 | the use and consumption of all such tangible personal property
| ||||||
25 | outside of the State of Illinois.
| ||||||
26 | (39) Beginning on January 1, 2006, American flags, poles | ||||||
27 | intended to
serve as
flagstaffs for American flags, and | ||||||
28 | American flag sets or kits. This paragraph
is exempt
from the | ||||||
29 | provisions of Section 2-70.
| ||||||
30 | (Source: P.A. 92-16, eff. 6-28-01; 92-35, eff. 7-1-01; 92-227, | ||||||
31 | eff. 8-2-01; 92-337, eff. 8-10-01; 92-484, eff. 8-23-01; | ||||||
32 | 92-488, eff. 8-23-01; 92-651, eff. 7-11-02; 92-680, eff. | ||||||
33 | 7-16-02; 93-23, eff. 6-20-03; 93-24, eff. 6-20-03; 93-840, eff. | ||||||
34 | 7-30-04; 93-1033, eff. 9-3-04; revised 9-14-04.)
| ||||||
35 | Section 99. Effective date. This Act takes effect upon |
| |||||||
| |||||||
1 | becoming law. |